Selecting from the 'KPI menu'

The KPIs identified in the following section are not intended to be adopted wholesale by companies or practitioners for every project/activity undertaken. Rather, the KPIs provided represent example indicators that can be selected and/or adapted by companies or practitioners, as considered relevant to the local context, engagement requirements and timing for a project/activity.

In other words, it is anticipated that practitioners will select from the suite of KPIs presented, rather than use all of the KPIs.

LightbulbTip: As with any measures, targets, or indicators it is important that any KPIs developed are in accordance with the SMART criteria – specific, measurable, achievable, realistic and timely.

Overview of the KPIs

Some of the KPIs presented may relate to a particular technique/tool or communication method used (and if that has met the core principles outlined in Section 1), while others may relate to the outcomes achieved through the engagement process. It should be noted that the term ‘stakeholder’ is used throughout this section. However, it may be appropriate to disaggregate the data (e.g. by gender, age, ethnicity) collected, so that there is an understanding of how stakeholder(s) (such as vulnerable or disadvantaged groups) are accessing the engagement opportunities on offer. Further, some KPIs can be used to address multiple core principles. Where this occurs within this section, those KPIs have not been replicated, however cross-referencing is provided.

LightbulbTip: Resources outside of the oil and gas sector also provide insight into KPI development. Anglo American’s Social Way (v3.0) states that KPIs should be a combination of milestones, performance metrics and results metrics.

Frameworks of relevance

The increased focus on providing and maintaining transparency, influenced by evolving regulatory frameworks, has meant that companies are being required to set environmental and social targets, and demonstrate progress in achieving these targets.

Accordingly, in developing KPIs to manage the meaningfulness of stakeholder engagement conducted, there are several existing frameworks that need to be considered in order to ensure that KPIs can be easily translatable across company reporting requirements.

  • UN Guiding Principles on Business and Human Rights (UNGPs) effectiveness criteria
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    The UNGPs are the international framework on human rights and business, and are divided into three pillars – protect, respect and remedy. Principle 31 includes a set of effectiveness criteria which are the benchmark for non-judicial grievance mechanisms. Further detail is provided in Appendix D.

  • Global Reporting Initiative (GRI) Standards
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    The GRI Standards are best practice standards for public reporting on economic, environmental and social impacts. Disclosure 2-29 relates to an organisation’s approach to stakeholder engagement practices, including the purpose of stakeholder engagement and reporting on the meaningfulness of stakeholder engagement conducted.

  • Corporate Sustainability Reporting Directive (CSRD)
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    The CSRD makes it compulsory for companies to disclose sustainability information. The CSRD embeds indicators for corporate reporting that are similar to the existing environmental, social and governance (ESG) and Sustainable Development Goal (SDG) frameworks.

  • Corporate Sustainability Due Diligence Directive (CSDDD)
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    The aim of the CSDDD is to promote a sustainable and responsible corporate behaviour with human rights and environmental considerations embedded into companies’ operations and corporate governance. One of the benefits identified by the European Commission is the better awareness of companies’ negative environmental and human rights impacts.

LightbulbTip: Ipieca has existing resources to assist companies with implementing appropriately considered grievance mechanisms. The Community grievance mechanisms in the oil and gas industry publication provides a manual for implementing operational-level grievance mechanisms and designing corporate frameworks. It also provides examples of good practice options for applying the eight effectiveness criteria described in the UNGPs.

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