October 26, 2004 Export Development Canada was today recognized for making major improvements to its environmental review process in an audit conducted and tabled in Parliament by the Auditor General of Canada. "The improvements noted in the Auditor General's report were achieved in a short period of only two years since the last audit in this area," said Gilles Ross, acting President of EDC. "Since 2001, EDC has continually improved its environmental and disclosure practices, while continuing to promote common approaches to environmental review and disclosure internationally in the interest of developing a level playing field for Canadian companies." The Auditor General's audit report found "major improvements in the manner in which EDC implemented its environmental review processes, including the Directive, over a similar audit conducted in 2001." The Auditor General's report also affirms that "the Directive operated as designed." The review found that EDC's current environmental review policy is consistent with those of other export credit agencies, private sector commercial banks and multi- lateral development banks. EDC shares the Auditor General's view of the importance of accountability and transparency. Following the previous audit in 2001, EDC implemented a Disclosure Policy which has been effective in encouraging project sponsors to make public environmental information on projects. EDC also created the position of a Chief Environmental Advisor who engages with stakeholders, reports quarterly to the Board of Directors, issues a public annual report on EDC's environmental reviews, and oversees the work of the Environmental Advisory Services group that conducts environmental reviews. EDC also created the position of Compliance Officer reporting to the Board of Directors and the public on EDC's compliance with its environmental and disclosure policies. "Environmental review and disclosure practices continue to evolve and EDC is committed to continuous improvement in its practices through dialogue and co-operation with its OECD counterparts," said Mr. Ross. "Taking into account the Auditor General's recommendations, EDC will develop enhancements to its environmental review and disclosure policies in the months ahead." Members of the public, the private sector and civil society will have an opportunity to comment on these enhancements. Environmental reviews have been part of EDC's risk management procedures for several years. In 2001, amendments to the Export Development Act included a requirement for EDC to implement a formal environmental review policy, the Environmental Review Directive (ERD). The current audit by the Auditor General was undertaken at the request of the Minister for International Trade. EDC provides trade finance and risk management services to Canadian exporters and investors in markets world-wide. Founded in 1944, EDC is a Crown corporation that operates on commercial principles. The Auditor General's report on the audit of EDC's Environmental Review Directive is available on the website of the Auditor General of Canada at www.oag-bvg.gc.ca . EDC's Management Response to the Auditor General's audit is contained within the Auditor General's report and is also available at the following link: EDC's Management Response. http://www.edc.ca/corpinfo/media/backgrounder/110104_e.htm - 30 - CONTACT: Glen Nichols EDC-Public Affairs (613) 598-2876 glnichols@edc.ca
