Ceip_social Impact Assessment

Social Impact Assessment Guidelines for Community of Practice

Community Engagement February 2007

1

Table of Contents I.

Introduction A. Vision for Social Impact Assessments B. Users of Social Impact Assessment Guidelines C. Uses of Social Impact Assessment Guidelines

II.

What is a Social Impact Assessment? A. What Issues are Covered in an SIA? B. SIAs and Their Relationship to EIAs and HIAs C. SIA Methods and Tools

III.

The CIEP/ESHIA Process A. Elements of ESHIA B. Linkages to the CPDEP C. Principles of SIA D. When SIA is in scope/out of scope

IV.

Why do a Social Impact Assessment? A. Risk Management and Decision Making B. Business Value C. ESHIA Requirement

V.

Components of a Social Impact Assessment

VI.

Five Steps in a Social Impact Assessment and Some Tools A. Screening B. Scoping C. Impact Assessment D. Stakeholder Engagement E. Management Plan

VII.

Outputs From A Social Impact Assessment A. Participatory Monitoring System B. SIA Report C. Uses of SIA Report

VIII.

Resources for Conducting a Social Impact Assessment

2

I.

Introduction

Chevron International Exploration and Production approved a new standard requiring Environment, Social, Health Impact Assessments (ESHIA) for all capital projects. Chevron Corporation has also adopted a similar process. PGPA’s Corporate Policy Group has developed guidelines and supporting resource materials on the Social Impact Assessment portion of ESHIAs for use by the PGPA Community of Practice (CoP), in both corporate and the business units, and others involved in helping CIEP and the corporations meet the requirements of this new standard. This document sets forth the key definitions and guidelines for conducting Social Impact Assessments (SIAs), and references other resources that are or will be available to support implementation of the CIEP ESHIA requirement. SIAs support Chevron’s corporate responsibility work through the early identification of potential project-related social issues and mitigation alternatives so that these may be addressed in project design and operational decisions and practices to minimize potential negative impacts and enhance positive impacts, given available resources. In addition, SIAs provide useful data for effective community and stakeholder engagement throughout the full project lifecycle.

A. Vision for the Social Impact Assessment (SIA) Guidelines Our vision for these guidelines is to develop common understanding among Chevron’s PGPA CoP on the Social Impact Assessment (SIA) component of CIEP’s and corporate’s Environment, Social, Health, Impact Assessment (ESHIA) process. Project managers can refer to the SIA to determine if their plans and actions consistently enhance positive social impact. In cases where there is potential for negative impact, an existing SIA could alert managers in advance, or the conduct of an SIA could result in avoiding or constructively addressing potentially negative impacts. When unintended consequences occur as well, SIAs can provide important information about which groups might be most affected and identify points for intervention to address those issues.

B. Users of the Social Impact Assessment Guidelines The guidelines have been developed specifically for use by the PGPA CoP. However, they are also relevant to other project team members (e.g., technical project managers, HES and ETC professionals, and operations managers) who might have responsibilities for involvement with some of the social issues identified in a project (such as land acquisition). SIAs can benefit many parts of Chevron at corporate, business unit and community levels. While the principal thrust of the guidelines is to assist the PGPA group, project managers and all personnel associated with operational decision making can use the information from SIAs to reduce operational risk, to address or mitigate potentially negative impacts, and to appropriately address any impacts that may occur.

3

The guidelines provide PGPA CoP and other users with the following: •

• •

Definitions ESHIA ESHIA is an integrated process to identify and address, logically and consistently, the potential project related environmental, social and health impacts in a single process.

General information about a SIA and its linkages to existing Chevron processes and systems, especially ESHIA and CPDEP. Definitions of key terms associated with SIAs. A sample of tools and techniques used in SIAs.

Stakeholders “Those who affect, are affected by or have a legitimate interest in Company’s activities and business decisions.”

The Corporate PGPA staff is developing other resource materials on SIA that contain more details more details about the SIA process and associated tools.

Impact Assessment “The processes of analyzing, planning for and managing both positive and potential negative, intended and unintended, impacts of our projects.” These assessments evaluate impacts and develop appropriate mitigation measures.

Depending on the local governments’ requirements, the regulatory framework, investor requirements, and project considerations, the ESHIA team might choose to perform a SIA internally or might engage, academic or research institutes or other experts or consultants to conduct the entire SIA or portions of the work.

Social Impact “An impact by a project on a person or group of people, whether physical, visual, psychological, cultural or economic, or on a social structure, lifestyle, or opportunities of affected communities.” The social impact looks more at human impact as opposed to impact on the physical or natural environment.

The use of third parties in the process is appropriate when it enhances the quality of data, access to parties with relevant information, or the credibility of the process. Use of outside SIA practitioners in the process generally should be combined with reliance on the expertise of local company subject matter experts.

Social Impact Assessment The processes of analyzing, planning for and managing both positive and , potential negative, intended and unintended social impacts that may reasonably be anticipated to result from the company’s activities. Social Impact Management Plan A plan that details activities through which the mitigation and enhancement measures will be incorporated in the project design, construction and operations.

4

C. Uses of SIA Guidelines •

These guidelines are directed at PGPA CoP (both Corporate and Business Unit staff) who may or will be involved in: • • • • •

•

•

•

•

•

•

•

Deciding when and where an SIA should be undertaken; Considering the scope of an SIA, what it should cover and the resources that may be required; Engaging external support for completion of the SIA – either the whole SIA or specific portions; Managing the SIA process from the Business Unit; Integrating SIA findings into project management systems; Producing SIA results that are fit for purpose and can be feasibly incorporated into the day-to-day activities of the operation throughout the project lifecycle Using the SIA baseline data to develop initial goals and ideas on potential Community Engagement (CE) and other initiatives; Engaging the community in appropriately detailed and participatory community needs assessments to inform the design of the stakeholder engagement strategy and community engagement programs; Using CE initiatives and investments as additional tools that may enhance mitigation of specific potential project impacts; Beginning CE initiatives in local communities as early as appropriate for maximum effect; if feasible, prior to the commencement of construction. Identifying specialized training and capacity building needs and opportunities within Chevron’s team to ensure effective attention to complex social issues that might be present; Participating in specific activities identified in the project design and implementation plan to support the

development project as work proceeds; Participating in the development and implementation of a stakeholder engagement strategy and plan to ensure ongoing proactive interaction with community stakeholders as part of the project’s ongoing operations.

Definitions Screening “Screening is a high-level evaluation based on a detailed checklist to determine if the project may involve potential social impacts.” It determines if an impact assessment is required. Scoping “The process that provides the background information necessary to design the SIA process in detail and to determine the nature and scope of specialist studies that may be required”. It identifies issues to be addressed and assesses the appropriate scale. SIA Report Formal documentation of the SIA process and outputs. Impact Management Specific management plans and mitigation actions to address potential social issues identified in the SIA.

5

II.

What is a Social Impact Assessment (SIA)?

A social impact assessment (SIA) is the process that identifies and evaluates the potential impacts of a project on local communities to minimize negative and enhance positive impacts. Data gathering, analysis, and stakeholder consultation and engagement are key components of the SIA process. A SIA contributes valuable information to project decision makers so that features and modifications can be incorporated into design, construction and management to avoid or mitigate potential negative impacts and any positive benefits of the project.

A. What issues does an SIA consider? SIAs may cover potential impacts on a broad range of issues, such as:

• • • • • • •

• • • • •

Availability of, and access to food, and the extent of food security Shelter - availability, access and quality Ability to earn income, financial and non-financial, livelihoods, employment, access to markets Assets and resources - physical and non-physical, such as social networks, skills, technology Infrastructure - roads, electricity, potable water, sewage systems, phone lines Capacities - organizational, communication Family structure and inter-dependence Relationships among groups Local views and perceptions about the company Traditions - beliefs, cultural and faith based practices, including those held by certain groups such as ethnic minorities or women, and identified in national laws or regulations Cultural property - archaeological sites, burial grounds Availability of and access to schools, health services, higher education, Internet

A potential social impact may be: • Direct - e.g., creation of jobs as a result of company’s project; • Indirect - e.g., shortage of teachers in villages as they can earn more money working in company offices; • Positive - e.g., businesses enjoying increased revenues from contractors passing through the area; or • Negative - e.g., shifting workforce away from the agricultural sector thereby impacting food supplies. • Planned - e.g., community relocated to a better location as land is taken for a pipeline or refinery); men and women in village received employment on a project • Unplanned - e.g., impact of migration as a result of the company’s presence; land clearing, including trenches,for pipeline or refinery that poses a danger to livestock. Potential social impacts may also be: • Cumulative – e.g., impacts of the project combined with impacts from other sources/projects on the same communities; • Permanent - e.g., short or long term;

6

•

Individual/household or community, local, national or sometimes global or transboundary – e.g., cross-border migration of people or pollution; or • Residual – e.g., remaining once all mitigation measures are in place. Finally, social impacts may be:

• •

Immediate – e.g., as a direct result of the project; or Future – e.g., resulting from the project, but where the effects are delayed or temporarily hidden by some other factor.

SIAs also include an understanding of macro level influences on local communities, such as national regulations concerning labor, elements of international standards, such as IFC’s social safeguards for the extractive industries, and applicable laws and company policies.

B. SIAs and their Relationship to EIAs and HIAs Health, Environment and social impacts may often be closely tied. However, each places a different lens on the data, and each identifies risks, which in turn may overlap. The SIA lens considers impacts such as socio-economics, culture, beliefs, values, social organization, leadership, institutions. Efforts should be integrated as much as possible so that joint risk factors are identified and efficiently mitigated. The overlaps among HIA, EIA and SIA also include the types of data they use. Demographic data, for instance, are generally relevant and useful to all three components of an ESHIA. While SIAs may draw from much the same data as EIAs and HIAs, they view the data with a social lens. The particular focus of the SIA for which employment data is relevant are on questions such as the following:

• • • •

• • •

Are there identifiable groups in local communities that are not employed? How do work schedules affect existing household patterns of livelihood? How does the distribution of income affect local economics? Which groups have access to sub-contracts, and which do not? Are certain groups, such as ethnic minorities or women as well as those identified in national laws or regulations, subject to inequalities which may be exacerbated or ameliorated by Chevron’s operations? How might the company’s presence affect formal and informal sources of authority locally? What is the likelihood of in-migration as a result of the company’s presence? How might that affect employment options and livelihoods of the existing population?

C. SIA Methods and Tools SIAs use a variety of tools drawn from action research, such as participatory needs assessment, participatory rural/rapid appraisals, livelihood systems analysis and gender analysis. SIAs use qualitative and quantitative data. Because of the breadth of issues and the importance of perceptions, SIAs usually involve collection and analysis of qualitative data. There are well-established methods for qualitative data analysis, which can generate credible results when participatory techniques are used. Following are some of the ways in which participatory approaches are distinct from conventional approaches:

7

•

•

• • •

Statistical analysis is often a major part of conventional studies. Participatory approaches emphasize analysis that can be understood by stakeholders, so relies more on triangulation. Care should be taken to assess qualitative descriptions and diagrams, which are often not considered “hard data” in conventional studies, as their interpretation could be subjective. Participatory methods draw broadly on local knowledge as well as knowledge held by outside experts. Participatory methods involve continued action, including monitoring, long after the study is complete. Results of conventional studies are often inaccessible to local communities. Participatory processes ensure results are shared with stakeholders in an understandable format.

A sample of SIA tools, emphasizing participatory approaches is available through SIA Training material and other resources developed by Corporate PGPA staff. Nevertheless, SIA teams shall include individuals with knowledge of and experience in using participatory methods for data collection, analysis and reporting. Skills in analyzing qualitative data are also essential for SIAs.

III.

ESHIA Process Overview

The ESHIA process is designed as part of Chevron’s Operational Excellence management system, to logically and consistently identify potential project-related environmental, social and health impacts. Chevron’s ESHIA process meets several objectives beginning with achieving compliance with applicable laws and regulations while also satisfying applicable Chevron standards. The ESHIA process seeks to protect human health and the environment in accordance with the Chevron Way. The intent of this process is to eliminate or minimize potential short and long-term negative environmental, social, and health impacts related to Chevron operations. The ESHIA process also provides greater understanding of community needs and expectations, and some plans to deliver sustainable community benefits. Finally, the ESHIA process strives to build standardized knowledge and capability within Chevron, and to promote internal consistency and efficiency between project phases and among different projects.

A. Elements of ESHIA An ESHIA contains four major components, as follows:

• • • •

Environmental Impact Assessment (EIA) Health Impact Assessment (HIA) Social Impact Assessment (SIA) Stakeholder Engagement

8

ESHIA Process Environmental Findings, analyses and Plans

Social Findings, analyses and Plans

Health Findings, analyses and Plans

Integrated ESHIA Mitigation Management and Monitoring Plan

B. Linkages to CPDEP As part of the ESHIA process, the Social Impact Assessment also follows the CPDEP phases. Stakeholder engagement and resulting issues, expectations and perspectives are prominent in an SIA throughout the CPDEP from phase one through four. An SIA can inform the preparation of the Social Impact Management plan in CPDEP phase 5. At this phase, a monitoring strategy should be part of the management plan so the mitigation and optimization measures are implemented, monitored and enforced. In some cases, the management plan can also contribute to the identification of new issues in a timely manner.

Phase 1 Opportunity

Phase 2 Develop Alternatives

Phase 3 Develop Preferred Alternative

Phase 4 Execute

Phase 5 Operate & Evaluate

Assign ESHIA facilitator and ESHIA legal advisor

Screening

Scoping

Impact Assessment Stakeholder Engagement

Management Plan

Detailed steps of the integration of an SIA into the CPDEP are provided in Section VI.

9

C. Principles of SIA The ESHIA process outlines several guiding principles for the design and conduct of SIAs. These guiding principles improve the SIA outputs and overall value:

•

•

• • • • •

•

Focus your assessment. For each impact assessment, scoping shall be undertaken so that the impact assessment is “fit-for-purpose” and “scaled” according to potential project impacts. Baseline and other studies shall be limited to those required to understand the reasonably anticipated project impacts and to provide quality information used in decision making; Identify and use participatory methods; Involve the diverse public – identify and involve all potential affected groups/individuals; Analyze impact equity – identify who will benefit (“win”)and who will potentially suffer adverse or negative impacts (“lose”); Provide feedback on potential social impacts to project planners and to local and business stakeholders; Use skilled SIA practitioners. Outside resource people, consultants and organizations engaged for services may be used to train local staff in conducting and monitoring SIAs; Establish monitoring and mitigation programs; and Use multiple data sources. Combine direct engagement with reliable reports and analyses conducted by others, including other Chevron business units, other oil and gas operators and industry associations.

D. In Scope and Out of Scope SIAs are a requirement of the OEMS under certain conditions. The table below outlines CIEP’s ESHIA guidelines for what is in and out of scope for SIA:

S. # 1

In scope

Out of scope

2

All new capital projects unless specifically excluded. Onshore and offshore seismic projects

3

Drilling of exploration wells

4

Drilling of delineation/appraisal and production wells as part of major capital projects Any project of any size for which an impact assessment is required by the company’s policies, local or national legislation, regulation, or an international financial institution engaged in financing the project.

5

6 7

Security impacts, risks and studies Acquisition or divestment of property, licenses, acreage, or facilities (addressed by corporate property transfer standard) Existing operations (addressed within other OE processes) Routine maintenance

Like-for-like changes in equipment or facilities Delineation and projection wells unless part of a MCP Well workovers and suspensions Any project which is already covered by a previous impact assessment which is still valid

8 9

An ESHIA may be performed for an out of scope activity, with the exception of security issues, at the SBU management’s option.

10

IV.

Why conduct a Social Impact Assessment?

A. Risk management and decision making SIA is a key risk management and a decision making tool, allowing the project design teams to make design decisions with a broad understanding of the potential implications that can reasonably be anticipated for local communities. SIAs also provide information to the project management team to assist in making decisions regarding resource allocation for community relations, addressing potential social issues as well as potential impact management throughout the project life cycle. SIAs provide important information that the project team and stakeholders can use to consider alternatives to avoid or mitigate potential negative impacts and maximize benefits, thereby reducing the need for costly redesign efforts or crisis management resulting from unanticipated social issues. SIAs should be scaled, fit-for-purpose and may address questions such as those below, which may have operational, financial and reputational consequences:

1. What are potential socio-economic, community engagement, business, financial and reputational opportunities that can be enhanced?

2. What are the potential social risks and how they can be mitigated? 3. Will the project impact local communities? What is the nature of these impacts? 4. In what ways can local communities affect the project? Are there local links to national or international networks, including diaspora communities, which may have an interest, legitimate or not, in Chevron’s operations? 5. Are there broader social impacts that should be considered beyond the local level? If so, is it a project issue, or should OPCO/Corp. become involved? 6. What are the expectations, perceptions and concerns of various elements of local communities and others interested in the project? 7. Who might benefit from the project, and who may potential be negatively impacted? In particular, who are the most vulnerable stakeholders, and to what extent can they adapt to the potential changes brought about by the project?

B. Business Value Social impact assessment and social impact management are only fully effective when closely integrated into project design, planning and operations. They add business value by:

• • • •

Understanding and reducing or eliminating potential negative impacts and issues that could add costs, cause delays, jeopardize safe operations, damage relationships, or damage reputation; Yielding better informed decision-making and resource utilization due to improved use of resources, greater project efficiency and, where possible, enhanced project acceptance by stakeholders; Enhancing economic efficiency and early identification of project risks and opportunities; Reducing regulatory risk;

11

• • • •

Establishing and improving relationships, building trust, increasing confidence with local communities, enhancing potential benefits to them as well as the company’s reputation; Enhancing the company’s or its partners’ ability to secure financing, if applicable Improving full life cycle project value; and, Providing the basis for on-going monitoring of social issues throughout the project life-cycle.

Undertaking the SIA early in the project allows critical changes to project design, including construction schedule, to be undertaken if necessary. The SIA done during the construction phase is less than ideal, but can still provide useful guidance to the project team to anticipate and avoid or reduce potentially negative impacts, while enhancing positive social impacts. At any point, SIAs can provide the necessary foundation for ongoing relationships with internal and external stakeholders. A modified social impact assessment may be undertaken for existing operations, where no SIA was undertaken during the design phase, but where there is a need to understand the potential project impacts and the socio-economic profile of the surrounding area to assist with community relations issues management. In addition, SIAs can be conducted and used to enable strategically focussed investment programs. Doing so also provides useful feedback on the effectiveness of existing management systems and mitigation measures.

C. ESHIA Process Requirement for SIA The ESHIA process outlines the following requirements for the SIA:

1. The SIA process shall be integrated early into project decision-making, including the evaluation of project alternatives.

2. Screening shall be undertaken to determine whether the project under consideration may 3. 4.

5.

6. 7.

8.

have potential social impacts and to determine whether an impact assessment is required by law, regulation or OE. Local and business stakeholder engagement shall be an ongoing activity over the life of the project. For each impact assessment, scoping shall be undertaken so that the impact assessment is fit-for-purpose and scaled according to potential project impacts. Baseline and other studies shall be limited to those required to understand the project impacts and to provide quality information used in decision making. When required by screening, impact assessments shall be undertaken to assess the potential social impacts of a project in a formal, structured manner. These impact assessments shall identify measures to enhance positive impacts and to mitigate any negative impacts. Risk management process tools shall be used to determine significance of impacts, unless regulations dictate otherwise. SIA management plan shall be approved by project and SBU management to achieve compliance with permit conditions, fulfill related commitments made by authorized representatives of the company as recorded in the impact assessment, and to communicate these items to the construction and operations personnel throughout the life of the project. SIAs would be included in ESHIA’s audit process to verify compliance with the approved ESHIA management plan.

12

V.

Fundamental Components of an SIA

Each SIA is slightly different according to the circumstances of the project and the context in which it is being developed. Baseline and other studies shall be limited to those required to understand the reasonably anticipated project impacts and to provide quality information used in decision making. Thus, the explanation column addresses baseline conditions. Actual changes in these issues from the time of the baseline may or may not reflect the expectations of change based on the baseline. Both issues and measures to avoid or mitigate the potential impacts must be recorded in the social impact assessments and monitored over the life of the project, through the management plan. General issue areas in SIAs Demographics

Social and political issues

Health

Livelihoods

Broader Socioeconomics

Services

Infrastructure

Explanation Population size and structure; age profiles; gender profiles; vulnerable groups; minorities/tribal structures; migration/immigration; social cohesion; lifestyles; religions; languages; values; quality of life; cultural practices and customs; openness to change; likely reactions to the new. Note expected changes if there is to be any resettlement, and monitor through impact management plan. Record social groupings; identify local sources of authority—formal and informal. Identify social structures, social and economic inter-dependencies among groups and expected change as a result of exposure to Chevron’s activities; levels of access to remote areas and to communications technology; conflicts, current and historical, among stakeholder groups, existing values or beliefs and/or local perceptions of social exclusion and inequality. Health and social elements may be closely tied. Details of health issues are studied in health impact assessment (HIA), which may be done independently depending upon the project. Social issues related to health and environment may overlap and can be identified and addressed through the integrated ESHIA impact management plan and risk management tools. In addition, ongoing coordination is required during the SIA process, to increase efficiency. Record employment; wages; skills; education; revenue sources, disparities in social and economic conditions, savings and debts; subsistence; access to markets; natural resource use/reliance; land ownership structures, land use patterns and practices; seasonal issues. In SIA note expectations of change in local livelihoods patterns as a result of reduced or increased economic activity, land take, impacts on local resources required for local livelihoods, including waters and fisheries, agricultural usage of land, forestry. Economic exclusion, such as women’s lack of access to credit. Note local businesses and supply chain; benefit streams, revenues, tax revenues and flows, where they are going and how they will be distributed and used; impacts on the local economy such as boom/bust, temporary inflation and its ramifications for the local community; Includes identification of particular groups (example, women) associated with specific products or services (example, drying fish) and reasonably anticipated potential positive and negative impacts on their livelihoods. Local government structures and decision making/ leadership; extent of local service provision including fire, police, health services, education, and garbage collection. Assessing the ability of local government structures to undertake the same. Identify potential burdens on and benefits to key services such as garbage collection, fire, police, education and health services as a result of Chevron’s operations. Extent/quality of local infrastructure available including schools; roads and transport; energy; water; commerce and industry. Note increased burden on schools; roads and transport; energy; water supply by both company activities and potential in-migration; Assess impact of the introduction of infrastructure (roads, power cables) on communities, and differential impact among communities and between groups.

13

Cultural Property and Customs Expectations

Perceptions Indirect social impacts

Archeological sites; burial grounds; religious monuments/sites; historical sites; other cultural sites; cultural activities and observances, the reasonably anticipated influence of new ideas; Expectations that identified internal and external stakeholders, individuals and organizations have of the project and its potential impacts. Expectation management in local communities is a major part of the process, especially in regions with little industrial development and generally few opportunities. Perception of impact is often as important as a real impact in terms of both of its effects on an individual and on the ability of the company to deal with it. Some social impacts may be indirect. The further removed from the project, the less likely it is that an impact can be anticipated and, in turn, mitigated. Nevertheless, at least some indirect impacts can be anticipated and planned for.

The social impact baseline should be limited to geographic areas and socio-economic issues that probably will be impacted by the project. In the case of a project expansion, past impacts must also be considered since these may affect stakeholder perceptions and receptivity to the development and may also affect the types of mitigation measures will be effective. Past impacts will also usually have a major effect on the relationship with and expectations of the locally impacted communities in relation to the new project. When SIAs are conducted after a project is already underway, existing baseline data and the existing impact management plans may be used to develop an analysis that can compare changes in the issue areas identified above.

VI.

Five Procedures in a Social Impact Assessment

A SIA is undertaken through a five-step process consistent with the five procedures of ESHIA. These five steps are: 1. Screening – determine if impact assessment is required 2. Scoping – identify issues to be addressed, special studies to be conducted and determine appropriate scale 3. Impact Assessment – evaluate potential impacts and develop mitigation and enhancement measures 4. Stakeholder Engagement – obtain and consider input from key stakeholders, communicate SIA outputs and plans, and engage through project lifecycle 5. SIA Report and ESHIA Management Plan – link to construction and operations so that SIA outputs are implemented and put into operation

Procedure One: Screening Screening is a high-level evaluation to determine if the project and alternatives under consideration may involve potential social impacts. The screening process results in a decision on whether an impact assessment is required. Screening provides a broad overview of issues that may have potential implications to project alternative selection, cost, schedule, design, construction, operations, or logistics. One of the main purposes of the screening process is to identify external social risks to the project at an early stage. An external social risk is a risk to the effective management of the operation or facility resulting from a negative response by a person(s) or organization(s). Common Activities in Screening:

14

• • • • • • •

Compile project description: include current social conditions and stakeholder engagement activities; applicable laws, regulations, standards. Review baseline information from reliable secondary sources, such as other Chevron entities, other oil and gas operators, and industry associations. Identify potential stakeholders and potential impacts. Use the ESHIA screening/scoping checklist. Develop draft stakeholder engagement plan. Use the ESHIA Stakeholder Engagement Flowchart. Identify insurmountable impacts, i.e., they cannot be avoided or mitigated from a project financial standpoint. Determine whether full SIA is required. Use ESHIA risk management process tools. Prepare the report.

At this most preliminary stage reliable and credible secondary sources can provide information about the relevant people, places, deeply rooted historic issues as well as current issues and politics. Recent media, NGO and development agencies activities can provide information about organizations currently active and potentially interested in the proposed area of operations. With this information and meetings with key stakeholders, a preliminary list of stakeholders and a draft stakeholder engagement plan may be developed. Secondary data at this stage may be relevant to the EIA, SIA and the HIA. Demographic data, for instance, are likely to be required by all three assessments. Coordination at the early stages can prevent redundancies in data collection and establish an ongoing framework for integration. If an EIA, SIA and HIA are being conducted over the same period of time, it may be helpful to identify points where data collection exercises may be shared, such as with basic demographic data. Common sample Tools: Desk research—review reports, records, existing baseline data collected by others, media reports and any other documents that provide information about the people, their politics, history and economy. Information should be collected from reliable and credible sources. Direct observation—if a visit to the site is possible, a transect walk through relevant terrain, such as a field, a town center, market place, or other places where people gather, to observe and have informal conversations. As a technique, direct observation can be broad or narrow. Depending on the context, observe how people are socializing, what they are eating, buying, how and where they are working; who is doing what, etc. Informal conversations with a farmer may include questions about what s/he is growing, who helps at what stages, who buys the product, etc. Direct observation is best when it is focused and scaled. For instance, if the company’s trucks will be using the main road, the company may choose to improve the road, but what impact will the additional traffic have on current activities in the area? Are there women vendors on the sidewalks? Are there children playing near the women? What will be the impacts of additional noise, dust, vehicles and additional customers?

Procedure Two: Scoping Screening indicates whether scoping is needed or not. The scoping procedure determines the potential socio-economic issues to be addressed so that the impact assessment is fit-forpurpose and scaled according to potential project impacts. It provides the background information that is necessary to design the SIA process in detail, and to determine the nature

15

and scope of specialist studies required. Resources required to undertake the impact assessment are estimated in scoping. Scoping is also used to inform selection of the preferred alternative. It allows Design Contractors to be aware of regulatory and stakeholder needs with potential to impact project schedule, design, operations or logistics. Common activities of Scoping procedure: • • •

• •

• • •

• • • •

Develop an outline project description and focus for the SIA Identify the core team that is to work on the SIA and develop a plan for the SIA process. Develop terms of reference for specialist studies and primary data collection; use participatory techniques. Identify data needs and gaps, design logistics and plan for primary data collection and methods of analysis. Review national legislation and international guidelines. Identify and profile potentially affected communities, groups who may be subjected to social or other inequalities, including those identified in national laws or regulations; Identify languages needed within the team, literacy levels, gender issues and other relevant factors. Identify and classify internal and external stakeholders. Hold initial formal and informal discussions with the identified key stakeholders. Conduct stakeholder engagement. Develop a work plan with Terms of Reference (TOR) and budget for SIA. Develop a scoping report.

Following are a sample of tools that may be used for collecting data required in the SIAs. Sample Tools Semi-Structured Interviewing:

Uses Helps identify key issues and priorities among different groups of people.

1. Individual Interviews

1. Reveal a range of attitudes, behavior and opinions, as well as existing conflicts.

2. Key Informant Interviews

2. To get informed opinions about knowledge and behavior of others, as well as overall view of how things work in a community.

2. Interviews with specialists (example, teachers) who can sometimes give an objective view.

3. Group Interviews and Discussions

3. For information that is not sensitive; to have access to the knowledge of many people at once. 4. Clarify issues, develop workable ideas for mitigation and enhancement To gain an understanding of how different groups of people use their physical environment.

3. Facilitated discussion with 2025 people.

4. Focus Group Discussions Mapping

1. Social maps

1. Show where different groups of people live. Combined with wealth ranking, can show where poorest

16

Description Not a formal questionnaire, but a short checklist of questions, with interviewer option to probe. 1. Cross-section of people interviewed on the same topic.

4. A small group of people (6-12) with specialized interest and/or knowledge of a particular issue. Draw maps in groups asking individuals to describe how they use different areas in and around their community. 1. Literally draw a map with a group that shows who lives where.

2. Mobility maps

households or different ethnic groups live. 2. Record movement of people—in and out migration; indicator of contact with outside world.

3. Seasonal calendars

3. Identify activities during different times of year.

4. Time trends and time lines

4. Learn how things have changed over a given period of time or what changes occur over a limited period such as one year.

Oral history

Where literacy skills are low and where it is not possible to access local history in written form.

People are asked to talk about their own lives, which are linked to particular situations (drought, war, famine, etc.). Results in a picture of important events over time.

Listening surveys

To gain an understanding of what people are talking about.

Taking notes in public places, such as fields, buses, listening to what people are saying and grouping by topic.

2. Record families that moved in recently; who was there before, where did they go? 3. Gather data on agricultural and other income generating activities, weather changes, child illnesses.

In addition to these, more conventional tools, such as surveys, may also be used as appropriate.

Procedure Three: Impact Assessment The impact assessment builds on work performed in earlier procedures to evaluate in detail the potential social impacts of a project. At the impact assessment stage, the significance of both positive and negative potential impacts is determined. Appropriate measures are identified to enhance project benefits, to mitigate negative impacts and to monitor the effectiveness of both. These measures are then incorporated into project design, planning and execution. Impact assessment allows design contractors to be aware of assumptions and changes resulting from the impact assessment procedure. The impact assessment could begin in CPDEP Phase 2, immediately following the scoping procedure, and it should be completed before the end of CPDEP Phase 3. Potential impacts may be on individual, family or community, or may be on a region or a nation. Mitigation and enhancement measures should be designed in accordance with the administrative framework governing the project and Chevron standards and policies.. Enhancing potential positive impacts related to the project should always be considered. Common activities of Impact Assessment procedure: The key activities during impact assessment are:

1. Analyze and assess data from screening and scoping to determine what the potential impacts are and on whom.

17

2. Use participatory methods geared toward social analysis such as gender analysis, differential impact calculations, mobility maps, and transects, among others, to assess impact. 3. Ensure that positive impacts are identified so they can be optimized or enhanced. 4. Develop measures to minimize, manage and, as a last resort, to off-set negative impacts. Common sample tools and techniques for the evaluation of impacts include:

• • • • • • • •

Differential Impact Analysis—calculating potential impacts for some groups versus others Capacities and Vulnerabilities Analysis (CVA) Matrix—Identifies physical/material, social/organizational, and motivational/attitudinal capacities and vulnerabilities of different groups. Mitigation measures reduce vulnerabilities and increase capacities. Stakeholder Matrices—Identification and analysis of the problems/interests/capacities of stakeholders and other interested parties. Ranking and mapping tools are particularly appropriate when working with groups with low levels of literacy, and where there is a high degree of conflict among stakeholders. Inequality Analysis—Identifies types of discrimination and sources of exclusion, so mitigation measures are aligned with causes rather than effects. Gender Analysis Matrix—Identifies potential work, time, resource and cultural impacts on different population groups and generates integrated action in response to actual impacts. Livelihoods Analysis—Assessment of local economic impacts, human capital, markets and market access Impact and mitigation tables—identify and characterize impacts, and use to develop mitigation strategies.

Familiarity with a range of such tools makes it possible for the team to choose the ones that best serve each context, and to adapt them appropriately to each context. Each Business Unit would benefit from having or from having access to individuals with expertise in using participatory approaches as part of its long-term strategy of stakeholder engagement. Evaluating Social Impacts ESHIA Procedures describe the following criteria to evaluate the magnitude of potential social impacts and effects: • Disruption of traditional authority, social structures, or local administration • Temporary or permanent immigration from other areas, causing ethnic tension, social conflict, disease transmission and other problems • Increased inequality among residents, and its potential to lead to instability or violence • Potential rise in crime, prostitution, and other social pathology • Changes in traditional land use patterns or access to resources • Anticipated scarcities of housing, clean water, local transportation, and other resources due to increased use by temporary or permanent workers • Potential price increases for food and other basic commodities due to higher demand from project workers without increase in local production • Plans for relocation of households or villages away from immediate project area.

18

Social impacts are not easily amenable to quantification, and determining which ones must be addressed can only be done on a case-by-case basis. The ESHIA process recommends “best professional judgment,” which for SIAs, is agreement reached by the ESHIA team, not one expert. A number of ranking and mapping tools are also available to elicit stakeholder input into discussions of which potential impacts they consider to be. . Mitigation Using the list of potential impacts, the following steps may be used to guide mitigation decisions.

1. Develop mitigation objectives. Commence the development of mitigation measures by identifying the objectives of mitigation, both overall and with respect to individual areas of impact. Address direct long- and short-term impacts and indirect impacts, if they are reasonably assessable.

2. Identify mitigation measures. Identify mitigation measures in consultation with the ESHIA team and key stakeholders in a participatory manner. Off-sets should be the last mitigation measure.

3. Identify and evaluate residual impacts. Residual impacts are those impacts that may remain once mitigation measures are in place. Since it is difficult to quantify social impacts, these should be evaluated using a written description of the issue and the significance of the impact.

4. Identify cumulative impacts. These are the impacts that may affect individuals or communities from the activities on the project together with the activities of other projects. Whilst individuals or communities may not be impacted by any one project, the combination of project impacts may affect their livelihoods or way of life. Where cumulative negative impacts can reasonably be anticipated additional mitigation measures should be considered.

5. Dialogue and consultation on impacts and draft mitigation measures: Dialogue and consultation with internal and external stakeholders is critical to ensure alignment, buy in, trust and confidence among all parties.

6. Implementation of mitigation and enhancement measures: Mitigation and enhancement measures will be adopted into the ESHIA plan, with responsibility assigned for their completion and tracking. While integration of the SIA with the EIA and the HIA is an ongoing process, the conclusion of this procedure represents an important opportunity to check on findings and issues from the other assessments. Identify overlapping issues and stakeholder concerns, and coordinate on mitigation measures. Use this information to inform the next round of engagement with stakeholders.

Procedure Four: Stakeholder Engagement During an SIA, stakeholder engagement should begin as early as the screening process. By the point at which impact assessment is complete, extensive engagement has already occurred. However, it is a continuous process, and in this instance, serves to inform stakeholders of the assessment, steps for optimizing benefits and avoiding or minimizing

19

negative impacts, as well as gathering stakeholder input for consideration in project design and implementation. At this stage, phase four of the CPDEP, stakeholder engagement in the SIA refers to a process of sharing information and knowledge, seeking to understand the concerns and ideas of others and building relationships based on collaboration. Stakeholder engagement is a long-term and continuous process that builds trust through open dialogue and delivery on commitments. A new Community and Stakeholder Engagement OE Process was developed and approved by PGPA, and there are resource materials and training programs available to help support stakeholder engagement specifically in ESHIA and SIA activities and in general business operations. These materials are being made available through the Corporate PGPA staff. Stakeholders on a project may include, but are not limited to, joint venture (JV) partners, local and national government, communities, and investors. Do not forget less visible groups particularly likely to be affected by the project, such as women, children, poor, farmers, local fishermen, small businessmen, unemployed youth or groups subject to social inequalities, including those identified in national laws or regulations. Guiding Principles of Stakeholder Engagement The ESHIA process provides the following principles as guidance for effective stakeholder engagement: •

• • • •

Commitment to explore, listen and understand Inclusiveness, especially attention to groups who may be subject to social or other inequalities, including those identified in national laws or regulations Respect and cultural awareness and sensitivity Transparency, openness and clarity Accountability

Specialized training is required to learn the skills required for effective stakeholder engagement. Usually these include listening skills, awareness of body language and knowledge of the local cultural context. Clarity is needed about the company’s objectives with regard to mitigation and enhancement and the level of stakeholder involvement needed to enhance the likelihood meeting those objectives. Objectives of Stakeholder Engagement Stakeholder engagement should be undertaken early and often during the SIA process to meet some of the following objectives.

1. Identify, understand, correctly assess and address potential impacts 2. Strengthen decision quality by validating assumptions and findings of baseline studies 3. Establish clear and mutual understanding to resolve issues and manage expectations 4. Identify organizations and individuals who may assist in designing and implementing long term mitigation and enhancement strategies 5. Lay the groundwork for mutually beneficial, long term relationships with neighbors and other key stakeholders 6. Build a sense of ownership of community engagement programs contributing to sustainability of benefits

20

7. Collect data that include facts, perceptions and expectations of stakeholders 8. Manage expectations 9. Increase project transparency to provide information about the project and how input from stakeholders and others are included in company decision-making. 10. Meet international requirements and local legislation. Common activities in stakeholders’ engagement procedure Identifying stakeholders through stakeholder mapping: In practice, Chevron aims to engage stakeholders who affect, are directly affected by or have a legitimate interest in company’s activities and decisions, such as regulators, partners, neighbors, community members. Stakeholder mapping is a useful and practical approach in identifying the stakeholders potential impacted by a project or operation. Engagement with them should occur early during the scoping phase and be repeated at appropriate intervals as operating contexts develop. Mapping helps understand the distribution of resources; it should identify where particular groups live and can reduce selection bias for data gathering. Maps can show how different groups use the same area. For instance, a participatory mapping exercise of a particular geographic area with men will likely show a different picture of land use than a similar exercise of the same area with women. Dialogue and consultations with internal and external stakeholders: Identify appropriate techniques, tools and forums to use for stakeholder engagement and plan in advance of the engagement activities. A range of techniques, tools and processes exist to support stakeholder engagement and consultation in an SIA and in ongoing operations. Tools should be selected and adapted to each particular circumstance. Special skills are usually required for selection of the right combination of tools and techniques, and for applying the techniques. Using participatory approaches agree with stakeholders on a mutually satisfactory process for stakeholders to comment on the project, the action plan, and any mitigation measures that are included therein. Enable consultation and dialogue: The process of consultation should consider the characteristics of those being consulted and engaged. Characteristics such as educational levels, level of understanding of the project and technical issues, local power structures, cultural considerations, accessibility, and language can also influence the quality and accuracy of data gathered and can also influence participation in the consultation process. Extra effort is required to overcome barriers that may limit participation of groups who are inaccessible and/or those who may be subject to social or other inequalities, including those identified in national laws and regulations, and to ensure that the consultation and dialogue is gathering important perspectives from stakeholders with such characteristics. Always define a clear agenda for a consultation so that expectations are clear from the start, and so there is respect for the time constraints of others. Children should not be excluded from engagement. Techniques used for working with children include drawings and songs, participant observation, child to child interviews and group interviews.

V. SIA Report and ESHIA Management Plan A SIA report is designed to facilitate inclusion of the recommended mitigating and enhancing measures in the project development and operation. The report should be integrated into the ESHIA Management Plan. The plan details the need and proposed actions with respect to

21

mitigation of identified negative impacts, maximization of benefits in the project design, plans and processes for instituting mitigation measures and optimization activities as the project progresses through construction and operations. The SIA components of the Management Plan should be included in the invitation to tender to contractors to ensure that they understand fully their contractual obligations regarding the implementation of mitigation and enhancement measures. Where this is not possible, clauses need to be written into those contracts in advance relating to this future requirement, which may include training of contractor personnel.

A. Monitoring Plans ESHIA provides for stakeholder engagement. In some cases, an stakeholders can assist us in monitoring whether mitigation and enhancement measures are taking place as agreed to, and as stakeholders expected. Stakeholder engagement in the development of mitigation measures provides an opportunity for identifying indicators and processes for participatory monitoring. Monitoring plans should be flexible enough to capture unintended consequences from operations, enhancement or mitigation activities. The measures included in the ESHIA Management Plan should be included in internal management systems so the mitigation and optimization measures are implemented, monitored and enforced.

B. SIA Report and its Key Components An SIA report formally documents the SIA process and outputs. Such a report may be a regulatory requirement and its submission required for permitting. Stakeholders and others may wish to scrutinize methods used in the SIA and the results, and they may also wish to monitor the project performance against the objectives and anticipated impacts outlined in the SIA. The SIA can be an effective tool supporting project and operational management and also disclosure with stakeholders. The SIA Report is a useful vehicle for ongoing stakeholder engagement throughout a project. Typically, SIA Reports include: • • •

• • •

• • •

Project Description Analysis of Project Alternatives Requirements for review Description of all local, national and international legislation, regulations and standards that apply to the project, the company and the industry Baseline (summarize demographics, relevant social and political issues, health, livelihoods, infrastructure, services, culture, perceptions and anticipated social impacts) Impact Assessment o Primary o Cumulative o Residual Description of issues addressed, Mitigation Measures and Mitigation Tables, benefit enhancement plans Stakeholders’ mapping, engagement and consultation process Description of all of the consultations that have taken place and disclosures required by law, regulations or other legal requirements

In addition to the general outline suggested above, the following can also help to create a report that is useful in decision making even after the ESHIA is complete.

22

•

•

•

Include an easily extractable table that lists issues and mitigation measures to which the company has agreed, associated activities, and timeline. Similarly, a table of activities that will optimize benefits should be available so that positive relationship strengthening activities are not ignored while potential negative impacts are being mitigated. When using terms like “community,” or “stakeholder,” clarify which specific group is being referenced, such as, women street vendors, traditional elders, church youth group, etc., so that responses can be focused. Include a training plan for Chevron staff, stakeholders and others who will be involved in monitoring so that they all have the requisite skills in engagement and monitoring.

C. Uses of SIA Report SIA Reports serve a variety of internal and external purposes. Final SIA and ESHIA reports generally will be available to the public.

1. Internal stakeholders may use the SIA report for decisions on project design, social risk analysis and mitigation, developing strategies and policies for community engagement and stakeholders’ consultation. The Company may also find it useful for compliance, management and reference purposes. 2. Governments may require or request access to the document for legislative, development approval, permitting and monitoring purposes; 3. Financing organizations increasingly want detailed information on the social impacts and benefits that the project will deliver, and often require the final SIA to include all the comments from the final round of consultation. 4. PGPA CoP could use the SIA as a foundation for stakeholder management plans and for decisions as to when the SIA might need to be updated.

23