Planning and Managing Stakeholder Engagement

Transcription

1 Planning and Managing Stakeholder Engagement For Myanmar Mining Development Summit January 2016

2 Overview of Presentation n About Social Clarity n Planning and Managing Stakeholder Engagement: n What is a Stakeholder? n The Regulatory Reality n Why Stakeholder Engagement is Important n Using Stakeholder Mapping as a Foundation Tool n The Benefits of a Grievance Process n Examples of some Process Tools n Questions

3 About Social Clarity n A social performance consultancy, with a focus on emerging economies and fragile states: n Services span social impact assessments, social risk management, stakeholder engagement, social investment & local content strategy development and execution n Presence in Myanmar n Work with businesses, governments & communities n Strong experience in the extractives sector n Partner local social and environmental consulting firms n Draw on complementary international expertise as needed e.g. environment, health and safety, security

4 What is a Stakeholder? n Stakeholders are organisations, interest groups, households, and individuals who are likely to: n Be affected, either directly or indirectly, by a project at various stages of its life cycle n Have the ability to influence project outcomes (both positively and negatively) n Have frequent contacts or an ongoing relationship with the company n Stakeholder groups may include: n Nearby local communities/settlements (including ASM) n Government (local, regional, national) n Landowning households n Transient migrant communities (e.g. migrant workers, ASM) n Vulnerable groups (women, youth, elderly, disabled, marginalised groups) n Project workforce n Project contractors n Local civil society organisations (community-based groups, NGOs) Source: International Finance Corporation (IFC), 2014, A Strategic Approach to Early Stakeholder Engagement. A Good Practice Handbook for Junior Companies in the Extractive Industries p.81. Accessible via: userfiles/final_ifc_131208_esse%20handbook_web% pdf

5 The Regulatory Reality - 1 n Per the December 2015 MOECAF EIA Procedures: n Appropriate Public Consultation is a requirement through all phases of the EIA Process per Articles 34, 50, 61 n The Project Proponent is required: to disclose to the public in a timely manner all relevant Project-related information (except that which relates to National Security concerns as informed by MOECAF) n Projects that involve Involuntary Resettlement or which may potentially have an Adverse Impact on Indigenous People are required to comply with specific procedures separately issued by the responsible ministries: n In the absence of these procedures, international good practice applies (per World Bank Group and Asian Development Bank standards) n Existing Projects are required to undertake an environmental compliance audit, including on-site assessment and to then develop an EIA, IEE, EMP etc n Environmental Impacts are defined as including occupational, social, cultural, socio-economical, public and community health, and safety issues. Social impacts are defined as including Involuntary Resettlement and relating to Indigenous People Source: Myanmar Environmental Impact Assessment (EIA) Procedures [MOECAF Notification 616 of 29 December 2015). Unofficial English Translation, January 2016 pps 7,6,2. Accessible via: resources/environmental-impact-assessment-procedures.html

6 The Regulatory Reality - 2 No. Type of Economic Activity Criteria for IEE Type Economic Activities Criteria for EIA Type Economic Activities Mining 1. Extraction of Rock, Gravel or Sand from a River or Marine Waters 2. Construction, Building and Ceramic Minerals Extraction (aggregates, limestone, slates, clay, gypsum, feldspar, silica sands, granite, kaolin, bentonite, marble, and quartzite) 3. Extraction and Refining of Industrial Minerals (barite, fluorite, phosphate, potash, salt, soda ash, asbestos) 4. Extraction of Ferrous, Non-Ferrous Metal and Precious Metal Ore Except Gold (iron, manganese, silver, copper, tin, antimony, lead, nickel, zinc, chromium, bauxite), and Precious Stone 5. Refining of Metal Mineral Ore (without using hazardous chemicals) 6. Refining of Metal Mineral Ore (using hazardous chemicals) 7. Extraction and Refining of Gold Ore (without using hazardous chemicals) 8. Extraction and Refining of Gold Ore (using hazardous chemicals) 1,000 m 3 /a but < 50,000 m 3 /a 50,000 m 3 /a < 200 acre and < 100,000 t/a < 200 acre and < 100,000 t/a ore < 50 acre and < 50,000 t/a 200 acre or 100,000 t/a 200 acre or 100,000 t/a ore 200 acre or 50,000 t/a < 50,000 t/a 50,000 t/a < 25,000 t/a 25,000 t/a < 20 acre 20 acre < 20 acre and < 25,000 t/a 20 acre or 25,000 t/a 9. Coal Mining (underground and surface) < 100,000 t/a coal 100,000 t/a coal 10. Mining, including Dredging of Heavy Mineral Sands (tungsten, ilmenite, rutile, zircon, titanium, monazite) 1,000 m 3 /a but < 50,000 m 3 /a 50,000 m 3 /a! Source: Annex 1 to EIA Procedures: Categorization of Economic Activities for Assessment Purposes. Unofficial English Translation, January Accessible via:

7 The Regulatory Reality - 3 n Other Key Laws and Regulations include: n Myanmar Protection and Preservation of Cultural Heritage Regions Law (1998) Amended by Law No. 1/2009 n Disabilities Law (introduces quota concept) adopted June 2015 n Protection of National Races (ethnic minorities) adopted Feb 2015 n Amendment to the Land Acquisition Act (currently Draft Law in Parliament): n changes rate of compensation from market value to the market value of the land or three years average value of a similar land which exists surrounding it; whichever is more. n National Land Use Policy, and subsequent revisions to laws (in the pipeline) n A variety of labour laws as part of a program of labour law reform. Source: Myanmar Centre for Responsible Business (MCRB), October 2015, Recent and upcoming Myanmar laws related to responsible business. Accessible via:

8 Why Stakeholder Engagement is Important - 1 Source: International Finance Corporation (IFC), 2014, A Strategic Approach to Early Stakeholder Engagement. A Good Practice Handbook for Junior Companies in the Extractive Industries p.26. Accessible via: userfiles/final_ifc_131208_esse%20handbook_web% pdf

9 Why Stakeholder Engagement is Important - 2 Excerpt from Letpadaung ESIA (2015): Source: Knight Piesold Pty Ltd, January 2015, Myanmar Wanbao Mining Copper Ltd Letpadaung Copper Project Environmental and Social Impact Assessment (ESIA) p. 191 Accessible via: our-latest-news/53-june-2015/135-final-version-of-esia-report.html

10 Rationale and Benefits of Early Stakeholder Engagement n Building an understanding of the local context, including stakeholder mapping and analysis n Building relationships based on trust and transparency n Ensuring consistency in stakeholder engagement and communication n Managing stakeholder expectations through a graduated, phaseappropriate approach n Establishing an early, accessible, and responsive grievance mechanism for conflict management n Seeking win-win scenarios for the company and stakeholder groups n Avoiding and mitigating social risks n Minimising risks and maximising opportunities to create and protect value for the project and local communities Source: International Finance Corporation (IFC), 2014, A Strategic Approach to Early Stakeholder Engagement. A Good Practice Handbook for Junior Companies in the Extractive Industries p. 1. Accessible via: userfiles/final_ifc_131208_esse%20handbook_web% pdf

11 Stakeholder Engagement in Myanmar: an Evolving Context n The telecommunications rollout & social media ramp-up in Myanmar are changing the stakeholder engagement paradigm. n Telecom penetration >60% in Sept 2015, up in 2013 (one of the fastest ever mobile penetration spikes). n Q3 2015, Myanmar was the 4 th fastest growing mobile market : n About 36 million mobile subscribers, up 5 million from Q2. n Smartphone subscriptions expected to double by n Mar 2014-Mar 2015: Facebook users grew >204% to 6-7 mill. users/ mth. n GoM 2020 Targets: n >90% of Myanmar s population will have telephone access. n >85% of Myanmar s population will have internet access and >50% high-speed internet access. Sources: 1) Dealstreet Asia, January 2, 2016, Battling infrastructure challenges, telecom & Internet sectors clock manifold growth 2) The Myanmar Times, 20 November 2015, Myanmar named fourth-fastest growing mobile market in the world by Ericsson 3) The Myanmar Times, 28 January 2016, Advancing Myanmar s telecom infrastructure 4) Myanmar Now, 21 December 2015, Smartphone freedom fuels Myanmar politics

12 Using Stakeholder Mapping as a Foundation Tool n Stakeholder Analysis/Stakeholder Mapping is: n A process that seeks to identify and describe the interests and relationships of all the stakeholders in a given project. It is a necessary precondition to participatory planning and project management (IFC, 2014) n Helps to fine-tune identification of affected communities and appropriate methods of consultation: n Including consideration of women & other underrepresented groups n Helps to identify influencers within the community, sectoral interdependencies & potential cumulative impacts n Informs the development of a right-sized community engagement strategy & stakeholder engagement approach Source: International Finance Corporation (IFC), 2014, A Strategic Approach to Early Stakeholder Engagement. A Good Practice Handbook for Junior Companies in the Extractive Industries p. 41. Accessible via: userfiles/final_ifc_131208_esse%20handbook_web% pdf

13 The Benefits of a Grievance Process n Acts as an early warning system n Creates a process that communities can use to engage with the company n Mitigates the social risks posed by leaving a vacuum n Can assist with managing the potential for negative social media n Key Principles for Grievance Mechanisms: 1. Proportional 2. Culturally Appropriate 3. Accessible 4. Transparent and Accountable 5. Appropriate Protection Source: International Finance Corporation (IFC), 2014, A Strategic Approach to Early Stakeholder Engagement. A Good Practice Handbook for Junior Companies in the Extractive Industries pps Accessible via: userfiles/final_ifc_131208_esse%20handbook_web% pdf

14 Examples of Some Process Tools - 1 Survey Instrument to Assess Issues and Impacts short version Source: The International Council on Mining and Metals (ICMM), 2015, Stakeholder Research Tool Kit. Best practice guidelines for measuring and monitoring stakeholder relationships in the mining and metals industry resource sector. p. 32. Accessible via:

15 Examples of Some Process Tools - 2 Survey Instrument to Assess Issues and Impacts excerpt from long version Source: The International Council on Mining and Metals (ICMM), 2015, Stakeholder Research Tool Kit. Best practice guidelines for measuring and monitoring stakeholder relationships in the mining and metals industry resource sector. p. 35. Accessible via:

16 Examples of Some Process Tools - 3 Survey Instrument to Assess Perceived Value of Community Investment activities Source: The International Council on Mining and Metals (ICMM), 2015, Stakeholder Research Tool Kit. Best practice guidelines for measuring and monitoring stakeholder relationships in the mining and metals industry resource sector. p. 36. Accessible via:

17 Examples of Some Process Tools - 4 Stakeholder Identification and Mapping Matrix Source: International Finance Corporation (IFC), 2014, A Strategic Approach to Early Stakeholder Engagement. A Good Practice Handbook for Junior Companies in the Extractive Industries p. 83. Accessible via: FINAL_IFC_131208_ESSE%20Handbook_web % pdf

18 Source: International Association for Public Participation (IAP2), 2008, IAP2 Public Participation Spectrum. Accessible via: IAP2 Spectrum of Public Participation

19 The IFC Early Strategic Stakeholder Engagement (ESSE) Handbook covers the full Project Life Cycle through to Closure/ Post closure (this is an excerpt) Source: International Finance Corporation (IFC), 2014, A Strategic Approach to Early Stakeholder Engagement. A Good Practice Handbook for Junior Companies in the Extractive Industries p.11. Accessible via: userfiles/final_ifc_131208_esse%20handbook_web% pdf

20 n Questions?