Fondaction is a Quebec-based labour-sponsored investment fund founded in 1996 to support regional small and medium-sized enterprises through sustainable finance. Managing nearly $4 billion in net assets, the fund provides retirement savings plans for over 220,000 shareholders and offers a web portal for account access. Individuals can open registered savings accounts with tax incentives, while employers can implement group retirement solutions. The fund also offers business financing for entrepreneurs seeking growth capital. Services are offered primarily in French, with English options available on the website.
The organization specializes in impact investing, directing capital toward companies that deliver economic, social, and environmental benefits. Investment themes include biodiversity conservation, sustainable agriculture, healthy community development, and energy transition technologies. Since its inception, Fondaction has provided development capital to more than 1,000 Quebec businesses, often in collaboration with specialized partners. It prioritizes social equity by supporting women entrepreneurs and communities from different backgrounds, and engages in participatory governance with portfolio companies. Transparent reporting and active dialogue with management teams help monitor progress and reinforce responsible business practices.
Fondaction maintains a strong presence in clean technology and battery technology sectors through direct investments and specialist funds. Notable direct holdings include Sollum Technologies, which provides LED lighting solutions for greenhouses; Onym, a bioenergy company based on circular economy principles; and B&B Brake Pads, which develops brake systems for wind turbines. The fund joined a Series A financing round for Lithion Recycling, a lithium-ion battery recycling firm that recovers strategic metals from electric vehicle batteries, and backed CoPower, a web-based platform that finances clean energy and efficiency projects. Through specialist vehicles such as Blue Vision Capital and Active Impact, along with thematic funds like the Circular Economy Fund and the LCC Fund, Fondaction supports seed financing and climate innovation. It holds no shares in companies with fossil fuel reserves.
