Royal Bank of Canada (RBC) (NYSE:RY) has launched a multi-million-dollar plan to retrofit its Canadian network of 1,200 branches, with the goal of eliminating 10,000 tons of onsite carbon emissions from its operational footprint.
In the first phase of this endeavor, the bank will invest $35 million over three years through the installation of energy efficient, low-carbon heating and cooling systems such as heat pumps, which will replace aging heating, ventilation, and air conditioning (HVAC) equipment. RBC will first begin to convert the 62% of branches where it is responsible for HVAC, aiming to accelerate this work to be completed by 2035. The bank will continue to work on electrification with landlord partners in the remaining locations, with the bulk of the retrofit program to begin in Spring 2025.
RBC stated that nearly 40% of its operational carbon emissions stem from its retail locations across Canada. By updating this essential equipment, RBC estimated total branch emissions can be reduced by 70%.
“Progress is needed to reduce emissions that come from the buildings we work in, which largely stem from their heating source,” says Jennifer Livingstone, vice president for enterprise climate strategy at RBC. “Which is why we have made this ambitious commitment to our clients, colleagues, and other stakeholders including our investors. It is one of our largest opportunities for emissions reduction within RBC’s operations.”
Photo: The installation of an energy efficient electric heat pump HVAC unit at RBC Morningside and Milner Scarborough branch.
