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DPR – 2011-2012

2011–2012 –
Departmental Performance Report

The original version was signed by
__________________________

The Honourable Peter Kent
Minister of the Environment

Table of Contents

Adobe PDF Version

Message from the Acting President and CEO

• Section I: Organizational Overview
• Raison d’être
• Strategic Outcome(s) and Program Activity Architecture (PAA)
• Organizational Priorities
• Risk Analysis
• Summary of Performance
• Expenditure Profile
• Estimates by Vote

• Section II: Analysis of Program Activities by Strategic Outcome
• NRTEE Strategic Outcome
• Program Activity 1: Advisory Program on Environment and Economy Issues
• • Performance Summary and Analysis of Program Activity
  • Lessons Learned
• Program Activity 2: Internal Services
• • Performance Summary and Analysis of Program Activity
  • Lessons Learned

• Section III: Supplementary Information
• NRTEE Financial Highlights
• Financial Statements
• Supplementary Information Table

• Section IV: Other Items of Interest
• NRTEE Stakeholders and Their Expectations
• NRTEE Performance Measurement Framework
• NRTEE Members
• NRTEE Contact Information

Message from the Acting President and CEO

The National Round Table on the Environment and the Economy (NRTEE) had a very productive year in 2011-12, releasing several original research reports and strengthening its brand as Canada’s unique public policy agency on sustainable development.

We continued to issue reports in the Climate Prosperity series examining the risks and opportunities of climate change for Canada. This included a new report on the economic costs of climate change impacts and adaptation titled Paying the Price: The Economic Impacts of Climate Change on Canada. We also released Facing the Elements: Building Business Resilience to Climate Change, providing Canadian businesses and governments with a roadmap, advice, and case studies on how to cope and prosper through climate change.

The policy research program on water sustainability and the natural resources sector was our other key priority for the year. The Table released its second report in this series called Charting a Course: Sustainable Water Use by Canada’s Natural Resource Sectors which analyzed water use by these important economic sectors and how it could be conserved. Our recommendations were the focus of a national water forum in January, 2012, which brought together government and non-governmental experts to consider an action plan to move forward. A further report was published containing the results of the forum.

The NRTEE also fulfilled its obligations under the Kyoto Protocol Implementation Act (KPIA), undertaking a review and assessment of the government’s 2011 KPIA Action Plan. The report represents the fifth response of the Round Table under the KPIA.

In March, 2011, the Minister of the Environment asked the NRTEE to undertake research on two priority issues: (1) emerging trade and market access issues surrounding the increasing use of life-cycle considerations in natural resource and consumer products and markets, and (2) the contributions of provincial and federal climate change actions to Canada’s 2020 greenhouse gas emission reduction target. The NRTEE undertook research and convening activities on both issues with a view to releasing reports in the spring of 2012.

During the fiscal year, the Table held or participated in events in every province demonstrating the national appeal and profile of the NRTEE and its work. These included events on water sustainability, low-carbon economy, climate policy, public engagement, energy and environment, carbon pricing, Canada-US climate policy issues, life-cycle approaches to sustainable development, and more.

The NRTEE continued to exercise strong financial and corporate policy discipline and received the highest score of twelve small departments and agencies audited for core controls over financial management.

For almost 25 years, the National Round Table on the Environment and the Economy has been a catalyst for original, forward looking public policy thinking on how to integrate environmental and economic decision-making. It has sought to create sustainable pathways to reconcile these often competing interests.

Jim McLachlan

Acting NRTEE President and Chief Executive Officer

Section I: Organizational Overview

Raison d’être

The raison d’être, or purpose, of the National Round Table on the Environment and the Economy (NRTEE) is to play the role of catalyst in identifying, explaining, and promoting, in all sectors of Canadian society and in all regions of Canada, principles and practices of sustainable development.

The NRTEE interprets this broad mandate through a strategic focus on issues of national interest at the intersection of the environment and the economy.

Through its work, the NRTEE strives to influence policy development and decisions on issues pertaining to the environment and the economy. These promote economic prosperity for all Canadians while striving to preserve the environment for current and future generations.

Responsibilities

Created in 1988 by the Prime Minister, the NRTEE is an independent national advisory body reporting to the federal government and Parliament through the Minister of the Environment (see Figure 1 for the agency’s internal organization and relationship to the federal government). The Round Table had its status formalized in a 1993 Act of Parliament, Bill C-72, An Act to establish the National Round Table on the Environment and the Economy (NRTEE Act). The NRTEE is a departmental corporation (Financial Administration Act, Schedule II).

Legislative Purpose

• undertaking research and gathering information and analyses on critical issues of sustainable development;
• advising governments on ways of integrating environmental and economic considerations into their decision-making processes and on global issues of sustainable development;
• advising those sectors and regions on ways of incorporating principles and practices of sustainable development into their activities;
• promoting the understanding and increasing public awareness of the cultural, social, economic, and policy changes required to attain sustainable development; and
• facilitating and assisting cooperative efforts in Canada to overcome barriers to the attainment of sustainable development.

National Round Table on the Environment and the Economy Act, Section 4

Drawing on their expertise and insight, the Round Table members direct the work of the NRTEE. The members are part-time Governor-in-Council appointees. They represent different regions of Canada and are distinguished leaders from business, labour, universities, public service, and environmental organizations. A complete list of the NRTEE’s members can be found in section IV.

The Round Table normally meets four times each year in plenary sessions where members discuss priorities and review and approve the work of the Secretariat. A Secretariat in Ottawa, headed by a President and CEO, supports the members. In this context, the Secretariat provides program management, policy and research analysis, communications, and administrative services to the NRTEE members.

General information about the NRTEE and its membership can be found on the agency’s website at www.nrt-trn.ca

Figure 1: NRTEE internal organization and relationship to the federal government

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Strategic Outcome(s) and Program Activity Architecture (PAA)

As approved by the Treasury Board of Canada Secretariat in June 2007, the NRTEE has a single Strategic Outcome and a key program activity, which the NRTEE strives to achieve in the effective pursuit of its mandate. It is as follows:

Federal policy development

Federal policy development and decisions in other key sectors are influenced by advice on sustainable development issues pertaining to the environment and the economy.

Figure 2 illustrates the NRTEE’s framework for its program activity, contributing toward the Agency’s single Strategic Outcome.

Figure 2: NRTEE Program Activity Architecture (PAA)

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Organizational Priorities

Risk Analysis

Context

The NRTEE strives to influence the government’s approach to important sustainable development issues. To accomplish this, the NRTEE must produce and promote relevant, neutral, and credible advice in a timely manner. Its ability to do so is affected by both external and internal factors.

Changes in our operating environment were a challenge for a small agency such as the NRTEE. Key risk factors are discussed below.

Risk Factors and Challenges

• A key indicator of the NRTEE’s performance is its ability to influence government policy development. In Canada, particularly for the issues typically examined by the NRTEE, federal policy is not developed in isolation. It is affected by the government’s relationships with other Canadian and international jurisdictions and by a range of other factors over which the NRTEE has no control, creating a complex decision-making environment. The ability to influence government is a difficult performance indicator to measure, a fact substantiated by feedback from both internal and external stakeholders. In addition to these challenges, the NRTEE’s influence on government decisions may translate into action only years after NRTEE’s reports and recommendations are published. Therefore, the causal effect may not always be clear. The NRTEE continued to struggle with finding ways to overcome these particular challenges.
• The timing of the appointment of new Members to the Round Table has, in the past, posed challenges for the NRTEE in terms of ensuring continuity for its work. The Members’ expertise and insight is critical to directing the NRTEE’s research and analysis. Because of the inherent risk in having insufficient Members and representation of interests, experience, and regional diversity, it is important that appointments occur in a timely manner. With no new Members appointed during the year to fill vacancies, the NRTEE mitigated this risk by broadly consulting with stakeholders to ensure that its work reflects representation from all sectors and regions of the country.
• One of the NRTEE’s unique strengths is its ability to convene disparate groups on difficult issues. This ability stems from it being viewed as a trusted, neutral, and credible organization. As a result there is an implicit reputational risk in everything the NRTEE does. It must carefully guard its position as independent and balanced for it to function successfully within its stakeholder community. The NRTEE continued to manage this risk during 2011-12 by ensuring its research and advice was objective and evidence based, with strong stakeholder input.

Summary of Performance

Summary of Performance Tables

Progress Toward Strategic Outcome

Expenditure Profile

In 2011–12, the Round Table’s spending was $5.36 million. In this period, there were no transfer payment programs or significant shifts in spending. The resource base and associated spending patterns have been very stable for a number of years, with only minor inconsequential variances.

Estimates by Vote

For information on the NRTEE’s organizational Votes and/or statutory expenditures, please see the Public Accounts of Canada 2012 (Volume II). An electronic version of the Public Accounts 2012 is available on the Public Works and Government Services Canada website.

Section II: Analysis of Program Activities by Strategic Outcome

NRTEE Strategic Outcome

The NRTEE has a single Strategic Outcome as approved by the Treasury Board of Canada Secretariat. It is as follows:

Federal policy development and decisions in other key sectors are influenced by advice on sustainable development issues pertaining to the environment and the economy.

The NRTEE’s approach to achieving its Strategic Outcome consists of producing and promoting its policy advice and applying sound management practices in all aspects of its work. The NRTEE’s goal is to increase the understanding of decision makers and Canadians about challenges and opportunities at the intersection of the environment and the economy, and to inform the public policy debate on those questions.

The NRTEE is in the unique position of being an independent policy advisory agency that advises the federal government on sustainable development solutions. It raises awareness among Canadians and their governments about the challenges of sustainable development by advocating for positive change and strives to promote credible and impartial policy solutions that are in the best interest of all Canadians.

During 2011–12, the NRTEE engaged federal departments, agencies, and key national, provincial, and territorial stakeholders in our research, including the stages in which we seek advice and practical solutions. Throughout the course of its work, the NRTEE has continued to suggest ways to make environmental and economic concerns an important part of the government’s decision-making processes and encourage the adoption of its sustainable development recommendations.

In support of the Strategic Outcome, the Main Estimates set out two program activities:

• Advisory Program on Environment and Economy Issues
• Internal Services

Program Activity 1: Advisory Program on Environment and Economy Issues

PA Description

Raising awareness and understanding among Canadians and their governments about the challenges of sustainable development and promoting viable solutions are vital to Canada’s environmental and economic future. Through this program, the National Round Table on the Environment and the Economy (NRTEE) strives to influence policy development and decision making on select sustainable development issues pertaining to the environment and the economy.

The NRTEE conducts research and analysis and produces information and advice on selected sustainable development issues. The agency promotes its findings and recommendations through a variety of communications channels such as media relations, stakeholder briefings and other events, publications, and the agency website to influence policy and decisions of policy makers in the federal government and other key sectors such as other levels of government, industry, and non-government organizations across the country.

Within this Program Activity, two core areas of effort — Produce Advice and Promote Advice — contribute to the expected results described above.

Produce Advice

Producing advice entails conducting original research and convening experts and stakeholders to ensure balance and credibility. The research analyzes the environmental and economic facts and trends underlying each issue. NRTEE members review and approve the resulting policy recommendations. This effort culminates in a report that presents the findings, analysis, and recommendations from the research and consultation process and the consensus of members.

The NRTEE 2011–12 Report on Plans and Priorities (RPP) identified several key initiatives.

(a) Generate Policy Advice

In terms of its policy initiatives in the 2011–12 fiscal year, the NRTEE focused its attention on two critical research areas:

• The economic risks and opportunities of climate change (Climate Prosperity program)
• Water sustainability and Canada’s natural resource sectors

Building on its previous work on climate change, the NRTEE launched its Climate Prosperity program in 2009–2010, focusing on the economic risks and opportunities for Canada related to climate change.

Climate Prosperity is a multi-year policy initiative focusing on two principal research streams:

1. The economic implications for Canada resulting from a changing climate, how we should adapt, and its associated costs.
2. The economic implications for Canada resulting from the transition to a low-carbon economy, what this means for our future competitiveness, and what strategies are needed to succeed.

Efforts in 2011-2012 focused on the three final projects in the Climate Prosperity series which explored the following themes: the economic costs of climate change for Canada, building business resilience in a changing climate, and transitioning to a low-carbon economy.

Climate change will impose costs on Canada as impacts occur and Canadians invest in adaptation. Paying the Price: The Economic Impacts of Climate Change for Canada provides high-level estimates of the costs of climate change for the country as a whole, and assesses the costs of climate change impacts and the costs and benefits of adaptation for three areas of interest: timber supply, coastal areas, and human health.

The effects of more volatile weather and gradual changes in climate conditions will touch all facets of Canadian business in the decades to come. Despite growing awareness of the risks and opportunities that changing climate presents, few firms are adjusting business strategies and practices to adapt to this inevitable reality. Facing the Elements advises business and governments on coping with climate change from a business perspective.

Work also continued on the NRTEE’s Climate Prosperity initiative aimed at developing a low-carbon growth plan for Canada. During 2011-2012, the NRTEE engaged extensively across the country to hear regional perspectives on this project. Quantitative and qualitative research was also undertaken to identify opportunities and challenges in making the transition to a low-carbon economy, particularly in relation to energy, innovation, trade, skills, investment, and governance.

The NRTEE program on Water Sustainability and Canada’s Natural Resource Sectors released a first report, Changing Currents: Water Sustainability and the Future of Canada’s Natural Resource Sectors, in 2010-2011. During 2011-2012, a second phase of this program focused on developing information and advice to ensure the sustainable use of water by the resource sectors. The report, Charting a Course: Sustainable Water Use by Canada’s Natural Resource Sectors, included recommendations in the areas of water forecasting, water quantity data and information, collaborative water governance, and policy instruments.

(b) Comply with Bill C-288

In July 2011, the NRTEE complied with its legislated responsibilities under the Kyoto Protocol Implementation Act (KPIA) by submitting an analysis of the government’s plan to ensure that Canada meets its obligations under the Kyoto Protocol. This was the NRTEE’s fifth response to its obligations under KPIA.

(c) Respond to Government References

In 2011–2012 the NRTEE conducted extensive research and convening in support of two ministerial references. The first reference asked for advice relating to provincial and territorial climate change plans and policies. The NRTEE conducted original research and engaged with stakeholders to conduct a comprehensive assessment of provincial/ territorial climate change plans and policies in order to better inform federal actions aimed at meeting Canada’s 2020 greenhouse gas emissions reduction target. The research included quantitative modeling of the expected emission reductions from existing and proposed climate policies at the federal and provincial/territorial level alongside an assessment of the cost effectiveness of emission reduction actions.

The second reference asked for advice on potential life cycle approaches to enhance environmental sustainability. In developing this report, the NRTEE’s research and convening explored the drivers, risks, opportunities, and challenges related to the uptake of life cycle approaches in Canada. It investigated these issues in the context of the private sector and developed recommendations on how the Government of Canada could support the uptake of life cycle approaches by Canadian businesses. It also explored these issues related to internal federal operations and decision-making processes and identified recommendations for Government of Canada action within key departments.

Promote Advice

On completion of a research program or project, the agency promotes its findings and advice through a variety of communications channels to reach targeted decision makers and opinion leaders across the country. This step is crucial for raising awareness and understanding and for influencing policy development. The NRTEE maintains and updates networks of selected individuals and stakeholder groups as a starting point for these activities.

Two specific initiatives were identified in the 2010–11 RPP:

(a) Enhance Stakeholder Communication Activities

The NRTEE’s independent role and credibility make it a natural and effective convener for matters related to sustainable development. In 2011–12, the NRTEE used its convening ability on a regular basis, generating productive roundtable discussions on a broad range of interests across sectors and regions of Canada. NRTEE staff and Members are regularly asked to meet with or present to various government officials, industry groups, and other stakeholders.

The NRTEE hosted over 40 events. Most of these events were organized as part of the NRTEE’s main research programs.

In January 2012, the NRTEE convened a National Water Forum with 50 Canadian water experts, government representatives, academics, and industry representatives to further refine the recommendations issued in Charting a Course: Sustainable Water Use by Canada’s Natural Resource Sectors and move towards implementation.

In March 2012, the NRTEE brought together officials from the federal and provincial/territorial governments, several NRTEE Members, climate public policy experts, and intergovernmental experts in Kingston, Ontario at an event organized by the NRTEE, in conjunction with the Queen’s University Institute of Intergovernmental Relations. This event informed the NRTEE’s development of a report assessing provincial and territorial climate change plans and the contributions these plans will make toward achieving Canada’s 2020 greenhouse gas emissions target.

Based on a range of feedback mechanisms, the NRTEE was successful in achieving its expected results for the fiscal year.

(b) Improve Strategic Communications

Over the past fiscal year, the NRTEE implemented an initiative to clearly articulate the organization’s strategic positioning and brand and adjust its communications approach accordingly. The initiative established the following three communications objectives: (1) entrench the NRTEE’s relevance among decision makers; (2) present the NRTEE as one of Canada’s most impactful organizations on issues related to environment and economy, and (3) position the NRTEE as an organization with reach, capable of generating consensus and an organization with something to say. With the positioning statement ‘Finding sustainable pathways’, the NRTEE emphasized the high quality of research it provides and its unique convening power on matters related to the environment and the economy, the sum of which is strong, impartial advice to governments.

A key component of this strategy was an overhaul of the NRTEE’s website which presents the wealth of information developed by the NRTEE in an engaging and accessible manner. The organization has also provided more regular updates on its activities through profiling stakeholder events and sharing associated documentation, allowing stakeholders and partners to stay apprised of NRTEE work and developments prior to the publication of final reports. During the 2011-2012 fiscal year, there were 380,000 visitors to the website. In addition to the website, we expanded our web presence though participation in Twitter and other social media channels. This allowed the NRTEE to extend our reach to more than 30,000 people with the release of each NRTEE report.

The NRTEE’s engagement with media continued to grow in 2011-2012, with high levels of attention surrounding the release of various NRTEE reports. The NRTEE experienced its greatest media attention to date with the release of Paying the Price: The Economic Impacts of Climate Change for Canada. More than 700 media stories (print, radio, and television) followed the release of this report. The release of Charting a Course: Sustainable Water Use by Canada’s Natural Resource Sectors also attracted significant attention, with 160 media stories, as did the related stakeholder meeting convened to discuss a path forward.

Program Activity Performance Summary

Performance Summary and Analysis of Program Activity

Although the NRTEE achieved its targets and expected results, it remains a difficult challenge to attribute those successes directly to the achievement of the Strategic Outcome, namely to “Federal policy development and decisions in other key sectors are influenced by advice on sustainable development issues pertaining to the environment and the economy.” While these accomplishments certainly enhance the NRTEE’s ability to achieve its Strategic Outcome, a direct causal relationship is hard to establish as there are many contributing factors outside the control of the NRTEE. Performance measurement in this fashion remained one of the ongoing challenges and risks of the NRTEE, something that has been echoed in feedback from stakeholders.

However, there was direct attribution in several instances during the fiscal year. The Government of Saskatchewan advised that they were using Charting a Course as a valuable reference for the development of their new regulatory framework for water management. The Standards Council of Canada used the findings and recommendations in the True North Report to secure government funding to support a multi-year review and upgrade of northern infrastructure codes and standards.

Performance is in part measured and supported by independent surveys and feedback from stakeholders and NRTEE members. Figures 3 and 4 demonstrate the results of feedback received from participants who were present at numerous NRTEE stakeholder sessions throughout the year. Stakeholders were generally positive in terms of their perceptions of the NRTEE’s potential impact and relevance.

Survey results for the statement “The NRTEE’s work has a significant impact on the way that key decision makers in Canadian governments think about issues that affect the environment and the economy.” Answers from participants from various NRTEE outreach sessions (April 2011-March 2012).

Figure 3: Survey results for Question 1

Survey results for the statement “The NRTEE’s work has a significant impact on the way that key decision makers in Canadian governments think about issues that affect the environment and the economy.” Answers from participants from various NRTEE outreach sessions (March 2010–February 2011).

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Figure 4: Survey results for Question 2

Survey results for the statement “I believe that that the NRTEE’s work is highly relevant to key issues that affect Canada’s capacity to address challenges related to the environment and the economy” Answers from participants from various NRTEE outreach sessions (April 2011-March 2012).

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The high level of downloads of our reports demonstrates a continuing strong interest in the work of the Round Table. Electronic publishing has helped to extend the NRTEE’s outreach to its stakeholders and reduce the number and cost of hard-copy reports. Access to publications via the website has not only permitted immediate access to our stakeholders, it has significantly increased the distribution levels.

Lessons Learned

• The use of social media paired with more frequent updates to the NRTEE website helped maintain stakeholder interest between report releases.
• Extensive media coverage of recent NRTEE reports demonstrated that the subject matter resonates with Canadians and that the communications strategies are effective.
• Convening stakeholders to discuss recommendations following the release of a key report proved to be a useful approach to build momentum for our work.

Program Activity: Internal Services

Performance Summary and Analysis of Program Activity

The 2010–11 RPP identified Applying Sound Management Practices in Operations as the priority for the Internal Services activity. Sound management practices enable the NRTEE to efficiently and effectively deliver on its main program activity.

No specific initiatives were proposed for Internal Services in the 2011–12 RPP; rather, a consolidation and refinement of prior information management and information technology initiatives was identified.

Again for 2011–2012, the NRTEE had no significant findings in the annual financial statement audit by the Office of the Auditor General of Canada. The oversight mechanism of Management Accountability Framework (MAF) assessments for micro agencies such as the NRTEE has been replaced by a core controls audit lead by the Office of the Comptroller General. The NRTEE underwent such an audit during 2011-12 and received the highest compliance score of the 12 agencies audited up to that point.

Lessons Learned

• A flexible, adaptable, cross-trained workforce is essential for a micro agency such as the NRTEE to deliver its objectives.

Section III: Supplementary Information

NRTEE Financial Highlights

The financial highlights presented in this section are drawn from the NRTEE’s financial statements. The financial statements are prepared in accordance with the Government’s accounting policies, which are based on Canadian public sector accounting standards.

The information below is presented in a full cost, accrued basis and does not, therefore, agree with actual spending charged to the appropriations.

Financial Statements

As a departmental corporation listed in Schedule II of the Financial Administration Act, the NRTEE is required to produce an annual report containing its audited financial statements. An electronic version of this report for 2011–2012 may be found on NRTEE’s website at the following link: http://www.nrt-trn.ca/corporate-reporting/annual-report-2011-2012

Supplementary Information Table

Electronic supplementary information tables listed in the 2011-12 Departmental Performance Report can be found on the National Round Table on the Environment and the Economy’s website.

• Greening Government Operations

Section IV: Other Items of Interest

NRTEE Stakeholders and Their Expectations

As the stakeholder map in Figure 5 indicates, NRTEE serves a number of stakeholders, including Cabinet and Parliamentarians, the Minister of the Environment, federal decision makers, and national stakeholders who have an interest in the environment and sustainable development. The figure summarizes the expectations of each of these stakeholders in relation to the NRTEE.

Figure 5: NRTEE Stakeholders and their expectations

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NRTEE Performance Measurement Framework

Figure 6: NRTEE Performance Measurement Framework

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NRTEE Members

NRTEE members meet four times a year to review research, approve reports, and agree on new priorities for action. Members often participate in expert advisory committees and on NRTEE task forces. They bring unique expertise as well as a broader perspective to the Round Table, essential to enriching the NRTEE’s results.

The members (from April 1, 2011 to March 31, 2012) are listed below:

Bob Page (Chair)
Calgary, Alberta (to June 18, 2011)

Robert Slater (Vice Chair)
Ottawa, Ontario

Mark Parent (Vice Chair)
Canning, Nova Scotia (Vice Chair from May 18, 2011)

David Bishop
Regina, Saskatchewan

The Honourable Pauline Browes, P.C.
Toronto, Ontario

Dianne Cunningham
London, Ontario

John V. Hachey
Lachine, Québec

Timothy R. Haig
Oakville, Ontario

Christopher Hilkene
Toronto, Ontario

Franklin Holtforster
Ottawa, Ontario

Robert Kulhawy
Calgary, Alberta

Donald MacKinnon
Toronto, Ontario

Robert Mills
Red Deer, Alberta

Richard Prokopanko
Vancouver, British Columbia

NRTEE President and CEO

David McLaughlin

Biographies and additional information about NRTEE members can be found at http://nrt-trn.ca/meet-our-members.

NRTEE Contact Information

Jim McLachlan
Acting President and Chief Executive Officer
344 Slater Street, Suite 200
Ottawa, ON K1R 7Y3
Tel: 613-947-4507