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Rio Tinto’s Biodiversity Strategy Achieving Net Positive Impact

Rio Tinto’s Biodiversity Strategy Achieving Net Positive Impact. Dr Elaine Dorward-King Head Rio Tinto HSE. Photo courtesy of FFI. Presentation outline. THE ISSUE: Biodiversity is a complex subject with a diversity of perspectives and priorities.

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Rio Tinto’s Biodiversity Strategy Achieving Net Positive Impact

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  1. Rio Tinto’s Biodiversity Strategy Achieving Net Positive Impact Dr Elaine Dorward-King Head Rio Tinto HSE Photo courtesy of FFI

  2. Presentation outline

  3. THE ISSUE: Biodiversity is a complex subject with a diversity of perspectives and priorities • For biologists it means conserving the rare, threatened, endemic and fragile ecosystems, species and genes • For local communities it often means livelihoods and survival – food, shelter, spiritual significance, culture – or recreation and wellbeing – a better quality of life • For governments it means responsibility for stewardship and meeting obligations under UN conventions – CBD, Ramsar • For economists it can represent a source of capital, an asset with value • For investors it can appear as a potential source of risk and uncertainty • For mining companies, it means there may be sensitivity and concern over areas of land that might be prospective for mineral deposits • For the public there is an expectation that industry should do more to reduce its impacts

  4. 6 “Product Groups” 20 Countries 54 Mining Operations 12 Smelting/Refining Operations 23 Other Facilities and Development Projects Exploration and OTX Rio Tinto Group • 36,000 people, including 6,000 in Joint Ventures • Multiple cultures • Multiple Continents

  5. Location of Rio Tinto operations Diamonds Aluminium Talc Zinc, silver and gold Coal TiO2 / Iron Iron Ore Talc Talc Gold Coal Borates Gold Copper / Gold / Silver / Molybdenum Iron ore Gold Diamonds Gold Uranium Bauxite Diamonds Coal Alumina Aluminium Iron ore Salt Uranium Coal Iron ore TiO2 Talc Copper Coal Copper/ gold Aluminium TiO2 Aluminium Borates

  6. Evidence of the growing significance of Biodiversity to Rio Tinto • 600,000 km2 exploration land • 20,000 km2 of operational land • only 7% ‘needed’ for mining • 2001 Biodiversity Survey • 70% of all operations already dealing with biodiversity issues • Good experiences from new projects • QMM Madagascar • Diavik • Simandou Guinea • Society’s expectations • GMI and MMSD • 2010 Biodiversity target • ICMM-IUCN dialogue

  7. What are the elements of a business case for developing a more strategic approach to biodiversity? The Emerging Approach • Access to land, sea and related natural resources (directly, or through supply chains) • Legal and social license to operate • Access to capital and insurance • Access to markets for products (old and new) • Access to human capital

  8. What are the factors to consider in developing a biodiversity strategy? • Balance • How to reconcile different perspectives and priorities • Inclusiveness • Ensure that different viewpoints are represented • Delivery • The results must be better outcomes • Credibility • Listen to the experts • Practicability • Bear in mind what businesses can be asked to achieve • Diversity of Rio Tinto • Arctic to Equator, OECD to developing country, large to small • Sustainability • Technical, financial, governance

  9. Rio Tinto Biodiversity Strategy: Development 1997 - 2005 • Partnerships with conservation NGOs from 1997 onwards • Business case paper put to Rio Tinto Board in 2000 • Biodiversity activity survey of Rio Tinto carried out in 2001 • Strategy development groups operated 2002 – 2004 • Internal Steering Group • External Advisory Panel • External and internal authors developed drafts in 2003 - 2004 • Wide consultation phase internally and externally 2004 • Strategy launched at World Conservation Forum Bangkok Nov 2004 • Implementation, support, reporting 2005 onwards • Ongoing issues – measurement & indicators, offsets

  10. Rio Tinto biodiversity strategy: Elements • Position Statement and Principles • Our beliefs and commitments • Guidance document • Best Practice at all stages • Case studies • Examples of successful programmes • Working groups • Continuing collaborative policy and guidance development on offsets, performance measurement • Partnership programmes • Implementation support, capacity building

  11. Expert Advice- Rio Tinto’s Biodiversity Partnerships GLOBAL • BirdLife International • Earthwatch • Fauna & Flora International • Royal Botanic Gardens Kew • The Nature Conservancy • Conservation International • Eden Project – Post Mining Alliance LOCAL • The Australian Museum • Australian Bush Heritage • Birds Australia • National Audubon Society

  12. Net positive impact is our long term goal “Rio Tinto aims to have a net positive impact on biodiversity by minimising the negative impacts of its activities and by making appropriate contributions to conservation in the regions in which it operates.” • Measure both impacts and positive actions • Initially, apply to new projects • Contribute to understanding of biodiversity offset

  13. The biodiversity strategy is being implemented • Policy elements complete • Management tools in development • IBAP programme • Biodiversity diagnostic • BAP guidance • Methodological development ongoing • Biodiversity performance measures • Biodiversity offsets • Strategic engagement ongoing • Partnership programmes • Capacity building

  14. Net Positive Impact: the Position Statement and Principles • Aim to have a net positive effect on biodiversity. • Committed to the conservation of threatened and endemic species and high priority conservation areas. • Seek equity and the reconciliation of differing perspectives and ideals in biodiversity decisions and actions. • Enhance outcomes through consultation, constructive relationships and partnerships. • Integrate biodiversity issues into operational planning and decision making processes. • Apply appropriate expertise and resources to biodiversity issues and build internal and external capacity. • Promote the collection, analysis and dissemination of biodiversity information and knowledge.

  15. Policy Elements (Position Statement & Principles) Rio Tinto Land Stewardship & Closure Standards Rio Tinto Biodiversity Guidance Document Tool Box Ecosystem Services Offsets Simple Systems Complex Systems Simple Systems Exploration Project Development Operations Post Closure Project Timeline Achieving NPI Rio Tinto Biodiversity Strategy Framework Biodiversity Performance Measures Programme (Earthwatch) Biodiversity Diagnostic(Health Check) IBAP (CI) OBAP (FFI)

  16. Rio Tinto – EarthWatch Institute BPM Project Project Aim: To develop a set of tailored performance measures that will enable Rio Tinto to assess and report progress towards its biodiversity strategy commitment of a ‘Net Positive Impact on Biodiversity’

  17. Rio Tinto – EarthWatch International BPM ProjectProgress to date • A collaborative project involving input from a diverse range of internal and external stakeholders • Review of measurement systems and approaches commissioned and completed (Ecological Solutions, G. Tucker) • Workshop convened Sept 21-22 Broad scale input from partners • Actioned items identified to carry project forward into 2006 • Steering group set up to oversee project

  18. Rio Tinto – EarthWatch International BPM ProjectKey issues to be resolved • Identify the audiences for reporting biodiversity results and performance • Define the sphere of responsibility (geographic & temporal) for Rio Tinto’s primary and secondary impacts • Identify suitable baselines and establish acceptable background change against which to measure performance • Define the scale at which to measure performance (global, national, local) • Set the right currency for collecting and aggregating data • Develop indicators that meet a variety of criteria including site specificity, simplicity, based on categories

  19. Indicators: Key Features Methodology The development of Biodiversity indicators is based around the characterisation of key biodiversity features (taxonomies) • Species • Habitats • Ecosystem features • Ecosystem services • Cultural & Social values

  20. Operational Challenges • Making informed decisions during project Development • Staging the generation of biodiversity information to compliment the stage of project development (desktop to intensive survey) • Biodiversity Action Planning • Building biodiversity issues and management solutions into operational systems • Offsets • Developing and implementing agreed methodologies that allow operations to use offsets to achieve NPI. • Sustainability • Developing solutions to ensure that conservation initiatives are sustainable post operational closure • Engagement • Identifying and engaging with local and regional biodiversity partner organisation.

  21. Conclusions • Biodiversity is a significant issue for Rio Tinto that affects our licence to operate. • Our goal is to have a Net Positive Impact on biodiversity. • We have embarked on an extensive process to develop the tools and methodologies and capacity to achieve this goal. • Engagement and participation of external stakeholders is a critical factor in achieving this goal.

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