Appendix A: Development Concepts

Distinction-Based Reporting

In the context of an Indigenous Community Benefit Disclosure Standard, a distinction-based report refers to a report or assessment that takes into account the unique perspectives, experiences, and needs of different Indigenous groups, such as First Nations, Inuit, and Métis peoples. These distinctions recognize that Indigenous groups have diverse histories, cultures, and rights.

A disclosure framework, in this context, is a method used to identify and prioritize the most significant social, economic, environmental, and cultural issues that impact an Indigenous community. It helps guide decision-making, resource allocation, and the development of strategies and policies to address these concerns in a sustainable and culturally appropriate manner.

A distinction-based report within this framework would involve:

● Acknowledging the unique rights, cultures, and histories of different Indigenous groups.

● Identifying the key issues and concerns specific to each group.

● Prioritizing and addressing these issues in a manner that respects and promotes each group's distinct needs and aspirations.

● Ensuring that the consultation and engagement processes are inclusive and culturally appropriate, involving Indigenous leaders, Indigenous Community members, and other relevant interested and affected parties.

● Evaluating the outcomes and impact of initiatives, policies, and programs on each group.

This approach ultimately aims to contribute to the well-being, self-determination, and prosperity of First Nations, Inuit, and Métis peoples by acknowledging and addressing their distinct needs and priorities.

Double Materiality

In the context of the Pehta Framework, double materiality encourages companies to report on materiality from two interconnected perspectives:

Financial materiality (outside-in): This refers to information that is material to a company's enterprise value, considering its interactions with Indigenous Communities. Companies should assess and report on how external factors related to Indigenous rights, concerns, and well-being can impact their business performance, reputation, and long-term sustainability.

Impact materiality (inside-out): This refers to information about the company's impacts on matters such as the environment, economy, and people, specifically focusing on Indigenous Communities. Companies should assess and report on the effects of their actions, projects, and operations on the self-determination, cultural preservation, and overall well-being of Indigenous communities.

In the context of the Pehta Framework, double materiality emphasizes the importance of understanding and addressing the two-way relationship between industry and Indigenous communities. This approach encourages industry to adopt responsible practices that respect Indigenous rights, reduce negative impacts, and contribute positively to the well-being of Indigenous communities while also ensuring long-term sustainable and inclusive growth.

Indigenous Community as the Focal Point in the Pehta Framework

While the terms 'Indigenous people' and 'Indigenous Community' are often used interchangeably in general discourse, it is crucial to delineate their distinct roles and rights within the context of the Pehta Framework. The primary focus of the Pehta Framework is on the relationships between Indigenous Communities and industry sectors, emphasizing the unique regulatory authority of these communities.

Indigenous Communities are recognized as collective entities with specific legal rights, often established through treaties. These rights encompass community-level entitlements such as the right to consultation, the principle of free, prior, and informed consent, and the right to self-determination. In contrast, the rights of Indigenous people as individuals, while important, are based on their Indigenous identity and do not encompass the regulatory authority held by Indigenous communities.

This emphasis on Indigenous communities within the Pehta Framework is strategic and purposeful. It aligns with our objective to thoroughly explore Indigenous rights risks in the context of environmental, social, and governance (ESG) relationships. By focusing on Indigenous communities, we aim to provide a clear and structured approach for project owners and the investment market. This approach is designed to understand and respect the regulatory authority of these communities, thereby reducing exposure to Indigenous Rights Risks.

It is important to note that this focus on Indigenous communities does not diminish the significance of Indigenous people as individuals. Instead, it reflects the specific scope and objectives of the Pehta Framework, which seeks to characterize and facilitate positive, respectful, and legally sound interactions between industries, interested and affected parties and Indigenous communities

Understanding the Exclusive Focus on Lagging Indicators in the Pehta Framework

In the context of the Pehta Framework’s engagement with Indigenous communities, a distinctive emphasis is placed solely on lagging indicators, eschewing the traditional balance with leading indicators. This approach offers a more tangible and outcome-focused perspective on the impacts of industry actions and policies.

Lagging Indicators: The Core of Pehta Framework's Approach

The Pehta Framework prioritizes lagging indicators as the primary metrics for evaluating and understanding the impact of industry involvement in Indigenous communities. These indicators, such as employment rates following training programs, provide measurable and concrete evidence of the actual outcomes of industry initiatives. Unlike leading indicators, which predict potential future outcomes, lagging indicators reflect the real-world results of past actions, giving a clearer picture of the effectiveness of these initiatives.

For example, while training programs (a typical leading indicator) suggest potential for future employment, they do not guarantee it. The Pehta Framework, therefore, places greater emphasis on employment rates as a lagging indicator. Increased employment within Indigenous communities post-engagement signifies not only the success of training programs but also the realization of tangible benefits like improved economic status and job opportunities.

Benefits of Focusing Exclusively on Lagging Indicators

By concentrating solely on lagging indicators, the Pehta Framework enables businesses to directly measure the impact of their actions on Indigenous communities. This focus allows for a more accurate assessment of whether the activities are yielding positive benefits, like enhanced employment opportunities and financial contributions, leading to direct, meaningful improvements for the community.

This approach aligns with the Framework's commitment to long-term, sustainable development within Indigenous communities. It moves beyond assessing potential or intended impacts, focusing instead on tangible, realized outcomes. This method is instrumental in building trust and establishing stronger, more effective relationships with Indigenous communities. It ensures that industry engagement transcends preliminary preparations and genuinely delivers on promises of improved livelihoods and community development.