Performance Report on Sustainable Development April 1, 2009 to March 31, 2010

3.0 Sustainable Development Strategy Results

This section highlights the results of our interventions to reduce our impact on the natural environment, enhance our services to Canadians, and to modernize our internal systems to support balanced decision-making. It details progress made against commitments outlined in the CRA SD National Action Plan, and the supporting Environmental Management Programs (EMPs). Appendix B provides details on performance against activities and targets in SD National Action Plan.

3.1 Goal 1: Reduce the effects of our operations on land, air and water

The targets and activities that support Goal 1 seek to reduce the environmental impacts of the Agency's operations. Key areas of focus include solid waste management, green procurement, paper reduction, emission reduction, energy conservation and managing hazardous substances. We exceeded three of the six targets and made appreciable progress towards the remaining targets. The details are as follows:

Solid Waste
To reduce the amount of solid waste that is sent to landfill from CRA facilities, we expanded and improved the No Waste recycling program in 47 CRA facilities[Footnote 1] over the last three years. With the program now operating in 97 of 135 CRA facilities, about 90% of CRA employees now have access to the program - thereby exceeding our target of 75%. The Agency also conducted waste audits in 15 selected facilities across the country. The results showed that on average, the CRA diverted 84% of its office waste from landfills - again exceeding the target of an average waste diversion rate of 70%. We will build on these positive results and expand the program to all CRA facilities, while continuing communications to maximize waste diversion.

Green Procurement
Buying environmentally preferred goods and services is another way in which the Agency minimizes its environmental impacts. By including environmental specifications into more contracts and procurement decision-making processes we spent $28.7 million on green products during the period. This accounted for 21.4% of total spending on products, thereby exceeding our target of 20%. We also included environmental specifications in nine strategic sourcing contracts that were issued during the period. These contracts covered purchases of headsets and handsets; battery recycling services; enterprise content management software; telephone set cleaning and refurbishing services; office and boardroom chairs; end user devices; media monitoring services; primary rate interface services; and commercial/consumer credit reports.

Figure 1 shows a significant increase in the percentage of green products bought by the Agency in 2009-2010 compared to previous years. The increase is largely due to the increased number of contracts that include environmental specifications, and the availability of more comprehensive information to determine green products purchases.

Figure 1: CRA Green Product Spending

Multi-purpose Office Paper
By reducing the amount of paper used in our operations and in delivering CRA services, the Agency conserves natural resources and saves money. Internally, employees on average used 238 fewer sheets of paper for printing and photocopying compared to 2008-2009.

Figure 2 shows that in 2009-2010, each CRA employee used an average of 5,147 sheets of office paper.This represents a 29% reduction in multi-purpose office paper use per employee compared to the base-year of 2004-2005 - surpassing the target of a 22% reduction.

Figure 2: Multi-purpose Office Paper Consumption

In providing services to taxpayers and clients, the CRA saved an estimated 639 million sheets of paper through the electronic filing of Individual (T1) tax returns and reductions in the number of printed tax guides.

CRA Business Travel
The CRA processes an average of 100,000 employee travel claims annually. We have a significant opportunity to promote sustainable business travel options to reduce pollution and save money. These options involve choosing teleconference or videoconference over face-to-face meetings, when appropriate; and using more sustainable modes of transportation and lodging when travel is required. Our aim is to implement sustainable business travel practices to increase efficiency and reduce greenhouse-gas (GHG) emissions. We first established a baseline measuring the amount of GHG emissions resulting from employees travelling for CRA business[Footnote 2]. The results showed that, in 2007-2008, the CRA employees made approximately 150,000 business trips, travelled 93 million km and generated 17,000 tonnes of GHGs.

In 2009-2010 we will expand the scope of this baseline to include GHG emissions from business travel using local taxis and public transit services. We also promoted the updated Sustainable Business Travel (SBT) course to about 5,600 employees. The course provides information on smart driving and sustainable transportation alternatives. Approximately 270 of these employees successfully completed the course. We will promote the course to all employees in the next period.

Fleet
To reduce GHG emissions from our fleet vehicles, the Agency purchased ten alternative fuel (ATF) capable vehicles and two hybrid vehicles in 2009-2010. This increased the percentage of hybrids and ATF capable vehicles in the CRA fleet to 47%.

Figure 3 shows the Agency's fleet profile as of March 31, 2010[Footnote 3].

Figure 3: CRA Fleet Profile for 2009-2010

Energy Conservation
It is estimated that 15% of the energy used in the average building powers office equipment such as computers, monitors, printers, photocopiers, and task lighting - commonly referred to as "plug-load". As a tenant organization, the CRA seeks to reduce our plug-load and conserve the energy wasted when this type of equipment is left on unnecessarily.

In 2009-2010 we deployed a Power Management Solution initiative that automatically power-down computers and monitors after a pre-determined period of inactivity. Additionally, we completed baseline plug load assessments in six facilities across the Agency. By noting the power state of office equipment after normal working hours, we created a "top ten" list of office equipment that was left on unnecessarily after-hours in each facility. The results indicated that the three types of equipment that waste the most energy are computers, monitors, and shredders[Footnote 4].

With the facility baselines established, we set a target to reduce the amount of energy wasted by office equipment after normal working hours by 15-20%. During the next period, we will promote energy conservation best practices in these facilities and re-assess the power state of office equipment after working hours. We will then use the results of the reassessment to develop an Agency-wide plug-load energy conservation plan.

Hazardous Materials
The Agency buys about 66,000 batteries per year to power devices used for CRA operations. At the beginning of the period, we estimated that approximately 60% of CRA facilities had battery-recycling programs in place, which used a variety of approaches and service providers. To promote consistent battery recycling programs, we developed and released a national CRA Battery Recycling Program Implementation Guide. We also awarded a national battery recycling service contract to the Raw Materials Company (RMC). Additional programs were established and we recycled over 750 kg of batteries under the national contract in 2009-2010. We will continue to establish additional battery recycling programs across the Agency.

3.1.1 Conclusion - Goal 1

We achieved 83% of planned progress on Goal 1 activities. The results showed that we exceeded our targets in the areas that have well-developed environmental programs; such as for solid waste, green procurement and paper use. While we progressed towards reducing our GHG emissions from travel and energy; most activities were exploratory and geared towards establishing baselines to inform future plans. As these environmental programs mature, we anticipate that our performance in these areas will improve.

3.2 Goal 2: Demonstrate sustainable service delivery of tax and benefit programs

Paper Savings
About 56% of filers of Individual (T1) tax returns filed electronically in the 2009 tax year[footnote 5]. In demonstrating the environmental benefits resulting from electronic services delivery, we estimated that between 1990 and 2009, 5.3 billion sheets of paper were saved as a result of the CRA EFILE and NETFILE services for Individual tax returns. This amount includes 639 million sheets of paper saved in the 2009 tax year alone.

Figure 4 shows the take-up rate of electronic services for filing Individual tax returns.

Figure 4: Trends in Individual (T1) Electronic Tax Filing (1990-2009)

Overall, the Agency continued to expand the suite of electronic options available to taxpayers and benefits recipients. Canadians are increasingly using these options to share information more efficiently and save postage costs. For example; in the 2009 tax year, the average time to process an electronically filed Individual tax return was about one-third the time (1.6 weeks) required to process a paper-filed T1 return (4.3 weeks). We also engaged 16,379 volunteers and partnered with 2,964 community organisations to help individuals file their tax returns. Volunteers under the Community Volunteer Income Tax Program helped file 500,644 tax returns, of which 47% were filed electronically. As a world recognized leader in tax and benefits administration, we continued to share best practices with other countries. We also led the development of electronic learning products for members of the Commonwealth Association of Tax Administrators.

SD Integration
Partnership Agreements: We continued to include sustainable development provisions in new Memorandums of Understanding (MOUs) and Letters of Intent (LOIs). Of the 33 MOUs and LOIs issued during the period, 28 (or 85%) included SD provisions. The provisions related mainly to using technology to realize efficiencies and minimize waste. Work will continue to strengthen the application of SD criteria in this area.

Community Volunteer Income Tax Program: To communicate the Agency's commitment to sustainable development to the public, we prepared and promoted consistent SD messages to be use in outreach activities. We incorporated "green" considerations inour outreach events by reducing paper-based communiqués and promoting our electronic newsletters. Additionally, we communicated the benefits of CRA electronic services on our Websites. Notwithstanding these efforts, the 2009 survey showed a decline in the percentage of the public that perceives the CRA to be committed to sustainable development - declining from 45% in 2006 to 38% in 2009.

3.2.1 Conclusion - Goal 2

The Agency met three of the four targets that support Goal 2 and achieved 99% of the planned progress. We delivered additional electronic service options to taxpayers and benefits recipients. The higher take-up rates for these services indicate that Canadians recognize the value-added of these services. We also met our objectives of integrating SD considerations into our outreach and volunteer activities, as well as into our partnership agreements. One explanation that could account for the decline in public perception of the CRA commitment to sustainable development is that electronic services are now seen as part of the normal course of business and no is longer viewed as innovation. However, with a mandate that affects millions of Canadians, we will assess our communications to the public and continue to promote our commitment to sustainable development.

3.3 Goal 3: All employees apply sustainable development in their jobs

SD in Performance Agreements
To demonstrate leadership and senior management support for SD in the CRA, 99% of the CRA Executive/Cadre (EC) included SD commitments in their performance agreements, surpassing the target of 90%. Within the Management/Gestion (MG) group, 82% of members included SD measurement criteria in their performance expectations. While falling short of our 90% target for MGs, this represents a significant increase from 43% in 2008.

SD Learning
To further engage and inform our MG group, we delivered SD training to a total of 280 managers at 14 sessions of the MG Learning Program (MGLP). We updated and promoted a course for sustainable business travel; and began work to develop an SD criteria tool that will help analysts and planners to include SD considerations in their projects, policies, and plans.

Employee Engagement
National SD Events: The CRA continued to use the three national SD events (Earth Day, Environment Week and Waste Reduction Week) to increase employee understanding and application of SD considerations on their jobs. To show the link between SD and CRA core business, we strategically used the events to promote corporate and program initiatives that reduce environmental impacts. Branches and regions throughout the Agency hosted local events to support the national themes. We also recognized employee contribution to SD in the workplace through local and Agency recognition programs, as well as by featuring employee SD contributions on our national SD Website.

Figure 5 shows the growth in SD awareness among CRA employees. We will conduct the next SD awareness survey in 2010 to assess whether we met our target of achieving a 95% SD awareness level among CRA employees.

Figure 5: SD Awareness among CRA Employees between 2004 and 2007
(Target is 95% by 2010)

The Sustainable Development Innovation Fund (SDIF): The SDIF finances employee-sponsored projects that both advance innovation and support sustainable development. During the period, we released $43,000 to expand existing projects across the Agency - they were:

• Rechargeable Batteries Initiative: The project replaced the use of single-use alkaline batteries with rechargeable batteries and chargers in four Tax Service offices (TSO) that use some of the largest quantities of batteries bought by the CRA. They are the Burnaby-Fraser TSO in the Pacific Region; Calgary TSO in the Prairies; Laval TSO in Quebec; and Saint John TSO in the Atlantic Region. We bought approximately 1,400 rechargeable batteries that will offset the disposal of 14,000 single-use batteries after ten charges. Through this initiative the Agency will save money and reduce hazardous waste.
• Re-usable Blue Bags: The project replaces single-use large size paper envelopes and routing advice slips used in inter-office mailings with reusable plastic envelopes. Senders are now able to place up to ten envelopes into one blue bag, thereby reducing the total number of envelopes used. The initiative saved about 2,000 envelopes in one year.
• Intra-Form Builder Tool: The SDIF funded the development of the "form builder tool" that will be made available Agency-wide to convert paper and electronic forms to an online form-fillable format. The use of intra-forms for internal administrative processes reduces paper use and increases efficiencies by enabling electronic submissions and approvals. Approximately 20 new online forms were created using the Tool, which saved an estimated 5,000 sheets of paper.

We also received 26 proposals from the fourth national call for project proposals under the SDIF. We awarded $50,000 to three new projects scheduled for implementation in 2010-2011.

3.3.1 Conclusion - Goal 3

We advanced on all three targets that support Goal 3 - achieving 87% of planned progress. Management and employees continued to show strong support for SD in the workplace. We anticipate that the SD awareness survey will confirm increased levels of employee engagement.

3.4 Goal 4: Use modern systems that support and maintain sustainable development

SD Network
A strong and well-supported SD Network is key to realizing positive SD results. During the period, the SD Division held quarterly SD Network meetings, delivered orientation and awareness sessions, participated in local and regional SD committee meetings, released semi-annual SD Network report cards, and provided tools, guidelines and best practices to local SD committees and throughout the Agency. The SD Network reported an overall approval rating of 77% (3.9 out of 5) for support services offered to them by the SD Division. This compares to 82% (4.1 out of 5) in the previous period. Table 1 outlines the ratings received by the SD Division in the six areas that were surveyed, as well as the change between the current and previous fiscal periods. The SD Division will assess these results to ensure continual improvement. In meeting its service standard, the SD Division responded to 100% of employee enquiries (33 of 33) within 5 working days.

Table 1: SD Network Rating of SD Division Services in 2009-2010

Sustainability Criteria
Sustainability criteria are in essence a series of related questions that are posed during the decision-making process to encourage integrated decision-making. They are used to assess the social, economic and environmental implications of policies, plans and programs during their development or review. During the period, we started work to enhance the existing SD Criteria tool for planners and analysts. We will finalize and pilot the enhanced tool in the next period. We assessed 32 key policies of the Agency to determine the application of the criteria. We noted that 24 policies incorporated at least one of the three pillars of SD - social, economic, or environmental. We also worked to include SD criteria in the CRA Parking Policy and CRA Relocation Policy.

SD Report Card
The purpose of a CRA SD Report Card is to show the Agency's contribution to the social, economic, and environmental sustainability of Canada. SD communications within the Agency have strategically focussed on the environmental aspect of SD. There is an opportunity to broaden the Agency's understanding of SD to include all three SD pillars - social, economic, and environmental. During the period, we prepared a consultation paper that explored the business case for measuring and reporting CRA performance against economic, social and environmental parameters. To help us identify pertinent performance indicators, we scanned corporate social responsibility (CSR) reporting initiatives - both national and international. We examined existing indicators from the Agency's corporate reports and reviewed the Public Sector Supplement of the 2006 Global Reporting Initiative (GRI)[Footnote 6]. We then drafted an outline of an Agency CSR report that includes a set of proposed environmental, social and economic indicators for the CRA. We will pursue Agency-wide consultations to gain consensus towards preparing an SD Report Card for the CRA.

SD Program Management
Environmental Management Programs (EMPs): We implemented our 2009-2010 EMPs and reported performance to the National EMS Committee at regularly scheduled meetings. The nine EMPs set 96 targets in total and we achieved the following results:

1. Met - 63% or 60 targets
2. Mostly met[Footnote 7] - 20% or 19 targets
3. Not met - 18% or 17 targets

We also drafted the 2010-2011 EMPs that will continue to improve our environmental performance.

SD Program Evaluation:
As part of our preparations for the next CRA SD strategy, the Agency retained the services of a consultant[Footnote 8] to assess the current SD Program. The assessment focused on: adequacy of the framework; progress on achieving targets; and strategic alignment with the Federal SD Strategy and Agency priorities. The analysis concluded that, "Based on the results of the SWOT[Footnote 9] analysis it is evident that the SD framework is in place at the Canada Revenue Agency for a successful Sustainable Development program that is aligned to the Federal Sustainable Development Act". It also stated that, "Given the successes of the individual sections, the Division is virtually guaranteed of successfully delivering its fifth SD strategy. As a result of the discussions and conclusions at the recent Strategic Review session, the SD Division is aware that it has opportunities to significantly advance the value of the SD program within the Agency by aligning the program to support the key priorities of the CRA; and articulating its SD initiatives in a comprehensive, integrated SD strategy for the CRA." We will use the results of the analysis to inform the development of CRA SD Strategy 2011-2014.

3.4.1 Conclusion - Goal 4

We met our target to strengthen the SD framework through program reviews and reporting and we provided enhanced tools to the SD Network. We were challenged to meet the target of producing a CRA SD report card, as we realized that this objective required broader consultations to promote understanding of the purpose and content of such a report. Overall, we achieved 79% progress towards the goal. As the Agency prepares to respond to the requirements of the Federal SD Strategy, we will continue to modernize our management of the SD Program.

3.5 Overall SD Strategy Performance

Based on our overall performance, we conclude that the CRA successfully implemented its fourth SD strategy. We achieved 87% of ourplanned progress against the four goals of the strategy, and 82% of the work scheduled for 2009-2010. Goal 1 moved us from "good" to "improved" environmental performance. In Goal 2, we made significant advancements towards modernizing our service delivery through the provision of electronic-service options. For Goal 3, the results of the public opinion survey indicate that we have more work to do to better communicate our SD commitment to the public. However we recorded impressive results in engaging management and employees, as well as recognizing employee contribution to SD. Finally, the results of Goal 4 indicate that we evolved our environmental management programs to become business as usual. However, we realized slower than planned progress in producing a CRA SD Report Card that provides a triple bottom-line view of the Agency's contribution to sustainable development.

3.6 Next Steps for 2010-2011

In the next period we will implement the CRA SD National Action Plan 2010-2011 that carries over activities that were in progress at the end of 2009-2010, and introduces new activities that will maintain SD momentum. We will implement the 2010-2011 EMPs to continue reducing our impacts on the natural environment. We will also continue to participate in interdepartmental consultations to finalize a Federal SD Strategy, and lead internal consultations to gain Agency-wide support and commitment to prepare CRA SD Strategy 2011-2014.

Footnotes

Footnote 1]

This includes six facilities that implemented the No Waste program during 2009-2010.

[Footnote 2]

Data sets do not include business travel using active transportation, local taxis or local public transportation.

[Footnote 3]

Although we acquired ten ATF vehicles during the year, due to inventory movements, the net increase of ATF vehicles in the fleet was five vehicles. Similarly, the CRA acquired two hybrid vehicles but the net increase in the number of hybrid vehicles was zero.

[Footnote 4]

Energy waste is determined by manufacturers' guide for optimal equipment use.

[Footnote 5]

A CRA tax year starts in February and ends in January.

[Footnote 6]

The GRI sets international standards for CSR reporting.

[Footnote 7]

"Mostly met" means that a target achieved at least 75% progress but was not completed.

[Footnote 8]

MCO Business Group Incorporated

[Footnote 9]

A SWOT analysis identifies strengths, weaknesses, opportunities and threats.

Date modified:

2011-03-17