Building a review mechanism for the Canadian extractive sector overseas: An update

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

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

3. 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

4. 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.

5. 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

6. 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)

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

8. 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

9. 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

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

11. Adding value Advisory Mandate: Standards are important but are not the silver bullet. Good CSR outcomes also require: • Good implementation: “How, 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?

12. 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

13. Want to know more? Check out our website www.international.gc.ca/csr-counsellor 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)