麻豆影视

Business

    • Canada banks face 'greenwashing' claims as oil and gas firms obtain sustainable financing

    A pumpjack works at a well head on an oil and gas installation near Cremona, Alta., Saturday, Oct. 29, 2016. THE CANADIAN PRESS/Jeff McIntosh A pumpjack works at a well head on an oil and gas installation near Cremona, Alta., Saturday, Oct. 29, 2016. THE CANADIAN PRESS/Jeff McIntosh
    Share

    For banks in Canada, one of the world's largest oil producers, it's not easy being green.

    In the past two years, Canadian banks have increased the amount of sustainability-linked financing (SLF) they extend to oil and gas clients. SLF refers to financing whose cost changes when certain environmental, social and governance (ESG) requirements are met at the company level but does not require the funds themselves to be used for climate-friendly purposes.

    This has led to accusations of "greenwashing," with some environmental groups and investors claiming banks are using SLF merely to pretend to lower their carbon footprint rather than take meaningful steps in that direction.

    If the use of financing instruments that do not require a reduction in overall carbon emissions keeps growing, it could delay banks' readiness for Canada's transition to a low-carbon economy, leading to higher risk and increased capital requirements to offset these.

    The central bank and financial regulator have already warned that a lack of preparedness by the banks could expose them and investors to "sudden and large losses."

    "This is a dangerous path to go down," said Angus Wong, campaign strategist at nonprofit environmental group SumOfUs, which represents thousands of Canadian bank investors. "These are just loans and bonds and adding one word like 'sustainability' and adding it to sustainable financing numbers ... really smacks of greenwashing."

    The issue is especially pertinent in Canada, where SLF accounts for a bigger proportion of all sustainable financing than globally, as it offers a green option for the country鈥檚 extractive industries that typically cannot use more specific tools like so-called green bonds.

    Sustainable financing is mostly made up of two kinds of products: SLF, and use-of-proceeds tools like green bonds, which must be utilized for environmentally friendly activities.

    But the flexibility of the former means the financing terms can even allow for increases to emissions, which many critics say enables heavy emitters to lay a false veneer of sustainability over business as usual.

    Many of the banks - including Royal Bank of Canada RY.TO, Toronto-Dominion Bank TD.TO and Bank of Montreal BMO.TO - have said that an orderly transition to a net-zero economy could take years and that the oil and gas industry needs ongoing support to meet continued demand as energy alternatives such as wind and solar are developed.

    Net-zero emissions refers to the goal of emitting no greenhouse gases through human activities or offsetting them through processes or technologies that capture them before they are released into the atmosphere.

    With increased focus on the transition to net-zero emissions, the use globally of sustainability-linked instruments (SLIs) more than quadrupled in 2021, according to Refinitiv data. In Canada's nascent market, their use grew nearly 20 times from 2020.

    Sustainability-linked bonds (SLBs) have made up 11.2% of all sustainable bonds in Canada since the start of 2021, versus 9.8% globally, according to Refinitiv data. Energy companies issued a third of this.

    Canadian companies' nearly $31 billion of sustainability-linked loans (SLLs) accounted for 90% of all sustainable loans in the same period, compared with 85% globally. Traditional energy companies made up 10% of these in Canada, from none in 2020.

    Although Canadian banks do not currently face charges for funding high emitters, authorities have said climate disclosures will be required from 2024 and have hinted at future capital requirements.

    'GOLD RUSH MENTALITY'

    Canada is the world's fourth-biggest oil producer and sixth-largest natural gas producer, with the industry accounting for about 5% of gross domestic product.

    Canadian banks, among the biggestfinanciers of fossil fuels globally, are treading a fine line between their net-zero commitments and their pledges to continue supporting oil and gas clients.

    The banks are incentivized to boost sustainable financing numbers because the government's C$9.1 billion emissions reduction plan and the growing popularity of green financing have created a "gold rush" mentality, said Matt Price, director of corporate engagement for Investors for Paris Compliance (IPC).

    Recent SLB issuances by pipeline operator Enbridge Inc ENB.TO and oil producer Tamarack Valley Energy Ltd TVE.TO have shone a spotlight on the issue.

    Their SLBs had two features that often draw criticism: a focus on cuts to emissions per unit of production, called intensity targets, rather than total emissions, and the absence of reduction targets for the biggest source of emissions, indirect ones from the company's value chain, called Scope 3 emissions.

    Tamarack's issuance, as well as a previous SLL facility, funded acquisitions that would increase its oil production.

    The use of intensity targets over absolute ones is due to continued growth in end-demand in some sectors like power, said Lindsay Patrick, head of ESG at RBC Capital Markets.

    Scope 3 emissions are omitted from many companies' reduction goals because of a lack of data accuracy, methodology differences and little control over end demand, she said.

    As regulatory focus grows, "we will all just become much more fluent in the language of greenhouse gas emissions," which will lead to better alignment of what ESG-focused investors want and what companies provide, Patrick said.

    Canada's other major banks either declined to comment or did not respond to requests for comment.

    If an oil company commits only to reducing the emissions intensity of its operations, which would exclude Scope 3 emissions, "we would not consider that to be a credible sustainability-linked instrument," said Kevin Ranney, senior vice president of corporate solutions at Sustainalytics.

    "A credible SLB needs to include at least one (requirement) that points to the transition of the company's business model," he said.

    Intensity-based targets are a "valid and recognized" way to reduce emissions, allowing the company to focus first on improving its assets' efficiency, an Enbridge spokesperson said, adding its 2050 target is focused on absolute emissions.

    There is no current guidance on what constitutes Scope 3 emissions for the midstream sector, he said.

    Tamarack did not respond to a request for comment.

    To be sure, most bank investors do not oppose the provision of sustainable financing to traditional energy companies. A shareholder proposal brought by IPC at Royal Bank's April shareholder meeting calling for an end to the practice received only 9% of votes in favor.

    "Canada has an oil and gas industry that needs significant injection of capital in order to reduce its emissions," said Jamie Bonham, NEI Investments' director of corporate engagement.

    Nevertheless, "I don't think it should all be ... included in the same (sustainable financing) bucket," he said. "The current blurring of the lines ... is what is leading to claims of greenwashing."

    (Reporting by Nichola Saminather in Toronto. Additional reporting by Nia Williams in Calgary and Simon Jessop in London. Editing by Denny Thomas and Matthew Lewis)

    CTVNews.ca Top Stories

    Why brain aging can vary dramatically between people

    Researchers are uncovering deeper insights into how the human brain ages and what factors may be tied to healthier cognitive aging, including exercising, avoiding tobacco, speaking a second language or even playing a musical instrument.

    The union representing some 1,200 dockworkers at the Port of Montreal has overwhelmingly rejected a deal with their employers association.

    A man who was critically injured in a police-involved shooting in Hamilton late Sunday afternoon has died in hospital, says the province鈥檚 police watchdog.

    opinion

    opinion How to transition from renting to owning a home in Canada

    In his column for CTVNews.ca, personal finance contributor Christopher Liew offers a step-by-step guide on how to make the shift from renting to becoming a homeowner, and what you can start doing today to help the process go smoother.

    Canada

    World

    Politics

    • Murray Sinclair鈥檚 family members say the late justice and senator has been laid to rest according to his wishes.

    • Prime Minister Justin Trudeau announced voters in Cloverdale鈥擫angley City will pick their next member of Parliament on Dec. 16.

    Health

    • Why brain aging can vary dramatically between people

      Researchers are uncovering deeper insights into how the human brain ages and what factors may be tied to healthier cognitive aging, including exercising, avoiding tobacco, speaking a second language or even playing a musical instrument.

    • Researchers say taking a peek inside a person's brain is as difficult as understanding the universe or discovering the ocean in its entirety.

    Sci-Tech

    Entertainment

    Business

    Lifestyle

    Sports

    Autos

    Local Spotlight

    For the second year in a row, the 鈥楪ift-a-Family鈥 campaign is hoping to make the holidays happier for children and families in need throughout Barrie.

    Some of the most prolific photographers behind CTV Skywatch Pics of the Day use the medium for fun, therapy, and connection.

    A young family from Codroy Valley, N.L., is happy to be on land and resting with their newborn daughter, Miley, after an overwhelming, yet exciting experience at sea.

    As Connor Nijsse prepared to remove some old drywall during his garage renovation, he feared the worst.

    A group of women in Chester, N.S., has been busy on the weekends making quilts 鈥 not for themselves, but for those in need.

    A Vancouver artist whose streetside singing led to a chance encounter with one of the world's biggest musicians is encouraging aspiring performers to try their hand at busking.

    Ten-thousand hand-knit poppies were taken from the Sanctuary Arts Centre and displayed on the fence surrounding the Dartmouth Cenotaph on Monday.

    A Vancouver man is saying goodbye to his nine-to-five and embarking on a road trip from the Canadian Arctic to Antarctica.

    • Weather watchers were treated to an exceptionally rare display on Friday evening as rare cloud formations filled Vancouver skies.

    • For some shoppers it was Nov. 1, but for others the first hints of Christmas - saccharine treats, festive-fragranced candles and gaudily wrapped gift sets - were being noticed in stores long before the final Halloween decor had been cleared.

    • Thousands of people are expected to gather in downtown Vancouver on Monday to observe the city鈥檚 100th Remembrance Day ceremony.

    • Toronto is expected to see an economic boost to the tune of nearly $300 million thanks to Taylor Swift鈥檚 upcoming Eras Tour, which will be making a stop in Canada鈥檚 largest city for a six-show run later this month.

    • One man was transported to hospital early Monday morning after a stabbing in the northwest end of the city, Toronto police say.

    • A man who was critically injured in a police-involved shooting in Hamilton late Sunday afternoon has died in hospital, says the province鈥檚 police watchdog.

    • A pair of 105-mm howitzers bark constantly as they turn plywood tank targets into kindling kilometres away on the windswept landscape of one of Canada's largest military bases.

    • Two semis were among the vehicles involved in a multi-vehicle crash that brought westbound traffic along Stoney Trail Northwest to a standstill on Sunday.

    • More than 700 people danced, ate, and sang to celebrate Diwali Saturday night at the Genesis Centre in northeast Calgary.

    • NEW THIS MORNING

      NEW THIS MORNING

      An Ottawa boy with a rare disease will be getting the chance to see Taylor Swift in concert after the winner and organizers of an auction held on his behalf gifted the tickets to him.

    • CTVNewsOttawa.ca looks at Remembrance Day ceremonies in Ottawa.

    • After months of controversy surrounding a dog park in Ottawa's west end, a solution has been reached to divide the park in half.

    • A First Nation near Quebec City says the provincial government and Quebec鈥檚 hydro utility have ignored their constitutional duty to consult about four planned wind projects south of the Saint Lawrence River.

    • The union representing some 1,200 dockworkers at the Port of Montreal has overwhelmingly rejected a deal with their employers association.

    • Two vehicles were set on fire in Montreal鈥檚 east end Riviere-des-Prairies neighbourhood.

    • Monday is Remembrance Day, a time to honour armed forces members who have died in the line of duty.

    • Boasting 2,300 square metres of skating space at its new location, Edmonton's Rollers Roller Rink believes it is the largest in Canada.

    • A woman is dead after a driver crashed a truck through a Boston Pizza in Fort McMurray late Saturday morning.

    • A pillar in Canada鈥檚 history was honoured in Winnipeg Sunday afternoon, with thousands showing up to pay tribute to the life and legacy of the late Murray Sinclair.

    • Winnipeg police have identified two men involved in a stabbing incident earlier this week.

    • The Winnipeg Blue Bombers whipped the Saskatchewan Roughriders 38-22 in Saturday's CFL West Division final to earn their fifth consecutive trip to the Grey Cup.

    • Regina author Valerie Crowther is celebrating the release of her book 鈥榃ar Letters: Linking Lives in the Second World War.鈥

    • It was a somber day at Mosaic Stadium as members of the Saskatchewan Roughriders officially cleaned out their stalls and closed the book on the 2024 season.

    • Twilight Tech Arcade, an entertainment location specializing in retro gaming, is closing its doors for the foreseeable future.

    • A man has been charged after a stabbing at an apartment building in Kitchener.

    • The Guelph Police Service is putting out a warning after two deaths in the downtown area.

    • Two new tributes to Canada鈥檚 veterans have been unveiled at the Elmira Cenotaph.

    • Saskatchewan RCMP are searching for a suspect after a man was seriously injured in a farm-related incident in Montreal Lake.

    • It was a somber day at Mosaic Stadium as members of the Saskatchewan Roughriders officially cleaned out their stalls and closed the book on the 2024 season.

    • The Regina Rams claimed the Hardy Cup after a hard fought battle against the Saskatoon Huskies 19-14 on Saturday in the first all Saskatchewan U-Sports western conference final since 2002.

    • CTVNewsNorthernOntario.ca is livestreaming the annual Remembrance Day ceremony at the Sudbury Community Arena starting Monday at 10:30 a.m.

    • Police have arrested a 15-year-old in connection with a break-in and $50,000 in damage done to the Centennial Arena in Elliot Lake in September.

    • Emergency crews responded to the scene on Road 68/Highway 2 east of Thamesford around 7 p.m.

    • On Friday, the Sarnia Police Service (SPS) received a report of an alleged abduction in the area of Kathleen Avenue and Walnut Avenue.

    • The events will start at 10:15 a.m. with a parade that forms up in front of the Delta London Armories, marches east on Dundas Street and turns north onto Waterloo Street to Dufferin Avenue, the west to the Cenotaph.

    • A group of former NHL players faced off against York Regional Police officers in Newmarket Sunday afternoon to raise funds for Special Olympics programs across the province.

    • A driver is facing multiple charges after a multi-vehicle collision on Highway 400 early Sunday morning.

    • The agreed statement of facts was read to the court on Friday in the case of Alex Williams, the 24-year-old jail guard charged last fall with smuggling cannabis and tobacco into Central North Correctional Centre in Penetanguishene.

    • One person has been arrested after Chatham-Kent Police Service (CKPS) received multiple complaints about an alleged drunk driver.

    • More details have been released about a police investigation at the Ambassador Bridge that connects Windsor, Ont. and Detroit, MI.

    • An individual is dead following a collision involving a motorcycle in Kingsville.

    • Environment Canada says heavy rain and winds could cause power outages on Vancouver Island as an "intense" storm system is set to hit the B.C. coast Sunday.

    • Six deer were struck by vehicles in six different locations in a six-hour period on B.C. highways on Saturday, according to the transportation ministry.

    • The union for locked-out port workers in British Columbia says the BC Maritime Employers Association cut off talks in less than an hour Saturday, refusing to budge on a final offer that the union has so far rejected.

    • The emergency department at South Okanagan General Hospital in Oliver, B.C., will be closed for 31 hours this weekend, the second such closure in a week and the third since the start of November.

    • Police in Kamloops, B.C., are reminding parents and guardians to check their children's Halloween candy after receiving a report of a mother finding a razor blade in one of her daughter's treats.

    • More than two years after Alannah Brown and Douglas Barker were found dead north of Penticton, police are asking for help identifying a vehicle they believe was associated with the crime.

    • The Southern Alberta Recreation Association is officially announcing the Town of Taber as next year鈥檚 host for the Southern Alberta Summer Games.

    • The Lethbridge Hurricanes broke open a close game with three goals in the first two minutes of the third period as they defeated the Warriors 7-3 in a game played Friday night in Moose Jaw.

    • There might not a lot snow just yet, but many southern Albertans are still itching to get outdoors.

    • Police have arrested a 15-year-old in connection with a break-in and $50,000 in damage done to the Centennial Arena in Elliot Lake in September.

    • Mayors of the five largest cities in northern Ontario met in North Bay the last two days to discuss a range of critical issues impacting their cities and the region.

    • Residents in the Sault expressed concerns ranging from vandalism to privacy invasions during recent consultations on the city's plan to install automated speed enforcement cameras.

    N.L.

    Shopping Trends

    The Shopping Trends team is independent of the journalists at 麻豆影视. We may earn a commission when you use our links to shop.聽Read about us.

    Stay Connected
    Follow 麻豆影视