1. Ankita Bagri
Diluk Perera
Guy Pavlov
Mauricio Bergamaschi
Shannta Badgett
Troy Wei Yiqi

2. 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

3. 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.”

4. System Fragility
RBC SWOT Analysis
System Dynamics
Recommendations
Agenda
Stakeholder Analysis

5. • 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

6. 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

7. Stakeholder Analysis - Oil Sands Financing
Level
of
Power
Level of Interest
Oil Companies (+)
Other Banks (+)
RAN (-)
First Nations (-)
Canadian Society (+/-)
Rest of the
World Society (-)
Canadian
Government (+)
RBC (+)

8. System Dynamic
Pollution
Negative Public
Opinion
Government
Perception
Banks Financing Oil
Projects
B
B
R
Economic
Growth
R

9. PROFITS
Project 1
Project 2
Project 3
Project 4
Project 5
Project 6
SUSTAINABILITY
Project 5
Project 3
Project 2
Project 4
Project 6
Project 1
Finance
Reject
Sustainability Evaluation

10. Research Advise
Build Coalition

11. Take
Initiative
Outline
Plans
Invite
Other
Banks
NGOs
Customers
Engage
Forum
Panels
Discussion
Public
Marketing Campaign
1 2 3

12. Sustainability
Evaluation
Build
Coalition
Marketing
Campaign
Recommendation

13. 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.”