SPE 156856 Management Systems for Social Performance: Current Status and Trends
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Transcript of SPE 156856 Management Systems for Social Performance: Current Status and Trends
SPE 156856 Management Systems for Social Performance:
Current Status and Trends
Karen Westley, ShellOn behalf of IPIECA Social Responsibility Working Group
Presentation Overview
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Elements of Social Performance Management Systems (SPMS)
Leadership and
Accountability
Policy, Standards and Commitments
Organisation, Resources and
Capability
Plans and Procedures
Identification of Risks and
Opportunities
Stakeholder Engagement
Monitoring, Reporting and
Learning
Audit and Review
Integrating Social Performance (SP)Risk assessment and management
Risk Assessment Matrices
Issues identification and management
Ethics, compliance and whistle-blowing
Stakeholder engagement ESHIA
Introduction
Introduction: Social Performance Management Systems (SPMS)
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WHY?
• Increased focus on external
stakeholders
Need for systematic approach
Risk management
and opportunity optimisation
IPIECA is developing guidance on integration of social performance into management systems
Overview: Integrating Social Performance
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•Risk management•Opportunity optimisationDefine scope and boundary
of SP•Mandate•Company context•ApproachDetermine how
to develop SPMS
•Targeted •Inclusive •Comprehensive
Define scope of the MS
Pros and Cons of Integrating SP into MS
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• Risk assessment and management
• Risk Assessment Matrices• Issues identification and
management• Ethics, compliance and whistle-
blowing• Stakeholder engagement• Environmental, Social and Health
Impact Assessment (ESHIA) and Management
Risk Assessment and Management
• Used to assess financial, commercial, political, technical, health and safety risks
• SP may interact and feature in these systems
• Social factors may be unpredictable and hard to quantify
• Challenge of integrating opportunity identification into risk assessment
Risk Assessment Matrices (RAM)
• Tools usually applied to an incident or event, with specific/measurable
consequences• SP can be covered but often not in meaningful way
Issues Identification and Management
• Identified through stakeholder management
• Even if not directly linked to business activities, may be
regarded as significant• Reputational focus of issues management may lead to communications response, whereas SP focused on managing
impacts
Ethics, Compliance and Whistle-blowing
• Systems normally sit within compliance
• Implementation can be similar to grievance procedures
Stakeholder Engagement• Some mining companies
integrating HSSE, stakeholder engagement, commitment tracking, social investment and grievance
• Oil and gas taking incremental approach - stakeholder engagement within social performance management system
ESHIA• Management plans
stemming from ESHIA key element to SP MS.
• ESHIA may only be carried out once
Stakeholder engagement linked to risk and performance requirements
Elements of Social Performance Management System: Leadership and Accountability
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Strong leadership and a clear mandate from senior
management endorse that social performance is prioritised in
management decisions
• The board to provide managers with authority and resources
• Each manager as a champion and role model
• Commercial managers set priorities, budgets, schedule, organization and resources
• Clear messaging in sustainability reports
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Elements of SPMS: Policy, Standards and Commitments
Policies that encompass elements of
social performance
Sustainability policy
Human Rights policy
Local Content policy
Policies related to HSSE
Policies for social impact mitigation, social investment
and and/or community
engagement
Elements of SPMS Cont’d
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Organisation, Resources
and Capability
Develop capability
Clarify accountability
Create performance KPIs
Manage talent
Provide assurance
Define social performance competencies
Plans and Procedures
Plans include objectives, activities, KPIs,
Resources, Budget
Plans appear in range of forms: social performance,
resettlement plans, Indigenous Peoples plans
Identification of Risks and Opportunitie
sIFC Performance Standard
1 advocates for an integrated impact
assessment
Regulatory bodies vary by country on extent to which
SIA is part of permitting process
Many companies integrating human rights into due diligence, in line
with UN Guiding Principles
Elements of SPMS Cont’dImpact Assessment, Opportunity Identification and Management
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Identification of Risks and Opportunities
Social Impact Assessment•Mitigation hierarchy
•Assessment of severity of impacts•Qualitative and quantitative methods
•Application of procedures for resettlement•Stakeholder engagement and disclosure
Social Opportunity Identification
Impact Management
Local opportunities
(linked to business activities)
Social License to Operate
Elements of SPMS Cont’dStakeholder Engagement
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• Build and sustain relationship across the project cycle
• Results in improved risk management and operational performance
Purpose
• Enhancing design and inclusiveness of engagement
• Participatory approaches to impact assessment, project monitoring and social investment
Substance
• Systems to support stakeholder engagement
• Integration of grievance procedures into stakeholder engagement
Relationship to company
management system
Elements of SPMS Cont’d: Monitoring, Learning and Reporting / Audit and Review
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Internal monitorin
g
Process-focused
Ops to have relevant plans
and procedures
Public reporting
Voluntary sustainability
reports
Collecting and analysing data
complex
Involvement of external
stakeholders in validation
Learning
Communities of practice
Incorporated into training
Info from audits shared
throughout company
Audit and Review
Incorporate into HSSE audits
External stakeholder interviews
Training auditors on SP
Summary/Wrap Up
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• SPMS is an evolving practice
• Integration of SP into existing MS is preferable
• Existing systems may need some adaptations
• Active learning and development to identify appropriate approaches and practices through IPIECA
Thank You / Questions
IPIECA Social Responsibility Working Group
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