"Canada’s heritage conservation sector has long recognized and championed the principle that “the greenest building is the one that already exists” as it capitalizes on the embodied carbon and environmental impacts latent in existing buildings. But how do we bring this crucial concept into the property management and development mainstream and make reuse a viable option, rather than automatic demolition for new construction? A critical step will be to create innovative new financial instruments that simultaneously facilitate this carbon transition and better position existing buildings as compelling investment opportunities combined with the technical know-how on decarbonization strategies.
This presentation will explore an ESG loan instrument which links together the decarbonization and social impact goals for a heritage building, the Complexe du Canal Lachine, in Montreal, Quebec.
The National Bank acted as sustainability structuring agent in the co-design of this Net-Zero Transition Loan to property owner Gestion Immobilière Quo Vadis, with a social key performance indicator, aligned with the Canada Green Building Council’s Zero Carbon Building Standard certification process. The transaction combined elements of traditional sustainable financing with emerging behaviour-based components to create financial incentives tied to a holistic sustainability performance profile for Complexe du Canal Lachine.
The loan proceeds will be earmarked for investment to decarbonize Complexe du Canal Lachine to obtain a net-zero greenhouse gas emissions profile. Projects will include energy efficient HVAC (heating, ventilation, and air conditioning), and a systems-based net zero energy systems co-developed with research carried out by Concordia University’s Next Generation Cities Institute. GI Quo Vadis is committed to pre-defined threshold of leasing exposure to select minority groups such as artists, green SMEs, the self-employed, and B-Corp certified businesses, in return for advantageous financing terms and conditions as it has pioneered diversity and inclusion policies for over two decades.
This presentation, combining both banking and property development perspectives, will unpack the lessons this pathbreaking loan instrument that holds lessons for the development and decarbonization of heritage buildings across Canada, and reflect on opportunities for expanding its potential utility, reach, and impact."
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