Responsible Investment ETFs

Adapting to change is in our DNA.Net-zero ETFs

Net Zero Emissions Pathway ETFs

The world now has a clear target in the fight against climate change: net-zero emissions by 2050.1 But markets are dragging their feet.

Our Net Zero Emissions Pathway exchange-traded funds (ETFs) are committed to reducing the financed emissions of their portfolios to converge toward the net zero target by 2050, following a defined trajectory.

 

Our NZE ETFs aim to progressively reduce financed emissions to achieve:

  • -50% by 2030 compared to 2020
  • Net zero emissions by 2050

How we achieve this:

  1. Allocation decisions: shifting capital from high-emission companies to low-emission companies.
  2. Gradual reduction in financed emissions, calculated using the most recent company data available.
  3. Protected diversification: varied sectors and geographic areas.
  4. Active and quantitative management to control risk.
  5. Targeted shareholder engagement: influencing certain companies in their emission reduction efforts.

Important : The reduction targets the ETF's total financed emissions, regardless of the internal policies of the companies held. Future decarbonization prospects are not taken into account.

What are financed emissions?

Financed emissions refer to greenhouse gas (GHG) emissions caused by holding a financial asset, such as company shares or bonds.

In other words, they are emissions linked to our investment choices.

The net-zero emissions pathway ETFs exclude companies that:

  • Profit from controversial weapons.
  • Profit from the production of tobacco or thermal coal.
  • Apply ESG practices deemed inadequate.

Note: The energy sector is not excluded from these ETFs.


Tracking the net-zero pathway

In line with the objectives of the RI Net-Zero Emissions pathway (NZE) ETFs, we track the reduction in financed emissions compared to 2020.

See our annual report for additional information.

Current progress

To reach -50% by 2030, the reduction must be gradual and coherent.

Illustration of the net-zero pathway and its targets.

Financed emission reduction level as at December 31, 2024.

As of December 31, 2024, all of our ETFs are at least -25% compared to 2020, confirming their alignment with the planned pathway.

Ticker Desjardins RI Net-Zero Emissions Pathway ETF Management fees2 Progress as at December 31, 2024 Emissions intensity (CO2/$M)
DRCU Desjardins RI Active Canadian Bond – Net-Zero Emissions Pathway ETF 0.35% -61.1% 31.7
DRMC Desjardins RI Canada – Net-Zero Emissions Pathway ETF 0.15% -31.4% 101.0
DRMU Desjardins RI USA – Net-Zero Emissions Pathway ETF 0.20% -41.2% 22.6
DRMD Desjardins RI Developed ex-USA ex-Canada – Net-Zero Emissions Pathway ETF 0.25% -30.5% 131.8
DRME Desjardins RI Emerging Markets – Net-Zero Emissions Pathway ETF 0.35% -30.9% 200.0
DRFC Desjardins RI Canada Multifactor – Net-Zero Emissions Pathway ETF 0.40% -32.2% 99.8
DRFU Desjardins RI USA Multifactor – Net-Zero Emissions Pathway ETF 0.40% -32.7% 25.9
DRFD Desjardins RI Developed ex-USA ex-Canada Multifactor – Net-Zero Emissions Pathway ETF 0.45% -33.4% 126.4
DRFE Desjardins RI Emerging Markets Multifactor – Net-Zero Emissions Pathway ETF 0.65% -33.6% 192.2
The Desjardins RI net-zero emissions pathway ETFs above represent $1.07B in market value, for which 100% of data was available (equity and corporate bonds), with an average PCAF quality score of 2. Source: Desjardins Global Asset Management. The estimated result as at December 31, 2024, represents the change in the ETF’s financed emissions compared to the financed emissions of its universe of securities in 2020, calculated using the Partnership for Carbon Accounting Financials (PCAF) methodology. GHG emissions of companies in the portfolio are provided by MSCI or, when not available, are calculated using industry average intensities. Enterprise value is provided by Bloomberg or, when not available, MSCI.

ETF name Management style Ticker Management fees2
Desjardins RI Global Multifactor – Fossil Fuel Reserves Free ETF Multifactor DRFG 0.50% (reduced!)

An ETF free from fossil fuel reserves

The Desjardins RI Global Multifactor – Fossil Fuel Reserves Free ETF is an opportunity to invest in companies with no exposure to the traditional energy sector (coal, oil and gas) to reduce the risks associated with the energy transition.

How? By excluding companies that:

  • Own fossil fuel reserves.
  • Are categorized in the fossil fuel sector.
  • Earn a significant share of revenues from fossil fuels.
  • Produce a significant share of electricity from thermal coal.

It also excludes companies that:

  • Lag behind the competition in their ESG practices.
  • Profit from selling controversial weapons or from tobacco production or manufacturing.
  • Are involved in critical controversies.

Our team3

Desjardins Global Asset Management Inc. (DGAM) is one of the largest portfolio managers in Canada.

  • $118.76B+ in assets under management
  •  100 investment professionals
  •  20+ETFs

Want to speak to a regional sales director about our investment solutions?

  1. 1. "More than 70 countries, including the biggest polluters – China, the United States, and the European Union – have set a net-zero target, covering about 76% of global emissions. More than 3,000 businesses and financial institutions are working with the Science-Based Targets Initiative to reduce their emissions in line with climate science." Source: https://www.un.org/en/climatechange/net-zero-coalition
  2. 2. The management fees are calculated based on a percentage per annum of the average daily net asset value of the ETF. As at September 15, 2024.
  3. 3. As at December 31, 2024.

The Desjardins Exchange Traded Funds are not guaranteed, their value fluctuates frequently and their past performance is not indicative of their future returns. Commissions, management fees and expenses all may be associated with an investment in exchange traded funds. Please read the prospectus before investing. Desjardins Global Asset Management Inc. is the manager and portfolio manager of the Desjardins Exchange Traded Funds. The Desjardins Exchange Traded Funds are offered by registered dealers.

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