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Community Engagement

Significance

Download Community Engagement Policy (PDF)

Significance & Commitment

Banpu is committed to creating sustainable values and building trust by actively engaging with communities through proactive efforts. Guided by our Community Engagement Policy and Corporate Philanthropy Policy, the Company supports initiatives that enhance community well-being and societal sustainability, both within and beyond business operations.

Banpu commits to the following practices:

  • Promote community participation
  • Place community involvement in decision-making
  • Focus on common benefits and create shared value
  • Enhance a culture of transparency
  • Encourage employee involvement

Community Engagement Policy

Corporate Philanthropy Policy

Management Approach

Adhering to ESG principles, the Company balances business growth with sustainable value creation for all stakeholders. The Environmental and Social Impact Assessment (ESIA) has been a core part of the project development process since its inception and continues to be conducted whenever significant changes occur during implementation. The assessment results are shared with local communities to ensure early involvement from the outset. A community complaint management standard has been implemented, with regular reports to the SD and ESG Committees for oversight and accountability.

To strengthen engagement, the Community Consultative Committee (CCC), comprising representatives from the community, vulnerable groups, government, and the Company, has been established. In addition, each business unit has a dedicated community engagement function, tailored to local contexts to ensure meaningful development outcomes.

 


Stakeholder engagement manual

Community Engagement Work

The Company has developed a Standard Practice Manual on Community Engagement, which covers guidelines for improving the quality of life in local communities and mitigating social and community impacts. This manual provides community engagement officers with standardized operational procedures applicable across all areas of operation. Moreover, the guidelines are regularly reviewed and updated to ensure they effectively address changing circumstances and community needs.

Community engagement work

Application of Social Impact Assessment

The Company places great importance on the potential impacts of its operations on local communities. Therefore, a comprehensive social impact assessment is conducted across all business units before the commencement of any project. The insights gained from these assessments are used to design activities that align with community needs, primarily focusing on minimizing or avoiding adverse impacts. Furthermore, the Company ensures that the mitigation of impacts is compared to baseline conditions before the conclusion of operations at the end of the concession period. If there are changes to the project during its lifecycle, the Company conducts a new social impact assessment to ensure alignment with the modified operational activities.

 

Year in Review

In 2023, the Company was proactive in facilitating community dialogue through 27 CCC meetings in Indonesia and 21 mining group-level subcommittee meetings in Australia. There were no new community complaints in 2023, and all pending issues from 2022 were completely resolved, including noise concerns in Australia and oil leakage in Vietnam. Furthermore, the community perception surveys were conducted in Indonesia and Australia. For Indonesia, the survey indicated low satisfaction levels, particularly concerns about economic conditions and quality of life in the post-closure period. Therefore, the Company integrates this feedback into the community engagement strategy to ensure community sustainability. In Australia, the improvement strategies were reviewed to maintain a “Satisfactory” level of community perception.

Stakeholder Satisfaction Survey

In Indonesia, the community satisfaction surveys were conducted at 13 community development programs across 5 mines. The surveys revealed an average satisfaction rating of 83%. This high level of satisfaction underscores the effectiveness of the community engagement and development initiatives, reflecting a solid alignment with the needs and expectations of the local communities we partner with.

Social Impact Assessment

The Company gives great importance to the impact that will occur on the community and, therefore, has established a social impact assessment (SIA) in all business units prior to the commencement of the project. The information obtained from the assessment will be used to design activities that respond to community needs by mainly reducing or avoiding their impact on the community, including comparing the relief from the impact before leaving the operating area at the end of the concession. Furthermore, if project specifics change during the process, the Company has scheduled a new social impact assessment to align with the modified production activities.

Business Operational status No. of business unit
Total SIA conducted SIA communicated
Mining – Indonesia Operating 5 5 5
Project Development 3 3 NA
Mining – Australia Operating 5 5 5
Project Development 2 2 2
Renewable power – China Operating 7 NA NA
Project Development NA NA NA
Renewable power – Australia Operating 2 2 2
Project Development NA NA NA
Renewable power – Vietnam Operating 2 2 2
Project Development 3 NA NA

Note:
NA = Not required to conduct SIA

SIA Communicated


Community Baseline Data Collection

The company has determined to collect baseline community data during the early stages of business operations and to update it on a regular basis in order to study and better understand the environment, way of life, and well-being of the community. Then, the matter will then be brought up for consultation with the community consultative committee or community representatives to develop a specific community engagement plan as the community needs are identified and mutual benefit objectives are established.

Community Complaint Management

The Company has devised a community complaint management system to enable systematic management of community complaints across the business. This approach covers indigenous people management and local community restoration under resettlement management in the event of inevitable project-related displacement. Also, the Company has specified that the outcomes of community complaint management be reported regularly to the ESG and the Sustainability Committee.

Community complaint management is a process that allows people in the community to express their concerns. Therefore, dealing with complaints is an essential in demonstrating responsibility to the communities and as part of the humanitarian context. In addition, it also enhances our Business Continuity Management (BCM) by preventing any possible risks that may occur.


Community complaint
management manual

Quality Assurance Review

The Company has its employees who are not involved with community engagement work to perform the quality assurance review to achieve the highest transparency and efficiency. The annual review enables the Company to identify areas of improvement so that it can improve the efficiency of the community engagement implementation.

Noise Complaint Management in Australia

In 2020, Mandalong mine in Australia expanded its infrastructure by constructing the “Mandalong South Surface Site”, which included ventilation fans for future mining operations. Following community feedback regarding noise disturbance caused by these fans, Mandalong implemented a management standard that included communication with complainants, consultation with the community consultative committee, and formal reporting of the issue to state authorities.

Acting on stakeholder input, Mandalong decided to modify the fan structures to reduce noise. The modifications were completed in October 2023 and resulted in a significant decrease in noise emissions. Presently, there has been no further complaints regarding this issue.


Promotion of Community Engagement

Company places importance on community engagement at every stage of development, pre-development, development, and post-development, emphasizing the engagement of community members for community activity design, implementation, monitoring, and review, including evaluation, i.e. drawing up the community engagement plan that meets community needs and is consistent with the government’s development plan. The Company and the community jointly established a Community Consultative Committee (CCC), which consists of representatives from the local government, local communities, and the Company. The committee collaboratively works on project planning, monitoring progress, and solving problems for the greatest benefit to society.

The Company has cooperated with contractors on community engagement work as many of them have been carrying out community engagement implementations. The Company has worked with them from the planning process, budget allocation, and staff allocation to exchange knowledge, expertise, and information. The cooperation enhances efficiency and widely benefits local communities while reducing redundancies of its social engagement management.


Social Benefits

Social Return on Investment

To measure the impact of community engagement efforts, the Company employed the Social Return on Investment (SROI) framework, covering 6 community development programs across 5 mine sites. Furthermore, the Company also applied “Maturity Measurement” to evaluate the sustainability of community engagement programs across 6 dimensions: change, inclusion, organization, cooperation, influence, and sustainability. This comprehensive approach has reached 100% of the mines in Indonesia.

Example of SROI in Community Development Programs

Social Impact Assessment

From the onset of project development, a Social Impact Assessment (SIA) is conducted across all business units. This ensures a thorough understanding of the potential social consequences of the projects. If any significant changes occur during project implementation, it is mandatory to conduct a review of the SIA to capture and address these developments. After the review, the updated assessment reports are promptly communicated to all concerned stakeholders, ensuring transparency and facilitating informed collaboration throughout the project life cycle. This process is crucial for adapting to changes effectively and maintaining stakeholder engagement.

Social Impact Measurement
CEMS

The Community Engagement Data Management System (CEMS) is the social impact data platform. The system is designed to store, retrieve, and manage social impact data in a database that everyone can access at prompt to utilize information for communication with relevant stakeholders.

Banpu initiated this project while receiving collaboration from its colleagues in every country since the design thinking phase, which was conducted in late 2019. Later, the development entered the POC and MVP stages before successfully launching the full system in April 2021.

Banpu continues its partnership with local communities where we operate with the main objective of uplifting the well-being of all members. The community engagement is being implemented across Banpu’s operations in Australia, Indonesia, China, Vietnam, and the USA. In 2022, a total of 153 projects were implemented and created a direct impact on 74,522 beneficiaries. The main proportions went on education and economic development projects which accounting for 36.33% and 28.92% respectively.

Banpu Social Impact at a Glance
2023

 

Banpu Social Impact

2021

2022


2023


Community Engagement Programs

Highlight

Women Empowerment in Indonesia Community Engagement in The U.S. Income Generation Program in China

Indonesia

China

Australia

Mongolia

Vietnam

United States of America


Testimonial

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Community Engagement Standard

 Community complaint management
 Resettlement management
 Stakeholder engagement manual
 Community consultative committee
 Indigenous peoples engagement
 Community engagement work
 Community perception survey
 Corporate framework on social impact measurement
 Social impact assessment

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