In February, Export Development Canada’s (EDC) Board of Directors approved the new Human Rights Policy, Environmental and Social Review Directive, and Environmental and Social Risk Management Policy. All three result from the ongoing review of the Environmental and Social Risk Management (ESRM) policy framework launched in early 2018. A Public Response Paper was developed to summarizes the feedback we received from our stakeholders during the review process and includes EDC’s response. EDC revealed its new Climate Change Policy in January.
This framework is regularly reviewed to ensure it remains relevant, rigorous and reflects industry best practices. Stakeholder consultation and engagement is an important aspect of these reviews, which also consider changes to EDC’s international obligations such as the Organization for Economic Cooperation and Development (OECD’s) Common Approaches on Environmental and Social Due Diligence and the Equator Principles.
EDC began the ongoing review of its ESRM policy framework in early 2018.
The policies included in the review are:
The first four are now complete and the Disclosure Policy review is still underway.
For the review of the framework, submissions from interested parties were accepted until September 7, 2018. A chart summarizing feedback received regarding the above policies is available on the EDC site, and the organization remains open to ongoing feedback.
The Environmental and Social Risk Management Policy is the overarching policy document of EDC’s ESRM policy framework. As such, it outlines EDC’s general commitments and approach to environmental and social risk management and articulates the relationship between this policy and the other elements of the framework.
As part of the current review, the Environmental and Social Risk Management Policy was updated to:
EDC’s Environmental and Social Review Directive (ESRD)—a requirement of the federal Export Development Act—sets out how EDC determines what type of transaction is considered related to a project and, if it is a project-related transaction, the nature of and approach for the environmental and social review.
As a result of the current review, EDC simplified the scope of application of the ESRD to ensure clarity and consistency in the application of the directive, in particular as it pertains to project-related corporate loans. These changes are in response to feedback received from our stakeholders and allow EDC to further align its approach to project review with the most recent versions of the OECD Common Approaches and the Equator Principles, which have themselves undergone updates since the last time EDC reviewed the ESRD.