The Five Conditions for Social Licence
Strong social licence paves the way for innovative solutions. Equally, a lack of social licence can stymy investment and delay progress.
Australia is facing once-in-a-generation challenges – from investments in the energy transition and circular economy to reforming our health and care sector, and our infrastructure. Organisations, governments and communities are at the forefront of substantial change.
The success of these projects relies on social licence to operate.
What is social licence to operate?
Social licence is based on a community’s acceptance or approval for infrastructure to be built on their land or in their communities. Governments and operators alike require social licence from communities and individuals at a local, state and national level.
Social licence is never permanent and must be continually nurtured.
As social licence requirements evolve, we wanted to understand what makes a strong social licence and what the risks are when it’s not achieved.
SenateSHJ has helped governments and organisations build and retain social licence for some of Australia’s biggest projects. We are acutely aware of the challenges facing policy holders, communities, stakeholders and developers. Get in touch to find out how we can help you.
How do you build social licence?
We analysed 19 energy projects in Australia and overseas which had attempted to secure a social licence, and assessed the conditions that underpinned these projects, and the degree to which community acceptance and approval was secured.
This research set out to understand what makes communities willing to accept and support major developments and to identify the conditions that enable trust and collaboration between communities, governments and developers.
Our aim was to define the factors that turn scepticism into partnership and provide a framework for organisations developing stakeholder engagement plans and community engagement strategies.
SenateSHJ would like to acknowledge the contribution in writing this report of Josh Dowse of Dowse CSP.
The resulting five conditions are that the community:
- accepts why the development is essential, somewhere
- volunteers their site, or accepts the proposed location
- believes the perceived benefits will outweigh the perceived risks and costs
- co-creates the solutions
- trusts the project developers and regulators.
The research found a close correlation
When most or all conditions were met, the community generally supported the projects, but when few or no conditions were met, the projects were widely opposed, and in some cases abandoned altogether.
These findings provide an evidence-based approach to building social licence communication and engagement strategies, and executing in a way that builds trust, confidence and buy-in.
SenateSHJ works with clients to assess current social licence and design and implement stakeholder and community engagement strategies that help deliver on each of the conditions, strengthening the foundations for social licence to operate.
Pathway to social licence to operate
Securing a genuine social licence to operate is about more than approvals. It means communities understand why a project matters, feel the benefits outweigh the impacts and trust those delivering it.
At SenateSHJ, we help organisations apply the five conditions for social licence so they can move from acceptance to advocacy. Whether in energy, infrastructure or health, our approach reduces risk, builds stronger partnerships and creates the foundations for long-term success. Start your journey with us today.
Bronwyn Raso, Head of Engagement
Without genuine stakeholder engagement and communication, even the best-designed projects risk delay, opposition and reputational damage. Meeting the Five Conditions for Social Licence helps leaders reduce risk, build trust and create the long-term community partnerships essential for progress.
Keen to learn more? Our team can speak with you on how to build and maintain your social licence.
