This text is part of the special Corporate Social Responsibility section
This fall, around twenty major players in the Quebec financial cluster took action by signing a charter of commitments in favor of “sustainable finance”, which is based on the principles of responsible governance in a desire to fight against the climate emergency. A position taken on the initiative of the Finance Montréal organization, which embodies the “historic opportunity” to position Quebec as a pole of excellence and innovation in this area, while ensuring “good growth” of the economy from here.
The Declaration of the financial center for sustainable finance is focusing on an emerging aspect of finance, explains Jacques Deforges, Managing Director of Finance Montreal: incorporating ESG (environment, society and governance) criteria into the thousands of decisions made daily in all facets of the financial industry.
“Sustainable finance is the finance of tomorrow,” believes Jacques Deforges. It is a form of finance more in line with current social issues. “
These issues are the same which public policies must also tackle: respond to the climate emergency, reduce economic gaps and support the development and acceleration of local initiatives for “a green, fair and responsible transition”.
“The declaration is based on three pillars: the declaration itself, which reaffirms a number of commitments and beliefs on the future of sustainable finance, the commitments of the signatories, and the periodic monitoring of these which will be made. by Finance Montréal, details Jacques Deforges. This position represents a historic opportunity for Quebec to benefit from this very strong trend in our industry. “
Better decision-making in order to grow better
From the choice of securities in an equity portfolio to the investment and governance policies of an institution, the signatories of the Declaration all commit to putting in place “concrete measures” concerning “the environmental impact and the point of social view ”of their business decisions.
For example, reject stock market securities linked to the extraction of non-renewable natural resources, promote diversity and inclusion on boards of directors or even increase collaboration between different players in investment strategies and ESG opportunities These are all ways of ensuring sustainable finance to which Desjardins, National Bank and even Beneva, born from the merger of La Capitale and SSQ Insurance, are committed. The recent promise of the Caisse de dépôt et placement du Québec to liquidate its assets in the petroleum sector and to cease all investment in new pipeline constructions is also part of this series of measures advocated in the declaration.
Finance, […] it is the ability to assess risks. And risk is made up of several factors, including the environment.
Finance Montréal, whose mission is to develop and promote Quebec’s financial services industry, will monitor these commitments on the basis of a periodic report outlining the progress of the commitments of the various signatories. The first of these reports is expected in the spring, during the second edition of the new Sustainable Finance Summit.
“It’s a movement over several years,” says Jacques Deforges. Our role will be to produce this report, but it is a collective effort. For us, it was out of the question to issue yet another declaration that would have no significance. The objective is to develop the ecosystem of sustainable finance: it depends on the training of talents, the supervision of governance, investment policies … If we want to make Quebec a pole of sustainable finance of world caliber, our financial ecosystem must be efficient. And Quebec has everything to become an attractive environment for financial activities. “
The reason: “Quebec’s DNA predisposes it,” believes Jacques Deforges. When we think of ESG, we think of “S”, for “social”. Whether it is with cooperatives like Desjardins, which by definition redistributes its profits, or the Solidarity Fund QFL, which has a great societal impact, the Quebec financial ecosystem is naturally focused on social and environmental concepts. The ground is fertile here to do more and exploit the trend of sustainable finance, by taking actions that will position Quebec as a leader in the Americas in responsible investment. “
The finance of tomorrow, for the leaders of tomorrow
Recognized for the quality of its training, HEC Montréal, one of the signatories of the Declaration, says it is “very stimulated” to participate in this “symbolic message which must yield concrete results”. In its academic capacity, HEC Montréal wishes to set an example, in particular by participating in the creation of “new knowledge”, reveals Federico Pasin, director of the establishment.
“What are the relevant indicators in sustainable finance? How can we integrate them into our current practices? How to analyze a transaction in terms of environmental performance? We want to participate in the creation of this knowledge and equip a new generation of responsible leaders who will embark on the path of a prosperous, sustainable and equitable economy. “
This will also responds to a need. Among students who undertake management studies at HEC, no less than 99% of respondents surveyed expect universities to be leaders in society in terms of sustainable development, reveals Federico Pasin. More than 90% of students even think that knowledge of ESG topics will be essential in the job market of tomorrow.
At HEC Montréal, we therefore take this role very seriously, as soon as we arrive on the school benches.
“We realize to what extent, if society wants to tackle climate issues properly, the actors who have a role to play must stand up. This is the case with HEC Montreal. To be actors in this transformation of ways of doing things, we must sign this declaration, offer the appropriate courses and help young people develop the society of tomorrow. “
Aware of the skepticism that some might have towards this series of commitments by the provincial financial elite, Federico Pasin, like Jacques Deforges, does not shy away from the label of ” greenwashing Which could be attached to them. On the contrary, Federico Pasin “sees it in a good light, because it is true that it is a trap, but above all it puts the pressure on us to be serious in our approach”.
“If we say to ourselves that sustainable finance is just a facade that does not change our practices, this declaration will be a dismal failure, illustrates Federico Pasin. We have the pressure to surpass ourselves and carry out this mission with conviction. Global warming is the time to tackle it. All the signatories have decided to put the train of change on track. We at HEC Montreal see ourselves as a shuttle that will allow us to embark on this train that is already in motion. “
A conclusion similar to that of Jacques Deforges, who believes that the signatories will have to be judged on “the concrete, demonstrable and measurable actions” they will take.
“Finance, since the days of the Florentine bankers, has been the ability to assess risks. And risk is made up of several factors, including the environment. Why encourage a non-renewable resource industry if the prospects for growth are not present? This is why sustainable finance is not a passing fad: it makes economic sense. Reality will prove that it is not “Greenwashing”, but many commitments as serious as necessary. “