rbc-oil sands financing
TRANSCRIPT
BUSINESS & GLOBAL SOCIETY
RBC – FINANCING OIL SANDS
Ankita BagriDiluk PereraGuy Pavlov
Mauricio BergamaschiShannta BadgettTroy Wei Yiqi
Introduction
SHOULD THE ROYAL BANK OF CANADA (RBC) CONTINUE TO FINANCE OIL COMPANIES INVOLVED IN THE EXTRACTION OF OIL FROM OIL SANDS IN THE PROVINCE OF ALBERTA IN CANADA?
Overarching Issue
Our Position“WE WILL TAKE A LEAD TO HELP THE OIL INDUSTRY ECOSYSTEM INTO A SUSTAINABLE FUTURE BY
CONTINUING TO FINANCE THE MOST ENVIRONMENTALLY FRIENDLY PROJECTS.”
System Fragility
RBC SWOT Analysis
System Dynamics
Recommendations
Agenda
Stakeholder Analysis
• OVER 10% OF THE RBC REVENUE IS GENERATED VIA FINANCING OIL SANDS INDUSTRY; AN INDUSTRY THAT HAS ATTRACTED LOT OF NEGATIVE ATTENTION.
WHY OIL SANDS INDUSTRY IS NOT SUSTAINABLE?
• CANADA COULD FIND ITSELF AN ENERGY SUPERPOWER OVERSPECIALIZED IN THE ‘OLD ECONOMY’ (RESOURCE EXTRACTION) IN A WORLD RAPIDLY TRYING TO CUT CARBON EMISSIONS AND AVOID CATASTROPHIC CLIMATE CHANGE
• OIL SANDS INDUSTRY IS RUNNING THE EXPLOSIVE CANADIAN GROWTH ENGINE- THE AVERAGE GROWTH IN ALBERTA’S GDP IS 12.7% PER ANNUM
• 90% OF THE NEW JOBS IN CANADA WERE CREATED IN ALBERTA, A PROVINCE WITH 11 PER CENT OF THE POPULATION
System Fragility
RBC SWOT Analysis on Financing Oil
Strengths Weaknesses
ThreatOpportunities
• Public opinion• Biggest financier of oil companies• Strong reputation • Spread across the globe
• Lead environmental initiative• Group Therapy with Banks• Alliance with Environmental Organizations• Balanced Approach
• Competition from other banks• Increased environmental objection• Regulatory and legal changes• Abandoned by consumers
Stakeholder Analysis - Oil Sands Financing
Levelof
Power
Level of Interest
Oil Companies (+)
Other Banks (+)
RAN (-)
First Nations (-)
Canadian Society (+/-)
Rest of the World Society (-)
Canadian Government (+)
RBC (+)
System Dynamic
Pollution
Negative Public Opinion
Government Perception
Banks Financing Oil Projects
B
BR
Economic Growth
R
PROFITSProject 1
Project 2
Project 3
Project 4
Project 5
Project 6
SUSTAINABILITYProject 5
Project 3
Project 2
Project 4
Project 6
Project 1
Finan
ce
Reject
Sustainability Evaluation
RBC
Oil compani
es
Banks
Government
Academy
RAN
Public
Research
Advise
Build Coalition
Take Initiative
Outline Plans
Invite
Other Banks
NGOs
Customers
Engage
Forum
Panels
Discussion
Public
Marketing Campaign
1 2 3
Sustainability
Evaluation
Build Coalition
MarketingCampaign
Recommendation
What kind of business leaders would you be?
“WE WILL TAKE A LEAD TO HELP THE OIL INDUSTRY ECOSYSTEM INTO A SUSTAINABLE FUTURE BY CONTINUING FINANCING THE MOST ENVIRONMENTALLY FRIENDLY PROJECTS.”