GLOSSARY

Anonymized Matched Diversity Analysis (AMDA) AMDA is a novel approach to collecting, aggregating, and analyzing diversity data in an organization.

In AMDA, employees independently complete an anonymous diversity survey, which generates a unique alphanumeric code that links to their diverse identity answer set. This code, instead of any personal identification data, is shared with the employer.

The employer combines this code with anonymized compensation data within the AMDA system. If a match is found, the system links the diversity survey response with the corresponding compensation data to generate a comprehensive diversity report. This report gives a clear, anonymous picture of the diversity or indigeneity of industry while maintaining the privacy of individual employees.

AMDA not only respects and protects the privacy of employees, but also provides them control over their data. At any point, an employee can choose to withdraw their responses by sending their unique code to the system, ensuring their survey responses are no longer linked with the compensation data. This mechanism strikes a balance between offering detailed insights to employers and safeguarding employees' rights and identities. Benefit Within the Pehta Framework, the term “benefit” specifically refers to the financial transactions that underpin and support the positive outcomes arising from actions, policies, or decisions. These financial benefits are fundamental in driving and sustaining the improved outcomes in communities. They can manifest in various forms, such as direct investments, revenue sharing, job creation, or funding for community projects. Although they are critical in enabling tangible improvements, these financial transactions are typically reflected as lagging indicators, meaning they become evident after the positive impacts have materialized in the communities. This underscores their role as foundational elements that support and facilitate broader, long-term positive changes in Indigenous communities.

Community Acceptance Board

The Community Acceptance Board (CAB) is a representative body of Indigenous community members, appointed by each signatory community to ensure that the Pehta Framework respects and responds to the unique experiences, perspectives, and needs of the Indigenous communities involved. The CAB plays a vital role in safeguarding the cultural integrity of the Pehta Framework by providing insights grounded in traditional knowledge and current community needs.

CAB members are tasked with the review and approval of the Pehta Framework before it's deemed market-ready, ensuring that the proposed guidelines respect Indigenous rights, are culturally sensitive, and genuinely benefit their communities. This group serves as the voice of the Indigenous communities, ensuring their needs and desires are respected and prioritized within the framework's standards and guidelines.

Community Contributions

Community contributions can be cash, in-kind and/or time investment in Indigenous communities that are in addition to any tangible project operating requirement. These contributions generally originate from corporate overheads and land in community in some meaningful way.

Contiguous Supply Chain

"Contiguous supply chain" refers to the complete network of direct and indirect vendors and suppliers that are connected to procurement of goods and services. Direct Employment "Direct Employment" refers to the positions created and filled within an organization, where the employees are directly employed and paid by the company itself. These employees are integral to the company's primary operations and are typically involved in the production of its goods or services, administrative functions, or other core business activities. Direct employment represents a direct, immediate relationship between the employer and employee. Direct Spend "Direct spend" refers to the expenditures a company makes with its suppliers, who are in an immediate, arm's length relationship with the company. These expenses are directly linked to the production of the company’s primary goods or services. This includes costs such as raw materials, manufacturing processes, and any services or components essential for the creation of the company's end product. Direct spend is a key element in the company's primary supply chain activities.

Disclosure Topic A Disclosure Topic represents a key thematic area of focus within the Pehta Framework. It is an area of Indigenous community benefit or opportunity that warrants distinct attention, resources, and actions. Disclosure Topics are crafted to address different aspects of the community's welfare, reflecting the diverse dimensions of Indigenous community life and advancement. Indigenous Lands Indigenous Lands in Canada encompass all territories traditionally associated with First Nations, Inuit, and Métis peoples. This definition includes forests, coasts, prairies, tundra, urban areas, and waterways. It spans Treaty Lands, where formal agreements with the Crown exist, and Unceded Territories, which have never been formally relinquished. The Pehta Framework broadens this view, asserting that all Canadian land and waterways, irrespective of ownership, are inherently Indigenous lands. This perspective acknowledges the deep, historical, and enduring connections of Indigenous peoples to the entire Canadian territory and emphasizes the importance of respecting these ties in all aspects of land and water stewardship and sustainable development.

Indigenous Rights Risks

"Indigenous Rights Risks," within the scope of the Pehta Framework, refer to the potential negative impacts and liabilities that publicly traded companies may face due to non-alignment with the desired outcomes of Indigenous communities in Canada. These risks are primarily evaluated in terms of the company's performance in areas such as employment of Indigenous peoples, procurement from Indigenous communities and people, and contributions or benefits provided to these communities.

When a company's operations or policies fail to demonstrate alignment with these key areas, it increases its exposure to Indigenous Rights Risks. This misalignment can lead to various repercussions, including reputational damage, legal challenges, and financial losses, stemming from the lack of community support or compliance with Indigenous rights and interests.

Conversely, companies that adhere to the Pehta Framework and can substantiate their positive benefits and opportunities in these areas – through employment opportunities, fair procurement practices, and meaningful contributions to Indigenous communities – may effectively mitigate these risks. By doing so, they not only foster goodwill and trust within Indigenous communities but also enhance their standing in the eyes of investors and interested and affected parties who are increasingly attentive to Indigenous rights and ESG (Environmental, Social, and Governance) criteria.

Indirect Employment

"Indirect employment" refers to employment created as a result of a company's operations but not within the company itself. These are positions in external organizations, through Direct and Indirect suppliers and vendors that are part of the contiguous supply chain. Indirect Spend "Indirect spend" in the context of a contiguous supply chain refers to the expenditures made by vendors in a tier 2 or greater position. These vendors are one step removed from a direct, arm's length relationship with the primary company. This type of spending encompasses the costs these secondary or further removed vendors incur in providing goods or services to the company's direct suppliers. Indirect spend is crucial in understanding the full scope of a supply chain's financial dynamics, as it captures the expenditures that contribute to the production process indirectly through multiple layers of the supply chain. Industry Industry encompasses a wide range of sectors and entities involved in the economic landscape impacting Indigenous Communities in Canada. This includes traditional sectors like mining, forestry, energy, construction, and infrastructure, as well as transportation, telecommunications, agriculture, fishing, tourism, and hospitality. Additionally, it covers publicly traded companies and the complex network of economic relationships involving funding sources, project owners and their representatives, as well as vendors and suppliers. See Appendix D

Industry Subcategories

Funding Body or Funding Source: A "funding body" or "funding source" refers to the organization, entity, or group providing the financial resources necessary to execute a project. This can include banks, investors, governmental agencies, non-profit organizations, or other financial institutions. The funding source ensures that adequate funds are available for the project's timely and successful completion. Depending on the project's nature and scope, there might be multiple funding sources, each with its terms, conditions, and expectations for the project's outcome.

Project Owner: A “project owner” is typically the organization that is responsible for financing, overseeing, and managing the project and who ultimately stands to benefit from its success. Project owners include publicly traded companies, private organizations, and government at all levels. In practical use, the owner may also be referred to as the proponent, client, or customer, as distinct from contractors, subcontractors, payees, vendors, and suppliers who are involved in executing the work.

Project Owner Representative: A "project owner representative" is an individual or a group designated by the project owner to act on their behalf. This representative liaises between the project owner and vendors and suppliers, ensuring that the owner's interests are upheld and their objectives are met throughout the project's lifecycle. The representative typically has the authority to make crucial decisions, relay feedback, and oversee various project aspects to ensure alignment with the owner's vision and goals.

Supplier: The term “supplier” can be used interchangeably with the terms contractor”, “subcontractor”, “payee”, and “vendor”. A supplier is a company that is hired to perform work, provide services, or execute a project for another entity. Suppliers are typically engaged for a specific period of time or until a particular project or service is completed. Project In the context of the Pehta Framework, a "project" can be understood as an initiative or enterprise that is financed, overseen, and managed by an organization, referred to as the "project owner." The project owner is responsible for the project's success and stands to benefit from it. Project owners can include publicly traded companies, private organizations, and government entities at various levels.

Therefore, a project encompasses the organized efforts and resources marshaled towards achieving specific goals, with a clear ownership and management structure, and involving a network of entities working together towards its completion. Public Reports Within the context of the Pehta Framework, 'Public Reports' refer to any formal documentation or publications released by industry to the general public, interested or affected parties, or specific regulatory bodies. These reports are designed to provide transparency, accountability, and insights into various aspects of the organization's operations, impacts, and interactions, particularly those related to Indigenous communities and environmental, social, and governance (ESG) criteria. Key characteristics of public reports include:

Transparency: Public reports are a primary tool for organizations to demonstrate transparency in their operations, decision-making processes, and outcomes, especially in areas affecting Indigenous communities and sustainable practices.

Accountability: These reports hold organizations accountable to their stated goals, commitments, and standards, particularly those related to social responsibility, environmental stewardship, and ethical governance.

Information Dissemination: They serve as a formal medium for disseminating information about the organization's activities, achievements, challenges, and future plans. This includes reporting on community engagement, sustainability initiatives, governance practices, and other relevant areas.

Interested and Affected Parties Communication: Public reports are a crucial means of communication with various interested and affected parties, including investors, customers, employees, community members, and regulatory authorities. They provide a comprehensive view of the organization's opportunities, benefits and performance.

Regulatory Compliance: In many cases, public reports are part of regulatory compliance, ensuring that the organization adheres to legal and ethical standards as required by law or industry guidelines.

Diversity of Formats: Public reports are provided in various formats, such as annual reports, sustainability reports, ESG reports, CSR (Corporate Social Responsibility) reports, community impact reports, and other specialized reports aligned with the organization's strategic focus.

Technical Advisory Committee

The Technical Advisory Committee (TAC) is a team of subject matter experts appointed to provide informed guidance on the development, implementation, and refinement of the Pehta Framework. Drawing from a diverse range of backgrounds and expertise areas such as accounting, social impact assessment, Indigenous rights law, and sustainable development, TAC members offer a comprehensive, multi-disciplinary perspective to the standardization initiative.

Their responsibilities include, but are not limited to, drafting the initial version of the framework, incorporating updates based on industry changes, technological advancements, and evolving knowledge about Indigenous rights and needs. The TAC members also work closely with the Community Acceptance Board to ensure that the evolving iterations of the Pehta Framework align with the interests of Indigenous communities.