British Columbia Chamber of Commerce

1
British Columbia Chamber of Commerce Energy
Summit The Energy Industry and the
Environment A PRESENTATION ON Social Licence
Preparing the Community for Industrial
Opportunity Diane Hewlett, Manager of
Development Information Investor Services,
District of Kitimat / Port of Kitimat
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Social Licence and Industrial Development

• SOCIAL LICENCE
• Why/How Businesses Go Beyond Compliance
• Industrial Development Process
• Preparing the Industry for the Community
• BC Policy Gap Eco-Industrial Development

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1. Why/How Businesses Go Beyond Compliance

• What Is Social Licence?
• Obligations NOT synonymous with legal obligations
  1
• learned from court actions / media slams /
  regulatory regimes
• Not moral obligation
• connected to perceived terms of society
  expectation
• Enforced indirectly through economic or legal
  mechanisms
• economic boycott customers, clients,
  investors, shareholders
• Regulatory Rigor invest beyond compliance
  margin of safety
• Operating licence tightened from FN/ENGO
  pressures

KITIMAT Gateway of BCs Pacific Inland Coast
1 Gunnningham N., Kayan R.A., Thornton D., Social
Licence Environmental Protection Why
Businesses Go Beyond Compliance London School of
Economics Political Science 2002 ISBN
0753016087
4

• What Is Social Licence?
• Measure for good citizenship justified ROI
  vs. risk of reputation consequences2.
• Communication Bridge motivating groups to enter
  industrial discussion (FN, NGOs Govs)
• BCs War in The Woods Maturation effect
• Is related to Reputation Capital which can
  stimulate
• Development approvals
• Preferred access to prospective areas and
  products
• The ear of government trust of regulators
• Acceptance of local First Nations communities
• A reduced risk of being targeted by ENGOs
• Future profits.

2 Joyce S., Thomson I., Earning a Social Licence
to Operate Social Acceptability Resource
Development in Latin America The Mining Journal
11 June 1999
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1. Why/How Businesses Go Beyond Compliance
SOCIAL LICENCE PERFORMANCE

• Corporate Social Responsibility
• Considers impact of activities/interests of
  society
• Beyond statutory obligation to comply with
  legislation
• Steps to improve quality of life
• Reduces up front costs risk associated with
  gaining
• social acceptability
• The Business Case based on corporate policies
  for
• Risk Management
• Brand Differentiation
• Ongoing Licence to Operate from Society

• Triple Bottom Line
• Economic
• Environmental
• Social
• Corporate Social Responsibility
• Shareholders
• Customers
• Employees
• Communities
• Environment in all aspects of their operations

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Industrial Leaders1 Looked at from the business
standpoint, social licence is risk management
anything that could give your company a bad name
is an unpredictable risk. Why Social Licence?
Its the right way to go trust, listen and
respond. Trust is essential to industrial
development particularly when building
relationships with First Nations. Trust builds
from frequency of positive interaction the more
meeting of the minds the more feel-good
neurotransmitters and greater opportunity for
successful long term collaboration. An example
of Meeting of the Minds Haisla FN KLNG
1 Gunnningham N., Kayan R.A., Thornton D., Social
Licence Environmental Protection Why
Businesses Go Beyond Compliance London School of
Economics Political Science 2002 ISBN
0753016087
7
HAISLA FIRST NATION PRINCIPLES Chief Steve
Wilson Id like to recognize Haisla Chief
Councillor Steve Wilson for his visionary
leadership the following slides are depicted
from his presentation with Kitimat LNG at the
2006 West Coast LNG Forum in Vancouver, B.C.
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HAISLA FIRST NATION Kitamaat Village Chief Steve
Wilson We continue to recognize Haisla Chief
Councillor Steve Wilson for his visionary
leadership the following slides are depicted
from his presentation with Kitimat LNG at the
2006 West Coast LNG Forum in Vancouver, B.C.
KITIMAT Gateway of BCs Pacific Inland Coast
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HAISLA FIRST NATION Kitamaat Village Chief Steve
Wilson We continue to recognize Haisla Chief
Councillor Steve Wilson for his visionary
leadership the following slides are depicted
from his presentation with Kitimat LNG at the
2006 West Coast LNG Forum in Vancouver, B.C.
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HAISLA CAPACITY BUILDING MODEL We continue to
recognize Haisla Chief Councillor Steve Wilson
for his visionary leadership this slide is a
depiction from his presentation with Kitimat LNG
at the 2006 West Coast LNG Forum in Vancouver,
B.C.
SPECIAL LEARNING NEEDS
HOME INSTITUTE OF PARENTS OF PRESCHOOL YOUTH
HAISLA TRAINING CENTRE ESTABLISHED
H.I.P.P.Y.
SOLVE PROBLEM OF EMPLOYMENT THROUGH
KLNG/PTP ENBRIDGE, ALCAN
Kitimat Valley Institute For Industrial
Education Program to meet post-secondary education
al Needs.
COUNSELLING FOR RESIDENTIAL SCHOOL VICTIMS
HAISLA COUNSELLING SERVICE
HAISLA CAPACITY DEVELOPMENT SOCIETY
CAREER INITIATIVE PROGRAM FOR HAISLA AND HAISLA
YOUTH
ENBRIDGE AWARD FOR HIGH ACADEMIC ACHIEVEMENT
5000 FIRST NATIONS SPEND TOO MUCH ON
CONSULTANTS
UNDERGRADUATE STUDIES Envir Sciences/ Antrhopology
WORKING SCHOLARSHIP FOR SUMMER EMPLOYEMENT
ALCAN, EUROCAN POLICY IS FOR 4 WEEKS PER PERSON
POST-GRAD STUDIES Law
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2. Industrial Development Process Results.
16 Billion in Proposed Investments more
remain confidential.
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2. Industrial Development Process Getting
Real, Getting Ready

• Local Governments serious about building their
  economy
• Chief Wilson on 3rd consecutive term of office
• 14 year platform for development Office of the
  Mayor
• Development based on timeless strategic
  advantages
• Councils Meet with Proponents build
  relationships

• INVENTORIES LRMP industrial sites, Industrial
  Zoned Lands, Utility/Transportation Corridors,
  Supply Service Sector Capabilities,
  Industrial/Post Secondary Education/Training
• Contacts local industry, regional,
  provincial governments
• CAPABILITIES deep-sea private port, 2nd of only
  2 Coast Valleys, NW Corridor better shipping
  alternative, designed by industry for industry
  but in a garden city concept

KITIMAT Gateway of BCs Pacific Inland Coast
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2. Industrial Development Process

• Development Information Investor Services vs
  Community Economic Development
• Orientation technical data, senior government
  linkage
• Economic benefits come ONLY if industry locates
• Job is to prove distinctive competencies,
  comparative advantages, operational synergies.
• Local Government Service/Support from Site
  Investigation, through EA process Project
  implementation

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2. Industrial Development Process

• Site Selection -- 3 kinds of Approach
• Cold-call (Enbridge in 1998, KLNG 2003,
  Pembina)
• Site Selection Agents
• Invest BC / Invest Canada (DFAIT)
• Industry Location Drivers
• Competitive Market Location / Operating Advantage
• Proximity to Market/Supply (Transportation
  Savings)
• Suitable Sites / Building conditions
• Infrastructure Utility Capacity
• Local / Regional Acceptance

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2. Industrial Development Process

• Environmental Assessment Policy
• Public consultation, public notices, Public
  Information access and comment
• Government agencies, First Nations, communities
  and public recognized as interested parties
• Local/regional socio-economic capacity building
  achieved
• through input into EA Review

KITIMAT Gateway of BCs Pacific Inland Coast
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3. Preparing the INDUSTRY FOR THE COMMUNITY

• EA Project Application / Commitments Table
• National Occupation Codes of positions associated
  with project phases and operations -- Employment
  Services
• Supplies Services (A-Z or NAICS) Chamber of
  Commerce
• Business Registation Online
• Publish Procurement Policy / Contractor
  PreQualification
• requirements
• Small Packaging (bundling) of Contracts (to
  increase local business participation / Joint
  Ventures / Strategic Alliances)

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• EA Project Application / Commitments Table
• Procurement Policy quality goods/services at
  competitive price
• Reasons to Select Local Supply Service
• Previous experience industrial construction
• Safety labour records
• Competitive quality/cost platform Value Streams
• No accommodation overhead

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3. Preparing the Industry for the Community

• Tender Documents available at Chamber of
  Commerce
• Community Vacancy Capacity vs. Construction
  Camps
• Community Relationships, Meetings Workshops
  Post-Certification Employment Services, Kitimat
  Valley Institute for Industrial Education,
  Chamber of Commerce, Municipal Engineering
  Planning Depts, DFO Fish Hatchery/Sport Fishing
  Group/Visitor Information Centre
• Capacity Building
• Employment Services Funding for Industrial
  Educ / Training
• Workshops
• Pre-Qualifing Your Business
• Forming Joint Venture/Strategic Alliances

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Description of Material or Equipment EPC Level
Major Equipment
Analyzer Shelter Equipment Process Heating
Equipment Horizontal Pumps On/Off Butterfly
and Ball Valves API 617 Boil Off Gas Compressor
Plate Frame Heat Exchangers API 618 Boil
Off Gas Holding Compressor Safety Instrumented
System Control Valves Sea Water Fire
Pumps Cryogenic Pumps Shell Tube Exchangers
CS Drums Shop Fabricated Storage
Tanks Distributed Control System SS Drums Dry
Chemical System Structural Steel Fabrication
Emergency Diesel Generator Ultrasonic Flow
meters Fire and Gas Detection Panels Jockey
Pumps Fresh Water Fire Pumps Liquid N2
Generation Package Gas Metering System Fire
Protection Equipment Gaseous N2 Generation
Package Vertical Pump (Sea Water) High
Expansion Foam System Instrument Air Compressor
and Dryer Package
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Other Materials, Equipment Services
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Other Materials, Equipment Services
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Other Materials, Equipment Services
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LIST OF OCCUPATIONS FOR A MINING PROJECT.
LOCAL EMPLOYMENT COUNSELLORS CAPACITY BUILD FOR
COMPANY
D delivery, general freight diesel oil diesel
loco and underground drilling contractors drill
steel and bits dust collectors E earthmoving
electronic appliances electrical
supplies electrical wire and cable electricity
engineering services engines (gas and diesel)
expediting services explosives (fuse and
other) blasting supplies, chemicals F fans and
blowers fasteners fibrecrete filters and
cloth firefighting, rescue and safety
equipment fuel, general fuel oil, light and heavy
fuel overflow material fuel, power
generation furniture fuses, fuse
links G gasoline general contractors
generators geological services geotechnical
services grinding media grinding balls
groceries
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LIST OF OCCUPATIONS FOR A MINING PROJECT.
LOCAL EMPLOYMENT COUNSELLORS CAPACITY BUILD FOR
COMPANY
I installation technician instrumentation
technician intelligence officer investor
relations J Janitor janitorial
supervisor K kitchen hand L labourer/roustabout
lab technician land agent land surveyor
loader operator liaison officer M machinist
maintenance engineer (chief) maintenance
manager maintenance statistician market
evaluators market research marketing/sales
market manager materials clerk mechanic
(heavy duty) mechanics helper mechanical
engineer mechanical superintendent mechanical
technician metallurgist mill laborer mill
operator mill operator (training) millwright
mine captain mine foreman (general) mine
foreman (shift) mine management mine
planner mine superintendent miner
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LIST OF OCCUPATIONS FOR A MINING PROJECT.
LOCAL EMPLOYMENT COUNSELLORS CAPACITY BUILD FOR
COMPANY
N Nurse O occupational health and safety
specialist operations manager P painter
personnel officer personnel
supervisor personnel/tribal liaison pipefitter
plant shift foreman plant planner plant
superintendent plumber process plant operator
production manager public relations
officer purchasing agent purchasing supervisor
powerhouse operator Prospector Q quality
officer R rodman/technician
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LIST OF OCCUPATIONS FOR A MINING PROJECT.
LOCAL EMPLOYMENT COUNSELLORS CAPACITY BUILD FOR
COMPANY
S safety engineer safety officer
sampler scooptram operator secretary
security clerk security control security
guard security manager security officer
security supervisors shift boss shovel
operator stationary engineer statistician stock
pile/reclamation surface crew surveyor survey
technician supervisor (office) T technician
(mining) technical services (superintendent) tech
nical services technician trades
superintendent trade (equipment helpers) trainer
training supervisor truck driver U underground
blaster underground miner underground
shifter unskilled labourer W warehouse person
warehouse superintendent water truck
driver water treatment plant operator welder
wheel dozer operator
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4. BRITISH COLUMBIA POLICY GAP

• British Columbias 2008 Budget Speech February
  19, 2008
• Healthy environment or healthy economy? It
  must be both.
• WE are the generation to take action.
• Have WE identified the actions for policy that
  will get BC to where we need to be with Climate
  Change, reduction of GHG, and address cumulative
  impact?
• Tough Question.
• Is Eco-Industrial Development be part of the
  answer?

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4. BRITISH COLUMBIA POLICY GAP
Eco-Industrial Development ACTION from 2 GROUPS4

• Businesses looking to cut costs, reduce the use
  and disposal of natural resources from production
  processes.
• Policy makers who must reduce GHG climate
  change while assuring economic growth.

Could EID form the legacy for future generations
in BC?
KITIMAT Gateway of BCs Pacific Inland Coast
4 Industrial Ecosystem Development Report
www.tjcog.dst.nc.us/indeco.htm
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4. BRITISH COLUMBIA POLICY GAP
N.B. BRITISH COLUMBIA FIRST NATIONS CONCERNS
ABOUT CUMULTIVE IMPACT
KITIMAT Gateway of BCs Pacific Inland Coast
REMAIN A Marvel of Nature Industry
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Social Licence and Industrial Development
WHAT IS ECO-INDUSTRIAL DEVELOPMENT (EID)?

• Resource conservation
• Pollution prevention
• Industrial efficiency
• Investment Attraction Magnet
• Industrial ecology1
• Industrial clustering
• Emission technologies
• Product life cycle analysis

EID is becoming the Global Framework for 21st
Century Sustainable Development
1 Frosch , Robert A., Gallopoulous, Nicholas E.
Strategies for Manufacturing. Science America
September 1989 Pg. 144-152
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ECO-INDUSTRIAL DEVELOPMENT IS NOT A NEW CONCEPT
They dont waste anything here They use
everything about the hog except the squeal. 3

• 19th century
• Food manufacturers created marketable
  commodities
• 21st century
• Converting by-products and waste into a resource
• Use of technology to turn emissions into a
  resource
• existence of an economically feasible market
• creation of an economically feasible market
• investment attraction ensure synergy
  opportunities not lost

DEPENDS ON
KITIMAT Gateway of BCs Pacific Inland Coast
3 Upton Sinclair, The Jungle 34 (Heritage Press
1965) 1905
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Building British Columbias Legacy for Future
Generations
EID SYSTEMS APPROACH

• Involves
• materials
• energy
• technology
• land
• infrastructure
• people

PLATFORM FOR SUSTAINABLE DEVELOPMENT ECO-INDUSTRI
AL DEVELOPMENT POLICY Cluster Attraction,
Technology Education, Triple Bottom Line
Reporting British Columbia leadership for more
than Eco-industrial parks, partnerships
networks
KITIMAT Gateway of BCs Pacific Inland Coast
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In the web of nature, there is no waste.
One organism's by-product is food for its
neighbour. EID uses this
Eco-system platform.
EID is investment cluster attraction
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Kalundborg, Denmark. involves an oil refinery, a
gyproc factory, a pharmaceutical firm, a fish
farm, a coal-fired electrical power station.
EID makes good business sense reduced costs
for waste disposal, improved efficiency of
resource use, improved environmental
performance, reduction of cumulative impacts.
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Eco-industrial development platforms are
happening elsewhere DOES BC WANT TO LEAD OR
FOLLOW ?
Via Kitimat
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Building British Columbias Legacy for Future
Generations
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Building British Columbias Legacy for Future
Generations
EID LADDERS FROM BCS ECOSYSTEM BASED PLANNING

• APRIL 2001 EBM COASTAL CONSENSUS (FNs,
  NGOs, BC)
• Focus Maintaining ecological integrity

• APRIL 2004 EBM FRAMEWORK EXPANSION
• Human Well-being expand policy toward
  development
• (Conventionally in EBM, people part of ecosystems
  in which they live5 management is both.6)
• Best-practices GAP identified How do we?
• build/maintain healthy communities including
  health,
• education, transportation, equity, and
  economic
• development diversification? 7

5 Grumbine, R.E. 1994. What is ecosystem
management? Conservation Biology 8(1)2738. 6
Coast Information Team March 2004. The Scientific
Basis of Ecosystem-Based Management Intro (1) 7
Coast Information Team April 2004 Ecosystem-based
Management Framework 2.0 (2)
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Building British Columbias Legacy for Future
Generations
EBM EID GUIDING PRINCIPLES4
EBM and EID are collaborative. People benefit
from sustaining the ecosystems in which they
live. Ecological integrity is maintained. Human
wellbeing is promoted. Cultures, communities
economies are sustained within the context of
healthy environment economies. Aboriginal
Rights Title are recognized
accommodated. The Precautionary Principle is
applied.
POLICY A guiding principle, a course of action,
a strategy, a plan for procedures to follow
KITIMAT Gateway of BCs Pacific Inland Coast
4 Principles based on agreements made in 2001 on
implementing EBM. Source Coast Information
Team April 2004 Ecosystem-based Management
Framework 3.0 (2)
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Social Licence and Industrial Development
Eco-Industrial Development The Legacy Policy
for reducing Climate Change and Cumulative
Impact for the future generations in British
Columbia
We have 40 million reasons for failure But not
a single excuse. Rudyard Kipling