Putting Vision Back Into Community Strategy

Speakers

• Amy Jarek, Global Manager, Corporate Affairs Implementation , Talisman Energy Inc.
• David General, Director of Project Development, Kitikmeot Corporation
• Alejandra Martin, Manager, Advisory Services, BSR (Moderator)

Highlights

• Without alignment between a mining company and the community in which it operates, a project is unlikely to progress in a way that either side will like.

• It is important for a company to enable, facilitate, and provide the resources, energy, and incentives for communities to create their own vision for development. Engaging with shareholders—including government, civil society, and academia—is one way for a company to get firsthand perspectives on the most critical issues.

• A strong approach to CSR and a reputation as a responsible operator can generate significant development opportunities. As an example, both Talisman Energy and Kitikmeot have benefited in bidding for projects within and outside their traditional operating areas.

Memorable Quotes

“Take that bold leap. … You may not have all the answers, but when you work with communities go in with an open mind.” —Amy Jarek, Talisman Energy Inc.

“The most important thing you can do going into a community or developing a community strategy is to listen.” —Amy Jarek, Talisman Energy Inc.

“It’s incumbent upon a mining company to listen to community concerns, and for a community to have a vision for where they want to go.” —David General, Kitikmeot Corporation

Overview

General opened the session by sharing images from the Kitikmeot region of Nunavut in Northern Canada, where Kitikmeot Corporation works in five inhabited communities. Kitikmeot Corporation established 15 Inuit-owned joint-venture corporations in a variety of industry sectors, many of which service the resource-rich mining industry working in the region. General attributed the success of Kitikmeot Corporation’s model to three factors: 1) having strong agreements in place before a mining company enters the region; 2) working with strong partners; and 3) progressing alliances that respect the goals and aspirations of the partner.

General emphasized that while a mining company will have its own ideas and vision for a project, the community equally needs to develop its own vision and to make the mining company aware of that vision. General also acknowledged that while Kitikmeot Corporation’s model is not perfect and continues to be refined, it has proven to be a model that works and generates benefits to communities and mining companies in the pursuit of sustainable development.

Jarek framed Talisman Energy’s approach to putting vision back into community strategy around the concept of leadership. Talisman is an independent, upstream oil and gas company based in Alberta, Canada. It is active in 15 countries and increasingly involved in extractive activities in the United States. Jarek described Talisman’s approach to leadership as coming through meaningful and proactive engagement with stakeholders. She advised using policy as a tool internally to gain alignment on what is important, and externally to articulate how a company will engage a community. She also recommended developing a set of core operating principles to guide interaction with stakeholders, such as contractors who may not be familiar with Talisman’s approach to community relations.

Jarek also shared how Talisman facilitates and empowers communities to create their own vision for the future:

• Provide opportunities to develop leadership skills within a community, which allows people to access resources to understand and reflect on what their community’s priorities are in a structured way, including how they interact with the company and the benefit this interaction could provide to them.

• Use committees as a more culturally acceptable way to guide decision-making.

• Listen to priorities of a community and encourage discussion to consider medium- and long-term needs.

• Include other stakeholders to develop a long-term thought process.

Jarek also provided insight into Talisman’s exploration program in a remote and sparsely populated jungle area of Peru. Talisman spent time talking to communities about their concerns, and recognized that they lacked the governance and decision-making structures to prioritize their needs. The company partnered with a Spanish-based civil society organization to help the community work through that prioritization process. This partnership gave the community a chance to analyze their own needs via fuller and more inclusive dialogue.

In the Q&A segment, a participant asked how a company ensures that a community has a predominant voice in the dialogue. Jarek described that Talisman engages in face-to-face dialogue with communities to understand their needs, rather than trying to interpret needs from a third party. A second participant inquired how both Kitikmeot Corporation and Talisman employ local sourcing in communities. General stressed the importance of local sourcing to enable individuals to create small companies, obtain capital, and thus have the capacity to approach a mining company about providing a particular service. A mining company can play a role in enabling local sourcing by breaking down services into “bite-sized pieces” for small business, and providing the skills and assistance to get local businesses on suppliers’ lists.

Participants were also interested in impact and performance measurement of community engagement. Jarek and General shared common metrics, such as increases in local sourcing. They also indicated that a strong commitment to being a responsible organization was a key factor in their business success.