BMO supports launch of Export Development Canada’s new Sustainable Bond Framework
BMO is proud to have played a role in Export Development Canada’s (EDC) new Sustainable Bond Framework, which will accelerate the development of sustainable finance in Canada and enhance the competitiveness of many Canadian businesses. The Framework ensures ESG is a prominent feature across the organization, supports EDC’s customers in Canada’s transition to a lower carbon and more climate-resilient economy, demonstrates EDC’s leadership among financial institutions, and will be a key tool to continue to align EDC’s portfolio with strong ESG practices.
EDC’s Sustainable Bond Framework aligns with the International Capital Market Association’s (ICMA) Green Bond Principles 2021, Social Bond Principles 2021 and Sustainability Bond Guidelines 2021, and is informed by the guidance in ICMA’s Climate Transition Handbook 2020. The Framework has received a second party opinion from Sustainalytics, a global leader in independent ESG and Corporate Governance research, ratings and analytics. The Sustainable Bond Framework permits financing for green, social and transition assets, with the latter including activities that decarbonize a customer’s operations through carbon capture utilization and storage, and low carbon intensity fuels. The inclusion of transition use of proceeds is the first of its kind in Canada and signifies EDC’s commitment to financing its customers’ decarbonization activities.
“Working with key partners such as BMO is crucial to help us have a positive impact on the competitiveness of Canadian companies and their path towards sustainability,” said Justine Hendricks, EDC’s Senior Vice-President and Chief Corporate Sustainability Officer. “Adding transition and social bonds to our framework allows us to finance the projects and companies working to catalyze the actions required to address climate change and systemic social inequity, and we encourage others to do the same.”
“We’re proud of our work with Export Development Canada to build a Sustainable Bond Framework to help them reach their own ESG objectives, as well as ensure Canadian companies are competitive in a world that is facing rapid climate change and the impacts that come with it,” said Jonathan Hackett, Head, Sustainable Finance and Co-Head, Energy Transition Group, BMO Financial Group. “Partnering with clients like EDC to break ground, as they’re doing with the incorporation of Transition proceeds into their framework, is a demonstration of how we live our Purpose to Boldly Grow the Good in business and life.”