Fonds de solidarité FTQ

In 2018, the Fonds de Solidarité FTQ, a labour-affiliated development capital fund founded in 1983, announced a plan to integrate the just transition into its investment and community engagement strategies. With C$15.6 billion in assets under management (AUM), it is one of Quebec’s main sources of debt capital for SMEs.

The strategy originated from discussions in 2015, when the Fédération des travailleurs et travailleuses du Québec (FTQ) began examining the implications of climate change for workers and communities. The Fonds positioned itself as a developmental investor, reflecting its close links with Quebec’s workforce and small business sector.

The Just Energy Transition Plan sought to incorporate decarbonisation and resilience into existing investment practices. Four action areas were prioritised: measuring and reducing the carbon footprint of its securities and SME portfolio; supporting Quebecois firms in transitioning to a zero-carbon economy with a focus on decent jobs; reorienting the portfolio towards clean energy, energy efficiency, and emissions-reducing technologies; and assuming a provincial leadership role through engagement with stakeholders.

Implementation steps included establishing a Sustainable Development Committee and a Transition Support Group focused on energy, human, and technological components of SME development. Measures taken included divestment from coal and hydrocarbon extraction, ESG integration in public equities index investments, and direct engagement with SME investees on decarbonisation and energy efficiency.

The Fonds also undertook extensive stakeholder outreach to understand challenges facing workers and communities. In 2018, it co-sponsored a meeting involving public sector, labour, business, and community groups. In 2019, it held meetings in its 16 regional offices to gather input directly from worker beneficiaries and ensure they supported strategic commitments.

Ircantec

Ircantec began integrating the just transition by aligning investment policies with institutional priorities. Since 2017, the social implications of the ecological and energy transition have been one of its three main focus areas, in line with the Paris Agreement. In June 2019, Ircantec’s SRI charter was revised to explicitly incorporate the just transition.

The just transition is now included in Requests for Proposals to asset managers and is a standing agenda item for the fund’s board of trustees. Its investment policies prioritise sustainable real estate, such as intermediate housing and accommodation for elderly dependent people, while meeting environmental goals on emissions and resource efficiency. Ircantec also invests in upgrading existing assets to enhance both environmental quality and tenant wellbeing.

The fund has committed resources to resilience measures, including support for retired people displaced by natural disasters. It has also used shareholder engagement to advance the agenda. In 2018, Ircantec presented its shareholder engagement policy at a PRI roundtable in San Francisco. It has promoted the inclusion of just transition indicators within Climate Action 100+ benchmarks and engaged investee companies in energy-intensive sectors on related issues.

Recognising the need to address national contexts, Ircantec has participated in a French working group on the just transition since May 2019. This forum, involving companies and trade unions, seeks to define how the just transition should be applied in France.

This report illustrates how Fonds de Solidarité FTQ and Ircantec have begun operationalising the just transition by combining environmental goals with social priorities. Both investors emphasise stakeholder engagement, decarbonisation strategies, and alignment of investment policies with social outcomes, offering practical examples of how finance can address the social dimensions of the low-carbon transition.