Accountability Through Measurement
Accountability Precedes
Compelling Measurement
Aligning Environmental Reporting with
Accountability
Dan Rubenstein, CA, MA
President, Scales of Governance
IISD Research Associate
Agenda
•
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?
– 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?
– Corporate Accounting: Information Without Context
– Government Accounting: Context Without Information
Part 1: Personal Experience- Environmental
Accounting
• Experience as a Chartered Accountant, Auditor for
Shareholders 1970s
• No Accounting for the Exxon Valdez (Black Oil, Red Ink)
1989
• Working with E.B. Eddy (Weston): Accounting for a ClearCut 1993:
– Inter and Intra-Generational Equity
– Accountable for Compliance HSE, Not for Nature
• 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.
• Geographer’s Perspective on Accounting for Nature 2003.
• Scales of Governance 2007.
Part 1: The Argument
• 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.
• Public Sector: Most Government
Reporting Initiatives Do Not Align
Data With the Accountability of the
Different Levels of Government.
Part 2: What is Accountability And
Why is a Necessary Condition for
Environmental Reporting That
Changes Human Behavior?
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.
Accountability Cycle
Holding to
Account
Rendering of
Account
Accountability
Relationship
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
Accountability
Entity:
Corporate
Profit
Shareholders
Bondholders
Bankers
Relationship
With
Consequence
Third Parties Liability, Consumer Protection
Nature, Fabric of Society
Class
Action
Liability
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
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.
Part 2: Federal Accountability For
Nature
•
SMART Targets for Federal Sustainable Development
Strategy (FDSDA):
•
Specific (10,000 Tons GHG, All Gov’t Operations)
•
Measurable: NRCan Measures
•
Accountable—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 Operations
•
Time bound: 2010-2011
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.
Part 3: What Is Missing from
Corporate and Governmental
Reporting on Nature?
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
Entity:
HSE
Aquatic
Terrestrial
Estuarine
Coastal
Oceanic
Unintended Depletion: Nature’s Carrying
Capacity
Nature, Fabric of Society
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).
Part 3: Government Accountability Reporting for Nature—
No Detail on Federal Footprint
National Measures
No Break-Out: Provincial, Municipal
Data
Regional
Large Scale
Ecosystems
No Detail on
Federal
Footprint
Aquatic
Terrestrial
Estuarine
Coastal
Oceanic
Unintended Depletion: Nature’s Carrying
Capacity
Nature, Fabric of Society
Accountability Precedes
Compelling Measurement
Aligning Environmental Reporting With
Accountability
Dan Rubenstein, CA, MA
Scales of Governance
danielbrubenstein@rogers.com
613-695-4322