2010
          
        
        
          AMBATOVY SUSTAINABILITY REPORT
        
        
          37
        
        
          
            Society and Community Relations
          
        
        
          
            Targets for Social Performance in 2010
          
        
        
          Implement community impact mitigation strategies based
        
        
          on valid data and sound science (ICMM principle 4).
        
        
          Contribute to the social and institutional development of
        
        
          the communities in which we operate (ICMM principle 9).
        
        
          Implement effective and transparent engagement,
        
        
          communication and independently verified reporting
        
        
          arrangements with our stakeholders (ICMM principle 10).
        
        
          
            Results and Next Steps
          
        
        
          q
        
        
          While we have implemented mitigation strategies, such as
        
        
          the resettlement program, we have also met with unforeseen
        
        
          challenges due to construction, such as impacted rice fields
        
        
          along the pipeline, and have been working in 2010 and into
        
        
          2011 to manage and resolve these issues.
        
        
          q
        
        
          In 2010, we were largely focused on mitigation of impacts,
        
        
          which is a prerequisite for community development. Our
        
        
          social and institutional development programs were largely
        
        
          in the planning stages and will take on a greater role in 2011
        
        
          and beyond.
        
        
          q
        
        
          2010 was a pivotal year as we began planning an effective
        
        
          stakeholder engagement strategy. We made good
        
        
          progress, but look forward both to increasing and improving
        
        
          this engagement through clearly defined relationship
        
        
          programs in 2011. This includes a number of independent
        
        
          and in-house reporting mechanisms.
        
        
          q
        
        
          Major challenges encountered
        
        
          q
        
        
          Challenges en route to resolution
        
        
          q
        
        
          Good progress made toward goal
        
        
          
            C3.1 Management Approach to Society and
          
        
        
          
            Community Relations
          
        
        
          Ambatovy believes that our social license to operate comes
        
        
          from our communities and stakeholders. We are committed
        
        
          to working in a manner that is attuned to community
        
        
          expectations and acknowledge that we have a shared
        
        
          responsibility to help facilitate the development of strong and
        
        
          sustainable communities. By the end of 2010, we integrated
        
        
          four of the ICMM principles as our strategic social objectives.
        
        
          These strategic objectives correspond with four main areas
        
        
          of focus:
        
        
          3
        
        
          Impact mitigation
        
        
          3
        
        
          Community relationships
        
        
          3
        
        
          Community development
        
        
          3
        
        
          Economic development
        
        
          Impact mitigation seeks to provide an interface with
        
        
          communities directly affected by our activities and
        
        
          construction that will avoid, reduce or compensate for
        
        
          impacts. This is directly related to ICMM principles four
        
        
          and ten. Implementation can encompass a wide range of
        
        
          activities, including educating the local population on safety
        
        
          procedures and carrying out detailed prevention programs,
        
        
          such as our campaigns on HIV/AIDS and zero tolerance for
        
        
          child exploitation. The most significant aspects, however,
        
        
          are those mitigation measures that relate to resettlement
        
        
          and compensation for loss of assets and amenities. Our
        
        
          mitigation efforts also include initiatives such as our
        
        
          archaeological program, which put into practice our long-
        
        
          term commitment to help preserve Madagascar’s cultural
        
        
          heritage.
        
        
          Community relationships correspond to ICMM principle ten,
        
        
          an integrated approach that influences how we conduct all
        
        
          other activities. The cornerstone of community relationships
        
        
          is stakeholder engagement. Programs, such as awareness
        
        
          campaigns, the grievance mechanism, and community
        
        
          donations and support are just some of the ways we put
        
        
          this approach into practice. We also do it through informal
        
        
          relationships. We could not mitigate the effects of construction
        
        
          on a community without first cultivating a good relationship
        
        
          with that community. See section B3 for detailed information
        
        
          on our stakeholder engagement philosophy and the grievance
        
        
          mechanism. Donations and sponsorship strategies may be
        
        
          found in section C2.2.
        
        
          Finally, our community and economic development initiatives
        
        
          reflect our commitment to ICMM principles three and nine.
        
        
          Ambatovy is committed to making a positive, sustainable
        
        
          difference in the communities in which we work. The well-
        
        
          being of those affected by the Project’s activities is of
        
        
          primary importance and all initiatives within Ambatovy’s CSR
        
        
          strategy and framework documents reflect and underline
        
        
          this commitment. This includes a variety of programs and
        
        
          initiatives, such as health campaigns, education initiatives,
        
        
          investment in sustainable livelihood mechanisms and job
        
        
          creation through ALBI. For detailed information on all our
        
        
          economic development initiatives, see section C2.
        
        
          C3. Social Performance