Approach and services

Good practice in this area continues to evolve. Companies are moving away from philanthropic donations and ad hoc practices to more sophisticated and strategic ways of planning and delivering benefits across broader geographic areas. There is greater emphasis on the business case—via the lens of risk and opportunity—and on creating “shared value” by aligning business goals and competencies with the development priorities of local stakeholders. Other trends include a focus on building social capital and local ownership through multi-stakeholder processes, factoring sustainability and handover/continuity strategies into project design and measuring and communicating results to optimize both business and societal value.

IFC Infrastructure & Natural Resources Advisory: Providing Solutions and Managing Risks
Learn more about the Advisory team’s services and offerings here:

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Two key frameworks explaining the approaches of IFC’s Infrastructure and Natural Resources Advisory team are available:

The Art and Science of Benefit Sharing in the Natural Resource Sector and

Strategic Community Investment (SCI): A Good Practice Handbook for Companies Doing Business in Emerging Markets.

Our benefit sharing services focus on five broad areas:

  1. Community Investment & Sustainability Strategies
  2. Local Supplier & Value Chain Development
  3. Revenue Management & Social Accountability
  4. Water Stewardship & Cooperation
  5. Capacity Building & Knowledge Creation

Community Investment & Sustainability Strategies

Bankers Petroleum, Albania:
Helping the company formulate sustainable community investment strategies for long-term benefits

community-investment

  • Created opportunity for Technical Manager to discuss importance of community engagement as part of project risks
  • Prioritization of community investment initiatives based on business value drivers and ability to manage risks
  • Increased appreciation of role community investment team can play in HSE awareness campaigns
  • IFC seen as advisor/sounding board for new initiatives

Portucel, Mozambique:
Helping the company undertake sustainable land planning and promotion of livelihoods

Porcuel

  • Supporting Portucel implement a 10-year community development plan for agriculture, food security, rural livelihood programs, health and educational initiatives
  • Advising the development of a stakeholder engagement plan along with grievance mechanisms
  • Long-term benefits to 25,000 families via incomes, food security, improved health and educational services


Local Content & Community Investment

Rio Tinto Simandou, Guinea:
Helping the company create a local procurement policy and strategy to increase local suppliers and develop businesses capable of competing for contracts.

local-supplier

  • Inclusion of local content annex in Investment Framework
  • Development of local content policy for Simandou project and national level
  • Training in management, HR, quality, marketing, health & safety, leasing, etc. to 2,000+ participants from 900+ SMEs
  • $12M+ in new supplier contracts
  • Over 1300 new jobs in local mining supply chain
  • Business registration time in Guinea has decreased on average from 40 to 3 days
  • Guinean Private Sector Development Agency now up and running
  • New VAT reimbursement process in place for local companies


Revenue Management & Social Accountability

Municipal Royalty Management, Peru:
Building capacity of local municipalities to better utilize and invest the revenues received from mining royalties/taxes

revenue-management

  • Capacity building of key municipal officers through tools and methodologies, delivering training and coordination of activities
  • Investment performance increased by more than 20% in 21 out of 30 municipalities
  • Improved practices in 28 municipalities through investment committees, multiannual plans and operational programming related to budget and procurement processes

 

Social Accountability, Peru:
Building capacity of civil society organizations to hold local governments accountable for the use of royalties/taxes and demand good governance to increase the impact of local public investment

Social Accountability, Peru

  • 1,475 local leaders (of which 49% were women) were trained in 31 municipalities throughout 8 regions of Peru
  • Mayors of 27 municipalities answered 10,810 questions from the population
  • The Good Governance Index increased by at least 20% in 19 municipalities

 

Ecopetrol, Municipality of Aipe, Colombia:
Helping the company develop community investment strategies in one of the poorest regions of the country where the standard of living has failed to keep pace with royalty income

Ecopetrol, Municipality of Aipe, Colombia

  • Municipality designed and implemented a US$2m project called “Student Transport” to benefit 838 children without access to adequate transportation (mainly rural population)
  • School absenteeism and drop-out rates have declined
  • Additional improvements include investing royalties in healthcare, water and sanitation projects


Water Stewardship & Cooperation

Oyu Tolgoi Mining, Water & Communities, Mongolia:
Helping improve water management and stakeholder engagement around shared use of water

Oyu Tolgoi Mining, Water & Communities, Mongolia

  • Surveyed the local population’s perception of the mining industry’s impact on water and delivered 14 multi-stakeholder workshops on key findings
  • Voluntary code of practice signed by 8 mining companies to promote the efficient and transparent use of water
  • Raised local awareness through training more than 1000 community, government and industry stakeholders on water quality monitoring, mining and groundwater systems
  • Developed a communications and awareness raising strategy for South Gobi mining industry
  • Improved company water management practices, e.g. four mining companies implementing community participatory water monitoring and herder rehabilitation programs

Key Findings from 2013 Public Survey on Water in Omnogobi Province, 2015 Workshop Booklet:
[English Version] [Mongolian Version]


Capacity Building & Knowledge Creation

Pacific Rubiales Energy, Colombia:
Helping the company quantify the returns on investment from sustainability projects and establish strategic priorities

  • The Financial Valuation (FV) Tool quantifies in NPV terms the value protected through risks mitigated and the value created through productivity gains from a portfolio of social and sustainability investments
  • The value added NPV (value protected and value created) of 3 CSR projects at the operation was estimated at $47.6M over an 11-year period
  • Staff (sustainability, finance, CSR) trained in the use of the FV Tool and process to plan, budget, and prioritize CSR programs
  • Results of the pilot taken to the Sustainability Committee to improve investment choices

 

Global Environment Facility, Global:
Working with the financial intermediary to improve community investment and social practices amongst its investee companies

Pacific Rubiales Energy, Colombia

  • Conducted a two-day workshop with community relations staff and extension workers of GEF’s four investee companies to share key tools and techniques for effective community-company engagement
  • The training included stakeholder analysis and mapping, risks and opportunities assessment, participatory rural appraisal techniques, communications and negotiations, as well as an action planning for community investment