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

BC Mining Forum 2015Vancouver, Canada

Global Perspective

dealing with Growing Social Demands

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

BC Mining Forum 2015Vancouver, Canada

Global Perspective

dealing with Growing Social Demands

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

BC Mining Forum 2015Vancouver, Canada

Global Perspective

dealing with Growing Social Demands

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

Plan

?Results?

System

BC Mining Forum 2015Vancouver, Canada

Global Perspective

dealing with Growing Social Demands

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

BC Mining Forum 2015Vancouver, Canada

Global Perspective

dealing with Growing Social Demands

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.

BC Mining Forum 2015Vancouver, Canada

Global Perspective

dealing with Growing Social Demands

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

BC Mining Forum 2015Vancouver, Canada

Global Perspective

dealing with Growing Social Demands

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)

BC Mining Forum 2015Vancouver, Canada

Global Perspective

dealing with Growing Social Demands

Project Approval

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

• Structured Local Processes (Binding Referendum/Honduras)

• Informed Processes (State decision informed by local input)

BC Mining Forum 2015Vancouver, Canada

Global Perspective

dealing with Growing Social Demands

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

BC Mining Forum 2015Vancouver, Canada

Global Perspective

dealing with Growing Social Demands

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

BC Mining Forum 2015Vancouver, Canada

Global Perspective

dealing with Growing Social Demands

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)

BC Mining Forum 2015Vancouver, Canada

Global Perspective

dealing with Growing Social Demands

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)

BC Mining Forum 2015Vancouver, Canada

Global Perspective

dealing with Growing Social Demands

National Policies & Legislation

• Regulatory structures to facilitate meeting growing social demands• Consultation

• Access to land

• Benefit sharing

• Project approval

BC Mining Forum 2015Vancouver, Canada

Global Perspective

dealing with Growing Social Demands

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

BC Mining Forum 2015Vancouver, Canada

Global Perspective

dealing with Growing Social Demands

Social value imperativeapplies across industry, sector & geography

BC Mining Forum 2015Vancouver, Canada

Global Perspective

dealing with Growing Social Demands

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

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

BC Mining Forum 2015Vancouver, Canada

Global Perspective

dealing with Growing Social Demands

Questions, Discussion & Followup

Follow-up

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