3.1 Transform operations across the mine life cyclePriority action 1 Avoid, then reduce, impacts of mining operations and restore across the mine life cycle in accordance with the mitigation hierarchy. Companies should follow the mitigation hierarchy sequentially at site-level, in a landscape context, taking into consideration direct, indirect and cumulative impacts. They should first avoid impacts, then reduce impacts, restore, and finally, compensate162 for unavoidable residual impacts.163,164,165,166,167 Mitigation efforts should align with a NNL or BNG goal for each project.168,169 Principles for applying the mitigation hierarchy BOX 5 The mitigation hierarchy is a four-step decision-making framework designed to support the mitigation of nature impacts. To improve the application of the mitigation hierarchy, The Nature Conservancy identified six principles to guide its application:170 –Mitigation hierarchy steps: The steps should be followed sequentially – avoid, reduce, restore and then compensate for impacts. –Landscape context: Apply the mitigation hierarchy in a landscape context, taking into consideration direct, indirect and cumulative impacts. –Goal: Mitigation policy goals at the national, regional and/or local level should ensure the mitigation hierarchy is applied to support conservation objectives and drive accountability for application. As of 2016, over 100 countries had or were developing national mitigation policies that require offsets or enable the use of offsets.171 –Limits to offsets:172 There are limits to what can be offset and impacts that cannot be offset should be avoided as this may be the only means to prevent irreplaceable loss. –Sustainable outcomes: Mitigation should support long-term, durable outcomes. –Stakeholder engagement practices: Mitigation should follow best practices for stakeholder engagement, guided by the following principles for meaningful and inclusive stakeholder engagement – inclusiveness, transparency, rights-based approaches, and science and traditional knowledge. Additional principles have also been established specific to the “compensate” step – see more guidance under the “Compensate for unavoidable residual impacts” sub-section of this priority action. Nature Positive: Role of the Mining and Metals Sector 32

Nature Positive Role of the Mining and Metals Sector