VanCity

The Vancouver City Savings Credit Union, or VanCity, is Canada's largest credit union, with $7.3 billion in assets, over 271,000 members, and 39 branches in British Columbia. VanCity owns Citizens Bank of Canada, serving members across the country by telephone, ATM, and the Internet.

Founded in 1945, VanCity prides itself on innovation of new products and technology. Its stated mission is "to be a democratic, ethical, and innovative provider of financial services to our members". It is one of the 50 or so companies that have signed up to the CERES Principles of sustainable business

VanCity says it is driven by a triple bottom line - social, environmental, and financial - and it has a long history of community investing.

'In a thriving organization such as ours, there's more than one bottom line to be achieved,' says Dave Mowat, CEO.

'Every healthy and evolving organization must constantly adapt,' says Mowat. 'That's the nature of the business environment.'

Greg McDade, chairman of the board of directors, says the VanCity competitive advantage 'results from a clear understanding of its values, the ability to think creatively, and the skills to manage flexibly'. He adds: 'We want to be innovative yet efficient, high-tech and high-touch.'

VanCity believes corporate social responsibility gives it an advantage over its competition.  'We believe that our commitment to outstanding service and corporate social responsibility sets us apart from other financial institutions,' says Mowat. In order to continuously improve amid rapid change to the financial services industry, 'VanCity must continue to chart its course based on a long-standing commitment to social and environmental performance'.

To keep itself on track during the turbulent times ahead, VanCity has produced a Statement of Values and Commitments, and submits itself to an independent social audit so that its actions and decisions are accountable to its members, employees, colleagues, and communities. The social audit process is based on an international process standard (AccountAbility 1000) developed in the UK.

VanCity says it wants to "serve as a catalyst for self-reliance and economic well-being" as well as delivering a strong financial return.

One way VanCity provides services to the community is by providing low-income members with access to products and services. In 2000, $25 million worth of loans was provided for business. Unlike traditional loans, they are not based solely on businesses' collateral, but on the owner's character, credit history, and ability to pay. This service gives entrepreneurs who have few assets the resources they need, which would not be available using mainstream lending procedures.

VanCity has also formed a partnership with Western Economic Diversification to fund loans to business entrepreneurs who have disabilities. This start-up capital is designed to promote economic self-reliance.

In 2001, VanCity acquired a majority stake in Real Assets, the first full-service portfolio management company that focuses entirely on socially responsible investments. Real Assets evaluates companies based on their track record in areas such as business practices, community care, diversity, employee relations, environment, and human rights.

VanCity prides itself on its ability to respond to its customers. Members are given regular opportunities to express their opinions, and have repeatedly requested that they want VanCity to be more than just a financial institution. 'They want it to make a difference in terms of the social, economic, and environmental well-being of our communities,' says the company's annual report for 2000.

In response, VanCity has created the $1 million VanCity Award - a grant to support bold and innovative projects in the community. The award builds on other schemes and funding programmes which recognize and support individuals and organizations who are making a difference.

In 2000, $2.1 million went back to the community through a number of programmes, including a wide variety of grants supporting non-profit organizations in the areas of environmental sustainability, economic self-reliance and social justice.

In March 2001, 13 non-profit organizations submitted proposals for the award, and seven were shortlisted. The final four nominations, decided by a ballot of members, were:

• 'Better Environmentally Sound Transportation' (BEST);
• Green Thumb Theatre for Young People;
• United Community Services Co-operative, a network of community organizations, for the construction or renovation of a leadership centre;
• West Coast Environmental Law, an environmental policymaking organization that plans to transform a historic Vancouver building into a state-of-the-art 'green building'.

The award went to BEST for its 25-kilometre leisure path connecting communities throughout the Lower Mainland. The scheme offers benefits for commuters, the environment, disadvantaged youth, businesses and conservationists.

VanCity has also set up the 'VanCity Community Foundation', which provides funding and technical assistance to community partners. There are now more than 30 such funds.  Additionally, the Foundation plays a leading role in a new programme designed to help low-income people help themselves.

VanCity Enterprises is the credit union's socially responsible real estate arm, which currently has several housing projects under way in the Lower Mainland. One such scheme is working with the Dr Peter AIDS Foundation to develop 24 housing units for residents living with HIV and AIDS. Three more projects are planned, delivering a total of 172 new homes.

VanCity is also working with Ecotrust Canada to finance conservation projects. Its Conservation Financing programme provides credit for enterprises promoting conservation or implementing environmental solutions.

VanCity believes its commitment to sustainability explains why the Globe & Mail Report on Business magazine has voted it one of the 35 best companies to work for in Canada.

Contact: Sara Holland

Telephone: 1-604 877-7680