We all know that we need to reduce our CO2 emissions, but how big is the problem? The numbers are sobering: we currently produce 50 billion metric tons of global emissions annually, of which 40 percent goes into sinks, forests and oceans. The remaining 60 percent is currently emitted into the atmosphere.

Dominique Barker, MD and Head, Sustainability Advisory, CIBC Capital Markets helps bring a clear directive to the issue:

“That 60 percent is what we need to get down to net zero.”

Victor Dodig, CIBC’s CEO says that the goal may be a relatively new one, but helping businesses meet their ambitions has always been part of the CIBC story:

“CIBC’s sole purpose is to make our client’s ambitions a reality. We’ve been in business since 1867. We’ve transformed ourselves throughout the decades and throughout the last century and a half. And our goal is to continue to do that into the future, particularly when it comes to sustainable financing activities and a sustainable future.”

Dodig says that financial institutions are in a good position to make a significant impact on emissions, as they have some control over the levers that drive behaviour:

“Banks and our clients focus on commercially viable solutions. The economics of change and sustainability need to work, which they do when they’re constructed in the right way. At the heart of change is technology, and we are financing technology activities to reduce greenhouse gas emissions in the non-renewable sector. We are also part of Project Carbon, a multi-bank effort to tokenize carbon credits for those clients who wish to invest using the blockchain, using tokenization techniques, matching suppliers of carbon credits with buyers of carbon credits.”

Such cooperation with other financial institutions and businesses is key to achieving lasting change, says Kikelomo Lawal, EVP, Chief Legal Officer, Chair, Senior ESG Council, CIBC. Moreover, she argues that sharing data between institutions will be an important piece of a sustainable future:

“Partnerships are crucial, because no one is going to achieve these things in isolation. It really is about sharing information and evolving. As data becomes more available and sophisticated, we can all move forward together.”

Lawal points out that CIBC is engaged in a number of partnerships with organizations such as the Institute for Sustainable Finance, the Sustainable Finance Action Council and Rocky Mountain Institute’s Center for Climate Aligned Finance. She adds that CIBC’s goals are broad based and cut across many objectives:

“The CIBC climate transition strategy involves a 2050 target for achieving net zero greenhouse gas emissions. And that is both with respect to our operational activities and our financing activities.”

Lightsource BP is one partner to which CIBC provides financial and advisory services, helping them achieve their own sustainability objectives. Nick Boyle, Group CEO at Lightsource BP, says that the partnership has accelerated their achievements:

“Our ambition is to put as much solar into the world as possible. We recently have launched an initiative to achieve 25 gigawatts by the end of 2025. We have built a huge amount of momentum over the last number of years and we’ve moved from five countries to now, 15 countries and we’re going to continue to add to the number of countries in order that we can continue to deliver more solar to our world. CIBC has been hugely supportive in us being able to deliver our sustainable journey. It is really essential that those larger banks and financial institutions take the lead in the way that CIBC has done. Only by doing that, can we make sure that we bring all the rest of the financial support institutions along with us into this space.”

Project Carbon is one of the mechanisms for reducing emissions. Dominique Barker explains:

“Project Carbon is a trading platform for carbon credits, which removes friction from the voluntary carbon markets and makes it easier for everybody to transact in carbon credits. Price transparency is a key feature that must be embedded into the voluntary carbon markets. The goal is to incent carbon removal technologies and robust pricing can help mobilize these projects and encourage additional research and development”

With Project Carbon, there are opportunities for the world to make major and rapid changes to emissions, or as Nick Boyle says, “shift from the concept of gigawatts to terawatts.”

Victor Dodig says that CIBC is focused on supporting businesses along their sustainability journey.

“Our purpose is to make our client’s ambitions a reality. That would include sustainability, understanding where our clients want to go with their businesses, how sustainability plays a role and how we can align our own purpose with their goals.”