Tallgrass Institute Publishes Report on Renewable Energy Project Siting and Indigenous Peoples
Tallgrass Institute, with support from Trillium Asset Management, has released Renewable Energy, Indigenous Peoples, and Project Siting for Values-Aligned Investors to help investors vet projects that bring durable benefit to investors, companies, and Indigenous Peoples.
“The project siting phase determines whether tribal sovereignty is upheld and to what extent a project will drive long-term success operationally, financially, environmentally, and socially,” says the report. “At this pivotal juncture, Indigenous Peoples' role in decision-making critically informs project trajectory.”
Among key takeaways:
🟢 Local challenges to siting are a major factor in project delays and failures.
🟢 Respect for self-determination and FPIC is necessary for comprehensive risk management.
🟢 Partnerships and collaborative approaches with Indigenous Peoples create significant benefits for all parties.
Meeting the growing demand for renewable energy requires practices that respect Indigenous Peoples’ rights. The siting phase of a project is an opportunity for investors to move away from business as usual to embrace models that respect Indigenous Peoples’ self-determination and mitigate material risks.
The paper concludes with recommendations for companies:
Make strong policy commitments specific to Indigenous Peoples;
Implement robust due diligence at the earliest stage of project planning and throughout the project lifetime;
Obtain FPIC from all Indigenous Peoples who have relationships to the proposed project site;
Provide investors with substantive disclosures pertaining to relationships with, impacts on, and FPIC of Indigenous Peoples;
Devote necessary time and resources to building relationships with Indigenous Peoples;
Communicate directly with Indigenous Peoples to center their values and priorities in project siting/design/operations; and
Negotiate robust, legally enforceable benefit sharing agreements including benefits centered on the Indigenous Peoples’ goals.