How Extractive Companies Can Put Biodiversity Into Strategy

Businesses, policymakers and civil society once viewed biodiversity mainly through a regulatory compliance framework. That perspective could be changing as biodiversity becomes recognised as a foundation for economic and social stability.

The extractive sector has long understood biodiversity due to its connections with land and natural resources. Companies in this sector are now undergoing a change in how they approach biodiversity management.

Biodiversity integration into core business strategies was arguably viewed as optional. That view appears to be shifting towards recognition as a requirement for operations. The change matters for nature and for associated areas including risk management, value creation over time and maintaining social licence to operate.

The Integrated Biodiversity Assessment Tool (IBAT) has released a guide called Biodiversity Considerations for the Extractive Sector. The guide examines how companies can use biodiversity data and information to screen risks, identify challenges and opportunities and monitor effects across project lifecycles.

Managing biodiversity in extractives

Hayley Zipp, Director of Environment at the International Council on Mining and Metals (ICMM), says: "ICMM welcomes IBAT's guide on biodiversity considerations for the extractives sector."

Hayley says: "Integrating biodiversity into core business decisions is no longer a 'nice to have' – it is fundamental to building resilient business and achieving a nature-positive future."

She adds: "IBAT's guide helps companies translate complex biodiversity data into practical decision making, supporting the sector to move beyond compliance and play a meaningful role in halting and reversing nature loss."

The effects of extractive operations can occur from site level to global scale. Direct effects like habitat clearing are often combined with indirect factors including the introduction of invasive species or population changes.

Cumulative effects, which are the combined result of multiple actors over time, can lead to ecosystem degradation according to IBAT. Research shows that extractive assets overlap with 36% of natural UNESCO World Heritage sites.

According to the research, 70% of such sites are located within 20 km of activity.

The demand for transition minerals like nickel has increased mining pressure on Key Biodiversity Areas. This has affected forests and water systems according to the guide.

Commercial advantages of nature action

The guide notes that beyond individual project sites, the aim of becoming nature positive is gaining attention. This involves a global effort to halt and reverse nature loss by 2030 with a target for full recovery by 2050.

Achieving this could require companies to look beyond their immediate footprint and contribute to changes at landscape level. These themes will be explored at the Nature Action Dialogues forum on 12-13 May.

IBAT and other industry leaders including ICMM will share approaches to scaling nature-positive action at the event. Managing nature proactively could offer commercial advantages according to the guide.

High environmental standards could strengthen stakeholder confidence and position companies as operators with a long-term view. Strong biodiversity performance may facilitate land access and reduce the risk of production delays caused by ecosystem degradation.

It could also open access to new capital as investors increasingly consider nature-related data in their decisions. The guide mentions that nature-based solutions such as restored ecosystems for water management can be more cost-effective than traditional infrastructure.

These methods could reduce long-term closure liabilities while meeting regulatory requirements. Demonstrating action on nature based on science could help restore public trust.

Engagement with Indigenous Peoples and integration of traditional ecological knowledge matters when operating in sensitive areas according to the guide.

Biodiversity across operational stages

To manage these risks, biodiversity must be considered at every operational stage according to IBAT. During exploration and acquisition, companies should establish baselines early and avoid high-value areas.

Due diligence should be conducted to identify legacy environmental liabilities. During construction and operation, mitigation efforts include scheduling work around migratory seasons and using technologies to reduce noise and light pollution.

Progressive rehabilitation and continuous monitoring are required during operations. Post-closure planning must be transparent and based on science.

The land should support sustainable uses through long-term governance and community engagement. By using tools like IBAT and following international performance standards and frameworks, extractive companies can build models that align with a nature-positive future according to the guide.

Read the full guide

To explore the insights and recommendations in more detail, download Biodiversity Considerations for the Extractive Sector from the Integrated Biodiversity Assessment Tool (IBAT).