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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.
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e3 Plus: A Framework for Responsible ExplorationCSR, 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 Source: Metals Economics Group, 2007
Projects financed in Canada 314 5093 310 1228 125 150 688 583 81 1056 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 performance of industry sectors Source: Globescan 2009
CSR performance of industry sectors over time Source: Globescan 2009
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
Mining Exploration, Corporate Social Responsibility and Human Rights: Untangling the Facts, Seeking Solutions (Odell Research and Consulting 2006) 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) IFC Compliance Advisory Ombudsman (2008-09 Annual Report) CSR Research by PDAC
Corporate Social Responsibility The Business Case CSR 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
A Framework for Responsible Exploration INFORMATION ACCOUNTABILITY
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) • Performance objectives • Reporting requirements • Ombudsman function • 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.
Prospectors and Developers Association of Canada Bernarda Elizalde, MSc. Program Director, Sustainable Development 416 362 1969 ext 289 Laureen WhytePrincipal, Arbutus Consulting