In a significant move towards corporate responsibility and inclusivity, two of Canada's largest banks, Royal Bank of Canada (RBC) and Bank of Montreal (BMO), have pledged to undertake racial equity audits. This decision comes after facing pressure from shareholders to address systemic barriers affecting marginalized communities.
At an annual general meeting on Friday, RBC spokesman Jeff Lanthier announced that the bank would conduct two third-party audits aimed at improving its practices. The first audit, scheduled for 2024, will examine employment practices to identify any biases or barriers that may affect Black, Indigenous, and other racialized groups within the company. The second audit, planned for 2025, will take a broader look at the bank's business practices to ensure they do not disproportionately harm Indigenous Peoples and communities of color.
Lanthier emphasized RBC's commitment to dismantling systemic hurdles that hinder the progress of marginalized groups. The bank's initiative is in response to a resolution put forward by the Shareholder Association for Research and Education (SHARE) and the British Columbia General Employees' Union, aiming to rectify harmful practices.
Similarly, BMO has confirmed its intention to conduct an audit focused on racial equity. This confirmation came after a resolution received significant support from shareholders, with 37% in favor. BMO's audit will also target practices that negatively impact Indigenous Peoples and communities of color.
These announcements mark a step forward in the Canadian financial sector's efforts to promote diversity and inclusivity. Both RBC and BMO are taking proactive measures to ensure their operations are fair and equitable for all stakeholders, reflecting a growing trend in corporate governance where shareholder activism prompts substantive change.
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