Canada’s Clean50
Part 4 of 5: Earth Day – Collaborative action for a sustainable future
Leadership matters. The Clean50 summit is a chance for leaders to gather, exchange ideas, form alliances and partnerships and come away inspired supplied
Support for ESG and climate action reaches tipping point
From the products and services they purchase to where they choose to invest and work, Canadians are increasingly favouring businesses with strong ESG performance, including those that take a proactive approach to addressing climate change.
“That’s a trend that has been gathering momentum over the past decade,” reports Gavin Pitchford, Clean50 Awards executive director and CEO of Delta Management Group. “I believe we have reached two tipping points: one, where we no longer have time to avoid catastrophic climate change without significant changes; and two, where a majority of Canadians have grasped that reality and are taking action.”
The growing movement to avoid fast fashion is a good example, says Mr. Pitchford. “Ten years ago, Kelly Drennan, who won a Clean50 award in 2017 for her thought leadership, was one of the few people talking about the need for transformation. Today, there are dozens of companies in Canada whose entire business model is wrapped around repurposing used fabrics or using sustainable materials to create new fashion.”
The popularity of such efforts reflects Canadians’ growing appreciation for steps that advance sustainability, believes Mr. Pitchford. “As more people prioritize sustainable solutions, we will ultimately get more sustainable solutions at lower and lower prices.”
Energy transition
The example of solar panels illustrates the change in costs. “Forty years ago, solar panels cost $77 per watt of capacity. Today’s price of 13 cents per watt represents approximately 1/600th of the old cost,” says Mr. Pitchford.
At this price point, the energy needed to power a 100-watt-equivalent LED bulb for 25 years – for an average of 10 hours a day – costs less than a single Timmies, he adds. "Solar energy is, by a huge margin, already the cheapest source of new energy today. And the price is still dropping.”
Such cost benefits are boosting an energy transition, with some of Canada’s leading oil companies transitioning towards becoming energy companies that invest in clean technologies and renewable energy instead of oil exploration.
Biofuels – energy derived from waste manure, animal fat and consumer waste – also feature prominently among this year’s Clean50, with awards for Karen Schuett, Simon Doray and Howard Field.
Considerable and ongoing savings can also be gained from improving energy efficiency; for example, by retrofitting existing buildings, which Mr. Pitchford considers “low-hanging fruit.
“Costs for these kinds of efforts are typically recovered within a year – or up to five years on bigger projects,” he says. “Where else does one achieve such high percentage of returns with annual paybacks continuing for at least 25 years?”
Waste reduction
Cost avoidance is at the top of the list of advantages companies that dedicate resources to environmental sustainability can expect, Mr. Pitchford notes. “Waste is never a good thing: not for the environment nor for a company’s bottom line.”
Efforts to transition to a circular economy include a drive to reduce – or even eliminate – plastics from the waste stream. “At the moment, using recycled plastic to build a printer, for example, is more expensive than using virgin plastic, partly because the price of oil cratered during the pandemic and partly because we’re still exploring ways to recycle plastic,” he says. “But as demand increases, processes will improve and prices will drop until we no longer need oil to produce plastic.”
Yet getting to that point requires people to support the companies leading the way, notes Mr. Pitchford. “If no one values that decision by a manufacturer to invest in the future we all need, then we’ll never get there. As consumers, we can vote with our wallets. When we reward companies that cut corners to keep their costs low, we’re deliberately choosing to contribute to climate change.”
Financing the clean economy transition
Financial markets are also instrumental in incentivizing change, says Mr. Pitchford. “Since the pandemic hit, there has been a massive inflow of capital into ESG ‘green bonds’ and investment funds. Responsible investing is increasing, and this confirms that ESG issues matter.”
Examples of leadership come from RBC, which has committed $500-billion in ESG-driven investment by 2025, and Addenda Capital, he says. Other financial levers include cleantech venture capital as well as “government incentives to help spark a massive opportunity in developing the technologies that will be the lifeblood of the world economy in the next 10 years,” he says. “In Canada, we can be buyers or suppliers. Our prosperity – and our children’s prosperity – depends on the moves we make today.”
Translating ESG action into business success
The outcomes speak for themselves, believes Mr. Pitchford. “Companies that are conscious of their environmental risks and performance – and of their social responsibility and governance – are frankly better managed, more resilient and more profitable,” he says. “They are proactively addressing future events and risk factors, such as changes in consumer behaviour, regulations and markets.
“As importantly, good luck with either finding staff or raising capital in the future if you don’t have a strong ESG performance. Canadian employees of all ages are voting with their feet.”
While doing the right thing should be its own reward – it clearly brings additional benefits now, as Canadians rally behind the call to action against climate change.
Canada’s Clean50 Awards were founded in 2011 by search firm Delta Management Group to identify, recognize and connect Canada’s sustainability leaders, so that they might collaborate to accelerate Canada’s successful transition to a low carbon and prosperous economy. The 99 awards this year celebrate 50 individuals, 20 emerging leaders, five lifetime achievers and 24 of the top sustainability projects completed in the past two years. Honourees will gather with past honourees on September 30 for the 10th Clean50 Summit: an intense day of problem-solving discussions, making critical connections and celebrating success – inspiring participants to keep pushing for meaningful climate action.
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