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The Benefits Of A Social Impact Assessment For A Resource Business

Jan 20, 2022

Social Impact Assessment

A resource or infrastructure-focussed business, such as a mine, quarry, or rail installation, can have an immense impact on its community . This is not only when they commence, but especially during the life of the project and then in closure.  A project of that size provides jobs, boosts the local economy, and can bring about population growth and an improvement to services in the community. Sounds great, so why a social impact assessment?

WHAT IS A SOCIAL IMPACT ASSESSMENT?

Social Impact Assessments  (SIA) is a process for the identification, analysis, assessment, management and monitoring of the social impacts of a project, both positive and negative. The social impacts of a project are the direct and indirect impacts that affect people and their communities at all stages of the project lifecycle.

The SIA must address the following key matters:

  • community and stakeholder engagement;
  • workforce management;
  • housing and accommodation;
  • local business and industry procurement; and
  • health and community well-being.

As a major part of your social impact assessment, you will need to obtain a Social License to Operate (SLO).

WHAT IS A SOCIAL LICENCE TO OPERATE?

The simplest explanation of a  Social License to Operate  (SLO) is that it is an acceptance of a company or organisation by its proposed community. This goes beyond regulatory licensing and is based more on trust, communication and acceptance of the community and stakeholders.

An SLO is often referred to as “hard to win, easy to lose”. This is why social impact assessments are critical at ALL stages of a resource project.

HOW A SOCIAL IMPACT ASSESSMENT BENEFITS BUSINESS

There are a great many benefits to a business having an SIA.

Using community and stakeholder engagement, a business can:

  • Establish a local employment and supply base to reduce costs and inefficiencies including accommodation, transport and logistics;
  • Support the development of a community to assist it to thrive, making it an attractive place to live and thereby increasing the size and quality of the local employment pool; and
  • Potentially decrease taxes and demands for increased social investment if the community believes the business valuably contributes to the community.

Business value drives to which SIA adds value:

Social Impact Assessment

Outcomes from regular Social Impact Assessments:

Social Impact Assessment

GOING ABOVE AND BEYOND OUR SOCIAL OBLIGATIONS

In Queensland, an SIA report is part of the Environmental Impact Statement (EIS) process for a major resource project, such as mining.

It may not be mandatory to conduct SIA for some projects or all stages of the mine’s life, but a company that chooses to undergo the process will better maintain their reputation within the community.

The communities impacted by a major resource project want to be involved, informed, and consulted. These projects impact their lives in almost immeasurable ways and so the social responsibility of a business comes into play.

Right from the beginning of a project, it’s advisable to use regular social impact assessments to not only assess the effect of the opening of a project, but then track how it can boost the community’s growth and stability through the life of the project and manage the potential economic impact upon closure.

Transparency in social responsibility, publicly accepting social responsibility within a community, can be a deciding factor in the acceptance of a business in a community.

COMPLEX PROJECT SUCCESS IN REGIONAL QUEENSLAND

At  Wall Planning Group , we have a deep understanding of complex projects in remote regions. Our success is through effective engagement with business operators, stakeholders, and communities.

WPG work with businesses that recognise sustainability, resulting in reduced risk and achieving social and political permissions through successful community and stakeholder consultations.

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