Climate Change Data

Vancity

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:156,038 tCO2e/year (total, including operational and financed)
Scope 1 Emissions:420 tCO2e/year
Scope 2 Emissions:57 tCO2e/year
Scope 3 Emissions:155,561 tCO2e/year (including financed emissions)
Total Energy Consumption:9.5 million ekWh/year (premises energy use)

ESG Focus Areas

  • Climate Change

Environmental Achievements

  • 617,024 ft2 of energy-efficient buildings financed
  • Approx. 5,743 tonnes CO2e avoided through clean energy project financing
  • Reduced operational emissions to 2,827 tonnes CO2e

Social Achievements

  • $5.7 million in climate-opportunity aligned grants
  • Launched Home Energy Advice service to help personal members reduce emissions
  • Planet-Wise™ loans totaling $6.5 million to help members take climate action

Governance Achievements

  • Climate targets approved by Vancity’s CEO and Board of Directors
  • Base and current year financed emissions data externally assured for our interim real estate targets
  • Improved climate risk modelling for physical climate hazard assessment

Climate Goals & Targets

Long-term Goals:
  • Net zero by 2040 across all mortgages and loans
  • Net zero by 2050 across investment portfolios managed by VCIM
Medium-term Goals:
  • 90% of assets under management in material sectors will be net zero by 2030 (VCIM)
Short-term Goals:
  • 17% reduction in absolute financed emissions for residential buildings by 2025
  • 27% reduction in absolute financed emissions for commercial service buildings by 2025

Environmental Challenges

  • Significant challenges related to data quality and availability for financed emissions
  • Lack of member-level emissions data
  • Difficulty tracking actual emission reductions due to member actions
Mitigation Strategies
  • Worked through data challenges, guided by the PCAF methodology
  • Continued to implement the UN’s Guidelines for Target Setting for Banks
  • Developed a comprehensive data improvement plan to enhance data access, quality, and coverage

Supply Chain Management

Responsible Procurement
  • Ethical Principles for Business Relationships (EPBR)

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding
  • Wildfires
Transition Risks
  • Policy, legal and regulatory risks
  • Market risks
  • Reputational risks
Opportunities
  • Growth in green assets and climate-aligned lending

Reporting Standards

Frameworks Used: TCFD, NZBA, PCAF, PPCA

Third-party Assurance: KPMG

Sustainable Products & Innovation

  • Planet-Wise™ products
  • Home Energy Advice service

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:244,429 tCO2e/year (estimated)
Scope 1 Emissions:481 tCO2e/year
Scope 2 Emissions:102 tCO2e/year
Scope 3 Emissions:243,846 tCO2e/year (estimated)

ESG Focus Areas

  • Climate Change
  • Financial Inclusion
  • Reconciliation
  • Anti-racism and Equity

Environmental Achievements

  • Reduced operational greenhouse gas emissions by 52% from the 2019 baseline (2,112 tonnes CO2e in 2023)
  • $-21% emissions from commercial service buildings
  • +13% emissions from residential buildings (due to loan growth and building area increase)
  • $14.4 million worth of new Planet-Wise™ loans and commercial retrofits
  • 729,635 ft2 of energy-efficient buildings financed
  • Approximately 6,654 tonnes of CO2e avoided emissions from clean energy projects

Social Achievements

  • Launched GHG emissions coaching and tracking support for business members
  • Increased green assets to $435 million
  • Provided $3.3 million in climate-opportunity aligned grants
  • Set a Financial Health and Inclusion target to increase members’ financial confidence from 7.4 to 8.0 by 2030

Governance Achievements

  • Incorporated climate risk into overall risk oversight by the Board of Directors
  • Board reviews progress on climate commitments and targets
  • Externally assured base and current year financed emissions data for near-term real estate targets
  • Executive incentive remuneration indirectly linked to climate through targets for TBLAA (Triple Bottom Line Assets and Assets under Administration)

Climate Goals & Targets

Long-term Goals:
  • Net zero by 2040 across mortgages and loans
  • Net zero by 2050 across investment portfolios managed by Vancity Investment Management
Medium-term Goals:
  • Increase average member financial confidence score from 7.4 to 8.0 by 2030
  • 100% net zero, aligned or aligning for assets under management by 2040
  • 90% of financed emissions associated with Vancity Investment Management funds in material sectors will be net zero, aligned or aligning, or subject to engagement by 2030
Short-term Goals:
  • 17% reduction in absolute financed emissions for residential buildings by 2025 (from 2019 baseline)
  • 27% reduction in absolute financed emissions for commercial service buildings by 2025 (from 2019 baseline)
  • 90% of assets under management in material sectors will be net zero, aligned, aligning or subject to engagement by 2030
  • 75% of financed emissions generated by portfolio companies in material sectors will be aligned with net zero or subject to engagement by 2025

Environmental Challenges

  • Increased frequency and severity of weather-related events (wildfires, floods)
  • Rapid economic shifts due to the global transition to net zero
  • Uncertainty about the extent of climate disruptions and the emergence of effective technologies
  • Challenges in accessing timely and accurate building-level energy use data
  • Limited data availability for SMEs regarding emissions measurement
  • High upfront costs and navigation of rebates for energy-efficient retrofits
Mitigation Strategies
  • Integrated climate-related risks and opportunities into governance practices and business strategy
  • Improved data processes and calculations, guided by PCAF methodology
  • Advocating for public policies to speed up the transition to a net-zero economy
  • Developing new solutions for SMEs to increase awareness, provide advice, and support climate action
  • Collaborating with external experts, including climate consultants and insurance companies
  • Utilizing climate modelling software to assess risks from natural hazards

Supply Chain Management

Responsible Procurement
  • Ethical Principles for Business Relationships (EPBRs) guide decisions on who to do business with
  • Focus on working with businesses that generate positive impact or reduce harm

Climate-Related Risks & Opportunities

Physical Risks
  • Wildfires
  • Flooding
  • Rising sea levels
  • Heatwaves
Transition Risks
  • Policy, legal and regulatory changes
  • Market shifts
  • Reputational risks
Opportunities
  • Financing renewable energy projects
  • Supporting energy efficiency improvements
  • Investing in low-carbon technologies
  • Supporting the transition to a low-carbon future

Reporting Standards

Frameworks Used: IFRS S2 Climate-related Disclosures, Net-Zero Banking Alliance (NZBA), Partnership for Carbon Accounting Financials (PCAF), Glasgow Financial Alliance for Net Zero (GFANZ), UN Principles for Responsible Banking (PRB)

Third-party Assurance: KPMG (limited assurance over select 2019 and 2023 data)

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 13 (Climate Action)

Initiatives contribute to these goals through emissions reductions, renewable energy financing, and support for climate adaptation and resilience.

Sustainable Products & Innovation

  • Planet-Wise™ loans for energy-efficient retrofits, transportation, and business upgrades
  • Commercial Retrofit Financing Pilot