Four of Canada’s largest banks have left the Net-Zero Banking Alliance (NZBA), following the departure of six major US banks from the group that aims to improve climate action among financial institutions over the past few weeks.
Bank of Montreal (CSE:BMO), National Bank of Canada (TSX:NA), Toronto-Dominion Bank (TSX:TD) and Canadian Imperial Bank of Commerce (CIBC) (TSX:CM) confirmed on Friday they are no longer members of the alliance.
In anticipation of Donald Trump's presidential inauguration, financial institutions are retreating amid ongoing criticism from US Republicans regarding climate alliances and the incorporation of environmental risks into business practices.
Each Canadian bank emphasized its confidence in its internal capabilities to manage climate strategies without the support of the NZBA.
BMO spokesperson, Jeff Roman, stated that the bank is "fully committed to our climate strategy" and possesses "robust internal capabilities" to implement relevant international standards and regulatory requirements.
This sentiment was echoed by CIBC, which noted that it has made substantial progress in its climate initiatives and feels well-positioned to continue this work independently.
"Having made significant progress alongside our clients in these areas, we are now well-positioned to further this work outside of the formal structure of the NZBA," CIBC spokesperson Tom Wallis said.
National Bank cited a desire to streamline how it reports on its plans and progress as a key reason for its exit.
Similarly, TD indicated a preference for streamlining its reporting processes regarding climate initiatives.
Shares of BMO traded higher following its exit from the group, trading up 0.5% at C$144 on Monday morning in Toronto. National Bank added 0.8% and CIBC added 0.2%, while TD shares traded down 0.8%.