EDC releases its latest Integrated Annual Report detailing its 2023 results and ESG progress

Today, Export Development Canada (EDC) released its 2023 Integrated Annual Report detailing how the organization helped its customers navigate a challenging global economic environment, grew its support for Canada’s medium-sized companies, and expanded its presence in key Indo-Pacific markets while progressing on its commitments to a more sustainable and inclusive future. 

The report is complemented by additional environmental, social and governance (ESG) disclosures: 2023 Climate-Related Disclosure, 2023 Human Rights Report, 2023 Sustainable Bond Impact Report and 2023 Global Reporting Initiative Standards Context Index

"Canadian exporters remained resilient in the face of inflation, rising interest rates, ongoing global conflicts and slowing domestic demand,” said Mairead Lavery, EDC President and CEO. “Despite those difficulties, our customers showed determination to grow their businesses beyond our borders by tapping into the vast international growth opportunities the world has to offer—and EDC stood ready to support them.”

In 2023, EDC served more than 27,000 customers with financial and knowledge solutions, the vast majority of which were small and medium-sized businesses. EDC facilitated a total of $131.4 billion in exports, foreign investment and trade development activities, including $27.7 billion in business facilitated in emerging markets. Through its customers, EDC supported more than 520,000 domestic jobs and helped generate $94.4 billion of the national GDP. 

“While 2023 was challenging for many businesses, we focused our efforts on providing risk capacity, liquidity, and growth capital to help Canadian companies weather the uncertainty and seize growth opportunities,” said Executive Vice-President and Chief Financial Officer, Scott Moore.

In 2023, EDC recorded a net income of $450 million, down from $1.2 billion in 2022. This is largely attributed to an increase in the organization’s provision for credit losses as well as unrealized losses on its financial instruments carried at fair value. “Despite a difficult external environment, we generated $1.6 billion in net revenue in 2023, up from $1.5 billion in 2022, due to an increase in the average size of EDC's loan portfolio,” Moore added.

Propelling medium-sized companies

Throughout the year, EDC progressed on its 2030 Strategy notably by focusing on growing medium-segment companies, the engine of Canada’s trade growth. 

In addition to reaching more than 1,200 medium-sized customers, a 6% increase from 2022, EDC helped exporters receive quick access to financing from their lenders by enhancing its Trade Expansion Lending Program (TELP) in collaboration with financial institution partners. To further complement private sector investment, EDC expanded its Investment Matching Program from matching up to $5 million in capital in 2022 to matching up to $25 million in 2023. Additionally, medium segment customers continued to receive EDC’s full support, including its knowledge, connections and financing solutions to help them reduce risks and expand into new international markets.

Expanding in the Indo-Pacific

In 2023, EDC opened new representations in Jakarta, Indonesia, and Seoul, South Korea, and added staff across the Indo-Pacific, including at its Singapore branch. In 2024, EDC will open new representations in Ho Chi Minh City, Vietnam, Tokyo, Japan, and Manila, Philippines. 

“The Indo-Pacific region is booming with opportunities for Canadian businesses, mainly in infrastructure, cleantech, agri-food and advanced manufacturing, all sectors that match Canadian capabilities,” said Lavery. “Growing our international footprint in the region will help enable Canadian exporters to grow their business and reach new markets with EDC as a strategic partner.”             

Progressing on our commitment to a sustainable and inclusive future

In 2023, EDC launched its Sustainable Finance Framework, which outlines the organization’s approach for classifying direct financing transactions as sustainable. During COP28, EDC joined the UN-convened Net-Zero Export Credit Agencies Alliance (NZECA) as a founding member to help decarbonize global trade and facilitate joint action from public and private finance. 

A leading financier of Canada’s cleantech sector, EDC also achieved its cleantech target two years ahead of schedule by providing a record $12.2 billion in financing and insurance solutions for 444 companies in 2023—up from $8.8 billion and 392 companies in 2022.

Pursuing its commitment to diversity and inclusion, EDC continued to focus on its inclusive trade targets. By the end of 2023, EDC served 4,297 women-owned and-led businesses and facilitated $8.7 billion in business, exceeding its cumulative-based targets of $6 billion and 2,000 customers by 2023. Furthermore, EDC served 414 Indigenous customers, exceeding its target of 400, and facilitated $563 million in business, shy of its target of $650 million.

As part of its commitment to inclusive trade, EDC is also focused on diversifying its suppliers. In 2023, EDC increased its procurement with diverse suppliers by nearly 65% compared to 2022, including spending of $5.6 million across 58 contracts. 

For more information, read the 2023 Integrated Annual Report and the suite of supplemental ESG reports.

About EDC

Export Development Canada (EDC) is a financial Crown corporation dedicated to helping Canadian businesses make an impact at home and abroad. EDC has the financial products and knowledge Canadian companies need to confidently enter new markets, reduce financial risk and grow their business as they go from local to global. Together, EDC and Canadian companies are building a more prosperous, stronger and sustainable economy for all Canadians.

For more information and to learn how we can help your company, call us at 1-800-229-0575 or visit www.edc.ca.