d4g - an industry perspective on assessing impact …...an industry perspective on assessing impact...

An Industry perspective on

assessing impact on social, health and environmental factors

in the Extractive Sector

Charles: Social Licence and Resource Development, May 2015

Christine Charles Bellagio Meeting

May 2015

www.d4g.com.au

The Aspiration Communities are seeking a balance between development and: economic growth, social cohesion, cultural strength and environmental stewardship.

Charles: Social Licence and Resource Development, May 2015 www.d4g.com.au

The context •  A global industry with a patchy past •  Increasing scrutiny and expectations for improved

performance •  No longer remote and hidden - significant change and

growth in Industry capacity and understanding over the past 15 years.

•  WB Extractive Industries Review: The Resource Curse •  A systemic approach emerging Can Resource Development work for everyone?


Social Licence to Operate •  The industry has influence •  Functioning societies work best – we need people to

work for us, partner with us and to buy from us •  Often there is a convergence of long term interests •  Business Drivers - most Companies cannot operate

well in communities that don’t want the business there.

•  Resource Development brings change and people affected want to share the benefits and minimize the negatives


Sustainable Development initiatives •  GMI/MMSD Report •  ICMM Sustainability principles •  The Extractive Industries Transparency initiative •  WB Extractive Industries Review •  The Publish what you Pay campaign •  The World Economic Forum Partnering Against

Corruption Initiative •  UN Global Compact •  Voluntary Principles on Security and Human Rights •  The Council for Responsible Jewellery Practices •  International Cyanide Management Code


Social and Environmental Assessment •  Environmental and social assessments have been

used for a number of years •  Significant maturity in the development of

environmental and social assessment and management systems.

•  Environmental and social management has become institutionalized in most large Resources companies.

•  Successful implementation is the biggest challenge •  Issues across the life cycle – exploration;

development; operations; closure; monitoring

www.d4g.com.au Charles: Social Licence and Resource Development, May 2015

Resources Sector history with HIA •  Health has largely focused on worker health but many

companies have public and community health programs (Malaria, STDs) for their workforce and communities

•  HIA largely has not featured beyond a simple health statement in the EIA

•  HIA is not generally required by legislation •  While health is recognised, there is a lack of systems,

capability and skills •  Increasingly required (eg: by the IFC, Equator

Principle Banks)


Development of Tools


RREDD Group www.rredd.com.au Charles: Social Licence and Resource Development, May 2015 www.d4g.com.au

Industry practice Initiatives cover: •  Global and regional

health programme •  Communicable

Diseases •  Third Party Primary

Health Care •  Support for

government health delivery

•  Specialised interventions (eg marginalized groups)


Influencing Corporate Decision Making •  Resources sector is global •  Senior Executives largely do not represent a ‘national’

perspective •  Market (Opportunity) driven and ‘risk’ focused •  Sites tend to be command and control •  Oversee many similar operations across the world but

operations have high levels of autonomy (and a local focus) •  Internally projects compete globally for funding •  Implement through complex and long supply chains •  Often disconnected from the mid tiers and SMEs who are

delivering the activity on which commitments have been made


Key elements in successful Programs •  Engagement with the community •  Understanding and acknowledgement of community

aims and concerns in design (joint development) •  Defining the companies priorities •  Selecting appropriate partners, having the right skills •  Clarification of roles and responsibilities and effective

co-ordination •  Recognising and integrating with the government and

community health system •  Establishing sound monitoring and evaluation •  Transparent and agreed exit strategy


d4g - an industry perspective on assessing impact …...an industry perspective on assessing impact...

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