Scotiabank has chosen to not renew its long-running membership within the Canadian Affiliation of Petroleum Producers, a transfer that comes at a time when monetary establishments are going through rising scrutiny for his or her position in contributing to local weather change.
The Toronto-based financial institution — which in an e mail confirmed its exit from CAPP however declined to offer a purpose for the change — not solely held an affiliate membership within the oil and fuel foyer group, however for a few years was additionally the title sponsor of the annual Scotiabank CAPP Power Symposium.
The newest symposium, held simply final month, nonetheless had Scotiabank’s title connected to it, although CAPP spokesman Jay Averill stated that will not be the case going ahead.
“CAPP’s settlement with Scotiabank on the Power Symposium was accomplished this 12 months and we’re grateful for his or her help of Canada’s pure fuel and oil trade,” Averill stated in an e mail. “We have now already began the work in finalizing a companion for subsequent 12 months’s Power Symposium.”
Scotiabank — which was the one one among Canada’s Large 5 banks to carry a membership with CAPP — is a member of many trade and enterprise associations in Canada and globally. On its web site, the financial institution says that whereas its affiliation with these teams “doesn’t suggest an endorsement of positions or public statements,” the financial institution often evaluations its memberships “to make sure consistency with Financial institution-held public coverage positions.”
Its departure from CAPP comes as monetary establishments are below rising world strain to account for their very own position in contributing to local weather change as funders of fossil gasoline corporations.
Scotiabank itself got here below hearth simply final month at its annual normal assembly, as shareholders and environmental teams criticized the establishment for not shifting quick sufficient on the local weather entrance. Whereas the corporate has made quite a few local weather change commitments, together with setting preliminary targets for reaching net-zero emissions by 2050, one shareholder on the assembly identified that Scotiabank’s financing of fossil fuels elevated by 87 per cent to $30 billion in 2021.
In keeping with a report from The Rainforest Motion Community — a San Francisco-based environmental group — Scotiabank is the ninth largest lender globally to the fossil fuels sector (Royal Financial institution of Canada, the one different Canadian financial institution to make the checklist, ranks fifth), and has offered greater than $195 billion to grease and fuel corporations for the reason that signing of the U.N. Paris Local weather Accord in 2015.
“Banks and insurers are more and more within the crosshairs of local weather activists, as a result of they’re offering the funding that retains the fossil gasoline machine operating. And Canadian banks are among the worst on the earth relating to financing fossil fuels,” stated Keith Stewart, senior power strategist with Greenpeace Canada.
Stewart added he is happy that Scotiabank will not be supporting CAPP by means of membership dues, however stated his group is looking on the financial institution to decide to cease funding new oil and fuel tasks totally.
Scotiabank is just not the one high-profile exit from CAPP lately. In 2020, French oil and fuel large Whole dropped out of the foyer group citing a “misalignment” between the group’s public positions and people expressed in Whole’s local weather insurance policies.
World power large Royal Dutch Shell remains to be a member of CAPP, however has beforehand urged the group to help each the Paris local weather accord and the pricing of carbon to encourage greenhouse fuel emission reductions.
U.Ok.-based BP plc has additionally warned CAPP that the foyer group’s insurance policies are solely “partially aligned” with the oil firm’s personal local weather positions and its ambitions to develop into a net-zero producer by 2050.