RBC, RBC Foundation and RBC Foundation USA have committed C$2 billion by 2035 in support of community ideas to seed, scale and sustain solutions to three of society's biggest challenges
TORONTO, Oct. 30, 2024 /CNW/ - RBC has launched a new approach to community investment aimed at helping to address some of society's most pressing challenges. RBC, RBC Foundation and RBC Foundation USA have committed C$2 billion in philanthropic investment by 2035 to support community ideas that help seed, scale, and sustain solutions in three key areas where they believe they can have a meaningful impact: supporting the transition to a net-zero economy, equipping people with the skills for a thriving future and driving more equitable opportunities for prosperity.
"Strengthening our communities is at the heart of RBC's Purpose to help clients thrive and communities prosper," said Dave McKay, president and CEO, RBC. "For over 150 years, RBC has operated with the understanding that we have a responsibility to help build a stronger future for those we serve. This investment reflects our commitment to driving positive change on societal challenges that threaten our collective prosperity."
Through this new commitment, charitable and not-for-profit organizations will be invited to share their ideas, expertise and experience to help us understand and respond to changing community needs.
"Our community investment partners have the insight needed to drive progress on societal challenges," said Andrea Barrack, SVP, Sustainability & Impact, RBC. "They have the ideas to make that change happen. We are proud to commit C$2 billion by 2035, knowing that together with our partners, we can help unlock solutions to drive positive impact."
The new community investment strategy builds on RBC's Purpose Framework - Ideas for People and PlanetTM, which outlines how RBC will do its part to help address societal challenges as well as engage others to be part of solutions.
Supporting the transition to a net-zero economy
Climate change and biodiversity loss are two of the biggest environmental challenges facing the planet.1 RBC, RBC Foundation, and RBC Foundation USA intend to support projects that reflect the interconnectedness of climate change and biodiversity loss, including projects that:
- Advance climate change mitigation solutions to help reduce greenhouse gases (GHGs), boost energy efficiency and/or promote decarbonization, particularly in the highest emitting sectors; and/or
- Advance nature-based solutions that work with nature, given its inherent ability to sequester carbon and contribute to climate adaptation and ecosystem resilience; or
- Increase environmental sustainability of community spaces by funding capital improvements to reduce the carbon footprint or increase energy efficiency of a newly constructed building, or an existing space.
Equipping people with the skills for a thriving future
With an estimated one billion jobs "liable to be radically transformed" by technology in the next decade, concerns about job security have come to the fore.2 3 Additionally, according to the RBC Economics and Thought Leadership Report, "Green Collar Jobs," 15 per cent of the Canadian labour force will be disrupted in the next 10 years as the country transitions toward a net-zero economy. To provide people with skills allowing for a more adaptive, flexible and inclusive workforce, RBC, RBC Foundation and RBC Foundation USA intend to support projects that:
- Build in-demand skills for the jobs of tomorrow by providing opportunities to gain the skills and knowledge needed to support career preparedness and progression, including in the cultural and creative sectors
- Create access to work experience that facilitates integration and connection to diverse roles to help better position people for the future of work; and
- Advance work readinessthrough relevant credentials by prioritizing sectors in need of human capital to reduce the time required for newcomers to secure employment in the sectors for which they are qualified.
Driving more equitable opportunities for prosperity
Disparities are widening and concerns around affordability are impacting the resilience of communities.4 Many individuals lack the resources or opportunities to improve their economic situation, deepening inequalities.5 6 To help drive more equitable opportunities for prosperity, RBC, RBC Foundation, and RBC Foundation USA intend to support projects that:
- Create stability by addressing food security, housing stability, and access to health services
- Increase financial wellbeing by helping people build financial confidence and manage their current and future financial situations; and
- Increase accessibility of community spaces by funding the physical accessibility of a newly constructed building or retrofit of an existing space.
This C$2 billion commitment includes RBC's longstanding pledge to invest a minimum 1 per cent of RBC's domestic net income before taxes to support charitable and non-profit initiatives in Canada, including through the RBC Foundation. It also includes a community investment target of 1% of net income before taxes (based on a five-year rolling average) in RBC's other core markets (the U.S., the UK and Europe) by 2025.
Applications for this new funding initiative will open on November 1, 2024. For more information, visit Community Investments - Canada.
Caution Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of certain securities laws and may include, but are not limited to, statements in connection with Royal Bank of Canada's (RBC), RBC Foundation's and RBC Foundation USA's (collectively, we, us or our) commitment of C$2 billion in community investments by 2035 and related objectives, priorities, solutions and ideas. By their very nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties which give rise to the possibility that our predictions, expectations or conclusions will not prove to be accurate, that our assumptions may not be correct, and that our C$2B community investment commitment and the related objectives or priorities will not be achieved. We caution readers not to place undue reliance on our forward-looking statements as a number of risk factors, including those discussed in the risk sections of our 2023 Annual Report, could cause our actual results to differ materially from the expectations expressed in such forward-looking statements. Except as required by law, we do not undertake to update any forward-looking statement.
About RBC
Royal Bank of Canada is a global financial institution with a purpose-driven, principles-led approach to delivering leading performance. Our success comes from the 100,000+ employees who leverage their imaginations and insights to bring our vision, values and strategy to life so we can help our clients thrive and communities prosper. As Canada's biggest bank and one of the largest in the world, based on market capitalization, we have a diversified business model with a focus on innovation and providing exceptional experiences to our more than 18 million clients in Canada, the U.S. and 27 other countries. Learn more at rbc.com.
We are proud to support a broad range of community initiatives through donations, community investments and employee volunteer activities. See how at rbc.com/peopleandplanet.
About RBC Foundation
RBC Foundation is a Canadian Registered Charity and Private Foundation. Solely funded by RBC, RBC Foundation provides donations exclusively from RBC's annual earnings, not from third-party or client donations.
About RBC Foundation USA
RBC Foundation USA is a registered 501c3 private foundation. Funded by RBC Wealth Management and RBC Capital Markets, the RBC Foundation USA provides donations exclusively from its annual earnings, not from third-party or client donations.
Media contact:
Sabrina Fraser, RBC
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1. Source: Tackling the Twin Climate Change and Biodiversity Crises, available at IUCN.
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2. Source: The Reskilling Revolution: Better Skills, Better Jobs, Better Education for a Billion People by 2030 (released January 2020), available at the World Economic Forum.
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3. Source: Why 2023 has been the year of strikes and labor movements (released October, 2023), available at The Week.
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4. Source: Distributions of household economic accounts for income, consumption, saving and wealth of Canadian households, first quarter 2023 (released July, 2023), available at Statistics Canada.
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5. Source: Canadian Income Inequality, available at The Conference Board of Canada.
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6. Source: These charts show the growing income inequality between the world's richest and poorest (released December 2021), available at World Economic Forum.
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SOURCE RBC
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