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30 November 2017

Conserving global biodiversity without compromising economic development is a defining challenge of the 21st century.

In light of the unprecedented global decline in biological diversity, together with the goods and services it provides, the world is waking up to the fact that attainment of sustainable development goals is inextricably linked to more effective and responsible management of biodiversity.

Businesses, which rely on everything from fresh water to protection from natural disasters, are recognising that they need to look at the big picture – how their activities are linked to biodiversity and ecosystem services – in order to thrive, and the number of businesses that are setting more targeted and measurable environmental goals, and making commitments to achieving a net positive impact on biodiversity, is increasing.

Achieving a net positive impact (NPI) on biodiversity means that a project’s overall negative impacts on biodiversity are outweighed by the biodiversity gains that are achieved through conservation projects in the same region (though it is inevitable that some losses will still occur at the development site and that the gains may not be perfectly balanced to losses with regard to the time, space or type of biodiversity affected). Where a company has a target of no net loss of biodiversity (NNL), biodiversity gains match losses to ensure that there is no overall reduction in the type, amount or condition of biodiversity.

biodiversity strategy image

To be able to deliver on NNL and NPI commitments, a company must first understand its impacts and have a clearly defined and quantified biodiversity baseline. This baseline provides information on the biodiversity values at a site, their current condition, and trends, and it is against this information that impacts are assessed and measured.

Central to the NNL and NPI approach to managing biodiversity is the application of the mitigation hierarchy. This is a prioritised set of steps to avoid, minimise, restore or rehabilitate and, if necessary, offset negative biodiversity impacts, in that order.

Why business needs to achieve a net positive impact to biodiversity

Businesses that take a proactive approach to managing biodiversity risks and demonstrate to stakeholders that they can deliver on biodiversity targets such as NPI are likely to have several competitive advantages:

  • Access to land and resources – a reputation for strong environmental management increases the likelihood of a business being granted access to land by governments, and of attracting partners, employees and customers.
  • Access to finance – given tightening standards of financial institutions, a company that has a commitment to, and delivers on NPI will be more likely to gain access to finance from the IFC, the Equator Banks and other financial institutions
  • License to operate – strong environmental practices can boost a business’s reputation with regulators, local communities and civil society, and can improve relationships with stakeholders who are affected by a company’s impact on biodiversity and ecosystem services, including those communities that are directly dependent on biodiversity and ecosystem services in the areas that a company impacts.
  • Operational cost effectiveness – by integrating biodiversity and ecosystem services into business, companies can avoid compliance costs, fines and legal fees and minimise costs for resources such as freshwater.
  • Operational stability – by reducing potentially negative impacts on those ecosystem services upon which a company’s operations depend (through first understanding biodiversity-related risks and then application of the mitigation hierarchy) the medium and long-term sustainability of those operations is ensured.

Setting NPI as a company-wide commitment, project target or even aspirational goal helps to support long-term business value. It sets a clear pathway and end-goal for mitigating impacts to biodiversity, helping to ensure that projects are designed and implemented sustainably, with biodiversity at the forefront of project decisions.

Anglo American has worked in partnership with Fauna & Flora International (FFI) since 2008 to identify and manage biodiversity and ecosystem services risk across our operations, working towards achieving sustainable objectives that will benefit biodiversity and the local communities dependent on nature.

Fauna & Flora International is at the forefront of practical application of the NNL and NPI approach. By developing methodologies and tools to enable robust NNL and NPI calculations and trialling these at project sites with their business partners, FFI are helping to ensure the greatest possible benefit to biodiversity. Their expertise in this area, together with work on-site guiding environmental teams, mine planners and other practitioners in following the mitigation hierarchy and appropriate offsetting practices, allows business partners to take on the challenge of understanding the implications and achieving the goals of NNL or NPI at their sites.

You can learn more about the FFI here.

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