John Poulsen is a CSR and natural resources management specialist, with extensive experience from South and Southeast Asia. His work transcends numerous extractive sectors, including mining, forestry/plantations, and oil/gas.

1. SASIN, Bangkok, 17 January 2013
John Grynderup Poulsen

2.  Extractive sectors are significant drivers of the
economic development of many countries
 Dilemma of massive demand and diminishing
resource availability
 Increasing overlaps between resource exploitation
and interests of the broader public (includng local
communities)
 Often largescale and longterm operations
penetrating and affecting many levels of society
• Immense opportunity for these sectors to contribute to a
sustainable foundation for the country's future

3.  Forwho? – whose interests weigh
highest?
 Hierarchical set of priorities
 Gradual and continuous improvement
• Long-term sustainability reached through series
of short-term improvements/benefits

4.  Spatial
• Local (project site), Regional, National,
International/Global
• Contribution/effect of the project
 Temporal
• Life cycle approach
 Trade
offs among these
 Compromises

5.  Partly depends on the spatial planning/design of
the operations, underpinned by three overriding
objectives:
• Maximizing efficiency of operations, hence profitability
• Minimizing adverse and offsite social, ecological and
environmental impacts and influences on local
communities
 Easier to monitor and manage adverse environmental and
ecological impacts within a relatively small area
 More effective protection and conservation of forests and
biodiversity, including the ecosystem services upon which
communities may depend
• Maximizing social benefits to local communities and the
environment upon which local communities depend

6.  Human rights
 Indigenous people
 Land acquisition
 Environment - land and water
 Social – benefits/costs to local
communities, OHS, …
 Corruption

7.  Lack of clarity, ambiguity
 New and evolving laws and regulations,
particularly aligning these with the
national development priorities

8.  Establishing projects always requires
substantial private/domestic/foreign
(direct) investments
 Does sustainability affect the investment
climate?

9. The company/corporation level
Broader stakeholder values
The country/national level
Shareholder Values SE
‘External’ factors:
national level
Investment, FDI conditions,
political stability,
Market Requirements reputation (corruption,
transparency, etc.)

10. Shareholder Values Broader stakeholder values
SE Index of sust.
Perceptions, PR, …
CSR, Sustainability

11. Supply & Demand
Stock Price Movements Economic Data
Company Announcements
Investor Sentiment Analysts earnings estimates

12.  Equator Principles
 IMF Performance Standards
 Business systems
 Certification, ISOs, …

13.  Often perceived as a risk, rather than an
opportunity
 Tightly managed to ensure clear
corporate messages
 Communication and stakeholder
engagement are inextricably linked
 Corporate Messages
• Tendency to avoid or hide sensitive issues,
rather than address such issues head on
• Multiple target audiences

14.  Strategic corporate messages and information
effectively conveyed to intended target
audiences/stakeholders
 Prioritizing information sharing and
communication
 Appropriate means of communication for each
target audience/stakeholder
 Preparedness for entering negotiations and
discussions with stakeholders
 Means to reach stakeholders, and for
stakeholders to reach the company
 Improving internal flows of communication

15.  Create a conducive atmosphere
 Ensure top level endorsement and support
 Work at multiple levels, both vertical and
horizontal
 Create room for asking provocative
questions, and embracing disagreement
• Challenge and question conventional wisdom and
biases
 Usually no lack of technical knowledge
 Explain risks to business and enterprise
 Targeted, personal discussions with key
individuals

16.  Incorporating comprehensive environmental,
social and governance perspectives
• May add additional value to the production, through
reputation and any market-driven demands
• Will reduce risks for company reputation, through
adverse impact on communities, environment, etc.
 CSR, including community development projects,
as a means to reduce exposure to risk
 CSR approaches as a means to respond to and
prepare for risks, i.e., build resilience
 CSR, including community development projects,
as a means to offset any unavoidable negative
impacts of operations

17. Comm. Dev.
Internal Risks
External

18.  As a means to buffer against local
instability/ies
 Local instabilities can pose major
corporate risks
• Operational risks
• Investments
• Disturbances

19.  Understand scale-dependent impacts of
operations
• Cost and benefit analyses at multiple scales
 System dynamics as a means to build
common understanding/vision, both
within the organisation, and with external
stakeholders

20.  Corporate messages on sustainability
 Strategy and policies for sustainability and CSR
 Align these with performance indicators of GRI
and/or other global initiatives
 Internal awareness throughout the organization,
vertical and horizontal, e.g., finance, HR,
environment, OHS, ...
 Code of conduct
 Mainstreaming CSR business systems into the
entire structure including through bilateral
discussion with system managers (linkages)