ESG   |   Risk management   |   Sustainable finance   | 
 Agreements and memberships   |   Materiality   |   ESG metrics

ESG risk management

As the trade environment grows ever more complex, we know that strong risk management is key to business success and is a critical element of how we are living up to our ESG commitments.


 

ESG due diligence and our customers

Conducting business in a responsible manner is integral to EDC, and something we take seriously. We look for opportunities to enable sustainable and responsible business practices. Our due diligence process allows us to identify risk, work with companies to help mitigate that risk, and then actively monitor progress.

Our due diligence processes are aligned with international best practices and consider financial risks as well as risks related to business ethics, financial crime, the environment, human rights and other social factors. If we are uncomfortable with the risk profile of the transaction or if it does not meet our requirements, we do not proceed with providing support. 

If we identify specific issues during due diligence—whether at the start of the process or after the transaction is signed—we take steps to understand the issue and take appropriate action.

Learn more about our due diligence process 

Environmental and social review process

Consideration and assessment of environmental, human rights and other social factors are core to our review process. The Q&A below is designed to provide more information about our process

Environmental and Social Risk Management Framework

Trade involves environmental and social risk, making it critical that we have strong procedures to identify and manage them. Our Environmental and Social Risk Management (ESRM) framework guides our approach and is aligned to international agreements and standards, including the OECD Common Approaches, the UN Guiding Principles on Business and Human Rights, and the Equator Principles. It consists of:

  • Environmental and Social Risk Management Policy 
  • Environmental and Social Review Directive
  • Climate Change Policy 
  • Human Rights Policy 
  • Transparency and Disclosure Policy

ESRM policy review

Every three years, we invite our stakeholders to offer input and constructive feedback on the framework’s policies. The review process enables us to identify opportunities to better align the policies with our ESG practices, business activities, customer needs, and emerging environmental and social risk management best practices.

Learn more about our policy review

Business integrity

Business integrity is strongly linked to our risk management practices. With a mandate to help Canadian companies do business in some of the most challenging markets in the world, it’s critical for EDC to have strong policies, guidelines and controls related to business integrity and to live up to them in every instance. 

Some of the ways we support business integrity include:

  • financial crimes training for all employees
  • mandatory adherence to our Code of Conduct
  • screening customer information for risk indicators prior to providing business support 
  • conducting ongoing monitoring of our customers and transactions
  • implementation of our Financial Crime Policy

Learn more


 


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ESG   |   Risk management   |   Sustainable finance   | 
 Agreements and memberships   |   Materiality   |   ESG metrics