RBC and Pontegadea have entered into a lease agreement committing Royal Bank Plaza in Toronto to achieve net zero emissions by 2040. The property, located at 200 Bay Street, serves as RBC's corporate headquarters. This agreement positions Royal Bank Plaza as an example for emissions reductions in major commercial real estate. Pontegadea will develop a decarbonization roadmap for the property in consultation with RBC.

Landlord Engagement Program

The agreement is part of RBC's Landlord Engagement Program, established in 2023. The program aims to incorporate climate-focused lease clauses within new and renewing lease agreements. It requires landlords to commit to climate-focused actions and share relevant climate data with RBC. Through this program, RBC has secured commitments from global landlords covering over 2.5 million square feet of leased office space with net zero targets by 2040.

Operational Emissions Strategy

RBC is addressing global operational emissions through its Landlord Engagement Program for leased locations and its Branch Retrofit Program for owned and controlled locations. The Branch Retrofit Program focuses on installing heat pumps in the Canadian branch network for heating, ventilation and air conditioning (HVAC) by 2035.

Strategic Impact

Built in 1976, Royal Bank Plaza is RBC's third largest commercial office space globally. The building sector accounts for 18% of Canada's greenhouse gas emissions, according to RBC's Climate Action 2026 Report. Jon Douglas, Senior Director and Head of Climate Operations at RBC, emphasized the importance of collaboration in reducing operational emissions. Eva Ronhaar, Director of ESG at Pontegadea, expressed confidence in delivering meaningful impact at the property.

Royal Bank of Canada has received approval from the Toronto Stock Exchange (TSX) and the Office of the Superintendent of Financial Institutions (OSFI) to repurchase up to 45 million of its common shares for cancellation. This normal course issuer bid represents approximately 3.24% of the 1,389,738,870 common shares issued and outstanding as at May 29, 2026. The initiative provides the bank flexibility to manage its capital position while generating shareholder value.

Purchases under the bid may commence on June 12, 2026 and continue until June 11, 2027, unless the bank completes its purchases earlier. The bank may acquire shares through the facilities of the TSX, the New York Stock Exchange, and other designated exchanges and alternative Canadian trading systems at the prevailing market price. The maximum number of shares that may be purchased on the TSX on any given day is 886,352 common shares, which is 25% of the average daily trading volume for the six months ending May 29, 2026.

The bank will establish an automatic share purchase plan on June 12, 2026, under which its broker, RBC Dominion Securities Inc., may periodically purchase common shares within a defined set of criteria. The actual number of shares purchased, the timing, and the price will depend upon future market conditions.

Previous Repurchase Activity

The bank's previous normal course issuer bid for the purchase of 35 million shares commenced on June 12, 2025 and expires on June 11, 2026. As of the close on May 29, 2026, the bank repurchased 19,168,210 shares under that bid at a volume weighted average price of approximately $215.85 per share.

Key Repurchase Details