ICMM guidance on measuring community support

1. ICMM guidance on measuring community support Audience C: Training for staff in non-Community Relations roles, but who have some interaction with external stakeholders

2. Aims and objectives of this session

3. Exercise: Discuss What are the ways in which you interact with local community members? When interacting, how do you gauge their levels of support for the operation? How do poor company-community relations affect you and your role on the project/operation?

4. What is community support and why is it important to business?

5. What is community support? “Social licence to operate” The level of acceptance or approval granted to an operation or project by the local community and other stakeholders It is additional to formal licences, planning permissions and permits from government agencies. Community support is not the support that a company gives to the community. In essence, it is a community’s willingness to have a mining operation conduct its business within their community, neighbourhood, local area and wider district.

6. What do we mean by “community”? A residential or physical settlement located in a shared geographic area – which might include people with shared characteristics and interests in common, although this isn’t necessarily the case. Communities are not static, homogenous units. They are heterogenous, forever changing.

7. Top 10 business risks facing mining Ernst & Young: http://www.ey.com/gl/en/industries/mining---metals/business-risks-in-mining-and-metals

8. The business case for community support Community support is regarded widely as important, but there is generally a lack of clarity on how to achieve it or how to measure it.

9. Understanding and measuring community support The ICMM framework

10. Introducing the toolkit This toolkit helps mining and metals companies to:  Understand the factors that influence community support and measure the level of community support Visualise the levels of community support amongst stakeholders Organise how they approach community relations and identify ways to change existing strategies and approaches.

11. Why is understanding levels of community support important? Understanding the context is an essential element of planning. It helps ensure informed and appropriate management responses and creates foundation for all further action. The ICMM toolkit aligns with the P-D-C-A (and engage) cycle, at the plan, check and engage steps. By understanding levels of community support, you can plan for improved relationship building, and monitor/check changes over time. Engagement with external and internal stakeholders is key to the assessment process. www.icmm.com

12. The ICMM framework for understanding community support (1 of 2) Community support is influenced by a company’s activities and behaviour towards its host community, and by the context in which it operates.

13. The ICMM framework for understanding community support (2 of 2) These indicators must be understood in the context within which they exist: Socio-political and governance context Reputational context Equity and social capital considerations.

14. An overview of the toolkit and what it offers

15. Summary of the overall process Measure level of community support Assess and respond www.icmm.com

16. Toolkit overview continued: Measure What is the current level of community support?

17. Understanding how the assessment of community support works Select external stakeholders Gather data by asking a series of questions (see Annex A) • Select those questions that are most relevant to your operation. • Questions aimed at understanding stakeholders’ opinions of company performance with regard to the four indicators and their perspectives on the three contextual factors. Responses to each question are assigned a number ranging from -2 to +2. The assessment questions can be asked through online platforms, individual face-to-face interviews and/or focus groups.

18. Annex A: Example indicator questions on legitimacy NOTE: questions in grey = primary questions. Questions in white = supplementary questions, allowing for more detailed assessment.

19. Annex A: Example contextual questions on reputational context All answers and associated scores must be recorded and tallied up per indicator or contextual factor.

20. Manage and process the dataFocussing on a key element of the process The scores for all questions asked on one indicator or one contextual factor are averaged to give a single score for that metric. You will therefore have a composite score for each indicator and each contextual factor, for each single stakeholder interviewed. These composite scores are then translated into the overarching continuums provided in Annex B. See example below for legitimacy.

21. Visualising the results: Example 1 Community support of three stakeholder groups

22. Visualising the results: Example 2 Monitoring community support over time

23. Toolkit overview continued: Assess and respond Why is the community support as it is and how can it be improved?

24. Understanding post-assessment results Where assessment results are positive: Existing social performance approaches can be used to maintain those relationships. ✓ ✗ • The assess and respond part of the assessment process benefits from involvement of non-community relations personnel: • For insight into company perceptions of levels of community support, • Identifying causes behind levels of community support. Where community support assessment results are negative: Changes may need to be made to existing social performance approaches, and/or structural or organizational issues addressed.

25. Input from non-community relations personnelDetermine perception disparities The goal is to determine if company and stakeholder perceptions differ regarding levels of community support. Understanding what the company thinks stakeholders feel about the quality of community–company relationships Where do differences in perception lie? Where are the blind spots and misconceptions? What might differences in perception tell us about the state of the relationship? Annex A: Questions to community focus on community perceptions of the site and the external context Annex E: Questions to company focus on company understanding of how external stakeholders perceive the site and the external context

26. Input from non-community relations personnelIdentify reasons and propose solutions Most operational issues have implications for levels of community support. Non-CR involvement in analysis of results and proposed recommendations is thus essential.

27. Exercise: Conduct your own internal assessment of community support An exercise in exploring internal understanding of community support (Annex E)

28. In conclusion: What the toolkit and assessment process gives you Quantification of level of community support Benchmark to measure over time Insight into alignment/misalignment of company perceptions of support vs actual levels of support Insight into what company activities should be maintained, and what needs to be changed internally Improved social risk management due to better understanding of level of community support across key indicators and contextual factors Site-specific insights, allowing for site-specific solutions, and targeted use of resources All of which should lead to improved company-community relations!

29. International Council on Mining and Metals (ICMM)35/38 Portman SquareLondon W1H 6LRUnited KingdomSwitchboard: +44 (0) 20 7467 5070Main Fax: +44 (0) 20 7467 5071E-mail: info@icmm.comwww.icmm.com