From the President

IISD was born in 1990 amid the spirit of optimism and change generated by the Brundtland Report. When we emerged on the world stage at the Rio Earth Summit in 1992, we already had much to be proud of. We still do.

Our Reporting Services team has made the international environmental negotiations the most transparent and accessible of all international negotiations. Our Trade people have helped to transform discussions that used to be dominated by northern commercial interests into multi-faceted discussions involving other civil society actors and the governments of developing countries, who are beginning to flex their newly-acquired muscles.

Our Knowledge Communications professionals have pioneered new approaches to developing North-South knowledge networks and to involving youth more actively in the decisions about the information technologies that will affect their future. Our Economic Policy group is helping to transform the approach pioneered by Nobel Laureate Amartya Sen so that strategies for poverty reduction also contribute to environmental improvement. We can now measure progress toward all three aspects of sustainable development— economic, social and environmental— more comprehensively than before, thanks to the work of our Measurement and Indicators Program. And new work on environment and security and the sustainable management of natural resources—with a focus on water—promises future breakthroughs of the type already achieved by IISD.

We are still a small institution and we intend to remain so. Our new Strategic Plan calls for substantial growth over the five years or so, but we will still remain a modest tadpole compared with many of the other actors in the international pond.

We move forward optimistically, but we recognize that despite all that the sustainable development community has achieved since the Brundtland Report was released 17 years ago, humanity is still headed in the wrong direction in a number of key areas, including climate change, loss of biodiversity, deforestation and population growth.

Against this backdrop, how will we achieve results?

First, we intend to build on our existing partnerships with more than 80 institutions around the world to create a stronger voice for change. And we want to create even closer alliances with a number of like-minded groups. Second, we want to make sure that all of our activities are powered by a tough-minded influencing strategy, developed by our Knowledge Communications group and approved by our Board. And third, we want to grow the new IISD Innovation Fund to motivate our best and brightest to design creative new approaches to break through the existing logjams.

Despite a distressing year in international relations, I remain confident that sustainable development will re-emerge as a dominant force in international politics and discourse over the next five years and that IISD will be well positioned to play an influential role in the debate.

David Runnalls
President and Chief Executive Officer

From the Chair

2003–2004 was a fine year for the International Institute for Sustainable Development—one of significant achievements, as this report illustrates. It's a good time to look ahead to what is already shaping up to be another exciting year.

At its June 2004 meeting, the Board welcomed six new members, an important infusion of new energy. I'm proud to say that we have entered the new fiscal year governed by a younger Board with better gender balance than ever before.

We launched the second Strategic Plan to guide our program development over the next five years. The emphasis is on relevance and impact—having demonstrable influence in those areas where we intervene.

Our President has renewed his agreement for the next five years and will lead the Institute forward with vigor and creativity. And we have put deficit financing behind us. We have operated with a balanced budget for the past year, and our financial outlook is solid.

All very auspicious circumstances to help us meet the challenges ahead.

The main test we face is that of achieving and maintaining effective influence and impact. We are a small organization tackling global issues. To have any measurable impact requires that we tailor our actions very precisely in areas where we have exceptional expertise to contribute. Our recent, hard-fought victory in opening up the NAFTA tribunal process is an example of where sustained, conscientious and creative intervention can lead to meaningful change. We need to achieve at this level more often, and we are equipped to do so.

Having impact also requires that we establish a presence, a visibility that is as essential to impact as content. We have done remarkably well in recent years in growing roots in our home soil in Manitoba through our projects centered in the province and region, our advice to the government and the increased participation of our staff in the community.

We have also a marked presence in Europe through our Geneva office centering on trade and development programs and on security issues. And have developed a worldwide presence through IISD Reporting Services and our several networks.

We need to achieve greater prominence in Canada and become recognized, as we are by others, as the authoritative voice in matters of sustainable development.

The staff of the Institute, by its competence, dedication, well-developed networking and lots of extremely hard work has brought us to where we are today. They are also the people who will help us meet the challenges ahead. I thank each and every one of them for their contribution.

My colleagues on the Board and I are committed to help the Institute achieve ever-greater things ahead.

Jacques Gérin
Chair of the Board

Advisory Participants

Norm Brandson, Deputy Minister, Water Stewardship, Province of Manitoba
James Eldridge, Clerk of the Executive Council, Province of Manitoba
Len Good, President, Canadian International Development Agency, until May 2003
Suzanne Hurtubise, Deputy Minister, Environment Canada, June 2003 to May 2004
Alan Nymark, Deputy Minister, Environment Canada, until June 2003
Maureen O'Neil, President, International Development Research Centre
Mary Simon, Ambassador for Circumpolar Affairs, Department of Foreign Affairs and International Trade, until October 2003
Paul Thibault, President, Canadian International Development Agency, as of May 2003

Distinguished Fellows

Art Hanson, Senior Scientist
Jim MacNeill, Chair Emeritus
Maurice Strong

Founding Chair

Lloyd McGinnis

Friends of the Institute

Gro Harlem Brundtland
José Goldemberg
Sir Shridath Ramphal