SC C3 - System Environmental Performance WG C3 04 – Stakeholder Engagement Strategies in...

SC C3 - System Environmental PerformanceWG C3 04 – Stakeholder Engagement Strategies in Sustainable Development

Stakeholder Engagement Strategies in Sustainable Development

Hector Pearson – National Grid, UK

Colloquium: Oporto, 23rd September 2009


Presentation Outline

Introduction

Consultation and engagement

Why electricity utility organisations should embrace consultation and engagement

Cigré Working Group - work to date

Cigré Working Group – initial findings

General conclusions


Introduction

Work of Cigre Working Group – C3.04 - Stakeholder Engagement Strategies in Sustainable Development

Philippe Cimiterra – RTE - France Manuela Damas - REN - Portugal Arilde Sutil Gabriel – Copel - Brazil Juliana Walendowsky Grando - National Grid - UK Fiona Havenga – Eskom - South Africa Didier Laine – RTE - France Mirian Regini Nuti – EPE - Brazil Michelle Palmer – Powerlink - Australia Hector Pearson - National Grid - UK Henk Sanders - TenneT - Netherlands Mercedes Miranda – REE - Spain

Also, personal experience from National Grid


Why do companies engage with stakeholders?

May be required by law

Investors or governments may seek it

In many countries, citizens have rights to influence projects

Citizens have the power to influence projects

Local politicians

Press / radio / TV / newspapers

Power of the internet


Public attitudes towards hypothetical developments proposed in their community

Strongly Somewhat Somewhat Strongly Net

oppose oppose support support opposition

Waste Collection/landfill site 80 6 3 9 -73

Power plant or utility 77 6 5 8 -70

Quarry 75 7 5 7 -70

Office 53 7 9 27 -24

Retail park 54 7 9 27 -24

Supermarket 50 7 10 31 -16

New road project 36 8 15 36 7

School 10 8 15 61 54

Source: K Barker, Review of Land use Planning, Interim Report – Analysis, UK, 2006


Power of the press


Power of the press


Power of the internet



Good corporate governance in companies may require engagement

The responsibilities of Sustainable Development strengthen the need to engage with stakeholders.


From AccountAbility

has stated that:

the right to be heard by people who are affected by an organisation’s activities, or who can affect an organisation’s activities; and obliging the organisation to respond to these concerns, makes organisations perform better.



Development of electricity networks, and their maintenance and refurbishment

- can affect communities crossed by the networks



Development of electricity networks, and their maintenance and refurbishment

- can affect communities crossed by the networks

- can have an impact on the natural environment, landscape and cultural heritage

- and generates community interest in the utility’s activities


Objectives of the Working Group

Stakeholder engagement and consultation strategies adopted by electricity utilities

Focus on involvement and engagement rather than “Communication”

Assist electricity utilities to develop more effective consultation and engagement strategies

Through asset lifecycle of project

Covering electricity generation, transmission & distribution

All within the Sustainable Development agenda


Sources - bibliography

THE STAKEHOLDER ENGAGEMENT MANUALVolume 1 and 2, 2005AccountAbility, the United Nations Environment Programme, and Stakeholder Research Associates

Guidelines forStakeholder DialogueThe Environment Council

StakeholderEngagementStandard

Community engagement in planning – exploring the way forwardFinal Report of the INTERREG IIIBAdvocacy, Participation and NGOs in Planning Project

Effective Engagement in the EU

Get Connected:

Consultation Models for Overhead Line Projects

Technical BrochureOctober 2004


Definitions

Communication: Information-sharing but generally through one-way, non-iterative process.

Consultation: a dynamic process of dialogue between two or more parties that leads to a decision. Ongoing exchange of views and information. Not a one off event.

Engagement: An organisation’s efforts to understand and involve stakeholders and their concerns in its activities and decision-making process.

Stakeholder: Any group or individual who can affect, or is affected by an organisation or its activities.


Different levels of engagement

Informing people (Awareness raising, communication, education)

Consulting people (Obtaining feedback, gauging opinion) Involving people (Contributing ideas, identifying priorities,

developing vision/aspirations) Acting together (Partnerships) Empowerment (Stakeholder-led decisions)


Survey mechanisms

Online questionnaire Confidential Open and tick boxes type of

questions Quantitative and qualitative

Analyses Focus on reaching the right

representatives within the utility Cover as many countries as

possible


Questionnaire content

1. Policies, Drivers and Legal Obligations2. Stakeholder Coverage and Identification Process3. Approaches to Consultation and Engagement4. Current Methodologies, Practices and Processes Used5. Engagement Management and Implementation6. Experiences, Impact and Benefits of Engagement7. Best Practices Development: Key Constrains, Challenges,

Areas for Improvement, Moving Forward.

Stakeholder Engagement and Consultation Strategies


Which Country? Portugal (2)

Romania (3)

Brazil (5)

USA (2)

UK (3)

Austria (2)

France (2)

Japan (3)

Germany (2)

Canada (1)

Croatia (1)

South Africa (1)

Israel (1)

Lesotho (1)

Switzerland (1)

Australia (1)

The Netherlands (1)

Sweden (3)

Italy (1)

Belgium (1)

Slovenia (1)

Spain (1)

Number of responses per country


Survey results – findings

50 Responses 39 Final responses 11 Incomplete 61 Registered on the website

We are using the 39 final responses – will give us greatest insight.


About the companies

16

11

22

0

5

10

15

20

25

Government Owned Privately Owned Other (please specify)


Main activity sector covered

23

34

26

14

5

0

5

10

15

20

25

30

35

40

Generation Transmission Distribution Retail Energy Other (pleasespecify)


If generation – what is the type?

13 13

710

19

10

3 4

0

2

4

6

8

10

12

14

16

18

20

Coal Gas Oil Nuclear Hydro Wind Solar Other(pleasespecify)


Organisations’ policies

21

10

36

19

10

0

5

10

15

20

25

30

35

40

SustainableDevelopment

Policy

StakeholderEngagement

Policy

EnvironmentalPolicy

SocialResponsibility

Policy

Other relatedpolicy (please

specify)

92% have published an Environmental Policy ‘Other’ responses:Quality policyHeath and Safety policyEthics and Behaviour CodeBusiness principlesFramework for Responsible Business


Consultation in different stages of projects

2

5

14

16

22

29

30

37

0 10 20 30 40

In none of the stages

Other

Decommissioning

Operations

Construction and Commission

Easements, Land Rights Acquisition

Planning and Feasibility Studies

Environmental Studies and DetailedDesign

number of answ ers


Legal requirement or voluntary basis?

31%

69%

Legal requirement

Voluntary basis

62% - Legal requirement depending on the scale of the project

31% - Legal requirement for every project

23% - Legal requirement only if the project need a formal Environmental Statement/EIA


In summary

When undertake Consultation:

Requires formal Environmental Statement/EIA

Legal requirement

Very Large projects

Developing policies

Small projects

Main Drivers:

Legal obligation (87%)

Reputation, values and ethical issues (87%)

Seeking views to influence design (28%)


Engagement beyond legislation

Good Stakeholder Relation Reputation Customer Focus and Loyalty Build Trust Secure Licence to Operate Less Opposition, Gain Public

Acceptance

Public have the right to be heard...


Measurement and impact of consultation & engagement approaches

17

4

0

2

4

6

8

10

12

14

16

18

Yes No

6

14

0

2

4

6

8

10

12

14

16

Yes No

Does the organisation report back to stakeholders and community about responses received and how the consultation process influenced policies and practices?

Yes No

Is this a legal obligation?

Yes No


Who is consulted?

Legal

Local Government

National Government

Regulatory agencies

Land owners

Affected communities

Informal

Media

NGOs

Politicians

Other utilities


Effectiveness of consultation tools

The most effective:

Individual face-to-face meetings

Community meetings

Dedicated website

Support from external experts

Tools used less:

Radio

Web-based surveys

Phone enquiry number


Constraints to consultation

13

16

24

17

2

0

5

10

15

20

25

30

Regulatorylimitations

Financial Time constraints Resourceconstraints

Other (pleasespecify)


Special processes for problems

Translate into other languages – use translators

Use local contacts as much as possible

Use people with local knowledge

Keep words simple – avoid technical words

Start early!

Concentrate on “critical” stakeholders

Set clear objectives – areas open to Influence

Be open about difficulties/constraints


Special processes for problems

Get NGOs to provide assurance

Individual consultation with the most “complex” consultees

Allocate special budget

Use independent expertise (e.g. workshop facilitators)

Produce additional material – specific public meetings

Focusing the dialogue on the main issues of concern


Considered important

Provide as much information as possible, targeted and tailored to suit particular stakeholders

Start consultation as soon as possible

Offer project-related documentation for scrutiny

Ensure the need for the project is robust

Undertake project stakeholder mapping as soon as possible;

The EIA preparation involves consultation (Overwhelming!)


Agree/Strongly Agree:

Some objections at Public Inquiries occur through misinformation and rumour

It’s important to allow full disclosure at all levels, be open, honest and responsive

It’s essential to maintain cooperation constructively over time and to continually consult on existing assets in order to build long-term relationships

Usually during the consultation process trust is built, not destroyed

Views about engagement


Disagree/Strongly Disagree

Stakeholder consultation is reactive response to community opposition

There is a positive correlation between the level of community consultation and the level of community opposition

Stakeholder consultation can end up being a process of “informing” consultees, without real scope for influencing

Views about engagement


Challenges

EMF/health Issues

Explaining the need for the project / project rationale

Manage expectations of communities

Engage the extreme opposition e.g. “Greens”, “Radicals”

Difficulties in overcoming misinformation and cynicism regarding the organisation’s intentions and approach

Initial disinterest or ignorance in the early stages of the project, followed by strong opposition at the point of submitting an application

NIMBY attitudes


Does engagement provide strategic direction for the utility?

YES! YES!

Important aspect of maintaining Licence to operate

“Essential to have public support”

“It is our responsibility to guard the interest of the community”


Advice - effective engagement

‘Asking’ has to come before ‘deciding’ Do not use consultation in order to justify the project Do not mix up “selling” and “asking”; Integrate consultation and involvement in project decision-

making Manage the expectations of all stakeholders - clearly state

aspects stakeholders are able to contribute to or influence, and the aspects of the project that are fixed

May need to build the capacity of stakeholders Do not forget ‘voiceless’


Understand your stakeholders Start early in the process Create an open process Use a mix of Methods – be flexible Have feed in and feedback loops in place Enable constructive debate Monitor and Evaluate

Engagement must be genuine and meaningful

Advice - key principles for engagement


Advice - engagement principles

Materiality: knowing what is important to you and your stakeholders

Completeness: understanding your impact and what people think of you

Responsiveness: demonstrating an adequate response to stakeholder views


Conclusion

Meaningful stakeholder engagement is an essential part of building a Sustainable Society – So it’s important to get it right!

Utility companies are working for the benefit of society So we have to listen to society Stakeholders = People


Thank you!

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