RBC Bank Retrofitting HVAC Systems at Canadian Branches to Reduce 10,000 Tons of Onsite Carbon Emissions

In the first phase, the bank will invest $25.49 million over three years to install energy-efficient, low-carbon heating and cooling systems such as heat pumps to replace aging heating, ventilation, and air conditioning (HVAC) equipment. The bulk of the retrofit program is scheduled to start in spring 2025.

 

The bank will begin converting the HVAC systems at 62% of its branches and expects to complete the work by 2035. In the remaining locations, it will continue to work on electrification with landlord partners to find appropriate sustainability initiatives. 

 

The bank’s initiative will help accelerate the operational goals outlined in its Climate Report 2023 by reducing RBC's global GHG emissions and increasing the sourcing of electricity from renewable sources.

 

"Progress is needed to reduce emissions that come from the buildings we work in, which largely stem from their heating source," says Jennifer Livingstone, VP of 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."

 

Approximately 40% of the bank's operational carbon emissions come from its retail locations across Canada. According to RBC estimates, total branch emissions are anticipated to be reduced by 70% by updating this essential equipment.

 

Buildings in Canada contribute about 14% of total greenhouse gases annually, and RBC expects 65 million tons of carbon emissions to be saved from the source by 2050 to meet its net zero ambitions. Space heating is estimated to generate 85% of carbon emissions in commercial buildings, and existing technologies will help reduce the emissions. 

 

RBC owns or, through lease agreements, is responsible for controlling 62% of the HVAC units across its retail branches, while its landlords fully control the remaining 38%.

 

According to Jon Douglas, Director of Global Sustainability at RBC, the bank has started an outreach program to understand its landlords' climate targets and discover ways for both parties to work together in achieving mutually desirable goals. Douglas expects the engagement to help drive more climate action in the real estate sector and the bank is in collaboration with a landlord of a leading property to achieve net-zero greenhouse gas emissions at the office site by 2040.

 

RBC is a founding partner of the Climate Smart Buildings Alliance, which was established in 2023 to help reduce emissions in Canada's buildings sector. The alliance focuses on increasing the use of low—and zero-carbon building materials, reducing combustion in buildings supporting a clean grid, and reducing emissions through retrofits and net-zero new builds.