1. Building a review mechanism for the Canadian extractive sector overseas: An update Marketa D. Evans, PhD Extractive Sector CSR Counsellor “Risk Mitigation and CSR Seminar” Toronto, October 27, 2010

2. 2 Discussion Points 1.Who we are 2.What we’ve heard and learned 3.Where we are going

3. 3 The Office of the Extractive Sector Corporate Social Responsibility Counsellor  Government of Canada’s CSR strategy for the Canadian extractive sector overseas applies to any Canadian mining, oil or gas company in its operations outside Canada  Is grounded in three new performance Standards endorsed by the Government of Canada in its CSR Strategy (March 2009): IFC Performance Standards Voluntary Principles on Security & Human Rights The Global Reporting Initiative

4. 4 The Office  Our role is to help advance CSR performance of Canadian mining, oil and gas companies and deliver tangible results through the enhanced use of CSR performance standards.

5. 5 The Office  Two part mandate: “review” and “advisory”  Constructing the review mechanism: a participatory process is key; understanding “what creates value” What we did: extensive outreach, engagement, listening Proactive formal and informal consultations across all stakeholder groups

6. 6 What we heard  Over 300 organizations and individuals participated in our formal consultations June-August 2010; hundreds more informal conversations  Three legal experts workshops  Balanced input Canada: Montreal, Toronto, Ottawa, Vancouver, Calgary (25+% civil society; 33% industry; balance government and service) Overseas: Mexico, Mali, Senegal (38% civil society; 45% industry; balance government and service)

7. 7 What we heard  Very strong interest in Office  Participatory approach resonates  Conflict prevention  Value proposition

8. 8 Adding Value to the CSR landscape  Many other judicial and non-judicial mechanisms exist  The greatest support, particularly overseas, was for a process that could foster constructive dialogue and improve the situation on the ground.  The more “quasi-judicial” we became, the more rigourous the rules of evidence required: much higher barriers to entry

9. 9 The Review Mechanism  “Honest Broker” problem solving mechanism  Key Guiding Principles established as a result of the consultations Accessibility, Transparency, Independence, Effectiveness, Predictability, Responsiveness. Dispute resolution process launched October 20, 2010

10. 10 Within 5 days Eligible Office of the Extractive Sector CSR Counsellor Review Process Step 3: Eligibility Assessment Maximum of 120 days Maximum of 40 days Step 1: Request for Review Step 2: Acknowledgement Step 4: Informal mediation Trust Building Step 4: Informal mediation Trust Building Step 5: Informal mediation Structured dialogue Step 5: Informal mediation Structured dialogue Optional: Access to formal mediation Letter of intent Ineligible Final report

11. 11 Adding value Advisory Mandate: Standards are important but are not the silver bullet. Good CSR outcomes also require:  Good implementation: “How, how, how?” – best practices and research and knowledge management  Recognition of importance of cross sector participation  Behavioural change So industry is a critical partner What are the critical drivers of behavioural change?

12. 12 What next?  Advisory Mandate: Launch of learning partnership with the Institute for the Study of CSR, Ryerson University Advisory Panel Raising awareness of Standards and best practices Annual Report to Parliament (Spring 2011)  Contributing to informed public discussion of important issues related to CSR and the extractive sectors  A neutral, balanced perspective with the objective of improving CSR performance

13. 13 Want to know more? Check out our website www.international.gc.ca/csr- counsellorwww.international.gc.ca/csr- counsellor Find documents on the review process plus: Backgrounder on “Building a review mechanism for the Canadian international extractive sector” (June 2010) Nine different workshop reports Consultations Summary Report (September 2010)