Audit of Climate Change Adaptation – Governance and Management Processes at NRCan (AU1508)

The audit examined whether roles, responsibilities and accountabilities are clearly documented for NRCan’s Adaptation activities and initiatives. It was determined that Adaptation activities that received funding through the ECCC program have clearly documented roles, responsibilities and accountabilities. These activities are mainly undertaken by the Earth Sciences Sector, the Canadian Forest Service, and the Minerals and Metals Sector. With respect to non-ECCC activities, it was determined that clarification of processes, including accountabilities, roles and responsibilities, implementation expectations, and reporting requirements are required.

The audit noted that the governance framework for Adaptation activities was complex, due to the involvement and accountabilities of several committees. This complexity was evident for the governance of non-ECCC Adaptation activities.

Oversight and responsibility for the implementation of NRCan’s HTTA recommendations rests with two separate supporting committees to NRCan’s Executive Committee. Individual Sectors were also made accountable and responsible for the implementation of one of these recommendations, namely to incorporate climate change risks and opportunities into existing Science and Technology Policy and Programs. The audit found that there was a lack of direction and guidance, as well as a lack of clear expectations with regards to timelines for the implementation of this recommendation and associated reporting requirements.  

The audit noted that NRCan’s Director-level Adaptation Committee was tasked with ensuring that dialogue on adaptation between NRCan’s Sectors fosters internal collaboration, coordination and integration with respect to climate change adaptation. This committee is chaired by the Director, Climate Change Impacts and Adaptation Division and includes representatives from each NRCan Sector. Sector committee representatives expressed having varying degrees of understanding of how to implement Adaptation activities. Members from Sectors which received funding from the Enhancing Competitiveness in a Changing Climate program have a greater understanding of their roles and responsibilities. Other representatives believe additional guidance on their Sectors’ roles and responsibilities would be beneficial.

Strategic and Operational Objectives

The audit examined whether strategic and operational objectives exist for Adaptation activities, and whether they are aligned with government priorities, identified risks, and client needs. It was determined that strategic and operational objectives exist for ECCC climate change activities; however, limited evidence was available to demonstrate that all Sectors are integrating climate change considerations into planning of their programs, policies, and operations, as recommended by the Federal Adaptation Policy Framework. An example of integration could include the consideration of impacts of a changing climate on the department’s scientific research field activities.

Strategic and operational objectives, as well as budget information for ECCC Adaptation activities, are explicitly outlined in NRCan’s Report on Plans and Priorities and Sector Integrated Business Plans. These objectives are aligned with government priorities and the Federal Adaptation Policy Framework. Additionally, the objectives were found to be aligned with identified risks in NRCan’s Corporate Risk Profile. The consideration of Adaptation as part of the corporate risk assessment process was also found to have specifically addressed departmental client needs.

The audit found that NRCan Sectors inherently integrate Adaptation into their work; however, these activities are not always explicitly identified or acknowledged as an Adaptation activity or initiative impacting the Department’s ability to monitor and report against such activities. Similarly, it was also noted that Sectors that do not have programs related to climate change are in some cases unclear or unaware of how to apply climate change to their work.

Within this context, the audit noted several initiatives for addressing Adaptation risks to real property have yet to be fully implemented. For example, while Building Management Plan (BMP) projects are reviewed and assessed centrally for their relevance to climate change adaptation, this assessment is based on informal criteria extrapolated from a Public Works and Government Services Canada infrastructure engineering vulnerability study conducted for infrastructure located in the National Capital Region. The requirement to consider Adaptation impacts in the management of departmental infrastructure assets is one of the key recommendations of the department’s HTTA report.

The audit also found that while training was provided by the Real Property & Environmental Management division to those responsible for NRCan’s regional infrastructure portfolios it remained unclear where to include climate change impacts and adaptation consideration in the management of departmental infrastructure assets and how to specifically apply these considerations within NRCan’s building management planning process.

It should be noted that limited central guidance has been provided to departments regarding implementation of the Federal Adaptation Policy Framework, including required measures related to Real Property. 

Oversight Bodies and Reporting

The audit examined whether oversight bodies receive sufficient information in support of decision making and performance management related to NRCan’s climate change activities and initiatives. The audit found that the Sectors that received funding for Adaptation have in place oversight and performance management practices for these programs, however opportunities for improvement exist for NRCan non-ECCC Adaptation activities.

The audit found that the ECCC Adaptation activities are subject to performance management practices common to all programs in the department. The audit also found that oversight and performance measurement also occurs through various committees. The audit reviewed the activities of internal oversight bodies involved with NRCan’s Adaptation activities, and found that the principle committee tasked with oversight of NRCan’s Adaptation activities had received information in support of decision making and performance management related to NRCan’s ECCC climate change activities and initiatives. 

The audit also reviewed NRCan’s participation in external committees such as the Interdepartmental Clean Air Agenda Adaptation Theme Director General Management Committee, which is chaired by Environment Canada. The audit found that the Committee had received periodic updates from NRCan with respect to ECCC Adaptation activities, including formal performance reports. The audit also noted that NRCan was an active participant ensuring its collaboration and knowledge exchange with other government departments and external stakeholders.

The audit noted that reporting on climate change activities under the Horizontal Management and Accountability Reporting Framework (HMARF) was a requirement of NRCan’s ECCC programs.  However, HMARF was instead consolidated under the Federal Sustainable Development Strategy (FSDS) to ensure horizontal accountability and improve clarify and transparency. The audit found that NRCan is meeting its FSDS reporting obligations for Adaptation. The audit also reviewed the operations of the committees which had been identified as responsible for oversight of non-ECCC climate change activities and found that it had received limited information in support of decision making. The audit also found no evidence that performance information related to NRCan’s non-ECCC Adaptation activities was being provided.

RISK AND IMPACT

There is a risk that a lack of clarity around processes, including accountabilities, roles and responsibilities, implementation expectations, and reporting requirements, surrounding NRCan’s non-ECCC Adaptation activities may result in the Department not fully achieving its climate change adaptation objectives.

RECOMMENDATIONS

1. The Assistant Deputy Minister Earth Sciences Sector (ADM ESS), in consultation with Sector ADMs, should clarify processes surrounding the governance of Natural Resources Canada’s (NRCan) non-Enhancing Competitiveness in a Changing Climate (ECCC) climate change adaptation activities to ensure they meet requirements related to the Federal Adaptation Policy Framework.

2. The Assistant Deputy Minister Corporate Management and Services Sector (ADM CMSS) should ensure measures are taken to address climate change adaptation, as appropriate, as part of Building Management Planning (BMP) activities for NRCan’s custodial properties.

MANAGEMENT RESPONSE AND ACTION PLAN

Management agrees.

In response to recommendation 1, the ADM ESS will direct the NRCan Climate Change Committee to clarify the governance of the department’s adaptation activities, including accountabilities, roles and responsibilities, implementation expectations and reporting requirements.

As the Committee is not a management committee, accountability for ensuring that sector activities ultimately meet the requirements of the Federal Adaptation Policy Framework is the responsibility of individual sectors.

Position responsible: Assistant Deputy Minister Earth Sciences Sector

Timing: October 30, 2015

Management agrees.

In response to recommendation 2, yearly check in with the Earth Sciences Sector (ESS) will be undertaken as part of the BMP process (during BMP call letter) by the Environmental Management (EM) group.

BMP call letter will request facility managers to address Climate Change Adaptation vulnerabilities particularly in the North and Coastal Areas.

Future Building Conditions Reports will include Climate Change Adaptation considerations.

To ensure sufficient guidance is provided to relevant staff, training refreshers will be provided every 3 years, through environmental training activities. The EM group, with support from ESS can be contacted at any time for clarifications and additional guidance.

Position responsible: Executive Director Human Resources and Workplace Management Branch

Timing: Completed by end of 2015-16

MANAGEMENT PRACTICES

Summary Finding

Management practices that support an effective approach to delivering Adaptation activities and initiatives are in place. However, opportunities exist to leverage the existing guidance, information, and tools to further support the integration of climate change activities elements into Sector activities.

Supporting Observations

Guidance, Information, and Tools

The audit examined whether NRCan Sectors have effective guidance, information, and tools to enable their Adaptation activities. It was determined that adequate support and guidance was received by Sectors which sought these services from CCIAD. However, some Sectors expressed a lack of awareness of the requirement that they effectively integrate climate change considerations into their programs, policies, and operations.

As stated earlier, NRCan’s Director-level Adaptation Committee was created to ensure that dialogue on adaptation between NRCan’s Sectors fosters further internal collaboration, coordination and integration with respect to climate change adaptation. The Committee first convened in May 2014 and was primarily focussed on program renewal. However, management has indicated that going forward, the committee will focus on fulfilling its mandate to support integration across the department.

The audit found that NRCan’s Adaptation activities with external partners and stakeholders through the Adaptation Platform has resulted in the development, sharing, and use of tools and information to enable Adaptation activities. Additionally, an inventory of ECCC climate change adaptation projects and the finished products and tools are publicly available on NRCan’s website.

Communications Processes and Mechanisms

The audit examined whether formal communication processes and mechanisms exist and support exchange of information with internal and external stakeholders. It was determined that these exist and support exchange of information with internal and external stakeholders.  

Throughout the course of the audit, interviews were conducted with internal and external stakeholders. The majority of those interviewed expressed that communication processes were effective and supported the exchange of information, either through direct communication with NRCan staff or using NRCan’s Adaptation Platform.

It was noted that the Adaptation Platform uses a web based application, which is the main channel for development and exchange of tools and information. The Adaptation Platform's virtual workspace is the principal means for sharing information and undertaking activities of the working groups. It is the primary communications process and mechanism for exchanging climate change adaptation information and knowledge among NRCan and external stakeholders, through tools, products, events (conferences / webinars) and discussion forums. However, it was noted that the Platform is primarily used by Sectors who have ECCC Adaptation activities.

RISK AND IMPACT

There is a risk that a lack of sufficient guidance, information, and tools to enable Adaptation activities within NRCan’s Sectors’ respective areas of responsibility may result in less than optimal integration and delivery of Adaptation activities.

RECOMMENDATION

3. The Assistant Deputy Minister Earth Sciences Sector (ADM ESS), in consultation with Sector ADMs, should ensure that Natural Resources Canada (NRCan) Sectors receive guidance and support to implement their climate change adaptation requirements as defined in the Federal Adaptation Policy Framework.

MANAGEMENT RESPONSE AND ACTION PLAN

Management agrees.

In response to recommendation 3, the Director Climate Change Impacts and Adaptation Division (CCIAD), through the NRCan Climate Change Committee, will work with committee members to identify the needs for information, guidance and tools on climate change adaptation. It will then undertake activities required to provide access to these products across the department that will strengthen the capacity of the department to integrate adaptation into federal policy and planning as described in the Federal Adaptation Policy Framework. This will assist sectors in assessing and responding to operational climate change risks in their sector risk profiles.

As the Committee is not a management committee, accountability for ensuring that sector activities ultimately meet the requirements of the Federal Adaptation Policy Framework is the responsibility of individual sectors.

Position responsible: Director Climate Change Impacts and Adaptation Division

Timing: Identification of needs and activities – December 1, 2015

APPENDIX A – AUDIT CRITERIA*

This appendix details the specific audit criteria related to each of the objectives of the audit along with the sources of the criteria (see * below).

The objective of the audit is to provide reasonable assurance on the effectiveness of the governance structure and management practices supporting an integrated approach to manage Adaptation activities and initiatives with internal and external stakeholders.

* The criteria have been developed from the key controls set out in the Treasury Board of Canada’s Core Management Controls, Management Accountability Framework and relevant associated policies, procedures and directives.