Track 8: Safety, Social Performance and Talent Management

These four models are not mutually exclusive. The most effective approach for most jurisdictions will be a combination: the Community Legal Equity Fund as the primary mechanism for large-scale operations; statutory legal aid extension for smaller operations and jurisdictions with limited company capacity; multilateral conditionality for World Bank and IFC-financed projects; and negotiated protocols as an interim measure and market signal while legislative frameworks are developed. access to justice as a pillar of sustainable mining The case for independent legal funding is often framed as a community rights argument. It is equally, and perhaps more compellingly for industry and investor audiences, a risk management argument and an operational efficiency argument. Projects that proceed without genuine community consent are among the most common sources of mining project delays worldwide. Social conflict, injunctions, community blockades and extended litigation cost the industry billions of dollars annually and generate reputational damage that affects social licence across an entire jurisdiction. The asymmetric resettlement process that this paper documents is not only unjust, it is operationally counterproductive. Agreements reached through genuinely informed negotiation, with communities that have access to independent legal advice, are more durable, less likely to be challenged in court, and more likely to generate the community goodwill on which long-term project viability depends. For ESG-focused investors, who now represents the dominant share of institutional capital globally, the access to justice dimension of mining social performance is increasingly material. Human rights due diligence obligations under the EU Corporate Sustainability Due Diligence Directive (CS3D), the OECD Due Diligence Guidance, and emerging mandatory human rights reporting requirements create legal exposure for qualifying investors whose portfolio companies conduct resettlements without adequate community legal support. The proposed Community Legal Equity Fund and the related mechanisms proposed in this paper are not compliance costs – they are tools for managing material ESG risk. The alignment with the UNGP framework is direct. Pillar III of the Guiding Principles requires effective access to remedy. A community that cannot afford to contest a defective resettlement process in court or cannot independently assess whether its compensation entitlements have been met, does not have effective access to remedy regardless of how many grievance boxes the company ticks. Structural legal funding is the precondition for Pillar III to function. Recommendations For International Finance Institutions The IFC should amend PS5 in the current Sustainability Framework review to require that clients establish arm’s length funding mechanisms for affected communities as a condition of project approval. The World Bank should adopt a parallel provision in ESS5. Both institutions should 115

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