Sustainable Finance

We are committed to increasing opportunities for clients that deliver both competitive financial returns and positive environmental and social outcomes.

Sustainability target

  • Advisory

  • Debt Capital Markets

  • Equity Capital Markets

  • Global Corporate Banking

  • Research & Insights

CIBC has committed $150 billion to sustainable finance activities over ten years (2018–2027). The target is part of our commitment to mobilize the necessary capital and develop innovative market-based solutions to promote sustainability in alignment with broader responsible business practices across CIBC. As the landscape evolves, our goal is to continue to develop solutions that address material non-financial concerns through an integrated Capital Markets platform:

Young woman working on a laptop

Integrated solutions

We are focused on increasing lending and capital markets activities to business leaders who recognize stakeholder capitalism through a range of green, transition and/or sustainability-linked financial products.

CIBC Capital Markets has a long history of advising clients in the energy, power and utilities sectors. In 2018 and 2019, CIBC contributed $26.4 billion toward sustainable finance activities, achieving a cumulative 18% of our 10-year target. Renewable and emissions-free energy represented the largest market sector at 68.5% of the total in 2019.

Green Loans

Green loans are structured to meet the requirements of the Green Loan Principles set out by the Loan Markets Association and allow borrowers to finance environmentally focused corporate initiatives. Examples of eligible activities include:

  • Production, transmission, and distribution of renewable energy, including storage and smart grids

  • Energy efficiency projects including refurbishment of buildings, energy storage, district heating, smart grids

  • Pollution prevention and control, including reduction of air emissions and greenhouse gases and waste management

  • Clean transportation including electric, hybrid and public rail

  • Sustainable water and wastewater management

  • Green buildings which meet regional, national, or internationally recognized standards

Sustainability-linked loans

Sustainability-linked loans are general corporate purpose loans used to incentivize borrowers’ commitment to sustainability and to support environmentally and socially sustainable economic activity and growth.

Sustainable finance bonds

We advise on the structuring of sustainability focused bonds to enable issuers to access a wider investor base as well as link their sustainability strategy to their financing strategy. Bonds can be structured as either a specific “use of proceeds” or for general corporate purposes. Examples include:

  • Green bonds

  • Social bonds

  • Sustainable bonds

  • Transition bonds

  • Sustainability-linked bonds

Our evolving sustainable investment universe

We continue to play an active role in the promotion and creation of sustainable financial products across asset classes in alignment with our clients’ interests and long-term investment goals.

MSCI ESG index-based principal protected notes

ESG-based ETF services

Proprietary ESG index / quantitative investment strategies

Interest rate & currency hedging solutions for renewables

Deal-contingent hedges for M&A in renewable sectors

Sovereigns, supranationals & agency investing solutions

Commodity sales & trading of carbon credits and renewable energy credits (RECs)*

Monetization of credits through derivatives

Green bond distribution

Securitization of various sustainability products

*Products pending launch.

Transition finance

Why we see responsible investing as an opportunity.

With a wide range of global sustainability challenges and complex non-financial risks on the rise, the world is in the midst of transitioning to stakeholder capitalism where sustainability is at the forefront of decision-making for corporations, asset managers and investors. We believe banks have an active role to play in the transition and, as such, are founding supporters of the Institute for Sustainable Finance’s mission of aligning mainstream financial markets with Canada’s transition to a lower carbon economy.

We are helping to create and establish guidelines on transition finance which will make a significant reduction of GHG emissions from carbon-intensive sectors. In order to achieve the goals of the Paris Climate Agreement, many industries are transitioning their activities to be net-zero by 2050. These transition finance guidelines will help investors, companies and financial intermediaries in channeling and accessing capital to achieve these goals.

We are a funding member and active participant in the development of a “Transition Finance Taxonomy” as part of a National Standard of Canada for Transition Finance being led by the Canadian Standards Association. This work was initiated based on the recommendations put forward in the Government of Canada’s Expert Panel on Sustainable Finance Final Report dated June 2019.

In addition, we are a member of the Climate Transition Finance Working Group established under the auspices of the International Capital Markets Association. The intent of this working group is to guide the market on best practices to qualify for transition finance.

Sustainability research

Institutional Equity Research

Our highly ranked research team offers select ESG considerations as part of their economic, industry and company analysis. Our reports are complemented by corporate and analyst meetings to help keep clients on top of stock market activity and the outlook for different industries and companies.

New ESG, quantitative and technical scorecard

In the continued effort to augment our product offering to clients, CIBC Equity Research is now including a tear sheet highlighting select metrics for ESG (Environmental, Social and Governance), Quantitative and Technical factors within its fundamental research reports. The ESG offering includes in-house CIBC performance metrics and leverages Sustainalytics' Risk Ratings Methodology for about 250 companies under coverage, including almost all of the S&P/TSX Composite companies.

Global research partners

We’re proud to provide our Canadian clients with access to leading regional research through our growing list of partners. Piper Sandler (U.S.), Peel Hunt (UK), and CIMB (ASEAN), our clients gain valuable insight through exclusive regional expertise, local knowledge, and access to specialist events.

Products include full ESG integrated company profiles, wide ranging thematic research, bespoke work, news flow alerts, detailed regulatory commentary and daily and periodic email content.

*Access to research through our global research partners may be restricted to entitled users. CIBC clients may contact their CIBC Institutional sales representative for more information.

Recent Transactions

CIBC Capital Markets & Sustainability

Increasing opportunities for clients through an integrated set of sustainable capital markets solutions.

CIBC's 2019 Sustainability Report

Sustainability is at the heart of our purpose to help make our clients’ ambition a reality.