discloses the carbon footprint of its loans and investments

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Carbon accounting partnership Financial methodology used to measure financed emissions

Disclosure is first step towards Vancity’s net zero goal in 2040

Thursday June 24, 2021, Musqueam, Squamish and Tsleil-Waututh Nations Territories / Vancouver BC – Vancity today announced the public disclosure of its funded greenhouse gas (GHG) emissions – those from loans, as well as investments it manages on behalf of its members. By applying the methodology of the Partnership for Carbon Accounting Financials (PCAF), Vancity’s disclosure allows for a better understanding of its environmental impact under the Paris Agreement and lays the groundwork for setting its interim climate targets for 2025. This accounting allows Vancity to generate the fundamental data necessary to set its roadmap to net zero.

A global partnership launched in 2019, the PCAF standardizes GHG accounting for the financial sector, enabling a harmonized approach to measuring and reporting greenhouse gas emissions financed by loans and investments. The CFP is used by asset owners, asset managers and financial institutions to support a wide range of climate initiatives and CFP members represent C $ 50 trillion from financial institutions around the world . Vancity was the first Canadian financial institution to join the CFP as a member of the working group to help develop what is now the global standard for GHG accounting and reporting for the financial sector.

Vancity’s estimated funded and operational emissions for 2020 are as follows:

Main conclusions:

  • While these preliminary results are estimates and are primarily based on industry, building or vehicle averages, they provide useful information and a starting point for future disclosures. The results also highlight the need for better data availability at the industry level.

  • Vancity’s loan-financed emissions, as currently calculated, are 36 times greater than its operational emissions. A report from the Climate Disclosure Project estimates that the average difference between loans and transactions in the banking sector is closer to 700 times.

  • Vancity’s commercial real estate portfolio (loans used to buy and refinance commercial real estate) is responsible for most of the emissions, while motor vehicle loans generate the highest emissions per dollar loaned.

  • Most of the emissions attributed to residential mortgages are generated by single-family homes and are linked to the use of natural gas.

  • A major source of emissions from Vancity’s general business loans is related to building construction and renovation, an industry with about 10 times the emissions of any other industry supported by the credit union.

While many financial institutions have to deal with fossil fuel emissions, Vancity does not lend or invest directly in this sector and most of its funded emissions come from its mortgage portfolio. The lessons from this disclosure point to opportunities for the biggest reductions, such as developing products and partnerships, and making information available that will help members affordably renovate their homes and replace home systems. gas heating and cooling by less emitting solutions.

“Tackling the climate crisis requires an urgent system-wide response, and financial institutions must take bold action – even if it means changing the way we all do our business. Credible climate accounting and disclosure is at the heart of the necessary change, ”said Christine Bergeron, President and CEO of Vancity.

“What gets measured matters,” Christine said. “When the financial sector decides that emissions are important, it becomes a priority in the economy at large. Climate objectives must be accompanied by actions to reduce emissions. And for that you need to know where you are starting from. Vancity’s disclosure is voluntary, and we will continue to report annually, but Canada’s financial system needs a standardized approach to climate risk measures if we are to be able to understand the broader risks posed by the crisis. climate, ”she continued. .

“We are delighted to see Vancity continue to lead by example in the region as not only one of the early adopters of the CFP, but also one of the first North American financial institutions to measure and disclose their emissions.” funded using the PCAF standard, ”said Nicole Labutong. , CFP Regional Manager for North America.

Vancity will disclose its emissions annually while seeking to improve the quality and availability of data while setting interim scenario-based targets, starting with targets for 2025. The credit union is committed to achieving net emissions zero across its loan portfolio by 2040.

ENDS/

Supporting information

  • Vancity set its goal of net zero by 2040 in January 2021

  • In April 2021, Vancity became the first and so far the only Canadian financial institution to join the Net-Zero Banking Alliance

  • In 2020, Vancity declared its support for the Task Force on Climate-related Financial Disclosures (TCFD)

  • In 2019, the credit union signed the Global Alliance for Banking on Values ​​pledge on climate change and joined the Partnership for Carbon Accounting Financials (PCAF), committing to measure and disclose the impact climate of its loans and investments.

  • Vancity is also a signatory to the United Nations Environment Program (UNEP FI) Finance Initiative’s Collective Commitment for Climate Action, which requires signatories to set and publish targets to align their portfolios to to move towards a trajectory of 1.5 degrees Celsius, on the basis of scientifically established climate scenarios.

  • Vancity President and CEO Christine Bergeron represents North America on the UNEP FI banking board

For more information on Vancity’s climate disclosure and commitments, please visit rethink.vancity.com/climatedisclosures

About Vancity
Vancity is a values-based financial cooperative serving the needs of its more than 550,000 member-owners and their communities, with offices and 55 branches located in Metro Vancouver, the Fraser Valley, Victoria, Squamish and Alert Bay, in the Coast Salish and Kwakwaka’wakw territories. With $ 30.5 billion in assets plus assets under administration, Vancity is the largest community credit union in Canada. Vancity uses its assets to help improve the financial well-being of its members while helping to develop healthy communities that are socially, economically and environmentally sustainable.

About the CFP
The Carbon Financial Accounting Partnership (PCAF) was launched globally in September 2019. Currently, more than 130 banks and investors have signed up to the PCAF initiative. CFP participants work together to jointly develop the global financial sector GHG accounting and reporting standard to measure and report greenhouse gas emissions from their loans and investments. In doing so, CFP participants take an important step in assessing climate-related risks, setting targets in line with the Paris Climate Agreement, and developing effective strategies to decarbonize our society.

For more information see https://carbonaccountingfinancials.com/

Media relations | Vanity
[email protected]
Phone. : 778-837-0394



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