Getting to Acceptance

Transcription

1 Getting to Acceptance Fernanda Diez, Manager, ICMM Lisbon, October 2016 At a glance Bringing together the world's leading mining and metals companies to address the sustainable development challenges faced by the industry. Teck Goldcorp Barrick Newmont Freeport- McMoRan Anglo American Rio Tinto Areva Hydro Glencore Polyus Mitsubishi JX Nippon Materials Mining & Metals Sumitomo Metal & Mining MMG Antofagasta Minerals Codelco AngloGold Ashanti Lonmin Representing 900+ sites in 58 countries African Rainbow Minerals (ARM) Gold Fields South32 BHP Billiton 2 1

2 The social contract in 1960/70 Mining companies gain: Profit for owners/shareholders Mining provides in return: Jobs at the mine Resources for the world Royalties/taxes to government 3 Social contract 1990s Mining Companies Gain: Profit for owners/shareholders Mining Offers In Return Minimal harm to the environment Jobs and benefits to local populations Resources for the world Royalties/taxes to government 4 2

3 Mining-community conflicts increasing ICMM Analysis of Incidents ( ) Key driving Issues (in-depth analysis of 2012 findings): (1) Economic; (2) Environmental, often related to water 29 5 But activity has increased too 6 3

4 Normalised conflict trend over time Conflict/$ Year Thomson, 2015 What we know about social acceptance We compared the findings of public attitude survey results from: Australia Chile Zambia USA Peru Findings: 1. Trust is a key driver of public acceptance of mining 2. Three factors distributional fairness, procedural fairness and confidence in governance - affect the public s acceptance of mining. 8 4

5 Actionable insights 1/7 Good relationships at the local level are not enough to insulate a company from problems with overall societal acceptance; there is interplay between the national and local levels. 9 Actionable insights 2/7 Some degree of trust in the mining industry is crucial for mining activities to be accepted. 10 5

6 Actionable insights 3/7 Distributional fairness, procedural fairness, and confidence in governance arrangements affect the public s acceptance of mining mediated by trust in the mining industry. 11 Actionable insights 4/7 While environmental performance is almost always rated the most negative impact of mining by local communities, it is rarely itself a significant predictor of trust. This has more to do with the relationship between the community and company. 12 6

7 Actionable insights 5/7 Direct drivers of acceptance include perceptions of the industry s contribution to community development/infrastructure, employment and macroeconomic development/wealth creation. 13 Actionable insights 6/7 Distributional fairness and procedural fairness act as enablers, that is, they serve to strengthen or weaken the links between trust and acceptance. 14 7

8 Actionable insights 7/7 Companies need to tailor their relationship building approaches to the national and local contexts very deliberately 15 A predictive model for acceptance of mining and metals 16 8

9 Context: Expectations of social value are rising The private sector is expected to do well and also to do good Contribution to the SDGs Role in post-cop21 climate agenda Growing inequality and Gender inequality Concerns over Und(der) employment of impacts/benefits workplace air quality 17 Context: Citizens are demanding greater engagement More effective citizen Influence on social licence Demand to participate activism to operate in decision-making 18 9

10 And are demanding more accountability and transparency Transparency and Increasing shareholder Rise of a rights-based accountability activism Discourse 19 If companies cannot navigate through this context They risk losing social licence, with a very real cost One study estimated the cost of conflict: up to Au$10,000 ( 4,900) a day during exploration up to Au$50,000 ( 24,507) a day during advanced exploration up to Au $20 million ( 9.8 million) a week during operations 20 10

11 ICMM s plans for 2017 include the following Citizen voices in mining a partnership 21 International Council on Mining and Metals (ICMM) 35/38 Portman Square London W1H 6LR United Kingdom Switchboard: +44 (0) Main Fax: +44 (0) info@icmm.com 11