Stuart Anstee (Chief Adviser - Biodiversity and Ecosystem Services, Rio Tinto) - Presentation at the United Nations Association of Australia (Victorian Division) Business, Biodiversity and Ecosystem Services: Valuing the Earth's Natural Capital Seminar held in Melbourne, 20 September 2012, in partnership with National Australia Bank. Building momentum for collective action post-Rio+20, the seminar brought together key players from business, government and civil society to discuss the challenges and opportunities in measuring the true value of nature and enhancing natural capital as a critical economic, ecological and social asset. An expert panel addressed: The Natural Capital Declaration and the finance sector Australian Government perspective on natural capital and sustainability: current priorities, measurement and where Australia can make a difference Business and biodiversity: valuing natural capital and ecosystem services in practice The Economics of Ecosystem Services and Biodiversity (TEEB for Business) The System of Environmental - Economic Accounts (SEEA) Integrating the valuing and management of environmental assets into business and government decision-making processes Experiences and opportunities for cross-sector collaboration Guest speakers: Rosemary Bissett (Head of Sustainability Governance and Risk, Enterprise Risk, National Australia Bank) Malcolm Thompson (Deputy Secretary, Australian Government Department of Sustainability, Environment, Water, Population and Communities Stuart Anstee (Chief Adviser, Biodiversity and Ecosystem Services, Rio Tinto) Dr Joshua Bishop (Former Chief Economist, IUCN and National Manager, Markets, Sustainability and Business Partnerships, WWF Australia). Charles Berger (Director of Strategic Ideas, Australian Conservation Foundation) Facilitator: Rosemary Sainty (Former Head, Secretariat UN Global Compact Network Australia and Adviser, Corporate Engagement, Transparency International Australia) More information available at: http://www.unaavictoria.org.au/education-advocacy/masterclasses/natural-capital-seminar/

1. Rio Tinto’s Biodiversity
Strategy:
An approach to biodiversity and
Ecosystem Service management
Business, Biodiversity & Ecosystem Services; Melbourne, 2012

2. Where we operate
at April 2012
Key Aluminium
Mines and mining projects Copper
Diamonds & Minerals
Smelters, refineries, power
facilities and processing Energy
plants remote from mine Iron Ore
North
America Europe
Asia
Africa
South
America
Australasia

3. What’s in it for a mining company?
• Maintain
access
to
resources
• Strengthen
access
to
capital,
considering,
e.g.,
revised
IFC
PS6
• Strengthen
social
licence
to
operate
• Facilitate
adherence
to
na;onal
legisla;on
where
this
already
exists
• First-­‐mover
advantage
in
advance
of
regula;on
www.riotinto.com/NPI

4. Biodiversity policy
Rio Tinto’s biodiversity goal is to achieve
a net positive impact on biodiversity by
closure of our operations. And in doing so,
it is our goal to be NPI positive as early in
the life of the operation as possible.
We aim to achieve this by:
• Avoiding unacceptable impacts to
biodiversity
• Reducing the impacts that may occur
• Restoring impacted ecosystems
• Compensating for residual impacts
with offsets
• Seeking additional opportunities
• to contribute to local conservation
www.Riotinto.com/NPI

5. A framework of policy underpinned by
mitigation hierarchy

6. A framework of policy and tools
Policy, targets, tools and methodologies
have been developed to help our
operations identify, plan for and manage
biodiversity.
The tools include:
• A Group wide Biodiversity Values
Assessment profile
• A Biodiversity Action Planning (BAP)
tool
• Biodiversity baseline survey guidance
• An NPI and offset design guidance (in
development)
• NPI verification protocol (developing in
conjunction with the IUCN)
www.riotinto.com/NPI

7. Prioritization and Planning
Prioritising action at our sites Understanding and planning for
biodiversity conservation priorities
In 2007, we introduced an annual group-
All of our sites who rank as ‘very high’ or
wide Global Biodiversity Values ‘high’ are required to have in place a
Assessment Protocol (GBVA) to help us Biodiversity Action Plan (BAP).
identify which of our operations are
located in the most sensitive areas. The BAP requires an operation to work with
biodiversity stakeholders to:
The GBVA assesses the biodiversity • identify the important biological features
values of our land holdings and in the area in which they operate;
surrounding areas based on land in
• understand the impacts and risks that
proximity to biodiversity-rich habitats, their activities might have on those
species of conservation significance features;
additional site-specific biodiversity values
• develop and implement a plan to avoid,
and/or threats and the external mitigate, restore and offset those
conservation context. impacts.
The BAP provides the framework that plans
and guides an operation’s progress towards
NPI.

8. Natural Capital Program
• NCP established to develop internal
understanding of Ecosystem Service
valuation within Rio Tinto.
• Projects initially focused on ES
valuation methodologies with outputs
integrated into broader biodiversity
programs.
• Program also tracks external
discussions around ES valuation as
part of company reporting.
• Involved in numerous external
initiatives such at UNEP FI Natural
Value Initiative, TEEB for Business
Report.

9. Rio Tinto Iron Ore: Owns 14 Mines, 3 ports and large
network of railways; and currently produces 220 MT/yr

10. Our Challenges in the Rapidly Expanding
World
Our production will increase from 220 to 353 MT /yr
Expansions in the next forty years:
• require accessing the ore located below water table;
• Involves dewatering and discharging large volumes of
groundwater and
• will increase the footprint by ‘an order of magnitude’
Lowering of water table could be more than 140 metres
Understanding and addressing the Traditional Owners concerns (their
spiritual and other connection with land and water)
Dewatering creates a larger drawdown and
• Managing large volumes of water could be a challenge

11. The Pilbara Rio Tinto-IUCN-CSIRO project:
case study
• Expansion of operations at Marandoo Mine – surplus water
management
• Rio Tinto committed to Net Positive Impact on biodiversity
• Four major options for managing surplus water:
1. Supply near by town (Tom Price) and support mining operations
2. Recharging depleted aquifers
3. Discharge into nearby ephemeral streams
4. Introduce irrigated hay at pastoral station
• All options come with financial and environmental costs and benefits,
including the impact of aquifer drawdown

12. How will the information be used?
Develop a set of recommendations for water resources and
ecosystem management at Marandoo, and more broadly in the
Pilbara
Develop a replicable analytical framework, including ecosystem
valuation, which can be incorporated into current and future
company processes for:
• Environmental & Social Impact Assessments;
• Biodiversity Offsetting (to achieve NPI);
• Financial Assessments connected with stakeholder engagements and
consultations, and corporate reporting,

13. Innovations in Managing Biodiversity and
Achieving a Net Positive Impact (NPI)
Rio Tinto Leases & Manages 1.5 Million
ha of pastoral land
Innovative approach is the use of surplus
water for the irrigated hay production:
Marginal country to be destocked
Redeployment of cattle allows the natural
re-generation of the ecosystem and
improving ecosystem services (ES):
• Previously disturbed by pastoral
activities, giving the potential for an
opportunity to develop an ‘offset
package’ based on the concept of
‘ecological restoration’.

14. Valuing Non Timber Forest products
• Detailed ecosystem Service valuation
study commencing in 2013 at QMM
site in Madagascar.
• Study will build upon original TGK work
and provide a valuation of NTFP used
by local communities.
• Information will be feed into
biodiversity offset program to ensure
local community needs and values are
managed correctly.
• Work is being lead by Environmental
Economics team at Fauna & Flora
International.