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OTTAWA — The federal government plans to punish mining and energy companies that run afoul of its new corporate social responsibility policy by withdrawing support they receive from agencies such as Export Development Canada and embassies abroad.
International Trade Minister Ed Fast is to announce the measure in a speech in Vancouver Friday, saying it is important to protect Canada’s “brand” as a global heavyweight in the resource industries.
“Let there be no mistake,” the minister says in a draft copy of the speech provided to The Globe and Mail, “Canada’s expertise in the extractive sector is second to none; Canada is a world leader in sustainable technology, and in environmentally, ethnically and socially responsible business practices. That is the ‘Canada brand’ – it is how we are known throughout the world.”
The government is launching a corporate social responsibility (CSR) strategy as part of its broader effort to enhance the business prospects for resource companies abroad. Toronto is a global centre for mining finance and Canadian-based companies are particularly prominent in Africa and South America, where more than 250 companies controlled $81-billion in assets in 2011.
Moving with the European Union and the United States, Ottawa is already set to impose new transparency standards on resource companies, having introduced legislation this fall that will require them to report all payments made to national, state and local governments both at home and abroad.
In the speech to be delivered Friday, Mr. Fast said he will appoint a new CSR counsellor to fill a post that has been empty for a year, and give the ombudsman role some teeth by insisting companies co-operate with the office or lose the support of the government. Many mining and oil companies rely on Export Development Canada to provide insurance against political risk and other losses, as well as lines of credit and other financial support.
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