Our net-zero commitment.
Vancity’s net-zero commitment means that by 2040, the greenhouse gas emissions from Vancity’s lending— mostly commercial and residential properties — will be eliminated or significantly reduced.
The first major step towards achieving this commitment are our 2025 interim targets. Setting intermediate targets on the path to net-zero helps us ensure that we’re on the right path, evaluate progress, and be kept accountable by our members.
Vancity does not lend to oil, or gas, or to many of the carbon-intensive industries that are the focus of efforts by others in setting interim climate targets. Our 2025 targets cover three main sources of financed emissions in our lending portfolio: residential buildings, commercial service buildings, and operational business loans. Vancity has also set an engagement target for operational business loans.
View our 2022 technical target setting report
2025 interim target: Real Estate.
For residential and commercial buildings we set the following absolute-reduction targets, covering a significant portion (81%) of the lending on our balance sheet:
- A 17 per cent reduction in absolute financed emissions for residential buildings by 2025 from a 2019 base year.
- A 27 per cent reduction in absolute financed emissions for commercial real estate service buildings by 2025 from a 2019 base year.
Interim target: Operational Business Loans.
We have engagement targets for our operational business loan portfolio, with the goal to support our business members in reducing their emissions, specifically:
- By the end of June 2023, we will proactively connect with a significant majority of business members in five high emitting sectors to provide resources to measure and disclose their emissions.
- Businesses in high-emitting sectors seeking new loans over $750,000 will need to provide data on their emissions. Those with significant actual emissions will be supported to develop a Climate Transition Plan.
- By the end of June 2023, we will also have engaged with at least 15 members with existing lending and high emissions to develop a Climate Transition Plan.
How we will achieve these targets.
The biggest challenge with reducing our financed emissions is that they’re not under our direct control. Rather, they are the emissions generated by our members as they live their lives and operate their businesses.
This means achieving our net-zero commitment will require:
- Member engagement: engaging with our members to support the emissions reductions they want to achieve in their lives and businesses.
- Policy advocacy: engaging with officials and policymakers to advocating for equity-focused climate policy at every level of government.
- Clean growth: increasing our lending in lower-emitting assets and businesses.
Vancity has a particular interest in supporting small and medium-sized (SMEs) businesses to develop their climate action plans. These businesses contribute significantly to Canada’s economy, providing more than 70% of Canada’s private sector jobs, but are often overlooked in net-zero pathways and goals.
For more information about specific plans and actions we are taking to achieve read the Vancity Interim Climate Targets - Technical Report 2022.
