© 2010 Torys LLP. All rights reserved.
Voluntary Trading & CSR —A Canadian Example
Carbon TradeEx AmericaSeptember 28, 2010
Patricia A. KovalPartner, Torys LLPCo-Chair, Climate Change & Emissions Trading [email protected]
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Greening Canada Fund
• A limited partnership open to Canadian investors, created by a community non-profit organization
• Styled along ‘non-profit’ lines
• Can deliver credits directly to its investors
• Fit for: carbon neutrality and CSR
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Three-pronged value
Value for Company X
Enables opportunities for reputational improvement through public recognition of community projects
Addresses customer expectations of responsible corporate actions
Benefits society by caring for the environment
Press releases show support for the community and customers
Environment
Community Business
Improve the environment by reducing carbon
emissions
Invest in Canadian green technology sector
Include projects in the public and non-profit sectors, e.g. schools, hospitals
Focus of GGF
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Greening Canada Fund — delivering Corporate Responsibility goals
GCF ties together business goals with citizenship and environmental goals
Effective Corporate Responsibility programs target strategic projects
Greening Canada Fund is committed to working with partners to ensure investments are tailored to their specific corporate objectives
– We believe that a strong citizenship is targeted and embarks on initiatives consistent with corporate objectives
GCF selects specific projects that align with existing areas of focus, such as:
– Source carbon offsets from community projects like schools, hospitals and social housing
– Offsets from private projects can be tailored to meet corporate objectives
GCF is developing the “green economy”
Forward thinking companies view sustainability as caring about the world’s future – and the future of their business
Companies are reducing their carbon footprint and addressing their environmental goals by supporting community projects
High quality credits provide positive public relations and positive connection to all stakeholders
“Frame the issue in the context of higher-level values such as responsibility, stewardship, vision, ingenuity.”
Simen Retallack,openDemocracy
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Greening Canada Fund: Benefits vs. Alternatives
Partnering with GCF Managing Offsets Internally
VS.
GCF delivers high quality carbon offsets
– Rigorous governance framework ensures credits meet environmental integrity criteria
– Economies of scale achieved by greater capital pool
– Larger selection of projects
Alternative options for obtaining carbon credits consumes more resources and is riskier
– Investing directly in specific projects requires internal expertise and allocating human resources
– Detracts from key corporate focus
– Broker network doesn’t ensure high quality offsets
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Investor Comments
“What makes the Greening Canada Fund so attractive is that the beneficiaries are located in communities across the country. Bringing local green projects to life will show Canadians how we can make a measurable difference in reducing emissions in our neighbourhoods – it makes the carbon story real.”
Karen Clarke-WhistlerChief Environment Officer
“BMO is proud to be one of the initial investors in the Greening Canada Fund. Our customers expect us to lead by example. Investing in this unique fund complements the efforts we are already making to achieve absolute reductions in our carbon emissions and use renewable energy – helping us achieve our commitment to reach carbon neutrality next year.”
Cam FowlerHead of Strategy and Corporate Marketing
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Project Examples
Type Sources GCF Examples Applications
Social(Public/non-profit)
• School boards• Public housing• Hospitals
• Toronto District School Board• Montreal School Board• B.C. landfill gas management project
• Retrofits• Solar heating• Geo thermal• Biomass power• Energy efficiency
Private • Power• Manufacturing• Waste management
• Quebec biomass project• Nova Scotia pulp & paper efficiency• B.C. biomass
• Wind power• Landfill gas flaring• Biomass power
www.torys.comTorontoNew York
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