ESG RISK 8: Critical Cultural Features

Overview

ESG Risk 8 - Critical Cultural Features assesses risks to sites or items of high cultural value, which may be historic, artistic, scientific, or socially significant. While internationally and nationally recognised sites are prioritised, local and Indigenous cultural features must also be considered. Early assessments should determine whether these features can be preserved or if they would be irreversibly lost. An Extreme Risk score may lead to regulatory rejection, strong stakeholder opposition, and reputational damage, making early identification and mitigation essential.

Additional Guidance

Cultural heritage refers to the legacy of physical artefacts and intangible attributes of a group or society that are inherited from past generations, maintained in the present, and bestowed for the benefit of future generations. It is the objects, places and practices that define who we are, and the values society wants to retain, share and pass on to future generations.

Critical cultural heritage is defined in International Finance Corporation (IFC) Performance Standard 8 (PS8) as “one or both of the following types of cultural heritage:

(i) The internationally recognised heritage of communities who use, or have used within living memory the cultural heritage for long-standing cultural purposes; or

(ii) Legally protected cultural heritage areas, including those proposed by host governments for such designation.

Sources of information that can help inform ratings for ESG Risk 8 - Critical Cultural Features include:

• United Nations Educational, Scientific and Cultural Organization (UNESCO) recognition of sites, practices, and traditions of outstanding cultural and natural importance through its World Heritage List and Intangible Cultural Heritage List;

• International Council on Monuments and Sites (ICOMOS), an organisation dedicated to the conservation of cultural heritage. ICOMOS offers resources, publications, and guidelines on heritage conservation and management practices worldwide, and is a source of expert advice on cultural heritage conservation and recognition;

• Many countries maintain lists of significant cultural sites and practices, and/or have government departments dedicated to preserving and promoting cultural heritage, that may recognise and protect cultural features considered critical;

• Local cultural institutions;

• Local and national heritage registers;

• Local tourism boards;

• Local knowledge and investigation into sites of local festivals, visitation, and rituals;

• Interviews with local cultural heritage experts across the potential range of cultural values (historic, artistic, aesthetic, ethnological or anthropological, scientific, social), potentially associated with research institutions, civil society organisations, and/or museums;

• Tourist promotions of sites and features of note.

If a project that affects cultural heritage is taken forward, plans should be sure to include engagement with local communities and stakeholders to incorporate their input and concerns, and promotion of awareness and understanding of cultural heritage among project workers and the public.

Actions that could reduce the risk of a project option include:

• Altering project plans to avoid impacting the heritage site;

• Thorough documentation and recording of the cultural heritage site before development begins;

• Archaeological excavations to recover and preserve artifacts;

• Careful relocation of movable heritage items to a safe location;

• Measures to protect and conserve affected heritage during and after the project.

Mitigation measures may include creation of or support to a local museum, or supporting records and documentation of heritage that can be disseminated (e.g. books, videos, oral histories, photo essays) and perpetuate awareness.

Proactively identifying and protecting cultural sites, traditions, and values can help preserve the heritage of affected communities, and ensure that sacred or historically significant areas are not damaged or lost. Chance finds procedures can be important to include in contracts for early investigations, and may bring new information to light that was previously unknown. Early engagement around cultural concerns can foster trust and collaboration with local communities, allowing for more meaningful consultations and support, which can lead to smoother project execution and fewer disputes. Considering cultural features in the early stages allows project designs to incorporate and respect cultural elements, potentially creating opportunities for tourism, education, or partnerships that enhance the social value of the project.