Rio Tinto’s Biodiversity Strategy Achieving Net Positive Impact

1 World Environment Centre Roundtable on Biodiversity, Helsinki 8 - 9 June 2006

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 – A diversity of Priorities and Perspectives

Recognition of the Business Case

The Learning Process – Listening to the Experts

The Response – Inclusive, Realistic, Significant

The Future – Research & Development

Questions


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


Rio Tinto Group

36,000 people, including 6,000 in Joint Ventures

Multiple cultures

Multiple Continents

12 Smelting/Refining Operations

54 Mining Operations

23 Other Facilities and Development Projects

20 Countries

Exploration and OTX

6 “Product Groups”


Location of Rio Tinto operations

Diamonds

TiO2 / Iron

GoldBorates

Copper /Gold /

Silver /Molybdenum

CoalGold

TalcCoal

Talc

Iron ore

Borates

Aluminium

Talc

Uranium

Diamonds

TiO2

Copper

GoldGold

DiamondsSalt

Iron ore

Aluminium

Aluminium

Coal

BauxiteCoalAluminaAluminium

Coal

Iron Ore

Uranium

Copper/gold

Zinc, silver and gold

Talc

Iron ore

TiO2


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


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


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


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


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


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


“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

Net positive impact is our long term goal


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

The biodiversity strategy is being implemented


Net Positive Impact: the Position Statement and Principles

1. Aim to have a net positive effect on biodiversity.

2. Committed to the conservation of threatened and endemic species and high priority conservation areas.

3. Seek equity and the reconciliation of differing perspectives and ideals in biodiversity decisions and actions.

4. Enhance outcomes through consultation, constructive relationships and partnerships.

5. Integrate biodiversity issues into operational planning and decision making processes.

6. Apply appropriate expertise and resources to biodiversity issues and build internal and external capacity.

7. Promote the collection, analysis and dissemination of biodiversity information and knowledge.


Rio Tinto Biodiversity Strategy Framework

Project Development Operations Post ClosureExploration

Project Timeline

Simple Systems Complex Systems Simple Systems

Achieving NPI

Biodiversity Performance Measures Programme (Earthwatch)

IBAP (CI) OBAP (FFI)

Biodiversity Diagnostic (Health Check)

Policy Elements (Position Statement & Principles)

Rio Tinto Land Stewardship & Closure Standards

Rio Tinto Biodiversity Guidance Document

Offsets

Ecosy

stem

Servic

esTool Box


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’


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


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


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


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.


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.

Documents

Rio Tinto’s Biodiversity Strategy Achieving Net Positive Impact