Rewriting the Rules of Engagement (cont’d)
plant on HFN-owned land exemplifies this new approach
to engagement. Larger, more complex LNG projects
in development, such as in Kitimat, have also involved
the negotiation of forward-looking agreements with
multiple First Nations. Before long, these practices may
well become standard procedure.
This new approach means companies who want to
develop resources on First Nations land must look at a
more extensive “benefits package” that will:
E
• mploy local workers in lasting and meaningful
positions;
S
• upport local education and training initiatives over
the long term;
S
• upport First Nations’ capacity to engage;
O
• ffer procurement opportunities;
S
• hare financial benefits or offer equity participation;
B
• ecome involved in community development
programs; and
M
of
• easure the impactthe their presence on the longterm well-being of
community by establishing
per formance metrics, measuring them, and
benchmarking that performance over time.
Several of these measures, such as employing local
residents and investing in community programs, are not
new. However, the availability of equity participation and
the measurement of performance metrics in regards to
community well-being are fresh initiatives.
Another new strategy, developed by Deloitte and First
Nations communities, is the re-establishment of traditional
forms of decision-making through community trust
structures. These trusts put control of the wealth that can
result from settled land claims, impact benefit agreements,
or significant business revenue into the hands of the
communities instead of banks, as has traditionally been the
case. Investment decisions are made by trustees chosen by
and from community members, not by corporate trustees
with no stake in the development of the community.
Updating Approaches
These new approaches represent a major shift in how the
energy industry will do business in future. Companies and
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I N D U S T R Y U P D AT E
First Nations must be ready to follow this new approach
to resource development, as will the professionals who
support them. New measures will need to be considered,
such as:
• Developing forward-thinking engagement strategies;
U
communities’ priorities
• nderstandingdesired outcomes; and building
consensus on
C
the
• apacity-building by First Nations throughalign
establishment of governance structures that
with traditional decision-making processes to ensure
community needs can be met;
E
• stablishing First Nations community development
performance measures;
C
• onducting investment assessments to track actual
outcomes against set goals; and
T
• imely and effective communication and disclosure
on performance.
Well-planned engagement strategies should embrace
core business processes that enable higher returns on
investment and provide a sense of long-term certainty.
An engagement-minded dealmaker will always look for
a winning scenario for the key stakeholders, facilitating
good conditions for successful business outcomes.
While the new “rules of engagement” may seem to
require a significant amount of effort, especially in a
highly competitive environment, the benefits they
produce are worth it. In the end, authentic engagement
between stakeholders in a resource project provides
secure, significant, and long-term economic benefits for
all parties — and that’s good news for everyone.
Kasia Sell is a manager in Deloitte’s Sustainability and
Climate Change practice who consults on a variety
of strategy, risk, and assurance projects related to
social, economic, and environmental issues.
Henry Stoch is a partner in Deloitte’s Enterprise Risk
group and leads the Western Canadian Sustainability
and Climate Change practice. He has spent his entire
career in the energy and resources sector, both in
industry and consulting, focused on solving complex
social, economic, and environmental issues at many
of the most significant companies across North,
Central, and South America.