Fact Sheet: Commissioner of the Environment and Sustainable Development: Greening Government Strategy Audit
One of the five audit reports tabled in Spring 2022, the Audit of the Greening Government Strategy, involves Treasury Board Secretariat (TBS) as the lead for the Strategy, and Transport Canada (TC) and National Defence (DND) as key departments that support the achievement of the Strategy’s objectives. (Annex A includes a summary of the five audits being tabled.)
Background: The Greening Government Strategy
The Greening Government Strategy, which is led by the Centre for Greening Government at TBS, was approved in Parliament in 2017 and updated in 2020. The goal of the Strategy is for the Government of Canada to transition to net-zero carbon and climate-resilient operations, while also reducing environmental impacts beyond carbon, such as on waste, water and biodiversity. The key commitment in the Strategy is to reduce federal greenhouse gas (GHG) emissions by 40% by 2025 and 90% by 2050, with the ultimate objective of being net-zero.
As of 2020-21, the Government of Canada had achieved a GHG emissions reduction of 40.6% (731 ktCO2eq) compared to 2005-06 (excluding the National Safety and Security fleet). For the same interval, TC saw a reduction of 23% (48 ktCO2eq) (Supplemental Information: For the 2021-22 interval, TC saw a reduction of 9.4% (6 ktCO2eq). Over 80% of TC's emissions are associated with the department’s marine fleet (mainly from the four vessels used to deliver the three Eastern Canada Ferry Services) and aircraft, presenting challenges in reducing emissions and eventually meeting the net-zero target given currently available technology and operating requirements. TC’s remaining principal sources of emissions (facilities and on-road fleet vehicles) have seen reduced emissions aligned with those achieved by other departments.
TC has developed a Carbon Neutral Roadmap which sets out a series of proposed actions to reduce GHG emissions across its portfolio of facilities and fleets; for each action, the Carbon Neutral Roadmap estimates the potential energy savings and GHG emission reductions, along with incremental capital costs. This Roadmap is being updated on a regular basis.
Commissioner of the Environment and Sustainable Development Audit
The CESD audit, which covered the period of January 1, 2017, to December 31, 2021, examined whether TBS led the Greening Government Strategy in a manner that supported progress in reducing the federal government’s GHG emissions. It also examined the implementation of the Strategy by National Defence and Transport Canada, assessing whether appropriate measures have been taken to reduce emissions within their areas of departmental responsibility, and if results were reported in a manner supported by sound internal controls.
Overall, the CESD concludes that TBS has led the GGS in a manner that supported progress in reducing GHG emissions but did not report some sources of emissions (e.g., from Crown Corporations) and did not have an approach to manage key risks to achieving the Government’s 2050 target. The CESD makes recommendations to TBS around the reporting of emissions, strategic commitments for the next revision of the GGS, risk management, requirements for departmental net-zero plans, and the tracking of cost and savings.
With respect to TC, the audit recognized that TC has developed an emission reduction plan, has taken steps to implement it, and has succeeded in reducing emissions to date. It also noted that the Department reports its GHG emissions reductions annually as required and has implemented internal controls to ensure the accuracy of the data reported to TBS. The audit found that while the Department identified risks that could impede the success of its GHG emissions reduction plan (e.g., those related to the four ferries), it did not develop a formal approach to risk management that specified roles, responsibilities, and accountabilities.
The CESD makes one corresponding recommendation to Transport Canada (and National Defence) to:
- Continually identify new activities that will significantly contribute to emission reductions and prioritize them based on risk; and
- Develop a risk management approach that defines significant risks and corresponding mitigation measures.
Transport Canada agrees with the recommendation and is taking action to address it. The Department’s Carbon Neutral Roadmap is currently being updated and regular updating going forward will ensure that it incorporates the latest analysis regarding short- and long-term actions that will significantly contribute to emission reductions. Transport Canada is also developing a Risk Management Framework to support the prioritization of resources toward the activities in the Carbon Neutral Roadmap. TC’s response to the recommendation makes note of these actions and commits to have the Risk Management Framework in place by March 31, 2023.
ANNEX A : 2022 Reports of the Commissioner of the Environment and Sustainable Development
Report 1—Just Transition to a Low-Carbon Economy. This audit focused on whether Natural Resources Canada, working with Employment and Social Development Canada and partners, had prepared to support workers and their communities for a just transition to a low-carbon economy. It also examined whether Natural Resources Canada, Employment and Social Development Canada, the Atlantic Canada Opportunities Agency, and Prairies Economic Development Canada had adequately supported a just transition for workers and communities affected by the accelerated federal phase-out of coal-fired electricity.
Report 2—Greening Government Strategy. This audit focused on whether the Treasury Board of Canada Secretariat led the Greening Government Strategy in a manner that supported progress in reducing the greenhouse gas emissions of the federal government. It also focused on whether National Defence and Transport Canada reported results supported by the implementation of internal controls and took appropriate measures to reduce greenhouse gas emissions in their area of responsibility.
Report 3—Hydrogen’s Potential to Reduce Greenhouse Gas Emissions. This audit focused on whether Environment and Climate Change Canada and Natural Resources Canada comprehensively assessed the role that hydrogen should play as a pathway to reach Canada’s climate commitments.
Report 4—Funding Climate-Ready Infrastructure—Infrastructure Canada. This audit focused on whether Infrastructure Canada designed and implemented a Climate Lens approach to designated projects under selected funding programs, and whether investments under these programs contributed to more resilient, less carbon-intensive, and inclusive infrastructure investments.
Report 5—Carbon Pricing—Environment and Climate Change Canada. This audit focused on whether Environment and Climate Change Canada ensured that carbon pricing systems in Canada were applied effectively, fairly, and transparently.