1. Accountability Through Measurement

2. Accountability Precedes Compelling Measurement Aligning Environmental Reporting with Accountability Dan Rubenstein, CA, MA President, Scales of Governance President, Scales of Governance IISD Research Associate

3. Agenda Part 1: The Argument-Reporting Without Compelling Accountability Has Limited Effect Part 1: The Argument-Reporting Without Compelling Accountability Has Limited Effect Part 2: What is Accountability And Why is a Necessary Condition for Environmental Reporting That Changes Human Behavior? Part 2: What is Accountability And Why is a Necessary Condition for Environmental Reporting That Changes Human Behavior? – Principles of Accountability – Accountability Cycle – Corporate Accountability for Nature – Government Accountability for Nature – ABCs of Compelling Accountability Reporting (CAR) Part 3: What Is Missing from Corporate and Governmental Reporting on Nature? Part 3: What Is Missing from Corporate and Governmental Reporting on Nature? – Corporate Accounting: Information Without Context – Government Accounting: Context Without Information

4. Part 1: Personal Experience- Environmental Accounting Experience as a Chartered Accountant, Auditor for Shareholders 1970s Experience as a Chartered Accountant, Auditor for Shareholders 1970s No Accounting for the Exxon Valdez (Black Oil, Red Ink) 1989 No Accounting for the Exxon Valdez (Black Oil, Red Ink) 1989 Working with E.B. Eddy (Weston): Accounting for a Clear- Cut 1993: Working with E.B. Eddy (Weston): Accounting for a Clear- Cut 1993: – Inter and Intra-Generational Equity – Accountable for Compliance HSE, Not for Nature Working with Ontario Hydro Mid 1990s Working with Ontario Hydro Mid 1990s – Damage Costing – End of Maurice Strong; Coal Fired Generation As Usual – Environmental Accounting Without Commensurate Accountability Does Not Change Behavior. Helped Set Up CESD at OAG, Mid 1990s. Helped Set Up CESD at OAG, Mid 1990s. Geographer’s Perspective on Accounting for Nature 2003. Geographer’s Perspective on Accounting for Nature 2003. Scales of Governance 2007. Scales of Governance 2007.

5. Part 1: The Argument Environmental Accounting Reports That Do Not Inform an Accountability Relationship Are Of Limited Use In Changing Behavior. Environmental Accounting Reports That Do Not Inform an Accountability Relationship Are Of Limited Use In Changing Behavior. Corporate Sector: Voluntary CSR/Sustainability Reporting is Not Grounded in a Firm Foundation of Accountability. Corporate Sector: Voluntary CSR/Sustainability Reporting is Not Grounded in a Firm Foundation of Accountability. Public Sector: Most Government Reporting Initiatives Do Not Align Data With the Accountability of the Different Levels of Government. Public Sector: Most Government Reporting Initiatives Do Not Align Data With the Accountability of the Different Levels of Government.

6. Part 2: What is Accountability And Why is a Necessary Condition for Environmental Reporting That Changes Human Behavior?

7. Part 2: Accountability Principles Accountability and Accounting are based on an accountability relationship where: 1.Authority is conferred and responsibilities assigned. 2.Recipients must justify their actions (and those of subordinates) to the higher authority. 3.The higher authority must hold to account all those on whom it has bestowed authority and responsibilities. 4.Rendering of account is mandatory; caries consequences.

8. Accountability Cycle Holding to Account Accountability Relationship Rendering of Account

9. Part 2: Corporate Accountability for Nature Equity Interveners-Use of Nature & Human Beings NGOs Civil Regulators With No Authority Regulators: Compliance: HSE Laws Tax Authorities AccountabilityShareholders Bondholders Bankers Class Entity: Corporate Profit Action Liability Relationship With Consequence Third Parties Liability, Consumer Protection Nature, Fabric of Society

10. Part 2: Regulatory Lag Times Put Nature at Risk Regulatory Regime New Law Multilateral Environmental Agreements (MEAs) Global Financial Covenants Risks to Nature’s/Global Financial Ecosystems Carrying Capacity

11. Part 2: Federal Accountability for Nature Accountability relationship where: FEDERAL GOVERNMENT HAS JURISDICTION: 1.Authority is conferred and responsibilities assigned. E.G. MINISTER OF F & O—SECTION 36 FISHERIES ACT(FA). 2.Recipients must justify their actions (and those of subordinates) to the higher authority. MINISTER OF F & O ACCOUNTABLE TO PARLIAMENT FOR FA. 3.The higher authority must hold to account all those on whom it has bestowed authority and responsibilities. STANDING COM - MITTEE ON F & O HOLDS MINISTER TO ACOUNT. 4.Rendering of Account is Mandatory; Caries Consequence. MINISTER CAN BE FORCED TO RESIGN; CIVIL ACTION.

12. Part 2: Federal Accountability For Nature SMART Targets for Federal Sustainable Development Strategy (FDSDA):SMART Targets for Federal Sustainable Development Strategy (FDSDA): Specific (10,000 Tons GHG, All Gov’t Operations)Specific (10,000 Tons GHG, All Gov’t Operations) Measurable: NRCan MeasuresMeasurable: NRCan Measures Accountable—Specific Organization or Person Can Be Held to Account: Public Works and Government Services Canada (PWGSC), OGDsAccountable—Specific Organization or Person Can Be Held to Account: Public Works and Government Services Canada (PWGSC), OGDs Results oriented—Measures a Tangible Outcome or Result of Program: Greening Government OperationsResults oriented—Measures a Tangible Outcome or Result of Program: Greening Government Operations Time bound: 2010-2011Time bound: 2010-2011

13. Part 2: ABCs of Compelling Accountability Reporting (CAR) A--There is an Accountability Relationship With: – A Mandatory Rendering of Account – A Mandatory Holding to Account by Party With Legitimacy B--Report with Compelling Accountability Changes Behavior of Reporting Entity/Shareholders/Regulators (Red Zone). C--There Are Consequences For Changes in Data, Key Indicators.

14. Part 3: What Is Missing from Corporate and Governmental Reporting on Nature?

15. Part 3: Corporate Accountability Reporting for Nature—No Context Human Use of Ecosystems (1.2 Earths) Global Ecosystems (Air, Water, Land) Sensitive Large Scale Ecosystems Aquatic Terrestrial Estuarine Coastal Oceanic Entity: HSE Unintended Depletion: Nature’s Carrying Capacity Nature, Fabric of Society

16. Part 3: Government No Link Government Policy or Targets for Federal Jurisdiction or Provincial Jurisdiction (Under Constitution). Canadian Environmental Sustainability Indicators (CESI). National Greenhouse Gas Emissions Data—No Provincial Break-out. No Data on Individual Provincial Stewardship of Large Scale Ecosystems (Boreal Forests).

17. Part 3: Government Accountability Reporting for Nature— No Detail on Federal Footprint National Measures No Break-Out: Provincial, Municipal Data Regional Large Scale Ecosystems Aquatic Terrestrial Estuarine Coastal Oceanic No Detail on Federal Footprint Unintended Depletion: Nature’s Carrying Capacity Nature, Fabric of Society

18. Accountability Precedes Compelling Measurement Aligning Environmental Reporting With Accountability Dan Rubenstein, CA, MA Scales of Governance danielbrubenstein@rogers.com 613-695-4322