EDC sets science-based climate targets and sustainable finance objectives

New measures part of EDC’s plan to reach net zero emissions by 2050

Export Development Canada (EDC) is announcing two new science-based, sector-specific climate targets for its business portfolio, as well as several sustainable financing objectives.

Since committing to net zero by 2050 in 2021, EDC has built on its plan through a science-based approach to setting its 2030 sector targets, starting with two sectors representing a significant share of its financing portfolio and associated emissions: airlines and upstream oil and gas. The Crown corporation has also refined its approach to significantly increase investments in sustainable finance. 

At the centre of EDC’s net zero plan and its 2030 corporate strategy are environmental, social and governance principles, which are integral to the long-term success of EDC, its customers and the Canadian economy.

“We are resolutely committed to net zero and our interim targets are a vital step towards achieving real and tangible progress. Meeting our targets can only be achieved in partnership with Canadian companies. This means meeting companies where they are, working to understand their business, and encouraging and supporting them in their own climate journeys,” said Mairead Lavery, EDC’s President and CEO. “The market is embracing, even demanding, strong ESG action. This isn’t just a way to mitigate risks. It’s a competitive advantage for Canadian businesses in an increasingly climate-conscious world.”

EDC is in the early stages of its net zero plan and remains committed to working with its customers to transition to a more sustainable and equitable future economy. EDC will adjust and evolve its approach as the organization continues building the momentum necessary to achieve its mid- and long-terms goals, and to ensure alignment with the Government of Canada’s climate goals.

2030 science-based climate targets for airlines and upstream oil and gas sectors 

The 2030 targets are science-based, specific to a given sector, and aligned with the Paris Agreement Capital Transition Assessment (PACTA) for Banks methodology. They define the transition required in each sector by 2030 in order to achieve net zero by 2050.

• Airlines: achieve a 37% reduction in emissions per passenger kilometre from our airlines financing portfolio by 2030, against a 2020 baseline.
• Upstream oil and gas: achieve a 15% reduction in our financing portfolio related to upstream oil and gas production by 2030, and a 3% shift in the composition of that production from oil to gas against a 2020 baseline.

These interim targets build on the carbon reduction targets EDC has been setting, refining and surpassing since 2019.

“We know we must move quickly to drive further action for the benefit of all Canadians, today and tomorrow. The challenge is, the road to net zero is being built at the same time as we’re moving along it,” said Justine Hendricks, EDC’s Chief Corporate Sustainability Officer. “The way we are balancing this urgency and uncertainty is by ensuring our strategies are scientifically rigorous and are delivering tangible results. Our interim targets are the roadmap, but it is the work we are doing with industry and our customers to listen, understand and address their needs that will get us to our destination. It is this partnership approach that will ultimately get the Canadian economy to a more sustainable future.”

Investing in sustainable finance 

While helping its customers through emissions reduction and transition, EDC will also focus on providing the financing necessary to support a sustainable economy. Since committing to net zero by 2050, EDC has grown its experience and knowledge in the sustainable finance space. As a result, EDC has shifted from planning to set a single numerical target to a set of approaches and sub-targets to drive greater impact. 

EDC will continue to grow its product offerings related to sustainable finance—such as the recently announced BMO-EDC Sustainable Finance Guarantee. The organization will also ramp up existing initiatives, such as its Inclusive Trade Investment Program and support for cleantech, which reached $6.3 billion in 2021, making EDC one of the largest financiers of cleantech in Canada. The organization is still in the early stages of building its sustainable finance program and will continue to add to these near-term objectives and targets:

• Cleantech sector support: $10 billion in business facilitated in 2025
• EDC-BMO Sustainable Finance Guarantee: $500 million in transition financing loans by 2024 
• Inclusive trade:
  • Women-owned/led: $6 billion in business facilitated by 2023
  • Indigenous-owned/led: $650 million in business facilitated by 2023

“As we gain experience based on real-world performance and strengthen our knowledge of customer needs, we will continue to grow our offerings, set further sustainable finance targets and evolve our approaches as the sustainable finance spaces continues to progress,” said Hendricks. “Underpinning our entire net zero plan is a commitment to transparency and we will continue to proactively share updates on our progress, plans and performance.”

For more detailed information about EDC’s net zero plan and its targets, please read our Backgrounder: EDC Net Zero 2050: 2022 Update.

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Backgrounder: EDC Net Zero 2050: 2022 Update

TCFD-aligned EDC 2021 Climate-Related Disclosure