Case study: How Desjardins takes action on its PRB targets: climate stability and housing

Stakeholder identification and consultation

Please describe which stakeholders (or groups/ types of stakeholders) you have identified, consulted, engaged, collaborated or partnered with for the purpose of implementing the Principles and improving your bank’s impacts. This should include a high-level overview of how your bank has identified relevant stakeholders, what issues were addressed/results achieved and how they fed into the action planning process.

Following the materiality assessment Desjardins conducted in 2017 on its sustainable development priorities, it surveyed its members in 2024, with the majority (73%) indicating that sustainability is important to them. Over recent years, Desjardins has carried out additional surveys with its personal and business members and clients to better understand their priorities and concerns related to sustainability and responsible finance. These surveys have provided valuable insights into Canadians’ understanding of sustainable development and responsible financial practices.

Engaging with its stakeholders has helped Desjardins identify what matters most to its members and clients. Desjardins has addressed these priorities in the “Listening to Our Stakeholders” section of its Social and Cooperative Responsibility Report. Additionally, Desjardins collaborates with government entities, regulators, and other standard-setting organizations on various issues, which are also detailed in this section.

Through numerous partnerships, Desjardins is dedicated to supporting communities in the energy transition and taking action against climate change and biodiversity loss. Desjardins’ collaborations promote university research and training, develop practical solutions for economic actors, and advance climate education and engagement.

Desjardins has participated in several working groups organized by UNEP FI to support the implementation of the Principles for Responsible Banking (PRB), the Principles for Sustainable Investment (PSI), and the Commitment to Financial Health and Inclusion. These groups facilitate discussions and collaborative efforts on ESG topics with financial institutions worldwide. Desjardins is also a member of the Climate Montreal Partnership (French only), a coalition of nearly 100 stakeholders from Montreal’s economic, philanthropic, institutional, and environmental sectors working together to accelerate decarbonization and enhance climate resilience in line with scientific timelines.

Furthermore, Desjardins is part of the Quebec Climate Partnership’s engagement committee (French only), which aims to mobilize Quebec City’s economic and social forces. As an ambassador for climate action in Quebec City, Desjardins contributes to setting priorities for action and plans to participate in future climate action summits held in the province’s capital.

What actions were taken by Desjardins on its PRB targets, climate stability and housing?

In its 2024 PRB Reporting and Self-Assessment Template Desjardins reports that it took the following actions on its PRB targets, climate change mitigation and financial inclusion and health:

• SMART Target 1: Climate stability
• Desjardins has established several targets to monitor its progress toward its 2040 climate goals and other climate-related commitments. Additionally, Desjardins has set targets for managing climate-related risks. These goals encompass its insurers’ investments, the financing Desjardins provides, and its operational activities. Desjardins formulated these targets based on recognized methodologies and frameworks, such as the Science Based Targets initiative (SBTi), the Net Zero Asset Managers initiative, and baseline climate transition scenarios aligned with the aim of limiting global temperature rise to 1.5°C or less than 2°C by the end of the century.
• As of December 31, 2024, eight targets were on track, while seven required further attention or were at risk.

• SMART Target 2: Housing
• Thanks to the faster-than-anticipated progress on this indicator, Desjardins anticipates surpassing this target in 2025. As of December 31, 2024, seven housing projects, totalling 1,182 units, were completed, while twelve projects, comprising 780 units, were under construction.
• Desjardins’ results indicate that it has reduced the wait times for project financing once all necessary information is provided. This leads to lower construction costs, allowing for more units to be built and maximizing benefits for Desjardins’ members and clients. Desjardins’ streamlined service and single-channel support enable it to address issues efficiently and effectively.

UN Principles for Responsible Banking: Accelerating a positive global transition for people and the planet

With over 300 signatory banks representing almost half of the global banking industry, the Principles for Responsible Banking are the world’s foremost sustainable banking framework. Through these Principles, the banking community takes action to align core strategies, decision-making, lending and investment with the UN Sustainable Development Goals and international agreements such as the Paris Climate Agreement.

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The combination of all the above empowers FBRH to provide first class Principles for Responsible Banking (PRB) assurance services.

References:

This case study is based on published information by Desjardins, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://www.desjardins.com/content/dam/pdf/en/about-us/community/sustainable-development/reports/2024-principles-responsible-banking.pdf

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