Integrating Biodiversity Conservation into Oil & Gas Development The Energy & Biodiversity Initiative BP • ChevronTexaco • Conservation International • Fauna & Flora International EBI IUCN •The Nature Conservancy • Shell • Smithsonian Institution • Statoil Note to Readers Acknowledgments This report, released by the Energy and Many people in both the energy Biodiversity Initiative (EBI), is the result industry and the conservation sector of a collaborative effort by representa- contributed their time and expertise tives of the nine member companies to this initiative. We are grateful to and conservation organizations of the the following for their time, commit- Initiative. The views expressed herein ment and advice: do not necessarily represent the views of every EBI member. Several consultants contributed to the EBI through research, writing, editing EBI members recognize that there and facilitation. We are grateful to is a continuing public debate around Terry Thoem for helping us stay on biodiversity conservation and oil and track through many group meetings gas operations. Although EBI was with his diplomatic but firm facilitation not intended to resolve all the issues skills. And we would like to extend a involved in this debate, we believe the special thank you to Amy Sweeting and EBI products and process will make Paul Mitchell for their help with the a significant contribution to con- writing, editing and integrating of the structive dialogue to accompany that final products of the EBI. debate. We welcome your comments and feedback on this document or The Center for Environmental Leader- any other EBI products. ship in Business (CELB) at Conservation International (CI) convened the EBI, Design and provided project management and administrative support. CELB is a COVER KINETIK division of CI, created in partner- INTERIOR Kristen Pironis ship with Ford Motor Company. We would specifically like to thank Laury Photography Credits Saligman, Jason Anderson, Nenita All photos ©Conservation International DeGuzman and Maggie Bowne for their except where noted FROM TOP Haroldo support. Castro, Piotr Naskrecki, ©BP In addition, all the members of the EBI—BP, ChevronTexaco, CI, Fauna & Flora International, IUCN–The World Conservation Union, Shell International B.V., Smithsonian Institution, Statoil and The Nature Conservancy— contributed staff time, resources and facilities to the Initiative. Finally, we would like to extend our thanks to all the individuals who provided input and comments to the EBI products, attended our stakeholder workshop, reviewed final documents and offered other support to the Initiative. Integrating Biodiversity Conservation into Oil and Gas Development Integrating Biodiversity Conservation into Oil & Gas Development The Energy & Biodiversity Initiative BP • ChevronTexaco • Conservation International • Fauna & Flora International EBI IUCN • The Nature Conservancy • Shell • Smithsonian Institution • Statoil Integrating Biodiversity Conservation into Oil and Gas Development The Energy & Biodiversity Initiative Integrating Biodiversity Conservation into Oil and Gas Development TABLE OF CONTENTS Executive Summary ............................................................................................................................................................................................................... 1 Conclusion .................................................................................................................................................................................................................... 3 Recommendations ......................................................................................................................................................................................4 Introduction ............................................................................................................................................................................................................................ 5 1. Energy and Biodiversity................................................................................................................................................................................................... 7 1.1 Biodiversity and the challenge to society ............................................................................................................................................. 7 1.1.1 The potential risk of oil and gas development....................................................................................................................10 1.2 The challenge to the energy industry ....................................................................................................................................................11 1.3 The challenge to conservation organizations .....................................................................................................................................12 1.4 Challenge and response ...........................................................................................................................................................................14 2. Integrating Biodiversity into the Business Case ......................................................................................................................................................16 2.1 Addressing biodiversity affects project-specific performance........................................................................................................17 2.2 Performance affects company reputation ...........................................................................................................................................17 2.3 Reputation affects access to business resources...............................................................................................................................18 2.3.1 Access to land and potential oil and gas resources...........................................................................................................18 2.3.2 Access to capital ........................................................................................................................................................................19 2.3.3 Access to human and intellectual capital............................................................................................................................20 2.4 A need for further study .........................................................................................................................................................................20 3. Integrating Biodiversity into Management Systems and Operations ................................................................................................................22 3.1 Integrating biodiversity into Environmental Management Systems.............................................................................................22 3.1.1 Integrating biodiversity issues into an ISO 14001-based EMS ........................................................................................23 3.1.2 Integrating biodiversity issues into an OGP-based HSEMS.............................................................................................25 3.2 Integrating biodiversity into Environmental and Social Impact Assessment processes..........................................................28 3.2.1 Biodiversity issues at each step of the ESIA process .......................................................................................................30 4. Mitigating Impacts .........................................................................................................................................................................................................34 4.1 Primary vs. secondary impacts..............................................................................................................................................................34 4.2 Managing impacts .....................................................................................................................................................................................36 5. Deciding Where to Work ..............................................................................................................................................................................................38 5.1 Biodiversity considerations and risk management ……..………………….............................................................................................38 5.1.1 Protected areas .........................................................................................................................................................................39 5.1.2 Conservation priority areas.....................................................................................................................................................41 5.1.3 Confirming biodiversity values and determining appropriate responses.....................................................................41 6. Measuring Impacts and Actions on Biodiversity ....................................................................................................................................................43 6.1 Types of indicators................................................................................................................................................................................... 44