Site-Induced Migration (SIM) is defined as the movement of people into or out of an area in anticipation of, or in response to, real or perceived opportunities associated with a site. People moving into the area (i.e. in-migrants) look to benefit in terms of (direct and indirect) employment, community development initiatives and other site activities, including resettlement. People moving out of the area (i.e. out-migrants) typically do so in response to site closure or care and maintenance.

SIM can significantly change the site’s external context. Many of these changes can be positive, if managed effectively by all relevant internal and external stakeholders. Potential benefits from in-migration may include economic growth, public and private investments in local services and products, the development of small and medium enterprises, increased government revenue, skill transfers and cultural exchange and refinement.

Box 4G.1 International Standards

IFC Performance Standards

SIM is not covered separately in the International Finance Corporation’s (IFC) Environmental and Social Performance Standards (IFC PS).

However, it is relevant to a number of the Performance Standards, most notably Assessment and Management of Environmental and Social Risks and Impacts (PS 1), Labour and Working Conditions (PS 2), Community Health, Safety and Security (PS 4), Land Acquisition and Involuntary Resettlement (PS 5), Indigenous Peoples (PS 7) and Cultural Heritage (PS 8).

Additionally, the IFC provides good practice guidance on anticipating and managing SIM: Projects and People: A Handbook for Addressing Project-Induced In-Migration.

However, if left unmitigated, SIM may contribute to significant negative social and environmental impacts. This ultimately can lead to an unstable operating context, affecting operational cost, schedule and reputation. 

SIM-related direct and indirect impacts on communities are attributable to a site’s presence and activities (see Section 3C). Sites therefore have a responsibility to help prevent and manage SIM-related impacts on external stakeholders. However, a site cannot and is not responsible for managing SIM alone. Strong partnerships and coordination, particularly with local authorities, are critical in managing SIM.

SIM is especially relevant at certain stages of the asset lifecycle, such as construction and site expansion.

Specifically, this section:

• explains what SIM is
• details typical potential impacts, risks and opportunities associated with SIM
• provides guidance on mitigating potential SIM-related adverse impacts and risks
• lists the cross-departmental roles and responsibilities involved in managing SIM
• outlines the external stakeholders responsible for management of SIM

Intended users

Planning for SIM is the responsibility of site management. The intended users of this section are therefore the mine site GM, relevant department heads and members of the SPMC.

The impacts of SIM are mostly experienced by local communities. Social performance should therefore play a coordinating role in assessing the potential impacts of SIM and identifying mitigation measures to minimise adverse impacts and maximise positive ones.

SIM results from the real or perceived opportunities afforded by the presence of a large asset and is influenced by a variety of factors, including the site’s scale and design, the political and socio-economic environment and host country laws and regulations. Functions like projects, engineering, security, human resources, supply chain, and safety, health and environment are essential in managing SIM.

Relevance to other sections

Planning for and management of SIM involves several of the guidance sections in the Social Way.

• Governance (Section 1):
  • Social Performance Management Committee (SPMC) – SIM management and planning requires the involvement of multiple departments. The SPMC provides the platform to ensure that all relevant functions are engaged.
• Review and Planning (Section 2)
  • Review and Planning – sites are required to review and update their baseline data and context review. This information is invaluable in anticipating and assessing SIM-related impacts and trends.
• Engagement and Assessment (Section 3)
  1. Stakeholder Engagement (3A) – regular consultations with local communities, government authorities, and infrastructure providers ensure that SIM-related impacts and concerns are properly understood. Migrants should be included in stakeholder mapping and engagement activities.
  2. Incident and Grievance Management (3B) – the grievance process provides an additional tool for tracking any SIM-related complaints. Migrants should be able to access the grievance process.
  3. Social and Human Rights Risk Analysis (SHIRA) (3C) – potential SIM-related impacts should be assessed in SHIRA.
• Impact and Risk Prevention and Management (Section 4)
  1. SED (4A) – the opportunities afforded by SIM should inform SED Plans. At the same time, potential adverse SIM impacts can have a direct influence on Anglo American’s ability to meet its Sustainable Mining Plan commitments.