In revealing its new Climate Change Policy today, Export Development Canada (EDC) took another significant step in contributing to the global transition to a lower carbon, sustainable economy.
The new policy commits EDC to measuring, monitoring and disclosing climate-related risks and opportunities, integrating climate change considerations into business decisions, and encouraging partners to do the same. In so doing, EDC joins a growing number of industry leaders acting to understand, address and disclose business risks and opportunities related to climate change.
“At EDC, we recognize we can contribute to creating a sustainable economy through the policies we set and the choices we make, while honouring our mandate,” said Catherine Decarie, Senior Vice-President of Corporate Affairs. “This revised policy clarifies the principles that guide our approach, articulates our explicit climate-related commitments and ensures EDC is keeping pace with leading players in the global financial services sector.”
The policy is a result of consultations with external stakeholders, customers and experts, as part of the Environmental and Social Risk Management (ESRM) Policy Review announced in May 2018. EDC regularly reviews this framework to ensure it remains relevant, reflects current practice and keeps pace with industry best practices. This new climate change policy strengthens EDC’s position on thermal coal and commits the corporation to begin setting targets to reduce the carbon intensity of its lending portfolio.
As Canada’s export credit agency, EDC has a mandate to support and develop Canada’s export trade and its capacity to engage in that trade, as well as respond to international business opportunities. EDC supports the Government of Canada’s efforts to address the climate change challenge, including its commitment to the 2015 Paris Agreement.
EDC’s large and diverse portfolio includes companies operating in carbon-intense sectors that are important to the Canadian economy alongside businesses on the cutting edge of clean technologies. EDC believes that companies across this spectrum will need to play a vital role in the transition to a lower carbon and climate-resilient economy.
EDC’s commitments in the new Climate Change policy include:
- No new financing for coal-fired power plants, thermal coal mines or dedicated thermal coal-related infrastructure—regardless of geographic location.
- Measuring, monitoring and, commencing in 2020, setting targets to reduce the carbon intensity of EDC’s lending portfolio.
- Increasing transparency around EDC’s climate-related risks and opportunities, including working toward implementing the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD).
- Integrating climate-related considerations, such as carbon intensity, into EDC’s risk assessment processes.
Already, EDC is Canada’s largest financier of clean technology companies. In 2017, EDC provided $1.5 billion in support for clean technology companies—a record year surpassed in 2018. Last year, EDC became the first export credit agency to announce its support for the TCFD recommendations, signaling its commitment to help advance the availability, consistency and comparability of climate-related information.
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