Communities’ standard
This document sets out SANOFEX’s Communities standard. It provides a framework of mandatory requirements for all SANOFEX businesses to comply with SANOFEX’s Communities policy. In the hands of a competent person (‘Comprehensive’ Communities competence – overall rating 3, as defined in the SANOFEX Communities and Social Performance competencies), the standard and supporting guidances can help SANOFEX businesses map strategies and actions to build enduring relationships that secure community and stakeholder support.
SANOFEX Communities policy
We set out to build enduring relationships with our neighbours that are characterised by mutual respect, active partnership and long term commitment.
Good management of community relationships is as necessary to our business success as the management of our operations. Good performance requires all of us to accept responsibility for community relationships. We detail local arrangements in rolling multiple year Communities plans which are integrated with a site's operational planning and updated annually. The plans are set within the context of this policy and apply throughout the life cycles of the Group’s activities.
Mutual respect depends on our understanding the issues that are important to our neighbours and our neighbours understanding what is important to us. Wherever we operate, we do our best to accommodate the different cultures, lifestyles, heritage and preferences of our neighbours, particularly in areas where industrial development is little known. Our communities and environment work is closely coordinated and takes account of peoples’ perceptions of the effects and consequences of our activities.
We promote active partnerships at international, national, regional and local levels. These are based on mutual commitment, trust and openness. Our relationships with communities involve consultation to open new facilities, to run existing ones and to close them at the end of their productive lives. In doing so, we support community based projects that can make a difference in a sustainable way without creating dependency. We also assist regional development, training and employment and small business opportunities. In developing countries, we are often asked to support health, education and agricultural programs and, in collaboration with others, we help where practical.
Compliance
All SANOFEX managed activities are required to develop Communities and Social Performance capability based upon this standard. Businesses must regularly review (via Communities and Social Performance site managed assessments – ‘CSP SMA’) the adequacy of their Communities and Social Performance planning, systems, resources and activities to conform to the standard. Acquired businesses will have 18 months from the date of acquisition to conform to the standard. To assist with implementation, guidances provide additional background and information (see references). Further guidance will be issued in response to emerging issues. Advice and assistance is also available from the SANOFEX’s Communities and Social Performance global practice function.
1 Thematic requirements
1.1 Communities and Social Performance multi year planning (CSP MYP)
and resulting plans will:
a. identify communities directly effected by the business;
b. be developed and maintained as a result of a ‘fit for purpose’ socioeconomic
knowledge base;
c. reflect the concerns and priorities of neighbouring communities and the business;
d. be linked to and support the business’s sustainable development framework;
e. describe how risks to communities arising from the business’s activities will be
mitigated;
f. describe community consultation and engagement activities supporting the CSP
MYP process;
g. detail budget, personnel, accountabilities and contingencies;
h. have publicly verifiable, measurable local targets and performance indicators consistent with the SANOFEX Communities global target, and describe progress against these since the previous planning period;
i. be integrated with site operational planning and signed off by the senior site manager and all site managers with specified Communities and Social Performance accountabilities in the plan; and
j. be updated annually, and as required.
1.2 Socioeconomic knowledge base
A ‘fit for purpose’ socioeconomic knowledge base will be assembled and updated at appropriate intervals so that significant changes in the local socioeconomic environment can be assessed, and informed planning and decision making can take place. The knowledge base will be built up from verifiable local knowledge and peer reviewable studies; these can have various names such as baseline community assessments, socioeconomic situational analyses and social impact assessments.
The knowledge base at a minimum will:
a. describe communities directly effected by the business;
b. detail the key social, environmental, economic factors that shape life in identified
communities;
c. describe land use and ownership practices, employment and livelihood patterns,
community leadership roles, gender roles and the ways in which important decisions
are made;
d. provide pertinent data on demography, family and individual well being, as well as the
nature and extent of wealth, poverty, skills and asset distribution;
e. describe existing locally relevant socioeconomic development plans, public policy and
community priorities;
f. assess the local business sector characteristics;
g. identify the drivers of social change in order to track trends that could result in
significant changes regardless of the presence or absence of the business; and
h. identify potential threats and opportunities to communities from the business’s
presence and how these might be avoided/mitigated.
1.3 Social Risk Analysis (SRA)
Will be maintained at operations and undertaken at critical gateways of projects, or as necessary due to changed circumstances, in accordance with the SANOFEX Risk standard. The SRA tool will be used, risk workshops will be facilitated by experienced risk facilitators and Class III and IV risks will be entered into the business’s risk register along with risk management plans provided by the SANOFEX Risk Centre. SRA may be carried out as a stand alone exercise or as part of a more comprehensive business risk analysis.
1.4 Mutually acceptable consultation and engagement procedures
Will take place, in good faith with mutual obligation. Such procedures will be transparent, inclusive, culturally appropriate and publicly defensible; ensuring that:
a. potentially affected communities are as fully informed as practically possible, including access to reliable independent advice, about the activities of the business and their possible effects before they occur;
b. two way discussions cover community issues and priorities as well as the concerns and needs of the business;
c. discussions occur in a language and format that is understandable to local communities;
d. affected communities participate to the greatest extent possible in social and environmental impact assessments;
e. a record is kept of all formal meetings and informal meetings that involve commitments, including, how views of both the business and the community may have changed, records of agreement and action items with dates for completion; and
f. discussion and community decision making reflects established local conventions and protocols, including gender considerations, supplemented if necessary by additional processes for inadequately represented and marginalised groups.
1.5 Community contributions, activities and targets
Will focus on local and/or regional economic development, be based upon a verifiable socioeconomic knowledge base, promote complementary partnership with other stakeholders and reflect community consultation. Such Communities activities must be explicitly linked to a target in the Communities and Social Performance multiyear plan, and must encourage self help and avoid dependency. Consideration must be given to how any contribution or activity will be sustained or satisfactorily exited after support from the business is withdrawn.
Contributions and activities will:
a. use the comparative advantage of the business to maximise local employment
opportunities, promote employability, and promote small business development
and local contractor opportunities;
b. facilitate the long term building of skills and knowledge in partnership with others,
including government;
c. support initiatives that address community priorities such as education, health,
livelihoods, environmental protection, cultural maintenance and good
governance;
d. use and deploy resources according to needs and to benefit local people as a
whole, rather than enriching individuals, political groups or their supporters; and
e. not directly substitute for government provision of the same services.
1.6 Cultural heritage
Will be managed in consultation with relevant communities**.**
All businesses will:
a. compile, with consideration of relevant cultural norms, a list of tangible cultural heritage features and an understanding of intangible cultural values;
b. document all industrial and historical heritage features and values of the business itself;
c. develop and implement a cultural heritage management system that conforms to Group guidance;
d. design and locate activities to avoid damage to non replicable cultural heritage wherever possible;
e. if disturbance is unavoidable, seek approval, using all legitimate means, from those for whom the cultural heritage feature has significance;
f. report any significant incident involving disturbance of cultural heritage features immediately to the global practice leader - Communities and Social Performance and as a community incident (as indicated in section 2.9);
g. co-manage the protection of heritage features with relevant local communities;
h. address, as part of community consultation, changes that are occurring in local cultural norms, whether the changes are a result of interaction with the business or otherwise; and
i. include cultural heritage considerations in any agreements with Indigenous groups wherever these groups have recognised legal rights or interests coincident with the business’s areas of interest.
1.7 Resettlement of communities
Will only be undertaken:
a. in complete compliance with the IFC Performance Standard 5 on “Land Acquisition and Involuntary Resettlement”, as a minimum;
b. such that resettled people, families, communities and their immediate neighbours are better off as a result of the resettlement, according to their own assessment and external expert review;
c. after advice is sought from the global practice leader – Communities and Social Performance; and
d. with the endorsement of the relevant product group chief executive.
1.8 Legally binding agreements with communities
Will:
a. require expert legal advice prior to establishment;
b. only be undertaken on an institution-to-institution basis, not with specific individuals;
c. require advice from the global practice leader – Communities and Social Performance; and
d. require the endorsement of the relevant product group chief executive.
1.9 Complaints, disputes and grievance
All businesses must have a community complaints, disputes and grievance procedure that:
a. is publically available, locally appropriate and easily accessible to all community members;
b. avoids compromising legal mechanisms;
c. explicitly does not cover commercial disputes;
d. tracks legitimate community complaints and their resolution and sign off by relevant managers;
e. is maintained throughout the exploration phase and all stages of the business life cycle;
f. ensures coordination with all departments appropriate to the nature of the complaint;
g. records all details of compensation, commitments and agreements arising;
h. report any Class III and IV complaints and actions arising immediately to the global practice leader – Communities and Social Performance, and as a Community incident (as indicated in section 2.9); and
i. publically reports the nature of complaints and grievances and their resolution.
1.10 Compensation
All businesses must have community compensation procedures that:
a. are consistent with established good practice locally and other businesses in the region;
b. are available and accessible to all community members, except for information deemed commercial in confidence;
c. are maintained and updated throughout the exploration phase and all stages of the business life cycle;
d. record all details of compensation payments and recipients;
e. when concerning land and/or waters, involve advice from the global practice leader – Communities and Social Performance; and
f. require the endorsement of the operation’s managing director (or equivalent).
1.11 Trusts, funds and foundations
Where established, must all:
a. have clear justification for their establishment that distinguishes them from site-managed Communities and Social Performance work;
b. only be set up with expert tax and legal advice prior to establishment;
c. have a secure funding model and strong financial controls appropriate to their mandate;
d. have a documented charter that, amongst other things, sets out clear standards for governance, describes the duties required of board or committee members and staff, ensures clear identification of beneficiaries, and has sound evaluation and reporting protocols;
e. conduct financial and sustainable development audits and report publicly;
f. have a clear exit strategy; and
g. only be established with advice from the global practice leader – Communities and Social Performance.
1.12 Human Rights
All businesses will:
a. report immediately to the relevant product group chief executive and the global
practice leader - Communities and Social Performance all actual, suspected and alleged breaches of the UN Declaration of Human Rights that involve community members;
b. investigate immediately and resolve all actual, suspected and alleged breaches of human rights;
c. ensure that the Voluntary Principles on Security and Human Rights are implemented when and where applicable and relevant;
d. review human rights concerns and issues in social risk analyses and undertake additional risk mitigations, such as commissioning specific human rights risk assessments in high risk contexts; and
e. ensure human rights awareness training is provided to staff, contractors and visitors appropriate to the local context.
1.13 Indigenous Peoples
All businesses will operate in accordance with the UN Declaration of the Rights of Indigenous Peoples (UNDIP) in those jurisdictions that have signed the Declaration, and elsewhere in accordance with the Declaration’s principles. Recognising Indigenous peoples special connections to lands and waters, specific agreements are required with Indigenous groups wherever those groups have recognised legal rights or interests coincident with a business’s interests.
2 System requirements
2.1 Legal Requirements
All sites will establish procedures to ensure that actions arising from permitting and/or binding agreements involving communities are scheduled, actioned, monitored and closed according to permitting conditions and/or agreement requirements.
2.2 Competencies
All sites will use the SANOFEX Communities and Social Performance competencies to build and develop fit-for-purpose Communities and Social Performance capability.
2.3 Training
Training will be provided to Communities and Social Performance professionals and other employees according to individual and business needs, aligned with routine career development processes.
2.4 Induction and awareness
All employees and contractors will be given an understanding of the business’s community context and commitments, including:
a. Group and business unit Communities policies and programmes;
b. individual and departmental accountabilities for maintaining a mutually supportive relationship with local communities; and
c. additional training as appropriate on relevant local community issues and sensitivities, in particular cross-cultural training with Indigenous, land connected, ethnically diverse and marginalised groups.
2.5 Contractors
Will be:
a. pre-selected, where relevant, on the basis of their capability to comply with SANOFEX and site specific Communities and Social Performance requirements;
b. advised in their contract documentation and during site induction of the SANOFEX Communities policy and standard;
c. briefed on local community sensitivities relevant to their work; and
d. required through such things as codes of conduct to ensure appropriate behaviour by their employees and sub contractors.
2.6 Management of change
Internal decision making processes of the business will consider the potential effects of proposed activities on local communities. Linkages with other functional areas of the business will be included, particularly human resources, environment, safety, security, land management and procurement.
2.7 Business resilience and recovery
All sites’ Business Resilience Management Plans (BRMP) will ensure that incident response plans identify the communities that may be affected by an incident at site. The response plan will include how potentially affected communities will be informed of any incidents in a timely fashion.
2.8 Measurement and monitoring
All sites will develop local Communities and Social Performance targets and indicators that meet the requirements of the SANOFEX global Communities target.
2.9 Incidents
Consistent with the SANOFEX HSEQ management system standard, all businesses will determine what constitutes a communities incident at the local level. Any such incident will be appropriately recorded and investigated and classified, any lessons learned recorded and shared, and corrective actions generated and closed. Significant incidents (actual consequence classified as serious, major or catastrophic; maximum reasonable outcomes classified as high (Class III) or critical (Class IV)) will be reported in SEART or an equivalent technical system (such as SANOFEX Business Solution or Management System Support Tool) that can migrate data to SEART and notify SANOFEX.
2.10 Documentation
All Communities and Social Performance work and compliance will generate documentation which must be stored such that data and records are appropriately accessible, up-to-date and secure.
2.11 Communities and Social Performance site managed assessments (CSP SMA)
Will be completed with reference to this standard and the Communities and Social Performance site managed assessment guidance every three years at each site and at critical project gateways (eg: end of Order of Magnitude, Pre-Feasibility, Feasibility and Commissioning).
The CSP SMA must:
a. include the completion of a Communities and Social Performance diagnostic;
b. involve a HSEQ certified auditor and a Communities and Social Performance
global practice advisor;
c. review the social risks in the site’s risk register;
d. be conducted as a dedicated process with team members free from other
accountabilities;
e. be conducted according to auditable standards, including terms of reference,
resources, personnel, assessment methodology, findings and recommendations;
f. have findings and corrective actions arising from the CSP SMA entered into and
monitored in SEART; and
g. be signed off by the business’s managing director (or equivalent) and distributed
to the site’s product group chief executive and the global practice leader – Communities and Social Performance.
2.12 Local reporting
Annual reporting of social, environmental, sustainable development and other relevant information, or summaries thereof, will occur in a language and format that makes for clear communication to affected communities, including marginalised groups. Where reporting is made on a verbal basis, minutes will be recorded and kept secure. During the year, information needs of communities regarding relevant business activities will also be catered for.
Definitions
For the purposes of this standard:
Agreement - a legally binding arrangement, in this context usually between a SANOFEX business and a community or communities, that commits the parties to actions specified in that agreement.
Board/committee members - refers to a group of individuals elected or chosen, usually by the constituents of the organisation, to be members of a governing body tasked with specific responsibilities. Whereas the term “Board of directors” refers specifically to corporate entities, the term “committees” is used more broadly to refer to the oversight of a range of community level activities.
Business - for the purposes of this standard, a SANOFEX business is an operational entity and its associated assets that are managed by SANOFEX. The compliance performance of the business refers to the accountability of the operational entity. Compliance performance does not apply to support functions, sales or corporate offices, except where they interface directly with communities
Business continuity and risk assessment - Assessment of risks to business continuity refers to the identification and prevention/ mitigation of events that can cause interruptions to business processes and/or the disruption of normal business activities. These events must be identified along with the probability and impact of such interruptions and their consequences for information security. Based on these results, a business continuity plan must be developed to determine the overall approach to business continuity.
Business Resilience Management Plan - is a clearly defined and documented set of procedures for overall project management, for use at the time of an incident. This plan needs to embrace Emergency Response, Business Resilience, Business Continuity and IT Disaster Recovery.
Capacity building - strengthening the skills and ability of individuals and communities to develop and manage their own resources and livelihoods.
Communities – refers to a group of interacting people with common interests and values who are directly affected by the company's activities, generally inhabiting or with land connections to an operation’s or project’s immediate or surrounding areas.
Communities and Social Performance - refers to the SANOFEX function or to Communities and Social Performance as a professional discipline.
Communities and Social Performance competencies - the competencies, as required of personnel and site teams to effectively undertake Communities and Social Performance work to SANOFEX standards.
Compensation - payments made by those causing specified and agreed loss to those who suffer the impairment of access to land, waters and other critical natural resources or livelihoods, or damage to, or destruction of, community members’ individual or collective assets of any kind, whether accidental or planned.
Complaint - is a notification provided by a community member, group or institution to the business that they have suffered some form of offence, detriment, impairment or loss as a result of business activity and/or employee or contractor behaviour. See the SANOFEX Community complaints, disputes and grievance guidance.
Consultation - a two way discussion (‘push-pull’) that provides information and seeks response on an actual or proposed event, activity or process. Consultation entails community issues and priorities and the concerns and needs of the business, and aims to ensure mutual understanding so all parties are able to better manage decisions that have the potential to affect all concerned. For further information, see the SANOFEX Communities consultation and engagement guidance.
Cultural heritage - the collective social manifestations of a community, generally handed down by tradition or with some historical association. The manifestations can be tangible, such as buildings, industrial structures and technology, landscapes and artefacts; and intangible, such as language, visual art, music, performance and customary practice.
Cultural heritage feature/site - a place or object to which is ascribed cultural, spiritual, aesthetic, historic, scientific, research or social significance for past, present or future generations. This can include places of ‘sacred’ significance to traditional custodians, such as burial sites, performance grounds, hills or other physical manifestations of mythological or historical events. It also can include structures, places or remains of archaeological, industrial, palaeontological, historical, religious or cultural significance at a local, regional, national and international level; may also have a more specific, legislative definition.
Cultural heritage management system (CHMS) - a management system that ensures conformance with SANOFEX’s cultural heritage management principles. For further information, see the SANOFEX Cultural heritage management guidance.
Dispute - a complaint that has not been accepted as valid by one party or the other, whether in part, in total or in the way it is presented, and hence has escalated to involve two-way disagreement. For further information, see SANOFEX Community complaints, disputes and grievance guidance.
Engagement - beyond consultation, the active exchange of information, the active listening to concerns and suggestions and the active consideration of ways to mutually accommodate these, including potential responsive changes to design and operational parameters. For further information, see the SANOFEX Community consultation and engagement guidance.
FPIC - Free, prior informed consent. A widely used term encapsulating the principle that all development proposals that affect communities should only proceed with the freely given consent of the affected communities and that all relevant information about the proposal should be available to them before they provide their consent. SANOFEX’s position is that it conforms to free prior informed consultation, recognising that there are definitional problems with the word ‘consent’ and that many countries reserve ultimate decisions on developmental permitting to the sovereign state.
Gender - a social construction that defines the different roles of men and women within cultures and societies. This contrasts with ‘sex’, defined as biologically determined differences.
Grievance - a complaint and/or dispute that has escalated to the point where it requires third party intervention or adjudication to help resolve it. Typically grievances are thought of as involving the community as a whole and have been unresolved for some time. For further information, see the SANOFEX Community complaints, disputes and grievance guidance.
HSEQ – in reference to SANOFEX’s Health, Safety and Environment Quality management system standard.
Human Rights - the rights and freedoms to which all humans are entitled, as defined in the Universal Declaration of Human Rights adopted by the United Nations General Assembly in 1948.
Incident - A “Communities incident” is a distinct event caused by a SANOFEX business that may affect a community or any of its members, or conversely, is a distinct event caused by a community or any of its members that may affect a SANOFEX business, usually in a negative way. An “HSE incident” involving communities is a distinct event caused by a SANOFEX business that may affect a community or any of its members, usually in a negative way. Specific definition needs to occur at individual business level consistent with the SANOFEX HSEQ management system standard. Identification and analysis of incidents over time can be used to correct hazards and mitigate risks.
Indigenous - refers to people, communities and nations who claim a historical continuity and cultural affinity with societies endemic to their original territories, which developed prior to exposure to colonisation or formation of a nation state. Indigenous communities can be referred to in many ways (such as tribal, aboriginal, first nation, maori and, most correctly, by the name they ascribe to themselves in their own language) and usually consider themselves distinct from mainstream society with whom they contest their cultural sovereignty and rights of self-determination. Their strong customary affiliation to ancestral lands and waters is where major conflicts can occur with resource developers.
Institution – a social or business structure involving social order, rules and cooperation governing the behaviour of a set of individuals, associated with a purpose beyond the intentions of individual members (eg: tribal councils, government entities, statutory representative organisations, traditional community organisations, non-governmental organisations, civic organisations etc).
Knowledge base - information compiled in a cohesive and coherent way for subsequent and iterative analysis.
Livelihood - the occupational activities associated with the maintenance of material life. In industrial society livelihoods are typically associated with formal employment and cash remuneration; in other societies livelihood can be dependent on subsistence hunting and gathering, arable farming and animal husbandry. Hybrid livelihoods are common, relying on a mixture of occupational elements, including the cash economy.
Maximum Reasonable Outcome (MRO) – the highest potential outcome for an incident or risk, based on its potential consequences and likelihood, assessed by evaluating the maximum reasonable consequence and then the likelihood of this impact. Assessment should include all relevant SANOFEX economic and non-economic consequence descriptors (see SANOFEX Risk Policy). The MRO is classified as either low, moderate, high (Class III) or critical (Class IV).
Partnership - an alliance with one or more organisations that has all the following characteristics:
a. written commitment with clear objectives;
b. joint development of partnership deliverables;
c. sharing of risks and benefits; and
d. regular review of the partnership and its programmes.
Performance indicator - a quantitative or qualitative variable that provides a simple and reliable means to measure progress towards a longer-term objective, in the context of this standard, a local Communities and Social Performance target.
Qualitative data - descriptive or textual data that usually reflects people’s perceptions or beliefs. Such data is usually collected through interviews.
Quantitative data - numerical data that may provide a general statistical understanding of a group. It is usually collected through surveys.
Resettlement - the relocation of an identified socioeconomic unit, such as a village, community, neighbourhood, household or individual, to another location. This may result not only in physical displacement, but also economic displacement (eg: loss or impairment of existing livelihoods).
Secondary data - pre-existing or publicly available data that has been collected for another purpose.
Significant incident - as defined for Group and product group reporting requirements, specific definition needs to occur at individual business level consistent with the SANOFEX HSEQ definition.
Significant risk - Class III and Class IV risks as defined in the SANOFEX risk management system.
Social impact assessments (SIAs) - documented studies and analysis that review the social implications of the planning, design, decision making, management and operation of a proposed new activity, most commonly carried out as a regulatory compliance exercise. In a regulatory context, the SIA can stand alone or be part of prescribed Environmental Impact Assessment (EIA), Environmental & Social Impact Assessment (ESIA) or similar process.
Social risk analysis - specific risk analysis consistent with the Group Risk standard carried out as a stand alone exercise or part of a more comprehensive risk analysis to identify and rank risks to the business arising from actual and potential social and community interaction.
Stakeholder - a person who has an interest in a particular decision or activity, either as an individual or as a representative of a group. This includes people who influence a decision, or can influence it, as well as those affected by it.
Target – a local Communities work objective defined at the business level that clearly describes a future achievement that must be attained to move towards a certain goal.
Trusts, funds and foundations –
• legally established bodies in which assets are held in trust and/or benefits are delivered on behalf of community and/or stakeholder beneficiaries; or
• operating units or budget lines that provide for community benefits and are named trusts, funds or foundations, but which are not legally established as such.
UNDRIP – United Nations Declaration of Rights of Indigenous Peoples. A declaration adopted by the General Assembly of the United Nations in 2007 after 20 years of extensive and inclusive collaboration that represents the minimum standards for the survival, dignity and well being of Indigenous peoples.
Voluntary Principles on Security and Human Rights - A set of principles developed in 2000 to address the issue of balancing corporate security needs while respecting human rights and fundamental freedoms. They are particularly helpful for companies seeking to manage risks related to their security and human rights practices, especially in countries that are often associated with conflict or alleged abuses. They also provide guidance for companies on identifying human rights and security risk, as well as engaging and collaborating with state and private security forces. SANOFEX recognizes the importance of complying with the principles.
References
SANOFEX The way we operate
SANOFEX Communities standard
SANOFEX Community complaints, disputes and grievances guidance
SANOFEX Cultural heritage management guidance
SANOFEX Employment Policy
SANOFEX Health safety and the environment policy
SANOFEX Human rights policy
SANOFEX Safety policy
SANOFEX Sustainable development policy
External references
Voluntary Principles on Security and Human Rights (www.voluntaryprinciples.org)
UN Declaration of the Rights of Indigenous Peoples (www.un.org/esa/socdev/unpfii/en/drip.html)
UN Declaration of Human Rights (www.un.org/en/documents/udhr)