Industry deliverables beyond oil, natural gas

Dr. Segundo Coello Fundacion NanPaz Quito, Ecuador Executive Director, Fundacion NanPaz Mr. Fernando Benalcazar EnCana Quito, Ecuador Manager, EHS and Community Affairs

Industry deliverables beyond oil, natural gas

EnCanas Corporate Constitution lists Community and Environmental responsibility as key components of the Companys core values. The Company believes its commitment and proactive approach partnering with employees, neighbours and other business - - helps create and sustain vibrant communities. Vibrant communities contribute, in turn, to a nations strength. EnCana applies its concept of capacity building everywhere it operates. It is the main support of Fundacin anPaz (Road to Peace) in Ecuador, a non-profit community foundation focused on the social, economic and environmental dimensions of sustainable development in tropical rain forest communities evolving around the development of the Amazon regions oil and gas resources. It is a mechanism chosen by Canadas EnCana which is integral to the social contract between communities and the Company to ensure that people adjacent to, or impacted by industry activity have the opportunity to benefit from such operations. By applying the Canadian community investment philosophy of capacity-building adopted by EnCana as a world-wide practice, Fundacin anPaz is helping to cultivate unprecedented economic and social relationships between business, community and government in a society with elements which traditionally have been either ignored or patronized. While the energy industry, collectively or individually, must minimize its footprint on the environmental ecosystems, it must also provide a tangible legacy of continued economic development once those energy resources have been tapped.

Industry deliverables beyond oil, natural gas

Dr. Segundo Coello Fundacion NanPaz Quito, Ecuador Executive Director, Fundacion NanPaz Mr. Fernando Benalcazar EnCana Quito, Ecuador Manager, EHS and Community Affairs

Industry deliverables beyond oil, natural gas

EnCanas Corporate Constitution lists Community and Environmental responsibility as key components of the Companys core values. This incorporates a commitment to contribute to the well-being of the people and protect the safety and environments of the communities where we operate. The Company believes its commitment and proactive approach partnering with employees, neighbours and other business - - helps create and sustain vibrant communities. Vibrant communities contribute, in turn, to a nations strength. EnCana applies its concept of capacity building everywhere it operates. It is the main support of Fundacin anPaz (Road to Peace) in Ecuador. Fundacin anPaz (FP) is a non-profit community foundation focused on the social, economic and environmental dimensions of sustainable development in tropical rain forest communities evolving around the development of the Amazon regions oil and gas resources. It is a mechanism chosen by Canadas EnCana which is integral to the social contract between communities and the Company to ensure that people adjacent to, or impacted by industry activity have the opportunity to benefit from such operations. The area of influence of EnCanas operations is rich in biodiversity and cultural and natural resources. In contrast, it is part of the fourth poorest province of Ecuador (72% of the population is below the poverty line) and poverty is a cruel barrier to sustainability. Local inhabitants face severe limitations for development. There are few roads and means of transportation for themselves and their goods, a lack of communications infrastructure, a scarce power supply, little formal health care, poor education, a lack of access to sanitation and clean water, limited access to capital and market opportunities, and weak organizations. Average schooling is 3.4 years. Most people do not have skills to cultivate their land sustainably, add value to their produce, be competitive in the national markets, or to access other labour markets (e.g., plumbers, mechanics). This remote Ecuadorian area has been traditionally ignored. We are implementing several innovative approaches within this area. First, sustainable development is the heart of all its work and actions. Its mission is to catalyse the sustainable development of these communities. Therefore, FP focuses on the key barriers to the sustainable development of the area and has developed a participatory development plan with a 10-year horizon. Fundamental approaches are: Participation of stakeholders and beneficiaries in all the phases of the project cycle, from identification to fundraising, implementation and evaluation. In all projects local beneficiaries have to contribute a counterpart (be it in-kind or cash). An average local counterpart constitutes 20% of total project cost. Empowerment of local communities and organizations to help themselves to develop in a sustainable way and manage community services and enterprises. Respect of traditional and local cultures therefore adjusting new practices and techniques to local beliefs, rescuing valuable knowledge from elders and transmitting it to new generations, and incorporating traditional knowledge into production and social development (e.g., traditional medicine, improved farming techniques, domestication of fauna and flora, identification of new resources).

Partnerships with relevant government agencies, development organizations, private enterprises, NGOs and universities to unite efforts and resources and work together in long term alliances in this remote area. Business and market development with local producers. Farming practices are being improved, value is being added to local produce (e.g., produce and sell organic artisanal roasted ground coffee instead of wet or dry coffee cherries), production is being diversified, new markets are being tapped into (e.g., eggs and fruits for catering of oil companies), and new products and business opportunities are being developed (e.g., handmade paper from natural fibres, Amazonian exotic fruit pulps and oils, medicinal plants). A key aspect is to develop through training and hands-on experience, so they are able to make solid decisions based on feasibility and market analyses, value the environment and make rational and sustainable use of natural resources. Sustainable use and management of natural resources to guarantee conservation of the environment (preventing or minimizing impacts) and a sustainable use of resources (e.g., timber, flora and fauna, water) by present and future generations. Innovation and use of appropriate technology in all activities and projects. Participatory research is a key tool, that is amalgamated with traditional knowledge in the development and adaptation of different techniques and practices (e.g., solar dryers, domestication of native plants, treatments with alternative medicine). Learning from success and failure to draw lessons and best practices in community and business development. By applying the Canadian community investment philosophy of capacity-building adopted by EnCana as a worldwide practice, Fundacin anPaz is helping to cultivate unprecedented economic and social relationships between business, community and government in a society with elements, which traditionally have been either ignored or patronized. While the energy industry, collectively or individually, must minimize its footprint on the environmental ecosystems, it must also provide a tangible corporate legacy of sustainable livelihoods and continued economic development once those energy resources have been tapped, thereby. Therefore moving from plain social compensation to a true commitment to sustainable development.