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Community Engagement

Significance

Download Community Engagement Policy (PDF)

Significance & Commitment

To create sustainable values for the community and build stakeholder’s trust as mentioned in the mission statement, the Company places a high priority on stakeholder engagement, in particular, with the local communities, who are one of the Company’s stakeholders. Accordingly, the Company has established the Community Engagement Policy, whose primary aim is to improve the quality of life and well-being of local communities, empower the communities to become self-reliant in the long run and gain community acceptance.

Management Approach

The Company sets a community development strategy in line with the UN Sustainable Development Goals (SDGs). With collaboration between the Company, the community, and the local authority, 6 aspects of community development programs are prioritized. To ensure consistency in the actions taken at different locations, a corporate standard has been developed as a framework for all business units. In addition, the Company developed a data management system called Community Engagement Data Management System (CEMS) to manage the social impact data of all business units. Furthermore, the Company adopts the Social Return on Investment (SROI) framework as a tool to measure the social impact of community development projects to reflect its effectiveness and to use the assessment results to improve operational efficiency to achieve its sustainability goals.


Stakeholder
engagement manual

Year in Review

In 2022, the Company convened 26 community advisory committee meetings with all villages in Indonesia and 18 mining group-level subcommittee meetings in Australia. It was found from those meetings that most communities in Indonesia wanted to improve their quality of life in the areas of health and economy, while communities in Australia were concerned about groundwater, ongoing employment, and energy security.

Last year, the Company has recorded 3 significant complaint issues from communities in Australia and Vietnam. For Australia, there were related to 2 main issues – noise and surface cracking. The cracking issue has been resolved and closed; however, noise issue is subject of engineering work, expected to be completed by the Q3/2023. For Vietnam, the issue is about oil leakage from wind turbines into shrimp farms, which has been resolved and closed respectively. The company values transparency in resolving such issues and in keeping complainants informed of its progress. This involves communication through community consultative committees and reporting the results to the appropriate state authorities.

Apart from that, the Company conducted community satisfaction surveys covering 17 community development programs of 4 Indonesian mines. The average satisfaction rating was 85% or at the “Satisfactory” level. The objective of this survey is to understand their satisfaction towards community development projects that are supported by the Company. Upon reviewing the information, Banpu also utilizes this data to uplift its performance as well as to design and shape community development programs.

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.


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 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
2021 – 2022

Banpu Social Impact

2021


 
 
2022


Community Engagement Programs

Highlight

Economic Development Project at Solar Power Plant Computer Training Center Mandalong Community Fund

Indonesia

China

Australia

Mongolia

Vietnam

United States of America


Testimonial

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Community Engagement Standard

 Community complaint management manual
 Resettlement management manual
 Stakeholder engagement manual
 Community consultative committee (CCC) guideline
 Guideline for engagement with indigenous peoples
 Community Engagement Work

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