Company
LOGO
The Sustainability Paradox
The ConocoPhillips IRIS SeminarSeptember 17, 2015By: Marcel Latouche
ipsa
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 .
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