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2023 to 2024 Departmental Sustainable Development Strategy Report

Atlantic Canada Opportunities Agency

About this publication

Cat. No. AC2-14E-PDF

ISSN 2817-3554

Unless otherwise specified, you may not reproduce materials in this publication, in whole or in part, for the purposes of commercial redistribution, without prior written permission from the Atlantic Canada Opportunities Agency’s copyright administrator. To obtain permission to reproduce Government of Canada materials for commercial purposes, apply for Crown Copyright Clearance by contacting:

Atlantic Canada Opportunities Agency
P.O. Box 6051
Moncton, New Brunswick  E1C 9J8
Email: acoa.information.apeca@acoa-apeca.gc.ca

© His Majesty the King in Right of Canada, as represented by the Minister of Rural Economic Development and Minister responsible for the Atlantic Canada Opportunities Agency, 2024.

Introduction to the 2023-2024 Departmental Sustainable Development Strategy Report

The 2022–2026 Federal Sustainable Development Strategy (FSDS) presents the Government of Canada’s sustainable development goals and targets, as required by the Federal Sustainable Development Act . This is the first FSDS to be framed using the 17 Sustainable Development Goals (SDGs) of the United Nations 2030 Agenda, and it provides a balanced view of the environmental, social and economic dimensions of sustainable development. Since an amendment to the act in 2020, all regional development agencies are required to contribute to the FSDS and to develop a Departmental Sustainable Development Strategy (DSDS).

In keeping with the purpose of the act, to make decision making related to sustainable development more transparent and accountable to Parliament, the Atlantic Canada Opportunities Agency (ACOA) supports the goals laid out in the FSDS through the activities described in ACOA’s 2023–2027 DSDS. This 2023-2024 DSDS report provides an update on progress related to the Agency’s DSDS for the fiscal year 2023-24. The Agency is building on the success of its investments in 2023-24 by designing a new Clean Growth Initiative (CGI) to be launched in 2024-25. This new initiative will provide targeted support to promote sustainability among Atlantic Canadian small and medium-sized enterprises (SMEs) by assisting them in adopting clean technologies and sustainable practices.

The act also sets out 7 principles that must be considered in the development of the FSDS as well as DSDSs. These basic principles have been considered and incorporated into the Agency’s DSDS and 2023-2024 DSDS Report.

To promote coordinated action on sustainable development across the Government of Canada, ACOA’s departmental strategy reports on Canada’s progress toward implementing the 2030 Agenda and advancing the SDGs, supported by the Global Indicator Framework (GIF) and Canadian Indicator Framework (CIF) targets and indicators. The report also now captures progress on SDG initiatives that fall outside the scope of the FSDS.

Commitments for the Atlantic Canada Opportunities Agency

GOAL 7: INCREASE CANADIANS’ ACCESS TO CLEAN ENERGY

FSDS context:

In its strategy, ACOA committed to working with key energy stakeholders, partners and First Nations communities to advocate for the advancement of transmission and clean energy sources as well as to promoting collaboration with partners on clean energy infrastructure. The objective is to support a collective vision for how jurisdictions can collaborate over the coming decades to build a clean power network across Atlantic Canada and support the Government of Canada’s goal of generating 90% of electricity from renewable and non-emitting sources by 2030, up to 100% in the long-term.^{Footnote 1}

ACOA’s planned action areas include:

• advancing priority transmission by working with Atlantic Canada’s electricity providers and regulators to identify and address regulatory and innovation barriers to accelerate strategic high-impact regional projects
• adding new clean and non-emitting energy sources and developing emerging clean technologies to advance electrification. This includes identifying early-stage strategic proposals in Atlantic Canada, developing management capacity and fast-tracking readiness for national programs

Key updates:

In 2023-24, the Agency promoted a collective vision for jurisdictions at all levels to work together and create a clean power network at various tables. It supported concerted efforts that led to a commitment by Natural Resources Canada, the Province of New Brunswick and the Province of Nova Scotia to collaborate on the connection of the two provinces in a modified Atlantic loop. ACOA also collaborated with energy stakeholders, provincial governments and other federal government departments to build awareness of regional strategic clean-energy projects and to increase these projects’ readiness for national programs such as the Smart Renewables and Electrification Pathways Program, the Canada Infrastructure Bank and the Strategic Innovation Fund Net-Zero Accelerator Initiative. In November 2023, ACOA’s then President led a panel discussion at the U.S.-Canada Executive Energy Forum in Boston to promote Atlantic Canada’s clean energy accomplishments and opportunity, encourage collaboration, and build consensus around Atlantic Canada’s clean energy value proposition. Also, as part of the March 2024 Canada–Germany Hydrogen and Ammonia Producer-Offtaker Conference in Hamburg hosted by Natural Resources Canada’s minister, the Honourable Jonathan Wilkinson, ACOA led the discussion on the Atlantic Canada business case for large scale wind-to-hydrogen production with provincial partners. In addition, the Agency made strategic investments throughout Atlantic Canada in emerging clean technologies to advance electrification, such as in batteries, small modular reactors, wind supply chains, smart-grid technologies, and decarbonization of marine vessels and hydrogen.

The Agency worked with the regional energy sector to understand the economic impacts of the draft Clean Electricity Regulations and the Clean Investment Tax Credits and shared this feedback with federal departments. Internally, ACOA took concrete actions by building knowledge and awareness through 5 full-day green regional summits across ACOA offices with the goal to prepare employees to better support SMEs, organizations and communities on their greening journey. The Agency is taking a continuous learning approach to the clean energy transition, last year offering over 15 one-hour thematic sessions for staff on topics including the energy transition, clean electricity, hydrogen and other emerging clean technologies. As this sector evolves, so too will our internal efforts to ensure staff continue to learn.

Target theme: Renewable and non-emitting sources of electricity

Target: By 2030, 90 percent, and in the long term 100 percent, of Canada’s electricity is generated from renewable and non-emitting sources (Minister of Natural Resources)

GOAL 8: ENCOURAGE INCLUSIVE AND SUSTAINABLE ECONOMIC GROWTH IN CANADA

FSDS context:

ACOA aims to build a strong and resilient economy that is innovative, diverse and inclusive. In its DSDS, the Agency recognized that clean technologies provide the pathway to mitigate greenhouse gas emissions and move toward more sustainable growth in all areas of the economy. ACOA carried on its significant investments in clean growth and clean technology to support the development of this sector and increase demonstration, commercialization, adoption and export in the region.

ACOA’s planned action areas include:

• electrification, decarbonization and enhanced efficiency of Atlantic Canada’s economic sectors, especially those most vulnerable to market pressures
• improving supply-chain development by helping SMEs to decarbonize their operations to remain competitive in domestic and international supply chains

In the context of the FSDS, the 2030 Emissions Reduction Plan, the interim Sustainable Jobs Plan, the Innovation and Skills Plan, the Atlantic Growth Strategy and the Regional Energy and Resource Tables, ACOA prioritizes work with the governments of the 4 Atlantic Canadian provinces – as well as with federal departments, including other regional development agencies, regional Indigenous communities, organizations, industry stakeholders and experts – to pursue opportunities to stimulate economic growth, create jobs, grow clean-tech firms, adopt clean technologies, foster exports and drive innovation to transition to a low-carbon economy, leveraging regional strengths.

Key updates:

In 2023-24, the Agency funded over 230 clean-growth priority projects with expenditures totalling $57.4 million. Projects supported the commercialization of new clean technologies, funded research and development and export development, and helped SMEs adopt clean technologies. The Agency also enhanced its capacity to integrate sustainable development into its activities, resulting in employees who are more fluent in clean and sustainable growth considerations and the paths for communities, SMEs and organizations. These activities were informed by the lived experiences, including sustainability best practices, of ACOA clients.

Progress against this goal indirectly supported other SDG targets (SDG target 8.9), including support for the development of sustainable tourism that creates jobs and promotes local culture and products by 2030. ACOA contributed to this goal by investing $66.6 million in over 660 tourism projects, of which 12 projects ($2.94 million) were also part of clean-growth priority projects investments.

In 2023-24, the Agency’s activities continued to help affected communities through economic diversification activities during the transition to a greener economy. A prime example is the assistance provided to sustainable energy sources and industrial green hubs. This supported the FSDS short-term milestone of delivering a coal-transition program in Atlantic Canada. ACOA invested nearly $11.4 million in 21 infrastructure projects to help affected communities move away from energy provided through coal. Of these projects, 11 ($6.4 million) were also part of clean-growth priority investments. As part of these activities, ACOA invested in projects that supported the commitment by Natural Resources Canada and the Provinces of New Brunswick and Nova Scotia to advance the phasing out of coal by 2030.

Finally, ACOA made progress toward its planned actions on supply-chain development to remain competitive in domestic and international markets. For example, the Agency supported Energy NL’s Renewable Energy Supplier Session about wind and hydrogen developments in Newfoundland and Labrador to promote supply-chain development, which included approximately 300 service and supplier participants.

Implementation strategies supporting the goal

This section is for implementation strategies that support the goal “Encourage inclusive and sustainable economic growth in Canada” but not a specific FSDS target

GOAL 10: ADVANCE RECONCILIATION WITH INDIGENOUS PEOPLES AND TAKE ACTION ON INEQUALITY

FSDS context:

The Government of Canada aims to implement the United Nations Declaration on the Rights of Indigenous Peoples Act. ACOA’s Departmental Plan speaks to realizing this goal through the overarching objective of building a more innovative, inclusive, diversified and sustainable regional economy. ACOA’s investments target capacity building and increasing knowledge and awareness by convening federal, provincial, stakeholder and community partners.

In its DSDS, ACOA’s planned action areas include:

• investing in projects led by Indigenous peoples and other under-represented groups, as well as projects with goals of diversity and inclusion
• supporting the Government of Canada’s commitment that 5% of the total value of contracts be awarded to Indigenous businesses
• continuing to prioritize equity, inclusion and anti-racism within its Human Resources practices to respond to the forward direction of the Clerk’s Call to Action on Anti-Racism, Equity and Inclusion in the Federal Public Service as well as to Many Voices One Mind: a Pathway to Reconciliation
• the Agency’s 2022–2025 Employment Equity, Inclusion and Anti-Racism (EEIAR) Action Plan contains recruitment, retention and career development objectives for Indigenous peoples and other equity-seeking groups
• continuing to move toward inclusive business practices by promoting its internal strategy for employees to contribute to a culture that welcomes, respects, appreciates and includes voices from diverse backgrounds, and takes action toward identifying systemic racism, discrimination and barriers

Key updates:

In 2023-2024, with its suite of programs and initiatives, ACOA invested $62.9 million on 520 projects to support diversity, equity and inclusion objectives or entrepreneurs from under-represented groups. This included $18.9 million for Indigenous peoples, as well as support for the following groups: $24.4 million for women; $13.8 million for official language minority community members; $4.3 million for Black, racialized and visible minorities; $3.5 million for persons with disabilities; $3.4 million for recent immigrants; and $3.8 million for youth. In addition to these groups, the Agency recognized that a person’s place of residence may be a limiter to accessing government support. In response to this reality, ACOA delivered a significant portion of its support, nearly 50%, to rural communities, representing $179.5 million in spending on more than 1,261 projects. Furthermore, the Agency awarded 27.8% of its contracts to Indigenous businesses, continuing to support the Government of Canada’s commitment to increase the participation of such businesses in federal procurement. Finally, ACOA invested $2.6 million in Atlantic Canadian business support organizations through the Black Entrepreneurship Program’s National Ecosystem Fund to help support a dynamic and vibrant Black presence within the business community in the Atlantic provinces.

As part of its response to the Call to Action and its EEIAR action plan, the Agency met its objective of making its workforce more diverse by including greater Indigenous employee representation and creating a new Indigenous employee-led network. This new network, along with 8 other equity-seeking networks and 4 regional EEIAR Committees, has helped guide the Agency’s strategies and action plan.

Target theme: Advancing reconciliation with First Nations, Inuit and the Métis communities

Target: Between 2023 and 2026, and every year on an ongoing basis, develop and table annual progress reports on implementing the United Nations Declaration on the Rights of Indigenous Peoples Act (Minister of Justice and Attorney General of Canada)

GOAL 12: REDUCE WASTE AND TRANSITION TO ZERO-EMISSION VEHICLES

FSDS context:

ACOA’s DSDS 2023–2027 highlighted how the Agency plans to support the Government of Canada’s goal to reduce waste generation through prevention, reduction, recycling and reuse, as well as to promote public procurement practices that are sustainable, in accordance with national policies and priorities. ACOA is committed to supporting the 2030 Emissions Reduction Plan by converting its light-duty fleet to zero-emission vehicles (ZEVs) and by maximizing the diversion of waste to landfills by following the Greening of Government Strategy for the procurement of goods and services.

ACOA does not own real property; however, it does participate in Government of Canada initiatives to maximize diversion waste from landfills. The Agency reduces waste destined for landfills through its ongoing internal strategies such as donating all functional computers and accessories to the Computers for Schools Plus program, and posting all reusable furniture on GCSurplus for transfer or resale.

Key updates:

In 2023-24, ACOA made active efforts to reduce its waste and practise responsible procurement. ACOA continued to green its fleet of vehicles, now consisting of 10% ZEVs. The Agency ensured all supplies purchased were sustainable, including Forest Stewardship Council-certified recycled paper. The Agency also recycled unused goods, donating nearly 400 items to Computers for Schools Plus. To extend the useful lifespan of ACOA’s surplus furniture, the Agency donated 11% of its furniture and sold 74% through GCSurplus.

Target theme: Federal Leadership on Responsible Consumption

Target: The Government of Canada’s procurement of goods and services will be net-zero emissions by 2050, to aid the transition to a net-zero, circular economy (all ministers)

GOAL 13: TAKE ACTION ON CLIMATE CHANGE AND ITS IMPACTS

FSDS context:

The Government of Canada, through the FSDS, will transition to low-carbon, climate-resilient and green operations in support of the Greening of Government Strategy. ACOA will continue to support these efforts through the implementation of Canada’s 2030 Emissions Reduction Plan, the Strengthened Climate Plan and the Pan-Canadian Framework on Clean Growth and Climate Change.

Key updates:

ACOA acknowledges that climate change can have an impact on its operations and continuously reviews its risk profile to identify climate-change-related risks in the departmental risk-identification exercise and make necessary changes to mitigate them as appropriate.

Target theme: Federal Leadership on Greenhouse Gas Emissions Reductions and Climate Resilience

Target: The Government of Canada will transition to net-zero carbon operations for facilities and conventional fleets by 2050 (All Ministers)

Integrating Sustainable Development

In its strategy, ACOA shared its sustainable development vision of creating opportunities for economic growth and prosperity in Atlantic Canada by building on competitive regional strengths and through inclusive clean growth while remaining conscious of the impact of those actions. For example, the Agency has integrated the identification of opportunities and impacts into its decision-making tools through the analysis of baseline data that indicates the level of greenhouse gas (GHG) emissions for ACOA’s client groups.^{Footnote 2} This data has proven instrumental in assisting the Agency in identifying key areas of the Atlantic economy that might benefit from a concerted or targeted effort to mitigate GHG emissions. Additionally, the training of staff with tools such as the internal Green Toolbox, enables project officers to encourage clients to find opportunities to green their operations as a part of their future plans and projects. Over the next two years, ACOA will further support 100 SMEs’ strategic plans for greening their operations and implement sustainable actions through the CGI.

ACOA will continue to ensure that its decision-making process includes consideration of FSDS goals and targets through its Strategic Environmental Assessment (SEA) process. Performing a SEA for a policy, plan or program proposal includes an analysis of the impacts of the given proposal on the environment, including on relevant FSDS goals and targets.

Statements on the results of ACOA’s assessments are made public when an initiative has undergone a detailed SEA. The purpose of the public statement is to demonstrate that the environmental effects, including the impacts on achieving the FSDS goals and targets, of the approved policy, plan or program have been considered during proposal development and decision making.

ACOA did not complete any detailed SEAs in 2023-24.