In high-impact sectors like Mining, Oil & Gas, and Forestry, the license to operate is no longer just a matter of permits and compliance—it’s a matter of trust, inclusion, and ongoing engagement with communities. Social Performance Management (SPM) and broader Social Sustainability practices are not just “nice to have”; they are essential to minimizing operational risk, avoiding reputational fallout, and building resilient relationships with stakeholders—especially Indigenous peoples, local communities, and land rights holders.
The Stakes: Risks and Opportunities
Risks of Poor Social Performance
- Legal non-compliance and litigation due to failure to meet FPIC (Free, Prior and Informed Consent) standards
- Project delays or shutdowns from community blockades or protests
- License withdrawals or denied renewals due to social unrest
- Investor pressure through ESG benchmarks and social responsibility scoring
- Loss of trust with Indigenous and vulnerable communities—often irreversible
Opportunities for Strong Social Performance
- Accelerated project development through early, transparent engagement
- Improved reputation and stakeholder goodwill
- Increased access to capital as ESG-minded investors scrutinize social impact
- Regulatory favorability where demonstrable benefit-sharing and inclusiveness exist
Stronger long-term viability through collaborative land stewardship and trust
Key Laws, Standards, and Expectations Around the World
|
Country/Region |
Standard/Law |
Focus |
Applicability |
|
Canada |
Impact Assessment Act (IAA) & UNDRIP |
Indigenous consultation, FPIC, cumulative effects |
Mining, Energy, Forestry |
|
Chile |
Indigenous Law No. 19.253 |
Indigenous consultation and participation |
Mining, Forestry |
|
Brazil |
IBAMA regulations + ILO Convention 169 |
Rights of traditional and Indigenous populations |
Forestry, Oil & Gas |
|
Australia |
Native Title Act & Environmental Protection and Biodiversity Conservation Act |
Heritage protection, Indigenous rights |
Mining, Oil & Gas |
|
South Africa |
MPRDA + Social and Labour Plans (SLPs) |
Employment, skills development, community benefit |
Mining |
|
United States |
NEPA + Tribal Consultation Executive Orders |
Stakeholder engagement and environmental justice |
Oil & Gas, Forestry |
|
Global |
IFC Performance Standards (esp. PS1 & PS7) |
Stakeholder engagement, Indigenous Peoples |
Multinational mining/oil firms |
|
Global |
ICMM Mining Principles |
Ethical business, community development |
Members in mining sector |
FPIC (Free, Prior, and Informed Consent) is a central tenet of many of these regulations. Missteps here can have costly—and irreversible—consequences.
What Stakeholders Are Really Asking
When communities evaluate your operations, they’re not just looking at compensation figures or job promises. They’re asking:
- Were we engaged early, transparently, and meaningfully?
- Are our rights, values, and traditions respected?
- Will this project benefit our community for generations—or just burden us?
- Do we have mechanisms to raise issues and be heard?
Where IsoMetrix Comes In
At IsoMetrix, we help you operationalize Social Performance Management with a suite of tools built for high-risk, high-stakes environments.
IsoMetrix Social Sustainability Solutions include:
- Stakeholder Engagement Management
- Track, analyze, and respond to engagements in a structured, auditable way.
- Geo-tag interactions with Indigenous or affected communities.
- Grievance Mechanism Tracking
- Ensure compliance with IFC and UNGP standards.
- Log, investigate, and resolve grievances transparently and on time.
- Social Investment and Benefit-Sharing
- Manage projects, budgets, and KPIs tied to local development commitments.
- Monitor education, employment, infrastructure, and health investments.
- Land Access and Resettlement Modules
- Align to IFC PS5 on involuntary resettlement and compensation.
- Track land negotiations, documentation, and outcomes.
- Compliance Calendar for Social Obligations
- Stay ahead of audits, disclosure requirements, and reporting to regulators or lenders.
- Audit and Assurance Tools
- Conduct internal audits to benchmark against standards like ICMM, IPIECA, IFC, or ISO 26000.
- Automate action plans and remediation tracking.
- Cultural Heritage Registers and Risk Mapping
- Catalog heritage sites and align with country-specific heritage laws and Indigenous protocols.
Case in Point
A mining company operating in South America used IsoMetrix to overhaul its social engagement tracking. After community tensions escalated over unfulfilled commitments, the company implemented IsoMetrix’s Stakeholder Engagement module to log all interactions, commitments, and responses. Within six months, not only were grievances significantly reduced, but the company gained praise in its sustainability audit from both lenders and community leaders.
Final Thoughts: Social Sustainability Is Business Sustainability
For Mining, Oil & Gas, and Forestry companies, social performance is no longer a compliance box—it’s a strategic imperative. It’s about dignity, justice, and transparency. But it’s also about risk mitigation, faster project timelines, and long-term operational certainty.
IsoMetrix gives you the tools to get it right—because when social performance is strong, everybody wins.
Learn more about our Social Sustainability solutions at social sustainability page
Or let’s talk: We can help tailor a solution that aligns with the standards, expectations, and realities in your operating regions.