We must act now, because there is no Planet B. The fight against climate change is accelerating and more and more financial institutions are stepping up. In Quebec, in Canada and around the world, other major financial institutions are committing to climate action. The environmental argument is also becoming an economic one: delaying decarbonization represents a financial risk. The financial sector, which had been criticized for hesitating in the face of the ecological transition, is now taking strong, coordinated and determined action.
Financial institutions have the power to make a difference. As holders of capital and investors, we can favour projects that are part of the solution. Through our support of portfolio companies, we can apply pressure from within to improve companies’ environmental records. We can also help change the relationship between shareholders and senior management to promote the pursuit of long-term profit rather than quarterly showmanship.
Let’s mobilize for a green recovery
During the last federal election campaign, for the first time, climate change was at the top of Canadians’ priorities. That shows that citizens are ready for strong, determined action. Desjardins is too. Let’s wait no longer. Let’s fully commit to this green recovery.
Speaking of commitment, Desjardins is the first Canadian financial institution to join Business Ambition for 1.5°C(BA15), an alliance overseen by the United Nations bringing together nearly 1,000 leading companies determined to limit global warming.
Firm targets validated by science
By joining BA15, we are taking on new commitments that must be based on independently validated scientific data. Thus, by 2040, Desjardins’ net emissions related to its operations as well as to the financing and investments of its own funds will be zero in three key carbon‑intensive sectors: energy, transportation and real estate. We will publish the detailed targets that will mark our journey. Here is the first: Desjardins will reduce emissions related to its core activities (business travel, paper, energy consumed by its occupied, leased or owned buildings) by 41% by 2025 compared with the 2019 baseline year. To ensure that our targets are science‑based, the organization Science Based Targets Initiative must approve them. Thus, we have 24 months to present them and have them validated.
Desjardins will also continue to integrate environmental, social and governance (ESG) factors into its business decisions. Today, nearly CA$111 billion in assets are subject to filters weighing the ESG criteria of our investments. The application of these filters since 2018 has led Desjardins to refuse about a quarter of project financing requests submitted by large companies, notably in the mining and oil sectors.
Let’s take advantage of the Canadian mobilization to fight the pandemic and turn it into a broad mobilization for the climate and for a sustainable future. Business leaders, are you ready to join the movement?
