Mining industry gives big contribution for revenue sharing. The EITI Report (Extractive Industry Transparency Initiative) in 2010-2011 shows that revenue from oil and gas sector amount 23% and from mineral and coal amount 8,2% from total revenue. But on the otherside, this industry is one of business that impact to sustainable environment. The Economics of Ecosystems and Biodiversity report shows the environmental cost of business to global economy around 4,7 trilion. This impact comes from greenhouse gas, water use, land use, air pollution, land pollution, water, and waste.
That’s why its need to ensure that running business are aware with the social and environmental impact. This mechanism embody in framework/global standard such as OECD Guidlines, ISO 26000, Extractive Industry Transparency Initiative (EITI), ICMM, IFC Performance, TSM, etc.
In learning these global standards, PWYP Indonesia has PWYP Knowledge Forum, a monthly discussion. This forum invites Jalal from CSR + and he became speaker last Friday (28/8). Jalal explains several global standards that relate with extractive industry .
One of global standards is ISO 26000 (The International Organization for Standardization). Its become main reference in that generally accepted, also address the challenge global society need include Indonesia.
ISO 26000 has 7 principles and 7 core subjects. These principles i.g: accountability, transparency, ethical behaviour, respect for stakeholder interests, respect for international norms of behaviour, respect for human right. And the 7 core subjects i.g: : organizational governance, human rights, labor practices, the environment, fair operating practices, consumer issues, dan community involvement and development. Indonesia has agreed on ISO 26000 in Copenhagen, in 2010.
“Unfortunately, several acts that show after 2010 not refer to this standard. Such as the act about poor handling and the act about social welfare, are not refer to the seventh core i.g community involvement and development” said Jalal.
Another standard is ICMM (The International Council on Mining and Metals) that ratified since 2001 and its an catalyst in improve the performa of mining and metal industry. ICMM has 10 principles, 2 of them are: 1) contribute to the social, economic, and institutional development of the communities in which we operate, 2) implement effective and transparent engagement, communication, and independently verifief reporting arrangement with our stakeholders.
Meliana Lumbantoruan, Research and Knowledge Manager PWYP Indonesia said, “Government should not only adopt the global standard, but ensure that standard is implemented in Indonesia, particularly in extractive industry. Government can enforce with reward and punishment system.” Besides that, the community can use these global standards as an instrument in corporate social audit. Government is also should use the standards as reference in regulation arrangement.