Transcript Elisbeth DeMarco & Janne Duncan, Macleod Dixon LLP

4th Annual Risk Mitigation & CSR in Africa and Emerging Markets
IFC’s Policy and Performance Standards on Social and
Environmental Sustainability:
Making a World of Difference in International Mining?
Date:
October 27, 2010
Presenters:
Elisabeth (Lisa) DeMarco, Partner, Toronto office
Tel.: +1 416 202-6740
Email: [email protected]
Janne Duncan, Partner, Toronto office
Tel.: +1 416 202 6715
Email: [email protected]
Calgary  Toronto  Moscow  Almaty/Atyrau  Caracas  Rio de Janeiro  Bogotá
Macleod Dixon LLP
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Canadian based International law firm established 1912
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300 lawyers, 420 total staff in 8 global offices
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Focus: natural resource law (oil, gas, mining, electricity, water,
carbon and emission products)
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Who’s Who Legal Global Mining Firm of the Year 2010
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MD Global Climate Change and Sustainability Team: International
Team, lead out of Toronto serving domestic and international clients
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MD Climate Change lawyers at the leading edge of Canadian and
international climate and UNFCCC policy development since 1996
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Climate Change Team has closed hundreds of MT of carbon
transactions in CDM, JI, Voluntary Carbon, REC, and Environmental
Attributes markets and first approved Russian JI deal
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Member of IETA, IETA Contracts and CCS working groups , and
NACCSA
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MD Lawyers ranked top world-wide in Climate Change and
Emissions Trading by Chambers Global, International Who’s Who
Legal and Law Day
Macleod Dixon’s Offices
Calgary,
Toronto
Caracas
Rio de
Janeiro
Moscow
Almaty
Bogotá
Overview
• Risks Associated with International Mining
• IFC’s Policy and Performance Standards on Social and
Environmental Sustainability
• Related Financial Disclosure Obligations
• Long Term Impact?
“IFC expects clients to manage social and
environmental risks and impacts”
Counterparty
Environment
Host Government
Local People
Enforcement
HGAs, IGAs
Indigenous peoples
Land disturbance
Credit
Water pollution
Currency
Emissions
Expropriation
Approvals
Corruption
O&M
MRV
Royalties
Community backlash
Taxes
Security
Legal system
Civil unrest
Profit sharing
Conflict of laws
Labour
Tariffs for
Infra-structure Political intervention Collection and
Influx of wealth
Corruption
Enforcement
Arbitration
Related Financial Disclosure Obligations
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SEC
OSC
CDP
Change in materiality standard?
HGAs, IGAs
Equator Principles
• 10 voluntary guidelines adopted by more than 60 of the
world’s leading investment banks in developed and
developing countries and based on IFC’s Performance
Standards
• Common bank reps and warranties to manage social
and environmental risk in project financing
• Signatories commit to develop their own internal policies
Equator Principles
When a project is proposed for financing, the FI categorizes the
project based on the magnitude of its potential impacts and risks in
accordance with the environmental and social screening criteria of
the International Finance Corporation.
• Category A = projects with potential significant adverse social or
environmental impacts that are diverse, irreversible or
unprecedented.
• Category B = projects with potential limited adverse social or
environmental impacts that are few in number, generally sitespecific, largely reversible and readily addressed through mitigation
measures.
• Category C = projects with minimal or no social or environmental
impacts
Long Term Impact?
• IFC E&S and Contractual Obligations
– Living covenant?
• Creating a new world CSR standard?
• The next equator principles?
Contact Information
Elisabeth (Lisa) DeMarco
Partner, Head of Global Climate Change
[email protected]
+0011 416 203-4431
Janne Duncan
Partner, Mining and Business Law
[email protected]
+0011 416 202-6715