Requirements of International Investors as a Environmental, Health - - PowerPoint PPT Presentation

The world’s leading sustainability consultancy

Requirements of International Investors as a Environmental, Health & Safety and Social Management Tool

MINEX Central Asia 5th Forum, Astana 02 April 2014

The world’s leading sustainability consultancy

• Introducing ERM

■ Requirements of international investors as an EHSS management tool

• Case Studies
• Contacts

Agenda

2

The world’s leading sustainability consultancy

• Leading consultancy providing environment, health, safety, risk and

social services for over 40 years

• Delivers innovative solutions to enable our clients to maximize

earnings, comply with regulations and improve their corporate reputation and public perception

• Sustainability is at the heart of the services we provide and how we
• perate our business
• 150 offices in 40 countries worldwide
• > 5000 professional staff
• Completed projects in

> 190 countries

Introducing ERM

3

The world’s leading sustainability consultancy

Main International Finance Institutions

World Bank Equator Principles Financial Institutions ■ Equator Principles ■ 8 IFC Performance Standards International Finance Corporation ■ Sustainability Policy ■ 8 Performance Standards Development Banks ■ Environmental and Social Policies Export-Credit Agencies (COFACE, ONDD etc) ■ «Common Approach» OECD National Investment Corporations (OPIC) ■ Policies

The world’s leading sustainability consultancy

Equator Principles: 1. Review & Categorisation 2. Social & Environmental Assessment 3. Applicable Social & Environmental Standards 4. Action Plan & Management System 5. Consultation & Disclosure 6. Grievance Mechanism 7. Independent Review 8. Covenants 9. Independent Monitoring & Reporting 10. EPFI Reporting

What are the Main Lenders’ Requirements?

IFC Performance Standards:

PS1: S&E Assessment & Management System

PS2: Labour & Working Conditions PS3: Pollution Prevention & Abatement PS4: Community Health, Safety & Security

PS5: Land Acquisition & Involuntary Resettlement PS6: Biodiversity Conservation & Sustainable NRM PS7: Indigenous Peoples PS8: Cultural Heritage

• 1. Country EHSS laws

and regulations

• 2. EU E&S standards

IFC EHS Guidelines:

General EHS Guidelines

• Environmental
• Occupational Health & Safety
• Community Health & Safety

Industry Specific Guidelines

• Thermal Power Plants

The world’s leading sustainability consultancy

Lenders Requirements: Scope

RISK MANAGEMENT

Capex & Opex Civil & Criminal Action Growth & Operations Liabilities Reputation / Brand Access to Capital

ENVIRONMENTAL

• contaminated land &

water

• biodiversity loss
• greenhouse gas

emissions / climate change impact

• renewable energy
• waste management
• water scarcity

SOCIAL

• workplace health, safety

and quality access to medicine

• labour standards in the

supply chain

• child labour
• relations with local

communities

GOVERNANCE

• risk management and

control systems

• bribery / corruption
• business ethics
• lobbying
• stakeholder dialogue

disclosure and reporting

The world’s leading sustainability consultancy

Scoping E&S Baseline E&S Impact Assessment E&S Management Plan E&S Management System E&S Monitoring

Lenders E&S Requirements: Approach

Stakeholder Engagement Stakeholder Engagement Stakeholder Engagement Stakeholder Engagement

The world’s leading sustainability consultancy

Project Client Identification of Social Risks Confidential Mining Client Location & Date Southern Russia, 2011 Scope Company was considering an international finance for on

• f its projects and hired ERM to undertake a Lenders Due

Diligence including a detailed social review of the Company’s social performance through visits to the corporate office and interviews with internal and external stakeholders and developed an Engagement program and Program to minimize social risks Key aspects As the result Company has made improvements around: Communication between the corporate and the site levels Leadership commitment Targeted social program Working with land users to register their rights

Case Study: Identification of Social Risks

The world’s leading sustainability consultancy

Project Client ESIA and Resettlement planning Energy Resources Location & Date Mongolia Scope ERM was hired to conduct ESIA for coal mining project in Mongolia to obtain international financing from the international financial institutions. Key Aspects Preparation of ESIA, Action Plan for Mine and Coal Transport Infrastructure Project as well as Public Consultation, Resettlement Action Planning and Monitoring & Evaluation processes followed by

• n-going monitoring and evaluation of environmental and social

performance as the Project is being implemented. Key aspects were: to provide ‘real-time’ inputs into the planning and decision making process for the Project, so that impacts could be avoided or investigated in the design stages. Managing resettlement risks through a combination of early engagement with herders as well as through a strategic approach to public consultation and disclosure.

Case Study: ESIA and Resettlement Planning

The world’s leading sustainability consultancy

Applying the Equator Principles and IFC Performance Standards

PERFECTION MINIMALISM PRINCIPLES PRESCRIPTIONS

Realism Clarity Flexibility

The world’s leading sustainability consultancy

Contacts

Gulmira Khobdabergenova Executive Director | Almaty office | ERM Eurasia

Respubliki ul., 15, office 437-443 Almaty 050013 | Republic of Kazakhstan | gulmira.khobdabergenova@erm.com

Valery Kucherov Partner, Performance & Assurance Services | ERM Eurasia

Tryokhprudny pereulok, 11/13, office 1 Moscow 123001 | Russia | valery.kucherov@erm.com

Elena Amirkhanova Partner, Global Lead Sustainable Finance Services | ERM UK

2nd Floor | Exchequer Court 33 St Mary Axe | London EC3A 8AA | UK | elena.amirkhanova@erm.com

11