MONTRÉAL, Dec. 7, 2018 /CNW Telbec/ - Fondaction reduced the carbon footprint of its equity market investments by 51% between 2015 and 2018 by using an index that excludes fossil fuels and coal.
Fondaction's global equity investments amount to nearly 330 million dollars, which represents approximately 35% of all investments.
A leader in sustainable development and a key partner in the fight against climate change
In 2015, Fondaction made the decision to exclude securities from companies with fossil fuel reserves.
Soon after the Paris Agreement on climate change was signed, the Government of Quebec recognized Fondaction's track record by naming it as a key partner in its efforts to reach its climate change goals.
"With this in mind, we collaborated with our market investment portfolio managers and called upon MSCI, a financial services business that publishes market indexes, to create an entirely new index that addresses these growing environmental concerns," explains Léopold Beaulieu, President and CEO of Fondaction.
Innovation to spur change in the world of finance
"We are careful to choose investments that align with Fondaction's mission," says Luc Verville, Head of Investments. "We asked our collaborators to build an index around stringent criteria in terms of sustainable development and the fight against climate change, which have been at the very core of Fondaction's vision since 1996."
"In addition to helping Fondaction reduce its carbon footprint, the new index plays a structural role in the world of finance and places Fondaction as an important player in the energy transition," says Luc Verville.
The MSCI ex Fossil Fuels and ex Coal Indexes exclude companies with fossil fuel reserves (gas, oil and coal). The innovative index is available for all investors who want to support an economic development that is fairer, greener and more just.
By implementing the index, Fondaction was able to generate consistent yields on the financial markets for its shareholders and reduce risks related to climate change.
Keeping our investments here
Fondaction stands out with its direct investments that aim to support, promote and encourage sustainable development among Quebec SMEs. Throughout the years, it has developed remarkable expertise in investments with social benefits by bringing together the social, cultural, territorial, environmental and economic dimensions. To this day, Fondaction has acquired close to 100 million dollars in green bonds.
Fondaction invests in Quebec SMEs to contribute to maintaining and creating jobs in the province with a view to sustainable development. It manages more than $1.9 billion in assets from the retirement savings of more than 160,000 shareholders. Through its investments and commitments, either directly or through partner or specialized funds, Fondaction supports the development of more than 1,200 SMEs, many of which are social economy enterprises, that greatly contribute to the economic, social and environmental development of Quebec. For more information, visit fondaction.com.
For further information: Isabelle Monette, Media Relations, 514‑525‑5127, 514‑503‑4169, firstname.lastname@example.org