Why SLLs Have Only Just Begun to Roar
-
bookmark
-
print
When Enbridge Inc. launched its inaugural C$1bn Sustainability Linked Loan (SLL) in February 2021, it marked a milestone not only for the company, but also for SLLs as flexible, sector-agnostic lending instruments that allow companies to move the needle in the fight against climate change and meaningful social issues.
Barely a year later, the product has performed beyond all expectations, and few could have imagined how quickly and how broadly appetite would grow for SLLs, which incentivize companies to achieve wide-ranging sustainability goals with financial terms that reward meaningful, predetermined sustainability objectives.
SLLs have taken North America and the world by storm, with over $370bn announced in 2021, comprising 30 percent of sustainable debt issued globally, and that pace is set to accelerate as the transition to a lower-carbon world gains momentum.
These days, SLLs are drawing the attention of not just traditionally green companies and industries, but also those that are historically less green and have ESG-related goals that align with a more sustainable future.
Enbridge is a case in point: barely three months after dipping its toes in the sustainability-linked loan market, the multinational Canadian pipeline company doubled down with a US$1.5 bn Sustainability Linked Bond (SLB) and announced a comprehensive SLB Framework.
Flexible, Industry Agnostic
Appetite for SLLs is growing in lockstep with the realization by companies across sectors that if they invest time and resources into developing a robust sustainability strategy, SLLs can align their borrowing costs directly with those sustainability improvements and sustainability goals.
Today, the financing instrument is a part of nearly every corporate credit/loan conversation with our clients, many of whom have led SLL industry-firsts in North America and the world, beginning with Maple Leaf Foods Inc., which made sustainability history in December 2019 by inking Canada’s first ever SLL.
In the past two months, many more clients have joined those ranks, including Saputo and Sandstorm, which recently became the first North American dairy company and the first North American mining royalty company respectively to enter into SLLs, and TC Transcontinental in September, the first packaging company SLL in the sector. The Sandstorm SLL was quickly followed by another in the space, when Teck Resources Ltd., Canada’s largest diversified mining company, became among the first North American mining producers to have a sustainability linked loan structured with customized key performance indicators related to climate action, gender diversity and inclusion, and health and safety.
A Leader in the burgeoning SLL Landscape
In December 2019, BMO Financial Group and Maple Leaf Foods Inc. made sustainability history, inking the first sustainability-linked loan (SLL) in Canada.
More than two years later, BMO continues to drive firsts for the instrument, helping clients in Canada, North America and further afield to drive positive change in achieving a wide range of sustainable development goals.
Today, the financing instrument is a part of every corporate credit/loan conversation with our clients, driving an ever-widening profile of industry firsts as the industry matures.
North American Mining
In October 2021, BMO acted as sole sustainability structuring agent for Sandstorm Gold Ltd., making it the first precious metals royalty company and one of the first metals and mining companies in North America to have a Sustainability Linked Loan structured with internal and customized key performance indicators.
The Sandstorm SLL was quickly followed by another in the mining space, when Teck Resources Ltd., Canada’s largest diversified mining company, became among the first North American mining producers to have a sustainability-linked loan structured with customized Key Performance Indicators related to Climate Action, Gender Diversity and Inclusion, and Health and Safety.
Canadian Packaging
In September 2021, TC Transcontinental became the first Packaging Company in Canada to issue an SLL.
North American Dairy
In August 2021, BMO Capital Markets acted as Co-Sustainability Structuring Agent for Saputo, the first North American Dairy company to enter into a Sustainability Linked Loan, and the second SLL in the food and beverage industry in Canada. The Loan amended a USD$1 bn revolving credit facility and was structured to introduce an annual pricing adjustment based on the achievement of key climate and water targets in line with Saputo’s 2025 environmental commitments.
North American Energy
In April 2021, BMO Capital Markets acted as co-sustainability structuring lead on an SLL with Gibson Energy Inc., which made it the first public energy company in North America to fully transition its principal syndicated revolving credit facility into a sustainability-linked revolving credit facility.
The Gibson deal introduced a margin adjustment incentive mechanism tied to the company’s commitment to reduce carbon emissions and to increase womens’ as well as racial and ethnic representation in its workforce and on its Board.
North American Transport
In April of this year, BMO and a North American transport company inked a sustainable financing agreement linked to the company’s goal to conduct its operations with minimal environmental impact while providing cleaner, more sustainable transportation services to its customers.
First SLL in Canadian History
In December 2019, BMO acted as Sustainability Structuring Agent for the first SLL in Canadian history, inking a $2 bn facility with Maple Leaf Foods, the world’s first major food company to become carbon neutral.
Being able to support companies’ efforts to be more sustainable is also compelling to lenders like BMO, allowing us to be our clients’ lead partners in the transition to a lower-carbon world. SLLs reward clients committed to improving their ESG profiles and serve as beacons to investors factoring ESG risks into their valuation models and investment decisions. With an SLL, a company signals that it recognizes the need to mitigate its ESG risks, and that it has a roadmap to improvement.
Challenges to Growth
Continued growth in the SLL market is not without its challenges, including real-time benchmarking and timely certification of KPI performance.
While the global pandemic catalyzed sustainability strategies and policies, it has also underscored how disruptive events skew benchmarks amid asymmetry of information.
Just as COVID-19 slowed the pace of production and lowered emissions, events like labor stoppages at home and trade wars abroad also create supply chain disruptions, making it more difficult for companies seeking SLLs to set KPIs for progress and to be able to say, ‘here’s where we are today, and here’s where we are going to.’
SLLs are also victims of their own success because the supply of third-party auditors to verify KPI performance cannot keep up with demand, especially in sectors that are traditionally less green and where more specialized knowledge is required.
In the Wake of COP26
Despite some obstacles, sustainability-linked instruments are poised for even more explosive growth, as we emerge from the pandemic and companies continue to focus on environmental and regulatory risks, including changing government policies. For example, with $103bn in Sustainability Linked Bonds in 2021, there is significant potential for growth as investors follow lenders’ lead and tap the SLB market.
Another likely driver this year will come as major governments around the world announce and implement new policies in the wake of the COP26 UN Climate Change Conference in Glasgow last November, and companies respond with even more focus on what the future will look like and to assess the associated opportunities and risks that will present themselves.
While today sustainable debt still only accounts for a small proportion of total global debt issued, it can only grow from here, and there may come a day where alignment of borrowing facilities with ESG strategy and sustainability becomes even more mainstream and demand increases from borrowers and investors alike.
The menu of options for ESG-focused issuers and investors has been considerably widened with the advent and evolution of SLLs and SLBs, bolstering the roster of available debt products to companies with far-reaching and ambitious commitments to sustainability.
For more information please feel free to reach out to John Uhren, Head, Sustainable Finance, Products and Strategy
Why SLLs Have Only Just Begun to Roar
Head, Sustainable Finance, Products and Strategy
John Uhren is Managing Director and Head, Sustainable Finance, Products and Strategy, at BMO. He leads product development and strategic initiatives across the ente…
John Uhren is Managing Director and Head, Sustainable Finance, Products and Strategy, at BMO. He leads product development and strategic initiatives across the ente…
VIEW FULL PROFILE- Minute Read
- Listen Stop
- Text Bigger | Text Smaller
When Enbridge Inc. launched its inaugural C$1bn Sustainability Linked Loan (SLL) in February 2021, it marked a milestone not only for the company, but also for SLLs as flexible, sector-agnostic lending instruments that allow companies to move the needle in the fight against climate change and meaningful social issues.
Barely a year later, the product has performed beyond all expectations, and few could have imagined how quickly and how broadly appetite would grow for SLLs, which incentivize companies to achieve wide-ranging sustainability goals with financial terms that reward meaningful, predetermined sustainability objectives.
SLLs have taken North America and the world by storm, with over $370bn announced in 2021, comprising 30 percent of sustainable debt issued globally, and that pace is set to accelerate as the transition to a lower-carbon world gains momentum.
These days, SLLs are drawing the attention of not just traditionally green companies and industries, but also those that are historically less green and have ESG-related goals that align with a more sustainable future.
Enbridge is a case in point: barely three months after dipping its toes in the sustainability-linked loan market, the multinational Canadian pipeline company doubled down with a US$1.5 bn Sustainability Linked Bond (SLB) and announced a comprehensive SLB Framework.
Flexible, Industry Agnostic
Appetite for SLLs is growing in lockstep with the realization by companies across sectors that if they invest time and resources into developing a robust sustainability strategy, SLLs can align their borrowing costs directly with those sustainability improvements and sustainability goals.
Today, the financing instrument is a part of nearly every corporate credit/loan conversation with our clients, many of whom have led SLL industry-firsts in North America and the world, beginning with Maple Leaf Foods Inc., which made sustainability history in December 2019 by inking Canada’s first ever SLL.
In the past two months, many more clients have joined those ranks, including Saputo and Sandstorm, which recently became the first North American dairy company and the first North American mining royalty company respectively to enter into SLLs, and TC Transcontinental in September, the first packaging company SLL in the sector. The Sandstorm SLL was quickly followed by another in the space, when Teck Resources Ltd., Canada’s largest diversified mining company, became among the first North American mining producers to have a sustainability linked loan structured with customized key performance indicators related to climate action, gender diversity and inclusion, and health and safety.
A Leader in the burgeoning SLL Landscape
In December 2019, BMO Financial Group and Maple Leaf Foods Inc. made sustainability history, inking the first sustainability-linked loan (SLL) in Canada.
More than two years later, BMO continues to drive firsts for the instrument, helping clients in Canada, North America and further afield to drive positive change in achieving a wide range of sustainable development goals.
Today, the financing instrument is a part of every corporate credit/loan conversation with our clients, driving an ever-widening profile of industry firsts as the industry matures.
North American Mining
In October 2021, BMO acted as sole sustainability structuring agent for Sandstorm Gold Ltd., making it the first precious metals royalty company and one of the first metals and mining companies in North America to have a Sustainability Linked Loan structured with internal and customized key performance indicators.
The Sandstorm SLL was quickly followed by another in the mining space, when Teck Resources Ltd., Canada’s largest diversified mining company, became among the first North American mining producers to have a sustainability-linked loan structured with customized Key Performance Indicators related to Climate Action, Gender Diversity and Inclusion, and Health and Safety.
Canadian Packaging
In September 2021, TC Transcontinental became the first Packaging Company in Canada to issue an SLL.
North American Dairy
In August 2021, BMO Capital Markets acted as Co-Sustainability Structuring Agent for Saputo, the first North American Dairy company to enter into a Sustainability Linked Loan, and the second SLL in the food and beverage industry in Canada. The Loan amended a USD$1 bn revolving credit facility and was structured to introduce an annual pricing adjustment based on the achievement of key climate and water targets in line with Saputo’s 2025 environmental commitments.
North American Energy
In April 2021, BMO Capital Markets acted as co-sustainability structuring lead on an SLL with Gibson Energy Inc., which made it the first public energy company in North America to fully transition its principal syndicated revolving credit facility into a sustainability-linked revolving credit facility.
The Gibson deal introduced a margin adjustment incentive mechanism tied to the company’s commitment to reduce carbon emissions and to increase womens’ as well as racial and ethnic representation in its workforce and on its Board.
North American Transport
In April of this year, BMO and a North American transport company inked a sustainable financing agreement linked to the company’s goal to conduct its operations with minimal environmental impact while providing cleaner, more sustainable transportation services to its customers.
First SLL in Canadian History
In December 2019, BMO acted as Sustainability Structuring Agent for the first SLL in Canadian history, inking a $2 bn facility with Maple Leaf Foods, the world’s first major food company to become carbon neutral.
Being able to support companies’ efforts to be more sustainable is also compelling to lenders like BMO, allowing us to be our clients’ lead partners in the transition to a lower-carbon world. SLLs reward clients committed to improving their ESG profiles and serve as beacons to investors factoring ESG risks into their valuation models and investment decisions. With an SLL, a company signals that it recognizes the need to mitigate its ESG risks, and that it has a roadmap to improvement.
Challenges to Growth
Continued growth in the SLL market is not without its challenges, including real-time benchmarking and timely certification of KPI performance.
While the global pandemic catalyzed sustainability strategies and policies, it has also underscored how disruptive events skew benchmarks amid asymmetry of information.
Just as COVID-19 slowed the pace of production and lowered emissions, events like labor stoppages at home and trade wars abroad also create supply chain disruptions, making it more difficult for companies seeking SLLs to set KPIs for progress and to be able to say, ‘here’s where we are today, and here’s where we are going to.’
SLLs are also victims of their own success because the supply of third-party auditors to verify KPI performance cannot keep up with demand, especially in sectors that are traditionally less green and where more specialized knowledge is required.
In the Wake of COP26
Despite some obstacles, sustainability-linked instruments are poised for even more explosive growth, as we emerge from the pandemic and companies continue to focus on environmental and regulatory risks, including changing government policies. For example, with $103bn in Sustainability Linked Bonds in 2021, there is significant potential for growth as investors follow lenders’ lead and tap the SLB market.
Another likely driver this year will come as major governments around the world announce and implement new policies in the wake of the COP26 UN Climate Change Conference in Glasgow last November, and companies respond with even more focus on what the future will look like and to assess the associated opportunities and risks that will present themselves.
While today sustainable debt still only accounts for a small proportion of total global debt issued, it can only grow from here, and there may come a day where alignment of borrowing facilities with ESG strategy and sustainability becomes even more mainstream and demand increases from borrowers and investors alike.
The menu of options for ESG-focused issuers and investors has been considerably widened with the advent and evolution of SLLs and SLBs, bolstering the roster of available debt products to companies with far-reaching and ambitious commitments to sustainability.
For more information please feel free to reach out to John Uhren, Head, Sustainable Finance, Products and Strategy
Define the Future
PART 1
Brian Belski’s 2022 U.S. Market Outlook
Brian Belski December 09, 2021
In his 2022 U.S. market outlook, BMO Capital Markets’ Chief Investment Strategist Brian Belski explains why, even amid concerns aroun…
PART 2
The Current and Future State of the Global Supply Chain
Fadi Chamoun, CFA February 17, 2022
BMO recently held an event to discuss the current state of supply chain bottlenecks, strategies for managing the crisis and when we can exp…
PART 4
Amid the Pandemic, Market Structure Continues to Evolve
None April 01, 2022
Change is on the horizon for electronic trading as the U.S. Securities and Exchange Commission revisits regulatory reforms in a market that…
PART 5
State of the Union: What Lies Ahead
Brian Belski, David Jacobson, Michael Gregory, CFA April 21, 2022
Russia’s invasion of Ukraine has brought uncertainty to domestic and foreign policy as well as to the economy and the markets. It com…
PART 6
New Normal Yet to Come for Metals Prices: BMO Mining Panel
Colin Hamilton May 12, 2022
Prices for base and industrial and precious metals are flying high, but experts gathered at this year's BMO Global Metals and Mini…
PART 7
Amid the Supply Chain Woes, Supplier Wellness Takes Center Stage
Reg Butler June 02, 2022
There have been plenty of headlines about how backlogs in the supply chain are causing headaches for both companies and consumers. Those ch…
PART 8
Key Takeaways on Ag, Food, Fertilizer & ESG from BMO’s Farm to Market Conference
Dan Barclay May 26, 2022
Join BMO’s Dan Barclay, Bert Powell, Joel Jackson, Ken Zaslow and Doug Morrow in this special episode from BMO’s IN Tune Podcas…
PART 9
M&A Markets Active Despite Macroeconomic Backdrop
Warren Estey May 19, 2022
As much as deal-making has cooled in 2022 - dampened by market volatility, geopolitical uncertainty, the ongoing fight against COVID-19 and…
PART 10
Private Capital Seizing the Stage in U.S. Middle Market
Grant Thompson August 04, 2022
Move over public markets, because there’s a new kid in town - well, sort of. It’s called private capital, and while it may h…
PART 11
Supply Chain Disruption: Key Challenges and Opportunities
Fadi Chamoun, CFA September 01, 2022
New look, same great content! We’re proud to launch Markets Plus, our new podcast, where leading BMO experts share a wealth of timely…
PART 12
Achieving Returns in an Accelerating AI Environment
David Wismer October 19, 2022
From improvements in Machine Learning and the development of new database systems to the development of sector-specific tools, significant …
PART 13
North American Investment Strategy: 2023 U.S. Market Outlook
Brian Belski December 21, 2022
While 2022 has been “a year we’d like to forget,” 2023 will be the start of the multiyear trend toward normalization. In …
PART 14
Managing and Monetizing Your Transition to a Net Zero World with BMO and Radicle
Eric Jacks December 01, 2022
When Calgary-based Radicle Group Inc. was formed in 2008 in Alberta as the first North American compliance market, the climate change narra…
PART 15
The Importance of Financial Forecasting
February 22, 2023
Forecasting and predicting the future. They’re the same thing, right? Not really. We all make predictions at some point. Many of u…
PART 16
Why Water Access Should Be Part of Your Risk Metrics
April 20, 2023
In the current tally of key risks and mitigants it’s easy to feel that the risk side of the equation is having a banner era; with bus…
PART 17
Understanding the Link Between Cybersecurity and ESG
John Uhren, Andrew Matheou February 02, 2023
John Uhren is joined by Andrew Matheou, Head of BMO Capital Markets Global Transaction Banking, to discuss the topic of cybersecurity, and …
You might also be interested in
A First in Western Canada: Avenue Living Leverages BMO's Retrofit Program to Add 179 New Rental Units in Downtown Edmonton
How NASA and IBM Are Using Geospatial Data and AI to Analyze Climate Risks
BMO Arranges Green Financing to Fund New Lawson Centre for Sustainability, Trinity College's Most Significant Build in a Century
BMO ranked one of the most sustainable companies in North America on the Dow Jones Sustainability Indices
Canada Has an Opportunity to Become a Global Leader in Carbon Dioxide Removal
BMO Climate Institute Business Leaders Survey: Nearly Half of Business Leaders in the U.S. and Canada Believe Climate Change Has Already Affected Their Businesses, but Few Have a Strategy
More Companies Have Plans to Address Climate Change Based on Rising Business Importance: Survey Results
How the Energy Sector Is Helping Canada Achieve Its Decarbonization Goals
Transforming the Global Food System to Benefit Investors and the Planet
Why Businesses Need to Accelerate Their Efforts to Fight Climate Change
BMO Donates $3 Million to GRID Alternatives to Provide Solar Energy Solutions for Low-Income Families
Banco do Brasil and BMO Financial Group to Introduce First-of-its-Kind Program to Provide Sustainability-Linked Trade Loans Supporting Brazilian Exporters
BMO Provides Innovative New Sustainability-Linked Deposit Product to Zurn Elkay Water Solutions
Quick Listen: Michael Torrance on Empowering Your Organization to Operationalize Sustainability
BMO and Bell Canada Execute Innovative Sustainability-Linked Derivative Tied to Ambitious GHG Emission Reduction Targets
BMO Named to UN-Convened Group Providing Guidance to Global Banks on Nature Target Setting
Driving Innovations In Tech To Strengthen Climate Resilience With Climate Engine’s Spatiafi, Built On Google Cloud
BMO Celebrates Earth Day with 3rd Annual Trees from Trades Day on its Global Trading Floors
BMO Donates $2 Million to the University of Saskatchewan to Accelerate Research Critical to the Future of Food
North America’s Critical Minerals Advantage: Deep Dive on Community Engagement
The Most Valuable Commodity is Trust: ICMM to BMO Global Metals, Mining & Critical Minerals Conference
Rock Legends Reflect on Mining Hits and Misses: Global Metals, Mining & Critical Minerals Conference
Exploring North America’s Critical Minerals Advantage: Global Metals, Mining & Critical Minerals Conference
BMO Experts at our 32nd Global Metals, Mining & Critical Minerals Conference
Evolving Mining for a Sustainable Energy Transition: ICMM CEO Rohitesh Dhawan in Conversation
Public Policy and the Energy Transition: Howard Learner in Conversation
Taskforce on Nature-Related Financial Disclosure (TNFD) – A Plan for Integrating Nature into Business
Takeaways from the BMO Climate Institute Small and Mid-Sized Businesses Climate Survey
BMO Ranked North America's Most Sustainable Bank by Corporate Knights for Fourth Consecutive Year
Is Green Financing for Nuclear the Next Frontier in the Energy Transition?
BMO ranked one of the most sustainable companies in North America on the Dow Jones Sustainability Indices
BMO Climate Institute Survey Shows Costs and Competing Priorities Slowing Climate Action for Small and Mid-Sized Businesses
Managing and Monetizing Your Transition to a Net Zero World with BMO and Radicle
BMO the Top Ranked Financial Institution on New Global Sustainability Benchmark Announced at COP 27
COP27 in Focus: Will Energy Security and Economic Uncertainty Impact the Climate Transition?
BMO to Invest in Innovative Carbon Offsets from CarbonCure to Permanently Store CO2
RoadMap Project: An Indigenous-led Paradigm Shift for Economic Reconciliation
A Canadian First: BMO and Concordia University Partner for a Sustainable Future with Innovative Sustainability-Linked Loan
Sustainability Strategy and Reporting for Small and Medium Sized Companies: A Discussion at the Conference of Montreal
BMO to Acquire Calgary-based Radicle Group Inc., a Leader in Environmental Services
Investment Opportunities for a Net-Zero Economy: A Conversation at the Milken Institute Global Conference
How Hope, Grit, and a Hospital Network Saved Maverix Private Capital Founder John Ruffolo
Hydrogen’s Role in the Energy Transition: Matt Fairley in Conversation
Exploring the Physical and Transition Risks Facing Food and Agriculture
Key Takeaways on Ag, Food, Fertilizer & ESG from BMO’s Farm to Market Conference
Building an ESG Business Case in the Food Sector: The Food Institute
Forging Ahead in the Energy Transition: Darryl White to Global Reserve and Asset Managers
BMO and EDC Announce Collaboration to Introduce Sustainable Finance Solutions for Canadian Businesses
Retrofitting Canada's Building Sector: Efficiency Canada’s Corey Diamond in Conversation
The Role of Hydrogen in the Energy Transition: FuelCell Energy CEO Jason Few in Conversation
BMO proud to support first Government of Canada Green Bond transaction as joint-lead manager
Tackling Climate Change in Metals and Mining: ICMM CEO Rohitesh Dhawan in Conversation
Op Ed: Government Action Can Help Spur More Home Building To Address Canada’s Housing Shortage
BMO Launches Business Within Reach: BMO for Black Entrepreneurs and Commits $100 million in loans to Help Black-led Businesses Start up, Scale up, and Grow
The Post 2020 Biodiversity Framework – A Discussion with Basile Van Havre
BMO Announces Plan to Partner with Breakthrough Energy Catalyst to Accelerate Climate Innovation
BMO Financial Group Named North America's Most Sustainable Bank for Third Consecutive Year
Mitigating the Physical Impacts of Climate Change with Spatial Finance
BMO Helps Boralex Go Beyond Renewable Energy, with the Transition of its Credit Facility to a Sustainability-Linked Loan
A Global First: BMO Supports Bruce Power with World's First Nuclear Green Financing Framework
BMO ranked one of the most sustainable companies in the world according to Dow Jones Sustainability Indices
The Future of Remote Work and Diversity in the Asset Management Industry
North American Metals & Mining first: BMO helps Sandstorm Gold Royalties achieve ESG goals with Sustainability-Linked Loan
Education, Employment and Economic Empowerment: BMO Releases Wîcihitowin ᐑᒋᐦᐃᑐᐏᐣ- First Annual Indigenous Partnerships and Progress Report
BMO Announces $12 Billion Financing Commitment towards Affordable Housing in Canada
BMO supports Canada's bid to host the headquarters of the International Sustainability Standards Board
In support of Canada’s bid to host the headquarters of the International Sustainability Standards Board
BMO Named to Canada's Best 50 Corporate Citizens Ranking by Corporate Knights
A North American First: BMO Helps Gibson Energy Fully Transition Credit Facility to a Sustainability-Linked Loan
Understanding Biodiversity Management: Best Practices and Innovation
Episode 29: What 20 Years of ESG Engagement Can Teach Us About the Future
BMO Financial Group 2020 Sustainability Report and Public Accountability Statement Now Available Online
Episode 28: Bloomberg: Enhancing ESG Disclosure through Data-Driven Solutions
BMO Ranked Among Most Sustainable Companies on Dow Jones Sustainability Index - North America
BMO investing in a sustainable future with $1M donation to the Institute for Sustainable Finance
BMO Financial Group Reaches Key Milestone in Matching 100 Per Cent of Electricity Usage with Renewables
BMO Financial Group Recognized as One of the World's Most Sustainably Managed Companies in New Wall Street Journal Ranking
Episode 23: TC Transcontinental – A Market Leader in Sustainable Packaging
BMO Financial Group to Source 100 Per Cent of Electricity Usage From Renewables
Episode 07: World Bank: Mobilizing Capital Markets for Sustainable Finance
Episode 06: Responsible Investing – Industry Trends and Best Practices from Canada