荔枝视频

Sustainability. Energy transition. Corporate Social Responsibility. ESG. All critical buzzwords that have captured the attention of Canadians and Albertans alike and are shaping some of the most pressing issues facing our province and country today.

In 2021, U荔枝视频 received a $500,000 gift from BMO to establish a new professorship in energy transition and finance 鈥� a position Haskayne鈥檚 Dr. Yrjo Koskinen, PhD, has held since its inception. While in this role, Koskinen has drawn on his expertise in corporate finance, governance and sustainability to contribute further academic research in these realms. explored the relationship between environmental performance and financial impact 鈥� comparing how U.S. and Canadian firms performed respectively.

And the results were quite surprising to say the least. While U.S. firms can increase profits and especially valuations through good environmental performance, Canadian firms do not experience any financial impact.

So, what does this mean for Canadian businesses trying to increase shareholder value, while also improving environmental performance?

This question and many others were raised amongst 荔枝视频鈥檚 business community at Haskayne鈥檚 most recent Enbridge Research in Action Seminar Series event.

Pairing academic research with industry expertise to tackle real-world problems

Earlier this year, Enbridge announced its three-year investment commitment in the . The event series brings together influential researchers, practitioners and industry experts to discuss leading-edge sustainability topics and research.

After hosting a dynamic in-person event in February on the role collaboration plays in the energy transition, Haskayne was thrilled to bring close to 100 members of the business community together on June 14 to discuss the relationship between environmental performance and financial impact.

The engaging event welcomed Janet Annesley, chief sustainability officer at Kiwetinohk Energy, in addition to Koskinen as panellists. Moderated by Niels Versfeld, senior director of environment at MBC Group and current Haskayne DBA student, the conversation was gripping as the panel discussed the distinct nuances between the American and Canadian energy industries, what drives stakeholders to invest capital and the critical need for Canadian firms to differentiate themselves to gain a meaningful advantage.

When discussing his research, Koskinen attributes the blatant discrepancy between American and Canadian firms鈥� financial results from their environmental performance efforts to the differences between the countries鈥� corporate governance systems.

鈥淚n the United States, environmental initiatives are really business decisions 鈥� they want to create financial value with these initiatives,鈥� says Koskinen. 鈥淲hereas in Canada, the motivation is that we want to do good for society. The obvious next step is to look at how Canadian firms can better differentiate their business strategies using environmental initiatives.鈥�

Problem solving by applying a research-based lens

While Annesley admits it was really frustrating to learn about Koskinen鈥檚 research results, it does serve as a wake-up call that Canada should be heeding, specifically looking at 鈥渉ow we can use environmental performance not only to manage risk, but to create opportunities.鈥�

Despite the surprising results, Annesley is quick to communicate the message is not for companies to think that there鈥檚 no value in environmental performance, emphasizing 鈥渢o even get the opportunity to play and to be in the game, you need to do it.鈥�

When asked if Koskinen鈥檚 research will change her approach to problems day to day, Annesley is resolute in her response.

鈥淎bsolutely 鈥� it gives me some more resolve to really think about how to differentiate strategically. I鈥檒l say this simplistically, but it comes back to investor relations, communication 鈥� it even comes back to talking to government to say, 鈥業f you want this energy transition to happen, here鈥檚 how you need to be thinking to create the right incentives and to create the value.鈥�

鈥淚n Canada, we鈥檙e so afraid that if somebody makes a profit off the energy transition that somehow, it鈥檚 a bad thing. Instead, we need to start to think big and systematically.鈥�

The fruitful discussions and audience questions that arose from the event prove the immense value that comes when post-secondary institutions and the business community collaborate. Creating space for these conversations to take place and better learning how to bridge the academic and practitioner worlds will continue to be of benefit to all members of the business community 鈥� especially as 荔枝视频 looks to carve out its position as a leader in the energy transition space. 

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