Title: Export Development Canada (EDC) Financial Services – Corporate Social Responsibility Requirements
1Export Development Canada (EDC) Financial
Services Corporate Social Responsibility
Requirements
- Yolanda BanksSenior Corporate Social
Responsibility Advisor - Presented to Canada-South Africa Chamber of
Business and MineAfrica Seminar, Toronto 22
October 2009
2Role 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.
3Role of EDC (contd) 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
non-honouring sovereign PRI - Equity
4EDC Business Volumes support for business in
Sub-Saharan Africa
5Recent 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
6Recent Sub-Saharan Africa - Project Finance Deals
Lumwana Copper Project, Equinox Minerals (Zambia)
As part of a Category A environmental review,
members of EDCs Environmental Advisory Services
group conducted a site visit of the Lumwana
Copper mine in Zambia in March 2006. Photo
courtesy Equinox Minerals
7Recent Sub-Saharan Africa - Other Financing
- 2009South Africa Nedbank Ltd.Financing Sale
of Telecommunication Equipment and Services100
- 250 million in favour of Ericsson Canada Inc.
other exporters
2009Zambia Développement International
Desjardins Inc.Financing Support of foreign
direct investment(FDI) lt 1 million
- 2008TanzaniaMIC Tanzania Limited
FinancingTelecommunications equipment and
related services15-25 millionin favour of
Ericsson Canada Inc.
8Recent Sub-Saharan Africa Bank Guarantees
- 2008MauritaniaCaisse Desjardins du Marigot de
LavalGuarantee for Sale of various Canadian
goods and services lt 1 millionFlexexportation
Inc.
- 2008EthiopiaBank of MontrealGuarantee for
Sale of engineering services lt 1
millionHydrosult Inc.
- 2008Congo (Kinshasa)La Banque Royale du
CanadaGuarantee for Sale of school manualslt
1 millionBeauchemin International Inc.
9EDCs CSR Statement of Commitment
At EDC we commit to carry out our mandate in a
socially responsible manner consistent with our
corporate values.
10Our Commitments
CSR _at_ EDC
- CSR is an operating principle at EDC
- Reflects HOW we execute our mandate
11CSR _at_ EDC key elements
How CSR Impacts EDC Customers
- Combating Corruption
- Environmental Review
- Transparency
- Human Rights Analysis
121. What you need to know -- Combatting
corruption
- Customer declarations
- Awareness-raising
- Documentary safeguards
- Due diligence
- Remedial actions
Concerted action OECD Export Credit Group
132. 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 worlds
project finance market), EDCs Environmental
Review Directive (ERD) - Use international standards, e.g. IFCs
Performance Standards for Social and
Environmental Sustainability, World Banks
Safeguard Policies
142. Environmental (and Social) Review (contd)
- 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
15Environmental (and Social) Review (contd)
- 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
163. 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
17Disclosure on Category A Projects ex-ante
and ex-post (before after signing)
18Disclosure on Category B Projects ex post
(after signing)
19Disclosure on All Financing Support ex post
(after signing)
204. What you need to know -- Human Rights
Analysis
- Statement on Human Rights, April 2008
- Analysis conducted by Political Risk Assessment
Department (PRAD) - Project analysis two-way impacts -- on the
project and of the project on the human rights
situation - Information sources DFAIT reports, other sources
of intelligence
- EDC values human rights and promotes the
protection of internationally recognized human
rights, consistent with the policies of the
Government of Canada. - Source EDC Code of Business Ethics
214. Human Rights Analysis (contd)
- 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
22Conclusion
23Contact Information
- International Business Development
- Africa, Europe and Middle East
- Patricia Bentolila, Chief Representative Africa
and Middle EastTel (613) 598-3219 Fax (613)
598-2503 Email pbentolila_at_edc.ca - Anne-Marie Gagnon, Regional Manager Africa and
Middle EastMaghreb and West AfricaTel (613)
597-8864 Fax (613) 598-2503 Email
angagnon_at_edc.ca
24Your Questions
- For more information, consult
- Pour plus de renseignements, consultez
- www.edc.ca/csr
- www.edc.ca/rse
- ybanks_at_edc.caTEL 613-598-2586
-