147. SKARN Associates. (2023). Water Focus in Mexico’s Mining Law. https://www.skarnassociates.com/insights/water-focus-mexico-mining. 148. McKinsey & Company. (2021). Creating the zero-carbon mine. https://www.mckinsey.com/industries/metals-and-mining/our-insights/creating-the-zero-carbon-mine. 149. Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF). (2023). The impacts of climate change on the mining sector. https://www.iisd.org/system/files/2023-09/impacts-climate-change-mining-sector.pdf. 150. International Energy Agency (IEA). (2021). Average GHG emissions intensity for production of selected commodities. https://www.iea.org/data-and-statistics/charts/average-ghg-emissions-intensity-for-production-of-selected-commodities. 151. McKinsey & Company. (2021). Creating the zero-carbon mine. https://www.mckinsey.com/industries/metals-and-mining/ our-insights/creating-the-zero-carbon-mine. 152. Ibid. 153. Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF). (2023). The impacts of climate change on the mining sector. https://www.iisd.org/system/files/2023-09/impacts-climate-change-mining-sector.pdf. 154. International Energy Agency (IEA). (n.d.). Iron and Steel Technology Roadmap. https://www.iea.org/reports/iron-and-steel-technology-roadmap. 155. BHP . (2019). Metallurgical coal: Properties, facts, uses and production. https://www.bhp.com/-/media/documents/business/2019/191119_whatismetcoal.pdf. 156. International Energy Agency (IEA). (n.d.). International Shipping. https://www.iea.org/energy-system/transport/international-shipping. 157. Calculation based on 2021 data, taking total metals and minerals loaded in international maritime trade (iron ore = 1,517 million tons loaded, metals and minerals = 984 million tons loaded) as a share of total maritime trade (10,985 million tons loaded): United Nations (UN). (2022). Review of Maritime Transport: Navigating Stormy Waters. https://unctad.org/system/files/official-document/rmt2022_en.pdf. 158. International Council on Mining and Metals (ICMM). (n.d.). Climate Change. https://www.icmm.com/en-gb/our-work/environmental-resilience/climate-change. 159. Rio Tinto. (2023). Climate change. https://www.riotinto.com/sustainability/climate-change. 160. Minerals Council of Australia (MCA). (2022). Climate Action Plan: Progress Report. https://minerals.org.au/wp-content/uploads/2022/12/MCA-Climate-Action-Plan_Progress-Report-2022.pdf. 161. World Steel Association. (2023). Sustainability Indicators: 2023 report. https://worldsteel.org/steel-topics/sustainability/sustainability-indicators-2023-report/. 162. While “compensation” can be treated as synonymous with “offsetting”, as aligned with IUCN’s approach, in this report “compensation” is a more general term of which biodiversity offsets are just one subset. Compensation may achieve NNL or BNG (in which case it is an offset), but in other cases, compensation can involve reparation that falls short of achieving NNL (and is therefore not an offset). 163. International Finance Corporation (IFC). (2012). Performance Standard 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources. https://www.ifc.org/en/insights-reports/2012/ifc-performance-standard-6. 164. Cross-Sector Biodiversity Initiative (CSBI). (2015). Cross-sector Guide for Implementing the Mitigation Hierarchy. http://www.csbi.org.uk/our-work/mitigation-hierarchy-guide/. 165. The Nature Conservancy (TNC). (2015). Achieving Conservation and Development: 10 Principles for Applying the Mitigation Hierarchy. https://www.conservationgateway.org/Documents/TNCApplyingTheMitigationHierarchy.pdf. 166. United Nations Environment Programme (UNEP). (2012). Biodiversity offsets: voluntary and compliance regimes. https://files.ctctcdn.com/b3b328ed001/7b1aaa64-234c-4918-abb8-27a30c51ac03.pdf. 167. The steps of the mitigation hierarchy can be expressed differently in various policies, but the core steps remain the same. 168. International Union for Conservation of Nature (IUCN). (2023). Nature positive for business. https://portals.iucn.org/library/sites/library/files/documents/2023-023-En.pdf . 169. For all new operations and significant expansions, NNL or net gain should be measured against a pre-operation or pre- expansion baseline respectively. For existing operations and future acquisitions, this should align with an estimated pre- operation baseline where possible. Alternatively, for existing operations, this should be measured against a 2020 or earlier baseline, and for future acquisitions, the baseline should be the date of takeover or earlier: International Council on Mining and Metals (ICMM). (2024). Nature: Position Statement. https://nature.icmm.com/position-statement. 170. The Nature Conservancy (TNC). (2015). Achieving Conservation and Development: 10 Principles for Applying the Mitigation Hierarchy. https://www.conservationgateway.org/Documents/TNCApplyingTheMitigationHierarchy.pdf. 171. The Biodiversity Consultancy. (2016). Government policies on biodiversity offsets. https://www.thebiodiversityconsultancy.com/fileadmin/uploads/tbc/Documents/Resources/Government-policy-2.pdf. 172. International Union for Conservation of Nature (IUCN). (2016). Policy on Biodiversity Offsets. https://iucn.org/sites/default/files/2022-06/iucn_biodiversity_offsets_policy_jan_29_2016_0.pdf. 173. International Union for Conservation of Nature (IUCN). (2013). Guidelines for Applying Protected Area Management Categories. https://portals.iucn.org/library/sites/library/files/documents/PAG-021.pdf. Nature Positive: Role of the Mining and Metals Sector 66

Nature Positive Role of the Mining and Metals Sector