Effective Community Engagement on Environmental Justice

Shifting political, investor, and public expectations makes community engagement material to business operations

Political and Regulatory Landscape

As the Biden Administration takes the reins in Washington, a sharp change in executive and legislative priorities is underway. With Democratic party control, Congress is poised to move swiftly in its renewed commitment to Environmental Justice. Climate change and industrial – both historical and current – operations will be evaluated by the disproportionate impacts on communities of color and low-income communities to ensure vulnerable populations are protected, are aware of available government resources and are knowledgeable about paths for potential recourse from private industry.

The President’s Executive Action to make environmental justice part of the mission of every federal agency is a clear sign of initial action. This is in addition to the creation of the Justice40, an initiative to deliver 40% of the overall benefits of relevant federal investments to disadvantaged communities. Performance will be tracked through the establishment of a public Environmental Justice Scorecard.

Congress is acting, too. Democratic Senators Tammy Duckworth (D-IL), Cory Booker (D-NJ) and Tom Carper (D-DE) founded the Environmental Justice Caucus in 2019 and are championing the issue on The Hill. These trends are playing out on the local level, too, with national organizers mobilizing groups in frontline or fence-line communities to push back against companies they view as being indifferent to community concerns.

This considerable policy shift will likely result in new regulatory and legal action as well as a return of previous Obama-era tactics, including “Sue and Settle” and “Supplemental Environmental Projects,” as our colleagues Kristina Moore, Matthew Harrison and Callie Kilgore recently wrote.

Proactive Leadership on Social, Community Issues

During this past year we have seen unprecedented activity by companies and CEOs speaking out on larger societal issues including social and racial justice, the pandemic response, the election and violence at the Capitol. As more corporate leaders make deliberate strategic decisions to assess and align their operations around ESG, environmental justice has reputational and operational consequences. For companies that take a reactive or passive posture when it comes to community engagement in low-income or high-poverty areas, now is the time for engagement that is proactive, genuine and integrated into overall business strategy.

More than just political convenience, a proactive approach to community engagement and addressing environmental justice issues has become material to business operations. Investors and the public expect companies to not just act to the benefit of shareholders or a financial bottom line, but rather generate value for all stakeholders.

This “Mitigating Risk by Doing Good” approach is an effective strategy for any company facing known or perceived environmental justice concerns.

How can a company that has been operating in a community with known or perceived environmental impacts protect and enhance its reputation to today’s stakeholder expectations?

Our FTI team has designed and implemented effective community engagement programs in communities across the country and throughout various industries. We have found that successful programs are authentic and have a long-term commitment.  Empty promises, hollow statements, a perceived “quick-fix” or one-off check writing does not build relationships and could inflict more damage.

In advising and helping clients manage risk and proactively engage in the areas of environmental justice, we follow these core principles:

• How Does the Community Perceive your Company? Community engagement starts with understanding how a company is perceived in the region in which it operates. This includes conducting research among area residents to capture perceptions on company operations and community activities. Research also allows a company to gauge residents’ perceptions of company communications and actions on environmental efforts and safety.
• What Do You Know About the Community? Conduct the research necessary to know the community – its history, demographic composition, main employers, local economics, schools, languages that are spoken, annual events, local media in the area and what active social channels residents follow. Doing so provides a base for respectful communications.
• Conduct Stakeholder Mapping. Identify elected officials and civic and community leaders and work with them to learn about priorities in the community while listening for areas where you might be able to fill a meaningful gap.
• Leverage the insights of your own people. Recognize that your internal stakeholders (engineers, lawyers, plant managers, regulatory and legislative affairs) will know the history of operations and likely have different points of view that will factor into a broader successful engagement strategy. Knowing these facts helps inform a narrative and anticipate questions.
• Commit to the long-term. Transparency and trust take time to build and are even more difficult if a community is frustrated or angry about real or perceived potential health or economic impacts from historic or current operations.
• Open the lines of communication. While you may not like or agree with what you hear initially, knowing there is someone listening begins to build the trust and empathy that is needed to make inroads with the community. There are also practical needs to consider. Will there be a dedicated email, website or phone number? Who will be the local face of your company and who will be the day-to-day community contact?  What will the cadence of communications look like and through what formats?
•  Ensure alignment with your broader business strategy. Assess how potential points of engagement align with your corporate strategy and values. Ensure your approach is authentic. Do these areas align with your company’s commitment and or signature programs (e.g. STEM education, diversity and inclusion initiatives or job training)?
• Engage third-party allies. Explore opportunities to partner with and engage key groups or community organizations. From industry trade associations to community non-profit groups, these organizations can help a company tell its story, build a strong reputation, and give credit for the good work happening.

Given changing political, regulatory, investor and public expectations, environmental justice and community engagement have become material to business operations. With an effective plan, companies can turn potential risks into opportunities for positive, proactive engagement.