Exploring Member Perspectives on ESG: Insights from Innovation Federal Credit Union’s 2024 Survey

In today’s financial landscape, Environmental, Social, and Governance (ESG) policies are playing a critical role in shaping how institutions interact with communities, manage risks, and build trust with stakeholders.

Recognizing this, Innovation Federal Credit Union (“Innovation”) conducted an extensive survey, working with Insightrix Research, to assess how members and the general public view the importance and performance of ESG policies. This research report, which was launched at the Canadian Credit Union Association’s 2024 Financial Forum, provides invaluable insights into how Innovation can align its sustainability efforts with the values of its members and adapt to emerging expectations within the financial services industry.

Purpose of the ESG Survey

Innovation initiated this survey to better understand the significance that members and non-members place on ESG principles and to evaluate its own performance in these areas. With ESG becoming a growing priority due to regulatory changes, evolving member expectations, and financial sector trends, the survey aimed to ensure that the credit union’s actions not only address community needs but also meet federal requirements like those outlined in B-15 guidelines. Additionally, the survey results are intended to inform Innovation’s strategy for balancing financial growth with sustainability, social equity, and responsible governance.

Key Findings Across the Three ESG Pillars

The survey, which gathered responses from over 1,800 participants, including members and non-members, revealed several key trends:

Environmental Pillar

A strong majority of respondents expressed support for environmental policies focused on sustainability. Among the key findings:

· 71% of respondents prioritized waste reduction, followed by 67% for energy efficiency and 65% for energy conservation.

· 33% of Innovation’s agriculture and business members reported either implementing or planning to implement environmental policies within their operations.

However, respondents were less enthusiastic about policies that limit financing for high-emission industries, likely reflecting the realities of local economic dependencies on industries like agriculture and energy.

Social Pillar

Members showed strong support for privacy, community engagement, and employee well-being:

· Confidentiality of personal information and equitable treatment of employees emerged as top priorities.

· 78% of respondents viewed support for local community initiatives as highly important.

The findings underscore the need for Innovation to maintain its commitment to privacy and social responsibility.

Governance Pillar

Governance policies received the most consistent support, with respondents highlighting the importance of trust, transparency, and effective risk management:

· 43% of respondents emphasized governance as a critical area for financial institutions.

· The top governance priorities identified included being a trustworthy organization, operating in members’ best interest, and maintaining strong cybersecurity practices.

This strong focus on governance highlights an opportunity for Innovation to reinforce member trust by integrating ESG practices into its overall governance framework.

A Strategic Path Forward

Innovation’s ESG survey offers a valuable framework for other financial institutions navigating similar challenges, emphasizing the importance of listening to stakeholders and aligning sustainability efforts with local realities. Read Innovation’s full ESG study online.