EDC announces two new science-based climate targets for its business portfolio

OTTAWA — 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 is building on its plan, 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 try and increase investments in sustainable finance.

“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.”

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.

“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.”