Building a review mechanism for the

Canadian extractive sector overseas:

An update

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

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Discussion Points

1. Who we are

2. What we’ve heard and learned

3. Where we are going

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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

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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.

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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

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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)

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What we heard

Very strong interest in Office

Participatory approach resonates

Conflict prevention

Value proposition

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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

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The Review Mechanism

“Honest Broker” problem solving mechanism

Key Guiding Principles established as a result of the consultations

Accessibility, Transparency, Independence, Accessibility, Transparency, Independence,

Effectiveness, Predictability, Responsiveness. Effectiveness, Predictability, Responsiveness.

Dispute resolution process launched October 20, 2010

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Within 5 days

Eligible

Office of the Extractive Sector CSR CounsellorReview Process

Step 3: Eligibility Assessment

Maximum of 120 days

Maximum of 120 days

Maximum of 40 days

Step 1: Request for Review

Step 2: Acknowledgement

Step 4: Informal mediation

Trust Building

Step 5: Informal mediation

Structured dialogue

Optional: Access to formal mediation

Letter of intent

Ineligible

Final report

Final report

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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?

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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

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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)