Nature Positive Role of the Mining and Metals Sector

UpstreamMidstream (direct operations)Downstream Land-use change and ecosystem disturbance Pollution Water abstraction Greenhouse gas emissions Pressure materiality rating (ENCORE): High Medium –Soil and sediment retention, and flood protection: Mass stabilization, erosion control and green infrastructure101 protects roads, camps and infrastructure leading to mines from landslides and other natural hazards, which can suspend operations, leading to missed production targets, reduced investor confidence and negative social impacts. –Global climate regulation: Mining operations depend on the regulation of temperature, precipitation and the hydrological regime, including the absence of extreme events such as heatwaves or floods, provided by nature through the long-term storage of carbon dioxide in soils, vegetable biomass and the oceans. Other sectors across the value chain are also highly dependent on these and other environmental assets and ecosystem services, in particular, upstream energy operations, transport and the downstream construction industry. According to the World Economic Forum’s report Nature Risk Rising, more than 90% of the gross value-added across mining and metals companies’ direct operations and supply chains is moderately dependent on nature.102 These dependencies can materialize as risks to businesses if not properly assessed and managed and if action is not taken to safeguard nature. This strengthens the business case for investing in protecting and restoring nature to build sustainable, responsible and resilient supply chains and ensure the long-term viability of business models. However, the mining and metals sector continues to impact nature, contributing to drivers of biodiversity loss such as land-use change and ecosystem disturbance, pollution, water abstraction and GHG emissions.103 Wherever possible, mining and metals companies should avoid, then reduce, these drivers of nature loss in their operations and value chains, alongside related negative social impacts on communities at and around project sites, to mitigate risks and unlock nature-related opportunities across the value chain. Top four drivers of nature loss in the value chain of the mining and metals sector TABLE 2 *Manually adjusted based on expert feedback. Note: See methodology in the Appendix. Conduct company-specific assessment of impacts and dependencies BOX 4 The analysis of impacts and dependencies presented in Chapter 2 is a sector-average analysis for companies in the mining and metals sector, but company-specific impacts and dependencies will vary according to their activities, supply chains and operational locations. Companies will need to conduct assessments to locate their interface with nature and evaluate their impacts and dependencies using company-specific operational and supply chain information. TNFD’s LEAP approach104 and metals and mining sector guidance,105 as well as the SBTN’s step 1 (assess)106 and step 2 (prioritize)107 are useful frameworks to guide companies through their own assessments. The full methodology and results of this sector-average assessment can be found in the Appendix. More than 90% of the gross value- added across mining and metals companies’ direct operations and supply chains is moderately dependent on nature. Nature Positive: Role of the Mining and Metals Sector 22