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Global Agenda Council on the Arctic

Arctic Investment Protocol

Guidelines for Responsible

Investment in the Arctic

December 2015

GRU, Alm.del - 2016-17 - Bilag 22: Opsamling på Grønlandsudvalgets deltagelse i Arctic Circle Forum i Quebec

Arctic Investment Protocol

The Arctic is a diverse, rapidly-changing and

environmentally sensitive region that is home for its four

million residents and also an emerging global investment

opportunity. To balance these dimensions, the Investment

Protocol of the World Economic Forum Global Agenda

Council on the Arctic aspires to promote sustainable and

equitable economic growth in the region that furthers

community well-being and builds resilient societies in a

fair, inclusive and environmentally sound manner. The

following principles lay the foundation for responsible Arctic

development:

1. Build resilient societies through economic

development

–

Take a long-term investment view

–

Promote long-term sustainability and economic

diversification of projects and communities

–

Create job opportunities and skills for residents, develop

human capital that can serve to develop and diversify

regional economies

–

Promote development of civil societies through

economic growth

–

Openly discuss active partnerships with Arctic

communities through investment opportunities

2. Respect and include local communities and

indigenous peoples

–

Respect the rights of indigenous and local people and

mitigate any adverse impact on their traditional

practices

–

Consult with local authorities, indigenous governance

structures and relevant community authorities

–

Before undertaking any activity that might adversely

affect the traditional practices and livelihood of local

communities and indigenous peoples, develop a

consultation process that seeks agreement and

complies with domestic laws

–

Promote capacity-building in local communities and

with indigenous peoples in order to enable active

participation in processes concerning the land, territories

or resources

3. Pursue measures to protect the environment of the

Arctic

–

Review the feasibility of investment opportunities by

balancing economic benefits with environmental and

climate goals, incorporating environmental and social

concerns into investment analysis

–

Recognize the close linkages between the biophysical

environment and society in the Arctic, and approach

impact analysis in a holistic manner. Responsibly

engage local communities in pursuit of measures to

protect the Arctic environment with an ecosystem-based

management approach where such an approach is

required by national and international law

–

Pursue technically and financially feasible measures

that minimize the potential for adverse impact on the

environment and health

–

Where project impact is unknown or difficult to assess,

investors and developers should take measures

to manage project impact by implementing strong

mitigation procedures and following a scientific and

knowledge-based approach

4. Practice responsible and transparent business

methods

–

Conduct all business in a fair, legal and transparent

manner; actively fight corruption

–

Evaluate, report as required and address impacts on, as

well as benefits for, communities and the environment at

all stages

–

Encourage the development of a grievance process for

local communities, indigenous peoples and other Arctic

stakeholders, in compliance with domestic laws

5. Consult and integrate science and traditional

ecological knowledge

–

Pursue rigorous scientific research working towards

understanding the impact of investment projects and of

the broader effects of commercial activity in the Arctic

–

Develop an overall foundation for investment

that integrates rigorous science with traditional/

local ecological knowledge to ensure adequate

environmental, social and economic impact assessment

–

Adhere to accepted research norms for baseline data

and impact monitoring in conjunction with investment

World Economic Forum ®

No part of this publication may be reproduced or

transmitted in any form or by any means, including

photocopying and recording, or by any information

storage and retrieval system.

REF 161115

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6. Strengthen pan-Arctic

collaboration and sharing of best

practices

–

Encourage public-private

partnerships and collaboration

where appropriate

–

Recognize that the Arctic is a

diverse and distinct environment

with large geographical,

demographic, seasonal and

climatic variations that will

determine the optimal regulatory

framework and approaches across

regions and situations

–

Promote cross-border dialogue

to adopt common standards

and best practices to maximize

the environmental, social and

financial benefits of development in

accordance with relevant national

and international laws.

As members of the global community

wishing that development in the Arctic

is responsible and sustainable, we

encourage citizens and organizations

around the world to support the

six broad principles of the Arctic

Investment Protocol.

International guidelines have been

consulted to inform the drafting of

the Arctic Investment Protocol. See

the Appendix for a full list of the

organizations consulted.

Guidelines for Responsible Investment in the Arctic

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Appendix

Aspen Principles for Long-Term Value Creation

Explicitly written as aspirational guidelines for good

business practice. In subscribing, and moving over time

to implement these outcome-oriented principles in their

own organizations, operating companies and investors are

leading by example and taking a stand that a long-term

focus is critical to long-term value creation.

http://www.aspeninstitute.org/sites/default/files/content/

images/Aspen_Principles_with_signers_June_10_0.pdf

The Aspen Institute (2007), Long-Term Value Creation:

Guiding Principles For Corporations and Investors.

Aspen Principles of Arctic Governance

–

The Principles

form the foundation and the standards by which future

governance and sustainable management of human

activities in the Arctic should be measured. The principles

are:

1. Optimize ecosystem resilience, integrity and productivity

by maintaining food-web (trophic) structure and

protecting and restoring biodiversity and available

habitat.

2. Maintain the full suite of Arctic ecosystem services to

support human well-being on a continuing basis.

3. Promote investment in scientific research and related

infrastructure necessary to ensure sustainable

development and environmental protection.

4. Avoid exacerbating changes that may be difficult or

impossible to reverse in temperature, sea-ice extent,

pH, and other key physical, chemical and biological

ecosystem parameters.

5. Assess, monitor and manage multiple human activities

using an integrated, adaptive, ecosystem-based

management system that takes into account risks and

cumulative and interacting effects.

6. Apply ecosystem management processes based on

science and traditional knowledge. New and expanded

human activities are subject to prior assessment.

Prudent measures to reduce or eliminate impacts are

to be taken when there are reasonable grounds for

concern that such activities will, directly or indirectly,

bring about hazards to human health, harm living

resources and ecosystems, damage amenities or

interfere with other legitimate uses.

7. Fully respect the rights, including human rights, of Arctic

residents and Arctic indigenous peoples, and maximize

participation in and transparency of decision-making for

all interested stakeholders.

8. Link global policy discussions to the need to conserve

and manage Arctic ecosystems and dependent

communities.

9. Promote cooperation among Arctic States to arrive at

appropriate standards for managing activities in the

Arctic to meet the special conditions of the Arctic region,

while promoting sustainable development.

10. Inform, in a timely manner, national and international

decision-makers as well as the public of the

consequences of climate change impacts in the Arctic,

and needed actions required to meet the above noted

principles.

Arctic Investment Protocol

https://dl.dropboxusercontent.com/u/4257743/Aspen-

Climate-Change-Report-v22lr%20%283.29.11%29.pdf

The Aspen Institute (2011), The Shared Future: A Report of

the Aspen Institute Commission On Arctic Climate Change

Equator Principles

- The Equator Principles is a risk

management framework, adopted by financial institutions,

for determining, assessing and managing environmental

and social risk in projects and is primarily intended to

provide a minimum standard for due diligence to support

responsible risk decision-making. The Equator Principles

apply globally, to all industry sectors and to four financial

products 1) Project Finance Advisory Services 2) Project

Finance 3) Project-Related Corporate Loans and 4) Bridge

Loans.

http://www.equator-principles.com/resources/equator_

principles_III.pdf

The Equator Principles Association (2011), The Equator

Principles

Extractive Industries Transparency Initiative

The Extractive Industries Transparency Initiative (EITI)

is a global Standard to promote open and accountable

management of natural resources. It seeks to strengthen

government and company systems, inform public debate,

and enhance trust. In each implementing country it is

supported by a coalition of governments, companies and

civil society working together. Natural resources, such as

oil, gas, metals and minerals, belong to a country’s citizens.

Extraction of these resources can lead to economic

growth and social development. However, when poorly

managed it has too often lead to corruption and even

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conflict. More openness around how a country manages its

natural resource wealth is necessary to ensure that these

resources can benefit all citizens. The EITI Principles are:

1. We share a belief that the prudent use of natural

resource wealth should be an important engine for

sustainable economic growth that contributes to

sustainable development and poverty reduction, but if

not managed properly, can create negative economic

and social impacts.

2. We affirm that management of natural resource wealth

for the benefit of a country’s citizens is in the domain of

sovereign governments to be exercised in the interests

of their national development.

3. We recognise that the benefits of resource extraction

occur as revenue streams over many years and can be

highly price dependent.

4. We recognise that a public understanding of government

revenues and expenditure over time could help public

debate and inform choice of appropriate and realistic

options for sustainable development.

5. We underline the importance of transparency by

governments and companies in the extractive

industries and the need to enhance public financial

management and accountability.

6. We recognise that achievement of greater transparency

must be set in the context of respect for contracts and

laws.

7. We recognise the enhanced environment for domestic

and foreign direct investment that financial transparency

may bring.

8. We believe in the principle and practice of accountability

by government to all citizens for the stewardship of

revenue streams and public expenditure.

9. We are committed to encouraging high standards

of transparency and accountability in public life,

government operations and in business,

10. We believe that a broadly consistent and workable

approach to the disclosure of payments and revenues is

required, which is simple to undertake and to use.

11. We believe that payments’ disclosure in a given country

should involve all extractive industry companies

operating in that country.

12. In seeking solutions, we believe that all stakeholders

have important and relevant contributions to make –

including governments and their agencies, extractive

industry companies, service companies, multilateral

organisations, financial organisations, investors, and

non-governmental organisations.

https://eiti.org/eiti/principles

Extractive Industries Transparency Initiative (2003),

The EITI Principles

International Council on Mining & Metals Indigenous

Peoples and Mining Position Statement

This

position statement sets out ICMM members’ approach to

engaging with Indigenous Peoples and to free, prior and

informed consent (FPIC) ICMM’s vision is for constructive

relationships between mining and metals companies and

Indigenous Peoples that are based on mutual respect,

meaningful engagement, trust and mutual benefit.

Recognizing the potential vulnerability of Indigenous

Peoples, the commitments in this position statement may

be summarized as requiring members to: respect the

rights, interests, special connections to lands and waters,

and perspectives of Indigenous Peoples, where mining

projects are to be located on lands traditionally owned by

or under customary use of Indigenous Peoples; adopt and

apply engagement and consultation processes that ensure

the meaningful participation of indigenous communities in

decision making, through a process that is consistent with

their traditional decision-making processes and is based

on good faith negotiation; work to obtain the consent

of Indigenous Peoples where required by this position

statement.

https://www.icmm.com/document/5433

International Council on Mining and Metals (2013),

Indigenous Peoples and Mining Position Statement

International Maritime Organization (IMO)

As a

specialized agency of the United Nations, IMO is the

global standard-setting authority for the safety, security

and environmental performance of international shipping.

Its main role is to create a regulatory framework for the

shipping industry that is fair and effective, universally

adopted and universally implemented.

http://www.imo.org/en/About/Pages/Default.aspx

International Finance Corporation (IFC) Performance

Standards on Environmental and Social Sustainability

The Performance Standards provide guidance on how

to identify risks and impacts, and are designed to help

avoid, mitigate, and manage risks and impacts as a way of

doing business in a sustainable way, including stakeholder

engagement and disclosure obligations. The Performance

Standards are:

–

Performance Standard 1: Assessment and Management

of Environmental and Social Risks and Impacts

–

Performance Standard 2: Labor and Working Conditions

–

Performance Standard 3: Resource Efficiency and

Pollution Prevention

–

Performance Standard 4: Community Health, Safety,

and Security

–

Performance Standard 5: Land Acquisition and

Involuntary Resettlement

–

Performance Standard 6: Biodiversity Conservation and

Sustainable Management of Living Natural Resources

–

Performance Standard 7: Indigenous Peoples

–

Performance Standard 8: Cultural Heritage

Guidelines for Responsible Investment in the Arctic

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http://www.ifc.org/wps/wcm/connect/115482804a025

5db96fbffd1a5d13d27/PS_English_2012_Full-Document.

pdf?MOD=AJPERES

International Finance Corporation (2012), Performance

Standards on Environmental and Social Sustainability

National Science Foundation (U.S.) Principles for the

Conduct of Research in the Arctic

The principles are

formulated to provide guidance for researchers in the

physical, biological, behavioral, health, economic, political,

and social sciences and in the humanities. These principles

are to be observed when carrying out or sponsoring

research in Arctic and northern regions or when applying

the results of this research. The principles address the need

to promote mutual respect and communication between

scientists and northern residents. Cooperation is needed

at all stages of research planning and implementation in

projects that directly affect northern people. Cooperation

will contribute to a better understanding of the potential

benefits of Arctic research for northern residents and will

contribute to the development of northern science through

traditional knowledge and experience.

http://www.nsf.gov/geo/plr/arctic/conduct.jsp

National Science Foundation, Principles for the Conduct of

Research in the Arctic

Organisation for Economic Cooperation and

Development Guidelines for Multinational Enterprises

The OECD Guidelines for Multinational Enterprises

(MNEs) are a set of recommendations on responsible

business conduct addressed by governments to

MNEs operating in or from adhering countries. They

are supported by representatives of business, worker

organisations and non-governmental organisations. They

are most comprehensive set of government-backed

recommendations on responsible business conduct

in existence today. The governments adhering to the

Guidelines aim to encourage and maximize the positive

impact MNEs can make to sustainable development and

enduring social progress. They provide voluntary principles

and standards for responsible business conduct in areas

such as employment and industrial relations, human rights,

environment, information disclosure, combating bribery,

consumer interests, science and technology, competition,

and taxation. The Guidelines were first adopted in 1976

and have been reviewed 5 times since then (the last time in

2011) to ensure that they remain a leading tool to promote

responsible business conduct in the changing landscape of

the global economy. The Guidelines were developed with

the active participation of business, labour, NGOs, non-

adhering countries and international organisations.

Adhering countries are obliged to set up National

Contact Points (NCPs) that are tasked with furthering the

effectiveness of the Guidelines by undertaking promotional

activities, handling inquiries, and providing a mediation and

conciliation platform for resolving issues that arise from the

alleged non-observance of the Guidelines. This makes the

Guidelines the only international corporate responsibility

instrument with a built-in grievance mechanism.

Arctic Investment Protocol

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The Guidelines focus on two aspects of the business-

society relationship: 1) positive contribution MNEs can

make to sustainable development, and 2) avoiding adverse

impacts and addressing them when they do occur.

Addressing the two sides of the same coin in a holistic

manner is one of the most important contributions the

Guidelines make in the global field of responsible business

conduct.

http://mneguidelines.oecd.org/MNEguidelines_

RBCmatters.pdf

OECD Guidelines For Multinational Enterprises Responsible

Business Conduct Matters

UN Guiding Principles on Business and Human Rights

General Principles

These Guiding Principles are grounded in recognition of:

(b) The role of business enterprises as specialized organs

of society performing specialized functions, required to

comply with all applicable laws and to respect human

rights; and

appropriate and effective remedies when breached.

Foundational Principles

II. The corporate responsibility to respect human rights

Business enterprises should respect human rights. This

means that they should avoid infringing on the human

rights of others and should address adverse human rights

impacts with which they are involved.

III. Access to remedy

As part of their duty to protect against business-related

human rights abuse, States must take appropriate steps to

ensure, through judicial, administrative, legislative or other

appropriate means, that when such abuses occur within

their territory and/or jurisdiction those affected have access

to effective remedy.

http://www.ohchr.org/Documents/Publications/

GuidingPrinciplesBusinessHR_EN.pdf

United Nations (2011), Guiding Principles on Business and

Human Rights

UN Principles for Responsible Investment

The United

Nations-supported Principles for Responsible Investment

(PRI) Initiative is an international network of investors

working together to put the six Principles for Responsible

Investment into practice. Its goal is to understand the

implications of sustainability for investors and support

signatories to incorporate these issues into their investment

decision making and ownership practices. The six

principles are:

–

Principle 1: We will incorporate ESG issues into

investment analysis and decision-making processes.

–

Possible actions:

–

Address ESG issues in investment policy statements

–

Support development of ESG-related tools, metrics, and

analyses

–

Assess the capabilities of internal investment managers

to incorporate ESG issues

–

Assess the capabilities of external investment managers

to incorporate ESG issues

–

Ask investment service providers (such as financial

analysts, consultants, brokers, research firms, or rating

companies) to integrate ESG factors into evolving

research and analysis

–

Encourage academic and other research on this theme

–

Advocate ESG training for investment professionals

–

Principle 2: We will be active owners and incorporate

ESG issues into our ownership policies and practices.

–

Principle 3: We will seek appropriate disclosure on ESG

issues by the entities in which we invest.

–

Principle 4: We will promote acceptance and

implementation of the Principles within the investment

industry.

–

Principle 5: We will work together to enhance our

effectiveness in implementing the Principles.

–

Principle 6: We will each report on our activities and

progress towards implementing the Principles.

http://www.unpri.org/about-pri/the-six-principles/

Principles for Responsible Investment Association (2006),

The Six Principles.

World Bank Group Environmental, Health and Safety

Guidelines

The EHS Guidelines are technical reference

documents with general and industry-specific examples

of Good International Industry Practice (GIIP). IFC uses the

EHS Guidelines as a technical source of information during

project appraisal activities. The EHS Guidelines contain

the performance levels and measures that are normally

acceptable to IFC, and that are generally considered to be

achievable in new facilities at reasonable costs by existing

technology.

http://www.ifc.org/wps/wcm/connect/topics_ext_

content/ifc_external_corporate_site/ifc+sustainability/

our+approach/risk+management/ehsguidelines

World Bank Group (2007), Environmental, Health and Safety

General Guidelines

Guidelines for Responsible Investment in the Arctic

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Members of the Global Agenda Council

on the Arctic

Anders Blom,

Chairman, Protect Sápmi

Anne-Marie Brady,

Editor-in-Chief, The Polar Journal

Lawson Brigham,

Distinguished Professor of Geography

and Arctic Policy, University of Alaska Fairbanks

Heather Conley,

Senior Vice-President, Europe, Eurasia

and the Arctic, Center for Strategic and International

Studies

Michael Daly,

Visiting Professor of Earth Sciences,

University of Oxford

Neil Hamilton,

Managing Director, Quaternary Research Pty

Ltd

Rúni M. Hansen,

Vice-President, Statoil ASA

Susan Harper,

Director-General and Senior Arctic Official,

Government of Canada

Sturla Henriksen,

Chief Executive Officer, Norwegian

Shipowners’ Association

Yoko Kamikawa,

Member of the House of Representatives

of Japan

Andrei V. Kortunov,

President, New Eurasia Foundation

Scott Minerd,

Chief Investment Officer, Guggenheim

Partners LLC

Ann Pickard,

Executive Vice President, Upstream Americas

– Arctic, Shell Energy Resources Company

Theodore Roosevelt,

Managing Director and Chairman,

Cleantech Initiative, Barclays

Laurence C. Smith,

Professor and Chair, UCLA Department

of Geography, University of California, Los Angeles (Vice-

Chair)

Jonas Gahr Støre,

Leader, Norwegian Labour Party (Chair)

Cho Tae-Yul,

Vice-Minister of Foreign Affairs, Ministry of

Foreign Affairs of the Republic of Korea

Mead Treadwell,

President, Pt Capital, LLC

Felix H. Tschudi,

Chairman of the Board and Owner,

Tschudi Shipping Company AS

Artem Volynets,

Chief Executive Officer, Sapinda CIS LLC

Jan-Gunnar Winther,

Director, Norwegian Polar Institute

Wang Yuhang,

Executive Vice-President and Party

Committee Member, China Ocean Shipping Group Co.

This Protocol is the result of a collaborative effort by the

members of the World Economic Forum Global Agenda

Council on the Arctic. It does not necessarily reflect the

individual opinions or ultimate commitments to be made in

all areas by the Council members, their organizations and/

or the World Economic Forum.

For further information contact Victoria Crawford at

[email protected]

GRU, Alm.del - 2016-17 - Bilag 22: Opsamling på Grønlandsudvalgets deltagelse i Arctic Circle Forum i Quebec

GRU, Alm.del - 2016-17 - Bilag 22: Opsamling på Grønlandsudvalgets deltagelse i Arctic Circle Forum i Quebec

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committed to improving the

state of the world, is the

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Public-Private Cooperation.

The Forum engages the

foremost political, business and

other leaders of society to shape

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