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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 Environmental and Social Impact Assessment (ESIA) has been conducted since the inception of project development and when there is a significant change during the project implementation. The findings of these assessments are shared with the local community to ensure involvement from the early stages. Moreover, stakeholder analysis and social mapping are conducted during both the pre-operation and operational stages to better address community needs.
To facilitate meaningful dialogue, the Community Consultative Committee (CCC), involving community as well as vulnerable groups, government, and company representatives, has been established. The Company has set up the community engagement function in each business unit to ensure that local communities are not only informed but actively engaged and all development programs genuinely benefit the communities. In practice, the community engagement approach in each country varies according to local business characteristics and community contexts.
Stakeholder engagement manual
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.
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.
The Bharinto mine in Indonesia supported the cooperative to improve the community’s economy. The cooperative manages 8 hectares of land for hybrid maize cultivation and is going to expand to 10 hectares of land to develop more products from its farming business. This hybrid maize cultivation project involved 22 people. The Company equipped the members with cooperative management training and assisted them in providing business capital and supporting facilities. At present, there are 74 people who have registered as cooperative members. The cooperative received a silver category award in the CSR and Sustainable Rural Development Award in Indonesia.
Number of beneficiaries
74 persons
Community benefits
• Improved the community’s economy through cooperatives
• Increased income generation
• Supported women empowerment through a housewife business group
Cattle Farm Project
The Kitadin Embalut mine assisted the cattle farm program in 4 foster villages. Currently, the number of cattle breeder groups has reached 7 groups, with a cow population of 300 heads. This cattle farm program, which was initiated in 2009, is being implemented in line with the East Kalimantan Province’s development strategy by producing 2 million head of cattle. This program creates a one-stop cattle herd system that facilitates supervision. Cow dung is turned into fertilizer, which helps to restore the condition of the former mining soil so that it becomes fertile quickly for planting agricultural crops.
Number of beneficiaries
45 persons
Community benefits
• Increased local income
• Decreased unemployment rate while increasing job opportunity
• Improved the quality of agricultural land
Organic Fertilizer Production Project
In realizing the waste problem of Karangrejo Village, Jorong in collaboration with the community consultative committee, initiated this program with the aim of producing organic fertilizer. Jorong provided support in the form of training, workshops, production facilities, and relevant equipment. Since 2017, the group has produced 1,065 tons of organic fertilizer, with a total gross income of IDR 1,683,425,000. The organic fertilizer development program is managed by a farmer group. This program has a wide range of effects on the community, including raising public awareness about waste management. This helped the local community generate income while also saving the Company’s budget on rehabilitation.
Number of beneficiaries
52 persons
Community benefits
• Increased local income
• Improve soil quality for agriculture
• Raised environmental awareness
SROI
1 : 2.67
Computer Training Center
The Trubaindo mine in Indonesia assists local people and students by improving their computer literacy. The Company established the Computer Training Center called LPK Media Citra Mandiri, which became a place to learn about computer skills. This project has been established since 2016. At present, the total number of graduated students is 390, from various occupations such as teachers, students, workers, and village government officers. It is clearly seen that the program benefits the local members by supporting their job opportunities in computer literacy. The Computer Training Center project received a silver category award in the CSR and Sustainable Rural Development (SRD) Award, organized by the Ministry of Villages, Development of Disadvantaged Regions, and Transmigration, Indonesia.
Number of beneficiaries
390 persons
Community benefits
• Improved the quality of education
• Increased computer literacy for local students
• Increased career opportunities for 26 workers
Mangrove Rehabilitation Project
Indominco mine is aware of the natural conservation, one of which is carried out through the Mangrove Rehabilitation Program. From 2012 to 2022, Indominco planted a total of 130,000 mangrove trees in a 72 hectares area, contributing to the 14th SDGs Goal – Ocean Ecosystem. The activities consisted of mangrove planting, the construction of mangrove monitoring shelters, and community involvement in the supply of mangrove seedlings and tree planting movements. To date, planting has benefited 2,618 local community members. This program has received various recognitions from the government and media, namely the Local Propernas (green award), the GKPM silver award from the Cooperation Ministry of Indonesia, and the Gold Award from the Indonesian Sustainability Development Goals Award (ISDA).
Number of beneficiaries
2,618 persons
Community benefits
• Improved quality of life for local community
• Increased natural buffer zone to reduce risk from disaster
• Raised public awareness of mangrove rehabilitation and preservation
Since its establishment in 2019, Jorong Mine’s Sasirangan eco-print program in Indonesia has been a beacon of women’s empowerment and sustainable development. The program is operated in partnership with the community consultative committee and involves 2 women groups that manage the activities. These groups have significantly enhanced their capabilities through knowledge sharing and technical skill training, focusing on creating ecofriendly products.
Sasirangan’s product line uniquely incorporates eco-print techniques using eucalyptus leaves from Jorong’s reclamation areas. In 2023, the initiative expanded its product range to include eco-print coloring material and became a local government partner in Kondang’s market, a significant step in increasing the program’s reach and impact.
Location
Indonesia
Project duration
5 years (2019-Current)
SROI
1 : 2.05
Community Capability Development in Indonesia
Indominco mine in Indonesia has proactively addressed the anticipated strong demand for local labor driven by a new capital establishment in the region. In partnership with the Bontang Welder Association and its contractors, Indominco launched an “Industry-Standard Welding Training Program.” Since 2019, 47 trainees have successfully completed this program, with an impressive 75% employment rate post-training, while 24 of these individuals are now working as contractors for Indominco.
In 2023, Indominco collaborated with partners to enhance the training curriculum and conduct trainee selection process. The effort culminated in the selection of 22 participants from 11 villages, including 5 women, who are currently progressing through the training pipeline. This initiative not only equips participants with essential skills but also fosters gender diversity in traditionally male-dominated fields. Further enhancing the program’s impact, Indominco aims to form a welder alumni association to facilitate knowledge sharing among graduates and support sustainability of the program.
Location
Indonesia
Beneficiary
47 local people
Business benefits
24 employees from local people
Project duration
5 years (2019-Current)
SROI
1 : 3.40
Agro-Edu-Tourism at Embalut
In 2023, Embalut mine in Indonesia actively supported 14 community development projects. The focus of these initiatives is on agro-edu-tourism, aimed at enhancing the livelihood and well-being of the local population. The projects included the development of fruit gardens, cattle sheds, agricultural tourism attractions, fishing ponds, and fishing points.
The community development program has been formulated to ensure better living conditions and the sustainability of the local community members. The program has helped enhance the collaboration between the Company and the community. According to the community consultation, the development of local employment opportunities has been indicated as a way to increase family income. Thus, the solar power plant designed a program to boost the local economy by employing local people to perform work on the Company’s site. The work includes weeding, solar panel cleaning and bolt tightening. In addition, all workers will be equipped with the necessary skills, especially focusing on safety prior to performing job duties.
Number of beneficiaries
45 persons
Community benefits
• Increased local job opportunity and family income
• Enhanced skill sets to local peoples
• Improved better relationship with local community
Community Development Program in China
The solar power plant in China supported the local community by employing the local people for housekeeping duties at the Haoyuan, Deyuan, Jinshan, Huineng, and Huien solar farms.
The solar power plant in Jixin supported the local community by employing the local people for weeding and solar panel cleaning.
BIC, a subsidiary of the Company operating 7 solar power plants in China, focuses on improving community relations and enhancing quality of life, particularly for middle-aged and elderly individuals, by creating employment opportunities.
In 2023, BIC launched an income generation program at Jixin Solar Farm. This initiative successfully provided 32 beneficiaries with not only higher income opportunities but also
comprehensive safety training and increased environmental awareness. The program is designed to comply with stringent environmental regulations, ensuring that the operations adhere to both local and national environmental standards.
1. Develop trust in Centennial’s operations with land holders, local communities, regional community, Indigenous groups, non-government organizations, government and other stakeholders through comprehensive and timely engagement and communication.
2. Contribute to positive working relationships with neighboring residents, local communities, regional community, Indigenous groups, non-government organizations, government by proactively anticipating and addressing concerns about our projects.
3. Be responsive to community concerns by incorporating community feedback into periodic internal and external reviews of environmental compliance and community engagement.
4. Contribute to the development of local social capital and capacity by sponsoring and supporting local community organizations.
Mandalong Community Fund
CEY allocate $50,000 per annum to the Mandalong Mine Community Fund to support the local community initiatives that will benefit local residents. Funding can be in the form of charitable donations for one-off activities events or investment into community infrastructure, equipment, projects, programs.
Centennial collaborated with The Pamper Care Project, Five Bays Sustainable Neighbourhood Group, and Woodrising Neighbourhood Centre to provide support during Christmas, helping over 10 families. This was an awesome effort that brought smiles to many people’s faces.
Hunnu participated in and provided support for the historical 98th anniversary “Naadam” festival of Bayan-Ovoo soum of Umnogovi province.
In Dornod province, Bayandun Soum Medical Center celebrated its 90th anniversary and was provided financial support for an archery reward.
Scholarship program 2022
Hunnu awarded scholarships to the 7 students of Gurvansaikhan soum. These students achieved academic success and successfully participated in competitions organized by the state and province in 2018.
TSANT-UUL mine provided sholarships to 4 students and after graduation, they will get a job with soum (5 years contract)
Community Development Program in the United States of America
• Employees from NEPA volunteer monthly at Seven Loaves Soup Kitchen- serving warm meals to families in need.
• Employees in TX volunteered at the Cowtown Race as the official Fuel Sponsor- providing snacks and water to refuel runners- over 20,000 participants.
• Employees in Denver participated in the Highland 5k and 10K race.
BKV, the Company’s subsidiary in the U.S., is committed to being a positive force within society. BKV prioritizes maintaining open and honest relationships with stakeholders and
is deeply committed to being engaged with the community.
In 2023, BKV launched the first “BKV First Responder Grant Program”. This initiative is designed to establish partnerships with local first responders by providing them with financial support to enhance their services. The program started with a “First Responder Lunch and Learn” event, where BKV began discussions on safety, operations, and partnership opportunities.
First Responders in the operational areas in Texas and Northeastern Pennsylvania were invited to participate by submitting a simple one-page grant application. The community relations committee then reviewed all applications and ultimately awarded a total of 8 grants in the amount of over USD 30,000.
Location
The U.S.
Beneficiary
8 local first responders
Project duration
1 year (2023-Current)
Community Engagement in The U.S.
BKV participated in National Volunteer Week, a special time when people come together to offer their time and energy to make a difference in their communities. To celebrate, BKV partnered with local organizations and joined several volunteering events across Colorado, Texas, and Pennsylvania.
Overall, BKV contributed over 110 hours of volunteer work, making National Volunteer Week a resounding success. These events empowered employees to positively impact lives, and the company. BKV remains committed to fostering a healthier world through ongoing acts of kindness.
Community complaint management