RBC releases Energy Supply Finance Ratio, marking a new milestone for investor transparency

TORONTO, September 3, 2026 — Royal Bank of Canada (TSX: RY), has published their long anticipated Energy Supply Finance Ratio (ratio), a key climate finance metric increasingly used by investors to assess how financial institutions are funding the transition to a low-carbon economy. The bank first committed to publishing the ratio in April 2024 and was a leader in disclosing their methodology. Today’s publication of the ratio itself was promised to investors at the 2026 AGM.

Shareholders welcomed the disclosure as a major milestone in improving transparency across Canada’s banking sector and a positive response to SHARE’s years of investor engagement on energy finance disclosure.

Developed by BloombergNEF, the Energy Supply Finance Ratio compares financing for low-carbon energy supply with financing for fossil fuel activities, providing investors with a more consistent and comparable way to assess banks’ exposure to the energy transition. Importantly, the metric clearly distinguishes fossil fuel financing, including liquefied natural gas, from low-carbon energy investments, helping improve transparency and accountability around energy-related financing.

A notable feature of RBC’s methodology is its treatment of natural gas. RBC includes natural gas and LNG financing within fossil fuel financing, providing investors with an accurate picture of energy-related capital allocation. Unfortunately, the bank has taken a different approach to other institutions separating the ratio into two parts, which means investors will have to piece it back together for a full picture.

“Investors are very supportive of RBC’s publication of its ratio as a long anticipated step toward greater transparency and accountability,” said Amanda Carr, Associate Director of Climate Advocacy at SHARE.

“The publication of the ratio is not the finish line, it’s the starting point. What matters next is how RBC uses this information to guide capital allocation and seize opportunities to support a responsible and orderly energy transition.”

RBC’s disclosure comes amid growing investor interest the ratios across Canada’s banking sector. Scotiabank (TSX: BNS) released its ratio earlier this year, CIBC has published a methodology, and  National Bank (TSX: NA) has committed to publish its ratio methodology by April 2027. Other major Canadian banks, including Toronto-Dominion Bank (TSX: TD) and Bank of Montreal (TSX: BMO), have yet to provide comparable disclosures, despite precedent setting shareholder support for proposals requesting publication of the metric.

For more information or to arrange an interview, contact Amanda Panacci, Senior Account Director at Media Profile, amanda.panacci@mediaprofile.com.