Requirements of International Investors as a Environmental, Health - PowerPoint PPT Presentation

Requirements of International Investors as a Environmental, Health & Safety and Social Management Tool MINEX Central Asia 5 th Forum, Astana 02 April 2014 The world’s leading sustainability consultancy

Agenda � Introducing ERM ■ Requirements of international investors as an EHSS management tool � Case Studies � Contacts 2 The world’s leading sustainability consultancy

Introducing ERM � Leading consultancy providing environment, health, safety, risk and social services for over 40 years � Delivers innovative solutions to enable our clients to maximize earnings, comply with regulations and improve their corporate reputation and public perception � Sustainability is at the heart of the services we provide and how we operate our business � 150 offices in 40 countries worldwide � > 5000 professional staff � Completed projects in > 190 countries 3 The world’s leading sustainability consultancy

Main International Finance Institutions World Bank Equator Principles Financial Institutions ■ Equator Principles ■ 8 IFC Performance Standards International Finance Corporation ■ Sustainability Policy ■ 8 Performance Standards Development Banks ■ Environmental and Social Policies Export-Credit Agencies (COFACE, ONDD etc) ■ «Common Approach» OECD National Investment Corporations (OPIC) ■ Policies The world’s leading sustainability consultancy

What are the Main Lenders’ Requirements? Equator Principles: 1. Review & Categorisation 2. Social & Environmental Assessment 3. Applicable Social & Environmental Standards 4. Action Plan & Management System 1. Country EHSS laws 5. Consultation & Disclosure and regulations 6. Grievance Mechanism 2. EU E&S standards 7. Independent Review 8. Covenants 9. Independent Monitoring & Reporting 10. EPFI Reporting IFC Performance Standards: PS1: S&E Assessment & Management System PS2: Labour & Working Conditions PS3: Pollution Prevention & Abatement PS4: Community Health, Safety & Security PS5: Land Acquisition & Involuntary Resettlement PS6: Biodiversity Conservation & Sustainable NRM PS7: Indigenous Peoples IFC EHS Guidelines: PS8: Cultural Heritage General EHS Guidelines • Environmental • Occupational Health & Safety • Community Health & Safety Industry Specific Guidelines • Thermal Power Plants The world’s leading sustainability consultancy

Lenders Requirements: Scope ENVIRONMENTAL SOCIAL GOVERNANCE • risk management and • contaminated land & • workplace health, safety control systems water and quality • bribery / corruption • biodiversity loss access to medicine • business ethics • greenhouse gas • labour standards in the • lobbying emissions / climate supply chain • stakeholder dialogue change impact • child labour disclosure and reporting • renewable energy • relations with local • waste management communities • water scarcity RISK MANAGEMENT Civil & Capex & Growth & Reputation / Access to Criminal Liabilities Opex Operations Brand Capital Action The world’s leading sustainability consultancy

Lenders E&S Requirements: Approach E&S E&S E&S E&S E&S Scoping Impact Management Management Monitoring Baseline Assessment Plan System Stakeholder Engagement Stakeholder Engagement Stakeholder Engagement Stakeholder Engagement The world’s leading sustainability consultancy

Case Study: Identification of Social Risks Project Identification of Social Risks Client Confidential Mining Client Location & Southern Russia, 2011 Date Scope Company was considering an international finance for on of its projects and hired ERM to undertake a Lenders Due Diligence including a detailed social review of the Company’s social performance through visits to the corporate office and interviews with internal and external stakeholders and developed an Engagement program and Program to minimize social risks Key aspects As the result Company has made improvements around: Communication between the corporate and the site levels Leadership commitment Targeted social program Working with land users to register their rights The world’s leading sustainability consultancy

Case Study: ESIA and Resettlement Planning Project ESIA and Resettlement planning Client Energy Resources Location & Mongolia Date Scope ERM was hired to conduct ESIA for coal mining project in Mongolia to obtain international financing from the international financial institutions. Key Preparation of ESIA, Action Plan for Mine and Coal Transport Aspects Infrastructure Project as well as Public Consultation, Resettlement Action Planning and Monitoring & Evaluation processes followed by on-going monitoring and evaluation of environmental and social performance as the Project is being implemented. Key aspects were: to provide ‘real-time’ inputs into the planning and decision making process for the Project, so that impacts could be avoided or investigated in the design stages. Managing resettlement risks through a combination of early engagement with herders as well as through a strategic approach to public consultation and disclosure. The world’s leading sustainability consultancy

Applying the Equator Principles and IFC Performance Standards PERFECTION Realism PRESCRIPTIONS Clarity PRINCIPLES Flexibility MINIMALISM The world’s leading sustainability consultancy

Contacts Valery Kucherov Elena Amirkhanova Partner, Performance & Assurance Partner, Global Lead Sustainable Services | ERM Eurasia Finance Services | ERM UK Tryokhprudny pereulok, 11/13, office 1 2nd Floor | Exchequer Court Moscow 123001 | Russia 33 St Mary Axe | London EC3A 8AA | UK | valery.kucherov@erm.com | elena.amirkhanova@erm.com Gulmira Khobdabergenova Executive Director | Almaty office | ERM Eurasia Respubliki ul., 15, office 437-443 Almaty 050013 | Republic of Kazakhstan | gulmira.khobdabergenova@erm.com 11 The world’s leading sustainability consultancy