RBC Abandons $500 Billion Sustainable Finance Goal Amid Greenwashing Law Changes

The Royal Bank of Canada (RBC) has announced it is abandoning its commitment to mobilize $500 billion in sustainable finance by 2025, citing recent amendments to Canada's Competition Act that require stricter substantiation of environmental claims and increase legal risks for greenwashing. The bank's latest sustainability report revealed concerns that its previous methodology may not have appropriately measured some of its sustainable finance activities, prompting a review and subsequent withdrawal of related disclosures, including comparisons of high- and low-carbon energy financing. The new legal environment, which now allows third parties to challenge environmental claims and requires scientific verification, has led RBC to limit its public reporting on several climate-related metrics. Critics argue this move represents a significant setback in climate finance leadership and highlights the limitations of voluntary corporate commitments, while RBC maintains it remains committed to sustainable finance within the bounds of evolving regulations.