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AN INFORMATION FEATUREMONDAY, MARCH 12, 2012 PAGE 1SpecialGLOBE 2012With the delicate relationship between business and theenvironment continuing to grow in complexity, progressivecompanies worldwide have responded by embracingsustainable practices, ethical investment models,better governance systems, social responsibilityand other contemporary approaches to business.Nowhere is this trend more evident than atbiennial GLOBE conferences – events that havegrown over the past 22 years to become one of the world’sleading forums for exploring the synergies between commerceand ecology. This week, 2,000 delegates will gather inVancouver to hear business leaders, policy-makersand environmentalists debate cutting-edge issuesfacing us all. INSIDE, a look at the challenges ofchange and what more must be done to balancethe needs of all the Earth’s stakeholders.Business environmentandtheIn the sustainability movement, policy debates loom largencreased awareness thatthe success of sustainabledevelopment depends asmuch on the willingness of investorsto provide capital as it doeson technology, regulation andbest practices is providing a growingplatform for collaborationbetween organizations committedto sustainability.But that doesn’t mean moreshould not be done to take theprocess even further, says PierreOuillet, vice-president, Finance,Resources and Operations at theUniversity of British Columbia(UBC).“It is quite important to havecomprehensive policies andincentive systems that drive theright outcome through pricing,taxation, rebates and policy,” saysMr. Ouillet. “In B.C., for example,a number of these elements arein place through provincial andmunicipal policies: the carbontax, the requirement for publicinstitutions to be fully offsettingtheir GHG emissions, and theLEED Gold standard for publicinfrastructure have contributedto significant shifts and to theemergence of a vibrant cleantechindustry.”Sandra Odendahl, director, CorporateEnvironmental Affairs atRoyal Bank of Canada, agrees on“There are a few areaswhere we, as a society,could do a better job.”Sandra Odendahl,Director,Corporate EnvironmentalAffairs, Royal Bank of CanadaONLINE?For more information, visit2012.globeseries.com.the need to keep moving forward.“There are a few areas wherewe, as a society, could do a betterjob,” she says. “One policyarea that could stimulate capitalinvestment in a greener economyis building codes. Buildingsare among the major users ofelectricity in Canada, and one ofthe biggest indirect sources ofgreenhouse gas emissions. Moreaggressive energy efficiency standardsfor residential and commercialbuildings could decreasethe energy use per square metreand stimulate innovation indesign and materials.”Both Ms. Odendahl and Mr.Ouillet believe energy pricingis a priority area for sustainabledevelopment.“Energy prices in B.C. are low,and few incentives exist to bettermanage demand in order toreduce peak consumption, when‘dirty’ energy sources are used.And yet the large-scale workdone at the University of BritishColumbia shows the tremendousimpact and savings that demandmanagement can generate,” saysMr. Ouillet.Ms. Odendahl says electricityprices that are closer to thereal cost of delivering electricitycould go a long way towards drivinginnovation and conservation,and could support the businesscase for increased capitalinvestment in renewables, but itwould be difficult to justify priceincreases in a tough economicenvironment.Mr. Ouillet says it is also criticalto have a holistic approach at theneighbourhood level.“Building density makes districtenergy solutions economic andthe investment in public transitmore affordable. This requiresa much stronger co-operationbetween public agencies, municipalitiesand developers,” he says.And it can be done, adds Mr.Ouillet. Vancouver, for example,has taken a leadership role indriving sustainable developmentby promoting density, investingin public transit, creating greenneighbourhoods and encouragingor mandating district energysystems.Financial institutions also havea role to play in channelling capitaltoward a greener economy,says Ms. Odendahl.“Banks can ensure that theyapply appropriate environmentaland social risk assessment to thereview of clients and transactions,”she says. “Environmentaland social issues that are not wellmanaged by clients can turn intocredit, reputation or legal risk fora bank, so it’s in the bank’s interestto assess and manage these. Italso helps promote more sustainableactivities by the companiesreceiving financing.”On the other hand, institutionssuch as universities have a dualrole to play, says Mr. Ouillet.“First, they can transformthemselves into large-scale livinglaboratories to demonstratewhat a green future looks like. Itis easier for them to implementsuch solutions when, like UBC,they combine a municipal function,a development arm, a largeresearch university, enthusiasticstudents and a culture of partnershipwith industry and NGOs,”he says.Secondly, he adds, universitiescan take a leadership role in advancingpublic dialogue and drivingco-operation among multiplestakeholders. For example, UBCis closely aligned with the Cityof Vancouver and Translink, theregional transportation authority,on sustainability issues.“I think the concept of theliving lab is a very powerful onethat can be a game changer forthe Canadian economy. The conceptis starting to be used by B.C.municipalities and peer institutions,and we welcome it,” saysMr. Ouillet.POLICYNew steps needed for secureenergy futureHEALTHZinc deficiency in diets of millions cannotbe ignoredhe global energy marketis undergoing a profoundtransformation as thedebate on supply, security andsustainability escalates. Whileinnovative technologies will bekey to addressing the challengesthat lie ahead, experts believethat the right policies are alsoessential to ensure that newapproaches are developed andimplemented successfully.James Tansey, CEO of Offsettersand executive director ofISIS Research Centre at UBCSauder School of Business, Canada’sleading provider of carbonmanagementsolutions, sayscarbon pricing, either throughtax or cap and trade programs, isa sensible policy option.“It is very difficult to makeany of the models for sustainableenergy work withoutinternalizing some of the costs,”says Dr. Tansey. “For example,what the Government of BritishColumbia has done by putting aprice of $30 a tonne on carbonsends a very strong signal toindustry about what they needto plan for in the future.”In some cases, he says, marketmechanisms work well, such asin the case of a high-emissionindustrial operation that uses asignificant amount of power.“A $30 a tonne carbon tax –equal to about $1.50 on everygigajoule of natural gas used inthe factory – lets the operatorplan for and respond to the taxthrough energy and transportationefficiencies and so on,” saysDr. Tansey.In other areas, such as emissionsstandards, regulation maybe the best approach. And hesays governments could play amore prominent role in promotinginvestment in emergingtechnology, as the federal governmentdoes through SustainableDevelopment TechnologyCanada.Jim Burpee, president andCEO of the Canadian ElectricityAssociation, says Canada hasone of the most reliable, affordableand sustainable electricitysystems in the world, but facesEnergy, Page 4hen one of the world’slargest producers of zinccomes face to face witha worldwide health crisis causedby too little zinc in the dailydiets of millions of people, itstands to reason that somethinggood will happen.For Teck Resources, theVancouver-based global mininggiant, doing nothing was not anoption, so it launched Zinc andHealth, a program aimed at gettingmore zinc into the diets ofpeople who need it.“About a third of the world’spopulation does not get enoughzinc in their diets and, tragically,nearly 450,000 children die everyyear from disorders relatedto zinc deficiency,” explainsMarcia Smith, senior vice president,Sustainability and ExternalAffairs at Teck.“More infants die from diarrhea-relateddiseases associatedwith zinc deficiency than frommalaria, HIV/AIDS and measlescombined.”As one of the world’s largestproducers of zinc, Teck knew“ More infants die fromdiarrhea-related diseasesassociated with zincdeficiency than frommalaria, HIV/AIDS andmeasles combined.”Marcia Smith,Senior Vice President,Sustainability and ExternalAffairs, Teck ResourcesINSIDEthat it had to help address thisproblem.“We launched a zinc andhealth program that is focusedon raising awareness about thedevastating impacts of zincdeficiency, as well as solutions toimprove nutrition and enhancecrop health,” says Ms. Smith.The gravity of the challenge isunderlined by the partnershipsthat have formed around theprogram.For example, at the WorldEconomic Forum in Davos,Switzerland, earlier this year,Zinc, Page 4CLIMATE CHANGE: Time for the debate to adopt a new tone.Page 3SUSTAINABLE SOLUTIONS: DuPont’s 200 years of experience helpsclients do better. Page 4HOW CAN A BUSINESS LEAVE ITS MARK ON THEWORLD WITHOUT LEAVING ITS MARK ON THE WORLD?Making an impact doesn’t mean you have to leave a footprint. DuPontoffers a team of experts in your industry who can customize a plan foryour business – from environmental management and energy efficiencyto asset productivity and capital effectiveness. Sustainable, actionableand effective. That’s what we do.Learn more at sustainableoperations.dupont.comDuPontSustainable SolutionsSUSTAINABLE OPERATIONSCopyright © 2012 E. I. du Pont de Nemours and Company. All rights reserved. The DuPont Oval Logo and DuPont are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates.

the g lobe and mail • mondaY, ma rc h 12, 2012AN INFORMATION FEATURE • page 2GLOBE 2012SUSTAINABLE CITIESCities must cope with growing global urbanizationCities of the future must balance land use and residential development to ensure that they are sustainable and provide for the needs of their residents.PHOTOS: SUPPLIEDmagine the world’s currenttotal population– seven billion people– all living in cities, makingunprecedented demands on theresources required to supporturban existence. Will we cope,or will society collapse under itsown unsustainable weight?David Boyd, adjunct professor,Resource and EnvironmentalManagement at Simon FraserUniversity, and co-chair of Vancouver’sGreenest City ActionTeam, along with Mayor GregorRobertson, says we will get theanswer by 2050. That’s whenforecasters believe seven billionpeople will be living in citiesaround the world.Dr. Boyd sees this massivemove to urban centres as both achallenge and an opportunity.“If we succeed in making citiessustainable, then we will achievethe holy grail of a sustainablefuture for humankind,” he says.And it’s not just the mega-citiesin developing countries thatface the challenge of sustainability.Right here in Canada, we needto do far more, warns Dr. Boyd.“Canadian cities are saddledwith unsustainable transportationsystems, outdated water andwastewater infrastructure, andinefficient buildings. These arelegacies of an era when cornucopianfantasies and the automobiledominated urban design,”he says.Another huge challenge, headds, is that Canadian cities arestruggling towards sustainabilitywith one arm tied behind theirbacks, because of inadequaterevenue-raising powers andcounterproductive federal andprovincial policies.And that’s a big part of theproblem as noted in a recentFederation of Canadian Municipalitiesreport, Building Canada’sGreen Economy.The report’s co-author is DavidThompson, director of sustainablecommunities at Ottawabasedthink-tank SustainableProsperity.“Normal municipal policytools – planning, zoning andthe like – tend to focus on thesymptoms without tacklingthe cause: prices. The bottomline is that buying on the urbanfringe is cheaper than buying inestablished urban areas. As theysay in the mortgage business,‘drive until you qualify,’” says Mr.Thompson.He points out that the costsof sprawling development areartificially suppressed by a rangeof financial and non-financialsubsidies such as the sprawlinducingincentives embeddedin the structure of municipal revenueinstruments like propertytaxes and property developmentcharges, in subsidies for infrastructureand services, and inunpaid environmental costs thateconomists term externalities.“Prices are very powerful decisiondrivers,” says Mr. Thompson.“The good news is we canshift the incentives at no net costto the city, and make them rewarddenser development. And ifwe really want to beat sprawl, weneed to get the prices right.”And sustainable cities not onlyprotect the environment, theyalso provide proven health andlifestyle benefits to residents.“Researchers have long known“European cities such asCopenhagen and Stockholmoffer invaluablelessons about greeninfrastructure and makingpeople the priority.One of the fundamentallessons involves reallocatingpublic spacefrom cars to people.”David Boyd,Adjunct Professor, Resource andEnvironmental Management,Simon Fraser Universitythat suburban sprawl locks inautomobile dependency, guaranteeingdecades of higher climatechange and smog emissions,”says Mr. Thompson. “Currentresearch is revealing an associationbetween urban sprawl andobesity, depression, diabetes andother illnesses.”Mr. Boyd says a sustainablecity is a place where people canhappily live, work, play, raisetheir children and retire.“It’s a place where all residentsenjoy clean air, safe water,comfortable housing, the musicof songbirds and access to greenspaces within a five-minutewalk,” he says. “A place wherethe average ecological footprintis within Earth’s capacity.”While it may seem utopian, Mr.Boyd says real progress is beingmade towards sustainable cities.“Urban visionaries and plannersunderstand that we livein a world of limits. Bigger isnot always better, and there aresmarter approaches. Europeancities such as Copenhagen andStockholm offer invaluable lessonsabout green infrastructureand making people the priority.One of the fundamental lessonsinvolves re-allocating publicspace from cars to people,” saysMr. Boyd.Here at home, he adds,Vancouver is a model forother Canadian cities because itscutting-edge sustainability planis focused on action.“From district energy systemsand city-wide composting toseparated bike lanes and communitygardens, Vancouver isundergoing both visible andinvisible transformations in itsquest for global leadership.”Mr. Boyd says Vancouver’ssuccess proves that aggressiveaction to become a sustainablecity triggers a virtuous circle:attracting human and financialcapital that leads to green jobs,healthier people, more happinessand smaller ecologicalfootprints.“It demonstrates that theEuropean approach can work inNorth America,” he says.This report was produced by RandallAnthony Communications Inc. (www.randallanthony.com) in conjunction with the advertising department of The Globe and Mail. Richard Deacon, National Business Development Manager, rdeacon@globeandmail.com.We see the possibilities.As a responsible energy developer, Suncor Energy faces an important challenge every day: to provide energy in a way thatminimizes our environmental impact. Our renewable energy team is working on part of the solution. Using revenues fromoil sands development, their job is to develop projects that offset greenhouse gas emissions while creating significant newbusiness opportunities. Their track record is impressive. Suncor is an owner in six operating wind projects and we’re alsoone of the largest biofuels producers in the country. Seeing the possibilities of renewable energy is a key component of ourstrategy and helps us build a more sustainable future.$750millionactualand planned investmentsin renewable energyby 20121million tonnes of CO 2emissions avoided per yearthrough Suncor’s renewableenergy portfolio255megawattsof electricityproduced by Suncor’s sixwind farms, enough to powerabout 100,000 homesFind out more about Suncor’s track record and how we are planning to responsibly develop North America’s energy supply.www.suncor.com/sustainabilityJudith Athaide, Kolja Vainstein,Dianne Zimmerman andKip Clancy work on Suncorrenewable energy projectsperformancepartnershipspossibilities Trademark of Suncor Energy Inc.

the globe and mail • mondaY, march 12, 2012AN INFORMATION FEATURE • page 4GLOBE 2012DUPONT SUSTAINABLE SOLUTIONSDuPont helping others to achieve sustainabilityn the 210 years since itwas founded in 1802,DuPont has learned a lotabout the best way to managea complex business. So it madesense to turn that experienceinto a service to help other organizations.As one of the world’s leadingscience companies, DuPont’sproducts and services havetouched the lives of billions ofpeople over many generations.But it has also faced significantchallenges and learned valuablelessons in addressing them.In the 1970s and 1980s,DuPont’s focus was on internalsafety and meeting environmentalregulations.In the late 1980s, Ed Woolard,chairman and CEO at the time,decided that it was essential to gofurther to address the challengesfacing the company. With theyear 2000 as the deadline, hecommitted DuPont to a numberof voluntary environmentalcommitments, including cuttingtoxic air emissions by 75 per cent,air carcinogens by 92 per cent,greenhouse gas emissions by 40per cent and hazardous waste by46 per cent.DuPont looked to increaseshareholder value with a goalof zero injuries, illnesses andenvironmental incidents as itdecreased raw material and energyinputs into its products andreduced emissions at its manufacturingsites.Neither Mr. Woolard noranyone else in the organizationknew exactly how it would bedone, but they were determinedto do it – and by 2000 had exceededall the voluntary commitments.Today, DuPont strives to buildsustainability into every productit develops, says Jim Weigand,president of DuPont SustainableSolutions (DSS), the divisionwithin the company that providesenvironmental, safety andprocess management consultingservices to other organizations.“Mr. Woolard’s successors,Chad Holliday and then EllenKullman, our current chairmanand CEO, believed it was importantfor DuPont to use our experienceto help other companiesbecome more sustainable,” saysMr. Weigand.While DSS focused initially onworker safety, its service offeringhas since been expanded to sustainableoperations, environmentalplanning and process safety.Mr. Weigand says the globalfinancial crisis three years agomade many companies realizethat while safety remainedimportant, they also needed tomake better use of capital byimplementing sustainable operations.“By operationalizing sustainability,companies not onlyimprove their safety records, butalso their overall performance onthe triple bottom line – people,profits, planet,” he adds.Suncor Energy, one of theleading operators in the oil sands,has been working with DSSfor more than five years. GordLambert, Suncor’s vice presidentof sustainable development, saysDSS was a logical choice for thecompany.“DuPont and the rest of thechemical industry transformeditself in the 1980s and 1990s, andthat journey is similar to whatthe oil sands industry has to takeon. We have to drive efficiency“By operationalizingsustainability, companiesnot only improvetheir safety records,but also their overallperformance on thetriple bottom line –people, profits, planet.”Jim Weigand,President, DuPont SustainableSolutionsand reduce our environmentalfootprint,” says Mr. Lambert.Currently, DSS is helpingSuncor with its environmentalgoals including land reclamation,water use and air emissions byensuring that capital allocation isoptimized to achieve the biggestenvironmental impact possiblefor every dollar spent.And while DSS’s service offeringcontinues to evolve to meetclients’ needs, DuPont itself isdeveloping and implementing itsown new sustainable practicesthat can be passed on throughDSS.For example, says Mr. Weigand,between 2008 and 2011 DuPont’sBuilding Innovations businesseliminated 81 million pounds ofwaste that had been going intolandfills by reducing waste at thesource, recycling and turning theremainder of the waste into byproductsthat are now generatingrevenue for the company.“What we bring to clients isreal world experience; not juststrategies,” says Mr. Weigand.“Our recommendations are basedon what we have done and continueto do every day in DuPont.”FROM PAGE 1Energy: Action needed at government levela major challenge to renew,replace and expand infrastructure.“The electricity system is thelifeblood of our economy,” saysMr. Burpee. “Changes in policiesand legislation that createa clear and predictable regulatoryenvironment will allowthe $347 billion in investmentsplanned between now and 2030to be made efficiently, effectivelyand sustainably.”He believes governmentsacross the country have thecapacity to take a holistic, integratedapproach to energy regulationbased on the principlesof sustainable development.“While the electricity sector isworking toward fostering greaterpublic understanding andacceptance of electricity-relatedprojects, we need governmentsto work toward clearing the“Through investmentin a Canadian energyinnovation strategy,the government shouldconsider greater publicprivatepartnerships inresearch, developmentand the deployment ofnew technologies, use ofan innovation fund, loanguarantees and otherfinancial incentives.”Jim Burpee,President and CEO, CanadianElectricity Associationdecision path for infrastructureproject approvals. Specifically,this takes the form of reformingthe approvals process for largeinfrastructure projects. At thesame time, we need governmentsto work with the industryto build public support forneeded infrastructure investments,”says Mr. Burpee.At the federal level, governmenthas an important role toplay in supporting investmentsin infrastructure-related innovation,he adds.“Through investment in a Canadianenergy innovation strategy,the government shouldconsider greater public-privatepartnerships in research, developmentand the deployment ofnew technologies, use of an innovationfund, loan guaranteesand other financial incentives,”says Mr. Burpee.He adds that the industry isalso concerned about loominglabour shortages.“A recent report releasedby the Conference Board ofCanada predicts that investmentactivity in the electricitysector will support an averageof 156,000 jobs per year until2030. But labour shortages willthreaten the reliability and sustainabilityof Canada’s futureelectricity supply,” warns Mr.Burpee.Health care professionals and female community health volunteers working toraise awareness about zinc deficiency in Nepal.PHOTO: COURTESY OF UNICEF AND THE INTERNATIONAL ZINC ASSOCIATIONFROM PAGE 1Zinc: Multi-party approach canhave an impactTeck and BASF, the world’sleading chemical company, announceda three-year agreementto jointly develop innovative andaffordable zinc fortification andsupplementation solutions withthe goal of reducing zinc deficiencyamong 100 million peoplein developing countries by 2015.The signing ceremony wasattended by United Nations SecretaryGeneral Ban Ki-Moon, whosaid the full engagement of manysectors and actors, including theprivate sector, is needed to breakthe links between poverty, foodinsecurity and malnutrition.And in Ottawa last summer,Teck, the federal governmentand the Micronutrient Initiative,an Ottawa-based internationalnot-for-profit organization thathelps the world’s most vulnerablepeople in developingcountries get the vitamins andminerals they need, announceda partnership to develop andsustain zinc treatment programsto help save children’s lives.Commenting at the time, VenkateshMannar, president of theMicronutrient Initiative, said theuse of zinc, in combination withoral rehydration therapy, to helpchildren recover from life-threateningdiarrhea is well-known,but the treatment is not beingused enough in countries thathave high numbers of childrendying.“This new partnershipprovides a huge boost to zincprogramming that will save children’slives,” he said.Ms. Smith says the challenge isnot to produce more zinc, but toget zinc into the diets of peoplesuffering from zinc deficiency.“This requires education, betterdistribution networks andgreater awareness of the dangersof zinc deficiency. In fact, theamount of zinc required annuallyfor zinc supplements to treatall cases of zinc deficiency isless than two per cent of Teck’sproduction and less than 0.1 percent of global zinc production,”she says.For more information visitwww.zincsaveslives.com.WITHGREATERWEALTHCOMESGREATERGOODCANADA’S LEADER INSOCIALLY RESPONSIBLEINVESTING.Evidenceshowsthatsociallyresponsiblecompaniesdobetterinthelongrun.Forthepast 25 years we’ve been actively engagingwithcompaniestohelpthemmitigateriskthroughsociallyresponsiblepractices.Thiscontributestobetterreturnsforyourportfoliowhile influencing positive change in the world.In 2012, we will engage with more than50 companies held in our funds to advancesustainable business practices. Companieslike Goldcorp. Following a visit to their MarlinMine in Guatemala in February 2008, wefiled a shareholder proposal asking Goldcorpto perform a Human Rights Impact Assessmenton their mine operations. As a result, Goldcorpnowmakesrespectforhumanrightsanexplicit component in their business strategyand operations.Ethical Funds offers the most comprehensivefamilyofsociallyresponsiblemutualfundsinCanada. Find out which ones are rightforyou.Ask your advisor about Ethical Funds today.MAKE MONEY.MAKE A DIFFERENCE.ETHICALFUNDS.COMCommissions, trailing commissions, management fees, and expenses all may be associated with mutualfund investments. Please read the prospectus before investing. Mutual funds are not guaranteed,their values change frequently and past performance may not be repeated. Ethical Funds and NEIInvestments are registered marks and trademarks owned by Northwest & Ethical Investments L.P.