Director Journal – July/August 2022

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Director Journal

A P U B LI CATI O N O F TH E I N STITUTE O F C O R PO R ATE D I R ECTO R S

IS YOUR AGENDA OUTDATED? Climate risk, hybrid work, inclusion – it’s a race for boards to keep up

JULY/AUGUST 2022


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CONTENTS

Director Journal Editorial

Departments

EDITOR Simon Avery

Editor’s note

ART DIRECTOR Lionel Bebbington

Sprinting into the future

CONTRIBUTORS Jeff Buckstein, Robin Cardozo, Matt Fullbrook, Virginia Galt, J.P. Moczulski, Gordon Pitts, Serge Rivest, Barbara Smith, Prasanthi Vasanthakumar, Shirley Won

CEO insights

Executive Lead

Horror’s big comeback; feeling the heat;

Heather Wilson Senior Director, Policy and Research

Institute of Corporate Directors Rahul Bhardwaj - President and CEO Ken Gibson - Chief administrative officer Ady Jonsohn - Vice-president, education Jan Daly Mollenhauer - Vice-president, sales, marketing and membership Kathryn Wakefield - Vice-president, chapter relations

Finally Content Eric Schneider - President Abi Slone - Creative director Dana Francoz - Advertising sales dana.francoz@finallycontent.com 416-726-2853

Rahul Bhardwaj on the need for dynamic leadership

Dispatches ghosting employers; bringing your role self

Issues How to get serious about diversity

Directors’ dilemma Heather Wilson on how to review your organization’s code of conduct

Directors on the move Recent board appointments across the country

Parting shot Summer Fridays are hot

04 05 06 11 12 44 50

COVER PHOTOGRAPH: AIRFOCUS/UNSPLASH

Features Building trust and confidence in Canadian organizations is imperative. At the Institute of Corporate Directors (ICD), we believe that this starts with the right leadership and good governance. Directors must lead by being informed, prepared, ethical, connected, courageous and engaged with the world. In the pages that follow, you will find thoughtful and provocative articles that explore these essential leadership qualities.

ICD Fellow insights

Bâtir la confiance envers les organisations canadiennes est primordial. À l’Institut des administrateurs de sociétés (IAS), nous croyons que cela commence par un bon leadership et une bonne gouvernance. Les administrateurs doivent gouverner en étant informés, préparés, intègres, connectés, courageux et ouverts sur le monde. Dans les pages qui suivent, vous trouverez des articles réfléchis et provocateurs qui explorent ces qualités de leadership essentielles.

Your employees have left the building, forever

Wendy Kei is regenerating the leadership ranks at Ontario Power Generation

Adapting to a new environment The digital economy calls for some younger talent around the table There’s a push to make boards climate-literate

2701 – 250 Yonge Street, Toronto, Ontario M5B 2L7 T: 416-593-7741 F: 416-593-0636 E: info@icd.ca

Recommended reading

ISSN 2371-5634 (Print) www.icd.ca ISSN 2371-5650 (Online)

In The Nowhere Office: Reinventing Work and the

The ICD welcomes a diversity of opinion for inclusion in Director Journal. The contents of this publication do not necessarily reflect the opinions of the ICD, its partners, its sponsors, or its advertisers. Readers are encouraged to consider seeking professional advice and other views. To request reprints of articles, please contact info@icd.ca

Workplace of the Future, entrepreneur and author Julia

14 24 32 38 46

Hobsbawn argues that the traditional leadership structure will dissolve in tomorrow’s workspace

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EDITOR’S NOTE

Sprinting into the future A key mark of successful directors is their openness to change IN THE TUG-OF-WAR between office manDANS LA LUTTE ACHARNÉE que se livrent agers looking for a return to the way things aujourd’hui les gestionnaires qui cherchent used to be and officer workers who want a à retourner au bon vieux temps et les travirtual or hybrid workspace, change is going vailleurs de bureaux à la recherche d’un to win. With the arrival of cheap videoconlieu de travail virtuel ou hybride, c’est le ferencing tools and collaborative software changement qui l’emportera. Avec l’arrivée platforms, and the pandemic serving as a catd’outils de visioconférence et de platealyst, the traditional way of working is evolvformes de collaboration abordables, la paning for a vast segment of the population. Now démie servant de catalyseur, les modes de the challenge is for organizations and their travail évoluent pour un vaste segment de leadership to keep up. la population. As the ICD’s Prasanthi Vasanthakumar reComme le rapporte Prasanthi Vasanthaports on page 24, the remote work model rekumar en page 24, le modèle de travail à quires that boards ensure their organizations distance exige des conseils qu’ils fassent make the right changes and investments. Has en sorte que leurs organisations instaurent management, for instance, invested in supportles bons changements et fassent les bons Simon Avery ive technologies and redesigned hiring and perinvestissements. Par exemple, la direction Editor formance management processes for the times? a-t-elle investi dans des technologies hasavery@icd.ca Developments occurring right now in the bilitantes et des processus adéquats d’emworkplace go beyond addressing where peobauche et de gestion de la performance? ple should be doing their work. Our profile of Les développements qui se produisent dans les milieux de travail vont bien auICD Fellow Wendy Kei, on page 14, illustrates delà du lieu où les gens devraient accomhow quickly diversity is coming to the senior plir leurs tâches. Notre portrait de la Fellow de l’IAS Wendy Kei, en ranks of leadership within some businesses. As chair of Ontario page 14, illustre à quel point la diversité s’installe rapidement dans Power Generation, which supplies more than half the province’s les rangs élevés du leadership chez certaines entreprises. À titre de electricity needs, Kei has led an effort to turn words into action. présidente du conseil d’Ontario Power Generation, qui fournit la Among the independent directors, 60 per cent are now women, moitié de l’électricité de l’Ontario, elle est passée de la parole aux two identify as visible minorities and one as Indigenous. The speed actes. Parmi les administrateurs indépendants de l’organisation, at which the OPG board adopted change has set the tone for the rest 60 pour cent sont aujourd’hui des femmes, deux font partie des of management, says CEO Ken Hartwick. It also provides the rest of minorités visibles et l’un est Autochtone. La rapidité avec laquelle Corporate Canada a look into the future. le conseil a adopté le changement a donné le ton au reste de la diAs efforts to achieve diversity and inclusion gain speed, so has rection, affirme le chef de la direction Ken Hartwick. the breadth of the movement itself. Many organizations across the À mesure que les efforts en faveur de la diversité gagnent en racountry, including the Big Five banks, are realizing that the new pidité, le mouvement prend de l’ampleur. Plusieurs organisations, economy requires them to prepare the next generation of leaders in dont les cinq plus grandes banques canadiennes, constatent que la the boardroom today. In her article “Out of the shadows” on page nouvelle économie exige d’elles de préparer la prochaine généra32, business writer Virginia Galt looks at how some businesses are tion de leaders à prendre dès aujourd’hui la relève dans les conseils. using advisory committees and other methods to give young talDans son article intitulé « Sortir de l’ombre », en page 32, Virginia ent exposure to high-level decision making while at the same time Galt examine comment certaines entreprises utilisent les comités benefiting from their fresh ideas. consultatifs et d’autres instances pour initier les jeunes talents à la As these stories make clear, there’s no going back to the workprise de décisions de haut niveau. DJ place of 2019. Nor should we try to. DJ

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CEO INSIGHTS

Perpetual motion

ILLUSTRATIONS BY AARON MCCONOMY

Directors should be prepared for dynamic change THERE IS AN EMERGING mantra in corIL EXISTE UNE SORTE de mantra émergent porate boardrooms today: If you think that au sein de nos conseils. Si vous croyez que les things are fast now, remember this is the choses vont vite aujourd’hui, rappelez-vous slowest they’ll ever be. qu’elles ne seront plus jamais aussi lentes. Technical disruptions we anticipated three Les perturbations technologiques que to five years ago have rapidly become a renous anticipions il y a trois à cinq ans sont ality, thanks to the changes forced on us by rapidement devenues réalité, en raison des Covid-19. As we slowly emerge from the panchangements imposés par la Covid-19. Au demic, the uncertainties it created are being moment où nous émergeons lentement de replaced by new ones, including supply chain la pandémie, les incertitudes qu’elle a susdisruptions, inflation, rising interest rates, citées sont remplacées par de nouvelles, Russia’s war against Ukraine, and growing concernant notamment des perturbations concern that a global recession looms. de la chaîne logistique, l’inflation, la hausse So, what key attributes must boards emdes taux d’intérêts, l’invasion de l’Ukraine body for their organizations to survive and et l’inquiétude croissante qu’une récession Rahul Bhardwaj prosper in these times? I put that question mondiale pointe à l’horizon. LL.B, ICD.D recently to a delegation of corporate diDonc, quels attributs essentiels les conPresident and CEO, rectors visiting the Institute of Corporate seils doivent-ils incarner pour que leurs The Institute of Corporate Directors Directors from Brazil. There was strong organisations survivent et prospèrent? J’ai consensus among us that the three most posé la question à beaucoup d’administraimportant characteristics are: resilience, teurs, dont récemment à une délégation innovation and courage. d’administrateurs brésiliens en visite. Il y The ICD explored some of these ideas avait un fort consensus parmi eux selon earlier at our national conference in May, entitled “How to Govern lequel les trois caractéristiques les plus importantes sont la résilwith Courage.” One of the strongest messages to emerge from the ience, l’innovation et le courage. online event was that the greatest risk for an organization today is L’IAS a exploré certaines de ces idées durant notre congrès naseeking safety by taking no risks at all. tional tenu en mai et intitulé : « Comment diriger avec courage? » Perhaps the most courageous step a leader can take is to move L’un des messages les plus forts à émerger de l’événement en ligne beyond a mindset of competition to one of greater collaboration. fut que le plus grand risque aujourd’hui pour une organisation est Competition may have built this world, but collaboration is the way de rechercher la sécurité en ne prenant aucun risque. forward – for businesses, not-for-profits and governments. Le geste sans doute le plus courageux qu’un leader peut poser The ICD exists to help the Canadian director community collecconsiste à aller au-delà de l’esprit de compétition pour embrasser tively convene, converse and collaborate on developing solutions une collaboration accrue. La collaboration demeure la voie de l’avethat assist boards in making better decisions. The height of collabnir – pour les entreprises, les OBNL et les gouvernements. oration is the sharing of knowledge, which we enable through our L’IAS existe pour aider la communauté des administrateurs cavibrant community events, conferences and courses. nadiens à se réunir, à dialoguer et à collaborer à l’élaboration de As I engage with members, I encounter pragmatic and visionary solutions pour aider les conseils à prendre de meilleures décisions. directors who are stretching beyond their comfort zones. They are all En discutant avec nos membres, je rencontre des administrateurs operating in an environment where societal expectations of corpopragmatiques et d’autres visionnaires qui se déploient au-delà de rations are evolving and orthodox corporate governance is shifting. leur zone de confort. Nous ne savons pas ce que l’avenir nous réWe don’t have a crystal ball, but it’s clear that accelerated change and serve, mais il est clair que le changement accéléré et l’incertitude greater uncertainty will demand dynamic leadership. DJ accrue exigeront un leadership dynamique. DJ

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COMPILED BY Prasanthi Vasanthakumar

Dispatches A digest for diligent directors

WHY HORROR IS MAKING A COMEBACK READERS ARE REDISCOVERING their appetite for ghosts, zombies and murderers. According to Publishers Weekly, sales of horror stories jumped 16.6 per cent in 2019. In 2020, Goodreads announced the genre was suddenly among the most anticipated books. Why the renewed interest? According to Danny Jacobs in The Walrus, horror may have had its heyday in the seventies and eighties. Following the success of bestsellers like The Exorcist, authors churned out a grisly slew of stories. Two decades later, it lost its lustre owing to a saturated market and psycho crime thrillers. Bookstores snuffed out their horror sections like a bad smell. Today, hit films like Jordan Peele’s Get Out may be reinvigorating the genre. Contemporary horror is also more than things that go bump in the night. It’s about nuance and diversity, and it explores topics such as toxic masculinity, mental illness and the predatory nature of reality TV, says Jacobs. It’s also a sign of the times. According to horror writer Stephen King, the horror genre finds national phobic pressure points and expresses people’s fears. Arguably, our own world is a horror show, one plagued by a global pandemic, the threat of nuclear war, a worsening climate emergency, ever-ballooning housing bubbles and burned-out workers. “Perhaps this is the best time for the genre because it is an awful time for us,” writes Jacobs.

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NEWS

FEELING THE HEAT

PHOTOGRAPHY BY GEORGI KALAYDZHIEV/UNSPLASH (LEFT), ICONS BY NOUN PROJECT (TOP RIGHT)

According to a new Deloitte survey, climate change is a top concern weighing on younger generations. Nearly half of Gen Zs (48 per cent) and millennials (43 per cent) say they have pressured their employers to take climate action. Specifically, these workers want investments in visible, everyday sustainable practices that they too can partake in. Lower on their list of priorities are biggerpicture changes, such as committing to net-zero emissions and using social impact pension providers. For companies, this could mean mapping out a hierarchy of climate actions to pursue and communicate.

Ban single-use coffee cups from the workplace.

Offer green benefits like electric car subsidies, incentives to use public transport, and bike-to-work programs.

Train employees to make a positive impact on the environment in everyday activities.

Encourage employees to make better environmental choices, such as by holding contests to see who can most reduce their environmental footprint.

Source: The Deloitte Global 2022 Gen Z and Millennial Survey

BRANDING REACHES THE FINAL FRONTIER Elon Musk wants your attention, which is why he’s proposing to send company logos into space. Here on Earth, Musk is making sure his own company’s logos can be seen by anyone flying overhead. The solar panels atop Musk’s SpaceX headquarters are arrayed around a giant X shape, while the panels on the roof of his new Gigafactory in Texas spell out the word Tesla. Others have similarly flashy logos. Disney touts a solar farm in the shape of Mickey Mouse’s head, and Target has two solar arrays in the form of its bull’s-eye logo. As solar energy heats up in the United States, rooftop solar panels are doing double duty, sustainably powering buildings while showing off brands to those in high places – including the satellite cameras behind Google Maps, Waze and other popular navigation apps. “Most people use maps to search for locations, so if the first thing you see when you type in a destination is that branding, it’s an added wow factor,” says Anthony Occidentale of Sistine Solar in Fast Company. The startup’s product acts as a graphic overlay atop solar panels. It shaves off about 10 per cent of a panel’s efficiency, but allows companies to turn them into branding assets without having to physically rearrange them, the magazine reports. With solar branding, companies can do good while making sure everyone knows it. As for Musk, Giga Texas will break the record for the largest rooftop solar project in the world when complete. Which is on brand for a man who loves to be in the spotlight.

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THE GREATEST CHALLENGES OF 2022 More than half of Canadian CEOs are worried about cyber-risk and environmental sustainability this year. In an IBM survey of 3,000 chief executive officers worldwide, this marks the first time the majority of Canadian respondents identified sustainability as a priority.

57 Percentage who rank cybersecurity as their top priority, up from 46 per cent in 2021. Cyberattacks are becoming increasingly costly and frequent. Last year, the average price tag per incident rose to $6.75-million, a record high in Canada. Source: IBM Canada

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56 Percentage who say sustainability is a significant challenge, a sharp increase from 31 per cent in 2021. Canadian CEOs feel the most pressure on this issue from board members (79 per cent) and investors (68 per cent), the stakeholders they typically interact with most directly.

For years, eager applicants have bemoaned the silent rejection that often follows a job interview. But the tables have turned. In the pandemic-scrambled world order, companies are the ones getting ghosted, Chip Cutter, Lauren Weber and Ray Smith report in The Wall Street Journal. Manufacturers, airlines, restaurants and cleaning companies are seeing a surge of candidates who accept offers, only never to be heard from again. For example, Southwest Airlines says 15 to 20 per cent of new hires for some positions simply vanish before their first day. What’s behind the disappearing act? Job seekers may be more confident in their abilities to land another gig, suggests one economist. Low unemployment rates, and record-high job openings and resignations make for a labour market so tight, employers can barely breathe. Keith Wolf, a managing director at a recruiting firm, shares a slightly different take with the Journal. “We have a generation of professionals who grew up on dating apps, where ghosting has been accepted. … I believe it’s leaking into the professional world.” Breaking up is hard to do. Whether in love or at work, it’s common courtesy to let the other party know you’re moving on.

PHOTOGRAPHY BY ADI GOLDSTEIN, CASEY HORNER/UNSPLASH (TOP LEFT), PIRANKA/ISTOCK (LEFT), FG TRADE/ISTOCK (RIGHT)

WORKPLACE PHANTOMS


NEWS

A SELF-REFLECTION Bringing your whole self to work is all the rage now. Leadership expert Mike Robbins wrote about it, while Quartz, a publisher, hosted a workshop on the topic. Companies are also inviting employees to bring it. “Your whole self is welcome here,” promises ING bank, while Workday, a software firm, urges its employees to be their “best selves.” Whether it’s your whole, full, authentic or best self, the idea is that people perform better when they connect with a firm’s purpose, understand their colleagues, feel included and cared about, and view their leaders as human. But no matter how warm and fuzzy this sounds, not everyone is sold on the idea. Obviously, no one should bring their whole selves to work, advises Bartleby, the management column in The Economist. Your professional self works on that PowerPoint presentation through lunch, while your whole self binges on ice cream on the couch. Your professional self says things like, “Let’s get Marketing to do a deep dive into those numbers,” while your whole self is planning a day at the beach. Companies are not really being true to themselves either. As a hierarchy, organizations want employees to do as they’re told, not whatever they want. And if leaders are reading up on how to be authentic, doesn’t that defeat the purpose? In the workplace, pretending to be someone you are not is a matter of self-preservation. Bring your role self to work, one where you turn up, work hard and do your part, advises Bartleby.

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IT’S TIME TO PRIORITIZE CLIMATE GOVERNANCE WHY NOW? Climate change is shaping a new reality, creating a diverse series of risks and opportunities. The ICD, its affiliate organization, Chapter Zero Canada, and the Climate Governance Initiative’s global network of more than 20 national and regional Chapters are committed to building and supporting climatecompetent directors. Let us help prepare you to lead critical boardroom discussions on climate change. Set the foundation, build your climate competence and stay informed with our curated collection of climate governance education, events and resources.

TO LEARN MORE, VISIT ICD.CA/CLIMATECHANGE

Canada


ISSUES

BY Robin Cardozo and Matt Fullbrook

Beyond window dressing

PHOTOGRAPH BY VIOLETA STOIMENOVA/ISTOCK

If boards are serious about increasing diversity, they must embrace the changes that come with it

IN RECENT YEARS, board equity, diversity and inclusion (ED&I) has been the most talked-about subject in the field of good governance. Our research has taught us, though, that the diversity part of the equation just won’t work unless there’s also a commitment to inclusion. Working under the auspices of the David and Sharon Johnston Centre for Corporate Governance Innovation, housed at the University of Toronto’s Rotman School of Management, we have published two research papers exploring whether board diversity has essentially been an exercise in window dressing, and examining how some not-forprofit organizations have successfully managed to implement change. While the research clearly demonstrates that diverse perspectives and experiences around a board table lead to better decisions, and while many boards in all sectors are working to “diversify themselves,” a large number have not come to grips with what that truly means. Meaningful inclusion requires an openness to change – change in how the board operates, how new candidates are recruited, how new appointees are brought on board, and who contributes to the discussions. One of the long-standing obstacles to greater diversification continues to be the belief that “We can’t find qualified candidates from diverse communities.” In our most recent study, published this year, we spoke with several leading organizations and executive search consultants who unanimously disagreed with that claim. Potential qualified candidates are out there; they just may not be in the traditional places. Corporate C-suite experience does not automatically translate into strong performance in the boardroom. Rather, a combination of cross-sector training, entrepreneurial skills and relevant lived experience is often a stronger predictor of an individual’s ability to add value to a board. Once qualified candidates have been identified, the board must be transparent about the motivation for the recruitment. Diversity optics alone would provide a weak rationale, but valuing a candidate’s overall skill set and experience could prove powerful. Successful boards also told us that the process for training and initiating new directors must be personalized. The one-size-fitsall workshop is no longer adequate. Every new member, regardless of their previous experience, needs to be brought on board in a thoughtful, personalized way that builds on their skills and attributes, and lays the groundwork for them to contribute meaningfully. The language of race can be sensitive. Using terms such as “Black,” “White,” “Indigenous” or “white privilege” – for example – can cause

significant discomfort to many Canadians. But it cannot be avoided, and organizations that are advanced in their ED&I journey told us that uncomfortable and transparent conversations, typically with external facilitation, are a critical stepping stone to greater understanding and success. The foundations of sound ED&I policy are aligned with the broader foundations of good governance practice: thoughtful and strategic recruitment, transparent and challenging conversations, personalized training and initiation, and openness to change. DJ

Experience in the C-suite on its own won’t guarantee strong performance in the boardroom. Lived experience and cross-sector training are often stronger predictors of a candidate’s ability.

ROBIN CARDOZO, ICD.D, is chair of Soulpepper Theatre and the former CEO of the Ontario Trillium Foundation. MATT FULLBROOK is a corporate governance adviser, educator and researcher based in Toronto.

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The dilemma We are reviewing our code of conduct. Is there anything specific we should be including?

Heather Wilson ICD’s Senior Director, Policy and Research

IT IS A GOOD PRACTICE to review your code of conduct periodically to ensure that it is meeting the needs of the organization. The code of conduct sets the tone for the organization’s expectations for integrity, ethical practices and strong governance. Many codes of conduct will include sections on conflicts of interest, confidentiality, use of corporate assets, accurate record-keeping, and the giving and receiving of gifts. They’ll also outline mechanisms for code compliance. The code may also refer to other policies that cover corporate communications (including social media), information technology use, insider trading, anti-corruption, workplace harassment and whistleblowers. It is important to remember, however, that “there is no generic code of conduct that will apply to every organization,” says Nancy Hopkins, a Saskatoon-based corporate lawyer and experienced director. She advises that codes should include tailored clauses to deal with the specific issues the board is likely to face. Hopkins recommends that a code of conduct start with the big picture duties and

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obligations, and then move to more specific requirements. She also recommends that codes be written in plain language so that they can be easily interpreted by board members. It should be easy to navigate so that directors can readily find the applicable section of the code. Having a well-crafted code of conduct is important but it is also essential that directors be educated on what the code says and its requirements. “A signature is not enough,” says Hopkins. There needs to be targeted code-of-conduct training so that board members clearly understand the behaviour that is expected of them. Boards should also consider spending some time discussing the code of conduct during the director orientation process. According to Stephanie Stimpson, a Calgary-based partner at the law firm Torys LLP, the code of conduct review should include an examination of the organization’s director education program to make sure content about the code is effective and clearly addresses the director’s distinct fiduciary

role. Directors should also understand how code of conduct orientation and training are managed, the manner in which the code is rolled out to new staff and contractors, and how complaints are handled and reported to the board. Investors, regulators, auditors and partners are increasingly focused on companies’ governance practices. A current and tailored code of conduct, with robust training, compliance and complaint protocols, acts not only as a risk management tool, but also provides credibility for the organization with those third parties. Boards should consider an annual review of the code, says Hopkins. During this process, directors should be asked to identify the other organizations they have relationships with so that potential conflicts can be monitored. Hopkins recommends that instead of asking directors whether they have any conflicts to declare at the beginning of a board meeting, they should be asked whether they have any additional organizations to add to the list of entities they provided during the annual code update. They should also be asked, in particular, to reflect on the agenda items to be discussed at the meeting. This question encourages them to focus on matters where they may have an undisclosed interest. “People may not connect the dots,” says Hopkins, “so this question helps make it clearer for them.” Codes of conduct are an important tool for boards. By reviewing and updating the document, as well as providing directors and key personnel with the appropriate training, the code of conduct can strongly support good governance practices within the organization. DJ

ILLUSTRATION BY AARON MCCONOMY

Q.


DIRECTORS’ DILEMMA

DIRECTOR LENS • Tailor the code of the conduct to the issues the board is mostly likely to confront.

IL EST DE BONNE PRATIQUE de revoir périodiquement votre code de conduite. Celui-ci donne le ton aux attentes de l’organisation en matière d’intégrité, d’éthique et de bonne gouvernance. Plusieurs codes de conduite comprennent des chapitres sur les conflits d’intérêts, la confidentialité, l’utilisation des actifs de la société, la tenue exacte des registres ainsi que l’offre et l’acceptation de cadeaux. Certains décrivent aussi des mécanismes de conformité au code. Le code peut aussi porter sur d’autres politiques telles que les communications d’entreprise, l’utilisation des technologies de l’information, le délit d’initié, les mesures anti-corruption, le harcèlement et les lanceurs d’alerte. Il est important de se rappeler, toutefois, « qu’il n’existe pas de code de conduite générique s’appliquant à toutes les organisations », souligne Nancy Hopkins, avocate d’affaires de Saskatoon et administratrice chevronnée. Elle estime que les codes devraient inclure des clauses taillées sur mesure pour répondre aux enjeux spécifiques auxquels le conseil est susceptible de faire face. Mme Hopkins recommande qu’un code de conduite porte d’abord sur les devoirs et obligations d’ensemble des administrateurs pour ensuite s’attarder à des exigences plus particulières. Elle recommande aussi que les codes soient rédigés en langage simple afin d’en faciliter l’interprétation. Il est important d’avoir un code bien conçu, mais il est aussi essentiel que les administrateurs soient formés quant à sa signification et ses exigences. « Une signature ne suffit pas », explique Mme Hopkins. Il faut une formation ciblée sur le code de conduite afin que les membres du conseil comprennent clairement ce qu’on attend d’eux. Selon Stephanie Stimpson, associée du bureau de Calgary du cabinet juridique Torys LLP, la révision du code de conduite

devrait inclure un examen du programme de formation des administrateurs de l’organisation afin de faire en sorte que la formulation de son contenu soit efficace et réponde au rôle distinct de fiduciaire des membres du conseil. Les administrateurs devraient aussi comprendre de quelle manière sont gérées l’orientation et la formation relatives au code de conduite, la façon dont le code est expliqué au nouveau personnel et aux contractuels et comment les plaintes sont traitées et rapportées au conseil. Les investisseurs, autorités réglementaires, vérificateurs et partenaires accordent une attention croissante aux pratiques de gouvernance des entreprises. Un code actualisé et adapté, accompagné d’une formation robuste et de protocoles de conformité et de plainte, constitue non seulement un outil de gestion du risque, mais offre aussi une crédibilité accrue à l’organisation auprès de ses parties prenantes. Les conseils devraient réviser leur code une fois l’an, estime Mme Hopkins. Durant ce processus, on devrait demander aux administrateurs d’identifier les autres organisations avec lesquelles ils entretiennent des relations, de telle sorte que les sources potentielles de conflits d’intérêts puissent être identifiées. Mme Hopkins recommande que plutôt que de demander aux administrateurs s’ils ont un conflit d’intérêts à déclarer, on devrait plutôt leur demander s’ils ont de nouvelles organisations à ajouter à la liste des entités qu’ils avaient fournie l’année précédente. On devrait leur demander, en particulier, de réfléchir aux points à l’ordre du jour qui seront discutés en réunion. Les codes de conduite sont un outil important pour les conseils. En assurant la révision et la mise à jour de ce document et en fournissant aux administrateurs et au personnel essentiel la formation appropriée, le code de conduite peut soutenir les pratiques de bonne gouvernance au sein de l’organisation. DJ

• Make sure the code is written in plain language and is easy to navigate. • Train directors on the content of the code to help them understand what is expected of them. Training is especially important for new board members. • Have board members create a list of organizations with which they have relationships. Ask about additions to the list at the beginning of board meetings.

• Adapter le code de conduite aux enjeux auxquels le conseil est le plus susceptible de faire face. • S’assurer que le code est rédigé en langage clair et facile à parcourir. • Former les administrateurs – surtout les nouveaux – sur le contenu du code pour les aider à comprendre ce qu’on attend d’eux. • Inviter les membres du conseil à créer une liste des organisations avec lesquelles ils sont en relation.

Presented in partnership with Torys LLP.

Send your comments or ideas to: Heather Wilson Senior Director, Policy and Research boardinfo@icd.ca Every issue, we will feature a question from readers or one from ICD’s complimentary research service, ICD BoardInfo icd.ca/boardinfo

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PHOTOGRAPHS BY J.P. Moczulski

THE TRANSFORMER While there is lots of talk these days about the need to improve the diversity of leadership teams, ICD Fellow WENDY KEI is making it happen as chair of Ontario Power Generation, Gordon Pitts writes Même si on parle beaucoup de la nécessité d’améliorer la diversité des équipes de leadership, la Fellow de l’IAS WENDY KEI transforme cet objectif en réalité à titre de présidente du conseil d’Ontario Power Generation, écrit Gordon Pitts

IN HER 25 YEARS AS A FINANCIAL MANAGER, Wendy Kei was always entering rooms whose occupants looked nothing like her. She did a stretch in Canada’s traditionally masculine mining sector, where she broke barriers for women and visible minorities – a precedentshattering role she carried over into her current career as a director. All along her journey, the Hong Kong-born, Toronto-raised Kei observed how corporate chairs could be the crucial difference-makers in diversity and inclusion, if they were prepared to make that commitment. When the time came for her, she was ready to drive that change. All that watching and learning has been marshalled into this moment in time. Kei has taken a leadership role in transforming the board of Ontario Power Generation, the major power utility that supplies more than half of Ontario’s electricity needs. She is the first woman and first member of a visible minority group to serve as chair of OPG going back to its 116-year-old roots as Ontario Hydro and the Hydro-Electric Power Commission of Ontario. Far exceeding targets set in 2018, she heads a board that is now 60 per cent female among its 10 independent directors (the only non-independent director is the CEO). Two of the independent directors identify as visible minorities and one as Indigenous. The diversity at the top extends to the company’s executive team, where more than half the team members are women.

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AU COURS DE SES 25 ANNÉES de gestion financière, Wendy Kei est toujours entrée dans des pièces dont aucun des occupants ne lui ressemblait le moins du monde. Elle a passé un moment dans un secteur minier traditionnellement masculin, où elle a enfoncé des barrières pour les femmes et les minorités visibles – un rôle sans précédent qu’elle a porté durant sa carrière actuelle d’administratrice. Tout au long de son parcours, cette femme née à Hong Kong et élevée à Toronto a observé à quel point les présidents du conseil pouvaient faire une différence cruciale en matière de diversité et d’inclusion, s’ils étaient prêts à s’y engager. Quand le moment est venu pour elle de le faire, elle était mûre pour mener le changement. Toutes ces années d’observation et d’apprentissage se cristallisaient dans ce moment. Mme Kei a assumé un rôle de leadership en transformant le conseil d’Ontario Power Generation, la principale organisation de service public qui fournit plus de la moitié des besoins de l’Ontario en électricité. Wendy Kei est la première femme membre d’une minorité visible à présider le conseil de l’OPG. Dépassant de loin les cibles établies en 2018, elle dirige un conseil comptant aujourd’hui 60 pour cent de femmes parmi ses dix administrateurs indépendants (le seul administrateur non indépendant est le chef de la direction). Deux des administrateurs indépendants


As chair, Wendy Kei has taken a leadership role in transforming the board of Ontario Power Generation, the major power utility that supplies more than half of Ontario’s electricity needs.

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SHE MAKES IT HER DUTY TO BE THERE FOR ANY DIRECTOR OR MEMBER OF THE EXECUTIVE TEAM WHO WANTS TO CONNECT. AU CONTRAIRE, ELLE SE FAIT UN DEVOIR D’ÊTRE DISPONIBLE POUR TOUT ADMINISTRATEUR OU DIRIGEANT QUI DÉSIRE LUI PARLER. Kei, who joined the OPG board in 2017 and rose to chair in 2019, now heads a board that balances the specialist skills needed to support corporate strategy, with a diversity of background and thought, and independence from the company. “We have moved the needle in terms of diversity,” says Kei, who takes her determined mindset to a number of other boards, to new pathways in her accountancy profession, and to recognition as a 2022 inductee as a Fellow of the Institute of Corporate Directors. “Wendy is an agent of change,” says Deborah Rosati, founder and CEO of Women Get on Board Inc., whose member-based company offers a community of support and connections – and where Kei is active as a speaker and mentor. “She is catalyzing change by demonstrating how it can be done, and showing up as being diverse and being inclusive.” Rosati adds: “Academically you can talk about it, the data can talk about it, but you have to demonstrate how you’re doing it. Wendy demonstrates it every day.”

Getting new voices heard One of the building blocks is recognizing that inclusion lies not just in the toting of numbers. At OPG and on her other boards, Kei strives to practise a style of leadership that is about listening and encouraging, while being readily accessible to fellow directors and the executive team. It means that, around the table, no one gets cut off, no question is considered dumb and no voice is left unheard, she says. It also means taking the board out of the ivory tower and closer to the people it employs and the communities it inhabits. Looking back on her role as the chief financial officer at a mining company, she observes: “At that time, it was not common for a member of the board to reach out and say, ‘Where do you see your next role and how can I help you? How are you doing?” When she

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s’identifient comme membres d’une minorité visible et un autre comme autochtone. La diversité au sommet se prolonge à l’équipe de direction, dont plus de la moitié des membres sont des femmes. Mme Kei, qui s’est jointe au conseil de l’OPG en 2017 pour accéder à la présidence en 2019, dirige aujourd’hui un conseil qui assume un équilibre entre les compétences spécialisées nécessaires au soutien de la stratégie d’entreprise, une diversité d’expériences et de pensées et une indépendance par rapport à l’organisation. « Nous avons avancé en matière de diversité », assure Wendy Kei, qui a porté sa détermination dans d’autres conseils et ouvert de nouvelles pistes à la profession comptable, le tout ayant mené à sa reconnaissance à titre de Fellow 2022 de l’Institut des administrateurs de sociétés. « Wendy est une agente de changement, affirme Deborah Rosati, fondatrice et cheffe de la direction de Women Get On Board Inc., une entreprise composée de membres qui offre une communauté de soutien et de contacts – et au sein de laquelle Mme Kei est active aussi bien comme conférencière que comme mentor. Elle est un catalyseur de changement en montrant comment on peut le faire et en plaidant pour la diversité et l’inclusivité ». « On peut en parler de façon théorique ou en évoquant les données, mais il faut aussi montrer comment on le concrétise. C’est ce que fait Wendy chaque jour ».

Faire entendre de nouvelles voix L’inclusion ne se résume pas seulement à des chiffres. Que ce soit à l’OPG ou dans d’autres conseils, Mme Kei se fait un point d’honneur à pratiquer un style de leadership privilégiant l’écoute et l’encouragement, tout en demeurant disponible pour les collègues administrateurs et l’équipe de direction. Cela signifie qu’autour de la table, on ne coupe la parole à personne, aucune question n’est considérée comme stupide et toutes


was posted in Yellowknife for 14 months, no director checked up on her to ask how her family was doing. It just wasn’t done then. “I don’t think board members reached out that much; they were seen as someone you saw every quarter.” By contrast, she makes it her duty to be there for any director or member of the executive team who wants to connect. She has conducted virtual coffee chats during the pandemic, now being converted back to in-person. She often gets approached for advice on building experience outside the company, perhaps as directors of not-for-profit boards. Her style is more like that of a coach and mentor than as a distant authority figure. Rosati, of Women Get on Board, likes to quote a line: “Diversity is having a seat at the table; inclusion is having a voice; and belonging is having that voice be heard.” Kei herself can readily list the advantages of having those voices heard. Certainly, diversity has an important social role, as a symbol of necessary change, but it also spurs a richer thought process that makes governance more effective, the board more competent, the culture stronger, and ultimately generates more robust financial performance.

From words to actions According to Ken Hartwick, OPG’s CEO, the speed at which the board moved to diversify its skills and backgrounds “demonstrates to management that this is a priority – beyond words. Words are great but it starts with your board and then your executive committee, and [their] actions are way stronger than words.”

les voix sont entendues. Cela veut dire aussi que le conseil sort de sa tour d’ivoire, se rapproche de ses employés et des communautés. Évoquant son rôle passé à titre de chef de la direction financière d’une entreprise minière, elle souligne : « À l’époque, il n’était pas commun pour un administrateur de demander ‘Comment voyezvous votre prochain poste et comment pourrais-vous aider à l’atteindre? Comment allez-vous?’ » Quand elle était en poste à Yellowknife pendant 14 mois, aucun administrateur ne lui a demandé comment allait sa famille. Ça ne se faisait simplement pas. Au contraire, elle se fait un devoir d’être disponible pour tout administrateur ou dirigeant qui désire lui parler. Durant la pandémie, elle a mené des café-causeries virtuelles qui aujourd’hui se poursuivent en personne. On lui demande souvent conseil hors de l’entreprise sur l’acquisition d’expérience, par exemple comme administratrice de conseils d’organisations à but non lucratif. Son style est davantage celui d’un mentor que d’une lointaine figure d’autorité. Mme Rosati aime bien citer cette phrase : « La diversité consiste à occuper un siège à la table, l’inclusion à avoir une voix et l’appartenance à faire entendre sa voix ». Mme Kei peut aisément nommer les avantages de faire entendre ces voix. La diversité joue bien sûr un important rôle social, en plus d’être le symbole d’un changement nécessaire, mais elle stimule aussi un riche processus de pensée qui rend la gouvernance plus efficace, le conseil plus compétent, la culture plus solide et génère, au bout du compte, une performance financière plus robuste.

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‘Around the table, no one gets cut off, no question is considered dumb and no voice is left unheard’, OPG chair Wendy Kei says.

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‘WE HAVE SPECIALISTS RATHER THAN GENERALISTS AND EVERYONE KNOWS WHAT THAT OTHER PERSON’S AREA OF EXPERTISE IS.’ « NOUS AVONS DES SPÉCIALISTES PLUTÔT QUE DES GÉNÉRALISTES ET CHACUN SAIT QUELLE EST LA ZONE D’EXPERTISE DE CHACUN DE SES COLLÈGUES ». Tracy Primeau, a new board member with nuclear-energy operations expertise and Indigenous heritage, explains that if diversity does not start at the top, “you’re just talking.” She points out “if the operators, shift managers and engineers aren’t looking up at the board and executive team and seeing themselves, they are not going to strive to be there.” They might not even want to stay at the company, she adds. “If you are losing good people because they don’t see a path to the top, you are losing money.” But the road was not easy for Kei and OPG. The board started with a list of skills needed to support the executive team in driving strategy, plus significant climate change initiatives, over three to five years – for example, a background in human resources or nuclear power. (OPG’s two large nuclear stations generate 30 per cent of Ontario’s electricity, and the company is leading the development of Canada’s first small modular reactor.) Then, it instructed headhunting professionals to put forward diverse candidates who could fill those capabilities. Kei kept seeing many of the faces she had encountered while seeking candidates for her mining boards, but she felt the tent had to be bigger. She pushed the recruiters harder, saying “I think we need to see the next group, the group below that.” Some candidates on this expanded list possessed the trade and professional skills but not the governance experience, and so the board created plans for these people to get the training they needed. In general, new directors might feel they did not possess every tool in the kit, but the company would help fill out their repertoire. Primeau, the nuclear specialist, has just come through one of the ICD’s education programs, which has better equipped her to ask the big questions on governance, rather than always staying “in the

De la parole aux actes Selon Ken Hartwick, chef de la direction d’OPG, la vitesse à laquelle le conseil agit pour diversifier ses compétences et son expertise « montre à la direction qu’il s’agit d’une priorité qui va au-delà des mots. Les mots, c’est bien; mais ça commence au conseil et se poursuit au comité exécutif où les actes parlent plus fort que les mots ». Tracy Primeau, nouvelle membre du conseil ayant une expertise en matière d’énergie nucléaire et qui est d’ascendance autochtone, explique que si la diversité ne vient pas du sommet, « on ne fait que parler ». Elle souligne que « si les opérateurs, les gestionnaires de quarts et les ingénieurs ne se reconnaissent pas en observant les membres du conseil et de l’équipe de direction, ils ne montreront pas beaucoup d’intérêt ». Il se pourrait même, ajoute-t-elle, qu’ils ne veuillent pas rester au sein de l’organisation. « Si vous perdez de bonnes personnes parce qu’elles ne voient pas de chemin vers le sommet, vous perdez des revenus ». Mais la route n’a pas été facile pour Wendy Kei et l’OPC. Le conseil a commencé, pendant les trois à cinq premières années, avec une liste des compétences nécessaires pour soutenir l’équipe de direction dans le déploiement de la stratégie – par exemple de l’expérience en ressources humaines ou en énergie nucléaire. (Les deux grandes centrales nucléaires de l’OPG génèrent 30 pour cent de l’électricité de l’Ontario et l’entreprise mène le développement du premier petit réacteur modulaire au Canada.) Ensuite, elle a demandé à des professionnels du recrutement de lui présenter divers candidats susceptibles de correspondre à ces profils. Certains de ces candidats possédaient les compétences professionnelles, mais non l’expérience de gouvernance. Le conseil a donc élaboré des plans pour que ces personnes obtiennent la formation nécessaire. En général, les nouveaux administrateurs peuvent avoir

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WENDY KEI Chair of Ontario Power Generation Présidente du conseil, Ontario Power Generation Born in Hong Kong. Moved to Canada with her family at the age of 5. Now 54, based in Toronto. EDUCATION Bachelor of mathematics (honours), University of Waterloo. PROFESSIONAL CAREER Out of university, she joined accounting giant Coopers & Lybrand – now PricewaterhouseCoopers (PwC). Worked in finance or accounting for the town of Markham, Ont., National Grocers Co., Suncor Energy Inc., and PwC. Joined miner Aber Diamond Corp. in 2004 as corporate comptroller. Was chief financial officer in 2013-2014, as company evolved into Harry Winston Diamond Corp. and then Dominion Diamond Corp. Relocated to Yellowknife for 14 months to help integrate a diamond mine acquisition. DIRECTOR CAREER Served as a director of Guyana Goldfields Inc. from May, 2015 to August, 2020. Part of her experience involved a tense proxy fight, which ended when the company was acquired in 2020 by China’s Zijin Mining. Joined the board of Ontario Power Generation Inc. in March, 2017 and became chair in June, 2019. Serves on the boards of Noranda Income Fund, bus manufacturer NFI Group Inc., and Centerra Gold Inc. Director of Karora Resources (formerly Royal Nickel) from 2018 to May of this year. CORPORATE GOVERNANCE LEADERSHIP Was an inaugural member of CPA Canada’s audit committee certification task force; serves on advisory committee for the audit committee conference. At Women Get on Board, she has been director in residence since 2017 and has been a panelist on multiple topics. RECOGNITION Inducted as 2020 CPA Fellow by CPA Ontario.

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Née à Hong Kong. Arrivée au Canada avec sa famille à l’âge de cinq ans. Aujourd’hui âgée de 54 ans, vit à Toronto. ÉDUCATION Diplômée en mathématiques (avec distinction), Université de Waterloo. CARRIÈRE Au terme de ses études, elle joint Coopers & Lybrand, aujourd’hui PricewaterhouseCooper (PwC). Postes en finances ou comptabilité à la ville de Markham, chez National Grocers, Suncor et PwC. Contrôleur général, Aber Diamond Corp. (2004) Directrice financière en 2013-2014, Aber Diamond changeant sa raison sociale pour Harry Winston Diamond et ensuite Dominion Diamond Corp. Transférée à Yellowknife pendant 14 mois pour réaliser l’intégration d’une mine de diamant récemment acquise. CARRIÈRE D’ADMINISTRATRICE Guyana Goldfields (2015-2020). Elle a vécu, au cours de cette période, une course aux procurations tendue, qui a pris fin avec l’acquisition de l’entreprise par la chinoise Zijn Mining. Nommée au conseil d’Ontario Power Generation en mars 2017. Présidente du conseil en juin 2019. Administratrice de Noranda Fonds de revenu, du fabricant d’autocars NFI Group et de Centerra Gold Inc. Membre du conseil de Karora Resources (anciennement Royal Nickel) de 2018 à mai 2022. LEADERSHIP EN GOUVERNANCE DE SOCIÉTÉS Membre inaugurale du groupe de travail en certification du comité d’audit de CPA Canada; elle siège en outre au comité consultatif de la conférence sur le comité d’audit. Chez Women Get on Board, elle est administratrice en résidence depuis 2017 et conférencière sur divers sujets. RECONNAISSANCE Elle a été intronisée en 2020 à titre de Fellow CPA de CPA Ontario.


weeds,” where she was comfortable with her nuclear expertise. “It’s created the right culture for us and the right dynamics,” Kei says, adding that male board members now feel a certain pride in being the minority on the new-look board. Rosati has watched the OPG board evolve as an outsider. “They did it quickly but intentionally, with a focus,” she says, and it was led from the top. “If your chair is not supportive of diversity and inclusion on your board, it will not happen. Wendy has leaned in and did it to have the right skills around the boardroom table.” Indeed, Kei looks around the table now and sees that “I have nuclear expertise, ESG [environmental, social and governance]; I have cyber and labour relations. We have specialists rather than generalists and everyone knows what that other person’s area of expertise is. They rely on those other people but that doesn’t mean they do not have their own questions.” As CEO, Hartwick describes the ripples emanating from the board’s transformation: “It now puts more pressure – a good pressure – on the management of the compay to achieve diversity of people, race and skills.” Echoing Primeau and Kei, he believes this translates into better performance because of the range of thinking. Then there is the hiring advantage. “People look at us and are thinking ‘Huh, they are actually way ahead of most companies on the diversity front and that is a place I will consider working.’” That, he says, comes up as a selling point in many management interviews.

Broader thinking As for his own progress as CEO, Hartwick feels at the board level, “the conversation is much richer on every topic, from [power] generation to governance.” On any issue, Hartwick says he gets a range of perspectives to consider in his decision-making. One of those perspectives comes from Primeau, who came out of university decades ago to start her career as an operator and then a shift manager in nuclear plants. She is also a member of Ontario’s Nipissing First Nation. She came to Kei’s attention in her final years as an operations manager with another power company. OPG was willing to wait until she retired to bring her on the board. Kei notes that a lot of OPG’s work is carried out around First Nations communities, and the board undergoes continuous education on Indigenous relations. More broadly, “OPG lives and breathes in the province of Ontario. You cannot have a board that is different than the communities where it operates. “You have to – otherwise, it is hard to see progress. You will not understand what the issues are,” Kei says, pointing out that the utility has an Indigenous relations department. Primeau says she truly grasped her potential contributions during board diversity training. “One thing I bring is sort of an Indigenous lens – the way I look at and understand things.” There is both an immediately tangible and a cultural aspect to this lens. If a project is being discussed, she is always thinking about the impact on a nearby Indigenous community and the possibility of a partnership with the group. Just as important is her framing of time and process. She represents a counterpoise to the short-term thinking that bedev-

l’impression de ne pas posséder tous les outils, mais l’entreprise allait les aider à élargir leur expertise. Mme Primeau, la spécialiste du nucléaire, vient tout juste de suivre l’un des programmes de formation de l’IAS, qui l’a mieux équipée pour poser les grandes questions sur la gouvernance plutôt que de toujours rester dans la confusion, à l’aise seulement avec son expertise nucléaire. Mme Rosati a surveillé de l’extérieur l’évolution de l’OPG. « Ils l’ont fait rapidement mais délibérément, en sachant où ils allaient et le mouvement était dirigé du sommet. Si votre président du conseil ne soutient pas la diversité et l’inclusion, ces choses-là n’arriveront pas. Wendy a relevé le défi de doter le conseil des compétences nécessaires ». Bien sûr, Mme Kei regarde aujourd’hui autour de la table et constate que « je dispose de l’expertise nucléaire, des compétences ESG (environnemental, social et gouvernance); j’ai le savoir en sécurité informatique et en relations de travail. Nous avons des spécialistes plutôt que des généralistes et chacun sait quelle est la zone d’expertise de chacun de ses collègues. Chacun se fait confiance ». À titre de chef de la direction, M. Hartwick décrit ainsi les répercussions de la transformation du conseil : « Cela exerce une pression – une bonne pression – sur la direction de l’entreprise afin d’obtenir une diversité de gens, de races et de compétences ». Faisant écho à Mmes Primeau et Kei, il croit que cela se traduit par une meilleure performance en raison de l’éventail de points de vue. Il y a aussi l’avantage de l’embauche. « Les gens nous observent et se disent que nous sommes bien en avance sur nos concurrents en matière de diversité et que c’est un endroit où ils aimeraient travailler ».

Un mode de pensée plus large Quant à ses propres progrès à titre de chef de la direction, M. Hartwick estime que « la conversation est beaucoup plus riche sur chaque sujet, qu’il s’agisse de production d’énergie ou de gouvernance ». Peu importe la question en jeu, il affirme disposer de tout un éventail de points de vue à envisager dans son processus de décision. L’un de ces points de vue provient de Mme Primeau, qui a quitté l’université il y a plusieurs décennies pour entreprendre une carrière de gestionnaire des opérations et ensuite de gestionnaire de quarts dans des centrales nucléaires. Elle est aussi membre de la Première Nation Nipissing de l’Ontario. Elle a été portée à l’attention de Mme Kei à sa dernière année comme gestionnaire des opérations chez une autre entreprise d’électricité. OPG était disposée à attendre qu’elle prenne sa retraite pour l’accueillir au conseil. Wendy Kei souligne qu’une bonne partie des activités d’OPG se déroule près de communautés des Premières Nations et le conseil est engagé dans de la formation continue sur les relations avec les Autochtones. « On ne peut pas avoir un conseil différent des communautés où nous sommes, explique-t-elle. Sinon, il est difficile de comprendre les enjeux ». Mme Primeau dit qu’elle a véritablement saisi le potentiel de ses contributions pendant la formation à la diversité dispensée aux membres du conseil. « J’apporte une sorte de lentille autochtone – la façon dont je vois et comprend les choses. » Cette lentille joue un rôle à la fois culturel et immédiatement tangible. Si on discute d’un projet, elle songe toujours à son impact sur

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ils modern corporations. Primeau is always thinking, “How does this affect the next seven generations, which is how we think in Indigenous communities – all seven of those generations, how it affects my kids’ kids’ kids’ kids … .” She feels she has more patience than some directors. While others might ask how something can be “done yesterday,” Primeau will observe that “we have to move at the speed of trust, which is as fast as it can go, based on relationships.” There is another aspect of diversity that is more subtle. All the children in her family were university-educated – the goal of her machinist father and bookkeeper mother — but she began her career as an operator for the former Ontario Hydro, from which OPG was spun off. She later moved into the control room and management at Bruce Power, another power provider in Ontario. Primeau knows what it is like to be a lone woman on a male-dominated industrial site. That gender insularity has started to crumble, she acknowledges, and more women are working in nuclear operations. But when she encounters problems with codes of conduct and harassment claims, she can share her own stories, commenting that “Oh yeah, I’ve seen this happening,” or “I dealt with this.” It is an aspect of her experience that she did not anticipate bringing to a board.

la communauté autochtone voisine et à la possibilité d’un partenariat avec celle-ci. Son mode de pensée s’articule toujours ainsi : « Comment ce projet affectera-t-il les sept prochaines générations, ce qui représente la façon dont pensent les communautés autochtones : comment seront affectés les enfants des enfants de mes enfants et ainsi de suite… » Elle a le sentiment d’être plus patiente que certains administrateurs. Alors que d’autres exigent qu’une chose soit faite hier, Mme Primeau observe que « nous devons avancer à la vitesse de la confiance. C’est le plus vite que nous pouvons aller, en nous fondant sur les relations que nous avons avec les gens ». Il y a un autre aspect de la diversité qui est plus subtil. Tous les enfants de sa famille sont allés à l’université, ce qui était le but de son père machiniste et de sa mère comptable. Mais elle a entrepris sa carrière chez l’ancienne Ontario Hydro, dont OPG est issue, pour travailler ensuite chez un autre fournisseur d’électricité. Elle sait ce que c’est que d’être une femme isolée dans un monde d’hommes. Elle reconnaît que les choses ont changé et que de plus en plus de femmes travaillent dans le secteur nucléaire. Mais quand on porte à son attention des problèmes relatifs à des codes de conduite ou des plaintes de harcèlement, elle peut partager des expériences dont elle a été témoin.

Future generations

Les générations futures

For Kei, there are always more barriers to break. She knows that boards need younger directors who bring certain skills – an ease with technology and social media, for example. It will mean future conversations about the importance of diversity in taking the leap, as she says, from a good to a great board. Critical mass is important, too. Once a board makes the breakthrough with one female director, getting that second one has a truly meaningful effect. “It means always pushing the bar to improve governance and having two [women] pushes it faster.” And a third, she says, is even better. Kei has pushed her quest for stronger governance into another corner, by raising the skills level on audit committees, and widening the pipeline for chartered professional accountants (CPAs) to join boards and audit committees. She sees potential for lifting knowledge levels on committees that are among the cornerstones of effective corporate governance. Kei is also mindful that as someone who came to Canada as a young child, she represents a wider social inclusion. When she talks to a work force group, women often come up afterward to share their own immigrant experience. Some tell her that to see a woman in the position of board chair makes them feel empowered. But it has taken courage to reach this point, Kei says – and that flows, to a great extent, from her role as a mother of two daughters, whom she constantly reminds “you can do anything you set your mind to.” DJ

Pour Mme Kei, il y aura toujours des barrières à abattre. Elle sait que les conseils ont besoin de jeunes administrateurs porteurs de certaines compétences, dont une aisance avec la technologie et les médias sociaux. Donc, les conversations futures sur l’importance de la diversité se traduiront par la différence entre un bon et un excellent conseil. La masse critique est aussi importante. Une fois qu’un conseil a percé le plafond de verre en nommant une femme, la seconde nomination féminine a un véritable effet significatif. « Il faut toujours placer la barre plus haut pour améliorer la gouvernance ». Wendy Kei a poussé vers d’autres domaines sa quête d’une gouvernance plus forte, en élevant le degré de compétence des comités d’audit et en élargissant l’accès au conseil et aux comités d’audit pour les comptables professionnels agréés (CPA). À titre de personne qui est arrivée au Canada à un très jeune âge, elle a à cœur de représenter une inclusion sociale plus large. Lorsqu’elle s’adresse à un groupe de travailleurs, des femmes viennent souvent après coup partager avec elle leurs propres expériences d’immigrantes. Certaines lui confient que de voir une femme comme elle aux commandes d’un conseil d’administration leur donne un sentiment de pouvoir. Mais il faut du courage pour en arriver là. Et cela lui vient en grande partie de ses deux filles, à qui elle rappelle constamment qu’on peut réaliser tout ce qu’on veut à condition de se fixer un objectif. DJ

GORDON PITTS is a Toronto journalist whose latest book, Unicorn in the Woods: How East Coast Geeks and Dreamers Are Changing the Game, was longlisted for a National Business Book award.

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GORDON PITTS est un journaliste de Toronto dont le plus récent ouvrage, Unicorn in the Woods: How East Coast Geeks and Dreamers Are Changing the Game, a été finaliste du National Business Book Award.


Helping organizations achieve their performance goals through world-class boards, leadership, and organizational capability.

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BY Prasanthi Vasanthakumar

Out of office ... forever

PHOTOGRAPH BY DEVN/UNSPLASH

From expansive talent pools to happier employees, many organizations are reaping the benefits of going fully remote. For boards, this means a shift in thinking Qu’il s’agisse d’un bassin de talents en expansion ou d’employés plus heureux, plusieurs organisations recueillent les avantages du télétravail intégral. Pour les conseils, il s’agit d’un changement de paradigme.

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Remote work can increase productivity but it also brings challenges, such as social isolation.

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WHEN ERIN BURY LEFT THE OFFICE on March 13, 2020, she thought she’d see her team again in a week or two, once the pandemic was over. The CEO and co-founder of Willful, an online platform for do-ityourself wills, had opened the company’s first dedicated office earlier that year. “We focused on an in-office culture,” says Bury. “Everyone was based in Toronto and everyone came into the office.” Covid-19 turned that upside down. A year and a half into the pandemic, Bury realized remote work was working for her company, formally called Final Blueprint Inc. With the ability to hire from across Canada, she no longer had to fight tooth and nail to recruit software engineers in Toronto’s competitive market. Her staff enjoyed the work-life balance of being virtual-first, and commuting seemed like a waste of time. To ease remote work, Bury invested in software tools such as Asana, Slack and Wavy; introduced a core-hours policy to accommodate the four time zones of her staff; and set up virtual mixers to keep everyone connected. She also planned in-person get-togethers for the whole team. “From a business perspective, we’ve never done better or been more efficient,” says Bury. “I don’t know the opportunity cost of not having people in a room, brainstorming or jamming on an issue. But our productivity and [corporate culture] tools have helped us bring some of that in-person magic to our remote culture. You have to put more intention into building culture when remote.”

PHOTOGRAPH BY ELSA NOBLET/UNSPLASH

The importance of structure One-third of Canadian workers are seeking or planning to look for a new job in the second half of 2022, according to a report from the recruitment firm Robert Half Canada Inc. Of these job hunters, 51 per cent want a fully remote role. For many leaders, however, virtual-first is a last resort. Contrary to popular belief, remote work isn’t a freewheeling, choose-your-own adventure. Julia Chung – a director and entrepreneur – ran all-remote companies well before Covid-19 challenged the office. She attributes her success to formalized structures and practices. The CEO and co-founder of Spring Planning Inc., a financial services firm, is deliberate about almost everything, from cybersecurity and employee well-being to time management and communication. For example, she sets clear directives for meetings and has embedded the practice of time blocking throughout the organization. When people are thrown into remote work, it’s easy to default to working in silos. “You have to be thoughtful about giving people the focus they need, but also continuity,” says Chung. “It’s about teaching people how to communicate in a virtual environment.”

Board hesitation Chung brings that same focus to building corporate culture and dismisses the idea that working from home has a negative impact. Before launching her remote companies, she carefully considered the culture she wanted. “Culture isn’t created by touching people or being in the same room,” she says. “It’s created by what you do and how you do it. It’s about having

QUAND ERIN BURY A QUITTÉ LE BUREAU le 13 mars 2020, elle s’est dit qu’elle allait revoir son équipe dans une semaine ou deux, après la pandémie. La cheffe de la direction et co-fondatrice de Willful, une plate-forme en ligne de testaments auto-rédigés, avait ouvert la même année le premier bureau de l’entreprise. « Nous étions attachés à une culture de bureau, dit-elle. Chacun travaillait à Toronto et tout le monde venait au bureau. » La Covid-19 a chambardé tout cela. Après une année et demie de pandémie, Mme Bury a constaté que le travail à distance fonctionnait pour son entreprise. Avec la possibilité d’embaucher n’importe où au Canada, elle n’a plus besoin de lutter bec et ongles pour recruter des ingénieurs informaticiens dans le marché compétitif de Toronto. Son personnel profitait de l’équilibre travail-famille associé au télétravail et les déplacements quotidiens semblaient une perte de temps. Pour faciliter le travail à distance, Mme Bury a investi dans des outils logiciels tels qu’Asana, Slack et Wavy. Elle a également établi une politique de plages horaires fixes pour convenir aux quatre fuseaux horaires de son personnel et installé des mélangeurs virtuels afin que chacun soit connecté. Elle a aussi organisé des rencontres en personne pour l’ensemble de l’équipe. « D’un point de vue d’affaires, nous n’avons jamais fait mieux ni été plus efficaces, souligne-t-elle. Je ne connais pas le coût de substitution au fait de ne pas avoir de gens réunis dans une pièce, à réfléchir ensemble autour d’une question. Mais nos outils de productivité et notre culture d’entreprise nous ont aidés à insuffler un peu de cette magie d’une présence physique dans notre culture de travail à distance. »

L’importance d’une structure Un tiers des travailleurs canadiens espère ou prévoit changer d’emploi dans la seconde moitié de 2022, selon un rapport du cabinet de recrutement Robert Half Canada Inc. De ces chasseurs d’emploi, 51 pour cent recherchent un poste entièrement à distance. Pour plusieurs leaders, toutefois, la priorité au travail en ligne est un dernier recours. Contrairement à la croyance populaire, le télétravail n’est pas un buffet à la carte. Julia Chung – administratrice et entrepreneure – a dirigé des entreprises entièrement virtuelles bien avant que la Covid-19 pose un défi à la vie de bureau. Elle attribue son succès à des structures et pratiques formalisées. La cheffe de la direction et co-fondatrice de Spring Planning Inc., une firme de services financiers, a pensé à presque tout, de la sécurité informatique au bien-être des employés en passant par la gestion du temps et les communications. Ainsi, elle a établi des directives claires à l’égard des réunions et enchâssé la pratique du temps de blocage à l’échelle de l’organisation. Lorsque les gens sont lancés dans le travail à distance, il est facile de se tourner automatiquement vers le travail en silo. « Il est très important d’offrir aux gens l’attention dont ils ont besoin, mais aussi la continuité, affirme Mme Chung. Il s’agit de leur montrer comment communiquer dans un environnement virtuel. »

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‘When I hear blanket statements that remote work is bad for business, it tells me there hasn’t been enough exploration of the underlying factors that give rise to a good culture.’ « Quand j’entends des déclarations selon lesquelles le télétravail est mauvais pour les affaires, cela me dit qu’on n’a pas suffisamment exploré les facteurs sous-jacents qui soutiennent une bonne culture d’entreprise. »

- Susan Black, CEO of the Conference Board of Canada

psychological safety, support and the right tools and resources. How can we create the best environment for the people we want to work with?” Chung, who serves on the boards of Family Enterprises Canada and the Financial Planning Association of Canada, finds that she is often the go-to person for remote work expertise in board meetings. But within the larger director community, she senses reluctance to leave the office behind because of a misconception that if people are at home, they aren’t working. “To that, I ask, is this what you think of your staff?” says Chung. “Why would you hire someone like that?” As this variant-fuelled pandemic drags on, Chung believes organizations must give staff the support and space to be productive. If that’s working remotely, so be it. “If you can’t do it for the people, do it for the money,” she says. “When people are constantly traumatized, they’re not productive. So, there’s a business case for finding out how employees feel and supporting them.”

Pros and cons To best support her employees during the pandemic, Susan Black, CEO of the Conference Board of Canada, transitioned the organization to a virtual-first model. Two years later, she has no regrets. Employee engagement and inclusion scores have jumped, while the organization’s talent pool now stretches across the country. It has dramatically upgraded its technology and shifted from a ten-

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L’hésitation du conseil Julia Chung porte la même attention à l’établissement d’une culture d’entreprise et rejette l’idée que de travailler de la maison a un impact négatif. Avant de lancer ses entreprises à distance, elle a longuement réfléchi à la culture d’entreprise qu’elle voulait implanter. « On ne crée pas une culture d’entreprise en touchant les gens ou en se trouvant dans la même pièce. C’est ce qu’on fait et comment on le fait qui la fait naître. Il s’agit de sécurité psychologique, de soutien et de l’accès aux outils et aux ressources nécessaires. Comment crée-t-on le meilleur environnement pour les gens avec qui on veut travailler? » Dans les conseils où elle siège, Mme Chung est souvent la personne à qui on s’en remet pour son expertise sur le travail à distance. Mais au sein de la plus vaste communauté des administrateurs, elle sent une réticence à l’abandon de la notion de bureau en raison d’une idée fausse selon laquelle lorsque les gens sont à la maison, ils ne travaillent pas. « À cela, je réponds : ‘C’est ce que vous pensez de vos employés?’ » À mesure que la pandémie s’étire, Mme Chung croit que les organisations doivent donner à leur personnel le soutien et l’espace pour être productif. Si la réponse est le télétravail, qu’il en soit ainsi. « Si vous ne pouvez pas le faire pour les gens, faites-le pour l’argent, dit-elle. »


ure-based culture to a performance-oriented one. And remote work is now ingrained in the employee value proposition. Black attributes this success to partnering with employees and increasing communication. But she concedes that remote work comes with challenges. Zoom fatigue is real. Social isolation can set in, even for introverts. And a virtual environment simply isn’t for everyone, especially those who crave a face-to-face connection.

Advice for boards Before embracing a virtual-first model, Black advises boards and management teams to consider the basics. Is the nature of work compatible with a virtual environment? Do you have the scale to afford the necessary technology investments? What are your competitors doing, and how will that affect talent attraction and retention? Finally, what do your employees need to be successful? In their oversight role, boards should ask management how they will adapt existing systems for a virtual model. Organizations will need defined work-from-home policies, with clear expectations around employee availability and decision-making authority. Boards should also query whether talent and performance management processes have been reworked to enable orientation, training and mentoring in a virtual environment. Are front-line managers up to the task? What vehicles will the management team use to communicate with employees? “You’ve got to get crisp about goals, deliverables and values in a virtual environment,” says Black. “You have to be outcome-based instead of relying on getting to know someone personally. For boards, this means asking management the right questions to make sure all this is teed up.” Remote work won’t work if you don’t make the right changes and investments, she adds. But those who reject it outright are missing the point. “When I hear blanket statements that remote work is bad for business, it tells me there hasn’t been enough exploration of the underlying factors that give rise to a good culture,” says Black. “It also sounds like code for the old way of thinking that unless you come to the office, you’re not committed. I would challenge any board that says that. As a massive global experiment in telecommuting, the pandemic demonstrated, without a doubt, that it’s doable.”

A case for the office For Zabeen Hirji, executive advisor to Deloitte on the future of work, the pandemic is the sticking point. She cautions organizations against permanently writing off the office without considering their business strategy, customer needs and employee preferences in normal times. The office is a place where curiosity-based conversations happen with colleagues on the periphery of one’s orbit, from random encounters in the kitchen or at the printer. Hirji believes these conversations are fodder for innovation and creativity, and are harder to replicate in a virtual environment. She urges companies to think about making the office more attractive by increasing its utility, whether that’s for collaboration,

Le pour et le contre Pour mieux supporter ses employés durant la pandémie, Susan Black, cheffe de la direction du Conference Board du Canada, a fait passer son organisation vers un modèle principalement virtuel. Deux ans plus tard, elle ne le regrette pas. L’engagement des employés et le degré d’inclusion ont bondi, alors que le bassin de compétences de l’organisation s’étend à l’ensemble du pays. Celle-ci a radicalement modernisé sa technologie et est passée d’une culture fondée sur la titularisation à une orientation vers la performance. Le travail à distance est désormais ancré dans la proposition de valeur de l’employé. Mme Black attribue ce succès à un partenariat avec les employés et à une communication accrue. Mais elle admet que le télétravail comporte des défis. La fatigue due à Zoom est bien réelle. L’isolement social peut s’installer, même pour les personnes introverties. L’environnement virtuel n’est pas fait pour tout le monde.

Des avis aux conseils Avant d’embrasser un modèle principalement virtuel, Mme Black conseille aux administrateurs et aux équipes de direction de considérer les éléments de base. La nature du travail est-elle compatible avec un environnement virtuel? Votre organisation a-t-elle l’envergure nécessaire pour soutenir les investissements technologiques nécessaires? Que font vos compétiteurs et comment cette décision affectera-t-elle l’attraction et la conservation des talents? Enfin, de quoi vos employés ont-ils besoin pour réussir? Dans leur rôle de surveillance, les conseils devraient demander à la direction comment elle entend adapter les systèmes existants à un modèle virtuel. Les organisations devront établir des politiques de travail à distance, avec des attentes claires sur la disponibilité des employés et l’autorité décisionnelle. « Il faut être précis à propos des objectifs, des produits et des valeurs dans un environnement virtuel, affirme Mme Black. Il faut se fonder sur les résultats plutôt que de chercher à connaître les gens personnellement. Pour les conseils, cela exige de poser les bonnes questions à la direction. » Le travail à distance ne fonctionnera pas si on ne fait pas les bons changements et les bons investissements, ajoute-t-elle. Ceux qui rejettent cela passent à côté. « Quand j’entends des déclarations selon lesquelles le télétravail est mauvais pour les affaires, cela me dit qu’on n’a pas suffisamment exploré les facteurs sous-jacents qui soutiennent une bonne culture d’entreprise. Ça ressemble à un code des anciennes façons de penser qui soutiennent que si on n’est pas au bureau, on n’est pas engagé. C’est tout simplement faux. »

Des arguments pour le bureau Pour Zabeen Hirji, conseillère exécutive chez Deloitte sur l’avenir du travail, la pandémie est le point de friction. Elle met en garde les organisations contre l’idée d’éliminer le bureau de façon permanente sans égard à la stratégie d’affaires, aux besoins du client et aux préférences des employés.

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‘When designing where people work, you have to provide flexibility, choice and autonomy.’ « Quand on conçoit un lieu où les gens travaillent, dit-elle, il faut offrir la flexibilité, le choix et l’autonomie. » - Zabeen Hirji, executive advisor to Deloitte

community, connection or learning. “The future of work is human,” says Hirji. “When designing where people work, you have to provide flexibility, choice and autonomy. It’s about engaging transparently with your employees to create a partnership that makes different models a win-win. That’s how we figure out this next normal.” As a corporate director, Hirji finds that boards are deeply interested in the future of work. But unlike compensation or audit, there are no governance frameworks to help navigate this evolving space. In the absence of guidelines, she highlights mental health as an emerging issue that boards should pay attention to. How can organizations support employees who may be struggling with social isolation in a remote environment? Indeed, each work model has positives and negatives. “What’s missing from the conversation is balance,” says Hirji.

The next normal

Elle exhorte les entreprises à songer à rendre le bureau plus attrayant en accroissant son utilité, que ce soit pour la collaboration, la communauté, la communication ou l’apprentissage. « Quand on conçoit un lieu où les gens travaillent, dit-elle, il faut offrir la flexibilité, le choix et l’autonomie. Il s’agit d’être transparent avec les employés afin de créer un partenariat qui fait de différents modèles une formule gagnante. » L’avenir du travail tel que le conçoit Mme Hirji à titre d’administratrice s’articule autour de la santé mentale des employés. Comment les organisations peuvent-elles soutenir des employés qui luttent peut-être contre l’isolement social dans un environnement distant? Bien sûr, chaque modèle a ses aspects positifs et négatifs. « Mais ce qui manque présentement à la conversation, c’est l’équilibre », soutient Mme Hirji.

To achieve balance, many companies are gravitating toward hybrid work. But Sid Sijbrandij sees the writing on the wall. The CEO of GitLab, a software development firm and one of the world’s largest all-remote organizations, predicts the hybrid model will hurt the remote work trend. He expects leadership to primarily work from the office, leading to exclusion, inequity, and the prioritization of attendance over output. Productive remote workers will quit in droves. “I predict that remote will go through a trough of sorrow due to this hybrid model not working out, and most companies will return to being office-based,” he writes on LinkedIn. “The companies who choose an all-remote model will see success.” Bury is of the same mind and isn’t looking back. This past May, she sublet Willful’s short-lived office. “If you are not willing to embrace a fully remote culture, I absolutely think you will not be able to attract and retain talent in the future,” she says. DJ

La prochaine normalité

PRASANTHI VASANTHAKUMAR is the ICD’s manager of editorial content.

PRASANTHI VASANTHAKUMAR est directeur du contenu éditorial de l’IAS.

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Pour atteindre cet équilibre, beaucoup d’entreprises s’orientent vers un mode de travail hybride. Mais Sid Sijbrandij a déjà compris ce qui se prépare. Le chef de la direction de GitLab, une firme de développement de logiciels et l’une des plus importantes organisations au monde fonctionnant uniquement en télétravail, croit que le modèle hybride nuira à la tendance vers le travail à distance. « Je prédis que le télétravail traversera des moments difficiles parce que le modèle hybride ne fonctionnera pas et que la plupart des entreprises reviendront au modèle fondé sur le bureau. » Mme Bury est du même avis. En mai dernier, elle a vendu l’éphémère bureau de Willful. « Si vous ne voulez pas embrasser une culture entièrement à distance, je suis absolument certaine que vous ne serez pas en mesure d’attirer et de retenir le talent à l’avenir. » DJ

PHOTOGRAPH BY WINDOWS/UNSPLASH


Before a board embraces the remote-work model, it should understand what employees will require to be successful.


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New seats at the table

PHOTOGRAPH BY VIOLETA STOIMENOVA/ISTOCK

Boards of directors are learning that the new economy requires they have more young grown-ups in the room, Virginia Galt writes Les conseils d’administration réalisent que la nouvelle économie exige davantage de jeunes autour de la table, écrit Virginia Galt ORGANIZATIONS CONFRONTING the forces of cultural change and digital transformation are increasingly turning to millennials and mid-career Gen-Xers for fresh insights and reverse mentorship. At the same time, they are also advancing the next generation of leaders and directors to be ready for the future. Some companies have established shadow boards or advisory committees. Many, including Canada’s Big Five banks, give young professionals their first taste of board service through an innovative program that matches them with charities and not-for-profit (NFP) organizations that can benefit from their energy and expertise. At KPMG Canada, input from the firm’s shadow board, known as the Leaders of Tomorrow Circle, has never been more crucial, says employee experience director Julia Innis. The frequency of meetings with CEO Elio Luongo has been increased, to monthly from quarterly, in response to the massive disruption caused by the pandemic, the faster pace at which strategic decisions have to be made, the war for talent and the importance of getting it right with return-to-work protocols, says Innis, who co-leads the shadow board sessions with Luongo.

LES ORGANISATIONS CONFRONTÉES aux forces du changement culturel et de la transformation numérique se tournent de plus en plus vers les milléniaux et la génération X pour obtenir des perspectives nouvelles et du mentorat inversé. Du même souffle, ils préparent la prochaine génération de leaders et d’administrateurs pour l’avenir. À cet égard, certaines entreprises ont d’ailleurs déjà établi des « conseils fantômes » et des comités consultatifs. Plusieurs d’entre elles – dont les cinq plus grandes banques canadiennes – offrent à de jeunes professionnels un premier avant-goût du travail en conseil au moyen d’un programme innovateur qui les associe à des organismes de bienfaisance et à des organisations à but non lucratif susceptibles de profiter de leur énergie et de leur expertise. Chez KPMG Canada, l’apport d’un premier conseil fantôme – désigné sous le nom de Cercle des leaders de demain – n’a jamais été aussi crucial, soutient Julia Innis, directrice expérience employé. De trimestrielle qu’elle était, la fréquence des réunions avec le chef de la direction Elio Luongo est devenue mensuelle, en réponse aux perturbations massives causées par la pandémie, à l’accélération du rythme auquel les décisions stratégiques doivent être prises, à la

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When TC Energy Corp. recently established a high-level national advisory committee to provide diverse perspectives to the board and executive team, executive recruiter Brenda LaRose was asked to ensure age diversity by enlisting “a youth” to join the committee. LaRose, a corporate director who serves on the boards of First Nations Bank of Canada and the Canadian Chamber of Commerce, tapped her network and recruited Krystal Abotossaway, a rising Toronto-Dominion Bank manager recognized by York University’s Top Changemakers Under 30 list in December, 2021. Abotossaway, an urban Ojibwe Anishinaabe Kwe, also serves as president of the Indigenous Professional Association of Canada. She has so much to contribute, says Ottawa-based LaRose, who provides leadership and career counselling services through her firm, BL Talent Solutions.

Calling all skills Altruvest Charitable Services program recruits and trains volunteers to serve on NFP boards. The small-to-mid-sized charities and not-for-profits that work with Altruvest often fly under the radar, despite enriching their local communities through such programs as hospice care, food banks, free financial clinics, after-school clubs, sailing and music instruction for children in priority neighbourhoods. The pandemic has left many of them starved for donations and volunteers, says the new CEO Shamil Hargovan, a dynamic young tech entrepreneur who is casting a wide net for an infusion of fresh board talent to help these organizations “compete for eyeballs in this digital world.” The ICD also offers not-for-profit governance training through its NFP Program and one-day courses. Board matching is available through the ICD Directors Register which includes board-ready ICD members with impressive credentials, experiences and skills. Charities and NFPs have traditionally rounded out the community expertise on their boards by recruiting legal, financial and management specialists from the private sector. “But we also need marketers, designers, creatives, writers [and] software engineers. We need all kinds of skill sets in these charities for them to succeed,” he adds. Hargovan brings entrepreneurial energy to the mix. A startup he co-founded in 2015 revolutionized the footwear industry through state-of-the-art digital manufacturing that customizes shoes to fit each wearer’s unique dimensions. Hargovan was lauded by Forbes as a 30-under-30 all-star in 2017, and his company’s commercial partnerships included Dr. Scholl’s and Lululemon by the time he left the business in 2020. With the diversity of skills needed to lead organizations in the new economy, KPMG Canada’s Leaders of Tomorrow Circle includes representatives from all business lines and regions. Anyone below the partnership ranks, from entry-level up, can apply to serve, Innis says. The open application process encourages greater diversity of thought. There’s a common question posed to applicants each year, with selection of shadow board members based on the creativity and depth of their responses. “There’s a broad range of topics that has been taken to Leaders of Tomorrow – things such as sustainability strategy, how to reduce

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Accomplished Generation Xers are making some inroads as boards see the value of including more directors who reflect the demographics of the markets they serve. Certains représentants accomplis de la génération X retiennent l’attention de conseils qui réalisent l’avantage de compter plus d’administrateurs qui reflètent la composition démographique des marchés qu’ils desservent.

guerre des talents et à l’importance de bien exécuter les protocoles de retour au travail, souligne Mme Innis, qui co-dirige les séances du conseil fantôme avec M. Luongo. Lorsque TC Energy Corp. a récemment mis sur pied un comité consultatif national pour fournir divers points de vue à son conseil et à son équipe de direction, sa recruteure en chef Brenda LaRose fut chargée de s’assurer d’une diversité d’âges en recrutant un jeune pour se joindre à ce comité. Mme LaRose, une administratrice de sociétés, a alors puisé dans son réseau pour choisir Krystal Abotossaway, une jeune gestionnaire en pleine ascension de la Banque To-


our carbon footprint [and] the hot topic . . . around returning to the office,” Innis says. When asked what tangible form of appreciation might matter most to KPMG Canada’s 10,000 people, who made work-from-home setups function throughout the pandemic, the 25-member shadow board was responsible, in large part, for the firm’s decision to provide paid Fridays off through July and August this year. Having a healthy and resilient work force is key, said CEO Luongo, in announcing the benefit. “We are giving all our people longer weekends through the summer to focus on the things that matter most to them – family, friends, pets, summer experiences and, most importantly, their well-being,” Luongo added.

High-level experience There’s nothing new about in-house professional development programs, stretch assignments and mentorship for designated upand-comers – all of which are valuable for building the succession pipeline – in the corporate sector. Less common, but gaining traction, is the concept of involving younger employees in high-level decision-making. KPMG was an early adopter of shadow boards – not only for the advice they provide to the executive team, but for the insights the shadow board members gain through exposure to issues beyond their day-job areas of expertise. Corporate director and organizational psychologist Guy Beaudin often recommends not-for-profit board service to clients as an excellent leadership development tool. “Most of my clients say their young executives need to develop strategic thinking. . . . By serving on a charitable or not-for-profit board, you see things from an enterprise perspective easily a decade before you would in your corporate role,” says Beaudin, a former long-time board member at the Heart and Stroke Foundation of Canada. While there’s no discernible movement to catapult millennials onto corporate boards just yet – most directors are recruited for the wisdom that comes with decades of experience – accomplished Generation Xers are making some inroads as boards see the value of including more directors who reflect the demographics of the markets they serve. “You want to have different perspectives at the table, and it’s not just about gender and ethnic diversity and regional diversity,” says corporate director Irfhan Rawji, a venture capitalist, tech entrepreneur and – in his early 40s – the youngest member of Canadian Western Bank’s board of directors. “They thought I would bring a unique and different perspective,” says Rawji, who contributes his technology expertise and experience as a business founder. He credits the more seasoned CWB directors – particularly Linda Hohol, who chairs the risk and human resources and compensation committees on which he serves – for guiding him through the intricacies of bank governance. “I’m learning a ton,” says Rawji, who had already accumulated extensive governance experience in the charitable and not-for-profit sectors. A Harvard MBA grad, Rawji was appointed chair of the Heart and Stroke Foundation board at the age of 31, and subsequently chaired the Glenbow Museum board in Calgary. That early volun-

ronto-Dominion reconnue en décembre 2021 par l’Université York dans sa liste des 30 meilleurs diplômés de moins de 30 ans. Mme Abotossaway, de la Nation Ojibwe Anishinaabe Kwe, est également présidente de l’Association des professionnels autochtones du Canada. Elle a beaucoup à apporter, affirme Mme LaRose.

Attirer tous les talents Altruvest Charitable Services recrute et forme des bénévoles pour siéger au conseil d’OBNL. Les petits et moyens organismes de bienfaisance qui travaillent aux côtés d’Altruvest évoluent souvent sous le radar, même s’ils enrichissent leurs communautés locales au moyen de programmes de services hospitaliers, de banques alimentaires, de cliniques gratuites de gestion budgétaire, de clubs parascolaires et d’enseignement nautique et musical dans des quartiers prioritaires. La pandémie a laissé beaucoup d’entre eux à court de dons et de bénévoles, explique le chef de la direction Shamil Hargovan, un jeune technicien entrepreneur dynamique qui lance un vaste filet à la recherche de talents frais pour siéger au conseil de ces organisations et les aider à « attirer l’attention dans le monde numérique ». L’institut des administrateurs de sociétés (IAS) offre également de la formation en matière de gouvernance dans le cadre de son programme destiné aux OBNL. Le jumelage est possible grâce à la Banque d’administrateurs de l’IAS, qui propose des administrateurs prêts à siéger et qui possèdent d’impressionnantes compétences et expériences. Les organismes de bienfaisance et OBNL ont traditionnellement complété l’expertise communautaire de leurs conseils en recrutant des spécialistes en droit, en finances et en gestion du secteur privé. « Mais nous avons aussi besoin de spécialistes du marketing, de créateurs, de rédacteurs et d’ingénieurs informaticiens. Il faut toute une gamme de compétences à ces organisations pour qu’elles réussissent », ajoute M. Hargovan. Celui-ci apporte au projet une énergie entrepreneuriale. Il a cofondé en 2015 une entreprise en démarrage qui a révolutionné l’industrie de la chaussure grâce à une fabrication numérique de pointe qui personnalise les chaussures en fonction de cha-que individu. Quand il a quitté l’entreprise en 2020, celle-ci avait noué des partenariats avec Dr Scholl et Lululemon, entre autres compagnies. Avec la diversité de compétences nécessaires pour diriger des organisations dans la nouvelle économie, le Cercle des leaders de demain de KPMG Canada compte des représentants de tous les secteurs d’activités et de toutes les régions. Chacun peut postuler. Le processus de candidature ouvert encourage une plus grande diversité de pensée. Une question commune est posée chaque année aux candidats, leur sélection comme membres du conseil fantôme étant fondée sur leur créativité et la profondeur de leurs réponses. « Un large éventail de sujets ont été abordés par les Leaders de demain, explique Julia Innis. Une stratégie de développement durable, les façons de réduire notre empreinte carbone et le sujet brûlant… du retour au bureau. » Lorsqu’on évoque quelle forme tangible d’appréciation a compté le plus pour les 10 000 employés de KPMG Canada, qui ont relevé le défi du télétravail tout au long de la pandémie, le conseil fantôme de 25 membres fut largement

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teer board experience was invaluable, Rawji says. “You learn how to dissect problems and how to approach challenges because you are being mentored by the senior executives and CEOs and other board members around the table. . . . Maybe it’s the first time you have seen that problem, but they can say ‘I have seen that problem five times before.’ You are getting the benefit of all their knowledge.”

Training and mentorship Altruvest CEO Hargovan, still in his early 30s, says the BoardMatch program appeals to millennials like himself who want to use their skills for the greater good – and to their employers, who see the professional development value. One of the joys of serving on an NFP board is the marvellous diversity, and an intergenerational mix that’s not typically found

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Une expérience de haut niveau Il n’y a rien de nouveau à propos des programmes internes de développement professionnel, des affectations de dépassement et de mentorat pour les jeunes de talent. Ils sont précieux pour l’établissement de la relève. Ce qui est moins commun mais gagne du terrain, c’est l’idée d’impliquer de jeunes employés dans la prise de décision de haut niveau. KPMG fut parmi les premiers à recourir aux conseils fantômes – non seulement pour les avis qu’ils prodiguent à l’équipe de direction, mais pour les nouvelles idées que leurs membres développent au contact d’enjeux qui vont audelà de leur zone d’expertise. L’administrateur de sociétés et psychologue des organisations Guy Beaudin recommande souvent le service de conseil d’OBNL comme un excellent outil de développement du leadership. « La plupart de mes clients affirment que leurs jeunes cadres doivent développer une pensée stratégique…. En siégeant au conseil d’un organisme de bienfaisance ou d’une OBNL, on voit facilement les choses d’un point de vue d’entreprise. » Même s’il n’existe pas encore de mouvement discernable pour catapulter les milléniaux dans les conseils d’administration d’entreprises, certains représentants accomplis de la génération X retiennent l’attention de conseils qui réalisent l’avantage de compter plus d’administrateurs qui reflètent la composition démographique des marchés qu’ils desservent. « On veut différents points de vue autour de la table et il ne s’agit pas seulement de genre et de diversité ethnique, explique l’administrateur de sociétés Irfhan Rawji, un entrepreneur au début de la quarantaine qui est le plus jeune membre du conseil d’administration de la Canadian Western Bank. M. Rawji apporte au conseil son expertise technologique et son expérience de fondateur d’une entreprise. « J’apprends énormément », dit celui qui a accumulé une solide expérience de gouvernance dans des organisations caritatives et des OBNL. Diplômé de Harvard, M. Rawji a accédé au conseil de la Fondation des maladies du cœur à l’âge de 31 ans, pour ensuite présider le conseil du Musée Glenbow de Calgary. Cette précoce expérience fut précieuse, assure-t-il. « On apprend à disséquer les problèmes et comment approcher les défis grâce au mentorat offert par les cadres et le chef de la direction ainsi que d’autres membres du conseil. On profite des avantages de tout ce savoir. »

Formation et mentorat Le chef de la direction d’Altruvest, Shamil Hargovan, qui est encore dans la trentaine, soutient que le programme BoardMatch fait appel aux milléniaux comme lui qui désirent utiliser leurs compétences au profit du bien commun et de leurs employeurs qui comprennent la valeur du développement professionnel.

PHOTOGRAPH BY PIXELFIT/ISTOCK

One of the joys of serving on an NFP board is the marvellous diversity, and an intergenerational mix that’s not typically found on corporate boards. L’un des plaisirs de siéger au conseil d’une OBNL réside dans la magnifique diversité que cet environnement procure et dans le mélange intergénérationnel qu’on y trouve.

responsable de la décision de la firme d’offrir des congés payés chaque vendredi en juillet et août de cette année. « Nous offrons à tous nos gens des weekends plus longs tout au long de l’été pour qu’ils puissent se concentrer sur ce qui compte le plus pour eux : la famille, les amis, les animaux de compagnie, les expériences estivales et, surtout, leur bien-être », souligne le chef de la direction Elio Luongo.


on corporate boards, says Danny Anckle, executive director of the Cecil Community Centre in Toronto. The centre is home to a community choir, seniors’ fitness classes, ESL lessons, youth basketball, an after-school science, technology, engineering, arts and mathematics program, and a free drop-in centre for preschoolers and their caregivers, among other services. Directors are recruited from the communities the Cecil Community Centre serves, as well as from nearby universities and social services organizations. If the board needs a lawyer, Anckle goes to the Law Society of Ontario; if it needs a human-resources professional, he taps the Human Resources Professionals Association. To bolster the business expertise, Anckle routinely turns to BoardMatch. Some of the young corporate recruits come with an added benefit – the whole-hearted backing of their employers. Banks and insurance companies, for instance, have provided free space for offsite board retreats, often laying on food and beverages as well. Mentorship is part of the deal. “Even if you are as green as they come, you will learn on the job.” DJ VIRGINIA GALT, a former business and education reporter for The Globe and Mail, covers legal, education and management issues for a number of publications.

L’un des plaisirs de siéger au conseil d’une OBNL réside dans la magnifique diversité que cet environnement procure et dans le mélange intergénérationnel qu’on y trouve, soutient Danny Anckle, directeur général du Cecil Community Centre de Toronto. Celuici accueille notamment un chœur communautaire, des classes de mise en forme à l’intention des aînés, des leçons d’anglais langue seconde, du basketball à l’intention des jeunes et des programmes parascolaires de science, de technologie, d’ingénierie, d’arts et de mathématiques, en plus d’un centre d’accueil gratuit pour les enfants d’âge préscolaire. Les administrateurs sont recrutés parmi les communautés desservies par le centre ainsi que les universités et les organisations de service social à proximité. Si le conseil a besoin d’un avocat, M. Anckle se tourne vers le Barreau de l’Ontario. S’il a besoin d’un professionnel des ressources humaines, il fait appel à l’Association des professionnels en ressources humaines. Pour renforcer son expertise en affaires, M. Anckle se tourne vers BoardMatch. Le mentorat fait partie de l’arrangement. « Même si vous êtes aussi vert que possible, vous apprendrez sur le tas. » DJ VIRGINIA GALT, ancienne journaliste aux affaires et à l’éducation pour le Globe and Mail, couvre les questions juridiques, d’éducation et de gestion pour un certain nombre de publications.

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BY Jeff Buckstein

Getting fired up about climate change Faced with some scary scenarios, boards are getting serious about risks, targets and opportunities Les conseils ajoutent les changements climatiques à leur agenda

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PHOTOGRAPH BY MATT HOWARD/UNSPLASH

As wildfires, droughts and extreme weather events are worsened by climate change, boards must assess a whole new range of risks.

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CLIMATE CHANGE has had a profound impact on the oversight role of directors who must steward their organizations through a complex new series of risks and opportunities. “This is all moving so quickly,” says Miranda Hubbs, vice-chair of the board with the Canadian Red Cross Society. “I think most of the large companies are pretty far down this path. But now you’re seeing a lot of smaller companies, that may not have the resources, especially for things like the scenario analysis to be able to keep up, are now struggling to catch up. Updated regulations are going to apply to them as well,” says Hubbs, who also serves on the boards of Imperial Oil Ltd., Nutrien Ltd. and the Public Sector Pension Investment Board (PSP Investments). The Task Force on Climate-related Financial Disclosures (TCFD), which was created by the Switzerland-based Financial Stability Board, has established a comprehensive set of best practice recommendations for businesses to follow. The TCFD recommendations (see sidebar) are widely recognized as being the “gold standard” that forms the backbone of the mandatory requirements, says Sarah Keyes, CEO of ESG Global Advisors in Toronto, and lead instructor of the ICD course “Board oversight of climate change.” “They are the most favoured by the capital markets as well as institutional investors.”

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LES CHANGEMENTS CLIMATIQUES ont eu un profond impact sur le rôle de surveillance des administrateurs qui doivent assurer l’intendance de leurs organisations au cœur d’une nouvelle série de risques et d’opportunités. « Tout va tellement vite », indique Miranda Hubbs, vice-présidente du conseil de la Croix-Rouge canadienne. « Je pense que la plupart des grandes entreprises sont assez avancées dans cette voie. Mais aujourd’hui, on voit beaucoup de plus petites organisations qui n’ont peut-être pas les ressources, en particulier pour se payer des analyses de scénarios pour être en mesure de poursuivre leurs activités, qui luttent pour rattraper leur retard. » Le Groupe de travail sur la publication d’informations financières relatives au climat (TCFD), créé par le Conseil de stabilité financière établi en Suisse, a édicté à l’intention des entreprises un ensemble complet de recommandations de meilleures pratiques. « Les recommandations du TCFD (voir encadré) sont largement reconnues comme ‘l’étalon-or’ qui forme l’épine dorsale des exigences en la matière », affirme Sarah Keyes, cheffe de la direction d’ESG Global Advisors de Toronto, et instructrice principale du cours de l’IAS « Surveillance des changements climatiques par le conseil ». Le TCFD aide les administrateurs à comprendre leur rôle élargi de surveillance en discutant des risques posés aux organisations par les changements climatiques.

PHOTOGRAPH BY PARRISH FREEMAN/UNSPLASH

Climate-related financial disclosures are critical for a business to maintain the confidence of its stakeholders.


The TCFD helps directors understand their expanded oversight role by discussing the risks that climate change poses for organizations. “On the physical side, with extreme weather events increasing in frequency and severity, we’re seeing sectors such as real estate dealing with issues like ‘What are the impacts of extreme weather events on the longevity of our buildings? What are the impacts on operating and maintenance expenditures, and the cost of insurance?’” says Keyes. The physical risks associated with climate change could prove particularly acute for the agriculture industry as a result of drought or flooding. Excessive and unpredictable snow, wind and ice storms will challenge the transportation sector, and wildfires have already taken a heavy toll on some utilities, says Hubbs. “A lot of governments and regulators, including securities regulators, are pushing organizations and requiring new rules related to climate change and greenhouse gas emissions disclosure as well as reduction,” says Keyes. One of the biggest things that directors are struggling with is making sure they understand how management is assessing the material impact of climate-related risks, and then integrating them into their enterprise risk register, she adds. “Climate-related risks are unlike most things that we measure and, as a result, enterprise risk management systems and governance structures and processes are going to have to adapt.”

Three questions Directors need to ensure that management fully understands the material challenges that climate change poses to the organization’s entire network, such as costs from potential disruption to its supply chain. “Your assets may be unaffected, but you may not be able to get any materials in because the roads are gone, the airports aren’t running, or your particular supplier got knocked out in an ice storm,” says Hubbs. “It’s understanding where and how all of those linkages are, and the only way you can capture all this is to run through those scenarios.” Keyes suggests that directors ask three key questions of management with respect to the impact of climate change on corporate risk and risk management. “The first question is ‘Have we conducted a climate-change-materiality assessment and identified the most material climate-related risks and opportunities for our business?’ The second is ‘Do we need to set [greenhouse gas] targets, including a net-zero target?’ And the third is ‘What do our stakeholders, including but not limited to investors, expect of us when it comes to responding to climate risk and reporting on climate change?’” Corporate boards should evaluate the level of expertise of directors to deal with climate change issues, including whether additional training and capacity building is required, says Michael Torrance, vice-president and chief sustainability officer at Bank of Montreal. Responsibility for assessing climate change issues and addressing them with management should be assigned to the appropriate committees. That might involve, for example, either a standalone committee on sustainability, or integrating that responsibility into another committee dealing with corporate risk, strategy or governance, Torrance says.

« Sur le plan physique, avec des événements de température extrême qui gagnent en fréquence et en gravité, on voit des secteurs comme l’immobilier qui doivent poser des questions, notamment sur l’impact des événements climatiques sur la longévité des immeubles et sur les dépenses d’exploitation et d’entretien ainsi que le coût des assurances », explique Mme Keyes. Les risques physiques associés aux changements climatiques pourraient s’avérer particulièrement graves pour l’industrie agricole à la suite de sécheresses ou d’inondations. Des chutes de neige excessives et imprévues, des vents violents et des tempêtes de verglas pourraient aussi affecter le secteur des transports et les feux de forêt ont déjà imposé de lourdes pertes à certains services publics, ajoute Mme Hubbs. « Beaucoup de gouvernements et d’organismes réglementaires – dont les autorités sur les valeurs mobilières – exercent des pressions sur les organisations et réclament de nouvelles règles reliées aux changements climatiques ainsi que la divulgation et la réduction des émissions de gaz à effet de serre », souligne Mme Keyes. L’un des plus importants combats menés par les administrateurs consiste à s’assurer de comprendre comment la direction évalue l’impact matériel des risques reliés au climat et les intègre à l’inventaire de risques de leur entreprise, ajoute-t-elle. « Les risques reliés au climat sont différents de ce que nous mesurons habituellement et les systèmes de gestion des risques d’entreprises et les structures et processus de gouvernance devront s’y adapter. »

Trois questions Les administrateurs doivent s’assurer que la direction comprend pleinement les défis matériels posés par les changements climatiques à tout le réseau de l’organisation, comme les coûts d’une perturbation éventuelle de sa chaîne logistique. « Il se peut que vos actifs soient épargnés, mais vous pourriez ne pas être en mesure d’acheminer des matériaux parce que les routes ont été emportées, que les aéroports sont fermés ou qu’un de vos fournisseurs a été immobilisé par une tempête de verglas, explique Mme Hubbs. Il s’agit de comprendre où et comment ces événements peuvent se produire et la seule façon d’en avoir une idée consiste à envisager ces scénarios. » « La première question, poursuit-elle, est la suivante : ‘Avonsnous mené une évaluation importante des changements climatiques et identifié les risques et opportunités les plus significatifs pour notre entreprise?’ La deuxième est : ‘Avons-nous besoin d’établir des cibles d‘émissions [de gaz à effet de serre], y compris une cible net-zéro?’ Et la troisième est : ‘Qu’est-ce que nos parties prenantes attendent de nous quand il s’agit de répondre aux risques climatiques?’ » Les conseils d’administration devraient évaluer le degré d’expertise de leurs membres à l’égard des enjeux climatiques ainsi que le besoin d’une formation additionnelle, estime Michael Torrance, vice-président et chef du développement durable à la Banque de Montréal. La responsabilité d’évaluer les questions liées aux changements climatiques et de prendre des mesures à ce sujet devrait être attribuée aux comités appropriés. Nous parlons ici, par exemple,

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With respect to financial information and reporting, board members need to ask questions to make sure they are comfortable that the data being reported by management are accurate and reliable, and consistent with information being reported elsewhere, such as sustainability reports, or even information on the corporate website or in company presentations, says Keyes. Torrance suggests that directors could ask management whether there are government policy incentives available to make cost-effective investments that might help decarbonize the business or increase the resilience of physical assets to climate risks. The role of the board is to make sure that the enterprise-wide risk identification and mitigation process, including for the impact of climate change, is robust and that the corporate disclosure of those risks is appropriate, says Jane Kinney, chair of the board for Nautilus Indemnity Holdings Ltd., a private insurance company headquartered in Bermuda. Stakeholders want good reporting in terms of management’s assessment of the risks faced, as well as the risk-mitigation activities being undertaken and the progress being made toward them, explains Kinney, who is also a board member with Cenovus Energy Inc., the Perimeter Institute for Theoretical Physics, a not-for-profit research centre in Waterloo, Ont., and Intact Financial Corp.

A long road Some organizations will take advantage of new opportunities in the race to prepare for the effects of climate change, such as emerging technologies for lowering carbon emissions and strong demand for new critical infrastructure. Some oil and gas companies, for example, are improving the efficiency of their operations to reduce environmental damage. “Canada is a natural resource-based economy. We know how to produce and move energy exceptionally well. So we’ve got this incredible competitive advantage opportunity in front of us on the global stage to be that leader in what energy transition looks like for a natural resource-based economy,” Keyes says. Every organization needs to be aware that if they fail to handle climate-change issues properly, they risk damaging their reputation. As organizations in industries such as oil and gas and mining try to attract top-notch talent in a competitive world, “they need to be able to explain to candidates how climate change is being considered by the organization in its strategy to demonstrate that it is a credible place to work,” Keyes says. In addition, climate-related financial disclosures about the achievement or failure to reach corporate metrics and targets are critical to maintaining good relations with stakeholders. Institutional investors and other capital market participants like credit rating agencies and financial regulators, as well as debt providers, are all looking for climate-related disclosure in order to make decisions about the business, she adds. One of the problems with climate change targets such as net-zero greenhouse gas emissions by 2050 is that they tend to be far out in the future. Interim milestones need to be established to reassure stakeholders that there is a path forward to achieve those goals, says Kinney.

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d’un comité distinct sur le développement durable ou d’intégrer cette responsabilité à un autre comité chargé des risques d’entreprise, de stratégie ou de gouvernance, poursuit M. Torrance. En ce qui concerne l’information financière, les membres du conseil doivent poser des questions afin de s’assurer qu’ils sont satisfaits quant à l’exactitude et la fiabilité des données qui leur sont présentées et que celles-ci correspondent aux informations publiées dans les rapports sur le développement durable, sur le site Web et les présentations de l’entreprise, souligne Mme Keyes. M. Torrance suggère que les administrateurs demandent à la direction quelles sont les mesures d’incitation disponibles pour effectuer des investissements efficients susceptibles de décarboniser l’entreprise ou d’accroître la résilience des actifs physiques aux risques climatiques. Le rôle du conseil consiste à s’assurer que les processus d’identification et d’atténuation des risques d’entreprise – y compris l’impact des changements climatiques, sont robustes et que la divulgation de ces risques par l’entreprise est appropriée, explique Jane Kinney, présidente du conseil de Nautilus Indemnity Holdings Ltd, une société privée d’assurance établie aux Bermudes. Les parties prenantes exigent une juste évaluation des risques de la part de la direction ainsi que des activités d’atténuation qui sont entreprises et des progrès réalisés, ajoute Mme Kinney.

Une longue route Certaines organisations tirent profit des nouvelles occasions qui se présentent dans la course pour se préparer aux effets des changements climatiques, comme les technologies émergentes de réduction des émissions de carbone et la forte demande de nouvelles infrastructures essentielles. Certaines entreprises pétrolières et gazières, par exemple, améliorent l’efficacité de leurs opérations pour réduire les dommages environnementaux. « L’économie canadienne est fondée sur les ressources, explique Mme Keyes. Nous avons une expertise exceptionnelle en matière de production et de transport d’énergie. Nous disposons donc d’un incroyable avantage concurrentiel à l’échelle mondiale pour être un leader dans la transition énergétique. » Alors que les industries pétrolières, gazières et minières tentent d’attirer les meilleurs talents dans un univers concurrentiel, « leurs organisations doivent être en mesure d’expliquer aux candidats quelle est leur stratégie à l’égard des changements climatiques afin de montrer qu’elles sont crédibles », dit Mme Keyes. En outre, la divulgation financière relative au climat quant à la réussite ou l’incapacité d’atteindre certaines cibles est essentielle pour maintenir de bonnes relations avec les parties prenantes. Les investisseurs institutionnels et autres participants au marché des capitaux, comme les agences de notation de crédit et les fournisseurs de crédit, fondent leurs décisions sur la divulgation de données relatives au climat, ajoute-t-elle. L’un des problèmes qui se posent avec les cibles relatives aux changements climatiques, telles que la perspective d’émissions net-zéro de gaz à effet de serre en 2050, est que ces cibles sont très lointaines. Il faut établir des étapes intermédiaires afin de rassurer


“You have to be focused now in terms of ‘What is the milestone for five years? What is it going to be for 2030? What will it be for 2035?’ — so stakeholders can see how we’re going to get there,” she says. Climate change goals must be more than aspirational for corporate directors and management, Hubbs says. “If you put something on the table, you’d better be able to show how you can achieve this. Because what we don’t want, anywhere, is more greenwashing. People are much more aware of this now.” “My experience is that directors are at the early stage of trying to educate themselves. But most are all over this because the impact of climate change is so huge for society and most of us are very concerned about the future for our kids,” Kinney says. DJ

les parties prenantes quant au fait qu’il existe un parcours en vue de réaliser ces objectifs, explique Mme Kinney. « On doit pouvoir se concentrer sur des questions comme : ‘Quelle sera la cible dans cinq ans?’, dit-elle. ‘Quelle sera la cible en 2030, en 2035.’ Ainsi, les parties prenantes peuvent voir comment on atteindra les objectifs. » Les administrateurs et les équipes de direction doivent avoir des objectifs plus ambitieux en matière de changements climatiques, soutient Mme Hubbs. « Si vous vous engagez à quelque chose, vous feriez mieux d’expliquer comment vous allez y parvenir. Parce que ce dont nous avons le moins besoin aujourd’hui, c’est d’encore plus d’écoblanchiment. » DJ

JEFF BUCKSTEIN is an Ottawa-based freelance business writer with a CPA, CGA designation. He writes about personal finance, accounting and other business-related issues and current events.

JEFF BUCKSTEIN est un journaliste pigiste établi à Ottawa et détenteur des titres CPA et CGA. Ses articles traitent de finances personnelles, de comptabilité et d’autres questions d’ordre

‘GOLD STANDARDS’ TO HELP GUIDE DIRECTORS The Task Force on Climate-related Financial Disclosures (TCFD) has made various recommendations for corporate directors and management to follow as they prepare their organizations for the effects of climate change. Here are some of the highlights.

Le Groupe de travail sur la publication d’informations financières relatives au climat (TCFD) a fait diverses recommandations aux administrateurs et équipes de direction sur les façons de se préparer aux effets des changements climatiques. En voici les faits saillants.

The TCFD recognizes four core elements of climate-related financial disclosures. They are: 1) Governance around climate-related risks and opportunities; 2) Strategy to outline the effects of climate-related risks on the organization; 3) Risk management to identify, assess and manage climate-related issues; 4) Targets to assess and manage risks and opportunities.

Le TCFD reconnaît quatre éléments de base en matière de divulgation financière reliée au climat. 1) La gouvernance des risques et opportunités reliés au climat. 2) Une stratégie relative aux effets des risques reliés au climat sur l’organisation. 3) La gestion du risque pour identifier, évaluer et gérer les enjeux climatiques. 4) Des cibles d’évaluation et de gestion des risques et opportunités.

The task force identifies two major categories of climate-related risks: “risks related to the transition to a lower-carbon economy and risks related to the physical impacts of climate change.” Transition risks include: policy, legal, technology, market and reputation risk. Physical risks include “increased severity of extreme weather events, such as cyclones, hurricanes, or floods,” and chronic risks, representing longer-term shifts in climate patterns, such as sustained higher temperatures and rising sea levels. The TCFD also lists various potential climate-related opportunities. These include: technological innovation to help curb emissions and the adoption of clean and renewable energy sources, which could lead to energy cost savings. -JB

Le Groupe de travail identifie deux grandes catégories de risques climatiques, soit « les risques reliés à la transition vers une économie moins dépendante du carbone et les risques reliés aux impacts physiques des changements climatiques ». Les risques reliés à la transition comprennent les aspects politiques, juridiques, technologiques, commerciaux et réputationnels. Les risques physiques comprennent « la gravité accrue des événements climatiques extrêmes comme les cyclones, ouragans ou inondations » ainsi que les risques chroniques représentant des changements à long terme des modèles climatiques tels que des températures élevées soutenues et une augmentation du niveau des mers. -JB

ICD.CA | 43


ICD DIRECTORS ON THE MOVE

DIRECTORS ON THE MOVE The ICD would like to congratulate the following members on their recent board appointments Agriculture & Food Production Jennifer Wood, ICD.D DIRECTOR UNITED FARMERS OF ALBERTA COOPERATIVE LTD.

Banking & Financial Services Peter Adamek, ICD.D

DIRECTOR HAMPSHIRE INVESTMENT GROUP INC.

Rod Hick

DIRECTOR FIRST NATIONS BANK OF CANADA

Brenda LaRose

DIRECTOR FIRST NATIONS BANK OF CANADA

Lynn Loewen, ICD.D DIRECTOR NATIONAL BANK OF CANADA

Rita Achrekar, ICD.D DIRECTOR ICICI BANK CANADA

Firdos Somji, ICD.D

DIRECTOR COAST CAPITAL SAVINGS FEDERAL CREDIT UNION

Richard Austin, ICD.D DIRECTOR PAN-AFRICAN CREDIT UNION

Carolyn Burke

Jennifer Koury, ICD.D DIRECTOR BIRD CONSTRUCTION

Mary Garden, ICD.D

DIRECTOR DIRTT ENVIRONMENTAL SOLUTIONS LTD.

Education

Jennifer Wood, ICD.D GOVERNOR OLDS COLLEGE

Government

Celia Kaufman, ICD.D DIRECTOR SHARED HEALTH MANITOBA

Keren Taylor-Hughes, ICD.D DIRECTOR SHARED HEALTH MANITOBA

Maureen Moneta, ICD.D DIRECTOR ALBERTA GAMING, LIQUOR AND CANNABIS COMMISSION

Robert Poirier, ICD.D

DIRECTOR ONTARIO LOTTERY AND GAMING CORP.

Jennifer Roedding, ICD.D

DIRECTOR ONTARIO LOTTERY AND GAMING CORP.

Anar Shamji Popatia, ICD.D

DIRECTOR SBI CANADA BANK

DIRECTOR LAND TITLE & SURVEY AUTHORITY OF BC

Building & Construction

Ross Bricker, ICD.D

J. Kim Fennell

DIRECTOR BIRD CONSTRUCTION

DIRECTOR AGRICULTURE FINANCIAL SERVICES CORP.

Darlene Hyde, ICD.D

CHAIR STABILIZATION CENTRAL CREDIT UNION

Anne Day, ICD.D COMMISSIONER NOVA SCOTIA SECURITIES COMMISSION

Margie Parikh

DIRECTOR CANADA REVENUE AGENCY

Karen McCarthy, ICD.D CHAIR INDEPENDENT APPOINTMENTS COMMISSION OF NEWFOUNDLAND AND LABRADOR

William Mahoney, ICD.D COMMISSIONER INDEPENDENT APPOINTMENTS COMMISSION OF NEWFOUNDLAND AND LABRADOR

Insurance

Richard Fortier, ICD.D DIRECTOR QUEBEC BLUE CROSS

Joanne Vézina

CHAIR HUMANIA ASSURANCES

Metals & Mining

Chantal Gosselin, ICD.D DIRECTOR PRIME MINING CORP.

Wendy Kei, F.ICD

DIRECTOR CENTERRA GOLD INC.

Eric Klein, ICD.D

Real Estate

Paula Rogers

DIRECTOR GREENROCK REAL ESTATE ADVISORS

DIRECTOR 79NORTH INC.

DIRECTOR ENTRÉE RESOURCES LTD.

Not-for-Profit

Denise Carpenter, ICD.D

CHAIR RONALD MCDONALD HOUSE CHARITIES TORONTO

Ben Voss, ICD.D

DIRECTOR DIABETES CANADA

Jason Ribeiro

DIRECTOR SPORT CALGARY

Carmelina Riccio

DIRECTOR PROSPER CANADA

Caroline Power

VICE-CHAIR CREDIT CANADA DEBT SOLUTIONS

Peter Love, ICD.D

DIRECTOR CENTRE FOR COMMUNITY ENERGY TRANSFORMATION

Oil & Gas

Patricia McLeod, ICD.D CHAIR PIERIDAE ENERGY LTD.

Gail Harding, ICD.D.

DIRECTOR PIERIDAE ENERGY LTD.

Allison Mendes, ICD.D

Kelly Smith, ICD.D TRUSTEE NORTHVIEW FUND

Hazel Claxton, ICD.D TRUSTEE ALLIED PROPERTIES REAL ESTATE INVESTMENT TRUST

Jane Marshall, ICD.D TRUSTEE BSR REAL ESTATE INVESTMENT TRUST

Retail & Consumer Products

Anne Fitzgerald, ICD.D DIRECTOR NOVA CANNABIS INC.

Brad Krizan, ICD.D

CHAIR CALGARY CO-OPERATIVE ASSOCIATION LTD.

Technology

Gaston Tano, ICD.D

DIRECTOR CLOUDMD SOFTWARE & SERVICES INC.

Transportation Wendy Kei, F.ICD DIRECTOR NFI GROUP INC.

Jane Skoblo, ICD.D DIRECTOR LOGISTEC CORP.

Cory Furman

DIRECTOR REGINA AIRPORT AUTHORITY

Send your board appointment publication requests to: Sheldon Mahabir, Director of Member Engagement, smahabir@icd.ca 44 | DIRECTOR JOURNAL


ICD-ROTMAN DIRECTORS EDUCATION PROGRAM.

CANADA’S LEADING PROGRAM FOR DIRECTORS. The ICD-Rotman Directors Education Program is the leading educational program for experienced board directors seeking to advance their contributions to Canada’s boardrooms and beyond.

UPCOMING DEP START DATES September 19-21, 2022

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A joint initiative of ICD and Rotman, this comprehensive program offers both a national and local perspective, through leading business schools across Canada. With the goal of building competencies deemed necessary to be an effective director in today’s challenging world, the DEP provides insight from both an academic and real-world, director lens perspective. Course participants benefit from the rich experience of their peers in navigating their role within complex board dynamics. Completion of the DEP and success in the ICD led examination process, leads to the highly recognized ICD.D designation, within a one-year timeframe.

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Interested experienced directors are encouraged to submit their application to the ICD, along with references, for consideration into the program.

APPLY ONLINE ICD.CA/DEP Application process is now open and is subject to availability. Application deadlines are 4-6 weeks before the class start date.

Think beyond the boardroom.

The DEP consists of 4 modules. Modules will be in person according to local health and safety guidelines. Application process is now open and is subject to availability. Application deadlines are 4-6 weeks before the class start date.


Emerging from the pandemic, the hybrid workplace will spell the end of rigid structures of time and place and mark a battle for power and control, author Julia Hobsbawn argues in her book The Nowhere Office.

46 | DIRECTOR JOURNAL


RECOMMENDED READING

BY Shirley Won

Office teardown

Tomorrow’s workplace will be a venue for learning, socializing and even sleeping, where the traditional leadership structure dissolves, a new book predicts

THE COVID-19 PANDEMIC was a global black swan event that triggered a temporary but lengthy shutdown of offices and forced many employees to work remotely. With widespread vaccination leading to a reopening of economies, employers and employees are facing a new normal. Some people want to keep working from home, or another remote location. Some only want to return to the office part-time. Others are joining the so-called “Great Resignation,” and are quitting their jobs for higher pay or more rewarding work elsewhere. In

her book The Nowhere Office: Reinventing Work and the Workplace of the Future, British entrepreneur, writer and consultant Julia Hobsbawn argues that the traditional office was doomed anyway, and she offers ways to navigate today’s workplace challenges. Hobsbawn, a co-host of the podcast The Nowhere Office, is also the author of several books. Director Journal asked Hobsbawn why a remote-work trend was inevitable, how the office may evolve in a hybrid-work model, and what impact a potential recession could have on the job landscape.

ICD.CA | 47


a fixed place, and the technology of the day was the typewriter. It was a rigid and hierarchical place, but the world was rebuilding [after the Second World War]. The “mezzanine years,” from 1978 to 2006, was the second phase, when there was an awareness of a lack of fairness in the workplace, and the phrase work-life balance came into play. Technology had also moved to the desktop computer. The “co-working years,” the third phase from 2007 to 2019, coincided with the Internet. That was what really killed the office – not the pandemic. Generation Z also came into the job market, saying it wanted work flexibility. Co-working spaces emerged as a trend. The nowhere office, the fourth phase, starting in March 2020 [with the pandemic], was when office life as we knew it stopped overnight. A tug of war has emerged between companies wanting employees back full time in the office, and employees who favour remote work. How do you see a hybrid-work model as a compromise?

“The nowhere office” is a term you coined. Why write a book about it?

The nowhere office is a phase in the history of modern work that began with a pandemic and continues today. It’s a place, which is nowhere in relation to the old norms of commuting to an office on a regular schedule. It’s not a statement against the office. It is about this moment where everything is changing around knowledge work and office life. This book evolved after I was asked to chair the Workshift Commis-

48 | DIRECTOR JOURNAL

sion for the British think-tank Demos, and to write a paper about work. It makes the case for change so that work becomes fairer, more productive, and better functioning in a post-pandemic world. You see the nowhere office as the fourth phase of work that was spurred on by Covid-19 but had already been heading in that direction. Why do you think so?

The first phase, from 1945 to 1977, is what I call “the optimism years.” The office was

Workers in the knowledge economy are in a tight labour market and are using that muscle to demand hybrid work. But not everybody in a single workplace has the opportunity. Some people must be present on site, or don’t have the luxury of technology to aid them in working from home. The main hybrid model now is three days in the office and two days out. But there are all sorts of iterations on how to get together for social cohesion and culture, or to get together and brainstorm. E-mails, sending documents and other collaborations are now much easier on technology platforms than they are by commuting to an office. But everything is being reimagined and redesigned. There is no one size fits all. What will the future physical office look like in a hybrid model?

There will be less office space because people will be hot-desking [using the same desks at different times, depending on staffing that day]; or larger, wealthier organizations will take up more office space to use for living, work and leisure. I believe that the office of the future is going to be a place to learn or be social. The


RECOMMENDED READING

THE NOWHERE OFFICE IS A PHASE IN THE HISTORY OF MODERN WORK THAT BEGAN WITH A PANDEMIC AND CONTINUES TODAY. IT’S A PLACE, WHICH IS NOWHERE IN RELATION TO THE OLD NORMS OF COMMUTING TO AN OFFICE ON A REGULAR SCHEDULE. big shift is that people don’t want to waste time commuting. If organizations insist on making presenteeism almost compulsory – at least four days a week – then they are going to have to redesign offices. It’s not even far-fetched that, instead of having your own office, you have your own room with a bed and a desk where you can stay and then go back home. In my opinion, the office will be used for coming into for immersive periods of time and going away for extended periods, or be used for short stays of no more than three days a week for learning and networking. I am now working on what the nowhere office could look like with Katz Architecture in New York, which is at the forefront of the live-work space movement. Some companies are reluctant to embrace a hybrid model because of worries about employees gaming the system by slacking off. What is your view?

If there is no trust between an employer and its work force – be it salaried employees, freelancers, or contractors — you will never get great productivity. Any organization that tries to shame or compel workers

to return to work or manage a work force by digital surveillance is making a mistake. Companies need to look at whether their [workers’] concerns are valid … but it’s also an attitudinal shift that needs to be made. The biggest change in the nowhere office phase is the end of the rigid structures of time and place, and the end of leaders and management as they knew it before the pandemic. It’s a power struggle for control. In what economists have dubbed “The Great Resignation” since mid-2021, more workers have quit their jobs in record numbers. What’s behind this move?

It is more of a “Great Evaluation” than a Great Resignation. People want meaning and purpose in their work and home life. That, I think, is the big shift. There is a lot of data from the management-consulting firm McKinsey & Co. on this trend. The evidence seems to suggest that older workers are deciding to go freelance and become self-employed. Noon, a British online media platform, indicates that more women in mid-life are becoming entrepreneurs rather than being controlled and managed. Younger people also want freedom and mo-

bility – they don’t want to be tied down. The data shows that this trend is across all demographics. A labour shortage has given many workers the upper hand, but some companies now have a freeze on new hires or are laying off workers amid fears of a recession. Could this mean a setback for the hybrid-office model?

If there is an imperative to go back to the office or lose your job, I would guess that some people will keep their jobs. Recessions globally may force people back to an office that has warmer heating and better coffee than their home. But it won’t last because the shift is that people don’t want to work full-time from a single place. I still think that to be competitive in a talent-led, knowledge economy, you need to offer the hybrid option. That trend is still intact. DJ SHIRLEY WON is a Toronto-based freelance journalist and former business and investment reporter for The Globe and Mail. She also worked as a business reporter for the Montreal Gazette, covering transportation, real estate, retail and banking.

ICD.CA | 49


PARTING SHOT

Summer Fridays are still hot

PHOTOGRAPH BY BENEDEK/ISTOCK

Despite the blurred lines between home and work these days, summer Fridays remain sacred for many. In a bid to woo workers and banish burnout, organizations are increasingly offering time off on Fridays in July and August. According to ZipRecruiter Inc., job postings boasting this perk are up 56 per cent from last year. One such company is Basis Technologies, which allows employees to log off early as part of its “Flex Fridays” pilot. Similarly, KPMG Canada’s new “Summer Splash” program makes every weekend a long weekend. Wealthy editors in 1960s Manhattan are said to have begun the beloved tradition. Publishing house and advertising agency professionals of the Mad Men era left the office early to beat the weekend rush to the Hamptons. Today, many workers still use the day to get a head start on their weekend getaways. A survey of 1,000 Americans finds spending time with children, recreational activities and going to the beach are also Friday favourites. - Prasanthi Vasanthakumar

50 | DIRECTOR JOURNAL


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