It was only after his flight landed in Toronto last year that WetB次元官网网址檚uwetB次元官网网址檈n hereditary chief NaB次元官网网址橫oks learned that Royal Bank of Canada had cancelled its in-person annual general meeting with less than a dayB次元官网网址檚 notice.

The bank cited COVID-19 as the reason it moved the event entirely online, but those assembled to protest the bankB次元官网网址檚 climate record were left wondering if there was more to it and NaB次元官网网址橫oks says he was insulted that executives werenB次元官网网址檛 willing to face him.

Undeterred, he is trying again this year. NaB次元官网网址橫oks will head to Saskatoon for the bankB次元官网网址檚 April 5 meeting, where he plans to share his concerns about its fossil fuel funding and encourage the assembled shareholders to support a resolution related to respecting Indigenous rights.

B次元官网网址淒ave McKay, heB次元官网网址檚 the CEO, but he has to listen to the people that do business with him,B次元官网网址� said NaB次元官网网址橫oks.

The resolution heB次元官网网址檚 pushing, put forth by the B.C. General EmployeesB次元官网网址� Union with the support of the Union of British Columbia Indian Chiefs, is just one of many CanadaB次元官网网址檚 big banks face as climate activists increasingly look to shareholder proposals to shift corporate policy.

B次元官网网址淭heyB次元官网网址檙e a really important tool for investors to catalyze change,B次元官网网址� said Catherine McCall, executive director of the Canadian Coalition for Good Governance, which represents the interests of institutional investors.

B次元官网网址淭hey can introduce issues to management and the board that are important, and they can signal how important they are to investors.B次元官网网址�

RBC faced its first climate-related shareholder proposal in 2018, while this year it has five going to a vote. There are also three resolutions at Toronto-Dominion Bank going to a vote, two at Bank of Nova Scotia, and one each at Bank of Montreal, Canadian Imperial Bank of Commerce and National Bank of Canada as activists increasingly focus on banks as key intermediaries in the climate fight.

B次元官网网址淭heyB次元官网网址檙e invested everywhere, and they lend everywhere,B次元官网网址� said Jennifer Story, associate director of climate advocacy at the Shareholder Association for Research & Education (Share).

B次元官网网址淪o they have a phenomenal ability to accelerate change on behalf of corporate issuers in Canada and elsewhere, if they choose to leverage it.B次元官网网址�

Share, on behalf of its institutional clients, has put forward a resolution for ScotiabankB次元官网网址檚 April 4 AGM looking for more detail on how the bank will be assessing the transition plans of its high-emission clients.

Scotiabank said in its proxy circular response that the proposal was B次元官网网址渙verly onerous, prescriptive, and not aligned with industry practice,B次元官网网址� and that it was surprised to see it filed as it was in ongoing engagement about it.

It was only after talks stalled that Share decided to elevate the issue with a shareholder proposal, said Story.

B次元官网网址淚n essence the dialogue broke down, and we were disappointed in the lack of progress over almost a year and decided that this was the best route to take.B次元官网网址�

Those pushing resolutions emphasize that itB次元官网网址檚 not so much about a simple pass or fail on these votes (they are non-binding even if they pass), but more about allowing them to engage with other shareholders, a way to communicate and create dialogue around the issues.

B次元官网网址淭here are ripple effects that go on throughout the year after the dust has settled at the AGM, thatB次元官网网址檚 not the end point,B次元官网网址� said Matt Price, director of corporate engagement at Investors for Paris Compliance, which filed a resolution at TD pushing for more details on how it will achieve its 2030 financed emissions targets.

The proposals do also give the option for major shareholders to make a statement, with even small percentages of support representing billions of dollars of investments, said Richard Brooks at Stand.earth.

B次元官网网址淭he resolutions are meant to send a message to management,B次元官网网址� said Brooks, head of the groupB次元官网网址檚 climate finance program, which submitted a proposal calling for RBC to set a deadline for when it will stop funding new fossil fuel developments.

The message is getting louder, he said, as bigger shareholders step into the fray.

The Public Sector Pension Investment Board, which has $231 billion in assets under management, said on March 22 that it would be using its voting power to promote corporate practices that address climate change, and that itB次元官网网址檚 ready to vote against directors when boards fail to prepare.

And this year RBC also faces a proposal about setting absolute emission reduction targets from the New York City Comptroller, which oversees the cityB次元官网网址檚 US$242 billion portfolio of pension funds.

B次元官网网址淎bsent a concrete plan to reduce absolute emissions in the real world in the near term, any net zero-plan rings hollow,B次元官网网址� said Comptroller Brad Lander in a statement announcing the proposal, while noting that BMO and numerous international banks have already set hard targets on emission reductions.

RBC said in its response, recommending shareholders vote against it, that while it recognizes the importance of reducing absolute emissions, only intensity-based ones are B次元官网网址渁ppropriate at this point in the bankB次元官网网址檚 transition journey.B次元官网网址�

As with its response to Stand.earthB次元官网网址檚 proposal, RBC went on to note the need to continue to engage with clients in high emitting sectors, rather than simply reducing emissions by cutting off their funding, as part of an orderly transition.

B次元官网网址淭his is why RBCB次元官网网址檚 goal to achieve net-zero in our lending by 2050 is intended to balance the needs of people and planet.B次元官网网址�

For NaB次元官网网址橫oks, the bankB次元官网网址檚 talk is little more than greenwashing.

B次元官网网址淚t really bothers me when you read their statements of B次元官网网址榖y 2050, weB次元官网网址檒l do thisB次元官网网址�. You know how much damage is going to happen to this planet by 2050 if they continue the way they are?B次元官网网址� he said.

B次元官网网址淭hings have to happen now. WeB次元官网网址檝e had decades to prepare, and make sure weB次元官网网址檙e not in the climate crisis weB次元官网网址檙e in, and it was all about money and they kept moving forward.B次元官网网址�

HeB次元官网网址檒l be looking for allies within RBC investors for the resolution on how the bank assesses how well clients have implemented free, prior and informed consent of Indigenous peoples, as well as on climate action.

B次元官网网址淢oney talks; thatB次元官网网址檚 the world right, that is their world,B次元官网网址� said NaB次元官网网址橫oks. B次元官网网址淚t will be the shareholders and those who do business with RBC that will make the difference. ThatB次元官网网址檚 how it operates. So they just need to listen.B次元官网网址�

Companies in this story: (TSX:RY; TSX:TD; TSX:BNS; TSX:BMO)

Ian Bickis, The Canadian Press

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