Download View Summary - Haskayne School of Business

ConocoPhillips IRIS Seminar Summary
The Idea in Brief
Sustainability is one of the most used plastic words in the new vernacular to address
environmental and fiscal issues. However, there are so many interpretations of the word
sustainability that we need some clarification to ensure that it is understood in the proper
context.
Point 1: In the context of aboriginal issues, the appropriate definition is the one provided by the
Original Oxford Dictionary - Able to be maintained at a certain rate or level.
•
•
•
•
Past wrongs
Lack of Accountability
Public mistrust
Need for transparency, education and consensus
Point 2: Gro Harlem Brundtland’s 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."
•
•
•
•
Green House Gas emissions
Failed Treaties
Not in My Backyard (NIMBY) rhetoric
Need for incentives and less name calling among protagonists
Point 3: The Public Sector Accounting Board (PSAB in the Statements of Recommended
Practice (SORP 4)) defines Sustainability as – the degree to which a government can
maintain existing programs and meet creditor requirements without increasing the debt
load on the economy.
•
•
•
•
Environmental policies’ impact on the economy
Increasing public debt
Bloated Public Sector
Need for P3s, and recognition of the difference between needs and wants
The definitions used to illustrate the sustainability paradox all have a common theme:
‘maintenance of the status quo’. We cannot continue to use old and same thinking to address
current and new problems. We need open discussions and reach consensus to make a better
place for mankind.
Topic being covered (matching seminar chat topic)
The Centre is dedicated to finding balance among economic development, social well-being and
environmental protection. There are at least three different definitions of ‘sustainability’ that
comes to mind - The Original Oxford Dictionary, the United Nations and the Public Sector
Accounting Board. This presentation attempts to put each definition broadly in a proper context
as it pertains to Aboriginal issues, the Environment, and Economics.
1|Page
ConocoPhillips IRIS Seminar Summary
Point 1
In the context of aboriginal issues, the most appropriate definition is the one provided by the
Original Oxford Dictionary - Able to be maintained at a certain rate or level.
There is no doubt that in the past there has been some significant harm done to our first
Nations. However, over the years many attempts have been made to rectify these wrongs
(including residential, schools, relocation and land appropriation). Apologies as well as
compensations have been made, but we still have some work to do. The problem is that both
governments and the First Nations Assembly very rarely come to a consensus.
Sustainability in that case remains elusive. Continuously throwing money at the problem does
not solve the real problems that exist in many communities.
Today there exists a constant mistrust among first nations and the general public and among
First Nations. The existing income gap may be at the heart of the problem.
Most Canadians are sympathetic to the problems of the First Nations. Over the years, First
Nations have received enormous amounts of money from different levels of government, and
yet many of them still live in poverty and sometimes squalor.
In the 2015 budget, the government provided for $ 1.62B to help education and skills training for
aboriginals. Education is at the heart of future engagement to solve the existing problems and
bring forth a new era or relationship between First Nations and Canadian Governments. Since it
is taxpayers’ money, it is time that First Nations should be viewed as another form of local
government. The public deserves more transparency and accountability. The Assembly of First
Nations must also take responsibility for the current failures. Welfare without proper
accountability is no longer the solution.
Point 2
The second definition is the one most used today to describe the environmental conundrum.
Gro Harlem Brundtland’s 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."
Along with lofty goals there have been regulations, failed treaties and most of all, many forms of
taxation, all in the name of curbing mankind’s use of fossil fuel and carbon based energy.
Acceptance of treaties does not necessarily mean easy implementation As a result, after years
of implementing different types of regulations, the world’s environment is in no better shape.
Too often they disregard the true effect of any regulations on the economy, which as it happens,
today it is not performing at its very best to say the least.
2|Page
ConocoPhillips IRIS Seminar Summary
There are many forms of agreements that have been used to curb the GHG. In one respect
there is common agreement between economists and environmentalists: put a price on carbon.
But there stops the consensus, because how we put a price on carbon becomes the sticky
point. The two most common proposals are ‘cap and trade’ and ‘carbon tax’.
We must refrain from the use of labels such as ‘Deniers’ or ‘skeptics’ to identify those who
disagree on the source of ‘climate change’ or global warming’ Too often scientists are at odds
on these issues, as most scientific researchers usually are.
Another impediment to progress is the ‘Not in My Backyard’ position taken in too many cases.
Any discussion must include both Canada’s East and West pipelines as well as the Keystone
XL.
To find better solutions we must move towards a system which provides incentives rather than
penalizes uses. It is a fact that given the current shape of our world, it is unlikely that the use of
fossil fuels will be able to be curtailed drastically within at least the next 90 years.
Point 3
•
The Public Sector Accounting Board (PSAB in the Statements of Recommended Practice
(SORP 4)) defines Sustainability as – the degree to which a gov’t can maintain
existing programs and meet creditor requirements without increasing the debt load
on the economy
This definition is at the heart of any nation’s true survival in terms of services required and how
they are provided and paid for. Too often governments have taken the role of sole providers of
services. Rethink Infrastructure (Calgary next, Bike lanes or Subsidize Housing, Ontario Hydro,
and Solyndra). We must also balance the needs and wants of the third world. (Corn as ethanol
or food? Electric cars? Where does the energy comes from?)
The result has been deficits and growing government debt causing sovereign debt downgrade
which encourages capital to flow away from the nation’s best firms, ironically at a time when the
economy needs the private sector to help stimulate growth.
A balanced approach to sustainability is required. One that ensures that the economy and
environmental issues are not at odds but in sync; punishment is not the solution instead we
should provide incentives to consumers to reach a goal of a cleaner environment
Context
Sustainability is a word that is too often used to promote policies that result in taxes or additional
spending. It would be wise to use it with more caution and transparency The Centre has an
important role to play, not only in Alberta, but to the rest of world. It has a unique position to
encourage true sustainability in all three areas that were discussed. I hope that I have provided
3|Page
ConocoPhillips IRIS Seminar Summary
you with some provocative thoughts that may help to promote more balanced discussions which
may allow us to reach consensus to achieve a cleaner environment with better social, economic
and corporate responsibility.
Graph/Image
Conclusion
This discussion was about three different definitions of ‘sustainability’. While they have been
used to address three different areas they have a common theme: ‘maintain the status quo’ as
proposed by past discussions. This is the wrong approach.
We need change. What we should be looking at is the promotion of innovation, the creation of
incentives, not penalties to reach common goals. Instead of name calling, demagoguery and
alienation we need collaboration and consensus to make a better place for all of us.
Haskayne School of Business
Centre for Corporate Sustainability
2500 university Drive NW
Calgary, AB T2N 1N4
[email protected]
4|Page