With the launch of its Integrated Annual Report, Purpose built for a better future, this month, Canadian ICMIF member Co-operators reported a 2022 net income after tax of CAD 309 million, and a return on members’ equity of 8.5%, a strong financial performance by the insurer and financial services cooperative in a year marked by economic uncertainty and continued climate volatility. In addition to CAD 2.39 billion paid in claims and benefits to its clients in 2022, Co-operators is directing a significant proportion of its financial strength towards building the long-term sustainability and resilience of its clients, members and communities.

By the end of 2022, Co-operators had invested CAD 2.69 billion – nearly 24% of its total invested assets – into impact investments that provide strong financial returns and positive social and/or environmental impacts that can be adequately measured, tracked and reported. Nearly 75% of these investments support climate solutions like renewable energy projects that generated more than 86.5 million MWh of renewable energy, equivalent to powering roughly 7.5 million homes for one year. Committed to going further, Co-operators says it will increase its impact investing efforts in the future.

“By 2026, 50% of our portfolio will be impact investments or investments that support the transition to a sustainable, resilient, low-emissions society. By 2030, we will increase this to 60%,” said Rob Wesseling, President and CEO, Co-operators and also Chair of ICMIF’s Board of Directors. “In addition to providing compelling returns on our investment, these investments help drive us toward our purpose of financial security of Canadians and our communities, not just today, but for generations to come. We know that if we fail to address the climate crisis head on, the collective financial security of all Canadians will be increasingly in peril. We’ve made the conscious and strategic business decision to put our financial weight behind building a net-zero, climate-resilient, sustainable future.”

Co-operators is also working to catalyse private financing of climate adaptation infrastructure in Canada. The ‘whole-of-society’ approach is led by former Mayor of Edmonton Don Iveson, who is working with Co-operators as an Executive Advisor of Climate Investing and Community Resilience. The initiative has engaged multi-stakeholder collaborators like ICLEI Canada, the Canadian Climate Institute, the Institute for Catastrophic Loss Reduction, the Federation of Canadian Municipalities, the Institute for Sustainable Finance and others to move critical conversations forward and build the capacity needed to bring climate adaptation solutions to life.

Beyond leveraging its own investment portfolio, Co-operators is catalysing impact and climate transition investing markets in Canada, offering investment solutions and opportunities for institutional investors to join their efforts, through their asset management company Addenda Capital. Addenda has mobilised over CAD 237 million in assets under management through Canada’s first Impact Fixed Income Pooled Fund. Addenda also launched Canadian and International Climate Transition Equity Funds with CAD 100 million in seed capital from Co-operators. Both funds are net-zero aligned.

Highlights from Co-operators 2022 Integrated Annual Report include:

Access to financial services

CAD 2.24 billion in retail wealth assets under management and administration of Canadian households, offering a wide range of investment solutions that don’t exclude lower-income Canadians.

Insurance designed for a changing climate

672,674 Canadian households are covered by Comprehensive Water, Canada’s first and only product to provide access to flood insurance for all flood risk levels, including storm surge in coastal areas.

Sustainable claims solutions

CAD 350,000 to launch the Zero Waste Economic Transformation Lab in partnership with the Circular Opportunity Innovation Launchpad (COIL) and the City of Guelph, Ontario, to influence a more sustainable construction and demolition waste cycle. Co-operators also launched two new claims practices (drying in place and soft contents cleaning) to reduce the waste and emissions associated with its claims process.

Social impact

CAD 10.6 million contributed to organisations building environmental resilience, enriching social wellness, creating a more inclusive economy and championing a cooperative society.

Climate action

100% carbon neutral in operations, with targets to become net-zero in both operations and investments by 2040 and 2050, respectively.

The Integrated Annual Report serves as Co-operators Public Accountability Statement and is available to all members, clients and the public.

For all Co-operators annual reports, including the Task Force on Climate-related Financial Disclosures report, visit cooperators.ca/reports.