Biodiversity frameworks for the aluminium supply chain

30 October 2024

In this guest article, Hugo Rainey, Technical Director of Mining at The Biodiversity Consultancy and ASI Standards Committee member from 2018-2023, discusses biodiversity frameworks essential for the aluminum supply chain. With critical mineral demand rising, these frameworks help businesses manage biodiversity impacts, reduce risks, and align with evolving standards, enhancing both environmental and operational outcomes.

Biodiversity and business

Biodiversity is rapidly declining – the Living Planet Index 2024 shows over 70% loss of wildlife over 50 years. Business, and particularly the expanding critical minerals sector, is increasingly recognising the role it must play in addressing this crisis. The renewables sector will increase demand for critical minerals, such as aluminium and this will increase risks to biodiversity globally[1]. Early action by business will reduce risk and support progress towards better biodiversity outcomes, reducing uncertainty for investors, as well as alignment with regulation and enhance social licence to operate.

Biodiversity frameworks

Since 2022, the Global Biodiversity Framework (GBF) has set the corporate environmental agenda – nations agreed to halt nature loss by 2030 and achieve full recovery of nature by 2050 with specific disclosure targets for business. Building on the GBF, an alphabet soup of voluntary frameworks and standards has come in to being (e.g. Science-based Targets for Nature (SBTN), Taskforce on Nature-related Financial Disclosures (TNFD), Global Reporting Initiative (GRI), along with Aluminium Stewardship Initiative’s Performance Standard). These frameworks detail the steps companies can take to understand and reduce their impacts on biodiversity and contribute to nature recovery. For European actors, regulatory requirements have also increased with the implementation of the Corporate Sustainability Reporting Directive (CSRD).  In addition, the critical role played by the mining and metals industry to halt and reverse nature loss, has been highlighted by the publication of International Council on Mining & Metal’s (ICMM) Nature Position Statement earlier this year.

Adopting a framework

What are the major considerations for the aluminium sector when choosing a biodiversity framework for adoption? Considerations will need to include identification of company objectives as some frameworks may be more suitable than others. Business may need to apply regulatory or certification frameworks for specific markets. Businesses may prefer to use a framework that requires achieving biodiversity targets, such as a Net Gain; =they may also focus on disclosure of biodiversity risk to different audiences, such as lenders or public. Some frameworks such as CSRD, TNFD and SBTN apply across sectors, whereas others have a sectoral focus (e.g. ICMM, Towards Sustainable Mining or The Copper Mark) or have a site-focus (International Finance Corporation’s Performance Standard 6 (IFC PS6)).

Applying a framework

Each framework requires measurement of biodiversity, and actions to address impacts and dependencies across value chains, portfolios of assets or at individual sites. Biodiversity can appear complex, so analysis and communication of data can be a challenge. However, there is recognition that better metrics guidance will benefit business, for example, the Nature Positive Initiative is supporting consensus around metrics. Across frameworks, TNFD seeks to align reporting with other frameworks such as SBTN, GRI, GBF and CSRD. Helpfully, TNFD and IFC PS6 – which has become good international practice since 2012 – are potentially aligned for addressing site-based biodiversity risk. So, although these frameworks are new, many businesses, in particular in mining, will already have taken necessary biodiversity management actions and have required disclosure data. The next challenge for business is to collate data and build partnerships to operationalise the frameworks.

[1] Renewable energy production will exacerbate mining threats to biodiversity

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