CIBC Commits to Carbon Emissions Goals by 2030
The Canadian Imperial Bank of Commerce (CIBC), the multinational banking and financial services corporation, announced its commitment to collaborating with carbon-intensive sectors, particularly the oil and gas sector, for a successful transition to net-zero by 2030.
The company's targets for its oil and gas portfolio include reducing Scope 1 and 2 emissions intensity by 35 per cent and Scope 3 emissions by 27 per cent.
Victor Dodig, President and CEO, of CIBC, said: "Climate change is a critical and defining issue of our time, and CIBC is taking important steps to help mobilize stakeholders and chart a new path towards a low-carbon future. The targets we have set will be key to accelerating our actions aimed at addressing climate change, and we are committed to supporting our clients as we navigate this transition together and realize our shared ambition for a more sustainable future."
CIBC has recently formed an energy-transition investment banking group for its clients in meeting their net-zero targets. The banking group will offer capital market solutions and industry-leading advice to clients in the energy and infrastructure sectors.
Harry Culham, Group Head, Capital Markets, CIBC, said: "We're encouraged by the commitment we're seeing from our clients in achieving their sustainability ambitions, and our team will continue to bring the combined expertise, scale and reach to support them through the transition."
The company commits to dealing with the emissions associated with its corporate lending and facilitated financing that includes an economic allocation for equity capital markets and debt capital markets underwriting.
Setting net-zero objectives across a range of financing operations is a new approach for CIBC, and the bank will continue to use the best available research and adhere to industry norms. Through its loan activities, CIBC also seeks to assist its clients in achieving their transition goals.
Considering the growing impact of climate change, CIBC will set additional goals by 2022. As a member of the Net-Zero Banking Alliance (NZBA), the Center for Climate Aligned Finance (CCAF), and the Partnership for Carbon Accounting Financials (PCAF), and guided by the Task Force on Climate-related Financial Disclosures, CIBC is working with its peers to increase transparency in assessing and disclosing GHGs associated with loans and investments, as well as transitioning these activities to net-zero.
CIBC's climate actions include the following:
Reducing greenhouse gas emissions by 20 per cent from its North American operations
Double sustainable finance mobilisation from $34.9 billion in 2021 to a target of $300 billion by 2030
Among the top 10 in financing for the renewable energy industry across North America
Rolling out Carbonplace, a platform for companies to meet their net-zero ambitions
A $100 million commitment in Limited Partnership (LP) investments in climate tech and energy transition funds