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Corporate Engagement Our corporate engagement program builds the cultural bridge between companies and Indigenous Peoples and makes the business case for.

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Presentation on theme: "Corporate Engagement Our corporate engagement program builds the cultural bridge between companies and Indigenous Peoples and makes the business case for."— Presentation transcript:

1 Corporate Engagement Our corporate engagement program builds the cultural bridge between companies and Indigenous Peoples and makes the business case for respecting and upholding Indigenous Peoples’ rights. Keepers of the Earth Our Keepers of the Earth Fund provides grants directly to Indigenous-led development projects. Since 2007, we’ve given $1.9 million in grants to hundreds of Indigenous communities across 60 countries. + First Peoples Worldwide builds upon a foundation of Indigenous values and rights to achieve a sustainable future for all 1

2 First Peoples’ Network of Indigenous Grantees 2

3 Current Situation Minas Conga (Peru) $4.8 billion investment Ongoing community resistance linked to police violence and up to 16 deaths Suspended in 2011; Further development contingent upon local community support http://www.bnamericas.com/news/mining/peru-arrests-opponent-of-newmonts-minas-conga-project http://www.ft.com/intl/cms/s/0/a448ade4-661d-11e2-bb67-00144feab49a.html?siteedition=intl#axzz3695iRuwt http://newmont.q4web.com/files/2014/Fiscal%20Year%20End/2013%20Annual%20Report_full%20report_FINAL_v001_x688hv.PDF

4 Niger Delta (Nigeria) Community opposition takes militant form Several companies tried for murder in US courts; found not guilty Oil production declined 28 percent between 2006 and 2009 due to attacks on oil facilities http://www.bnamericas.com/news/mining/peru-arrests-opponent-of-newmonts-minas-conga-project http://www.ft.com/intl/cms/s/0/a448ade4-661d-11e2-bb67-00144feab49a.html?siteedition=intl#axzz3695iRuwt http://newmont.q4web.com/files/2014/Fiscal%20Year%20End/2013%20Annual%20Report_full%20report_FINAL_v001_x688hv.PDF Current Situation

5 Keystone XL Pipeline (US) Failure to obtain social license increased capital costs by $2.5 billion Coalition of resistance formed by communities, environmentalists, federal and state politicians Federal approval still pending; costs likely to climb http://www.reuters.com/article/2014/11/04/transcanada-results-idUSL4N0SU5W320141104 Companies are Losing their Social License

6 1 week shutdown costs US$20-30 million 6

7 Time to bring oil projects online doubled in last decade 7

8 73% of delays are from non-technical risks 8

9 Why do Indigenous Peoples matter? 9

10 The legal trajectory for Indigenous Peoples’ rights is global 10

11

12 Connection between a company’s social and financial performance getting stronger 12

13 13 Invested US$37 million in New Brunswick $28.2 million invested in exploration program through December 2012 Look at Southwestern Energy...

14 October 6, 2013 Analyst report Southwestern “looks like a great long-term investment” and “it is a low political risk company.” Source: http://seekingalpha.com/article/1730992-southwestern-energy-looks-like-a-great-long- term-investment 14

15 October 17, 2013 15 Blockade turns violent

16 October 17, 2013 16 October 17, 2013 40 protestors arrested

17 Cost to Southwestern Energy 17 $60,000 a day

18 We are making the financial case for Indigenous Peoples’ rights 18

19 Indigenous Rights Risk Report Identified 52 oil, gas, and mining companies’ overlap with Indigenous lands Assessed 330 projects’ risk exposure to Indigenous Peoples’ rights 89 percent of projects posed high or medium risk to companies and their shareholders

20 Methodology Country Risk (20%) Reputation Risk (20%) Community Risk (25%) Legal Risk (5%) Risk Management (30%)

21 Corporate overlap with Indigenous lands is growing 21

22 Percentage of overlap with Indigenous Peoples 22 39 % production 46 % reserves

23 Companies have no board oversight of social risks 23

24 Country Risk drives corporate risk upward 24

25 Country Risk

26 Companies are being held accountable to cumulative impacts 26

27 27

28 Access the Report Executive Summary http://firstpeoples.org/indigenous-rights-risk-report Scorecards http://firstpeoples.org/wp Contact npelosi@firstpeoples.org


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