HSSE Elements in Social Risk Assessment: An Integrated Approach in Managing Social Risks

Abstract

A key challenge for companies operating in the new global environment is social risk. The identification and mitigation of social risks enables the company to manage both the positive, and adverse actual or potential impacts created through its business activities, including through relationships with its partners. Social risks are often associated with issues of health, safety, security and environment (HSSE). Thus, the integration of HSSE elements is fundamental towards a comprehensive approach to managing social risks. This paper discusses the process of two internal assessment tools, the Social Risk Assessment (SRA) and Human Rights Due Diligence (HRDD) and how these have integrated HSSE elements. Both assessment tools have been used for projects to meet project financing requirements. The assessment allows social risks with elements of HSSE identified, thus mitigation can be introduced to reduce risk to the business. In carrying out both assessments, it is crucial to have a team with the necessary knowledge and skills that encompasses HSSE and Social Performance. This paper also highlights the efforts of the company in building internal talents to implement the assessments effectively through the establishment of the Social Performance technical skill group.