Hello.
Mr. Chair, members of the committee, thank you for inviting me to speak to you today.
The Fonds de solidarité FTQ was created in response to the economic crisis of the early 1980s. Today, it is the biggest workers' fund in Canada, with net assets of $15.6 billion. More than 700,000 Quebeckers are Fonds shareholders, which is equivalent to one in six workers. For every dollar in federal tax credits granted to our shareholders, we invest $8.85 to support economic development and jobs.
The Fonds' investments primarily go to support companies that generate economic spinoffs both in Quebec and elsewhere in Canada. The Fonds is active in every sector of the economy, including mining and transportation electrification. Our investment portfolio also includes many companies in the value chains associated with the mining sector, as well as the activity sector seeking to decarbonize our economy. The Fonds has been investing in the mining sector for more than 25 years, irrespective of economic cycles. We are recognized for our expertise and our network of partners. The Fonds is investing in the mining sector, from exploration to processing, and in public and private companies linked to this sector.
With regard to critical minerals, we believe that governments have a major role to play. Governments are able to take on a higher risk than the Fonds can bear on its own. The development and processing of these minerals may require the involvement of strategic partners. Without targeted support from both the federal and provincial governments, it could be very hard to attract partners that have the technical expertise to develop these strategic projects.
Transportation electrification marks a vital turning point in balancing supply and demand for these metals. On top of that, there are also issues related to energy production and management. For instance, the auto industry is concerned about long-term access to the inputs needed to manufacture the batteries required for fleet electrification, and it is also concerned about the availability of charging infrastructure.
As a corporate citizen, the Fonds has the will and the duty to contribute to efforts to decarbonize transportation and the economy, in addition to taking an active part in the just energy transition through responsible investment strategies and social engagement.
The Fonds' strategy is to invest, and to support its partners, in the promotion of clean technologies or technologies that foster the adoption of processes capable of reducing greenhouse gas emissions. Processing our resources locally is one way to start achieving that objective. Creating an integrated value chain that goes from development to processing, as well as promoting environmentally friendly product design, recycling and the development of the circular economy, are essential for decarbonizing our economy while supporting the economic and social development of Quebec and Canada.
The Fonds has a significant impact on the economy as a whole. Year after year, in good times and bad, the Fonds accounts for a substantial proportion of the risk capital and development capital investments made in Quebec. The Fonds also bases its contributions on objectives that have real social impact by combining returns with inclusive long-term growth. In an economy where investors too often focus purely on financial returns, the Fonds has opted instead to develop responsible investment practices. The decision to invest in a company is based on an analysis of how that investment would impact its employees, the company itself and the communities where it operates.
In its ongoing quest for positive impact, the Fonds is now hoping to contribute to the most pressing priorities of the modern age by helping companies weather the monumental human, technology and energy transitions that define our era.
In conclusion, what we hope you will take away from our testimony today is that the Fonds is, above all, a major player, a responsible investor and an influential investor. The Fonds represents a vast network of partners and speaks for SMEs. The Fonds is also actively involved in the energy transition, the decarbonization of the economy, and the circular economy. In other words, the Fonds is a partner of choice. It is at the forefront of the circular economy and the decarbonization of the economy.
Thank you for your attention.