Taming the flames that present a social licence risk to infrastructure
In Australia and other nations, governments and industry partners are investing heavily in vital infrastructure. Such investment is, in part, to restore confidence and growth into economies battered by COVID-19. Restoring the economy and reducing debt also demands that every dollar is spent wisely. But many infrastructure proponents are fanning rather than taming the flames of stakeholder opposition. Through their own actions to build and maintain a social licence, they are actually increasing their investment risk.
If unresolved, social licence risks can incur costs in the millions, even billions, of dollars. Simultaneously, harm is done to communities and social cohesion is diminished. But by paying attention to the behaviours that escalate these risks, infrastructure investors and developers can maintain stakeholder support and enhance their asset’s value.
Maintaining a social licence requires is more than building trust. It requires infrastructure developers to adopt a different approach to delivering value for the users of and investors in infrastructure. Co-design is a central feature in this value creation process (addressed in our book, Insight Trading). Investors and company directors must deeply understand why this is the case if they wish to prevent avoidable risks and sustain their social licence.
Innergise’s white paper, Taming the flames, provides a series of valuable insights and questions that your board, executive team and project leaders can start working. Download it here today.