(OTTAWA) – February 27, 2009 - Export Development Canada (EDC) and the International Finance Corporation (IFC), a member of the World Bank Group, announced today a joint workshop on Saturday, February 28, 2009 for mining sector companies on how to increase financing options by enhancing the environmental and social sustainability of their projects.
"The current economic crisis and tight capital markets have increased the importance of sound management of environmental and social issues in attracting international financing for viable mining projects," said Rajesh Sharma, Vice President and Head of Structured Finance, EDC. "The EDC-IFC workshop will help mining companies learn how to incorporate CSR principles in their project bids and how major lenders assess CSR overall."
The workshop will use case studies to explore the role of IFC's Environmental and Social Performance Standards as a means to reduce risk, which can make mining projects more attractive to lenders and investors. IFC's Performance Standards are the internationally recognized best practice standards on environmental and social project management, particularly in the natural resource sector. EDC and IFC will discuss their experience using the standards within their decision-making process for financing projects.
"IFC's Performance Standards on Social and Environment Sustainability have emerged as the key international benchmark for project developers and the banking community on environmental and social risk management," said William Bulmer, Head of Global Mining Investments at IFC. "The standards are a central part of the Equator Principles used by over 70 commercial banks. We believe that the standards can be also be used beyond risk mitigation, promoting better development outcomes, and we are very happy to share our experiences at the workshop."
Corporate Social Responsibility (CSR) is an operating principle at EDC, and today EDC has one of the world's most comprehensive CSR programs among export credit agencies (ECAs), which includes environmental, human rights and political risk assessments for the transactions that it considers. In 2007, EDC became only the second ECA in the world to adopt the Equator Principles, a financial industry benchmark for determining, assessing and managing environmental risk, which also includes substantial consideration of the social impacts of projects in emerging markets.
The workshop will be held at the Metro Toronto Convention Centre.
EDC is Canada's export credit agency, offering innovative commercial solutions to help Canadian exporters and investors expand their international business. EDC's knowledge and partnerships are used by nearly 7,000 Canadian companies and their global customers in up to 200 markets worldwide each year. EDC is financially self-sustaining, is a recognized leader in financial reporting and economic analysis, and has been named one of Canada's Top 100 Employers for eight consecutive years.
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totalled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit www.ifc.org.
IFC and EDC are available for interviews on the current financial situation and how it impacts the mining industry as well as on the importance of environmental and social sustainability in managing mining projects in developing countries.
Media contacts:
Phil Taylor
Export Development Canada
Tel: (613) 598 2904
BlackBerry: ptaylor@edc.ca
Josef Skoldeberg
IFC/World Bank Oil, Gas, Mining, and Chemicals Department
Tel: +1 (202) 473-6978 Fax: +1 (202) 522-3743 Cell: +1 (512) 789-2697
Email: jskoldeberg@ifc.org
Web: www.ifc.org/ogmc
