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Social impact assessment guidelines: the devil is in the implementation

13 November 2020
The NSW Government has recently updated its guidelines for major developments like the Narrabri Gas Project. Ahead of the online panel on the future of social impact assessment next week, Rebecca Lawrence, Gemma Viney and Susan Park discuss what this could mean for those most impacted.

By Rebecca Lawrence, Sydney Environment Institute; Gemma Viney, Department of Government and International Relations, Sydney Environment Institute; Susan Park, Department of Government and International Relations, Sydney Environment Institute.

In 2019, we saw the听Rocky Hill Coal Mine听dismissed on the grounds that the proposed mine would have significant adverse social impacts for the people of Gloucester. This was a historic decision and demonstrated to local communities around NSW that social impacts matter, and that their concerns deserved to be taken seriously. The social impacts of major developments have recently come again to the听听with the Narrabri Gas Project being approved by the Independent Planning Commission (IPC)鈥檚 in October 2020. Rather than further develop good social impact assessment practice, the process was deeply flawed. The recent Narrabri decision has highlighted the work that still needs to be done to ensure that social impacts are dealt with robustly and independently.

Already marginalised and disadvantaged groups 鈥 such as regional communities and Indigenous peoples 鈥 should not bear the burden of negative impacts, while other non-Indigenous peoples elsewhere reap the benefits.

Social Impact Assessments (SIA) are supposed to tell us听what听social impacts matter when it comes to proposed developments,听how听they will be managed, or indeed,听颈蹿听they can be managed at all. At the heart of SIA is the idea that government planning authorities should be making informed decisions about developments, and that the public good should be protected. In particular, already marginalised and disadvantaged groups 鈥 such as regional communities and Indigenous peoples 鈥 should not bear the burden of negative impacts, while other non-Indigenous peoples elsewhere reap the benefits. Crucially, the precautionary principle should also apply to SIA: assessments must ensure there is reasonable certainty about the expected impact predictions. The Rocky Hill case confirmed this view: in the absence of sufficient information about the impacts on Aboriginal people, the proponent鈥檚 SIA was deemed insufficient.

Following the recommendation of the IPC, the Commonwealth Government is soon due to make its much-awaited decision on the controversial Narrabri gas project. In the meantime, the NSW Department of Planning Industry and Environment (DPIE) has released an updated Social Impact Assessment (SIA) Guideline for all state significant projects. While the Narrabri Gas Project was not officially covered by the original 2017 DPIE SIA Guideline, and the Commonwealth won鈥檛 be obliged to apply the new 2020 SIA Guideline in its assessment of the project either, the question needs to be asked, what will change for similar projects once the new 2020 SIA Guideline comes into force?

Continuing with the example of the听Narrabri Gas Project:听at the national level, over听听of submissions opposed the project and at the local level,听听of submissions opposed it, yet the IPC approved it regardless. So, what role does public opinion play in decision making in New South Wales? How does the public submission process inform decision making? Or does it confirm criticisms that public submissions processes, like consultation processes more generally, play a performative role: they give the听appearance听of giving a space to community and public opinion,听. Without clarity on this issue, the perceived lack of meaningful engagement risks leaving communities feeling disenfranchised and disregarded by development proponents and planning authorities. Of course, if Social Impact Assessments (SIA) are done poorly, they too risk running into the same problem.

The NSW Department of Planning, Industry and Environment鈥檚 new SIA Guideline now applies to all听听(and not just resource projects). This means that the number of social impact assessments coming across DPIE鈥檚 desk are going to increase significantly, and the benchmark for the way these SIAs should be undertaken is now formalised to a higher standard. For example, the proposed 2020 Guideline states that engagement with Aboriginal people 鈥渟hould recognise and respect their rights and be culturally appropriate. In practice, this means: [鈥ensuring free, prior, and informed consent鈥 Guideline, pg. 31).

This recognition of Indigenous rights is commendable and in line with developments in international law, such as the UN Declaration. It is certainly an admirable policy goal and one we, as an advanced industrialised nation, should be able to achieve. But the reality is that many an SIA has been done to 鈥渢ick the box鈥: they, like public submissions processes, become a way of performing 鈥渃ommunity consultation鈥 but without giving any real attention to the social impacts that actually matter. Again,听the Rocky Hill case听highlights this problem. In cases where Indigenous communities have opposed projects, consultations are performed, but their opposition is often ultimately ignored. In the case of the Narrabri project, DPIE did not seek, or receive, the consent of the听. This is despite free, prior and informed consent being a policy of both the proponent, Santos, and DPIEs own 2017 SIA Guideline.

DPIE has released a solid updated 2020 SIA Guideline, but a key challenge we face is how to implement it to ensure that proponents, Government authorities and SIA experts are able to ensure that SIAs are undertaken at the high standard outlined in the Guideline.


Rebecca Lawrencehas worked in the field of Social Impact Assessment (SIA) for over 15 years as both an academic and SIA practitioner. Rebecca was the social impact expert for the Department of Planning Industry and Environment (DPIE) in the Rocky Hill case; has trained DPIE staff in the 2017 SIA Guideline; has recently undertaken an internal evaluation of DPIE鈥檚 implementation of the Guideline; and provides pro-bono advice to NGOs on SIA.听 She has a joint PhD in Human Geography (Macquarie University) and Sociology (Stockholm University) and has published in inswternational academic journals regarding SIA in the natural resource sector.

Gemma Viney听is a Research Assistant on the FASS 2018 Strategic Research Program Project developing the field of Multi Species Justice and is currently completing a PhD in the Department of Government and International relations.听Gemma was an Honours Research Fellow with the Sydney Environment Institute in 2017. She has a Bachelors degree in International and Global Studies from the University of Sydney, and a First-class Honours Degree in the Department of Government and International Relations. Gemma is the Research Lead on Anti-Mining Community Movements at the Sydney Environment Institute.

Susan Park听is Professor of Global Governance at the University of Sydney. She focuses on how state and non-state actors use formal and informal influence to make the Multilateral Development Banks (MDBs) greener and more accountable.听She is a Senior Research Fellow of the ESG, an affiliated Faculty member of the Munk School鈥檚 Environmental Governance Lab at the University of Toronto, an External Associate of the Centre for the 高清福利片 of Globalisation and Regionalisation at Warwick University, and a research affiliate of the Sydney Environment Institute at the University of Sydney.听Susan is the Research Lead on听The Global Shift to Renewables听and听Environmental Disasters and Just Governance.