Sustainable finance
Enabling a sustainable, equitable economy
Evolving our trade ecosystem to function in a way that uses our natural resources wisely, reduces greenhouse gas emissions and makes our world more equitable requires significant investment. But it’s an investment worth making and one we're here to support.
It’s also a big opportunity. It’s one of the ways Canadian businesses can innovate to achieve longer-term business growth and become more competitive on the global stage.
Part of our past and future
Sustainable finance has been a key part of our business for many years. We were the first Canadian financial institution to issue a green bond in 2014 and the first export credit agency to commit to net zero emissions by 2050. Today, we play an important role in advancing a trade ecosystem that helps reduce Canada’s trade gap. At the same time, we support the responsible use of global natural resources, help deliver positive environmental impacts for climate and nature and contribute to more equitable outcomes for people.
Our approach and solutions
Our approach revolves around our customers. Sustainable objectives are big and complex, meaning there is no one-size-fits-all solution. We work closely with our customers to develop solutions that contribute to driving results when it comes to reducing carbon emissions and creating a stronger, more equitable economy.
Our sustainable finance framework outlines our criteria for classifying our business as sustainable. Developed with the support of leading experts and with reference to industry guidelines, the framework enables the monitoring, tracking and reporting of sustainable business activities toward our objectives.
The framework applies to transactions in each of EDC’s business streams, including financing (corporate lending, structured and project finance and mid-market lending), loan guarantees, equity and investments.
Bonds are a key tool for financing sustainable activities and businesses. Our sustainable finance framework sets out the criteria for what our bonds can support. It includes:
- Green bonds to support initiatives related to renewable energy, energy efficiency, pollution and waste management, natural resources, clean transport and green buildings, among others.
- Social bonds to support affordable infrastructure, access to essential health and education services, food and nutrition security and the economic inclusion and participation of Indigenous Peoples and other equity-seeking groups.
- Sustainable bonds to finance green and social projects.
- Transition bonds for activities that significantly reduce greenhouse gas emissions.
Historically, underrepresented groups face barriers accessing traditional or mainstream financial and knowledge solutions. We recognize the need to do more to support these businesses as they look to grow their companies internationally. Our Inclusive Trade Investments Program provides equity capital to diverse Canadian exporting businesses owned by people who identify as women, Indigenous, Black, or racialized, 2SLGBTQI+, and/or those living with disabilities.
Transparency and reporting
It’s important that our stakeholders understand how we think about sustainable finance and how we track our progress. We are committed to accurately measuring and reporting on our initiatives in alignment with international best practices. We provide this information in our integrated annual reports, as well as our annual sustainable bond impact reports.
Policies and reports
Explore our policies, reports and other reference materials related to sustainable finance at EDC.
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