ESG and the Energy and Natural Resources Sector

"Just because you intend to do good, it doesn't mean that you cannot cause harm", was the advice from Chris Goodwin-Hudson, founder of Watchman, a specialist risk management business trading under the strapline "Where security meets social responsibility", during a September 2020 DLA Piper hosted webinar. On major energy and infrastructure projects around the world, Chris and his colleagues reduce the threat to their clients through what they term "holistic security" with a view to fostering community acceptance that sustains a project through its lifespan and beyond.

During the event, Chris shared his professional and personal insight on lessons learned from community engagement in support of energy and natural resources sector projects across the world, and regular challenges he comes up against referred to as "the 5 P's", specifically People, Planet, Partnerships, Prosperity and Peace:

People

In relation to people, Chris shared his direct experience of the significant and striking impact which a proactive approach to diversity and inclusion can have on a project. By focusing on ensuring representation for under-represented groups and gender diversity Chris explained how he was able to achieve material positive change in relation to environmental and human rights issues in a way that literally saved lives and empowered local communities with the right tools to protect their ancestral territories.

Planet

Chris shared examples of projects where he's been involved which left the local eco system in a healthier place than before the project started, whilst also facilitating the progress of the project. He explained his role in the installation of a pipeline in Southeast Europe. By applying carefully constructed mountain membrane, the project re-built a ridgeline feature and in so doing stabilised the rock formation, resulting in reduced avalanche, landslide and flash flooding risk during harsh winters.

Partnerships

It can be challenging to quantify the impact of a project when, for example, farmland becomes a worksite or when locals are evicted from a home they have lived in for generations. Chris explained the way that solutions can be found through partnership, citing as an example the effect of giving local communities access to an archaeological excavation on a project site, a strategy of a type which engages the community, easing their concerns, and also reduces project social risk.

Prosperity

Chris explained how equity and inclusion play a vital role in the economic health of a region, and the economic benefits of a project must where possible be distributed equally and transparently through the local country and the host nation. Chris gave examples of how local investment leads to long-term sustainable growth, and how that is positive for the project.

Peace

Addressing conflict with communities without exacerbating the issue can be of vital importance to the success of a project, particularly where the conflict has arisen unexpectedly and as a result of the project's presence. Chris gave an example from Central America of an agribusiness where his team were engaged in disarming a heavily armed private security contract as means of winning over host community trust and reducing conflict levels.

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