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Message to Stakeholders
Year in Review
Participation Increases Accessibility
2013 was a year of consolidation and collaboration, building on the strengths of a number of initiatives we worked on in 2012. Our focus in 2013 was on mixed rigid plastics, composite paper packaging and curbside battery collection—to increase diversion of these materials. Through the participation of many talented, expert and committed stakeholders, we continue to increase consumer accessibility to recycling programs and move towards a common collection of materials at curbsides across Ontario.
Recycle More: Plastic Recycling Campaign September 23 – November 17, 2013
Building on our work in 2012, we partnered with The Continuous Improvement Fund (CIF) and seven GTA and Golden Horseshoe municipalities to design and implement an awareness campaign to increase the capture rates of mixed plastic packaging in the Blue Box. The collaborative effort—which included Durham, Halton, Hamilton, Peel, York, Niagara and Toronto became the impetus for some Ontario municipalities to add mixed rigid plastics to their curbside collection programs. It’s initiatives like these that bring us closer to a standard group of materials being accepted in Blue Boxes across the province.
The campaign garnered over 27 million impressions in radio, newsprint, electronic media, billboards and social media. Stewardship Ontario and The CIF provided cash funding and the seven municipalities provided in-kind lineage1. The municipalities that participated make up over 70 per cent of the provincial Blue Box Program tonnage.
Composite Paper Packaging Project
Following initial testing of curbside collection of beverage cups through pilot programs in Burlington and the County of Brant in 2012, we partnered with Tim Hortons and The Carton Council of Canada to develop markets for composite paper packaging, and to increase its capture rate in the municipal Blue Box systems.
The purpose of this project is to determine:
- Whether a broader assortment of coated paper packaging (CPP), also known as polycoat, can be sorted into one grade at Municipal Recycling Facilities (MRFs) either mechanically or manually
- What is the optimal carton grade specification
- What are the benefits and incremental costs of making a wider range of polycoat recycling accessible to more Ontarians
The project’s first phase, during the summer of 2013, set out to determine the effectiveness of current manual and mechanical sorting methods of composite paper packaging in four Ontario MRFs. Tests were completed in single and two-stream facilities in London, Bluewater, Hamilton and Halton.
Phase two, which is scheduled for 2014, will determine actual capture rates of high grade white fibre in end mills, as well as quantify and document the impact of expanding the types of polycoated paper included in carton bales that are sent to fibre mills for reprocessing. The focus of inquiry will be on:
- The effect on mill operations
- The extent of pulping rejects
- Changes in fibre yield
- Variances in fibre quality
As a result of the research to date, it has been determined that the current PSI-52 grade (gable and aseptic packaging) is sustainable and provides for the recovery of high grade fibre. However, there is currently insufficient volume to provide the scale necessary to promote market flexibility and achieve competitive pricing.
Increasing Battery Recycling through Improved Accessibility
In 2013, we added nearly 1,000 new battery collection sites to our vast network, increasing the total number of collection sites to 4,184.
Following a successful 2012 pilot project to provide more convenient opportunities for consumers to recycle their single-use batteries at curbside, 26 Ontario communities participated in the spring and fall battery campaigns during 2013—in Durham Region, Quinte, Dufferin County and the City of Peterborough.
We also developed the Curbside Battery Collection Guide for municipalities and service providers, documenting processes and procedures for consistent collection and processing.
The Program Guide:
- Provides guidelines and materials for Promotion and Education (P&E) Campaigns to advertise curbside collection
- Offers service providers a standard incentive rate (+ fuel) to kick off the program
- Opens up the battery recycling initiative to transporters and municipalities able to manage the program
Stewardship Ontario, in conjunction with Port Colborne’s Raw Materials Company Inc. (RMC)—an approved Orange Drop materials processor—introduced the Curbside Battery Recycling Program at the Municipal Waste Association (MWA) conference. We were also able to leverage RMC’s existing relationships with municipalities to extend this convenient way of recycling batteries into new markets.
- In 2013, over 500,000 households across Ontario conveniently recycled 36,000 kilograms of spent batteries at curbside. This municipal collection is an extension of the Blue Box Program, which reaches over 95 per cent of households in the province
- Over 86 per cent of the batteries’ materials are used as feedstock in biological systems as agricultural fertilizer and industrial systems for the manufacturing of new products
- Recovered materials like zinc, manganese, potassium and steel are upcycled—not disposed of in landfill—converted into smelter slag and used as aggregate replacement
- The Curbside Battery Recycling Program is sponsored by Stewardship Ontario — created on behalf of battery manufacturers to increase battery collection in the province of Ontario
As a result of these initiatives, we collected 1,271 tonnes of batteries in 2013, an increase of 31.6 per cent versus 2012.
1 As part of the funding provided by industry to cover the cost of the Blue Box Program, the Canadian Newspaper Association and the Ontario Community Newspapers Association provide media space in-kind to municipalities to promote their diversion programs. WDO manages this program.
The campaign garnered over 27 million impressions in radio, newsprint, electronic media, billboards and social media.
we partnered with Tim Hortons and The Carton Council of Canada to develop markets for composite paper packaging, and to increase its capture rate in the municipal Blue Box systems
As a result of these initiatives, we collected 1,271 tonnes of batteries in 2013, an increase of 31.6% versus 2012.
Year in Review
Participation Creates Supply Chain Efficiencies
With a concentration on performance, 2013 was also a year for program harmonization and changes to service provider reporting processes.
We created efficiencies in our Orange Drop Programs (MHSW):
- Automotive Incentive Program (Antifreeze, Oil & Antifreeze Containers and Oil Filters)
- Municipal Depot Transportation and Processing Incentive Program (Paints and Coatings, Batteries, Antifreeze, Oil & Antifreeze Containers, Oil Filters, Refillable and Non-Refillable Pressurized Containers)
- Battery Incentive Program (Single-Use Dry Cell Batteries)
- Return to Retail (Paints & Coatings, Single-Use Dry Cell Batteries)
Better Reporting Processes for Service Providers:
In 2013, Ontario’s municipalities were newly able to report claim submissions online, using the WeRecycle Portal. This easy-to-use reporting tool, accessed from any device with Internet access, replaces the previous spreadsheet-and-email-based system. The WeRecycle Portal facilitates a structured reporting process, feeding municipal data in real time, and generating immediate acknowledgement of receipt. To expedite claims processing and payment, we eliminated the need for municipalities to mail invoices, and payments are now paperless as we have moved to Electronic Funds Transfer (EFT) for most municipalities. We also now make automatic payments to cover municipal depot hours at a fixed monthly rate. The streamlined process speeds up claims and payment, increases transparency and security, improves communications and cuts administrative time and expenses for Stewardship Ontario and municipalities. Municipalities were introduced to the new reporting tool through:
- Training—June 20 and 25, 2013: The Stewardship Ontario Service Provider Reporting Team and Field Services Team led on-site training sessions in Peterborough and Halton region for 19 municipal representatives.
- Webinar—July 10, 2013: This replicated the on-site training for 160 registrants who could not attend training in person.
We took the following steps to harmonize our programs:
- We rebalanced incentive rates to reflect the newly created zones, in recognition of distance and travel times
- We brought in a fuel surcharge rate, to share the risk of fluctuating fuel prices
- We introduced transportation audits to ensure equitable, balanced programs
Year in Review
Participation Increases Awareness
Stewardship Ontario conducts Promotion and Education (P&E) activities to increase awareness of its programs, drive behaviour change and support material collection. In 2013, we partnered with the Continuous Improvement Fund (CIF) and seven Ontario municipalities to design and implement an awareness campaign to increase the capture rates of mixed plastic packaging in the Blue Box.
Recycle More Final Media Analysis – Summary
Media | Total Impressions |
WDO In-Kind Lineage | 13,551,348 |
Toronto Star Life | 2,734,095 |
Google Ad Words | 1,840,196 |
Radio | 8,000,000 |
Walmart Digital Ads | 2,900,000 |
Billboards | N/A |
Campaign Total | 27,185,443 |
The Orange Drop Program (MHSW) P&E activities in support of collection channels—depots, events, retailers, parks and incentive partners—are designed to achieve diversion targets for all MHSW materials, and specific activities are implemented to increase collection of materials that are underperforming.
2013 Orange Drop Activities
Activity Type | Number |
Family Activities/Events | 25 |
Battery Campaign | See Notes Below |
Channel Advertising Support | 27 |
Total | 66+ |
Battery Recycling Advertising Campaign
We collected 31.6 per cent more batteries in 2013 than we did in 2012, fueled in part by a targeted advertising campaign that ran from April to June, achieving 215 million impressions and including the following media:
- Radio – six radio stations across Ontario
- Out of home – three prominently placed billboards
- Print advertising – Metro and the Green Guide, distributed with the Globe & Mail
- Transit advertising – TTC subways and Go Train
- Online – Google ad words
Social Media
Our social media presence has helped to engage stakeholders and drive meaningful discussions on the importance of recycling hazardous waste, reaching multiple demographics of waste generators. Facebook and Twitter efforts supported the battery campaign messaging and encouraged recycling through environmental awareness. We invite you to join the conversation by following us on Twitter @InnovationGreen and @makethedrop.
THE NUMBER OF MUNICIPAL WASTE calendars distributed IN 31 municipalities with information about our program to households
Community Outreach Program
Community outreach helps raise awareness of the Orange Drop Program. By meeting with Ontarians, we educate the public about the importance of safe disposal, and explain what happens to the materials they recycle.
In 2013, our Orange Drop Brand Ambassadors attended local, trade and community events between March 11 and August 18, including the Ontario Science Centre’s March break activities, the Green Living show, PoultryFest Niagara, Sparks Street Canada Day celebrations, St. Catharine’s Classic Car Show, Mississauga RibFest, Thunder Bay CLE Fair and Leamington Tomato Fest, among others. Outreach included a number of visits to areas and events outside the GTA—and this will continue to be a focus in coming years.
- 49 days interacting
- 34,458 interactions
- 32,335 giveaways
Municipal Waste Calendars
We also reach Ontario residents through municipal waste calendars and websites—in 2013, 31 municipalities distributed calendars with information about our program to 1,718,150 households. The Orange Drop Program provided advertising support to Ontario Parks (Parks Guide and posters) to communicate Orange Drop pressurized container collection cages in 85 parks. We also started working with 17 Kampgrounds of America (KOA) parks, where we distributed over 100 posters.
Year in Review
Participation Leads to Significant Cost Savings
CSSA was founded in 2013 by leading Canadian retailers and manufacturers to implement a shared, harmonized administrative infrastructure for stewards of packaging and printed paper programs across Canada. It is a non-profit, voluntary national stewardship organization representing Canadian businesses.
Canadian Stewardship Services Alliance (CSSA) – A National Service Provider
CSSA provides a suite of administrative and support services to Stewardship Ontario, as well as other provincial stewardship agencies, including Multi-Material BC, Multi-Material Stewardship Western and Multi-Material Stewardship Manitoba. Sharing back office administrative functions, such as IT systems, infrastructure and finance functions between multiple packaging and printed paper agencies results not just in streamlined services for stewards—making it easier for them to fulfill their stewardship obligations—but also significant cost savings for each stewardship agency.
As a service provider, CSSA offers Stewardship Ontario and Ontario’s stewards economies of scale, focus, simplicity and convenience:
- A single place for stewards to register, report and pay obligations
- A simpler way to do business, with common definitions across all programs
- Annual cost savings – by sharing front and back-office activities—avoiding duplication of investments in governance, administration, IT, finance, infrastructure, communication and market development
- National standards and benchmarks to better control steward fees and costs
- A coordinated national voice to promote harmonized, accountable and efficient recycling systems that meet consumer needs
- Consumer convenience through efficient, harmonized waste diversion programs that create more consistent recycling services across multiple jurisdictions and contribute to more sustainable communities
Stewardship Ontario alone will see its administration costs for 2014 drop by almost 30% to $4.9 million, from $6.3 million in 2013, while maintaining operational performance.
While Stewardship Ontario benefits from back-office services from CSSA, we continue to manage supply chain and operations functions, provincial promotion and education activities and regulatory affairs directly. We retain all of our obligations under the Waste Diversion Act, Program Request Letters, Program Plans and Program Agreements. Stewardship Ontario’s Board continues to be responsible for setting the strategic direction of the organization, and retains all of its fiduciary responsibilities.
All of us at Stewardship Ontario continue to look for efficiencies and cost savings on behalf of our stewards, while ensuring the most robust recycling services continue to be delivered to the residents of Ontario.
Stewardship Ontario alone will see its administration costs for 2014 drop by almost 30% to $4.9 million, from $6.3 million in 2013, while maintaining operational performance.
Performance Indicators
Consumer Awareness Indicators
Key Findings about Blue Box Consumer Attitudes and Curbside Recycling Behaviours
Orange Drop Program Research into Consumer Attitudes and Behaviours 2012/2013
Performance Indicators
Operational/Environmental Indicators Blue Box Program – Packaging & Printed Paper
Financial Indicators
Performance Indicators
Operational/Environmental Indicators Orange Drop Program (MHSW)
Note: 413 collection sites exited the program.
Financial Indicators
Governance
2013 Board Members
Debbie Baxter
Chief Sustainability Officer & VP, Workplace Services, LoyaltyOne
Chief Sustainability Officer & VP, Workplace Services, LoyaltyOne
Debbie oversees all aspects of corporate responsibility and real estate. With her focus on both sustainable operations and fostering community engagement, LoyaltyOne has not only been recognized as a global leader in loyalty marketing, but also as a leader on corporate citizenship issues and sustainable real estate strategies.
Trained by former U.S. Vice President and Nobel laureate Al Gore, Debbie is passionate about raising public awareness of climate change. As an avid volunteer, Debbie is a member of the Network for Business Sustainability and sits on the Nature Conservancy of Canada board. She also contributes her business skills to the board for the Ontario Clean Water Agency.
Debbie has been recognized as a recipient of the Women’s Executive Network’s 2013 Canada’s Most Powerful Women: Top 100 Awards. Debbie is also a recipient of the 2013 Clean50 award, which honours outstanding contributors to sustainable development and clean capitalism in Canada. She was also awarded the 2011 Green Living award for Excellence in Corporate Responsibility.
With a background in operations and technology, Debbie is also a Certified Management Accountant and holds a Corporate Directors ICD.D designation.
Debbie was elected to Stewardship Ontario’s board in 2010
Scott BonikowskyVP, Corporate, Public & Government Affairs, Tim Hortons Inc.
Scott has more than 25 years of public affairs experience, including leading the Corporate Affairs functions at two of Canada’s best-known consumer companies. Throughout his career he has held senior-level corporate and consulting roles across several industries in which he focused on helping companies enhance their communication effectiveness and brand reputation. In his current role, he is responsible for managing reputation management, corporate communication, sustainability, environmental affairs, social media and investor strategies for Tim Hortons. Scott is actively involved in community and professional organizations and currently serves on the boards of the Canadian Restaurant and Foodservices Association, Canadian Council for Aboriginal Business, Arctic Youth and Children Foundation, Canadian Investor Relations Institute (Ontario) and Communication + Public Relations Foundation.
Scott was elected to Stewardship Ontario’s board in 2012
Diane J. BriseboisPresident and Chief Executive Officer, Retail Council of Canada (RCC)
Since 1995, Diane has spearheaded RCC, the largest retail association in Canada serving over 45,000 retail establishments, representing independent merchants, regional and national chains, big box, mass merchants and online merchants in general merchandise, grocery and pharmacy. Prior to joining RCC, Diane was the Executive Vice-President of the Canadian Office Products Association. In addition to her Director duties on Stewardship Ontario’s board, Diane serves as Immediate Past Chairman of the board for the Forum for International Retail Association Executives (FIRAE) and Chairman of the Board for Fair Factory Clearinghouse (FFC). Diane also sits on the Advisory board of Ryerson University’s School of Retail Management and the University of Alberta’s School of Retail in Edmonton. Diane also served for many years on the Board of Covenant House Canada and continues to volunteer with many charitable organizations.
Diane was elected to Stewardship Ontario’s board in 2002
Bob Chant
SVP, Corporate Affairs and Communication, Loblaw Companies Ltd.
SVP, Corporate Affairs and Communication, Loblaw Companies Ltd.
Bob has an extensive background in consumer marketing, reputation and crisis management and government relations through his current role at Loblaw and past roles at Hill and Knowlton Canada, Labatt Brewing Company and InBev. He has served in various government roles, including Chief of Staff to Ontario Opposition Leader and senior advisor in the offices of Prime Minister Brian Mulroney. His volunteer service includes past director of the Ontario Science Centre and Toronto Harbourfront Centre and the Canadian Foundation for Economic Education. Bob currently serves as a director of Stewardship Ontario, President’s Choice Children’s Charity, Canadian Stewardship Services Alliance and the Albany Club.
Bob was elected to Stewardship Ontario’s board in 2010.
Don Cousens
Principal, Counsel Public Affairs Inc. (Independent Director)
Principal, Counsel Public Affairs Inc. (Independent Director)
Don was first elected Mayor of Markham in 1993 and served four successive terms. Elected to the York County Board of Education (now the York Region District School Board) in 1972, he served as Chair in 1978-79. From 1981 to 1993 he was Markham’s Member of Provincial Parliament (MPP) serving as Deputy Speaker, Minister of Corrections and Opposition Critic for Environment and Finance. During his tenure, Don received many honours and awards including: the Medal of Jerusalem in 1995, the Knight Commander – Knights of Rizal in 2001, the Queen Elizabeth II Golden Jubilee Medal in 2003 and, recently, the Diamond Jubilee Medal in 2012. In 2006, the Donald Cousens Parkway in Markham was unveiled and the following year, the York District School Board named “Donald Cousens Public School” in his honour.
Don was elected to Stewardship Ontario’s board as an Independent Director in 2010.
John D. Coyne
Vice President, Legal & External Affairs, Unilever Canada Inc.
Vice President, Legal & External Affairs, Unilever Canada Inc.
Since 1992, John has been actively involved in the evolution of Unilever Canada and today works with multi-disciplinary teams in law, corporate and government relations, regulatory affairs, quality assurance and safety. He is a member of Unilever Canada’s Board of Directors, the Canadian Leadership Team and is Chair of the Pension Committee.
John is also known for his leadership in corporate sustainability and in 2012 was named by Clean50 as one of Canada’s top sustainability leaders. He supports and is a passionate advocate for the Unilever Sustainable Living Plan, designed to grow the business while reducing its environmental footprint and increasing its positive contribution to society.
John is Chair of the Boards of Stewardship Ontario and of Canadian Stewardship Services Alliance and Canadian Cosmetic, Toiletry and Fragrance Association. He is a director of Evergreen, co-chair of the TRCA Partners in Project Green steering committee, and is a director and past Chair of Advertising Standards Canada.
John was elected to Stewardship Ontario’s board in 2006
Chris Cyrenne
Chief Compliance Officer, Wal-Mart Canada Corp.
Chief Compliance Officer, Wal-Mart Canada Corp.
Chris is the Chief Compliance Officer for Walmart Canada. In this role, he is responsible for providing strategic direction and oversight of Walmart Canada’s compliance and safety programs. Chris also currently serves as the head of Walmart’s Loss Prevention, Risk Management & Aviation departments. He is a graduate of the Faculty of Law at Queen’s University in Kingston, Ontario and was Senior Corporate Counsel for Walmart from 2004 to 2009. Prior to joining Walmart, Chris practiced corporate and commercial law at Blake, Cassels & Graydon LLP in Toronto.
Chris was elected to Stewardship Ontario’s board in 2012
Calla Farn
VP, Government Relations, Public Relations and Corporate Affairs, McCain Foods
VP, Government Relations, Public Relations and Corporate Affairs, McCain Foods
Calla has more than 20 years’ experience in corporate communication, media, and public affairs. Her responsibilities at McCain include reputation management, media relations, donations and issues management. She also has an extensive background in environmental stewardship having served on the boards of Multi-Material British Columbia, Nova Scotia Resource Recovery Fund, Clean Nova Scotia and Newfoundland Beverage Recovery Inc. A graduate of The Directors College at McMaster University, Calla received her Chartered Director (C. Dir.) degree/designation in 2006.
Calla was elected to Stewardship Ontario’s board in 2010.
Sylvain Mayrand
Executive Vice-President and General Manager, Operations, A. Lassonde Inc.
Executive Vice-President and General Manager, Operations, A. Lassonde Inc.
Sylvain is a senior executive manager with more than 25 years’ experience in the manufacturing field. With a broad-base of professional knowledge in the consumer packaged goods industry, Sylvain has experience in managing several manufacturing plants, including purchasing (packaging and raw material), engineering (technical and capital investments), supply chain and logistic departments. He has held his current position at A. Lassonde Inc., one of the largest fruit juice and drink companies in North America, since 2001. Prior to A Lassonde Inc., he worked at Naya Spring Water and Shell Canada. Sylvain holds a bachelor’s degree in Mechanical engineering from Laval University and has an MBA from HEC Montréal.
Sylvain was elected to Stewardship Ontario’s board in 2010.
Gordon Meyer
Director, Brand & Commercial Operations, Procter & Gamble Canada
Director, Brand & Commercial Operations, Procter & Gamble Canada
Gord’s career has spanned a broad spectrum of responsibilities and experiences in the consumer products industry, starting in soft drinks with Crush, through to his current responsibilities for P&G’s full portfolio. Gord previously chaired the board of Corporations Supporting Recycling and also chairs the board of Inroads Toronto, an organization devoted to fostering business careers for visible minority students.
Gord was elected to Stewardship Ontario’s board in 2010.
Brian Prendergast
Senior VP, Recochem Inc.
Senior VP, Recochem Inc.
Brian is a Senior Executive with a background in General Management, Marketing and Sales with experience in industries including Automotive, Consumer Products, Pharmaceuticals and Biotechnology. As Senior Vice President of Recochem Inc., Brian is responsible for bottom line delivery for the Americas; with oversight of plants, supply chain, sales, export, marketing and finance. Prior to joining Recochem, Brian served as President of The Sonar Group – Marketing & Communications. During his career, he has also held the roles of President at Monsanto Canada, Vice President of Sales at Frito-Lay Canada, Vice President at Gilbey Canada, as well as sales and marketing management positions with International Distillers, Vintners – UK and Procter & Gamble. A Chartered Director with a B. Comm. from Queen’s University, Brian serves on several Boards and is Past Chair of the Canadian Chemical Specialty Producers Association.
Brian was elected to Stewardship Ontario’s board in 2010.
Vince Rea
Director, Stores Division – PPG Architectural Coatings Canada Inc.
Director, Stores Division – PPG Architectural Coatings Canada Inc.
Vince has spent the last 20 years in the coatings industry, moving progressively from the Finance function (CFO) to General Management roles. Vince is currently a Canadian Director for PPG Architectural Coatings Inc. PPG is a global leader in the coatings industry. In his capacity as Director of the Canadian Stores, Vince is responsible for the 250 Dulux and Dulux/Betonel Stores across Canada. He oversees the development and implementation of the organization’s strategic plan. Vince has a CPA designation and also earned his BBA and MBA from the Schulich School of business (York University). Vince is active in his community and has coached a number of teams in various sports and participates in several 10km races for charity.
Vince was elected to the Stewardship Ontario board in 2011.
Ian Anderson
(Resigned from board January 2014)
(Resigned from board January 2014)
Roberta Jamieson
(Resigned from board January 2014)
(Resigned from board January 2014)
Reg McLay
(Resigned from board July 2013)
(Resigned from board July 2013)
2013 Board Meeting Attendance
For further information about Stewardship Ontario’s governance please visit:
STEWARDSHIP ONTARIO’S GOVERNANCE STRUCTURE and BOARD OF DIRECTORS on the STEWARDSHIP ONTARIO WEBSITE
Governance
Investment Committee (Now dissolved)
Ian Anderson (Chair), Chris Cyrenne, Sylvain Mayrand
The Investment Committee was created to develop an Investment Policy aligned with Stewardship Ontario’s mandate to foster and develop healthy supply chains for Blue Box recyclables. The role of the committee is to consider and approve investments that demonstrate the highest potential to advance Ontario’s recycling infrastructure.
February 27, 2013
Ian Anderson (Chair), Chris Cyrenne, Sylvain Mayrand
May 29, 2013
Ian Anderson (Chair), Chris Cyrenne, Sylvain Mayrand
October 1, 2013
Ian Anderson (Chair), Chris Cyrenne, Sylvain Mayrand
Human Resources & Compensation Committee (Now dissolved)
Vince Rea (Chair), Roberta Jamieson
The HR & Compensation Committee oversees the compensation and performance management process for the senior management team.
March 5, 2013
Vince Rea (Chair), Roberta Jamieson
May 17, 2013
Vince Rea (Chair), Roberta Jamieson
Finance & Audit Committee
Debbie Baxter (Chair), Diane Brisebois, Reg McLay (Resigned from Board on July 22, 2013), Gordon Meyer
The Finance & Audit Committee is charged with overseeing the quarterly financial and diversion performance of Stewardship Ontario, ensuring a risk management plan is developed and monitoring mitigation measures. The committee also instructs and meets the auditors without the presence of management at least once per year.
March 5, 2013
Debbie Baxter (Chair), Diane Brisebois, Reg McLay, Gordon Meyer
May 30, 2013
Debbie Baxter (Chair), Reg McLay, Gordon Meyer
September 5, 2013
Debbie Baxter (Chair), Diane Brisebois, Gordon Meyer
October 24, 2013
Debbie Baxter (Chair), Diane Brisebois
Governance & Risk Committee (Now GOVERNANCE, NOMINATION & RISK COMMITTEE)
Brian Prendergast (Chair), Scott Bonikowsky, Don Cousens, Calla Farn
The Governance & Risk Committee is responsible for ensuring the Board and its committees are properly constituted and mandated. The committee recruits Directors in accordance with its skill-based requirements and makes recommendations to the Board regarding vacancies and appointments. Annually, this committee oversees the Board, committee and Director evaluation process and brings to the Board’s attention matters that need to be addressed to foster best governance practices.
January 28, 2013
Brian Prendergast (Chair), Don Cousens, Calla Farn
May 30, 2013
Brian Prendergast (Chair), Scott Bonikowsky, Don Cousens, Calla Farn
August 9, 2013
Brian Prendergast (Chair), Don Cousens, Calla Farn
September 26, 2013
Brian Prendergast (Chair), Scott Bonikowsky, Don Cousens, Calla Farn
Regulatory Affairs Committee
Bob Chant (Chair), Scott Bonikowsky, Don Cousens, Calla Farn, Roberta Jamieson
The Regulatory Affairs Committee provides advice and support to Management in regard to Stewardship Ontario’s stakeholder relations.
April 3, 2013
Bob Chant (Chair), Scott Bonikowsky, Don Cousens, Calla Farn, Roberta Jamieson
May 23, 2013
Bob Chant (Chair), Scott Bonikowsky, Don Cousens, Calla Farn, Roberta Jamieson
September 11, 2013
Bob Chant (Chair), Scott Bonikowsky, Don Cousens, Calla Farn
Financials
Notable Highlights from the Stewardship Ontario Financial Statements for the Year Ended December 31, 2013:
• Conclusion of agreement with the Ministry of the Environment (MOE) for Phase II/III materials:
A MOE audit followed Stewardship Ontario’s final billing and reporting. The MOE paid the outstanding balance in full, and Stewardship Ontario paid Municipalities.
• 2011 accumulated surpluses and deficits:
- Continued billing (and collection) of invoices for Phase I materials in deficit at Dec 31, 2011 (billed in accordance with O.Reg 11/12). At Jan 1, 2014 five billings remain outstanding.
- Began drawdown of the Oil Filter surplus for Q3, 2013 billings and continued in Q4, drawing down $4.3 million. This leaves $5.2 million for drawdown in 2014.
• Provision for receivables relating to investment targets:
This provision was taken as a cautionary move, due to the lack of information to support remaining investments at carrying value. It is not a commentary on individual investments.
• Reduction of some investment and research:
Certain investment and research efforts were reduced as Stewardship Ontario evaluated the impacts of Bill 91.
• Launch of Canadian Stewardship Services Alliance (CSSA):
To launch development that will enable use of the Stewardship Ontario SAP system by programs across the country, this enterprise software asset was sold to CSSA in May 2013. CSSA operations began in January 2014.
• Prior period adjustments (Note 13):
- A reclassification on the balance sheet: $9.1 million moved to increase accounts receivable and deferred revenue (Note 7 shows deferred revenue).
- A reversal of a $5.7 million bad debt write-off made in error and collected in 2013.
Blue Box:
- 2013 Surplus of $1.4 million—largely due to reduced market development/transformation spend resulting from program uncertainty arising from Bill 91, a proposed successor to the Waste Diversion Act.
- Conservative provision taken for the valuation of investments/loans receivable
Orange Drop:
• 2013 deficit of $5.3 million, driven by:
- Oil filter surplus drawdown of $4.3 million
- Battery Promotion and Education (P&E) campaign of $0.5 million paid out of battery surplus
The remaining Orange Drop deficit is expected to be largely picked up in the annual true-up based on final,actual costs billed in June 2014, resulting in a net Stewardship Ontario deficit for 2013 of $3.8 million.
Financials
Commentary
Stewardship Ontario is a non-profit organization that operates both the Blue Box and Orange Drop (MHSW) Programs. While there is no cross-subsidization between the two programs, or between the materials within each program, the financial results are presented on a consolidated basis. This means that the assets, liabilities, revenue and expenses of both programs are combined and shown as belonging to a single reporting entity for the purposes of the annual audited financial statements. A rigorous system of internal controls ensures that the transactions are kept separately for each program. Management reports revenues and expenses separately to the Finance & Audit Committee and the Board of Directors quarterly, on a segmented or program-specific basis.
2013 Balance Sheet
Stewardship Ontario has a strong balance sheet with over $42 million in net assets of which $23.1 million is unrestricted and $18.7 million is internally restricted. Our balance sheet has substantial cash, accounts receivable and investments to support the net assets and liabilities balances.
2013 Operating Results
Stewardship Ontario reported a $3.8 million deficit in 2013, compared with a $26.3 million surplus in 2012. The program breakdown of the 2013 results is reflected in the following table:
In 2012, Stewardship Ontario had three revenue events that did not continue to 2013, which drove the large surplus in 2012:
- Recovery in 2012 of 2011 fee under collection in a handful of specific material categories
- Recording all Deficit revenue that was incurred in 2011 and prior and billable/recoverable through the O.Regulation 11/12.
- Revenue earned through the MHSW Phase II/III agreement with the Ministry of the Environment
In 2013, Stewardship Ontario entered into a Management Services Agreement with Canadian Stewardship Services Alliance, Inc. (CSSA), for the provision of administrative and support services beginning in 2014. In connection with this change, Stewardship Ontario sold its SAP asset to CSSA in 2013. This sale resulted in a small gain for Stewardship Ontario, and allowed CSSA to begin development on the system to ready it for use by stewardship programs across the country.
To help understand how each program performed, as well as key drivers of the results, we have summarized the program-specific results below:
Blue Box–2013 Financial Performance:
An overall surplus of $1.4 million was generated in the Blue Box Program for 2013. Total expenses for $99.2 million for Blue Box in 2013 were less than anticipated due to a hold on market and program development activities in the wake of Bill 91.
Blue Box Program Expenses 2013 $99.2M
Orange Drop–2013 Financial Performance:
An overall deficit of $5.3 million was generated in the Orange Drop Program for 2013. Total expenses for Orange Drop in the year of $44.5 million were less than 2012, and less than planned, as cost controls and collection/recycling shortfalls against budgets in a few materials drove reduced spending.
Orange Drop Program Expenses 2013 $44.5M
The Orange Drop 2013 deficit was largely driven by:
- The beginning of the drawdown of the Oil Filter surplus in Q3 2013, resulting in a deficit for this material category of $4.3 million in 2013 (leaving $5.2M for drawdown in 2014)
- A battery Promotion and Education campaign costing $0.5M that was executed in 2013 and spent against the battery surplus, (leaving $1.8M of surplus for the battery stewards)
The remaining shortfall of $0.5M is largely expected to be recovered in the annual true-up to be billed in April 2014.
Stewardship Ontario continued to bill Stewards for the deficits that were incurred prior to December 2011 in accordance with O.Reg 11/12. As of January 2014, there are five remaining invoices to be billed of the original twelve.
Phase II/III Materials
In 2013, administration of the agreement with the Ministry of the Environment (MOE) for Phase II/III materials was concluded. Stewardship Ontario provided the Ministry with final billings and reports, and the MOE performed a comprehensive program review and subsequently paid the outstanding balance in full. Municipalities were paid on receipt of the money from the MOE. There was no financial impact of this arrangement in 2013.
Financials
Auditors Report PDF Download
Stewardship Ontario Annual Reports and Audited Financial Statements
Our Annual Reports include independent auditor’s reports and financial statements. They contain collection, diversion and accessibility performance tables. They also highlight the innovative, sustainable and integrated partnerships behind Ontario’s recycling performance.
2013 Stewardship Ontario Annual Report
2012 Stewardship Ontario Annual Report
2011 Stewardship Ontario Annual Report
2010 Stewardship Ontario Annual Report