IDRC Annual Report 2024-25

RESEARCH for REAL-WORLD IMPAC T

RESEARCH for REAL-WORLD IMPAC T

2024-2025 at 31 March 2025

Dr iven by a commitment to shaping prac tical solutions for lasting change, Canada’s I nter national D evelopment r esearch Centre (IDr C ) suppor ts research that delivers real-wor ld results. Le veraging the power of locally led science and innovation, we par tner with researchers, polic ymak ers and communities in low- and middle -income countr ies to improve lives and build a more inclusive, sustainable and prosperous wor ld.

As par t of Canada’s foreign affairs and development effor ts, IDr C champions and funds research and innovation within and alongside developing regions to drive global change. The Centre invests in research to build evidence, inform decisions and generate oppor tunities that promote an inclusive and sustainable world.

o n T h e Co v e r

Lab assistant ruth onywera work ing as par t of a livestock vaccination project in Kenya As women represent only a third of the world’s researchers, IDrC strives to tack le the systemic barriers to women’s par ticipation and leadership in the science, technology, engineering and mathematics fields.

Unless other wise stated, all monetar y amounts in

Our year at a glance

At IDRC, our mandate is clear: to support research that can deliver tangible results-driven solutions that improve lives and advance Canada’s international assistance priorities Our distinctive approach funds researchers and innovators in lowand middle-income countries, creating practical solutions to urgent challenges By investing in science and innovation led by those closest to the issues, IDRC creates lasting change to improve economic development, advance health, education and food systems, and protect human rights

Speeding up the fight against an Ebola strain in Uganda

Collaboration among hundreds of scientists and health workers enabled the rapid star t of a vaccine trial for the Ebola Sudan virus in early 2025, helping to combat a deadly disease that k nows no borders Read more on page 9

Boosting yields for Algerian farmers

Algerian farmers using IDRC-suppor ted native mycorrhiza fungi technology repor t 32-55% higher crop yields while using less water, enhancing food security and improving sustainable agricultural practices Read more on page 12

This year ’ s annual report demonstrates how IDRC-supported initiatives build local capacity and create networks of expertise that multiply impact across regions Through strategic partnerships and evidence-based approaches, we ensure research findings translate into meaningful policy reforms, program improvements and community-level transformations that improve lives today and create lasting benefits for generations to come The results of IDRC’s work have played an integral role in building Canada’s networks abroad by strengthening partnerships with key allies and increasing Canada’s global influence

Advancing responsible AI to drive prosperity

An IDRC-suppor ted program is helping shape an African-led approach to responsible ar tificial intelligence that suppor ts equity, innovation and sustainable development from the ground up Read more on page 11

Scaling future -proofed aquaculture across Southeast Asia

AQUADAPT ’ s innovative approach combines traditional farming practices with new technologies to help aquafarmers across 10 Asia-Pacific countries adapt to climate change Read more on page 12

From evidence to action

Research shows what works and what doesn' t, providing the information needed by communities and policymakers to save lives, build economies and improve wellbeing IDRC ’ s investments in research and its suppor t towards enhancing the capacity of research institutions in low- and middleincome countries many in collaboration with Canadian researchers and institutions create the environment for

GLOBAL REACH 5

regional offices located around the world enable a close connection to issues and stakeholders at the local, national and regional levels

high-quality innovation. With a strategic focus on information sharing, it ensures research findings lead to tangible actions in policy, programs and communities By suppor ting projects that engage policymakers, private sector actors and local communities from the outset, IDRC ensures research is designed for real-world impact that benefits ever yone ever ywhere

EFFICIENT DELIVERY

of funding goes directly to programming, ensuring resources reach those who need them

funds allocated towards new research projects approved in 2024-2025, across regions (CAD)

SMART INVESTMENT 2%

is on average the amount of Canada’s overseas development assistance invested annually in IDRC, showing big impacts come from modest investments

funds allocated towards new research projects approved in 2024-2025, across the Centre’s core program areas and Catalytic fund* (CAD)

Catalytic fund* 11 57M (4 85%)

OUR FUNDING SOURCES (CAD)

IDRC ’ s 2024-2025 parliamentar y appropriation was enhanced by donor funding, amplifying the impact of Canada’s investment

Message from the chairperson

As Chair of the Board of Governors of the International Development Research Centre (IDRC ), I reflect on a year marked by extraordinar y global challenges and oppor tunities. The world continues to grapple with intersecting crises climate change, conflict and displacement, food insecurity, threats to democratic institutions and persistent inequalities in health, education and economic oppor tunity In this context, the role of research for development has never been more critical

At home in Canada, we are experiencing a renewed conversation about our global role, our responsibilities as a G7 countr y, and the value of international cooperation in building a more secure, inclusive and sustainable world The Canadian public continues to seek impact, accountability and innovation from institutions work ing on the world stage and rightfully so. IDRC aims to meet that expectation by leveraging funding par tnerships, Canadian exper tise and research par tnerships with the Global South and by delivering results and evidence that shape polic y and practice at scale

This year, IDRC continued to champion locally led research and innovation as a cornerstone of equitable development We deepened our commitment to decolonizing k nowledge systems and suppor ting the next generation of researchers, especially women and young people who are

tack ling the most pressing development challenges in their own communities We also reaffirmed our leadership in strategic areas where progress is needed: technology, climate resilience, inclusive governance, gender equality and health systems strengthening

As we look to the future, IDRC ’ s value proposition is clear amid increasing global volatility and complexity Canada’s suppor t for global research is a fundamental tool to overcome challenges through data and evidence -based solutions that benefit ever yone, including both in low- and middle -income countries and in Canada

We are a trusted par tner for transformational research that informs evidence -based polic y, strengthens institutions and enables resilient societies in the Global South In a time of geopolitical fragmentation and shrink ing civic space, IDRC ’ s work continues to bridge divides, advance dialogue and anchor Canadian values in global solidarity

On behalf of the Board of Governors, I thank IDRC ’ s staff, our par tners around the world and the Government of Canada for their unwavering dedication Together, we remain committed to a world where k nowledge fosters a more just, inclusive and sustainable future for all

Dr Dorothy nyambi Chairperson, IDrC Board of governors

Message from the president

It ’ s no secret that the past year was unpredictable, for the world and for Canada Geopolitical volatility, disruptive technology and increasingly severe weather events threw a wrench into our collective plans to advance prosperity and stability worldwide These challenges, among others, demand transformative solutions we can only reach by working together We are proud to be an institution whose par tnerships have built deep roots for Canada around the world, in large par t through backing local researchers to produce impactful results for their countries and communities

Over more than 50 years, IDRC has honed an approach that reaches across borders and sectors to bring for ward local solutions to global problems I have seen firsthand the impact that we can achieve by ensuring that researchers, community members and policymakers around the world have the tools they need to drive collaborative, evidence -based change in their communities

This year ’ s annual repor t, focused on the impact we can achieve by working together, highlights how changes on a local level add up to global transformation

Take for instance Houaria Boudia, one small-scale farmer in nor thern Algeria who agreed to test out a simple fungi-based innovation developed by IDRC-suppor ted researchers on her olive trees. When it was clear that the innovation increased yields while using less water and fer tilizer, one farmer became 200 and now the product is government-approved and being commercialized by star t-up companies Thanks to Houaria and researchers from Algeria and Canada working together with farmers on the ground this innovation can be translated and applied across contexts to improve global food security in a changing climate

Or take as another example the recent outbreak of the deadly Ebola Sudan virus in Uganda As we know well, what may seem like localized health crises can quickly become global in our interconnected world IDRC, together with the Canadian Institutes of Health Research and the Public Health Agency of Canada, suppor ted the launch of the first-ever vaccine trial for this strain of the disease Leveraging local exper tise connected with global networks led to this crucial step to prevent future outbreaks in Uganda and around the world

As we see increasing challenges in global cooperation, research is a tool to reach across divisions and unite around shared solutions that benefit people around the world, including Canadians

Crossing the mid-way threshold of our strategic plan Strategy 2030 , I am proud of the position that IDRC is in to accelerate our ability to deliver results and scale our impact

When IDRC-suppor ted research produces meaningful change, it is thanks to our dynamic, driven and compassionate staff and par tners They are the driving force behind the research featured in this year ’ s annual repor t Ever y day, I find new reasons to be impressed by their dedication, passion and exper tise I remain committed to fostering an environment that is productive and suppor tive for all members of the IDRC community

While reading this year ’ s annual repor t, I hope you will be struck, as I am, by the incredible potential that impact-driven research and knowledge can have for the world and for Canada By working with Canada’s global allies, IDRC is suppor ting Canada’s position as a leader in bringing innovative solutions from communities around the world to the global stage for impact

Julie Delahanty president

Research that drives lasting change

The defining challenges of our time demand more than good intentions they require transformative solutions.

Rising temperatures threaten food systems that feed billions Health systems strain under the weight of emerging threats Digital technologies reshape economies faster than communities can adapt And in many regions, democratic institutions face mounting pressure just when their stability matters most

Each challenge presents an oppor tunity for transformation Research when focused on real-world impact and led by those closest to these issues becomes a power ful catalyst for change It reveals which solutions work, helps communities adapt proven approaches to local needs and ensures that policies are built on evidence rather than assumption

This is where evidence meets action IDRC invests in research that moves beyond academic insights to deliver tangible results in communities worldwide Our approach is distinctive: we fund and suppor t researchers and innovators in low- and middle -income countries in ways that put knowledge to work, creating practical solutions to urgent challenges. When a simple fungi-based innovation helps Algerian farmers increase yields by up to 55% while using less water, or businesses in five Latin American countries are empowered to attract investors committed to positive social impact, or practical tools using artificial intelligence (AI) are developed with university students to help address local development priorities in Ghana, we witness research delivering on its promise

Impact doesn’t happen overnight Measuring real change requires looking beyond research outputs to track how projects influence decision-making, shape policy agendas and transform lives The achievements highlighted in this repor t demonstrate this approach in action In the Democratic Republic of the Congo (DRC), epidemiologists

are advancing global understanding of an emerging, fastspreading disease across nine neighbouring countries In Nepal, women are transforming traditional forest management into a driver of inclusive economic growth In Kenya, new technologies are strengthening vocational education programs to equip youth with in-demand skills These IDRC-suppor ted initiatives build local capacity that fuels ongoing progress and creates networks of exper tise that multiply impact across regions

This commitment extends to Canada's role on the global stage Through strategic par tnerships with research institutions, governments and the private sector, IDRC amplifies Canadian exper tise and resources while reinforcing the countr y ' s reputation as a trusted par tner in sustainable development Our work directly advances Canadian international priorities, ensuring research-driven solutions lead to lasting, scalable change

Now more than e ver, the world needs smar t, innovative solutions to tack le today ’ s most pressing challenges.

This report demonstrates the transformative power of research It tells stories of an evidence-backed response to disease outbreaks by scientists in Africa, of Southeast Asian communities pioneering agriculture that thrives in the face of a changing climate, and of marginalized groups using knowledge to advocate for their rights What is clear is that when local expertise drives research, and when evidence shapes policy, we create more than temporar y solutions We build foundations for lasting progress toward a more sustainable, inclusive and resilient world.

Economic growth that builds resilient economies

Strategic investments in research and innovation drive strong, lasting economic oppor tunities for local communities in low- and middle -income countries

IDRC funds research that shapes policy reforms, expands financial inclusion and unlocks new business models that drive local prosperity Investing in local economies pays dividends in cultivating diversified global relationships, extending Canada’s economic and diplomatic reach

Strong economies don' t happen by chance IDRC funds research that helps governments and businesses anticipate risks and adapt policies, equipping communities with innovative, stabilizing financial tools These effor ts promote entrepreneurship and responsible investment, creating not only shor t-term gains but also long-term oppor tunities Research also helps identify vulnerabilities and create models that balance growth with sustainability, allowing economies to adapt to global disruptions

Economic growth should ensure that prosperity benefits all sectors of society IDRC prioritizes research that advances women ' s economic par ticipation and fosters

local job creation These effor ts don' t just boost incomes; they strengthen entire communities by ensuring that prosperity reaches more people By funding research that strengthens labour markets, suppor ts innovative business models and fosters impact-driven economic solutions, IDRC helps create resilient economic foundations

A decade of impact: IDRC's par tnership with Sistema B

IDRC's 10-year collaboration with Sistema B (the Latin American branch of the global B Corporation movement) has empowered thousands of Latin American businesses to thrive financially while improving communities and protecting the environment

The partnership has sparked a growing movement of businesses able to demonstrate that enhanced profitability, investor attraction and competitive advantages can accompany positive social impact Grounded in a decade of collaborative research and knowledge, the initiative has produced a rich body of research, public policy recommendations and practical tools including the Sustainable Development Goals Action Manager, a free resource that helps businesses measure and improve their contributions to social and environmental goals More than

20,000 companies are now using this research to measure and enhance their social impact while securing stronger market positions and sustainable revenue streams

As a result of the collaboration, five countries now officially recognize B corporations, helping businesses attract investors and customers who value the commitments that exist as part of B-corp incorporation

Academia B, a key initiative born out of this collaboration, has brought together business innovators, researchers, educators and students from more than 35 countries This collaboration has developed practical approaches for companies to balance profits with positive impact, while inspiring a new generation of entrepreneurs who view sustainability as a strategic business advantage rather than a compliance issue.

Our support for this work positions Canada as a catalyst for market-driven solutions to global challenges, helping create resilient businesses and self-reliant economies across emerging markets.

Building women-led businesses through Nepal’s forests

In Nepal, nearly half the land is forested, making it a natural treasure trove of business oppor tunities While women are an integral par t of forest management and use ancestral skills to make forest-based products, they also face traditional norms that limit their decision-making power

An initiative suppor ted by IDRC and led by ForestAction Nepal and other par tners aims to change that Working closely with communities, the initiative under took 30 months of research to examine how women can build profitable businesses using forest resources to mitigate risks from climate change and unstable markets Researchers developed hands-on training and provided women with access to digital and climate -smar t technologies, enabling them to enhance their business prospects Policy dialogues also gave women greater visibility in the forestmanagement sector

This suppor t has already resulted in the launch or expansion of 18 women-led enterprises that process and market sustainably har vested forest products like herbs and edible greens

Forest-based businesses can offer a more secure and steady income, even amid challenges like climate change and market shocks They also play an impor tant role in fostering low-carbon resource use

While focused on women ’ s empowerment, this approach also strengthens local communities and suppor ts a greener economy, benefiting ever yone By transforming forest management into a driver of inclusive growth, the project sets the stage for sustainable economic progress across Nepal

Canada, which is home to nearly 9% of the world’s forests, shares a deep commitment to sustainable forest management By suppor ting projects like this, Canada empowers women who are leading the way toward climate -resilient communities and healthier forests worldwide

Strengthening global health security

IDRC supports research that strengthens health systems the foundation of better health outcomes during crises and in ever yday life The COVID-19 pandemic and other recent health emergencies have overburdened health workforces, exposed gaps in preparedness and revealed the fragility of supply chains Meanwhile, antimicrobial resistance is reducing our ability to treat infections effectively

These challenges, combined with persistent health inequities, directly threaten our collective wellbeing Building resilient health systems is key to protecting the global community against future crisis, including in Canada

IDRC-funded research tackles these challenges through practical, locally led solutions Projects focused on infectious disease prevention, maternal and child health and primar y care generate evidence that strengthens frontline care and informs health policy reforms Investments in sur veillance and vaccine research also build capacity in regions that need it most, helping ensure communities can respond quickly and effectively when new health threats emerge

Shining a light on a neglected disease

When a deadly strain of mpox re-emerged in Central Africa in early 2024, Dr Placide Mbala was among the first to raise the alarm An epidemiologist at the Institut National de la Recherche Biomédicale in Kinshasa, DRC, he led a team that identified a new, human-to-human transmissible variant genetically distinct from earlier outbreaks and capable of spreading quickly across borders Mbala’s work helped redirect international attention to a disease long neglected after case numbers dropped outside Africa

The IDRC-suppor ted Innovating for Maternal and Child Health in Africa (IMCHA) initiative made impor tant strides toward improving the lives of women and children in 11 countries in sub-Saharan Africa. In Nigeria’s Edo State, IMCHA inter ventions contributed to more than doubling the number of women receiving antenatal care and giving bir th in health facilities

With support from IDRC and the Canadian Institutes of Health Research, Mbala is leading efforts to strengthen mpox sur veillance and response across nine African countries His genomic research is deepening understanding about how the virus spreads in overcrowded displacement camps and through non-sexual contact, offering crucial evidence to inform public health measures around the world

Dr. placide Mbala, an epidemiologist at the Institut national de la recherche Biomédicale in Kinshasa, DrC, was named one of Nature magazine’s top 10 people who shaped science in 2024.

Mbala's findings are already contributing to a stronger, faster global response, helping protect Canadians through earlywarning systems and effective containment strategies His close collaboration with Canadian virologist Dr Jason Kindrachuk of the University of Manitoba exemplifies how Canadian-supported, African-led research strengthens health security for ever yone

Speeding up the fight against an Ebola strain

Just four days after an outbreak of the deadly Ebola Sudan virus was confirmed in Uganda on Januar y 30, 2025, IDRCsuppor ted research enabled the launch of the first-ever vaccine trial for this strain of the disease a crucial step towards combatting future outbreaks The research, jointly funded with the Canadian Institutes of Health Research and the Public Health Agency of Canada, paved the way for the World Health Organization to co-implement the trial with Uganda’s Ministr y of Health Advanced research preparedness and collaboration among hundreds of scientists and health workers facilitated the process at an unprecedented speed for a randomized vaccine trial in an emergency

Enabling oppor tunities through education, science and innovation

Education, which is a fundamental human right and pover ty-reduction tool, faces critical challenges globally

Children in conflict zones are twice as likely to be out of school, with 130 million girls aged six to 17 not attending Even among those enrolled, a learning crisis persists with over half of children in low- and middle -income countries lacking basic reading and math proficiency

Similarly, science and innovation systems essential for societies to advance struggle in developing regions

Scientists from developing countries face barriers to highquality training, research oppor tunities, funding and infrastructure Their exclusion from emerging technologies like AI creates dispropor tionate risks for their populations, while the shor tage of women scientists limits the potential for innovation

IDRC-suppor ted research addresses these interconnected challenges by testing and scaling educational innovations, par ticularly for marginalized groups, while strengthening science and innovation systems aligned with regional priorities

Turning skills into solutions for economies and communities

In Kenya, many young people struggle to find stable jobs, despite a growing demand for skilled workers in local industries Vocational training has traditionally focused on classroom-based instruction, but many graduates lack opportunities to apply their skills, leaving them unprepared to enter the workforce

Recognizing this gap, IDRC partnered with Colleges and Institutes Canada to support an initiative that strengthens vocational education by linking students with industr y and community needs The project established four innovation hubs at technical and vocational education and training institutions, where students apply their skills to solve local challenges With mentorship and access to new technologies, they have made many innovations, including fuel-efficient stoves to reduce reliance on costly firewood and fortified flours from local crops that alleviate food insecurity Some innovations are moving toward patents and commercialization, demonstrating the economic potential of vocational training

The RAIL initiative in Ghana, which trains women from diverse fields in coding essentials, is suppor ted by IDRC as par t of effor ts to build sustainable ar tificial intelligence (AI) research capacities in low- and middle -income countries, given AI’s immense potential to improve lives around the world.

Advancing responsible AI to drive prosperity and innovation

The Responsible AI Lab (RAIL) at the Kwame Nkrumah University of Science and Technology in Ghana, is nur turing AI scientists locally to meet the growing talent requirements of Africa’s public and private sectors The lab is suppor ted through IDRC ’ s Ar tificial Intelligence for Development par tnership with the United Kingdom’s Foreign, Commonwealth and Development Office, which suppor ts the creation of an inclusive and responsible AI ecosystem across Africa and beyond RAIL trains masters’ and PhD students in responsible AI as they work on innovations to address challenges in key areas such as food security, education and disability inclusion RAIL also star ted a program that trains women from diverse fields in coding essentials so they can build AI-based solutions to solve problems

“ The future belongs to those who can find their way in the digital space ”

Prof Jerry John Kponyo, principal investigator for RAIL

The RAIL Robotics Club initiative, which established robotics clubs at four secondar y schools in Ghana, introduces students to robotics, AI and education in the science, technology, engineering and mathematics fields.

Through both its research and outreach, RAIL is helping shape an African-led approach to responsible AI that suppor ts equity, innovation and sustainable development from the ground up

As a recognized global leader in advancing responsible AI, Canada is committed to ethical innovation through IDRC ’ s suppor t for initiatives like RAIL.

Ensuring food security in a changing climate

Extreme weather and shifting rainfall patterns are destabilizing food production, making it harder for farmers to maintain reliable har vests When crops fail or livestock suffers, entire communities face economic hardship and rising food insecurity The challenge now is to develop farming approaches that can withstand increasingly unpredictable conditions

IDRC invests in collaborative research where agricultural scientists and farmers together develop practical solutions: testing climate-resilient crop varieties, implementing soil conser vation techniques and adapting traditional practices to new climate realities We support solutions developed by those experiencing climate impacts firsthand, recognizing that effective adaptation must emerge from the communities themselves Locally driven approaches, from improved water management to more efficient farming systems, ensure that agricultural communities are more resilient in the face of environmental pressures.

By investing in research, technology and policy innovation, IDRC is working toward a future where food systems are stronger, farmers are better equipped to manage climate challenges and communities have more secure, sustainable food sources By facilitating knowledge exchange between farming communities, IDRC is enabling the adaptation and scaling of successful innovations across regions facing similar challenges

Boosting yields for Algerian farmers

In Biskra, Algeria, small-scale farmers like Houaria Boudia face worsening drought, soil degradation and rising fertilizer costs A new bio-innovation called native mycorrhiza a beneficial fungus that strengthens plant roots has offered Boudia a sustainable solution

Supported by IDRC, researchers from the Centre d’études des procédés chimiques du Québec (CÉPROCQ) worked with researchers from the Université de Blida 1 in Algeria to isolate and multiply native mycorrhizas from Algerian soils, then test them in labs and on farms

When Boudia used them on her farm, she saw remarkable improvements in her olive trees, with stronger growth and healthier leaves Encouraged, she spread the word, helping researchers introduce the product to other farmers They reported 32% to 55% higher yields on olives, garlic, tomatoes, potatoes and beans all while using less water Beyond boosting productivity, the mycorrhiza reduces farmers’ dependence on chemical fertilizers, which improves environmental and health outcomes Now, Algeria’s Ministr y of Agriculture has approved the innovation, and start-ups like PLANTAbiotek and Alitech are set to commercialize it, expanding its benefits nationwide and supporting Algeria’s climate and food security goals

This successful collaboration exemplifies Canada’s leadership in advancing sustainable agricultural solutions worldwide demonstrating how research can help farmers build resilience to extreme weather events while strengthening international par tnerships for healthier food systems

“ When they brought me this product and asked me to try it, I used it with my olive trees The results were amazing It made the trees stronger and gave the leaves more life.”

Houaria Boudia, an olive farmer

Scaling future -proofed aquaculture across Southeast Asia

Aquaculture is the fastest-growing food sector globally, providing people with essential protein and livelihoods Yet as climate change intensifies, small- and medium-scale aquafarmers in Thailand and across Southeast Asia and the Pacific region face mounting challenges from warming waters, flooding and shifting ecosystems

To address these vulnerabilities, IDRC and the Government of Canada jointly launched Nature-based Climate Solutions in Aquaculture Food Systems in Asia-Pacific (AQUADAPT ) in 2023, a CAD24-million initiative supporting 11 applied research projects across 10 countries in Asia-Pacific where over 90% of the world's aquaculture is concentrated The program implements practical ecological farming techniques that simultaneously build climate resilience, protect local biodiversity and secure sustainable food production

AQUADAPT's approach combines technological and naturebased solutions with community-based management, integrating traditional farming wisdom with scientific research Farmers are testing innovations such as windpowered aerators to maintain oxygen levels in warming ponds, while also developing shared water resource systems that benefit entire communities The program recognizes that local knowledge, refined through generations of experience, is invaluable in shaping effective climate adaptation strategies

Approximately 100 partner and collaborating institutions, including universities, civil society organizations, governments and private sector partners, are part of the AQUADAPT program, working together to develop practical solutions for partner countries Building on previous IDRC-funded work, the initiative specifically addresses the needs of climatevulnerable communities

An aquafarmer in coastal Vietnam. The AQUADAPT initiative promotes sustainable aquaculture in the Asia-Pacific region and helps develop nature -based solutions and innovations to transform the aquatic food sector.

Through initiatives like AQUADAPT, Canada is extending its leadership in building a sustainable global blue economy supporting innovative, nature-based solutions that protect aquatic resources, strengthen coastal communities and promote climate resilience.

"Thai fish farmers have acquired knowledge of climate problems Knowledge based on experience, not necessarily recorded, not subject to scientific protocol, but valid nonetheless. We've tried to listen as carefully as possible, and to be as humble as possible"

Louis Lebel, project leader, Department of Social and Environmental Research, Chiang Mai University, Thailand

Advancing human rights and legal empowerment

Strong democracies require citizens who can asser t their rights through accessible justice systems When we remove legal barriers and empower marginalized groups, they can fully par ticipate in society and strengthen democratic institutions

Many communities benefit from IDRC-suppor ted research and initiatives that enable communities to challenge discrimination, hold institutions accountable and demand access to essential ser vices

IDRC plays a role in suppor ting democratic thought leadership in exile, helping ensure that researchers, journalists and civil society leaders forced to leave their home countries can continue shaping discussions on governance and human rights. This work provides a vital space for evidence -based policymaking that contributes to long-term democratic resilience

Meanwhile, people increasingly engage in democratic debate, access information and express themselves online. IDRC supports research on digital governance to ensure that online spaces are safe and accessible particularly for marginalized communities By addressing issues like misinformation, privacy and digital inclusion, our work helps protect fundamental rights in an increasingly digital world

Nurturing democratic ideas for the future of Afghanistan

When the Taliban seized control of Afghanistan in 2021, countless scholars and activists were forced to flee their homeland, creating a critical void in discussions about their countr y ' s future While Western voices have dominated conversations about Afghanistan's political direction, human rights and gender equality, the perspectives of Afghan intellectuals themselves have largely gone unheard

The IDRC-supported Afghan Research Initiative aims to address this gap It coordinates university partnerships to support more at-risk scholars and activists in exile The initiative has supported Afghan scholars to carr y out studies, research and advocacy work on a range of issues, such as the provision of humanitarian aid, the impact of university closures and the rights of disabled people in Afghanistan

The program creates a model for preser ving vital knowledge and nurturing future democratic leaders during political crises Canada's leadership in protecting these crucial voices is increasingly important for building a more stable, democratic future.

Strengthening community land rights and women’s ownership in Sierra Leone

In Sierra Leone, large-scale land investments are promoted as a pathway for economic growth But they often disadvantage rural communities especially women who depend on land for their livelihoods

With IDRC support, the NGO Namati has conducted research since 2017 to strengthen land rights, ensure women ’ s participation in decision-making and influence national land reforms The project tested approaches to scaling community land-protection efforts using community paralegals and grassroots legal education to establish transparent land governance structures

The research, reflecting Canada’s commitment to advancing human rights and inclusive governance, examined how land registration processes can protect women ’ s rights and how to ensure women have an equal say in land decisions For example, the research project established village area land committees charged with enforcing rules set by the community, with a requirement that at least 30% of committee members be women Village area land committees was one of the mechanisms piloted in the project that were subsequently included in Sierra Leone’s 2022 Customar y Land Rights Act the first to legally protect community land ownership and enshrine gender equality in land governance

A practical vision for Canada’s global

The shifting global landscape demands a renewed focus on measurable outcomes based on stronger institutions, evidence -based policies and empowered communities worldwide IDRC ’ s contributions influencing public policy, building economic resilience and advancing human rights are an asset to the world, and make it a smar t, for ward-looking investment in Canada’s future

investments

science and evidence that is not only rigorous, but responsive to those most affected By strengthening research capacity where it is needed most, IDRC will continue to turn insights into action, drive sustainable solutions and foster par tnerships that amplify impact

When tomorrow ’ s challenges emerge, our research par tners across the Global South will be equipped with the scientific, technical and problem-solving skills they need to tackle them With this commitment, IDRC will help shape a future where knowledge drives equity, resilience and oppor tunity for generations to come Co n C LU s I o n

As we enter the second half of IDRC ’ s Strategy 2030, our vision of building a more inclusive and sustainable world remains as relevant as ever The challenges that confront the world’s ability to meet that ambition demand

Core business

As a Crown corporation, and par t of Canada’s global affairs and development effor ts, IDRC invests in high- quality research and innovation that transform lives and livelihoods in low- and middle -income countries

Harnessing the power of our unique par tnership network , the research we suppor t creates practical solutions to realworld challenges and helps build more stable and prosperous societies

IDRC ’ s work is directed by the International Development Research Centre Act (1970), which aims “to initiate, encourage, suppor t and conduct research into the problems of the developing regions of the world and into the means for applying and adapting scientific, technical and other k nowledge to the economic and social advancement of those regions ”

In carr ying out its mandate, the Centre:

• provides financial suppor t to researchers in developing countries to address domestic development challenges and contribute to broader global solutions that benefit not only low- and middle -income countries but Canada and Canadians as well;

• facilitates the use and uptake of research, and encourages dialogue and learning between researchers, polic ymakers and private sector actors to improve economic development, advance health, education and food systems, and protect human rights;

• synthesizes and shares results from across its research investments to inform local, regional and global agendas, ensuring that research findings lead to tangible actions in polic y, programs and communities;

• engages, convenes and collaborates with research organizations and funding par tners throughout the innovation process, mobilizing global alliances for impact and extending the reach and influence of Canada’s investments

IDRC receives funding through a parliamentar y appropriation from the Government of Canada to carr y out its mandate These funds, combined with donor contributions, enable the Centre to achieve its mission and objectives.

IDRC ’ s activities are guided by Strategy 2030 a bold and ambitious 10-year agenda that affirms the Centre’s commitment to suppor t more sustainable and inclusive societies in low- and middle -income countries

Triennial reviews of the strategy, the second of which will take place in 2026-2027, provide oppor tunities to reflect on changes in the external environment, progress and challenges, and necessar y adaptations with the goal of improving implementation

Par tnerships

One of our strengths is rooted in our proven ability to mobilize alliances that multiply impact Bringing to the table complementar y exper tise and a unique network of par tners, IDRC contributes to major Canadian government initiatives and helps deliver on common objectives related to Canada’s foreign affairs, trade and development priorities The Centre works closely with Global Affairs Canada and regularly collaborates with other Government of Canada ministries and organizations, such as Canada’s research granting councils

IDRC ’ s approach to par tnering is focused on strategic collaboration with a wide variety of organizations, including government agencies, granting councils, the private sector and philanthropic foundations, in Canada and around the world By mobilizing alliances, the Centre leverages and multiplies the financial resources available for building a future where communities in low- and middle -income countries are self-sufficient, healthy and prosperous In doing so, we promote international stability and build trust and goodwill between Canada and the rest of the world

At 31 March 2025, IDrC had 36 ac tive donor contribution agreements with 14 donors. The value of the donor contributions was $640.6 million.

Programming

IDRC follows a robust process to select funding recipients. Proposals are assessed by exper ts based on scientific merit, development impact and risks Complex projects often involve multiple grantee institutions, and each recipient institution must sign a grant agreement that provides the terms and conditions of funding All grantee institutions are subject to a risk-assessment process that scrutinizes their administrative and financial capacity The release of funds to grantees is based on progress toward research activities and validated through satisfactor y technical and financial repor ts

IDRC ’ s Gender Equality and Inclusion Programming Framework (GEIPF) seeks to ensure gender equality and inclusion are promoted intentionally and systematically across the Centre’s funded programming The GEIPF, updated in 2025, continues to be operationalized through the consultative development and socialization of technical tools, k nowledge - exchange platforms and capacity-strengthening resources

Sharing results from across our research investments informs local, regional and global agendas and suppor ts the application of research findings Known as our k nowledge -sharing functions, this work also strengthens the research capabilities of grant recipients This

component of IDRC ’ s work forms par t of its value to recipients and distinguishes the Centre from other funders where direct funding may not be suppor ted by a comprehensive capacity-building model

Providing local suppor t to enhance research capabilities is an essential element in strengthening par tner relationships and ensuring effective results As such, the employees in IDRC ’ s five regional offices play an integral role in collaborating directly with research institutions in low- and middle -income countries to advance initiatives, enabling a close connection to issues and stakeholders at the local, national and regional levels

Monitoring and evaluation

IDRC uses monitoring, evaluation and learning (MEL) to assess and demonstrate results, learn how research contributes to development, inform decisions and meet accountability requirements As a steward for research and innovation, IDRC believes the way research is evaluated is impor tant for ensuring that it is a positive force for change in the world

The Centre engaged in several key monitoring, evaluation and learning initiatives in 2024-2025 I t updated its approach paper on evaluation, called Evaluation at IDRC, to clearly distinguish the different roles that evaluation plays at IDRC as well as the values and approaches the Centre fosters External evaluation teams have been selected to conduct evaluations of all five programs at the mid-point of Strategy 2030 IDRC completed an evaluation of its Suppor t to the Legal Empowerment Learning Agenda Initiative and six program evaluations were initiated with suppor t from the MEL team In addition, seven MEL capacity-strengthening initiatives were carried out for IDRC employees A Massive Open Online Course on IDRC ’ s work on scaling impact was developed during 2023-2024 and will be finalized and launched on the SDG Academy platform in 2025

Learning:

• for program improvement

• to inform decisions

• to generate new k nowledge

Achieve, assess and demonstrate R E S U LTS

Accountability:

• transparenc y

• enables feedback and par ticipation

Corporate governance

The Board of Governors

The Board of Governors is responsible for the stewardship of the Centre: it provides strategic guidance to management and oversees the activities of the Centre The board acts and conducts its business in accordance with the IDRC Act, the IDRC General By-Law and within a governance framework based on other applicable legal rules, policies and governance best practices The Char ter of the Board of Governors details the roles, responsibilities, authorities and governance practices of the board and its committees

The Board of Governors carries out its responsibilities in accordance with the highest standards of ethics, integrity, transparenc y and professionalism The standards of conduct for governors in carr ying out their responsibilities and the exercise of their function are defined in the IDRC Board Code of Conduct, which members ack nowledge on an annual basis In accordance with the IDR C Board Conflict of Interest Guidelines, governors must declare any potential conflict of interest at the beginning of each meeting Governors, like all employees at IDRC, are also expected to adhere to the values and behaviours outlined in the Government of Canada’s Values and Ethics Code for the Public Sector in all activities related to their professional duties

Membership

The composition of the Board of Governors is defined within the IDRC Act, which allows for a balance between Canadian and international representation on the board While a majority of the members must be Canadian, the board’s international representation is impor tant to the Centre It enables the board to have a viewpoint on the issues and needs of people and communities in low- and middle -income countries, thereby suppor ting the continued relevance of the Centre’s programs to the developing world

The chairperson and the president are appointed by the Governor in Council to hold office for terms of up to five years All other governors are appointed for terms of up to four years Governors are appointed by the Governor in Council following an open, transparent and merit-based selection process

IDRC’s Board of Governors

(as at 31 March 2025)

DOROTHY NYAMBI

Chairperson, Ancaster, Ontario

NURJEHAN MAWANI

Vice -Chairperson, Vancouver, British Columbia

JULIE DELAHANT Y President, Ottawa, Ontario

AK WASI AIDOO

Gastonia, Nor th Carolina, USA

ALEX AWITI

Nairobi, Kenya

PURNIMA MANE

San Mateo, California, USA

BESSMA MOMANI

Kitchener, Ontario

GILLES RIVARD

Mont-Tremblant, Québec

HILARY ROSE

Sher wood Park, Alber ta

STEPHEN TOOPE

Toronto, Ontario

Function of the board

The board held three meetings in 2024-2025

The board functions through standing committees Each committee has its own terms of reference and ser ves to address issues that require specific exper tise This structure allows for detailed advice to be provided to the entire board on decision points concerning respective committees’ areas of competence

IDRC has four board committees (as at 31 March 2025)

The Executive Committee (convened four times in 20242025) ensures that the business of the board is carried out between meetings as necessar y It is also responsible to ensure that the board has a sound approach to corporate governance and is functioning effectively.

The Finance and Audit Committee (convened five times in 2024-2025) provides oversight responsibilities with respect to financial management and repor ting, internal audits, risk management and internal controls, the annual audit of the financial statements conducted by the Office of the Auditor General, and standards for integrity and behaviour

The Strategy, Program Per formance and Learning Committee (convened four times in 2024-2025) suppor ts the board in fulfilling its oversight and foresight responsibilities with respect to strategic and annual planning and per formance monitoring

The Human Resources Committee (convened three times in 2024–2025) suppor ts the board in fulfilling responsibilities with respect to the application of sound human resource policies and practices that suppor t the Centre’s mission and mandate.

Compensation

Compensation for governors is set according to the Government of Canada Remuneration Guidelines for Par t-time Governor in Council Appointees in Crown Corporations as follows:

• per diem range for board chairperson and governors is $360–$420

• annual retainer range for committee chairpersons is $4,600–$5,400

• annual retainer range for the chairperson is $9,200–$10,800

Centre executives (as at 31 March 2025)

JULIE DELAHANT Y President

MAGGIE GORMAN VELEZ

Vice -President, Strategy, Regions and Policy

SANTIAGO ALBA CORRAL

Vice -President, Programs and Par tnerships

GENEVIÈVE LEGUERRIER

Vice -President, Resources, and Chief Financial Officer

Board secretary (as at 31 March 2025)

SANDEEP PRASAD, Corporate Secretar y

Regional direc tors (as at 31 March 2025)

K APIL K APOOR

Asia Regional O ffice

MARIE-GLORIOSE INGABIRE

Central and West Africa Regional O ffice

FEDERICO BUR ONE

Latin America and Caribbean Regional O ffice

WESSAM EL BEIH

M iddle East and Nor th Africa Regional O ffice

K ATHRYN TOURE

Eastern and Southern Africa Regional O ffice

Transparenc y and accountability

IDRC is accountable to Parliament and all Canadians for its use of public resources The Centre provides information on its program impacts and details on compliance with key legislative requirements on its website, in repor ts to Parliament and through an open forum for discussion on its operations at its Annual Public Meeting.

The Centre publishes the travel and hospitality expenses of its senior executives and governors in accordance with the Access to Information Act and submits annual repor ts to the M inister of Public Safety on its compliance with the Fighting Against Forced Labour and Child Labour in Supply Chains Act These repor ts and additional financial and corporate repor ting, which are done to ensure compliance with federal requirements for Crown corporations, are available online at https://idrc- crdi.ca/en.

As a research organization, IDRC publishes the products and results of our funded research in line with our open access policy. This approach is based on the belief that full social and economic benefits of research in suppor t of development should be available to ever yone who could use it and build on it to improve people’s lives IDRC ’ s open access policy is consistent with the broader movement toward open access, suppor ted by research funders and governments, including the Government of Canada, as a way to increase transparency, accountability and efficiency

Financial resources

The Centre derives the majority of its revenue from a parliamentar y appropriation and donor contributions The parliamentar y appropriation is the main source of revenue and allows the Centre to carr y out its mandate It includes a recurring por tion and a non-recurring por tion that fluctuates as parliamentar y transfers are agreed with other federal government organizations The total amount of the parliamentar y appropriation recognized for 2024–2025 was $161 5 million, which represents 56 3% of IDRC ’ s revenues IDRC enters into co-funding agreements with donors who provide funding for the purpose of collaborating on projects and programs of common interest and that fall within the Centre’s mandate This source of funding is categorized as donor contributions and represents 41 9% of IDRC ’ s revenues

Contributions arising from co-funding agreements are accounted for as donor contribution revenues In 2024-2025, the value of signed multi-year co-funding agreements was $94 0 million

As par t of the co-funding agreements, IDRC recruits exper ts in specific research areas to work on co-funded projects and programs As such, a por tion of IDRC ’ s workforce is funded via funds received from donors During 2024-2025, a total of 52 positions were funded by donors

The Centre further leverages donor funds by combining these with those of other partners that provide funds directly to recipients, thereby increasing the total funding available for these projects (referred to as parallel funding) In 2024-2025, $6 6 million of parallel funding was generated, bringing total external contributions to IDRC-funded projects to $120 9 million

Financial accountability and sound financial management

IDRC ’ s financial management framework is robust, which ensures appropriate allocation and management of funds entrusted to IDRC From the preparation of a rigorous budget to regular monitoring and analysis of financial results and continuous forecasting, the framework ensures that financial resources are used for their intended purpose and contribute to achieving the Centre’s mission and vision

Management monitors key financial indicators and variables that impact the level of resources available for research in future years, including outstanding commitments, expenditure patterns on new projects and the level of administrative expenses Tracking these indicators ensures that financial management and planning is exercised with the utmost prudence and diligence regarding public funds while achieving IDRC ’ s goal of being a fit-for-purpose organization

Sustainable and inclusive organization

As par t of Strategy 2030, IDRC made a strong commitment to being a sustainable and inclusive organization

A focus on the environment

With this commitment, IDRC is working to reduce the greenhouse gas emissions associated with its operations, with the goal of achieving net-zero emissions by 2050. Several initiatives have been implemented, such as sustainable aviation fuel par tnerships with airlines, and others are in development, such as a sustainable travel policy See the Climate -related financial risk disclosures section on page 32 for more details

Focus on people and talent

IDRC ’ s success relies on employing a workforce that is committed, innovative and engaged The Centre actively nur tures a healthy and effective workplace that provides employees with oppor tunities to build the exper tise, skills and capacities they need to excel The work carried out by IDRC employees is guided by meaningful culture and values statements

excerpt from IDrC’s Culture statement:

IDRC’s diverse talent is the key to its success

We strive to achieve a more sustainable and inclusive world respecting all individuals and being intentional in our actions and accountable in our work and in our relationships

excerpt from IDrC’s values statements:

At IDRC we are respectful, intentional and accountable

• We treat all individuals with respect

• We are intentional in our work to make a difference around the world

• We under take to be accountable in our work and in our relationships

IDRC champions professional growth and wellbeing among its employees by creating an environment that makes ever yone feel valued Wellness programs with access to mental health resources and confidential suppor t ser vices are offered, while staff are encouraged to pursue learning and development oppor tunities such as leadership programs, conferences, language training and mentorship to enable each individual to grow A temporar y Mental Health Committee, composed of representatives from across the Centre, was set up to provide recommendations to management for improving IDRC ’ s approach to employee wellbeing IDRC strives to have a diverse workforce with representation from varied cultural and ethnic backgrounds

Workforce diversity :

• 68% women

• 33% members of visible minorities

• 0% Indigenous Peoples

• 18% persons with disabilities

(as at 31 December 2024; as per repor ting to the Labour Program of Employment and Social Development Canada, only Ottawa-hired staff positions are included )

governance practices and contributes to maintaining the public trust in IDRC All IDRC ’ s employees reaffirmed their commitment to the Code of Conduct as par t of the exercise conducted yearly

Effor ts under taken to enhance our processes and practices aimed at fostering a diverse and inclusive workplace include the organization of unconscious bias training for staff and the introduction of diverse hiring panels The Centre’s first-ever Accessibility Plan, published in 2022, outlines a set of initiatives to improve accessibility and enhance the experiences of all stakeholders and employees, including people with disabilities Plan measures implemented thus far include the provision of accessibility training for all staff, the completion of a comprehensive accessibility audit of our website, and office enhancements such as barrier-free washrooms, wide walkways and sliding doors to improve mobility IDRC will continue effor ts to increase representation of all underrepresented groups within our staffing community, as well as investing in effor ts to ensure that all employees feel welcomed, suppor ted and provided with the suppor t needed to thrive in the workplace

In 2024-2025, IDRC deepened its commitment to Indigenous reconciliation through a series of strategic actions. A key milestone was the establishment of the Indigenous Action Work ing Group to guide the development of inclusive institutional policies and practices I ts aim is to strengthen suppor t for Indigenousled research and foster respectful, mutually beneficial relationships with Indigenous Peoples, researchers and organizations This work builds on a por tfolio of programming that suppor ts Indigenous k nowledge systems worldwide A refreshed employee Code of Conduct was launched in 2024 The Code of Conduct is an essential component of the Centre’s corporate

IDRC is committed to upholding high ethical standards in its policies, programs and daily activities, with zero tolerance for inaction against sexual exploitation, abuse and harassment The Preventing and Responding to Sexual Exploitation Abuse and Harassment Policy is central to these effor ts, aiming to protect vulnerable individuals, prevent abuses of power and ensure accountability To suppor t this commitment, IDRC has launched a platform and hotline for confidential repor ting of unethical conduct related to its mandate and activities

Risk management

The Centre is committed to implementing a continuous, proactive and systematic approach to risk management The ultimate purpose of IDRC’s risk management is the protection of IDRC’s assets and successful mandate delivery

IDRC’s risk-management processes and practices are based on guidelines published by two international bodies that foster sound and prudent risk-management practices: the International Organization for Standardization (ISO 31000:2018) and the Committee of Sponsoring Organizations (COSO 2017). IDRC’s risk-management processes and practices are also aligned with the Treasury Board of Canada’s Framework for the Management of Risk The guidance provided by these entities has been customized to the Centre’s needs and context

IDRC’s mandate, international network and the complex environments in which the Centre operates expose it to a wide range of risks. IDRC applies various controls and strategies to adequately manage risk and, in addition to the annual audit conducted by the Office of the Auditor General, uses the Institute of Internal Auditors’ three-line model for its internal control framework

• First line role: Management leads and directs actions and application of resources to achieve objectives, ensures compliance with legal, regulatory and ethical expectations, and establishes and maintains appropriate structures, internal controls and processes for the effective management of operations and risk on a day-today basis

• Second line role: risk management provides leading expertise, complementary support, monitoring and a challenge function related to the management of risk through the analysis of the adequacy and effectiveness of risk management and the continuous improvement of risk-management practices at a process, systems and entity level

• Third line role: Internal audit maintains primary accountability to the Board of Governors and independence from the responsibilities of management and communicates objective assurance and advice to management on the adequacy and effectiveness of governance, risk management and controls to support the achievement of organizational objectives and to promote continuous improvement

IDRC evaluates and monitors various types of risks related to diverse areas of the Centre’s business activity (i e , financial, reputational, programmatic) The formal and structured risk assessment at the corporate level ensures that the total portfolio of IDRC’s risks is considered To ensure effective management of risks, IDRC’s risk-management principles, practices and accountabilities are integrated at all levels and across the Centre They are designed to identify opportunities that may enhance, as well as threats that may hinder, the achievement of established objectives, and to manage both within acceptable risk levels

In March 2025, the Board of Governors reviewed key corporate risks, namely reputation, funding, cybersecurity and wellbeing, that were identified through a comprehensive Centre-wide assessment process Appropriate controls and strategies to mitigate those risks will be implemented throughout the year The evolution of IDRC’s risk exposure is continuously monitored and risks with an increasing trend are escalated for additional review and action as required

Internal audit

I nternal audit is a key element within IDRC ’ s accountability structure I t strengthens IDRC ’ s ability to create, protect and sustain value by providing the Board of Governors and management with risk-based, independent and objective assurance, advice, insight and foresight I t also improves the effectiveness of risk management, control and governance processes, which suppor ts management ’ s effor ts in the achievement of IDRC ’ s mission and strategic objectives, enhances

decision-mak ing and oversight and strengthens overall reputation and credibility with stakeholders To provide for the independence of the internal audit function, the chief audit executive repor ts functionally to the Finance and Audit Committee of the Board of Governors and administratively to the president The purpose, authority and independence, responsibilities, scope of work and professional standards for internal audit are defined in the board-approved I nternal Audit Char ter, published on IDRC ’ s website

Results and outlook

Per formance indicators

Per formance indicators allow the Centre to monitor its per formance and identify areas where corrective measures must be taken IDRC uses per formance indicators to ensure the Centre is on track to meet its budget and the organizational objectives as outlined in Strategy 2030

Research project expenses compared to budget

Research project expenses are carefully monitored, given they represent IDRC ’ s largest expense and are the primar y means by which IDRC fulfills its mandate At 31 March 2025, the overall research project expenses amounted to $226 2 million, or 104 5% of a budget of $216 4 million The research expenses funded by parliamentar y appropriation are above budget mostly due to earlier-than-expected submission of satisfactor y grant deliverables from recipients, which led to earlier disbursement in grant payments This increase is par tly offset by lower expenses in research expenses funded by donor contributions, resulting from a change in the classification of the Nature -based Climate Solutions in Aquaculture Food Systems in Asia-Pacific (AQUADAPT ) par tnership which is accounted for as funded by parliamentar y appropriation rather than donor contributions (see Figure 1)

Program allocations

Program allocations represent funds approved for new research projects with disbursements occurring over multiple years As funds must be allocated before they can be committed and then expensed, program allocations represent a leading indicator for research project expenses, the Centre’s largest expenditure Allocations can be funded by parliamentar y appropriation alone or through a combination of parliamentar y appropriation and donor contributions

Allocations funded by parliamentar y appropriation of $124 4 million are consistent with the budget of $124 3 million at 31 March 2025 Allocations funded by donor contributions of $114.3 million are higher than the budget of $94 2 million (see Figure 2) The variance is mostly related to the timing of allocations in the Advancing Research for Climate and Health (ARCH) initiative and the Ar tificial Intelligence for Development (AI4D) program

Corporate and administrative expense ratio

IDRC continuously ensures that the majority of funds received goes towards directly fulfilling its mandate Consequently, IDRC monitors its corporate and administrative expense ratio (i e , corporate and administrative expenses as a percentage of total expenses) to ensure it is operating efficiently and providing maximum value for its stakeholders The actual corporate and administrative expenses increased in 2024–2025, mostly due to planned salar y increases and higher technological costs, such as the regular laptop refresh (refer to Table 1 for more details on the variance). The percentage of corporate and administrative expenses for the year ending 31 March 2025 decreased to 8 9% (compared to 9 5% for the year ending 31 March 2024) due to higher overall expenses (primarily research project expenses) for the year ended 31 March 2025, compared to previous years IDRC ’ s corporate and administrative expenses are within the desired target range of 8% to 11% (see Figure 4)

Investment in learning and professional development

IDRC requires highly sk illed employees to under take the work required to deliver on its mandate Therefore, it is impor tant that the Centre continually invest in learning and development to ensure employees develop and maintain the sk ills required for IDRC to succeed in a rapidly changing world

The Centre invested 1 1% of its payroll in employee learning and professional development during the year ended 31 March 2025, slightly higher than the target of 1 0% This is a positive development since employee learning and professional development was below target during the 2023-2024 financial year Management encourages employees to avail themselves of training oppor tunities given the need to keep up with rapid technological changes and build new sk ills to respond to changes in IDRC ’ s operating environment (see Figure 3)

O verall financial summar y

The 2024-2025 financial year was a year of growth as research project expenses and related revenues from donorfunded projects were higher than in the previous financial year due to the life c ycle of the second phase of two significant ex ternally funded programs, namely, the Climate Adaptation and Resilience (CLARE) program and the K nowledge and I nnovation Exchange (KIX) program

The research project expenses funded by parliamentar y appropriation also increased given the level of research

TABLE 1: sUMMArY of eXpenses AnD revenUes

($000)

program allocations for 2024-2025 and the prior financial years These funds are used to invest in high- quality research in developing countries, thereby building a more sustainable and inclusive world

Expenses of $301.8 million ($254.9 million in 2023–2024)

Revenues of $286.9 million ($254 8 million in 2023–2024)

The net result of operations does not consist of an operating deficit but is rather a reflection of the inherent variability associated with research project milestones

The net result of operations was par tially offset by the funds set aside in reser ved equity, which were used for their intended purpose, i e , to absorb fluctuations in the disbursement of outstanding research program commitments

Year-over-year increase of $10 4 million is due to higher expenses in both the Catalytic Fund, as well as the IDRC por tion of several large, multi-year programs such as the Innovative Veterinar y Solutions for Antimicrobial Resistance (InnoVet-AMR) initiative, the AI4D program and phase II of the CLARE initiative The Catalytic Fund enables IDRC to respond rapidly to strategic oppor tunities and explore emerging regional, thematic and cross-cutting research issues The increase is par tly offset by lower expenses for the Women RISE initiative, which is ramping down as it reaches its conclusion

Year- over-year increase of $29 5 million is mainly due to programming activities pick ing up in relation to large programs such as phase II of the CLARE initiative, the AI4D program and phase II of the InnoVet-AMR initiative

Year- over-year increase is primarily due to salaries and benefits resulting from planned salar y increases and more travel activities to suppor t research projects, par ticularly within large co-funded research programs

Year- over-year increase due to salaries and benefits (primarily as a result of planned salar y increases and lower vacancies), higher software expense costs (due primarily to inflationar y increases and exchange rate fluctuations) and the head office regular laptop refresh These are par tly offset by reductions in professional ser vices consistent with the Government of Canada’s goal to reduce spending in this categor y

Year- over-year increase in revenues is mostly due to higher donor contributions The increase is par tly offset by lower parliamentar y appropriation Fur ther rationale for these changes is provided in the Revenues section

Expenses

The Board of Governors approved the 2024–2025 budget prior to the star t of the financial year The results from this exercise are incorporated throughout the annual repor t ’ s Management ’ s discussion and analysis

IDRC repor ts expenses under two principal headings: development research programming and corporate and administrative ser vices The direct costs of ongoing scientific and technical research projects that the Centre funded in development research programming are presented by source of funding (see Table 1) Most of these projects are carried out by independent institutions with the suppor t of research grants Projects also include research activities under taken by individuals with the suppor t of individual training grants, scholarships, fellowships, internships and individual research and research-related grants Research project expenses fluctuate annually based on the project por tfolio

Research project payments are based upon the recipient ’ s progress on research activities and the submission of satisfactor y grant deliverables As such, research project payments may sometimes be delayed or occur sooner than originally planned

Development research programming includes enhancing research capabilities, which is an impor tant k nowledge -sharing function that is central to IDRC ’ s business and overall corporate per formance

Corporate and administrative ser vices provide a variety of functions that suppor t the Centre’s overall operations and corporate responsibilities These expenses include ser vices such as information governance and digital solutions, human resources, finance and administration, legal, risk management and internal audit

The table below presents actual expenses by categor y against budget for the 2024-2025 financial year and a year- over-year comparison of expenses

Budget variance as a result of increased research project expenses funded by parliamentar y appropriation Research project expenses in this categor y were higher than budgeted due to grant payments planned for 2025-2026 being issued earlier given receipt of acceptable project deliverables as well as project expenditure patterns being higher than originally planned

Year- over-year increase is due to increases in both research expenses funded by parliamentar y appropriation and research expenses funded by donor contributions Refer to Table 1 above for more details

Budget variance is mostly due to shor ter staffing gaps than anticipated as well as greater use of temporar y resources to suppor t the operations of the Centre

Year- over-year increase is mostly due to planned salar y increases and fewer vacant positions

Budget variance mostly related to greater consulting ser vices to suppor t the advancement of key initiatives related to digital solutions and information governance as well as legal advice on operational matters

Year- over-year decrease is consistent with the Government of Canada’s goal to reduce spending in this categor y

Budget variance due to a lesser need to travel than originally planned at the time of budgeting, which is influenced by the Government of Canada’s goal to reduce spending in this categor y and the Centre’s commitment to reduce its carbon footprint

Year- over-year increase due to an increase in face -to-face meetings linked with increased research project activities and their associated complexity, as well as the Board of Governor ’ s field visit to Latin America to meet with research par tners and stakeholders

Year- over-year and budget variance are mostly due to foreign exchange losses Accommodations software

Budget variance is due to utility payments, maintenance and proper ty taxes for office premises being lower than anticipated at the time of budget preparation

Year- over-year increase is primarily due to new lease agreements in the regional offices in India, Uruguay and Jordan signed during the 2023-2024 financial year

Year-over-year and budget variance are due to higher costs in maintenance, user fees, licence costs, annual subscription fees and suppor t including Software as a Ser vice; these are primarily due to inflationar y increases and exchange rate fluctuations

Year- over-year and budget variance are mostly due to the 2024–2025 head office and regional office laptop refresh

Year- over-year increase is due to amor tization of leasehold improvements that were made during the 2023–2024 financial year at the regional offices in India, Uruguay, Jordan and Senegal

The Centre often combines donor funds (pursuant to a cofunding agreement) with parliamentar y funds to amplify funding arrangements with donors In 2024-2025, IDRC contributed $24 9 million of its internal funds towards agreements linked to donor contributions This represents 24 9% of the total Parliament-funded research project expenses (see Figure 5)

IDRC divides its research project expenses by program based upon needs at the time that funding is allocated In 20242025, the Centre’s largest expenses were in the Education and Science program, followed by the Climate -Resilient Food Systems program (see Figure 6)

and Science

Food Systems

Global Health

Sustainable Inclusive Economies

Democratic and Inclusive Governance

Catalytic Fund

Revenues

IDRC ’ s revenues include a parliamentar y appropriation, donor contributions and revenues from other sources

The parliamentar y appropriation funding is par t of Canada’s international assistance envelope and allocated to the Centre to suppor t the deliver y of its mandate IDRC also receives donor contributions to research programs or specific projects, which are recognized as donor contribution revenue over the life of the co -funding

agreement when the related expenses are incurred. Consequently, while projects funded by donor contributions significantly contribute to advancing the Centre’s mandate, their impact on net results and year- end equity is limited

The table below presents actual revenues against budget for the 2024-2025 financial year, and a year- over-year comparison of revenues

Year-over-year decrease reflects the reduction announced by the Government of Canada relating to the Refocusing Government Spending initiative

Budget variance is due to $3 7 million relating to a transfer from Global Affairs Canada for AQUADAPT in suppor t of Canada’s climate finance targets, and a $1 0 million transfer from the Canadian Institutes of Health Research (CIHR) to suppor t sexual and reproductive health and rights research in sub-Saharan Africa These are par tly offset by lower revenue recognition of $1 1 million relating to transfers from CIHR and the Social Sciences and Humanities Research Council to suppor t women ' s health and economic wellbeing for a post-COVID-19 recover y

Year-over-year decrease of $3 4 million is mostly due to the lower revenue recognition relating to transfers to suppor t women ' s health and economic wellbeing for a post-COVID-19 recover y and a one -time adjustment of $1 7 million relating to the funding for compensation adjustments that occurred in 2023–2024 These decreases are par tially offset by the transfer to suppor t sexual and reproductive health and rights research in sub-Saharan Africa, and the revenue recognition relating to a transfer to suppor t a vaccine clinical trial against the Sudan Ebola virus The balance is from annual non-recurring transfers from other government organizations

Budget variance is mostly related to change in the classification of the AQUADAPT par tnership, which is accounted for as a parliamentar y transfer rather than a donor contribution as originally budgeted This variance was par tly offset by expenses relating to the Advancing Research for Climate and Health initiative signed late in 2023–2024 Donor contributions are received in advance and recognized as revenue when the related project expenses are incurred The fact that payments did not occur as per the projected timing, especially in large and complex multi-year programs, reflects the inherent unpredictability related to the conduct of research activities

Year-over-year increase is mostly due to the project c ycles of phase II of the CLARE program, the AI4D program and the second phase of Innovet-AMR Donor contribution revenues fluctuate year- over-year based on the project por tfolio These fluctuations are linked to the phase in the life c ycle of the programs

Budget variance is due primarily to foreign exchange

IDRC par tners with external donors to under take high-value research projects that allow it to fur ther its mandate These par tnerships are amplified by combining donor funds with IDRC ’ s own internal funds, resulting in projects that deliver a greater impact IDRC ’ s funders include bilateral aid organizations, philanthropic foundations, emerging development research funders in the Global South and private -sector actors. IDRC ’ s largest donors in 2024-2025 were foreign bilateral agencies and the Global Par tnership for Education (see Figure 7)

a Expended on development research programming and administrative costs

Financial position

The majority of the Centre’s assets consists of cash and investments derived from the c ycle of funding received from donor contributions Liabilities contain a large

TABLE 4: A s s e T s

)

Total assets decreased by 11% to $121 7 million (from $136 7 million as at 31 March 2024) Cash balances decreased primarily due to an increase in expenses The decrease in accounts receivable and prepaid expenses is mostly the result of a donor contribution and one investment, both receivable as at 31 March 2024 The Centre invests excess

TABLE 5: L I A B I L I T I e s

)

Total liabilities decreased by 0 2% to $119 3 million (from $119 5 million as at 31 March 2024) This is primarily due to a lower balance of lease liabilities as lease payments reduce this carrying value. This decrease is partly offset by higher deferred revenue The employee benefits amount shown in

por tion of deferred revenue, which represents donor funds received but not yet recognized as revenue

liquidities not required in the short-term to earn higher interest earnings than can be generated in bank accounts The investments consist of bonds and guaranteedinvestment certificates (refer to Note 3 of the financial statements).

Table 5 represents the non-current portion; the current portion is included within accrued liabilities

IDRC’s equity consists of four classes: restricted, reserved, unrestricted and net investments in capital assets The equity amount in each class is established in accordance with the Centre’s equity policy

TABLE 6: e Q U I T Y

The negative balance of $7.0 million in unrestricted equity represents the residual balance of equity after the allotments to restricted and reserved equity This balance reflects all variances from expenses and revenues The negative balance at 31 March 2025 is due to the research project expenses exceeding the annual budget by $9 8 million

Restricted equity is stable at $1 3 million and represents funds received as bequests and donations to be used to support young researchers through fellowships, scholarships or internships

The $8 1 million net investments in capital assets relate to the portion of the equity representing IDRC’s net investments in capital assets The balance increased by

$0.5 million year-over-year as capital asset purchases exceeded amortization and depreciation, due to expenses for computer equipment and communications systems (see Table 7)

The reserved equity is intended to be used to absorb fluctuations in the disbursement of outstanding research program commitments, which are dependent on the performance of recipients, and to fund future purchases of property, equipment, intangibles and future initiatives. At 31 March 2025, the balance is nil as the reserve was used to absorb fluctuations in the disbursements of outstanding research project commitments The reserved equity will be replenished during the first quarter of 2025-2026

O ther key financial information

Figure 8 shows the value of outstanding commitments on research projects for five financial years, as well as the projected value for the 2025–2026 financial year

Historical review and future outlook

IDRC conducts forward-looking financial planning using conservative assumptions for both revenues and expenses, while maintaining a focus on maximizing parliamentaryfunded project funding. Management will continue to focus on handling operational expenses to meet organizational needs under Strategy 2030, while ensuring the efficient use of financial resources to create impact and add value The 20252026 budget was prepared with a focus on establishing the necessary financial, human and technological resources required to advance in the achievement of the objectives set out in Strategy 2030, deliver the Centre’s programs as well as meet the deliverables of the corporate priorities and divisional workplans The budget also reflects the adaptive changes to the organization structure that aim to enhance IDRC’s capacity to meet future challenges and achieve our existing priorities They are designed in recognition of the need to support new ways of working that foster greater collaboration and coordination among all areas of the Centre and put increased emphasis on integrity and compliance

The budget was prepared in the context of the Budget 2023 announcement about the Government of Canada’s initiative to bring government spending back to a pre-pandemic level;

As at 31 March 2025, the Centre is committed to disbursing up to $329 5 million for development research programming activities It is anticipated that the funds will be disbursed over the next six years The increase in 2025–2026 is attributable to previous year allocations, which is driven by upcoming milestones and will reduce as milestones are achieved and payments are released These commitments are subject to funds provided by Parliament and by donors on co-funded agreements They are also subject to the compliance of recipients with the terms and conditions of their grant agreements

2025-2026 is the second of three years covered by this initiative These reductions, which represent approximately 3% of the Centre’s recurring parliamentary appropriation, will continue incrementally until 2026-2027 The Centre’s reduction targets will be applied to both research and operational expenses; reductions should be made against the baseline year of 20232024 The reduction in research expenses will impact the level of funds available for new research projects in future years (future program allocation budgets) The reductions in operational expenses will be mainly applied to travel and professional services, as these are the areas of expenses that the Government of Canada is hoping to reduce by the year 20262027 The Centre began making reductions in these areas in 2024–2025 as a first step to achieving this goal The Centre is on track to reach the reduction target with the cumulative spending cuts compared to the baseline year of 2023-2024.

Table 8 provides a historical review of IDRC for the last five financial years for the expenses and revenues found on the Statement of Comprehensive Income, as well as information on program allocations and outstanding commitments It also presents the financial outlook, providing an overview of the expenses, revenues, allocations and equity forecasts for the 2025-2026 financial year

a The amount was adjusted to reflect the 2021–2022 presentation

The figure below shows the status of donor contributions as at 31 March 2025 and distinguishes revenue already recognized versus future revenue

As at 31 March 2025, IDRC manages co-funding agreements valued at $640.6 million. Of this amount, $336.4 million has been recognized as revenue This leaves a balance of $304 2 million, which represents donor contribution revenue for the next three to six years Signing new co-funding agreements in the future would replenish this revenue source

Climate -related financial risk disclosures

IDRC is committed to identifying, evaluating and managing climate-related risks and opportunities across its operations and initiatives Recognizing that both the transition to a lowcarbon economy and the increasing severity of climate threats could impact the sustainability of its work, the Centre is proactively addressing these risks and opportunities from both operational and strategic perspectives

In 2023-2024, IDRC initiated its annual reporting on climaterelated financial risks, aligning with the recommendations of the Task Force on Climate-related Financial Disclosures ( TCFD), established by the International Financial Stability Board in 2015 This reporting also aligns with the Government of Canada’s directive requiring Crown corporations with less than $1 billion in assets to adopt TCFD recommendations and begin reporting on climate-related financial risks for financial years starting in 2024

Forward-looking statements

The public communications in this section may contain forward-looking information These statements may include, but are not limited to, discussions of strategies, plans or future initiatives. By nature, forward-looking statements are based on assumptions and are subject to significant risks and uncertainties They should not be relied upon, as external events and general uncertainties may evolve Actual results could differ significantly from those expressed in forwardlooking statements due to various factors, including those outlined in this section

Assumptions and external factors

IDRC’s progress toward its environmental, social and governance (ESG) goals, including reducing greenhouse gas (GHG) emissions and achieving net-zero emissions, depends on various assumptions and external influences These factors include the transition to a low-carbon economy, data availability, technological advancements, risk-management practices, regulatory changes, economic conditions, climaterelated impacts, environmental data collection, timely implementation of initiatives and compliance by third parties

While these assumptions were considered reasonable at the time of reporting, they are not guarantees Readers are advised to interpret them with caution, as various risk factors may result in actual outcomes differing from those outlined tion

mate-related risk-management framework tes the following four core elements:

The following section outlines the steps that IDRC is taking to incorporate climate considerations across these four categories, identifying where climate is considered in existing frameworks as well as where additional measures have been established

governance

IDRC ’ s Board of Governors provides guidance on the organization’s strategic direction The board’s Executive Committee is responsible for the governance of the Centre’s ESG effor ts, including its environmental pillar

Within the executive leadership and management team, IDRC ’ s president, who is also a member of the Board of Governors, is responsible for managing the Centre’s ESG strategy The vice -president, resources and chief financial officer, directs the ESG program, oversees the development of the ESG framework and presents ESG results to the Centre Management Committee, composed of IDRC ’ s senior staff members

On behalf of the Centre Management Committee, the president and the vice -president, resources and chief financial officer, provide regular updates to the board’s Executive Committee regarding the direction and strategy pursued by the Centre to address climate -related risks and oppor tunities

strategy

For over half a centur y, IDRC has championed and funded research and innovation to drive global change The Centre’s dedication to these goals was renewed with Strategy 2030, which identifies inequality and climate change as major barriers to achieving the Sustainable Development Goals (SDGs) It ar ticulates a vision for how IDRC uses its deep-rooted experience and broad networks to foster global scientific collaboration and take decisive action to overcome barriers to sustainable development Through Strategy 2030, IDRC is dedicated to driving innovation and promoting knowledge -sharing, establishing the Centre as a key player in advancing sustainable and inclusive growth globally IDRC is proud to be a leader in funding climate -related research in low- and middle -income countries with like -minded par tners who are also pursuing meaningful change

risk management

At IDRC, strategic risk management means proactively engaging with key stakeholders, broadening the Centre’s research strategies to include more climate -related topics and adjusting its funding models to meet evolving priorities IDRC is also dedicated to bolstering its operational capabilities and the wellbeing of its employees in response to climate challenges

IDRC ’ s ESG program has initiated a focus on climate -related risks, with leaders and employees committed to a proactive, continuous and systematic approach to identifying, assessing and managing these risks This was integrated into the Centre’s enterprise risk-management framework in 2024–2025.

As climate change challenges continue to grow both globally and locally, IDRC has identified key climate -related risks and oppor tunities that could significantly affect its operations and strategic goals In accordance with the

C L I MAT e - r e L AT e D r I s K s

Operational risks

Organizational reputation

Research and programming risks

Research strategy

Funding and par tnerships

Research funding

TCFD framework, these are categorized into transition risks (which relate to the shift towards a lower-carbon economy) and physical risks (which involve the direct impacts of climate change, such as extreme weather events, rising sea levels and shifts in temperature and precipitation)

The Centre’s Board of Governors oversees the broader Enterprise Risk Management Framework, which assesses these risks as outlined in the risk-management section of this annual repor t

IDRC ’ s strategy addresses the potential impact of these risks on its operations, research initiatives and funding mechanisms and outlines effective measures to mitigate the risks while capitalizing on emerging oppor tunities

Recognizing and evaluating these oppor tunities is crucial for IDRC as it continues to fund research that suppor ts work in areas such as climate resilience and adaptation

The tables below provide a guide on how IDRC plans to navigate these complexities

Description and potential impacts

Failing to place sufficient organizational emphasis on managing climate -related issues to respond to stakeholders’ priorities could potentially impact organizational reputation and impede on the core objective of mobilizing alliances for impact

Research strategies need to position climate and related topics more broadly across all five program areas, as both the potential increase of physical climate impacts and prioritization of climate -related research among stakeholders could affect existing strategies

Funding par tners may fur ther increase their prioritization of climate -related issues, and IDRC should seize these oppor tunities to expand par tner funding and fur ther advance on its core objective of mobilizing alliances for impact

Risk mitigation

Management prioritizes strategic exchanges with stakeholders from the O ffice of the M inister of Foreign Affairs, O ffice of the Secretar y of State for I nternational Development, Global Affairs Canada, parliamentarians and other key government stakeholders to build suppor t and understand emerging budgetar y dynamics

IDRC management and the Board of Governors, through the Strategy, Program Per formance and Learning Committee, review programming priorities for each program division to monitor climate -related impacts on ongoing and future research funded by IDRC and make the appropriate changes

1) The Funding Partnerships Strategy is in place and outlines IDRC’s approach to engagement with existing and prospective funding partners in support of programming 2) The Centre is standing up a new division that is focused on fur ther leveraging alliances and funding par tnerships

P HYS I C A L R I S K

Operational risks

Employee wellbeing

Description and potential impacts

IDRC employees from each region could face risks to their wellbeing from climate -related incidents, such as droughts, extreme heat, air pollution and other physical climate impacts Such climate -related incidents could negatively affect employee health, thereby threatening IDRC ’ s ability to maintain a healthy work place

Risk mitigation

1) IDRC is following the health and safety legislation provided by the Government of Canada and local contexts for regional offices

2) Various forms of assistance are being offered to employees in suppor t of wellbeing

3) IDRC ’ s security plan provides for frequent assessment and training related to security risks specific to regions where employees are travelling, residing, or relocating The plan also provides for ongoing third-par ty security monitoring for employees travelling or residing abroad

Operational capacity

Research and programming risks

Research deliver y

R E A O F O P P O R T U N I T Y

operations

Climate initiatives

research and programming

Research scope

Both physical and transition risks posed by climate -related issues may threaten IDRC ’ s ability to fulfil its mandate through a range of impacts, such as increased costs, damage to physical infrastructure, or reduced capacity for required travel, which could threaten IDRC ’ s core objective of investing in high- quality research and innovation in low- and middleincome countries

Climate change could impact national academic infrastructure where researchers operate and reduce financial capacity due to costs of addressing severe national climaterelated damages I n addition, risks resulting from climate -related incidents, such as increased spread of infectious diseases and climate -related conflicts, may impact research par tners’ capabilities to deliver on research objectives and threaten IDRC ’ s core objective of investing in high- quality research and innovation in developing countries

IDRC monitors the environment to respond to these risks

IDRC maintains strong financial management and accountability for the Centre’s budget and contracting clauses that allow for flexibility should funding not materialize or change due to unforeseen circumstances

funding and par tnerships

Research par tnerships

Description and potential impacts

Developing an operational-level strategy for climate initiatives could enable IDRC to enhance existing operational climate initiatives like the Air Canada Leave Less Program and introduce new initiatives such as the proposed guidelines to promote sustainable regional travel The consolidation of these initiatives into a cohesive operational-level strategy would suppor t the organizational objective of greening operations and allow IDRC to plan the development of initiatives, leverage synergies between them and track their effectiveness

I ncreased global pressure associated with climate change provides an oppor tunity for IDRC to build on and expand its existing climate - oriented research and increase the impact of IDRC-suppor ted research, thereby driving the core objective of sharing k nowledge for greater uptake and use This could include areas the TCFD identifies as climate oppor tunities, including climate resilience and adaptation, energy efficienc y and alternative energy sources, and renewable energy

IDRC can build and advance par tnerships with key strategic actors, such as the private sector, to access climate -specific funding oppor tunities to scale research, build sk ills and innovate for the public good, which will fur ther suppor t the organization’s core objective of mobilizing alliances for impact

Metrics and targets

As an organization with a commitment to building a more sustainable and inclusive world, IDRC has a vested interest in reducing its GHG emissions IDRC uses the widely accepted classification system based on Scopes 1, 2 and 3 to measure its GHG emissions, and the GHG inventory was developed based on the GHG Protocol Scope 1 emissions are direct emissions from sources owned or controlled by an organization and a direct result of its activities. Scope 2 refers to indirect emissions associated with the purchase of energy (electricity, heating, cooling) These emissions occur at the facility where the energy is generated but are accounted for by the organization because they are the result of the organization’s energy use Scope 3 emissions are all indirect emissions that occur as a result of an organization’s operations but are not within its direct control They include both upstream and downstream emissions

The Centre has maintained the same baseline year for Scopes 1 and 2 (2020-2021 financial year) In addition, to calculate Scope 2 emissions for the 2024-2025 period, the Centre has continued using the International Energy Agency (IEA) factors (https://www iea org/data-andstatistics/data-product/emissions-factors-2024), consistent with best practice

For Scope 3 emissions, there were a few updates in the methodology based on best practices, but they did not incur any material changes when compared to the baseline calculations For GHG emissions resulting from air travel, the previous methodology using the Haversine (curved line) method has been simplified by using straight line distances For emissions related to hotel stays, the previous methodology used the Hotel Carbon Footprint Calculator website in cases where the country emission factors known as DEFRA (for the UK Government’s Department for the Environment, Food and Rural Affairs) were unavailable Our current methodology uses a DEFRA global average in cases where country emission factors are unavailable

SCOPE 1

This financial year, Scope 1 emissions for IDRC increased by 13%, primarily due to higher natural gas consumption at the head office The increase is due to Ottawa experiencing a harsher winter during 2024-2025 compared to the 20202021 baseline year, since natural gas is used entirely to provide heating for IDRC's office space

SCOPE 2

As in 2023-2024, IDRC maintained a reduction in Scope 2 emissions compared to the baseline, including a 52% decrease at the head office alone IDRC continues to benefit from having moved its head office to a new, more efficient building and occupying a smaller office footprint

SCOPE 3

Scope 3 emissions remain the largest contributor to IDRC ’ s carbon footprint and are a key focus for future reduction effor ts As an organization that depends on close collaboration with stakeholders in low- and middle -income countries, air travel is essential to delivering on the Centre’s strategy However, emissions related to employee travel continue to account for most of IDRC ’ s emissions

In 2023-2024, IDRC updated its methodology for a more precise calculation of Scope 3 categor y 6 business travel GHG emissions Due to this newly adopted methodology, the baseline for Scope 3 GHG emissions is derived from 2023-2024 data

Through continued commitment to reducing air travel emissions, the Centre has achieved a fur ther 3% reduction in emissions by reducing travel and purchasing increased Sustainable Aviation Fuel (SAF) through multiple airlines

SCOPE 1

SCOPE 2

SCOPE 3

GHG EMISSIONS

Moving for ward

IDRC is dedicated to addressing climate change and its effects while remaining resilient and adaptable in supporting high-quality research and innovation in developing regions The Centre takes a leading role in incorporating climate considerations into development research, aiming to make a meaningful impact on global sustainability goals

As IDRC advances its mission, it continues to assess and respond to climate-related risks and opportunities with a responsible and forward-thinking approach This includes strengthening measures to monitor environmental impact, mitigate emissions and reduce its overall footprint While specific targets have not been outlined in this report, IDRC remains committed to achieving net-zero emissions and is focused on aligning with reduction goals The organization is actively working to refine and enhance its climate strategies to support this long-term commitment

financial statements

Financial statements

Management Responsibility for Financial Statements

The financial statements and all other financial information presented in this annual report are the responsibility of management and have been approved by the Board of Governors. Management has prepared the financial statements in accordance with International Financial Reporting Standards and, where appropriate, the financial statements include amounts that reflect management’s best estimates and judgment. Financial information presented elsewhere in the annual report is consistent with the information presented in the financial statements.

Management is responsible for the integrity and reliability of the financial statements and accounting systems from which they are derived. The Centre maintains an internal control framework to provide reasonable assurance that the financial information is reliable, transactions are authorized and recognized, assets are safeguarded and liabilities recognized. Management also ensures that resources are managed economically and efficiently in the attainment of corporate objectives and that operations are carried out in accordance with the International Development Research Centre Act and by-law of the Centre.

Responsibilities of the Centre’s internal auditors incorporate reviewing internal controls, including accounting and financial controls and their application. The Auditor General of Canada conducts an independent audit of the annual financial statements in accordance with Canadian generally accepted auditing standards. The audit includes appropriate tests and procedures to enable the Auditor General of Canada to express an opinion on the financial statements. The internal and external auditors have full and free access to the Finance and Audit Committee of the board.

The Board of Governors is responsible for ensuring that management fulfills its responsibilities for financial reporting and internal control. The board benefits from the assistance of its Finance and Audit Committee in overseeing and discharging its financial oversight responsibility, which includes the review of the financial statements with management and the external auditors before recommending their approval to the board. The committee, which is made up of independent governors, meets with management, the internal auditors and the external auditors on a regular basis.

On behalf of management,

Julie Delahanty

Geneviève Leguerrier, CPA President Vice-President, Resources, and Chief Financial Officer

Ottawa, Canada

9 June 2025

INDEPENDENT AUDITOR’S REPORT

To the International Development Research Centre and to the Minister of Foreign Affairs

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of the International Development Research Centre (the Centre), which comprise the statement of financial position as at 31 March 2025, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including material accounting policy information.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Centre as at 31 March 2025, and its financial performance and its cash flows for the year then ended in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (IASB).

Basis for Opinion

We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Centre in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other Information

Management is responsible for the other information. The other information obtained at the date of this auditor’s report is the Management’s discussion and analysis section included in the annual report, but does not include the financial statements and our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent

with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed on the other information obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with IFRS Accounting Standards as issued by the IASB, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Centre’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Centre or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Centre’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Centre’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Centre’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Centre to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Report on Compliance with Specified Authorities

Opinion

In conjunction with the audit of the financial statements, we have audited transactions of the International Development Research Centre coming to our notice for compliance with specified authorities. The specified authorities against which compliance was audited are the applicable provisions of Part X of the Financial Administration Act and regulations, the International Development Research Centre Act and the by-laws of the International Development Research Centre.

In our opinion, the transactions of the International Development Research Centre that came to our notice during the audit of the financial statements have complied, in all material respects, with the specified authorities referred to above. Further, as required by the Financial Administration Act, we report that, in our opinion, the accounting principles in IFRS Accounting Standards as issued by the IASB have been applied on a basis consistent with that of the preceding year.

Responsibilities of Management for Compliance with Specified Authorities

Management is responsible for the International Development Research Centre’s compliance with the specified authorities named above, and for such internal control as management determines is necessary to enable the International Development Research Centre to comply with the specified authorities.

Auditor’s Responsibilities for the Audit of Compliance with Specified Authorities

Our audit responsibilities include planning and performing procedures to provide an audit opinion and reporting on whether the transactions coming to our notice during the audit of the financial statements are in compliance with the specified authorities referred to above.

Mimma Venema, CPA, CA, CGA Principal for the Auditor General of Canada

Ottawa, Canada 9 June 2025

Statement of Financial Position

(in thousands of Canadian dollars) as at 31 March

Commitments (Note 12)

The accompanying notes form an integral part of these financial statements.

These financial statements were approved by the Board of Governors on 9 June 2025

Dorothy Nyambi Hilary Rose Chairperson Chairperson Board of Governors Finance and Audit Committee

Statement of Comprehensive Income

(in thousands of Canadian dollars) for the year ended 31 March

Expenses

research programming (Note 13)

(Note 14)

(Note 14)

(Notes 13)

Revenues

The accompanying notes form an integral part of these financial statements.

Statement of Changes in Equity

(in thousands of Canadian dollars) for the year ended 31 March

The accompanying notes form an integral part of these financial statements.

Statement of Cash Flows

(in thousands of Canadian dollars) for the year ended 31 March

Supplementary Information (Note 19)

The accompanying notes form an integral part of these financial statements.

Notes to the Financial Statements

For the year ended 31 March 2025

1- Basis of preparation

A) General information

The International Development Research Centre (the Centre or IDRC), a Canadian Crown corporation without share capital, is not an agent of His Majesty and was established as a registered charity in 1970 by the Parliament of Canada through the International Development Research Centre Act.

The Centre is funded primarily through an annual appropriation received from the Parliament of Canada. In accordance with section 85(1.1) of the Financial Administration Act, the Centre is exempt from Divisions I to IV of Part X of the Act, except for sections 89.8 to 89.92, subsection 105(2) and sections 113.1, 119, 131 to 148 and 154.01.

The mandate of the Centre is to initiate, encourage, support and conduct research into the problems of the developing regions of the world and into the means for applying and adapting scientific, technical and other knowledge to the economic and social advancement of those regions

B) Basis of preparation

These financial statements comply with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB). These financial statements are prepared on a historical cost basis except for investments, which are measured at amortized cost and certain financial instruments, which are measured at fair value through profit and loss.

These financial statements are presented in Canadian dollars, which is the functional currency of the Centre. All values are rounded to the nearest thousand ($000) except where otherwise indicated

C) Material accounting policies

The material accounting policies are presented in these financial statements in the appropriate section of these notes. These accounting policies have been used throughout all periods presented in the financial statements unless otherwise disclosed

D) Significant judgements and estimates

In the process of applying the Centre’s accounting policies and the application of accounting standards, management is required to make judgements, estimates and assumptions with regards to the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors considered relevant. Actual results may differ from these estimates. These judgements, estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the year. Uncertainty about these assumptions and estimates, or changes in the significant judgments made, could result in adjustments to the disclosed amounts of the assets or liabilities in future years

Information about judgements, estimates and assumptions that are relevant to understanding these financial statements are disclosed in the relevant notes as follows:

- Credit risk (Note 4 Accounts receivable and prepaid expenses)

- Useful lives of assets (Note 5 Property and equipment)

- Measurement of borrowing rates (Note 6 Right-of-use assets)

- Factors for determining employee benefits (Note 10 Employee benefits)

- Financial instruments risks (Note 17 Financial instruments and related risks)

The judgments, estimates and assumptions are reviewed regularly. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods

E) Taxation

The Centre is exempt from the payment of income tax, as per section 149 of the Income Tax Act

F) Application of new accounting standards

I. New standards, amendments and interpretations that took effect in 2024

There were no new standards, amendments or interpretations issued by the International Accounting Standards Board or the IFRS Interpretation Committee that had an impact on the current financial statements.

II. Standards, amendments and interpretations not yet in effect

IFRS 18 Presentation and Disclosure in Financial Statements: In April 2024, the IASB issued IFRS 18 Presentation and Disclosure in Financial Statements (IFRS 18), which will replace IAS 1 Presentation of Financial Statements. The objective of IFRS 18 is to improve how information is communicated in the financial statements, with a focus on information in the Statement of Comprehensive Income. It will include requirements for additional defined subtotals in the Statement of Comprehensive Income, disclosures about management performance measures and strengthened requirements for aggregation and disaggregation of information. IFRS 18 is required to be implemented for annual reporting periods beginning on or after 1 January 2027. The impact on the Centre’s financial statements has not yet been assessed

2- Cash

Accounting policy

Cash includes funds on deposit at financial institutions and nominal petty cash at regional offices. Cash is carried at fair value and its performance is actively monitored. Cash not immediately required for working capital can be invested as per the Centre’s Investment Policy

3- Investments

Accounting policy

Investments consist of non-derivative financial assets with fixed or determinable payments of principal and interest and fixed maturities. The Centre’s business model is to hold the investments until maturity to collect the contractual cash flows. The Centre currently holds listed bonds and guaranteed investment certificates (GICs) that are initially recorded at fair value plus transaction costs that are directly attributable to the acquisition and subsequently measured at amortized cost using the effective interest method and are subject to impairment. Gains and losses are recognized in the Statement of Comprehensive Income in the year in which the investments are derecognized, modified or impaired. The Centre has an investment policy approved by the Finance and Audit Committee of the Board of Governors. Interest income is accrued when earned and included in income for the year

Supporting information

The Centre’s investment portfolios consist of Canadian federal, provincial, municipal, corporate, schedule I and II bank financial instruments. The bonds have effective interest rates ranging from 1.38% to 4.42% (coupon rates ranging from 1.40% to 7.35%) and GICs have fixed interest rates ranging from 0.8% to 5.55%. The maturity dates of the bonds vary from December 2025 to October 2032 and those of the GICs vary from April 2025 to May 2028. Management intends to hold all investments to maturity.

The net book value, measured at amortized cost, and fair value of these investments, are shown in the following tables. The fair values of the investments can be determined by (a) quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1); (b) inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., prices) or indirectly (i.e., derived from prices) (Level 2); or (c) inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3). The fair values of the Centre’s investments are not quoted in an active market, but rather are determined from quoted prices in a decentralized over-the-counter market, which is considered Level 2 in the fair value hierarchy

interest rates and maturity terms

Accounting policy

Accounts receivable and prepaid expenses are incurred in the normal course of business. The accounts receivable are due upon issuance and the carrying values approximate their fair value due to the short-term nature of these instruments.

Accounting estimates and judgements

These are not considered by management to present a significant credit risk. The Centre did not identify any receivables that are either past due or impaired as at 31 March 2025 (31 March 2024: nil)

Supporting information

5-

Property and equipment

Accounting policy

Property and equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Cost includes any expenditure directly related to the acquisition of the asset, dismantling costs to remove the items and restoring the site on which they are located. All maintenance expenditures are recognized in the Statement of Comprehensive Income.

Property and equipment are depreciated over their useful lives once the assets are available for use by the Centre and are recognized on a straight-line basis. The estimated useful life of each asset category is as follows:

Asset category

Computer equipment

Useful life

5 years

Office furniture and equipment 5 years

Vehicles 3 to 7 years

Communication systems 5 years

Leasehold improvements Shorter of lease term or the asset’s useful economic life

An item of property and equipment is derecognized upon disposal, or when no future economic benefits are expected from its use or disposal.

Any gain or loss arising on derecognition of the property or equipment (calculated as the difference between the net disposal proceeds and the carrying amount of said asset) is included in the Statement of Comprehensive Income in the year the asset is derecognized. The assets’ residual values, useful lives and methods of depreciation are reviewed at each financial year-end and adjusted prospectively when necessary.

An assessment is made annually as to whether an asset or a group of assets contained in this category is impaired. Any adjustment to the carrying value of the asset is recorded in the Statement of Comprehensive Income

Accounting estimates and judgements

The following are key sources of estimation uncertainty at the end of the reporting period that have a significant risk of causing a material adjustment to the financial statements within the next 12 months:

• Useful lives are assessed annually and are based on management’s best estimates of the period of service provided by the assets.

• Changes to useful life estimates would affect future depreciation expenses and the future carrying value of assets.

Supporting information

At 31 March 2025, the Centre had no impairment of property and equipment.

6-

Right-of-use assets

Accounting policy

The Centre leases office space in six countries in the normal course of its business. The average lease term for office space is 12 years. At the inception of a contract, the Centre assesses whether the contract is or contains a lease that conveys the right to use an asset for a period in exchange for considerations. The Centre recognizes a right-of-use asset and a corresponding lease liability with respect to all lease agreements in which it is a lessee. The Centre uses a practical expedient in the standard to not separate non-lease components from lease components.

The right-of-use assets are measured at cost, which includes the amount of the initial measurement of the lease liability, any lease payments made at or before the commencement date, less any lease incentives received, any initial direct costs incurred and an estimate of the dismantling costs to restore the underlying asset.

Right-of-use assets are depreciated over the lease terms on a straight-line basis. The lease term includes periods covered by an option to extend if the Centre is reasonably certain to exercise the option. At the end of each reporting period, an assessment is performed to determine whether there is any indication that right-of-use assets may be impaired. If any such indication exists, the recoverable amount of the right-of-use asset is estimated and an impairment expense is recognized if the carrying value of the right-of-use asset exceeds its recoverable amount

Accounting estimates and judgements

The incremental borrowing rates applied to lease liabilities vary depending on the economic environment in which the lease was entered into, the country-specific risk-free rate and the lease term. The incremental borrowing rates represent the applicable rate had the Centre borrowed funds over a similar term with a similar asset in a similar economic environment. The rate is calculated using various inputs as the Centre does not borrow

Supporting information

The Centre calculated the lease liabilities using the incremental borrowing rate of between 3.8% and 16.45%. The weighted average rate at 31 March 2025 is 5.54% (31 March 2024: 5.42%).

7-

The Centre signed a lease modification in September 2024 for the office space in Kenya to extend the term by 12 years, which includes a six-year lease renewal period.

Accounts payable and accrued liabilities

Accounting policy

Accounts payable and accrued liabilities are incurred in the normal course of operations and are classified as non-current liabilities if a right to defer settlement by at least 12 months exists at the end of the reporting period. Accounts payable and accrued liabilities are recognized initially at fair value and subsequently measured at amortized cost

Supporting information

Accounts payable and accrued liabilities of the Centre principally comprise amounts outstanding for purchases relating to operational activities, grants due to be paid under agreements and accruals for employee paid annual leave and overtime. The carrying amounts set out below approximate their fair value due to the short-term nature of these liabilities

a The prior year comparatives were aggregated to agree with the current year presentation.

8- Lease liabilities

Accounting

policy

Lease liabilities are comprised of amounts owing for right-of-use assets. At the commencement date, the lease liability is accounted for at the present value of the fixed future lease payments. Subsequent to the commencement date, the liability is remeasured by discounting the revised lease payments using a revised discount rate if the lease term changes. The lease payments are discounted using the Centre’s notional incremental borrowing rate. Lease liabilities are classified as non-current if a right to defer settlement by at least 12 months exists at the end of the reporting period

9-

Deferred revenue

Deferred revenue includes the unspent portion of funds received or receivable on donor contribution activities and the unspent portion of certain parliamentary appropriations received for specific projects and programs. Deferred revenue is classified as non-current if a right to defer settlement by at least 12 months exists at the end of the reporting period

Supporting information

a. Donor contribution funding for development research programming

Of the total deferred donor contribution funding, Global Affairs Canada accounts for $13 365 (31 March 2024: $10 174), all of which was received at year-end.

b. Parliamentary appropriations – projects and programs

c.

10- Employee benefits

Accounting

policy

Pension benefits – head office

Most employees of the Centre working in its head office are covered by the Public Service Pension Plan (the Plan), a defined benefit plan established through legislation and sponsored by the Government of Canada. Contributions are required by both the employees and the Centre to cover current service costs. Pursuant to legislation currently in place, the Centre has no legal or constructive obligation to pay further contributions with respect to any past service or funding deficiencies of the Plan. Consequently, contributions are recognized as an expense in the year when employees have rendered services and represent the total pension obligation of the Centre

Pension benefits – regional offices

The Centre offers a number of defined contribution plans that provide pension and other benefits to eligible employees in regional offices. The Centre’s contributions reflect the full cost as employer and are currently based on a multiple of an employee’s required contribution to the plans. The Centre’s contributions are expensed during the year the service is rendered and represent the total obligation of the Centre

Accounting estimates and judgments

Employee benefit obligations to be settled in the future require assumptions to establish the benefit obligations. Defined benefit accounting is intended to reflect the recognition of the benefit costs over the employee’s approximate service period or when an event triggering the benefit entitlement occurs based on the terms of the plan. The significant actuarial assumptions used by the Centre in measuring the benefit obligation and benefit costs are the discount rate, mortality tables, and inflation rate, which have an impact on the long-term rates of compensation increase. The Centre consults with external actuaries regarding these assumptions annually. Changes in these assumptions can have an impact on the defined benefit obligation

Supporting information

Pension benefits – head office

The president of the Treasury Board of Canada sets the required employer contributions based on a multiple of the employees’ required contribution. The general contribution rate for the employer effective at year-end was 11% of gross salary (31 March 2024: 10.9%). Total contributions of $3 631 (31 March 2024: $3 370) were recognized as an expense in the current year.

The Government of Canada holds a statutory obligation for the payment of benefits relating to the Plan. Pension benefits generally accrue up to a maximum period of 35 years at an annual rate of 2% of pensionable service times the number of years. The pensionable service value is calculated as the average of the best five consecutive years of earnings. The benefits are coordinated with the Canada Pension Plan and Québec Pension Plan benefits and are indexed to inflation.

Pension benefits – regional offices

The Centre’s contributions to all regional office plans for the year ended 31 March 2025 totalled $594 (31 March 2024: $541)

11- Equity management

The Centre’s equity balances are comprised of unrestricted, restricted, net investments in capital assets and reserved equity

The Centre has an equity management policy in place to ensure that it is appropriately funded and that the equity position is identified, measured and managed.

The Centre’s objective, with respect to its equity management, is to ensure that sufficient funds are maintained to adequately protect the financial position of the Centre.

Equity is managed through a board-approved equity policy that restricts a portion of equity to fund special or significant programs and operational initiatives planned for future financial years. Management also reserves a portion of equity as a financial planning reserve. The financial planning reserve is intended to absorb the impact of significant variances in development research programming expenditures. The Centre is not subject to any externally imposed equity requirements

Supporting information

Restricted equity

Restricted equity for special or materially large research programs is drawn down as the funds are used for these programs. A total of $1.1 million was set aside in restricted equity for the annual awarding of the John G. Bene Fellowship in Community Forestry. In 2016–2017, $0.1 million was added to restricted equity for funds received for The David and Ruth Hopper & Ramesh and Pilar Bhatia Canada Fund bursaries. These funds are being used to support young researchers through fellowships, scholarships or internships

Net investments in capital assets

This represents the Centre’s net investment in capital assets that will be depreciated or amortized over future accounting periods (see Note 5)

Reserved equity

The objectives of the reserved equity are to protect the financial position of the Centre by ensuring that a reasonable balance of funds is reserved by management to absorb fluctuations in the disbursement of multi-year outstanding research program commitments and to fund future purchases of property, equipment and intangibles, as well as future initiatives

12- Commitments

Research project-related

The Centre is committed to making payments of up to $329.5 million (31 March 2024: $331.7 million) during the next six years. These payments are subject to funds being provided by Parliament or donors, compliance by recipients with the terms and conditions of their grant agreements, and the fulfillment of existing contracts for services. Of this amount, $181.2 million (31 March 2024: $192.2 million) is expected to be funded from future parliamentary appropriations and $148.3 million (31 March 2024: $139.5 million) from donor contribution agreements.

Other

The Centre has entered into various agreements for goods and services in Canada and abroad related to Centre operations. These agreements expire at different dates up to 2042. Future payments related to these commitments are as follows:

13- Schedule of expenses

a Includes all costs directly related to the development of research capabilities in co-funded projects and programs. These represent total expenses of $10 752 (31 March 2024: $8 908). Enhancing research capabilities expenses represent IDRC’s multifaceted role as research funder, adviser and knowledge broker. This means that IDRC is a

and builds recipient

throughout the research process.

14- Grant payments

Accounting

policy

All grant payments to institutions carrying out research projects approved by the Centre are subject to the provision of funds by Parliament or by donors. They are recorded as an expense, either under research projects funded by parliamentary appropriation or research projects funded by donor contributions, in the year they come due as per the terms and conditions of the agreements. Refunds on previously disbursed grant payments are credited against the current year expenses or to other income in situations where the grant account has been closed

15- Revenue

Accounting policy

Parliamentary appropriation

The parliamentary appropriation is recorded as revenue in the year for which it is approved by Parliament. The exception is for those funds received for specific projects and programs, which are deferred when received and recognized when related expenses are incurred. The Centre does not receive parliamentary appropriations for which the primary condition is that the Centre purchase, construct or otherwise acquire property or equipment. Aside from parliamentary appropriations received for specific projects and programs, there are no conditions or contingencies existing under which the parliamentary appropriation would be required to be repaid once received by the Centre. The IDRC Act gives the Board of Governors the authority to allocate all appropriated funds

Donor contributions

The Centre enters into co-funding (contribution) agreements with various donors to complement the Centre’s funding of research for development by deepening and broadening its programming reach, increasing resources for development research projects and programs and bringing innovation to scale. The Centre manages donor contributions together with its own contribution funded from the parliamentary appropriation. Funds received or receivable under donor contribution agreements are recorded as deferred revenues until the Centre complies with the conditions attached to the agreements. These deferred revenues are recognized as revenues on a systematic basis in the year in which the expenses are incurred for the purposes they were received

Supporting information

appropriation recognized in the Statement of

A breakdown of the revenue and expense

is provided below.

The Centre recovers administrative costs from the management of donor contribution funding. The total recovery for the year ended 31 March 2025 was $10 896 (31 March 2024: $7 730) of which $863 (31 March 2024: $837) was from GAC.

16- Related party transactions

Accounting

policy

The Government of Canada, as the parent of the Centre, has control over the Centre and causes the Centre to be related, due to common ownership, to all departments, agencies and Crown corporations created by the Government of Canada. The Centre enters into transactions with other Government of Canada entities in the normal course of operations, under the same terms and conditions that apply to unrelated parties. Any transactions are recorded at their exchange amounts, which are determined to approximate fair value

Related party transactions are disclosed in Notes 9 and 15 to these financial statements

Compensation of key management personnel

Key management personnel include the Board of Governors, the president and the vice-presidents. Compensation paid or payable to key management personnel during the year is summarized in the table below.

17- Financial instruments and related risks

Accounting

policy

The Centre’s financial instruments consist of cash, investments, accounts receivable, accounts payable and accrued liabilities that are incurred in the normal course of business. Financial instruments are initially recognized at fair value, which is usually considered to be the transaction price (consideration given). Subsequent to initial recognition, they are measured based on their classification

The classifications are as follows:

Financial instruments

Cash

Investments

Accounts receivable

Accounts payable and accrued liabilities

Impairment of financial assets

Classification and measurement

Financial assets at fair value through profit and loss

Financial assets at amortized cost

Financial assets at amortized cost

Financial liabilities at amortized cost

An assessment is made at each reporting date as to whether a financial asset or group of financial assets is impaired using a single forward-looking expected credit loss model. Any adjustment to the carrying value of the financial asset is recorded in the Statement of Comprehensive Income. As at 31 March 2025, the Centre had no impairment of financial assets

Financial instruments risks

The principal risks to which the Centre is exposed as a result of holding financial instruments are credit risk, market risk and liquidity risk. The Centre has various financial instruments such as cash, investments, accounts receivable, accounts payable and accrued liabilities that arise from operations

Credit risk

Credit risk is the risk that the counterparty to a financial instrument will default on its obligations to the Centre, resulting in financial losses. The Centre is exposed to credit risk since it has investments and extends credit to its recipients and donors in the normal course of business. The maximum exposure is represented by cash, investments and accounts receivable amounts disclosed on the Centre’s statement of financial position. The Centre does not use credit derivatives or similar instruments to mitigate risk and, as such, the maximum exposure is the full carrying value or face value of the financial asset. The Centre minimizes credit risk on cash by depositing the cash only with a reputable and high-quality financial institution. Credit risk associated with accounts receivable is considered by management to be minimal since most receivables are due from Canadian government entities. Credit risk associated with donor receivables is considered low by management since most receivables are due from Canadian or foreign government entities that have contracted with the Centre. The Centre’s

investment policy sets out guidelines that define the minimally acceptable counterparty credit ratings pertaining to investments. Investments in financial institutions and corporations must have a minimum rating from an external rating agency that is equivalent to DBRS ratings for short-term instruments of R1L. DBRS ratings for medium/long-term instruments must hold a minimum rating of A (Low) for governments, corporations and Schedule I banks. Schedule II banks must hold a minimum rating of AA (Low). The Centre regularly reviews the credit ratings of issuers with whom the Centre holds investments and confers with the vice-president, Resources and Chief Financial Officer, when the issuer’s credit rating declines below the policy guidelines. The investment policy is reviewed and approved as required by the Finance and Audit Committee of the Board of Governors. These policies and procedures are designed to manage and limit the credit risk associated with these financial instruments

Concentrations of credit risk

The Centre’s exposure to credit risk is summarized as follows:

Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk is comprised of three types of risk: currency risk, interest rate risk and other price risk. The Centre is exposed to potential losses as a result of movements in interest and foreign exchange rates

Currency risk

Currency risk is the potential adverse impact of foreign exchange rate movements on the fair value or future cash flows of financial instruments. The Centre has exposure to currency risk in part from the local operating costs of five regional offices throughout the world. The Centre does not hedge its regional office expenses against fluctuations in foreign exchange rates and accepts the operational and financial risks associated with any such fluctuations that are not considered to be significant.

The Centre has multi-year contribution agreements with non-Canadian donors that are denominated in currencies other than the Canadian dollar. When progress payments are received from those donors, they are translated as described in Note 18. In turn, the Centre incurs expenses and issues multi-year grant agreements mainly denominated in Canadian dollars. The Centre manages its currency risk on these activities by setting aside a portion of the donor contribution agreement funding to absorb exchange gains and losses. The magnitude of the funding set aside is gauged against actual currency fluctuations on a yearly basis, with additions made only when needed and releases made only toward the end of the agreement, when no longer required. The Centre does not hedge its foreign currency revenues against fluctuations in foreign exchange rates and accepts the operational and financial risks associated with any such fluctuations that, on a financial year basis, are not considered to be significant

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market interest rates. The Centre is exposed to fluctuations in interest rates on its investments as this would affect the fair value of the instruments. Management intends to hold these instruments until maturity, collecting contractual cash flows over the term of the investment and mitigating exposure to fair value changes. The Centre’s interest rate risk is not considered significant

Liquidity risk

Liquidity risk is the risk that the Centre will encounter difficulty in meeting its financial obligations as they fall due. Liquidity risk can arise from mismatched cash flows related to assets and liabilities. The corporate treasury function is responsible for the Centre’s liquidity management. This risk is managed by monitoring forecasted and actual cash flows and matching the maturity profiles of financial assets and liabilities. The Centre may also hold investments in marketable securities readily convertible to cash to ensure that sufficient liquidity can be made available to meet forecasted cash requirements. Given the timing of receipts and payments, the Centre’s exposure to liquidity risk is not significant

18- Foreign currency translation

Accounting policy

Transactions in currencies other than the Centre’s functional currency are recognized at rates in effect at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are translated to Canadian dollars using the exchange rate at that date. Exchange gains and losses are recognized in other income in the period in which they arise. Non-monetary items are measured at historical cost and are not revalued. The Centre does not actively hedge against foreign currency fluctuations

19- Supplemental cash flow information

The change in accounts receivables and prepaid expenses excludes an amount of $-2.9 million (31 March 2024: $-3.5 million), as the amount relates to deferred revenue.

The change in accounts payable and accrued liabilities excludes an amount of $0.1 million (31 March 2024: $0.1 million), as the amount relates to acquisition of property and equipment, within investing activities

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Head Office

I nternational Development Research Centre

PO Box 8500, O ttawa, ON, Canada K1G 3H9

(mailing address)

45 O’Connor Street, O ttawa, ON, Canada K1P 1A4

Phone: +1 613-236-6163

Teletypewriter ( T T Y ): +1 613-236-1661

Fax: +1 613-238-7230

Email: info@idrc ca

Latin America and the Caribbean Regional Office

Juncal 1385 Piso 14, 11 000 Montevideo, Uruguay

Phone: +598 2915 0492

Email: lacro@idrc ca

Eastern and Southern Africa Regional Office

PO Box 62084 00200, Nairobi, Kenya

Eaton Place, 3rd floor

United Nations Crescent, Gigiri, Nairobi, Kenya

Email: esaro@idrc ca

Central and West Africa Regional Office

PO Box 25121 CP 10700 Dak ar Fann I mmeuble 2K Plaza

Route des Almadies

Dak ar, Senegal

Phone: +221 33 820 09 66

Email: waroinfo@idrc ca

Middle East and Nor th Africa Regional Office

K awar Keystone Building, 5th floor 14 R afiq Al Hariri Avenue Amman, Jordan

Email: mero@idrc ca

Asia Regional Office 5th Floor, DLF Centre Parliament Street New Delhi 110001, I ndia

Phone: (+91-11) 2331-9411

Email: aro@idrc ca