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RBC local weather motion delicate sufficient to go Texas fossil gas check


Aug 29, 2022

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RBC’s local weather insurance policies have been deemed delicate sufficient to go a Texas check on whether or not banks are boycotting oil and fuel corporations.

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State Comptroller Glenn Hegar final week named 10 monetary establishments together with BlackRock Inc., Credit score Suisse Group AG and UBS Group AG that it deems to be boycotting fossil fuels, which underneath a legislation handed final 12 months means they’re barred from taking part within the state’s sizable bond market.

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Main U.S. banks together with Citigroup, Goldman Sachs, Financial institution of America and JPMorgan Chase wound down their involvement within the state’s bond market final 12 months following passage of the legislation and the same one focusing on banks that boycott gun producers and associations.

The state’s definition of boycotting vitality corporations contains any motion, with out peculiar enterprise function, taken to restrict a financial institution’s business relations with an oil and fuel firm as a result of it doesn’t transcend minimal environmental necessities.

RBC was one in every of 19 monetary establishments that Texas flagged for additional investigation, partially due to the financial institution’s dedication to net-zero lending by 2050.

In a written response to the state’s inquiry, RBC mentioned it drastically values its relationship with Texas, highlighting that it gives monetary providers to many corporations within the oil and fuel business and has a credit score threat publicity to the sector of $25 billion.

This report by The Canadian Press was first printed Aug. 29, 2022.

Corporations on this story: (TSX:RBC)

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