SUSTAINABLE DEVELOPMENT STRATEGY

Progress Report on  2001-2003 Strategy

Introduction

Canada is a maritime nation. Surrounded by the Arctic, Atlantic, and Pacific oceans, the country has some of the largest bodies of water and inland waterways in the world, such as the St. Lawrence River and Hudson Bay. Millions of Canadians live in coastal areas, and marine and freshwater resources are among the country's greatest natural assets.

DFO plays a leading role in ensuring the sustainable development and safe use of Canadian waters for the benefit of all Canadians. As a result of its mandate, DFO's actions directly affect the livelihoods of thousands of Canadians and influence the economic, social and cultural fabric of Canada. DFO's key areas of responsibility include the following:

• protecting the marine and freshwater environment;
• managing and protecting fisheries resources and fish habitat;
• understanding the oceans and aquatic resources;
• maintaining maritime safety;
• engaging Aboriginal people in the management of aquatic resources; and
• facilitating maritime commerce and ocean development.

Sustainable Development at DFO

Sustainable development is fundamental to DFO's mandate, policies and programs, and the Department is called upon daily to integrate environmental, economic and social considerations into its decision making.

Recognizing that aquatic resource development must be undertaken carefully to safeguard the ability of future generations to meet their needs, DFO works with others to derive economic and social benefits from Canada's oceans and freshwater resources while conserving the ecological integrity of those resources. For example, through its regional offices and various consultation mechanisms, DFO works closely with other federal government departments, provincial and territorial governments, Aboriginal groups, the national and international scientific community and other stakeholders.

In 2001, DFO released its second SDS. This strategy, entitled Building Awareness and Capacity: An Action Plan for Continued Sustainable Development 2001-2003, was based on principles regarding integrated decision making, accountability and science and knowledge (see Annex A for a full discussion of these principles). Building Awareness and Capacity had five goals:

• ensuring the sustainable use of marine and freshwater resources and ecosystems through new forms of governance and shared stewardship;
• supporting improved decision making through better knowledge of the nature and use of marine and freshwater resources and ecosystems;
• improving the application of knowledge and new technologies to support the sustainable and safe use of marine and freshwater resources;
• reducing negative physical environmental impacts associated with departmental operations; and
• developing a management system to track progress and performance of the SDS.

Associated with these goals were 41 planned activities, each specifying what DFO intended to do, deliver or produce. DFO has made significant progress on these planned activities: 36 have been achieved or are on their way to being achieved. During this same time period, DFO has evolved in a number of fundamental ways that support sustainable development. For example, the Department is shifting:

• from a primary focus on fisheries to broader oceans management responsibilities;
• from centralized decision making to a more transparent and participatory approach to engaging stakeholders and partners;
• from the making of short-term environmental, social and economic trade-offs to a focus on longer term environmental sustainability and economic viability; and
• from traditional regulation to innovative risk-based approaches that enable sustainable development.

DFO continues to make progress toward deriving economic and social benefits from aquatic resources while protecting and restoring the aquatic environment. Sustainable development principles and concepts are fundamental to DFO's policy and program agenda, and the Department's approach is to provide an overall planning framework that integrates and reflects sustainable development principles and objectives.

Evolving Context

In recent years, the Department's mandate has evolved with the adoption of the Oceans Act and the Species at Risk Act, as well as with the introduction of Canada's Oceans Strategy. Legal developments related to Aboriginal and treaty rights and issues regarding aquaculture and the need to play a more active role in fish-habitat management have also affected the Department.

Oceans and freshwater are under increasing threat from pollution and activities that can harm or alter fish habitat and overall aquatic ecosystems. Demands on Canada's oceans are increasing, with aquaculture, offshore oil and gas exploration and development and eco-tourism joining traditional fishing and marine transportation as significant industries. The same is occurring with Canada's freshwater, with increases in recreational use and increased demands for development projects, such as land-based oil and gas, mining and hydro-electricity. Furthermore, an increase in the intensity of land use is threatening freshwater, estuarine and marine resources.

Cumulative human impacts also continue to take their toll on the environment: consumption and population pressures; challenges of socio-economic viability and diversification in coastal communities; industrial pollution from forestry, mining and transportation; and urban sprawl.

In recent years, the Department's mandate has evolved with the adoption of the Oceans Act and the Species at Risk Act, as well as with the introduction of Canada's Oceans Strategy. Legal developments related to Aboriginal and treaty rights and issues regarding aquaculture and the need to play a more active role in fish-habitat management have also affected the Department.

These developments have raised client and citizen expectations that DFO will be more involved in processes for managing risks and reconciling competing interests. In addition, interconnected program challenges have led to a greater emphasis on horizontal management and stronger links to other government departments and programs.

DFO is also facing a number of pressures in both the external and internal environment:

• Aquaculture development is facing complex regulatory regimes and increasing public concerns about environmental sustainability and use of oceans spaces;
• Rapid advances in technology, including biotechnology, information and communication technologies, continue to transform the way the Department conducts its business. For example, in the areas of navigation and hydrographic charting, traditional products and services are being updated to meet the changing needs of clients;
• New information technology is increasing and changing public expectations. DFO's challenge will be to fully integrate information into departmental strategic decision making and policy development processes;

EMR

Also taking place at this time is an Expenditure and Management Review (EMR). This is part of an initiative announced in the February 2003 Budget to review the mandates and programs of each department every five years. These reviews will be led by the Treasury Board Secretariat, and their purpose is to ensure that expenditures continue to contribute to results that are relevant for Canadians. In May 2003, DFO was identified as one of the first four departments to participate in an EMR.

• Increased demands for new and more specialized scientific knowledge continue to challenge the ability of the Department's science program to provide the breadth and depth of scientific advice necessary for internal decision making on mandated responsibilities and in emerging areas arising from legislation and other drivers;
• The number of Environmental Petitions on issues of concern to the public and environmental organizations is expected to continue to increase; and
• The recent entry into force of the Species at Risk Act will make new and significant demands on the Department. For example, DFO will be required to increase its efforts to assess the status of species at risk, develop and implement recovery strategies and identify critical habitats necessary for the survival and recovery of such species.

These and other pressures, combined with limited financial resources, have compelled DFO to re-examine its priorities and realign its activities. In November 2002, DFO launched a comprehensive review called the Departmental Assessment and Alignment Project, or DAAP. The review is designed to secure the Department's financial stability for the future, strengthen its management practices and renew departmental policies and programs. The DAAP was also a response to the Government of Canada's direction in the September 2002 Speech from the Throne to reallocate resources from lower priorities to higher priorities.

The overarching objective of the DAAP is "to strengthen the Department's ability to work with Canadians to ensure the sustainable development and safe use of Canadian waters." The DAAP has involved all DFO sectors and regions, and it has been guided by principles that support sustainable development: integrated resource management, partnerships, the concept of the public good, and risk management and precaution. Throughout the DAAP, DFO has reconfirmed and strengthened its commitment to sustainable development as a core underpinning of all its programs and services. The DAAP has also built on a number of reform initiatives undertaken in recent years, including the Atlantic Fisheries Policy Review, Canada's Oceans Strategy, Canadian Coast Guard (CCG) Modernization and the Department's Aquaculture Policy Framework.

The DAAP will set the stage for the renewal of DFO's Strategic Plan, its new Planning, Reporting and Accountability Structure (PRAS) and the Department's next SDS. The DAAP will bring forward options to do the following:

• renew DFO policies and programs to ensure the ongoing relevance of DFO services to Canadians;
• strengthen management practices to improve the effectiveness and efficiency of DFO services; and
• secure financial stability to support DFO programs and services.

In considering options for changing the way the Department does business, it remains vital that DFO programs respond to the needs of Canadians and be affordable within the resources currently at the Department's disposal.

Rationale for Issuing a Progress Report

In the normal course of events, DFO would now be tabling its third SDS. However, mainly because of the DAAP, DFO, in consultation with the Office of the CESD, has decided to issue a progress report on its 2001-2003 SDS at this time.

Following the completion of the DAAP, DFO's Strategic Plan and PRAS will be renewed, and a comprehensive new SDS will be developed and tabled. DFO is committed to ensuring that these key corporate planning tools are fully aligned with DFO's renewed direction in support of sustainable development.

This decision regarding the progress report has several significant advantages:

• It allows Members of Parliament and stakeholders to view DFO's progress to date on existing SDS commitments;
• It ensures that the departmental change agenda will be fully aligned with future sustainable development commitments;
• It ensures alignment between the new SDS and the Department's renewed PRAS; and
• It ensures proper alignment of the new SDS with DFO's new Strategic Plan.

The next section describes the progress DFO has made on its 2001-2003 SDS. Following this, the section on DFO's next SDS points the way toward DFO's new SDS, discussing the factors and emerging pressures that DFO's third SDS must reflect.