SPE 156856 Management Systems for Social Performance: Current Status and Trends

1. SPE 156856 Management Systems for Social Performance: Current Status and Trends Karen Westley, Shell On behalf of IPIECA Social Responsibility Working Group

2. Slide 2 Presentation Overview 156856• MS for SP • Westley

3. Slide 3 Introduction: Social Performance Management Systems (SPMS) • WHY? • IPIECA is developing guidance on integration of social performance into management systems 156856 • MS for SP • Westley

4. Slide 4 Overview: Integrating Social Performance 156856 • MS for SP • Westley

5. Slide 5 Pros and Cons of Integrating SP into MS • Risk assessment and management • Risk Assessment Matrices • Issues identification and management • Ethics, compliance and whistle-blowing • Stakeholder engagement • Environmental, Social and Health Impact Assessment (ESHIA) and Management • Risk Assessment and Management • Used to assess financial, commercial, political, technical, health and safety risks • SP may interact and feature in these systems • Social factors may be unpredictable and hard to quantify • Challenge of integrating opportunity identification into risk assessment • Risk Assessment Matrices (RAM) • Tools usually applied to an incident or event, with specific/measurable consequences • SP can be covered but often not in meaningful way • Issues Identification and Management • Identified through stakeholder management • Even if not directly linked to business activities, may be regarded as significant • Reputational focus of issues management may lead to communications response, whereas SP focused on managing impacts • Ethics, Compliance and Whistle-blowing • Systems normally sit within compliance • Implementation can be similar to grievance procedures • Stakeholder Engagement • Some mining companies integrating HSSE, stakeholder engagement, commitment tracking, social investment and grievance • Oil and gas taking incremental approach - stakeholder engagement within social performance management system • ESHIA • Management plans stemming from ESHIA key element to SP MS. • ESHIA may only be carried out once Stakeholder engagement linked to risk and performance requirements 156856 • MS for SP • Westley

6. Slide 6 Elements of Social Performance Management System: Leadership and Accountability • Strong leadership and a clear mandate from senior management endorse that social performance is prioritised in management decisions • The board to provide managers with authority and resources • Each manager as a champion and role model • Commercial managers set priorities, budgets, schedule, organization and resources • Clear messaging in sustainability reports 156856 • MS for SP • Westley

7. Slide 7 Elements of SPMS: Policy, Standards and Commitments 156856 • MS for SP • Westley

8. Slide 8 Elements of SPMS Cont’d 156856 • MS for SP • Westley

9. Slide 9 Elements of SPMS Cont’d Impact Assessment, Opportunity Identification and Management 156856 • MS for SP • Westley

10. Slide 10 Elements of SPMS Cont’d Stakeholder Engagement 156856 • MS for SP • Westley

11. Slide 11 Elements of SPMS Cont’d: Monitoring, Learning and Reporting / Audit and Review 156856 • MS for SP • Westley

12. Slide 12 Summary/Wrap Up • SPMS is an evolving practice • Integration of SP into existing MS is preferable • Existing systems may need some adaptations • Active learning and development to identify appropriate approaches and practices through IPIECA 156856 • MS for SP • Westley

13. Slide 13 Thank You / Questions IPIECA Social Responsibility Working Group