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Biodiversity
What is biodiversity?
> The variability among
 Smithsonian Institution, Carlton Ward
living organisms and the
ecological complexes of
which they are part,
including diversity within
species, between species
and of ecosystems
> The three commonly
 Smithsonian Institution, Carlton Ward
recognized levels of
biodiversity are
ecosystem, species and
genetic
Biodiversity
Biodiversity and human welfare
> Provides direct benefits in the form of goods or
products such as food, water, timber, clothing
materials and medicine
> Also provides less tangible benefits, including the
ecological services upon which human survival
depends, such as watershed protection, carbon
storage, pollination and nutrient recycling
> Genetic diversity helps create
new crops or animal varieties
and pharmaceuticals
> Also provides important
cultural, spiritual and
aesthetic benefits
 Conservation International
Biodiversity
Addressing threats to biodiversity
> Biodiversity is under greater threat than
ever before from human activities
> Society is beginning to respond to this
threat in many ways:
> U.N. Convention on Biological Diversity (1992)
> National Biodiversity Strategies and Action
Plans
> Increase in the numbers and area covered by
protected areas around the world
> National legislation and regulations
> Civil society actions
Biodiversity
Protecting biodiversity
> International, national, local protected areas
> Now about 96,000 protected areas worldwide,
covering nearly 11 percent of the Earth’s surface
> Range from areas strictly designated for conservation
and off-limits to most human activity to areas
managed for the use of natural resources or recreation
> IUCN Management Category System helps to create a
common language
> Not all areas with high biodiversity values are
protected
> Governments and NGOs have created additional
systems of prioritization, to identify important areas
for biodiversity conservation
Biodiversity
Biodiversity is an integral part of
sustainable development.
> It cannot and should not be
considered in isolation
> Must be managed in
conjunction with other
issues, such as social and
economic considerations,
pollution and health
> For example, many
biodiversity-rich areas
overlap with the traditional
lands of indigenous people
 Conservation International
Oil and Gas
The Oil and Gas Project Lifecycle
Acquire
Concession
Pre-bid
Risk Assessment
studies
Prove
Commercial
Hydrocarbons
Exploration
and
Appraisal
Start
Production
Development
End
Production
Operations
Production,
Seismic and Drilling and
drilling
construction maintenance and
transportation
Restoration
Decommissioning
Oil and Gas
Meeting global energy demand
> World energy demand is expected to grow by 66%
by 2020, with demand for natural gas doubling in
that time frame (IEA World Energy Outlook, 2002)
> In the short and medium term, much of that
demand will be met by oil and gas
> Natural gas will be an important
bridging fuel to a renewable energy mix
mix
> Challenge to society: Ensure continued
global development while managing oil
and gas activities to minimize longterm disturbance to valuable
ecosystems
 BP
Energy and Biodiversity
> Growing tension between energy needs
and biodiversity values
> Many areas that are potentially valuable
for oil and gas are also recognized for
biodiversity values
> Oil and gas
development can
have a wide range
of impacts on
biodiversity
 Conservation International, Haroldo Castro
Energy and Biodiversity
> Challenge to energy companies:
Find a way to meet public demand for
abundant, low-cost oil and gas products
and, at the same time, meet society’s
expectations for corporate social and
environmental responsibility, including
biodiversity protection
 BP
> Challenge to conservation
organizations: Because there is a
balance to be struck between economic
development and the conservation of
biodiversity, be a strong voice for
biodiversity protection while seizing
appropriate opportunities to partner with
industry
 Smithsonian Institution, Carlton Ward
The Role of National Governments
> Energy companies and conservation organizations
cannot solve biodiversity problems on their own
> Government officials shape and implement
conservation strategies and set priorities
> In some cases national oil companies control
most of the production in a country
> Governments face the challenge of balancing
economic growth and development with
biodiversity conservation
> Companies and NGOs should work closely with
government officials to encourage them to play a
leading role in conservation
Building the Business Case
What is the business case for integrating
biodiversity into oil and gas development?
> Based on a company’s values
and principles
> “It’s the right thing to do” is a
starting point for many
companies
> Grounded in risk management
 BP
Building the Business Case
> Biodiversity issues ARE identified and
addressed at the project level:
Limited project
delays and
enhanced
relationships
with local
stakeholders
Positive
corporate
reputation
as a
responsible
operator
Company of
choice for
governments,
investors,
business
partners and
employees
Continued access to key business resources
Building the Business Case
> Biodiversity issues ARE NOT identified and
addressed at the project level:
Project delays,
unexpected
costs and
conflicts with
communities,
government
and NGOs
Negative
corporate
reputation
as an
irresponsible
operator
Long-term
constraint on
future business
opportunities
Diminished access to key business resources
Integrating Biodiversity
into Management Systems
How can companies integrate biodiversity
considerations into their systems and operations?
> By integrating biodiversity considerations into
both project- and corporate-level environmental
management systems (EMS) and the
environmental and social impact assessment
(ESIA) process
> By having a valid and transparent risk
assessment process to manage and conserve
biodiversity
Integrating Biodiversity
into Management Systems
Environmental and Social Impact Assessment
> In some countries, impact assessment is managed by
governments, in others, companies are responsible
> The CBD recommends evaluating impacts at all levels,
encompassing the appropriate temporal and spatial scales of
impacts, values for affected people, mitigation requirements
and the need for stakeholder participation
> ESIA processes should address relevant government standards,
requirements, enforcement and ESIA processes
> The ESIA process should begin as early as possible in the
project lifecycle
> Stakeholder engagement is key to ensuring that the ESIA
process is fair and credible
Integrating Biodiversity
into Management Systems
Environmental and Social Impact Assessment
Stages of an ESIA relevant to biodiversity
> Identification of alternatives
> Screening
> Scoping
> Baseline establishment
> Evaluation (impact analysis)
> Development of mitigation options and implementation
> Monitoring and adaptation
Stakeholder engagement on biodiversity issues and
estimation of secondary and cumulative impacts should occur
throughout all stages
Mitigating Impacts
What are the potential negative impacts on
biodiversity from oil and gas development,
and what practices can companies adopt at
their operational sites that will mitigate
these impacts?
> Primary vs. Secondary Impacts
> Similar in ultimate effect on
biodiversity
> Different in cause, scope, scale,
intensity and boundaries of
responsibilities
 Smithsonian Institution, Carlton Ward
Mitigating Impacts
Primary impacts
> Changes to biodiversity from project activities
> Geographic area relatively near to the project
> Become apparent within the lifetime of the
project
> Often immediate effects
> Relatively easily predicted through ESIA
> Can usually be minimized or avoided through
technological solutions
> e.g. land take, habitat loss and soil erosion
Primary impacts generally result from operational
decisions and the activities of project personnel
Mitigating Impacts
Secondary impacts
> Usually triggered by the operations
> May reach outside project or even concession
boundaries
> May endure or begin after a project’s life cycle
> May or may not be
predicted by ESIA
> May not be identified or
realized until much later
in the project cycle, or
after decommissioning
 Conservation International
Mitigating Impacts
Secondary impacts
> Tend to result from government decisions and the
>
>
>
>
actions and practices of nearby communities or
immigrants, in response to the presence of the
project
Are the most controversial and difficult to
manage, because of shared spheres of
responsibility
May cause the most problems for the project and
company
Are most difficult to predict and control
Nevertheless, a company may be responsible
Mitigating Impacts
Factors that may lead to
secondary impacts
> Immigration and
new settlements
> Increased access
to undeveloped
areas
> Introduction of
non-native species
Source:Sader,S.A .,et al.Time-series tropical forest change detection
for The Maya Biosphere Reserve: Updated Estimates for 1995 to
1997. Maine Image Analysis Laboratory,University of
Maine,Department of Forest Management
Mitigating Impacts
Approaches for managing secondary impacts
> Cooperation among many
>
>
>
>
partners
Early and continuous
involvement with all relevant
stakeholders
Government involvement and
responsibility
Transparency and
responsiveness to concerns
Promotion of and participation
in government-led land-use
planning processes at an
appropriate geographic scale
Deciding Where to Work
How can companies factor biodiversity criteria
into decisions about where they will work?
> With a risk-based decision-support framework
for aiding in site selection, companies can:
> Identify and prioritize the risks and benefits of
working in a certain area and guide choices about
whether to pursue specific business opportunities
> Highlight requirements for specific risk-management
responses
> Help determine how to address biodiversity issues
Deciding Where to Work
Key Aspects of the Framework
Categorizing the world
Conservation Priority
Areas (CPAs)
Protected
Areas (PAs)
Rest of the
World
Areas not yet identified
as important for biodiversity conservation
Deciding Where to Work
Protected areas and conservation priority areas
> High biodiversity values exist
both in and outside of protected
areas
> While some governments may
permit oil and gas development
in certain protected areas, this
can present significant risks to
biodiversity
> Companies should seek to avoid
protected areas by considering
alternate locations, routes and
technologies
 Smithsonian Institution, Carlton Ward
Measuring Impacts and Actions on Biodiversity
Biodiversity indicators
> A formalized system to measure and monitor
impacts to biodiversity can aid in predicting,
minimizing and preventing impacts and increase
transparency about company performance
> Biodiversity indicators can be used to:
> Understand impacts on
biodiversity
> Predict potential impacts
> Improve operational
performance
> Minimize future impacts
> Report back to stakeholders
 Smithsonian Institution, Carlton Ward
Measuring Impacts and Actions on Biodiversity
Biodiversity indicators
> Indicators can measure and monitor impacts on
species, habitats and ecosystems, as well as
management commitment and process, impact
reduction and positive action
> Biodiversity has no single all-purpose indicator;
rather a common methodology can be used to
develop indicators for each project
> Biodiversity indicators will not be necessary for
every project or activity
> Indicators are not an end in themselves, but an
input into an adaptive management system
Measuring Impacts and Actions on Biodiversity
Developing biodiversity indicators
1. Desktop
Assessment
2. Establishing a
Baseline
3. Focusing on
Significant Impacts
6. Generating
Company-Level
Indicators
5. Choosing SiteLevel Indicators
4. Generating List of
Potential Site-Level
Indicators
7. Monitoring of
Impacts
8. Reporting
Performance
9. Reviewing and
Modifying Activity
Measuring Impacts and Actions on Biodiversity
Examples of biodiversity indicators
> Species:
Globally threatened and data deficient species in area;
restricted-range species; invasive non-native species that are
threatening to ecosystems, habitats or species; species used by local
populations
> Habitat: Operational site overlap with conservation priority areas
containing globally threatened or restricted-range species; amount of
land within the operational site that has a management plan with a
biodiversity conservation focus; contribution to habitat conservation
> Corporate management:
Biodiversity elements included in
management system; corporate/business unit budget allocation for
biodiversity; sites with biodiversity action plans; ongoing biodiversity
conservation projects, at site or collaborations at company level
Benefiting Biodiversity
How can companies go beyond minimizing
impacts and take actions that benefit
biodiversity?
> By investing in
opportunities to
benefit biodiversity
that go beyond just
mitigating impacts
and contribute to
improving the status
of biodiversity or the
capacity to conserve it
 Shell
Benefiting Biodiversity
Opportunities vs. Offsets
> Opportunities complement, rather than replace voluntary
or required investments in conservation offsets
> Offsets are designed to reduce primary and secondary
negative impacts to achieve no net loss of biodiversity
> Ensure that the status of biodiversity at the end of a project is
comparatively as well off overall as before the project began
> Should be minimum expected standard
> Examples: Placing land into protected status, enhancing or
restoring degraded land, supporting research or capacitybuilding
Benefiting Biodiversity
Most outstanding
biodiversity
needs/challenges
Possible opportunities for benefiting
biodiversity conservation
1.
Lack of resources or
structure to manage
protected areas
>Trust fund, financial contribution to
protected areas management
> Support for a new protected area
2.
Important, threatened
and unprotected
ecosystems or species
> Manage concession as protected area
> Campaign to protect ecosystem by
using charismatic, endangered flagship
species
> Support conservation easements
Benefiting Biodiversity
Most outstanding
biodiversity
needs/challenges
Possible opportunities for benefiting
biodiversity conservation
3.
Lack of government or
scientific capacity to
study and manage
biodiversity
>Support for scientific research, analysis
> Support for technical capacity-building
and training
> Support for managerial capacitybuilding in government agencies
4.
Lack of public
awareness of or
involvement in
conservation
> Support for environmental education
and awareness building
> Support for integrated conservation and
development
The Importance of Stakeholder Engagement
> Stakeholders are all those who are affected,
interested in or have the capacity to influence a
project.
> Engagement
should begin as
early as possible
and continue
throughout the
project.
> Helps a company
earn a “social
license to
operate.”
Source:Connor Development Services Ltd
The Importance of Stakeholder Engagement
Biodiversity-related issues for stakeholder
engagement
> Local knowledge and use of biodiversity
> Local dependence on ecological resources
> Health impacts of
environmental damage
> Consequences of
secondary impacts
 Conservation International