Equitable Origin
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This presentation describes the Tools for Resilience that are being developed by Equitable Origin. This was recently showcased at a Resilience Shift tools and approaches workshop.
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Equitable Origin
- 1. Promoting responsible energy development. Tools for Resilience GIB Workshop 15 November 2018
- 2. About Equitable Origin We partner with business, government, and communities to enable sustainable development of energy and natural resources for all. We partner with business, communities and government to support transparent, sustainable and equitable energy development that benefits all stakeholders. Stakeholder engagement EO100™ Standard Project-level implementation Site certification Community partnerships EO Platform for performance management Equitable Origin System
- 3. Examples of Energy Development Impacts 15 million Americans live within one mile of a fracked well • GHG emissions • Water use • Air, water pollution • Community health and quality of life impacts • Socio-economic impacts Large dams have displaced 80 million people and negatively impacted 500 million people living down-stream • Community displacement • Ecosystem alteration • Reduced water access • Harm to fisheries • Spread of water-born diseases There are >15,000 wind farms in the world and global capacity is projected to double in 5 years • Threats to birds and bats • Noise pollution • Land use conflicts • Lack of Free, Prior and Informed Consent • Forced evictions Solar is currently a $1 billion industry estimated to grow to $9 billion worldwide by 2020 • Wildlife impacts • Land clearing and associated impacts: erosion, runoff • Water use in arid zones • Toxic waste from manufacturing Hydroelectric Wind Power Solar Natural Gas
- 4. Resilience Community consultation Stakeholder-based standards Secure social license • Sustainable Development Goal 7: “Ensure access to affordable, reliable, sustainable and modern energy for all” • Resilient infrastructure • Resilient communities • Resilient environment
- 5. 5 Business Case for Project Developers • Demonstrates leadership and innovation in sustainability • Management framework for implementing best practices • Supports identification and mitigation of non-technical, ESG risks • Benchmarks performance against international standards • Provides ability to compare and rank ESG performance at the project level • Facilitates a value chain approach by connecting downstream energy users to upstream impacts • Proactive approach to identifying opportunities for positive impact
- 6. 6 EO100™ Standard for Responsible Energy Development EO100™ Energy Standard: Industry-Specific Technical Addenda: Developed through ad hoc technical working groups/subcommittees of EO Technical Committee; approval by EO Board; updated as needed EO100.1 Onshore Oil & Gas EO100.2 Shale Oil & Gas EO100.n EO100.3 Wind EO100.4 Solar EO100.5 Hydroelectric EO100.6 Linear infrastructure Developed through multistakeholder ISEAL process with EO Technical Committee; approval by EO Board; updated every 5 years Corporate Governance, Transparency & Ethics Human Rights, Social Impact & Community Development Indigenous Peoples’ Rights Fair Labor & Working Conditions Climate Change, Biodiversity & Environment 1 2 3 4 5
- 7. 7 The EO100™ Standard Compared EO100™ ISO26000 DJSI IFC GRI UNGlobal Compact SA8000 ISO14001 OHSAS 18001 Management System Performance Indicators Certification at the asset level Tradeable certificates Ecolabel Rating system Developed with stakeholders Independently verified Designed for site-level application Public reporting Oil & Gas Industry Specific Self-assessment tool *Unlike the EO100TM Standard these standards, guidelines and reporting initiatives were not developed with the input of local communities in and energy development nor Indigenous Peoples.
- 8. 8 EO100™ Scoring Best Practices International Standards Performance Target 3 Performance Target 2 Performance Target 1 • Innovation and leadership • Best practices • International standards Project A: 80% Project B: 70% Project C: 60% Project A Governance 95% Social 75% Environment 70% TOTAL: 80%
- 9. 9 Corporate Governance, Transparency & Ethics Human Rights, Social Impact & Community Development Indigenous Peoples’ Rights Fair Labor & Working Conditions Climate Change, Biodiversity & Environment EO100™ Standard for Responsible Energy Objective 1 Performance Target 1 2 3 Objective 2 Objective n Independent Assurance EO100™ Score EO100™ Standard: thedragonflyinitiative.com
- 10. 10 Responsible Energy Platform: • An integrated platform for various types of users: • Corporate / Utilities (aggregated data and dashboards) • Project / Asset / Site-level • Investors & PPA partners • A stepwise approach to CSR/ESG performance management: • Gap Analysis • Management system implementation; training modules • Customizable reporting and data management • Benchmarking and integration of multiple standards • Graduated; Risk-BasedAssurance: • Self-Assessment • Desktop review • Onsite verification • Independent, third party certification
- 11. 11 On-Line Platform Facilitates Due Diligence and Project-Level ESG Performance data thedragonflyinitiative.com
- 12. 12 Thank you! Soledad Mills CEO Equitable Origin New York, NY smills@equitableorigin.org
- 13. 13 ANNEX
- 14. EO100™ Standard and Assurance System Demand-side Users of ENERGY
- 15. Our Team David Poritz President & Co-Founder • Entrepreneur and Founder • 10 years promoting responsible energy development • AB Brown University • MSc Oxford University • Truman and Rhodes Scholar Assheton Carter, PhD Senior Advisor & Head of Advisory Council • Advisor in business sustainability to Fortune100 extractives companies • Board Director for multiple standard- setting bodies • PhD University of Bath Soledad Mills Chief Executive Officer • 10+ years in supply chain corporate social responsibility • Expert in human rights and business with a background in standards and certification • MA Columbia University Sebastian Perez Director of Latin America Operations • Expert in corporate sustainability & stakeholder engagement • CSR Certificate, Tec Monterrey Transforming Communities Certificate, American University • MBA Candidate, Andes University Pablo Yepez Director of Socio-Environmental Affairs • 20+ years working in the Amazon region on environmental evaluation and stakeholder engagement • Biologist and ethnobotanist • Expert on Indigenous Peoples’ rights • BS Catholic University (Quito) Emma Hague Director of Research • Expert in sustainability and environmental markets business process management • MA Columbia University Earth Institute
- 16. Resilience
Notas do Editor
- We were founded in 2008… We envision a future where the world’s energy needs are met through development activity that is transparent and accountable, creates benefits for all stakeholders, and ensures environmental stewardship and the health, safety, and prosperity of affected local communities.
- Wind Case study: Feb. 2015: one person was shot dead during protests in Kinangop, Kenya where residents have been protesting against a $100 million wind power project The protestors claim that they have not been consultedm that hundreds of families risk being evicted from their homes, and that the project would cause health effects to the locals Solar Case Study: To produce a single megawatt, a typical solar PV plant requires approximately 8 acres of land. : a conventionally cooled solar thermal plant uses 740 to 890 gallons to generate one megawatt hour of electricity (3 times as much as a coal-fired power plant). Oil and Gas case study: Deepwater Horizon April 20, 2010: “Almost $1.2 billion in economic output and 17,000 jobs lost by the end of 2010” “Spill may cost the tourism industry $7.6 billion to $22.7 billion over three years” Hydro Case study Belo Monte dam in Brazil http://www.internationalrivers.org/annual-reports Hydro-electric generation will double by 2050 which will require 9,000 new large dams In 2013, a consortium of Canadian leaders (including industry representatives) warned that Canada is "heading for a gridlock in energy development that will rob the country of future wealth unless it can solve vexing environmental and Aboriginal conflicts." Indonesia has become saturated with violent resource conflicts, with more than 2,230 indigenous communities requesting investigations into violations of their land rights. Also in 2013, auctions for oil and gas concessions in Ecuador and Peru encountered both vehement opposition from indigenous peoples and "underwhelming" interest from companies - raising speculation that the indigenous protests influenced companies' decisions. http://www.truth-out.org/op-ed/item/29812-the-corruption-of-keystone-congressional-permits-to-drill-don-t-change-public-opinion#
- Interruption of a project can cost $20 million a week (CSRM, 2011) 73% of project delays are due to non-technical risks (ERM analysis, 2008) In Mexico, Oaxaca wind projects have drawn community opposition, led to a formal complaint filed with the Inter-American Development Bank and a federal court injunction (EO analysis, 2016) As society works to meet emerging energy demand and bring energy development to scale, it is critical that systems exist to mitigate the negative social and environmental impacts associated with these projects Resilience of infrastructure to ensure reliability of energy Resilience of communities to enable them to maintain or obtain access to energy during a crisis Resilience of the environment in the face of largescale energy development and consumption
- Voluntary standard and certification system for social and environmental performance Independent verification at the site level Framework for stakeholder engagement Maximizes operational efficiencies and reduces complexity Mechanism for recognizing and rewarding responsible practices Facilitates dissemination and application of best practices
- management tools that are grounded in intenrational standards, but go beyond to identify best practice that exceeds the norm and allows companies to learn about comparative very best examples.
- Power purchase agreement (method of securing renewable energy financing) Increasing trend of sustainability standards systems leveraging data management tools Identification of need for a stepwise approach and capacity-building based on industry reaction to EO100
- Standard Development Convene experts to identify impacts Enable stakeholder participation in the standards review process Conduct private sector engagement Facilitate public consultations Conduct community outreach Implement pilot projects Implementation and Engagement Enroll companies to commit to implementation Conduct gap analyses of site practices Provide training and capacity building to companies Manage network of Qualified Implementation Consultants Conduct community training and engagement Engage other stakeholder “influencers” Assurance and Certification Train and approve auditors and assessment bodies Establish assurance and certification procedures Develop Monitoring & Evaluation program Market Mechanism Engage downstream energy users Create and manage the EO Markets platform
- Team that can execute on standard-setting, certification and eco-label. Speak to each person’s skill set. Sebastián holds both Colombian and Ecuadorian nationalities. He has a strong experience leading multidisciplinary teams at responsible business associations, sustainability consulting and capacity building. He has addressed more than 1200 business leaders as a sustainability trainer. Also, he has lead sustainability projects for the extractive sector on stakeholder engagement and sustainable business not only in main urban centers, but also in secondary cities and remote rural locations. As a Project Manager for Standards and Assurance, Sebastián’s role in Equitable Origin is to support and promote the standard development and assurance processes, stakeholder engagement activities and strategic business development in Colombia. Sebastián is a University of the Andes MBA Candidate in Bogotá, holds an International Business Certificate on Corporate Social Responsibility from the Tec Monterrey Mexico and a Transforming Communities Certificate from American University in Washington DC. Expertise: Stakeholder Engagement, Sustainability Strategy, Sustainability Standards, Capacity Building Pablo’s 20 years working throughout the Ecuadorian Amazon evaluating environmental and social change has given him firsthand knowledge of the impacts that oil and gas development can bring to a community. Yet, he also understands the potential role that development can play in conserving forests and sensitive ecosystems. Pablo brings his extensive experience focusing on cultural and ecological conservation to Equitable Origin where he directs stakeholder engagement throughout the Ecuadorian, Colombian and Peruvian Amazon. As a biologist, Pablo’s work has included ethnobotany, ecology of primates, environmental education and sustainable community development projects. An avid photographer, Pablo has published several scientific articles, reports, books and videos related to the Amazon. Pablo graduated with a B.S. in Biology from the Catholic University in Quito Ecuador. Expertise: Monitoring of environmental and social change, stakeholder engagement A communications and marketing professional with a background in environmental and energy issues, Josh’s specialty is communicating complex problems and solutions to diverse audiences. His varied professional skills and experiences include writing, editing, public speaking, social media management, media outreach, advertising, and policy analysis. Josh is dedicated to forwarding social and environmental causes by conveying the multiple benefits of social equity and sustainability to businesses, consumers, policymakers, and NGOs alike. He brings a deep understanding of the oil and gas industry to Equitable Origin and leads efforts to communicate the company’s value proposition to producers and service providers in the sector. Following seven years of studying and analyzing the environmental impacts of shale development in the U.S., Josh assumed leadership of EO's work associated with shale oil and gas standard development and certification as Director of Shale Programs in March 2015. Josh received his Bachelor’s degree in English and theater from Wesleyan University and holds a Master of Public Administration degree in environmental science and policy from Columbia University. Josh came to Equitable Origin from The Nature Conservancy, where he served as Marketing Manager for the North America Energy Program. He previously worked with the New York City Mayor’s Office of Long-Term Planning and Sustainability. Expertise: Communications, marketing, public relations, environmental communications, environmental policy, energy policy, shale development impacts, shale development and hydraulic fracturing regulation Director of Certificate Markets Sarah believes that Equitable Origin’s market mechanism is a powerful tool for downstream oil and gas users to drive change in the industry. She brings expertise in environmental markets to the consumer rollout of EO Certificates and years of experience building and scaling business processes to the launch of the EO Certificates Trading Platform. From her diverse professional background, she draws a facility connecting with downstream stakeholders at all levels, from individual consumers to multi-national corporations. Sarah is also a key contributor to EO’s credibility & accountability programs. She holds a Master’s degree in Sustainability Management from Columbia University. Expertise: Sustainable business, environmental markets, monitoring and evaluation, operations
- A safe and sustainable energy pathway is crucial to sustainable development In order to bring energy equality to the world, requires ppl to use more energy. Development brings more energy demand. Imp to achieve that development in a better way.f Energy development is going to ramp up. As we transition to renewable sources of energy, it is critical that systems exist to mitigate the expanding social and environmental impacts associated with these projects We need to use less oil and gas We need to move towards more renewable sources In order to do that, there will be a transition Part of that is mitigating impacts of current energy development As we transition to renewables, we should also ensure that conventional energy development minimizes negative impacts As well as ensuring that new renewable development is respecting the rights of local communities and protecting the environment. Currently, there is no comprehensive standard to address resource development across the realm of energy production In order to bring renewables to scale, large projects with potentially significant impacts will be required Many of these development projects are taking place in environmentally and socially sensitive areas where regulation is weak Energy development companies, both non-renewables and renewables, have faced challenges in obtaining a social license to operate The history of energy development is ugly, littered with high profile litigation, incidents, spills, conflict, … Stakeholders currently lack effective tools to tackled these challenges, often leading to incidents Our theory of change is that companies can be transformed from the inside by setting standards for oil & gas development that become industry good practice norms expected from and demanded by stakeholders. Stakeholders – both communities and industry, including downstream companies – often ask if we certify: pipelines, offshore, renewables that have large footprints No recognized global standards for renewables In 2013, global investment in renewable power and fuels—not including large hydropower projects — was approx. USD $214.4 billion Renewables criticism (see next slides): invasion of territories of indigenous peoples impacts on local communities including concerns about sightline issues environmental consequences, especially with respect to wildlife supply chain labor and safety (China) water issues community consent concerns corruption Certification standards exist or are in development for biofuels, biomass and coal but there are no recognized global standards for oil, natural gas, hydropower or renewables. Virtually all of energy production, including alternatives have issues with respect to transparency in the granting of concessions, labor issues, incursion into territories of indigenous peoples, impacts on local communities including issues about sightlines, and issues about environmental consequences, especially with respect to wildlife and water use. The average citizen of Nepal consumes about 100 kilowatt-hours of electricity in a year. Cambodians make do with 160. Bangladeshis are better off, consuming, on average, 260. A typical American consumes, on average, about 13,000 kilowatt-hours of electricity a year. “Decoupling of human welfare from environmental impacts will require a sustained commitment to technological progress and the continuing evolution of social, economic, and political institutions alongside those changes” Until they are developed, poor countries will require access to other forms of energy — including hydroelectric power from dams, natural gas, and fossil fuels. “Sustainable development” has been around for over a quarter century, since the United Nations’ Bruntland Commission proposed it in 1987. Even then, it acknowledged its energy problem. “A safe and sustainable energy pathway is crucial to sustainable development,” it stated. http://www.nytimes.com/2015/04/15/business/an-environmentalist-call-to-look-past-sustainable-development.html?_r=1