Legal and Financial Publications
Financed Emissions are greenhouse gas emissions associated with financing, investing and lending activities. Financial institutions measure their Financed Emissions by taking ownership of the issuer’s emissions in order to manage risk and identify
opportunities associated with greenhouse gas emissions.
The methodology used follows the standards of the Partnership for Carbon Accounting Financials (PCAF), a global partnership of financial institutions that is setting a standard for greenhouse gas (GHG) accounting and reporting in the financial sector. GHG emissions can be direct or indirect, and are distinguished according to their source over 3 different scopes:
• Scope 1: the organization's direct emissions or those under its control (e.g. emissions linked to its industrial processes).
• Scope 2: indirect emissions from the production of purchased or acquired electricity.
• Scope 3: indirect emissions occurring in the company's value chain, both upstream of the production of the material/product/service and downstream during the distribution, storage or use of the material/product/service. Scope 3 integration is being progressively made according to the PCAF methodology.
The estimated result on September 30, 2023 represents the change in the ETF's financed emissions relative to the financed emissions of its appropriate security universe in the base year which is 2020. Total emissions financed are the sum of emissions financed by each company in the portfolio. A company's financed emissions are the product of its allocation factor and the annual emissions declared by the company. The allocation factor is obtained by calculating the ratio between the value of the units held by the ETF and the value of the company financed. The value of the units held by the ETF is defined on the basis of the market value for listed shares or the book value of the debt for bonds. The company value ("EVIC") is the sum of the market capitalization of common and preferred shares at the end of the last fiscal year, the book value of total debt, minority interests and cash.
Reported emissions are collected via the MSCI data provider. If data is not available, the sector average intensity is used. This is the average intensity per Canadian EVIC dollar by GICS sub-sector, calculated from the emissions data available in the MSCI ACWI IMI index. Company values are obtained from Bloomberg. If data are not available, MSCI is used.
No representations or warranties, express or implied, are made by Desjardins in connection with the exactitude, quality or completeness of such information and data. Should these differ from official carbon intensity data, the latter will prevail.
Growth of $10,000 chart invested in the indicated Desjardins ETF, is used only to illustrate the effects of the compound growth rate and is not intended to reflect or to present future values of the investment fund or returns on investment in the investment fund.
As at June 30, 2023
On September 15, 2023, the ETF’s investment objectives were amended. As a result, the objectives now provide for a gradual reduction of the portfolio’s financed emissions and enhanced management of the active risk.
Desjardins Exchange Traded Funds (ETF) are not guaranteed, their value fluctuates frequently, and their past performance is not indicative of their future returns. Commissions, management fees and expenses may all be associated with mutual fund investments. The indicated rates of return are the historical annual compounded total returns, including changes in securities value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Please read the prospectus before investing. The Desjardins ETF are offered by registered dealers.
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