RESOLVED : Shareholders request that CIBC adopt a corporate-wide target to achieve net-zero greenhouse gas emissions associated with its lending and investment activities, as defined by best practice carbon accounting standards, by 2050.



Supporting Statement: The Intergovernmental Panel on Climate Change (IPCC) Special Report on global warming of 1.5°C estimates that human activities have already caused about 1°C of global warming above pre-industrial levels. If global greenhouse gas emissions (GHG) emissions continue to increase at the current rate, warming is likely to reach 1.5°C by 2040 and up to 4°C by the end of the century leading to significant economic and social disruptions.



To limit global warming to 1.5°, all sectors of the economy will need to decarbonize and collectively reach net zero emissions by 2050. Canada is part of a growing list of countries that have adopted net zero by 2050 and aims to reduce GHG emissions by 30% by 2030.



According to Tiff Macklem, Governor of the Bank of Canada: “Many types of business face significant transition risks related to the revaluation of assets and the reassessment of projected earnings and expenses.”



The largest impact financial services companies have on climate change is not through their own operations but through their investment and lending activities.



CIBC is planning to disclose GHG associated with its investment and lending activities but has not indicated any plans to set targets to reduce those financed emissions.



CIBC recognizes that climate change is “one of the world’s most difficult and urgent problems” (CIBC 2019 TCFD Report). CIBC is committed to increasing sustainable finance, but a comprehensive climate change plan would also include a commitment to reduce financed emissions. This would provide investors with relevant information to assess the bank’s ability to manage climate related risks and opportunities.



Although there are uncertainties about how businesses can decarbonize, many companies, including financial institutions such as TD, HSBC and Morgan Stanley, have adopted net zero by 2050 targets. Over 30 institutional investors, including CDPQ and Calpers have committed to transitioning their investment portfolios to net-zero GHG emissions by 2050 (Net Zero Asset Owner Alliance). More than 50 financial institutions have committed to set emissions reduction targets through the Science-Based Target Initiative. 80 financial institutions have committed to measure financed emissions through the Partnership for Carbon Accounting Financials (PCAF), a best practice carbon accounting standards.



This ambition to achieve net zero carbon emission at or before 2050 should be accompanied by interim targets (e.g., 2025, 2030, 2040). A strong climate strategy should also include a governance framework with board’s oversight, expertise and training on climate-related issues, as well as linking executive compensation to any climate-related targets, in line with Task Force on Climate-related Financial Disclosures (TCFD) recommendations.

Given the material long-term business risks and opportunities associated with climate change and the low-carbon energy transition, CIBC should provide greater clarity on how it plans to achieve net zero GHG for its financed emissions. We urge shareowners to vote FOR this proposal.