John Poulsen is a CSR and natural resources management specialist, with extensive experience from South and Southeast Asia. His work transcends numerous extractive sectors, including mining, forestry/plantations, and oil/gas.
2. Extractive sectors are significant drivers of the
economic development of many countries
Dilemma of massive demand and diminishing
resource availability
Increasing overlaps between resource exploitation
and interests of the broader public (includng local
communities)
Often largescale and longterm operations
penetrating and affecting many levels of society
• Immense opportunity for these sectors to contribute to a
sustainable foundation for the country's future
3. Forwho? – whose interests weigh
highest?
Hierarchical set of priorities
Gradual and continuous improvement
• Long-term sustainability reached through series
of short-term improvements/benefits
4. Spatial
• Local (project site), Regional, National,
International/Global
• Contribution/effect of the project
Temporal
• Life cycle approach
Trade
offs among these
Compromises
5. Partly depends on the spatial planning/design of
the operations, underpinned by three overriding
objectives:
• Maximizing efficiency of operations, hence profitability
• Minimizing adverse and offsite social, ecological and
environmental impacts and influences on local
communities
Easier to monitor and manage adverse environmental and
ecological impacts within a relatively small area
More effective protection and conservation of forests and
biodiversity, including the ecosystem services upon which
communities may depend
• Maximizing social benefits to local communities and the
environment upon which local communities depend
6. Human rights
Indigenous people
Land acquisition
Environment - land and water
Social – benefits/costs to local
communities, OHS, …
Corruption
7. Lack of clarity, ambiguity
New and evolving laws and regulations,
particularly aligning these with the
national development priorities
8. Establishing projects always requires
substantial private/domestic/foreign
(direct) investments
Does sustainability affect the investment
climate?
9. The company/corporation level
Broader stakeholder values
The country/national level
Shareholder Values SE
‘External’ factors:
national level
Investment, FDI conditions,
political stability,
Market Requirements reputation (corruption,
transparency, etc.)
10. Shareholder Values Broader stakeholder values
SE Index of sust.
Perceptions, PR, …
CSR, Sustainability
11. Supply & Demand
Stock Price Movements Economic Data
Company Announcements
Investor Sentiment Analysts earnings estimates
12. Equator Principles
IMF Performance Standards
Business systems
Certification, ISOs, …
13. Often perceived as a risk, rather than an
opportunity
Tightly managed to ensure clear
corporate messages
Communication and stakeholder
engagement are inextricably linked
Corporate Messages
• Tendency to avoid or hide sensitive issues,
rather than address such issues head on
• Multiple target audiences
14. Strategic corporate messages and information
effectively conveyed to intended target
audiences/stakeholders
Prioritizing information sharing and
communication
Appropriate means of communication for each
target audience/stakeholder
Preparedness for entering negotiations and
discussions with stakeholders
Means to reach stakeholders, and for
stakeholders to reach the company
Improving internal flows of communication
15. Create a conducive atmosphere
Ensure top level endorsement and support
Work at multiple levels, both vertical and
horizontal
Create room for asking provocative
questions, and embracing disagreement
• Challenge and question conventional wisdom and
biases
Usually no lack of technical knowledge
Explain risks to business and enterprise
Targeted, personal discussions with key
individuals
16. Incorporating comprehensive environmental,
social and governance perspectives
• May add additional value to the production, through
reputation and any market-driven demands
• Will reduce risks for company reputation, through
adverse impact on communities, environment, etc.
CSR, including community development projects,
as a means to reduce exposure to risk
CSR approaches as a means to respond to and
prepare for risks, i.e., build resilience
CSR, including community development projects,
as a means to offset any unavoidable negative
impacts of operations
18. As a means to buffer against local
instability/ies
Local instabilities can pose major
corporate risks
• Operational risks
• Investments
• Disturbances
19. Understand scale-dependent impacts of
operations
• Cost and benefit analyses at multiple scales
System dynamics as a means to build
common understanding/vision, both
within the organisation, and with external
stakeholders
20. Corporate messages on sustainability
Strategy and policies for sustainability and CSR
Align these with performance indicators of GRI
and/or other global initiatives
Internal awareness throughout the organization,
vertical and horizontal, e.g., finance, HR,
environment, OHS, ...
Code of conduct
Mainstreaming CSR business systems into the
entire structure including through bilateral
discussion with system managers (linkages)