Union conference focus: fighting climate change with innovative campaigns

LNS convergence meetingLabour and climate activists gathered to exchange experiences and plan for future action at the Second Labor Convergence on Climate event, held on September 23-24, under the banner “Building Worker Power to Confront Climate Change.”  The meeting was hosted by the Labor Network for Sustainability (LNS), which  recently released a report on the meetings  summarizing the impressive initiatives and projects,  including:  the Canadian Postal Workers Union proposal Delivering Community Power,  which envisions expansion and re-purposing of the postal station network to provide electric vehicle charging stations, farm-to-table food delivery, and  community banking ; the International Brotherhood of Teamsters described the San Francisco Zero Waste program that now diverts 80% of municipal waste from landfills into recycling and composting and provides union jobs; Service Employees International Union (SEIU) 1199  described their environmental and climate justice programs, resulting from the impact of disasters  like Superstorm Sandy;  worker training programs at the Net-Zero Energy training facility built by the  International Brotherhood of Electrical Workers (IBEW) Local 595 in partnership with the Northern California National Electrical Contractors Association; the United Food and Commercial Workers described their experience with the  Good Food Purchasing Policy as a tool for protecting and enhancing labor standards for workers in the food industry and advancing climate justice; and the International Brotherhood of Locomotive Engineers and Trainmen profiled their successful Green Diesel campaign to win cleaner fuel engines and a visionary strategy called  “Solutionary Rail” ,  profiled in “How we can turn railroads into a climate solution”  in Grist (March 2017) and in “ Electric Trains everywhere – A Solution to crumbling roads and climate crisis”  in  YES Magazine (May 2017).

Participants at the Second Labor Convergence on Climate included over 130 people –  labour union leaders, organizers, and rank and file activists from 17 unions, 3 state federations/central labor councils and 6 labor support organizations,  as well as environmental and economic justice activists.

Quebec Pension fund leads the way in low-carbon investing in Canada

The  Caisse de dépôt et placement du Québec (CDPQ) is Canada’s second largest pension fund, with $286.5 billion under management for the  public and parapublic pension plans of  Quebec workers. On October 18, the Caisse burnished its existing reputation as a responsible investor by releasing  “Our Investment Strategy to address Climate Change”,    a detailed strategy document which pledges to factor climate change into every investment decision.   The CDPQ will increase its low-carbon investments by 50% by 2020, and reduce the carbon intensity of its portfolio by 25% by 2025 across all asset classes.   According to an article in the Montreal Gazette , “the Caisse is the first fund in North America, and only the second in the world — after the New Zealand Superannuation Fund — to adopt this type of approach.” That article also notes that investment managers’ compensation will be tied to the emissions performance of their investments:  investment teams will be given fixed carbon budgets, “and their performance will be evaluated and remuneration linked to how well they stick to these budgets.” The announcement was also covered by the Globe and Mail  .

In contrast, the Canada Pension Plan Investment Board , entrusted with the funds to support the public pensions of 20 million Canadians (the CPP), continues to invest in oil and gas ventures – and according to Bloomberg Research , is currently involved in a bidding process for an Australian coal operation owned by Rio Tinto .  Friends of the Earth Canada is advocating against the bid as part of its ongoing campaign, Time to Climate-Risk-Proof the CPP  .  The CPPIB describes its investment strategy regarding climate change here  .

It is worth noting that the Labor Convergence on Climate event  organized by the Labor Network for Sustainability in September included a discussion of how union leaders and rank and file members can work through their pension funds to join the movement to divest from fossil fuels and make green investments .

The role of the banking and investment community is important in policy development also; the case is most recently made in  “Three suggestions for for B.C.’s Climate Solutions and Clean Growth Advisory Council” in the National Observer (Oct. 26). The article concludes:  “If the Advisory Council wants to see money move to support its policy aspirations they will have to find genuinely committed allies in the asset management and banking community. Action on climate change is great economic opportunity for British Columbia and Canada, and the financial sector must be brought into the discussion in order to accelerate the transition to a low-carbon energy system.”

How receptive is the Canadian investment community to considering and disclosing climate change risks and stranded assets? Two reports  by the UN-affiliated Principles for Responsible Investment ( PRI )   are relevant to this question. Fiduciary duty in the 21st century: Canada roadmap (Jan. 2017) makes recommendations for how Canadian pension fund and investment managers can catch up with the international community and implement the recommendations of the Taskforce on Climate Related Financial Disclosures (TCFD) . The PRI Canada country review (June 2017) describes the current regulatory framework for environmental and social governance disclosure .  The Responsible Investment Association has  also published the 2016 Canadian Responsible Investment Trends Report .

Actors within Canada include the Canadian Securities Administrators , which began their own  review on climate-related financial disclosure practices in March 2017 , but have not yet reported.   A group of Canadian Chief Financial Officers launched  the CFO Leadership Network in March 2017, to focus on the role CFO’s play in integrating environmental and social issues into financial decision making. The Canadian CFO Leadership Network is the Canadian Chapter of The Prince of Wales’s Accounting for Sustainability (A4S) CFO Leadership Network; in Canada, it operates in partnership with Chartered Professional Accountants of Canada , with support from The Prince’s Charities Canada.

Finally, SHARE (Shareholder Association for Research & Education), is a Vancouver-based organization which actively promotes sustainable and responsible investing. On October 12, it announced  that it is participating in an investor-led initiative which has written to the CEO’s of sixty of the world’s largest banks, including six Canadian banks, calling on them to adopt the landmark recommendations of the Taskforce on Climate Related Financial Disclosures (TCFD), released by the Financial Stability Board in December 2016 .  Specifically, they call for disclosure in four key areas: climate-relevant strategy and implementation, climate-related risk assessments and management, low-carbon banking products and services, and banks’ public policy engagements and collaboration.

 

Long-awaited Clean Growth Strategy of the U.K.-missing the workplace viewpoint

The British Government released its Clean Growth Strategy on October 12, outlining  how  it intends to reduce the country’s carbon emissions  by 57 percent between 2020 and 2032. The Guardian summarizes the main provisions in “Draughty homes targeted in UK climate change masterplan” – describing it as “about 50 policies supporting everything from low-carbon power and energy savings to electric vehicles and keeping food waste out of landfill.”  Highlights of the plan are £3.6 billion in funds to support energy efficiency upgrades for about a million homes, and subsidies for offshore wind development.  Also included: £1 billion is promised to encourage use of  electric cars,  £100m to fund research on carbon capture and storage (CCS) and £900 million for energy research and development, almost half of which will go to nuclear power.  The controversial issue of fracking is omitted completely.  For reaction and context, read   “UK climate change masterplan – the grownups have finally won” in The Guardian, or the Campaign against Climate Change response, which  notes that the policies will be insufficient to reduce emissions enough to stay within the UK’s carbon budgets after 2023.

The Secretary General of the Trades Union Congress reacted with this statement: “It has a bunch of targets, but lacks the level of public investment in low carbon infrastructure needed to achieve them. And there is a major blind spot towards working people who will create the clean economy.

“It doesn’t say how workers will get support to retrain if their job is under threat from the move to a low carbon economy. And it doesn’t set out how the government will work in social partnership with trade unions and business – this will be vital to a successful industrial strategy, building carbon capture and storage, and generating green growth.”

 

The future of wind energy in Alberta

wind-energy-alberta

From CanWEA website, showing the state of Alberta’s wind market as of 2017

The Province of Alberta is reinventing its energy supply with its Renewable Electricity Program, which targets 30% of the province’s electricity to come from renewable sources by 2030. To take stock of the province’s existing strengths, as well as gaps and opportunities related to that goal, the Canadian Wind Energy Association (CanWEA) commissioned the Delphi Group to study the existing resources, including workforce skills, to support the growth of the wind industry. The resulting report,  Alberta Wind Energy Supply Chain Study , concludes that if wind energy were to meet 90 per cent of the government’s commitment, it would result in an estimated $8.3 billion of investment in new wind energy projects in the province and almost 15,000 job years of employment by 2030.  Many of the skills and occupations required to develop wind projects – such as engineering, construction, operations and maintenance – are transferable from the oil and gas sector. CanWEA is urging the government to provide a long-term renewable energy procurement policy which would encourage investment .

The report is summarized by the Energy Mix, by the National Observer , and in a CanWEA press release.  CanWEA also provides current profiles of provincial wind markets – Alberta’s is here .  CanWEA’s annual conference was held in Montreal from October 3 to 5; the closing press release is here.

The National Observer story features the wind turbine technician program at Lethbridge Community College, and states that in January 2017, a third of the students who entered the College’s wind turbine technician program came from careers in the oil industry.

Proposals for a green transition that is just and inclusive in Ontario

decent_work_in_the_green_economy-coverDecent Work in the Green Economy, released on October 11 , combines research on green transitions worldwide with the reality of  labour market trends in Ontario, and includes economic modelling of  Ontario’s cap and trade program, conducted by EnviroEconomics and Navius Research.  The resulting analysis identifies which sectors are expected to grow strongly under a green transition (e.g. utilities and waste management and remediation),  which will see lower growth (e.g. petroleum refining and petrochemical production), and which will see a transformation of skills requirements (e.g. mining, manufacturing, and  forestry). Section 3 of the report discusses the impacts on job quality (including wages, benefits, unionization, and job permanence), as well as skills requirements.  The general discussion in Section 3 is supplemented by two detailed Appendices about the employment impacts by economic sector,  and by disadvantaged and equity-seeking groups (which includes racialized workers, Indigenous people, workers with disabilities, newcomers, women, and rural Ontarians.) A final  Appendix describes the modelling behind the analysis, which projects employment impacts of low carbon technologies by 2030.

The paper calls for a comprehensive Just Transition Strategy for Ontario, and proposes  six core elements illustrated by case study “success stories”.   These case studies include the Solar City Program in Halifax, Nova Scotia, (which uses local supply chains and accounted for local employment impacts), and the UK Transport Infrastructure Skills Strategy (which incorporated diversity goals and explicit targets in workforce development and retraining initiatives).  An important element of the recommended Just Transition Strategy includes a dedicated Green Transitions Fund, to transfer funding for targeted programs to communities facing disproportionate job loss; to universities or colleges to provide specialized academic programs; to social enterprise or service providers to carry out re-training programs; to directly impacted companies to invest in their employees; and to individuals in transition (much like EI payments).

The authors also call for better data collection to measure and monitor the link between green economy policies and employment outcomes, and better mechanisms for regular, ongoing dialogue.  This call for ongoing dialogue seems intended to provide a role for workers (and unions, though they are less often mentioned). The authors state: “No effort to ensure decent work in the green economy will be successful without meaningfully engaging workers who are directly impacted by the transition, to understand where and how they might need support. Just as important will be the ongoing engagement with employers and industry to understand the changing employment landscape, and how workers can best prepare for it.” And, on page 39,  “Public policy will be a key driver in ensuring that this transition is just and equitable. …. Everyone has a role to play in this transition. Governments, employers, workers, unions and non-profit organizations alike must remember that if we fail to ensure that the green transition is just and inclusive, we will have missed a vital opportunity to address today’s most pressing challenges. But if we design policies and programs that facilitate this transition with decent work in mind, they have the potential to benefit all Ontarians.”

Decent Work in the Green Economy was published by the  Mowat Centre at the University of Toronto, in cooperation with the Smart Prosperity Institute at the University of Ottawa.  In addition to economic modelling, the analysis and policy discussion is based on an extensive literature review as well as expert interviews and input from government, industry, labour and social justice representatives. Part of the purpose of the report is to initiate discussion “between those actively supporting the transition to a green economy and those advocating for decent work” as defined by the ILO.  Further, the report states: “ Importantly, this conversation must address the need for equal opportunities among historically disadvantaged and equity-seeking groups who currently face barriers to accessing decent work.”