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Climate adaptation in real estate to avoid stranded assets. Charles Poulin | Published 20 minutes ago | Updated 19 minutes ago Climate adaptation of buildings is not just an ethical issue. It's a financial strategy that will ultimately prevent assets from being heavily devalued or even stranded. This is the message announced in the "White Paper on Real Estate," unveiled this morning by the firm Décarbone +, in partnership with Akonovia, La Caisse, Hydro-Québec, the National Bank, Montoni, the firm Lavery, the Petra Group, Desjardins, Galion, the Canada Green Building Council (CAGBC), the FTQ Solidarity Real Estate Fund, Sustainable Building Quebec, BOMA Quebec, Finance Montreal, CQ3E, and the Alliance for Building Decarbonization. The work, produced with a research report, a review of global literature, and the participation of over a hundred Quebec real estate industry stakeholders in 2025, introduces the concept of a "green" building - a sustainable structure characterized by measurable, verifiable, and evolving performance integrating energy efficiency, climate resilience, operating cost control, regulatory anticipation, and financial stability. These proactive assets can capture an additional value of 5%, while their "brown" counterparts may see their market value cut by 11% due to their energy and regulatory obsolescence. The White Paper also notes that an energy saving of $1 per square foot translates into an immediate increase of 4% to 5% in a building's market value. It is also noted that several financial institutions have started offering advantages on rates for "green" buildings (estimated in the work between 25 and 35 basis points), and that some insurers are already reacting to buildings that are not green with premium increases, eligibility for insurance, or reduced coverage. "What the White Paper advances is that how we manage risks has repercussions on decision-making, and therefore de facto on the value of buildings," explains Louis-Philip Bolduc, Vice-President of Akonovia. "Risks are evolving rapidly in the real estate sector, and green buildings are better positioned to face them." "Brown" Buildings Lagging Behind. If the authors of the work want to propel a change in behavior among Quebec real estate managers and owners, it's because they believe they have everything to gain, and not only when it comes to ethics. "Location, rental yield, or quality of amenities, long considered sufficient to explain an asset's performance, are no longer enough on their own to grasp its potential or risks," affirm the authors of the White Paper. "A building's ability to meet growing requirements for energy performance, climate resilience, and regulatory compliance becomes a structuring factor in its attractiveness, valuation, and financial stability," they add. Analyses and data presented by HEC Montréal thus demonstrate that "brown" buildings - those with low energy performance or high carbon intensity - show value discounts of up to 4.2% in areas exposed to climate risks. Similarly, these buildings exhibit reduced liquidity (-2.3% of transactions). "The most energy-intensive buildings risk seeing their book value diverge from their real economic value as future risks are better integrated into investment decisions," highlight the authors of the White Paper. "This White Paper transforms the perception of climate risk," says Philippe Hudon, President of Décarbone+ and Akonovia. "It's no longer just an ethical issue but a financial priority. We demonstrate that a sustainable building is a more resilient asset. An energy transition and adaptation to climate change reduce the brutal shock of having stranded assets." Regulatory Risks. It's not just the financial aspect at stake, note the authors of the work. Investors also want to protect themselves against regulatory risk, which is probably the most unpredictable. "Although the discount rate incorporates a general risk premium, it does not necessarily capture accelerated depreciation related to the regulatory obsolescence of a specific asset," indicates the book. "For an investor, the absence of prospective analysis amounts to ignoring certain future expenses (transition CAPEX), which leads to overestimating the current value of a poorly performing asset." Standardization. The work also calls for standardization of sustainability practices in the Quebec real estate industry. There is currently no common taxonomy. Several frameworks exist, note the authors, but are neither used systematically nor harmonized among themselves. Sector stakeholders have little truly comparable data on the actual energy performance of buildings, their exposure to physical risks, and their translation into financial variables, they add. "For the real estate market to truly shift toward sustainability, it should rely on objective data and a rigorous methodology," asserts Dominique Anglade, Executive Director, School of Leaders, and Associate Director at the IDEOS Hub, HEC Montréal. "The recommendations of the research report stem from a solid academic approach, yet grounded in field reality. We wanted this reference framework to move beyond intuition to a systematic measurement of extra-financial value."

SmartD Technologies secures $15M CAD financing round. * SmartD Technologies - (GLOBE NEWSWIRE) * Apr 2, 2026 MONTREAL, April 02, 2026 (GLOBE NEWSWIRE) - SmartD Technologies, a pioneer in Silicon Carbide (SiC)-based variable frequency drives, today announced the successful closing of its latest financing round totaling $15 million CAD. This round was co-led by existing strategic investor Hammond Power Solutions (HPS) and new institutional shareholder Desjardins Capital. All existing shareholders - including Hammond Power Solutions, Investissement Québec, Boreal, and SE Ventures - participated in the round, a clear signal of deep renewed confidence in SmartD's trajectory. The successful round provides the capital necessary to accelerate the company's roadmap and meet growing demand from industrial operators seeking simpler, more efficient, and more reliable motor-drive systems. Following a year of strong commercial momentum and growing adoption across sectors such as water infrastructure and data centers, SmartD is entering a new phase of growth, focused on scaling the deployment of its motor control technology across global industrial markets. SmartD's Clean Power VFD represents a paradigm shift in the industry. Built on a Silicon Carbide (SiC)-based architecture, it delivers clean sine-wave power to both the motor and the grid, eliminating the need for external harmonic and output filters, reducing energy losses, and extending the lifespan of industrial motors and electrical infrastructure. SmartD's Clean Power VFD is the first SiC-based drive delivering a true sine-wave output, enabling fully filterless drive installations. This architecture: * reduces capital expenditures by eliminating external filters, specialized cabling, and oversized electrical infrastructure; * reduces operating costs through improved system efficiency and lower harmonic losses; * extends the lifespan of motors and electrical infrastructure, even in demanding environments; * consistently meets IEEE 519 harmonic recommendations without additional mitigation equipment. This new generation of motor control architecture is particularly well suited for operators managing critical infrastructure, remote industrial sites, or retrofit projects where simplicity, reliability, and performance are essential. "We are excited to deepen our partnership with SmartD as they transition from innovation to scale," said Adrian Thomas, CEO of Hammond Power Solutions. "SmartD's ability to deliver clean sine-wave motor power without external filtering aligns with the growing demand for higher power quality, efficiency, and reliability in industrial applications." The addition of Desjardins Capital as a co-lead investor and new shareholder strengthens SmartD's institutional backing as the company expands its market presence. "SmartD is a strong example of a 'technology from here' with the potential to transform global industry standards," said Stéphane Pilette, Investment Director at Desjardins Capital. "By improving the energy efficiency of industrial motor systems, SmartD is contributing directly to the energy transition." "With this new investment, we are pleased to support SmartD's continued growth," said Bicha Ngo, President and CEO of Investissement Québec. "SmartD is developing concrete solutions that improve energy efficiency across industries and public infrastructure, contributing to a more sustainable economy." "This round is fundamentally about trust," said Simon Leblond, CEO and Co-founder of SmartD Technologies. "With the continued support of our investors, we are now focused on scaling our technology to meet growing demand from industrial and institutional clients." With this financing, SmartD will accelerate its product roadmap and expand commercial deployment across North America and international markets. About SmartD Technologies SmartD Technologies is a Canadian power electronics company specializing in high-efficiency variable frequency drives for motor control. By developing the first-ever SiC-based VFD that feeds motors with a real sine wave, SmartD enables filterless power drive systems that consistently meet IEEE519 harmonic recommendations. SmartD's solutions are designed to be simpler, smaller, and smarter for the most demanding industrial applications. About Hammond Power Solutions Hammond Power Solutions Inc. (HPS) enables electrification through its broad range of dry-type transformers, power quality products, and related magnetics. HPS is a leader in the electrical distribution industry with manufacturing plants across North America and India. About Desjardins Capital Desjardins Capital partners with entrepreneurs to create long-term economic value and contribute to Quebec's prosperity. With over 50 years of experience and $3B in assets under management, it supports the growth of businesses through a responsible and human-centered investment approach, leveraging the strength of the Desjardins network. About Investissement Québec Investissement Québec plays an active role in Quebec's economic development by supporting innovation, entrepreneurship, and business growth. It works alongside companies to accelerate investment, increase exports, and build a more sustainable and competitive economy.