annual report sustaining excellence · pdf filesustaining excellence annual report our vision...

30
2002 / 2003 SUSTAINING EXCELLENCE ANNUAL REPORT Our Vision Our Mission BETTER LIVING FOR ALL — SUSTAINABLY. TO CHAMPION INNOVATION, ENABLING SOCIETIES TO LIVE SUSTAINABLY. http://www.iisd.org

Upload: lenguyet

Post on 06-Mar-2018

221 views

Category:

Documents


2 download

TRANSCRIPT

Page 1: ANNUAL REPORT SUSTAINING EXCELLENCE · PDF fileSUSTAINING EXCELLENCE ANNUAL REPORT Our Vision ... IISD is registered as a charitable organization ... The Weekly Journal Review,

2002 / 2003

SUSTAININGEXCELLENCE

A N N U A L R E P O R T

Our Vision

Our Mission

B E T T E R L I V I N G F O R A L L — S U S T A I N A B L Y .

T O C H A M P I O N I N N O V A T I O N , E N A B L I N G S O C I E T I E S T O L I V E S U S T A I N A B L Y .

2002 / 2003 Annual R

eport of the International Institute for Sustainable Developm

ent

Le R

appo

rt a

nnue

l 200

2 -

2003

de

l’Ins

titut

inte

rnat

iona

l du

déve

lopp

emen

t du

rabl

e

D

NUN

http://www.iisd.org

Page 2: ANNUAL REPORT SUSTAINING EXCELLENCE · PDF fileSUSTAINING EXCELLENCE ANNUAL REPORT Our Vision ... IISD is registered as a charitable organization ... The Weekly Journal Review,

The International Institute for Sustainable

Development contributes to sustainable development

by advancing policy recommendations on international

trade and investment, economic policy, climate

change, measurement and indicators, and natural

resources management. By using Internet

communications, we report on international

negotiations and broker knowledge gained

through collaborative projects with global partners,

resulting in more rigorous research, capacity

building in developing countries and better dialogue

between North and South.

IISD receives operating grant support from the

Government of Canada, provided through the

Canadian International Development Agency

(CIDA) and Environment Canada, and from the

Province of Manitoba. The institute receives project

funding from the Government of Canada, the

Province of Manitoba, other national governments,

United Nations agencies, foundations and the private

sector. IISD is registered as a charitable organization

in Canada and has 501(c)(3) status in the United States.

161 Portage Avenue East6th FloorWinnipeg, ManitobaCanada R3B 0Y4Tel: +1 (204) 958-7700Fax: +1 (204) 958-7710

C-402, InternationalEnvironment House13, chemin des Anémones1219 ChâtelaineGeneva, SwitzerlandTel: +41 (22) 979-9373Fax: +41 (22) 979-9054

250 Albert StreetSuite 1360Ottawa, OntarioCanada K1P 6M1Tel: +1 (613) 238-2296Fax: +1 (613) 238-8515

212 East 47th Street#21FNew York, NY10017 USATel: +1 (212) 644-0204Fax: +1 (212) 644-0206

Printed in Canada on recycled paper, June 2003. Editor: Stuart Slayen, Manager, Publishing and Communications, IISD Design: Twenty3Below Graphic Design Translation (English to French): Louise Leroux Printing: Premier Printing

Institutional Highlights 1

From IISD’s President and Chair 2

What Have We Learned? Insights from IISDStaff 4

FAQ about IISD 8

Parting Perspectives 10

Measurement and Indicators 12

Knowledge Communications 14

Climate Change and Energy 16

Economic Policy 17

Trade and Investment 18

Reporting Services 20

Natural Resources Management 21

The IISD Team 22

Auditors’ Report 23

Consolidated Statement of Financial Position 24

Consolidated Statement of Operations 25

Note on Funding Arrangements 26

Schedule 1 - Schedule of Operations by Activity Area 27

Schedule 2 - Schedule of Designated Grants Committed 28

The full audited financial statements are available athttp://www.iisd.org/about/ or by writing to IISD.

E-mail: [email protected] Web site: http://www.iisd.org

CONTENTS

Address Patch 10/29/2003 02:58 PM Page 1

Page 3: ANNUAL REPORT SUSTAINING EXCELLENCE · PDF fileSUSTAINING EXCELLENCE ANNUAL REPORT Our Vision ... IISD is registered as a charitable organization ... The Weekly Journal Review,

I I S D 2 0 0 2 / 0 3 A N N U A L R E P O R T

1

INST

ITU

TIO

NA

L H

IGH

LIGH

TS

INSTITUTIONAL H I G H L I G H T S

2002 / 2003

● IISD entered into the fifth and finalstage of the Local Agenda 21 projectwith three municipalities in Romania.The project is designed to helpRomanian citizens and municipal staffimprove the quality of life in theircommunities. See page 12.

● In cooperation with the GlobalKnowledge Partnership andTakingITGlobal, IISD established theYouth Creating Digital OpportunitiesCoalition. The group seeks to realizethe potential of young people as lead-ers in using information and commu-nications technologies to achieve moresustainable development. See page 15.

● With Canada’s ratification of theKyoto Protocol, IISD’s ClimateChange and Energy Team has beenparticipating actively in the implemen-tation process. The institute’s role inthe climate change arena is growinginternationally as well. See page 16.

● The five-year, multi-million dollarTERI-Canada Energy EfficiencyProject is drawing to a successful close.Most of IISD’s work in the past yearfocused on green budget reform.Working with our partners at TheEnergy and Resources Institute inIndia, many interesting developmentstook place. See page 17.

● In partnership with theInternational Centre for Trade andSustainable Development, IISD pro-duced the Doha Round Briefing Series,a collection of 13 reviews of key issuesin the current round of World TradeOrganization negotiations. See page 18.

● IISD’s Earth Negotiations Bulletincovered more than 30 United Nationsmeetings. See page 20.

● There were roughly five millionWeb page requests for Linkages(http://www.iisd.ca) last year with traf-fic peaking during the World Summiton Sustainable Development. About 1.2million copies of the Earth NegotiationsBulletin and 720,000 IISD researchreports were downloaded.

● The Mining, Minerals andSustainable Development – NorthAmerica project drew to a close thispast year. The MMSD-NA processinvolved about 150 people andbrought the issue of sustainable devel-opment to the attention of an entireindustry. See page 21.

● The IISD Research Library onlinedatabase now contains 20,000 docu-ments and links on sustainabledevelopment. The library also han-dled about 1,000 requests for infor-mation and 400 interlibrary loanslast year. The Weekly Journal Review,an electronic mailing list derivedfrom 125 peer-reviewed journals onsustainable development, now has1,700 subscribers.

● The institute earned $8,331,750 indesignated grant revenue, an eight percent increase over last year. See page 27for a breakdown by activity area.

iisd02/03English 6/19/2003 09:15 AM Page 1

Page 4: ANNUAL REPORT SUSTAINING EXCELLENCE · PDF fileSUSTAINING EXCELLENCE ANNUAL REPORT Our Vision ... IISD is registered as a charitable organization ... The Weekly Journal Review,

I I S D 2 0 0 2 / 0 3 A N N U A L R E P O R T

2

Jacques Gérin(Canada), Chair

David Runnalls(Canada), President

Edward S. Ayensu(Ghana)

James Bruce(Canada)

James Carr (Canada)

Eleanor Clitheroe(Canada)

Angela Cropper(Trinidad and Tobago)

Christian Friis Bach(Denmark)

Nicolas Imboden(Switzerland)

Aban Marker Kabraji(Pakistan)

Ashok Khosla (India)

Rosemarie Kuptana(Canada)

Huguette Labelle(Canada)

Elizabeth E. May(Canada)

Mark Moody-Stuart(United Kingdom)

Bob Page (Canada)

Edward Schreyer(Canada)

Board of Directors

FROM IISD’sPRESIDENT

& CHAIRFROM IISD’s PRESIDENT & CHAIR

With some 100 heads of state and gov-ernment gathering in Johannesburgfor the World Summit on SustainableDevelopment (WSSD) in August, thispast year was to have represented afresh start for sustainable development.

Indeed the “side events” at WSSDwere a great success, illustrating themany actions that governments, civilsociety and the business communityare taking to implement sustainabledevelopment. By contrast, though, theofficial negotiations were disappoint-ing, characterized by a number ofheroic statements with few specifictimelines and even fewer financialcommitments. One success was theagreement among virtually all coun-tries on the critical link between ahealthy global environment and the

elimination of mass poverty in thedeveloping world. This is familiar ter-ritory for IISD. It lies at the heart ofour Economic Policy activities.

Based on the work of Nobel LaureateAmartya Sen, IISD developed a poverty-environment framework which wasendorsed by the Governing Council ofthe United Nations EnvironmentProgramme. The UNEP GC alsoadopted a workplan to demonstrate theapplication of this framework in Africaover the next three years. IISD expectsto advise and to play a leading role incoordinating the related network andin conducting country studies.

Prime Minister Jean Chrétienannounced at WSSD that Canadawould ratify the Kyoto Protocol. This

touched off a spirited national debateculminating with Parliament’s ratifica-tion in December. IISD played animportant role in this debate throughfrequent media appearances andthrough our close association with theCanadian and Manitoba governmentson the issue. We have also been active-ly exploring the links between climatechange and development through ourwork on a Clean DevelopmentMechanism project in Chile and ourcollaboration with the Centre forInternational Climate andEnvironmental Research (CICERO) ofNorway and The Energy andResources Institute (TERI) of India onthe impacts of climate change andglobalization on Indian agriculture.

Charles Hantho(Canada)

iisd02/03English 6/19/2003 09:15 AM Page 2

Page 5: ANNUAL REPORT SUSTAINING EXCELLENCE · PDF fileSUSTAINING EXCELLENCE ANNUAL REPORT Our Vision ... IISD is registered as a charitable organization ... The Weekly Journal Review,

I I S D 2 0 0 2 / 0 3 A N N U A L R E P O R T

3

Advisory ParticipantsNorm Brandson, Deputy Minister, Manitoba ConservationJames Eldridge, Clerk of the Executive Council, Province of ManitobaLen Good, President, Canadian International Development AgencyAlan Nymark, Deputy Minister, Environment CanadaMaureen O’Neil, President, International Development Research CentreMary Simon, Ambassador for Circumpolar Affairs (DFAIT)

Friends of the InstituteGro Harlem BrundtlandJosé GoldembergSir Shridath Ramphal

Distinguished FellowsArt Hanson, Senior ScientistJim MacNeill, Chair EmeritusMaurice Strong

Founding ChairLloyd McGinnis

Our collaborative styleThis spirit of partnership is essential toour institutional health and perform-ance. If sustainable development is ourpurpose, collaboration is our style.From our work with TERI on greenbudget reform, adaptation to climatechange and subsidies; through ourknowledge networks on trade, climatechange and communications; throughour work with numerous developmentresearch institutes, we have alwayssought to strengthen ourselves and ourSouthern partners and to help ensurethat the information flow does not justrun from North to South.

We also believe firmly in building ourpartnerships with the private sector.We completed the North Americanstudy for the global Mining, Mineralsand Sustainable Development initia-tive, which involved more than 30 ofthe world’s major mining companies,and we continue to be active partici-pants on the Shell Canada ClimateChange Advisory Panel.

Preparing policy recommendations isone thing. They must also be commu-nicated effectively. We are proud ofthe effectiveness of our KnowledgeCommunications and ReportingServices teams. The EarthNegotiations Bulletin offered compre-hensive coverage of more than 30

international environmental meetingsfor delegates and interested observersaround the world. For the eleventhstraight year, the ENB helped to keepprocesses open and transparent, whilelevelling the playing field for all nego-tiators. The ENB also continued tocontribute to remarkable traffic onIISD’s Web space. There have beennearly two million document down-loads in the past year. We’re veryproud of our reach.

People andplanning:Laying thegroundworkfor the futureThis past year was a good one for ourresearch and dissemination activities,which are celebrated throughout thisreport. We are also laying the ground-work for the future. The Long RangePlanning Task Force of the Board hasupdated our Strategic Plan and pro-vided direction for enhancing IISD’simpact and effectiveness. Our budgetdeficit is down from last year and wewill balance our books this year.

IISD does not manufacture widgets.Our strength lies in our people andtheir ability to create and share ideas.And we are beginning to invest morein our people through major traininginitiatives and upgraded tools. We

believe that our continuously improv-ing ability and willingness to supportour people and to create a rewardingand stimulating work environmenthelps us to attract many of the best andthe brightest. We are confident thatour investment in staff developmentwill lead to even greater levels of insti-tutional performance.

Our efforts on Trade and Investment,Reporting Services and ClimateChange have reached critical mass.Over the coming year we will putmajor resources into developing ourprograms on the sustainable manage-ment of natural resources and toextending the success of our initialefforts on Environment and Security, avital subject in the post-September 11age. We are grateful to our staff, ourassociates, our Board and our partnersfor their efforts and for their commit-ment to IISD.

Jacques Gérin, Chair of the Board

David Runnalls, President and CEO

iisd02/03English 6/19/2003 09:15 AM Page 3

Page 6: ANNUAL REPORT SUSTAINING EXCELLENCE · PDF fileSUSTAINING EXCELLENCE ANNUAL REPORT Our Vision ... IISD is registered as a charitable organization ... The Weekly Journal Review,

I I S D 2 0 0 2 / 0 3 A N N U A L R E P O R T

4

WH

AT

HA

VE W

E LEA

RN

ED?

WHAT HAVE WE LEARNED?

I n s i g h t s f r o m I I S D s t a f fOver the course of a year, IISD staff members engage in complex research and,collectively, interact with hundreds of stakeholders around the world. We continueto learn and grow as individuals and as an organization. In this feature, several membersof the I ISD team reflect on learning and on recent exper iences and encounter s.

As part of our Local Agenda 21 capacitybuilding project, three IISD staff mem-bers and two other individuals led train-ing sessions in three Romanian cities. Itwas one of the most satisfying experi-ences of the past year. It was a pleasureto see the interest and enthusiasm of thetrainees. We were received warmly andit was so good to realize that so manypeople are interested in sustainabledevelopment and in Local Agenda 21issues. And it was satisfying to learn thatwe could contribute to building partner-ships among the Romanians as well asbetween them and the Canadian team.

It is always satisfying to see a challeng-ing project draw to a successful conclu-sion. In May 2002, the United NationsEnvironment Programme released itsnew Global Environment Outlook(GEO) report, the third in an increas-ingly well-known and respected series.Although IISD has been involved most-ly in GEO’s global and behind-the-scenes aspects, we were ideally posi-tioned to bring global messages to ourlocal audiences through a launch weorganized in Winnipeg. It was good tosee a high turnout that included stu-dents and a provincial minister. There ismuch more to learn about ways of con-necting global issues to local audiences,but through GEO, and in a small waythrough this event, we made a difference.

Who cares about securing wildlife sanc-tuaries or ensuring clean air for futuregenerations, when wars are beingfought and innocent lives are lost? InBelgrade, a young bear conservationistfrom Greece described to me how, dur-ing the NATO bombing campaign inSerbia in 1999, he was invited byauthorities at the Belgrade Zoo to rescuetheir bear cubs. Driving several hun-dred kilometres through war-scarredcountryside, through roadblocks andcheckpoints, he succeeded in bringingseveral cubs back to Greece.Environment can bring people togetherin ways we have not imagined. Andtherein lies a slender branch of hope fora more peaceful future.

Peter HardiSenior Fellow

László PintérDirector,

Measurementand Indicators

Jason SwitzerProjectManager

“ “ “

”” ”

iisd02/03English 6/19/2003 09:16 AM Page 4

Page 7: ANNUAL REPORT SUSTAINING EXCELLENCE · PDF fileSUSTAINING EXCELLENCE ANNUAL REPORT Our Vision ... IISD is registered as a charitable organization ... The Weekly Journal Review,

I I S D 2 0 0 2 / 0 3 A N N U A L R E P O R T

5

Innovation and continuous learningcaught my attention this year. Whilepolicy-making and inter-governmentalnegotiations often move ahead at asnail’s pace, sustainable developmentresearch can advance by leaps andbounds. The challenge for an organiza-tion the size of IISD is to keep very busyresearch staff ahead of the pack. Withthis in mind, I developed two modulesfor our Intranet: aptly named the“Innovatory” and the “Complexatory.”Each became a virtual space for our col-lective knowledge on innovation and oncomplex adaptive management.Brainstorming “brown bag” luncheswere held at which staff further devel-oped their knowledge and we pur-chased materials and developed bibli-ographies and other information toolsfor these e-laboratories. The WorldSummit on Sustainable Developmentalso provoked discussion and idea gen-eration, as we worked with sustainabledevelopment ‘movers and shakers’looking for ways to invigorate the Rioprocess. We also handled manyinquiries from a new crop of peoplewanting to know about the basics ofsustainable development, with my col-league Stacy Matwick and I feeling thatwe were going ‘back to the future.’

I’d have to say the single most signifi-cant thing I’ve learned since joining theIISD team three years ago is howimportant the Earth NegotiationsBulletin has been for the practice ofglobal environmental governance. Notonly do ENB summaries provide a use-ful tool for environmental negotiators,they also serve to connect policy-makersfrom around the world by furnishingthem with objective, up-to-date play-by-play as the events of a negotiationunfold. This is crucially important forthose unable to attend specific negotia-tion sessions. But perhaps more pro-foundly, I’ve learned that the impor-tance of ENB extends well beyond thepolicy domain. In my own work as agraduate student, I am forever encoun-tering academic texts that reference theENB as a definitive primary resource!

Climate change is an issue of such enor-mous complexity and scale that it isquite easy to become overwhelmed bythe volume of information generated onthe subject. I believe that the most suc-cessful projects have had strong net-works supporting them. This appliesinternationally and locally. Case inpoint, IISD and the other members ofthe Climate Change KnowledgeNetwork (CCKN) are actively engagedin addressing the inequities inherent inclimate change: developed countries cre-ate the majority of emissions—develop-ing countries will bear the brunt of thepredicted impacts; developed countriesdominate international negotiations—developing countries struggle to partici-pate effectively in the negotiations. Ifirmly believe CCKN projects con-tribute greatly to bridging these gapsand to bringing us closer to a moreequitable climate change regime.CCKN members have collaborated onseveral projects that may not haveoccurred—or have had much impact—without collaboration. The importanceof encouraging climate change researchorganizations from developing, transi-tional and developed countries to worktogether cannot be overstated.

Marlene RoyInformationResources

Coordinator

DennisCunningham

ProjectManager

Andrew Baldwin ENB

Writer/Editor

“ “ “

iisd02/03English 6/19/2003 09:16 AM Page 5

Page 8: ANNUAL REPORT SUSTAINING EXCELLENCE · PDF fileSUSTAINING EXCELLENCE ANNUAL REPORT Our Vision ... IISD is registered as a charitable organization ... The Weekly Journal Review,

I I S D 2 0 0 2 / 0 3 A N N U A L R E P O R T

6

In recent months, the two of us havehad the distinct pleasure of consideringhow an organization learns and assess-ing why institutional learning is soimportant to IISD. In the process, wehave learned that achieving our missiondepends on continually improving twokey aspects of institutional performance.

First, because our agenda is one ofchange, IISD’s role is essentially to man-age change in terms of how we workand how other organizations approachsustainable development. Second, inorder to stay on the leading edge ofinnovation for sustainable development,we must continually assess the effective-ness of our work and identify the les-sons we’ve learned, which can be inte-grated into future work.

As the two of us examine how we canbest capture and share the lessons, it hasbecome increasingly apparent that thecritical element is the actual implemen-tation of change. This requires anemphasis on effective communicationand engagement with those people we’retrying to influence. Through the workof a Board Long Range Planning TaskForce and institute staff, we are current-ly examining how we can increase theimpact and effectiveness of our work byarticulating specific strategies to identifyand interact with our most importanttarget audiences. Also, our internal pro-posal development and review processesinclude consideration of how to ensurethat the dissemination strategy isdesigned to include the means by whichprogress on a piece of work and theresults of that work are shared withstakeholders and target audiences.Finally, more effort will need to be spenton evaluating the outputs of projects andtheir effectiveness in creating thechanges that are originally planned.The second point leads to an ongoingexamination of how to create an organi-zational culture of learning and the

structures to encourage that learning.IISD encourages staff to work acrossdifferent institutional strategic objec-tives, contributing their skills to projectsin different areas. This has been success-ful to varying degrees, depending on thenature of the work and the flexibility ofthe staff involved. Considerable efforthas been expended this year to createnew tools for individual and organiza-tional learning, and to identify the link-ages among projects and goals of differ-ent research programs. To serve ouroffices and associates around the world,we’ve expanded our Intranet service toinclude online project managementtraining modules and access to projectsupport files and other tools. We havealso recently developed an Intranetorganizational learning frameworkcalled the Innovatory—a visualizationof IISD’s project development cycle tohelp us foster innovation and to identifylessons learned at all stages of projectdevelopment, from incubating ideas toproject learning and adaptation. In thecoming year, regular lessons-learnedbriefings are being planned for majorprojects nearing completion to recordkey lessons in our institutional memory.We look forward to exciting results.

As an IISD intern placed at theInternational Institute for Environmentand Development in London, my initialinterests were to gain skills that I wouldlater be able to use in an advertisingcareer. However, when you work dayafter day with brilliant people who gen-uinely want to make a difference thatisn’t attached to western-style consump-tion, your view is bound to change. Atleast mine did. Working in communica-tions, I would find it hard to be less thangeneral about SD. From a communica-tions standpoint, I’ve gained a greaterunderstanding of the need to set thepublic agenda in Northern countries.Londoners seem to have a fairly devel-oped social conscience as has beendemonstrated during the recent crisis ofwar. A major key is therefore makingdevelopment issues accessible throughmainstream media. In fact, I find itquestionable whether some of the ener-gy put into new research shouldn’t beredirected towards effectively commu-nicating existing research, thereby gain-ing broader support and knowledge forSD initiatives. I still believe in the powerof effective advertising, but far more inthe sense that it will be a necessary toolto create real change in development.

Bill GlanvilleVice-President,

ChiefOperating

Officer

DarrenSwansonResearchAssociate

Jared HuberIISD Intern

WHAT HAVE “ “

” ”

iisd02/03English 6/19/2003 09:16 AM Page 6

Page 9: ANNUAL REPORT SUSTAINING EXCELLENCE · PDF fileSUSTAINING EXCELLENCE ANNUAL REPORT Our Vision ... IISD is registered as a charitable organization ... The Weekly Journal Review,

I I S D 2 0 0 2 / 0 3 A N N U A L R E P O R T

7

TomRotherham

IISD Associate

WE LEARNED?This past year has served to strongly re-inforce a commitment to always main-taining a double perspective, one dealingwith the substance of what we do and theother dealing with the process of how weact. In terms of substance, I have seen afocus on the practical, nose-in-the-mudactivity of mining reveal great insightinto how the lofty concept of sustainabili-ty can be unbundled in a concrete way.There are several keys to thisunbundling. First, the central sustainabil-ity issue of “resource management” is notat all whether the resource itself isrenewable or non-renewable. Rather, thecentral sustainability issue of all humanactivities (focused or not on the manage-ment of resources) is whether or not thehuman activity in question results in apositive contribution to both humanwell-being and ecosystem integrity overthe long term. This is the ultimate test ofsustainability. Both are required. Thistwo-dimensional design criterion pro-vides a clean perspective. In order toachieve these results, relationshipsbetween interests, the economics of proj-ect and community, the institutions andmechanisms of governance must all behealthy. Furthermore, there must be inplace a way to ensure continuous learn-ing and a capacity to adapt to changingconditions. In years to come, this perspec-tive will come to be seen as nothing morethan common sense and it is that ingredi-ent that is both demanded and offered bythe nose-in-the-mud mining industry.

From a process perspective, I havelearned much in this past year. Butdominant is that I have seen the powerof a small team working together effec-tively. Here, there are two key ingredi-ents. First is to have a common purposethat is understood, not only because ofintellectual prescription but also becauseof a common spirit that is more intuitivethan anything else. Once such a spirit isin place, huge efficiencies are possible.Second, is to build a team based onrespect for the creative gift that each hasto offer. Each of us has to play a part inbringing that out in colleagues. No mat-ter where in the organizational hierar-

chy one might sit, each of us carries thismulti-directional management responsi-bility and its effective discharge makesan enormous difference.

Most of the time, I find people talkingabout youth leadership as somethingthat’s nice and cute. But, it’s not. It’surgent. As E.O. Wilson notes in TheFuture of Life, ‘The people of the devel-oping countries are already far youngerthan those in the industrial countries anddestined to become more so. The streetsof Lagos, Manaus, Karachi, and othercities in the developing world are a seaof children… In at least 68 of the coun-tries, more than 40 per cent of the popu-lation is under 15 years of age.’ If we areall going to make it through the next50–100 years, it will be because youngpeople reclaim their ability to act and tolead. We simply cannot afford a globalculture of bored youth with extendedadolescences. Young people around theworld will be increasingly called upon toplay important roles in providing educa-tion and health care as well restoring theenvironment. I’ve learned that youthleadership is not a matter of buildingcapacity for tomorrow, but a matter ofsurvival for us all today.

IISD’s role includes finding ways fordifferent groups to work together, be itthe World Trade Organization andNGOs, countries from the North andSouth, or even different ministries with-in the same government. Without trust,nothing can happen. Something that Ihave learned this past year is the impor-tance of investing in relationships—with people and with organizations.Through my work on the role of stan-dards in sustainable development, IISDis bringing together two groups withalmost no shared history: NGOs andnational standards bodies. Our experi-ence shows that there are areas wherecooperation can be mutually beneficial.But without trust, nothing can happen.There are no shortcuts to building uptrust. It takes time, and sometimes ittakes sacrifices. But after working cooper-atively with the standards community forover four years—making an effort to findcommon ground rather than focusing onthe obvious differences—IISD is nowable to act as an honest broker betweenthese two communities. Understandingsomeone is not enough. They have toknow that you understand them and seehow your appreciation for their concernsis shaping your opinions. Only then cantrust and cooperation develop.

Terri WillardProjectManager

Tony HodgeIISD Associate

“ “

iisd02/03English 6/19/2003 09:16 AM Page 7

Page 10: ANNUAL REPORT SUSTAINING EXCELLENCE · PDF fileSUSTAINING EXCELLENCE ANNUAL REPORT Our Vision ... IISD is registered as a charitable organization ... The Weekly Journal Review,

I I S D 2 0 0 2 / 0 3 A N N U A L R E P O R T

8

FAQ FAQABOUT IISD

Frequently asked questions about theInternational Institute for Sustainable Development

What

does IISD try to achieve?The International Institute forSustainable Development is in the busi-ness of promoting change towards sus-tainable development. Through ourresearch and through effective communi-cation of our findings, we engage deci-sion-makers in government, business,NGOs and other sectors to develop andimplement policies that are simultane-ously beneficial to the global economy,the global environment and to socialwell-being. In the pursuit of sustainabledevelopment, we promote open andeffective international negotiationprocesses. And we believe fervently inthe importance of building our owninstitutional capacity while helping ourpartner organizations in the developingworld to excel.

What

is sustainable development?Sustainable development is the notionthat humanity should strive to developthe economy in a manner that does notdamage the integrity of ecosystems andsocial well-being. It’s about workingtoward a better life for all people fortoday and for the future. The mostcommonly accepted formal definition ofSD is taken from Our Common Future,the landmark 1987 report of The WorldCommission on Environment andDevelopment. Chaired by formerNorwegian Prime Minister, Dr. GroHarlem Brundtland, the Commissionnoted that “Sustainable development isdevelopment that meets the needs of thepresent without compromising the abili-ty of future generations to meet theirown needs.”

Is

IISD primarily a think tank?

As an independent, not-for-profit com-pany, IISD indeed thoughtfully advancesdiscourse on the sustainable developmentissues of the day. But IISD is far morethan a think tank. Increasingly, we arebecoming an institute of applied researchwhere our people conduct research, andthen work toward effective implementa-tion of results and findings on theground. We are increasingly sought afteras a consultant to business and govern-ment. And as a coordinator of powerfulnetworks, we are a facilitator of world-wide alliances in the areas of trade, cli-mate change and communications.Finally, we are an exciting Internet andtechnology company reporting on inter-national negotiations, delivering ourresearch to the world and sharing ourtechnical expertise.

iisd02/03English 6/19/2003 09:16 AM Page 8

Page 11: ANNUAL REPORT SUSTAINING EXCELLENCE · PDF fileSUSTAINING EXCELLENCE ANNUAL REPORT Our Vision ... IISD is registered as a charitable organization ... The Weekly Journal Review,

I I S D 2 0 0 2 / 0 3 A N N U A L R E P O R T

9

How

did the institute start?

In 1988, former Canadian PrimeMinister Brian Mulroney announced atthe United Nations General Assemblythat Canada was poised to launch andfund a sustainable development institutein response to the World Commissionon Environment and Development. Atthe urging of the province of Manitobaand then-premier Gary Filmon, theinstitute was launched in Winnipeg(Manitoba’s capital) in 1990, fundedwholly by the governments of Canadaand Manitoba. While our fundingsources are becoming increasinglyinternational and diversified in nature,the federal and provincial governmentscontinue to support the institute andthe institute’s head office remains inWinnipeg.

Is

the institute genuinely international?

While we are a Canadian-based organi-zation, our team and our work areclearly international. Our 150 staff, asso-ciates, freelancers and Board memberscome from more than 30 countries. Ourwork and our relationships keep usactive on five continents. IISD’s officesare located in Winnipeg, Ottawa, NewYork and Geneva.

How

is the institute funded?

IISD has a budget of roughlyCDN$11.32 million. About 20 per centis financed by core funding. Roughly 80per cent is financed by designated grantsfor specific projects. Funding comesfrom numerous Canadian and interna-tional government sources, internationalorganizations, the private sector andfoundations. Our designated fundingprofile is increasingly international innature with almost the same amount ofdesignated funding coming from interna-tional governments and agencies as fromCanadian governments and agencies.

How

is the institute organized?

IISD is divided into seven activity areasincluding five strategic objective areasand two strategic functions. The fivestrategic objective areas where a bulk ofour research is carried out are: ClimateChange and Energy; Measurement andIndicators; Trade and Investment;Natural Resources Management; andEconomic Policy. The two strategicfunctions are Reporting Services andKnowledge Communications. OurReporting Services team covers interna-tional negotiations on environment anddevelopment, and the KnowledgeCommunications group helps researchstaff to get their messages out to thosethey most want to inform and engage,while conducting its own research onsustainable development communica-tions and engagement practices.

Who

is your audience?

In broad terms, IISD aims to influence,inspire and communicate with decision-makers—those people in government,business, civil society and other sectorswho are in a position to develop andimplement policies to achieve sustain-able development. The specific make-upof the audiences, of course, varies acrossour activity areas and over time.

What

is the composition and role ofyour Board of Directors?

Under Canadian law our Board isrequired to retain a Canadian majorityof 50 per cent plus one. The 2003–04Board has members from Ghana,Trinidad and Tobago, Denmark,Switzerland, the United Kingdom,Thailand and Pakistan. The Boardmeets twice a year in Canada and has anactive committee structure. The Boardgoverns, sets the institute’s strategicdirection and is responsible for over-sight of the sound management of theinstitute’s finances.

How

has IISD changed since itlaunched?

Like all organizations, IISD haschanged significantly since its inception.Perhaps the most important change hasbeen the increasing trend toward projectfunding. The institute launched withundesignated seed funding, and hasmoved toward a project orientation.The original funding model allowed fora broad implementation and explorationof sustainable development, while todaywe increasingly focus our efforts on anumber of specific issues. Another impor-tant change has been our relationshipwith information and communicationstechnology. The Internet was in its infancywhen IISD was born. Today, it is the verysoul of our communications culture andour most important tool for reaching ouraudiences. There are millions of down-loads from our Web sites annually.

What

challenges and opportunities areahead for IISD?

As an organization with a policy solu-tions mandate, we face the ongoingchallenges of encouraging changetowards sustainable development in aworld of flawed mechanisms and incon-sistent signals and incentives. Some peo-ple believe that the World Summit onSustainable Development held last sum-mer in Johannesburg could mark theend of sustainable development sum-mitry. As the urgency grows to addressSD issues, we will need to work increas-ingly at a multilateral level. And, as thefunding environment becomes morecompetitive, we will need to becomeincreasingly innovative. Still, IISD ispoised to make great advances. Ourtechnological competence, our substan-tive expertise, our healthy relationships,our ability to adapt to change and ourunwavering passion stand us in goodstead to define and address the issues,and to continue to contribute positivelyto economic, social and environmentalwell-being around the world.

iisd02/03English 6/19/2003 09:16 AM Page 9

Page 12: ANNUAL REPORT SUSTAINING EXCELLENCE · PDF fileSUSTAINING EXCELLENCE ANNUAL REPORT Our Vision ... IISD is registered as a charitable organization ... The Weekly Journal Review,

I I S D 2 0 0 2 / 0 3 A N N U A L R E P O R T

10

PARTINGPERSPECTIVES

PARTIN

G

PERSPECTIVES

The International Institute forSustainable Development is gov-erned by an international Board ofDirectors. As a group, members setthe strategic vision for the organi-zation and guide its progress.

The June 2003 meeting of theIISD Board in Winnipeg was thelast one for Aban Marker Kabrajiand Dr. Ashok Khosla, whoseterms have come to an end afteryears of energetic service.

Aban Kabraji, who joined theBoard in 1994, is the IUCNRegional Director for Asia inThailand. Dr. Ashok Khosla, anIISD Board member since 1997,is President of the DevelopmentAlternatives Group in India.

In this interview, they sharesome thoughts about IISD andabout sustainable development.

Since joining the IISD Board ofDirectors, what do you consider tobe the institute’s most importantachievements?

Aban Kabraji: IISD has grown from avery young institute wholly dependenton core funding from Canadian gov-ernment sources, to a vibrant, matureand independent organization. Wehave defined clear international nicheswith our work in trade and with theEarth Negotiations Bulletin while main-taining a strong presence in Canada inareas like agriculture and climatechange. Through years of strong lead-ership, we have recruited quality peopleand have become an important playeron the international scene.

Ashok Khosla: Substantively, it hasmade significant contributions duringthis period on several fronts, but I sup-pose I would rate the impact of theinstitute highest in the fields of climatechange and environment-related tradeissues. IISD is also concerned withprocesses at various levels. Externally,it has built up several unusually strongknowledge networks throughout theworld, both in the North and the

South. Through these, it not onlybenefits through the inflow of infor-mation, but also nurtures the capacityof others in areas of mutual interest.Internally, it has been able to build afinancial resource base that is verysolid for a civil society organization.

What do you consider to be IISD’sgreatest strengths?

Aban Kabraji: The institute has kept aclear focus on the fact that we are aglobal institution that links Canada tothe world. A prime example of this isour work with the China Council onInternational Cooperation onEnvironment and Development. Wehave great international strength andcredibility in the areas of climatechange and trade. And we are amongthe leaders in electronic communica-tions, especially with our networks andthe ENB, the jewel in the crown.

Ashok Khosla: Credibility in the fieldsof its expertise, strengthened by a com-mitment to excellence and intellectualrigour—these give IISD considerableconvening power and legitimacynationally and in international fora.

Aban Kabraji and Ashok Khosla

iisd02/03English 6/19/2003 09:16 AM Page 10

Page 13: ANNUAL REPORT SUSTAINING EXCELLENCE · PDF fileSUSTAINING EXCELLENCE ANNUAL REPORT Our Vision ... IISD is registered as a charitable organization ... The Weekly Journal Review,

I I S D 2 0 0 2 / 0 3 A N N U A L R E P O R T

11

What do you consider to be theinstitute’s greatest challenges in thecoming years?

Aban Kabraji: Since September 11,2001, the world is undergoing hugeshifts in international alliances andthought processes. Our challenge inthis milieu is to define what we needto do and where we need to go as aninstitute. We need to adapt to thechanging realities and to remain aheadof the curve intellectually.

Ashok Khosla: The main challenge willbe maintaining the balance betweenfocus—which is needed for achievingresults—and multi-disciplinary capaci-ty, which is needed for achieving theright results.

Are you optimistic about the futureof the sustainable developmentmovement and message?

Aban Kabraji: I am optimistic. Thecause of sustainable development is asvalid today as it ever has been, perhapseven more so. The issue has made itsway into the mainstream. While effect-ing the sort of change we need will betough in the short term and still diffi-cult in the medium term, I’m opti-

mistic that we’ll ultimately get there asmore people take notice of the issues.“No man is an island.” You can ignoredistant wars, environmental disastersand famine as long as you like, butunless something is done, you will even-tually be insecure and go hungry, too.

Ashok Khosla: Two decades havepassed since the concept of sustainabledevelopment was introduced intoeveryday language. Although no onewould claim that the policies of gov-ernments—much less corporations—are yet influenced heavily by it, lead-ers in all sectors today do competequite smartly to show their ownershipof it. Soon, they will have little choicebut to actually take on such ownership,since rapidly growing populations andeconomies are demonstrably incompat-ible with our finite resource base.Water scarcity in many parts of theworld is now an integral part of politi-cal discourse. Personally, I believe thatthe path from a limited debate amongthe cognoscenti to widespread actionamong the public is a matter of notmore than a few decades—not becausehumankind will become wiser butbecause it does have a highly evolvedinstinct for survival.

After years of service on the Board,what will you remember most aboutthe experience?

Aban Kabraji: My fondest memorieswill be of the people with whom I’veserved. By any measure, the IISDBoard and professional leadership havebeen truly outstanding.

Ashok Khosla: Serving on the IISDBoard has been one of the mostrewarding experiences I have hadworking at the policy level with aninternational institution. The qualityof the discussions was extraordinary.They were consistently fuelled byexcellent staff inputs and documenta-tion. These discussions were alwaysmade meaningful by a clear commit-ment on the part of management to beguided by them. And they were car-ried forward by a Board whose mem-bers were clearly dedicated to proac-tive planning without falling into thetrap of micromanaging. It was a greatlearning experience for me and I glad-ly journeyed across the ocean morethan a dozen times to take part in it.

share their thoughts about IISD

A B A N M A R K E R K A B R A J I

“We need to adapt to the changing realities and to remain ahead of the curve intellectually.”

D R . A S H O K K H O S L A

“The main challenge will be maintainingthe balance between focus…and multi-disciplinary capacity.”

iisd02/03English 6/19/2003 09:16 AM Page 11

Page 14: ANNUAL REPORT SUSTAINING EXCELLENCE · PDF fileSUSTAINING EXCELLENCE ANNUAL REPORT Our Vision ... IISD is registered as a charitable organization ... The Weekly Journal Review,

MEASUREMENT ANDINDICATORS

I I S D 2 0 0 2 / 0 3 A N N U A L R E P O R T

12

● IISD and the Consultative Group onSustainable Development Indicators(CGSDI)—an IISD-coordinated teamof international experts—have been further developing the Dashboard ofSustainability over the past year. TheDashboard is an interactive, online toolfor presenting sustainability indicatorsand their aggregate indices. With agrant from the Canadian InternationalDevelopment Agency (CIDA),Environment Canada and several members of the Bellagio Forum forSustainable Development, we’ve addednew functions to the Dashboard, making trend analysis and distance-to-target analysis possible. The Dashboardwas presented at two official events atthe World Summit on SustainableDevelopment in Johannesburg, andnow includes data for over 240 countriesand 60 indicators in the domain of theUnited Nations Commission forSustainable Development core set ofsustainability indicators. TheDashboard’s profile continues to growand governments, businesses and otherscontinue to express interest. Notably,this past year, IISD presented theDashboard to a meeting of TheInternational Iron and Steel Institute,

attended by representatives of 15 majorsteel companies. For more informationon the Dashboard of Sustainability, visithttp://www.iisd.org/cgsdi/intro_dashboard.htm

● IISD has now completed the firstfour of five stages of the Local Agenda21 (LA21) project being conducted withthe pilot Romanian cities of Iasi,Oradea and Ramnicu Valcea. IISD, inpartnership with Canada’s NationalRound Table on the Environment andthe Economy and the InternationalCouncil for Local EnvironmentalInitiatives (ICLEI), and with the finan-cial support of the CanadianInternational Development Agency(CIDA), is working with the govern-ment of Romania, the National Centrefor Sustainable Development inBucharest and with the three participat-ing municipalities to develop capacity inintroducing the LA21 process in thecountry. Training citizens and munici-pal staff to be effective in working withall key stakeholders in communitydevelopment will improve quality oflife, provide employment potential andcontribute to the further developmentof local democracy. Highlights from thelast year include the successful training

sessions delivered by IISD in Romaniaand the commitment of the nationalgovernment to expand the LA21 pro-gram to more municipalities through-out Romania.

● As part of our role with the nextManitoba Sustainable DevelopmentReport, and in addition to specificinputs such as calculating Manitoba’sEcological Footprint (EFP), IISD assistedManitoba Conservation in designing theoverall reporting process and approach.We helped construct the report’s analyticalframework, worked with the depart-ment to create a reporting template andprepared some of the analysis. IISD alsotook the lead in writing some of the sec-tions and we provided comments ondraft analyses prepared by variousprovincial agencies. In order to initiatethe reporting process, IISD andManitoba Conservation delivered atraining session for provincial contribu-tors. As part of our work with ManitobaConservation, our team started to pre-pare the calculations for the EFP inSeptember 2002. A series of sectoral andregional calculations followed.

Achievements and

MEASUREMENT ANDINDICATORS

iisd02/03English 6/19/2003 09:16 AM Page 12

Page 15: ANNUAL REPORT SUSTAINING EXCELLENCE · PDF fileSUSTAINING EXCELLENCE ANNUAL REPORT Our Vision ... IISD is registered as a charitable organization ... The Weekly Journal Review,

I I S D 2 0 0 2 / 0 3 A N N U A L R E P O R T

13

● The United Nations EnvironmentProgramme’s (UNEP) third GlobalEnvironment Outlook report (GEO-3)was launched in May 2002 in London,U.K. As a Collaborating Centre ofUNEP for the GEO initiative, IISDorganized a launch at the institute’shead office in Winnipeg. As GEO-3was coming to an end, our contributionwas increasingly focused on issues relat-ed to evaluating and planning the futureof the GEO reporting system. We tookthe lead in carrying out a Strengths /Weaknesses / Opportunities / Threats(SWOT) analysis of the GEO-3 processfrom the perspective of theCollaborating Centres. In cooperationwith the World Conservation andMonitoring Centre (WCMC) inCambridge, U.K., we also prepared acomparative analysis of global assess-ment and reporting systems, and pre-pared a draft capacity building strategyfor the assessment work of UNEP’sDivision of Early Warning andAssessment (UNEP-DEWA).

● In cooperation with EnvironmentCanada and the U.S.-basedInternational Sustainability IndicatorsNetwork (ISIN), we redesigned thestructure of the Compendium ofSustainability Indicator Initiatives, prob-ably the Internet’s most comprehensivedirectory of sustainability indicator ini-tiatives. We also updated over 100entries in the Compendium in supportof the preparation of Canada’s newNational Environmental Indicators andReporting Strategy, and launched thenew version at ISIN’s Annual Meetingin Toronto in March 2003. Seehttp://www.iisd.org/measure/compendium/

● In March 2003, with the UNEP-Regional Office for Latin America andthe Caribbean (UNEP-ROLAC), wedesigned and conducted a training ses-sion on integrated environmental assess-ment and reporting that will lead to thesmall island state of St. Lucia in theCaribbean producing its first GEO-stylenational reporting on the state of theenvironment. Building on the methodol-ogy of earlier GEO training sessions, thetraining in St. Lucia was modified toproduce outputs directly applicable tothe assessment work that follows. As

another change of the methodology,IISD will continue to advise the govern-ment of St. Lucia throughout the report-ing process until the report is published.

● In cooperation with UNEP/GRID-Geneva and the International Networkof Resource Information Centres—better known as the Balaton Group—IISD organized a two-day workshopin September 2002 focused on vulnera-bility and adaptation to multiple forcesof change—including climate change—in the largest lake in Central Europe,Hungary’s Lake Balaton. This work-shop laid the groundwork for a vulner-ability and adaptation project starting in2003 with UNEP and the Lake BalatonDevelopment Coordination Agency(LBDCA), serving as a pilot underUNEP’s Early Warning Strategy.

● Effective April 1, 2003, Dr. LászlóPintér, who has served with IISD fornine years, became the Director of theMeasurement and Indicators program.Former Director, Dr. Peter Hardi,remains with IISD as a Senior Fellow.

H i g h l i g h t s

The Measurement and Indicators Team provides expertise to designing tools and building capacity for measuring progress towards sustainable development.

The Local Agenda 21 project has had a tremendous impact on community development in Romania.

iisd02/03English 6/19/2003 09:16 AM Page 13

Page 16: ANNUAL REPORT SUSTAINING EXCELLENCE · PDF fileSUSTAINING EXCELLENCE ANNUAL REPORT Our Vision ... IISD is registered as a charitable organization ... The Weekly Journal Review,

I I S D 2 0 0 2 / 0 3 A N N U A L R E P O R T

14

● Our research into effective commu-nications strategies, network operationsand partnership management isstrengthening the performance of ourstrategic objective areas. In the lead-upto the World Summit on SustainableDevelopment (WSSD), we workedclosely with the United NationsDevelopment Programme (UNDP)and Business Action for SustainableDevelopment (BASD) to hold an inter-national e-consultation on partnershipsfor sustainable development. Findingsfrom this dialogue were shared withthe Regional and InternationalNetworking Group (RING), leading to further work on strengthening communications in research partner-ships. We continue to be approachedby organizations and networks aroundthe world for input on how to managecollaborative relationships to fast tracksustainable development.

● As input to the World Summit onSustainable Development (WSSD), theKnowledge Communications (KC)team led an institute-wide review of theworld’s 10 successes and 10 failures inthe decade since the Rio EarthSummit. Our snapshot, entitled TenPlus Ten, noted important, incrementalchanges toward the achievement ofsustainable development, particularlyat local levels. But we also observedthat there are serious shortcomings,reflecting, in many cases, the lack ofpolitical will and the lack of effectiveimplementation strategies to honourcommitments made in Rio. Ten PlusTen served to open debate in theCanadian media, nationally andprovincially, with radio interviews andexcerpts published in the press. TenPlus Ten and an updated SustainableDevelopment Timeline are availableonline at http://www.iisd.org/briefcase/.

Our international review served to posi-tion ourselves to work with the PolicyResearch Initiative of the Government ofCanada. PRI contracted IISD to identifythe leading sustainable developmentpolicy research priorities in Canada.This work continues into 2003.

● In previous years we have focused onthe practical application of information andcommunications technologies (ICTs) tohelp NGOs, in particular from the Southand transitional countries, to communi-cate their knowledge more effectively.This year, we began to look at the broaderissue of how ICTs can support—and alsohinder—the transition to sustainability.Two substantive interventions on thisissue were made in Johannesburg: onethrough a panel session organized by IISDand the Swiss Agency for Developmentand Cooperation; and one through theDigital Opportunities Dialogue organized

Achievements and

KNOWLEDGECOMMUNICATIONS

KNOWLEDGECOMMUNICATIONS

iisd02/03English 6/19/2003 09:16 AM Page 14

Page 17: ANNUAL REPORT SUSTAINING EXCELLENCE · PDF fileSUSTAINING EXCELLENCE ANNUAL REPORT Our Vision ... IISD is registered as a charitable organization ... The Weekly Journal Review,

I I S D 2 0 0 2 / 0 3 A N N U A L R E P O R T

15

by IUCN – The World ConservationUnion. In our follow-up, we receivedsupport from Canada’s InternationalDevelopment Research Centre (IDRC)to bring together a group of younganalysts from the South and transitionalcountries to explore, in greater depth,the connections between the informationsociety and sustainable development.

● IISD continues to demonstrate itscommitment to the next generation ofdecision-makers. Once again, ourYoung Canadian Leaders for aSustainable Future program placed 35young Canadians in partner organizationsaround the world, with the support ofCanada’s Department of ForeignAffairs and International Trade(DFAIT), the Canadian InternationalDevelopment Agency (CIDA) andHuman Resources DevelopmentCanada (HRDC)/Arctic Council. We

celebrated the accomplishments of thisprogram in Johannesburg, hosting areception with about 30 former internsall involved in WSSD activities.

● We link our youth work with ourinterest in the information societythrough Youth Creating DigitalOpportunities (YCDO). In cooperationwith the Global KnowledgePartnership (GKP) andTakingITGlobal (TIG), IISD estab-lished the YCDO Coalition in 2002 as afollow up to previous interventions onBridging the Digital Divide. Thisgrowing group of organizations seeksto realize the potential of young peopleas leaders in using information andcommunications technologies (ICTs) toachieve more sustainable developmentin their communities and around theworld. In 2002–2003, the YCDOCoalition focused its efforts on engag-

ing youth in the preparatory process forthe World Summit on the InformationSociety (WSIS). At the internationallevel, IISD provided strategic and logis-tical support to the WSIS YouthCaucus. Laying the groundwork foreffective grassroots youth ICT-for-development activities, IISD alsorecruited a young woman fromZimbabwe to serve as the GKP YouthFocal Point intern helping youth toconnect with opportunities for mentor-ing, fundraising and recognition.These young people are increasinglyforming a global community of leaderscommitted to using the tools of theinformation society to ensure opportu-nity, empowerment and inclusion for all.To learn more, visit http://ycdo.net/

The Knowledge Communications Team continues to foster goodcommunications practice throughout IISD, helping staff to get theirmessages out to those they most want to inform and engage.

In the past year, IISD has been preparing overviews of global and national advancestowards sustainable development and has been examining the relationship betweenthe emerging “information society” and sustainable development.

H i g h l i g h t s

iisd02/03English 6/19/2003 09:16 AM Page 15

Page 18: ANNUAL REPORT SUSTAINING EXCELLENCE · PDF fileSUSTAINING EXCELLENCE ANNUAL REPORT Our Vision ... IISD is registered as a charitable organization ... The Weekly Journal Review,

CLIMATE CHANGEAND ENERGY

CLIMATE CHANGEAND ENERGY

I I S D 2 0 0 2 / 0 3 A N N U A L R E P O R T

16

A c h i e v e m e n t s a n d H i g h l i g h t s● Following the Canadian PrimeMinister’s decision to ratify the KyotoProtocol, IISD has been an active par-ticipant in the implementation process.Working with the federal government,a number of provinces, industry andother stakeholders, IISD promotes theapplication of Kyoto in a way that meetsenvironmental objectives while movingour economy fairly and effectively forwardin anticipation of a hydrogen-basedfuture.

● IISD’s profile has grown significantlywithin the international scientific com-munity, particularly relating to issues of development, mitigation andadaptation. IISD has been participatingin a number of collaborative projectswith research institutes around theworld to demonstrate why a “devel-opment first” approach makes the mostsense in effectively addressing climatechange. The institute has also beenasked to participate in experts’ meetingsof the Intergovernmental Panel onClimate Change (IPCC), looking atissues related to climate change and sus-tainable development and the adapta-tion-mitigation nexus.

● The Climate Change and EnergyTeam at IISD continues to work on a

number of significant projects sup-ported by external aid agencies, notablythe Canadian InternationalDevelopment Agency (CIDA) and theU.S. Agency for InternationalDevelopment (USAID). Work includes:

● identifying the potential of the Clean Development Mechanism in helping to reduce emissions in the transportation sector in Chile;

● analyzing the impacts of climate change and globalization on the agricultural sector in India;

● exploring the connection between decentralized renewable energy, the Clean Development Mechanismand sustainable development;

● enhancing the capacity of developingcountry partners in the Climate Change Knowledge Network (http://www.cckn.net) to engage in effective research and outreach on climate change and its relevance fordeveloping countries; and

● helping developing countries express and share their perspectives on climate change issues.

● Our projects are being completedin partnership with about 30 otherresearch institutes, most of them indeveloping countries.

● IISD has also been strengtheningits contributions in the area of climatechange vulnerability and adaptation.Activities include:

● acting as a network coordinator on health-related socio-economic impacts of climate change;

● analyzing the effectiveness of using conservation and disaster preparedness strategies in helping particularly vulnerable communitiesadapt to climate vulnerability and climate change; and

● working with Manitoba Hydro to begin understanding the hydrologicalimpacts on their hydro system capacity.

● Finally, IISD has expanded itsinfluence in regions across Canada,including the Yukon, the NorthwestTerritories, British Columbia,Alberta, Manitoba, Ontario, Quebecand Prince Edward Island.

IISD’s Climate Change and Energy Team continues to berecognized as a constructive and influential voice in theclimate change debate in Canada and around the world.

IISD aims to develop and promote creative responses to climate change and its impacts.

iisd02/03English 6/19/2003 09:16 AM Page 16

Page 19: ANNUAL REPORT SUSTAINING EXCELLENCE · PDF fileSUSTAINING EXCELLENCE ANNUAL REPORT Our Vision ... IISD is registered as a charitable organization ... The Weekly Journal Review,

I I S D 2 0 0 2 / 0 3 A N N U A L R E P O R T

17

ECONOMICPOLICY

ECONOMIC POLICY

IISD’s Economic Policy Team continues to examine the relationshipbetween poverty and the environment, and the impact of subsidies.

The five-year TERI-Canada Energy Efficiency Project drawsto a close with numerous useful outputs and learnings.

● IISD continues to be recognized forour contribution to the dialogue on therelationship between poverty and theenvironment. In February 2003, the 22ndGoverning Council of the United NationsEnvironment Programme endorsed thepoverty-environment conceptual frame-work developed by IISD. The GoverningCouncil also adopted a work plan to oper-ationalize the framework in Africa overthe next three years. IISD expects toprovide advice and play a leading role incoordinating the related network and indeveloping country studies.

● IISD’s work on poverty and the envi-ronment is based on the writings andteachings of Nobel Laureate Amartya Sen,author of the acclaimed publication,Development as Freedom. In cooperationwith the Mazingira Institute in Kenya,IISD released There is a Better Way, acomic book based on Sen’s work. Thecomic book, which has been well-receivedin Africa, conveys Sen’s thoughts in every-day language for the benefit of all. IISDalso published two issues of Nexus, anewsletter exploring the linkages betweenpoverty and the environment.

● Economic Policy Director, Dr.Anantha Duraiappah, made a substantialcontribution to the MillenniumEcosystem Assessment, co-writing achapter called “Lessons Learned:Consequences for ecosystems, humanwell-being and poverty reduction.” Theassessment addresses the relationshipbetween ecosystems and human well-being. More information is available athttp://www.millenniumassessment.org

● The five-year TERI-Canada EnergyEfficiency Project was carried to nearcompletion. This was a multi-million dol-lar project funded by the CanadianInternational Development Agency, andrun in partnership with The Energy andResources Institute (TERI), based in India.The majority of IISD’s work this past yearfocused on Green Budget Reform, identi-fying budgetary instruments and develop-ing analytical tools to examine the sustain-ability implications of energy sector devel-opment. These aims were achievedthrough four separate initiatives:

1. Identifying green budget opportuni-ties in TERI’s annual budget recom-mendation to the government of India. 2. By recognizing that people with lowerincomes allocate a larger share of theirbudgets to energy than people withhigher incomes, the MARKAL-Equitycompensation initiative produced threepapers documenting economic model-ling efforts to study the impacts of cli-mate change mitigation scenarios onlower income groups and the design ofcompensation packages to minimize theadverse impacts on households. 3. To bridge the gap among policy-mak-ers, society and the economic, social andenvironmental systems in which we live,The Framework for EnergySustainability Assessment initiative pro-duced the Energy Sustainability Gauge,an interactive, Web-based tool linkingthe analysis of salient indicators of sus-tainable energy development with theimplementation status of the mix of policy

instruments affecting the indicators. Thegauge, which has been applied in Indiaand Canada, will be made available tothe public and interested policy commu-nity by 2004. 4. IISD developed and applied amethodology for estimating the full costsof thermal power production in Canada.Full-cost accounting, as it is commonlyknown, makes explicit the magnitude ofdirect environmental costs borne by soci-ety from thermal power generation,thereby promoting power sector invest-ment decisions that are indeed least cost.

● Work began on the Van LennepSubsidies Initiative, a project encompassingthe talents of our Economic Policy Teamand our Trade and Investment Team.Named after the late Emile van Lennep,a distinguished Dutch economist, theproject aims to establish a process toresolve subsidy-related differencesbetween developed and developingcountries in a constructive, transparentand equitable manner; to defuse thepresent antagonistic and suspicious attitudestowards the World Trade Organizationon the issue of subsidies; to build researchcapacity to identify trade-related subsidyissues; and to develop policy approaches toaddress these priorities.

A c h i e v e m e n t s a n d H i g h l i g h t s

iisd02/03English 6/19/2003 09:16 AM Page 17

Page 20: ANNUAL REPORT SUSTAINING EXCELLENCE · PDF fileSUSTAINING EXCELLENCE ANNUAL REPORT Our Vision ... IISD is registered as a charitable organization ... The Weekly Journal Review,

TRADE ANDINVESTMENT

I I S D 2 0 0 2 / 0 3 A N N U A L R E P O R T

18

Achievements and● When international negotiations on aMultilateral Agreement on Investment(MAI) were derailed in 1997, manythought that the dangers of rampant liber-alization had been put to rest for a longwhile. Not so. Based on experience withthe North American Free TradeAgreement (NAFTA), IISD began to takea close look at cases of arbitration underthe rapidly-spreading Bilateral InvestmentTreaties (BITs). We found evidence thatNGO fears about what the MAI would doto social and environmental regulationwere being realized under the 2000 bilater-al investment treaties. To make thingsworse, crucial matters of public policywere being decided behind tightly-sealeddoors in international business arbitrationforums, far from public scrutiny. Indeed,some of these forums are so opaque that itis not possible to find out what cases havebeen brought, and who the contestants are.IISD has now made the BITS a centralpillar of its work on investment. With ourclose scrutiny of the BITs, we hope tochange the world of private investment.

● For years, those promoting environ-ment in the multilateral trading systemsuffered the frustration of seeing the devel-oping countries roundly reject their agen-da. For the South, the push for the envi-ronment felt like an attempt to replacewith green barriers the tariffs and quotaseliminated through successive rounds oftrade negotiations. Legitimate environ-mental priorities were inevitably perceivedas rich-country interests, being imposed oncountries that had other priorities. ForIISD, this was a troubling situation, know-ing as we do the urgency of environmentalmatters in developing countries, many ofthem affected by trade liberalization. Wedecided to pioneer a new approach.Working with the developing country del-egations to the World Trade Organization(WTO)—and with research partners inthe South—we are trying to craft an agen-da that reflects developing country envi-ronmental priorities in the trade context.This “Southern Agenda on Trade andEnvironment” project will allow a bal-anced agenda to be crafted and, we hope,enable real progress on the environment tobe achieved in the WTO.

● What is happening in the Doha Roundof multilateral trade talks at the WTO?The answer is either simple—orimmensely complicated. The negotiations,which began in early 2002, are spreadacross 17 negotiating groups with theWTO General Council acting as a TradeNegotiation Committee. Many items arereviewed and negotiated in more than onegroup. Discussions are closed to outsiders(especially to public interest NGOs). Whilebits and pieces of news filter out, it is veryhard to unscramble them from the generalbackground noise of the WTO beehive.IISD has tried to help. We have co-pro-duced, with the International Centre forTrade and Sustainable Development, theDoha Round Briefing Series, whichreviews what has happened in each of thenegotiating groups in 2002. Seehttp://www.iisd.org/trade/wto/doha_briefing.asp

TRADE AND INVESTMENT

iisd02/03English 6/19/2003 09:16 AM Page 18

Page 21: ANNUAL REPORT SUSTAINING EXCELLENCE · PDF fileSUSTAINING EXCELLENCE ANNUAL REPORT Our Vision ... IISD is registered as a charitable organization ... The Weekly Journal Review,

I I S D 2 0 0 2 / 0 3 A N N U A L R E P O R T

19

H i g h l i g h t s

The IISD Trade and Investment Team has helped to build the capacity of our partners and hassimplified some of the complex information emanating from international negotiations.

IISD endeavours to advocate and influence the design of trade and investmentpolicies that advance sustainable development.

● The Soviet Union was not a free-trader,and was never welcomed into the free-trade club of the General Agreement onTariffs and Trade (GATT). As the ColdWar ended, all 15 former Soviet republicsstarted to look more closely at trade issues.About half are now card-carrying mem-bers of the WTO, and the rest are in thewaiting room. This represents a majorchange in a short period of time. Whatdoes the change mean for sustainabledevelopment? The answer is unknown,but IISD is trying to help. We have initiat-ed a program to help eight former Sovietrepublics prepare for—or adapt to—WTO membership without sacrificingsustainable development in the process.We have produced a wide range of mate-rials in the Russian language, including thehighly-regarded IISD-UNEP handbookon Environment and Trade.

● Thanks in part to IISD’s efforts, theWTO is becoming more open and accessi-ble. We have been engaging the tradecommunity on its own terms and the

effort is paying off. IISD was the firstNGO ever to have one of its statementsoffered on the main page of WTO’s Website. We have been chosen as one of only13 international NGOs to serve on thenewly-established NGO AdvisoryCommittee. And we are the first NGOasked to participate in teaching the regularcourse offered by the WTO to trade policyofficials from developing countries. If ouraim is to influence, this inside track willstand us in good stead.

● In collaboration with FundaciónFuturo LatinoAmericano, the EcuadorianCentre for Environmental Law and oth-ers, IISD hosted trade and environmentworkshops in Quito, Ecuador, parallel tothe Free Trade Area of the AmericasMinisterial Meeting in the fall of 2002. Thethree-day event generated civil society pro-posals on intellectual property rights andbiodiversity; investment law and policy;civil society participation mechanisms; andsustainability assessment in the FTAA.The meetings culminated in the presenta-

tion of a report to the assembled 34 minis-ters before the FTAA Ministerial. Severalworkshop proposals appeared in theMinisterial Declaration.

● The second phase of the TradeKnowledge Network (TKN) kicked intohigh gear this past year. The TKN, whichincludes eight international partners and isco-managed by IISD and the InternationalCentre for Trade and SustainableDevelopment, relaunched its Web site athttp://www.tradeknowledgenetwork.net,conducted numerous workshops and pro-duced important research on the relation-ship between trade and sustainable devel-opment. The goal of the TKN is to fosterlong-term capacity to address the complexissues of trade and sustainable developmentin partner-country research institutions,governments and the wider policy com-munity, including business, academia, andenvironment and development NGOs.

iisd02/03English 6/19/2003 09:16 AM Page 19

Page 22: ANNUAL REPORT SUSTAINING EXCELLENCE · PDF fileSUSTAINING EXCELLENCE ANNUAL REPORT Our Vision ... IISD is registered as a charitable organization ... The Weekly Journal Review,

I I S D 2 0 0 2 / 0 3 A N N U A L R E P O R T

20

● IISD Reporting Services providedcomprehensive real-time coverage ofthe final two meetings of thePreparatory Committee and theJohannesburg World Summit onSustainable Development with dailyEarth Negotiations Bulletin reports,online coverage and analyses.

● In collaboration with the UnitedNations Development Programme(UNDP), IISD Reporting Servicespublished ENB on the Side, reportingon the outcomes of side events atmeetings leading up to, and including,the World Summit in South Africa.

● During the 2002–2003 year, IISDReporting Services launched a newHTML-enabled e-mail newsletter,Linkages Update, with reports onrecent and upcoming events in thesustainable development policycommunity. This new publication,which is essentially an e-mail versionof a Web page with links back to IISD’sLinkages Web site, now reaches an esti-mated worldwide readership of 30,000.

● IISD published the EarthNegotiations Bulletin at more than 30United Nations meetings with fundingfrom the governments of Canada, theU.K., the Netherlands, the UnitedStates, Switzerland, Denmark,

Germany, Norway, Sweden, Iceland,New Zealand, Australia, Austria,Belgium, Spain, Taiwan, France, theEuropean Commission and UNEP.

● IISD Reporting Services was hiredby governments and organizations toprovide reporting services for meetingson policy issues such as water, forests,sustainable energy, climate changeand biodiversity.

REPORTINGSERVICES

The IISD Reporting Services Team includes more than50 people, representing almost 30 different countries.

With the Earth Negotiations Bulletin, IISD contributes to the transparency and accessibility of internationalnegotiations on environment and sustainable development.

A c h i e v e m e n t s a n d H i g h l i g h t s

IISD Reporting Services Linkages Web Sitehttp://www.iisd.ca

REPORTING SERVICES

iisd02/03English 6/19/2003 09:17 AM Page 20

Page 23: ANNUAL REPORT SUSTAINING EXCELLENCE · PDF fileSUSTAINING EXCELLENCE ANNUAL REPORT Our Vision ... IISD is registered as a charitable organization ... The Weekly Journal Review,

I I S D 2 0 0 2 / 0 3 A N N U A L R E P O R T

21

The IISD team has helped bring the relationship between security and the environment intofocus and has worked with stakeholders in the mining and minerals industry to persuade theindustry to integrate sustainable development issues into their business plans.

IISD is actively pursuing expansion of the Natural Resources Management strategicobjective area, which is currently functioning without a director. A process to assessour prospects and resource requirements began at the end of the fiscal year.

● This past year saw a remarkableactivity level for IISD in the mining andminerals sector. In particular, this periodsaw the culmination of the Mining,Minerals and Sustainable Development– North America (MMSD-NA) project.MMSD-NA was the independentNorth American component of a globalreview of mining practices led by theInternational Institute for Environmentand Development (London). The proj-ect aimed to develop industry prescrip-tions for ensuring the compatibility ofmining activities with the broad societalshift to sustainable development. Thefindings and recommendations of theglobal project were reported at theGlobal Mining Initiative Conferenceheld in Toronto in May 2002 with theresults further presented inJohannesburg, South Africa, at theWorld Summit on SustainableDevelopment (WSSD) in August-September. MMSD-NA, which was ledby IISD in partnership with the MiningLife Cycle Centre, University ofNevada, Reno, released its final reportto the Mines Ministers of CanadaAnnual Meeting in September 2002. Theresults of MMSD-NA’s work have subse-quently been described at a number ofconferences and symposia. MMSD-

NA involved the participation of about150 individuals drawn from a widerange of interests across North America.

● This was a year of maturation forIISD’s work on environment andsecurity, even as security issues were atthe top of the international politicalagenda. Building on the initial workof our expert task force, IISD staffmembers took part in—or led—severalmajor initiatives, including: ● contributing to the United Nations

Global Compact “Conflict Impact Assessment Guidelines for Companies”;

● serving as the secretariat for a multi-agency environment and security initiative launched by several UN agencies and the Organization for Security and Cooperation in Europe to address concerns in the former Yugoslavia and the Central Asian states;

● acting as an advisor to the United Nations Environment Programme’s Post-Conflict Assessment Unit’s missions to Afghanistan, Iraq and theOccupied Territories of Palestine; and

● participating in an Organization for Economic Cooperation and Development working group on environment and conflict.

● Conserving the Peace, the IISD/IUCNbook on resources, livelihoods and security,is becoming a popular resource in thefield, and is currently used in courses atthe University of Toronto, theUniversity of Ottawa and the Universityof California-Irvine, among others. Thebook contains a number of case studiesand many recommendations about howeffective conservation practices cancontribute to improved security andlivelihoods at the community level.

● Arthur Hanson, IISD DistinguishedFellow and Senior Scientist, continuesto serve as one of two MinisterialOceans Ambassadors in Canada, focus-ing on Canada’s Oceans Act. Dr.Hanson also chaired the TechnicalAdvisory Committee for the EquatorInitiative, culminating in awards pre-sented by the United Nations at theWSSD, recognizing tropical communitiessuccessful in reducing poverty throughthe conservation and sustainable use ofbiodiversity. He also spent a consider-able portion of his time during the pastyear as Lead Expert with the ChinaCouncil for International Cooperation onEnvironment and Development, helpingto set new directions on policy advice.

A c h i e v e m e n t s a n d H i g h l i g h t s

NATURAL RESOURCESMANAGEMENT

iisd02/03English 6/19/2003 09:17 AM Page 21

Page 24: ANNUAL REPORT SUSTAINING EXCELLENCE · PDF fileSUSTAINING EXCELLENCE ANNUAL REPORT Our Vision ... IISD is registered as a charitable organization ... The Weekly Journal Review,

I I S D 2 0 0 2 / 0 3 A N N U A L R E P O R T

22

TH

EIISD

TEA

M

Mylene ArabitRod AranedaStephan BargTrineesh Mohan BiswasJodi BrowneJennifer BryantCarolee BucklerChad CarpenterJennifer CastledenAnna ChugunovaHeather CreechDennis CunninghamShawna CurtisJohn DrexhageAnantha DuraiappahLael DyckCristina EspositoKyle FargeyJanice GairBill GlanvilleVirginia GonzalesLangston James Goree VI “Kimo”

Karen GouldingDarlene GregoireChantal GuertinDebbie Xiaolin GuoMark HalleAnne HammillArthur HansonPeter HardiPat HardyPeter HughesKristen HildebrandJennifer HirschfeldRobert JonesFabienne Kalifat Turner

Darryl KutzanDeborah LehmannJason MackiJason ManaigreClarita Martinet-FayStacy MatwickCatherine MuirPrisna NuengsigkapianJo-Ellen ParryAlison PatmoreJacqueline PilonLászló PintérPumulo RoddyMarcelo RojoMarlene RoyDavid RunnallsDarlene SanchezMalena SellJennifer SenenkoIan SeymourStuart SlayenDarren SwansonJason SwitzerHenry VenemaShannon WentzTerri WillardMichelle WowchukWanhua YangJennifer Zelmer

AssociatesGraham AshfordWarren BellDavid BoyerPamela ChasekAaron CosbeyPeter Dickey

Tony HodgeVictoria KellettHoward MannLuke PetersonTom RotherhamMarie-Claire SeggerIan ThomsonSteven WinkelmanChristopher Zegras

Senior FellowsKeith BezansonOla UllstenKonrad von Moltke

ENB WritersKaren Alvarenga de Oliveira

Jacob Andersen Changbo Bai Andrew BaldwinTonya Barnes Nienke Beintema Emily Boyd Robynne Boyd Stanley BurgielPamela ChasekAngela Churie Elisabeth CorellDeborah DavenportFrancis Dejon Joanna DepledgeRado DimitrovPeter DoranSocorro Estrada David Fernau Brandy Filtzer

Mongi Gadhoum John Gagain, Jr.Catherine Ganzleben Langston James Goree VI “Kimo”

Jonathon Hanks Tamilla Held Laura Ivers Holly Kaufman Pia M. Kohler Fiona Koza Michael Lisowski Dagmar Lohan Leila Mead Gerhard Mulder Wagaki Mwangi Diego Noguera Prisna Nuengsigkapian Leslie Christine PaasTeya Penniman Lavanya RajamaniMarcela Rojo Yaël Ronen Charlotte Salpin Nicole Schabus Lisa Schipper Mark Schulman Richard Sherman Malena Sell Silke Speier Chris Spence Jason Switzer Elsa Tsioumani Andrey VavilovLynn Wagner Hugh Wilkins

Interns Maja AndjelkovicEenjin BatsurenTrineesh Mohan BiswasLaura BogomolnyDena CatorXavier CattarinichDaniel CohnTricia ColagiovanniKarl CoxNicole DobinsonElisabeth GilmoreJordan GoldKeith GordonGwen HealeyJared HuberJames KeirsteadGlenda KohGlenna LeeGillian MoranDavid PiechotaSarah RobinEdan RotenbergErin RussellTodd SchenkChristine ShortErin SilsbeKarin SimonsonBrad SmithScott StewartCarrie TaylorRebecca WardleJennifer WestMatt Woods

Members of the International Institute for SustainableDevelopment team reflect a diversity of backgrounds,talents and interests. The following people servedwith IISD during the 2002-2003 fiscal year.

THE IISD TEAM

iisd02/03English 6/19/2003 09:17 AM Page 22

Page 25: ANNUAL REPORT SUSTAINING EXCELLENCE · PDF fileSUSTAINING EXCELLENCE ANNUAL REPORT Our Vision ... IISD is registered as a charitable organization ... The Weekly Journal Review,

I I S D 2 0 0 2 / 0 3 A N N U A L R E P O R T

23

1 9 9 8 - 2 0 0 3 I I S D F i n a n c i n g Tr e n d

To the Members ofInternational Institute for Sustainable Development

We have audited the consolidated statement of financial position of the International Institute forSustainable Development as at March 31, 2003 and the consolidated statements of operations,changes in net assets and cash flows for the year then ended.These financial statements are theresponsibility of the Institute’s management. Our responsibility is to express an opinion on thesefinancial statements based on our audit.

We conducted our audit in accordance with Canadian generally accepted auditing standards.Thosestandards require that we plan and perform an audit to obtain reasonable assurance whether thefinancial statements are free of material misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements.An audit also includesassessing the accounting principles used and significant estimates made by management, as well asevaluating the overall financial statement presentation.

In our opinion, these consolidated financial statements present fairly, in all material respects, the financialposition of the Institute as at March 31, 2003 and the results of its operations and the cash flowsfor the year then ended in accordance with Canadian generally accepted accounting principles.

Chartered AccountantsWinnipeg, ManitobaMay 7, 2003

AUDITORS’ REPORT

OPERATING GRANTS

DESIGNATED GRANTS AND OTHER REVENUE

TOTAL EXPENDITURES

0

2

4

6

8

10

12

$ MILLIONS

1998

1999

2000

2001

2002

7.02

8.08

9.33 9.6610.72

3.032.12 2.26

3.03

14

11.32

2.16

2003

3.03

Fiscal years ended March 31

iisd02/03English 6/19/2003 09:17 AM Page 23

Page 26: ANNUAL REPORT SUSTAINING EXCELLENCE · PDF fileSUSTAINING EXCELLENCE ANNUAL REPORT Our Vision ... IISD is registered as a charitable organization ... The Weekly Journal Review,

I I S D 2 0 0 2 / 0 3 A N N U A L R E P O R T

24

C O N S O L I DAT E D S TAT E M E N T O F F I N A N C I A L P O S I T I O NMarch 31, 2003

2003 2002

ASSETS CURRENT

Cash $ 1,309,524 $ 1,293,208 Marketable securities 5,855,308 5,491,789 Accounts receivable 6,390,612 6,644,663 Prepaid expenses and deposits 160,733 119,934

13,716,177 13,549,594

CAPITAL ASSETS 240,749 283,288

$13,956,926 $13,832,882

LIABILITIES CURRENT

Accounts payable and accrued liabilities $ 1,412,338 $ 1,108,924 Deferred revenue 5,866,580 5,749,768

7,278,918 6,858,692

NET ASSETS Net assets invested in capital assets 240,749 283,288 Reserve for program development 3,808,618 3,835,165 Reserve for long-term development 1,462,490 1,616,471 Unrestricted net operating assets 1,166,151 1,239,266

6,678,008 6,974,190

$13,956,926 $13,832,882

iisd02/03English 6/19/2003 09:17 AM Page 24

Page 27: ANNUAL REPORT SUSTAINING EXCELLENCE · PDF fileSUSTAINING EXCELLENCE ANNUAL REPORT Our Vision ... IISD is registered as a charitable organization ... The Weekly Journal Review,

I I S D 2 0 0 2 / 0 3 A N N U A L R E P O R T

25

C O N S O L I DAT E D S TAT E M E N T O F O P E R AT I O N SFor the year ended March 31, 2003

2003 2002

REVENUE Designated grants $ 8,331,750 $ 7,694,117 Operating grants 2,162,556 2,259,958 Interest 263,622 283,026 Other revenue 261,429 153,853

TOTAL REVENUE 11,019,357 10,390,954

EXPENSESProjects

Reporting Services 2,652,806 2,472,707 Trade and Investment 2,374,372 1,639,464 Climate Change and Energy 1,400,921 1,166,182 Knowledge Communications 1,067,401 1,124,075 Economic Policy 981,516 1,185,634 Natural Resources Management 821,112 1,255,132 Measurement and Indicators 619,295 536,802 New Project Development 41,723 63,860

9,959,146 9,443,856

Administration 736,062 593,267 Fund Development and Outreach 417,898 547,384 Board 202,433 138,191

TOTAL EXPENSES 11,315,539 10,722,698

EXCESS OF EXPENSES OVER REVENUE (296,182) (331,744)

APPROPRIATION FROM NET ASSETS Net assets invested in capital assets 42,539 19,455 Reserve for program development 26,547 34,933 Reserve for long-term development 153,981 258,299

DECREASE IN NET OPERATING ASSETS (73,115) (19,057)

NET OPERATING ASSETS, BEGINNING OF YEAR 1,239,266 1,258,323

NET OPERATING ASSETS, END OF YEAR $ 1,166,151 $ 1,239,266

iisd02/03English 6/19/2003 09:17 AM Page 25

Page 28: ANNUAL REPORT SUSTAINING EXCELLENCE · PDF fileSUSTAINING EXCELLENCE ANNUAL REPORT Our Vision ... IISD is registered as a charitable organization ... The Weekly Journal Review,

I I S D 2 0 0 2 / 0 3 A N N U A L R E P O R T

26

DESIGNATED GRANTS IISD receives funding from a variety of public and private sources to finance specific projectsrelating to its strategic objectives. Projects may carry on over more than one year. The related designated grants are recordedwhen the funding commitment is made and recognized in revenue as the projects progress. A comparative summary ofdesignated grant funding committed during the year is as follows:

Funding Commitments2003 2002

($000’s) ($000’s)

Governments and agenciesCanada $ 3,361 $ 2,385International 3,347 2,634

6,708 5,019

United Nations agencies 471 530International organizations 923 640Philanthropic foundations 224 58Private sector and other 405 421

$ 8,731 $ 6,668

Designated grants and other revenue which includes publication sales and cost recoveries are summarized by activity areaas follows:

Other DesignatedActivity Area Revenue Grants Total

($000’s) ($000’s) ($000’s)

Reporting Services $ – $ 2,681 $ 2,681Trade and Investment 61 2,010 2,071Climate Change and Energy 66 1,078 1,144Knowledge Communications 5 782 787Economic Policy 16 752 768Natural Resources Management 68 688 756Measurement and Indicators 33 314 347Administration, Fund Development

and Outreach 12 12 24New Project Development – 15 15

$ 261 $ 8,332 $ 8,593

OPERATING GRANTS IISD has entered into renewed funding arrangements with the Government of Canada(Environment Canada and the Canadian International Development Agency (CIDA)). The arrangement with CIDAprovides operating grants for the five year period April 1, 2000 to March 31, 2005. Environment Canada renews its contri-bution annually. IISD also entered into a renewed five-year funding agreement with the Government of Manitoba whichcovers the period from April 2001 to March 31, 2006. It includes a core operating grant component aggregating $4,583,600plus specific project funding of up to an additional $1,145,900 over the period.

A summary of the funding is as follows:Funding

Funding Funding Recorded CommitmentCommitment 2003 Prior years Remaining

($000’s) ($000’s) ($000’s) ($000’s)

Government of CanadaCanadian International

Development Agency $ 5,000 $1,000 $2,000 $2,000Environment Canada 1,000 200 400 400

Government of Manitoba 4,584 963 1,060 2,561

Operating grant revenue$10,584 $2,163 $3,460 $4,961

N O T E O N F U N D I N G A R R A N G E M E N T S

iisd02/03English 6/19/2003 09:17 AM Page 26

Page 29: ANNUAL REPORT SUSTAINING EXCELLENCE · PDF fileSUSTAINING EXCELLENCE ANNUAL REPORT Our Vision ... IISD is registered as a charitable organization ... The Weekly Journal Review,

Governments and Agencies,Canada 40%

United Nations Agencies 6%

International Organizations 8%

Governments and Agencies,International 38%

Philanthropic Foundations 5%

Private Sector and Other 3%

I I S D 2 0 0 2 / 0 3 A N N U A L R E P O R T

27

Measurement and Indicators 6%

Climate Change and Energy 12%

Economic Policy 9%

Knowledge Communications 9% Natural Resources Management 7%

ReportingServices 23%

Trade and Investment 21%

New Project Development,Fund Development and Outreach,Administration, and Board 13%

2002 - 2003REVENUE AND EXPENSESBY ACTIVITY AREA

Total expenses of $11,315,539

SCHEDULE 1 - SCHEDULE OF OPERATIONS BY ACTIVITY AREA ($000’s) For the Year Ended March 31, 2003

DESIGNATED GRANTS AND OTHER REVENUE

OPERATING GRANTS

2002 - 2003DESIGNATED GRANTREVENUE BY DONOR

Total designed grant revenue of $8,331,750

Financed by:

FundTrade Climate Natural Measurement New Development

Reporting and Change Knowledge Economic Resources and Project and 2003 2002Services Investment and Energy Communications Policy Management Indicators Development Administration Outreach Board Total Total

Revenue $ 2,681 $2,071 $1,144 $ 787 $ 768 $ 756 $ 347 $ 15 $ 22 $ 2 $ – $8,593 $ 7,848 Personnel 402 1,107 685 403 421 546 368 24 601 253 – 4,810 4,221 Consulting 988 615 337 438 332 68 67 12 1 18 – 2,876 2,951 Travel 975 263 199 125 115 97 86 6 30 31 – 1,927 1,896 Rent 61 81 37 25 25 25 22 – 35 16 – 327 316Supplies and other 55 82 34 20 14 22 27 – 29 26 – 309 288 Publishing 43 56 25 12 11 37 20 – 1 34 – 239 234 Amortization ofcapital assets 50 29 16 10 18 10 8 – 13 16 – 170 226 Meetings 4 92 14 13 18 2 3 – 1 12 – 159 209 Telecommunications 75 43 47 15 22 10 14 – 17 6 – 249 187 Board – – – – – – – – – – 202 202 138 Research materials – 6 7 6 6 4 5 – 8 6 – 48 57

Total expenses 2,653 2,374 1,401 1,067 982 821 620 42 736 418 202 11,316 10,723

Excess of expenses overdesignated grants and other revenue $ 28 $ (303) $ (257) $(280) $(214) $ (65) $ (273) $ (27) $ (714) $ (416) $(202) $ (2,723) $ (2,875)

Excess of expenses over designated grants and other revenue funded by: Operating grants 2,163 2,260 Interest 264 283Excess of expenses over revenue $ (296) $ (332)

iisd02/03English 6/19/2003 09:17 AM Page 27

Page 30: ANNUAL REPORT SUSTAINING EXCELLENCE · PDF fileSUSTAINING EXCELLENCE ANNUAL REPORT Our Vision ... IISD is registered as a charitable organization ... The Weekly Journal Review,

I I S D 2 0 0 2 / 0 3 A N N U A L R E P O R T

28

Government of Canada (and Agencies)Canadian International Development

Agency (CIDA) $1,406 International Development Research

Centre (IDRC) 650 Department of Foreign Affairs and

International Trade 527 China Council for International Cooperation

on Environment and Development (CIDA) 283 Human Resources Development Canada 81Environment Canada 78 Indian & Northern Affairs 24 Health Canada 23 Natural Resources Canada 20 National Round Table on Environment

and Economy 19 Industry Canada 17 Department of Fisheries and Oceans 5 Other 3

3,136 Governments of provinces

Manitoba 203 Other 22

225 Governments of other nations

Switzerland 1,189 United Kingdom 809 Denmark 320 Norway 300 European Commission 147 France 143 Japan 112 Spain 83 Australia 65 Austria 57 China 56 Finland 39 Other 27

3,347 United Nations agencies

United Nations Office for Project Services (UNOPS) 144

United Nations Development Programme (UNDP) 93

United Nations Environment Programme (UNEP) 90

United Nations Food and Agriculture Organization (FAO) 77

United Nations Framework Convention on Climate Change (UNFCCC) 54

United Nations Industrial Development Organization (UNIDO) 13

471

International organizationsEarth Council 452 International Tropical Timber Organization 94 The World Conservation Union (IUCN) 84 Secretariat of the 3rd World Water Form 78 World Bank 78 Royal Institute for International Affairs (RIIA) 47 The AVINA Group 32 Commission for Environmental Cooperation (CEC) 25 Nautilus Institute for Security and

Sustainable Development 19 International Institute for Environment

and Development (IIED) 10 World Wide Fund for Nature (WWF) 4

923 Philanthropic foundations

Mott Foundation 112 Winslow Foundation 77 Loewen Foundation 21 Winnipeg Foundation 10 Rockefeller Foundation 4

224 Private sector and other

University of Rhode Island 70 Manitoba Hydro 60 Climate Change Central 50 Institute of Economic Growth 23 INAB 21 Crea Consulting 18 McCarthy Tetrault 16 Bechtel Corporation 16 Golder Associates 16 Secretariat of the Basel Convention 16 Tan Range Exploration Corporation 16 World Business Council for Sustainable Development 15 Business Action for Sustainable Development 14 Centre for Global Dialogue 12 GKP Secretariat 9 Trans Canada Pipelines 6 North American Metals 5 Friedrich - Ebert Stiftung 4 United Way of Winnipeg 4 York University (Sustainable Enterprise Academy) 4 Consensus Building Institute 3 ESG International 3 Canada Life Securities 2 Institute of Global Environment 1 Shell Canada 1

405

$ 8,731

SCHEDULE 2 - SCHEDULE OF DESIGNATED GRANTS COMMITTED ($000’s)

For the Year Ended March 31, 2003

iisd02/03English 6/19/2003 09:17 AM Page 28