- CIBC is committed to collaborating with carbon-intensive sectors for a successful transition to net-zero
- Targets established to reduce Scope 1 and 2 emissions intensity by 35% and Scope 3 emissions intensity by 27% from oil and gas portfolio
TORONTO, March 31, 2022 /CNW/ - CIBC (TSX: CM) (NYSE: CM) today announced targets to significantly reduce the carbon intensity of its financed emissions in the oil and gas sector by 2030. Further to the bank's net-zero ambition associated with operational and financing activities by 2050, CIBC is accelerating climate action and acting on its purpose-driven strategy.
In tandem, CIBC is prioritizing its work with carbon-intensive sectors and increasing support to help those sectors adapt as the world transitions to a low-carbon economy.
CIBC's 2030 targets for its oil and gas portfolio:
- 35% reduction in operational emissions intensity (Scope 1 and 2); and
- 27% reduction in end use emissions intensity (Scope 3) compared to a 2020 base year.
"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," said Victor Dodig, President and CEO, CIBC. "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."
Working alongside its clients in achieving their net-zero ambitions, CIBC recently created an energy-transition investment banking group, with a global focus on delivering industry-leading advice and capital markets solutions to clients across the energy and infrastructure sectors.
"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," said Harry Culham, Group Head, Capital Markets, CIBC.
CIBC's targets include the emissions associated with its corporate lending and facilitated financing, which includes its share of actual economic allocation for equity capital markets and debt capital markets underwriting. CIBC recognizes that setting net-zero targets across a set of financing activities is an emerging practice and will continue to leverage the best available science and follow industry standards. CIBC also intends to support its clients' transition goals through its lending activity.
Recognizing the scale and urgency of climate change, CIBC intends to set an additional target before the end of 2022. As a member of the Net-Zero Banking Alliance (NZBA), the Center for Climate Aligned Finance, 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 bring increased transparency to assessing and disclosing GHGs associated with loans and investments and to transitioning these activities to net-zero.
CIBC's efforts to accelerate climate action include:
- 20% reduction in absolute greenhouse gas emissions (Scope 1 and 2) from North American operations based on our 2018 baseline
- $34.9 billion in mobilization of sustainable financing in 2021 – and doubled our sustainable finance mobilization target to $300 billion by 20301
- Top 10 in financing for the renewable energy industry across North America2
- Launching Carbonplace, a new technology platform for the voluntary carbon market helping companies meet their net-zero ambitions, as part of an international joint effort by leading global banks
- $100 million commitment in Limited Partnership (LP) investments dedicated to investing in key climate tech and energy transition funds
To learn more about CIBC's Net-Zero Approach, please visit: https://www.cibc.com/en/about-cibc/corporate-responsibility/net-zero-ambition.html
Sustainable financing largely relates to client activities that support, but are not limited to, renewable and emission-free energy, energy efficiency, sustainable infrastructure, green buildings, sustainability-linked financings and green financial products. The products offered by CIBC included in our mobilization commitment to support these client activities include loans and loan syndications, debt and equity underwritings, M&A advisory and principal investments.
North American Renewables League Tables by Inframation for transactions closed from January 1, 2021 to September 30, 2021.
A NOTE ABOUT FORWARD-LOOKING STATEMENTS: From time to time, we make written or oral forward-looking statements within the meaning of certain securities laws, including in this press release, in other filings with Canadian securities regulators or the U.S. Securities and Exchange Commission and in other communications. These statements include, but are not limited to, statements in this press release about CIBC's Net-Zero Approach, sustainability goals and its net-zero ambition for both its operational and financing activities by 2050 and statements about our financial condition, priorities, targets, ongoing objectives, strategies and outlook. As we work to advance our environmental, social and governance (ESG) goals, external factors outside of CIBC's reasonable control may act as constraints on achieving these goals, including varying decarbonization efforts across economies, the need for thoughtful climate policies globally, the availability of comprehensive and high-quality GHG emissions data (including from CIBC's clients), the evolution of our lending portfolios over time, reasonably supported methodologies, the need for active and continued participation of stakeholders (including enterprises, financial institutions and governmental and non-governmental organizations), deployment of new technologies and industry-specific solutions, the evolution of consumer behavior, the challenges of balancing interim emissions goals with an orderly transition, and the development of regulations and frameworks internationally. These and other factors, including general business and economic conditions worldwide; amendments to, and interpretations of, risk-based capital guidelines; and changes in monetary and economic policy, may cause actual results to differ materially from the expectations expressed in the forward-looking statements and may require CIBC to adapt its initiatives and activities or adjust its targets. The forward-looking statements in this press release are presented for the purpose of assisting clients and others in understanding our objectives and strategic priorities, and may not be appropriate for other purposes. Forward-looking statements are subject to inherent risks and uncertainties that may be general or specific. We do not undertake to update any forward-looking statement except as required by law.
CIBC is a leading North American financial institution with 11 million personal banking, business, public sector and institutional clients. Across Personal and Business Banking, Commercial Banking and Wealth Management, and Capital Markets businesses, CIBC offers a full range of advice, solutions and services through its leading digital banking network, and locations across Canada with offices in the United States and around the world. Ongoing news releases and more information about CIBC can be found at www.cibc.com/en/about-cibc/media-centre.html.