Environmental-Social-Health Risk and Impact Management Process

Project phase Business case evaluation A2

e-shrimp activity Risks, opportunities and assessment

Description
This is a high-level desktop review of the major ESH aspects of a country or region, in which there are no existing company operations, in
relation to intended activities. It will feed into an assessment of the business risks and opportunities with respect to the prevailing and
potential future regulatory, financial and voluntary instruments/constraints in the country. There may be one overall document that fulfills
company expectations as well as those from regulators and lenders. In some cases the overall document may be developed in pieces to
satisfy requirements of a key external stakeholder.
An ESH profile is a document that summarises key regulatory aspects and background information about the country in question, but stops
short of undertaking a risk assessment for potential company operations.
A Risk and Opportunities Assessment is performed and aspects of the ESH profile that might lead to constraints on the company and its
planned business activities are documented in a register. It goes beyond the ESH profile by doing an ESH risk assessment.
A screening note may also be required by government regulators or lending institutions (eg those subscribing to the Equator Principles)
with respect to the requirements of the ESH appraisal process for a development of this type. This is included on this task sheet as an
optional deliverable as not all regulators or lenders require this to be undertaken.
All deliverables, 1–4 are intended to support the business case decision-making process and therefore should be provided to the
appropriate business managers/directors.

Purpose
To feed key risks and opportunities relating to environmental, social and health issues and the regulatory, financial and voluntary
instruments/ constraints, in a timely and effective manner, into the process of determining the viability of a business case in the country.
Also, if required, provide a screening assessment to satisfy the requirements of regulatory bodies or financial institutions.

Deliverable Key Task

1 A country and regional ESH profile
report
2 Risk and opportunities register
3 Screening note (if required)
4 Guidance for Business Visitors
Undertake a regional and country ESH profile.
Undertake a risk and opportunities assessment.
Undertake an internal screening assessment, as required, to satisfy regulators
or lender requirements and summarise as a Screening note.
Undertake a brief guide to the country and its potential risk whilst travelling.

Checklists
1 Undertake a regional and country ESH profile
a Review any government/ third party strategic level assessments and list key requirements (ie is there a
government led Strategic Environmental Assessment already in place in which this project would fit?) [   ]

1.1 Undertake a desktop assessment that may include:

Environment:
a Geographical description of the country and/or region. [   ]
b Major regional habitat types in relation to intended activities. [   ]
c Environmental regulator for the oil and gas industry. [   ]
d Environmental regulations. [   ]
e Environmental impact assessment requirements. [   ]
f Emission and discharge standards. [   ]
g Environmental quality standards and criteria. [   ]
h Existing regional environmental quality. [   ]
i National biodiversity policy. [   ]
j Protected areas in the region. [   ]

© 2007 OGP 
International Association of Oil & Gas Producers

k Regional biodiversity issues. [   ]

l Major national and regional environmental NGOs. [   ]
m Major national and regional environmental research institutes. [   ]
n Overview of regional natural resource users and the productivity in relation to intended activities. [   ]
o Waste management requirements and existing infrastructure. [   ]

Social:
a Social impact assessment requirements. [   ]
b General socio-economic situation and development. [   ]
c Income distribution. [   ]
d Ethnic composition and minority groups. [   ]
e Social security system. [   ]
f Education system and level of education. [   ]
g National and regional government and politics. [   ]
h National and regional employment and labour. [   ]
i Technical capability with regard to oil and gas industry. [   ]
j Regional population/demographic movement. [   ]
k Regional economic environment and development. [   ]
l Regional natural resource management and land-use. [   ]
m Regional community organisation and local institutions. [   ]
n Regional social services and infrastructure. [   ]
o Vulnerable groups and human rights. [   ]
p Regional social conflict. [   ]
q Regional lifestyle and culture. [   ]
r Existing national and regional infrastructure in relation intended activities. [   ]
s Regional social NGOs. [   ]
t Major national and regional social research institutes. [   ]
u National and regional transportation safety. [   ]
v National and regional public safety and security. [   ]

Health:
a National and regional public health care system. [   ]
b Regional health care infrastructure and capabilities. [   ]
c Regional changes in nutrition status. [   ]
d HIV/AIDS prevalence, sexually transmitted diseases [STDs] and communicable diseases and prevalence. [   ]
e Major endemic diseases and prevalence. [   ]
f Life expectancy and general health conditions. [   ]
g Health requirements for visitors. [   ]
h Major national and regional health research institutes. [   ]

1.2 Conduct a gap analysis. This could include:

Environmental information gaps:

a Develop Terms of Reference [ToR] to measure local environmental quality, environmental baseline survey,
ecological studies in protected areas or areas of high biodiversity value. [   ]
b Understand and address the environmental expectations of the environmental regulator, environmental NGOs,
environmental research institutes, lending institution(s), other natural resource users. [   ]

 © 2007 OGP
 Environmental-Social-Health Risk and Impact Management Process

Social baseline gap:

a Develop ToR for social setting survey, socio-economic survey. [   ]
b Understand and address the Socio-economic expectations of the regulator, regional and local governments,
development agencies, local business community, social NGOs, local community groups, social and economic
research institutes, lending institution(s). [   ]

Health information gap:

a Develop ToR for community health survey. [   ]
b Understand and address the Health expectations of health authorities, social NGOs, local community groups,
local healthcare providers, health research institutes, lending institution(s). [   ]

Update list of key project issues:

a List of protected/sensitive sites – ecology, archaeology, cultural, religious etc. [   ]
b Existing local issues – water, power, waste, quality of life, medical care, education etc. [   ]
c Conduct an overview impact evaluation based on the sensitivity of the ESH components and the nature of the
project. [   ]
d Identify consultants based on local knowledge and experience. [   ]
e Consider the need for local capacity building. [   ]
f Prepare or obtain ToR for the appropriate ESIA for the project stage, eg for exploration survey. [   ]

2 Undertake a risk and opportunities assessment, relating specifically to potential constraints

and advantages to the company, its business activities and its associated stakeholders.
This may include:
a Review the information in the regional/country ESH profiles. [    ]
b Assess, in terms of business activity, the national and international regulatory, financial and voluntary
instruments/constraints. [   ]
c Clarify national permitting and approvals process and timescales. [   ]
d Assess the aspiration and expectations of the operator and government/key stakeholders. [   ]
e List of key social, environmental and health issues (from ESH regional/country profiles). [   ]
f Undertake a risk assessment on the major ESH issues. [   ]
g Assess risk manageability and provide recommendations for risk reduction. [   ]
h Where appropriate, develop a system to enable transparent documentation of decision-making process. [   ]

3 Undertake an internal screening note (if required). A screening note may be required by
regulators in the country where the business activities will take place, or by the financial
institutions funding the project to list the major autonomous emerging ESH issues
The note may include:
a Executive summary. [   ]
b Policy, legal and administrative framework. [   ]
c Project description. [   ]
d Public safety and security; transportation safety. [   ]
e Initial assessment of the high-level environmental, social and health impacts relating to the business activities
proposed. [   ]
f Initial identification and analysis of alternatives. [   ]
g Need for and extent of formal impact assessment. [   ]
h Conclusions. [   ]

4 Guidance for business visitors

The note may include:
a Health requirements for visitors (vaccinations, prophylaxis, first-aid preparedness). [   ]
b Public safety and security measures to be taken. [   ]
c Transportation safety requirements (air fixed wing/helicopter, road, water, public transport). [   ]
d List of support agencies and contacts (embassy, hospitals, medivac etc). [   ]

© 2007 OGP