Good morning. My name is Robert Paré. On behalf of the Board of National Bank of Canada, I would like to welcome everyone joining us today, both in person and remotely, to our annual meeting. I have the pleasure of addressing a few words to you in my capacity as Chair of the Board. To make participation easier, the proceedings are being translated concurrently in both English and French on the webcast and on the phone lines. You may communicate with us in the language of your choice. [Foreign language] Bonjour, mon nom est Robert Paré.
Good morning. My name is Robert Paré. On behalf of the Board of the National Bank of Canada, I would like to welcome everyone joining us today, both in person and remotely, to our annual meeting. I have the pleasure of addressing a few words to you in my capacity as Chair of the Board. To make participation easier, the proceedings are being translated simultaneously in both English and French on the webcast and on the phone lines. You may communicate with us in French or in English.
We invite you to watch a video and take a moment to honor the land on which we are gathered today, which has been cared for by Indigenous people for generations. We acknowledge their enduring connection to this land and express our gratitude for their stewardship.
As we gather here today, we respectfully acknowledge that we are standing on land that has been occupied for thousands of years by Indigenous peoples. In Canada, there are over 630 First Nations communities, as well as vibrant Métis and Inuit peoples whose deep connection to these lands, waters, and skies continues today. First Peoples play a key role in the present and future of this land for the benefit of us all.
We recognize the First Peoples of this land, their inherent rights, histories, and their ongoing presence as custodians of the land. Land acknowledgments are more than words. They are invitations to learn, reflect, and take meaningful action toward reconciliation. Let us commit to deepening our understanding, supporting Indigenous-led initiatives, and building relationships rooted in respect, reciprocity, and truth.
We are pleased to hold this year's annual meeting in Calgary, a city known for its dynamic growth and vibrant community. This is our second annual meeting here since 2014, and we are particularly honored to be here as we embark on an exciting new chapter for our organization. On February 3, National Bank completed the acquisition of Canadian Western Bank, a milestone in the transaction we first announced in June 2024.
That day marked a pivotal step in our history, the result of over a year of hard work and collaboration between our two institutions. This transaction brings us together, uniting our shared commitment to clients' excellence and innovation, as well as strengthening our position as a leading bank in Canada. Our clients will enjoy an enhanced range of services while our dedicated employees from coast to coast have joined forces to reinforce our organizational culture.
Together, we aim to leverage our collective strengths to deliver exceptional value and continue driving positive change in the communities we serve, communities that remain at the heart of our commitment to you. Our Board of Directors' current focus is to ensure, and it's really the prime focus, to ensure a smooth and positive integration experience to both our clients and team members.
We are privileged to have recently welcomed two CWB board members to our Board of Directors: Sarah Morgan-Sylvester, CW past chair—where are you, Sarah? You're there. Thank you—from BC, and Irfhan Rawji from Alberta. Irfan, thank you. Sarah joins the board with an extensive background in financial services, and Irfan brings rich experience with venture capital and innovative Canadian entrepreneurs. Both have a deep understanding of Western Canadian perspective and a wealth of knowledge about CWB client talents and operations. Their expertise will greatly complement our board.
The composition of our board is a key aspect of our governance, and we are proud to have a strong and competent team. This evolution of our strategy also led us, on August 1, 2024, to welcome Scott Burrows—where are you, Scott? All right—to the board, to our board. His leadership in the energy sector as President and Chief Executive Officer of Pembina Pipeline Corporation, combined with a deep understanding of a major player in Western Canada, enhances our board's expertise as National Bank continues to grow.
Sarah, Irfan, and Scott, on behalf of all of us, I extend a warm welcome to the Board of Directors and look forward to our continued collaboration, I would say, on a vast range of matters, which includes a fresh, new, and welcome perspective of the Canadian hockey team in the series, a very, very important point for our CEO. [Foreign language]
As part of the bank's succession planning process and in line with our strategic priorities, including the integration of CWB, we also announced the appointment of Jean-Sébastien Grisé as Executive Vice President, Risk Management, and Chief Risk Officer. Judith Ménard, as Senior Executive Vice President, Commercial and Private Banking, and Dominique Paradis, as Executive Vice President and General Counsel. They join a dedicated and highly talented senior management team, having spent many years in senior positions within the bank.
To take this opportunity to highlight the strong trust and ongoing collaboration between the bank executive and the board. Your dedication and leadership are invaluable, and we sincerely thank you for your continued commitment. Special thanks to Laurent for his extraordinary vision and stewardship, which has been instrumental in driving our success. It is also my pleasure to warmly welcome our thousands of new employees from CWB who have joined the bank.
We're excited to have you on board and look forward to working together as we continue to build an even stronger and more unified bank. The board is thrilled to continue supporting the bank as we embark on this chapter of growth and expansion. We're confident in the bank's ability to create lasting value for all its stakeholders, and we look forward to the opportunity ahead as we build on this momentum. [Foreign laguage] À tous nos employés, merci pour votre travail et votre.
To all our employees, thank you for your hard work and unwavering commitment. Your talent and dedication are what make our shared mission so remarkably successful, with a positive impact that extends to our customers, partners, and the communities we serve. Each of you plays a vital role in our growth and success, and I have every confidence that we will continue to thrive together.
My introductory remarks, sorry for this, without sincerely thanking you, our shareholders, for your continued trust. We understand that with growth comes greater responsibility and challenges. We will succeed. [Foreign language]
I would like to express my sincere gratitude to you, dear shareholders, for your continuing confidence in the bank. We are aware that growth brings new challenges and increased demands. I am confident in our ability to achieve our ambitions.
With me are Laurent Ferreira, President and CEO, as well as Marie Breault, Vice President, Corporate Secretary, who will act as Secretary to the meeting. The members of the Board of Directors and the Senior Leadership Team join me in welcoming you. I will have the pleasure of introducing the directors to you when it's time for their election. [Foreign language]
I would also like to welcome the representatives of Deloitte, the bank's independent auditor, who are present in the room.
The procedure for the meeting can be found on nbc.ca/investors in the annual meeting section, and copies are also available in the room. All shareholders present in the room and online will be invited to vote at the appropriate time during this meeting. The annual meeting of common shareholders will proceed as follows.
Laurent Ferreira will first address you, followed by the receipt of the financial statement, the election of directors, the proposal on executive compensation, the appointment of the independent auditor, and the shareholders' proposals submitted for a vote. [Foreign language]
This year, we have received six proposals from the Mouvement d'Éducation et de Défense des Actionnaires, MEDAC, five of which are submitted to a vote. Mr. Willie Gagnon, whom I recognized in the audience, will briefly present these six proposals on behalf of MEDAC.
Has been submitted by Investors for Paris Compliance on behalf of the Salal Foundation. Following discussion, they have agreed to withdraw the proposal. It is, however, included for informational purposes in the circular, and Monsieur Renaud Gignac of Investors for Paris Compliance will briefly present this proposal. To conclude, a Q&A session is scheduled following the formal part of the meeting. I now turn to Marie, as she will provide a brief reminder of the procedure to follow when submitting a question online. Marie.
Thank you. Shareholders and proxy holders who have registered online on the DigiCAST platform can submit questions related to each of the proposals. Questions can be submitted via chat or by live audio by identifying the concerned proposal and by providing your phone number so that you can be reached by phone at the appropriate time. It is also possible to submit questions during the question period by following the same procedure. We recommend submitting your questions as early as possible and indicating whether you are a shareholder or a proxy holder.
I kindly ask all speakers, whether in the room or online, to identify themselves, state whether they are speaking as a shareholder or as a proxy holder, and to be brief and respectful of the time allocated for each topic. We kindly ask you to keep your intervention to three minutes or less. Please avoid personal questions. We will have officers of the bank in the room that may answer personal questions.
To ensure efficiency, we may group similar questions submitted online. Now, a technical [Foreign language]. Some of the statements made today may contain forward-looking statements. I encourage you to carefully read the cautionary statement regarding forward-looking statements on the screen, as well as in our most recent financial report and in the circular, to understand the risks to which they are subject.
In addition, we use certain financial measures that are not calculated in accordance with generally accepted accounting principles. For additional information, if you so wish, you may read about those measures and explanations and their composition in our most recent financial statement. [Foreign language]
I appoint Ms. Martine Gauthier of Computershare Trust Company of Canada to act as scrutineer of this meeting. She informed me that we have quorum. I have also received confirmation that the notice of meeting was duly sent to the shareholders.
I therefore declare this meeting duly called and constituted. I would like now to turn the floor over to Laurent Ferreira, our President and Chief Executive Officer.
[Foreign language] Welcome, everyone, to National Bank's 2024 Annual General Meeting. First off, I'd like to thank our Board of Directors for their support and their guidance throughout the year. I would also like to acknowledge National Bank's senior leadership team for their hard work and dedication. We are very happy to be in Alberta today.
This past February, we closed our acquisition of Canadian Western Bank, and this week, we spent time in Edmonton and Calgary meeting with our expanded team and welcoming new clients. Chris, for the third time this week. Chris Fowler, who is here with us today, has spent most of his career with CWB, 34 years, and was a CEO for the past 12 years. Chris has led a bank recognized for its client-first approach and was instrumental in the transaction that has brought our two banks together.
Chris, it's been an honor to work with you over the past two years. I have great memories of all of our many discussions and secret meetings. On behalf of the board and myself, thank you and congratulations on your retirement. [Foreign language]
At National Bank, we know that our success depends, first and foremost, on our 32,000 employees across Canada and around the world. The senior leadership team joins me in recognizing your contribution and commitment. We thank our shareholders for their trust and support and remain committed to creating long-term value for all our stakeholders.
We delivered strong financial results and made significant progress in our growth strategy. Our execution, strong organic growth, and resilient credit performance enabled us to meet all of our medium-term financial objectives. We delivered EPS growth of 10%, a return on equity of 17%. We maintained strong capital levels and increased our common share dividend by 9%. We also started 2025 on solid footing.
For the first quarter, we generated EPS growth of 13%, a return on equity of 17.6%, and a CET1 ratio of 13.6%. In the context of heightened macro and geopolitical uncertainty, this performance reflects financial strength, earnings diversification, and strategic positioning. On to Canadian Western Bank. The acquisition of CWB will accelerate our domestic growth. National Bank already had a strong presence in Western Canada, with leading franchises in energy, agriculture, affordable housing, and in renewable infrastructure.
Together with CWB, our total authorized credit for Canadian consumers and businesses in Western Canada exceeds CAD 90 billion. We are also the custodian of approximately CAD 200 billion of assets belonging to people and institutions in Alberta and British Columbia. With CWB, we have expanded our presence out west, bringing together two highly complementary banks. We share similar values and commitment to the clients and communities we serve.
We understand entrepreneurs. Together, CWB and National Bank will become the best product. Will combine best products, services, and work culture. We are now one team, and in the coming months, we will be welcoming 65,000 valued clients. Our teams are excited, and we look forward to building and providing even better services to clients nationally. We have one goal in mind: to be the best Canadian bank for Canadians. [Foreign language]
We are also committed to supporting the economic vitality of our major cities and to strengthening our communities across Canada. In Montreal, we inaugurated our new corporate headquarters in 2024. National Bank places a commitment to our employees and customers. It is the most significant commercial real estate project in Montreal in the past 30 years.
The bank, its employees, and customers also contribute to a program of donations and sponsorships. Among other things, we're proud to have supported United Way since 1977. We are also a partner of Tennis Canada and the main sponsor of the annual National Bank Open, held every year in Montreal and Toronto.
This week, we were pleased to confirm the previously planned relocation of CWB headquarters to a landmark building in downtown Edmonton later this year, which will be named National Bank Center. We also inaugurated this week new National Bank offices here in Calgary. Western Canada is central to our growth strategy, and we will have a leading executive and operational presence here in Alberta. We have also partnered with local tech accelerator to establish a National Bank investor hub in Calgary to better facilitate connections between investors and tech startups.
This complements our network of partnerships of this nature across the country in support of Canadian entrepreneurs. Building on CWB's strong roots, we will continue to support local organizations such as Chapter One, Enactus, and Junior Achievement. We will also increase support to Indigenous communities, building on CWB's longstanding relationships, along with the work National Bank is already doing. We now have a total of 2,500 employees in BC and Alberta to serve clients, communities, and governments. [Foreign language] Partout au Canada.
Across Canada, the bank is also committed to supporting a sustainable economy. Canada's competitive advantages in energy, natural resources, and manufacturing will be key factors in ensuring energy security, wealth creation, and economic strength for future generations. The bank has taken a pragmatic approach to the transition to a low-carbon economy.
We focus on supporting corporations across all sectors to drive innovation, decarbonization strategies, and responsible transition. This supports our commitment to reach $20 billion in renewable energy lending by 2030 and confirms our support for the development of large-scale wind, solar, and hydroelectric projects.
I would like to address the current macroeconomic and geopolitical context. The environment in which we live has changed dramatically. It is unpredictable and will remain for the foreseeable future. The risk of a global recession is real. The Canadian economy could suffer from a worsening economic environment and higher costs for consumers and businesses. Over the last several years, Canadian productivity and GDP per capita growth have lagged other countries, and investments have been insufficient in key sectors of the economy.
Businesses in Canada must deal with excessive regulation and oversight. Now we are dealing with the risks of a trade war. While the 90-day pause announced earlier this month is welcome, significant uncertainty remains, likely delaying investments in Canada. The biggest risk we face now on our tariffs is complacency. We have an incredible opportunity in the current environment, but we must act quickly and decisively.
We are uniquely well situated geographically for global trade. As a reliable and ethical country with abundant natural resources and a vibrant energy sector, we can help address global challenges from security to sustainability. We need to support the development of strategic energy infrastructure in both renewable and oil and gas.
To do so, our economic and industrial policies need a complete overhaul. The Federal impact assessment legislation, Bill C-69, and the proposed cap on emissions do not work in their current forms. The next government will need to address this and ensure that projects assessed get approved much faster. I also urge all provinces and territories to keep working on getting rid of all trade restrictions within our own borders. They are counterproductive and detrimental to Canadian productivity and economic growth.
In the current environment, we have so much to offer, and we have even more to look forward to. If we play our cards right, we can reposition ourselves as an economic force and a country of influence. With an expanded national footprint and a Canadian focus, National Bank has a responsibility and a pivotal role to play in the current environment. We will be there to support large-scale projects. More specifically, National Bank will finance energy infrastructure for oil and gas pipelines and LNG projects.
We will also support hydro, wind, solar, and nuclear projects aligned with our renewable energy commitment. We will help finance mining and critical mineral transformation, as well as housing, our manufacturing sector, and defense spending for our country.
We will be there to support our clients, providing financing and advice as they face the complexities of today's environment and strive to innovate. We will also facilitate relationships across the country to favor interprovincial trade. We will also be there to support our employees as they are central to our culture, values, and future. [Foreign languange]
With our disciplined approach and strategic vision, we are entering this period of uncertainty on a solid footing. We will continue to manage geopolitical complexities with a steady hand, support our customers, and maintain our financial strength and stability. We will continue to rigorously implement our strategic vision.
We could not be more enthusiastic about our future with CWB now part of National Bank. You can always count on our commitment to delivering superior returns for our shareholders and sustainable value for all stakeholders. Thank you again for joining us. [Foreign language]
Thank you again for joining us.
[Foreign language] Laurent.
Thank you, Laurent.
The bank's consolidated financial statement for the 2024 fiscal year, along with the independent auditor's report approved by the board, have been provided to shareholders who have requested them and are also available online at nbc.ca/investor. I now declare the consolidated financial statement and the independent auditor's report for the fiscal year ended October 31, 2024, received. Are there any questions or comments online related to this item, Miriam?
No questions, Mr. Chair.
Thank you. We now move to the proposals submitted by the bank management. I will ask Marie Breault to provide a brief reminder of the general rules that apply to the voting process.
The preliminary voting results will be shared at the end of the meeting, and the detailed final report will be posted on the bank's website and on SEDAR+ promptly after the meeting. Shareholders who have already voted by proxy do not need to vote again unless they wish to revoke their proxy. For shareholders present in the room, we will proceed with a secret ballot for each proposal.
Shareholders and proxy holders will be invited to vote on each proposal, and their ballots will be collected by the scrutineer's representative at the end of the voting period. The ballot must be signed to be valid. Any questions concerning your voting rights should be addressed to one of the scrutineer's representatives. [Foreign language]
For shareholders participating online, the voting platform is now open for voting on all proposals and will close when the chairman declares the vote closed. To vote, simply select your voting choice from the options displayed on the screen. A confirmation message will appear. If the voting options do not appear on your screen, please click on the ballot icon at the top of your screen. Votes will be counted securely and confidentially and forwarded to the scrutineer. Thank you, Marie.
We will now proceed with the election of directors. To facilitate the proceeding of this meeting, we have asked a few of our employees and shareholders of the bank to present the management proposal. [Foreign language]
As Chairman of the Board, I would like to take this opportunity to express my sincere thanks to my fellow board members who put their experience and knowledge at the service of the bank. In accordance with the resolution adopted by the board, we will be electing 16 directors this year. I now invite Mr. Tim Abdel to present the proposal regarding the board of directors nominees' elections.
Good morning. I have been an employee of National Bank for over six years and also a shareholder of the bank. I move that each of the candidates nominees listed in the management proxy circular be elected as a director of National Bank of Canada to hold office until the close of the next annual meeting or earlier if the director vacates office.
The nominees are Pierre Blouin, Pierre Boivin, Scott Burrows, Yvon Charest, Patricia Curadeau-Groulx, Laurent Ferreira, Annick Guérard, Karen Kinsley, Lynn Loewen, Rebecca McKillican, Arielle Melloul-Wexler, Sarah Morgan-Sylvester, Robert Paré, Pierre Pomerleau, Irfan Raji, Macky Tall.
Thank you, Tim.
Are there any questions or comments online related to this item, Miriam?
No questions, Mr. Chair.
Thank you. [Foreign language]. I now invite the shareholders to elect the directors. Thank you. We will now look at the second proposal from the bank. The board and the Human Resources Committee conduct an annual review of the compensation governance practices, recognizing that best practices are constantly evolving.
This year, once again, by requesting an advisory vote on this approach to executive compensation, the board reaffirms its commitment to the bank's shareholders and acknowledges its responsibility in decisions regarding executive compensation. I now invite Sarah King to present this proposal, Sarah.
Good morning. I've been an employee of National Bank since March of this year, and prior to that time, I was an employee with CWB since January 2023. I'm also a shareholder of the bank. I move on an advisory basis and not to diminish the role and responsibilities of the board that the holders of common shares accept the approach to executive compensation disclosed in the bank's circular delivered in advance of the meeting. Thank you.
Thank you, Sarah. Are there any questions or comments online related to this item, Miriam?
No questions, Mr. Chair.
Thank you, Miriam. I now invite the shareholders to vote on the board's approach to executive compensation. We will now proceed with the appointment of the independent auditor. The bank proposes to appoint the chartered accounting firm Deloitte as its independent auditor for the current fiscal year. I now invite Theresa Lavallee to present this proposal. Good morning, Theresa.
Good morning. I have been an employee of National Bank since March, and I was an employee of CWB for 23 years before that. I am also a shareholder of the bank. I move that the chartered accounting firm Deloitte be appointed as the independent auditor of the bank for the fiscal year beginning November 1, 2024, and ending October 31, 2025.
Thank you, Theresa. Are there any questions or comments online related to this item, Miriam?
No questions, Mr. Chair.
Thank you. Again, I now invite the shareholders to vote on the appointment of the independent auditors. We are going to move now to the presentation of shareholders' proposals, and we will review all together those proposals as the bank has included them in the management proxy circular. [Foreign language]
I give the floor to Mr. Willy Gagnon, whom I recognize in the room with us. To begin with, Mr. Gagnon, representative of the Mouvement d'Éducation et de Défense des Actionnaires, MEDAC, to briefly present the five proposals put to the vote, as well as the proposal that is presented for information.
Good morning, Mr. Chairman. My name is Willy Gagnon, and I will also introduce my background. I've been working for 18 years at the Mouvement d'Éducation et de Défense des Actionnaires, which is a shareholder of the bank. Or am I wrong? There was already the advisory vote on compensation.
Yes. I would like to make a comment about that. I'm jumping in rather late, but I hope I have your permission.
Go right ahead, Mr. Gagnon.
If you don't want me to speak, I won't.
No, no, no. Please go ahead.
We are, of course, against compensation every year. We express the same reasons every year. We would like it to be about between 20 and 30 times the average employee compensation. Now, I'm not attacking an individual, the CEO, at all. It's just a technical issue I'd like to raise. The compensation of the CEO made the headlines this year because it increased by 30%. My salary certainly didn't go up by 30% this year.
The average compensation of Canadians has not either gone up by 30%. If anything, it has shrunk because of their dwindling purchasing power. I would just like to draw the attention of the meeting to this. Again, I apologize for jumping in late on this issue. As you know, we had submitted six proposals, five of which are submitted to shareholder vote.
The first proposal is aimed at asking the bank to make public its country-by-country reporting. This is not the first time we've submitted this proposal. This is a report that you submit to the state, which it would be good and beneficial to make public.
Once again, we call on shareholders to support this proposal because this is of interest when it comes to calculating compensation ratios, as well as for its contribution to the fight against tax havens and tax evasion. It should be public, and in some countries in Europe, it is indeed made public. An advisory vote on environmental policy, that's once again not the first time that we're submitting this proposal. I think it's in fact the fourth year in a row that we have submitted this.
We've seen a little drop in the support by shareholders for this proposal, but it's nevertheless quite substantial because sometimes, most of the time, we don't garner significant proposals, but on this one, we exceeded 10 or 15%. We're urging all shareholders. I'm not going to say anything much about the benefit of this vote.
It would allow shareholders to express themselves on environmental issues. We do understand that the bank consults many shareholders on this issue. Nevertheless, this would be an additional tool in their arsenal because you cannot, after all, consult all shareholders on this issue, and an advisory vote on this question would allow all shareholders to express their views. In short, we call on all shareholders to support this proposal. Number three, the fight against forced labor and child labor in loan portfolios.
Now, we came very, very close to an agreement, you and myself. By you, I mean the bank, not you personally, of course. In your report on your commitment against the fight against modern slavery, we had all kinds of points that we found very good, but we were specifically wanting to know what was the weight of these issues in loan portfolios because what the law demands is that you disclose information pertaining to the bank's direct activities and not through the loan portfolio.
Accounts number three, as we, for example, can call them in environmental issues. We have understood in our discussions from the bank that this will ultimately be the case. You will be disclosing more information in the next version of that report. In the meantime, we have not yet obtained what we want.
We're inviting all shareholders to vote in favor of this, but we're very close to succeeding. For example, we would like to know whether you've encountered any problems among your clients who maybe make use of forced labor or child labor. If you have found any such issues, what did you do as a result? Do you have procedures that allow you to suspend relationships with a client making use of that sort of labor or things of that sort? That's the kind of information we're looking for.
We understand that it's possible that this kind of information will be in your report next year. We're very happy with the discussions we've had with you, but we haven't yet quite achieved what we're hoping to achieve on this issue. Of course, we're urging all shareholders to support this proposal. Advanced generative AI systems and code of conduct.
Last year, the government put forward a voluntary code of conduct to deal with everything involving artificial intelligence. In our discussions with National Bank, as was the case with our discussions with all the other banks as well, that all kinds of efforts are put into this issue and that as part of the efforts you have made, you already meet the requirements of a government code.
Why not endorse it? Why not sign it? One bank has already done so. CIBC has decided to join the code, sign the code following our shareholder proposals. They say that that's not the reason, but we do believe that it is as a result of our shareholder proposals that they did so. We would urge you to adhere to the code. It would not cost you anything because you're already doing everything the code requires.
At least that's what you're telling us. It wouldn't cost you anything more to adhere. We invite you to adhere, and we invite all shareholders to support this proposal. Now, disclosure of languages in which employees are proficient. You know, you were the bank about which we were most hopeful with regard to the disclosure of these numbers, and yet you didn't go along with us. You've seen the results we've achieved in the other banks.
We're below 1%. We know that we're not going to win on that proposal, but I would like to point out that we have asked the population its opinion on this, and 70% in response to the Léger marketing survey believes that this information should be disclosed by public companies such as yours. There's a big gap between what the population wants and what shareholders are prepared to accept.
Why is that? It's because the shares held by most of the population, they don't vote on their shares that they hold, even though they could. We think that this accounts for the gap between the two. We hope the bank will be more open-minded. The bank is based in Quebec, and you have statistics about the languages spoken by employees, and we would like to have this information. It would be very easy for you to disclose it. Maybe it's not quite as easy as we think. I'll grant you that. We basically call on all shareholders to support this proposal.
We do understand that it's not going to garner many votes in favor, but we do believe that this is an important issue in view of the nature of National Bank, and you were founded to allow French Canadians to get financing when the other banks at the time would turn them down. We do hope that simply providing information about languages in which staff are proficient is a possibility.
After all, this is a matter of corporate social responsibility. It's a social responsibility. It's a responsibility of the bank towards society at large, and one of the main contributions that a company makes to society is providing jobs. You have lots of jobs. You've given out lots of jobs. When you say in a job description that people have to speak English, then you're supporting people who have that language.
Ditto if you do the reverse, if you want people to speak French. We just want to know what the numbers are. We just want to have the statistics. Sorry, I've spent a little bit more time on this proposal, which is going to garner the least amount of votes. I'd now like to move on to the proposal that is not submitted to shareholder vote.
Please go ahead, Mr. Gagnon.
We had a proposal concerning the acquisition. Sorry, my pages are a bit mixed up here. The acquisition of Canadian Western Bank, we can't get around that issue this year, obviously. We would like to know what is the impact of this acquisition on your carbon ratio, basically, on how much you intend to invest in that sector. This is an important issue.
Some environmental organizations said that the National Bank had among the best ratios when it came to funding of renewable energy, comparing the proportion of financing of renewable versus non-renewable energies. Now, this ratio is going to change because we know that CWB is heavily involved in fossil fuels.
This is an open secret, and we wanted to have figures on this. We've been told, and this is why we've agreed not to submit this to a shareholder vote, that it was too early to make it possible to calculate this since the acquisition had not yet gone through at the time. Of course, we wonder whether this is one of the reasons you removed yourself from the NZBA like the other banks. This is a question that I raised this morning in the lobby.
I remember very well that Mr. Vachon, former CEO, talked about the soul of the National Bank and its raison d'être, which was to be a super-regional bank, even though it had activities in the United States and in Cambodia. It was nevertheless a powerful bank in Quebec. Is this status possibly going to change because of this acquisition? In short, I think you understand all the kinds of questions that this recent acquisition raises.
We would like to know what the impact of the acquisition of CWB is going to be with respect to the potential environmental impact this may have. You told us that you did not have the information ready yet, which is why we have agreed to withdraw it from shareholder vote, and you have agreed that we can submit it again next year. We are going to talk about it again next year.
I hope that it will be submitted to a vote then, and I hope that you are concerned with your carbon performance as part of this acquisition. Thank you very much, ladies and gentlemen. I probably have more things to say during the question period, but I think that that's enough for me for the time being.
Thank you very much, Mr. Gagnon. Thank you for articulating your proposals and arguments so clearly. In the interest of time, I would remind you that the bank's position on the proposals submitted to the vote are spelled out on pages 146 and following of the management proxy circular. For reasons of time, I'm not going to repeat them. Are there any questions about these proposals?
No questions, Sir.
Thank you very much.
I would now like to ask Renaud Gignac, representing Investors for Paris Compliance, to present the proposal not submitted to shareholder vote on behalf of the Salal Foundation. Mr. Gignac is joining us online, is that right? As soon as you are ready, Mr. Gignac, you have the floor.
Yes, good morning. Can you hear me?
Yes, we can.
Ladies and gentlemen, members of the board of directors, members of the senior leadership team, and shareholders. My name is Renaud Gignac. I am representing Investors for Paris Compliance. We are an organization that works with financial institutions and investors to ensure that Canadian publicly listed companies comply with their commitments concerning net zero emission. I am going to be speaking to you in both French and English. Since 2023, we have been discussing issues with the sustainable development team of the bank to discuss improvements to be made.
We wanted to withdraw our shareholder proposal this year because we believe that the bank's commitment to achieving $20 billion of loans to the renewable energy sector between now and 2030 is an ambitious commitment, and it is $5 billion greater than the previous only clear commitment of a Canadian banker, that of the Royal Bank of Canada, when it came to financing renewable energies. On behalf of Investors for Paris Compliance, I'd like to congratulate the bank for that stance.
We have some concerns about the direction the bank is taking. The expansion into Western Canada is both a growth opportunity for the bank and a risk to shareholders of becoming more involved in high-emitting sectors that face significant uncertainty because underlying the tariff threats is another deeper structural risk that extends over a much longer period of time than the political mandate of our southern neighbor.
This long-term structural risk is the concentration of our economy in the oil and gas sector. According to forecasts by the International Energy Agency, global demand for oil and gas is set to peak by 2030, and peak demand for coal is imminent. This will happen with or without Trump. To protect long-term shareholder value and meet the bank's commitment to net zero, setting targets for renewables will not be enough. The bank will also have to look at the other side of the ledger, which is high-emitting sectors. [Foreign language]
Current objectives of reduction of the carbon footprint of the bank are not sufficient because there are absolute increases in the emissions financed by the bank. Since last year, the oil and gas sector emissions funded by the bank have increased in absolute terms and in intensity. In its climate report, the bank has also ceased disclosing the way in which its loan ratio has evolved for the renewable energy sector versus the fossil sector, which is contrary to the trend we see among other Canadian banks.
Consortia of financiers that fund fossil fuel expansion projects such as liquefied natural gas terminals. LNG, contrary to the bank's allegations, does not meaningfully reduce global greenhouse gas emissions. In fact, when taking into account the methane leaks that occur along LNG's supply chain, LNG's carbon footprint is found to be never significantly better than coal and is sometimes even worse than coal. [Foreign language]
One way of improving the climate impact would be to adopt a commitment strategy, a net zero, working together with clients and in investments in financial markets. If, following an in-depth analysis, the trajectory of companies in which the bank has assets is not focused on net zero, the bank should ask for verification and demand a credible transition plan. If these efforts by the bank do not lead to the right results, an escalation process, clearly spelled out, should be implemented.
This escalation process could include, for example, the filing of shareholder resolutions, or if no progress is achieved during a certain period of time, the withdrawal of assets. This escalation process should be formalized in a clear commitment strategy.
[inaudible] can be recognized as a leader among its peers on long-term sustainability. Other institutions at home and abroad are adopting these best practices with excellent returns to shareholders. We look forward to continuing the productive discussion with the bank on these matters in the coming year. [Foreign language]
Thank you for your attention. Thank you, Mr. Gignac. I'd like to thank both Mr. Gagnon and Mr. Gignac for being present here today or for attending, either in person or over the telephone. Thank you also for the constructive dialogue we've had with you throughout the year. I want to emphasize this. These are complex and evolving issues, and it's important for us to be able to discuss them with you. We are happy to continue this discussion with you next year, discussion on these issues that we deem to be very important. No questions, Mr. Chair.
Thank you. I now invite the shareholders to vote on the proposal submitted for voting. This concludes the voting period. For shareholders and proxy holders online, the voting platform will now be closed. For shareholders in the room, please raise your hand so that the scrutineer representative can collect the ballot. I see no hands. Marie, will you be ready to give us the results of the vote? Thank you. Preliminary voting results by Madame Marie Breault.
Thank you, Robert. The scrutineers have informed me of the following. Shareholders holding common shares of the bank, representing at least 55% of the issued and outstanding shares, have voted by proxy and voting instruction forms. All candidates have been elected and received at least 96% of the votes in favor of their election.
The advisory resolution to approve the board's approach to executive compensation was adopted with more than 95% of votes in favor. Deloitte has been appointed as the independent auditor for the financial year ending October 31, 2025, with more than 92% of votes in favor. Proposals number one through five have been defeated. Proposal number one from MEDAC received approximately 89% of votes against.
Proposal number two from MEDAC received approximately 79% of votes against. Proposal number three from MEDAC received approximately 74% of votes against. Proposal number four from MEDAC received approximately 86% of votes against. Proposal number five from MEDAC received approximately 98% of votes against.
Thank you, Marie. On behalf of the board, I take note of the result of the shareholders' proposal, and we look forward to continue our dialogue with you following this meeting. [Foreign language]
I would like to thank all our shareholders, both in person and online, and I can hereby declare that the 2025 annual meeting of National Bank of Canada shareholders is now closed.
Both in person and online, and I can hereby declare that the 2025 annual meeting of National Bank of Canada is now closed. We will now move to one of the most interesting segments of our meeting. It's the question period. Just a reminder that questions should be relevant to all shareholders, and we ask that intervention focus on matters related to the bank's operation.
If you have personal inquiries, a representative from the bank will gladly connect with you after the meeting. If we do not have time to answer every question and you have identified yourself, we commit to reaching out to you to answer your question. [Foreign language]
Shareholders and proxy holders registered on Digicast' virtual platform can submit questions online via the chat functionality using the Ask a Question dialogue box or by submitting their phone number via the same dialogue box so that Digicast can contact them by phone. Please state your name, whether you are a shareholder or proxy, and the subject of your question.
Please approach one of the microphones in the aisles and identify yourself. I'll invite Laurent to lead the question period.
[Foreign language]
Thank you, Robert. Mr. Gagnon, you have a question.?
Mr. President, once again, Willy Gagnon from the Mouvement d'Éducation et Défense des Actionnaires MEDAC, and we have been shareholders of National Bank for some 30 years now. I have two small questions. First of all, I listened very closely to your speech earlier. You said, and I'm just asking for clarification here, you said a weak carbon issue economy. Do you mean a low carbon emission economy? My psychologist would say that you had a slip of the tongue, and it simply expresses what you had in your subconscious that you talked about a weak economy.
Okay, so that's a question that's now settled. Thank you. You've clarified that for me. Now, I don't want you to compare all CEOs of the banks. I have basically listened to all the CEOs give their presentations this year because yours is the last AGM this year. I have listened to them closely. The Chief Executive Officer of Scotiabank delivered an absolutely extraordinary presentation. I've never heard a speech of that type ever since I've attended this kind of thing.
He completely went off track. He went completely outside the usual framework of a typical bank CEO speech. He spent half an hour, an entire half an hour, giving us an elaborate presentation on what he intends to do with the Canadian economy and for the economy under the current crisis with the U.S.
He talked about abolishing barriers to trade and free movement of goods between the provinces. He talked about the integration of the energy network. He talked about an energy corridor with pipelines and power lines that would cross from one end of the country to the other. He talked about the integration of the electric grid.
He mentioned the agreement between Quebec and Newfoundland of the kind of thing that should be done. I have not heard anything similar today. Obviously, I'm not asking you to emulate all the other CEOs, nor am I asking you to be like the CIBC's Chief Executive. Was it CIBC or Scotia? No, sorry, it was Scotia. I think you're a little bit confused there. No, it was in Halifax. It was Scotia. Scotiabank.
I'm not asking you to be like that CEO, but I am very impressed by that kind of discourse. It's a leader, a Chief Executive of a major company listed on the stock exchange. I mean, we've seen this kind of thing at Power Corp, although very rarely. It's a CEO of a bank who basically tells us what he thinks about the economy and who integrates the bank strategy in a national domestic strategy.
Are you pondering similar considerations? That's my question. You have just acquired a bank outside Quebec in Alberta, where we are. Are you giving any thought to this sort of thing? Did you, in fact, listen to the Scotia CEO's speech? What do you think about all this? I think you understand what I'm driving at. We listen to all bank CEOs and presidents.
In the current context, the economic sovereignty of our country is a major concern, and I'm very happy that Scott Thompson actually spoke out. I'm very happy to have heard his address. However, as a bank, we cannot veer too deeply into economic analysis. Just like our economic analysis about Marion, when we have the opportunity of speaking to economic issues, we do so in the media.
We're very present in the media, chambers of commerce, radio, television, and we do speak to these issues. Now, what do you think of the ideas he put forward? Mr. Scott Thompson's ideas? I wasn't that attentive. I didn't pay that close attention to his ideas. Any other questions or comments online? No questions online. Thank you. Thank you, Laurent. Thank you to all of our shareholders and proxies for their questions and comments.
Clients and shareholders for the trust they place in National Bank. [Foreign language]
I would also like to reiterate my thanks to all our employees whose dedication makes a difference every day. We are delighted to announce that our next annual meeting will be held for the first time at Place Banque Nationale in Montreal that we inaugurated this year.
New head office in Montreal, the National Bank. Place for the next year annual meeting. Thank you to you all. This concludes.