laureen whyte, arbutus consulting prospectors and developers association of canada
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e3 Plus: A Framework for Responsible Exploration CSR, Mineral Exploration and the Challenge of Accountability. Laureen Whyte, Arbutus Consulting Prospectors and Developers Association of Canada 5 th Annual Risk Mitigation and CSR in Africa and Emerging Markets ● Vancouver. - PowerPoint PPT PresentationTRANSCRIPT
e3 Plus: A Framework for Responsible Exploration
CSR, Mineral Exploration and the Challenge of Accountability
Laureen Whyte, Arbutus Consulting
Prospectors and Developers Association of Canada
5th Annual Risk Mitigation and CSR in Africa and Emerging Markets ● Vancouver
Number of companies in the global mining industry
Junior Interm. Senior Govt. Other TOTAL
Canadian 1087 21 7 1116
Australia 498 21 4 1 3 527
U.S.A 102 5 3 110
European 102 6 8 1 117
African 29 5 5 39
Latin American
13 13 4 1 31
Rest of World
10 17 8 5 40
Source: Metals Economics Group, 2007
Projects financed in Canada
5093
1228
583150
1056
310
688
81
314
125
359
Of the 9987 mineral projects held by TSX and TSX-V companies, 49% are outside of Canada
Source: InfoMine, Compiled by TSX, January 2008
CSR Context
Evolving Expectations
On the ground: Dependent on local circumstances – Context
specific
Confusion between Philanthropy and CSR
Pressure from Civil society, media, and other stakeholders
No common definition for CSR
SME’s “hand made” CSR strategies
CSR Research by PDAC
1. Mining Exploration, Corporate Social Responsibility and Human Rights: Untangling the Facts, Seeking Solutions
(Odell Research and Consulting 2006)
2. Corporate Social Responsibility: Movements and Footprints of Canadian Mining and Exploration Firms in the Developing World (Canadian Centre for the Study of Resource Conflict, 2009)
3. IFC Compliance Advisory Ombudsman (2008-09 Annual Report)
Corporate Social Responsibility
The Business CaseCSR study: Movements and Footprints of Canadian Mining and Exploration Firms in the Developing World - (Oct 2009)
171 alleged violations by mining companies around the world since 1999
• 33% involved Canadian companies
• 56 alleged violations ⁄10 years = 6 per year---------------------------------------------------------------------- 110 complaints processed by IFC/CAO since 2000
•8 complaints involved 4 mining companies, including 1 Canadian and 1 partly Canadian-owned company
e3 Plus Reporting System
• The PDAC and GRI agreed: – Create a model report for each exploration stage (early,
intermediate, and advanced exploration)– Ask exploration companies to apply some sections of the already
developed GRI system, such as the materiality test and some applicable indicators.
• The GRI-e3 Plus reporting system would also:– Be applicable if a certification system is set in place. – Create software that would put together a more practical, user-
friendly reporting system.– Be applicable to finance institutions
– Create different platforms for explorers to indicate their level of compliance within the reporting system. Thus, they would not limit themselves to filling out a form, but they would have the motivation to report more things if they want to.
Opportunities for Improvements
GOVERNMENT (mandatory) Host country governance capacity-building Access to capital – strengthening requirements in
securities regulations – materiality - disclosure
INDUSTRY (voluntary - mandatory) Due diligence & risk assessment Community engagement
GOVERNMENT – INDUSTRY (voluntary – mandatory)
1. Performance objectives
2. Reporting requirements
3. Ombudsman function
4. Verification
CSR – what next?
• From add-on to built-in CSR: Integrating social and environmental considerations into strategy and operations instead of developing CSR initiatives unrelated to the core business
• From value protection to value creation: Exploring CSR as a driver of innovation and competitive advantage instead of focusing only on risk and reputational management
• From reactive to proactive stakeholder engagement: Involving stakeholders throughout the process instead of reactively responding to stakeholder concerns.