Management of environmental and social risks

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Management of environmental and social risks

Business credit

Desjardins conducts an environmental risk analysis when assessing business credit risk, which involves looking at the risks associated with operating a business, i.e.:

  • its business segment
  • its ability to manage environmental risks
  • its operating characteristics

If the information collected from the company is insufficient, Desjardins verifies its environmental compliance. In some cases, a Phase 1 environmental site assessment is required before the company can obtain financing. The purpose of this assessment is essentially to identify real or potential contamination risk indicators on a site.

For the agricultural sector, environmental compliance is verified by obtaining:

  • an agro-environmental fertilization plan (for businesses in Quebec)
  • a nutrient management strategy or plan (for businesses in Ontario)
Property and casualty insurance

All products or projects in our property and casualty insurance sector deemed to have high-impact social or environmental risks are subject to a risk analysis.

In addition, our actuarial services sector includes climate-change scenarios in its annual dynamic capital-adequacy testing to evaluate the impact of a number of climatic events.