Global Perspectives on CSR in the Extractive Sector

transcript

Global Perspectives on CSRDealing with growing social demands

Wayne Dunn CSR Training Instituteinfo@csrtraininginstitute.comwww.csrtraininginstitute.com

BC Mining Forum 2015

Friday March 6, 2015

Vancouver, Canada

BC Mining Forum 2015Vancouver, Canada

Global Perspective

dealing with Growing Social Demands

Presentation Outline

• What are the growing social demands?• Consultation (formal/informal, history, structure, FPIC,

closure)• Access to land (who/how approved)• Benefit sharing (what’s in it for everyone)• Project approval (who approves? when? how?)

• What is being done? (Industry, government, others)• Global, then BC example

• Discussion

Global Perspective

2015 not an easy time for the mining industry

• Bottom of the cycle (and a long bottom?)

• High costs

• Low prices

• Increasing social demands

• Increasing environmental requirements

• Artisanal mining

• Expanding regulatory requirements

• Expanding compliance requirements & expectations

• How to meet social, environmental & shareholder expectations

Need to innovate

Need to collaborate

Global Perspective

Has the World Changed?

1990s• NGOs

• Communications

• National Governments

• Business

Today• NGOs

• Communications

• National Governments

• Business

Society expects more ANDhas more power to force change

Global Perspective

CSR in the OLDEN DAYS (cont)

Suddenly communities could influence how, or if, a project could proceed.

Business had a new challenge to figure out

Answers weren’t easy or obvious

Community Relations Management

Framework

?Results?

System

Global Perspective

Growing Social Demands

Exploration Closure• Consultation (formal/informal,

history, structure, FPIC, closure)

• Access to land (who/how approved)

• Benefit sharing (what’s in it for everyone)

• Project approval (who approves? when? how?)

• Environmental permitting and monitoring

Global Perspective

Consultation• Formal/Informal (relationship history

across ownership changes)

• Structured Processes (who leads, who participates, roles & responsibilities, end points)

• Starting point (exploration, permitting, construction)

• ICMM Position Paper on working with Indigenous Peoples http://bit.ly/ICMMFPIC

• defines FPIC as process based on Good Faith Negotiation through which Indigenous Peoples can give or withhold consent

• commits members to work to obtain the consent of Indigenous Peoples

• includes supporting commitments that apply to most interactions with indigenous communities

• defines how to engage where government has primary responsibility

• addresses how to move forward where differences of opinion arise.

Global Perspective

Land Access

• Role of the State (strength of land cadastre systems)

• Role of Community (who leads, who participates, roles & responsibilities, end points,)

• Role of Landowner

• Process (purchase, lease, negotiation, relocation, pricing, etc.)

• Dispute Resolution

Global Perspective

Benefit Sharing

• Compressive Community Development Agreements (structured frameworks, bi-lateral, tri-lateral/multi-dept, multi-lateral, ODA involvement)

• Local Content (employment, procurement, training)

• Local Industry/Diversification

• Infrastructure (direct funded, co-funded, tax credits [Works for Investment])

• Resource Access (water, small scale mining, agriculture)

Global Perspective

Project Approval

• Informal (local, national, international pressures: Tambo Grande)

• Structured Local Processes (Binding Referendum/Honduras)

• Informed Processes (State decision informed by local input)

Global Perspective

New Gold @ Blackwater & New Afton

Overarching negotiated agreements with local First Nations

• Consultation – exploration to closure• Formal & informal, guided by • Formal agreements with Indigenous interests• Statutory and regulatory requirements.• Corporate Policy• Voluntary compliance standards• Community Consultation Committee

• Land Access• Regulatory requirements• Evolving aboriginal title issues• Corporate policy• Supported by ongoing Indigenous consultation

Global Perspective

New Gold @ Blackwater & New Afton

• Benefit Sharing (Indigenous/non Indigenous)• Support to local priorities and initiatives• Education and training (supported locally and on province-

wide initiatives like Underground Miner Training, Aboriginal Mentoring & Training, Scholarships, etc.)

• Employment (23% aboriginal employment in 2013)• Procurement ($20 million Indigenous procurement in 2013)• Direct payments from New Gold and the Province to local

First Nations

• Project Approval• Regulatory & statutory process• Negotiated agreements with local Indigenous communities

Global Perspective

Relationships & Trust

• Crosscutting themes (relationship history across ownership changes)

• History of relationships (reputational capital of project and owners –new owners don’t reset reputational liabilities)

• Transparency and legitimacy of processes (environment, permitting & approvals)

Global Perspective

What is being done

• National policies and regulations

• Company and industry wide initiatives

• IFI support and multi-lateral technical assistance and support

• Africa Mining Vision/Country Mining Vision

• ODA support, co-funding

• Development collaboration (NGO, industry, government)

Global Perspective

National Policies & Legislation

• Regulatory structures to facilitate meeting growing social demands• Consultation

• Access to land

• Benefit sharing

• Project approval

Global Perspective

Increasing mandatory and voluntary compliance

• ICMI - International Cyanide Management Institute (ICMI)

• Conflict Free Gold Standard

• Voluntary Principles on Security and Human Rights

• EITI

• Global Reporting Initiative

• Voluntary Principles

• ICMM

• IFC

• Equator Principles

• ILO

• Accountability

• Many, many more

Global Perspective

Social value imperativeapplies across industry, sector & geography

Global Perspective

Mining Schools Hi Tech!

• Long way to go, Yes

• But mining has come a very long way in last 15 years!

• Other industries see mining as a leader/exemplar

Global Perspective

Presentation Outline

• What are the growing social demands?• Consultation (formal/informal, history, structure, FPIC,

closure)• Access to land (who/how approved)• Benefit sharing (what’s in it for everyone)• Project approval (who approves? when? how?)

• What is being done? (Industry, government, others)• Global, then BC example

• Discussion

Global Perspective

Questions, Discussion & Followup

Follow-up

Wayne DunnPresident & FounderCSR Training InstituteProfessor of Practice in CSR @ McGillwayne@csrtraininginstitute.comwww.csrtraininginstitute.com