Handbook on Environmental Due Diligence in Mineral Supply Chains

Annex A. Glossary of environmental terms

 

Biodiversity Biodiversity means the variability among living organisms from all sources including, inter alia, terrestrial, marine and other aquatic ecosystems and the ecological complexes of which they are part; this includes diversity within species, between species and of ecosystems. Source: The Convention on Biological Diversity, Article 2. Use of Terms. https://www.cbd.int/convention/articles/?a=cbd-02

Critical Habitat Areas with high biodiversity value, including but not necessarily limited to: (i) habitat of significant importance to critically endangered, endangered species; (ii) habitat of significant importance to endemic and/or restricted range species; (iii) habitat supporting globally significant concentrations of migratory and/or congregatory species; (iv) highly threatened and/or unique ecosystems; and/or (v) areas associated with key evolutionary processes. Other recognized high biodiversity values might also support a critical habitat designation, based on case‑by-case evaluation by a specialist. Source: Adapted from IFC. 2012. Performance Standard 6, Para. 13 and GN55, GN56, 57.

Deep Sea Mining The process of retrieving mineral deposits from the deep sea – the area of the ocean below 200 m. Source: International Union for the Conservation of Nature (IUCN). 2020. Issues Brief.

Deforestation The conversion of forest to other land use independently, whether human-induced or not. Source: FAO (2020), Global Forest Resources Assessment 2020: Terms and Definitions. https://www.fao.org/3/I8661EN/i8661en.pdf

Ecosystem services The principal framework for expressing the ‘usefulness’ of biodiversity is through the concept of ecosystem services. It illustrates the link between, on one hand, the interactions of species with each other and with the physical environment; and on the other, the well-being of people, whether in terms of wealth, nutrition or security. The Millennium Ecosystem Assessment, published in 2005, divided ecosystem services into four categories: Provisioning services, or the supply of goods of direct benefit to people, and often with clear monetary value, such as timber from forests, medicinal plants, and fish from the oceans, rivers and lakes. Regulating services, the range of functions carried out by ecosystems which are often of great value but generally not given a monetary value in conventional markets. They include regulation of climate through the storing of carbon and control of local rainfall, the removal of pollutants by filtering the air and water, and protection from disasters such as landslides and coastal storms. Cultural services, not providing direct material benefits, but contributing to wider needs and desires of society, and therefore to people’s willingness to pay for conservation. They include the spiritual value attached to particular ecosystems such as sacred groves, and the aesthetic beauty of landscapes or coastal formations that attract tourists. Supporting services, not of direct benefit to people but essential to the functioning of ecosystems and therefore indirectly responsible for all other services. Examples are the formation of soils and the processes of plant growth. Source: Convention on Biological Diversity and United Nations Environment Program Factsheet on Ecosystem services https://www.cbd.int/undb/media/factsheets/undb-factsheet-ecoserv-en.pdf

Free, Prior and Informed Consent People are (i) ‘not coerced, pressured or intimidated in their choices of development’; (ii) ‘their consent is sought and freely given prior to authorisation of development activities’; (iii) they ‘have full information about the scope and impacts of the proposed development activities on their lands, resources and wellbeing’; and (iv) ‘their choice to give or withhold consent over developments affecting them is respected and upheld’ Source: UN Permanent Forum on Indigenous Issues (UNPFII, 2005:12).

Forest Land spanning more than 0.5 hectares with trees higher than 5 meters and a canopy cover of more than 10%, or trees able to reach these thresholds in situ. It does not include land that is predominantly under agricultural or urban land use. Source: FAO (2020), Global Forest Resources Assessment 2020: Terms and Definitions. https://www.fao.org/3/I8661EN/i8661en.pdf

Greenhouse Gases (GHG) Greenhouse gases are those gaseous constituents of the atmosphere, both natural and anthropogenic, that absorb and emit radiation at specific wavelengths within the spectrum of terrestrial radiation emitted by the earth’s surface, the atmosphere itself, and by clouds. This property causes the greenhouse effect. Water vapour (H2O), carbon dioxide (CO2), nitrous oxide (N2O), methane (CH4) and ozone (O3) are the primary greenhouse gases in the earth’s atmosphere. Moreover, there are a number of entirely human-made greenhouse gases in the atmosphere, such as the halocarbons and other chlorine‑ and bromine‑ containing substances, dealt with under the Montreal Protocol. Beside CO2, N2O and CH4, the Kyoto Protocol deals with the greenhouse gases sulphur hexafluoride (SF6), hydrocarbons (HFCs), nitrogen triflouride (NF3), and perfluorocarbons (PFCs) Source: Intergovernmental Panel on Climate Change (IPCC). 2014. Climate Change 2014: Mitigation of Climate Change. Contribution of Working Group III to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change.

High Conservation Value (HCV) Biological, ecological, social or cultural values considered outstandingly significant at the national, regional or global level. Source: UNEP WCMC Biodiversity A to Z.

Just transition A concept originally introduced in the UNFCCC Paris Agreement (2015) where a key Guiding principle of the Agreement is for countries to “take into account the imperatives of a just transition of the workforce and the creation of decent work and quality jobs in accordance with nationally defined development priorities.” The OECD Guidelines for Multinational Enterprises on Responsible Business Conduct note that carrying out environmental due diligence and managing adverse environmental impacts will often involve taking into account multiple environmental, social and developmental priorities. In this respect it is important for enterprises to assess and address social impacts in the context of their environmental management and due diligence activities and to take action to prevent and mitigate such adverse impacts both in their transition away from environmentally harmful practices, as well as towards greener industries or practices, such as the use of renewable energy. Source: OECD (2023), OECD Guidelines for Multinational Enterprises on Responsible Business Conduct, OECD Publishing, Paris, https://doi.org/10.1787/81f92357-en.

Key Biodiversity Area Sites contributing significantly to the global persistence of biodiversity, in terrestrial, freshwater and marine ecosystems. They represent the most important sites for biodiversity conservation worldwide and are identified nationally using globally standardised criteria and thresholds. Source: UNEP WCMC, modified from IUCN. 2016. Global Standard for the Identification of Key Biodiversity Areas.

Life Cycle Assessment (LCA) Compilation and evaluation of the inputs, outputs and the potential environmental impacts of a product or service throughout its life cycle. Source: Intergovernmental Panel on Climate Change (IPCC). 2018. Special Report on Global Warming of 1.5°C – SR15, modified from ISO, 2018: ISO 14044:2006.

Mitigation Hierarchy “The mitigation hierarchy is a set of prioritized steps to alleviate environmental (or social) harm as far as possible through avoidance, minimization and restoration of adverse impacts. Compensation/offsetting are only considered to address residual impacts after appropriate avoidance, minimization and restoration measures have been applied. The biodiversity mitigation hierarchy is as follows (but the steps can be applied for any environmental or social impacts): i. Avoidance: measures taken to avoid creating impacts from the outset, such as careful spatial or temporal placement of elements of infrastructure, in order to completely avoid impacts on certain components of biodiversity. This results in a change to a ‘business as usual’ approach. ii. Minimization: Measures taken to reduce the duration, intensity and/or extent of impacts that cannot be completely avoided, as far as is practically feasible. iii. Restoration: measures taken to assist the recovery of ecosystems that have been degraded, damaged or destroyed. Involves altering an area in such a way as to re‑establish an ecosystem’s composition, structure and function, usually bringing it back to its original (pre‑disturbance) state or to a healthy state close to the original. iv. Offset: Measurable conservation outcomes resulting from actions designed to compensate for significant residual adverse impacts on biodiversity arising from project development after appropriate prevention and mitigation actions have been taken. The goal of biodiversity offsets is no net loss or a net gain of biodiversity on the ground with respect to species composition, habitat structure, ecosystem function and people’s use and cultural values associated with biodiversity.” Source: Initiative for Responsible Mining Assurance (IRMA). 2018. Standard Glossary of Terms.

Nature‑based solutions Nature‑based solutions are measures that protect, sustainably manage or restore nature, with the goal of maintaining or enhancing ecosystem services to address a variety of social, environmental and economic challenges. Source: OECD (2020), Nature‑based solutions for adapting to water-related climate risks. Policy Perspectives. OECD Environment Policy Paper No. 21. OECD Publishing. Paris, https://doi.org/10.1787/2257873d-en.

Natural capital Nature is an asset or capital stock (i.e. natural capital), like produced (physical) and human capital. Natural capital provides goods and services that contribute directly or indirectly to a country’s economic output and human well-being. But it is much more than an economic good; nature also holds intrinsic value. Natural capital is the most important of all capital stocks, as it provides fundamental life‑support functions. It sets the ecological boundaries for socio‑economic systems. Source: OECD (2021), Biodiversity, Natural Capital and the Economy: A Policy Guide for Finance, Economic and Environment Ministers. Policy Perspectives. OECD Environment Policy Paper NO. 26. OECD Publishing. Paris. https://www.oecd-ilibrary.org/docserver/1a1ae114-en.pdf?expires=1693395607&id=id&accname=ocid84004878&checksum=43C12709219D3FDDEE2CA8FC7E142008.

Offsets Biodiversity Offsets Biodiversity offsets are measurable conservation outcomes that result from actions designed to compensate for significant, residual biodiversity loss from development projects. They are intended to be implemented only after reasonable steps have been taken to avoid and minimise biodiversity loss at a development site. Biodiversity offsets are based on the premise that impacts from development can be compensated for if sufficient habitat can be protected, enhanced or established elsewhere. Biodiversity offsets are economic instruments and are based on the polluter pays approach. They aim to internalise the external costs of biodiversity loss from development projects by imposing a cost on the activities that cause adverse impacts to biodiversity. Source: OECD (2016), Biodiversity Offsets: Effective Design and Implementation, Policy Highlights. OECD Publishing, Paris https://www.oecd.org/environment/resources/Policy-Highlights-Biodiversity-Offsets-web.pdf Carbon or GHG Offsets A carbon offset is a reduction in emissions of carbon dioxide or other greenhouse gases made in order to compensate for (“offset”) an emission made elsewhere. Source: https://www.ipcc.ch/2018/06/15/ipcc-meetings-go-carbon-neutral/#:~: text=A%20carbon%20offset%20is%20a,%E2%80%9D)%20an%20emission%20made%20elsewhere.

Protected Area “A clearly defined geographical space, recognized, dedicated and managed, through legal or other effective means, to achieve the long-term conservation of nature with associated ecosystem services and cultural values.” The definition is expanded by six “protected area management categories” covering strict nature reserve, wilderness area, national park, natural monument or feature, habitat / species management area, protected landscape or seascape. Source: Modified from Dudley (2008), Guidelines for Applying Protected Area Management Categories. International Union for the Conservation of Nature (IUCN).

Reclamation The process of making severely degraded land fit for cultivation or a state suitable for some human use. Source: Society for Ecological Restoration’s international standards.

Rehabilitation Measures taken to rehabilitate degraded ecosystems or cleared ecosystems following exposure to impacts that cannot be completely avoided and/ or minimised. Rehabilitation emphasizes the reparation of ecosystem processes, productivity and services. Rehabilitation cannot always restore the ecosystem to its pre‑existing condition, but it aims at re‑establishing species and communities of the ecosystem. Source: Modified from BBOP & UNEP. 2010. Mitigation Hierarchy. Business and Biodiversity Offsets Programme & United Nations Environment Programme, Washington DC, USA; BBOP. 2012. Glossary. Business and Biodiversity Offsets Programme, Washington DC, USA.

Restoration Re‑establishment of ecosystem structure and function to an image of its prior near-natural state or replication of a desired reference ecosystem. Source: International Council on Mining and Metals (ICMM). 2019. Integrated mine closure: Good practice guide (2nd ed.)

Scope 1, 2 and 3 emissions Emissions responsibility as defined by the GHG Protocol, a private sector initiative. ‘Scope 1’ indicates direct GHG emissions that are from sources owned or controlled by the reporting entity. ‘Scope 2’ indicates indirect GHG emissions associated with the production of electricity, heat, or steam purchased by the reporting entity. ‘Scope 3’ indicates all other indirect emissions, i.e. emissions associated with the extraction and production of purchased materials, fuels, and services, including transport in vehicles not owned or controlled by the reporting entity, outsourced activities, waste disposal, etc. Source: Intergovernmental Panel on Climate Change (IPCC). 2014. Climate Change 2014: Mitigation of Climate Change, modified from WBCSD and WRI, 2004.