Royal Bank of Canada (RBC)

City National Bank, RBC Capital Markets, RBC Wealth Management
Canada, New York
Banks

Corporate Bias Rating

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Risk Level:

Rating - Danger
High Risk

Summary:

RBC Capital Markets (RBC) ran into political controversy due to denying a mortgage to Canadian right-wing news outlet Rebel News, though the bank denies a specific political motivation for the incident. A released phone call detailed that the decision was made not for financial reasons but to avoid working with controversial media. RBC scored a 95 out of 100 on the 2023-2024 Corporate Equality Index (CEI) from the Human Rights Campaign (HRC), a political stakeholder group. By complying with Human Rights Campaign’s controversial demands, RBC increases the risk of dividing employees, alienating customers and harming shareholders. The company provides a benefits package for employees which covers transgender medical procedures for covered employees and dependents, including children. It also uses sex and gender ideology criteria in employee recruitment, vendor selection, marketing, and philanthropic support. RBC forces employees to undergo multiple ideological trainings and uses its reputation, corporate funds, and political influence to support controversial sex and gender ideologies, organizations, and legislation. The company supports the Equality Act, a controversial bill and oppose state-level bills intended to protect the integrity of women's sports. RBC has opposed the Florida Parental Rights in Education Act, which prohibits teaching gender identity and sexual orientation in schools to kids in K-3rdgrade. The company is a PCAF member, committed to net zero carbon emissions by 2050. RBC signed an amicus brief in opposition to the 2016 North Carolina bathroom bill HB2, which required people to use the bathroom of their biological sex. The company opposed various state and local legislation intended to protect parental rights, girls’ sports, bathroom facilities, and gendered spaces. RBC opposed legislation in Iowa intended to protect parental rights, girls’ sports, bathroom facilities, and gendered spaces. The company’s former CEO, John Thurlow, signed the CEO Action for Diversity & Inclusion pledge, which includes a commitment to promote DEI through bias education training in the workplace. RBC allegedly donated to Planned Parenthood, but the bank has since clarified that it does not corporately donate to Planned Parenthood. The company pledged $1.5 million to Black Lives Matter and related causes. City National Bank is a corporate partner of the NGLCC. For these reasons, RBC earns a High Risk rating.

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Shareholder Proposals

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Date
ESG Category
Proponent
Summary of ResolutionMgmt RecTotal Vote % in Favor
4/5/23SocialRacial Equity AuditAgainst42.24%
4/5/23Socialindigenous peoples rightsAgainst26.67%
4/5/23Environmentalthe circular economyAgainst10.81%
4/5/23EnvironmentalFossil Fuel Financing PolicyAgainst6.76%
4/5/23Environmentaladvisory vote on environmental policiesAgainst18.76%
4/5/23Environmentalabsolute greenhouse gas reduction goalsAgainst17.17%
4/5/23EnvironmentalTCFD Reporting for M&A and Direct LendingAgainst7.15%
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