RBC is taking significant steps toward reducing its carbon footprint with a new multi-million-dollar initiative aimed at retrofitting its extensive network of retail branches across Canada. The plan, announced in 2024, will see RBC invest $35 million over three years to install energy-efficient, low-carbon heating and cooling systems in its 1,200 branches. This move is expected to reduce the bank’s onsite carbon emissions by 10,000 tonnes.
The retrofit plan focuses on replacing outdated HVAC equipment with electric heat pumps, which are more energy-efficient and environmentally friendly. RBC is responsible for the HVAC systems in 62% of its branches, and the bank aims to complete these upgrades by 2035. For the remaining branches, where landlords control the HVAC systems, RBC will work closely with property owners to pursue electrification. The bulk of this work is set to begin in Spring 2025.
RBC's retail locations account for approximately 40% of the bank’s operational carbon emissions. By upgrading to modern, efficient systems, RBC estimates it can reduce these emissions by 70%. This initiative aligns with the bank’s broader climate goals, as outlined in its 2023 Climate Report, which include reducing global GHG emissions and increasing the use of renewable energy. RBC has already made significant progress, sourcing 100% of its global electricity from renewable sources and reducing its emissions by 67% since 2018.
Jennifer Livingstone, Vice President of Enterprise Climate Strategy at RBC, emphasized the importance of reducing emissions from the bank’s buildings. "This ambitious commitment is one of our largest opportunities for emissions reduction within RBC's operations," she said.
The retrofit initiative is also part of RBC’s broader efforts to support Canada’s climate targets. The banking sector, along with other commercial buildings, plays a critical role in reducing the country's greenhouse gas emissions, which are essential to achieving net-zero goals by 2050. RBC’s engagement with landlords and its leadership role in the Climate Smart Buildings Alliance further demonstrate its commitment to driving meaningful climate action across the real estate sector.
