Evaluating Possible Site Locations From a Social Perspective: Reducing Risks and Impacts

Abstract

Abstract For significant developments, particularly on greenfield sites, an evaluation of technically and financially feasible alternatives is recommended by international and industry organizations such as the International Finance Corporation (IFC) and IPIECA. From a social perspective, this evaluation is the opportunity to identify potentially significant social impacts of the development and how these may be avoided or reduced particularly through the choice of alternative project design elements or modified project locations. The process also facilitates early engagement with stakeholders on project design and impacts. In two very different social contexts in Africa and Asia, two Total subsidiaries recently undertook a social evaluation of different potential site locations for major installations, well pads, and onshore pipeline routes. In both cases, the social context was complex and significant social impacts for the local population were likely. Risks to the Company's image and reputation were also highlighted. The methodology for the evaluation included the definition of three categories of screening criteria based on: potential interactions between the community and future project facilities, sensitivity of the receiving environment, and the capacity of the community to accommodate changes driven by project facilities. A range of sub criteria allowed a detailed description of the three criteria and a ranking according to a four level evaluation as well as an estimation of probability. Potential avoidance and mitigation measures for the most significant impacts were identified where possible and, in one of the two cases, cost estimates were presented. While the methodology needed adapting according to the context, the overall approach proved to be robust in the identification of highly sensitive areas from a social perspective. In each case, it was possible to demonstrate social impacts leading to more significant social disruption and the risk of social disarticulation linked with certain sites compared to others. The ability to identify impacts on the population and, subsequently, risks and costs for the Company enabled the modification of preferred sites from a technical perspective in one case. In the second case, a parallel process was applied to evaluate the environmental sensitivities and a combined evaluation presented to the project team. This led to the ex-ante selection of sites with less social and environmental impact. This paper will describe the methodology that was developed for the social evaluation and its application in two contexts. It adds to the existing body of knowledge on the social evaluation of potential site locations by outlining an approach that may be adapted to very different and complex social contexts.