Global Perspectives on CSR in the Extractive Sector
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Slides from a keynote presentation to the British Columbia Mining Forum 2015. Discussion on the growing social demands on the global mining industry. The presentation dealt with how those demands were manifesting and the general themes that government responses are taking. While the focus of the panel was Latin America the growing demands and the manifestation of responses is similar in all countries and regions To keep updated on postings and events go to www.csrtraininginstitute.com and sign up for the newsletter. If interested the CSR Knowledge Centre http://bit.ly/CSRknowledge contains a series of short, pragmatic articles on CSR Strategy, Management and related areas.
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Global Perspectives on CSR in the Extractive Sector
- 1. Global Perspectives on CSR Dealing with growing social demands Wayne Dunn CSR Training Institute info@csrtraininginstitute.com www.csrtraininginstitute.com BC Mining Forum 2015 Friday March 6, 2015 Vancouver, Canada
- 2. BC Mining Forum 2015 Vancouver, 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
- 3. BC Mining Forum 2015 Vancouver, 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
- 4. BC Mining Forum 2015 Vancouver, 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 AND has more power to force change
- 5. BC Mining Forum 2015 Vancouver, 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
- 6. BC Mining Forum 2015 Vancouver, 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
- 7. BC Mining Forum 2015 Vancouver, 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.
- 8. BC Mining Forum 2015 Vancouver, 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
- 9. BC Mining Forum 2015 Vancouver, 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)
- 10. BC Mining Forum 2015 Vancouver, 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)
- 11. BC Mining Forum 2015 Vancouver, 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
- 12. BC Mining Forum 2015 Vancouver, 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
- 13. BC Mining Forum 2015 Vancouver, 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)
- 14. BC Mining Forum 2015 Vancouver, 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)
- 15. BC Mining Forum 2015 Vancouver, 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
- 16. BC Mining Forum 2015 Vancouver, 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
- 17. BC Mining Forum 2015 Vancouver, Canada Global Perspective dealing with Growing Social Demands Social value imperative applies across industry, sector & geography
- 18. BC Mining Forum 2015 Vancouver, 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
- 19. BC Mining Forum 2015 Vancouver, 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
- 20. BC Mining Forum 2015 Vancouver, Canada Global Perspective dealing with Growing Social Demands Questions, Discussion & Followup Follow-up Wayne Dunn President & Founder CSR Training Institute Professor of Practice in CSR @ McGill wayne@csrtraininginstitute.com www.csrtraininginstitute.com