Significance
In this report we investigate company–community conflict and its role in the regulation of sustainability performance in the extractive industries. We estimate the cost of conflict to companies and identify conflict as an important means through which environmental and social risks are translated into business costs and decision-making. The paper clarifies the relationship between the environmental and social risk experienced—and interpreted—by local communities, and the business risks experienced—and interpreted—by corporations. Findings reveal that, at least for the case of the extractive industries, these two types of risk can co-constitute each other. The central importance of corporate strategy and behavior for sustainability science is highlighted.
This article focuses on community relations in the mining industry, within the context of sustainable development, social responsibility and stakeholder engagement. Community relations is conceptualized as a three-dimensional practice that involves: working for the company to understand local community perspectives; bridging community and company perspectives to generate dialogue and mutual understanding and; facilitating necessary organizational change to improve social performance. Key challenges of institutionalizing and professionalizing community relations within the mining industry are discussed. The article argues that at a conceptual level, community relations should be de-linked from public relations if it is to gain strength as a professional domain of work.
Environmental, social and governance pressures should feature in future scenario planning about the transition to a low carbon future. As low-carbon energy technologies advance, markets are driving demand for energy transition metals. Increased extraction rates will augment the stress placed on people and the environment in extractive locations. To quantify this stress, we develop a set of global composite environmental, social and governance indicators, and examine mining projects across 20 metal commodities to identify the co-occurrence of environmental, social and governance risk factors. Our findings show that 84% of platinum resources and 70% of cobalt resources are located in high-risk contexts. Reflecting heightened demand, major metals like iron and copper are set to disturb more land. Jurisdictions extracting energy transition metals in low-risk contexts are positioned to develop and maintain safeguards against mining-related social and environmental risk factors.
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