Climate Risk Disclosure 2025
Table of Contents 1. Introduction................................................................................................... 5 2. Governance...................................................................................................6 • Board Oversight 6 • Management’s Role 6 • Integration into Existing Governance 7 3. Strategy............................................................................................................7 • General Perspective 7 • Climate Risks 7 - Physical Risks 7 - Transition Risks 7 • Opportunities 7 4. Risk Management...................................................................................... 8 • General Framework 8 • Identification and Assessment 8 • Management and Monitoring 8 5. Metrics and Indicators............................................................................9 • Greenhouse Gas Emissions 9 • Targets 10 Forward-Looking Statement....................................................................10 Appendix 1 – Glossary of Key Technical Terms..............................11
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1. Introduction PURPOSE OF THE REPORT This disclosure describes the approach of UNI Financial Cooperation (“UNI”) with respect to the identification, assessment, management and monitoring of climate-related risks for the fiscal year ending December 31, 2025. UNI recognizes that climate change may influence the financial and non-financial risks to which financial institutions are exposed. As with other emerging risks, UNI continues the gradual development of its capabilities to improve its understanding of these issues and their integration into its existing governance and risk management processes.
SCOPE This disclosure covers the activities of UNI Financial Cooperation and reflects the practices, processes and governance structures in effect as of December 31, 2025.
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2. Governance BOARD OVERSIGHT The Board of Directors exercises overall oversight of the risks to which UNI is exposed, including emerging risks that may result from changes in economic, environmental, technological, or regulatory factors. The Board Risk Management Committee supports the Board in carrying out its responsibilities regarding oversight of the organization’s overall risk profile. As part of its regular responsibilities, the Committee periodically receives information on emerging risks that may affect UNI’s financial position, operations, or strategy.
MANAGEMENT’S ROLE Management is responsible for identifying, assessing, monitoring, and managing risks in accordance with the organization’s risk management framework. The Internal Risk Management Committee (IRMC), which acts as a management subcommittee, is the primary risk oversight body across the organization. The IRMC: • • • •
Reviews the overall risk profile; Monitors developments in emerging risks; Recommends appropriate mitigation measures when necessary; Ensures consistency of risk management practices throughout the organization.
Climate change-related issues are considered within this overall risk oversight framework rather than through a separate structure dedicated exclusively to climate risk.
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INTEGRATION INTO EXISTING GOVERNANCE UNI favours an integrated approach in which climate change considerations are examined within existing governance, risk management, strategic planning, and financial management structures. This approach helps ensure the efficient use of resources while maintaining consistent oversight of all risks to which the organization is exposed.
3. Strategy GENERAL PERSPECTIVE UNI recognizes that climate change may have impacts on individuals, businesses, communities, and the financial sector. Potential impacts may materialize over different time horizons and affect various economic sectors differently. Given the nature of its activities, UNI considers that its exposure to climaterelated risks arises primarily from: • Credit portfolios; • Operational activities; • Changes in the regulatory environment; • Economic impacts on members and clients.
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CLIMATE RISKS UNI generally considers two categories of climate-related risks. Physical Risks Physical risks arise from weather-related or environmental events that may affect assets, economic activities, or infrastructure. These risks may be: • Acute (storms, floods, wildfires); • Chronic (gradual changes in climate conditions). Transition Risks Transition risks arise from the shift toward a lower-carbon economy and may include: • • • •
Regulatory changes; Technological changes; Market changes; Changes in consumer or investor preferences.
OPPORTUNITIES Like other financial institutions, UNI also observes that evolving member and market needs may, over time, support the development of new products, services, or financial solutions tailored to emerging needs. At this stage, UNI considers that an approach integrated into existing frameworks remains proportionate to its risk profile, while continuing to evaluate the relevance of a distinct climate strategy or a specific transition plan.
4. Risk Management
Within this context, climate change is considered one of the environmental factors that may influence the organization’s risk profile.
GENERAL FRAMEWORK
UNI continues to develop its understanding of climate-related risks and monitors the evolution of practices within the Canadian financial industry.
Climate-related risks are considered within UNI’s risk management framework. Under this framework, risks are: • • • • •
Identified; Assessed; Monitored; Reported; Managed according to their relative significance.
UNI considers climate risk to be a crosscutting factor that may influence several existing risk categories, including: • • • • •
Credit risk; Operational risk; Strategic risk; Reputational risk; Regulatory risk.
IDENTIFICATION AND ASSESSMENT UNI’s risk management practices include periodic risk identification and assessment activities that consider: • • • •
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Economic conditions; Industry trends; Regulatory changes; Emerging risks.
MANAGEMENT AND MONITORING Climate risk oversight is carried out primarily through: • • • • •
The risk management framework; Portfolio monitoring processes; Strategic planning exercises; Stress-testing exercises; Capital and liquidity management exercises; • Emerging risk monitoring mechanisms. As industry data, methodologies, and practices evolve, UNI may progressively enhance its analytical and monitoring capabilities when deemed appropriate.
5. Metrics and Indicators GREENHOUSE GAS EMISSIONS UNI continues to assess the data, tools, and methodologies that may be required to support the evolution of its future climate disclosures. Given the current level of maturity of available data and applicable regulatory requirements, UNI does not currently publish an inventory of financed emissions associated with its portfolios. However, UNI continues to monitor developments in: • Regulatory expectations; • Industry standards; • Recognized measurement methodologies. As of December 31, 2025, UNI measured its Scope 1 and Scope 2 greenhouse gas emissions for the twelve-month period of its fiscal year. The following table presents the results: GHG Emissions Scope 1 Emissions
901.7
Scope 2 Emissions
2,601.3
Total Scope 1 and Scope 2 Emissions
3,503.0
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TARGETS UNI has not established quantitative climate targets or a net-zero commitment. The organization considers that an adequate understanding of exposures, methodologies, and data remains an important prerequisite before the possible establishment of quantitative objectives. Accordingly, UNI remains focused on: • The gradual development of its capabilities; • Improving its understanding of risks; • Maintaining a robust governance and risk management framework.
FORWARD-LOOKING STATEMENT This disclosure contains certain statements concerning future events or developments. These statements are based on information available at the time of preparation, as well as various assumptions and uncertainties. Actual results may differ from those expressed or implied in these statements due, among other things, to changes in the economic, regulatory, environmental, or operational environment. UNI assumes no obligation to update these forward-looking statements except as required by applicable law or regulation.
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Appendix 1—Glossary of Key Technical Terms The purpose of this glossary is to facilitate understanding of the principal technical terms used in this climate disclosure. The definitions have been adapted to UNI’s context and should be interpreted from the perspective of prudent, proportionate, and progressive management of climate-related risks. Terms
Proposed Definition for UNI
Acute Physical Risk
Risk associated with individual or extreme events such as storms, floods, wildfires, ice storms, hurricanes, or other severe weather phenomena.
Climate Scenario Analysis
A forward-looking exercise designed to assess how different climate-related scenarios could affect the business model, risk profile, portfolios, capital, liquidity, or operations of a financial institution.
Climate Risk
Financial or non-financial risk arising from climate change or from the transition to a lower-carbon economy. It includes both physical risks and transition risks.
Climate Target
A quantitative or qualitative climate-related objective, such as a GHG emissions reduction target, a carbon-intensity target, or a net-zero commitment.
Chronic Physical Risk
Risk associated with gradual and persistent changes in climate conditions, such as sea-level rise, temperature changes, coastal erosion, or changes in precipitation patterns.
Cross-Cutting Risk Factor
A factor that may influence several existing risk categories rather than necessarily constituting a standalone risk category. Climate-related risks may affect credit risk, operational risk, strategic risk, reputational risk, and compliance risk.
Financed Emissions
GHG emissions associated with a financial institution's financing, lending, or investment activities. These emissions are generally more complex to measure because they depend on data provided by clients, counterparties, or financed portfolios.
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Terms
Proposed Definition for UNI
Forward-Looking Statement
Information relating to future expectations, projections, intentions, assumptions, or developments. This type of statement involves uncertainty and may differ from actual results.
GHG
Greenhouse gases. GHGs include carbon dioxide, methane, nitrous oxide, and certain industrial gases. They contribute to global warming when they accumulate in the atmosphere.
GHG Emissions
Greenhouse gas emissions, generally expressed in tonnes of CO₂ equivalent, produced directly or indirectly by an organization's activities or by the activities it finances.
Guideline B-15
OSFI's Guideline on Climate Risk Management. It sets out prudential expectations applicable to federally regulated financial institutions regarding governance, risk management, and climate-related financial disclosure.
Materiality
The relative importance of a risk, exposure, or piece of information to the organization and its stakeholders. Information is generally considered material when it can influence the assessment of risk profile, financial condition, or management decisions.
OSFI
Office of the Superintendent of Financial Institutions, the federal agency responsible for prudential regulation and supervision of federally regulated financial institutions in Canada.
Physical Risk
Risk arising from extreme climate events or gradual changes in climate conditions that may result in financial, operational, or economic impacts for members, clients, collateral, infrastructure, or the activities of an institution.
Proportional Approach
A principle whereby governance, risk management, and disclosure practices should be adapted to the size, complexity, risk profile, materiality of exposures, and maturity level of the organization.
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Terms
Proposed Definition for UNI
Scope 1 Emissions
Direct emissions from sources owned or controlled by the organization, such as fuel combustion, certain vehicles, or fugitive emissions associated with air conditioning or refrigeration systems.
Scope 2 Emissions
Indirect emissions associated with the generation of purchased and consumed energy, including purchased electricity, heat, or steam.
Scope 3 Emissions
Other indirect emissions arising from the organization's value chain, either upstream or downstream. For a financial institution, this category may notably include financed emissions.
Stress Testing
An exercise designed to assess the resilience of an institution under severe but plausible conditions. In a climate-related context, it may be used to evaluate the potential effects of physical or transition shocks on operations, portfolios, capital, or liquidity.
Transition Risk
Risk related to the adjustment toward a lower-carbon economy. It may arise from regulatory, technological, economic, market, or consumer and investor preference changes.
Tonnes of CO2₂ Equivalent
A unit of measurement that allows emissions from different greenhouse gases to be compared on a common basis according to their global warming potential relative to carbon dioxide.
Note : The definitions presented in this glossary are intended for general understanding and internal consistency within the report. They do not replace official definitions that may be provided in applicable laws, regulations, guidelines, or standards.
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