Ahead of the annual general meetings (AGMs) of Bank of Montreal (TSX:BMO), CIBC (TSX:CM) and Toronto-Dominion (TSX:TD) in the coming weeks, SHARE is urging investors to vote for the shareholder proposals requesting that those banks disclose their energy finance ratios.
To read the full proxy alerts for each of the three proposals, click the links below:
As announced last month, a group of international investors is calling on Canada’s biggest financial institutions to report this key metric that allows shareholders to assess the banks’ ability to deal with our new climate reality.
The coalition, led by SHARE and including Denmark’s largest pension fund, PFA Pension forsikringsaktieselskab, is asking the banks to disclose annually their Energy Finance Ratio.
The ratio, which compares an institution’s investment in low-carbon and high-carbon energy sources, is a key indicator for investors to track how a bank is doing in reducing its exposure to fossil fuels and harnessing the opportunities of the energy transition.
The SHARE-led coalition filed proposals at four of Canada’s biggest banks: Scotiabank (TSX:BNS), BMO, CIBC and TD. A similar proposal filed last year by the Office of the New York City Comptroller led to Royal Bank of Canada (TSX:RY) committing to report on its ratio, with the company’s CEO calling the ratio “an important metric going forward.”
Earlier this month, the Bank of Nova Scotia committed to disclosing this key metric by June 1, 2026. However, despite more than a year of engagement — and many options for withdrawal being proposed by the investors since the start of 2025 — TD, BMO and CIBC continue to lag behind.
SHARE recommends shareholders of these three banks vote FOR each proposal because:
- The ratios are a necessary tool to help investors understand how and to what extent the banks are accelerating the pace and scale of investment in clean energy.
- The ratio supplements and complements the banks’ existing and upcoming climate-related financial disclosures.
- Commitment to ratio disclosure from several of of the banks’ Canadian and U.S. peers, including RBC and Scotiabank, demonstrates both the feasibility of the ask under consideration and the growing consensus that it is a necessary metric for investors.
- There is already a well-established methodology developed by a leading financial industry association which the banks can apply, and which can facilitate industry harmonization around these ratios.
IMPORTANT NOTICE
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The views expressed are those of the authors as of the date referenced and are subject to change at any time based on market or other conditions. These views are not intended to be a forecast of future events or a guarantee of future results. These views may not be relied upon as investment advice. The information provided in this material should not be considered a recommendation to buy or sell any of the securities mentioned. It should not be assumed that investments in such securities have been or will be profitable. To the extent specific securities are mentioned, they have been selected by the authors on an objective basis to illustrate views expressed in the commentary and do not represent all of the securities purchased, sold or recommended for advisory clients. The information contained herein has been prepared from sources believed reliable but is not guaranteed by us as to its timeliness or accuracy and is not a complete summary or statement of all available data. This piece is for informational purposes and should not be construed as a research report.
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Please execute and return your proxy card according to BMO, CIBC or TD’s instructions.
