Alberta energy companies and the City of Calgary are among the world’s leading businesses in taking care of both the financial bottom line and the environment, says an independent expert.
Corporations including Shell, Suncor, BP-Amoco, TransAlta and the city are years ahead of other firms and municipalities in implementing programs in sustainable development, social responsibility and environmental management, said Dr. Andrew Gillam, director of energy and environment for KPMG LLP in Vancouver.
Studies show organizations that put in place such programs – verifiable by a third party – enhance their reputation and improve their financial performance, Gillam said in a talk last week to the Calgary Chamber of Commerce.
“Corporations that fail to expand their indicators of success to include non-financial accountability are at risk of failing to win the support of discerning investors, trading partners, employees and regulatory authorities,” he said.
Shell is the first integrated oil company in Canada to have the environmental-management systems used in all its upstream and downstream facilities certified to the world’s top standard, called ISO 14001, he noted.
Investors and stakeholders are also rewarding initiatives by Shell, Suncor and BP-Amoco to form alliances with environmental groups and to diversify into clean and renewable energy sources, such as solar and wind power, Gillam said.
On the other hand, Imperial Oil – which has rejected the Kyoto Accord on climate change and refused to partner with environmentalists – runs the risk of hurting its reputation and bottom line, Gillam said.
“They seem to be swimming against the tide a little bit in terms of the way the industry is moving, particularly in Canada.”
The City of Calgary has been working for nine years to have the environmental-management systems used in all 12 city business operating units certified to the ISO 14001 standard.
Once all 12 units are registered, the city hopes to receive ISO 14001 certification in 2003 for its entire municipal corporate operation.
“That is a first in the world, that a municipal corporation has actually undertaken to do that,” said Dave Reynolds, the city’s manager of climate change and strategic initiatives. “We felt that we needed to start taking into account the environmental impacts of our operations and services.”
The city is poised to announce within a week that the first of its business units – which include Parks and Recreation, Wastewater and Drainage, Fleet and Supply, and the fire and police departments, has been independently certified to the ISO 14001 standard.
Two more business units are expected to achieve the goal by the end of January, Reynolds said.
The rigorous ISO-certification process includes an independent review of the environmental performance of each business unit. Each unit then has to implement a measurable, verifiable program to improve performance in such areas as energy use and efficiency, air and water pollution, and waste management and recycling.
