Desjardins OKs pipeline lending

QUEBEC CREDIT UNION LIFTS MORATORIUM

A moratorium on loans for energy pipeline projects has been lifted, Desjardins Group said Wednesday, as it vowed to consider environmental, social and governance practices of clients in all future lending decisions.

The decision in July to temporarily stop pipeline loans had been applauded by environmental groups and First Nations opposed to oilsands development who urged the Quebec credit union to make the freeze permanent.

They also asked Desjardins to withdraw from pipeline lending commitments such as its $145-million stake in a loan package for Kinder Morgan Canada Ltd.’s Trans Mountain pipeline expansion project to bring more oilsands crude from Alberta to the West Coast.

But CEO Guy Cormier said in an interview Wednesday the credit union will continue to live up to its agreements with energy companies after extensive consultations with supporters and opponents of the sector over the past four months.

“It means that the moratorium we put on in July now is replaced by the application of the ESG (environmental, social and governance) criteria, not only for the energy sector but all the different business sectors we invest in,” he said.

“We want to work with the sector to support the transition to clean energy.”

The decision to adopt new criteria for business decisions was welcomed by Patrick Bonin, climate and energy campaigner at Greenpeace Canada, but he said it is disappointing that Desjardins is not reassessing its existing loan portfolio.