Over the past several decades, international financial institutions (IFIs) have mandated ever-more stringent social (and environmental) safeguards requirements for project operators to comply with in almost every industry. There is no shortage of examples: labor and working environments safeguards, supply chain management, land acquisition compensation frameworks, benefits-sharing requirements, health and safety safeguards—the list goes on, and gets longer every year. Even when a project is not financially dependent on IFI funding, non-adherence to these kinds of safeguards entails a range of costs, from reputational damages to forced shut-downs of operations. Compliance with social safeguards (both national and international) is key to demonstrating corporate commitment to social sustainability.
When it comes to establishing, demonstrating and maintaining compliance with lender social safeguards requirements, CCCS will serve you well. We and our Associates are especially adept at integrating international safeguard requirements with national regulatory requirements into a seamless whole, and providing capacity building of project staff so that social impact management can be handled proactively.
The social safeguard compliance services that CCCS can provide include:
- Designing project plans that unify national regulatory requirements and international safeguards requirements in one integrated plan, which drastically reduces the cost of maintaining compliance
- Establishing cost-effective engagement mechanisms for establishing Free, Prior and Informed Consent (FPIC) of project-affected Indigenous Peoples, as required under IFC Performance Standard 7 and an increasing number of other international actors
- Developing and implementing Resettlement Action Plans and Compensation Frameworks in full compliance with IFC Performance Standard 5
- Crafting Public Consultation and Disclosure Plans and Stakeholder Engagement Guidelines, Indigenous Peoples / Community Development Plans, Cultural Heritage Plans, and Migration Management Plans adhering to international best practices, in which challenges are turned into opportunities
- Raising the capacity of company and project staff to deal with issues of social sustainability requirements
CCCS assists the Sakhalin Energy Investment Company (SEIC) in its Indigenous Peoples development and stakeholder engagement planning since 2005, when we were contracted to design the Sakhalin Indigenous Minorities Development Plan (SIMDP). The SIMDP is currently in its third iterations, and is built on integrated planning to comply with IFC’s Performance Standards and Russian Federation legislation. The SIMDP, for which CCCS continues to serve as External Monitor, was designed through extensive public consultation with Sakhalin’s indigenous minorities, and was the first successful private sector application of the principle of Free, Prior and Informed Consent (FPIC). The Sakhalin Model has been hailed by the U.N., the IFC and the World Bank as a model for private sector projects to follow when their operations affect Indigenous Peoples and minorities.
CCCS was engaged by INPEX Masela Ltd. between 2013 and 2015 to develop and implement a Public Consultation and Disclosure Plan (PCDP) to guide the Abadi Project's interactions with potentially affected communities and other stakeholders in Maluku, Indonesia. The PCDP was founded on a comprehensive pairing of IFC Performance Standards requirements for stakeholder engagement and information disclosure with national and local regulations as well as extensive data gathering among potentially-affected communities. CCCS also worked closely with project staff to raise their capacity to implement sustainable and beneficial stakeholder engagement and how to record and follow up on community grievances.
SMI engaged CCCS in 2011 to provide a gap analysis of company social project documents and activities against IFC Indigenous Peoples safeguard requirements and to provide a Cultural Heritage Management Plan to resolve any shortcomings. CCCS conducted a scoping mission both at corporate headquarters and at the project site and held consultations with Indigenous Peoples leaders and community members, local government officials, and company staff. CCCS provided SMI with strategic recommendations and a training workshop that focused on improving company engagement with affected Indigenous Peoples. CCCS also outlined a total scope of work necessary for implementing a robust cultural heritage management program.
Between 2005 and 2010, CCCS assisted the Tangguh LNG Project to integrate Indigenous Peoples issues and the needs of other vulnerable groups in Papua into its social investment planning and strategies. Following CCCS' recommendations, the project brought all of its scattered social investment and impact management programs into an Integrated Social Plan (ISP). The ISP became one basis for project strategy formulation to avoid social conflict between indigenous and other communities, and has been hailed by many in Indonesia as a very successful model.