Banks moving forward on measuring key climate financing measure

March 20, 2026 - 03:44

Two of Canada's largest financial institutions, National Bank of Canada and CIBC, have announced a significant commitment to publicly measure and disclose the ratio of their fossil fuel financing to their funding for renewable energy projects. This move marks a pivotal step toward greater accountability in the financial sector's role in the energy transition.

The initiative focuses on establishing a clear, comparable metric often referred to as the "green financing ratio." By tracking this figure, the banks aim to provide stakeholders, including investors and the public, with a transparent view of how their lending and investment activities are aligning with climate objectives. The data will reveal the current balance between supporting traditional energy sectors and funding the growth of clean energy alternatives.

This commitment responds to increasing pressure from shareholders and advocacy groups for concrete action on climate-related financial risks. While many banks have set broad net-zero targets, this specific pledge to measure and disclose the fossil-to-clean financing ratio sets a tangible benchmark for progress. It is seen as a crucial mechanism for tracking whether capital is being redirected at the pace required to meet international climate goals.

The announcement is expected to influence practices across the industry, potentially setting a new standard for climate-related financial reporting in Canada. Other major institutions are now likely to face heightened scrutiny regarding their own disclosure policies on energy financing.