Speaking Points

The Honourable Tony Clement, PC, MP
Minister of Industry

Launch of University of Waterloo School of Environment, Enterprise and Development

Waterloo, Ontario
November 6, 2009

Check Against Delivery

Thank you, Dr. Saini, for your kind words. Good morning, ladies and gentlemen.

It is always a pleasure to visit one of Canada’s hubs of innovation — the University of Waterloo. Over the years, this university has undergone a tremendous transformation, and the result is really quite impressive. Your cutting-edge facilities have earned the university many awards, and I must admit it makes this University of Toronto alumnus a little jealous!

It truly is my pleasure to speak to you today on such an important occasion, marking the official opening of the School of Environment, Enterprise and Development (SEED).

Today marks the culmination of a lot of hard work, dating back many years. I was speaking with David Johnston last week at the Association of Universities and Colleges of Canada annual fall meeting, and he is rightfully proud of the school’s latest addition.

I’m pleased that our government has contributed to this wonderful project through the Knowledge Infrastructure Program (KIP). KIP was designed to help offset new construction costs and retrofits for teaching facilities and project development space.

My colleague, Peter Braid, Member of Parliament for Kitchener–Waterloo, has worked tirelessly on your behalf to see the university receive this federal funding.

What I’d like to speak to you about today is why the government views facilities such as SEED as key not only to our academic and environmental futures, but also to our future economic prosperity. And why it makes sense to go green from a business perspective.

Canada has the potential to become a leader in a global marketplace that realizes that environmental and financial decisions can be complementary. In fact, this combination can present a competitive advantage.

Our government, as many of you know, is focused on supporting the foundations for a knowledge economy. In our vision, the knowledge economy of the future does not supplant our traditional industries; it complements them, in every way. Our strategic investments in research and innovation through Canada’s Economic Action Plan are a testament to this.

Guided by our Science and Technology (S&T) Strategy, the federal government has made significant investments in higher-education research and development (R&D).

In Budget 2007, we focused on developing the research partnerships among business, academia and the public sector that are essential if we are to translate Canadian discovery research into world-class innovation.

In the 2008 budget, we invested in international research excellence. By introducing the Vanier Canada Graduate Scholarships and the Canada Excellence Research Chairs program, we can attract and retain the world’s top students and researchers.

We created the Automotive Innovation Fund, aimed at strategic, large-scale R&D projects to build innovative, greener and more fuel-efficient vehicles. Our goal is to increase automotive R&D capacity in Canada and secure more knowledge-based jobs.

And in 2009, through Canada’s Economic Action Plan, we made one of the largest budget investments in S&T in Canadian history, investing an unprecedented $5 billion in S&T.

And as I mentioned earlier, SEED has benefited from the $6.75 million in funding to the University of Waterloo to expand and renovate facilities of the Faculty of the Environment. This funding was provided under KIP, a program announced in the Economic Action Plan.

Let me just touch on KIP for a moment.

It is a $2-billion initiative that is funding infrastructure projects at universities and colleges across the country.

KIP represents what can be achieved through constructive, two-way dialogue. University and college presidents told us that post-secondary infrastructure was their top priority to strengthen the overall system of support for Canadian researchers. As it turns out, investing in this infrastructure has also been a vital way to stimulate our economy during this global recession by creating jobs for Canadians.

With KIP, need met opportunity. And I am proud to say that, as of just last month, all $2 billion of KIP funding has been committed to projects on campuses right across Canada.

Of course, I would be remiss if I did not mention previous federal investments in this region for the Perimeter Institute for Theoretical Physics and the Institute for Quantum Computing.

There is no doubt that the Government of Canada’s significant long-term investments in science and innovation have bolstered our economic position and will serve us well as the economy recovers.

But it’s about more than strategic investments.

Deepening economic globalization and the emergence of intercontinental supply chains mean capital and many services are more mobile than ever before. Many industries are undergoing consolidation, and companies are being forced to adjust and refocus the way they go about meeting their objectives.

So why, then, does it make sense to go green now from a business perspective?

As a former Ontario minister of the environment, I know the value of a school that blends business and environmental studies. It makes good sense on so many different levels.

We are transitioning away from the days when adopting green business practices was thought of as an economic sacrifice, not an opportunity.

Simply put, we have to do a better job of balancing two objectives: the economy and the environment. But what I think is lost in this debate is that these two objectives can be quite complementary.

More and more, business leaders understand that greening their operations speaks to their bottom line — as they can see lower expenses and realize higher profits.

In fact, a global survey of leading consumer companies by The Boston Consulting Group found that companies that green their operations are rewarded for it with higher margins and higher market share. In today’s markets, green companies are seizing the opportunities they did not have before. As more companies recalibrate their mindsets to this “emerging” business trend, we will also see growth in environmental innovation and sustainability, which will become a distinct industry.

Consumer behaviour and preferences can create change among businesses big and small. Market forces can have a significant positive and environmental effect on business activities. The growing trend toward reusable grocery bins and shopping bags is one good example of this.

Mountain Equipment Co-op has appealed to consumer preferences by developing brand products using less material and recycled content wherever possible. It communicates this to its customers with the message “The Power of Choice,” which also challenges consumers to do their part concerning the environmental impact of their purchases.

Canadian Tire has developed an eco-line of products under the “Blue Planet” banner, including household cleaners, light bulbs and lawn care products. The company actively communicates the benefits of these products, and it is paying off. Its Blue Planet offerings are experiencing a spike in sales growth that exceeds sales of the company’s other product lines.

For manufacturers servicing that consumer base, sustainability is about minimizing or eliminating production, processing waste through eco-efficient practices and adopting new environmental technologies.

In short, green production activities can transform a business from the traditional single bottom-line focus to a triple bottom line — where economic, environmental and social considerations contribute to the measure of a company’s real value.

Some notable business leaders are applying these innovative practices to drive change in their industries and creating or gaining access to an increasingly prevalent, and lucrative, green supply chain.

Walmart Canada is greening its supply chain by requiring its suppliers to measure and report on their environmental performance. This allows Walmart to choose greener suppliers and, in turn, let its customers know the environmental impact associated with the products they buy.

Firms that use eco-efficient tools and practices are gaining a competitive advantage by delivering less material-intensive products to consumers.

Industry Canada has been working with industry stakeholders on best practices in green supply-chain management. This includes making use of renewable energies, such as solar and wind power, as well as encouraging suppliers to adopt green practices. On the shop floor, it can mean everything from paperless processes and reusable pallets to energy-efficient cooling systems.

Ladies and gentlemen, taken together in all of its economic, environmental and social stewardship terms, sustainability represents a long-term investment in the future of our businesses, our communities and our country.

SEED graduates constitute a first-mover advantage for us, and I would encourage the business people in the room today to tap into this resource. They are your tickets to success.

Congratulations again to all involved.

I look forward to working with you as we build a promising future together.

Thank you.