Taking action in support of our vital natural resource sector

Canada has once again received top marks on the annual Human Freedom Index (HFI), placing 13th out of 165 countries evaluated by the CATO Institute's and Fraser Institute’s annual report.

Compared to other major energy, food, lumber and mineral exporters abroad, Canada ranks among the highest on the Environmental, Social and Governance (ESG) related index in 2022 – once again confirming why our country is one of the best places on Earth to source natural resources.

Why is the HFI important, you might ask?

The HFI is one of the most comprehensive indexes of its kind. Examining 83 different key indicators of personal and economic freedoms ranging from freedom of religion and movement to the rule of law and property rights, it is an all-inclusive “global measurement of personal, civil and economic freedom.”

Here are the top 15 countries on the Human Freedom Index 2022, along with how the world’s top 15 oil exporters rank for comparison and some insight into why it matters where our energy and other resources come from.

Top 15 Human Freedom Index 2022 Rankings

1. Switzerland
2. New Zealand
3. Estonia
4. Denmark
5. Ireland
6. Sweden
7. Iceland
8. Finland
9. Netherlands
10. Luxembourg
11. Australia
12. Norway
13. Canada
14. Taiwan
15. Latvia

HFI Methodology

The HFI uses 83 distinct indicators of personal freedom and economic freedom (both weighted 50% of the total score) which fall into one of the following main categories:

> Rule of Law
> Security and Safety
> Movement
> Religion
> Association, Assembly, and Civil Society
> Expression and Information
> Relationships
> Size of Government
> Legal System and Property Rights
> Sound Money
> Freedom to Trade Internationally
> Regulation

Each indicator above has a subset of categories which are ranked on a scale of 0 to 10, where 10 represents best marks. The scores are averaged and then tallied to determine the rankings for each country on the HFI.

HFI 2022 – World’s Top 10 Oil Exporters

Why should Canada and our allies care about where we get our natural resources? Look no further than the HFI’s rankings for the world’s top 15 oil exporters^[1] – and ask yourself what country you would choose to buy your energy from:

1. Saudi Arabia – HFI rank: 159th
2. Russia – HFI rank: 119th
3. Canada – HFI rank: 13th
4. Iraq – HFI rank: 157th
5. UAE – HFI rank: 127th
6. USA – HFI rank: 23rd
7. Norway – HFI rank: 11th
8. Kuwait – HFI rank: 113th
9. Nigeria – HFI rank: 124th
10. Brazil – HFI rank: 80th
11. Libya – HFI rank: 155th
12. Angola – HFI rank: 122nd
13. Oman – HFI rank: 134th
14. Mexico – HFI rank: 98th
15. Kazakhstan – HFI rank: 107th

Why the Human Freedom Index Matters

The HFI measures important freedoms such as the ability for people to enjoy freedom of speech, religion, association and assembly to name a few - all of which are top of the list when it comes to ESG criteria. Additionally, countries where companies are free to do business without government interference are deemed more attractive to investors.

Hence, many investors focus on growing their portfolios in countries with high levels of freedom and democracy. Unsurprisingly, the HFI found a strong relationship between human freedom and democracy.

With Canada continually ranking much higher than many other top resource exporting countries on multiple ESG metrics, the question is when our country will start getting the recognition it deserves.

Canada is one of the most transparent, regulated and environmentally responsible natural resource producers on the planet. Our country should be one of the last ones “out of the pool” to supply the world with the energy, food, softwood and minerals it needs!

Join Us Today!

Canada is one of the few remaining full democracies with an abundance of natural resources ranging from minerals and softwood to food and energy. We are also global leaders on ESG criteria and should be a destination of choice for new investment into natural resource supply chains.

We invite you to join us online to learn more about Canada's world-class ESG rankings on Twitter, Instagram and Facebook today! We hope to see you there!

An inclusive approach to support all #Canadian energy and resource production is the pragmatic thing to do. pic.twitter.com/wNSf0bRmoM

— Canada Action (@CanadaAction) February 21, 2023

SOURCES

_{1 - Worldstopexports.com – Crude Oil Exports by Country, Date Accessed: February 2023 (https://www.worldstopexports.com/worlds-top-oil-exports-country/)}