One of those strategies is to identify and select companies that are contributing to the energy transition or piloting sustainability projects. Here are a few examples our fund managers have singled out.
The Desjardins SocieTerra Environmental Bond Fund selected the Danish company Ørsted. Long associated with the fossil fuel industry, Ørsted has specialized in developing, building and operating onshore and offshore windfarms and bioenergy plants since 2018. Ørsted’s green bonds are currently held by the fund and are financing part of the Hornsea windfarm in the U.K., a project that will provide electricity to 2.7 million people and result in 2,845,000 tonnes of avoided CO2 emissions per year.
The Desjardins SocieTerra American Equity Fund invests in Trex, one of the largest plastic recycling companies in the U.S. The company, which manufactures and distributes composite wood decking made from recycled wood and plastic, has sustainability embedded in its sales model and corporate culture. The fund’s portfolio manager keeps an open line of communication with the company and encourages more transparent processes, which prompted the company’s first sustainability report.
The Desjardins SocieTerra Positive Change Fund invested in Moderna Therapeutics following the biotech company’s IPO. Moderna wants to develop protein therapies that use the body’s own cells to trigger natural healing processes. Their approach involves producing therapeutic proteins that can attack illnesses like cancer, infectious diseases like Zika and some heart diseases, and orphan diseases.
Algonquin Power & Utilities
The Desjardins SocieTerra Canadian Bond Fund has invested in the green bonds issued by this public utility. The bonds are financing a project to transition the supply of their electricity distribution network in Missouri from coal to wind power.
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