Established in 1995, Vancity Investment Management (VCIM) was one of the first wealth management firms in Canada to focus on investments that deliver competitive returns while making a positive impact on the world. Vancity joined the Net Zero Asset Managers Initiative in October 2021 and made its Initial Target Disclosure in November 2022.
52% of total AUM
initially committed to be managed in line with net zero
USD $1.3 billion
currently committed to be managed in line with net zero
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Portfolio coverage baseline
10% of AUM in material sectors is considered net zero, aligned, or aligning.
Portfolio decarbonisation reference baseline
Engagement threshold baseline
1% of financed emissions in material sectors are net zero or aligned.
57% of financed emissions in material sectors are subject to direct or collective engagement.
Portfolio coverage target
90% of AUM in material sectors is considered net zero, aligned or aligning by 2030 or subject to engagement; 100% net zero, aligned or aligning by 2040.
Portfolio decarbonisation reference target
Engagement threshold target
75% of financed emissions by 2025, 90% of financed emissions in material sectors is considered net zero, aligned or aligning by 2030 or subject to engagement.
GHG scopes included:
Scope 1 and 2 covered. Scope 3 to be incorporated in 2024.
Net Zero Investment Framework
PAII The Paris Aligned Investment Initiative’s Net Zero Investment Framework/SBTi. Following guidance here for engagement (utilizing SBTi certified to confirm net zero) and maintaining below benchmark carbon footprint.
Proportion of AUM committed:
We plan to increase the scope to 100% over time. Right now, we were only able to get good quality data for our equity holdings (all publicly listed) in our main strategies. We have excluded corporate bonds and sovereigns in this initial round as we require better data and a more thorough process to be able to include them in the future. There is one strategy of public equities within VCIM’s AUM that is currently excluded as VCIM is not the record holder of the portfolio and we cannot assure the accuracy of the holding weights at this time
Policy on coal and other fossil fuel investments:
VCIM does not invest in companies whose primary line of business is the extraction, production and distribution of fossil fuels.
This means we do not invest in:
▪ Oil, gas and coal producers
▪ Pipeline companies
▪ Natural gas distribution utilities
▪ Liquefied natural gas operations
VCIM also avoids investing in service companies whose primary business is supporting the fossil fuel industry.
*VCIM will remain invested in railroad companies despite some involvement in transporting fossil fuels, as it is not core to their business and can be readily replaced by other freight and cargo.
*VCIM will also remain invested in specific renewable energy companies who may have some legacy natural gas-powered co‐generation facilities but are committed to growing their renewable energy generation assets.