Why should institutional investors take a second look at their investments in the fossil-fuel industry? And why should employers look at ways they can help new fathers take parental leave and manage care for their young children after they return to work?
To paraphrase our new prime minister: Because it’s 2016.
They’re separate issues but they do demonstrate how slowly things change. Major worries about climate change date to the 1980s, and the issue was clearly top of mind during the United Nations’ Earth Summit in Rio de Janeiro in 1992. And while the federal government long ago amended the Employment Insurance program to support fathers taking parental leave, to this day, few of them use it.
Read: Should institutional investors divest from carbon
Read: How to bridge the parental leave divide
As you’ll see in this month’s issue, little has changed despite years of talk. The earth continues to get warmer and Canada’s greenhouse gas emissions remain high. And women still shoulder a disproportionate obligation for childcare as men continue to face stigma should they move to take parental leave.
But change is coming. Some progressive companies are making efforts to facilitate paternity leave and, with December’s climate change agreement in Paris, it’s clear some sort of collective action on greenhouse gas emissions is imminent. Institutional investors would be wise to start paying attention.
Of course, there are diverging opinions on whether actions like carbon divestment can truly help address climate change. And as a major player in the oil and gas industry, Canada isn’t likely to embrace the divestment movement even as governments vow to deal more aggressively with the issue. We want to do our part but not at the expense of a key industry.
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Regardless, if governments really are going to take action through a cap-and-trade system, a carbon tax or other measures, companies with high greenhouse gas emissions will feel the impact. So institutional investors should see it as a duty to consider that possibility and assess the risks. It doesn’t mean they should necessarily divest from a particular asset, but they need to at least examine their exposure. And with new provisions around environmental, social and governance factors taking effect in Ontario, companies have an even greater incentive to take a look at climate change.
While change on the environmental front will likely take time and the answers as to what an institutional investor should do about a particular company are unclear, the response to the paternity leave issue is more obvious. Attitudes towards the division of labour have changed, so it’s clearly time for more employers to introduce policies to make it easier for fathers to take a bigger share of parental leave. There are many things employers can do, from battling the stigma to providing support for staff returning from leave, to make it easier for them to manage parental responsibilities.
Real change takes time. But as Trudeau made clear in announcing his cabinet, it’s possible to make a difference quickly.
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Glenn Kauth is the editor of Benefits Canada.