Building a review mechanism for the Canadian extractive

Building a review mechanism for the Canadian extractive sector overseas: An update Marketa D. Evans, Ph. D Extractive Sector CSR Counsellor “Risk Mitigation and CSR Seminar” Toronto, October 27, 2010

Discussion Points 1. Who we are 2. What we’ve heard and learned 3. Where we are going 2

The Office of the Extractive Sector Corporate Social Responsibility Counsellor § Government of Canada’s CSR strategy for the Canadian extractive sector overseas applies to any Canadian mining, oil or gas company in its operations outside Canada § Is grounded in three new performance Standards endorsed by the Government of Canada in its CSR Strategy (March 2009): • IFC Performance Standards • Voluntary Principles on Security & Human Rights • The Global Reporting Initiative 3

The Office § Our role is to help advance CSR performance of Canadian mining, oil and gas companies and deliver tangible results through the enhanced use of CSR performance standards. 4

The Office § Two part mandate: “review” and “advisory” § Constructing the review mechanism: a participatory process is key; understanding “what creates value” What we did: extensive outreach, engagement, listening Proactive formal and informal consultations across all stakeholder groups 5

What we heard § Over 300 organizations and individuals participated in our formal consultations June-August 2010; hundreds more informal conversations § Three legal experts workshops § Balanced input • Canada: Montreal, Toronto, Ottawa, Vancouver, Calgary • (25+% civil society; 33% industry; balance government and service) • Overseas: Mexico, Mali, Senegal • (38% civil society; 45% industry; balance government and service) 6

What we heard § Very strong interest in Office § Participatory approach resonates § Conflict prevention § Value proposition 7

Adding Value to the CSR landscape § Many other judicial and non-judicial mechanisms exist § The greatest support, particularly overseas, was for a process that could foster constructive dialogue and improve the situation on the ground. § The more “quasi-judicial” we became, the more rigourous the rules of evidence required: much higher barriers to entry 8

The Review Mechanism § “Honest Broker” problem solving mechanism § Key Guiding Principles established as a result of the consultations Accessibility, Transparency, Independence, Effectiveness, Predictability, Responsiveness. Dispute resolution process launched October 20, 2010 9

Office of the Extractive Sector CSR Counsellor Review Process Step 1: Request for Review Within 5 days Step 2: Acknowledgement Maximum of 40 days Step 3: Eligibility Assessment Ineligible Eligible Final report Maximum of 120 days Step 4: Informal mediation Trust Building Letter of intent Maximum of 120 days Step 5: Informal mediation Structured dialogue Optional: Access to formal mediation Final report 10

Adding value Advisory Mandate: Standards are important but are not the silver bullet. Good CSR outcomes also require: § Good implementation: “How, how? ” – best practices and research and knowledge management § Recognition of importance of cross sector participation § Behavioural change • So industry is a critical partner • What are the critical drivers of behavioural change? 11

What next? § Advisory Mandate: • Launch of learning partnership with the Institute for the Study of CSR, Ryerson University • Advisory Panel • Raising awareness of Standards and best practices • Annual Report to Parliament (Spring 2011) § Contributing to informed public discussion of important issues related to CSR and the extractive sectors § A neutral, balanced perspective with the objective of improving CSR performance 12

Want to know more? Check out our website www. international. gc. ca/csrcounsellor Find documents on the review process plus: Backgrounder on “Building a review mechanism for the Canadian international extractive sector” (June 2010) Nine different workshop reports Consultations Summary Report (September 2010) 13