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I saw something called 'social licence' in the news. What is that?

Disclaimer: This post is a demonstration of our ‘Collaborative Conversations’ Forum. The information provided is based on examples of conversations our experts have had.

Our local MP said the project had “lost its social licence.” What does that mean? I thought licences were legal.

Good question, this comes up a lot. A social licence to operate isn’t a formal permit. It’s the trust and acceptance that a company earns (or loses) from the community over time. 

In regions like the Bowen Basin, where resource projects operate close to towns, social licence depends on:

  • Transparency
  • Respect for local concerns
  • Genuine benefit sharing
  • Accountability when things go wrong

When community trust breaks down, projects can face:

  • Delays
  • Protests
  • Increased scrutiny from regulators

Companies now use tools like social performance monitoring and grievance mechanisms to maintain their social licence. It’s not optional, it’s good risk management.

Would you like a short explainer you can use in community meetings?

Yes, we’re hosting a meeting soon and that would help.

 I have attached a plain-language handout you can print or share.