The Path to Net Zero: 10 Areas for Action
The path to net zero will require hard work, creativity, and a whole lot of collaboration. To help fuel and shape this collaboration, we have distilled the key takeaways from GLOBE Forum 2022 into the 10 action areas we need to prioritize in the next 10 years to achieve net zero by 2050.
Over the next few months, we will be developing an interactive 10×10 Matrix that highlights the actions that governments, businesses, and NGOs can take to achieve this ambitious but urgent target. We hope the 10×10 Matrix will not only inspire action, but also help you to better understand how your actions are connected to and enable others in your ecosystem.
To ensure that the 10×10 Matrix is representative of the issues facing diverse stakeholder groups, we have engaged the Leading Change Steering Committee and other partners. Virtual GLOBE Forum delegates will also have the opportunity to provide input into the full matrix in the coming weeks
The 10×10 will come to life at GLOBExCHANGE – our next Destination Net Zero event, taking place in Toronto on February 27 – March 1, 2023. GLOBExCHANGE will build on the conversations at GLOBE Forum and use the 10×10 Matrix as a basis for driving meaningful change in pursuit of our net-zero goals.
Mobilizing & Deploying Capital:
Develop policies that de-risk and incentivize investment, remove barriers to innovative financial instruments, and address funding gaps through partnerships and private/public investment
Accelerate commercialization of clean technologies, improve inter-jurisdictional knowledge sharing, support innovators and ecosystems, and accelerate public-private partnerships and community collaboration
Aligning Transparency, Standards & Reporting:
Create accountability and align climate-disclosure policies between jurisdictions and develop holistic sustainability/ESG frameworks to facilitate action and knowledge sharing
Identify national and regional risks, direct funding to resilient infrastructure retrofits and development, and improve land use planning
Creating a Circular Economy:
Design an Indigenous-centred circular economy roadmap; establish national and provincial goals, policies, and programs; and incorporate circular economy principles into data and financial modelling
Implementing Nature-based Solutions:
Prioritize nature-based solutions in formulating government initiatives and embed the value of natural solutions into infrastructure and business planning processes
Centering Indigenous Leadership, Engagement & Ways of Knowing:
Cultivate long-term relationships with Indigenous leadership and communities, enhance authentic engagement, collaboration and community capacity building initiatives, and support Indigenous knowledge-based adaptation
Leveraging Infrastructure & the Built Environment:
Focus on infrastructure investments and development that address community challenges, encourage compatibility through international collaboration, and identify built environment innovations that deliver numerous sustainability opportunities
Shifting to Low-Carbon Transportation:
Leverage policy instruments to incentivize the shift to low-carbon alternatives, focus on increasing access to connect under-resourced communities, and create infrastructure that supports the transition to EVs
Accelerating the Clean Energy Transition:
Implement strategic policy supports that actively close the gap between federal policy and provincial enforcement, align industry focus around the adoption of net-zero technologies, and encourage coalition-building across sectors
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On the Road to a Net Zero Economy, We Can’t Forget About People
Guest content by Christine Bergeron, President and CEO of Vancity.
As British Columbians begin to rebuild from the wreckage of the latest extreme weather event, it’s clear that the climate emergency is here. To prevent further warming that will result in even more catastrophic consequences for people and the planet, we need to focus our efforts and ingenuity on the transition to a net-zero economy. This transition was the focus of the most recent global climate summit, COP26, and will continue to be front and center in the decades leading up to 2050. There are tremendous economic upsides to getting it right: a trillion-dollar economic opportunity, new jobs, and a boon for innovative solutions and products.
It’s clear that the climate crisis, and the actions we take to address it, affect every one of us. But not everyone is affected equally. As we build our net-zero future, it is critical to consider what human shape this economic transition will take. We’ve seen this movie before. Following the 2008 recession, the economy rebounded quite strongly. People? Not so much. Many were left jobless or in worse jobs than before the recession. Wages eroded and debt levels skyrocketed while housing became increasingly unaffordable for many.
We can’t allow this to happen again, especially since the reverberations of this transition are going to last longer than any recession. We won’t be successful if people are alienated from the climate fight because they pay a hefty price for the transition – for example, those who are already economically disadvantaged, or people and communities whose livelihood depends on emissions-heavy industries that we must now turn away from.
Canada, in particular, must be mindful of addressing the human costs of a net-zero transition. A recent study found that sectors vulnerable to the impact of this transition account for 70% of Canada’s exports, and more than $300bn in export revenues and investments. In human terms, that translates to 800,000 Canadian jobs located in every province and territory.
Those are just the employment impacts. Not everyone has the same ability to withstand the impacts and adapt to the new net-zero “normal.” We can’t successfully transition to a net-zero economy if only those who can afford to adapt make it through the transition intact.
A People-First Approach to Net Zero
We have to approach the net-zero transition through a people-first lens. What does this mean? It means identifying how the climate emergency, and our responses to it, are impacting people – for example, workers and communities relying on high-emissions sectors. It means understanding how existing systemic barriers and inequities make those impacts worse for some people, or limit their ability to mitigate and adapt – for example, lower-income people living in higher-risk neighborhoods because those same climate risks are making homes there more affordable. And it means having a plan of action for governments, businesses, unions, and communities to work together to address this head-on.
In Canada, a people-first approach is especially critical in the energy sector, traditionally a key driver of Canada’s economy. It’s clear we must transition most of our energy production to clean-energy sources. Prime Minister Trudeau announced at COP26 that “Canada has set a goal of selling only zero-emission cars and establishing a net-zero emissions electricity grid by 2035.” Arguably this is not soon enough based on global warming projections, and yet is also very aggressive based on how long it has taken to make major industry shifts in the past.
Converting Energy Risks to Opportunities in Canada
Renewables currently provide only about 16% of Canada’s total supply of energy for electricity, heating and transportation. While that’s a higher proportion than what we see globally (13.4%) or in OECD countries (10.5%), it demonstrates just how much change needs to occur in order to meet our international commitments and to truly shift to a net-zero economy.
There’s a similar mix of room for change and potential for growth in clean-energy exports. The global renewable energy market had total revenues of $692.8bn (USD) in 2020, representing a compound annual growth rate (CAGR) of 8.9% between 2016 and 2020. Canada’s clean-energy exports totaled only $21bn in 2019. This represents an annual growth rate of 9.7% since 2014, three times faster than all Canadian product exports over the same period. But clean-energy exports still totaled only 5.5% of Canada’s product exports in 2019.
There is a clear opportunity for the Canadian economy as it begins to wean itself off oil and gas. Industry advocates expect that by 2030, Canada’s clean-energy sector will grow its GDP by 58% and its workforce by nearly 50%, adding more than 200,000 jobs. This growth will help offset the effects of oil-and-gas contraction at the macro level.
The question is, can Canada translate this growth into real opportunities for those people and communities who are no longer able to rely on oil and gas for their livelihoods, such as oil-and-gas workers, equipment suppliers and other local service providers? How do we reskill these individuals to capitalize on the new job opportunities? And how do we ensure that groups that were historically left out of the oil-and-gas boom, such as First Nations members and women, are included in the new energy growth opportunity?
There needs to be a deliberate effort on the part of governments, the private sector, workers and communities to make this transition fair – and successful. Re-skilling initiatives and building worker awareness of their transferable skills have been developed by both unions and non-union organizations, such as Iron & Earth. Scaling up and fully resourcing such initiatives will require collaboration between governments and employers.
Ensuring that Canada’s clean-energy future proceeds through true partnership with Indigenous peoples is also critical to advancing both the just transition and Reconciliation. The clean-energy sector is increasingly recognizing this. As of Nov 11, 2021, Indigenous Clean Energy (ICE) – a pan-Canadian social enterprise working to advance Indigenous inclusion in Canada’s energy futures economy – has mapped 197 clean-energy projects across Canada that have significant Indigenous involvement. ICE notes that these projects are generating jobs and training opportunities for Indigenous people, and providing a more consistent flow of revenue to meet community needs.
The Role of Financial Institutions in the Net-Zero Transition
It is imperative that financial institutions change what they fund. This means transitioning from emissions-heavy industries to cleaner jobs and industries, as well as factoring climate risks and social benefits into the assessment of loan requests and investment decisions. Financial institutions can also do more to support businesses in identifying and disclosing climate-related risks.
The climate crisis also requires that financial institutions put people first. This means helping people access and manage their finances when forced from their communities by severe climate events, such as the recent flooding in Merritt and Princeton or the forest fire at Lytton. Financial institutions can also use the tools at their disposal to encourage just-transition initiatives and lead systemic change.
For example, we introduced Canada’s first Responsible Investment (RI) mutual fund 35 years ago, and we became the first financial institution in North America to be carbon neutral in our operations nearly 15 years ago. Today, RI is an entrenched component of the investment world, and significant reductions in operational emissions are part of most large Canadian banks’ climate-action plans. We continue to finance changemakers in areas such as affordable housing, green technology, equity, and financial inclusion.
These examples highlight how the private sector can show leadership in support of a just transition. But more support is required. Systemic challenges need system-wide solutions, and such solutions require governments to also step up and lead, putting people first. That is the next key step for the just transition.
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Water in Canada: A Vision for 2050
By Alan Shapiro, Director of Foresight Canada’s waterNEXT network and Bo Simango, CEO and Co-Founder of Aquafort
It’s been said that if climate change is the shark, then water is its teeth. From flooding and drought to ocean acidification and coastal erosion, we are already seeing these impacts unfold across Canada and around the world. Inevitably, impacts are never isolated to a single Earth system. The complex web of relationships that defines our water, energy, and food systems–known as the water-energy-food nexus–means that the security of one cannot be achieved without also investing in the other two. The collective health of these systems provides a necessary foundation for community well-being, economic prosperity, and reconciliation.
What does a net-zero 2050 mean for water in Canada? In its simplest form, the future we envision for water is sustainable, secure, and equitable. In a world where Canada has achieved its 2050 goals, that future should include:
- Ensuring every water system across Canada, in particular rural, remote, and Indigenous communities, provides safe, clean drinking water.
- Strong data and research around the water issues we face, both in 2050 and beyond.
- A commitment to necessary funding, developing strong regulations, and enacting proactive measures to address these issues in real-time.
- Support for technological and social innovation ecosystems that cultivate climate solutions.
- A global leadership role in water technology, innovation, and conservation, with recognition of Canada’s privileged position as a developed economy.
- Viewing all water-related policy, investment, and action through the lens of sustainability, equity, and reconciliation.
We are not alone in imagining this future. Our Living Waters, a national network of freshwater organizations, has set the ambitious goal of seeing all waters in Canada in good health by 2030. This means that water in Canada is safe for swimming and drinking and contaminant-free; fish are flourishing and are healthy to eat; the flow of water in rivers and lakes supports life, recreation, and a healthy environment; and aquatic bugs that form the base of the food chain are thriving in all of the waterways in Canada.
However, as a recent article from MakeWay makes abundantly clear, we’ve got a lot of work to do:
“There are more than 200 federal departments and agencies in Canada, with more than 20 of these departments having freshwater responsibilities and over 75 interacting with water in one way or another. Canada has specific agencies for fish, agriculture, and natural resources – all of which impact and rely upon water – yet we do not yet have one for our most abundant resource.”
Two new high-profile federal initiatives–the Canada Water Agency and Blue Economy Strategy–offer opportunities to advance national conversations around the future of Canada’s freshwater and ocean resources. Likewise, multiple funding announcements over the past year, including for land and water conservation, Indigenous protected areas, and First Nations drinking water bring much needed resources to water systems that have historically been under-funded and under-supported. These commitments are steps in the right direction, but more action is needed to draw on the full range of economic and policy tools at our disposal in Canada.
In addition to stewarding and restoring the health of our waters, Canada also has an important opportunity to play a global leadership role in water technology and innovation. These tools are only one part of the solution to the complex challenges presented by climate change, but they can serve to advance our central values of sustainability, security, and equity.
Water innovation can offer a range of environmental benefits, and the connection between water technologies and net-zero should not be overlooked. Freshwater and oceans represent a significant and largely untapped opportunity for energy savings, greenhouse gas emissions reductions, and renewable energy generation.
The technologies of tomorrow are already in development and aquaculture offers just one example. As the fastest-growing food sector in the world and burgeoning industry in Canada, aquaculture has seen significant technological advancements from Canadian companies that support environmentally conscious fish production. Aquaculture is a resource-intensive industry, and these innovative technologies can be the difference between the expansion of ocean-based fish farming that can be harmful to aquatic environments and the transition to sustainable, land-based fish farming. Canadian start-ups such as Aquafort AI are meeting challenges in acute production through a combination of artificial intelligence, sensor data integration, and predictive analytics to help land-based farmers maintain fish and ecosystem health.
As we head into a federal election where climate is taking center stage for the first time, we have an opportunity to chart the course for a net-zero future by 2050, and beyond.
Alan Shapiro is the director of Foresight Canada’s waterNEXT network and principal at water and sustainability consultancy Shapiro & Company. You can find him on Twitter @watercomm.
Bo Simango is the CEO and Co-Founder of Aquafort, a technology startup serving the aquaculture industry and board member with Sierra Club Canada Foundation. You can find him on Twitter @BoSimango.
A Five-Point Plan for Canada to Reach Net Zero by 2050
By Phil De Luna, Green Party of Canada Candidate for Toronto-St. Paul’s
I have spent my entire career developing technologies to help decarbonize Canada. It started with my PhD in Materials Science & Engineering at the University of Toronto, where I discovered new renewable ways to convert carbon dioxide into fuels and chemicals. From there I co-founded a venture, Team CERT, to scale that clean technology out of the lab and became a finalist in the Carbon XPRIZE. I joined the National Research Council of Canada as its youngest-ever Director where I built and led a $57M collaborative R&D program to develop made-in-Canada technologies for decarbonization. Along the way, I have studied, discovered, developed, funded, mentored, and advocated for the development and expansion of cleantech.
At some point on this journey, I had a realization – technology alone is not enough to get us to net-zero. You can have the next breakthrough hydrogen catalyst or the cutting-edge carbon capture material, but unless you have the finances to scale it and the policies to support it, it will end up on the shelf. Together, technology, policy, and finance are the three levers needed to affect change. Thankfully, many institutional investors, corporates, and governments have recognized this need and are shifting money away from fossil fuels and into cleantech. For example, venture capitalists are expected to complete $7.7 billion worth of cleantech deals in the U.S. this year, up from $1 billion a decade ago. However, this transition is not happening fast enough, as it typically takes 20 years from invention to impact with clean technologies based on materiology, like hydrogen or batteries.
Following record-breaking heatwaves and the recent wake of fires across North America, the urgency to act on climate change is becoming more pressing every day. Unfortunately, many governments are not on track to meet their Paris Agreement climate goals and many, including Canada, continue to invest in fossil fuel infrastructure like pipelines. The International Energy Agency (a traditionally conservative organization) recently published a report showing that net-zero by 2050 is not possible with the continued development of fossil fuel infrastructure and extraction. Their analysis noted that achieving net-zero by 2050 can only be done with an unprecedented, warlike effort to expand clean technology infrastructure. And only governments and policies can work at the scale needed to jump-start this transition. We have innovators developing the technologies. We have investors recognizing the opportunity of this transition. We just need the political will to get it done.
Continuing my career-long goal to help make Canadian industry cleaner and more prosperous, I am now running to become a Member of Parliament in Toronto-St. Paul’s for the Green Party. I’m running because we must move faster to combat the threat of climate change and create new sustainable avenues to renew our society and economy. I’m running because we need more diversity in parliament and more science in policy. I’m running because I want to lower the barriers for other non-traditional candidates to consider running — because a diverse government is a robust and resilient one.
My platform is currently focused on three pillars: supporting our essential workers, housing affordability, and green jobs that are part of a just transition to a net-zero Canada. These topics are deeply personal for me. My fiancée is an operating room nurse at Sick Kids and a frontline worker. Many of my fellow Filipino-Canadians occupy these often low-paying but essential roles. My generation is being increasingly squeezed out of the housing market and is wondering, will we ever be able to purchase a home? Championing cleantech to fight climate change has been my passion, but more importantly, I recognize the opportunity in sustainable jobs. My father, an autoworker, lost his job when Ford closed their assembly plant in Windsor, ON, and I’ve seen firsthand what happens when an entire community is dependent on one industry. And I see the same thing happening in heavy emission industries today. We need to do everything we can to diversify the industry and ensure Canadian families have green jobs that will last.
There exists a massive opportunity in the clean energy transition, as the green economy will be the economy of the 21st century. To this end, I have come up with a five-point plan to get us to net-zero by 2050, one that I hope to push for in parliament.
Step 1. Protect what we have.
Nature sequesters 12 billion tonnes of CO2 every year in wetlands, rainforests, vegetation, and soil. Environmental conservation is not only about protecting the beauty of nature, but also about protecting its ability to capture and sequester CO2 through photosynthesis and other natural pathways. Take for example, recent plans for an Amazon warehouse on Toronto wetlands that was abandoned due to public pressure. Policies and technologies that focus on reducing consumption, reusing consumer goods, promoting a circular economy, and increasing recyclability are all ways to protect what we have.
Step 2. Renewables everywhere.
Solar and wind are now cheaper than coal. The issue is no longer economic price, but rather intermittency. What do you do when the sun does not shine, or the winds won’t blow? This is why it is so important to increase investment into and development of energy storage technologies, particularly long-term seasonal energy storage solutions that traditional batteries are not capable of. Policies that support a 100% emission-free electricity grid are also extremely important. However, we will need to consider initial lower-income energy subsidies when electricity costs may be higher due to infrastructure spending in the early stages of this transition.
Step 3. Electrify everything.
Now that we have clean and green electrons, we need to put them to work and electrify as much as possible of our traditionally fossil-fuel-powered economy. The obvious first beachhead is electric vehicles. Kicked off by Tesla’s rapid rise, light-duty transportation is well on its way towards electrification and mainstream adoption, Among others, Ford has announced they are slated to spend more on EVs than on internal combustion engine vehicles in 2023 alone. To help spur this trend, policies can create incentives for EVs, increase charging infrastructure, ban internal combustion engine cars, and mandate a certain number of EVs be available at any dealership. Another area is home heating and cooling. Electrifying our lived environment will also reduce dependence on natural gas by way of zero-emissions heat pumps.
Step 4. Tackle hard to abate sectors.
Once we’ve decarbonized our electricity grid, we’ll need to address industrial emissions that are difficult or impossible to electrify. Agriculture and the production of materials, fertilizer, cement, and steel – all things that we need for economy and quality of life – produce emissions just by the nature of their how they are created. This is where the need for disruptive technology is greatest, where we need to design and develop new processes that are circular, low-emission, or entirely new. Cleantech is not just solar panels and wind turbines, it is anything that can help reduce CO2 emissions. Electric arc furnaces, geothermal steam generation, bio-foundries that produce sustainable materials, and CO2 embedded concrete are all examples of the next wave of cleantech.
Step 5. Remove carbon from the atmosphere.
To address the inevitable gap between decarbonizing our electricity grid, transportation, buildings, heavy industry, and agriculture sectors –we need new ways to capture carbon from the atmosphere. Whether that’s nature-based solutions like regenerative agriculture or tree planting campaigns, or technology-based solutions like direct-air capture and carbon capture, utilization, and storage – we need to do it all. Policies that incentive organizations and individuals to capture CO2 or promote the use of CO2 in industry (eg. carbon-reinforced concrete) will help create demand and drive down the costs of capture as the technologies reach economies of scale.
The beauty of this five-point plan is that the technology needed to execute it will require the exact same workers who presently make their livelihoods in the oil and gas sector today. We will need pipefitters, chemists, technicians, welders, and engineers to build the clean energy infrastructure needed for a sustainable tomorrow.
And there you have it, Phil’s Five-Point Plan to Get to Net-Zero. Perhaps a bit idealistic. Perhaps some will say inertia is difficult to break, that things are easier said than done. But like running for office, you’ll never get a chance to change the world if you don’t try.
GLOBE Capital Q&A: John Casola, Chief Investment Officer, Canada Infrastructure Bank
For decades, investment in infrastructure has been viewed as a key mechanism for stimulating economic growth by creating jobs and helping to revitalize communities. Absent an economic crisis, the world typically spends over $2 trillion every year on infrastructure. In light of a global pandemic, stagnant investment, growing unemployment, and rock-bottom interest rates, investment in infrastructure—including our built environment as well as energy, transportation, water and telecom systems—is perceived by many as a prime opportunity to kick start growth.
As Chief Investment Officer at the Canada Infrastructure Bank (CIB), John Casola is at the forefront of key initiatives put in place by the CIB to help drive economic recovery. At GLOBE Capital in April 2021, he joined the Reimagining our Infrastructure session to share the CIB’s progress to date. We caught up with him to learn more about the progress they’ve made over the last three months and what a ‘green recovery’ means for Canada.
As so many others have remarked, we are living in unprecedented times in a plethora of ways. You’ve been in this business for over 20 years now. Have you ever seen so much public attention on infrastructure?
I think infrastructure is currently front and centre for so many reasons. It tends to be a government go-to during down economic cycles, mainly because it provides jobs. I’ve been in this business long enough to see a few of those cycles and I think this time is different. There’s a recognition of the importance of infrastructure for long-term growth, for future well-being, and a recognition of the importance of quality. We’re no longer building things for the sake of building things. All levels of government across the country are really focusing on what’s going to make a long-term difference for their communities, citizens, and growth. They’re not opting for short-term fixes that create jobs, but don’t add anything to society.
“Green recovery” is an ideal that the CIB is truly putting into practice. Could you tell us more about that?
The green part of what we’re doing is critical. Our shareholder, the federal government, has established five priority sectors for us: trade and transportation, public transit, broadband, clean power, and green infrastructure. We have been allocated $35 billion to invest across these sectors, $10 billion of which is dedicated to our Growth Plan. This Plan is our response to the economic slowdown due to the pandemic. It aims to accelerate Canada’s transition to a low-carbon economy and strengthen economic growth.
The past 16 months have shown us the critical need for sustainable infrastructure, and the importance of building up our economy to be resilient in the face of global challenges. At the beginning of the pandemic, our Chair challenged us to come up with a program that we could implement quickly with positive impacts on jobs, the environment, and the economy. We developed the Growth Plan—a $10 billion investment over three years, which is divided into the following components:
- $2B for building retrofits
- $1.5B for zero-emission buses
- $2B for broadband
- $1.5B for agricultural infrastructure
- $500M for project acceleration
With eight announcements in the last six months, we have an incredible start and we’re gaining strong momentum.
At GLOBE Capital, the CIB announced an investment of up to $655 million in the Lake Erie Connector project as part of the Growth Plan. How will this investment help reduce greenhouse gas (GHG) emissions?
That’s a fascinating project and a complex one. It provides a two-way highway for power, allowing Ontario’s clean energy producers to sell their power to the U.S. This is important, because emissions don’t recognize borders. The Connector also allows Ontario to buy American power in times of need, as determined by the regulator (Independent Electricity System Operator). This allows us to import clean power, instead of building back-up power sources. The most cost-efficient standby power is natural gas, but thanks to the Connector, we won’t have to rely on that emissions-intensive power source. This project is a win-win for all involved.
What other progress have you made since GLOBE Capital in terms of projects that reduce GHG emissions?
There is lots on the go. I’ll share the ones that are publicly announced to give you some sense of momentum. This is the second time in the last five months that we’ve had to schedule extra board meetings to approve projects, because they’re at that stage where they’re ready for investment. We recently approved an investment of up to $170 million in the Oneida Energy Storage project. Once completed, it will be the largest battery storage project in North America. The project will allow us to store energy that is produced at off-peak times and release it into the grid when demand is high. It will help Ontario reduce GHG emissions by 4.1 million tonnes, or the equivalent of taking 40,000 cars off the road every year. We’re also pleased that the Six Nations of the Grand River Development Corp., a First Nations group, are 50% equity participants in the project.
Other projects we’ve announced include an investment with Algoma Steel Inc. in Sault Ste. Marie, Ont.—up to $220 million to retrofit their operations and phase out coal-fired steelmaking processes. This electricity-based process is expected to reduce GHG emissions by over 3 million metric tonnes per year by 2030. We also recently announced an investment in zero-emission buses with the City of Ottawa—up to $400 million to help purchase approximately 450 buses. This a key initiative to help the city achieve its goal of reducing GHG emissions in its operations by 100% by 2040. We’re seeing lots of interest across the country in electric buses. The pandemic has drastically reduced public transit use, so many municipalities are revising their capital plans. This is where CIB can help. When it comes to sustainability, there is often a gap between the right thing to do and financial support. CIB can help bridge that gap. We can offer capital at an under-market rate of return to make green infrastructure more feasible.
In the race to achieve net zero by 2050, how do we overcome the challenges of political cycles and changing visions and priorities? How do we select the right projects that will maximize economic, environmental, and societal benefits?
Our entire team is very outcomes-focused. Those high-level outcomes are: reducing GHG emissions, connecting Canadians (i.e. broadband and transit), closing the Indigenous infrastructure gap, and improving GDP and jobs. We’re very methodical in choosing projects to invest in and keeping these outcomes top of mind. For example, with our retrofits program, we offer an interest rate between 1 and 3%. The greater the GHG reductions from the retrofit, the lower the interest rate. We want to incentivize people to go deeper.
2050 is less than 30 years away. Looking ahead, what do you see as the biggest challenge and the biggest opportunity in clean infrastructure?
It’s always going to be a challenge to compete with other government programs for scarce tax dollars. I think a lot of us could sit around a table and come up with a list of all the great things we would love for our society to have, but there’s a sprinkling of reality that needs to happen in terms of costs and resources. The challenge is building a consensus around which infrastructure projects to build and finding creative ways to fund them.
Another opportunity is to synchronize the sticks and carrots of government regulation. Carbon pricing is absolutely critical, but it can’t be the only lever. We need to also provide affordable capital.
The other obvious opportunity is broadband. You asked me if I’ve ever heard so much mention of infrastructure? The answer is probably yes. Have I ever heard so much mention of the importance of a broadband network? No, I don’t think I have. The pandemic has shown us that internet access is vital. This isn’t just about YouTube and Netflix. For some remote communities, this is vital for access to healthcare and education.
I truly believe there are some silver threads of good that have come from the pandemic. Increased broadband is one of them. We’re ready to build on that.
For more insights on the road to 2050, join our Destination Net Zero Events:
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GLOBE Advance 2021: Scaling Cleantech in Canada – Summary Report
As Canadian governments and corporations commit to net zero by 2050 targets, accelerating market deployment of clean solutions has become an increasingly urgent imperative. Building on insights gained from GLOBE Advance 2020, the Scaling Cleantech in Canada session hosted at GLOBE Capital 2021 focused on the barriers impeding cleantech deployment, solutions, and leadership.
In partnership with Emissions Reduction Alberta (ERA) and sponsored by Foresight Cleantech Accelerator Canada (Foresight) and the Natural Gas Innovation Fund (NGIF), GLOBE Series and The Delphi Group engaged 70 workshop participants and speakers from Tourmaline, Intelligent City, Foresight, and ERA to discuss key barriers, best practices, and lessons learned in deploying and scaling cleantech in Canada.
The partners and sponsors involved in this initiative hope that this summary supports advancing scaling and deployment of cleantech in Canada and welcome any stakeholder feedback. Stay tuned for the next outcomes-oriented installment of Scaling Cleantech in Canada at GLOBE Forum 2022!
Q&A with Andrea Brecka, GM Retail, Director & Vice President, Shell Canada
With over 1,300 Shell stations in Canada, filling up under that bright red and yellow sign is a weekly ritual for many Canadians. It’s also one of the activities that generates the most carbon emissions—a quarter of Canada’s carbon footprint is attributed to transportation. Consumers know this and they’re continuing to demand new solutions to reduce their emissions. As GM of Shell’s retail fuels division in Canada, Andrea Brecka leads the company’s efforts to put the customer first. We caught up with her to learn more about how Shell is investing in innovation to transform what it means to “fill ‘er up”.
You have joined the Canadian government, 100 other countries and many of the world’s largest corporations in committing to net-zero emissions by 2050. To achieve this target on a global scale, the latest International Energy Agency report recommends no new oil and gas developments. What does a net-zero future mean for Shell?
Climate change is a very urgent challenge and tackling it requires a fundamental transformation of the global economy, including the energy system. That’s why Shell has stepped forward to set a net-zero-by-2050 target in lockstep with society’s progress and the Paris Agreement.
How will we do that? We’ve identified six levers to help Shell and our customers decarbonize:
- Reducing emissions in our operations.
- Shifting to natural gas.
- Growing a low-carbon power business to provide more renewable electricity and electric vehicle charging points.
- Providing low-carbon fuels, such as biofuels or hydrogen.
- Developing carbon capture and storage, which we’ve already started in Canada.
- Using natural carbon sinks like forests to absorb greenhouse gas emissions.
In terms of the IEA conclusions, they’re based on scenarios and, therefore the demand and supply modeling varies. Shell’s oil production peaked in 2019. Further, we don’t foresee any frontier explorations beyond 2025. All to say, this net-zero commitment is critical for Shell.
I understand Shell Canada has taken steps to reduce Scope 3 emissions. Could you share more about this strategy and why it’s important?
Absolutely. I think it’s fundamentally important that everybody understands what we mean by Scope 1, 2, and 3. We define Scope 1 and 2 as the emissions generated from the extraction and production of the energy products we sell. Scope 3 emissions are generated by the end use of these products. Many people are surprised that more than 90% of Shell’s emissions are Scope 3. The other element that people may not know is that Shell sells many products from other companies, including energy products. In fact, we sell more than three times the energy we produce ourselves. This is why it’s significant that Shell has chosen a commitment to reduce Scope 3 emissions.
I’ll share an example of how we’re helping our customers reduce emissions. Last year, we were the very first fuels retailer in Canada to launch a Drive Carbon Neutral program for our customers to help offset emissions from fuel purchases. Most recently, we’ve announced that carbon-neutral lubricants will be available to customers in key markets, including Canada. This program will offset approximately 700,000 tonnes of CO2 emissions per year.
Tell us more about your new carbon-neutral driving offer.
For a number of years, many customers have been telling us they’re interested in reducing their carbon footprint, but an electric vehicle (EV) is not an option at this time. The Drive Carbon Neutral program helps them have an impact even if they don’t own an EV. It’s very simple to participate: from now until Sept. 7, when customers opt in via the Shell EasyPay app, Shell will offset the emissions from their fuel purchase. It’s a great experience and I highly encourage all our customers to participate.
Alternatively, customers can come inside the store at participating locations and pay 2 cents per litre to offset their emissions. What happens after that? Shell purchases independently verified carbon credits that are generated from either Canadian or international projects designed to protect or restore the natural landscape.
I’m happy to say that, since the launch of this program, we have offset approximately 15 million litres of fuel. The customer feedback is overwhelmingly positive. We’re continuing to evolve the offer and there will be more to come later this year. Stay tuned!
Consumer demand for alternative fuels is growing. How is Shell supporting innovation to meet that demand?
As I referenced earlier, it’s important to be in lockstep with customer demands. In Canada, I’m proud to say that we’ve not only embraced, but I feel like we embody the energy transition. In the last five years, we have transitioned our business from heavy oil to natural gas, we’ve implemented carbon capture and storage here in Alberta, and we continue to do more and more with respect to lower-carbon fuels and renewables. We’re also making a much wider range of lower-carbon products available, such as biofuels and hydrogen, while also increasing the number of charge points for battery electric vehicles.
To give a hydrogen example, Shell has partnered with a hydrogen technology and energy company called HTEC to build two hydrogen refueling stations in the greater Vancouver area. On the biofuels side, there are a couple of innovation examples. We have a 40% interest in the $875 million commercial-scale Varennes carbon recycling plant—the first ever waste-to-low-carbon-fuels plant in Quebec. Secondly, Shell Ventures has made an equity investment in Forge Hydrocarbons Corporation to build a first-of-its-kind $30 million commercial-scale biofuel production plant in Ontario. We’ve also acquired Greenlots, an EV solutions provider, and we will be building EV charging stations across Canada and in the U.S. These are just a few examples of investments Shell has made to advance innovation and accelerate progress.
It’s 2030. I pull into a Shell station. What does it look like?
I think the future retail station will have a mosaic of solutions. Certainly, when you think about the kinds of fueling offers, EV, hydrogen, and biofuels will be standard. We will build future retail stations to be carbon neutral, perhaps taking advantage of solar panels or geothermal power. Lastly, I think about our customers. We have a vision to provide an oasis within the store. In 2030, we’ll have great lounge areas with wifi for people to connect or catch up on some work. In addition to the foods and beverages we have now, we’ll also offer healthier solutions for our customers. We think of our retail stations as not just fueling vehicles, but fueling bodies and minds.
How is Shell addressing calls for a just transition? And as a former president of Shell Canada’s Women’s Network, what role do you see for diversity and inclusion as we transition to a clean economy?
I’m proud to say that when Shell looks at projects like LNG in new areas, we work hard to get to know the communities. That means understanding the community’s wants, meeting its workforce, and addressing local partnerships in a way that’s fair, just, and inclusive.
In my work in the retail business last year, we launched the Fuel Service app. For most of us, fueling your car is a seamless experience, but for some individuals with disabilities, it can be daunting. To address that challenge, we partnered with Fuel Service. Now, individuals have the ability to call ahead and see if a retail station is able to assist them in their fueling.
I’ve worked with Shell for almost three decades. One of the reasons I’ve been here as long as I have is because Shell believes in and takes action on diversity, inclusion, and equity. Even in the last year, Shell is going through a major reorganization and we’ve made a very intentional effort to ensure our leadership team is diverse. This has been wonderful. Everybody wants role models to look up to. Diversity means better quality decisions and better business outcomes.
If you could invite three people, either alive today or no longer with us, to a conversation about the future of energy in Canada, who would they be?
I love this question. I thought long and hard about it. One would be Brian Mulroney. I saw him speak at a Pollution Probe gala last year and in his speech, he said “Successful leaders do not impose unpopular ideas on the public. They make unpopular ideas acceptable to the nation, and that takes courage.” When I think about his legacy of really tackling tough environmental challenges and what he’s been able to accomplish, it’s very inspiring. I would love to ask him how he managed the many challenges and different stakeholders to ultimately make progress.
I also thought about Generation Z and my two young adult daughters. When I think about that generation and what’s important to them, I would love to start a conversation about what they think about companies like Shell. How do they see us playing a role in tackling climate change? I’d love to just listen to their perspectives and have a debate.
Lastly, Elon Musk is a pioneer and a visionary. He’s courageous, bold, and willing to fail fast to make progress. Wow. For a company like Shell that’s undertaking transformational changes, learning from someone who is willing to take a risk to commercialize ideas would be fascinating.
GLOBE Capital Q&A: Jonathan Fowlie, Chief External Relations Officer, Vancity Credit Union
“We must work towards a climate transition that puts people at its centre and leaves no one behind,” Vancity proclaims as part of its commitment to net-zero by 2040. After a year when our environment and social safety nets were tested like never before, this approach seems very timely. Jonathan Fowlie, Chief External Relations Officer, Vancity Credit Union, joined No One Left Behind: How We Build a Just Transition to the Net-Zero Economy at GLOBE Capital to discuss the role of financial institutions in supporting a just transition. We caught up with Mr. Fowlie to learn more about how Vancity has integrated an equity lens into its climate commitments.
Tell us more about Vancity’s net-zero commitments.
We’ve recently released five commitments on climate action and climate justice that take a holistic approach to how we as a financial institution can respond to the climate emergency. It starts with decarbonization and getting our lending portfolio to net-zero. We’re also working to enable responsible investments that create a clean and fair future. This past year has exemplified how a global event can widen the systemic gaps in our economy. The climate emergency is having and could have a similar impact. We’re applying this systemic view to climate change to anticipate community and economic impacts.
Earlier this year, Vancity became the first financial institution in Canada to make a commitment to net-zero emissions by 2040 across your full lending portfolio. To ensure success, you’ve gone one step further by also committing to regular targets on the road to 2040—the first of which will be in 2025. How will you set that 2025 target?
In its most basic form, Vancity was carbon neutral across our operations in 2008. We know we can have a much greater impact on reducing emissions by extending this commitment to what we finance, i.e. the loans we give people to buy homes or start businesses. Our 2025 target will aim to reduce these finance-related emissions.
The first step is understanding the carbon footprint of our loans. If you have a Vancity mortgage on your house, what are your emissions and how do we record that? Our most recent annual report discloses the emissions that we estimate to be associated with our loans. The next step, which we’re undertaking right now, is a rigorous science-based process to understand Vancity’s pathway to net zero with that inclusive lens in mind. Once we identify that pathway, we’ll engage government to ensure we’re aligning with current regulations. Then, we’ll be ready to publicly commit to targets that are aggressive, achievable, and science-based.
What actions is Vancity taking to incorporate equity into its climate work and why do you think it’s important that we include equity in climate finance conversations?
Getting to net zero is important. How we get there is essential. As I mentioned earlier, the pandemic has shown us the impact a global event can have on marginalized communities. We also saw how a financial institution like Vancity can immediately meet those needs. We have a history of financial inclusion—of trying to serve the underserved. That approach has become all the more relevant during the pandemic.
For example, on Vancouver’s Downtown Eastside, health restrictions have interrupted a lot of the services that residents rely on. In the first months of the pandemic, various levels of government introduced new and increased benefits to support the safety and well-being of vulnerable and hard-hit individuals. As a financial institution, our role is to form a bridge between the resources being made available and the people who need to access them.
Our Pigeon Park Savings branch was the only financial institution in the Downtown Eastside that stayed open during the height of the pandemic. We see this as an illustration of financial inclusion and how it can ensure systemic gaps aren’t widened in extreme situations.
We’re taking the same approach to the climate emergency with a view to ensuring the transition to a clean economy will be equitable and just. That means talking a little bit less about decarbonization and climate and more about understanding existing inequities and of course, including marginalized communities in that conversation.
When it comes to the just transition, what do you think is the biggest opportunity and the biggest challenge?
The biggest challenge is ensuring the transition is just. What do I mean by that? We’re at a place where we look ahead to the effects of climate change and we’re still not entirely clear on the questions we need to ask, the things we need to measure, and the actions we need to take. Some are apparent, but some, as we saw during the pandemic, emerge as secondary and tertiary issues. How do we ensure we can adjust and be flexible?
Conversely, the biggest opportunity is to re-imagine our economy. How can we shift, innovate, create leaders, and form the jobs of tomorrow? We’ll need to consider the skillsets of people across our economy. Part of that is considering the workforce that will need to transition from a job that might not exist 10 years from now into a job that is driving innovation. It’s also about creating opportunities that make our economy more equitable and inclusive.
When you ask people: do you think there needs to be a fundamental change towards an economy that is cleaner and fairer? Unanimously, you get a yes. It’s not at all clear exactly what that future looks like, but that consensus creates an opportunity to chart a new path.
How can financial institutions take a leadership role in the just transition?
Financial institutions like credit unions and banks make crucial decisions every day about where money goes, what gets funded, and who benefits. So, we have a crucial role to play in determining the future economy and frankly the future of our planet. Accordingly, there are a number of questions that all financial institutions should be asking: Are we just offsetting climate impacts? Are we working to avoid them in the first place? How are we measuring the changes to our balance sheet in a rigorous way that ensures transparency? Finally, how do we ensure that the actions we are taking are leading towards an economy that is both clean and fair? I strongly believe that we have an obligation to understand the impacts of our decisions on where to allocate capital, because those who have the least to do with causing climate change in the first place are those who will be impacted the most and who will have the least available resources to adapt. We have a unique opportunity right now to learn from the past and explore what it means to truly build back better.
If you could ask the GLOBE Capital community to take one action, what would it be?
I’d ask the GLOBE Capital community to bring an equity lens to every action they take on climate. For example, when you’re looking at climate risk across a portfolio of buildings, consider the demographics of the locations and local people’s ability to adapt. Considering equity means asking: are there choices that we can make today to ensure we’re not only protecting our investments against climate risk, but we’re also fostering equity and resilience? It goes back to the premise that yes, we need to decarbonize. We could do that overnight by just stopping funding a variety of activities, but that’s neither practical nor will it lead to an equitable economy and society. So, we need to ensure we’re inviting everyone into the conversation and framing that conversation in a way where everyone, particularly marginalized communities, can see themselves reflected.
GLOBE Capital Q&A: Bryan Gilvesy, Chief Executive Officer, ALUS
The Canadian countryside conjures up images of both vast wilderness and plaid-clan farmers in bright red tractors. The first is a symbol of conservation and nature; the second a symbol of economy and production. ALUS is blurring those lines to bring us an innovative approach to nature-based solutions. Its New Acre Project helps corporations exceed sustainability objectives by supporting farmers and ranchers to build nature on their land one acre at a time. Bryan Gilvesy, Chief Executive Officer, ALUS, joined Not Your Grandpa’s Farm: Welcome to the NEW Bioeconomy at GLOBE Capital to discuss the financial, environmental, and social opportunities of a bioeconomy. We caught up with Mr. Gilvesy to learn about the great potential for ecosystem services through agriculture.
Was there a Eureka moment for you in terms of understanding the role for agriculture in fighting climate change?
Yes, there was. I was the third participant farmer to enroll in the ALUS program in 2006. The project that intrigued me at the time was the restoration of the native tall grass prairie here on my ranch in Norfolk County, Ontario. As I learned more about the grass, I realized it had extraordinarily long roots—12-16 feet—with a root ball that replenished itself every two years making it highly effective at sequestering carbon into the soil.
And then, because of the technical support offered by ALUS, my learning only grew. I realized that the grass prairie supports a whole suite of grassland birds like the meadow lark, and it was an important habitat for endangered species, like the American badger. My land became home to a whole suite of native pollinators that I didn’t even know existed. On top of that, those deep roots meant these grasses were extremely drought tolerant and could form part of my drought season feed for my cattle.
This was an ‘aha’ moment for me. I realized how effective native ecotypes can be at sequestering carbon and supporting biodiversity.
What makes an ALUS farmer different from the farmer down the road?
ALUS farmers come to view their farm as multifunctional. They don’t just see it as a means of producing food and fibre, but they also see that they can build natural capital, sequester carbon, increase biodiversity, foster climate resilience, and support wetlands and water. We’re all beginning to recognize that these things have value in the marketplace. ALUS farmers have come to the realization that their farm can be productive beyond the one thing they’ve typically been paid to produce.
What are some common misconceptions about farmers and ranchers and climate change?
Traditionally, we haven’t seen farmers as solution providers for climate change, but I think that notion is disappearing.
One misconception that’s still common is: we often interpret climate action as only the reduction of greenhouse gas emissions. It’s so much more than that. When farmers take climate action through nature, it creates a tremendous amount of leverage. You get a whole suite of co-benefits for biodiversity, resilience, water filtration, and more. Further, sequestering carbon effectively means improving soil, which makes our food stores more resilient as well.
ALUS’ New Acre Project captures the full suite of benefits that come from climate action on a farm and makes those benefits available through a marketplace.
Nature-based solutions have exploded in popularity in recent years. For professionals who are new to this space, where do you recommend they start?
I think they should start at the beginning by understanding how native plants function. Plants are part of the carbon cycle. They are energized by the sun and by breathing in carbon dioxide, which they then deposit into the soil through their roots. To reduce greenhouse gas emissions, we need more of this carbon cycle in the world. Native plants established in the correct locations using the correct ecotypes provide the ideal solution. These native plants don’t just absorb carbon, but they also serve as habitat for pollinators, water filtration devices, and habitat for endangered species. With all of this in mind, the advantages of nature-based solutions over mechanical solutions for carbon capture become more obvious.
Could you tell me more about your recent announcement with A&W Canada and Cargill and how it will help us achieve a net-zero future?
Sure. We’re really pleased that A&W Canada and Cargill have collaborated with us to create the Grazing Forward program, which is an extension of the New Acre Project at ALUS. This program will accelerate and enhance rancher-led grazing projects that mitigate climate change. A&W Canada and Cargill have generously committed $1.8 million over three years to support ranchers in Alberta, Saskatchewan, and Manitoba as they continue to scale regenerative agriculture practices. The program is expected to sequester up to 12,578 MT greenhouse gas emissions per year, equivalent to more than 50 million kilometres driven by the average passenger vehicle. ALUS will take a hands-on, local approach, working with interested Canadian beef ranchers to plan and implement practices that contribute to environmental outcomes. This effort will impact more than 6,000 acres and engage ranchers in 20 communities, extending the New Acre Project’s current reach by 233%. Needless to say, we’re very excited about it!
What was your biggest takeaway from GLOBE Capital?
Well, it was a pleasant experience for us, because our session included a poll asking attendees for their opinion on the greatest opportunity in the bioeconomy. Obviously, we thought emission reductions would be number one, but biodiversity rose to the top as a very important issue for the attendees, which is mostly a business audience. I would not have that expected that. It’s a pleasant surprise for us, because we believe biodiversity is the apex indicator of environmental health, and economic prosperity. If biodiversity shows up, we’ve put the right plants in the right places and managed them correctly. Biodiversity is a sign of a more resilient climate.
GLOBE Capital Q et R : Stéphane Villemain, Vice-président Responsabilité sociale d’entreprise, Ivanhoé Cambridge
Stéphane Villemain, Vice-président Responsabilité sociale d’entreprise, Ivanhoé Cambridge, s’est joint au panel Reimagining our Infrastructure de GLOBE Capital afin d’échanger sur sa vision d’une infrastructure mondiale favorisant la résilience et matérialisant un avenir net-zéro. Nous avons fait un suivi avec M. Villemain pour en savoir plus sur le récent engagement net-zéro d’Ivanhoé Cambridge et ses plans concrétiser ce projet.
Que retenez-vous principalement de GLOBE Capital ?
L’intérêt du secteur financier pour l’ESG et en particulier pour le changement climatique est en pleine croissance, c’est fascinant. Il y a à peine 3-4 ans, seule une poignée d’institutions financières au Canada avait pris des engagements dans ce domaine. Le changement climatique est maintenant largement reconnu comme un risque et une opportunité d’investissement et Globe Capital est un excellent lieu pour apprendre de ses pairs sur la meilleure façon d’aborder ce défi.
Le mois dernier, Ivanhoé Cambridge a annoncé son engagement à atteindre la neutralité carbone pour son portefeuille international d’ici 2040. Qu’est-ce qui a motivé cet objectif ?
Chez Ivanhoé Cambridge, nous avons la conviction qu’il est de notre devoir d’avoir un impact positif sur l’environnement. L’urgence climatique nous pousse à aller plus vite, et plus loin.
Notre secteur (l’immobilier et la construction) est responsable d’une grande part des émissions de gaz à effet de serre (40%) et en même temps en subit les risques. Le changement climatique menace nos actifs au travers d’événements climatiques extrêmes dont on anticipe qu’ils seront plus nombreux et sévères. D’un autre côté, une transition vers une économie propre ouvre beaucoup d’opportunités et renforcera la résilience de nos actifs. Nous savons aussi que les investissements durables sont plus profitables sur le long terme. Ne rien faire sera nécessairement plus coûteux.
En fixant une cible net-zéro carbone, notre objectif est à la fois ambitieux et réaliste. Nous nous appuyons sur une approche scientifique en ligne avec l’Accord de Paris de 2015 et nous considérons notre performance carbone actuelle, notre stratégie d’investissement, les cibles carbone des pays dans lesquels nous investissons, et les outils récemment développés dans notre industrie, comme le Carbon Risk Real Estate Monitor (CRREM).
J’ajoute que pour atteindre sa cible net-zéro carbone d’ici 2040 Ivanhoé Cambridge a fixé des jalons. Nous nous sommes engagés à réduire notre intensité carbone de 35% d’ici 2025 par rapport à 2017, à augmenter nos investissement sobres en carbone de plus de $6B (€4M) d’ici 2025 (par rapport à 2020), et à rendre tous nos développements net-zéro carbone à partir de 2025. Ces nouvelles cibles carbone portent sur la portion de notre portefeuille en exploitation et en détention directe (i.e. la majeure partie de notre portefeuille, là où nous pouvons avoir le plus d’impact).
Quels sont les moyens que vous allez employer pour atteindre cet objectif ?
Concrètement, nous utiliserons trois principaux leviers : l’efficacité énergétique, l’énergie décarbonée, et de nouveaux développements.
L’énergie la plus propre est celle qu’on ne consomme pas. Ainsi, l’amélioration de la performance énergétique de nos principaux actifs devrait contribuer à plus de 20% de notre objectif. Nous travaillons également sur la consommation d’eau, la gestion des déchets et des ressources.
Deuxièmement, nous visons à réduire significativement l’utilisation des énergies fossiles dans nos propriétés, et accroître au maximum la part des énergies renouvelables, soit en la produisant sur site (panneaux solaires par exemple), soit en s’assurant que l’énergie acheminée est renouvelable. Cela devrait contribuer également à plus de 25% de notre objectif. Nous estimons également à 30% la part de notre objectif qui sera atteinte grâce aux efforts de transition énergétique des fournisseurs d’électricité, qui décarbonent leurs réseaux.
Troisièmement, 20% de notre cible sera atteinte grâce à la construction de propriétés bas-carbone, à partir de 2025).
En ligne avec le World Green Building Council, nous définissons un bâtiment net zéro carbone opérationnel comme un bâtiment à haute efficacité énergétique et entièrement alimenté par des énergies renouvelables sur site ou hors site, incluant en dernière priorité la compensation des émissions opérationnelles carbone restante).
La partie résiduelle de notre objectif net-zéro carbone pourra être atteinte via une stratégie de compensation carbone, en dernière priorité.
Pour favoriser notre réussite, nous lions une partie de la rémunération de nos employés à l’atteinte de nos cibles carbone, parmi d’autres tactiques.
Quelle partie du chemin avez-vous déjà parcourue ?
En 2017, Ivanhoé Cambridge avait pris l’engagement de réduire son intensité carbone de 25% d’ici 2025. Nous avions déjà atteint une réduction de près de 20% en 2019. C’est pourquoi cette cible a été relevée à 35%. Depuis 2017, Ivanhoé Cambridge a augmenté de près de 200% ses investissements sobres en carbone, soit 14,6B CAD (au 31 décembre 2020).
Comment la durabilité se traduit-elle économiquement chez Ivanhoé Cambridge ?
Nous souhaitons opérer un alignement plus qu’une opposition entre performance durable et performance financière.
La pérennité de notre portefeuille nous aidera à bien performer dans les années à venir et saisir ces occasions nécessite d’intégrer le climat dans notre analyse d’investissement et dans la gestion de nos actifs.
Nous considérons que ces engagements constituent une stratégie de création de valeur. Promouvoir l’efficacité énergétique et l’innovation dans l’opération de nos bâtiments, c’est contribuer à prolonger leur durée de vie (« future-proofing »), réduire les risques d’obsolescence et anticiper de futures règlementations et coûts liés au carbone.
Nos bons résultats en matière de décarbonation nous permettent d’augmenter nos financements verts, dont les conditions sont en partie liées à notre intensité carbone. Par exemple, plus l’intensité carbone de notre portefeuille est faible, moindre est le coût de notre dette. Notre ambition est d’accroitre et de diversifier ces financements.
Comment intégrez-vous le climat dans vos investissements ?
Le climat est systématiquement intégré dans notre analyse d’investissement pour toutes nos nouvelles transactions, ainsi que notre gestion d’actifs : chaque transaction est évaluée en fonction des risques climatiques et de son impact sur l’empreinte carbone de notre portefeuille et sur nos cibles.
La majorité de nos quelques 1,100 propriétés est également évaluée en fonction de son exposition aux risques climatiques actuels et futurs.
Les changements climatiques ont et auront un impact sur le risque et les rendements de notre portefeuille. Nous évaluons ces impacts selon 2 dimensions : 1) l’atténuation des changements climatiques (efficacité énergétique, énergie propre, matériaux de construction comme le bois (CLT) qui entraînent des réductions d’émissions de carbone liées à la construction et à l’exploitation de nos propriétés ; 2) l’adaptation climatique, c’est-à-dire l’optimisation de la résilience de nos propriétés dans un contexte de changements climatiques, par exemple à l’image des risques d’inondation dans certaines régions.
Un sacré défi vous attend. Quelles sont les prochaines étapes ?
Nous voyons tout cela comme une progression.
Aujourd’hui, notre stratégie est principalement axée sur le carbone opérationnel lié à la consommation énergétique de nos propriétés. D’ici les deux prochaines années, nous travaillerons également sur le carbone associé à la construction, particulièrement au regard des matériaux utilisés.
Nous fixons un cap : nous ne prétendons pas avoir toutes les réponses aujourd’hui, mais nous croyons que nos récentes réalisations et cette cible ambitieuse et réaliste nous donnent un bon départ.