Representing Stand.earth, lawyers file letter opposing RBC buyout of HSBC, citing climate and competition concerns
Both RBC and HSBC under cloud of greenwashing investigations by regulatory bodies
OTTAWA, ON,Dec. 8, 2022/PRNewswire/ -- Citing greenwashing and climate concerns, environmental law charity Ecojustice, representing Stand.earth,submitted a letterto Canadian Minister of FinanceChrystia Freelandopposing Royal Bank ofCanada(RBC)'s bid to purchase HSBC's Canadian unitfor CAD$13 billion, unless there are conditions to restrict greenwashing and manage climate change risks.
Copies have been sent toCanada'sCompetition Bureau, financial regulatory body the Office of the Superintendent of Financial Institutions (OSFI), two UK regulators, and the Minister of Environment and Climate ChangeSteven Guilbeault.The letter states:
"Unfortunately, neither RBC nor HSBC has a credible plan for addressing climate change (a major systemic financial risk) and the misleading nature of their public climate commitments contrasted with their fossil fuel financing brings the integrity of their operations into question. Misleading consumers and making false climate promises while financing the primary driver of climate change is not in the best interests of Canadians or the financial system.
"Canadaneeds all economic actors to align with the goal of limiting warming to 1.5°C to reduce climate risks to the financial system and meetCanada'sdomestic and international climate commitments. Greenwashing undermines the actions of institutions who are legitimately committed to and aligned with achieving net zero."
Canada'sCompetition Bureauofficially launched aninvestigation into RBC's alleged misleading climate advertisingafter six members of the public submitted aformal complaint.Similarly, in October theAdvertising Standards Authorityof the UKbannedHSBC climate-related ads after concluding that they were misleading consumers.
RBC isCanada'stop fossil fuel funding bank and the fifth worst funder of fossil fuels in the worldto the tune of CAD$262 billionsince the Paris Climate Agreement. HSBC is thelargest financier of oil and gas expansioninEuropeand the 13th worst in the world, amounting to over CAD$178.13 billionbetween 2016 and 2021.
RBC is financing fossil fuel expansion projects around the world,set to trigger climate breakdownwhile trampling Indigenous and community rights. This includes theCoastal GasLink fracked gas pipelineon unceded Wet'suwet'en territory; the world's largest proposed crude oil pipeline,East African Crude Oil Pipeline(EACOP); and theTrans Mountain Tar Sands Expansion Project pipeline.
In October, aninvestigation by the BBC and the Bureau of Investigative Journalismrevealed billions of dollars HSBC earmarked for 'sustainable' finance supported oil rigs, tree-felling, and airport expansion.
Richard Brooks, Stand.earth Climate Finance Program Director, said:"RBC and HSBC merging is a marriage made in climate hell and greenwashing heaven. RBC's bid to buy HSBC Canada is bad for communities inCanadaand around the world, and we urge regulators to seriously consider all implications, including on climate risk. Two climate laggards merging does not make a climate leader."
Alan Andrews, Ecojustice Climate Program Director, said:"Minister of FinanceChrystia Freelandmust act to protect Canadians from the phony climate claims being peddled by these two banks - and the wider problem of greenwashing in the financial sector. This proposed merger highlights the urgent need for regulations to ensure our banks publish credible climate plans. Climate change is an existential threat to everyone; deception and delay by the big banks puts Canadians and our financial system at risk."
SOURCE Stand.earth
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