Another look at achieving the United Nations Sustainable Development Goals: using extraction projects as a source for financing impact projects?

Abstract

A workable definition of a successful project is ‘a project which has achieved its pre-set objectives’. The immediate follow-up question is: which and whose objectives? Traditionally, project objectives are (1) budget, (2) time and (3) quality, also known as the triple constraint or iron triangle. If, however, the objectives were also to include (4) completion and operation of the project to the satisfaction of all relevant stakeholders, and (5) without disputes, it would be possible to develop objectives that are aligned for all stakeholders involved. Including stakeholder objectives with the associated environmental objectives brings such projects within the realm of the triple bottom line concept of balance or harmony among economic, social and environmental interests. Such stakeholders should include not only the developer or employer of projects but also, typically, the contractor(s), project team, operator, clients, users, funders, relevant authorities and affected communities. If the interests of such stakeholders – whether using Free Prior and Informed Consent processes or not – could be mediated into high-level aligned objectives, ideally, there would be no conflicting interests. Thus, a higher probability of achieving success would be within reach. For the development of successful impact projects (ie projects with a positive impact on one or more of the United Nations (UN) Sustainable Development Goals (SDGs) while generating revenue), the challenge is to identify relevant multi-stakeholder groups and to develop a joint ‘Ecosystem of Shared Value’. Probably, such projects would be part of larger portfolios or programmes leading to the development of corridors as an umbrella for further projects combining infrastructure, energy and related sectors. It is worth further considering to what extent location-dependent projects – such as those developed by the extraction industry, water or power projects – could act as cost drivers and catalysts for sustainable economic development, social and environmental benefits, as part of a long-term vision for regions to be developed.

Disclosure statement

The author is a board member of the Responsible Mining Foundation. No further potential conflict of interest was reported by the author.

Notes

1 Arent van Wassenaer, A Practical Guide to Successful Construction Projects (Routledge 2017), 6

2 Kate Davis, ‘An Empirical Investigation into Different Stakeholder Groups Perception of Project Success’ (2017) 35 International Journal of Project Management 604

3 Martina Huemann and Gilbert Silvius, ‘Projects to Create the Future: Managing Projects Meets Sustainable Development’ (2017) 35 International Journal of Project Management 1066

4 Kramer, Mark R., and Marc W. Pfitzer. ‘The Ecosystem of Shared Value’ (October 2016) 94 (10) Harvard Business Review 81

5 The Southern Agricultural Growth Corridor of Tanzania (‘SAGCOT’) Initiative is a Public-Private Partnership initiated at the World Economic Forum (WEF) Africa (WEFA) Summit in Dar es Salaam in 2010. Further information can be found on its website: https://sagcot.co.tz (March 2022) <www.sagcot.com>

6 World Economic Forum and OECD, Blended Finance Vol. 1: A Primer for Development Finance and Philanthropic Funders, September 2015 (accessed at http://www3.weforum.org/docs/WEF_Blended_Finance_A_Primer_Development_Finance_Philanthropic_Funders.pdf on 8 July 2017), p. 6

7 See International Finance Corporation, Climate Investment Opportunities in Emerging Markets - An IFC Analysis (International Finance Corporation, 2016). IFC assesses the national climate change commitments and other policies in 21 countries and finds an initial investment opportunity of US $23 trillion from 2016 to 2030 in key sectors

8 See an interview in ‘Top1000funds', <www.top1000funds.com/analysis/2017/02/01/pggm-apg-lead-dutch-sustainability-push/> accessed 8 July 2017

9 Source <https://en.wikipedia.org/wiki/List_of_wind_farms_in_South_Africa>

10 Bloomberg New Energy Finance and The World Bank’s Lighting Global Group, Off-Grid Solar Market Trends Report 2016 (February 2016) (Lighting Global Group Report)

11 Nigel Bruce, Rogelio Perez-Padilla, Rachel Albalak, ‘Indoor Air Pollution in Developing Countries: A Major Environmental and Public Health Challenge' (January 2000) 78 Bull World Health Organ, Genebra

12 Lighting Global Group Report (n 9)

13 Lighting Global Group Report (n 9)

14 The Big Idea: Creating Shared Value. ‘How to Reinvent Capitalism—and Unleash a Wave of Innovation and Growth' (January 2011) 89 (1–2) Harvard Business Review 62–77

15 <https://responsibleminingindex.org>

16 <www.angloamerican.com/sustainability/our-sustainability-strategy>

17 <www.angloamerican.com/futuresmart/our-world/communities/our-blueprint-for-the-future-of-sustainable-mining>

18 van Wassenaer (n 1), 6

19 Davis (n 2)

20 Huemann and Silvius (n 3)

21 ‘NIMBY’ is an acronym for ‘not in my backyard’

22 van Wassenaer (n 1), 63

23 Porter and Kramer (n 13), 66

24 <www.commonland.com>

25 Willem Ferwerda, 4 Returns, 3 Zones, 20 Years, A Holistic Framework for EcologicalRestoration by People and Business for Next Generations (2nd Edition, 2015, Rotterdam School of Management, Erasmus University i.a.w. IUCN Commission on Ecosystem Management and Commonland)

26 As presented by C. Otto Scharmer in Theory U : Leading from the Future as It Emerges: The Social Technology of Presencing, 2009

27 André Brasser and Willem Ferwerda, 4 Returns from Landscape Restoration, A Systemic and Practical Approach to Restore Degraded Landscapes (Commonland Foundation, 2017), 34

28 <www.commonland.com/en/network/certified/baviaanskloof-development-company>

29 <www.commonland.com/en/projects/187/los-v-lez-altiplano>

30 Michael Porter and others, Yara International: Africa Strategy (Harvard Business School Case 9-715-402, Rev 21 July 2016), 11

31 Michael Porter, Mark Kramer, Jorge Ramirez-Vallejo, Kerry Herman, Yare International: Africa Strategy (Harvard Business School, 9-715-402, Rev July 21, 2016)

32 van Wassenaer (n 1), 70

33 André Brasser and Willem Ferwerda, 4 Returns from Landscape Restoration, a Systemic and Practical Approach to Restore Degraded Landscapes (Commonland Foundation 2017), 34

34 Porter and others (n 28), 12

35 Eefje Cuppen and others, ‘Stakeholder Engagement in Large-Scale Energy Infrastructure Projects: Revealing Perspectives Using Q Methodology’ (2016) 1347 International Journal of Project Management, 1350

36 J. Seiffert-Brockmann, W. Weitzl and L. Felzmann, ‘Stakeholder engagement through gamification: effects of user motivation on psychological and behavioral stakeholder reactions’ (2016). Paper accepted for presentation at the 18th Annual Congress of the European Public Relations Education and Research Association (EUPRERA), 29 September–1 October 2017, Groningen, Netherlands

37 <www.fmo.nl/news-detail/cc565170-697a-48d1-8475-1598251d0b2b/launch-of-innovative-climate-fund-climate-investor-one>

38 Details of the facility can be found at <http://climatefinancelab.org/idea/fmo-climate-development-finance-facility/>

39 See <www3.weforum.org/docs/WEF_Blended_Finance_How_To_Guide.pdf> for further information on blended finance