Desjardins Investments
Desjardins Investments is one of the leading fund manufacturers in Canada by offering a wide range of investment funds and standing out for its innovative investment solutions that meet the varied and changing needs of Canadian investors. Recognized for its rigorous, credible and transparent approach, Desjardins Investments plays a leadership role in supporting and promoting responsible investing in Canada through the Desjardins Sustainable family of funds and portfolios. They joined the Net Zero Asset Managers Initiative in June 2023 and made their Initial Target Disclosure in May 2024.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
16% of total AUM (USD $4.5 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Baseline(s):
Portfolio coverage baseline
At least 6% of financed emissions in material sectors are considered net zero or aligned.
Engagement threshold baseline
At least 58% of financed emissions in material sectors are subject to direct or collective engagement and stewardship actions.
Target(s):
Engagement threshold target
70% of financed emissions in material sectors will be net zero, aligned or subject to engagement in 2025 (currently 58%).
Portfolio coverage target
50% of financed emissions in material sectors are considered net zero or aligned by 2030.
Engagement threshold target
90% of financed emissions in material sectors will be net zero, aligned or subject to engagement in 2030.
We are setting an alignment target as well as an engagement target, to meet NZIF and NZAM requirements. We recognize that the global economy is not yet on a path that’s in line with the goal of reaching net zero emissions by 2050. Therefore, achieving our ambition depends on the actions of governments and other decision-makers. It also relies on investors appetite for solutions that are guided by our net zero ambition, the development of methodologies for calculating financed emissions and alignment across different asset classes. That being said, Desjardins Investments is ready to be a committed investment fund manufacturer with other actors of the financial system and its investors to achieve this collective 1,5°C goal.
GHG scopes included:
We calculate our financed emissions with the PCAF methodology for public markets. For the purpose of target-setting and monitoring, we consider scope 1 and scope 2 emissions given data and methodology limitations for scope 3 emissions. However, for prioritisation of engagements, we do consider scope 3 emissions.
Methodology:
Net Zero Investment Framework
Scenario(s):
IPCC’s Special Report, “Global Warming of 1.5C” as identified by the Net Zero Investment Framework.
Additional information
Proportion of AUM committed:
The scope of assets managed in line with net zero at this time covers equities and corporate bonds within Desjardins Sustainable Funds. The Desjardins Sustainable lineup already has robust and leading responsible investment strategies in place to enable net zero management practices, and equities and corporate bonds are well covered by net zero methodologies.
Scope will increase as we strengthen our net zero management practices across our portfolio, and methodologies become available for other asset classes over the next few years.
Policy on coal and other fossil fuel investments:
The current scope of net zero targets covers equities and corporate bonds within the Desjardins Sustainable funds lineup, which does not invest in companies that generate a major portion of their revenue from petroleum, gas or thermal coal extraction or production, from the operation of infrastructures dedicated to the transportation or storage of oil and gas, from oil and gas refining, or from energy production from coal. The direct distribution of petroleum or natural gas products to the end consumer and the distribution of energy produced from coal are not excluded. Similarly, renewable natural gas production activities (e.g., biogas and waste reclamation) are not part of this exclusion. More information available here: https://www.fondsdesjardins.com/information/responsible-investment-policy.pdf