We develop, construct, own and operate renewable energy projects in emerging markets. By having an active presence for up to 25 years, a unique opportunity exists to positively impact our local neighbours within each phase of a project.
Contributing to long-term local value creation is a key success criterion towards achieving the overall company goal of delivering competitive and sustainable renewable energy. We always strive to create long-term value, but we also acknowledge that there is risk of unintended consequences from developing, constructing and operating renewable power projects. In every project, we identify, mitigate and monitor risk and potential impact areas. Priority activities include community engagement, local recruitment, grievance handling, as well as planning and implementation of new and existing local development programmes.1See more
While we aim to create value, there is a risk of unintended consequences from project construction. We are continuously conscious of this and strive to complete risk identification and mitigation. The truly global reach of the organisation means that, in some instances, legal and governance frameworks are not always present to govern the standards of impact control within project communities.
Scatec is committed to operate in line with the Equator Principles and IFC’s Environmental and Social (E&S) Performance Standards (PS) to ensure consistent practices across all projects. Our work is also guided by the OECD Guidelines for Multinational Enterprises. Scatec respects all internationally recognised human rights including the International Bill of Human Rights and the International Labour Organisation (ILO) Declaration on Fundamental Principles and Rights at Work. Our human rights policy is aligned with the United Nations (UN) Guiding Principles on Business and Human Rights.
1 Please note that in many countries there is a distinction between mainly voluntary community investments (e.g., local development programmes) and mandatory compliance initiatives (e.g., grievances, local labour).
Significant potential impacts on local communities can include physical and economic displacement, changes in vegetation and infrastructure, and increased activity levels in the area. Impacts during construction such as traffic, noise, and dust are considered limited and effectively mitigated if and where nearby communities exist. For any significant actual or potential impacts, we follow strict requirements in line with the IFC PS and the Equator Principles.
Examples of positive and negative significant indirect economic impacts are disclosed in the context of external benchmarks and stakeholder priorities.
A stakeholder analysis and stakeholder engagement plan is carried out in accordance with the IFC’s Performance Standards and the Equator Principles for all projects. In line with our Sustainability Policy and Community Investment Procedure, a local needs assessment is always carried out prior to implementing any programmes. The community needs assessments are identified in close dialogue with local stakeholders and in consultation with local community members in order to address the prioritised needs and significant social challenges of the communities. The results of the assessments form the basis for our local development programmes.
High-level engagement with project partners, local governments and community leaders
Development of stakeholder engagement plan
Implement grievance mechanism
Stakeholder engagement with local governments, community leaders, local businesses and NGOs
Grievance mechanism fully operational
Employment of local labour during the construction phase
Appointment of local contractors (where possible)
Development programmes and initiatives conceptualised
Ongoing stakeholder engagement around community development
Grievance mechanism fully operational
Long-term relationships with local contractors for site operations and maintenance
Short and long-term development programmes and initiatives ongoing