Guide to Social Impact Assessment

1. Guide toSocial Impact Assessment In the Oil and Gas Industry Lee Zarnikau (ConocoPhillips)

2. About the Guide • Outlines use of Social Impact Assessments (SIAs) in oil and gas industry • Inform managers how to make best use of SIAs

3. Inside the Guide

4. Scope realistic & achievable Approach tailored to specific project conditions & constraints Initiate early (project conception) SIA output incorporated into project execution plan Recognize sensitivities (i.e., analysis appearing critical of culture) Management commitment at all levels across disciplines Steering committee can be useful SIA Key Success Factors

5. SIA Key Success Factors, cont’d • Early and frequent internal communication on SIA objectives  coordination of involved disciplines • Local knowledge of social, political and cultural issues • Maximize use of participatory approaches • Involve operations personnel in consultation process • Identify and communicate vision and goals for social performance • Define social performance and contractor requirements

6. For Business Short and long-term risk management tool Input into stakeholder engagement process design Better estimating and optimization of socio-economic costs Defining socio-economic considerations for inclusion into tender documents Meet financial / aid institution requirements For Communities Avenue to express views to company Identify opportunities for economic development Contribution to local capacity building Infrastructure Skills Support for traditional industries Protection of cultural resources Inclusion of communities SIA Benefits

7. Integrating the SIA

8. SIA Process Design and Engineer Construction / Operations / Abandonment Project Conception Review Modeling Project Information Scoping Planning Impact Assessment Disseminate Findings Risk Mitigation Benefit Enhancement Implementation Monitoring Legislation Socio- economic Context Significance Criteria Stakeholder Engagement

9. Discussion Questions • How do you encourage full-issue impact assessments when the regulatory drivers aren’t there? • How do you get the findings of the impact assessment off the shelf? • What lessons have you learned about coordinating SIA and stakeholder engagement? How do you manage community expectations during those efforts? • When do you use local vs international contractors to conduct the impact assessment? Any lessons learned?