Toby A. A. Heaps says that due to increase in population and consumption habits, sustainability measures are gaining more importance for our quality of life.
That Canada's businesses are getting serious about environmental sustainability becomes evident when you look at the companies that make up the TSX 60, says Toby A. A. Heaps, CEO of Corporate Knights. He explains that for about half of the TSX 60's chief executive officers, part of their bonus is tied to meeting social or, in many cases, environmental targets. "When the CEOs of the biggest companies in the land have their bonus linked to achieving leadership on these issues, you're not talking about small numbers," he adds.
Mr. Heaps sees two elements driving this change. "There is a certain moral charge that comes from the appreciation and awareness that we are brushing up against some potentially serious climate limits and need to get a handle on our greenhouse gas emissions," he says. "It's important that we move forward, even if it isn't fast enough."
The second issue is closely linked to global population growth, says Mr. Heaps. "We are approaching nine billion people and over half of them are living in cities," he explains. "If we don't want to be stuck in traffic or choke on dirty air or, in some places, have limited access to water, we have to find more efficient ways to grow our prosperity."
While the population is growing in number as well as consumption habits, the planet has a finite amount of certain resources, says Mr. Heaps. "The ratio of people over resources is the driving force for increasing resource productivity, which is an important issue for businesses that want to thrive in the 21st century. If we want to have the same or a higher standard of life, we have to become more productive in the use of our resources, including energy."
Mr. Heaps believes the shift will also be apparent at this year's United Nations Climate Change Conference in Paris. "Generally, these summits are looked at with some pessimism, but this one is going to be different because the two biggest economies in the world, China and the U.S., have already committed to cap their emissions," he explains.
The two countries' commitments will lead to dramatic changes in the energy landscape over the next 15 years, believes Mr. Heaps. "The train on the low carbon economy has already left the station; it's only a matter of getting on or being left behind."
This content was produced by Randall Anthony Communications, in partnership with The Globe and Mail's advertising department. The Globe's editorial department was not involved in its creation.