Climate Change Data

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Recognized as one of Canada’s Top 100 employers, a Top Employer in London, England, and one of the best places to work in the U.S.
• Received the Catalyst Award for commitment to diversity and inclusion.

Governance Achievements

• Continued focus on overseeing strategic direction, risk management, and executive compensation.

Climate Goals & Targets

Environmental Challenges

• Low interest rates, regulatory reform, and changing client needs.
• Weak economic, credit, and market conditions in International Banking.
• European sovereign debt crisis impacting global financial markets.
• Uncertainty over U.S. regulatory reform and global capital requirements.

Mitigation Strategies

• Disciplined approach to risk and capital management.
• Investments in risk controls and technology.
• Focus on managing loan portfolio and restructuring retail operations in International Banking.
• Proactive approach to mitigating the impact of Basel III requirements.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Named Dealmaker of the Year in Canada (Financial Post)
• Named Best Investment Bank in Canada (Euromoney)
• Recognized for excellence in Canadian equity research (Brendan Wood International)
• Ranked number one in debt, equity and M&A in Canada (Bloomberg)
• Recognized as a top 10 global wealth manager (Scorpio Partnership’s Global Private Banking KPI Benchmark)

Environmental Metrics

ESG Focus Areas

• Corporate Integrity
• Economic Impact
• Marketplace
• Workplace
• Environment
• Community

Environmental Achievements

• Reduced greenhouse gas emissions intensity in properties by 20.6% from 2012 baseline
• Reduced office paper use per employee by 12.5% from 2012 baseline
• Increased LEED certified office space by nearly 30% from 2012 baseline

Social Achievements

• Welcomed the first cohort of 100 young people to the RBC Career Launch™ Program
• Achieved very high participation and scores in the annual Employee Opinion Survey
• Expanded a program to create awareness about unconscious bias

Governance Achievements

• Became the first major Canadian bank to appoint a woman as Chair of the Board
• Increased objective for representation of women on the Board to 30%
• Conducted a comprehensive review to assess how formal governance structures align with leading practices

Climate Goals & Targets

Environmental Challenges

• Cybersecurity threats
• Managing environmental and social risks in business activities

Mitigation Strategies

• Enhanced transaction monitoring, client identification, and client risk assessment processes
• Increased investment in systems to manage security environment and enhance cybersecurity protection capabilities
• Conducted over 1,100 detailed environmental credit risk assessments

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4 Guidelines, GRI Financial Services sector supplement

Certifications: LEED

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Top 50 Socially Responsible Corporations
• Best 50 Corporate Citizens in Canada
• Most Valuable Brand in Canada

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Reduced GHG emissions by 50% from 2012 baseline in Canadian logistics and delivery network (60% of Canadian deliveries).
• Reduced GHG emission intensity by 28.4% in properties (89% of global operations) from 2012 baseline.
• Purchased 20,000 MWh of EcoLogo-certified green electricity.

Social Achievements

• Launched Green Champions Program to increase employee awareness and involvement in environmental programming.
• Increased LEED certified office space by over 250% from 2012 baseline.

Governance Achievements

• Board of Directors provides oversight to RBC’s Citizenship strategy, including environmental programs and performance.
• Risk Committee of the Board oversees environmental risk management.
• Incentives provided for management of climate change issues, linked to employee performance.

Climate Goals & Targets

Environmental Challenges

• Data gaps in Scope 1 and 2 emissions from international properties.
• Inability to obtain supplier-specific emission factors for electricity.
• Increased insurance risk due to changing climate parameters.

Mitigation Strategies

• Ongoing efforts to improve data collection and reporting.
• Using location-based Scope 2 emissions figures due to lack of supplier data.
• Sale of RBC General Insurance Company to Aviva Canada Inc. to reduce property insurance exposure.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Increased insurance risk from severe weather events.
• Disruption of operations from severe weather.

Transition Risks

• Changes in regulation.
• Changes in consumer expectations.

Opportunities

• Growth in clean energy financing.
• Increased demand for carbon trading services.
• Opportunities for new products and services related to a low-carbon economy.

Reporting Standards

Frameworks Used: ISO 14064-1, The Greenhouse Gas Protocol

Certifications: LEED, EcoLogo

Third-party Assurance: Third-party limited assurance (ISAE 3410)

Sustainable Products & Innovation

• Energy Saver Loan and Mortgage Products
• Solar Panel Financing
• Fossil Fuel Free Global Equity Fund

Awards & Recognition

• Energy into Action Innovation Award

Environmental Metrics

ESG Focus Areas

• Community & social impact
• Diversity & Inclusion
• Sustainable growth

Environmental Achievements

• $5.1 billion in green bond underwriting in 2017
• $4 billion in renewable energy financing

Social Achievements

• RBC Future Launch, a 10-year, $500-million commitment to helping young people access meaningful employment
• 150,000+ employee volunteer hours
• $98+ million in cash donations and community investments

Governance Achievements

• Winning Best Overall Governance at the Excellence in Governance Awards in Toronto and Best Overall Corporate Governance – International at the Corporate Governance Awards in New York

Climate Goals & Targets

Environmental Challenges

• Global uncertainty
• Canadian Housing and Household Indebtedness
• Information Technology and Cyber Risks
• Regulatory Changes
• Technological innovation and non-traditional competitors
• Global environmental policy and climate change
• Changes in consumer behavior
• End of quantitative easing and the implication for global liquidity

Mitigation Strategies

• Diversified business model and funding sources, financial crisis management strategies and protocols, stress testing programs, and product and geographic diversification
• Active monitoring of the impact of recent Government of Ontario measures implemented to help cool the housing market
• Advancements in cyber defence capabilities, industry best practices and collaborating with peers and experts
• Monitoring and preparing for regulatory developments to ensure compliance with new requirements while mitigating any adverse business or economic impacts
• Investing in digital solutions to improve the client experience and deliver personalized advice
• Accelerating our investments to simplify, digitize and automate activities and processes for both clients and employees

Supply Chain Management

Responsible Procurement

• principles-based supplier code of conduct

Climate-Related Risks & Opportunities

Awards & Recognition

• Best Overall Governance at the Excellence in Governance Awards in Toronto
• Best Overall Corporate Governance – International at the Corporate Governance Awards in New York

Environmental Metrics

ESG Focus Areas

• Diversity & inclusion
• Climate change
• Building & attracting talent
• Responsible governance practices
• Exceptional employee experience
• Conduct & trust
• Digital enablement
• Responsible investing
• Community & social impact
• Privacy & cyber security
• Risk management
• Client satisfaction & loyalty
• Financial literacy & inclusion
• Economic value generated & distributed
• Sustainable finance
• Responsible procurement

Environmental Achievements

• Achieved carbon neutrality in operations
• First financial institution in Canada to sign a renewable energy power purchase agreement
• CDP score of A- for Climate Change response
• Reduced GHG emissions intensity from energy use

Social Achievements

• Launched various temporary relief programs for individuals and businesses impacted by the COVID-19 pandemic, including payment deferrals, refinancing and credit limit increases.
• Provided payment deferrals on more than $90 billion of loans.
• Invested $50 million to create pathways to prosperity for 25,000 BIPOC youth.
• RBC Future Launch reached 2.5 million young people.
• Donated $142.2 million globally through cash donations and community investments.

Governance Achievements

• Published RBC Human Rights Position Statement and RBC Action Plan Against Systemic Racism
• 42% of Royal Bank of Canada Directors are women
• 17% of Royal Bank of Canada Directors are Black, Indigenous and People of Colour (BIPOC)
• Average percentile ranking of 86 on priority ESG indices

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic's impact on communities and the economy
• Systemic racism and bias
• Cyber threats
• Climate change
• Digital disruption

Mitigation Strategies

• Financial relief programs for clients and employees
• Investments in diversity and inclusion initiatives
• Enhanced security capabilities and employee education
• RBC Climate Blueprint to achieve net-zero emissions in lending by 2050
• Investments in digital infrastructure and capabilities

Supply Chain Management

Supplier Audits: 92 suppliers engaged in CDP Supply Chain survey

Responsible Procurement

• Supplier Code of Conduct
• Climate Change Supplier Engagement Program
• Supplier diversity initiatives

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Sustainable finance
• Clean energy investments

Reporting Standards

Frameworks Used: GRI, SASB, IIRC, UN SDGs, TCFD

Certifications: Null

Third-party Assurance: PricewaterhouseCoopers LLP (PwC)

UN Sustainable Development Goals

• Goal 4
• Goal 5
• Goal 7
• Goal 8
• Goal 9
• Goal 11
• Goal 12
• Goal 13
• Goal 17

Initiatives contribute to these goals through various programs and investments.

Sustainable Products & Innovation

• RBC iShares ESG Advanced ETFs
• Sustainable finance products

Awards & Recognition

• 2020 Corporate Governance Award
• Best Workplaces in Canada
• Canada’s Top 100 Employer
• Canada’s Top 10 Most Admired Corporate Cultures
• Member of the Refinitiv Diversity and Inclusion Index
• Canada’s Best Diversity Employers
• Member of the Bloomberg Gender-Equality Index
• Canada’s Top Employers for Young People
• Ipsos Financial Service Excellence Awards
• North American Retail Bank of the year
• Canada’s Greenest Employers
• BOMA Climate Leadership Award

Environmental Metrics

ESG Focus Areas

• Human rights
• Climate change
• Community and social impact
• Responsible investing
• Diversity and inclusion
• Employee health and well-being
• Sustainable finance
• Responsible governance practices
• Conduct and trust
• Privacy and cyber security
• Risk management
• Building and attracting talent
• Digital enablement
• Financial literacy and inclusion
• Client satisfaction and loyalty
• Responsible procurement

Environmental Achievements

• Reduced GHG emissions by 55% over 2018 baseline (Scopes 1, 2 & 3)
• Increased sourcing of electricity from renewable and non-emitting sources to 84% for all properties
• Maintained carbon neutrality in global operations with decreasing reliance on offsets

Social Achievements

• Launched RBC Black Entrepreneur Business Loan (BEBL)
• Invested $1 million in Black Innovation Capital (BIC) and US$5 million in L’Attitude Ventures
• Launched the Black Entrepreneur Startup Program (BESP)
• Reached 3.6 million Canadian youth through RBC Future Launch
• Increased Indigenous scholarship recipients funding to $10,000 per year for up to four years
• Introduced a scholarship of equal value for Black youth
• Provided $265+ million through RBC Future Launch since 2017

Governance Achievements

• Established ESG Disclosure Committee (ESG DC)
• Completed 94% of mandatory anti-racism training for all employees and contractors
• 92% of Board members are independent

Climate Goals & Targets

Environmental Challenges

• Data limitations in measuring financed emissions (primarily at PCAF data quality Score 5)
• Supply chain disruptions due to the COVID-19 pandemic
• Balancing interim emission reduction targets with an orderly and just transition
• Varying decarbonization efforts across economies

Mitigation Strategies

• Joined PCAF to align with a globally recognized GHG emissions accounting and reporting standard
• Developed alternative sourcing strategies
• Working with clients to support their climate-related disclosures and decarbonization plans
• Prioritizing efforts to focus on key high-emitting sectors within the portfolio

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Enhanced environmental and social screening criteria
• Inclusion of diversity & inclusion and environmental impact in RFPs

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Flooding

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Growth in sustainable finance

Reporting Standards

Frameworks Used: GRI, SASB, IIRC, UN SDGs, TCFD

Certifications: Null

Third-party Assurance: PricewaterhouseCoopers LLP (PwC)

UN Sustainable Development Goals

• Goal 4
• Goal 5
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 17

Initiatives contribute to these goals through various programs and investments.

Sustainable Products & Innovation

• RBC ESG Market-Linked GIC
• Responsible investing portfolios

Awards & Recognition

• Refinitiv Highest in Customer Satisfaction Award
• Celent Model Bank 2021 Award
• Catalyst Award
• Canada’s Greenest Employers

Environmental Metrics

ESG Focus Areas

• Talent attraction and retention
• Community and social impact
• Responsible governance practices
• Conduct and trust
• Risk management
• Human rights
• Privacy and cyber security
• Client satisfaction and loyalty
• Climate change
• Sustainable finance
• Community and social impact
• Financial wellbeing and inclusion
• Responsible digital enablement
• Sustainable finance
• Responsible investment
• Responsible procurement and supplier diversity
• Employee wellbeing
• Culture of inclusion and belonging
• Community and social impact
• Economic value generated and distributed

Environmental Achievements

• Sourced 100% of our total global electricity consumption from renewable sources
• Facilitated $29 billion in green finance as part of our $500 billion sustainable finance commitment
• Disclosed absolute financed emissions for oil & gas sector of 71.4 million tonnes of CO2e
• Launched the RBC Climate Action Institute
• Supported climate innovation by committing $48 million toward venture capital and growth equity funds
• RBC Tech for Nature supported 150 partners in clean tech, agriculture, energy and nature-based climate solutions through $21+ million in community investments

Social Achievements

• Launched Canada’s new First Home Savings Account
• Launched RBC My Money Matters
• Enhanced NOMI® Forecast
• RBC’s collaboration with McGill University had 35,000+ registrations for the McGill Personal Financial Essentials course
• Over 3 million hours invested by our global workforce in building their technical and business skills
• RBC Foundation launched the RBC Foundation® Green Skills Scholarship
• Through RBC Emerging Artists, RBC and RBC Foundation provided $11+ million
• Through RBC Future Launch®, RBC and RBC Foundation provided over $65.1 million
• Launched a new Accessibility Office and Accessibility Plan
• RBC continued its focus on diversity and inclusion. During fiscal 2023, RBC employees who identify as women and as Black, Indigenous and people of colour made up 43% and 25% of new executive appointments, respectively
• In December 2023, published a progress update against the three areas of focus of the RBC Action Plan Against Systemic Racism
• In December 2023, we published RBC’s updated Approach to Human Rights
• $172+ million given globally through donations and community investments together with the RBC Foundation
• Launched the RBC Communities Together Fund

Governance Achievements

• Created a cross-enterprise executive ESG council
• Introduced the Purpose Framework – Powering Ideas for People and PlanetTM
• Sharpened our focus to address the societal challenges where we believe we can make the most difference

Climate Goals & Targets

Environmental Challenges

• Higher interest rates and the rising cost of living are hurting affordability for people and families and contributing to economic and social inequalities
• Society is increasingly polarized, with divisions deepening when coming together has never been more important to address large and complex challenges
• Existential threat of climate change and its impact on every aspect of our lives
• Lack of standard definitions and taxonomies has been a barrier to deploying capital for decarbonization to high-emitting, hard-to-abate sectors at the scale and pace required

Mitigation Strategies

• Introduced the RBC Purpose Framework – Powering Ideas for People and PlanetTM to create clarity and structure around three societal ambitions
• Established a decarbonization finance definition to specify the criteria we will use to classify transactions as eligible towards our Sustainable Finance Commitment
• Expanded our Sustainable Finance Framework to include a decarbonization finance definition

Supply Chain Management

Responsible Procurement

• RBC Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB) Standards, United Nations Sustainable Development Goals (SDGs)

Third-party Assurance: PricewaterhouseCoopers LLP (PwC)

Sustainable Products & Innovation

• NOMI Forecast
• NOMI Insights
• NOMI Find & Save
• NOMI Budgets
• First Home Savings Account (FHSA)
• My Money Matters
• Houseful
• RBC PayEdge

Awards & Recognition

• Most valuable Canadian brand
• Fourth most valuable financial services brand in the world
• Top 100 employer in Canada
• Bloomberg Gender-Equality Index
• Numerous other awards listed on page 17