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1
Colloquium Oporto, 23rd September 2009
Stakeholder Engagement Strategies in Sustainable
Development Hector Pearson National Grid, UK
2
Presentation Outline
  • Introduction
  • Consultation and engagement
  • Why electricity utility organisations should
    embrace consultation and engagement
  • Cigré Working Group - work to date
  • Cigré Working Group initial findings
  • General conclusions

3
Introduction
  • Work of Cigre Working Group C3.04 -
    Stakeholder Engagement Strategies in Sustainable
    Development
  • Philippe Cimiterra RTE - France
  • Manuela Damas - REN - Portugal
  • Arilde Sutil Gabriel Copel - Brazil
  • Juliana Walendowsky Grando - National Grid - UK
  • Fiona Havenga Eskom - South Africa
  • Didier Laine RTE - France
  • Mirian Regini Nuti EPE - Brazil
  • Michelle Palmer Powerlink - Australia
  • Hector Pearson - National Grid - UK
  • Henk Sanders - TenneT - Netherlands
  • Mercedes Miranda REE - Spain
  • Also, personal experience from National Grid

4
Why do companies engage with stakeholders?
  • May be required by law
  • Investors or governments may seek it
  • In many countries, citizens have rights to
    influence projects
  • Citizens have the power to influence projects
  • Local politicians
  • Press / radio / TV / newspapers
  • Power of the internet

5
(No Transcript)
6
Power of the press
7
Power of the press
8
Power of the internet
9
Why do companies engage with stakeholders?
  • Good corporate governance in companies may
    require engagement
  • The responsibilities of Sustainable Development
    strengthen the need to engage with stakeholders.

10
From AccountAbility
  • has stated that
  • the right to be heard by people who are affected
    by an organisations activities, or who can
    affect an organisations activities and obliging
    the organisation to respond to these concerns,
    makes organisations perform better.

11
Why do companies engage with stakeholders?
Development of electricity networks, and their
maintenance and refurbishment - can affect
communities crossed by the networks
12
Why do companies engage with stakeholders?
  • Development of electricity networks, and their
    maintenance and refurbishment
  • - can affect communities crossed by the networks
  • can have an impact on the natural environment,
    landscape and cultural heritage
  • and generates community interest in the
    utilitys activities

13
Objectives of the Working Group
  • Stakeholder engagement and consultation
    strategies adopted by electricity utilities
  • Focus on involvement and engagement rather than
    Communication
  • Assist electricity utilities to develop more
    effective consultation and engagement strategies
  • Through asset lifecycle of project
  • Covering electricity generation, transmission
    distribution
  • All within the Sustainable Development agenda

14
Sources - bibliography
THE STAKEHOLDER ENGAGEMENT MANUAL Volume 1 and 2,
2005 AccountAbility, the United Nations
Environment Programme, and Stakeholder Research
Associates
Get Connected
Guidelines for Stakeholder Dialogue The
Environment Council
Effective Engagement in the EU
Consultation Models for Overhead Line
Projects Technical Brochure October 2004
Stakeholder Engagement Standard
Community engagement in planning exploring the
way forward Final Report of the INTERREG
IIIB Advocacy, Participation and NGOs in Planning
Project
15
Definitions
Communication Information-sharing but generally
through one-way, non-iterative process. Consultati
on a dynamic process of dialogue between two or
more parties that leads to a decision. Ongoing
exchange of views and information. Not a one off
event. Engagement An organisations efforts to
understand and involve stakeholders and their
concerns in its activities and decision-making
process. Stakeholder Any group or individual who
can affect, or is affected by an organisation or
its activities.
16
Different levels of engagement
  • Informing people (Awareness raising,
    communication, education)
  • Consulting people (Obtaining feedback, gauging
    opinion)
  • Involving people (Contributing ideas, identifying
    priorities, developing vision/aspirations)
  • Acting together (Partnerships)
  • Empowerment (Stakeholder-led decisions)

17
Survey mechanisms
  • Online questionnaire
  • Confidential
  • Open and tick boxes type of questions
  • Quantitative and qualitative Analyses
  • Focus on reaching the right representatives
    within the utility
  • Cover as many countries as possible

18
Questionnaire content
Stakeholder Engagement and Consultation
Strategies
  1. Policies, Drivers and Legal Obligations
  2. Stakeholder Coverage and Identification Process
  3. Approaches to Consultation and Engagement
  4. Current Methodologies, Practices and Processes
    Used
  5. Engagement Management and Implementation
  6. Experiences, Impact and Benefits of Engagement
  7. Best Practices Development Key Constrains,
    Challenges, Areas for Improvement, Moving Forward.

19
Which Country?
Number of responses per country
20
Survey results findings
  • 50 Responses
  • 39 Final responses
  • 11 Incomplete
  • 61 Registered on the website
  • We are using the 39 final responses will give
    us greatest insight.

21
About the companies
22
Main activity sector covered
23
If generation what is the type?
24
Organisations policies
92 have published an Environmental Policy
Other responses Quality policy Heath and
Safety policy Ethics and Behaviour Code Business
principles Framework for Responsible Business
25
Consultation in different stages of projects
26
Legal requirement or voluntary basis?
62 - Legal requirement depending on the scale of
the project
31 - Legal requirement for every project
23 - Legal requirement only if the project need
a formal Environmental Statement/EIA
27
In summary
  • When undertake Consultation
  • Requires formal Environmental Statement/EIA
  • Legal requirement
  • Very Large projects
  • Developing policies
  • Small projects
  • Main Drivers
  • Legal obligation (87)
  • Reputation, values and ethical issues (87)
  • Seeking views to influence design (28)

28
Engagement beyond legislation
  • Good Stakeholder Relation
  • Reputation
  • Customer Focus and Loyalty
  • Build Trust
  • Secure Licence to Operate
  • Less Opposition, Gain Public Acceptance

Public have the right to be heard...
29
Measurement and impact of consultation
engagement approaches
Does the organisation report back to stakeholders
and community about responses received and how
the consultation process influenced policies and
practices?
Yes No
Yes No Is this a legal
obligation?
30
Who is consulted?
  • Legal
  • Local Government
  • National Government
  • Regulatory agencies
  • Land owners
  • Affected communities
  • Informal
  • Media
  • NGOs
  • Politicians
  • Other utilities

31
Effectiveness of consultation tools
The most effective Individual face-to-face
meetings Community meetings Dedicated
website Support from external experts
Tools used less Radio Web-based surveys Phone
enquiry number
?
?
?
?
?
?
?
32

Constraints to consultation
33
Special processes for problems
  • Translate into other languages use translators
  • Use local contacts as much as possible
  • Use people with local knowledge
  • Keep words simple avoid technical words
  • Start early!
  • Concentrate on critical stakeholders
  • Set clear objectives areas open to Influence
  • Be open about difficulties/constraints

34
Special processes for problems
  • Get NGOs to provide assurance
  • Individual consultation with the most complex
    consultees
  • Allocate special budget
  • Use independent expertise (e.g. workshop
    facilitators)
  • Produce additional material specific public
    meetings
  • Focusing the dialogue on the main issues of
    concern

35
Considered important
  • Provide as much information as possible, targeted
    and tailored to suit particular stakeholders
  • Start consultation as soon as possible
  • Offer project-related documentation for scrutiny
  • Ensure the need for the project is robust
  • Undertake project stakeholder mapping as soon as
    possible
  • The EIA preparation involves consultation
    (Overwhelming!)

36
Views about engagement
  • Agree/Strongly Agree
  • Some objections at Public Inquiries occur through
    misinformation and rumour
  • Its important to allow full disclosure at all
    levels, be open, honest and responsive
  • Its essential to maintain cooperation
    constructively over time and to continually
    consult on existing assets in order to build
    long-term relationships
  • Usually during the consultation process trust is
    built, not destroyed

37

Views about engagement
  • Disagree/Strongly Disagree
  • Stakeholder consultation is reactive response to
    community opposition
  • There is a positive correlation between the level
    of community consultation and the level of
    community opposition
  • Stakeholder consultation can end up being a
    process of informing consultees, without real
    scope for influencing

38
Challenges
  • EMF/health Issues
  • Explaining the need for the project / project
    rationale
  • Manage expectations of communities
  • Engage the extreme opposition e.g. Greens,
    Radicals
  • Difficulties in overcoming misinformation and
    cynicism regarding the organisations intentions
    and approach
  • Initial disinterest or ignorance in the early
    stages of the project, followed by strong
    opposition at the point of submitting an
    application
  • NIMBY attitudes

39
Does engagement provide strategic direction for
the utility?

YES! YES! Important aspect of maintaining
Licence to operate Essential to have public
support It is our responsibility to guard the
interest of the community
40
Advice - effective engagement
  • Asking has to come before deciding
  • Do not use consultation in order to justify the
    project
  • Do not mix up selling and asking
  • Integrate consultation and involvement in project
    decision-making
  • Manage the expectations of all stakeholders -
    clearly state aspects stakeholders are able to
    contribute to or influence, and the aspects of
    the project that are fixed
  • May need to build the capacity of stakeholders
  • Do not forget voiceless

41
Advice - key principles for engagement
  • Understand your stakeholders
  • Start early in the process
  • Create an open process
  • Use a mix of Methods be flexible
  • Have feed in and feedback loops in place
  • Enable constructive debate
  • Monitor and Evaluate
  • Engagement must be genuine and meaningful

42
Advice - engagement principles
  • Materiality knowing what is important to you and
    your stakeholders
  • Completeness understanding your impact and what
    people think of you
  • Responsiveness demonstrating an adequate
    response to stakeholder views

43
Conclusion
  • Meaningful stakeholder engagement is an essential
    part of building a Sustainable Society So
    its important to get it right!
  • Utility companies are working for the benefit of
    society
  • So we have to listen to society
  • Stakeholders People

44
Thank you!
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