Canada has once again been ranked as one of the most peaceful nations of the world! The Institute for Economics and Peace (IEP) placed Canada 6th out of 163 countries on its 14th edition of the Global Peace Index (GPI). Way to go Canada!
The GPI covers 99.7 per cent of the world’s population, using 23 indicators drawn from highly respected sources which are categorized into three main areas:
> Level of Societal Safety and Security
> Extent of Ongoing Domestic and International Conflict
> Degree of Militarization
Ranking high on the GPI is indicative of Canada’s continued role as a leader on the world stage. As one of the world’s top oil exporters, it provides insight into Canada’s excellent record on environmental, social and governance (ESG) investor criteria as it turns out peace and sustainable development are inextricably linked.
Top 25 Nations on the Global Peace Index 2020
#1 – Iceland
#2 – New Zealand
#3 – Portugal
#4 – Austria
#5 – Denmark
#6 – Canada
#7 – Singapore
#8 – Czech Republic
#9 – Japan
#10 – Switzerland
#11 – Slovenia
#12 – Ireland
#13 – Australia
#14 – Finland
#15 – Sweden
#16 – Germany
#17 – Belgium
#17 – Norway
#19 – Bhutan
#20 – Malaysia
#21 – Netherlands
#22 – Romania
#23 – Mauritius
#24 – Hungary
#25 - Slovakia
Of the top 25 nations on the GPI 2020, notice that Canada is the only top 10 major oil exporting nation that ranked very high. Kuwait is the next highest top 10 oil exporter at 39th out of 163 nations, with the United Arab Emirates coming in next at 41st. The United States ranked 121st on the GPI 2020.
Sustainable Development and Peace
According to the IEP, peace is a key component of sustainable development. A healthy business environment must have the favourable social, political and economic conditions to foster sustainable development over a longer period of time.
Global investors are always carefully observing conditions described in the IEP’s Eight Pillars of Positive Peace:
- Well-functioning government
- Sound business environment
- Equitable distribution of resources
- Acceptance of the rights of others
- Good relations with neighbours
- Free flow of information
- High levels of human capital
- Low levels of corruption
…which correlate to attaining desirable capital-related outcomes in prosperous business environments. Today, more and more investors are looking towards ESG criteria like the Eight Pillars to act as a 'guiding light' on where to put their money.
Looking at the global oil and gas industry as an example. In terms of projected growing oil demand through to the mid 2030s, the question becomes:
Do investors want to put their money in an unstable, war-torn nation with a terrible human rights record and high levels of corruption? Or, do they want to invest in a stable, transparent and free democracy like Canada which is a world-leader for environmentally-friendly and sustainable natural resource development practices?
We wish that the answer to this question was easy. Unfortunately, many investors are pulling capital from Canada’s natural resource sector – and have been since 2014 – despite our nation being a world leader in sustainable development as indicated by the GPI and several other ESG-related indexes.
Other examples of Canada’s world-class ESG leadership:
Canada is a Global ESG Leader
Today’s forecasts project global oil demand will continue to grow over the next decade to at least the mid 2030s. As a global leader in responsible, sustainable natural resource development, Canada should be a choice supplier of the world for oil and gas in the decades ahead.
Canadians must start to stand up and recognize our country as the world-leader it is when it comes to ESG. We are not the ‘environmental laggard’ that various special interest and environmental organizations would like you to believe.
Canadians need to support our major wealth-generating industries like oil and gas, mining and forestry that employ millions of people from coast-to-coast and generate tens of billions in revenues for our governments. Post COVID-19, we will need to rely on these industries even further to kick-start the economy.
If you’re with us on supporting Canadian prosperity through the responsible development of our natural resources, we invite you to join us online - we hope to see you there!