Trends are evolving, and Quebecers are increasingly seeking information about how products are manufactured. In other words, consumers are moving toward responsible consumption—favoring products from companies that emphasize employee conditions, community well-being, the value created for society, and sound environmental practices. In this context, to remain competitive, manufacturers must now integrate eco-responsible approaches into their business practices. To support these efforts, companies can access financial assistance known as sustainable financing. But what are lenders’ requirements and eligibility criteria?
What is Sustainable Financing?
Whether in Quebec or elsewhere in the world, carbon neutrality has become a major objective in efforts to preserve our planet. In recent years, regional economic development organizations—through the Government of Quebec—the Caisse de dépôt et placement du Québec (CDPQ), the Fonds de solidarité FTQ, Fondaction CSN, Investissement Québec (IQ), and Canadian financial institutions have adopted sustainable financing practices to help companies integrate environmental, social, and governance (ESG) considerations into their financial decisions (1).
These organizations and institutions provide financial support, but they also aim to equip and guide companies so they can structure their business practices in line with society’s sustainable development objectives. The contribution of industry to this model corresponds to corporate social responsibility (CSR).
Eligibility Criteria for Sustainable Financing
Sustainable financing covers several areas, including environmental factors (raw material management, recyclability, energy management, and greenhouse gas (GHG) emissions management), financial considerations (purchasing practices, supply chains, and local development), and broader social issues (working conditions, skills development, and health and safety).
Adopting such an approach therefore requires companies to commit to a long-term vision. This involves conducting a thorough assessment of their current eco-responsible performance and developing a strategic plan that defines objectives and priorities for action. Companies must also implement a continuous improvement process to monitor progress, with results compiled in a detailed report. These elements are reviewed by the funding organization, which then decides whether to support the project.
Potential Sustainable Development Projects for the Plastics and Composites Industries
To contribute to carbon neutrality goals, companies operating in the plastics and composites sectors can orient their responsible practices in several directions, such as (2):
- installing renewable energy sources (photovoltaic systems, geothermal energy, hydrogen);
- implementing energy-efficient technologies (LED lighting, heating, ventilation and air-conditioning systems, smart meters, and energy performance monitoring equipment);
- developing mechanical recycling processes and infrastructure for plastics;
- using recycled plastic in product manufacturing;
- adopting polymers that can be recycled;
- manufacturing sustainable packaging.
These examples are provided for guidance and represent only part of a broader strategic plan for sustainable financing.
The Fonds Écoleader Supports Polymos in Implementing Eco-Responsible Practices
Since its creation in 2019, the Fonds Écoleader has supported and financed Quebec companies in integrating eco-responsible business practices and clean technologies. The fund—now administered by the Fonds d’action québécois pour le développement durable (FAQDD)—can cover up to 75% of the costs associated with implementing a sustainable development strategy.
Ms. St-Laurent Samuel, Deputy Executive Director of the Fonds d’action québécois pour le développement durable (FAQDD), notes that the most popular initiatives focus on energy efficiency, greenhouse gas (GHG) management, general sustainable development strategies, and residual materials management, regardless of the type of business. Among the most active sectors, manufacturing stands out first, followed by retail, real estate, and even agriculture.
“We can consider these initiatives to be successful,” she explains. “We have supported projects in the plastics sector, thermoforming, and various polymer applications. For example, we assisted the company Polymos, located in Montérégie, which manufactures expanded plastic products. They carried out two projects with experts, including Comité 21 Québec and the Groupe Conseil Carbone.”
“The Fonds Écoleader helped them conduct a GHG inventory and develop an action plan for the company’s operations, such as transportation and emissions related to production inputs. The plan included measures, indicators to monitor, targets to achieve, and timelines.”
This provided the company with a roadmap outlining potential options, anticipated costs, equipment replacement needs, and return on investment. Polymos could therefore plan its actions over time, particularly in relation to four major sources of GHG emissions.
The most significant factor involved production inputs, including aspects such as life-cycle analysis of materials and the manufacturing process.
The second largest source of emissions was energy use, particularly natural gas used to generate steam during manufacturing—a factor over which the company could exert some control according to the analysis. Transportation emissions related to the delivery of raw materials and finished products to customers were also taken into account.
The Benefits of Corporate Social Responsibility
To meet new societal expectations and maintain market share, companies must now integrate sustainable development objectives into their business models. While financial support exists to assist organizations in this transition, adopting a CSR strategy also offers several additional benefits.
These include improved attraction and retention of talent, greater profitability and productivity, stronger customer loyalty, enhanced innovation, continuous learning, increased social acceptability, and, of course, positive environmental impacts.
By Fanny Charreteur
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