MAC Benchmark and Recommendations Final

K.Brady

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• management
• managers

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• Publié par: Ustlo
• Nombre de lectures: 20
• Langue: English

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 Analysis of MAC’s Sustainability Programming

  26 May 2008

’ Analysis of the Mining Association of  Canada s Promotion of Sustainability among Member Companies: Benchmark and Recommendations    

 

 

Prepared for: The Mining Association of Canada (MAC)

Prepared by: Five Winds International & Strandberg Consulting

 Analysis of MAC’s Sustainability Programming         TABLE OF CONTENTS     STUDY PURPOSE .................................................................................................... 1   EXECUTIVE SUMMARY ........................................................................................... 1   THE MINING ASSOCIATION OF CANADA – SUSTAINABILITY PROGRAM ANALYSIS................................................................................................................. 3   A Benchmark Relative to Other Canadian Industry Associations ....................... 3   SUMMARY OF INTERVIEW FINDINGS ................................................................. 20   Areas of strength in MAC’s promotion of sustainability among member companies ........................................................................................................ 20   Potential gaps in MAC’s sustainability programming ........................................ 20   BENCHMARK ANALYSIS ...................................................................................... 22   GENERAL STRENGTHS ........................................................................................ 23   RECOMMENDATIONS FOR ADVANCING MAC S SUSTAINABILITY ’ PROGRAMMING..................................................................................................... 23   APPENDIX 1: TOWARDS SUSTAINABLE MINING: GUIDING PRINCIPLES....... 26   APPENDIX 2: MEMBER COMPANY INTERVIEWEES AND QUESTIONS ........... 27   M EMBER C OMPANY I NTERVIEWEES 27...... ......................... ...........................................   I NTERVIEW G UIDE ......................... ........................................................................ 2..7      

     

S TUDY P URPOSE     The Mining Association of Canada (MAC) was interested in having an independent, external analysis conducted of its current activities to promote sustainability among member companies. This analysis was based on a set of benchmarks emerging from the study completed for Natural Resources Canada in 2007 onthe Role of Industry Associations in the Promotion of Sustainability, the Project Team’s understanding of best practice in this area and interviews with seven MAC member company representatives. The individuals interviewed as part of this study and the questions used to guide these interviews are provided in Appendix 2.   Findings from the research noted above were used to generate the following summary: •   Areas where MAC is strong in its promotion of sustainability among member companies, •   potential gaps in MAC’s sustainability programming, andAreas that may be •   for continuing to build on the strengths and closing the potential gaps asRecommendations MAC moves forward with its sustainability programming.     This analysis will inform an upcoming strategy session MAC is holding in June 2008.     E XECUTIVE S UMMARY     The assessment of MAC’s sustainability programming against best practice amongst other Canadian industry associations revealed that MAC is a high performer and exceeds best practice in eight of the areas benchmarked and was consistent with best practices of other industry associations in six areas. There are three areas where MAC’s programming is consistent with industry practice, however, the eight Canadian associations studied to date are possibly underperforming their potential in these aspects, including: a formal process for issue identification; industry goals and targets; and “house in order” programs.   MAC’s comprehensive sustainability approach, including its strong commitment to sustainability, a highly engaged board of directors, indicator protocols, third party verification, stakeholder engagement and transparent reporting, is the strongest sustainability approach compared to the 2007 benchmark study of 7 Canadian industry associations, and as reported in the 7 member interviews. According to the interviews, this programming has substantively: •   Improved the reputation and image of the domestic mining industry, •   Fostered commitment to sustainability amongst member firms, and •   Enhanced stakeholder trust and engagement with the industry.   From this analysis, it is clear that MAC’s efforts to work with the industry in advancing its sustainability performance and accountability are paying off in significant best practice. To remain among – or ahead of – the leaders in this area, however, MAC could consider some areas for improvement, including the following: •   Improve external communications of the benefits and outcomes of the TSM strategy and program; •   around the potential risks and opportunities of broadening theFacilitate a discussion focus of TSM beyond national to international; •   Consider surveying member companies, international, national and regional stakeholders on emerging sustainability issues in the sector, and in the process, validate whether MAC should take some initial actions to address some of the additional issues that emerged in this anlaysis; •   Consider broadening stakeholder engagement activities and development of strategic partnerships with national and international organizations on social issues in mining industry (e.g., H&S, human rights, community development, etc.); •Develop and formalize a strategic planning process for MAC’s sustainability   programming for improved results, credibility and transparency; •   on a combination of process and outcome-basedConsider developing and reporting performance metrics and goals for MAC specifically and the sector generally; •   updated governance framework for MAC’s sustainabilityEvaluate and develop programs; •   and improve accountability and transparency framework; andAssess

 

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 Analysis of MAC’s Sustainability Programming Consider implementing a few key “house in order” programs to demonstrate leadership and commitment to sustainability amongst MAC staff.

Five Winds International and Strandberg Consulting    

2 5/25/2008  

    T HE M INING A SSOCIATION OF C ANADA –   S USTAINABILITY P ROGRAM A NALYSIS     A Benchmark Relative to Other Canadian Industry Associations     The Mining Association of Canada (MAC) is a national organization of the Canadian mining industry. It comprises companies engaged in mineral exploration, mining, smelting, refining and semi-fabrication. Member companies account for the vast majority of Canada’s output of metals and major industrial minerals. MAC has 30 member companies and 42 associate members (suppliers and others who support the objectives of MAC, but who are not directly in the mining business).   The analysis below is based on a set of benchmarks resulting from a study completed for Natural Resources Canada in 2007 onthe Role of Industry Associations in the Promotion of Sustainability.For each benchmark area, the following information on MAC’s sustainability programming for its members is documented:   •   area of practice being assessed (Column 1);A description of the benchmark or •   A description of MAC’s activities in the area of each benchmark (Column 2); •   in 2007, the Project Team’s understanding of best practices in the area, and interviews with memberNotable strengths based on the findings from the NRCan study completed companies (Column 3); •   Potential gaps, based on the same criteria as above (Column 4); and •   A qualitative rating (also in Column 3) based on MAC’s performance relative to the seven industry associations 1 included in the initial NRCan study. This qualitative rating uses the following scheme:     Exceeds Best Practice itca ecBoweles BPrt  e  eBtsti h tcciP   ar Consnt wiste     A few Ass   jaM(tiro i snoita n eva c h i   o elmark schma   ben s initnocoaiA ss yfo (only Association in benchmark sam le with  benchmark sam le have ractice in lace  practice in place)  practice in place)     z   } {

                                                  1 nd itrus salenevoitai snsa yicosin NRCanncluded o  nT“ehs’s utydtrusnd Iofe ol Ri snoitaicossA yion omote Prn thlitinibasuatfoS w ”y ere ehtanaCandiss Aiaocontio  fePrtloue mrPoducers (CAPP), naidanaCsreknaB iaocss A ontiore inigTh  (CBA), Canadian Chemical Producers Association (CCPA), Canadian Association of Manufacturers and Exporters (CME), Forest Products Association of Canada (FPAC), Prospectors and Developers Association of Canada (PDAC) and Retail Council of Canada (RCC).

 

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Strengths

 Analysis of MAC’s Sustainability Programming        Sustainability/ CSR Practice   Description A. Sustainability Vision and Position •   Association has developed an  used: CSR, sustainability or other Term }   overall sustainabilit / CSR vision o   Sustainability (As in “Towards Sustainable Mining”   )   for the sector/ membership• focuses on all three TSM  llars of  sustainabilit   •e.g ,od ssude( clude es it inope, Scerag cov ded enaitnoifinR CSf  otaus Sortilibanii taht y pi dn laa osicnt, onmenvir y  e . commitment to environment, social, economic performance)  economy)   o   Subscribe to Brundtland definition of sustainable development which is s ec environmental, social and economic well being •p, tsM’TS Gu s nI nam er y  exceed dini grPniiclpse o   set of Guiding Principles that articulate theAs part of TSM, developed best ractice, but the stud sustainability vision for the industry (Appendix 1) did not include a comprehensive detailed   •  of the marison v r ir n e i   i s cl   a a v d i e r t u   o ,   r s d   p b t e d d o t n h  i   os  a iV e i s   t a d o o n   8 e co o   Vision adopted June 2004   industry associations; other o   Drivers: MAC felt trust in the mining industry was eroding in Canada, wanted to do industr associations something to re-build that trust and credibility to ensure future sustainability of the  ooddemonstrate some industry (access to land and resources)   practice in this area o   Figure depicting vision and key elements of program is presented below:    

 

Five Winds International and Strandberg Consulting 4 5/25/2008      

Potential Gaps

 Analysis of MAC’s Sustainability Programming   Sustainability/ CSR Practice  

Description

 

Strengths

o Adherence to TSM Guiding Principles is global, however reporting against indicators in each priority performance area is for Canadian operations only. Reporting also not required for closed properties or exploration projects o   Thus far three member companies have chosen to apply TSM internationally, two of these also include their closed and exploration properties   a B n o d a   r o d v   e h r a s s i   g a h  r t  o ( l h e i  i g n h    l C e S v R e   l  strategy  • Nam o e an T d S m M a   n G d o a v t e e r   n of a   n B c o e a   r T d e C a o m m – m s it t t a e n e d    ing committee of board; members are CEOs of z commitment)  committee was created to Themember companies and also board members. • Clear Board mandate – examine opportunities for improving the mining industry’s performance and res onsibilit rests at hi h reputation with key stakeholders  level o   TSM Initaeedsr– aiitevL tingeporthe  to c-mos bueer  f i r m o t m te ad mnanrevoG,maeT ec • regularly Board u of multi-disci linar re resentatives from all member com anies ran e Five Winds International and Strandberg Consulting 5 5/25/2008      

   

Potential Gaps

Potential Gaps

 Analysis of MAC’s Sustainability Programming   Sustainability/ CSR Practice   Description Strengths manager to VP level reps). The purpose of this committee is to develop and refine communicates its performance indicators and technical guidelines to help members implement TSM. commitment to TSM to Four Initiative Leaders are members of the Governance Team. They regularly external audiences report progress and issues to the GT. The current Chair of the GT is a member of the IL committee   o   TSM is a standing board agenda item   • Board Directors receive training on CSR/Sustainability o   No   •   Board’s commitment to CSR/Sustainability has been communicated internally and externally   o   Report from Chair of the TSM Governance Team who isExternally - letter in TSM a director of the board; Chair’s and GT Chair’s statements in the 2007 Annual Report communicates progress on TSM, etc.   Association staff have dedicated • Number of full time employees assigned to manage program z   responsibility for overseeing and o   .75 FTE plus shared responsibilities among other staff members (all staff assist in   implementing sustainability/ CSR TSM implementation through various initiatives and responsibilities) • of TSM into all job Integration programs •  descriptions  Positions and title(s) of sustainability / CSR staff, e.g. VP of environment o   .75 FTE: VP Sustainable Development and Public Affairs - responsible for   overseeing whole TSM Initiative   o   Additional staff with explicit responsibilities for TSM implementation:   VP Technical Affairs - responsible for tailings management ƒ ƒ   VP Economic Affairs - responsible for energy/ GHG management ƒ   Director Government Relations - supports TSM outreach ƒ   President – public spokesperson on TSM Association forms linka es or •   Strategic partnerships Association is involved with   }   artnershi s with international MOU with IUCN Canada to reduce rate of biodiversity loss (building on   o    standard bodies and/or other international work of ICMM with IUCN International) • A number of strate ic  Potential lack of strate ic • leadin sector initiatives in o   Letter of intent with Assembly of First Nations; attempting to formalize into an MOU  have beenartnershi s  with national partnerships wi formed with national and  and international sustainability / CSR UOM  erdda llJu8.00 2nel na ynoia m dlcointss jocac adv m  ,s ninime gyolp suis, es iHRuess nolfciste ct .ment, regional c international organizations –  on social anizations or rimaril on environmental  issues in mining industry o   daaiC naiwhtOM Utiat Inirealn Bohcae peek ot evid meornf ierth oe ffrostfot ehri lla ,  look fppo utroarobevitc.et tini, es issues in mining industry  e. ., H&S, human ri hts, or co communit develo ment,   etc.)  

Five Winds International and Strandberg Consulting 6 5/25/2008      

Strengths

Potential Gaps

 Analysis of MAC’s Sustainability Programming   Sustainability/ CSR Practice   Description •   leading sustainability initiatives (e.g., GRI, Global CompactLinkages/ involvement with other or other international Code of Conduct, other Industry Association sustainability initiative)   o   Associate Member of ICMM; MAC contributed to development of ICMM’s assurance program, participated in ICMM’s biodiversity task group that developed the Good Practice Guidance, worked on international acid rock drainage issues, etc. o   Works closely with other commodity associations on sustainability initiatives (e.g., Nickel Institute, other major mining and metals associations including Eurometaux and Minerals Council of Australia) o   program (Mine Environmental Neutral Drainage) -Participates in MEND administered by small secretariat at CANMET, part of NRCan o   Supports and participates in International Network for Acid Prevention o   Supported FOCAL research on indigenous governance and extractive sector in Latin America o   Participant in CSR Round Tables on Corporate Social Responsibility o   NOAMI (The National Orphaned/Abandoned Mines Initiative) –Participates in played key role in getting this established o   Canada and Pollution Probe to supportInternship agreement with Environment interns studying REACH in Europe. Results to be shared with ENGOs, government and industry. Supported by NSERC     o   on Board of NA Bird Conservation Initiative and Eastern Habitat Joint VentureSits   A minimum level of sustainability / • Description of performance criteria z   CSR performance has been set for Endorsement of Guiding Principles and Reporting on Indicator Protocols   members e. ., mandator • level performance Minimum • Lack of mandatory global performance criteria) o   MAC   requires members to subscribe to set of guiding principles backed by  a TSM criteria has been set for  uired - re lication s m p e ec m if b ic e   r  performance areas (and their associated indicators) against whic t h h    ortin a members consistent with best  re ainst indicators companies must  d s i e c l a f- t a or s s sess and publicly report annually on by eir  practice in each priority performance fourth ƒ   da  yr eau 8  c( 0   0 ne   rr d     y t l e t   n 2 i i   n 4 orrfPeni ecnamcid   ; 1 morew li leba dddei   bio forrsitdiveed r ynuolmpedev )0820n  srota   ent, likely •cent exp Re o o n s i n l o cd l unais e n m ot     andi e    e otiras on aera si  rofanaC external verification of op  companies are applying erformance is consistent ƒ   b  eiwlli  tihhcer w afttionulta ederidnsco laR letabAroginiicy adopions Pol epdnez danil  e ifconsher furting  b tfard a sa det btod arBoC MAy  tcar ecihtlahguo AC   M f’susocn  oevirifacitnoo  f witst ph be • ioaterop  N  ) nsta MST labolg   iicicndeco omon ..rotae s as a possible protocol.    develo ment, member com an information  communit ƒ   policy going to MAC Board in June 2008 forDraft mine closure is noteworthy  resiliency) community   adoption. Policy includes reclamation objectives and addresses miti ation of socio-economic effects of mine closure and communit • of protocol Process • Could consider a specific Five Winds International and Strandberg Consulting 7 5/25/2008      

 Analysis of MAC’s Sustainability Programming   Sustainability/ CSR Practice  

Description Strengths Potential Gaps capacity plans for long-term economic development. Under  related to racticedevelo ment is code of consideration for possible indicator development    roduct and solid,com rehensive and , stewardshi o   have 7-8 performance areas in total for members to report on.MAC aims to ohdlre s tdu otrtaoi nfo or pliers  and trans seitvael e e r n   g slpyu se xotte nd fos atekg c a e m t e i n a e c   p t rcitrraluap Performance areas around biodiversity, mine closure and Aboriginal relations •  customers; the industr to  c  Achievin 5 Level are currently being considered    be ushed erformance is ood stretch  will increasin l o   Members required to have TSM performance indicators externally verified (as of 2006)   ivitseit o   a i g hc   a n   l, –uc sh  tcm/o   rudssp dder s a a r   d y s t s o t e e   w i e a e l     t a o t t e m r    ato o   Performance criteria measure quality and comprehensiveness of management •  in develo c life  Including  as  management  cle systems   p t  o a f t   o m r a s t   e s r u h r e o   f i i n l d e i s  c i s l     n w t l m s e i l a e tin   th l w , ie metss or s  and for some metals are,    within the mentationi l •ocesn prs   p e m v e iitcaroc tcerdimeioat oonrer  r n   o   h t s e i e a r c o p n r i c o m e i o t   c i n i f i n o n s m a     p d i u c l a c t i i r o   n e /   g - / k   s verif beco comminr pt c r a i o s m c   D n e  .   tO itec   External Verification •  research and work  Covers some social and  based o   MAC established process of external verification to ensure member company’ sdeeseb  t look at sers to  ret ow u   ena dit erom  iwhtt ei rno neatormnneiv cxe ytisrevid  sith; rstocadiinl  reporting on TSM performance indicators is consistent, comparable, accurate  applications ofpractice sustainable and transparent •  materials.  evolution oin of on  work on ICMM  Evidence o   Terms of Reference for “Verification Service Providers” have been developed  and  rovementand continuous im  stewardshi materials to ensure that:  reflects this eco-efficiency  erformanceof mandated ƒ   MAC member companies follow clear and consistent process for indicators exceeds best  trend hiring verification services to ensure independence practice • element could be Economic ƒ   Verification service providers are required to meet set of minimum inte rated with existin standards and conform to defined procedures to perform an • s n r c (     I a s c i o l t u  ,ce.e.g aP I leno i   nd n i oOC f lders astakeho f o-  satro  assessment that can be relied upon by MAC members and  efficiency verification allows for  type measures) stakeholders  significant transparency • Currentl mandator o   Three elements or ‘layers’ give MAC members and stakeholders confidence in integrity of reported company performance on TSM indicators: • ikool eb lliw  sr c ficie sor fn  mmesuea s o eus c s o i u   t c a u l s k s c   n d i i ; s g er     t s o r u a n   i e t a o ke t h r o   l l de o f     s l o u m v e i  s n t e COIsr meeblem P na   1. verification of company self-assessments by an external verifier with 2 member companies a   2. letter of assur s a  ( n p ce u   b f l r i o sh m e   d C   E on O     M or A  a C u ’ t s h   o w r e iz b e si d t   e o ) f   ficer confirming the  t a  arodnci   t c c r i i   t mi er a i c ab l e e s a a   v d e n   o at  e hs r   a t   h , bar lises,near tstegdna   verified result determined by the Panel  ear measurement ear on 3. annual post-verification review of two or three member companies’  of continuous im rovement. performance selected by the Communities of Interest (COI) Advisory  releases areWhile ollutant Panel, as a third level of verification reported, they are not •   Post-verification review lends public credibility to TSM, communicated as ex licit highlights deficiencies and best practices, brings TSM re Perha uirement. s cohesiveness in application of self-assessment and these could be more verification, and drives continued performance  into ratedformall inte im rovements mandated performance Five Winds International and Strandberg Consulting 8 5/25/2008