Last month, Canadian ICMIF member, Desjardins Group, announced a partnership with Export Development Canada (EDC) that will enable the organisation to launch a new sustainable financing offer for medium and large export companies. With this new product, Desjardins will grant up to CAD 1 billion over the next three years for projects that aim to reduce greenhouse gas emissions.
This financial support is made possible through EDC’s Sustainable Finance Guarantee pilot programme. The risk-sharing solution was developed to increase the financing available to businesses that want to reduce their greenhouse gas emissions and do their part to help Canada transition to a low-carbon economy.
“We need to help companies reduce their carbon emissions to more effectively fight climate change. Desjardins Group’s partnership with EDC reflects its efforts to support a just energy transition and take a leadership role in the shift to a lower carbon economy. Future generations deserve for us to make every effort to ensure the current and future well-being of our communities,” said Jean-Yves Bourgeois, Executive Vice-President, Business Services at Desjardins Group.
“Over the last year, EDC has expanded its partnership with Desjardins by leveraging our synergies to increase trade while finding new ways of reinforcing our commitment to carbon neutrality,” said Justine Hendricks, Senior Vice-President and Chief Corporate Sustainability Officer at EDC. “By offering our Sustainable Finance Guarantee, we’re helping Canadian businesses transform their sustainable practices into sustainable actions, so they can remain competitive on foreign markets while contributing to a better world.”
Projects involving the circular economy, renewable energy, green buildings, sustainable food production, cleantech, and pollution control and prevention are just a few examples of projects that are eligible for this program. Sharing the risks of this financing makes it possible to support emerging and next-generation climate solutions.
Desjardins Group and EDC are both endeavouring to identify innovative solutions and initiatives to help businesses across Canada invest in sustainable development projects. Whether it’s raising awareness, making referrals to good resources, or developing financial tools, Desjardins and EDC say they are exploring every angle to promote the implementation of sustainable development practices that will enable Canadian businesses to stand out on the international market.
Net zero emissions by 2040
Desjardins Group has implemented an ambitious plan to achieve net zero emissions by 2040 in its extended operations and in its lending activities and own investments in three carbon-intensive sectors: energy, transportation and real estate.
To achieve this, it will boost the share allocated to renewables in its lending to large energy corporations from 24% in 2020 to 35% in 2025. The cooperative will also build up a CAD 2-billion portfolio in renewable energy infrastructure investments (up 66% over 2020) and provide financial support for five development projects to convert organic waste, largely from agriculture, into renewable energy (biomethanisation).
