Wednesday, May 26, 2021

oil giant to cut emissions

Published
IMAGE COPYRIGHTREUTERS
image captionActivists hugged in court after the judge delivered the verdict

A court in the Netherlands has ruled in a landmark case that the oil giant Shell must reduce its emissions.

By 2030, Shell must cut its CO2 emissions by 45% compared to 2019 levels, the civil court ruled.

The Shell group is responsible for its own CO2 emissions and those of its suppliers, the verdict said.

It is the first time a company has been legally obliged to align its policies with the Paris climate accords, says Friends of the Earth (FoE).

The environmental group brought the case to court in 2019, alongside six other bodies and more than 17,000 Dutch citizens.

Though the decision only applies in the Netherlands, it could have wider effects elsewhere. BBC Netherlands correspondent Anna Holligan tweeted that it was a "precedent-setting judgement".

A Shell spokesperson said they "fully expect to appeal today's disappointing court decision" and added that they are stepping up efforts to cut emissions.

"Urgent action is needed on climate change, which is why we have accelerated our efforts to become a net-zero emissions energy company by 2050," the spokesperson said, adding that Shell was investing "billions of dollars in low-carbon energy, including electric vehicle charging, hydrogen, renewables and biofuels".

"This is really great news and a gigantic victory for the earth, our children and for all of us," FoE director Donald Pols said in a statement. "The judge leaves no doubt about it: Shell is causing dangerous climate change and must now stop it quickly."

The BBC is not responsible for the content of external sites.View original tweet on Twitter
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Under the terms of the Paris Agreement on climate change, nearly 200 nations agreed to keep global temperatures "well below" 2C above pre-industrial levels.

The legally binding treaty came into force on 4 November 2016. The US withdrew under former President Donald Trump but has since rejoined under President Joe Biden.

A number of groups around the world are now trying to force companies and governments to comply with the accords through the courts.

Shell has previously said it wants net zero emissions for itself and from products used by its customers by 2050.

In December its defence lawyers told the Dutch court the company was already taking "serious steps" to move away from fossil fuels, and said there was no legal basis for the case.

Other major oil companies are also making changes amid a greater global focus on cutting emissions.

On Wednesday Chevron investors voted in favour of a proposal to cut its customer emissions, while shareholders at Exxon elected two climate activists to its board after months of wrangling over its business direction.

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Analysis box by Roger Harrabin, Environment analyst

The Shell verdict is a massive win for environmental campaigners, and other industrial giants will be scrambling to figure out how it could affect them.

Because suddenly it's not good enough for firms to comply with the law on their emissions - in an extraordinary case like this, they have to comply with global climate policy too.

The company's defence is that if people feel progress towards cutting emissions is too slow, they should lobby governments - not Shell - to change policies and introduce financial incentives.

The judges have clearly decided that Shell should be taking responsibility itself for cutting emissions much faster.

The firm will surely appeal - and it might well win the case in a higher court.

But this verdict alone will be a warning to companies round the world that the battle against climate change may be spelling the end of anything resembling "business as usual".

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Shell - full name Royal Dutch Shell - is a British-Dutch multinational. Because its headquarters are in The Hague, FoE was able to bring a case to a Dutch court.

Earlier this year another Dutch court ruled that Shell was responsible for damage caused by oil leaks in the Niger Delta, and ordered the company to pay compensation to farmers.

Shell, however, has said the leaks were the result of "sabotage".

  


Court orders Royal Dutch Shell to cut net emissions by 45%

THE HAGUE, Netherlands (AP) — A Dutch court on Wednesday ordered Royal Dutch Shell to cut its carbon emissions by net 45% by 2030 compared to 2019 levels in a landmark case brought by climate activism groups, which hailed the decision as a victory for the planet.
© Provided by The Canadian Press

The Hague District Court ruled that the Anglo-Dutch energy giant has a duty of care to reduce emissions and that its current reduction plans were not concrete enough.

The decision could set a precedent for similar cases against polluting multinationals around the world. Activists gathered outside the courtroom erupted into cheers as the decision was read out loud.

“The climate won today,” said Roger Cox, a lawyer for the Dutch arm of Friends of the Earth, which was one of the organizations behind the case.

“This ruling will change the world. Worldwide, people are in the starting blocks to take legal action against oil companies following our example,” Cox added.

The Hague court did not say how Royal Dutch Shell should achieve the ordered cutback, saying the energy giant's parent company “has complete freedom in how it meets its reduction obligation and in shaping the Shell group’s corporate policy.”

In a written reaction, Shell said it expects to appeal the "disappointing court decision.”

The company said it is already “investing billions of dollars in low-carbon energy, including electric vehicle charging, hydrogen, renewables and biofuels. We want to grow demand for these products and scale up our new energy businesses even more quickly.”

At a hearing in December, Shell lawyer Dennis Horeman said a ruling against the company could create a situation “in which countless parties can hold each other accountable for their role in that (energy) transition through the courts” and give judges “a central role in an active and delicate political process.”

Shell says it has set “an ambition to be a net-zero emissions energy business by 2050, or sooner.”

The court said in an English language summary of its ruling that Shell was not currently in breach of its obligation to reduce emissions, as the environmental groups had argued, because the parent company was tightening its emissions policy.

But it ruled that Shell's policy “is not concrete, has many caveats and is based on monitoring social developments rather than the company’s own responsibility for achieving a CO2 reduction.”

“Therefore, the court has ordered RDS to reduce the emissions of the Shell group, its suppliers and its customers by net 45%, as compared to 2019 levels, by the end of 2030, through the corporate policy of the Shell group.”

A group of seven environmental and human rights organizations and some 17,000 Dutch citizens filed the case in 2018, calling on the court to order Shell to cut emissions in line with the global goals set out in the Paris climate agreement. That equates to Shell cutting emissions 45% by 2030.

The court ruled on the claims by six of the groups.

The case in the Netherlands is the latest in a string of legal challenges filed around the world by climate activists seeking action to rein in emissions, but it is believed to be the first targeting a multinational company.

One of the first successful climate cases also was in the Netherlands, where the Supreme Court two years ago upheld a 2015 ruling requiring the government to cut emissions at least 25% by the end of 2020 from benchmark 1990 levels.

In February, a Paris court ruled that the French government had failed to take sufficient action to fight climate change in a case brought by four nongovernmental organizations. Last month, Germany’s top court said the federal government must set clear goals for reducing greenhouse gas emissions after 2030.

Donald Pols, director of Friends of the Earth Netherlands, called the ruling in The Hague, “a monumental victory for our planet, for our children and a big leap towards a livable future for everyone."

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Follow AP’s climate coverage at https://apnews.com/Climate

Mike Corder, The Associated Pre
Exxon shareholders elect two outsiders to board; shake up insular culture
By Jennifer Hiller and Jessica Resnick-Ault 
© Reuters/Jim Young FILE PHOTO: An Exxon sign is seen at a gas station in the Chicago suburb of Norridge

HOUSTON/NEW YORK (Reuters) - The first Exxon Mobil directors not appointed by the company include an executive versed in renewable fuels and a "prudent" risk taker and disrupter poised to challenge the oil company's ways, said people familiar with his career.

Activists pressing Exxon to cut spending, boost returns and prepare for a lower-carbon future got a victory on Wednesday when shareholders elected Gregory Goff, a 64-year-old former top executive at Marathon Petroleum and Andeavor, and former Neste Oyj executive Kaisa Hietala. The vote followed a bruising battle led by a hedge fund.

The two face an insular corporate culture renowned for slow-to-change ways. Goff and Hietala will be two voices among a 12-person board that has had six directors handpicked by Exxon's current chief executive Darren Woods.

Goff was unavailable to comment according to spokeswoman for hedge fund Engine No. 1. Hietala could not be immediately reached.

Both have extensive backgrounds in oil refining, a business where Exxon posted a $1.1 billion loss last year. Hietala got Finish refiner Neste into renewables and has been on the boards of investment giant Carlyle Group and paper and packaging firm Smurfit Kappa Group.

Goff in 2010 took over the predecessor to U.S. oil refiner Andeavor, built it through deals and expanded the business internationally. He later sold it to Marathon, giving investors a 1,200% return during his 8-year tenure.

Goff "understands the business very well, both the operational side and the commercial side, said John Auers of refining consultants Turner, Mason & Co. "He's a very sharp, astute guy who takes prudent risks," he said.

In 2013, Goff bought a BP refinery in Carson, California, integrating it with a nearby refinery his company previously purchased from Royal Dutch Shell. Both happened as competitors were exiting the West Coast.

Four years later, he jumped into Mexico's fuel market through terminals, storage, and a retail network fed by its U.S. production. It was a bet that was rivaled that year by BP, Chevron and Exxon.

"His reputation is exceptionally high among investors," said analyst Paul Sankey of Sankey Research. Goff will be "far more concerned with Exxon Mobil’s management structure and lack of entrepreneurship than some misguided attempt to target net-zero," he wrote.

Goff also can succeed as an outsider at Exxon, said a person who has known him for many years but declined to be named for business reasons.

"He is disruptive in a pragmatic and constructive way," this person said. "He's not stuck in the status quo."

(Reporting by Jennifer Hiller in Houston and Jessica Resnick-Ault in New York; editing by Gary McWilliams and David Gregorio)


An activist investor with a 0.02% stake in Exxon ousted 2 of the oil giant's board members in a historic win

mfox@businessinsider.com (Matthew Fox) 2 hrs ago
©Mark Schiefelbein/Getty; Skye Gould/Business Insider

Activist investor Engine No. 1 was victorious in winning at least two board seats on Exxon Mobil's board of directors.

The win was historic given that the first time activist investor built a tiny 0.02% stake in the company.

The proxy fight between the activist investor and Exxon Mobil signals the increased investor attention towards green energy initiatives.

Activist investor Engine No. 1 scored a historic win on Wednesday after it won two board seats on Exxon Mobil's board of directors.

A bitter proxy fight between the major oil company and the small activist investor circled around green energy initiatives, executive pay, and the diversification of Exxon's fossil fuel business.

The win took many by surprise given that Engine No. 1 is a first time activist investor with just a 0.02% stake in Exxon. Typical activist investor campaigns have been led by well-known Wall Street figures who buy a position upwards 10% in the targeted company.

The win by Engine No. 1 highlighted the growing appetite among investors for corporations to tackle climate change and green energy initiatives head-on. Many top institutional investors view addressing the climate as essential for a successful long-term business, including BlackRock founder and CEO Larry Fink.

Exxon was staunchly against Engine No. 1's two board nominees, Gregory Goff and Kaisa Hietala. Exxon CEO Darren Woods refused to meet with the nominees and told shareholders that voting for them would "derail our progress and jeopardize your dividend," according to Bloomberg.

Just two-days before today's annual shareholder meeting, the company pledged that it would add two new directors to its board to counter-balance the potential addition of Goff and Hietala.

Other fossil-fuel companies have seen a revolt among shareholders in vote proposals. Chevron, DuPont de Nemours, and ConocoPhillips have all seen their shareholders issue rebukes to management by voting in favor of various proposals centered on climate change, Bloomberg highlighted.

Two board seats on Exxon remain undecided, and one or both of them could still potentially be awarded to Engine No. 1. Whether Woods will take the advice of the new board members and pivot towards a greener future remains to be seen.


Climate advocates win seats on Exxon's board
BY RACHEL FRAZIN -THE HILL- 05/26/21 


© iStock

Climate advocates gained influence at oil giant ExxonMobil after two candidates nominated by an activist firm won seats on the company’s board on Wednesday.

Preliminary votes showed two of Engine No. 1's candidates winning seats after being elected by company shareholders, Exxon said in a statement.

Those two, Gregory Goff and Kaisa Hietala, could be joined by a third, as vote results for Engine No. 1 nominee Alexander Karsner were among those that were too close to call.


Engine No. 1 has called for the company to make more significant investments in clean energy, using stricter approval criteria for new expenditures and an “overhaul” of management compensation.

In a presentation outlining its case, the firm argued that Exxon did not position itself for creating long-term value and that its rhetoric doesn’t address long-term business risks from emissions.

The small firm’s victories come after it was reported that their bid would have support from larger firms like BlackRock, the company’s second-biggest shareholder.

The election serves as a blow to the company’s leadership, who have opposed their campaign.

“To put it bluntly, we have a plan that will grow earnings and cash flow, pay and grow the dividend, fund future growth and position the company to have a meaningful role in the energy transition. Engine No. 1 does not,” CEO Darren Woods and lead director Kenneth Frazier wrote in a letter to shareholders earlier this year.

OVERNIGHT ENERGY: Climate advocates win seats on Exxon's board | EPA...
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The Exxon statement also said that the board will reconsider proposals from shareholders that got approval of the majority, including one requesting a report on lobbying and another requesting a report on climate lobbying.

In the statement, Woods welcomed all of the board members who were either elected or reelected, and said the company has "been actively engaging with shareholders and received positive feedback and support, particularly for our announcements relating to low-carbon solutions."

—Updated at 4:14 p.m


New hedge funds bask in Exxon's climate spotlight

By Ross Kerber and Svea Herbst-Bayliss 
© Reuters/Brendan McDermid 
 Darren Woods, Chairman & CEO, Exxon Mobil Corporation attends
 a news conference at the NYSE

(Reuters) - The successful board challenge against Exxon Mobil Corp casts a spotlight on two recently launched sustainability-focused investment firms that took opposite sides in the high-stakes battle: Engine No. 1 and Inclusive Capital Partners.

Engine No. 1 set the spark in January by formally nominating four directors to Exxon's board, accusing it of not moving fast enough to diversify away from fossil fuels. Inclusive Capital Partners sided with Exxon after its founder Jeffrey Ubben joined the energy giant's board in March, and argued it was already working with the company to improve its technology in areas such as carbon capture.

Both funds were launched less than a year ago. Their quick ascendance to Exxon's board underscores how Wall Street's new focus on environmental, social and corporate governance (ESG) is opening doors for activist hedge funds at some of the world's largest companies.

Engine No. 1 was launched by hedge fund veterans Charles Penner and Chris James in December 2020. Penner spent much of his career at activist hedge fund Jana Partners, where he quarterbacked a campaign to get iPhone maker Apple Inc to create tools for parents to track and limit the use of children's' smartphones.

Engine No. 1 reported as of the end of March owning 917,400 Exxon shares valued at $51 million - a sum that traditionally would barely get a phone call returned from a company like Exxon, whose current market capitalization stands around $250 billion. Yet thanks to the backing of some of the biggest Wall Street fund managers such as BlackRock, it has won at least two seats on Exxon's board.

Lawyers and industry analysts who worked with Penner said he had immersed himself for years in researching how to take on the oil giant and speaking to other Exxon shareholders.

Engine No. 1 "did an effective job of making their case, and it appears that investors are saying that with their votes," said Tim Youmans, engagement leader for EOS at Federated Hermes, which advises clients how to vote.

Ubben founded Inclusive Capital in June of last year after leaving ValueAct Capital, the activist hedge fund he launched in 2000. He had a built a reputation for pushing for change outside the limelight and working more collaboratively with management than many other activists.

He has described Inclusive Capital as a return-driven environmental and social activist firm and raised concerns about the sustainable products being sold by big index funds. In a recent regulatory filing the firm said it owned 1.6 million share of Exxon, valued at $93.6 million.

Ubben defended Exxon against Engine No. 1's criticism, and as of Wednesday morning Ubben was still calling top Exxon investors to make the company's case, according to people familiar with the matter. While the result is a setback for Ubben, he gets to keep a board seat at Exxon he may not have gained if the oil major was not seeking to defend itself against Engine No. 1 in the first place.

Representatives for Ubben did not immediately comment for this article.

A spokesman for Penner referred to his statement at Wednesday's annual meeting in which he said the firm has "learned that change can happen anywhere. It will always be a long shot, but it will always be worth it."

In a statement on its website on Wednesday a top Exxon investor BlackRock Inc said it backed three of the four dissident nominees.

Those directors, "together with Mr. Ubben, bring the fresh perspectives and relevant transformative energy experience to the Board that will help the company position itself competitively in addressing the risks and opportunities presented by the energy transition," BlackRock said.

(Reporting by Ross Kerber in Boston; Additional reporting by Svea Herbst-Bayliss in Boston; editing by Edward Tobin)

 

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Feds couldn't keep up with Indigenous communities' demand for nurses, paramedics: AG


OTTAWA — The federal government was unable to meet more than half of the demands for nurses and paramedics from Indigenous communities and organizations during the COVID-19 pandemic, says the auditor general in a report released Wednesday
.
© Provided by The Canadian Press

Karen Hogan told a news conference following the report release that Indigenous Services Canada had not addressed the ongoing shortage of health care workers in Indigenous communities.

"When you already start with a shortage of health care workers, the pandemic makes that gap even worse," she said.

"This long-standing issue, though, is one that does need to be addressed."

Hogan noted the department expanded access to contract nurses and paramedics to all Indigenous communities and streamlined its hiring processes.

"They were able to hire more nurses in the audit period than they had hired the year before," she said.

But with increasing demand, the department was unable to meet more than half of the 963 of the requests for such personnel to be made available.

Hogan said the department employs primary health care workers to deliver direct health care services in 51 remote or isolated First Nations communities.

The report said nurses in these communities work out of nursing stations or health centres and are often the only health care providers working on site.

They work in pairs or small groups, often with little or no on-site support from other health care professionals, according to the report.

The department also provides funding to First Nations communities and First Nations health authorities so they can employ health care workers to offer services.

Hogan also found that Indigenous Services Canada didn't have fulsome data on how much personal protective equipment it had available when the pandemic began.

"The lack of complete and accurate data on the contents of the PPE stockpile made it difficult for the department to monitor its inventory levels and determine its needs," Hogan said in her audit.

The department also didn't have enough of some items, including gloves and hand sanitizer, but it was able adjust its approach to respond to the needs of the Indigenous communities.

"We found weaknesses in the way that Indigenous Services Canada managed its stockpile of PPE," she said.

Hogan said the department was able to step up with these supplies and ship them to Indigenous communities and groups when provinces and territories were unable to do so.

"The demand didn't really hit Indigenous Services Canada in a significant way until the bulk procurement had started federally," she said.

"Indigenous Services Canada was receiving two per cent of all bulk procurements. We found throughout the audit that they were able to meet all of their requests that they received from Indigenous communities throughout the pandemic."

Indigenous Services Minister Marc Miller said Wednesday that more than 75 per cent of Indigenous adults have now received at least one dose of COVID-19 vaccine.

Miller said Indigenous people living in Manitoba, which has the highest rate of new coronavirus infections in the country, can now book their second vaccine shot.

He said there are about 741 active cases in First Nations communities.

Dr. Tom Wong, chief medical officer of public health at Indigenous Services, said active case counts have dropped drastically over the past couple months.

This report was first published by The Canadian Press on May 26, 2021.

---

This story was produced with the financial assistance of the Facebook and Canadian Press News Fellowship.

Maan Alhmidi, The Canadian Press

cbc.ca
Auditor general's report says Indigenous Services must work to fix nursing shortage
Duration: 01:31 
Auditor General Karen Hogan tells Power & Politics that Indigenous Services Canada must work with remote and isolated First Nations to address nursing shortages.

Indigenous Services needs to better manage its PPE stockpile, says auditor general

Olivia Stefanovich
CBC NEWS 
© Ivanoh Demers/CBC A medical worker wears a surgical mask, face shield and gloves while conducting a COVID-19 test on an unidentified man in Montreal.

Indigenous Services Canada should work with remote and isolated First Nations to address a nursing shortage and review the management of its personal protective equipment (PPE) stockpile, says Canada's auditor general.

In an audit tabled in Parliament today, Auditor General Karen Hogan looked at whether the federal department did enough to help First Nations, Inuit and Métis communities and organizations respond to the pandemic by supplying enough PPE and sufficient numbers of health care workers in a timely and coordinated matter.

Although the department expanded access to its contract nurses to all Indigenous communities, created new contracts for nurses and paramedics and streamlined its hiring processes, Hogan said it was unable to meet more than half of the 963 requests for extra nurses and paramedics that it received.

Hogan said the department lacked complete and accurate data on its PPE stock. It also didn't have enough of certain items, such as gloves and hand sanitizer, to meet demand at the beginning of the pandemic.

Still, the audit found the department secured additional PPE starting in April 2020 and quickly delivered it to communities and organizations when provinces and territories were unable to do so.

Hogan noted the department expanded access to its stockpile to include police officers, community members who tested positive for COVID-19 and those caring for ill family members.

From March 2020 to January 2021, the department responded to 1,622 requests for PPE in what the auditor found to be a timely manner — within an average of 10 calendar days, the audit said. Most of the time, the department also met its two-business-day service standard for approving and sending requests to the warehouse for shipping.
Vaccinate rate 75 per cent among Indigenous adults

Hogan said several factors contributed to an ongoing nursing shortages in many communities, including the challenging nature of the work, the diverse skill set required to work in remote and isolated communities, and inadequate housing.

Hogan said Indigenous Services Canada should work with the 51 remote and isolated First Nations it supplies nurses to so it can address shortages.

The department said it agreed with Hogan's findings. It promised to work with its Nursing Leadership Council to find new approaches.

It also said it is reviewing its PPE inventory and will maintain its stockpile.

"They've done a decent job in terms of providing supports for our member nations as well as ensuring that there are adequate supplies of PPE, and also making us a priority when it comes to the vaccines," said Vice-Chief David Pratt of the Federation of Sovereign Indigenous Nations, which represents 74 First Nations in Saskatchewan.

The vaccination effort in Indigenous communities reached a milestone this week: 75 per cent of Indigenous adults have received their first dose, Indigenous Services Minister Marc Miller told a press conference in Ottawa.

Since January, case counts have dropped by over 85 per cent on reserves and the number of Indigenous communities with significant outbreaks has seen a similar reduction, said Dr. Tom Wong, chief medical officer of public health at Indigenous Services.

As of Tuesday, there were 741 cases and 333 deaths on reserves. The Indigenous COVID-19 mortality rate is less than two thirds that of the non-Indigenous population, Miller said.

"I'm encouraged to see the overall number of cases dropping as the vaccination rates increase," Miller said.

"However, the pandemic is not yet behind us."

Some Indigenous communities say the government came through for them on PPE supplies — while others turned to alternative sources.

VIO Volunteers, a not-for-profit corporation, was created in the spring of 2020 to respond to the needs of Canada's northern, remote Indigenous communities.

Since then, it's delivered just over 1.7 million surgical masks, 9,450 face shields and 7,662 litres of hand sanitizer to 206 Indigenous communities and organizations that support the urban Indigenous population in seven provinces.

In a written question tabled in the House of Commons last fall, Conservative Indigenous Services critic Gary Vidal asked for details on the amount of PPE delivered by the department.

When VIO Volunteers president Claudine Santos compared the list to her records, she said, she realized her volunteer organization was outpacing the government in providing masks to communities — in some cases doubling the federal contribution.

'We didn't ask to see the math'


Santos, who works as director of parliamentary affairs in Conservative Sen. Dennis Patterson's office in Nunavut, said she believes it's because VIO Volunteers took an approach to requests from Indigenous communities that differed from the one used by the bureaucracy.

"We didn't ask to see the math," Santos said. "They came to us and they said, 'This is what we need.' We said, 'If it is within our power to give it to you, we will give it to you.'"

In some instances, Santos said, the organization stockpiled enough masks to supply communities for six months to a year.

"It isn't fair that we impose our own algorithms and our own standards onto these communities," Santos said.

"We need to really embrace the fact that they are led by strong, capable people who really know and understand intimately the kind of needs that their communities have."

Santos said there needs to be a shift in the relationship between Indigenous communities and the federal government to empower them to make their own decisions.

She said VIO Volunteers is winding down operations and making space for Indigenous-led initiatives, such as those funded by the Indigenous Peoples Resilience Fund, to take over.

Santos also said the government needs to take responsibility to ensure communities are protected from predatory practices employed by some companies seeking to take advantage.

"This is what happens when there isn't enough conversation and there isn't enough support," Santos said.
© Sean Kilpatrick/Canadian Press Indigenous Services Minister Marc Miller's department is the subject of the auditor general's performance review.

Valerie Gideon, senior assistant deputy minister at the First Nations and Inuit Health Branch at Health Canada, defended the government's efforts to secure PPE.

Gideon said the department had to navigate global shortages to respond to urgent requests. She said the department responded to requests without worrying about whether they fell under another government's jurisdiction.

Gideon said the department used what she called a hybrid model to supply PPE from its own stockpile, from the Public Health Agency of Canada's national emergency stockpile and through funding for Indigenous partners and organizations.

"That hybrid model was very successful in ensuring that there were multiple strategies for acquiring and maintaining an ongoing supply of PPE," Gideon said.

Gideon said the department has put in place an online system to manage PPE requests.

In a statement to CBC News, Miller's office said its top priority has been the health, safety and well-being of First Nations, Inuit and Métis people since the onset of the pandemic.

Federal procurement minister accepts the auditor general's findings


It's set aside more than $4.2 billion to help Indigenous communities prevent and fight COVID-19, and promised an additional $1.2 billion in the spring federal budget.

The government also pledged $354 million over five years in the budget to increase the number of nurses and other medical professionals in remote and isolated First Nations.

The department acknowledged that it has "learned lessons that will inform the Department's continued response efforts and better prepare in case of a future pandemic.

"Indigenous Services Canada is committed to continuing and improving on our work, in full partnership with our Indigenous partners."

Later Wednesday, Miller told reporters that he only became minister of Indigenous Services in November — a few months before the pandemic kicked off — and that his department "adapted and overcame" when confronted by challenges that existed across government in procurement.

"This isn't about being perfect. It's about realizing ... the cards that have been dealt to us and working with providers in record time, trying to outpace a virus that moves faster than government. And that's what we did," Miller said.

Miller also addressed one of the report's findings — that people living on-reserve were less likely to be hospitalized (4.5 per cent compared to 7.5 per cent) or die (1.2 per cent compared to 2.2 per cent) because of COVID‑19 compared to the general Canadian population.

He said that statistics coming in from the U.S. Centers for Disease Control suggested Indigenous populations faced a greater risk of hospitalization than the general U.S. population, so his department and Indigenous communities took steps to ensure Canada's First Nations were better prepared.

"Communities reacted well with the resources they had and implemented their pandemic plans with some success," Miller said.

"The on-reserve portrait is positive but its a testament to the work that's been done and the extra precautions that Indigenous leadership took and the seriousness with which they approached both the first, second and now the third wave."



Canada knew of PPE supply issues ‘over a decade’ before COVID-19 but was still unprepared: AG

Amanda Connolly
GLOBAL NEWS
26/5/2021

For more than 10 years before the COVID-19 pandemic hit, Canadian public health officials knew there were problems with how the country managed its emergency medical stockpile – but failed to act.
© Provided by Global News A person wears PPE (personal protective equipment) while screening people for the COVID-19 virus in Kingston, Ontario on Wednesday, February 17, 2021. THE CANADIAN PRESS IMAGES/Lars Hagberg

In a new report issued Wednesday, Auditor General Karen Hogan said that failure to fix the problems ahead of time meant Canada was not as prepared as it could have been for the surge in demand for precious personal protective equipment last year.

“The audit found that at the onset of the pandemic, PHAC lacked some of the systems and practices it needed to properly manage and operate the country’s stockpile of emergency equipment,” Hogan wrote in her report.

“The Agency had known for over a decade that these issues existed. As a result, it was not as prepared as it could have been to respond to the increased demand for personal protective equipment and medical devices that came from the provinces and territories.”

READ MORE: Canada’s efforts to buy pandemic PPE to be assessed by auditor general

But she said despite those challenges, the Public Health Agency of Canada (PHAC) was able to act quickly once the pandemic hit and procure critical gear, such as N95 respirators, medical gowns, testing swabs and ventilators for the provinces and territories.

Hogan said what was key to the agency’s adaptation was quickly pivoting to a bulk-buy strategy and speeding up quality assurances while Health Canada streamlined its licensing application process. Crucial to that was the support from Public Services and Procurement Canada, which Hogan noted moved quickly to shift to bulk buying amid the global uncertainty.

“The department accepted some risks in order to procure large quantities of equipment in a market where the supply could not always meet demand,” she wrote of the procurement strategy.

“Otherwise, fewer pieces of equipment would have been available to provinces and territories.”



Deputy Prime Minister Chrystia Freeland compared the global market for personal protective equipment to the “Wild West” in the early days of the COVID-19 pandemic.

Hogan said the frenzy of that market made it hard to assess whether the government got value for money in its purchasing, adding the audit focused more on whether the government took the right steps to secure personal protective equipment within that situation.

She added that just because the government did manage to secure that critical gear does not mean that officials solved the underlying problems -- they simply worked around them.

“If you’re asking me today if they have addressed those longstanding issues, the answer is no," she said.

"There is the need now to deal with those issues post-pandemic.”


Hajdu reacts to auditor general report on government's PPE preparedness before and during the pandemic
Duration: 01:33 


Auditor finds national PPE stockpile unprepared for pandemic, despite warnings

Ryan Tumilty 
© Provided by National Post Auditor General Karen Hogan is seen during a news conference following the tabling of reports in Ottawa, Thursday March 25, 2021.

Canada’s National Emergency Strategic Stockpile was unprepared to deal with the pandemic due to “long-standing unaddressed problems” that had been known for more than a decade when COVID-19 hit, according to the auditor general.

In a report released Wednesday, Auditor General Karen Hogan reviewed the national stockpile and efforts to purchase personal protective equipment and found Canada was ill-prepared to respond to the pandemic.

“As a result of long-standing unaddressed problems with the systems and practices in place to manage the National Emergency Strategic Stockpile, the Public Health Agency of Canada was not as prepared as it could have been,” she wrote.

News reports have already documented how millions of masks were tossed in the trash before the pandemic and how the stockpile was unable to meet early demands from provinces and territories when COVID first emerged in spring of 2020.

Hogan’s report said the government rebounded well from the early part of the pandemic, but the stockpile issues were well known and had been left unaddressed for more than a decade.

“We found that the unaddressed federal stockpile issues had been brought to the agency’s attention through a series of internal audits dating back to at least 2010,” she said in her report.

Canada may find it challenging to reach herd immunity from COVID-19, experts say

Hogan found the stockpile had weak or non-existent systems for tracking inventory and expiry dates and made decisions on what to buy based on its budget, not on what might be needed. She said when doing the audit they couldn’t determine what was actually available when COVID hit, because the inventory was so weak.

“What we found is that the quality of the data was such that we couldn’t rely on what the agency estimated was the stock on hand.”

She said the government pivoted quickly to respond to the problem, but the whole point of a stockpile is to be prepared.

“You don’t wait for a rainy day to rush out and buy an umbrella. You take the time, you invest in the umbrella in your closet and that’s exactly what the National Emergency Strategic Stockpile should be.”

Health Minister Patty Hajdu said she welcomed the input from the auditor. Asked directly when she realized Canada didn’t have sufficient reserve supplies of PPE Hajdu didn’t answer, but said the problem went beyond just the supplies.

“It really wasn’t just about the stock that was contained in the stockpile but it was about the processes that the national stockpile was using to support provinces and territories.”

Hajdu said the government has done a lot to address problems already, but work is underway to ensure the stockpile is rebuilt and ready for future emergencies.

“The planning work is really about how to ensure that we have a national stockpile, that will be responsive and flexible enough to be able to expand quickly, but also to have the right equipment.”

The audit also looked at the government’s purchase of PPE after the pandemic hit and found that it generally did well. Hogan found some areas where the government took on more risk than usual, but found that understandable in the pandemic.

“The department accepted some risks in order to procure large quantities of equipment in a market where the supply could not always meet demand. Otherwise, fewer pieces of equipment would have been available to provinces and territories.”

© Provided by National Post Federal Health Minister Patty Hajdu.

Hogan said the department didn’t do enough to mitigate the risks it took on with advanced payments and speeding up procurement processes and should have done more, but she also acknowledged the difficult environment of buying PPE in a pandemic.

“We found that these risks were not offset by any planned mitigation strategy. As a result, while the department was able to speed up the procurement process, it could not always demonstrate that it exercised the needed oversight.”

The government launched a $81 million lawsuit recently against a Montreal firm, alleging it failed to deliver masks that met the government’s quality control standards.

Conservative MP Michelle Rempel Garner suggested the auditor’s report demonstrates the government moved too slowly purchasing PPE.

“The Trudeau Liberals waited 10 days after the WHO declared COVID-19 a ‘public health emergency of international concern’ before it announced that it would be bulk purchasing PPE,” she said in a statement.

The auditor however found no issue with the time it took for the government to begin bulk purchases for provinces and territories.

“The agency quickly moved to bulk purchasing to meet the unprecedented demand for PPE and medical devices, and it outsourced much of the warehousing and logistical support it needed.”


• Email: rtumilty@postmedia.com | Twitter: ryantumilty



EPA officially nixes Trump 'secret science' rule

BY RACHEL FRAZIN -THE HILL- 05/26/21 

The Environmental Protection Agency (EPA) has finalized a rule to undo the Trump administration's "secret science" regulation, which restricted the agency's ability to consider certain studies.

The agency’s action formally implements a court decision from February that threw out the rule on the grounds that a prior ruling had eliminated its legal basis.

“This action ensures that EPA can utilize the best available science and data to support our work to protect the public from pollution,” EPA Administrator Michael Regan said in a statement Wednesday.


“The Biden-Harris Administration has an unwavering commitment to scientific integrity, and to listening to experts and scientists so we can move forward with urgency to deliver on EPA’s mission,” he added.

The Trump-era rule limited the agency’s use of studies that don’t make their underlying data publicly available.

The Trump administration billed it as a transparency measure, but critics argued that it would undermine the use of important public health studies that keep their data private for reasons like privacy.

The Trump rule didn’t eliminate the use of all studies with private data but gave preference to those with public data.

The new rule implementing the court decision will become effective once it is published in the Federal Register.

The "secret science" rule was vacated through a pair of court rulings earlier this year.

In a January ruling, federal judge Brian Morris ruled against the EPA's classification of the rule as procedural, rather than substantive, which allowed it to become effective immediately rather than having to wait 30 days under the agency's "housekeeping authority."

In the subsequent decision, the judge said he would have to vacate the rule in light of his prior decision because the housekeeping authority was the legal justification underpinning the rule, so without it, there was not a legal basis for the regulation.