Modifying factors
Modifying factors describes the ‘inputs’ (contextual factors) and ‘outputs’ (stakeholder and performance factors) that have the potential to materially impact the risk profile and value of projects.
What are Modifying Factors
Factors for project success
Modifying factors can include but are not limited to:
The power infrastructure, water infrastructure, transport infrastructure, mining method, metallurgy, economic viability, project valuation, legal compliance, topography, environmental impact acceptance, social acceptance, regulatory conditions, shareholder investment criteria, climate resilience, insurer and lender conditions required to realise projects across the renewables, civic infrastructure, and resources sectors.
Considerations
Where are modifying factors considerations?
Modifying factors are the considerations required to:
- Comply with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2012)
- Addressing feasibility study aims to provide an independent assessment that examines all aspects of a proposed project, including technical, economic, financial, legal, and environmental considerations (ARENA, 2023)
- Achieving the preconditions of a Final Investment Decision or a Bankable Feasibility Study to the satisfaction of all crucial stakeholders to enable the realisation of a project
Stakeholders rights and interests
Understanding your crucial stakeholders rights and interests
To understand the risk to your project from your stakeholders and the risk to your stakeholders from your project, you need to understand your stakeholders and their rights and interests.
These include but are not limited to:
- Governments – Regulatory approvals, consents and licence conditions
- Communities – Environmental impacts and social impacts, human rights, social licence to operate and acceptance
- Workforce – Demographics, skills, sourcing, labour laws, local content
- Land Connected Peoples – Land access, native title, cultural heritage, Free Prior and Informed Consent (FPIC)
- Contractors and suppliers – Project execution plans, delivery philosophy, flow down provisions, performance, contracting strategy and compliance
- Lenders, investors and insurers – Lender and investor obligations, risk appetite, climate resilience, targets, disclosure metrics, project economics, access and cost of capital
Stakeholder impacts and ESG
Managing complexity and change
All projects have stakeholders; be they investors, governments, communities, suppliers, workforces, lenders or insurers.
Stakeholders are increasingly aware and vocal about impacts on their rights and interests – real or perceived.
As stakeholder expectations change and evolve, the complexity and impact of modifying factors will continue to increase. The potential impact of modifying factors is not removed until the project is completed.
Environmental, Social and Governance (ESG) factors are increasingly important considerations for society in general and particularly for permitting and financial organisations. This means ESG are increasingly critical to you realising your project on schedule and on budget.
We can enable you to systematically integrate stakeholder considerations into your management systems to streamline your workflow and optimise your performance.