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The Sustainability Paradox

The ConocoPhillips IRIS SeminarSeptember 17, 2015By: Marcel Latouche

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The Centre’s ActivitiesEffective Aboriginal Engagement

Establishing & Maintaining a strong social license to operate

Measuring and maintaining progress on carbon Emissions and footprint.

Delimiting financial and Accountingstructuresrelated to land, water, and air impact.

Developing effective policies on issues impacting the environment, society and economy

Effective development of corporate social responsibility.

Stakeholders’ Context

Economics

Aboriginal Issues

Environmental ProtectionSustainability

Definitions

1. Oxford Dictionary

2. Gro Harlem Brundtland’s report

3. The Public Sector Accounting Board

Aboriginal Issues Able to be maintained at a certain rate or level.

Past Wrongs

Aboriginalengagement

No consensus Mistrust

Highest Income Gap Ratio: Chiefs vs Members

Reserve Chief’s Members’

Paul. Alberta $357,288 $21,331

Cote First Nation . Saskatchewan $354,629 $21,651

Esgenoopetlj First Nation N.B $192,543 $14,215

Sheshatshiu Innu First Nation N.L $257,571 $23,415

Fort McKay First Nation. Alberta $304,800 $64,832

Source: Aboriginal and Northern Affairs Department

Lowest Income Gap Ratio: Chiefs vs Members

Reserve Chief’s Members’

Old Massett Village Council B.C $25,873 $19,219

Fort Good Hope NWT $39,670 $31,749

O- Pipon-Na- Piwin Cree Nation Man. $18,301 $15,696

Tsartlip B.C $26,485 $22,888

Tsleil-Waututh Nation. B.C $58,657 $50,812

Source: Aboriginal and Northern Affairs Department

Gro Harlem Brundtland’s 1987 report

defined ‘sustainable development’ as :

"development that meets the needs of the present without compromising the ability of future generations to meet their own needs."

Environmental Issues

Green House Gas

Price on Carbon

Failed Treaties NIMBY

The Public Sector Accounting Board (PSAB )

SORP 4 defines ‘ fiscal sustainability’ as :

"the degree to which a government can maintain existing programs and meet creditor requirements without increasing the debt load on the economy."

Economics

Balance Environment and Economy

Bloated Public Sector

Not just Financialsolutions

Growing Government Debt by McKinsey Global Institute

Units

Rise in total global debt since 2007 $57 T

Increase in global government debt since 2007

$25 T

Compound annual growth rate of global gov’t debt since 2007

9.7%

Countries with debt to GDP ratio up more than 50% since 2007

14

No. of advanced countries who have lowered Debt to GDP ratio since the Great

Recession 0

WINSTON CHURCHILL SAID:

“We’ve run out of money, and now we need to use our brains.”

Let’s look for some solutions…

Solutions

1. Education

2. Infrastructure

3. Financing/Funding

Aboriginal Engagement• More than 1.4 million

people in Canada who identify as First Nations, Inuit or Metis

• Engaging the aboriginal communities

• Location of the value chain of energy, forestry, quarrying, mining,

• Governments pass the task to companies,

• Access to traditional knowledge about the environment.

• Potential advantages of a local pool of skilled labour

• Joint venture between the Atikamekw Council of Obedjiwan and Resolute Forest Products = 80 jobs and $20 million

Benjamin Disraeli

“Upon education of the people of this country the fate of this country depends”

Education• There are 518 schools on First

Nations reserves in Canada. First Nation schools on reserves are the responsibility of the federal government

• $71.1 billion will be added to Canada’s economy if Aboriginal people attain the same educational levels as other Canadians

• 41 per cent of First Nations youth living off reserves do not complete their secondary education

• In 2012-2013, the Government of Canada provided $1.62 billion to support First Nations elementary and secondary education.

• An additional, approximately $226 million was provided to First Nations for construction and maintenance of education facilities on reserve.

• Hopefully to be addressed in the Reconciliation Canada’s 2016 IRIS presentation

Source: ammsa.com/publications/windspeaker/canada

David Carlson, director of the World Meteorological

Organization’s World Climate Research program said:

“We are working on a different planet and we fully do not

understand the new patterns emerging.”

Environmental Solutions• The oil sands contribute about

8.5% of Canada’s GHG, or 0.12 % of global annual emissions.

• Innovation and alternatives sources of energy

• Athabasca River, and Other companies have reduced their withdrawals and recycling water. Suncor’s withdrawals declined by about 57 per cent since 2007

• Use gas instead of coal for electricity production

• Encana’s Water Resource Hub near Dawson Creek, BC Columbia, uses saline water to meet around 75% of the company's water requirements

• Corporate responsibility for remediation

• The myths of cap and trade• The Government of Canada

has proposed a commitment to reduce greenhouse gas

• emissions to 30% below 2005 levels by 2030

Economic Solutions• Increase Transparency

and Accountability• Funding to First Nations

should be subject to the same accounting rules as any other governments

• Increase Public/Private Partnerships

• Remove provincial trade barriers

• Rethink Infrastructure funding

• Provide incentives rather than increase taxation

• Too may regulations have negative economic impact

• The debt conundrum• Recognize the difference

between needs and wants of Industrialized and third world nations.

The UN estimates the world is expected to add another billion people within the next 15 years,

bringing the total global population from 7.3 billion in

mid-2015 to 8.5 billion in 2030, 9.7 billion in 2050, and 11.2

billion by 2100

New Approach

Phase 1 Phase 2 Phase 3

LEARN ADAPT TRUST &AGREE

Albert Einstein said

“The challenge is that we can’t solve current problems using the same thinking that brought us to where we are.”

CONCLUSION

• Instead of name calling, demagoguery and alienation we need collaboration and consensus to make a better place for all of us

We examined three definitions with a common theme: maintain the ‘status quo’ . • What is required is flexibility,

adaptability, the promotion of innovation, and the creation of incentives not only penalties to reach common goals .