On 19/20 March, two biodiversity, business and human rights events were organised by MCRB in Yangon: a multistakeholder consultation on the draft Briefing Paper, and a training session conducted by a number of international experts on biodiversity and environmental impact assessment (EIA) for around 70 representatives from companies, particularly EIA consultancies. Read more: http://www.myanmar-responsiblebusiness.org/news/reinforcing-connections.html

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The business of sustainabilityThe business of sustainability
© Copyright 2017 by ERM Worldwide
Group Limited and/or its affiliates
(“ERM”). All Rights Reserved. No part
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means, without prior written
permission of ERM
Biodiversity Assessment and the
Extractives Sector
MCRB Biodiversity Training
David Nicholson Technical Director - Biodiversity

2. The business of sustainability
ERM Myanmar
• ERM has been working in Myanmar
for over 25 years.
• Office in Yangon with 10 full time
staff.
• Strong experience in the O&G,
Power, Mining and Infrastructure
Sectors.
• Thorough understanding of local
legislation.
• Unrivalled experience in EIA / SIA,
baseline surveys, due diligence and
stakeholder engagement.
• Certified under the MONREC
Transitional Consultant Registration
to undertake ESIAs in Myanmar.
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3. The business of sustainability
ERM Project Experience - Highlights
• Working on four LNG-to-Power
Projects - Total / Siemens; PTT;
EMPower; Toyo Thai
• ESIAs for a variety of Power Sector
Projects – Hydropower, Coal, CCGT,
HFO and Wind
• Working with all majors for O&G
exploration – Shell, Total, PTTEP,
Chevron, Woodside, PDC etc
• Over 10 projects within International
Financing - JBIC, IFC, ADB, AIIB
• Supporting investments into three
Special Economic Zones - Thilawa;
Dawei; Kyaukphyu
• Projects in Mining, Agribusiness,
Manufacturing, Infrastructure,
Tourism, and Safety
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4. The business of sustainability
Introduction and Agenda
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1. Introduction
2. Overview of IFC PS6
3. Biodiversity and the Extractives Sector
4. Defining Residual Impacts
5. Example Mitigations
6. Biodiversity Offsetting
7. Questions and Answers

5. The business of sustainability
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6. The business of sustainability
Biodiversity Action
Plan:
IFC PS6: Key Concepts
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Biodiversity&EcosystemServicesBaseline
CR, EN, endemic,
migratory or
congregatory species
KBAs & Legally
Protected Areas
Habitat
Classifications:
• Natural Habitat
• Modified Habitat
• Critical Habitat
Invasive Species
Mitigation
Hierarchy:
Avoid
Mitigate
Offset
No net loss (NH)
Net gain (CH)
Supply Chain
Management
Offset
Management Plan
On-site
Biodiversity
Management Plan
Biodiversity &
Ecosystem
Services Strategy
Ecosystem Services
Screening/Scoping Expert&StakeholderConsultation

7. The business of sustainability
Biodiversity Impacts of the Extractives Sector
Impacts from the extractives sector can include:
- Large spatial habitat loss, often in natural/critical habitats
- Impacts to unique biodiversity and potential for new-to-
science/endemic species due to underlying geology
- Barrier creation, edge effects and fragmentation
- Induced clearing due to opening up new areas
- Impacts to ecosystem services (water, fisheries etc.)
- Induced hunting and poaching
- Aquatic ecosystem impacts from water use, discharges
and contamination
- Introduction of invasive species
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8. The business of sustainability
Project Example: Geothermal Power, Indonesia
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Impacts:
• Next to protected
area/WHA
• Induced clearing
• Edge effects,
fragmentation
• Induced hunting and
poaching
• Aquatic impacts
• Ecosystem Service
impacts

9. The business of sustainability
Defining Residual Impacts
Residual impacts to biodiversity values require:
- Defined metric to determine impacts to habitat types
and condition (Habitat Hectares; Averted Loss Metric)
- Species impacts defined by population changes (or
habitat as a surrogate)
- No-net-loss/Net gain calculations require step-by-step
assessment of losses and gains (“balance sheet”)
- Any residual impacts under IFC PS6 require to be
offset
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10. The business of sustainability
Project Example
Site Species Common
Name
Habitat
Loss
Key Residual
Impact
Offset Description Offset Management
Action Summary
Monitoring KPI
Site Concession
Net
Gain
Manis pentadactyla Chinese
Pangolin
32.59ha Habitat loss
Hunting and
poaching
• Management of at
least 127ha of
forested habitat
required.
• Population Census
• Community
Engagement
• Patrols and
Enforcement
• Threat Reduction
Campaigns
• Wildlife
Management
Actions
• Annual population
estimation
• Implementation of
management actions
• Identification of threats
and additional
management actions
Trachypithecus
phayrei spp.
shanicus
Shan
State
Langur
32.59ha Habitat loss
Diplommatina sp. 3 - 235.58ha Habitat loss • Management of at
least 1420ha of
limestone habitat
(or addition of
equivalent habitat).
• Habitat protection
and monitoring
• Annual fauna
monitoring report
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• Balance sheet approach used to define residual impacts
and achieve no-net-loss/net gain
• Supported by comprehensive assessment and
management planning framework

11. The business of sustainability
Key Mitigations for Extractives Sector
Key mitigations can include:
• Community engagement and empowerment
• Community livelihood support
• Government capacity building
• Access controls
• Anti-illegal logging and hunting/poaching measures
• On-site rehabilitation/habitat restoration
• Invasive species control
• Ecosystem service replacement
• Translocation of flora/fauna (last resort)
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12. The business of sustainability
Project Example: Community Engagement
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Community engagement objectives:
• Raising awareness
• Package biodiversity management
into livelihood restoration/
alternatives
• Manage illegal activities
• Empower government
• Provide a forum for communities
to participate
• Update local communities on
progress

13. The business of sustainability
Project Example: Illegal Activity Management
Approach should include:
- Identify reasons behind
illegal activity
- Work collaboratively with
government
- Targeted community
programs
- Conduct enforcement with
Government as a last
resort
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14. The business of sustainability
Biodiversity Offsetting
Biodiversity offset consideration:
• Offset goals (no-net-loss/net gain)
• Like for like rule
• Additionality
• Determine offset size (using offset metric)
• Ownership of the offset – private, third party or public?
• Understanding legal requirements
• Understanding ongoing financial obligations
• Efficient management, monitoring and validation
• Community and stakeholder engagement
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15. The business of sustainability
Project Example: STC Group Myanmar
Offset design:
• 1420ha of limestone habitat &
127ha of forest
• Offset size 33,400ha
• Species match (e.g. limestone
dependent fauna)
• 25 year management period
• Management committee
• Management actions
• Financial model
• Tender for service provider
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16. The business of sustainability
Questions & Answers
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