186 mining/extractive projects should contribute to the revaluation of biodiversity and nature in their area of impact. By promoting these actions, local authorities and governments would demonstrate a genuine interest in promoting development and environmental and social responsibility. A strategic biodiversity management system would consist in combining the biological scientifical approach, with high standards for monitoring the evolution of the biodiversity around the project, and social innovation considering Biodiversity Actions Plans when identifying opportunities and preventing potential damage and engaging local communities. The result of this monitoring needs to be shared with the local institutions to be part of the territorial planning, providing critical information for decision making and looking forward to valuing the positive nature legacy. The disclosure of information is directly complementary to supporting TNFD to provide information related to the interdependence between business and nature, which is an increasing interest for investors and funding institutions. Based on empirical evidence from Kölbel & Lambillon (2023), the implementation of the PMB in the mining industry is expected to generate measurable financial optimization. Specifically, by aligning the PMB's KPIs with Sustainability-Linked Loan structures, the project could capture a margin reduction of between 5 and 15 basis points, which, on a USD 500 million loan, represents annual operating savings of up to USD 750,000 in debt service. Furthermore, the robustness of the biodiversity data acts as a derisking factor, reducing the likelihood of financial penalties (step-ups) for non-compliance with ESG targets. Our strong suggestion is that by using a adaptive monitoring system such as PMB reduces the probability of financial over cost, acting as insurance face potential interest rate volatility. Different regions might benefit from this triple view approach, involving local communities, investors and natural capital/biodiversity as a step forward from derisking. It would not only identify the characteristics of the biodiversity in the territory, but also it would support a comprehensive local engagement, from users (communities) to administrators (authorities) of the natural resources. Furthermore, the experience would increase the value of the territory and make it attractive to potential investments, cofounding from the private sector, multilaterals and others. Recognizing the value of biodiversity in the territory is part of a nature positive strategy, engaging with stakeholders gives the opportunity for planning (together) the sustainable use of resources around the prospectus project. In regions with more mature institutionality, such as Canada or Australia, biodiversity monitoring would contribute to policy decision making. In other countries, with a low degree of institutional maturity, it might contribute to this discussion and shape consciousness regarding responsible participation of the private sector, nascent investment and natural capital ventures.
RkJQdWJsaXNoZXIy MTM0Mzk2