Incorporating biodiversity and ecosystem services into corporate responsibility policy and practice

Transcription

1 Incorporating biodiversity and ecosystem services into corporate responsibility policy and practice

2 INTRODUCTION: incorporating biodiversity and ecosystem services into corporate responsibility policy and practice Justina C. Ray, Ph.D.

3 Biodiversity: The variability of Life on Earth

4 Biodiversity, the planet s most valuable resource, is on loan to us from our children. - Edward O. Wilson

5 BIODIVERSITY UNDERPINS THE FUNCTIONING OF ECOSYSTEMS

6 Biodiversity loss = the long-term or permanent qualitative or quantitative reduction in components of biodiversity and their potential to provide goods and services, to be measured at global, regional and national levels (CBD COP VII/30) Biodiversity Loss

7 Degradation of ecosystem services World Health Organization Millennium Ecosystem Assessment (2005): 15 of the 24 ecosystem services evaluated have degraded over the past half century

8 Rate of recent change has been higher than any time in the past

9 Biodiversity loss at the Nexus of many risks Global warming may dominate headlines today. Ecosystem degradation will do so tomorrow. --Corporate Ecosystem Services Review, World Resources Institute et al., 2008 (v. 1.0)

10 Economic costs of Biodiversity loss Nature's infrastructure is being destroyed by human activities representing a stunning estimated loss of 2.5 to 4.5 trillion dollars a year for each of the last 25 years. --Pavan Sukhdev, Study Leader, 2009 www. teebweb.org

11 BUSINESS AND BIODIVERSITY PricewaterhouseCoopers 13th Annual Global CEO Survey 2010

12 BUSINESS AND BIODIVERSITY LOSS = Threat of irreversible biodiversity loss through species extinction or ecosystem collapse World Economic Forum 2013

13 Undervaluation of biodiversity and ecosystem services Pricewaterhouse Coopers for TEEB, 2010

14 Project-level contribution to overall impacts PROJECT

15 MINING PROJECT DEVELOPMENT AND BIODIVERSITY IMPACTS MINING ACTIVITIES POTENTIAL IMPACTS International Council on Mining and Metals (2006) Good Practice Guidance for Mining and Biodiversity.

16 WCS: Who We are 1897 The Wildlife Conservation Society (WCS) was founded as the New York Zoological Society with the purpose of public education, research in zoology, and the preservation of wildlife. WCS

17 WCS Global Conservation Program 81 long-term sites 55 countries Mission: WCS s Global Conservation Program saves wildlife and wild places by understanding critical issues, crafting science-based solutions, and taking conservation actions that benefit nature and humanity.

18 Field-based Conservation with a long-term commitment WCS's evolution since Single species Ecology, behavior Protected areas Safeguard these species Today Landscape level efforts Ensures wildlife persistence Our approach: Using science to drive conservation action Long term commitment Empower local communities Engage local, national govt. Build local/national capacity K. Redford WCS

19 Goals of this session Explore and Discuss: Concepts of biodiversity and ecosystem services The business case for protecting biodiversity as part of the social license to operate and risk management Lessons learned from experiences and examples of CR policies from three mining companies, including the application of biodiversity guidelines and field-based practices in their Canadian and global operations to address biodiversity loss.

20 5. Integrating Biodiversity Considerations Across the De Beers Mining Lifecycle Warwick Davies-Mostert, Biodiversity Coordinator, De Beers Group Structure of today s session 1. Introduction: Incorporating biodiversity and ecosystem services into corporate responsibility policy and practice Justina Ray, Executive Director/Senior Scientist, WCS Canada 2. Moving Toward a No Net Loss Concept: Implementing the Mitigation Hierarchy Ray Victurine, Director Conservation Finance and Lead Business and Conservation Team, Wildlife Conservation Society 3. Perspectives of Biodiversity Management for Small Scale Exploration Mark Wiseman, Vice President, Sustainability, Avalon Rare Metals, Inc. 4. The Business Case for Delivering Net Positive Impact on Biodiversity at Cobre Panama Craig Ford, Vice President, Corporate Responsibility, Inmet Mining Corporation

21 The Business Case for Biodiversity Conservation (Moving Toward a No Net Loss Concept: Implementing the Mitigation Hierarchy)

22 Biodiversity Value Mitigation hierarchy and offsets + ve Net Positive Impact ACA Ofs Ofs PI PI PI PI - ve Rs Mt Mt Av Av Av Elements of NPI Residual Impact PI = predicted impact Av = avoidance Mt = mitigation Rs = restoration Ofs = offsets ACA = additional conservation actions

23 The Business Case: Managing Risk Conservation planning can mitigate Risk Regulatory risks Profitability may be threatened by fines, claims for damage, delays in or withdrawn authorization Reputational risks for companies Loss of trust, poor profile, target of negative publicity, NGO campaigns, loss of license to operate Financing risk Tougher access to investment capital debt and equity given growing offset requirements by Equator banks Operational risks Poor consideration of biodiversity & ecosystem services can increase future vulnerability to risks (e.g. inadequate water supply, flooding)

24 The Business Case: Competitive Advantage Access to land, both at the initial stages of project development and for ongoing exploration to extend the lifetime of existing projects; Legal and social license to operate; Access to markets for products; both old & new. Access to human capital. A seat at the policy development table.

25 J.P. Morgan Chase: balancing nonfinancial factors such as environmental and social issues with financial priorities is an essential part of good corporate citizenship in addition to being fundamental to risk management and protection of investors.

26 Access to Finance Performance Standard 6: Biodiversity Conservation and Sustainable Natural Resource Management Clients obligations? Natural habitat Impacts: Avoid, Minimise, Restore, then: Offset to achieve No Net Loss (where feasible) Critical habitat impacts: Emphasis on avoidance. Offset goal: Net Positive Gain

27 Equator Principles and Finance Equator banks update project finance standards in March Equator Banks & Financial Institutions since June 2003 Operating in 30 Countries 70% of international project finance in emerging markets IFC Performance Standards (rev) adopted 2012 Clients seeking finance for large projects must comply with IFC s Performance Standards

28 EIA and Biodiversity Environmental Impact Assessment (EIA) rarely planned to achieve no net loss ; Typically only requires avoidance/minimisation for some impacts; Usually does not address residual impacts; Does not address all components of biodiversity affected; Often very site specific, without proper landscape scale; Usually fails to address indirect and cumulative impacts;

29 EIA and Biodiversity Offsets can be integrated with the EIA process to deliver no net loss Companies cannot assume that their social license to operate will be upheld by only complying with existing regulations Offsets often go beyond compliance

30 Some Key Offset Concepts Ecological Equivalence or Like for Like =

31 Some Key Offset Concepts Limits to What Can be Offset High Irreplaceability Feasibility best below curve (lower risk) Low to moderate irreplacability Vulnerability moderate to high - conservation options should exist LowH Low Vulnerability High Vulnerability low but biodiversity is restorable adding value

32 Some Key Offset Concepts Permanence Offsets should be designed and implemented to guarantee the outcomes over the long-term Legal, financial and management mechanisms need to be in place to secure outcomes that last at least as long as the development project s impacts and preferably in perpetuity.

33 Creating Best Conservation Outcomes Compensation Offset No Compensation Business as Usual Some investment in conservation but no effort to quantify impacts or arrive at some equilibrium Higher level of compensation efforts to adequately address impacts. ` No Net Loss Objective Reached Net Gain or Net Positive impact

34 Summary and Conclusions Business case is growing for companies to address their biodiversity risks and impacts on ecosystem services often beyond legal compliance Lending community requirements for compensation for impacts on natural and critical habitat to achieve higher standards than required by governments Growing expectations by governments and international community for companies to contribute directly to biodiversity conservation Landscape level approach is key to meeting conservation objectives - Government role is key in this regard Potential new standard for business

35 Biodiversity in Exploration Practical Applications that Add Value Mark Wiseman, Vice President Sustainability CSR Event Series, PDAC 2013 March 5, 2013

36 2 Exploration Background Most exploration companies are small organizations with: $8-10 Million dollars capital cap 2-4 people Work is done by contractors and consultants A comprehensive Environment and Social Impact Assessment (ESIA) could cost well in excess of $5 Million Exploration companies have a legal responsibility to their shareholders who want a return on their investment Only about 1 in 100 to 1 in 1000 exploration plays becomes a mine

37 Biodiversity Impacts by Exploration Factors 3 Climate Soil Stability and Topography Past activity Local ecosystem sensitivity or uniqueness Extent of local aquatic systems Contractor knowledge Poverty and education levels of local communities Level of local organization sophistication Local use of biotic resources

38 4 Biodiversity and Sustainability Biodiversity is linked to sustainability. The strength or type of the link varies and includes: Unclear land/mineral right ownership and access to land Exploration linked to jobs, which attracts an increased population density and pressure on ecosystems. Companies must: Limit/control access Communicate and set clear expectations Commit to future participation/negotiation Exploration may bring access to limited resources e.g. Water wells Road development increases access by other industries (forestry, tourism, hunters/fishermen) which puts pressure on biodiversity Health and safety and associated training can impact local workforce.

39 5 MAC Commitments Positively contribute to conservation of biodiversity Integrate respect for critical habitat, mine and land-use planning and management strategies (include no go) Assess and monitor biodiversity in all mine project stages Avoid, minimize, mitigate, and/or compensate for impacts Comply with requirements of protected areas and work to establish protected areas Reclamation plans Transparently report Do not explore or develop in World Heritage sites.

40 6 Before Exploration Starts Literature search, airborne surveys, government surveys, low impact ground truthing, to focus drilling Visit the internet SARA COSEWIC IUCN Talk with stakeholders, regulators Identify species of concern and risks Know the climate and species, schedule appropriately Plan your access road and erosion controls

41 7 Potential Impacts Erosion

42 Erosion Control 8

43 Drill Pads and Access Roads 9

44 10 Biodiversity Management Practices in Exploration Minimize your footprint Do not completely clear underbrush, control erosion Avoid clearing during breeding seasons of important species Immediately rehabilitate drill sites (Fund them) No hunting, fishing or trapping on site No pets on site (including local wild animals) Clean up garbage and dispose of it appropriately Manage all wastes Control access to extent practical prevents: Over hunting and fishing Garbage Fire risk

45 11 Biodiversity Management Practices Train employees and keep records of animal sightings Conserve water, control drill sludge and remove/rehabilitate Prevent fires by Training and equipment Behavior Be very careful with stream crossings Manage key risks e.g. petroleum product spills Collect meteorological data Ensure proper incentives for your drilling contractors

46 12 Species at Risk THREATENED Schedule 1: Peregrine Falcon (crow sized) (IUCN: Least Concern) SPECIAL CONCERN (COSEWIC) Rusty Blackbird (21-25 cm, in) (throughout boreal forest, esp wetlands) 90% reduction in population over 30 years due to loss of winter wetlands in Mississippi and active control programs in USA. (IUCN: vulnerable) SPECIAL CONCERN COSEWIC Wolverine (IUCN: Near Threatened) THREATENED (COSEWIC) Olive Sided Flycatcher (18-20cm, 7-9 in.) Threatened due to deforestation in wintering area in South America. (IUCN: Near Threatened ) SPECIAL CONCERN (COSEWIC) Common Nighthawk (21-25cm, 8-10 in) (Thor Lake at NE margin of range) (IUCN: Least concern) SPECIAL CONCERN COSEWIC Barren Ground Caribou (IUCN: Not listed) SPECIAL CONCERN (COSEWIC) Short Eared Owl (34-42cm, in) (prefer open, non forested areas, grasslands, bogs, marshes) (IUCN: Least concern) Note: some images may be subject to copyright.this is not to be reproduced except for internal circulation within Avalon.

47 13 Above and Beyond Clean up historical damage Participation of local stakeholders Traditional Knowledge Participate in biodiversity studies Consider Cumulative Effects Be transparent e.g. publish inspection reports

48 14 Risks of Poor Biodiversity Management Companies with poor biodiversity management practices: Have bad reputations or problems with stakeholders Have poor relationships with regulators and difficulty getting permits Have rehabilitation liabilities Are perceived as a higher risk investment by banks, making funding for projects more difficult Foster opposition to the project No one wants to purchase a liability

49 15 Benefits of Biodiversity Management Companies wishing to acquire exploration assets or banks/funds who fund project development want companies with: Strong environmental reputation and a license to operate Good relationships with regulators and ability to obtain permits Good relationships with stakeholders, especially those with ability to impact development Good reputations Low risk

50 16 Where to go for Help Internet Web Sites E3+; Local regulators Local NGO s Local communities

51 Contact: 17

52 Integrating biodiversity considerations across the mining lifecycle Warwick Mostert PDAC Convention, CSR Event Toronto, 5 th March 2013

53 De Beers Global operations 2

54 Biodiversity across the mining lifecycle EXPLORATION PROJECT OPERATION CLOSURE Closure Planning Concurrent rehabilitation Closure rehabilitation Mitigation Hierarchy Avoid Minimise Rehabilitate Offset 3

55 Exploration Phase EXPLORATION DESKTOP/ CONCEPTUAL PROJECT PRE- FEASIBILITY PROJECT FEASIBILITY PROJECT PROJECT IMPLEMENTATION OPERATION CLOSURE EXPLORE Map biodiversity context of exploration area for risks and avoid if fatal flaw exists Biodiversity Overlap Assessment Commission baseline studies in broad area Biodiversity Baseline 4

56 Project Phase Desktop/Concept EXPLORATION DESKTOP/ CONCEPTUAL PROJECT PRE- FEASIBILITY PROJECT FEASIBILITY PROJECT PROJECT IMPLEMENTATION OPERATION CLOSURE GATHER DATA CONSIDER Conduct Biodiversity screening as part of Environmental Screening for project and broader area for fatal flaws Environmental Screening including Biodiversity 5

57 Project Phase Pre-feasibility Phase EXPLORATION DESKTOP/ CONCEPTUAL PROJECT PRE- FEASIBILITY PROJECT FEASIBILITY PROJECT PROJECT IMPLEMENTATION OPERATION CLOSURE NNL assessment REVIEW OPTIONS Conduct Biodiversity scoping as part of Environmental Scoping phase of Environmental Impact Assessment and conduct specialist studies Environmental Impact Assessment Scoping including Biodiversity 6

58 No net loss for biodiversity + No Net Loss and the Mitigation Hierarchy Mitigation Hierarchy Means of achieving no net loss of biodiversity Important to identify whether the significance of the residual requires offsets Offsets are a last resort Contribution Residual impact Residual impact Impact Offset? Natural recovery Natural recovery Potential impact Residual impact Minimize and Mitigate impacts Minimize and Mitigate impacts Minimize and Mitigate impacts Avoid impacts Avoid impacts Avoid impacts Avoid impacts Time component & natural recovery component reduce the residual impact 7

59 No Net Loss of Biodiversity Objectives of a NNL assessment: Assess the overall impact on biodiversity across the entire mining lifecycle Highlight focus areas of significant habitat/species and ecosystem services that deserve attention in the Biodiversity Action Plan Identify and leverage mechanisms (stewardship/protected Area expansion) to provide long term protection for key Biodiversity Areas 8

60 Biodiversity Indicators used in NNL assessment Proximity to and category of biodiversity priority areas (stewardship/pa options) Condition of ecosystems or habitat (habitat hectares?) Vegetation type and ecosystem status Species of special concern Unique or special features Important spatial components of ecological processes (e.g. ecological corridors, potential for expansion) Key ecological processes and/or functions Valued ecosystem services Known or projected trends in both biodiversity and/ or ecosystem services Contextual analysis of the site/surrounding environment 9

61 Project Phase Feasibility Phase EXPLORATION DESKTOP/ CONCEPTUAL PROJECT PRE- FEASIBILITY PROJECT FEASIBILITY PROJECT PROJECT IMPLEMENTATION OPERATION CLOSURE OPTIMISE CHOSEN OPTION Continue Biodiversity specialist studies and impact assessment as part of full Environmental Impact Assessment and develop Management Plan Environmental Impact Assessment and Management Plan including Biodiversity 10

62 Project Phase Implementation EXPLORATION DESKTOP/ CONCEPTUAL PROJECT PRE- FEASIBILITY PROJECT FEASIBILITY PROJECT PROJECT IMPLEMENTATION OPERATION CLOSURE CONSTRUCT Implement biodiversity component of Environmental Management Plan related to construction and check compliance Environmental Management Plan including drawing up a Biodiversity Action Plan 11

63 Operational Phase EXPLORATION DESKTOP/ CONCEPTUAL PROJECT PRE- FEASIBILITY PROJECT FEASIBILITY PROJECT PROJECT IMPLEMENTATION OPERATION CLOSURE NNL assessment OPERATE Integrate Biodiversity Action Plan into biodiversity component of Environmental Management Plan Integrate in ISO14001 EMS Implement concurrent rehabilitation as per closure plan Biodiversity Action Plan driven through EMS 12

64 Operational Phase EXPLORATION DESKTOP/ CONCEPTUAL PROJECT PRE- FEASIBILITY PROJECT FEASIBILITY PROJECT PROJECT IMPLEMENTATION OPERATION CLOSURE NNL assessment CLOSE Implement Closure Plan including physical rehabilitation and restoration of biodiversity Independent biodiversity expertise essential Ongoing monitoring for effectiveness of biodiversity restoration 13

65 Begin with the end in mind - The Oaks Mine - South Africa (1999) 14

66 The Oaks closure phase (2011) 15

67 The Diamond Route 16

68 The Diamond Route Our best gems are above ground Ecosystem & species conservation, including several endangered species Social & economic development Development of urban biodiversity conservation Sustainable water management Climate change mitigation and management initiatives Heritage conservation 17

69 Endangered species protection 18

70 The Diamond Route 19

71 What would you see if a diamond mining company owned this land? 20

72 Exactly what you see here 21

73 22