nrt annual report 2001-2002

7/31/2019 NRT Annual Report 2001-2002

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N ationa l Round Tab le

on the Environment

and the Economy

Tab le ronde na tionale

sur lenviro nnement

et lconomie

Annual Report

2001 2002

National Round Tableon the Environment and

the Economy


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N RTEE M EMBERS

Chair

Stuart L. Smith (to June 21, 2002)ChairmanEN SYN Technologies Inc.

Vice-Chair

Patricia McCunn-MillerM an agin g D irectorEnvironment and Regulatory AffairsEnCana Corporation

Vice-Chair

Ken O gilvieExecutive D irectorPollution Probe Foundation

H arinder P. S. AhluwaliaPresident & CEOIn fo-E lectron ics System s In c.

Paul G. Antle (to June 5, 2002)President & CEOIslan d W aste M an agem ent In c.

Edwin Aquilina*Special Adv isor to the M ayorCity of Ottawa

Jean BlangerOttawa, Ontario

Lise BrousseauLa Prairi e, Q ub ec

Patrick CarsonN obleton , O nt ario

Douglas B. DeaconOwner, Trailside Caf and Adventures

Terry D uguidChairmanM an itob a C lean En vi ronm ent Com m ission

Sam Hamad, P.Eng.Vice-President, Indu stryRoche Lt d. , Con sulti ng Grou p

Michael HarcourtSenior AssociateSustainable D evelopment Research In stituteUniversity of British Columbia

Marie-Claire H lie*Vice-PresidentFinancire Banqu e Nationale

Raymond E. Ivany (to June 5, 2002)PresidentN ova Scoti a Com m un ity College

William Johnstone (to April 8, 2002)M oose Jaw, Sask atch ewa n

Cind y Kenny-Gilday (to June 5, 2002)Senior Ad visorCommunity AffairsD iav ik D iam ond M in es

Emery P. LeBlanc (to October, 2001)President, A lcan Primary M etal Groupand Executive Vice-President, Alcan In c.

Cristina MarquesCo-Owner & Developer of Dreamcoast Homes

Joseph O N eill (to June 5, 2002)H an well , N ew Bru nsw ick

Angus RossChairmanL & A Concept s

Qussai Samak*Union AdvisorConfdration des syndicats nationaux

John WiebePresident & CEOGLOBE Foundation of Canadaand President & CEOAsia Pacifi c Fou nd ati on of C an ada

Judy G. WilliamsPartnerM acKen zi e Fu jisaw a

N RTEE SECRETA RIAT

President & CEO

David J. McGuinty

Executive Assistant to the President & CEO

Nathalie Chalifour

Ad m in istrati ve Assistan t to th e Presiden t & CEO

Juliana Bravo

Corporate Secretary & D irector of Operations

Gene N yberg

Executive Assistant to the Corporate Secretary

H lne Sutton

Policy Advisors

Carolyn Cahill

Meg Ogden

Sara Rose-Carswell

Alexand er Woo d

Lisa Woodward

Program M anager

Karen H bert

Research A ssociate

Claire Aplevich

M an ager of Com m un icat ion s

Mo ira Forrest

Communications Advisor

Kelly Bagg

In form ati on Serv ices O fficer

Edwin SmithCommunications Officer

Christine Choury

D esktop Pub lisher

Kindi Chana

In form ati on H oldi ngs C oordin ator

Angela Kuh n

Office M anager & Conference/M eeting Coordinator

Cathy H eroux

M an ager, Fi na nce & Ad m in istrati on

Pierrette Guitard

Finance & Administration Officers

Michael Hamm ondAnne M ineault

Finance & Administration ClerkD enise D inel-Larivire

Juni or Fi na nce C lerk

Nancy Larivire

Ad m in istrati ve Assistan ts

Lise Blanger

Denise Johnston

Tania Tremblay

Recepti oni sts/Secretaries

Carole Desjardins

Denise Wilson

Printed in Canada o n recycled p aper * Term began on April 9, 2002


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1

N at ion al Rou nd Table on th e Envi ron m ent an d th e E conom y

Annual Repor t 2001-2002

Letter from the Chair and Chief Executive Officer

July 2002

Dear Prime Minister:

We are pleased to submit to you the 2001-2002 Annual Report of the National Round Table on the

Environment and the Economy (NRTEE).

O ur efforts over the last year have focused on facilitating discussion of the environment al and economic

elements of a numb er of key issues of national and in ternational interest. Stakeholders from a wide range of

sectors have contributed to important debates on the development of environment and sustainable development

indicators; ecological fiscal reform; conservation of natural heritage; urban sustainability; and recommendationson measures for inclusion in the federal budget.

O ver the next year, the N RTEE will encourage similar discussion and debate in a n um ber of program areas,

with p articular emphasis on th e developmen t o f a nation al strategy on b rownfield redevelopment, ecological

fiscal reform, environm ent and sustainable development indicators, and urban sustainability. We look forward

to continuing to provide your office with current information and advice throughout 2002-2003.

Yours sincerely,

Jean Blanger D avid J. McGuinty

Acting Chair President and C hief Executive O fficer


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Table of Contents

T he N RTEE: An O verview......... ...................... ....................... ....................... ...................... ....................... ...3T he Year in Review: Program Upd ates ..................... ....................... ....................... ...................... ...................4

C omm un ications and Publications..................................................................................................................8

A Look Ahead ..................... ....................... ....................... ...................... ....................... ....................... ..........9

Statement of Management Responsibility......................................................................................................10

Auditors Repor t ...................... ....................... ...................... ....................... ....................... ...................... .....11

Statemen t of Financial Position ..................... ....................... ...................... ....................... ....................... .....12

Statemen t of O peration s..................................... ...................... ....................... ....................... ...................... .13

Statement of Equity of Can ada .....................................................................................................................14

Statemen t of C ash Flow ..................... ....................... ...................... ....................... ....................... ................15

N otes to the Financial Statemen ts ..................... ....................... ...................... ....................... ....................... .16

Canad a Bu i ld ing , 3 44 S la te r Stree t , Sui te 200 , O t taw a, O ntar io , Canada K1 R 7Y3

Te l . : (613 ) 99 2-718 9 Fax: (613 ) 99 2-738 5 E-mai l : admin@nr tee-t rnee.ca W eb: h ttp : / / ww w.nr tee-t rnee.ca

N ationa l Round Tableon the Environment

and the Economy

Table ronde nationalesur l environnementet l conomie


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3

The NRTEE: An Overview

Who We Are

T he National Round Table on the Environmentand th e Economy (N RTEE) is an independentagency of th e federal governm ent comm itted t o

providing decision makers and opinion leaders with

reliable information and objective views on the

current state of the debate on the environment and

the economy.

T he N RTEEs members are distinguished

Canadians appointed by Governor-in-Council.

Members represent a broad range of sectors

including b usiness, labour, academe, environm ental

organizations and First N ations.

What We Do

T he N RTEE was legislated by an Act ofParliament in 1994 to serve as a catalyst inidentifying, explaining and prom oting th e

principles and practices of sustainable development.

Working with stakeholders across Canada, th e

N RTEE carries out its mand ate by identifying key

issues with bot h environm ental and econom ic

implications, fully exploring these implications, andsuggesting action designed to balance economic

prosperity with environm ental preservation.

Activities are organized into a series of programs,

each of which is overseen by a task force or

committee made up of one or more NRTEE

members and selected representatives from business,

government and non-profit organizations.

T he responsible task force or committ ee

comm issions research, cond ucts national

consultations, reports on areas of agreement and

disagreement, and put s forward reasoned

recommendations for change. The full NRTEE then

reviews these report s and recomm endations prior to

approving and releasing them to the public. The

N RTEE meets four tim es each year to review

progress, establish priorities for the future and

initiate new programs.

In addition to program responsibilities, the

N RTEE administered (un til December 2001) th e

Canadian component of Leadership for

Environment and D evelopment (LEAD ), aninternational training program for promising

individuals from various countries designed to

further their understanding of, and ability to

manage, issues related to sustainable development.

How We Work

Amultistakeholder approach is the hallmark ofthe NRTEEs activities. By creating anatmosphere of trust in which all points of view can

be expressed freely and debated openly, the NRTEE

has established a process whereby stakeholders

themselves define the environment/economy

interface within issues, determine areas of consensus

and identify the reasons for disagreement and t heir

implications for policy and decision m aking.

Each year, the N RTEE undertakes a strategic

planning process to identify key issues to be

addressed over the short and medium term.

Programs are selected which address pressing issues

with both environmental and economic implications

and which have potential for advancing sustainable

development.Making headway in sensitive areas while

maintaining balance is a challenge for stakeholders.

As a catalyst in the process, the NRTEE brings a

round table format to each issue by:

Analyzing th e environm ental and econom ic

facts and trends;

Actively seeking input from key stakeholders;

Drawing together the results of research and

consultation, clarifying the state of the debate;

Pinpoin ting th e consequences of action and

inaction and making recommendations.The round table process is a unique form of

stakeholder con sultation, permittin g progress on

diverse issues with an environmental/economic

interface. The process itself is of value in

overcoming entrenched differences. At the same

time, th e produ cts (reports) for each p rogram

emph asize broad policy developm ent and provide

specific recommendations for action.


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4

Economic Instruments and GreenBudget Reform

The goal of this program has been to advance theuse of market-based approaches for environm entalimprovement in Canada. It is focused on two keycomponents:

1. Greening the Budget

Th e Econom ic Instrum ents and Greeningthe Budget Committee has continued itswork on t he use of econom ic

instruments to improve theenvironment. Central to this program is

the annual Greening the Budget process,held to develop recomm endations for

consideration by th e Finance M inister in th eensuing years bud get. In developin g th is advice,the Round Table strives to achieve a consensusamon g stakeholders around sustainabledevelopment initiatives acceptable to all parties.

Building on th e priorities and them es containedin last years submission, the Greening the BudgetSubmission 2001 included recommendations thatreflected current N RTEE program areas, includingcontam inated sites redevelopment and efforts toprom ote a m ore integrated p olicy developm entprocess for sustainable developm ent, throu gh t heecological fiscal reform initiative.

Stakeholder meetings were held to examineproposed m easures and streamline therecommendations into five key measures that wereultimately presented t o th e M inister of Finance andthe H ouse of Comm ons Standing Com mittee onFinance. Specifically, the 2001 Greening the

Budget Submission called for federal action in fivekey areas:

Encouraging sustainable opp ortun ities fornorthern Aboriginal communities;

Remediation of contam inated sites in C anada;

Preserving C anadas nat ural h eritage;

Exploring the linkages between theenvironm ent and h uman health;

Building capacity for ecological fiscal reform.

In D ecemb er, th e Min ister of Finance asked th eN RTEE to d evelop a N ational BrownfieldRedevelopment Strategy in his 2001 Budgetspeech.

2. Ecological Fiscal Reform

The Economic InstrumentsCommittee, through the EcologicalFiscal Reform (EFR) program, isexploring potential strategies toredirect both government taxation

and expenditure programs to create anintegrated set o f incentives supp orting

the shift to sustainable development. The goal of theprogram is to gain insight into the key challengesand opportunities related to EFR, deduce guidingprinciples to apply to a broader range of sustainabledevelopment issues, and to begin the development ofrecomm endations on im plementing EFR in Canada.

A series of case studies was undertaken toillustrate how EFR might be successfully applied.T he case stud ies included: EFR an d agricultu rallandscapes to examine how to design economic

incentives to help farmers across Canada conserverather than cultivate ecologically sensitive lands;

cleaner transportation on how to develop a set ofeconomic instruments to complement regulationsassociated with the Government of Canadas CleanAir Action Plan; and chemical substances of concern to examine how EFR instruments could encouragebetter life-cycle management of certain chemicalsubstances relating to the Canadian EnvironmentalProtection Act.

At a meeting in October, the Expert AdvisoryGroup concluded that there is a role for EFR inCanada and that it can offer many benefits. Toimprove visibility and gain support for the workcompleted, the case studies became the basis of theEFR Phase 1 report entitled Toward a Canadian

Agenda for Ecological Fiscal R eform : First S teps. Thereport highlights the work carried out on two of thethree case studies, namely agricultural landscapes andcleaner transportation, as examples of

The Year in Review: Program Updates


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5

experimentation that are helping define the scope ofopportunities and barriers to EFR. This report waspublished in March.

Ultimately, the program will provide decisionmakers with a critical examination of key issuesconcerning t he implementation of ecological fiscalreform measures. Examples of such im portant issuesare revenue neutrality, international competitivenessand jurisdictional competence in implementing anintegrated, market-based approach to sustainabledevelopment in Canada.

Measuring Eco-ef f iciency

Eco-efficiency is a practical approach that businessesare adopting in setting and achieving theirenvironment al performance objectives. Measuringthese goals in a standardized manner will allowuseful dialogue and permit easy comparison between

divisions, companies and business sectors.Und er its Measuring Eco-efficiencyprogram, the NRTEE has proceeded withthe testing of material and energy eco-efficiency indicators. A pilot project,

M easurin g Eco-eff icien cy in Bu siness:

D eveloping a Core Set of Eco-efficien cy

In dicators, was carried out during 1997 and 1998.With support from Environment Canada, the

program was expanded to involve the activeparticipation of 12 companies* from themanufacturing sector in Canada. These companiestested t he value of th e energy and material intensityindicators to their bu sinesses. They refined t hedefinitions, decision rules and complementaryindicators and developed a workbook that allcompanies can u se to calculate indicators in aconsistent, transparent, credible and standardizedmanner. The final report and workbook werereleased in June.

A series of cross-country workshops to teach

company technical representatives how to u se thetools of eco-efficiency, including the workbook, havebeen planned for the spring and fall of 2002.

* T he participating com panies were: T etra Pak Ltd., H usky

In jection M olding System s Lt d., General M otors of C anada ,

St. Lawrence Cement, Dupont Canada Inc., Alcan Aluminium

Li m ited , B ASF Canada In c., N exfor In c. (a N ordbord subsidiary) ,

D ofasco Inc., T ran sAlta U ti liti es Corporat ion , A tom ic Energy of

Canada L imited and N estl Canada In c.

LEAD Canada

LEAD (Leadership for Environm ent andD evelopment) Canada is a two-year trainingprogram that seeks to ensure that future decisionmakers understand the challenges of sustainabledevelopment and are equipped to meet them. Twelve

LEAD programs around th eworld each choose up to 15

prom ising m id-careerprofessionals to take part in the

program each year. Participants(called Associates) are exposed to a

nu mber of substantive issuesrelated t o sustainable development

and gain skills in a variety of areas

including conflict resolution, stakeholder dialogueprocesses, change management, cross-culturalcommunication and public presentation. At thesame time, Associates undertake a self-directedcourse of study that is designed to complement theirprofessional activities.

In September, Cohort 8 attended its finalinternational training session and graduation inMoscow. T he session explored th e th eme

D isin tegration or Integration: T he Su stain abili ty of

Societies in Transition . The session included three casestudies with site visits to the Republic of Moldova,

the Republic of Armenia, and the Republic ofKalmykia.

D ue to a significant decrease in fun ding,bud getary constraints and a re-evaluation ofopportunities and priorities for the future, theNational Round Table ended its relationship withLEAD International as the host institute for theCanadian program in D ecember. LEAD CanadaInc. is now a stand-alone non-governmentalorganization. The new non-governmentalorganization is directed by a committed group ofCanadian LEAD Associates and Fellows.

Aboriginal Communities andNon-renewable ResourceDevelopment

In 19 98, the N RTEE launched a program to explorethe relationship between Aboriginal communitiesand non-renewable resource development from the


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6

perspective of sustainability. The N RTEEidentified econom ic vitality, environm entalintegrity, social and cultural well-being,equity and control over natural resourcesas key indicators of sustainability for

Aboriginal communities. The goal of theAboriginal Comm unities and Non-

renewable Resource Development program was todetermine measures that must be taken to ensure thatnon -renewable resource development in CanadasNorth over the next 10-25 years supportseconomically viable, self-sufficient and socially healthyAboriginal communities without compromising theecological integrity of the environm ent.

The final report, entitled Aborigin al Com m unit iesand N on-renewable Resource D evelopment State of

the D ebate, was released in Yellowknife, NT inJune. A forum was held immediately after therelease to provide decision makers with advice onways to improve capacity building in Aboriginalcomm un ities. O ver 80 key representatives from thefederal, territorial and Aboriginal governments,indu stry, educational institutions and othersattended.

Environment and SustainableDevelopment I ndicators I nit iati ve

T he goal of th e N RTEEs three-year Environmentand Sustainable D evelopm ent Indicators (ESD I)Initiative is to generate a national set of indicators

that will integrate environm entalconsiderations into economic decisionmaking. It is intend ed th at th ese will beused by governments, business, and civilsociety.

The initiative originates from theNRTEEs Greening the Budget 2000

recomm endations and came to fruition t hroughfunding in the 2000 federal budget.

The ESDI Initiative entered its second phase ofthe three-phase program. The objective of this phasewas to define specific indicators. To facilitate this,cluster groups of experts were convened to provideadvice to the Steering Committee to help identify andselect n ational indicators. The emphasis of the clustergroups work was to develop indicators that are readyfor use in the short term. Six cluster groups were

convened to add ress the following issues: humancapital; non-renewable resources; land and soils;renewable resources; air quality and atmosphericcondit ions; and water resources.

At a breakfast event hosted by the NRTEE inMay, the Finance Minister expressed support for thedirection being taken in the ESDI Initiative. Hisspeech, entitled Measuring Progress Towards a MoreSustainable Economy, emphasized the need for thedevelopment of new environmental indicators toprom ote sustainable decisions in the futu re. Over 600people from the financial and other sectors attendedthe event in Toronto, O N . As well, the N RTEE h elda panel discussion at Globe 2002 in March inVancouver, BC. Over 250 people attended the sessionon the progress of the ESDI Initiative and the

potential indicators being examined. The draftindicators will be presented at a one-day conference inOttawa on June 19, 2002.

Conservation of Natural Heritage

Canadas natural riches are unparalleled in theworld, creating both an opportunity and

responsibility for it to act as a globalsteward. Canadians expect ourparks and special conservationareas to p rotect our n atural

heritage. Core protected areas areonly one elemen t of a broader

plan needed to do the job. Withover a century of experience with parks and

other protected areas, we are learning that these areinsufficient to maint ain our natu ral ecosystems andwildlife species.

The goal of the Con servation of N aturalHeritage program is to encourage Canadians at alllevels to undertake stewardship of the land andwaters, addressing not just public but also privatelands; and to shape and supp ort n ew tools that will

help C anadians to b etter conserve, restore andmaint ain th e long-term h ealth of ecosystems.

Establishing a national1 network of prot ectedareas2 nested within a larger, sustainably managed

1 National refers to initiatives by all levels of government.

2 Recognizing that there are many different kinds of

protected areas, from permanently protected parks to

conservation easements, etc.


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(working) landscape is needed. T his landscape-levelapproach t o conservation includes exploringconnectivity between core reserves as an importantnew goal. It is based on the knowledge thatprotected areas, while fundamental to anyconservation strategy, are not adequate in and ofthemselves to conserve biodiversity over time.

The task force met in May, July, August and

January to review the key issues, barriers, and bridges

to successful nature conservation. Included in this

review was an examination of potential economic

instruments that could complement and encourage

conservation in Canada. In November, the NRTEE,

in partnership with the Manitoba Round Table for

Sustainable Development, hosted a nature conference

in Winnipeg, MB entitled Conservation that Works!

This unprecedented conference, attended by over600 participants, examined barriers facing industry,

agricultural producers, and Aboriginal and resource

communities and explored innovative approaches and

tools created by the private sector, governments, First

Nations, and conservation groups.

Urban Sustainability

T he world is experiencing unp recedented

urbanization and Canada is no exception: whereas

90 per cent of Canadians lived in rural

regions in 1900, more than 80 per cent

live in urban centres in 2001. With this

in m ind, it is becoming increasingly

evident that cities are major drivers of

economic activity and, as such, a nations

competitive advantage is directly related to the

performance of its cities.

The goal of the Urban Sustainability program is

to catalyze momentum toward alternative or m ore

coherent strategies, based upon sustainable

developm ent p rinciples, that aim t o imp rove the

quality of life in an d comp etitiveness of Canadascities or urban regions. The objectives of the program

fall within two tracks: EFR in support of urban

sustainability which will examine in novative fiscal

measures for all three levels of Canadian government

to support u rban sustainability; and indicators of

environmental quality which might be used to

publish a report on the state of Canadian cities.

The NRTEE sponsored a Town Hall on Buildinga Sustainable Comm unity at the O ttawa 2020 SmartGrowth Summit in June. Presentations were made tothe Prime Ministers Caucus Task Force on UrbanIssues and at t he Policy Research In itiativesBrin gingCom m un ities Togetherconference in December. TheNRTEE task force met in January and March toreview the program plan and determine areas forprelimin ary research. In February, th e N ationalRound Table sponsored and made a presentation atth e Cities & Transportation: Choices & Consequencesconference held in Vancouver by the In ternationalCentre for Sustainable Cities.

National BrownfieldRedevelopment Strategy

In response to a mandate announced by the

Finance Minister in his December 2001 budget,

the National Round Table has

launched a brownfield

redevelopment strategy program.

In h is bud get speech, th e

Minister declared: Across

Canada, as in most countries,

contam inated land lies unused an d

unproductive. Such sites, known as brownfields, may

have the potential for rejuvenation, bringing bothhealth and economic benefits to local communities.

T herefore, responding to the G overnm ent, the N RT EE

has agreed to develop a N ational B row nfi eld

Red evelop m ent St rategy in order to ensure th at

Canada is a global leader in remediation.

The goal of the National Brownfield

Redevelopment Strategy program is to develop a

national strategy that incorporates federal,

provincial and municipal measures that will

facilitate the redevelopment of brownfields in

Canada. The strategy will produce a series of

measures designed to alleviate what are generallyconsidered to be the key barriers to brownfield

redevelopment, including: legal un certainty

surrounding environmental liability; lack of

financing and funding; and perception problems

and lack of stakeholder awareness. The National

Brownfield Redevelopment Strategy will be released

in N ovemb er.



7


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8

Domestic Emissions Trading

At the request of th e Prime Min ister of Canada,

the NRTEE undertook an initiative to broaden

awareness and u nd erstandin g of the con cept

of greenhouse gas emissions trading

amon g key opinion leaders.

Working in partnership with the

Canadian Ch amber of Comm erce,

Pollution Probe and the Centre patronal

de lenvironn ement du Q ubec, this project

laid t he ground work for national discussions on the

role emissions trading may play within Canadas

respon se to climate chan ge und er the Kyoto

Protocol. Its ob jective was to raise awareness and

basic literacy on domestic emissions trading among

those who were not yet well versed in this area.The main components of this project were a

new set of backgroun d materials on dom estic

emissions trading and a series of information

semin ars that occurred in Janu ary in H alifax,

Calgary, Montreal, Toronto and Vancouver, and in

O ttawa in M arch. At each event, local, nation al

and international experts in emissions trading

shared their insights and expertise on the basic

workings of emissions trading and discussed

progress to date domestically and internationally.The seminars were designed to broaden basic

understanding of emissions trading among industry

groups and o thers who would p otentially play a

role should emissions trading be adopted as part of

Canadas climate change response. The timing was

key, as the federal government had stated its

intention to hold national consultations on

Canadas climate change strategy in the late spring

of 2002, in advance of a decision on ratification of

the Kyoto Protocol to the United Nations

Framework Convention on Climate Change.

By the end of the series, approximately 1,200

people had atten ded th e semin ars, representing

mo re than 15 sectors of the business commu nity, as

well as environm ental organizations and mu nicipal

and provincial levels of government.

Communications and Publications

In 2001-2002, th e NRT EE continued to work toensure that decision m akers, the m edia and thepublic recognize it as a leader in providingobjective views and analytical information on the

state of the debate on the environment and the

economy in Canada. The NRTEE was extremely

active this year, releasing an eco-efficiency

workbook for in dustry, a State of the Debate report,

and other m aterial. As well, th e Roun d Table

received extensive n ational m edia coverage

throughout the year on a variety of issues including

Aboriginal comm un ities and non -renewable

resource development, brownfield redevelopment

and dom estic emissions trading.

T he Web site has continu ed to disseminate key

information to stakeholders and members of the

pub lic. T he N RTEE Virtual Library feature allows

people to easily access over 15 0 N RTEE

docum ents on sustainable development . Th e Web

site continued to be the primary information

source for the Greening th e Budget 20 01recommendations, the background material for the

domestic emissions trading initiative, proceedings

and presentations from the Conservation of

N atural Heritages nation al conference,

Conservation that Works!, the N RTEE e-Brief (a

monthly e-mail update on current events and

program information) and NRTEE Executive

Briefs (a bi-monthly brief highlighting the work of

N RTEE programs). T he int eractive Flash

presentations o fAchi evi ng a Ba lan ce: Four

Ch allenges for Canada i n the N ext D ecade and

Calculati ng Eco-efficiency Indi cators: A W orkbook for

In du stry, the Conservation of Natural Heritage

conference proceedings and presentations, and the

backgroun d material for t he do mestic emissions

trading awareness initiative, including T he ABC s of

Em issions Trading, O ther C ount ries Experience and

Frequently Asked Questions are all available free of

charge on the NRTEE Web site.


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T he coming year, 2002-2003, will be an activeone for the N RTEE. T he following are the keyinitiatives planned for next year:

T he Environm ent and Sustainable

D evelopm ent Indicators (ESD I) Initiative will

move into the final phase of the three-year

program. Feedback on the draft environment and

sustainable development indicators that have

been developed by the expert cluster groups will

be solicited, at both a national conference and

workshop in June and among smaller working

groups. The goal is to generate a national set of

sustainable development indicators that will be

practical, feasible, well accepted and used widely

in Canada following the release of the final

report, expected in March 2003.

T he Economic Instruments program will

concentrate its efforts on stimulating discussion

about and promoting Ecological Fiscal Reform

over the next two to three years, while

continuing to make annual pre-budget

submissions to the Department of Finance.

T he Measuring Eco-efficiency programs

Calculat in g Eco-efficiency In dicators: A W orkbook

for In du stry will be part of a cross-country series

of two-day eco-efficiency workshops for business

entitled Bu ild in g Su stain able Enterprise. Five

Winds International is organizing the workshops

in partnership with the N RTEE, Environm ent

Canada, Industry Canada, Natural ResourcesCanada as well as several regional partners. The

workshops will be held in the spring and fall.

T he Urban Sustainability program will make a

presentation at the Canadian Institute of

Planners Annual Conference in Vancouver in the

spring. The programs State of the Debate report

will be released in the spring of 2003.

T he National Brownfield Redevelopment

Strategy program will host a two-day experts

workshop in June. Th e final strategy will be

released in November 2002 and submitted to the

Department of Finance so its recommendations

can be considered for the next federal bud get,

expected in February 2003.

T he Con servation of N atural H eritage

programs State of the Debate report will be

released in the spring of 2003. It will be actively

communicated throughout the following year

during a cross-country tour.



9

A Look Ahead

The NRTEE released and widely promoted the

following publications over the year:

Ab origin al C om m unit ies and N on-ren ewable

Resources A State of th e D ebate Report

Calculati ng E co-efficiency In dicators: A W orkbookfor In du stry

Toward a Canadian Agenda for Ecological Fiscal

Reform : First Steps

N RTEE p ublications continued to be marketedand distributed on a partial cost-recovery basisthrough Renouf Publishing Co. Ltd.


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10

National Round Table on the Environment and the Economy

Statement of Management Responsibility

For the Year ended March 31, 2002

The objectivity and the integrity of the financial statements and related information presented in this annual

report are the responsibility of management and have been examined by the Executive Committee of the

Round Table.

These financial statements have been prepared on an accrual basis of accounting in accordance with Treasury

Board of Canada standards based on Canadian generally accepted account ing principles. T hese statement s

should be read within the context of the significant accounting policies set out in the notes.

Management has developed and maintains books, records, internal controls and management practices,

designed to provide reasonable assurance that the Governments assets are safeguarded and controlled, resourcesare managed econom ically and efficient ly in th e attainm ent of the Roun d Tables objective and that transactions

are in accordance with the Financial Administration Actand regulations as well as department policies and

statutory requirement s. Management also seeks to assure the objectivity and integrity of the information in the

financial statements by the careful selection, training and development of qualified staff, by organizational

arrangements that p rovide appropriate divisions of respon sibility, and by comm unications p rograms aimed at

ensuring that its regulations, policies, standards and managerial authorities are understood throughout the

organization.

The transactions and financial statements of the Round Table have been audited by the Auditor General of

Canada, the independent auditor for the G overnment of C anada.

Approved by:

D avid J. McGuinty Eugene Nyberg

President and Corporate Secretary and

Chief Executive O fficer D irector of O perations

Ottawa, CanadaJune 21, 2002


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11

Auditors Report

To the National Round Table on th e Environment and th e Econom y

and the Prime Minister

I have audited the statement of financial position of the National Round Table on the Environment and the

Economy as at March 31, 2002 and the statements of operations, equity of Canada and cash flows for the year

then ended. T hese financial statements are the responsibility of the Roun d Tables management . My respon sibility

is to express an opinion on these financial statements based on my audit.

I conducted my audit in accordance with Canadian generally accepted auditing standards. Those standards

require that I plan and perform an audit to obtain reasonable assurance whether the financial statements are free

of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and

disclosures in the financial statements. An audit also includes assessing the accounting principles used and

significant estimates made by management, as well as evaluating the overall financial statement presentation.

In my opinion, these financial statements present fairly, in all material respects, the financial position of the

Round Table as at March 31, 2002 and the results of its operations and its cash flows for the year then ended in

accordance with Canadian generally accepted accoun ting p rinciples.

Richard Flageole, FCA

Assistant Auditor General

for the Auditor General of Canada

Ottawa, Canada

June 21st, 2002


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Statement of Financial Position

As at March 31, 2002 with comparative figures as at April 1, 2001

2002 2001

$ $

ASSETS

Financial Assets

D ue from C onsolidated Revenue Fund 850,733 1,154,916

Receivables (N ote 5) 51,235 32,890

Publication inventory for resale 62,642 67,010

964,610 1,254,816

Non-Financial AssetsPrepayments 12,765 4,750

Capital assets (No te 6) 398,17 6 133,62 9

410,941 138,379

TOTAL ASSETS 1,375,551 1,393,195

LIABILITIES AND EQUITY OF CANADA

Current Liabilities

Accounts payable and accrued liabilities (N ote 7) 978,644 1,169,041

D eferred revenue (N ote 8) 73,774

978,644 1,242,815

EQUITY OF CANADA 396,907 150,380

TOTAL LIABILITIES AND EQUITY OF CANADA 1,375,551 1,393,195

Comm itments (Note 9)

The accompanying notes form an integral part of these Statements.

Approved by:

Stuart Smith D avid J. McGuinty

C hair President and C EO


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Statement of Operations

For the Year ended March 3 1

2002

$

REVENUE

Funding from O ther Government D epartments (Note 4) 1,289,000

D onations and Cost-sharing Revenue (N ote 8) 283,155

Sale of publications 9,184

TOTAL REVENUE 1,581,339

EXPENSESOperating

Professional and special services 2,49 3,58 9

Salaries and employee benefits 2,002,706

Transportation and communication 861,078

Publications 764,076

Rentals 325,552

Furniture and equipment 106,300

Utilities, materials and supplies 51,236

Amortization 47,056

Repairs and maint enance 22,24 2

6,673,835

Executive C om mittee

Travel and living expenses 14,650

Honoraria 3,970

18,620

Other Com mittees

Travel and living expenses 189,800

H onoraria 130,405

320,205

TOTAL EXPENSES 7,012,660

NET COST OF OPERATIONS 5,431,321

T he accomp anying notes form an integral part of t hese Statement s.


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14


Statement of Equity of Canada


2002

$

Equity of C anada, beginning of year 150,380

N et C ost of O perations (5,431,321)

Services provided without charge (N ote 4) 227,000

N et change in due from Consolidated Revenue Fund (304,183)

N et C ash Provided by Government 5,755,031

Equity of Canada, end of year 396,907

The accompanying notes form an integral part of these Statements.


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15


Statement of Cash Flow


2002

$

Operating Activities

N et C ost of O perations 5,431,321

N on-C ash item s included in cost of operations:

Less: Amortization of capital assets (47,056)

Services provided without charge (227,000)

Statement of Financial Position adjustments:

D ecrease in deferred revenue 73,774D ecrease in account s payable and accrued liabilities 190 ,397

Increase in receivables 18,345

D ecrease in publications inventory for resale (4,368)

Increase in prepayments 8,015

Cash used in operating activities 5,443,4 28

Investing Activities

Acquisition s of capital assets 311 ,603

Cash used in investing activities 311 ,603

Net cash p rovided by G overnment 5,755,031

T he accomp anying notes form an integral part of t hese Statement s.


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Notes t o t he Financial Sta t ement s

For the Year ended March 31, 2002

1. Authority and Purpose

The National Round Table on the Environment and the Economy (Round Table) was established in 1994

under the N at ion al Round Table on th e E nvi ronm ent an d th e E conom y Act and is a departmental

corporation named in Schedule II of the Financial Adm inistration Act. The Round Table fulfils its

objective of promot ing sustainable developm ent, and the int egration of the environm ent and econom y in

decision making in all sectors, by conducting studies, organizing multistakeholder dialogues on specific

issues and economic sectors, providing advice, carrying out educational and communication activities,

and by acting as a catalyst for change. Its operating expenditures are funded mainly by a budgetary

lapsing authority and, to a lesser extent from cost recovery and cost sharing for specific activities.Employee benefits are in accordance with the related statutory authorities.

2. Summary of Significant Accounting Policies

These financial statements have been prepared on an accrual basis of accounting in accordance with

Treasury Board of Canada standards based on Canadian generally accepted accounting principles.

Significant account ing p olicies are as follows:

a) D ue from Co nsolidated Revenue Fund (CRF)

The Round Table operates within the Consolidated Revenue Fund (CRF). The CRF is administered

by the Receiver General for Canada. All cash received by the Round Table is deposited to the CRF

and all cash disbursements m ade by the Roun d Table are paid from th e CRF. D ue from th e CRF

represents the amou nt of cash that t he Roun d Table is entitled to d raw from the C onsolidated

Revenue Fun d, with out further app ropriations, in order t o discharge its liabilities.

b) Pension Plan

The Round Tables employees participate in the Public Service Superannuation Plan administered by

the G overnm ent of C anada. The emp loyees and the Rou nd Table cont ribute equally to th e cost of th e

Plan. Th e Round Tables cont ribution in th e year was $208,516. T he contribu tions represent t he total

obligations of the Round Table and are recognized in the accounts in the period that the contributions

are made.

c) Receivables

These are stated at amounts ultimately expected to be realized. An allowance is made for receivables

where recovery is considered uncertain.

d) Publication Inventory for ResaleAn independent distributor sells the Round Tables publication inventory for resale. The distributor is

entitled to a 50% commission fee on the sale price of each publication sold. Inventory for resale is

valued at net realizable value, which is always less than cost.


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17

e) Capital Assets

Capital assets with an acquisition cost of $2,000 or more are capitalized at cost and amortized over

th eir estim ated u seful lives on a straight-line b asis. Th e estim ated u seful life of each capital asset class is

as follows:

Asset Class Useful LifeInformatics Equipment and Purchased Software 3 years

Furniture and Equipment 10 years

Leasehold Improvemen ts lower of lease term and

10 years

f) D eferred Revenue

Deferred revenue includes revenues received in advance of the services to be provided and the funds

received from external parties for specified purposes. Deferred revenue is recognized as operational

revenu es when t he related services are provided.

g) Services Provided Without Charge by Other Government D epartments

Services provided without charge by other government departments are recorded as expenditures at

their estimated cost. A correspon ding am oun t is credited d irectly to the Equ ity of Canada.

h) Measurement Uncertainty

T he preparation of financial statement s requires managemen t t o m ake estimates and assumpt ions that

affect the amounts of assets, liabilities, revenues and expenses reported in the financial statements. At

the t ime of preparation of these statement s, management believes the estimates and assumpt ions to b e

reasonable. The most significant item where estimates are used are amortization of capital assets and

write-down and write-offs of inventory of publications for resale.

3. Changes in Accounting Policies

In prior years, th e Roun d Table prepared on ly a Statement of O perations using a m odified-cash basis of

accounting. This is the first year that the Round Table has prepared a full set of financial statements on an

accrual basis in accordance with Treasury Board of Canada standards based on Canadian generallyaccepted accounting principles. The significant changes are as follows:

a) Financial Statement Presentation and Com parative Figures

In prior years, the Roun d Table financial statement consisted of a Statement of O perations and n otes

to t he statement. T he Rou nd Tables March 31 , 200 2 financial statement s contain a Statement of

Financial Position, a Statement of O perations, a Statement of Equity of C anada, a Statement of Cash

Flow and notes to the financial statements. It is neither practical nor cost effective for the Round

Table to show comparative amoun ts on th e Statement s of Op erations, Equity of Can ada and C ash

Flow because the information is not readily available and any estimation of previous years amounts

would n ot b e able to be substant iated with any degree of precision. C omp arative amoun ts are

presented on ly on t he Statement of Financial Position.

b) ReceivablesIn prior years, revenues were recognized on a cash-basis. During the year, the Round Table

retroactively changed its accounting policy for receivables to that described in note 2 c).

c) Publication Inventory for Resale

In prior years, publication inventory for resale was charged to operations on a cash-basis. During the

year, the Round Table retroactively changed its accounting policy for publication inventory for resale

to that described in note 2 d).


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18

d) Capital Assets

In prior years, purchases of capital assets were charged to operating expenditures in the year of

acquisition. For fiscal year 2002, the Round Table retroactively changed its policy of accounting for

capital assets. Th e costs are now capitalized and amortized over th eir estim ated u seful lives as detailed

in n ote 2 e). D uring th e year, capital assets acquisitions in th e amoun t of $3 11,603 , which would havepreviously been expensed, have been capitalized. Amortization expense in the amount of $47,056 has

been recorded in the Statement of Operations.

4. Related Party Transactions

The Round Table is related in terms of common ownership to all Government of Canada departments,

and C rown corporations. The Rou nd Table ent ers into t ransactions with these ent ities in t he norm al

course of business and on norm al trade terms.

During the year, the Round Table received funding in the amount of $1,289,000 from other government

departm ents for specific projects, including $1.2 million from En vironm ent C anada.

T he Rou nd Table also in curred expenses of $1,055,8 53, including $2 27,000 for services provided

without charge. Services provided with out charge include $1 85,00 0 for t he rental of space, $40 ,000 for

audit services and $2,000 for payroll administration services.

5. Receivables (Net of Allowances)

2002 2001

O ther Government D epartments 34,991 30,000

External Parties 16,24 4 2,890

Total Receivables (net of allowances) 51 ,235 32,890

6. Capital Assets

Cost as at N et C ost as atApril 1, 2001 Additions March 31, 2002

Leasehold Imp rovements 182,52 1 182,52 1

Informatics and Purchased Software 123,951 93,800 217,751

Furniture and Equipment 106,944 35,282 142,226

230,895 311,603 542,498

Accumulated Net Book Value Net Book Value

Amortization at March 31, 2002 at April 1, 2001

Leasehold Imp rovement 3,030 179,49 1

Informatics and Purchased Software 93,717 124,034 63,225Furniture and Equipment 47,575 94,651 70,404

144,322 398,176 133,629

Amortization expense for the year ended March 31, 2002 is $47,056.


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7. Accounts Payable and Accrued Liabilities

2002 2001

Trade 782,454 1,132,729

O ther Government D epartments 196,190 36,312

Total Accoun ts Payable and Accrued Liabilities 978 ,644 1,16 9,04 1

8. D eferred Revenue

2002 2001

O pening Balance 73,774 197,852

Add: funds received during the year 209,381 51,044

Less: amoun ts recognized durin g the year (283,15 5) (175,12 2)

C losing Balance 73,77 4

9 . CommitmentsAs at March 31, 2002 the Round Table has entered into a long-term lease for an office photocopier with a

remaining value of $59,490. The future minimum payments are as follows:

2002/03 $12,100

2003/04 $12,100

2004/05 $12,100

2005/06 $12,100

2006/07 $11,090


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10 .Parliamentary Appropriations

T he Rou nd Table receives the majority of its funding t hrough Parliamentary appropriations, which are

based p rimarily on cash flow requirements. Items recognized in the Statement of O perations and

Statemen t of Equity of C anada in on e year may be fun ded th rough Parliamen tary appropriations in prior

and future years. Accordingly, the Round Table has different results of operations for the year on agovernment funding basis than on an accrual basis of accounting. These differences are reconciled below.

a) Reconciliation of net results of operations to to tal Parliamentary appropriations used:

2002

N et Cost of O perations 5,431,321

Adjustm ents for items n ot affecting approp riations:

Less: Amort izat ion (47,056)

Services provided without charge (227,000)

Vacation pay and compensatory time (34,998)

Inventory used (4,368)

Add: Increase in prepayments 8,015

Increase in receivables 18,345

5,144,259

Adjustments for items affecting appropriations:

Add: Capital acquisitions 311,603

Less: Expenses to produce publications for resale (9,184)

302,419

Total Parliamentary Approp riations Used 5,446 ,678

b) Reconciliation o f Parliamentary appropriations voted to Parliamentary appropriations used:

2002

Parliamentary appropriation voted:

Vote 40 and 40(b) O perating expenditures 5,331,500

Statutory appropriation voted:

C ontributions to employee benefit plans 308,000

Publication revenue in accordance with section 29.1(1) of

th e Financial Adm inistration Act 9,184

5,648,684

Less: Lapsed appropriations operations (202,006)

Total Parliamentary Approp riations Used 5,446 ,678

nrt annual report 2001-2002

Documents