Report of the Commissioner of the Environment and Sustainable Development

Transcription

1 Fall 2013 Report of the Commissioner of the Environment and Sustainable Development CHAPTER 8 Federal and Departmental Sustainable Development Strategies Office of the Auditor General of Canada

2 The Report is available on our website at For copies of the Report or other Office of the Auditor General publications, contact Office of the Auditor General of Canada Distribution Centre 240 Sparks Street Ottawa, Ontario K1A 0G6 Telephone: , ext. 5000, or Fax: Hearing impaired only TTY: Ce document est également publié en français. Her Majesty the Queen in Right of Canada, represented by the Minister of Public Works and Government Services, Cat. No. FA1-2/ E-PDF ISBN ISSN

3 CHAPTER 8 Federal and Departmental Sustainable Development Strategies

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5 Main Table of Contents Federal and Departmental Sustainable Development Strategies 1 Main Points 1 Introduction 3 Part 1: Review of the Draft Federal Sustainable Development Strategy 5 Part 2: Review of The 2012 Progress Report of the Federal Sustainable Development Strategy 21 Part 3: Review of Departmental Progress in Implementing Sustainable Development Strategies 37 Chapter 8 iii

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7 Federal and Departmental Sustainable Development Strategies Main Points What we examined Sustainable development is based on the ecologically efficient use of natural, social, and economic resources. For Canadians, this includes sustaining our natural resources, protecting the health of our people and ecosystems, and improving our quality of life and well-being. The Federal Sustainable Development Act requires the Minister of the Environment to prepare a Federal Sustainable Development Strategy (FSDS). The Act also requires certain departments and agencies to prepare their own sustainable development strategies that contribute to the FSDS. The Commissioner of the Environment and Sustainable Development is required under the Act to review whether the targets and implementation strategies in the draft Federal Sustainable Development Strategy can be assessed. The Commissioner is also required under the Auditor General Act to review the fairness of the government s progress report on implementation of the FSDS, as well as monitor and report on individual departments progress in implementing their own sustainable development strategies. This chapter contains the results of the three separate reviews we completed. The draft Federal Sustainable Development Strategy , titled Planning for a Sustainable Future: A Federal Sustainable Development Strategy for Canada , was released by the government for public consultation in February We reviewed whether the targets and implementation strategies outlined in the draft FSDS could be assessed. Results of our review were previously released in June 2013 and are included in this report for reference. In February 2013, Environment Canada also released The 2012 Progress Report of the Federal Sustainable Development Strategy for We assessed the information presented in the progress report against fairness criteria to determine whether it was relevant, meaningful, attributable, and balanced. We did not review the reliability of the information contained in the report. In accordance with our legal obligation to monitor and report annually on the extent to which departments and agencies have met the objectives and implemented the plans set out in their own sustainable development strategies, and the extent to which they have contributed to meeting the targets set out in the Federal Sustainable Development Strategy, we examined the implementation of selected commitments within six federal organizations. We focused on commitments to greening government operations and on commitments related to strategic environmental assessment guidance and reporting processes. Chapter 8 1

8 Why it s important Sustainable development strategies are important tools by which the federal government can advance sustainable development and make environmental and sustainable development decision making more transparent and accountable to Parliament. The strategies set out the goals, targets, and implementation strategies designed to contribute to the overall goal of furthering sustainable development. Well thought-out strategies and effective action to implement them, along with periodic progress reports that present a fair picture of progress, are fundamental to both the credibility and the impact of the strategies. What we found The goals and targets in the draft Federal Sustainable Development Strategy are relevant and reflect issues of importance to Canadians. However, most targets lack clarity and measurability, which will make it difficult to assess progress over the short and long term. Some key government initiatives are also missing or are not fully considered, such as the government s responsible resource development agenda and recent actions taken to enhance tanker safety. As a result, the draft FSDS s potential for communicating the environmental and sustainable development plan of the Government of Canada has not been fully realized. The 2012 Progress Report on the FSDS is the federal government s first report on progress being made. It provides a useful and informative explanation of some of the government s key environment and sustainable development priorities. However, the information in the Progress Report does not give readers a complete picture of progress. For example, the narrative accompanying about half of the targets, as well as sections summarizing progress, emphasizes positive aspects of progress, with only limited discussion on remaining challenges. Clear and measurable targets and consistent use of benchmarks and other means of comparison would make it easier to interpret the significance of the information presented. Departments are making satisfactory progress toward their commitments in support of the FSDS goal of greening government operations and are seeing tangible results from their efforts. For example, Human Resources and Skills Development Canada has removed 4,000 printers from its operations and the Department estimates $1 million in savings to date as a result. Similarly, the Treasury Board of Canada Secretariat has eliminated more than 650 printers and reduced paper consumption by about 20 percent. Environment Canada has reduced staff travel by introducing over 100 teleconferencing locations across Canada. Environment Canada, Finance Canada, and Industry Canada have met their commitments to update guidance and reporting processes related to strategic environmental assessment. 2 Chapter 8

9 Introduction This chapter presents three reviews that the Commissioner of the Environment and Sustainable Development has completed as required by the Federal Sustainable Development Act and the Auditor General Act. The Federal Sustainable Development Act, which became law in 2008, requires the Minister of the Environment to develop a Federal Sustainable Development Strategy (FSDS) every three years. The first FSDS covered the period ; the second FSDS will cover the period The government expects to release its second strategy in October In February 2013, the Minister of the Environment released a draft of its FSDS for We reviewed this draft and provided our comments to the Minister on 14 June At that time, we also released this review on our website. We have reprinted it here as Part 1 of this chapter. With the period covered by the first FSDS drawing to a close, we reviewed the government s progress report on its implementation of that strategy. We also reviewed how selected departments and agencies have, among other things, contributed to meeting the targets set out in the strategy. These two reviews are presented as parts 2 and 3 of this chapter. Although these reviews are not audits, we have completed them with rigour to ensure that we have met the requirements of the Act. The following descriptions of the three reviews in this chapter provide a summary of our work in relation to sustainable development strategies. The Federal Sustainable Development Strategy (FSDS) is intended to render environmental decision making more transparent and accountable to Parliament by providing a government-wide perspective on environmental priorities, goals, targets, and implementation strategies. Sustainable development strategy A plan composed of goals, targets, and implementation strategies designed to contribute to the overall goal of furthering sustainable development. Today, 27 departments and agencies are mandated to prepare departmental strategies, while other departments prepare sustainable development strategies on a voluntary basis. The federal government also prepares a government-wide sustainable development strategy. Sustainable development Development that meets the needs of the present without compromising the ability of future generations to meet their own needs. It is based on the ecologically efficient use of natural, social, and economic resources and on an acknowledgement of the need to integrate social, economic, and environmental factors in the making of all decisions. This includes sustaining our natural resources, protecting the health of Canadians and ecosystems, and improving our quality of life and well-being. Part 1: Review of the Draft Federal Sustainable Development Strategy In February 2013, the federal government released a consultation paper titled Planning for a Sustainable Future: A Federal Sustainable Development Strategy for Canada In accordance with the duties specified under the Federal Sustainable Development Act, the Commissioner of the Environment and Sustainable Development reviewed the FSDS and commented specifically on whether its targets and implementation strategies could be assessed. Chapter 8 3

10 We reviewed the clarity and measurability of the targets and implementation strategies. In particular, we assessed whether they were relevant, specific, measurable, time-bound, and achievable. We gave our review of the draft FSDS to the Minister of the Environment on 14 June 2013 and released it on our website. The Department s responses have been included in this chapter. Part 2: Review of The 2012 Progress Report of the Federal Sustainable Development Strategy The Federal Sustainable Development Act requires the Minister of the Environment to report on the federal government s progress in implementing the FSDS at least once every three years after the Act comes into force. The Minister has released two progress reports to date: the first in June 2011 and the second in February The 2011 report outlined the systems and strategies needed to implement the FSDS and described how results would be measured and shared in future reports. Because the 2011 report did not contain information on the federal government s progress in meeting the targets set out in the FSDS, there was no basis on which the Commissioner could provide an assessment of the report s fairness. The report released in February 2013, titled The 2012 Progress Report of the Federal Sustainable Development Strategy, is the Government of Canada s report on progress toward the goals and targets of the FSDS. As required by the Auditor General Act, we reviewed this report and assessed the fairness of the information it contains. Part 3: Review of Departmental Progress in Implementing Sustainable Development Strategies The Federal Sustainable Development Act of 2008 requires the Minister of the Environment to develop an FSDS a strategy that specifies government-wide sustainable development goals, targets, and implementation strategies. The Act also requires certain federal departments to prepare their own sustainable development strategies containing objectives and plans that comply with and contribute to the higher-level federal strategy (FSDS). The Commissioner of the Environment and Sustainable Development is required to monitor and report annually on the extent to which departments and agencies have contributed to meeting the targets set out in the FSDS, and the extent to which they have met the objectives and implemented the plans set out in their own sustainable development strategies. In accordance with our legal obligation to monitor and report annually on the strategies, we examined the implementation of selected commitments from six federal organizations. Specifically, we focused on commitments to greening government operations and to updating strategic environmental assessment guidance and reporting processes. Part 3 of this chapter includes results of this monitoring. 4 Chapter 8

11 CHAPTER 8 Federal and Departmental Sustainable Development Strategies Part 1 Review of the Draft Federal Sustainable Development Strategy

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13 Table of Contents Introduction 9 Observations and Recommendations 9 Targets and implementation strategies 10 All targets are relevant but most need to be more specific and measurable 10 Implementation strategies are missing elements that would make them more assessable 12 Federal government actions are not specifically measured by indicators 13 Theme IV (Shrinking the Environmental Footprint Beginning with Government) is more specific and focused 14 Completeness of the Strategy 14 Some key government initiatives are missing 14 There is opportunity to integrate the social and economic dimensions of sustainable development 15 The approach to integrating sustainable development considerations in decision making is incomplete 15 There are opportunities to increase department and agency participation 16 How stakeholder suggestions were considered in preparing the FSDS is not explained 17 Financial information and resource needs are not included 18 Conclusion 19 About the Review 20 Chapter 8 7

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15 Part 1 Review of the Draft Federal Sustainable Development Strategy Introduction 8.1 In February 2013, the federal government released a consultation paper titled Planning for a Sustainable Future: A Federal Sustainable Development Strategy for Canada The proposed Strategy addresses four themes: Addressing climate change and air quality (I), Maintaining water quality and availability (II), Protecting nature (III), and Shrinking the environmental footprint Beginning with government (IV). A total of 34 targets and 217 implementation strategies are associated with the four themes. Target An example of a target in a Federal Sustainable Development Strategy is, relative to 2005 emission levels, reduce Canada s total greenhouse gas emissions by 17 percent by Each target in the FSDS is supported by one or more implementation strategies. Implementation strategy An implementation strategy is a specific federal action for achieving a target in the Federal Sustainable Development Strategy. 8.2 Under section 9(4) of the Federal Sustainable Development Act, the Commissioner of the Environment and Sustainable Development is required to review a draft of the federal government s sustainable development strategy (FSDS) and comment specifically on whether the targets and implementation strategies in the FSDS can be assessed. This is not an audit; rather, the observations and recommendations that follow are based on our statutory review of the FSDS. Observations and Recommendations 8.3 Clear and measurable targets and implementation strategies provide the basis for assessing and reporting on progress toward the goals contained in the Federal Sustainable Development Strategy (FSDS) and are an important part of good accountability and transparency. A complete and assessable sustainable development strategy can also play an important role in communicating the government s priorities. Chapter 8 9

16 Part 1 Review of the Draft Federal Sustainable Development Strategy 8.4 We looked at the clarity and measurability of the government s targets and implementation strategies to determine if they could be assessed. In particular, the criteria we used to assess the targets and strategies were whether they were relevant, specific, measurable, time-bound, and achievable. We considered targets and implementation strategies to be assessable if they met all five criteria. Further details about our review questions are presented in About the Review. We carried out additional examinations and interviews to ensure that we correctly understood key elements in the draft Strategy. Targets and implementation strategies All targets are relevant but most need to be more specific and measurable 8.5 Assessing targets. Overall, we found that nearly half of the 34 targets (16) met 3 or more of the criteria; however, only 6 of the 34 targets (18 percent) met all of the criteria. We found all 34 targets in the current draft Strategy to be relevant, reflecting important issues. Most of the targets we assessed were missing key elements, such as an indication of the extent of change desired and timelines that would make the targets more clear and measurable (Exhibit 8.1). Exhibit 8.1: All targets are relevant but most are not measurable or specific Criteria used to assess targets Results of assessment out of 34 targets Relevant % Specific 10 29% Measurable 13 38% Time-bound 18 53% Achievable 18 53% 8.6 These missing elements create problems when trying to assess progress. For example, the target reduce risks to Canadians and impacts on the environment and human health posed by harmful substances emitted to air reflects current priorities of the federal government; however, this target does not specify a timeline or the extent of the reduction sought, which would provide a basis for 10 Chapter 8

17 Part 1 Review of the Draft Federal Sustainable Development Strategy assessing progress. The target increase the percentage of First Nations with water and wastewater systems with low risk ratings by 2016 has a clearly stated timeline, but it indicates neither how much of an increase the government is aiming for, nor what baseline it is starting from. The addition of this type of information would strengthen the targets and help to assess progress. 8.7 The lack of clear and measurable targets in the draft Strategy affects whether it can be assessed. This also reduces its value for communicating the government s plan for sustainable development. See a fuller discussion of this topic starting at paragraph Examples of the targets we found to be clear and measurable included the target to reduce Canada s total greenhouse gas emissions by 17 percent by 2020, relative to 2005 emission levels (Target 1.1) and the target to improve the condition of at least one Ecological Integrity Indicator in 20 national parks by 2015 (Target 4.4). These targets are reasonably specific and time-bound, and include a quantitative measure that facilitates assessing progress. These are examples that can be used as guides for creating clear and measurable targets. 8.9 Recommendation. Beginning with the Federal Sustainable Development Strategy, Environment Canada should lead the further development of targets that are specific, measurable, and time-bound, and where possible, make use of quantitative measures, such as baselines and/or thresholds to help assess progress. The Department s response. Agreed. Environment Canada worked with departments and agencies and will consider ways to revise the Federal Sustainable Development Strategy to make targets more specific, measurable, and time-bound, where possible, and will continue this approach in future strategies Developing interim targets. We noted that of the 10 long-term targets (longer than the next three years) in the draft Strategy, only one included an interim target. Target 3.6 states that the government will reduce phosphorus loadings to Lake Simcoe by 2017 and is, in effect, an interim target that supports a longer-term Province of Ontario target, which is to reduce phosphorus inputs into Lake Simcoe to 44,000 kg/year by While this target lacks a quantitative measure stating how much the federal government hopes to help reduce phosphorus levels, the interim milestone of 2017 helps clarify the government s short-term timelines Recommendation. Beginning with the Federal Sustainable Development Strategy, Environment Canada should lead the further development of interim targets, where appropriate, as a means of assessing progress toward longer-term goals and targets and clarifying what the government intends to achieve in the short term. The Department s response. Agreed. Environment Canada agrees with this recommendation for future federal sustainable development strategies. Environment Canada looked at options to include additional interim targets in the Federal Sustainable Development Strategy (FSDS), but found it was not feasible at this time. In developing the FSDS, Environment Canada will continue to work with responsible FSDS departments and agencies to determine where interim targets would be feasible and will continue this approach in future strategies. Chapter 8 11

18 Part 1 Review of the Draft Federal Sustainable Development Strategy It is important to note that interim targets are not required by the Federal Sustainable Development Act. Information on what the government intends to achieve in the short term is often included in departments reports on plans and priorities (RPP). Implementation strategies are missing elements that would make them more assessable 8.12 Elements in implementation strategies. The current draft Strategy contains 217 implementation strategies. We found that few of them met all of the criteria and, hence, had all the elements needed to fully assess progress. We also found that virtually all of the implementation strategies were directly linked to their respective targets. While some contained statements such as continue to... to describe the nature of the department or agency s contribution to the target (without referring to specific results or deliverables), about one third are reasonably clear an important starting point for assessing progress Recommendation. Beginning with the Federal Sustainable Development Strategy, Environment Canada should lead the further development of implementation strategies that are specific and include the elements needed to assess progress. The Department s response. Agreed. Environment Canada agrees with and already strives to achieve this recommendation. The Department undertakes to review the Strategy to identify further opportunities to refine implementation strategies where possible. Environment Canada notes continued progress is dependent upon departments and agencies bound by the Federal Sustainable Development Act that are responsible for their own implementation strategies. Environment Canada also notes that more specific information is already included in departmental sustainable development strategies. This information is available for consideration when determining if implementation strategies are assessable. Beginning with the Federal Sustainable Development Strategy, Environment Canada will work with these departments and agencies to further the development of implementation strategies that are specific and include elements needed to assess progress Identification of key implementation strategies. As noted, the draft Strategy contains 217 implementation strategies, associated with 34 targets. Most of the targets have fewer than 5 implementation strategies linked to them; however, 15 targets have 5 or more implementation strategies, and some have between 10 and 50. While it may help the reader understand the scope of the government s activities, we found that the large number of implementation strategies associated with some targets makes it difficult to determine which ones are most important and critical to achieving the target. Highlighting these would help focus assessment and progress reporting, and would help improve how the FSDS communicates the government s priorities. 12 Chapter 8

19 Part 1 Review of the Draft Federal Sustainable Development Strategy 8.15 Recommendation. Beginning with the Federal Sustainable Development Strategy, Environment Canada should lead the identification of key implementation strategies to help focus assessment and reporting, and help parliamentarians and Canadians understand which implementation strategies are priorities. The Department s response. Agreed. Environment Canada will consider ways to revise the Federal Sustainable Development Strategy to better highlight key government activities, and will continue this approach in future strategies. Federal government actions are not specifically measured by indicators 8.16 We note the expansion of the Canadian Environmental Sustainability Indicators (CESI) program; the CESI program is a helpful contribution to reporting on the state of the environment. The draft Strategy states that this expansion has been undertaken to ensure that indicators are available to measure progress on all FSDS goals and targets In addition, the draft Strategy has introduced environmental sustainability indicators to measure progress on the goals and targets under the first three FSDS themes. This use of indicators in the FSDS should help assess progress on the targets. These environmental sustainability indicators need to be complemented by others directly linked to federal actions. Based on the nature of some of the implementation strategies listed in the FSDS, complementary indicators could include such things as the number of new regulations or standards produced during the period of the FSDS, projects funded, and completed research projects and peer review publications. Indicator A single measure most often expressed in quantitative terms. Indicators rely on consistency in data collection and are used to measure progress against benchmarks or baselines Recommendation. Beginning with the Federal Sustainable Development Strategy, Environment Canada should lead the development of indicators that would complement the environmental sustainability indicators, and assist in measuring the contribution of the federal government s actions. The Department s response. Agreed. Environment Canada agrees but notes that this is a significant undertaking for all partners. The Department will strive to make incremental progress over time. The Department also notes that performance information on federal activities is included in departments departmental sustainable development strategies. For the Federal Sustainable Development Strategy, Environment Canada will work with responsible departments and agencies to consider how to better integrate departmental performance information measuring their contributions to environmental outcomes. Chapter 8 13

20 Part 1 Review of the Draft Federal Sustainable Development Strategy Theme IV (Shrinking the Environmental Footprint Beginning with Government) is more specific and focused 8.19 We found that Theme IV of the draft Strategy (on shrinking the environmental footprint of government) shows improvement; it is more strategic and focused than the approach taken in the FSDS. The previous FSDS contained one broad goal of minimizing the environmental footprint of government operations. The current draft Strategy establishes three more specific goals: reduce the carbon footprint and energy consumption of federal operations (Goal 6), reduce waste generated and minimize the environmental impacts of assets throughout their life cycle (Goal 7), and improve water management in federal operations (Goal 8). Additionally, Theme IV has six targets (four of which meet most of the criteria we assessed them against) accompanied by seven implementation strategies and six best practices that departments and agencies can adopt. The approach to Theme IV demonstrates how it is possible to communicate the government s plan in a form that can be assessed. Completeness of the Strategy 8.20 The FSDS states that it contributes to transparency and accountability by continuing to build a whole-of-government picture and by incorporating a broad range of federal actions that support FSDS targets. However, we found it to be incomplete in some respects. Missing or incomplete elements jeopardize the FSDS s potential for communicating the government s environmental and sustainable development plan. Some key government initiatives are missing 8.21 The current draft Strategy states that the Government of Canada strives to ensure that sustainable development goals address important challenges and problems, and that they reflect domestic and international priorities and commitments. We found that some key initiatives of the government are missing or are not fully considered in the draft Strategy; for example: the federal government s responsible resource development agenda; monitoring water, land, and biodiversity in the oil sands region; actions announced in Budget 2012 to strengthen tanker safety; and steps being taken to implement legislative changes that have important implications for environmental protection (for example, the Fisheries Act and the Canadian Environmental Assessment Act). Some legislative, policy, and program decisions may not have been finalized by the time the draft Strategy was released, or were announced after its release for comment. Nonetheless, it is important that the final Strategy be as up to date as possible, which includes explaining how 14 Chapter 8

21 Part 1 Review of the Draft Federal Sustainable Development Strategy important initiatives relate to it, and integrating key initiatives into the targets and implementation strategies as appropriate Recommendation. Beginning with the Federal Sustainable Development Strategy, the relationship between key initiatives and the Strategy should be explained, and incorporated into targets and implementation strategies as appropriate. The Department s response. Agreed. Environment Canada will consider ways to revise the Federal Sustainable Development Strategy (FSDS) to reflect decisions made since the draft FSDS was released in February. For example, the final FSDS could more precisely reflect major initiatives such as the Air Quality Management System, as well as our partnership with Alberta on oil sands monitoring. Environment Canada also worked with departments and agencies to identify implementation strategies that support key initiatives such as responsible resource development and will consider ways to revise the FSDS to make this link more evident. There is opportunity to integrate the social and economic dimensions of sustainable development 8.23 The draft Strategy is primarily focused on environmental sustainability. As future versions of the Strategy are developed, we feel it will be important that the social and economic dimensions of sustainable development be integrated into it Recommendation. Beginning with the Federal Sustainable Development Strategy, Environment Canada should lead work aimed at further integrating the social and economic dimensions of sustainable development. The Department s response. Agreed. Environment Canada s continuing focus will be on the environment in accordance with the purpose of the Federal Sustainable Development Act. Within these parameters, for the Federal Sustainable Development Strategy, Environment Canada agrees to consider ways to further integrate the social and economic dimensions of environmental sustainability, where relevant, while continuing to align with the purpose of the Federal Sustainable Development Act by focusing on the environment. The approach to integrating sustainable development considerations in decision making is incomplete 8.25 A fundamental principle of the Federal Sustainable Development Act is to integrate sustainable development considerations into government decision making. The draft FSDS states that it will continue to support integrated decision making by including FSDS goals and targets in strategic environmental assessments and by considering environmental performance in the procurement of goods and services. Green procurement is included as a target in the draft Strategy (Target 7.2). It is our view that additional target(s) and implementation strategies related to integrating sustainable development considerations into government decision making would complement the green procurement target and help ensure that the FSDS targets incorporate all aspects of decision making. It would also provide a basis for monitoring and reporting progress in this area. Chapter 8 15

22 Part 1 Review of the Draft Federal Sustainable Development Strategy 8.26 Recommendation. Beginning with the Federal Sustainable Development Strategy, Environment Canada should lead work aimed at including target(s) and implementation strategies related to integrating sustainable development considerations into decision making. The Department s response. Agreed. Environment Canada agrees with the objective of integrating environmental considerations into decision making and notes that the government is already achieving this to a considerable degree. The Department will continue to work with departments and agencies to consider options to appropriately incorporate the integration of sustainable development considerations into decision making in future strategies. As noted by the Commissioner of the Environment and Sustainable Development, the Federal Sustainable Development Strategy (FSDS) already contains one target related to integrating environmental considerations into decision making (green procurement). The FSDS also continues the commitment to Strategic Environmental Assessment as an important tool to integrate environmental considerations into social and economic decision making. There are opportunities to increase department and agency participation 8.27 We found that 16 of the 27 departments and agencies that produce their own sustainable development strategies have implementation strategies that contribute to Themes I to III (that is, addressing climate change and air quality, maintaining water quality and availability, and protecting nature), of the current draft Strategy. The remaining departments and agencies contribute only to reducing the government s environmental footprint (Theme IV). Incorporating social and economic dimensions more fully into the FSDS, and including targets or implementation strategies related to integrated decision making, could expand departmental and agency participation in the FSDS. We note that three organizations are voluntarily contributing to implementation strategies and targets in the draft FSDS We found that not all relevant departments and agencies are named in some targets and implementation strategies. For example, Target 4.7 states that the ministers of Public Safety and of the Environment are both responsible for preventing, mitigating, or minimizing the impact of major environment disasters, accidents and emergencies by helping Canadians to prepare for, respond to and recover from such occurrences. The government s Federal Emergency Response Plan, which was developed to outline how the Government of Canada would respond to an emergency, identifies 11 additional departments and agencies with primary emergency support functions. We note that 10 of them are also required to produce their own sustainable development strategies that contribute to the FSDS, and yet reference to them in relation to the target is incomplete Also, implementation strategy states Federal custodians complete remediation/risk management activities at federal contaminated sites for which they are responsible in order to reduce human health and ecological risks at higher-priority sites. The Federal Contaminated Sites Inventory identifies 22 federal custodians of contaminated sites. We note that 14 of these custodians are required to produce their own sustainable development strategies that contribute 16 Chapter 8

23 Part 1 Review of the Draft Federal Sustainable Development Strategy to the FSDS; however, only Environment Canada is named in the target. The absence of some relevant departments and agencies being named in the FSDS raises concerns with respect to its completeness and the accountability for government activities. Moreover, there is a risk that the FSDS is understating the scope of the government s sustainable development responsibilities and possible activities Recommendation. Beginning with the Federal Sustainable Development Strategy, Environment Canada should lead work aimed at further expanding the number of voluntary departments and agencies contributing to the FSDS. Environment Canada should also lead work aimed at ensuring that the contributions of departments and agencies to targets are recognized. The Department s response. Agreed. Environment Canada will consider ways to revise the Federal Sustainable Development Strategy (FSDS) to include more detail on voluntary participation in the FSDS. Environment Canada has worked to encourage voluntary participation in the FSDS and will continue to do so for future cycles. Environment Canada will also consider ways to revise the FSDS to recognize the contributions of more departments and agencies to implementation strategies pertaining to the Federal Emergency Response Plan and the Federal Contaminated Sites Action Plan. How stakeholder suggestions were considered in preparing the FSDS is not explained 8.31 We found that Environment Canada has conducted extensive research, consultation, and outreach with departments, agencies, and other stakeholders to assess the FSDS and identify areas for improvement. Some suggestions for improvement included taking a more proactive and strategic approach, by, for example, performing a scan of risks and opportunities to inform the choice of goals and targets, and including a long-term vision in the FSDS. The stakeholders also suggested exploring environmental issues, such as climate change adaptation, education, and outreach, as well as the concept of the green economy, to drive the integration of the social and economic dimensions of sustainable development We found that in addition to the improvements noted in Theme IV of the current draft Strategy, a target related to climate change adaptation has been added under Goal 1. With this exception, we could find only limited evidence of how the many suggestions received by Environment Canada on the FSDS had been applied to its development. Environment Canada produced a synthesis report of public consultations for the draft Strategy that summarizes comments received; however, it was not clear from this document how these comments were considered and acted upon. Accompanying the FSDS with a summary of how stakeholder suggestions were considered and acted upon would help strengthen both the communications aspect of the FSDS, and support openness and transparency. Chapter 8 17

24 Part 1 Review of the Draft Federal Sustainable Development Strategy 8.33 Recommendation. For the (and future versions of the) Federal Sustainable Development Strategy, Environment Canada should explain how key comments and suggestions from stakeholders were considered and acted upon. The Department s response. Agreed. Environment Canada will consider ways to revise the Federal Sustainable Development Strategy to include more detail outlining how key comments and suggestions from stakeholders were considered and acted upon in developing the strategy, and will continue this approach in future strategies. Financial information and resource needs are not included 8.34 The government has committed to the integration of the FSDS with the government s core expenditure planning and reporting system. With the exception of one implementation strategy, we note that the draft Strategy does not include an indication of the finances or resources that are required and are to be allocated to deliver on the targets or implementation strategies. We recognize that financial information on individual implementation strategies may not be fully aligned with the information in the Expenditure Management System, but resources for some implementation strategies should be available. In future strategies, it would be important to make a concerted effort to integrate financial and resource information, to make the strategy more complete Recommendation. For the FSDS, Environment Canada, with the support of other departments and agencies, should begin to incorporate financial and resource information into the FSDS. The Department s response. Agreed. Environment Canada agrees to take action towards this recommendation, where possible and practical, noting that to report on financial information on a systematic basis over time requires significant and substantial changes in current government financial reporting, as the current system was not designed to follow Federal Sustainable Development Strategy (FSDS) categorization and any adjustments require the cooperation of all FSDS departments and agencies. As noted in The 2012 Progress Report of the Federal Sustainable Development Strategy, Environment Canada has already begun to report financial information on some FSDS activities by incorporating Clean Air Agenda reporting. Going forward, Environment Canada will continue to work with FSDS departments and agencies toward further integration with the government s core planning and reporting systems. 18 Chapter 8

25 Part 1 Review of the Draft Federal Sustainable Development Strategy Conclusion 8.36 The draft Federal Sustainable Development Strategy (FSDS) addresses environmental issues that are relevant and important to Canadians. We concluded that 6 of its 34 targets (18 percent) met all of the criteria and are sufficiently clear and measurable to assess and report on progress. Another 10 met 3 or more of the criteria which will allow a partial assessment of progress. There are some well-defined targets that can be used as models for improving the FSDS Compared to the FSDS, we found improvement with Theme IV, the greening of government operations section: it is more focused and measurable. We also note that environmental sustainability indicators have been introduced to measure progress on the goals and targets under the first three FSDS themes. In addition, we note that three organizations are voluntarily contributing to implementation strategies and targets in the draft FSDS, a positive development We found the draft Strategy to be incomplete in some respects, with some key government initiatives missing or not fully considered. Improving completeness and clarity would help the FSDS achieve its potential for communicating to Canadians what the government is doing to deal with the environment and sustainable development issues. Chapter 8 19

26 Part 1 Review of the Draft Federal Sustainable Development Strategy About the Review All of the review work in this report was conducted in accordance with the standards for review engagements set by The Canadian Institute of Chartered Accountants. Scope and approach Criteria The team reviewed the consultation draft titled Planning for a Sustainable Future: A Federal Sustainable Development Strategy for Canada Specifically, the team assessed the 34 targets and 217 implementation strategies against the review criteria in the following table. We also considered the completeness of the Strategy. Criteria Questions To determine whether the targets and implementation strategies in the draft Federal Sustainable Development Strategy (FSDS) for can be assessed, we used the following criteria: Relevant Specific Measurable Time-bound Achievable Is the target/implementation strategy aligned with higher goals and themes of the FSDS? Is the target/implementation strategy significant and relevant in the context of sustainable development and government priorities? Is the target/implementation strategy clear, well defined, and understandable? Does the target/implementation strategy indicate the extent of change and direction (increase, decrease, maintain) of the results to be achieved? Is it clear how progress will be measured? Do the measures accurately represent what is being measured? Does the target/implementation strategy allow for comparison over time? Is the time frame for achieving results stated, specifying what is required by when (including, if relevant, milestones to be completed)? Does the FSDS specify the performance indicators required to monitor progress? (Note: we did not assess whether the target or implementation strategy was being achieved.) 20 Chapter 8

27 CHAPTER 8 Federal and Departmental Sustainable Development Strategies Part 2 Review of The 2012 Progress Report of the Federal Sustainable Development Strategy

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29 Table of Contents Introduction 25 Reporting on the implementation of the Federal Sustainable Development Strategy 25 Focus of the review 26 Observations and Recommendations 26 Assessing the Progress Report 26 Reporting reflects government priorities, but more context and financial information are needed 26 Assessment would be more meaningful with the increased use of clear and measurable targets and benchmarks 29 The Progress Report discusses selected key federal actions, but their contribution to status and trend data is not clear 31 Presentation does not provide a balanced picture of progress 31 Conclusion 33 About the Review 34 Chapter 8 23

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31 Part 2 Review of The 2012 Progress Report of the Federal Sustainable Development Strategy Introduction Reporting on the implementation of the Federal Sustainable Development Strategy 8.39 The Federal Sustainable Development Act became law in The Act requires that the Minister of the Environment develop a Federal Sustainable Development Strategy (FSDS) within two years of the Act coming into force, and within every three-year period after that. The first FSDS was tabled in October The second FSDS is expected to be released in October The Act also requires that the Minister report at least once every three years on the federal government s progress in implementing the FSDS. The Auditor General Act requires that the Commissioner of the Environment and Sustainable Development examine each FSDS progress report to assess the fairness of the report s information on the federal government s progress in implementing the FSDS The Minister has released two progress reports to date: the first in June 2011 and the second in February The second report is titled The 2012 Progress Report of the Federal Sustainable Development Strategy The 2011 report described the systems and strategies needed to implement the FSDS and described how results would be measured and shared in future reports. Because the 2011 report did not contain information on the federal government s progress in meeting the targets set out in the FSDS, there was no basis on which the Commissioner could provide an assessment of the report s fairness. Target A measurable performance or success level that an organization, program, or initiative is intended to achieve within a specified time period. An example of a target in the FSDS is, relative to 2005 emission levels, to reduce Canada s total greenhouse gas emissions by 17 percent by Each target in the FSDS is supported by one or more implementation strategies The FSDS is organized under four themes: I. Addressing climate change and air quality, II. Maintaining water quality and availability, III. Protecting nature, and IV. Shrinking the environmental footprint Beginning with government These themes have 8 goals, which are supported by 38 targets; in turn, some 400 implementation strategies support these targets. The Progress Report provides progress information at the target level. Chapter 8 25

32 Part 2 Review of The 2012 Progress Report of the Federal Sustainable Development Strategy Focus of the review 8.45 In assessing the fairness of the information presented in the Progress Report, we sought to determine whether the performance information presented was relevant (the information reports tangible and important accomplishments in context against objectives and costs), meaningful (the information describes expectations and provides benchmarks against which performance is compared), attributable (the information demonstrates why the program made a difference), and balanced (the information presents a representative and clear picture of performance in a way that does not mislead the reader) This document does not present the results of an audit; rather, the observations and recommendations that follow are the results of our review of the Progress Report. To guide our review, we adapted the Office of the Auditor General s criteria for the assessment of the fairness and reliability of performance information. Further details about our review are presented in the About the Review section. Observations and Recommendations Assessing the Progress Report Reporting reflects government priorities, but more context and financial information are needed 8.47 To present a relevant picture of progress, The 2012 Progress Report of the Federal Sustainable Development Strategy must include progress information that focuses on results and outcomes; information on tangible and important accomplishments that align with the Federal Sustainable Development Strategy (FSDS) targets; contextual information (such as the external environment and risks, and why the issue is important) to help the reader understand the topic being reported; measures used to report on progress that are valid, complete, and timely; and financial information that indicates the cost of the government s actions Results and outcomes. We found that for 34 of the 38 FSDS targets, the Progress Report focuses on results achieved, including environmental outcomes. These outcomes range from reductions in greenhouse gas emissions and improved air quality to updating the status of major fish stocks in Canada. The Progress Report also reports on the development of health-based air quality and water quality guidelines, the establishment of environmental quality objectives, and results from the greening of government operations for example, by reducing greenhouse gas emissions, paper consumption, and printers. 26 Chapter 8

33 Part 2 Review of The 2012 Progress Report of the Federal Sustainable Development Strategy 8.49 Tangible and important accomplishments. We found that the At a Glance sections accompanying each of the themes in the FSDS, along with the background sections accompanying each target, describe key actions from selected implementation strategies of departments and agencies involved in the FSDS, including those undertaken in partnership with stakeholders such as industry and provincial and territorial governments. These sections present highlights of achievements and actions taken, under way, or planned by the federal government such as legislative developments, new or proposed regulations, monitoring, and research. The Progress Report aligns with the goals and targets of the FSDS, covering each of the 38 targets Context. Contextual information, such as the importance of the target, recent events, and risks, is presented for about 80 percent of the targets, including all of the targets related to greening government operations. While some context is presented for all of the targets, in about 20 percent of the cases, the text is insufficient to provide a good understanding of the issue. For example, Target 3.12 (to reduce the risks to Canadians and the impacts on the environment posed by harmful substances) includes a good discussion of the programs in place, but limited discussion of the actual risks to Canadians Themes are accompanied by a Why It Matters section that provides additional details, such as environmental and health implications and socio-economic considerations. Hyperlinks to additional information on departmental websites are provided for those seeking further details on individual targets Measures used to report progress. The majority of the measures used to report on progress toward individual targets are valid. Canadian Environmental Sustainability Indicators (CESI) are the primary means of reporting on the targets. We note that indicators for six targets are interim indicators or are still in development. Canadian Environmental Sustainability Indicators (CESI) program A program led by Environment Canada, and supported by other federal and provincial government departments, to provide data for monitoring Canada s performance in addressing key environmental sustainability issues. It is the main instrument Environment Canada uses for tracking progress on the Federal Sustainable Development Strategy. Indicator A single measure most often expressed in quantitative terms. Indicators rely on consistency in data collection and are used to measure progress against benchmarks or baselines. An example of an indicator in the FSDS, for Target 2.1 (to reduce air pollutants), is trends in air quality related to health outcomes Timeliness of information. We note that indicators for 20 of the 27 targets for Themes I through III present progress up to 2010 or later. However, for the remaining 7 targets, progress is reported only to 2009, no date is provided, or no progress is reported because indicators have not been developed. Because the FSDS was published in 2010, it is not possible to see how any progress on these targets resulted directly from the FSDS. However, progress information on Theme IV (Shrinking the Environmental Footprint Beginning with Government) is up to date, typically up to the fiscal year. Chapter 8 27

34 Part 2 Review of The 2012 Progress Report of the Federal Sustainable Development Strategy 8.54 Based on our enquiries, we were told that the Progress Report included the most up-to-date indicators at the time of publication. Also, links are provided to access the online information, which is updated as new data becomes available Financial information. For approximately 50 percent of the targets related to climate change, air quality, water quality and availability, and protecting nature, we noted there was no description of recent or planned funding commitments, which limits a reader s understanding of the initiative. No financial information, in terms of either expenditures or savings, is reported for the targets related to the theme of greening government operations (Theme IV). Further information on expenditures can be found in the reports on plans and priorities (RPPs) and departmental performance reports (DPRs) of individual departments and agencies. However, this information would be more accessible if it was contained in the Progress Report. Reports on plans and priorities Individual expenditure plans for each department and agency (excluding Crown corporations). These reports provide details on an organization s main priorities, plans, and expected performance over a three-year period. These reports also provide details on human resource requirements, major capital projects, grants and contributions, and net program costs. RPPs for the next fiscal year are normally tabled in Parliament on or before March 31. Source: Treasury Board of Canada Secretariat Departmental performance reports Individual department and agency accounts of results achieved against planned performance expectations as set out in the relevant RPPs. The reports cover the most recent fiscal year. They are normally tabled in Parliament in the fall. Source: Treasury Board of Canada Secretariat 8.56 Where there are a number of departments contributing to a target, consolidated expenditure information is not readily available. We note, however, that Annex A of the Progress Report presents consolidated information on planned and actual spending related to the Clean Air Agenda for the fiscal year, broken down by department. The annex covers the four targets related to climate change and air quality. It is a good example of a type of reporting that could be used to report on financial information in future progress reports Recommendation. Environment Canada should work with other federal departments and agencies to include more consolidated financial information in future progress reports. The Department s response. Agreed. Environment Canada agrees to take action toward this recommendation, where possible and practical, noting that to report on financial information on a systematic basis over time requires significant and substantial changes in current government financial reporting, as the current system was not designed to follow Federal Sustainable Development Strategy (FSDS) categorization and any adjustments require the cooperation of all FSDS departments and agencies. 28 Chapter 8

35 Part 2 Review of The 2012 Progress Report of the Federal Sustainable Development Strategy As noted in The 2012 Progress Report of the Federal Sustainable Development Strategy, Environment Canada has already begun to report financial information on some FSDS activities by incorporating Clean Air Agenda reporting. Going forward, Environment Canada will continue to work with FSDS departments and agencies toward further integration with the government s core planning and reporting systems. Assessment would be more meaningful with the increased use of clear and measurable targets and benchmarks 8.58 To present a meaningful assessment of progress, the performance information in FSDS progress reports should describe expectations and provide benchmarks against which performance can be compared. For example, benchmarks should include comparisons with similar activities, programs, or organizations, and with trends over time. The significance of these benchmarks should be explained Comparison of progress against expectations. We found that most of the targets in the FSDS are not sufficiently clear or measurable. This makes it very difficult to assess the progress being made. For example, targets 2.3 (to reduce the risks to Canadians and the impact on the environment posed by harmful substances) and 3.8 (to reduce the risks to Canadians and impacts on the marine environment posed by pollution from land-based activities) lack important details, such as timelines and the desired extent of change. While these targets are accompanied by status and trend information, a reader may find it difficult to interpret the data and assess progress without knowing how much of a reduction is being pursued, or by what time Some of the targets are reasonably clear and measurable, allowing for a more meaningful assessment of progress and interpretation of the data presented. Examples include targets 1.1 (to reduce greenhouse gas emissions) and 3.6 (to achieve desired agri-environmental performance from water and soil quality). These examples could be used as models for other targets. Given the importance of clear and measurable targets to the interpretation of progress, we have recommended in our review of the draft FSDS (see Part 1) that Environment Canada lead further efforts to develop clear and measurable targets for the final FSDS Comparison of progress against benchmarks. We found that the Progress Report did not consistently compare performance against benchmarks, such as quantitative baselines, standards, and thresholds. These should be included in the report, where applicable, to help readers judge the rate of progress and interpret the outcome data provided. Nevertheless, the report provides status and trend information in a number of instances, which allows for a more meaningful interpretation of the data presented. An example is Target 3.2 (to contribute to the restoration and protection of the Great Lakes), which provides status and trends of phosphorus levels in the open waters of the Great Lakes from 1970 to Chapter 8 29

36 Part 2 Review of The 2012 Progress Report of the Federal Sustainable Development Strategy 8.62 The Progress Report notes that baselines and other means of comparison (such as standards and guidelines) are in development for several targets. These include Canadian ambient air quality standards, residential indoor air quality guidelines, baseline levels for substances of concern, and baseline levels for wastewater effluent. If used in future progress reports, this additional information should help provide readers with a basis for judging progress We note that the Progress Report generally presents information at the national level. For some goals and targets, it presents information at the provincial or regional level, allowing for geographical comparisons. The Progress Report also provides trends for 14 targets, which aids in assessing progress over time Summary of progress. We found that, in most instances, the Progress Report provides no clear indication of the extent to which targets have been attained, nor does it explain the significance of the progress or lack of progress. In some cases, the information on outcomes suggests, but does not explicitly state, that the target has not been met (or may not be met). We also found that the report lacked sufficient summary information that would allow the reader to grasp overall progress quickly. A table summarizing progress made against the FSDS targets would be helpful, allowing easy referencing and tracking of overall progress in one location, and facilitating comparison of targets Recommendation. In future progress reports, Environment Canada should clearly state the extent of the progress that has been made and whether targets have been achieved. In addition, targets should be clear and measurable, and should allow for comparison with benchmarks where appropriate. The Department s response. Agreed. Environment Canada agrees to pursue this objective, but notes that implementation is dependent on the availability of data and the collaboration of multiple partners. Reflecting data availability, Environment Canada will continue to use a wide range of measurement tools, including providing environmental trends over time, outlining baseline conditions, and comparisons against standards, guidelines or benchmarks, to measure progress toward the Federal Sustainable Development Strategy (FSDS) goals and targets. Environment Canada worked with departments and agencies and will consider ways to revise the FSDS to make targets more specific, measurable, and time-bound, where possible, and will continue this approach in future strategies, as part of the FSDS s plan, do, check, improve cycle. 30 Chapter 8

37 Part 2 Review of The 2012 Progress Report of the Federal Sustainable Development Strategy The Progress Report discusses selected key federal actions, but their contribution to status and trend data is not clear 8.66 A progress report should present performance information that demonstrates why federal actions contribute to progress on the FSDS goals and targets. At the same time, the involvement and contribution of others should be noted, where applicable We found that the At a Glance sections accompanying each of the first three themes in the FSDS, along with the background sections accompanying each target, describe key actions from selected implementation strategies of departments and agencies involved in the FSDS, including those undertaken in partnership with stakeholders such as industry, and provincial and territorial governments The Progress Report also contains sections that discuss progress toward the goals and related targets of the FSDS. These sections typically focus on state of the environment information, including statuses and trends. In most cases, these sections do not clarify how federal actions have contributed to the statuses and trends. The Progress Report notes that there are limits on the extent to which it can directly link federal initiatives with the progress being reported because the progress describes broad environmental outcomes that can be affected by many factors. Nonetheless, a qualitative description of results from federal actions would be helpful The draft FSDS has introduced indicators of environmental sustainability outcomes to help measure progress. To better summarize and highlight federal contributions, these state of the environment indicators should be complemented by others that are directly linked to federal actions. Examples of such indicators could include the numbers of new regulations or standards produced during the period of the FSDS, of projects funded, of completed research projects, and of peer-reviewed publications. In our review of the draft FSDS (see Part 1), we recommended that Environment Canada should lead the development of indicators that would complement the environmental sustainability indicators and would help measure the contribution of the federal government s actions. We note that, given the nature of the targets related to the fourth theme of the FSDS (Shrinking the Environmental Footprint Beginning with Government), the federal government s contribution to achieving those targets is clear. Presentation does not provide a balanced picture of progress 8.70 A balanced progress report is one that presents a representative, clear, and complete picture, without misleading the reader. It should discuss both positive and negative aspects of progress, as well as the remaining challenges to meeting targets. Furthermore, balanced reporting ensures there are no distortions of information through presentation or tone, or through the omission of information or context Positive and negative aspects of progress. For individual FSDS targets, we found that the status and trend information in the Progress Report, presented in the form of figures and tables, is reported in a neutral manner. However, we also found that the narrative accompanying about half of the targets emphasizes positive aspects of progress, with limited discussion on remaining Chapter 8 31

38 Part 2 Review of The 2012 Progress Report of the Federal Sustainable Development Strategy challenges. We also found that half of the At at Glance sections focus heavily on positive aspects of progress (Exhibit 8.2), even though only a small portion of the targets are reported as having been met. Giving a balanced perspective is key to understanding progress to date. Exhibit 8.2: An example of summary text that emphasizes positive aspects of performance Canada has begun to decouple greenhouse gas emissions from economic growth. Current trends indicate that Canada is on track to achieve half of the reductions as required under Copenhagen. 2010, greenhouse gas emissions decreased by 48 megatonnes or Current projections show that Canada is about one half of the way towards meeting its national greenhouse gas reduction target. Performance to Date The Government of Canada has begun to regulate two of Canada s largest sources of greenhouse gas emissions transportation and electricity. announced to establish more stringent standards for model years heating oil. that have reached the end of their useful life. Remaining Challenges Canada committed under the Copenhagen Accord to reduce Canada s greenhouse gas emissions Canada s total greenhouse gas emissions in 2010 were actions by the federal and provincial half of the way towards meeting its target. Additional measures will be required to close the remaining gap. Canada s energy sector was improved through advancements in clean 2010 and 2013 to support developing countries efforts to address climate change. 12 Section 2: ADDRESSING CLIMATE CHANGE AND AIR QUALITY Source: The 2012 Progress Report of the Federal Sustainable Development Strategy 32 Chapter 8