WHY SUSTAINABILITY & STAKEHOLDER MANAGEMENT MAKE GOOD BUSINESS SENSE FOR THE MINING BUSINESS…. & YOUR SHAREHOLDERS TOO.
Thursday November 15, 2019 Siri C. Genik BRIDGE© THE COMMUNITY FOR LEADING INDUSTRY EXPERTISE
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Sustainability & Stakeholder Strategy make Good Business Sense …
“Behind all seen things lies something vaster; everything is but a path, a portal or a window opening on something other than itself. ” [Wind, Sand and Stars (Terre des Hommes) – Antoine de St. Exupéry 1939]
Different strategies that will help build methods to integrate a sustainable approach throughout the business, all of its functions and all of its disciplines. How can the business successfully deliver value to the shareholders and ensure sustainable results for the stakeholders, until well beyond the mine closure and remediation
Sustainability & Stakeholder Strategy make Good Business Sense …
Sustainability & Stakeholder Management… we have all been talking about it These two words are used by large corporations and small cap mining companies, as well as those who are in the initial stages of exploration and those who are starting to think of closing down operations… do they mean the same thing? They are always part of the conversation around the “Social License to Operate” (SLTO) and part of the necessary steps to be taken to obtain permits.
Sustainability & Stakeholder Strategy make Good Business Sense …
Definitions: SUSTAINABILITY: “Development that meets the needs of the present without compromising the ability of future generations to meet their own needs." Bruntland Report for the World Commission on Environment and Development (1992)”;
"A process of change in which the exploitation of resources, the direction of investments, the orientation of technological development and institutional change are all in harmony and enhance both current and future potential to meet human needs and aspirations" The World Commission on Environment and Development”
Sustainability and Stakeholder Strategy make Good Business Sense …
Definitions: STAKEHOLDERS “ A person, group or organization with an interest or concern in something, a business, or a project. Stakeholders can affect or be affected by the project, its objectives and policies.” Wikipedia
Sustainability & Stakeholder Management make Good Business Sense …
“There always seems to be a minefield of challenges between the boardroom and the leadership team on the one hand and the delivery of the project and the teams on the ground on the other hand”. Understanding the organization vision
Understanding the business’ business model Understanding the big picture, the landscape
Sustainability & Stakeholder Strategy make Good Business Sense …
A SIX STEP PROCESS 1 - Understand the landscape
2 – Understand who ALL the players are (within the organization as well as external) and their respective agendas ( “what’s in it for them”/ levels of influence) 3 – Understand the timelines: a) – the Company's b) – the Project’s c) – the Regulators
Integrate into one single timeline for a realistic understating of schedule
4 – Understand the interfaces between all of the stakeholders, internal and external
5- Determine the risks (list) & understand their importance (weight) 6 – Build an Action Plan
A Complex Stakeholder Map… MEDIA/ REPUTAION
Working Group (Technical)
XXX International
Shareholders
Pvcl EAO
CEAA JOINT PROCESS
XXX Canadian office A
Community Advisory Group [CAG]
Public Interest Groups
B C
Advisory Panel (composition?) (local leaders?)
MINE PROJECT
Project Team Local Businesses
- FEED - Constructability Sub-Contractors
Community Consultation Plan
City of XXXX
FN group(s)
Mining Watch, Sierra Club, etc. (NGO)
EPCM Contractor “Stop Project”
Previous Mines Legacy
Community Benefit Agreement
FN Review Process
In parallel w/ ESIA funded by XXX
FN Claim to Title (Supreme Court caselaw)
Risk Interface Matrix (SAMPLE) SUSTAINABILITY Risks Function
LEGAL
FINANCE
TECHNICAL
COMMUNICATIONS
HUMAN RESOURCES
1 POLITICAL
2 ENVIRONMENT AL
3 SOCIOECONOMIC
4 UNIONS
5 INDIGENOUS COMMUNITIES
6 REPUTATION
7 HEALTH & SAFETY
8 GOVERNANCE
Sustainability & Stakeholder Strategy make Good Business Sense…
Take the time upfront to set up your “chess-board” and devise your strategy; This approach will provide you with the tools to realistically manage your schedule and your budget, the ability to factor in these results in to your prefeasibility study, Project Execution Plan, etc.
It also provides the organization with the information and results that increasingly are attractive to financial institution s and potential investors: the triple bottom line now takes on a new meaning; Provides a solid foundation to new kinds of partnerships for the business and alliances; Provides opportunities for the “mining eco-system”: i.e. - renewable energy, infrastructure, agriculture, forestry, water mngmt and capacity building, etc.
Sustainability & Stakeholder Strategy make good Business Sense…
CONCLUSION Sustainability & Stakeholder Strategy: the mining way of doing business! The target: deliver an integrated business model, based on trust and transparency, within the organization as well as externally, and establishing a “best-in-class” reputation. A way to improve your bottom line
Increased ROI for shareholders Strong SROI for ALL stakeholders Important impact for the long term and broader economic
implications
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