Partner: FSG (Harvard Professor Michael Porter's consultancy)

Although the oil and gas (O&G) and mining industries, representing ~5% of global GDP, have massive economic output, it has not always translated into improved social and environmental outcomes.  After intensive global research, FSG highlights how extractive companies can create shared value by pursuing strategic opportunities that tie business gains to the prosperity of host communities and countries, often in collaboration with government and not-for-profits. Specifically, shared value is defined as policies and activities that measurably improve socio-economic outcomes and improve core business performance through decreasing operational costs and increasing productivity.

Concretely, this can be done through,
(i)   building local markets for intermediate products;
(ii)  redefining productivity in the value chain, including capacity building for the local workforce and improved utilisation of water; and
(iii) creating an enabling local environment.

Through international and local case studies, FSG will examine how to align shared value within operations, and overcome potential obstacles, e.g. measuring the financial impact, aligning with government, and removing internal barriers. The role of the private sector is being continuously challenged and redefined, and companies that view host country stakeholders as partners will have a competitive advantage.

The workshop will be facilitated by Chile Hidalgo, a Director of FSG.  Chile Hidalgo has spent the last year researching the role of shared value in the extractive sectors and is co-autohor of the FSG report on shared value in extractives, Extracting with Purpose.

For more information on the Extractive Sector programmes contact: cindy.bintang@international.gc.ca.

To download the copy of agenda in PDF click here.