Background

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Investors, amongst all stakeholders, have the most potential influence on company behavior as they provide capital that is indispensable to business success. And investors are eager for information about the environmental and human rights risks in the nickel mining industry in Indonesia (which produces about half of the world’s nickel) because of the inherently risky nature of mineral extraction, well-publicized incidents in Indonesia, and a lack of transparency by the Chinese companies that dominate the industry. The adverse impacts of Indonesian nickel mining are well documented: pollution, deforestation, conflicts with indigenous people, forced labor and occupational hazards for Indonesians and Chinese migrants, food insecurity, public health issues, and economic inequality in the nickel mining and processing regions.

 

Further, investors have expressed frustration with the limitations of information they receive from public corporate filings, voluntary disclosure by companies, and audit reports, and many are aware of the distortions they contain. They appreciate that NGOs, community organizations, and labor unions possess information that is valuable as a vital supplement to the other information they receive, providing unique perspectives from the affected stakeholder point of view on the two-way communication with companies.

 

Information from those sources, however, comes in a form that is not sufficiently actionable by investors. NGO reports, for example, provide information that is out of date by the time the report is issued, will not be regularly updated over time, and are typically restricted to specific companies or locations. Furthermore, the information comes in the form of lengthy narratives that make it difficult for the investor to extract what is relevant for investment decisions, which they often must make quickly.

 

Our workshop will bring together investment professionals and NGOs with ties to local Indonesian communities to explore what types and forms of information investors consider most useful to incorporate into their risk assessment frameworks.  More specifically, it will explore how information about affected stakeholder perspectives – particularly regarding companies’ efforts to communicate with them – can be effectively conveyed to the investment community for the purpose of encouraging investor action to influence company behavior positively. 

 

Workshop participants will discuss several interrelated questions on how best to motivate investor action to support the reduction of harmful impacts of Indonesia’s nickel mining industry, including on women workers and indigenous communities.

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Key Objectives

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• Better understanding by civil society of investors' informational needs relating to HREDD on company engagement with affected stakeholders, as well as what forms of information are most actionable by investors. 

• Development of shared vocabulary and mutual understanding between investors and civil society about how to communicate information that can effectively engage investors in influencing company behavior to reduce harmful impacts on people and the planet. 

• Accomplishing initial steps in building direct relationships between investment actors and local communities directly affected by nickel mining in Indonesia.

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Guiding Questions

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• What are the key differences between investor and company perspectives on risks relating to harmful impacts on various stakeholders, including women workers and indigenous communities? 

• How might investors be expected to act if they have information casting doubt on company claims about their engagement with affected stakeholders? 

• What specific requirements might investors have regarding the form that information needs to take in order to be incorporated into their risk assessment systems?

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Format

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We will use a "fishbowl" facilitation method with a limited audience (approximately 25 people) to allow for collaborative participation. The workshop will kick off with a roundtable discussion with Indonesian NGOs that have experience assessing the community impact of nickel mining in Indonesia, followed by investment professionals speaking to what kind of Human Rights and Environmental Due Diligence (HREDD) information would be actionable for investors and why. Following these two rounds, the floor will be opened for audience members to comment and ask questions..

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Session Partners