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Equator Principles

ESG - Environmental, social and governance

On this page:

  • EDC’s implementation of the Equator Principles
  • Dedicated resources
  • Integration of Environmental and Social Review
  • Equator Principles transactions reaching financial close during 2024

In October 2007, EDC joined a growing list of international financial institutions committed to the Equator Principles, a financial industry benchmark for the determination, assessment and management of social and environmental risk in project financing.

Prior to adopting the Equator Principles, and since 2003, EDC has also been applying the Organisation of Economic Co-Operation and Development’s Common Approaches on the Environment, which binds export credit agencies to specific environmental and social review practices. EDC views the Equator Principles as a complement to the Common Approaches, and enables EDC to bridge the leading practices of both ECAs and commercial financial institutions. EDC’s other commitments to assessing projects is cemented in its Environmental and Social Risk Management Policy Framework and the EDC Environmental and Social Review Directive (ESRD). The ESRD sets out the process by which EDC will assess the environmental and social impacts (and mitigation measures) of a project, and is a legally-binding requirement for EDC under the laws of Canada.

The Equator Principles, the Common Approaches, and the ESRD are aligned in the requirement for projects to meet the elements of the same international standards, namely the International Finance Corporation’s Performance Standards on Social and Environmental Sustainability and sector-specific Environmental, Health, and Safety Guidelines. By aligning these requirements, clients of ECAs and commercial financial institutions benefit from meeting the same standards when undertaking environmental and social impact assessments.

Further detail on EDC’s project review process is described in Understanding EDC’s Project Review Process.

EDC’s implementation of the Equator Principles

Dedicated resources

EDC has a dedicated team of environmental and social risk specialists, tasked with implementing EDC’s environmental and social review processes and procedures, including conducting reviews under the Equator Principles. The ESG Advisory team consists of environmental and social advisors, reporting to the ESG Advisory Directors and the Vice-President of ESG Advisory. With different backgrounds including environmental science, biology, engineering, business, and international development, the team draws on a breadth of experience and knowledge relevant to the environmental and social risk assessment field.

Integration of Environmental and Social Review

Projects are examined by ESG Advisory for potential adverse environmental and social impacts.

Initially, EDC has various forums in place including team alignment meetings, huddles, and a triaging committee, that help identify deal related issues. At this point in time, ESG Advisory then looks for areas that may not be aligned with our internal policies on human rights, environmental and social responsibility. Depending on the degree to which projects measure up to the internationally recognized standards noted above, we will either engage project sponsors in further dialogue, discuss ways to deal with any serious issues, or, if gaps cannot be addressed, we decline the project outright.

Should we proceed to the next stage, EDC takes an in-depth look at the project design and evaluates the Environmental and Social Impact Assessment provided by the project developer/sponsor. Information requirements and the depth of EDC’s review are linked to the project categorization: Category A, B or C. In some cases, a lender’s group, of which EDC is a member, hires a number of specialized advisors to assist with a more detailed review. An independent environmental and social expert will provide unbiased input about the project’s potential impacts, adequacy of the mitigation measures and the project’s ability to meet international standards. Transactions supporting projects are reviewed by senior leadership during the due diligence process prior to signing of the loan.

ESG Advisory also ensures the project developer/sponsor formulates an environmental and social action plan. The plan will describe and prioritize time-limited commitments to complete any additional measures that the project will satisfy EDC and that it has fully met the requirements of the IFC Performance Standards. If the outcome of this stage is favourable, the environmental and social review must be authorized by EDC's President. After the loan agreement is signed, EDC continues to monitor the project for compliance.

For a list of transactions that underwent a review under the Equator Principles, see table below.​

Equator Principles transactions reaching financial close during 2024*

Eight Project Finance transactions (PF) and four Project-Related Corporate Loan (PRCL) subject to the Equator Principles reached financial close during 2024.

​Project Name ​Project Description Sector Region Project in Designated Country Project Finance (PF) or Project-Related Corporate Loan (PRCL) Independent Review Performed International Standards Applied
​Category A Projects​
Minera Centinela Expansion Project Expansion of existing copper and  molybdenum mining activities at the Minera Centinela copper property Mining Americas (Chile) Yes PF Yes IFC Performance Standards, Host Country Standards
Cedar LNG Floating LNG liquefaction facility to be located in the Douglas Channel, British Columbia, and associated on-shore infrastructure O&G Americas (Canada) Yes PF Yes IFC Performance Standards, Host Country Standards
Mardie Salt & Potash Project Development and construction of solar evaporation ponds, salt and potash
production facilities and associated infrastructure
Mining Asia pacific
 (Australia)
Yes PF Yes IFC Performance Standards, Host Country Standards
Category B Projects​
High Coast Project Development, construction and operation of a 553MW portfolio of four onshore wind farms (Knäsjöberget, Sörlidberget, Vitberget and Storhöjden) and associated infrastructure Power Europe (Sweden) Yes PF Yes Host Country Standards
IFC Performance Standards
Narva Facility Financing of the construction of a rare earth magnet production facility Manufacturing Europe
(Estonia)
Yes PRCL Yes IFC Performance Standards, Host Country Standards
Limekiln Project Rubicon is a 108MW onshore wind project near Caithness, in the north of the Scottish Highlands Power Europe
(UK)
Yes PF Yes Host Country Standards
Coastal GasLink
– Cedar LNG Link
Expansion of Coastal GasLink Pipeline in order to link and supply the Cedar LNG Project O&G Americas (Canada) Yes PF Yes Host Country Standards
IFC Performance Standards
Bungama BESS
Stage 1
Development of a 150 MW/300MWh battery energy storage system in South Australia Power Asia Pacific
(Australia)
Yes PF Yes Host Country Standards
NextStar Energy Project Construction of a greenfield EV battery production facility in Ontario Canada Power Americas (Canada) Yes PRCL Yes Host Country Standards
IFC Performance Standards
Category C Projects​
Melbourne Renewable Energy Hub Stage (MREH) A3 Construction and operation of a 1.2GW/2.4GWh Battery Energy Storage System Power Asia Pacific (Australia) Yes PF No N/A
Avenex Coating Technologies Procurement of new proprietary manufacturing equipment and extrusion lines (to be used in the client’s brownfield expansions in India, Vietnam, and the United Arab Emirates) Other Asia Pacific
(India, Vietnam, UAE)
No PRCL No N/A
Immobilier QCMW S.E.C phase 3 HDDC construction Construction of phase 3 of QScale’s high-density data center Infrastructure Americas
(Canada)
Yes PRCL No N/A
  Project Finance Project-Related Corporate Loans
Sector ​Category A ​Category B Category C ​Category A Category B Category C
Power 0 3 1 0 1 0
Oil & Gas 1 1 0 0 0 0
Infrastructure 0 0 0 0 0 1
Mining 2 0 0 0 1 0
Other 0 0 0 0 0 1
Totals 3 4 1 0 2 2
​Region            
Americas 2 1 0 0 1 1
​Asia Pacific 1 1 1 0 0 1
Europe 0 2 0 0 1 0
​​Totals 3 4 1 0 2 2
​Country Designation            
​Designated Country 3 4 1 0 2 1
​Non-Designated Country 0 0 0 0 0 1
Totals 3 4 1 0 2 2
​Independent Review Performed            
Yes 3 4 0 0 2 0
No 0 0 1 0 0 2
Totals 3 4 1 0 2 2


 

More about ESG at EDC:

Business integrity
We view business ethics as fundamental to successful business practices. Operating ethically means, at a minimum, conducting our affairs in accordance with the letter and spirit of the applicable laws of the countries in which we do business.
Our workplace
We are committed to providing a climate that stimulates and supports employee performance and development.
Our communities
We demonstrate our commitment to strengthening the communities in which we live and work through various educational and volunteering initiatives. Our community investment strategy focuses on three priorities : international business and trade education for youth, our partnership with CARE Canada and charitable contributions of time and financial resources on diverse social causes.
Date modified: 2025-06-19

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