Responsible Lending

Key Highlights of our Progress:

• First Canadian bank to sign the Equator Principles in 2003, a commitment to review social and environmental impacts of projects that exceed $10 million in financing.  In alignment with our commitment to the EPs, RBC developed a risk management policy on Social and Environmental Review in Project Finance. RBC also committed to the revised Equator Principles in 2006.
• Continued application of comprehensive environmental risk management policies and procedures in the review and approval of loans and other transactions.  Originally launched in 1992, these policies and processes are proactively reviewed and updated to address regulatory changes, emerging and evolving issues and international best-practices.
• In 2008, RBC environmental risk management experts in Corporate Environmental Affairs performed detailed environmental credit risk assessments on nearly 650 transactions in Canada and the United States.
• Recently completed a study which analyzed the exposure of borrowers in our loan and investment portfolio to climate change risks and regulations.
• Held climate change and carbon markets training sessions for RBC Capital Markets and Risk Management staff in Canada.
• Developed environmental guidelines for reviewing transactions for seven high environmental impact sectors.
• Drafted content for a new environmental risk credit risk policy for corporate lending and investment banking.
• Updated policies regarding environmental risk management for business and commercial markets.
• Drafted additional sector specific guidelines for the chemical industry and forestry sector.