EDC releases its latest Integrated Annual
Report detailing its 2023 results and ESG progress
OTTAWA,
ON, May 22, 2024 /CNW/ - Today, Export
Development Canada (EDC) released its 2023 Integrated Annual Report
detailing how the organization helped its customers navigate a
challenging global economic environment, grew its support for
Canada's medium-sized companies,
and expanded its presence in key Indo-Pacific markets while
progressing on its commitments to a more sustainable and inclusive
future.
The report is complemented by additional environmental, social
and governance (ESG) disclosures: 2023 Climate-Related Disclosure,
2023 Human Rights Report, 2023 Sustainable Bond Impact
Report and 2023 Global Reporting Initiative Standards Context
Index.
"Canadian exporters remained resilient in the face of inflation,
rising interest rates, ongoing global conflicts and slowing
domestic demand," said Mairead
Lavery, EDC President and CEO. "Despite those difficulties,
our customers showed determination to grow their businesses beyond
our borders by tapping into the vast international growth
opportunities the world has to offer—and EDC stood ready to support
them."
In 2023, EDC served more than 27,000 customers with financial
and knowledge solutions, the vast majority of which were small and
medium-sized businesses. EDC facilitated a total of $131.4 billion in exports, foreign investment and
trade development activities, including $27.7 billion in business facilitated in emerging
markets. Through its customers, EDC supported more than 520,000
domestic jobs and helped generate $94.4
billion of the national GDP.
"While 2023 was challenging for many businesses, we focused our
efforts on providing risk capacity, liquidity, and growth capital
to help Canadian companies weather the uncertainty and seize growth
opportunities," said Executive Vice-President and Chief Financial
Officer, Scott Moore.
In 2023, EDC recorded a net income of $450 million, down from $1.2 billion in 2022. This is largely attributed
to an increase in the organization's provision for credit losses as
well as unrealized losses on its financial instruments carried at
fair value. "Despite a difficult external environment, we generated
$1.6 billion in net revenue in 2023,
up from $1.5 billion in 2022, due to
an increase in the average size of EDC's loan portfolio," Moore
added.
Propelling medium-sized
companies
Throughout the year, EDC progressed on its 2030
Strategy notably by focusing on growing medium-segment
companies, the engine of Canada's
trade growth.
In addition to reaching more than 1,200 medium-sized customers,
a 6% increase from 2022, EDC helped exporters receive quick access
to financing from their lenders by enhancing its Trade Expansion
Lending Program (TELP) in collaboration with financial institution
partners. To further complement private sector investment, EDC
expanded its Investment Matching Program from matching up to
$5 million in capital in 2022 to
matching up to $25 million in 2023.
Additionally, medium segment customers continued to receive EDC's
full support, including its knowledge, connections and financing
solutions to help them reduce risks and expand into new
international markets.
Expanding in the
Indo-Pacific
In 2023, EDC opened new representations in Jakarta, Indonesia, and Seoul, South Korea, and added staff across the
Indo-Pacific, including at its Singapore branch. In 2024, EDC will open new
representations in Ho Chi Minh
City, Vietnam, Tokyo, Japan, and Manila, Philippines.
"The Indo-Pacific region is booming with opportunities for
Canadian businesses, mainly in infrastructure, cleantech, agri-food
and advanced manufacturing, all sectors that match Canadian
capabilities," said Lavery. "Growing our international footprint in
the region will help enable Canadian exporters to grow their
business and reach new markets with EDC as a strategic
partner."
Progressing on our commitment to a
sustainable and inclusive future
In 2023, EDC launched its Sustainable Finance Framework, which
outlines the organization's approach for classifying direct
financing transactions as sustainable. During COP28, EDC joined the UN-convened Net-Zero Export
Credit Agencies Alliance (NZECA) as a founding member to help
decarbonize global trade and facilitate joint action from public
and private finance.
A leading financier of Canada's
cleantech sector, EDC also achieved its cleantech target two years
ahead of schedule by providing a record $12.2 billion in financing for 444 companies in
2023—up from $8.8 billion and
392 companies in 2022.
Pursuing its commitment to diversity and inclusion, EDC
continued to focus on its inclusive trade targets. By the end of
2023, EDC served 4,297 women-owned and-led businesses and
facilitated $8.7 billion in business,
exceeding its cumulative-based targets of $6
billion and 2,000 customers by 2023. Furthermore, EDC served
414 Indigenous customers, exceeding its target of 400, and
facilitated $563 million in business,
shy of its target of $650
million.
As part of its commitment to inclusive trade, EDC is also
focused on diversifying its suppliers. In 2023, EDC increased its
procurement with diverse suppliers by nearly 65% compared to 2022,
including spending of $5.6 million
across 58 contracts.
For more information, read the 2023 Integrated Annual
Report and the suite of supplemental ESG reports.
About EDC
Export Development Canada (EDC) is
a financial Crown corporation dedicated to helping Canadian
businesses make an impact at home and abroad. EDC has the financial
products and knowledge Canadian companies need to confidently enter
new markets, reduce financial risk and grow their business as they
go from local to global. Together, EDC and Canadian companies are
building a more prosperous, stronger and sustainable economy for
all Canadians.
For more information and to learn how we can help your
company, call us at 1-800-229-0575 or visit
www.edc.ca.
SOURCE Export Development Canada 2 (EDC)