Export Development
Canada (EDC) Financial
Services – Corporate
Social Responsibility
Requirements
Yolanda Banks
Senior Corporate Social Responsibility
Advisor
Presented to Canada-South Africa
Chamber of Business and MineAfrica
Seminar, Toronto
22 October 2009
Role of Export Development Canada (EDC)
Our mandate:
Created in 1944, EDC is a Crown
corporation that operates on commercial
principles. Our mandate is to provide trade
finance services to support Canadian
exporters and investors in some 200
markets, 130 of which are in developing
markets.
Role of EDC (cont’d) ** indicates products most used in Africa
Our Basic Products and Services:
Credit Insurance
Medium- and Long-Term Financing – including
Project Finance**
Bonding
Political Risk Insurance*** - including nonhonouring sovereign PRI
Equity
EDC Business Volumes – support for business in SubSaharan Africa
2009
(August YTD)
2008
2007
Contract
Insurance and
Bonding (CIB)
46,515,500
58,133,665
115,218,871
Financing (FIN)
165,843,283
53,927,613
355,580,739
Political Risk
Insurance (PRI)
564,211,411
517,350,443
1,011,017,082
Short-term Credit
Insurance (STI)
187,182,084
335,050,573
112,300,371
TOTAL
963,752,278
964,462,294
1,594,117,064
4
Recent Sub-Saharan Africa - Project Finance Deals
Ambatovy Nickel Mine, Sherritt International (Madagascar)
The Ambatovy nickel and cobalt mine in
Madagascar is expected to employ 1,900
Malagasy workers during
construction and 1,600 during operation.
Photos courtesy Sherritt International Corporation
Recent Sub-Saharan Africa - Project Finance Deals
Lumwana Copper Project, Equinox Minerals (Zambia)
As part of a Category A environmental review, members of EDC’s
Environmental Advisory Services group conducted a site visit of
the Lumwana Copper mine in Zambia in March 2006. Photo courtesy
Equinox Minerals
Recent Sub-Saharan Africa - Other Financing
2009
South Africa
Nedbank Ltd.
2009
Zambia
Développement
International Desjardins
Inc.
Financing
Sale of
Telecommunication
Equipment and Services
Financing Support of
foreign direct
investment
(FDI) $< 1 million
$100 - 250 million
in favour of Ericsson
Canada Inc. + other
exporters
2008
Tanzania
MIC Tanzania Limited
Financing
Telecommunications
equipment and related
services
$15-25 million
in favour of Ericsson
Canada Inc.
Recent Sub-Saharan Africa – Bank Guarantees
2008
Mauritania
Caisse Desjardins du
Marigot de Laval
2008
Ethiopia
Bank of Montreal
Guarantee for Sale of
various Canadian
goods and services
Guarantee for Sale of
engineering services
$ < 1 million
Flexexportation Inc.
$< 1 million
Hydrosult Inc.
2008
Congo (Kinshasa)
La Banque Royale du
Canada
Guarantee for Sale of
school manuals
$< 1 million
Beauchemin
International Inc.
EDC’s CSR Statement of Commitment
At EDC we commit to
carry out our mandate in
a socially responsible
manner consistent
with our corporate
values.
CSR @ EDC
Our Commitments
CSR is an operating principle at EDC
Reflects HOW we execute our mandate
How CSR Impacts EDC Customers
CSR @ EDC: key elements
1. Combating Corruption
2. Environmental Review
3. Transparency
4. Human Rights Analysis
1. What you need to know -- Combatting corruption
 Customer declarations
 Awareness-raising
 Documentary safeguards
 Due diligence
 Remedial actions
Concerted action: OECD
Export Credit Group
2. What you need to know -Environmental (and Social) Review
Environmental Policy
We assess the environmental impacts of all business
transactions
International Agreements: OECD + Equator Principles, (joining
the five largest Canadian banks -- representing 80%+ of the
world’s project finance market), EDC’s Environmental
Review Directive (ERD)
Use international standards, e.g. IFC’s Performance Standards
for Social and Environmental Sustainability, World Bank’s
Safeguard Policies
2. Environmental (and Social) Review (cont’d)
For Non-Project Transactions:
 Risk Assessment, including environmental, social
and reputational risk
 Using publicly available sources of environmental and
social information, e.g. SEC filings, compliance records,
CSR / Sustainability reports, indices (Dow Jones
Sustainability Index, Jantzi Social Index)
 Team of specialists: environmental / social and
reputation risk
Environmental (and Social) Review (cont’d)
For Projects (Due Diligence
Requirements):
 Documentation

Comprehensive Environment and
Social Impact Assessment (ESIA) -including Stakeholder Engagement
Strategies, social risks: labour &
working conditions

Environment and Social Management
Action Plan

Resettlement Action Plan

Biodiversity Action Plan
 Site visit by EDC Specialists
 Independent expert review
 EDC disclosure
 Environmental covenants
 Ongoing monitoring
3. What you need to know -- Transparency
Transparency
Disclosure of Information
●
Commitment to transparency:
“At EDC, we strive for balance between public
accountability and respect for customer
confidentiality”
●
Disclosure Policy that governs release of customer information
●
Federal Access to Information Act with protection of commercially
confidential information
Disclosure on
Category ‘A’ Projects: ex-ante and ex-post (before & after signing)
Disclosure on
Category ‘B’ Projects: ex post (after signing)
Disclosure on
All Financing Support: ex post (after signing)
4. What you need to know -- Human Rights Analysis
 Statement on Human
Rights, April 2008
“EDC values human rights and
promotes the protection of
internationally recognized
human rights, consistent with
the policies of the Government
of Canada.”
 Analysis conducted by
Political Risk Assessment
Department (PRAD)
 Project analysis: two-way
Source: EDC Code of
impacts -- on the project
Business Ethics
and of the project on the
human rights situation
 Information sources:
DFAIT reports, other
sources of intelligence
4. Human Rights Analysis (cont’d)
 What we are looking for from customers:
 Largely, although not exclusively, affects extractive companies
 Looking for:
– a heightened awareness of the issues, demonstrated sensitivity to how
human rights impacts the project and how the project impacts the local
human rights situation
– Reference to application of the Voluntary Principles on Human Rights and
Security -- part of EIA under IFC Performance Standard #4: Health,
Safety & Security
 Emerging best practice: Human Rights Impact Assessments
 We can be helpful to you
Conclusion
CSR = Risk Mitigant
Contact Information
International Business Development
Africa, Europe and Middle East
Patricia Bentolila, Chief Representative –
Africa and Middle East
Tel: (613) 598-3219 Fax: (613) 598-2503
Email: pbentolila@edc.ca
Anne-Marie Gagnon, Regional Manager –
Africa and Middle East
Maghreb and West Africa
Tel: (613) 597-8864 Fax: (613) 598-2503
Email: angagnon@edc.ca
Your Questions
For more information, consult:
Pour plus de renseignements, consultez:
www.edc.ca/csr
www.edc.ca/rse
ybanks@edc.ca
TEL: 613-598-2586