2020 Climate-Related Disclosure (EDC Investments)

Summary

• EDC set a target to reduce its exposure to the most carbon-intensive sectors by 15 per cent over five years against a December 31, 2018 baseline, with exposure targeted to decline to $19.1 billion by 2023, a decrease of approximately $3.3 billion.p.20
• EDC attained its 2023 target ahead of schedule.p.20
• Of EDC's financing exposure of $79,423 million, 88 per cent was considered from a climate transition risk perspective, and 26 per cent of that portion was financing to the six most carbon intensive sectors.p.19
• In 2020 EDC provided $142 million in climate finance in developing countries, compared to $100 million in 2019.p.21
• EDC facilitated $4.55 billion of business in the cleantech sector and served 288 companies.p.21
• Total GHG emissions avoided by green bond assets were 5,666,504 tCO2e/year, a decrease of 6.5% from the previous year.p.22
• EDC's green bonds have financed nearly 30 transactions worth more than $2 billion; the first green bond was issued in 2014 and the fifth in 2019.p.22

Key insights

1. With more than 1,800 official supporters, the TCFD recommendations are emerging as the leading framework for climate-related disclosure; EDC announced its support in 2018.p.3
2. In 2020 EDC's Board Chair and President and CEO received five formal queries and EDC held three engagement sessions with civil society organizations.p.9
3. EDC conducted its inaugural climate risk scenario analysis in 2020 using the 2019 Bank of England climate change scenarios.p.14
4. EDC has identified six sectors that it considers to be of higher transition risk, starting with upstream and downstream oil and gas.p.16
5. EDC's financing portfolio represented 65 per cent of the overall portfolio in 2020.p.18
6. EDC implemented the Equator Principles 4 approach as of July 1, 2020.p.18
7. Green Bond 5 is estimated to avoid approximately 3.64 million metric tonnes of CO2-equivalent, corresponding to approximately 786,300 passenger vehicles off the road each year.p.23