Canada’s largest credit union has committed to decarbonizing its building portfolio and closing its emissions data gaps in an inaugural climate plan.

Vancity’s 35-page Climate Action Plan, released April 20, lays a roadmap for achieving net-zero emissions in the financial institution’s loans, investments and operations over the next 15 years.

The plan isn’t required under Canadian regulations but frames climate change as here-and-now, and strives for more accountability to Vancity members and to federal climate risk reporting obligations. Its four “Big Moves” include financing low-carbon building, growing the green economy, championing climate solutions and resilience, and improving its climate data.

Climate strategy director Alison Coates said the plan builds on the foundational commitments that Vancity set in 2021, when its reporting on financed emissions was “fairly nascent.” These included reaching net-zero by 2040, financing an equitable transition, and improving transparency and accountability.

The climate plan “reflects what we’ve learned over that time and where we see ourselves going in terms of continuing to deliver impact, deliver emissions reductions and grow our business,” Coates told The Energy Mix.

She described Vancity’s portfolio as “relatively low-emission,” because it minimizes investment in fossil fuel operations through IA Clarington Investments’ socially responsible investing (SRI) funds. These funds exclude companies whose primary line of business is fossil fuel extraction, production or distribution.

“We also don’t directly lend to oil, gas, or coal producers or projects, and we’ve embedded that in our policies,” Coates added by email. But a lot of Vancity’s loan portfolio lacks accurate emissions data, so the credit union is working to close those data gaps to understand “the deep and full view” of its progress.

“The full picture, I think, is really still coming into focus.”

More than 90% of Vancity’s lending is tied to residential and commercial buildings, and represents its “biggest climate opportunity.” The climate plan targets low-carbon and climate-resilient housing by financing energy-efficiency upgrades and electrification. Besides housing, Coates said growing the green economy is where Vancity wants to “lean into more,” by financing clean energy and helping small businesses lower emissions. This includes offering free climate coaching, discounted certification under BC Green Business, and preferred-rate lending for businesses investing in energy transitions, along with financing Indigenous-led projects like Innergex Renewable Energy’s initiative to reduce energy costs in Indigenous communities, and a 77-turbine wind farm on Six Nations of the Grand River land.

Lauryn Oates, a mother of two living in Vancouver’s Horseshoe Bay, retrofitted her 1970s duplex last year with better insulation and a heat pump to boost energy efficiency and reduce emissions. Vancity supplied a home renovation loan and household energy advice, and also financed planning so Oates could access government rebates.

“We found out that we didn’t have insulation in most of our roof, which partly explained why it was pretty cold in the winter,” Oates told The Mix, adding that blasting her furnace made little difference. “It’s much cozier now.”

Her family is also saving money and no longer using gas for heating, and she’s spoken with Vancity about helping revitalize her greywater system to irrigate her garden.

“It’s just amazing to have a dialogue with your credit union about this,” she said. “I wish municipalities and our government would incentivize us to do this.”

Vancity will continue reporting its progress on climate targets each year, Coates said. She hopes its climate plan inspires action from other financial institutions.

“It’s the time to stay committed,” she said, “to support our members and communities, to reduce emissions and to be more resilient in the changing climate that we’re in.”