CBBP - Case Studies by IBNB Contato

Canadian Business and Biodiversity Program Canadian Business and Biodiversity Case Studies Compendium, Volume 1, 2010

Acknowledgements The Canadian Business and Biodiversity Program would like to thank the following: 1.

The Canadian Business and Biodiversity Program Steering Committee members for their valuable input into the making of this document and the Program in general.

Deloitte for the design and layout of the document.

The businesses highlighted in the Case Study document as without their conservation-minded activities and their willingness to participate this document would not have been possible.

www.businessbiodiversity.ca

Canadian Business and Biodiversity Program Care for the environment is consistently ranked as one of the top priorities of Canadians in public opinion polls. Canada’s economy is heavily based on its natural resources and Canadians, including Canadian businesses, recognize the importance of considering not only economic but environmental, cultural and social aspects in future decisions to ensure development is sustainable. However, Canada, along with most nations, is facing varied and complex issues in regards to biodiversity conservation. Today, environmental, social and related economic consequences, together with increasing scrutiny from investors and other stakeholders, are motivating businesses to adopt sustainability strategies and to disclose their performance on environmental and social aspects. Biodiversity policy is becoming a key pillar of companies’ corporate responsibility strategies, often involving non-business partnerships, codes of practice, changing land-use practices and other significant new steps in corporate operations, activities and supply and distribution chains. There are now many Canadian business success stories and many lessons have been learned about how to do it well. The current economic recovery presents an opportunity to reset the conservation bar to strengthen future development prospects rather than to impede them. The Canadian Business and Biodiversity Program was created in 2008 as a governmentbusiness-NGO-academia partnership to showcase best practices in conservation, to catalogue and share lessons learned, and to help Canadian businesses integrate biodiversity conservation in their strategies and operations. As part of Canada’s contribution to the International Year for Biodiversity, this document provides a look of some best-practice examples on biodiversity conservation from Canadian businesses. This case studies document, along with a forthcoming Biodiversity Conservation Guide for Canadian Business, is intended to assist businesses in their biodiversity conservation planning. We hope this initiative will encourage similar conservation-related projects and we welcome new business involvement with us as well as any comments or feedback you may have.

Johanne Gélinas Chair, Canadian Business and Biodiversity Program Steering Committee

Contents Introduction

Status of biodiversity

Business case for biodiversity

Incorporating biodiversity conservation into the corporate responsibility agenda

Canadian Business and Biodiversity case studies

Lessons learned

The Canadian Business and Biodiversity Program initiatives

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Introduction The Canadian Business and Biodiversity Program (CBBP) is a government-business-NGO-academia partnership that was initiated from recommendations by government and industry leaders who participated in a Business and Biodiversity Planning Conference in Montreal on June 8, 2008. The need for this conference was stimulated by recognition of the importance of business leadership in the conservation of Canada’s biodiversity. The role of the CBBP is to assist Canadian businesses in conserving biodiversity in Canada, and globally, by encouraging good environmental stewardship practices based on sound science, by sharing best practices and lessons learned, and by showcasing successful results. The development of biodiversity-friendly businesses depends on a conducive enabling environment and includes the framework of laws, regulations, taxes, subsidies, social norms and expectations and voluntary agreements within which businesses operate. For these reasons, governments, NGOs and academia are engaged in the CBBP as advisers and supporters.

“The first Biodiversity Conservation Plan developed by an operation may not be perfect, but it enables the business to identify and address remaining knowledge gaps, potential impacts from its industrial activities and any local or regional opportunities for biodiversity conservation. Moreover, making it publicly available sets the stage for feedback from and possibly collaboration with local stakeholders involved in biodiversity conservation.” Robert Prairie, Director – Ecological Effects Assessment, Xstrata Canada.

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Status of biodiversity The Convention on Biological Diversity (CBD) entered into force on 29 December 1993. The objectives of this Convention are the conservation of biological diversity, the sustainable use of its components and the fair and equitable sharing of the benefits arising out of the utilization of genetic resources. Under the terms of the Convention, biodiversity is defined as follows: Biological diversity means the variability among living organisms from all sources including, inter alia, terrestrial, marine and other aquatic ecosystems and the ecological complexes of which they are part; this includes diversity within species, between species and of ecosystems. In simpler terms, biodiversity means the variety of life on earth. Biodiversity is being negatively impacted by natural disturbances, pollution, land use changes and fragmentation, invasive species and climate change. Human impacts, including climate change, are creating complex and cumulative problems that many of the current management practices were not designed to handle.

Globally In May, 2010, a biodiversity report by the Convention on Biological Diversity and the UN Environment Programme concluded that unless radical and creative action is taken quickly to conserve the variety of life on earth, natural systems that support lives and livelihoods are at risk of collapsing. The Millennium Ecosystem Assessment (MEA) states that approximately 60% of the examined ecosystem services of the planet are now degraded or being used unsustainably. The MEA also identified declines in the provision of some ecosystem services including provision of fresh water, marine fishery production, natural hazard regulation, pollination, capacity of agricultural ecosystems to provide pest control and number and quality of places of spiritual value. Findings of The Economics of Ecosystems and Biodiversity report (TEEB) show that we are still struggling to find the “value of nature.” Nature is the source of much value to us every day and yet it mostly bypasses markets, escapes prices and defies valuation. This is demonstrated through activities such as deforestation, declines in commonly harvested fish species, fragmented habitats and species at risk. It is estimated that the global demand for resources now exceeds the biological capacity of the earth to renew these resources by some 20%.

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Nationally Even though Canada supports a broadly diverse group of ecosystems that includes forests, tundra, grasslands, freshwater and oceans, it is experiencing biodiversity issues. Terrestrial habitats are declining in quality and becoming fragmented due to urbanization and industrialization. Aquatic systems are impacted by pollution, invasive species and dewatering. In the past 500 years at least 13 of our plant and animal species have become extinct and an additional 23 are listed as extirpated – no longer found in Canada. New animals and plants are added to the list of those threatened by extinction every year and as of May, 2010, a report by the Committee on the Status of Endangered Wildlife in Canada states that 602 species are now considered at risk in Canada. In 2000, there were 12 species extinct, 15 species extirpated and 353 species considered at risk. A federal–provincial–territorial steering committee is coordinating the development of the Ecosystems Status and Trends Report which will be the first of its kind in Canada and will provide a source of information, assist in creating a network among experts and identify gaps in need of priority action.

“The most successful and rewarding conservation initiatives are those that are created and implemented through partnerships at the local level. Recognition of these projects is critical if they are to become the standard way of doing business and “develop a life of their own”.” Judy Shaw, Government Affairs Director, Syngenta Canada.

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Business case for biodiversity Benefits derived from ecosystems are called ecosystem services. Plants are the foundation of an ecosystem. By taking carbon from the air and energy from the sun, they make their own food and produce the oxygen we breathe. They also serve as food for plant-eating animals that, in turn, support meat eating animals. Finally, decomposers, such as fungi and bacteria, recycle the nutrients and energy contained in plant debris and dead animals so that the nutrients and energy can be reused by other living organisms. Protecting biodiversity is an investment in our future. Plants, animals and microorganisms provide food, medicines, fuel, building materials, industrial products and tourism and recreation opportunities as well as social, cultural and spiritual benefits. Many businesses are directly and essentially dependent upon healthy biological resources to run their operations. Some examples include forestry; recreation; tourism; hunting, fishing and trekking outfitters; agriculture; horticulture; commercial fishing; indigenous livelihoods and artisanal products. Others are indirectly dependent on the ecosystem services provided by biological diversity. All human activity is fundamentally dependent on the planet’s biological diversity and all human activity influences biodiversity, positively or negatively. The consequences of biodiversity loss and ecosystem disruption are often harshest for rural and indigenous people who depend more immediately upon local ecosystem services for their livelihoods and who are often the least able to access substitutes when these become degraded. Regardless of location or products, businesses are dependent on consumers and consumers are growing more aware of and concerned about ecological deterioration. They are making statements with their purchasing decisions and those statements are more and more reflective of their environmental concerns.

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Ecosystem services Supporting Nutrient cycling • Soil formation • Primary production Provisioning

Regulating

Cultural

Food

Climate regulation

Aesthetic

Fresh water

Flood regulation

Spiritual

Wood and fiber

Disease regulation

Educational

Fuel

Water and air purification

Recreational

Life on Earth – Biodiversity Source: Millenium Ecosystem Assessment

Human activities are rapidly degrading or diminishing many of these services that businesses depend on. Ecosystem degradation can present a number of “risks” to business such as: • higher costs of natural resources; • fines, regulatory fees and potential lawsuits; • loss of corporate reputation; • lower social acceptance of activities; • loss of customers; • higher costs of corporate loans. Along with the risks related to degraded ecosystem services come opportunities that may include: • new technologies that allows for more efficient use of natural resources; • government incentives to protect ecosystem services; • branding of products as environmentally sustainable; • launching new products, services, or business operations that have a reduced environmental impact; • enhanced creativity and innovation through biomimicry; • more favourable lending terms to companies that improve environmental resource use efficiency or restore degraded systems.

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Incorporating biodiversity conservation into the corporate responsibility agenda Businesses can impact on ecosystem services by affecting the quantity or quality of the service. Businesses can also depend on ecosystem services that function as operational input or that influence environmental conditions to the extent it allows the business to meet its expected corporate performance. Biodiversity friendly practices need to be mainstreamed into business policies and practices, but this can present unique challenges across the various business sectors, for businesses of any size. In meeting these challenges, issues such as the following need to be addressed: • the variety of stakeholders and their concerns and interests; • a lack of knowledge and technical expertise on the impacts of specific activities and effective means of minimizing these impacts, both environmentally and socially; • the complexity of biodiversity mechanisms and interaction and the difficulty to predict interrelated consequences of specific impacts on a global ecosystem; • a lack of simple metrics and timelines for measuring progress; • a lack of a variety of environmentally friendly ways for businesses to meet commitments; • the promotion of environmentally friendly practices and the ensuing results; • long-term economic factors and models that value biodiversity conservation in the business model to promote management systems or practices that deliver biodiversity benefits. Business can have direct impacts on biodiversity and ecosystem services as well as indirect impacts. Direct impacts can include the actual footprint of the operation, direct intake and consumption of raw materials and disposal of waste by-products of the operation. These impacts can be on-site as well as off-site. Indirect impacts can be the result of the intake and consumption related to supply chain processes as well as the impacts of products and services throughout their lifecycles.

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Integrating biodiversity in business operations Biodiversity loss disrupts ecosystem functions, making ecosystems more vulnerable to disturbances, less resilient, and less able to supply needed services. When an ecosystem is less able to provide its services, biodiversity dependent on these services, as well as people and business, will experience a negative impact, with the severity relative to the dependence on the service. Biodiversity conservation, including the sustainable use of resources, needs to be embedded in businesses as one of the key aspects of their Corporate Social Responsibility strategy. To minimize impacts on biodiversity and ecosystem services, business needs to develop and implement an effective biodiversity conservation plan or strategy that is implemented through an effective environmental management system. A biodiversity conservation plan or strategy should include the following components: • Assessment: a business needs to determine and assess the direct and indirect impacts and dependence on biodiversity resulting from their actions or operations, based on a risk management approach. This also needs to include those related to the supply chain operation and to the products and services lifecycles. • Objectives and targets on priority issues: key biodiversity issues based on risk assessment, to both biodiversity and the business, need to be identified and priorities set. A biodiversity strategy that includes objectives and realistic and achievable targets on priority biodiversity issues needs to be established.

“Canada is proposing a Business and Biodiversity Leadership Declaration which will enable Canadian businesses and their associations to adopt a practical, meaningful, cost-effective and auditable process for integrating biodiversity issues into business operations.” Steve Hounsell, Senior Adviser, Corporate Sustainable Development Group, Ontario Power Generation.

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• Action Plan: a Management Plan that identifies appropriate actions and a delivery mechanism for these actions needs to be developed. This plan should address the following issues: –– Avoid and minimize: prevention and reduction of direct and indirect impacts on biodiversity,

including site selection, procurement of raw materials, transportation of products, supply chain and product life cycle. –– Restore: rehabilitation of sites and planning for the implementation of closure of activities. –– Mitigation and compensation: impacts cannot always be avoided or minimized. When this occurs,

offsite opportunities such as conservation projects elsewhere, payment for ecosystem services or biodiversity offsets along with funding mechanisms need to be identified.

The implementation of an action plan is most likely to involve partnerships with external stakeholders (communities, scientists, NGOs, etc.), based on know-how/expertise or on common interests. • Monitoring: biodiversity indicators need to be determined and integrated into the Management system with monitoring protocols to track performance on achieving objectives and targets on priority issues and how this information will be reported. • Reporting: communicating company biodiversity commitments, target initiatives and performances to staff, external stakeholders and the general public is essential. This can be accomplished internally by way of staff newsletters or externally through a website or in an existing report process such as a sustainability report. Information can also be relayed to consumers through the media as well as product advertising and labeling. • Plan review: Management Plans need to be reviewed and updated on a regular basis. These reviews may result in revisions to the Management Plan and/or monitoring protocols and/or targets and performance indicators, based on existing progress or on the evolution of knowledge on specific biodiversity issues. As targets are reached and biodiversity knowledge evolves, new targets can be introduced based on resources available. To achieve these objectives requires internal governance on biodiversity issues and the development of a business biodiversity conservation toolkit that contains methodologies and an assortment of “best practices” that can be deployed throughout the business to accomplish its biodiversity objectives. This may be applied in a phased approach to address issues across a number of sites or multiple issues. Partnerships with environmental groups and organizations, governments, biodiversity experts and institutions are also ways of developing and implementing innovative solutions to complex issues.

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“The challenge of balancing sustainable economic growth with a sustainable environment requires cooperation from all levels of government, industry, community organizations and all Canadians.” The Right Honourable Stephen Harper, Prime Minister of Canada, Biodiversity is Our Life, Gincana 7, 2010.

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Canadian Business and Biodiversity case studies Background The Canadian Business and Biodiversity Case Studies highlight Canadian business involvement in biodiversity conservation through business best practice across a range of sectors. They showcase examples of Canadian leadership in biodiversity conservation. Based upon information provided initially by the companies, they have been drafted by the Canadian Business & Biodiversity Secretariat with input from corporate officials and, where required, discussions with others who may have been involved or affected by the initiative. Each case study outlines the business initiative, the reason for undertaking it and existing or foreseen benefits both for the company and for biodiversity. The case studies will be used to encourage other businesses to be involved in biodiversity conservations by: • Demonstrating the business case for biodiversity conservation. • Demonstrating Canadian business leadership in biodiversity conservation across all business sectors. • Sharing biodiversity conservation ideas and lessons among all Canadian business sectors. • Operationalizing biodiversity conservation and creating ‘doable’ commitments. • Building conservation capacity of small and medium enterprises. To have been considered for a case study, the business had to meet the following criteria: • be a Canadian company or have operations in Canada; or • be an association that represents a specific Canadian business sector and is actively involved in helping its members deal with environmental considerations and issues; and • had an active program/project that is having or is intended to have a positive impact on biodiversity. The program/project need not be ‘current’ except in the sense that its beneficial results remain visible and relevant.

Overview Currently 17 businesses representing 9 business sectors have participated in this first compendium of case studies. The following table provides a breakdown of the different types of biodiversity initiatives by business sector. Many of these businesses have also developed other initiatives in biodiversity conservation and individual case studies may include other types of initiatives but the table references the main characteristics of the case study. This table is intended to orientate the reader and not present an exhaustive list of the biodiversity initiatives of the various businesses presented in this document.

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Type of case study Agriculture Canadian Cattlemen’s Association: The Environmental Stewardship Award

Outreach and education

Syngenta Canada: Atlantic Canada Best Management Practices Program

Habitat conservation

Construction materials Holcim (Canada) Inc.: Biodiversity conservation through quarry rehabilitation

Site rehabilitation

Education Granby Zoo: In Situ conservation of endangered species: Recovery of the Spiny Softshell Turtle in Quebec

Species rehabilitation

Electric utilities Hydro-Québec: Conserving biodiversity along distribution lines

Habitat conservation

Ontario Power Generation: Ontario Power Generation biodiversity policy

Management and policy

Food and beverage Nestlé Waters Canada: Biodiversity monitoring

Management and policy

Household and personal care products L’Oréal: Responsible sourcing of argan oil

Supply chain

Procter and Gamble: Everyday Wildlife Champions

Species rehabilitation

Metals and mining Alcoa: Ecosystem services review of an aluminum smelter in a biosphere reserve

Management and policy

Rio Tinto Alcan: Land use stewardship standard implementation in facilities worldwide

Management and policy

Vale Inco: The regreening of Sudbury and the 2009 Biodiversity Action Plan for Greater Sudbury

Site rehabilitation

Xstrata Canada: The biodiversity challenge at Xstrata Canada Operations

Management and policy

Oil and gas Shell Canada: Southwest Alberta Montane research program

Research

Suncor Energy: Oiled seabird rehabilitation program

Species rehabilitation

Syncrude Canada: Rehabilitated sites

Site rehabilitation

Paper and forest products Weyerhaeuser: Earthcover, waterbird and water chemistry inventory for Weyerhaeuser Alberta Forest Management Areas

Page

Research

Canadian Business and Biodiversity Program – 2010 Corporate Case Studies 17

Industry: Agriculture Duration: 1996 - ongoing Location: National Case study type: Outreach and education

Canadian Cattlemen’s Association

CCA Environmental Stewardship Award The Canadian Cattlemen’s Association (CCA) was established in 1932 and acts as the national “voice” of Canada’s 86,000 beef producers. The CCA is a non-profit federation of eight provincial member associations. The CCA board of directors consists of 27 producers representing eight provinces. It carries out day-to-day business in support of the industry and provides the leadership and unity necessary to for the beef industry to speak as one voice. The beef industry is the largest source of farm cash receipts in Canada. In 2008, the sale of cattle and calves totalled $6.59 billion or just over 14% of total cash receipts (including crops). Canada’s beef industry contributes approximately $25 billion to the Canadian economy annually.

Beef industry’s perspective on biodiversity Potential impacts of the Beef cattle industry on biodiversity Cattle grazing can have impacts on both terrestrial and aquatic biodiversity. While controlled grazing and related land management practices can have positive regenerative effects on grasslands, overgrazing can deplete plant cover and cause erosion. It can also cause a decrease in the amount of native plant species and increase less favoured ones. Uncontrolled access to wetlands and water courses can cause siltation and nutrient and bacterial contamination from animal manure.

Canadian Cattlemen’s Association biodiversity conservation role Canadian cattle producers own and manage about 30% of Canada’s agricultural land as grass pasture. Natural pasture covers about 15.5 million hectares (22.8%) and tame seeded pasture makes up over 5.5 million hectares (8.4%). The Canadian Cattlemen’s Association (CCA) role as an industry leader on environmental matters is becoming increasingly important. This is due, in part, to emerging understanding of the nature and scale of environmental issues and opportunities for the industry. The family owned farms and ranches that make up the Canadian cattle industry are relatively small businesses. On their behalf the CCA sorts though the layers of issues to encourage the development of policy, programs and research to minimize the industry’s environmental footprint while maintaining economic viability. In 2008, the CCA conducted an assessment of the social and environmental risks and opportunities facing the Canadian cattle industry. From that assessment, a comprehensive and adaptive environmental strategy is being developed. One of the deliverables of this work will 18 Canadian Business and Biodiversity Program – 2010 Corporate Case Studies

be environmental objectives which will help formulate policies that translate into action plans. There is an Environment Committee within CCA that deals with environmental issues related to the beef cattle industry. It encourages the development and implementation of environmentally and economically sustainable production practices. It also has a role in informing cattle producers and the public on environmental programs and initiatives that use effective resource-management strategies. Cattle can co-exist with native plants and animals but producers need to be aware of the needs of the species, especially species at risk that populate their land. The CCA became a member of the Species at Risk Advisory Committee, reporting to the federal environment minister as an opportunity to contribute to implementing the Act effectively and efficiently. As recovery strategies and action plans are developed, land owner conservation is a critical component of the protection of plant and animal species at risk. Biodiversity and habitat conservation is a major priority for the CCA. The CCA and its provincial associations partner in research in areas such as: • wildlife – cattle interaction; • grazing and grass/forage management; • manure management; • water quality; • insects for biological control of pasture weeds. Grazing is an important element in a balanced and sustainable prairie grassland ecosystem. Before cattle, bison grazed the Prairies and parts of the aspen parkland. Sustainable grazing practices utilize forages and legumes helping maintain natural grassland plant species succession as well as decreasing soil erosion, improving soil fertility and assisting in pest management. Eliminating grazing would lead to significant

habitat changes and the loss or decrease of many prairie plant and animal species and communities that are dependent on it. The CCA has partnered with Agriculture and Agri-Food Canada’s under the“Green Cover Canada” program to deliver the national Sustainable Grazing Mentorship Program. The program matches experienced cattle grazers with producers interested in expanding their grazing knowledge and other resource management skills. CCA is interested in encouraging the development of programs and strategies to help improve grazing management which also addresses population declines in grassland migratory birds. The CCA joined the Eastern Loggerhead Shrike Recovery Team to assist in the creation of programs to ensure the shrike’s survival. Cattle producers operating in the birds’ range are encouraged to plant trees and shrubs at the edges of pastures for perching and nesting sites as well as maintain existing pastureland where the birds like to hunt. Grazing is important to maintaining habitat for many grassland birds in addition to the shrike. A variety in the structure of the grass/ forage/shrub/tree community supports a variety in bird and other wildlife species. Well managed cattle grazing provides that heterogeneity. Bird populations also play a very important role in controlling insect populations that can have a negative impact on the quality and quantity of pasture grassesand so the economic viability of the operation.

Through the use of management practices such as rotational grazing, they maintain biodiversity, a variety of wildlife habitats and prevent erosion. Practices such as these protect both the health of the cattle and the environment by protecting water sources and working towards the maintenance of a sustainable agro-ecosystem. Management practices that protect the environment and the health and well-being of cattle are also generally economically sound.

Description The Environmental Stewardship Award (TESA) is presented by the CCA each year to a cattle producer who goes beyond standard industry conservation practices, setting a positive example for fellow producers and the general public. Award guidelines are sufficiently broad to include cow-calf, and intensive livestock operations. The award is intended to recognize innovative methods and approaches to environmentally and economically sustainable cattle production. The goals of TESA are: • recognize environmentally and economically sustainable land management practices within the cattle industry; • promote environmental stewardship; • develop environmental citizenship; • encourage integrated resource management planning.

Canadian cattle producers understand the importance of biodiversity and implement practices that maintain and improve ecological systems. Investments in science and technology is providing solar and wind powered electric fencing that helps producers control cattle access to wetland and riparian areas to maintain water quality and habitat. Good management practices such as managed rotational grazing, riparian and nutrient management support the long term sustainability of pasture and range land.

CCA Environmental Stewardship Award Rationale As stewards of a vast portion of the Canadian landscape, Canada’s cattle producers play a significant role in environmental enhancement and protection. They continuously work to improve existing stewardship conservation practices to create a sustainable future for agriculture. Many producers are third and fourth generation families who have built up extensive knowledge about good management of the many different and complex range and pasture ecosystems they utilize. It is often said that good grass management is both an art and a science.

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Canadian Cattlemen’s Association CCA Environmental Stewardship Award

The results of the farm/ranch management planning will be examined against the TESA goals. The accomplishments need to be achieved in a manner which is economically sustainable and at the same time meet environmental objectives. The following are taken into consideration in nominee selection: • short and long term goals; • implementation of programs; • accomplishments and how they have impacted sustainability. Additional suggested criteria for award winner: • leadership abilities as based on community and organizational involvement; • ability to address the issues; • cooperation with other groups; • economic sustainability – repeatability and doability. The award process begins at the provincial level. Producers receive provincial recognition for their outstanding contributions and these recipients move forward as nominees for national recognition from the CCA. While the award is only presented to one recipient each year, it recognizes that many producers across Canada are undertaking important and innovative environmental initiatives. The national TESA recipient is announced during the CCA’s Annual Convention each August. Each of the national nominees exemplifies significant innovation and attention to a wide range of environmental management aspects in their farm operation. Such innovations extend beneficially to areas far beyond their land – including water, biodiversity, air and human health. Over the years the award has been given out for merit in the following categories: • Range management: good range management, including rotational grazing, timing and intensity ensures the maintenance of natural ecosystems as well as the quality of the range. • Watering: more widely available watering sites, water troughs and controlled access protect habitat and biodiversity as well as water quality. • Riparian management: fencing programs protect sensitive areas from trampling as well as keep cattle out of the water which helps decrease nutrient loading and destruction of aquatic and wetland habitats. • Feedlot management: managing nutrient and bacteria runoff. • Land conversion: maintaining grazing lands and not converting to other uses. • Crop rotation: crop rotation is very important for maintaining soil health and a diversity of habitats.

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• Manure management: storage and use timing based on soil testing results and crop needs. • Conservation: habitat conservation, restoration and creation. • Education: demonstration and communication. The 2008 TESA winner was Saskatchewan’s Campbell family of the B – C Ranch, Inc., a three generations working family operation. The family’s significant efforts have contributed to long-term sustainability of land and water resources on-farm and in the area. The B-C Ranch is a 4,500 acre operation along the Beaver River established in 1948 by Bruce and Clare Campbell. Throughout the generations a holistic approach to ranching has ensured all decisions are socially, environmentally and financially sound and implemented practices best-served the operation’s domestic and wildlife inhabitants. The Campbell’s work on the Ducks Unlimited Canada’s Woolard Project provided a system of water control gates along the Beaver River that ensures that adjacent wetlands maintain adequate water levels and minimizes flooding. On-farm practices to maintain and enrich grazing lands are key in reducing greenhouse gas emissions from cattle and reducing fossil fuel use were also implemented. The 2009 TESA winner is the Madley family’s Canyon Ranch, Alexis Creek, British Columbia. The Canyon Ranch is a fifth generation family ranch located in the Chilcotin River Valley. The ranch is situated at the confluence of Alexis Creek and the Chilcotin River, both of which are a very important for waterfowl and fish habitat. The Chilcotin River is known for producing spring and sockeye salmon, steelhead, rainbow and bull trout and is an important staging area for Canada geese. The Madley family is recognized for their outstanding commitment to water quality, habitat restoration, riparian management and range and nutrient management. Extensive fencing maintains and protects riparian areas. Installation of water troughs and exclusion fencing on Alexis Creek protects riparian breeding habitat for curlew and other upland bird species. Holding pens are set back from the creek to establish a buffer zone that protects it from nutrient and bacterial runoff. Overwintering herd rotation is used as a management tool to naturally return nutrients to the soil in an environmentally conscious manner. Canyon Ranch exemplifies excellent riparian management both on the home place and on provincially owned Crown range leased by the Ranch. The Madleys have incorporated riparian fencing to protect river banks as part of their environmental farm plan and the implementation of benificial management practices. Side channels and groundwater springs were fenced to protect habitat for salmon fingerlings. The British Columbia Grazing Enhancement fund was utilized to install a water crossing to protect Avon Creek on the Crown range so that the lower wetland range is only utilized in late August to minimize impacts on wetlands. A partnership with Ducks Unlimited Canada resulted in a wetland conservation project on Crown range. Good management, cross fencing and stock watering has retained the health of sensitive bluebunch wheatgrass hillsides and enhanced biodiversity.

CCA Environmental Stewardship Award Canadian Cattlemen’s Association

Communication Educational material and demonstrations are used to make producers and the general public aware of and promote the use of management practices that promote healthy beef production, biodiversity conservation and provide outdoor recreational opportunities.

Outcomes Benefits Biodiversity The benefits to biodiversity from agricultural practices are as varied as the programs that are implemented. Programs such as riparian management are important to aquatic life by preventing sediments and contaminants from entering watercourses. These buffer zones also act as a corridor that links various habitats with one another, allowing the movement and dispersal of wildlife and plant species. Any program that reduces the impact on or alteration of habitats will be of benefit to biodiversity.

Economic Healthy range and pasture lands support rural livelihoods and provide ecological services, including biodiversity conservation. A key factor to achieve long term resilience, both economically and environmentally, is to ensure that those lands are effectively managed for ecological health and function. Only recently has society begun to ask for a calculation of the value of the ecological services that these grasslands provide. Environmental economics is a challenging and developing science. However, agricultural economists, along with others, are developing methodologies to measure the value of improvements in water quality, wildlife habitat and recreation opportunities that are provided by the implementation of good management practices by cattle producers. Healthy grasslands show an increase in forage productivity and quality which results in greater weight gains for cattle. Healthy grassland also reflects a similar increase in healthy native plant, wildlife, insect and amphibian populations as well as biodiversity in general.

Lessons learned TESA is a source of pride for the cattle industry, but, as a group, cattle producers are not prone to promoting their personal or operational accomplishments. Nominations at the provincial level normally come via a third party, such as a conservation group such as Ducks Unlimited Canada, or a provincial association.

Impact The provincial award winners bring additional attention to the positive environmental impact of good management, which is also often a positive economic impact. These management practices are often not a “one fits all” solution. The challenge is to work through how each practice might fit into an individual producer’s operation. This creates camaraderie amongst the producers who are doing similar things as well as those who want to learn and it helps to see how the award winner has manipulated a practice to fit their individual circumstances.

Contact information Peggy Strankman Manager, Environment 403-275-8558

strankmanp@cattle.ca

Canadian Cattlemen’s Association 6715 – 8th Street NE, Suite 310 Calgary, Alberta T2E 7H7 Canada

www.cattle.ca

Although all the good management practices that TESA nominees implement have common elements it is obvious that they have been modified to fit the individual circumstances of the farm or ranch and the specifics of the regional agro-ecosystem. There is no template that will fit each situation.

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Industry: Agriculture Duration: 2004 – 2013 Location: Nova Scotia, New Brunswick and Prince Edward Island Case study type: Habitat conservation

Atlantic Canada Best Management Practices Program Syngenta is a global agribusiness company with more than 24,000 employees in over 90 countries. The company is a leader in crop protection and ranks third in the high-value commercial seeds market. Syngenta Canada operates two research facilities that go beyond products and services to support commodity-based innovation in areas including bio-fuels and health benefits. Globally, Syngenta invests over $1 billion per year in research. The Canadian head office is in Guelph, Ontario, with about 250 employees spread throughout Canada.

Syngenta’s perspective on biodiversity Impacts on biodiversity Agricultural activities ranging from crop and forage production to inappropriate application and storage of chemicals and fertilizers can all have an impact on biodiversity. Agriculture has a large part to play in protecting habitat and biodiversity through sustainable practices. As with most in the agri-food business, Syngenta understands that in producing food for a growing population, it will become increasingly important to be able to produce more on a shrinking agricultural landscape while ensuring the protection of biodiversity. Syngenta also believes that by sharing this burden among stakeholders, farming in Canada will continue to be sustainable and compatible with biodiversity and habitat protection.

Syngenta’s perspective on biodiversity

Syngenta believes environmental stewardship is everyone’s responsibility. The proper management of natural ecosystems and resources is essential not only for a long-term healthy environment but also for the sustainability of an economically viable agriculture sector. Care of natural ecosystems and the establishment of wildlife habitats and setbacks ensure protection of waterways and prevention of erosion. With respect to biodiversity, it is most important that habitat for pollinators, which are essential to growing most crops, is protected. However, management of these areas is also required to ensure they are not destroyed by invasive species. In their industrial settings, Syngenta’s Health, Safety and Environment Policy and Standards set clear guidelines for managers on the strict environmental standards they must meet to reduce environmental impacts in industrial activities. These include conservation and waste minimization plans such as SynEnergy and Syn*3Rs, tools to help site managers monitor trends in energy and waste.

Syngenta is committed to sustainable development through innovative research and technology. The success of Syngenta depends on the sustainability of its customers, the farmers. Sustainable agriculture is achieving a balance between social, environmental and economic responsibilities – for present and future generations. This requires the production of sufficient and affordable high quality food while protecting ecological integrity and biodiversity. The promotion and use of sustainable agricultural practices will help ensure farming remains an economically viable business and contributes to the well being of rural communities for the long term.

Supply chain

The Syngenta role in Canada is research, development, marketing, information and training. The science behind seeds and crop protection products is evaluated by government (Health Canada, Canadian Food Inspection Agency). Syngenta Canada provides product labeling and information/educational programs to ensure its products are used and disposed of properly and in an environmentally responsible manner. Product containers are collected from farmers and managed through a recycle program managed by the CleanFARMS Program in conjunction with CropLife.

As well as focusing on reducing its own impacts, Syngenta develops products and provide training to help farmers use their products safely and to reduce the impacts of agriculture on climate change, water quality and quantity, soil health and biodiversity. Globally, some 3.2 million farmers have been trained in 2007 alone in various aspects of safe pesticide use.

22 Canadian Business and Biodiversity Program – 2010 Corporate Case Studies

Syngenta is also developing third party guidelines that will provide consistent HSE and ethical standards for all suppliers. Syngenta conducts risk assessments of new crop protection suppliers, based on HSE management as well as quality and continuity of supply. Suppliers are audited based on their potential risk before qualification and regularly afterwards. In addition, Syngenta has an established program of HSE audits for all Syngenta production sites.

Farm practices

Syngenta Canada donates more than one per cent of its pre-tax profits to various not-for-profit organizations, such as Ducks Unlimited Canada, who have a shared vision of sustainable agriculture. This shared vision is one where economically viable and sustainable agricultural processes, such as soil conservation and the protection of surface and ground water quality, are integral components of farm management. A wide range of sustainable agricultural farming practices are acknowledged and used everyday within the agricultural industry. Such practices include integrated pest management, soil and water conservation, crop rotation, and the use of natural or synthetic inputs. The objective of sustainable agricultural practices is to ensure that all farm operations are safe to humans, animals, and the environment.

Syngenta Small Marsh Restoration Rationale For Syngenta, the most successful stewardship programs are those that are created and implemented through partnerships at the local level. It has developed partnerships with dealers, growers, government agencies, and environmental organizations.

Small Marsh Restoration Program restores the productive capacity of wetlands within agricultural areas to improve water quality and provide critical wetland habitat for wildlife. This program assists farmers in the Maritime Provinces in restoring farm wetlands that have been lost through overgrowth of vegetation, ditching or tile drainage or through in-filling of low areas. This is accomplished by the excavation of shallow ponds or through the placement of small berms or water control structures, which puts much needed water back on the land. Riparian areas are enhanced by leaving buffer strips and controlling livestock access. These newly restored wetlands will provide wildlife habitat as well as improved water quality. The Small Marsh Restoration Program is targeted for lowland areas, as wetlands in this landscape are the most productive in the region and have been significantly impacted by human activities over the past 350 years. All projects will be on private lands with a signed 30 year conservation agreement with the land-owner for the wetland and an upland buffer strip. These areas will provide needed habitat for many species of plants, birds, mammals, fish, amphibians and numerous other life forms that rely on these habitat types for all or part of their life cycle requirements.

Description In 2004, Syngenta entered into a partnership with Ducks Unlimited Canada to implement a maritime (Nova Scotia, New Brunswick and Prince Edward Island) Small Marsh Restoration Program (0.8 to 1.6 ha) with a goal to restore 30 to 50 on-farm small wetlands per year. The

Canadian Business and Biodiversity Program – 2010 Corporate Case Studies 23

Syngenta Canada Atlantic Canada Best Management Practices Program

Farm biodiversity conservation plans In year two, 2005, the project was expanded to include the voluntary development of farm biodiversity conservation plans. These plans address all habitats and types of operations, whether for livestock or for crops, and require the following: • identify and map existing wildlife habitats on the farm, including streams, wetlands, forest, etc.; • identify current and potential Best Management Practices that enhance wildlife habitat to benefit biodiversity; • identify potential funding sources or partnerships that could reduce the cost of implementing these activities. The plans further divide the farm landscape into three habitat types: • riparian; • wetlands; • uplands: woodlands, pasture, croplands, hayfields. These plans will identify opportunities for the farmer where wetland restoration, riparian or other projects beneficial to waterfowl or other wildlife can be carried out. They also make recommendations on the types of enhancements that could be completed. In Prince Edward Island, 75% of all farms have environmental farm plans. This partnership has been very successful in the delivery of wetland enhancement projects on agricultural lands in the Maritime Provinces. To date 194 projects encompassing approximately 674 hectares of wetland and associated upland habitat have been completed. This work not only provides important habitat for wildlife, but demonstrates the commitment by the agricultural community to carry out its activities in an environmentally friendly manner. 24 Canadian Business and Biodiversity Program – 2010 Corporate Case Studies

Demand by the agricultural community for the development of on-farm biodiversity conservation plans continues to be high. To date, 89 farm biodiversity conservation plans have been written with a resulting impact on approximately 10,070 hectares of agricultural lands, as assessed by project staff. The program is very successful in promoting farmers to become leaders in environmentally sustainable food production. Syngenta Canada also initiated partnerships in Quebec with the Fondation de la faune and L’Union des producteurs agricoles to support biodiversity conservation by restoring agricultural waterways through the establishment of riparian zones.

Communication Along with providing direct benefits to both farmers and wildlife, the project has been very effective in promoting the conservation of biodiversity on the agricultural landscape. Educational and promotional activities delivered in conjunction with the program include: • displays at agricultural exhibits and demonstration sites; • field tours for high level government officials as well as national and international environmental groups; • media releases; • public presentations on the values of biodiversity programs; • presentation of the annual Lieutenant Governor’s Greenwing Award to a local farmer showing commitment to wetland conservation and environmental stewardship within the farming community in PEI.

Atlantic Canada Best Management Practices Program Syngenta Canada

Stakeholders and roles Syngenta Canada – Funding. Ducks Unlimited Canada – Funding; assessments and inventories; determine priority projects and implement; sign and hold conservation agreements. Land Owner – Abide by conservation management guidelines; sign conservation agreement.

Outcomes Benefits Economic For agriculture to remain economically and biologically sustainable into the future, and be able to feed a rapidly increasing population from a shrinking arable land base, it is essential to plan and to develop responsible products to protect biodiversity, land and water. It is anticipated that only operations that implement sustainable practices will be economically viable into the future. By implementing comprehensive product research and development programs, and educating and helping farmers develop and implement environmental programs, Syngenta is helping insure an economically viable agriculture industry that will be able to support agribusinesses.

Biodiversity Programs to evaluate the biological impacts of small wetland restoration have all shown a significant increase in all forms of animal and plant species that rely on wetlands and riparian habitats. Notable were Neotropical migratory birds, amphibians and waterfowl – absolute numbers as well as species diversity. Fish species also benefit from both improved water quality and quantity.

Lessons learned • The most successful stewardship programs are those that are created and implemented through partnerships at the local level. • It is important that on-farm projects are farmer driven to instil ownership. • Recognition that these projects are important is essential for them to create a “life of their own” which is critical if they are to become the standard way of doing business.

Pauline and Francis Verstraten (left) received the Nova Scotia Lieutenant Governor’s Greenwing Conservation Award on August 26, 2009 from The Honourable Mayann E. Francis (right).

Impact on company Syngenta prides itself on being a responsible business. As an R&D based company, many of the Syngenta employees are scientists and biologists who care deeply about agriculture and the environment. The employees are very proud of the Syngenta focus on biodiversity and the environment generally. They are encouraged to be involved and very few employees leave. These activities also attract some of the best people who want to work for a responsible business.

Contact information Judy Shaw Government and Public Affairs Director 519-837-5328 judy.shaw@syngenta.com Syngenta Canada 140 Research Lane, Research Park Guelph, Ontario N1G 4Z3 Canada

www.syngenta.ca

Canadian Business and Biodiversity Program – 2010 Corporate Case Studies 25

Industry: Construction materials Duration: 1987 - ongoing Location: Milton, Ontario Case study type: Site rehabilitation

Biodiversity conservation through quarry rehabilitation Holcim, headquartered in Switzerland, is one of the world’s leading suppliers of cement and construction materials. The Holcim Group has a market presence in over 70 countries on all continents. In Canada, Holcim operates 2 cement plants with the annual capacity to produce 2.7 million tonnes of Portland Cement and 500,000 tonnes of GranCem (a cement substitute with lower carbon intensity); 25 quarries and pits that produce more than 18 million tonnes per year of crushed stone, gravel and sand; 50 concrete plants and 2 construction companies specializing in major infrastructure projects. Holcim employs approximately 90,000 people worldwide and about 2,900 people in Canada. The Canadian Head Office is located in Concord, Ontario.

Holcim’s perspective on biodiversity Impacts on biodiversity The production of cement and aggregates is a resource-intensive business that depends on long-term access to raw materials that are acquired through quarrying. Quarry operations and activities can have impacts on both terrestrial and aquatic habitats and the species – flora and fauna – dependent on them. Impacts are mainly due to direct site footprints, clinker production and water use.

Implementing biodiversity conservation Holcim is of the conviction that biodiversity conservation plays an important role in its long-term resource and reserve strategy. To achieve this commitment, Holcim has embedded its corporate Environmental Policy in business processes to ensure continued focus and systematic performance improvement. The four main pillars of the Environmental Policy are: 1.

Integration of environmental management guidelines into business processes and standards worldwide and monitor performance.

Promote eco-efficiency, conservation of non-renewable natural resources and recycling of secondary materials.

Measure performance, continuously improve and promote best practice in their industry.

Engage stakeholders and report publicly on compliance, performance and progress.

A network of environmental coordinators work to ensure that these are aligned and that the underlying principles are consistently applied. The company carries out raw material extraction and management with impacts assessed at each stage of quarry operation.

26 Canadian Business and Biodiversity Program – 2010 Corporate Case Studies

Both cement plants in Canada and all concrete and aggregate operations in Quebec have been certified to the ISO 14001 Environmental Management System standard. In 2006, Holcim (Canada) Inc. completed rehabilitation plans for its two cement plant quarries. In addition, its aggregate Divisions, Dufferin and Demix, have quarry rehabilitation plans which include ongoing rehabilitation activities. These plans are communicated to local stakeholders on a regular basis through open houses, newsletters and other communication channels. Land use and biodiversity is addressed mostly at the local level, including raw material management, environmental and social impact assessment and quarry rehabilitation planning.

Commitment to sustainability Holcim views sustainability as a means to open doors to new opportunities, new relationships and leading to long-term profitability. It has made a major contribution to sustainability through the Holcim Foundation for Sustainable Construction to foster a mindset where sustainability in the construction sector is approached as a technical, design and quality of life issue. Holcim’s vision for sustainability also extends through the construction value chain. It is achieved through developing sustainable building materials, in its approach to quarry rehabilitation, and in implementing innovative new processes for reducing waste and water consumption. Through investments, including in employees, it has continuously improved on sustainable environmental performance and resource use. Holcim was instrumental in the creation of the World Business Council for the Sustainable Development (WBCSD) Cement Sustainability Initiative. It has been recognized four years in a row as the sector leader on the Dow Jones Sustainability Index, the FTSE4Good index Series and the Ethibel Investment Register.

IUCN Partnership Holcim recognizes that as a resource intensive business, biodiversity is a concern. In February 2007, Holcim and IUCN signed an agreement to work together to develop ecosystem conservation standards for Holcim and to contribute to sector wide improvements. Under this agreement, one of the main objectives is to “review and assess the approach of the Holcim Group to biodiversity conservation management, establish a baseline, and develop a more comprehensive corporate biodiversity policy and strategy for the Holcim Group.” As part of this initiative, Holcim requested each operating company, including Holcim (Canada) Inc., to complete a biodiversity questionnaire for each of its quarries with the intent of understanding its baseline. The questionnaire covered the following main areas: • plant and quarry information; • ecosystems information; • location relative to sensitive areas and type of environment; • level of knowledge of biodiversity at the site;

The Biodiversity Management in the Holcim SD Framework Baseline Status report was issued May 2008 to establish the Holcim baseline with respect to biodiversity management. It is based upon the extensive survey completed as part of the Holcim-IUCN partnership.

Water conservation Aggregates and other construction materials businesses require significant quantities of water. Holcim is aware of the importance of water as a natural resource and acknowledges that its growing scarcity in many locations is a key issue. Holcim is investigating the implementation of comprehensive water management and monitoring systems at all operations.

Reducing use of non-renewable resources Holcim has started several initiatives to make its business more sustainable. They are looking for alternative materials and to increase the amount of recycled content used in their products, including the use of reclaimed crushed concrete as a substitute for virgin aggregate materials. The amount of recycled materials used as concrete aggregates has tripled in the last three years.

• areas of value for biodiversity; • impact assessment; • groundwater impacts; • quarry rehabilitation programs and partnerships.

Canadian Business and Biodiversity Program – 2010 Corporate Case Studies 27

Holcim (Canada) Inc. Biodiversity conservation through quarry rehabilitation

Holcim Quarry restoration program Rationale As a member of the Cement Sustainability Initiative, Holcim committed to developing rehabilitation plans for all operating cement-related quarries and communicating them to external stakeholders. In 2004, to ensure that these rehabilitation plans meet both regulatory requirements and good practice standards, internal Group Guidelines on Quarry Rehabilitation Planning were developed and endorsed.

Description The Quarry Rehabilitation Planning Recommendations are mandatory for all Holcim Group companies and include 10 Principles of Quarry Rehabilitation: 1.

Comply with legal requirements.

Know your deposit and the impacts.

Build an interdisciplinary team.

Engage with stakeholders.

Plan your rehabilitation.

Make financial provision.

Carry out and monitor rehabilitation.

Report on the status of rehabilitation via the Plant Environmental Profile.

Review and update rehabilitation planning.

10. Retain documents. The Guidelines document also contains Guidance for good practice in rehabilitation planning and a Checklist for self-assessment of status of quarry rehabilitation planning.

28 Canadian Business and Biodiversity Program – 2010 Corporate Case Studies

Milton Quarry Holcim operates a quarry along the Niagara Escarpment in Milton, Ontario, through its subsidiary, Dufferin Aggregates, that has been in operation since 1962. Rehabilitation is an integral part of the overall land management program at the Milton Quarry and has been ongoing within the existing quarry for the past 23 years. It makes use of all on-site natural resources, including forest, soils, water and aggregate. The rehabilitated lands are intended to become a valuable public asset with approximately 336 ha of Dufferin-owned lands, including wetlands, lake and reservoir, to be eventually conveyed to the Conservation Authority. Since 1975, Holcim has rehabilitated more than 200 hectares of land in Milton. Through proper rehabilitation planning, the Milton Quarry now includes natural heritage systems that have both biodiversity and recreational value. The original quarry site has been rehabilitated to a park setting with open areas and two baseball diamonds. The goal of the rehabilitation plan is to design a naturalized landscape with ecological diversity, compatible with the Niagara Escarpment surroundings and include public and private recreational opportunities. Through an extensive ongoing quarry rehabilitation project the restored landscape now features extensive naturalized water bodies with varying shorelines, wetlands, wooded upland margins and slopes, open space, an education center with access to the Bruce Trail network and many kilometers of cliff face. The Milton quarry was the first site in Ontario that was allowed to leave exposed cliff faces as part of the rehabilitation process. The vertical faces are designed to duplicate the naturally exposed faces of the Niagara Escarpment. The rehabilitation design promotes a diversity of habitats with many plant and animal communities. Each year additional rehabilitation actions, including plantings, will occur. Some are completed in conjunction with partners such as Scoutrees of Canada and the Halton Conservation Authority who assist in planting hundreds of trees and shrubs as part of the Earth Week Celebrations. On April 26, 2008, the 100,000th tree milestone was achieved.

Biodiversity conservation through quarry rehabilitation Holcim (Canada) Inc.

Water management system The Milton Quarry has a complex water management system which is unique in the industry. The quarry uses a closed-loop system for process water recycling and reuse. The wash plants utilize a fines recovery system to minimize the amount of wasted material and the material that does go to the silt ponds is eventually used in the rehabilitation of the quarry as base material for slopes. The water management system includes a 70 hectares reservoir (capacity of 5.5 million m3), wetlands, a lake, three existing sumps and a ground water recharge system with 20 recharge wells. The reservoir is currently filling and used to supplement stream water to the Hilton Falls Reservoir tributary and the ground water recharge system. Currently, water is pumped to the tributary, however, when the reservoir water levels reach design levels, discharge will become passive. Discharge water only occurs to the Hilton Falls Reservoir and the rate of flow is determined in consultation with the local Conservation Authority. The ground water recharge system is designed to operate either pressurized or passively and is being expanded to include the perimeter of a future Quarry Extension. The recharged water is very important in maintaining groundwater levels that help ensure stream levels and habitat for fish and that other aquatic biodiversity are not affected. The lake and wetland have filled to their operational levels.

Monitoring Rehabilitation monitoring results have shown that a natural ecosystem can be re-established in 10 to 15 years. Documented monitoring surveys have shown the rehabilitated areas of the Quarry contain over 325 species of flora and more than 235 species of fauna that includes birds, amphibians, reptiles, insects and mammals. The varied habitats of the rehabilitated Milton Quarry lands have resulted in this area developing a significant ecosystem.

Communication and outreach Dufferin Aggregates has an open door policy responding to inquiries, comments and complaints from neighbors and stakeholders and engages in on-site activities. Holcim hosts over 100 educational and special events each year with the expressed purpose of helping Government, NGOs, stakeholders and the general public, learn more about its operation and the contribution aggregate sites make to a sustainable environment. A large number of the educational events are school groups who come on site and learn about geology, aggregate processing, environmental management and site rehabilitation. Holcim also hosts tours for nature conservancy groups interested in the flora and fauna of the rehabilitated quarries and pits. Milton Quarry is a founding member of the Bruce Trail Association and maintains more than 3 kilometers of walking trail along the south boundary of the quarry on lands owned by Conservation Halton and across the Dufferin Aggregates footbridge that includes an interpretative plaque and lookout into the active quarry. A similar length of side trails passes over lands owned by Holcim.

Outcomes Benefits Economic Production of cement and aggregates depends on long-term access to raw materials that are acquired through quarrying. Holcim aims to improve its operational approach to resource management and to contribute to broader goals in the communities where it operates. Addressing conservation and biodiversity issues on old, operating and future sites can contribute to economically viable operations and thus sustainable livelihoods for local people.

Biodiversity During the evaluation and monitoring programs it became evident that good quarry management and rehabilitation can improve and create conditions favourable to biodiversity conservation. On site habitat restoration activities, terrestrial and aquatic, are now maturing and more than 560 species of flora and fauna have been recorded.

Lessons learned Throughout the development, implementation and follow-up stages of quarry restoration, the following factors are considered key: • a well developed and financed plan is critical to successful completion; • engage and work closely with all stakeholders, especially locally; • promote and use the rehabilitated site as an educational tool.

Management Internal, as well as IUCN conducted, evaluation and monitoring programs were undertaken to determine and evaluate the impacts of Holcim quarry rehabilitation projects on Biodiversity. These programs also looked at how Holcim integrates biodiversity into its environmental and social impact assessments for greenfield and expansion projects by examining how it operates and closes quarry sites, best practices selection and implementation and identified gaps in current quarry rehabilitation projects. These findings are helping Holcim manage their operations and activities as well as plan for ongoing and future restoration activities.

Contact information Luc Robitaille Corporate Director Environment 905-432-3067 luc.robitaille@holcim.com Holcim (Canada) Inc. 2300 Steeles Avenue West, 4th Floor Concord, Ontario L4K 5X6 Canada

www.holcim.ca

Canadian Business and Biodiversity Program – 2010 Corporate Case Studies 29

Industry: Education Duration: Started in 1997 – on-going Location: Granby, Quebec Case study type: Species rehabilitation

conservation of endangered species: recovery of the Spiny Softshell Turtle in Quebec The Granby Zoo is a zoological park as well as a water and amusement park founded in 1953. It covers 100 acres in the City of Granby, Quebec. This organization, governed by the Zoological Society of Granby employs over one hundred permanent employees and up to 425 young seasonal workers. The collection of Granby Zoo consists of over 1,000 animals from some 200 species and it welcomes an average of 600,000 visitors each year.

Granby Zoo’s perspective on biodiversity Impacts on biodiversity The Granby Zoo (the Zoo) is a large-scale tourist enterprise near Montreal. Its main contributions are focused on conservation of an animal collection and the preservation of the genetic diversity of the kept species, as well as education of the population. The Zoo also provides entertainment activities to its clientele via recreational tourist installations and derivative products. Environmental impacts of the Zoo include water consumption and water effluents and waste management.

Granby Zoo Biodiversity Management Policy Since 2004, the Granby Zoo management has been committed to adopt best practice standards in its core activities within the zoos and aquariums network and to contribute to local communities’ development. The Granby Zoo was accredited by the Association of Zoos and Aquariums (AZA1) in 2004, and successfully reaccredited in 2009. As the second institution to be accredited in Quebec and the fifth in Canada, the Zoo must comply with a set of professional criteria including specific procedures for animal care and conservation policies. This accreditation automatically gives accreditation to the Canadian Association of Zoos and Aquariums (CAZA) and allows the Granby Zoo privileged access to the 26 other accredited members’ animal population to acquire or place animals. Since early 2005, the Zoo is also the only member in Quebec, and the third in Canada to be a member of the World Association of Zoos and Aquariums.

30 Canadian Business and Biodiversity Program – 2010 Corporate Case Studies

Lastly, the Zoo has been distinguished in 2004 as one of the 25 best zoological institutions worldwide for the quality of its records of animal populations and its continuous contribution to the International Species Inventory System (ISIS) since 1979. ISIS is a global database created in 1973 that gathers information on animals from wild species kept in captivity, such as identification number, age, sex, parents, birth place and circumstance of death. It contains information on 2 million animals from about 10,000 species, housed in 825 institutions, in 76 countries worldwide. The Zoo has implemented a green policy with 5 objectives. During the last three years environmental measures led to significant reductions in water and energy consumption, greenhouse gases, as well as improvements in waste management and recovery. Its green and sustainable practices are documented in a Green Program, issued in 2007 and updated in 2010, a leading practice within the zoological domain, acknowledged in the recent sustainable tourism prize from Eastern Townships Tourism Association received by the Zoo. Quarantine procedures to prevent the introduction of infectious diseases, potentially carried by newly acquired animals are established, as well as preventive medicine programs designed for the health and well-being of Granby Zoo animals. Animal waste is spread on agricultural farm lands of a cultivator in the district after being analysed by an engineering firm to ensure that all parameter requirements follow MAPAQ’s (Ministère de l’Agriculture, des Pêches et de l’Alimentation du Québec) standards on the regulation of animal waste control.

• A conservation project on the Geoffroy’s Pied Colobus Monkey In situ conservation of endangered – Colobus vellerosus – in the Boabeng-Fiema Monkey Sanctuary area in Ghana, West Africa since 2008, in cooperation with species: recovery of the Spiny Softshell protected the Nature Conservation Research Center, the Ghana Government and the Swift Family Foundation. Turtle in Quebec

Rationale Over the years, the Granby Zoo has acquired strong expertise and know-how in species reproduction programs and research, as well as in education of communities and public on biodiversity conservation. As an accredited zoo, the Granby zoo is committed to contribute to the conservation both of exotic and of national species, and to participate in research projects taking place in Canada and in other places around the world. It develops programs and activities for biodiversity conservation both in situ (into the wild) at local and at international level and ex situ (in captivity at the Zoo). The ex situ research programs includes participation in: • Species Survival Plan (SSP) dedicated to manage the reproduction of 25 endangered species present in the Zoo, in cooperation with other AZA and CAZA accredited zoos in North America. This program is crucial to manage the genetic diversity, to ensure a sustainable reproduction of animals in captivity and to avoid genetic anomalies due to improper reproduction plans. Such a plan is all the more important for endangered species such as the Siberian Tiger (Panthera tigris altaica) which population in captivity around the world is higher than in the wild. • Population Management Plan (PMP) designed for non endangered species to manage the reproduction of captive individuals of the 29 species of the site taking into account the genealogy of individuals, based on ISIS database.

The contribution of the Granby Zoo to the recovery programs on the Spiny Softshell Turtle presented in this case study started in 1997, with the creation of the recovery team for this species by the Ministère des Ressources naturelles et de la Faune (MNRF). The Zoo was approached by the MNRF to join the Spiny Softshell Turtle recovery team due to its known expertise on reptilians’ biology and was willing to contribute by developing protocols for the observation and the conservation of the turtles. The recovery team gathers representatives from Environment Canada, Service canadien de la Faune, Conservation Baie Missisquoi, Nature Conservancy Canada, Granby Zoo, Ecomuseum and Amphibia-Nature.

Description The Spiny Softshell Turtle (Apalone spinifera spinifera) is a freshwater turtle also known as the pig-nosed rubber-backed turtle. Its olive or tan coloured shell is quite flat, round and marked with dark blotches. Male specimen measure between 12 and 24 cm and females, measuring 18 to 42 cm can weigh as much as 12 kg. The Spiny Softshell Turtle is designated as threatened by the Committee on the Status of Endangered Wildlife in Canada (COSEWIC). Listed as a threatened species in Schedule 1 of the Species at Risk Act, the species, its residence (e.g., hibernacula) and its critical habitat are partially protected. It is also one of the 7 species designated as threatened by the Quebec Government under the Loi sur les espèces menacées ou vulnérables.

• International ex situ reproduction projects with a view to reintroduce the species into the wild, as for the Puerto Rican Crested Toads (Peltophryne lemur) for which it has been part of a reintroduction program since 1998. The Zoo also contributes to four in situ conservation programs: • The inventory of avian fauna in Granby. The Zoo has developed a partnership with the local ornithology club of the Haute-Yamaska to carry out with an association, Regroupement Québec Oiseaux, a comparative inventory of the avian fauna in the City of Granby and within the Zoo area, which represents a microhabitat. • A multi-year project conducted jointly with students from Université du Québec à Trois-Rivières (UQTR) to carry out a flora and fauna inventory on the tourist area of the Isle St-Quentin located in Trois-Rivières.

Canadian Business and Biodiversity Program – 2010 Corporate Case Studies 31

Granby Zoo In situ conservation of endangered species: Recovery of the Spiny Softshell Turtle in Quebec

Spiny Softshell Turtles occur around large bodies of water in southwestern Quebec and in the Ottawa River region. Although it is abundant in the United States, it is vulnerable in Canada. In Ontario, the population that was estimated to be 1,000 to 2,000 in 1985 dropped to a current estimate between 800 and 1,000. It is also particularly threatened in Quebec where the only remaining population, estimated at 100 individuals3, is located in the Missisquoi Bay in Lake Champlain and in the Pike River (Rivière aux brochets) in the south of the province. Spiny Softshell Turtles are particularly threatened by human activities: their nesting areas are often beaches, where recreational activities can cause high egg mortality. Adults are often killed or injured by collisions with boats, while water pollution and urban and agricultural development along shorelines threaten their habitat. Sarcophagi flies are known to feed on the eggs, as well as predators such as raccoons, skunks and foxes.

The Zoo has been a founding member of the Recovery Team since the beginning both as a financing and a participating partner. It has contributed to the two intervention plans (1997-2004 and 2005-2009) to help increase the population in Quebec by: • improving the knowledge and understanding of the species biology. The Zoo collaborated in radio-telemetry protocols to identify nest sites, hibernaculum sites and movements as well as necropsy protocols for researchers and teams, to help understand causes of mortality. • finding nesting sites, monitoring and protecting nests until egg-hatching. Since 2008, the Zoo has started a program through ex situ incubation of eggs and release of young individuals. In June 2009, 4 females were observed on a nesting site and 4 nests were discovered. A program to monitor hatching and to maximize the survival rate was implemented in 2009, including the protection of nests from predators and incubation of eggs in captivity at the Zoo for release of young individuals in the future. After the first phase of the program, the project did not give the expected results and the protocol for ex situ incubation has been reviewed to increase the chances of success of hatching eggs. The program will be extended in 2010 and 2011 thanks to the support of the Canadian Wildlife Federation, the Canadian Association of Zoos and Aquariums, and the Ministère des Ressources naturelles et de la Faune.

Stakeholders and roles In the framework of its research projects, the Granby Zoo is building partnerships with universities in Canada and abroad (York University, Laval University, Concordia University, UQTR), particularly to study species behaviour. The Granby Zoo is one of the major partners of the Spiny Softshell Turtle Recovery Plan led by the Ministère des Ressources naturelles et de la Faune, in partnership with local communities and associations, SOS Tortues and Nature Conservancy Canada among others. The in situ and ex situ conservation projects are managed by 2 full-time employees at the Zoo.

Communication Since 2002, with the Spiny Softshell Turtle Recovery Project, the Zoo participates in an educational program that contributes to raising awareness of 50,000 people around the Lake Champlain, through exhibitions and discussions in schools. In particular, the Zoo educators facilitated one-hour workshops in schools in the Lake Champlain area and provided interpretation on the Spiny Softshell Turtle during local events (e.g., rural fairs) as well as in local parks. For this purpose, the Zoo created an educational program comprising the display of individuals, interactive modules and the presentation of biological material. The Zoo also developed another 20 educational programs for schools that include a part on biodiversity conservation. Each year, approximately 27,000 children aged from 5 to 13 have access to these programs at school with the Zoomobile or at the Zoo. 32 Canadian Business and Biodiversity Program – 2010 Corporate Case Studies

In situ conservation of endangered species: Recovery of the Spiny Softshell Turtle in Quebec Granby Zoo

This engagement of the Zoo with exotic species, together with a strong commitment at the local level to protect and preserve biodiversity, has also led to increased visits and revenues which in turn provide additional resources to invest in conservation research programs and projects.

Local residents have been encouraged to develop behavior which contributes to the conservation of the species (e.g., correct management of waste to limit the presence of predators, keeping natural banks along the river and the lake and protecting nesting areas). Along the Pike River, basking areas have been installed and brochures and awareness campaigns are provided to the residents throughout the summer to inform them on the status of this species and to keep them aware of basking areas.

Lessons learned

Since 2007, the Zoo has established a Conservation Day during the first week of July. Emphasis is put on the protection of turtles in Quebec, and in particular on the Spiny Softshell Turtle.

The first results of the Spiny Softshell Turtle recovery program have provided some lessons learned and contributed to improving incubation protocols.

The Zoo is currently working on two exhibition projects:

Changes in company’s practices

• one of them, focusing on endangered species in Canada, including the Spiny Softshell Turtle, called “To the Rescue of Endangered Species” will be posted in spring 2010 on the Virtual Museum of Canada web site2;

In the past few years, the Granby Zoo has become an important partner in the conservation of wildlife in Quebec and abroad, either through financial support or research projects in cooperation with academia.

• the other one called “Illegal Killer Trade” will be ready in the summer of 2010 and displayed in different provinces across Canada over the next three years.

These projects have had an impact on the employees’ involvement and sense of belonging and have contributed to reinforce a more proactive conservation role for the Granby Zoo.

Outcomes

Far from being only a place where animals are kept in captivity for visitors to see, the Granby zoo is establishing itself as an important educator on biodiversity conservation and as a valued contributor to conservation research programs.

Benefits Biodiversity The positive outcomes of the in situ and ex situ conservation programs carried out by the Granby Zoo lie in:

Contact information

• the conservation of a healthy genetic profile of animals in captivity;

Joanne Lalumière Executive Director and Secretary 450-372-9113, ext. 2100 jlalumiere@zoodegranby.com

• the contribution to the recovery of endangered species populations in their own habitat, especially the Spiny Softshell Turtle; • an increased awareness of the value of biodiversity conservation from local communities where the project takes place and from more than 600,000 visitors per year.

Patrick Paré Director Education, Research, Environment 450-372-9113, ext. 2174 ppare@zoodegranby.com

In particular for the Spiny Softshell Turtle, the program has contributed to enhance knowledge of the biology of this species. Education on this emblematic species may also create positive impacts for the conservation of other species living in the same ecosystems.

Granby Zoo 525 Rue Saint-Hubert Granby, Quebec J2G 5P3 Canada

www.zoodegranby.com

Economic The strong involvement of the Zoo in international conservation programs of endangered species has contributed to enhance the Zoo’s image and credibility in the professional area, hence facilitating its access to new species to renew and complete the collection presented to the public. Since 2004, because of its significant impact on regional economy, and also the quality of its development, educational and conservation activities and programs, the Zoo has benefitted from governmental grants.

There are 221 AZA-accredited zoos and aquariums.

www.museevirtuel-virtualmuseum.ca/index-eng.jsp

http://dsp-psd.tpsgc.gc.ca/Collection/CW69-14-293-2003F.pdf

Canadian Business and Biodiversity Program – 2010 Corporate Case Studies 33

Industry: Electric utilities Duration: 2008 – 2013 Location: Province of Quebec Case study type: Habitat conservation

Conserving biodiversity along distribution lines Hydro-Québec is a government-owned utility with a single shareholder, the Québec government. Its mandate is to generate, transmit and distribute electricity in Québec. It sells surplus power on wholesale markets and is also active in arbitrage and purchase/resale transactions. The company has more than 23,000 employees and operates essentially with renewable energy sources, especially hydropower. Hydro-Québec relies on a total installed capacity of 36,427 MW, of which 97% comes from its 59 hydroelectric generating stations and 26 large reservoirs. Besides hydropower, it relies on wind power, which makes up 1% to 2% of its total capacity now and should rise to about 10% by 2015.

Hydro-Québec’s perspective on biodiversity

Hydro-Québec first obtained ISO 14001 certification in 1999. Since then, all its activities have been covered by an environmental management system (EMS).

Impacts on biodiversity

In 2006, Hydro-Québec adopted a corporate strategy establishing a frame of reference and objectives regarding biodiversity:

On a global scale, climate change is a primary threat to conserving biodiversity. As a producer of energy mainly relying on renewable sources, Hydro-Québec does not contribute significantly to greenhouse gas emissions. The company’s three major activities that impact on biodiversity are:

• Ensure conservation of biodiversity in company activities through projects based on the various components of the physical, biological and human environments, and adhere to all existing laws and regulations regarding biodiversity.

• Generation: The main effect of using water to generate power is to modify watersheds by flooding land and thus transforming terrestrial ecosystems into lacustrine ones. Several major studies document these effects1. • Transmission: Hydro-Québec manages a vast transmission grid with over 33,000 km of high-voltage lines. The grid carries energy generated primarily in northern Quebec to load centres in the south. Hydro-Québec conducted a study program comparing biodiversity within rights-of-way to that adjacent to them in Quebec’s three major bioclimatic zones. • Distribution: The Hydro-Québec distribution system carries electricity to all Quebec consumers. More than 110,000 km of distribution lines cross farmland, forests, residential districts and urban areas. The effects of the distribution system on biodiversity have been studied and specific conservation measures have been taken.

Hydro-Québec’s biodiversity management policy The Hydro-Québec Environment Policy was first implemented in 1984. The company has been publishing environmental performance reports since 1995 and sustainability reports since 2002. The reports contain a specific section on biodiversity2.

34 Canadian Business and Biodiversity Program – 2010 Corporate Case Studies

• Participate in restoring species that are threatened or vulnerable in Quebec. • Raise the profile of Hydro-Québec’s contribution to conserving biodiversity. For each objective, the strategy also sets out a series of action items for 2010. For instance, Hydro-Québec is participating in 6 restoration teams working to safeguard 13 of the 22 wildlife species designated as threatened or vulnerable in Quebec. Since its creation in 2001, the Fondation Hydro-Québec pour l’environnement has allocated $8.8 million in support to local and regional organizations implementing 145 projects to enhance Quebec’s natural heritage3. With the passing of Quebec’s Sustainable Development Act, Hydro-Québec has adopted its Sustainable Development Action Plan 2009–20134. The Plan sets out 10 actions, one of which is to “Improve vegetation control methods on the distribution system to better protect biodiversity.”

Conserving biodiversity along distribution lines Rationale Hydro-Québec carries out vegetation control work on distribution line rights-of-way in order to avoid outages and to ensure safe, optimal operation. Since vegetation causes 40% of distribution system outages, controlling it is a key maintenance activity for distribution, and has been included in the company’s EMS. Distribution line rights-of-way along roads, through fields and across forests, provide habitat for numerous animal, birds and other species that rest, breed, feed or travel there. They also serve as refuge for numerous plant species otherwise absent in urban, peri-urban and farm environments. The distribution system includes about 3,000,000 spans (the distance between two utility poles) along 110,127 km of lines. Vegetation control along the distribution lines occupies 150 employees, as well as a number of contractors, and costs $60 million per year. In 2006, the company identified ways of improving vegetation control operations within distribution rights-of-way that cut the cost of dealing with waste wood and refined land clearing methods that maintain or create microhabitats that protect biodiversity.

Description A pilot project was run in 2007 and 2008 on 2,500 spans in the Bois-Francs, Estrie and Mauricie regions. It introduced three biodiversity protection measures into vegetation control operations. The new measures replace clear cutting and consist in the following: • Perform selective cutting to keep as many trees and shrubs standing as is feasible without jeopardizing power system security. • Manage waste wood on site by piling or scattering it to help develop microhabitats. Traditionally, waste wood is chipped and hauled to a central location where it is composted or buried. However, it can contribute to biodiversity by providing a habitat or substrate for insects, amphibians, small mammals, mushrooms, mosses and other organisms. • Keep a number of standing dead trees or trunks (snags) for the benefit of many species of plants, invertebrates, mammals and birds, such as woodpeckers. They can also serve as nesting sites for numerous species of birds and mammals. These measures are written into the procedures intended for employees and contractors working in the field. A methodology guide will also be drafted to help those in charge of vegetation control select the most appropriate method for conserving biodiversity, while taking environmental, safety and technical constraints into account. This is a change in the procedure for managers, who must now select one or more vegetation control techniques for protecting biodiversity based on an analysis of the situation.

Canadian Business and Biodiversity Program – 2010 Corporate Case Studies 35

Hydro-Québec Conserving biodiversity along distribution lines

Hydro-Québec’s objective is to roll out the program so that by the end of 2013, it covers 90% of scheduled vegetation control work carried out each year on the distribution system. Intermediate targets to support rollout will be set for 2009 to 2012. The target for 2009 is that 80% of such work includes biodiversity enhancement measures. A study will be conducted during the program to identify other biodiversity conservation measures (e.g., preserving remarkable trees). It is anticipated that approximately twenty new measures will be identified.

Stakeholders and roles The vast majority of distribution line rights-of-way are not HydroQuébec property. The company thus wants the new measures to be socially acceptable. Though less biodiversity-friendly, clear cutting rights-of-way may appear “cleaner” than on-site waste management and conserving dead trees. The pilot project has thus been the focus of meetings in 2008 with municipalities, RCMs (regional county municipality) and citizens’ associations. These organizations, in addition to the majority of the 2,500 landowners concerned, have accepted the biodiversity protection measures proposed by Hydro-Québec. The positive response to the pilot project will be all the more important as it will provide a basis for promoting awareness among all landowners whose property is subject to all distribution line vegetation control work. Distribution managers at Hydro-Québec are responsible of the implementation of the measures in cooperation with its Department of Environment and sustainable development affairs. Hydro-Québec also wishes to set up a scientific committee to monitor and assess the project. Membership will include scientists recognized for their contribution to biodiversity. One committee duty will be to issue an opinion regarding approaches proposed by Hydro-Québec in its biodiversity enhancement program.

Communication The following communications activities have been initiated: • Distribution of a leaflet entitled La biodiversité, un patrimoine précieux à conserver (Biodiversity: a precious heritage to conserve), which covers the pilot project’s three measures as an awareness and training tool for operators and contractors; • Organization of information meetings with municipalities and RCMs; • Development of an intranet site for employees.

36 Canadian Business and Biodiversity Program – 2010 Corporate Case Studies

Conserving biodiversity along distribution lines Hydro-Québec

A meeting was held in fall, 2009, with municipal representatives and landowners to update them on the results of the work completed in 2008 and 2009, and its impact on biodiversity. Hydro-Québec has developed employee training sessions entitled Bonnes pratiques environnementales concernant les travaux de maîtrise de la végétation (Good environmental practices in vegetation control work). Hydro-Québec will check that employees are adhering to the program and incorporating the new practices. Meetings will be held in 2010.

Outcomes

Lessons learned A key facet of the project is employee and stakeholder awareness. The issue of protecting and enhancing biodiversity has been an important driver in project acceptance despite changes that the measures entail in managerial practices at Hydro-Québec. As yet, little resistance has been encountered among internal and external stakeholders. The pilot project has nonetheless highlighted the importance of clearly communicating to the community the objectives pursued. Program rollout must not neglect a sustained awareness effort.

Benefits Economic

Changes in company’s practices

Implementing these measures will result in savings in the annual budget for distribution line vegetation control. Measures already implemented, e.g., on-site waste wood management, offer a high potential for savings, which should be confirmed when future land clearing contracts are awarded. Hydro-Québec intends to reinvest savings in projects promoting biodiversity.

As mentioned above, implementing this program entails changes to how vegetation control is managed, and to the procedures for performing it. Hydro-Québec guidelines will also be amended to make biodiversity enhancement measures permanent. Biodiversity measures will also soon be entered into the Geographic Information System used by forest technicians in conducting surveys.

Management The initial year of the project (2008–2009) has helped to gauge the project’s social dimension and the importance of creating partnerships with key external stakeholders (RCMs, municipalities, citizens, scientific community, environmental associations, etc.). It has also provided an opportunity to develop a strategy, establish indicators and targets, develop management tools (training and awareness), and standards supporting biodiversity measures can soon be implemented.

They also mean a change in the way Hydro-Québec communicates with communities affected by this type of work, especially regarding the visual impact of applying biodiversity measures.

Contact information

Biodiversity

François Durand Adviser, Environmental Performance – Environment and Sustainable Development Hydro-Québec 514 289-2211 ext. 4207 Durand.Francois@hydro.qc.ca

The pilot project is now being assessed to determine whether biodiversity measures applied actually make a lasting contribution. Results are expected in late 2009. Hydro-Québec estimates that when the project ends in 2013, 90% of spans subject to vegetation control will have benefited from biodiversity enhancement measures.

Gervais Pellerin Adviser – Scientific Research Environnement 514 879-4100 ext. 5035 Hydro-Québec Distribution

Pellerin.Gervais@hydro.qc.ca

www.hydroquebec.com

www.hydroquebec.com/sustainable-development /documentation/pop/ doc_specialise_06.html

www.hydroquebec.com/publications/en/enviro_performance/pdf/ rdd_2008_en.pdf

www.hydroquebec.com/fondation-environnement/en/index.html

www.hydroquebec.com/sustainable-developpement

Canadian Business and Biodiversity Program – 2010 Corporate Case Studies 37

Industry: Electric utilities Duration: ongoing Location: Province of Ontario Case study type: Management and policy

Ontario Power Generation biodiversity policy Ontario Power Generation (OPG) is an Ontario-based electricity generation company whose principal business is the generation and sale of electricity in Ontario. OPG’s focus is on the efficient production and sale of electricity from its generating assets, while operating in a safe, open and environmentally responsible manner. OPG was established under the Business Corporations Act (Ontario) and is wholly owned by the Province of Ontario. At December 31, 2009, OPG’s electricity generating portfolio had an in-service capacity of 21,729 megawatts. OPG’s electricity generating portfolio consists of 3 nuclear generating stations, 5 thermal generating stations, 65 hydroelectric generating stations, of which 4 are being redeveloped, and 2 wind power turbines.

OPG’s perspective on biodiversity In 1995, Ontario Power Generation’s (OPG) predecessor, Ontario Hydro, became one of the first utilities in North America to address formally biodiversity conservation through policy development and implementation. Created in 1999 following the break-up of Ontario Hydro, OPG has carried on and enhanced this policy for the past 10 years and will continue to do so going forward. The policy is responsive to the Convention on Biological Diversity, the Canadian Biodiversity Strategy (Environment Canada 1995), Ontario’s Biodiversity Strategy (2005), as well as Canada’s Species at Risk Act and Ontario’s Endangered Species Act (2007). It has been well recognized and supported by several external groups including citations in publications from Canada’s Federal Biodiversity Convention Office, the World Business Council for Sustainable Development and the Electric Power Research Institute. The policy commits OPG to planning and managing its activities in a manner that encourages, within a regional context, the continued existence of native species, and the ecosystems upon which they depend. The policy builds upon the following four R’s for biodiversity conservation: • Retain (i.e., protect) habitats identified as areas of regional, provincial or national significance. • Restore habitats degraded by OPG operations. • Replace lost habitats where ecologically and economically feasible. • Recover species at risk. Managing species at risk represents the highest priority for OPG’s biodiversity management programs. All of the preceding actions are in addition to ongoing pollution abatement efforts. OPG’s Environmental and Biodiversity Policies outline their commitment to the environment, sustainable development and to the conservation of biological diversity.

38 Canadian Business and Biodiversity Program – 2010 Corporate Case Studies

The policy is responsive to the fact that the generation of electricity can have adverse effects on species and their habitats. Examples include the direct loss of habitat caused during the construction and on-going maintenance of generation facilities, changes in water flow regimes for the generation of hydroelectric power, indirect effects caused by the fragmentation of habitats, or from various air and water emissions, including acid gas and greenhouse gas emissions from thermal generation.

OPG’s biodiversity policy Rationale OPG’s focus is on the efficient production and sale of electricity from its generating assets, while operating in a safe, open and environmentally responsible manner. OPG recognizes that its effects on nature do not stop at the boundaries of its plants, nor do its efforts to protect and restore nature. Accordingly, OPG has invested in significant habitat protection and restoration efforts in the communities where it operates and in strategic locations across southern Ontario, including some of the most biologically imperilled regions in Canada. OPG’s carbon sequestration and biodiversity management program is an example of that effort. This woodland habitat restoration program links the need to restore habitat for forest wildlife at risk in the highly fragmented regions of southern Ontario, with the need to sequester carbon, as an offset to OPG’s coal-fired generating stations’ greenhouse gas emissions. It addresses an important biodiversity issue, while also addressing a climate change mitigation and adaptation issue. The intent is to work with conservation partners to help reconnect the fragmented landscape and to enhance the resiliency of woodland ecosystems to withstand anticipated climate change impacts.

The Biodiversity Policy and its programs are managed by an Environmental Management System (EMS) that is registered though the International Organization for Standardization (ISO) 14001 specification. The EMS is audited both internally by formally trained auditors and externally by certified ISO 14001 Registration auditors in order to retain its registration. It ensures that biodiversity issues are not simply an “add on”, but rather, are addressed as an integral component of on-going operations. Site biodiversity plans are further independently certified and audited through the US-based Wildlife Habitat Council. The key elements of the Biodiversity Policy include: • inventory, identification and prioritization of species at risk and sensitive habitats that may be affected by its operations; • development, implementation and monitoring of management plans to ensure sensitive species and habitats continue to flourish; • annual review and assessment of performance against established objectives. Implementation of the policy at the management level has resulted in the development of biodiversity management plans for all of OPG nuclear and thermal plants, as well as for their hydroelectric plant groups. Efforts have been made to restore habitats for species that may be declining regionally, thereby preventing other species from

becoming “at risk”. This is consistent with the Stewardship efforts under the federally proposed Species at Risk Act. Example initiatives include: • water flow and habitat management for fish spawning, migration and fish passage issues, with notable emphasis on Sturgeon, American Eel and Brook Trout; • woodland and wetland habitat restoration; • the establishment of tall grass prairie, a highly threatened ecosystem type, on appropriate sites; • the management of a critical wetland complex at Lennox which supports one of the largest Black Tern colonies on the Great Lakes. Other biodiversity conservation initiatives supported by OPG include: 1.

Ducks Unlimited’s wetland habitat restoration at Pigeon Marsh, located along the northeast shoreline of Lake St. Clair and Second Marsh, located on the shores of Lake Ontario, near Oshawa. The 64 hectares Pigeon Marsh is a part of one of the most important wetland complexes on the Great Lakes.

Nature Canada’s Important Bird Areas (Niagara River), which is part of an international program to identify and manage areas of exceptional importance to the conservation of birds. The Niagara River, the site of our largest hydroelectric station complex, is an internationally recognized important bird area.

World Wildlife Fund Canada’s ecotoxicology program and its Conservation Science and Solutions Fund, which supported the identification, protection and restoration of priority sites for biodiversity conservation within Ontario.

Planting of more than 3.8 million native trees and shrubs on more than 1,800 hectares of land since 2000 (2009 data). These plantings have occurred in strategic locations to help “reconnect the fragmented landscape” that characterizes much of southern Ontario. This on-going program links woodland habitat restoration for biodiversity with climate change mitigation and adaptation as an offset to our fossil plant greenhouse gas emissions.

Employee involvement, as well as partnerships with a variety of external conservation organizations, such as Ducks Unlimited Canada, and the Conservation Authorities of Ontario, among others, has been successfully undertaken at various projects, both on and off site. These partnership efforts help to ensure that community interests are recognized and addressed. It has the added advantage of building trust and company image.

Canadian Business and Biodiversity Program – 2010 Corporate Case Studies 39

Ontario Power Generation Ontario Power Generation biodiversity policy

The key issues in implementing the Policy were: 1.

Building trust: industry’s commitment to the conservation of biological diversity is often regarded with scepticism by many in the environmental community. Building trust with various stakeholders is a critical step to achieving success. Working collaboratively on issues of mutual concern can help to build positive relations. Independent certification and audits of OPG management plans by the Wildlife Habitat Council have also helped build credibility.

Partnerships: Partnerships with respected environmental organizations are key to making meaningful progress on biodiversity conservation issues. They can serve to leverage the funding, resource and expertise capabilities of each organization, thereby enabling greater conservation advances than any single organization could otherwise achieve.

The main problems and difficulties encountered in implementing the policy were: • availability of biodiversity data bases; –– Success is largely dependent upon the availability of credible and

accurate data. –– Field inventories and monitoring are necessary for the management

of significant sites.

• restoration and management needs; –– Information on the specialized needs of rare species is often

unknown. –– It is difficult to devise effective strategies or management plans for

rare species.

Communication/Education OPG has partnered with Ontario Nature, Bruce Trail Conservancy and Local Enhancement and Appreciation of Forests (LEAF) to help raise public awareness in various Ontario cities of the need to conserve biodiversity and to inform communities about collective biodiversity activities. These partnerships provide hands-on opportunities for families to experience nature and to learn about our dependence upon healthy ecosystems. These biodiversity events are promoted through advertising and through the web (OPGBiodiversity.ca). OPG is also a participant and invited member of the Ontario Biodiversity Council, Biodiversity Education and Awareness Network and several endangered species recovery teams.

40 Canadian Business and Biodiversity Program – 2010 Corporate Case Studies

Ontario Power Generation biodiversity policy Ontario Power Generation

Outcomes Benefits Biodiversity Programs are in place to address any known threats to biodiversity, as well as any enhancement opportunities, both on and off OPG sites. The issue of biodiversity is no longer a mystery to operations managers, nor a cosmetic add-on program. It is now an on-going program that has been effectively integrated into operational activities and managed through the company’s environmental management systems.

Economics It is difficult to monetize the economic value of environmental programs but the loss of community support can, conversely, spell the demise of operations and loss of “community licence to operate”.

Lessons learned 1.

Sustain the effort: Successful programs require a sustained effort. Ecosystems are not restored overnight. Outside organizations are skeptical and probably will not get involved if they feel that there is not a long-term commitment to the program.

Community goodwill and positive brand image: Conservation efforts need to be in tune with community conservation priorities. The credibility of a program is immediately enhanced through association with respected conservation organizations. Earning this support takes time and genuine, sincere effort from wellconceived programs that resonate with community values.

Link projects to key conservation issues of importance to the community: Successful programs need to be linked to key biodiversity conservation issues, programs and priorities with those of the conservation community. Viable partnerships can be achieved when the company objectives and mission align with those of conservationists.

Management’s benefits OPG’s biodiversity programs have garnered the support of many environmental organizations and have helped the company to earn its unwritten “community license to operate”. The formal recognition of OPG achievements through numerous external awards has built pride and credibility and represents a consistent “good news story” for the organization. Pride, broader community support, and ever increasing concerns about biodiversity losses, make these programs increasingly relevant and needed. The benefits are many: biodiversity conservation, reduced ecological footprint, enhanced “license to operate” and enhanced employee morale. Employees have become engaged and feel they are leaving a positive legacy beyond the straight services and products delivered by their business. OPG’s biodiversity programs represent a win for nature, a win for public education, a win for community relations and consequently, a win for the company. For a modest investment, they have done much to build a positive reputation amongst environmentalists and government regulators.

Contact information Steve Hounsell Senior Advisor, Corporate Sustainable Development Group 416-592-2766 steve.hounsell@opg.com Ontario Power Generation 700 University Avenue Toronto, Ontario M5G 1X6 Canada

www.opg.com

Canadian Business and Biodiversity Program – 2010 Corporate Case Studies 41

Industry: Food and beverage Duration: 2007 - ongoing Location: Township of Puslinch, Ontario Case study type: Management and policy

Biodiversity monitoring Nestlé is a multinational packaged foods company founded in 1922 and headquartered in Vevey, Switzerland, with a market capitalization of over $93 billion Canadian. It employs approximately 3,500 people in Canada who work in the company’s more than 20 facilities, including manufacturing, sales, and distribution centers. Nestlé Waters Canada is Canada’s largest manufacturer and distributor of bottled water and operates 2 bottling plants across Canada. Other than bottled water, Nestlé product lines include coffee, juice, ice cream, baby food/formula, healthcare nutrition, pet care, confectionery and pharmaceuticals.

Nestlé Waters Canada’s perspective on biodiversity Nestlé Waters Canada has long been committed to leadership in environmental performance and to environmentally sustainable practices across all business areas. As a leader in the beverage industry, Nestlé Waters Canada understands it has a special responsibility to minimize its ecological footprint. The Nestlé Policy on the Environment was first established in 1991 and has ensured that preserving natural resources and minimizing waste are an integral part of the day-today activities in all Nestlé operations worldwide. Environmental performance indicators show continuous improvement with verification of performance data and factual information undertaken by a third-party auditing company.

measurement of environmental performance indicators covering water consumption and wastewater generation. Appropriate training reinforces employees’ awareness and skills, and contributes to their environmental commitment. The Environmental Directives outlined in the NEMS are a set of standards that: 1.

Spell out Nestlé’s commitment to good environmental practices;

Provide awareness and set minimum requirements for adherence to local regulations;

Help set up an efficient environmental management system (Directives Chart) by defining three progressive levels of performance;

Form the basis of continuous improvement as defined by NEMS;

In 1996, the Nestlé Environmental Management System (NEMS) was created and implemented throughout the Company. The NEMS is based on the Nestlé Environmental Policy and the International Chamber of Commerce’s Business Charter for Sustainable Development. The implementation of NEMS has led to:

Ensure compliance with the Nestlé Minimum Technical Requirements.

• a systematic approach that ensures respect for Company policy and legal requirements;

Basic Performance Level: requires establishing a system to identify and define program criteria for a factory, as found in the NEMS.

• the continuous improvement of Nestlé’s environmental performance, including water resource management;

Progress Level: requires evaluating conditions related to the program criteria, then determining the need for and implementing any necessary work.

Performance Level: requires analyzing results, reporting progress and conducting training with factory personnel to ensure ongoing program compliance.

• an expansion of mutual trust with consumers, government authorities, and business partners through open communication and an on-going record of environmental improvement, especially in the water protection area. Continuous improvement, as emphasized by NEMS, relies on clear objectives and action programs at global and local levels. Both water conservation and wastewater reduction are targeted as objectives. Actual progress in meeting objectives is monitored through periodic

42 Canadian Business and Biodiversity Program – 2010 Corporate Case Studies

The Directives Chart is a benchmark comparison among factories across three progressive levels of Environmental Performance:

All requirements at the first level must be fully met before a factory can begin pursuing the next level, until it attains the highest Environment Performance level. Nestlé will continue to develop its environmental management system with a focus on: • maintaining continuous improvements in environmental performance; • encouraging business partners to apply environmental management systems aimed at ISO 14001 certification in their own operations; • communicating reliable environmental information to consumers in a meaningful and straightforward way. When local legislation on water protection is non-existent or insufficient to meet its environmental commitments, Nestlé’s Environmental Minimum Technical Requirements apply. These company standards are minimum requirements that must be followed for water management and protection as well as for other environmental areas. In 2006, Nestlé marked the tenth anniversary of NEMS which has served as a solid basis for continuously improving environmental performance. The NEMS is used to track the key environmental performance indicators over time for nearly 100 bottling facilities worldwide. In addition, Nestlé aims to have 100% of its manufacturing plants certified by the end of 2010. Nestlé’s initiatives aim to improve the environmental performance of its products along their entire life cycle. These include sourcing sustainable raw materials, reducing energy consumption, minimizing air emissions and the footprint of product transportation. Nestlé has initiated a pilot with Schenker, an international logistics company, to evaluate the effect of different types of transport, distances driven and fuel type used. Through internal research and development, Nestlé has made significant advances in the environmental impact of packaging. Management of by-products and waste at the end of product life cycle is a major concern.

Nestlé Waters Canada is increasing its waste eco-efficiency by reducing the quantity of by-products produced and by focusing on recycling. Its new PET (polyethylene terephthalate) beverage containers are either 100% recyclable or are entirely made of recycled PET. When recycled, they can become carpeting, automotive parts, toys and clothing. Nestlé and its industry partners currently participate in funding Canada’s municipal recycling infrastructure across the country – infrastructure that also collects glass, paper and aluminum. In 2008, Nestlé and its industry partners introduced Canada’s first public spaces recycling program in Quebec, they recently introduced a similar program in Manitoba and completed a successful pilot program in Ontario, in 2009. Nestlé will maintain long-term environmental sustainability at the heart of its business operations. This approach of applying business practices over the long-term will return greater shared value to its worldwide community.

Biodiversity Monitoring Rationale Over the past few years the consumption of water in Nestlé Waters North America manufacturing operations has decreased by 28% while production has grown by 76%. The Company aims to reduce the amount of water used per kilo of food and beverage produced and to ensure that waste-water discharge is clean and managed responsibly within the environment. It aims to promote and share water conservation methods with other users, such as agriculture, and the local community. Nestlé Waters Canada collects data both on and off-site to monitor surface and ground water. It also conducts a biological monitoring program looking at biodiversity, including fish, vascular plants, amphibians, reptiles, birds and mammals in the areas of its operations.

Canadian Business and Biodiversity Program – 2010 Corporate Case Studies 43

Nestlé Waters Canada Biodiversity monitoring

Description In 2007, Nestlé Waters Canada initiated a biological monitoring program for its water bottling plant and property in the Township of Puslinch, Ontario. The purpose of this monitoring program is to: 1.

characterise existing aquatic, wetland and terrestrial resources;

document long-term changes to the structure and composition of the site’s biological resources.

The biological monitoring program complements physical resource monitoring programs currently in effect and exceeds the Ontario Ministry of Environment (MOE) biological monitoring requirements. This program will provide information on: • ecological land classification; • fish and fish habitat; • amphibians and reptiles; • birds; • mammals; • vascular plants. The biological monitoring program is based on a comprehensive baseline inventory of the site’s aquatic, terrestrial and wetland resources. The baseline inventory was prepared using available background information and data obtained through field investigations. In addition to the baseline biological inventory, a series of monitoring stations were established to facilitate long-term comparative analyses. The initial steps of the monitoring program in 2008 were to: • develop and implement standardized monitoring protocols for assessing changes to aquatic, terrestrial, and wetland resources at the site over time;

44 Canadian Business and Biodiversity Program – 2010 Corporate Case Studies

• collect and document key data relating to aquatic, terrestrial, and wetland resources to fill in the gaps of currently available data; • prepare mapping and data tables summarizing baseline biological conditions; • identify future monitoring requirements.

Fauna The wildlife monitoring program documented the presence of 60 animal species on Nestlé property, including 40 species of birds, 12 species of fish, 6 species of amphibians and reptiles and 2 species of mammals. Wildlife monitoring programs consist of night amphibian call surveys, using the Bird Studies Canada Marsh Monitoring Program protocols for surveying marsh birds, amphibians and their habitats. Breeding bird surveys were completed based on protocols established for the Ontario Breeding Bird Atlas for point counts, the Forest Bird Monitoring Program and techniques developed for monitoring songbird populations in the Great Lakes Region. Fish and fish habitat surveys were conducted on the onsite reach of Aberfoyle Creek. The habitat survey was a mapping exercise that consisted of walking the creek and noting the presence/absence of instream vegetation, logs and woody debris, substrate, bank conditions, potential sites for spawning redds (nests) and physical attributes of the stream such as width, depth, pools and riffle. Fish species were documented on the onsite reach of the Aberfoyle Creek using an electrofisher. All monitoring and survey methods used for the collection of data are based on established and recognized sampling protocols. Since 2008 was the first monitoring year, all information collected will be used to establish a baseline for comparative analyses in future years.

Biodiversity monitoring Nestlé Waters Canada

Flora Terrestrial vegetation communities were delineated through interpretation of 2006 colour digital aerial photography with the information digitized in a GIS system to produce base maps. These vegetative communities were classified according to the Ecological Land Classification System for Southern Ontario. Data on a variety of biophysical parameters were also recorded. Ground surveys documented the various plant species present on the individual sites and a running checklist of all vascular plant species observed was maintained. The status of the individual plant species was confirmed using the most current status lists available. Permanent vegetation plots for long term monitoring were also established. Wetland mapping delineated wetland type and dominant plant species/community on existing wetlands. Permanent sampling plot locations were established and selected to correspond with areas of groundwater discharge. These sites were selected as it was felt that monitoring vegetation in these types of environments could be used to reveal changes in vegetation associated with flow rates and normal seasonal fluctuations of water levels. A total of 191 species of vascular plants were found on the Nestlé property.

Future surveys The information collected from the 2008 initial year surveys and monitoring programs will be used, along with future data, to plan and modify programs in ways that include: • survey timing, types and amount of information collected; • change protocols as required; • ways data are stored and analyzed. The information gathered over the years will enable Nestlé to identify environmental changes due to its operations. This information will also provide Nestlé the opportunity to adapt its planning and operational strategies to modify operational practices that appear to be having negative environmental impacts.

Outcomes Benefits Economic Recognition of the continuous improvement of environmental performance by Nestlé has resulted in the following:

• Innovest increased its rating on “Nestlé’s environment, social and governance (ESG) performance” to AAA, its highest possible score; • named one of the top 100 sustainable companies in the world by Innovest Strategic Value Advisors and Corporate Knights Inc.; • received the SAM (Sustainable Asset Management) Gold Class ranking.

Biodiversity Imbedding a biodiversity monitoring program into its corporate strategies will help Nestlé identify changes in biodiversity on their properties and allow Nestlé to modify operational practices if needed.

Lessons learned Reliable background data is critical in providing an historical context in biodiversity monitoring. If background data is not available, a “point in time” must be established on which to evaluate future data. It is also difficult in some instances get a consensus on the science relating to specific biological issues. Any information gathered and analyzed must be done in a fashion that will allow for informed quick decisions on risk assessment for both biodiversity and the operation.

Impact on company As one of the world’s largest food and beverage corporations, Nestlé commands wide brand name recognition and significant influence with consumers, businesses, and governments. This puts Nestlé in the position to influence not only its suppliers’ environmental performance, but also to promote environmentally responsible practices to other businesses and consumers. The implementation of environmental standards has also resulted in improved industrial competitiveness.

Contact information Dennis German, P.Geo. Natural Resources Manager – Canada 519-763-9462 dennis.german@waters.nestle.com Nestlé Waters Canada 101 Brock Road South Guelph, Ontario N1H 6H9 Canada

www.nestle.ca

• awarded “Best in Class” status in the Dow Jones Sustainability Index, with the highest possible score for environmental policy, performance and reporting;

Canadian Business and Biodiversity Program – 2010 Corporate Case Studies 45

Industry: Household and personal care products Duration: Two years, started in January 2008. Supply from the cooperatives will continue beyond the project end. Location: South Morocco (Souss region) Case study type: Supply chain

Responsible sourcing of argan Oil L’Oréal is a world leading cosmetics company created in 1909 in Paris, France. It employs 67,500 people in 130 countries and operates 42 factories and 63 warehouses around the world. In 2008, the company invested approximately $763 million Canadian in Research and Development. The company’s prestigious brand portfolio of over 25 brands encompasses all aspects of beauty. L’Oréal Canada was founded in 1958 and is a wholly-owned subsidiary of L’Oréal Group. The company employs 1,200 people and in addition to its headquarters in Montreal, it operates a logistics center, a training center and an industrial facility which manufactures professional hair care products.

L’Oréal’s perspective on biodiversity

In 2005, L’Oréal developed the Raw Material Sustainability Assessment Framework to assess the impact of raw materials on five fronts:

Impacts on biodiversity

• consumer and employee health;

L’Oréal’s activities have different impacts on biodiversity along the product lifecycle:

• environmental protection;

• The sourcing of vegetable raw material may have adverse effect on the conservation of sensitive species if not managed.

• fair trade;

• The major impacts on the environment of industrial activities at the facility level are water and energy consumption and waste generation. • After use, the products component may have impacts on biodiversity in terms of ecotoxicity if not properly selected.

L’Oréal’s biodiversity management policy L’Oréal uses an integrated approach to identify the potential impact on the environment (including biodiversity) of its raw materials throughout the product life. Since 2005, the company has put a high premium on biodiversity as part of its Sustainable Innovation commitments in line with the objectives of the Convention on Biological Diversity and is committed to: • reducing the use of non-renewable resources by increasing the proportion of ingredients from plant origins, which is currently 40% by weight; • identifying biodiversity issues in the supply chain of ingredients from vegetable sources and implementing appropriate action to minimize negative impact; • participating in the development of tools to understand, manage and monitor biodiversity; • promoting the use of renewable raw materials which are most considerate of biodiversity; • extending this approach to all the company brands, including recent acquisitions. 46 Canadian Business and Biodiversity Program – 2010 Corporate Case Studies

• biodiversity conservation; • respect for human rights. The framework is based on collaboration with suppliers to define action plans to minimize the impact of raw materials throughout their life-cycle. L’Oréal’s objective is to assess the several thousand raw material references used in the manufacturing of cosmetic products. In 2008, the tool was deployed on 98% of the perfumes used as raw materials. L’Oréal has implemented operational tools and measures to assess and mitigate biodiversity issues arising from the sourcing of vegetable ingredients including: • an internal database related to plants used in the manufacture of products that allows an initial screening of issues related to the supply of an ingredient in terms of biodiversity conservation, fair return to communities, and effects on society; • a supplier questionnaire to identify the performances of substances according to the criteria set out in the Sustainability Assessment Framework, especially biodiversity, if critical issues are identified by the internal database. This internal assessment of the vegetable substances sourcing chain is carried out by L’Oréal Research and Development department. If needed, it can be completed by a third party review to clarify specific issues and recommend remedial actions. This assessment is applied to all currently used and newly registered vegetable ingredients for all L’Oréal subsidiaries, including new acquisitions.

L’Oréal is also committed to respecting the rights and interests of local communities in terms of access to raw material sources, acknowledgement of their traditional know-how, and shared benefits through “fair trading” practices. The company has established a code of conduct applied by its employees and submitted to its suppliers that includes: • observing a fair return to communities; • ensuring traceability of raw materials; • protecting biodiversity; • encouraging local community autonomy ofr business development. L’Oréal has developed a procedure designed for its own and its suppliers’ patents to assess the social acceptance of patent registration and the risk of biopiracy. This is done within the context of the intellectual property regime and to ensure the interests of the holders of traditional knowledge of the use of natural extracts are understood and respected. In 2006, L’Oréal checked its entire portfolio of patents and now conducts a systematic, preliminary study regarding the use of raw materials linked to all new patent applications and requires its suppliers’ patents to observe the same principles. In 2008, the company decided not to apply for five patents which failed to comply with this procedure.

Responsible sourcing of argan oil Rationale For L’Oréal, biodiversity conservation and the secure sourcing of natural ingredients is key to continuing access to innovative materials and long term business. The sustainable sourcing of argan oil is a L’Oréal initiative contributing to the Convention on Biological Diversity objectives and responds to stakeholders’ expectations in line with the company’s Corporate Responsibility strategy. After having been a mainstay for Berbers in southwestern Morocco for centuries, argan oil was widely recognised in the 1990s for its culinary, cosmetic and even medicinal virtues and is now one of the most expensive edible oils in the world. Because of its nourishing, restructuring and cosmetic properties on skin and hair tissues, it is a key ingredient used in 7 of the 25 brands of L’Oréal products sold in Canada and sourced by L’Oréal Canada’s factory through one main supplier, Cognis Care Chemicals’ active ingredients business Laboratoires Sérobiologiques (LS; a division of Cognis France). The program for sustainable sourcing of argan oil was set up to address the following needs:

• to improve the quality and the traceability of the ingredients and to ensure the compliance of local practices with L’Oréal and Les Laboratoires Sérobiologiques’ responsible supply policy; • to clear suspicions related to the respect of local traditional knowledge raised by international stakeholders about granted patents concerning two new cosmetic active ingredients from the argan tree developed by Les Laboratoires Sérobiologiques (leaves and cake, a by-product of the oil extraction process).

Canadian Business and Biodiversity Program – 2010 Corporate Case Studies 47

L’Oréal Canada Responsible sourcing of argan oil

The objective of the program is to assess strengths and weaknesses of the existing supply system of argan oil and to propose relevant and realistic measures to: • ensure the argan oil extraction poses no harm to local biodiversity; • guarantee fair social and economic benefit sharing of the argan oil production with local communities; • establish the actual novelty of the patented uses of these raw materials (argan cakes extract and argan leaves extracts) compared to the traditional use of the argan products and ensure that the patents granted do not limit access of indigenous communities to argan products and derived substances; • help monitor good collection and processing practices and increase local control over the management of the local biological resources.

Description The argan tree (argania spinosa (L.) Skeels) is a species endemic to southern Morocco, largely found on the Souss plain bordering the Sahara desert. It is the second largest forest ecosystem in Morocco covering about 2% of the country surface and providing habitat for a wide variety of wildlife species.

In 1998, UNESCO classified the argan forest as a Biosphere Reserve to protect the remaining forest and to assist in reforestation efforts. Due to this status, 2% of the Argan Forest Biosphere Reserve has been protected from human activity to date. L’Oréal has developed an agreement with its supplier, Les Laboratoires Sérobiologiques and Yamana, a local development NGO to: • secure the argan oil supply for L’Oréal; • establish and test the basis of a framework for sustainable argan oil production that could expand to the whole argan economy of Morocco and to other vegetable raw materials for L’Oréal. There are 500 women working in 6 production cooperatives, one extraction and oil facility and 15 preparation cooperatives. Shipping is organized through a commercial organization (Groupement d’intérêt économique) who represents 1% of argan oil activities in Morocco. Yamana is working locally to assist the cooperatives in the implementation of action plans to improve environmental, social, technical and economical aspects in the harvesting of argan fruits and leaves and in the production of the oil. Through engagement with local stakeholders, Yamana is identifying actions and programs to:

The argan forest ecosystem, threatened by over-exploitation, soil erosion, desertification and changes in agriculture practices, is experiencing an estimated annual decline of 1%. The forest acts as a natural barrier against the advance of the desert and is instrumental in preventing erosion and protecting water resources. Argan products represent a major income for about 6% of the rural population and up to 90% of the economy in areas of native argan stands.

• determine methods for benefit sharing with local communities, in particular wages, working conditions and production processes;

The argan oil is extracted from the fruit seeds and from the leaves which are picked manually by women from local communities and processed in the local production and preparation cooperatives.

• develop the economic autonomy of local communities to deliver a wider range of high quality products;

• improve the traceability of substances, ensuring the quality of the ingredients and the compliance of harvesting and industrial processes with social and environmental practices; • assess the impacts of the patent on communities and ensure that the local traditional knowledge related to this resource is respected;

• identify and address other needs related to the sustainable livelihoods of the local community including healthcare, education, and preserving culture and traditional knowledge.

Stakeholders and roles L’Oréal’s responsible supply policy rests on working closely with its network of suppliers. The development of this fair trade supply chain of argan oil involves the supplier, Les Laboratoires Sérobiologiques and a local development NGO, Yamana, who is helping develop relationships with local communities. The project is coordinated by the L’Oréal Research & Development Division through quarterly reports and meetings with the NGO and the supplier, and monthly follow-up reports with the NGO.

48 Canadian Business and Biodiversity Program – 2010 Corporate Case Studies

Responsible sourcing of argan oil L’Oréal Canada

Communication The program and its successes are promoted in a variety of ways, including: • the 2008 Sustainable development report and internal newsletters; • conferences and press kits from L’Oréal brands for some of the products containing the argan oil.; • presentations of the program in professional meetings; • product information for two products using argan oil and bearing a double organic and fair trade certification; • conference and press release.

Outcomes Benefits Biodiversity The development of additional cosmetic actives from argan tree leaves and from the cake, plus the observance of strict harvesting guidelines monitored enhancing the traceability of raw materials, has contributed to optimizing the use of local natural resources and to limiting damage to the argan trees. Beside government efforts to protect the argan forest ecosystem, the increased market value of products produced from argan trees has fostered community involvement and ownership of the resource as well as dramatic changes in behaviors, since argan wood is no longer used as charcoal thus contributing in a concrete way to its conservation. Finally, the project has contributed to secure the recognition and respect of traditional knowledge and the access to the resource for local communities.

Economic and social Working conditions of women in the cooperatives have improved through fairer wages and through the establishment of management tools (i.e., technical guides and training) which translates into better environment, health and safety and economic performances. The development of commercial activities of diversified argan products with other clients has increased the capacity and revenue building of the cooperatives. It is hoped that by the end of the two year program, knowledge transfer will enable local production methods to meet international industrial standards and enable local sustainable livelihoods and self-sufficiency.

Lessons learned This project only covers approximately 1% of the argan forest ecosystem with the majority of other industrial operations in the area uncontrolled, so it is difficult to assess its overall impact on the conservation of the forest. Close follow-up is needed to ensure compliance with social and environmental practices over the long term. The program has shown that expectations from stakeholders at both an international and local levels can be different. While international stakeholders were urging the company to engage with local stakeholders to assess the impacts of patents on their communities, local priorities appear to be more focused on capacity building. Local stakeholders may not be sufficiently informed on patent issues to identify potential impacts on their communities and additional information is needed to enhance local comprehension of economical mechanisms. The program also revealed the challenge of combining the timeframe needed for long term changes in local practices and customs with short term priorities of an international cosmetic market.

Changes in company’s practices This project has allowed the company to develop a new know-how in project engineering processes involving different stakeholders from different cultures and background, at both a local and global level. It will be used as a reference to establish in-house standards for an up to date generation of fair trade sourcing of other vegetable ingredients. Some similar projects on other natural ingredients are already on progress.

Contact information Teresa Menna Responsable Communication corporatives 514-287-4613 tmenna@ca.loreal.com L’Oréal Canada 1500 University Street Montreal, Quebec H3B 3X2 Canada Francis Quinn Sustainable Development Director + 33 1 47 56 70 00 fquinn@dgc.loreal.com L’Oréal 41 rue Martre 92110 Clichy, France www.loreal.ca

Photos: © Laboratoires Sérobiologiques, Division de Cognis France

Canadian Business and Biodiversity Program – 2010 Corporate Case Studies 49

Industry: Household and personal care products Duration: 2009 – September 2010 Location: Canada and United States Case study type: Species rehabilitation

Everyday Wildlife Champions Procter & Gamble Co. (P&G) is a Fortune 500 multinational corporation headquartered in Cincinnati, Ohio. Four billion times a day, P&G brands touch the lives of people around the world. P&G markets approximately 300 brands of consumer products in roughly 180 countries. It is a global company that employs approximately 135,000 people in 80 countries with more than 2,000 in Canada. P&G is a leading consumer packaged goods company with roughly $80 billion in annual global sales of products ranging from beauty and grooming, health and well being to household care under brand names such as Gillette®, Crest® and Dawn®. P&G is credited with many business innovations including brand management and the soap opera.

Procter and Gamble’s perspective on biodiversity

• Ensure products, packaging and operations are environmentally safe.

Impacts on biodiversity

• Share experiences and expertise and offer assistance to others who may contribute to progress in achieving environmental goals.

Procter and Gamble’s (P&G) operations are varied and dependent on a broad array of natural and man-made resources. Impacts on biodiversity can range from direct impacts due to the operational footprint to indirect impacts from emissions, outsourcing of raw materials and energy consumption to product transportation and afterlife. P&G recognizes that sustainability is at the heart of its business model, and that keeping sustainability at the core of the company business fuels innovation and strengthens results.

Procter & Gamble’s biodiversity management policy P&G recognizes that environmental progress is a never-ending journey of continuous effort and improvement. P&G has had an Environmental Science Organization (ESO) since the late 1960’s that includes scientists with specialization in environmental toxicology, microbiology, ecology, environmental engineering, analytical chemistry, microbial ecology, environmental modeling and life-cycle assessment for all of its operations worldwide. One important task of the ESO is to develop and continue improving the assessment tools for environmental risks at all its sites worldwide. P&G continually strives to improve the environmental quality of products, packaging and operations in its operations globally. To carry out this commitment, it is P&G’s policy to:

50 Canadian Business and Biodiversity Program – 2010 Corporate Case Studies

• Support the sustainable use of resources and actively encourage reuse, recycling and composting.

• Meet or exceed the requirements of all environmental laws and regulations. P&G has operating policies, programs and resources in place to implement its environmental quality policy. It cooperates with governments in analyzing environmental issues and developing cost-effective, scientifically based solutions and standards. This is accomplished by continually assessing environmental technology and programs and monitoring progress toward environmental goals. It develops and uses state-of-the-art science and product life cycle assessment, from raw materials through disposal, to assess environmental quality. P&G seeks to establish and nurture open, honest and timely communications and strives to be responsive to concerns. P&G provides consumers, customers, employees, communities, public interest groups and others with factual information about the environmental quality of P&G products, packaging and operations through means such as its website and packaging. To ensure every employee understands and is responsible and accountable for incorporating environmental considerations in daily business activities, P&G encourages, recognizes and rewards individual and team leadership efforts to improve environmental quality. It also encourages employees to reflect their commitment to environmental quality outside of work.

Supply chain One of the key ways resources can be conserved is to design highperformance and high-value products that use the least amount of materials possible – getting “more from less”. Concentrated laundry detergents and fabric softeners, high-performance/low-fiber paper towels and tissues are a few examples. P&G also works with its suppliers, such as wood pulp, through its wood pulp procurement policy, to help ensure that natural resources, such as forest ecosystems, are responsibly managed.

Wood pulp procurement P&G purchases wood pulp for tissue and absorbent hygiene products. While P&G does not own or manage forests, they recognize they have a responsibility through its procurement practices to ensure sustainability of the world’s forest resources. As such, P&G have a stated commitment to understanding the sources of its pulp fiber by: • ensuring transparency in sourcing;

• Do not obtain the wood from genetically modified tree sources.

• ensuring that sustainable forest management practices are used;

• Reflect P&G’s social values and support of universal human rights through work with local governments and communities to improve the educational, cultural, economic and social well-being of those communities.

• avoiding unwanted sources of wood; • working with stakeholders on stepwise increases in preferred certification schemes. P&G tracks and reports annually the amount of wood pulp it purchases from suppliers certified under each of the forest certification schemes. It uses independent third-party verification systems to ensure sustainable forest management and wood traceability as well as works with global multi-stakeholder organizations to develop tools and scientific methods to protect the values and ecosystem services that forests provide. P&G’s wood pulp procurement policy states it will purchase wood pulp from suppliers that: • Ensure the safety of forestry and manufacturing operations for employees and the environment. • Document that wood is legally harvested and that other legal requirements are met. P&G will not knowingly use illegally sourced wood fiber in its products. • Practice principles of sustainable forest management and continuous improvement in its own operations and in sourcing of wood, as verified by independent forest and chain-of-custody certification. • Do not obtain wood from High Conservation Value Forests. P&G supports multi-stakeholder efforts to develop information sources and tools that will help suppliers identify these areas on their own forestlands and in their procurement of wood raw materials from third parties.

• Do not source wood from conflict timber (timber that was traded in a way that drives violent armed conflict or threatens national or region stability). P&G ensures compliance with this policy through site visits, comprehensive surveys and research, required documentation, and independent third-party certification of sustainable forest management practices. P&G requires pulp suppliers to independently certify their operations for sustainable forest management. It also requires suppliers to provide auditable assurance that wood from sources not directly owned and managed by them is legally sourced and that harvest is conducted via sustainable practices. P&G has supported conservation efforts globally for many years. For example, in 1990 it donated more than 97,000 acres of wilderness that included ecologically important wetlands to The Nature Conservancy. In 1992, it created the P&G Seashore Foundation to provide ongoing financial support to the Conservatoire du littoral in France, which promotes the preservation of sea and lake shores and educates children on the importance of biodiversity. In Canada, one of their key efforts has been Dawn’s Everyday Wildlife Champions.

Canadian Business and Biodiversity Program – 2010 Corporate Case Studies 51

Procter and Gamble Everyday Wildlife Champions

Dawn’s Everyday Wildlife Champions Rationale According to the National Academies of Science, Engineering and Health, more than 25 million gallons of petroleum pollution enter North American waters annually. Every year thousands of marine wildlife are injured or killed as a result of this pollution. A drop of oil the size of a dime on a bird’s body or wings can damage their insulated layer of down feathers and lead to death due to freezing. Being prepared and properly equipped to handle oil spills is crucial to the success of saving wildlife. For over thirty years P&G has made it a priority to assist in wildlife rescue and relief efforts by providing support to rehabilitation centers like the Marine Mammal Center, International Bird Rescue Research Center and the Canadian Oiled Wildlife Rescue Academy. For 30 years, wildlife rescuers have used Dawn dishwashing liquid to gently remove oil and help save wildlife affected by oil spills. Dawn dishwashing liquid has been a vital tool to wildlife conservation organizations worldwide as it removes the greasy oil but is gentle on delicate feathers and skin of aquatic birds such as ducks, pelicans, gulls and egrets. Thousands of donated bottles of Dawn dish detergent have helped save more than 75,000 oiled birds and aquatic mammals. Since the mid-80s, Dawn began donating product as needed in the event of oil spills. During the Exxon Valdez oil spill in 1989, hundreds of cases of Dawn were used to help with the clean-up.

Description In 2009, Dawn continued its important contributions to wildlife rescue organizations with a new North American campaign that invites Canadians and Americans to become Everyday Wildlife Champions. The Everyday Wildlife Champions program is an effort to provide people the opportunity to become involved in everyday actions that help wildlife and provide them an opportunity to connect and communicate in a social forum. Everyday Wildlife Champions is an effort to encourage everyday action – big or small – to help preserve wildlife and unite individuals who share passion for the cause and take part in Dawn’s heritage – saving oiled birds/marine life from both natural and man-made disasters Many consumers today are looking for their daily purchases to mean more. Through the Everyday Wildlife Champions program, when consumers buy a bottle of Dawn dish washing detergent they have the option to go online to activate a donation using the donation code printed on the bottle. By activating this code Dawn will donate one dollar (up to $500,000 until September 30, 2010) to its wildlife conservation partners, The Marine Mammal Center and The International Bird Rescue Research Center, which devote time and resources to saving animals and habitats. To date approximately $360,000 has been raised of which more than $58,000 is from Canada. All contributions from this effort will benefit the programming and technology needed to help save marine wildlife.

52 Canadian Business and Biodiversity Program – 2010 Corporate Case Studies

Partnerships Dawn has a long-standing partnership with the Marine Mammal Center who is participating in this initiative. The Center combines animal rehabilitation with an on-site research lab and educational programming for the purpose of saving marine mammals and promoting ocean stewardship and collaborates with Canada on specific issues. Donations made available to the Center through the Everyday Wildlife Champions program will go towards programs including: live patient care, patient release, marine mammal health studies, an adopt-a-seal program, and marine science education programs which reach over 100,000 children and adults. Since 1975, the Marine Mammal Center has rescued and treated more than 14,000 marine mammals. The International Bird Rescue Research Center (IBRRC) has been helping birds around the world since 1971 with a mission to mitigate human impact on aquatic birds and other wildlife. The IBRRC has partnered with Dawn to save oiled birds for over three decades, and is participating in the Everyday Wildlife Champions program. Funding from this initiative will go towards supporting its vast volunteer network, the operation of wildlife hospitals to develop better treatments for aquatic life, as well as education programs and training for oil spill response.

Everyday Wildlife Champions Procter and Gamble

In 2006, Dawn entered into a three year partnership with Tri-State Bird Rescue and Research, Inc. to create the Canadian Oiled Wildlife Rescue Academy (COWRA). The mandate of COWRA is to educate and prepare wildlife rescue teams in the event of oil spills and has hosted yearly workshops across Canada to educate and prepare wildlife rescue teams for future oil spills.

Lessons learned

Dawn also donates its dish detergent to groups such as the Wildlife Rescue Association of British Columbia and Focus Wildlife, also a British Columbia-based organization that offers oiled wildlife emergency response services around the world. Focus Wildlife, with the support of Dawn, cleaned hundreds of oiled wildlife after the 2005 oil spill at Lake Wabamun, Alberta.

• meaningful and transparent partnerships;

Key points of a successful consumer driven campaign must include: • sincerity; • support of a meaningful cause that ties naturally into product benefit; • engaged consumers: people want to feel they are contributing and can actively make a difference; • open dialogue amongst consumers; • a meaningful goal with regular updates.

Communication A multi-channel cause campaign combines video (TV) advertising, packaging, shopper participation, a microsite and a Facebook Page to promote the program and its accomplishments. The Everyday Wildlife Champions Facebook page (www.facebook.com/DawnSavesWildlife) serves as a one-stop hub where wildlife-conscious people can interact, create awareness of personal wildlife events, and learn about environmental happenings across the country. Participants can also gain access to insightful interviews and rescue videos from the IBRRC and MMC, as well as news regarding other volunteer efforts and participation.

Outcomes Benefits Economic P&G has been ranked for 10 years running as one of the Global 100 Most Sustainable Corporations in the World by the Dow Jones Sustainability Group Index and was the recipient of the Financial Times 2008/2009 Social Innovation Award for its work in shaping the new world of sustainable and socially responsible enterprises.

Impact on company The development and implementation of a conservation initiative that allows consumers to be actively involved and openly express their views has helped create a high level of consumer trust and respect.

Contact information Victoria Maybee External Relations 416-730-4793 Procter and Gamble 4711 Yonge St. Toronto, Ontario, M2N 6K8 Canada

maybee.v@pg.com

www.pg.com

Biodiversity The incidence of wildlife impacted by the accidental release of oil is a problem, especially in coastal areas. The partnerships, funding and donated product by Dawn has and will continue to help offset this problem by: • providing funding and product needed to clean and rehabilitate oiled wildlife; • providing funding to facilitate training programs in cleaning oiled wildlife; • educating the general public on the issues of oiled wildlife; • providing opportunities for the general public to become involved in biodiversity conservation programs.

Canadian Business and Biodiversity Program – 2010 Corporate Case Studies 53

Industry: Metals and mining Duration: June 2009 – Jan 2010 Location: Baie-Comeau, Quebec Case study type: Management and policy

Ecosystem services review of an aluminum smelter in a biosphere reserve Alcoa is a world leader in the production and management of primary aluminum, fabricated aluminum and alumina combined, through its active and growing participation in all major aspects of the industry. The Company employs 63,000 people in 31 countries. Alcoa Canada employs 4,235 employees (3,603 in Quebec) and runs four plants with an annual production capacity of over one million metric tons of ingots, castings, billets and aluminum rods: Baie-Comeau, Bécancour (held at 25% by Rio-Tinto Alcan) and Deschambault smelters, as well as the Bécancour Rod Plant. The company also runs 13 transformation facilities in Canada and owns a monitory share of a hydropower facility in Canada.

Alcoa’s perspective on biodiversity Impacts on biodiversity Alcoa operations can affect biodiversity in several ways: • Alcoa mining activities for bauxite ore can have local impacts on biodiversity through disturbed land and habitat in and around the mine pit, including by its connecting roads and conveyors, disruption of stream flows and benthos, surface and ground water use, discharge of wastewater and solid waste disposal. • At production sites, biodiversity can also be affected by air emissions of materials such as fluorides, sulphur dioxide and particulates. Also, industrial operations in refineries to produce alumina from bauxite ore generate solid waste, called red muds.

Also, control and monitoring programs of emissions at all major sources of the smelters have been implemented to minimize the impacts on the environment. In particular, since 2003 the Baie-Comeau site has been investing in real-time monitoring devices of air emissions that led to a significant decrease in fluorides and particulates. Prior to constructing new facilities or expanding existing ones, Alcoa engages external consultants to conduct an environmental, social and health impact assessment to determine what effects the project has on the environment. Measures to minimize adverse impacts on ecologically significant ecosystems or species are identified and incorporated into the detailed design of the planned facilities. Particular attention is given to the conservation of rare, endangered, or threatened species.

• The use of hydroelectric facilities to generate power can also have effects on biodiversity. Alcoa has completed detailed studies of the effects of hydroelectric projects in southeastern United States and is committed to managing and operating all hydro facilities to minimize impacts on biodiversity.

One method Alcoa uses to gather biological information for the area of a planned Alcoa facility is the Rapid Assessment Program (RAP) from Conservation International (CI). Recent RAPs conducted for proposed Alcoa projects include the following:

Alcoa’s biodiversity management policy

• Ghana: Bauxite mining in the Atewa forest;

Biodiversity conservation is a key consideration for Alcoa in the planning for new or expanded operations, divestment of assets no longer operated, and the day-to-day management of owned lands.

• Suriname: Bauxite mining in the Lely, Nassau, and Brownsberg areas.

One of the objectives for Alcoa mining activities is to minimize the footprint of disturbed land by implementing a program of progressive land rehabilitation. Alcoa upholds a commitment not to explore or mine in World Heritage Sites and is committed to avoiding legally designated protected areas where strict nature conservation is the management objective.

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• Guinea: Refinery in the Boké prefecture;

By working with independent non-governmental organizations and a strong technical team, Alcoa helps ensure an open and objective assessment of the environmental impact of a proposed project while also building trust with the local community. One of Alcoa challenges is to measure its performance on biodiversity management. Unlike emissions and discharges or the use of resources, it is difficult to find a biodiversity metric that can be aggregated across diverse businesses.

To this end, Alcoa plans to initiate a requirement for all of its locations with substantive land holdings to develop biodiversity management plans. These plans will: • Identify the biodiversity values of the land, including sensitive habitats and presence of threatened species, in context with surrounding land; • Identify potential impacts, both positive and negative; • Develop a management plan based on the hierarchy of biodiversity mitigation measures—avoid, minimize, rectify, compensate; • Set and report performance against site-specific targets. During 2008, Alcoa commenced the rollout of biodiversity management plans, seeking advice from stakeholders and consulting with site personnel. The Ecosystem Service Review conducted at the Baie-Comeau site will serve as a basis for the site’s biodiversity management plan.

Ecosystem services review of an aluminum smelter in a biosphere reserve Rationale Alcoa’s Baie-Comeau smelter, created in 1957 was expanded on four different occasions between 1957 and 1991 and is currently producing 440,000 tonnes a year of primary aluminum. The smelter is located in the southern part of the ManicouaganUapishka World Biosphere Reserve designated in 2007, which covers an area of 54,800 km² in the northern part of the St. Laurent estuary. It includes eight different types of ecosystems including boreal forest, arctic tundra, salt pan and the St Laurent estuary, and is habitat for many different species of fauna (25 fishes, 45 mammals, 295 birds and 16 amphibians and reptiles). It is also home of the Innu community of Pessamit.

In the framework of the modernization project, Alcoa is carrying out an Environmental Impact Assessment (EIA) (although there is no legal obligation in this context) and is applying the Corporate Ecosystem Services Review (ESR) developed by the World Resources Institute (WRI) as a complementary approach. It is the first time Alcoa is using the ESR methodology. The objective is to assess the site dependence and impact levels on local ecosystem services, in order to anticipate and to plan how to address issues that might affect the company or the local ecology In the mid-term, this project could lead to the development of a standard practice for other companies located the Biosphere Reserve’s area of cooperation.

Description Corporate ESR is a methodology to provide guidance to managers to assess their company’s activities dependence and impact on ecosystem services, in terms of provisioning functions, regulating functions and cultural functions. The Alcoa project in Baie-Comeau is two-fold: • ESR for the planned Baie-Comeau modernized facility. This review has been carried out between June 2009 and January 2010. • Development of a combined approach integrating the EIA methodology together with the Corporate ESR that can be deployed throughout Alcoa facilities. Also, such an approach could benefit other businesses located in the Manicouagan-Uapishka World Biosphere Reserve. Alcoa used the services of a consultant to carry out the EIA and the ESR in parallel. The different steps of the ESR are as follows: 1.

Select the scope and the boundaries within which to conduct the impact and dependence assessment on ecosystems. The scope retained by Alcoa for this project is the Baie-Comeau modernized smelter in its 2015 configuration. Impacts and dependence related to aluminum ore alumina production, as well as electricity production from Alcoa’s suppliers have not been included.

Identify priority ecosystems services by evaluating the degree of the Baie-Comeau facility dependence and impact on 24 ecosystem services. Some of those services, such as water and air are already covered in the EIA; others need additional information collection and analysis to assess the level of dependence and impact (e.g., pollination).

Alcoa’s smelter is one of the 7 industrial activities operating in the area of cooperation of the biosphere reserve covering 43,315 km² (79%) of the reserve. The core area and the buffer zone respectively cover 3,023 km² (5,5%) and 8,463 km² (15.4%) of the reserve. The site imports alumina and produces aluminum through electrolysis, using two different technologies: prebaked anode (480 cells) and Söderberg (542 electrolytic cells). Under a $1.2 billion project, the latter electrolytic cells will be replaced by 2015 with higher performance ones in terms of productivity and environmental protection. The annual production will increase to 580,000 metric tonnes.

Canadian Business and Biodiversity Program – 2010 Corporate Case Studies 55

Alcoa Ecosystem services review of an aluminum smelter in a biosphere reserve

Analyze trends in priority ecosystem services. Assessment of the level of dependence and impact. Seven ecosystem services with a high level of dependence or impact were identified: freshwater, air quality regulation, global climate regulation, water purification and waste treatment, recreation and ecotourism and the ethical value of ecosystem services. The latter include in particular seven sensitive species (Atlantic Cod, American Eel, Barrow’s Goldeneye, Fin Whale, Blue whale, Pygmy shrew, Rock vole), and wild foods. The level of depence and impact varies among them, with air and global climate regulation being the most important ones. Identify business risks and opportunities that may arise due to the trends in priority ecosystem services. From the above list of priority ecosystem services, Alcoa has made a focus on global climate regulation as a top priority both because of the level of impact of GHG emissions generated by the aluminum production process, and the level of dependence the site has on climate change consequences. In particular, increased frequency and intensity of extreme weather incidents could modify the erosion rate and affect the water level in the dam supplying hydropower to the site. Develop strategies. Strategies have been and will be implemented both at the existing plant and within the modernization project to incorporate the findings of the ESR. For the modernization project, the environment criterion has been retained to prioritize and decide upon different options, based on the results of the EIA and ESR. In particular: 99 Industrial equipment and the future site layout have been

chosen to reduce the noise impact; 99 The future site footprint has been maintained to limit the size

of land impacted and one scenario was excluded because its water management system was impacting a second catchment basin;

56 Canadian Business and Biodiversity Program – 2010 Corporate Case Studies

99 In order to limit waste transportation (earth waste from

construction and solid waste from dismantling operations) a recycle program has been implemented to use material on the site during construction. Also, the site invested in a process to treat contaminated land in-situ, in order to limit transportation (the nearest facility being located at approx. 400 km from the site). 99 Process GHG emissions will be reduced thanks to the new

technology implemented. The use of larger boats to transport alumina will maintain the level of GHG emissions due to transportation despite the increased freight, thus reducing the ratio teq CO2 / tonnes alumina transported. 99 The surveillance of biodiversity which Alcoa is already carrying

out on pollutants-sensitive plants in the site’s surrounding, will be strengthened to include the monitoring of sensitive species in cooperation with scientists and expert consultants. To Alcoa, the ESR approach and the EIA method, when combined, allow a wider and more systemic understanding of the modernized facility impacts and dependence on ecosystem services. EIA focuses on business activity impacts on the environment whereas ESR enlarges the scope of analysis to business activity dependences on ecosystem services, therefore minimizing the risk of omitting significant issues.

Stakeholders and roles Alcoa has consulted the World Research Institute team regarding the different steps of the project to share experience and get a better understand of the methodology. The Manicouagan-Uapishka World Biosphere Reserve management has been informed of the project and invited to participate in meetings with the WRI. The second phase of the pilot project will involve closer collaboration of the Alcoa project team with the Biosphere Reserve.

Ecosystem services review of an aluminum smelter in a biosphere reserve Alcoa

Biodiversity The analysis combining EIA and ESR helps systematize the collection of information on wilderness areas and therefore generates better knowledge. A specific biodiversity action plan will be integrated within the sustainability framework of the Baie-Comeau site in application of Alcoa policy. The EIA and ESR helped identifying sensitive species on the site and also a lack of updated information regarding the current status of those species, as some data were more than 50 years old. The site plans to increase biodiversity monitoring to have a better knowledge of the populations of sensitive species on the site.

Lessons learned The first application of the ESR methodology by Alcoa raised some questions for which guidance from the World Resource Institute was needed, in particular:

Communication Within the framework for the project, a first public meeting was held in June 2009 to present both the EIA and the ESR to a Comité d’échange et d’information for the modernization project of the Baie-Comeau facility. The committee includes representatives from municipalities, environmental groups, and development institutions. A second meeting took place in October to present the modernization project, focusing on the development of the project and the prioritization of the concerns and comments the group had. It included a visit to the facilities and an open-house session for the local community. When available, results of the EIA and the ESR will also be posted on a dedicated website (www.alcoaprojets.ca). Based on the comments received during the meetings, the creation of two stakeholder sub-committees was initiated: one on the optimization of the economic local return (beginning December 2009) and the second on the environmental impact, to be started in April 2010.

• the determination of the scope and the boundaries of the industrial system to be reviewed. Integrating aspects related to the supply chain in the ESR would generate additional collection of data. • the correct understanding of some ecosystem service categories, in particular the regulating services where the interrelatedness with other ecosystem services (e.g., climate and erosion) made it difficult to discriminate impact and dependence. Also, further guidance in the determination of impacts on biodiversity conservation with the ESR methodology would be needed to ensure that the review takes into account the company’s operations dependence and impact on wilderness in the premises of the site.

Changes in company’s practices In a second phase of the project, the objective is to develop an approach integrating both EIA and ESR methodology adapted to the Company’s processes and deployed on Alcoa major projects.

Outcomes

Contact information

Benefits

Jean-Pierre Barry Environmental Management Representative AMBC project 418-294-7550 Jean-Pierre.Barry@alcoa.com

Economic The ESR approach allows Alcoa to identify and mitigate business risks related to ecosystem services, in particular in the context of a biosphere reserve where such ecosystem services may be protected or limited. Because of the use of the Manicouagan-Uapishka World Biosphere Reserve resources by other projects or activities (e.g., water), it is all the more crucial for Alcoa to ensure that natural resources and ecosystem services are sustainably managed.

Alcoa 100 Maritime Road Baie-Comeau, Quebec G4Z 2L6 Canada

www.alcoa.com

Canadian Business and Biodiversity Program – 2010 Corporate Case Studies 57

Industry: Metals and mining Duration: September 2008 to end 2009 for the first phase (inventory and first action plan) Location: The standard E9 is applicable in RTA managed facilities worldwide (19 in Canada) Case study type: Management and policy

Land use stewardship standard implementation in facilities worldwide Rio Tinto Alcan (RTA) is one of five product groups operated by Rio Tinto, a leading international mining group. It is a global supplier of quality bauxite, alumina and aluminum and operates 42 sites over the world (bauxite mines, smelter-grade alumina refineries, specialty alumina plants, smelters, power facilities), employing 24,000 people in 27 countries. RTA owns, operates or has interests in 6 bauxite mines and deposits in 4 countries, 10 alumina refineries in 5 countries, including 1 in Canada, 23 smelters in 10 countries, including 7 in Canada and 12 power stations in 4 countries. RTA operates 19 sites in Canada (including 7 hydro power plants and 4 supporting facilities) and employs 8,300 people in Canada.

Rio Tinto Alcan’s perspective on biodiversity Impacts on biodiversity Rio Tinto Alcan’s (RTA’s) operations and activities can impact both terrestrial and aquatic habitats and the species – flora and fauna – dependent on them. Impacts are due to direct site footprints, including supply corridors, as well as air and water emissions, and waste management from mines, power stations, smelters and refineries.

Rio Tinto Alcan’s biodiversity management policy Rio Tinto’s (RT) goal is to have a net positive impact on biodiversity by minimising the impacts of its business operations and contributing to biodiversity conservation to ensure a region ultimately benefits as a result of its operations. Through its Biodiversity strategy updated in 20081, Rio Tinto is committed to: • the identification of biodiversity values impacted by its activities; • the prevention, minimisation, and mitigation of biodiversity risks throughout the business cycle; • responsible stewardship of the land we manage; • the identification and pursuit of biodiversity conservation opportunities; • the involvement of communities and other organizations in the management of biodiversity issues.

Prior to the acquisition of Alcan by Rio Tinto, the company’s Health, Safety and Environment (HSE) and Sustainability policies encouraged operation managers to develop biodiversity conservation initiatives and projects, including partnerships with local agencies and organizations as well as environmental non government organizations. Programs and projects that were developed and implemented between 2004 and 2007 include: • Creation of parks adjacent Nerée and Poléon lakes on the Grande Baie site (Quebec). These facilities include trails and interpretative information on approximately 100 species of birds, mammals, amphibians and reptiles that can be observed on the site2. • Through a partnership with a local environmental organization in Laterriere (Le Comité de l’environnement de Chicoutimi), Alcan was able to develop the plant property in a way that provides parkland and recreational benefits to employees and the community along the Moulin River at Parc Papawétish. The project included an extension of the bicycle path, shoreline maintenance and removal of undesirable plants, stabilization of the shoreline with rocks and vegetation, installation of signage describing the path along the river, various activities at nearby Lac Saint-Gelais to protect and promote biodiversity (frogs and grass snakes), and creation of an observation area to study beaver habitat3. • Funding partner to the “Biodiversity Valley Project” in the Saguenay region of Quebec, a 111 km corridor along the Saguenay fjord between Tadoussac and Saint-Fulgence. Alcan works in cooperation with a Quebec wildlife organization, la Fondation de la faune du Québec, to enhance biodiversity along the Saguenay River shoreline. The project includes an interpretation website, the implementation of a guide network and the launching of a biodiversity map4. • Implementation of phyto treatment of water effluent processes in Latterière and Grande Baie (Quebec) facilities.

58 Canadian Business and Biodiversity Program – 2010 Corporate Case Studies

Rio Tinto’s HSE management system includes the Land Use Stewardship Standard E95 adopted in 2005 and revised in 2008 as a major step in the application of Rio Tinto’s strategy on biodiversity. It covers all land owned, leased or managed by Rio Tinto. It also applies to land that is not used directly for mining, processing or operational activities and includes specific requirements for operation managers to: • develop and maintain a documented description of the land, including environmental and social conditions; • develop land-use zones and management objectives; • develop targets to drive improvements in land management; • develop a Land Use Management Plan (LUMP). The deployment of Standard E9 was identified as a priority standard to implement as part of the RTA integration process. RT management set the tone at the top by making it mandatory throughout its operations worldwide.

Land use stewardship standard implementation in facilities worldwide Rationale The objective of this initiative is to implement Phase 1 of the Land Use Stewardship Standard E9 developed by Rio Tinto for each of the RTA managed industrial facilities worldwide (19 in Canada), by end of 2009.

• development of elements of interest; • interactions with adjoining uses (including the communities);

The deployment of this standard throughout RT and RTA facilities enables a better understanding of biodiversity conservation and environmental issues on lands they own, lease or manage.

• rights and preservation of social values, traditions and natural and cultural heritage both on and around RTA’s land.

Besides positive impacts on Biodiversity knowledge and conservation, the implementation of consistent and responsible land management practices throughout the company also contributes to improve social acceptance of industrial activities, and in particular access to water rights and land access.

During phase 1 of the program each site develops a Land Use Management Plan (LUMP) consisting of:

Description

Each site also develops a Biodiversity context workbook that includes an inventory of areas with special significance, as well as sensitive, endangered and protected species within a 10 km radius of the site, to be updated on an annual basis.

The aim of Standard E9 is to ensure the integrated management and sustainable development of lands that are owned, leased or managed by RTA in relation to: • current zoning; • maintaining biodiversity;

• an analysis of risks and opportunities; • a management plan that will be updated every 5 years.

Phase 2 of the program focuses on the implementation of the LUMP and the development of specific action plans by site, based on a self assessment of biodiversity issues reviewed by RT at corporate level.

Canadian Business and Biodiversity Program – 2010 Corporate Case Studies 59

Rio Tinto Alcan Land use stewardship standard implementation in facilities worldwide

Each LUMP provides a thorough description of the geological, physiological, hydrographical and climatic characteristics of the site. It also includes information on terrestrial and aquatic flora and fauna, fish habitat and species of special status. Protected or special-status areas, including heritage and archeological aspects, are also listed.

Based on the information from the LUMP, site management conducts a risk assessment and drafts a management plan to address biodiversity conservation, protection of heritage sites and the rehabilitation of contaminated sites. This management plan, based on the consultant report, is to be completed by end of 2009.

The approach requires the acquisition of data detailing natural resources and uses and constraints, as well as land tenure and concerns of interested parties. The information is gathered from federal, provincial and municipal governments as well as other organizations and agencies.

Each plan describes the roles and responsibilities of employees, including the plant manager, ESH, security, fire superintendent, environmental coordinator and the communications officer in maintaining and protecting biodiversity.

The LUMP identifies land use zoning such as industrial, agriculture, forestry, residential, commercial, tourism or conservation and includes satellite maps highlighting protected areas and potential development areas for industrial or other purposes. A LUMP requires the gathering of specific knowledge of the land used by RTA (and occasionally by third parties) and includes an evaluation of the risks associated with the management of bauxite mines, refineries and smelters. All applicable information is included in the Risk Register established by the business unit in relation to its Environmental Management System. The development of the LUMP on each RTA facility is coordinated at the corporate level, in cooperation with a consultant whose responsibility is to gather the information and to draft the LUMP report for each site.

60 Canadian Business and Biodiversity Program – 2010 Corporate Case Studies

Stakeholders and roles For the deployment of the first phase of the E9 standard, there is no specific partnership involved with external stakeholders. The implementation of individual site action plans may involve external partnerships with local communities and ENGOs and managed directly by operation managers. As an example, Grande Baie, Quebec has developed a management plan that includes partnerships with local organizations to manage areas with development potential on RTA land, in particular for reforestation. The project is being coordinated by an environmental manager at corporate level with the cooperation of on-site operation and environment managers. RTA has contracted a consultant with biodiversity expertise to carry out the inventory and assessment on a site by site basis.

Land use stewardship standard implementation in facilities worldwide Rio Tinto Alcan

Lessons learned The development and implementation of the Land Use E9 standard is taking place in a post acquisition integration context. Changes in structures and management practices, together with the current global financial situation, created implementation challenges and a focus on short term operational priorities. Distance from head office and cultural differences also needed to be recognized and addressed. In this context, plans for the deployment of E9 standard sometimes had to be adjusted to fit the local situation. To ensure a smooth transition, increase ownership and ease the process for operation managers, the Rio Tinto Alcan HSE Corporate team has provided significant support which included: • coordination of the methodological aspects with the consultant;

Communication Some of the sites have implemented a committee involving representatives from local communities, local NGOs and unions. Information on the implementation of the LUMP and the site performances will be communicated to stakeholders on an ad hoc basis by site managers.

• funding for the development of the sites’ LUMPs; • global information sessions that involved HSE managers both in European and American operations.

Changes in company’s practices The implementation of phase 1 corresponds to a Group policy. At the end of Phase 2, the program will allow for a reassessment of process, projects and increased positive impacts for biodiversity conservation.

Outcomes Benefits Economic

Contact information

RTA’s approach to responsible management of resources will allow for best practices sharing and prioritization of initiatives in a consistent way now and into the future. This will allow for the early identification and resolution of potentially costly biodiversity issues. This is expected to provide a net long-term economic benefit. It also improves the decision making process thanks to a systematic identification of risk and opportunities based on a consistent method and background information acquired on the local biodiversity context,

Guy Bouchard Director, Environment RTA 514-848-8495 guy.bouchard-maison@riotinto.com Nathalie Fortin Environmental Advisor RTA 514-848-8034 nathalie.fortin@riotinto.com

Biodiversity

Rio Tinto Alcan 1188 Sherbrooke West Montreal, Quebec H3A 3G2 Canada

The implementation of the E9 standard has contributed to put up-front biodiversity conservation issues and interest on the operational management agenda. Specific biodiversity benefits related to habitat protection and species conservation on each site will occur during the phase II of the project. 1

www.riotinto.com/documents/ReportsPublications/RTBidoversitystrategyfinal.pdf

www.publications.alcan.com/sustainability/2005/fr/pages/issue_4_community_ ex_grandebaie.html

www.publications.alcan.com/sustainability/2007/en/pages/review_3_natural_ casestudies_2.html

www.routedufjord.com/carte.html

www.riotinto.com/documents/LandUseStewardship.pdf

Standard E9 is applicable in sites where RTA has ownership, majority participation or management control

Canadian Business and Biodiversity Program – 2010 Corporate Case Studies 61

Industry: Metals and mining Duration: late 1970’s – ongoing Location: Sudbury, Ontario Case study type: Site rehabilitation

The regreening of Sudbury and the Vale Inco, one of the largest mining companies in the world, is a wholly owned subsidiary of the Brazilian mining company Vale. It is Vale’s nickel division, headquartered in Toronto, Ontario. It produces nickel, copper, cobalt, platinum, palladium, rhodium, ruthenium, iridium, gold, and silver. Vale Inco operates in 40 countries and employs over 11,000 people worldwide (close to 7,000 employees in Canada). Sales in 2008 reached almost $8 billion US. In Canada, Vale Inco operates two wholly integrated mining milling smelting and refining complexes, an electrocobalt refinery and precious metals processing facility and a mine and mill concentrator facility. Vale Inco has recently begun construction on an additional nickel processing facility and operate two research and technology facilities where 90% of worldwide research is carried out.

Vale Inco’s perspective on biodiversity The exploration, extraction and transformation of mineral resources can have ecological impacts that arise from opening up remote areas, facilities construction, operation and waste management and disposal. In addition to this footprint on the ground, biodiversity can also be impacted through atmospheric emissions and aqueous discharges. Vale Inco has taken biodiversity into account at its Canadian operations for several decades through the planning, construction, operation and decommissioning of all projects and facilities. Its approach to environmental issues, as well as to health and safety, is based on the fundamental principle that it accepts responsibility and acts responsibly. Most importantly, wherever Vale Inco operates, or plans to operate, it consults with local communities. The company has a long history of working with governments, organizations, local communities and Aboriginal groups. Vale Inco is a signatory to the Mining Association of Canada’s Towards Sustainable Mining Initiative, adheres to the International Standards Organization (ISO) 14001: 2004 Environmental Management System standard, follows the Mining Association of Canada’s Environmental Management Framework and has adopted an integrated management system for safety, health and environmental issues (Vale Inco SHE Management System). Vale Inco endorses the principle of sustainable development and regards environmental quality among its highest corporate priorities. The SHE Management System helps ensure that effective systems are in place to manage environmental issues and concerns associated with corporate operations. It verifies compliance with laws and regulations, conformance with corporate guidelines, operational policies, procedures and good management practices. An Audit Program provides a tool for advancing management systems and establishing priorities for ongoing improvement. 62 Canadian Business and Biodiversity Program – 2010 Corporate Case Studies

Vale Inco requires that SHE Policy be implemented worldwide by each Vale Inco employee. It is recognized that sustainable development includes commitments to health, safety and the environment through a balanced approach to economic, technical and social issues. Some commitments made by Vale Inco in the SHE Policy include: • to assess, plan, construct, operate and decommission all projects and facilities in compliance with all applicable legislation; • in the absence of legislation, to apply cost-effective best management practices to advance environmental protection; • to maintain active and ongoing monitoring programs; • to involve employees at all levels in programs directed towards the minimization of adverse effects on the environment; • to employ appropriate environmental management systems; • to foster research directed at expanding scientific knowledge; • to engage with stakeholders in addressing applicable environmental concerns stemming from Vale Inco’s operations; • to review regularly company performance with respect to the environment. Several biodiversity conservation initiatives that Vale Inco is currently involved with in Canada include: • Partnership with the World Wildlife Fund; • Funding research programs at Canadian universities and colleges; • Partnership with the Sea Duck Joint Venture of the North American Waterfowl Management Plan to conduct scoter research in Labrador. Increasingly, consumers are pursuing the path of environmental sustainability and are examining the practices and policies of their suppliers. Vale Inco accepts responsibility for the products it produces and has developed a strong product stewardship program. This program

provides customers with detailed information regarding products and the associated environmental risks related to these products. Vale Inco is currently drafting Biodiversity Guidelines which will outline conservation actions in all countries where Vale Inco operates. The Guidelines will help to ensure that sound practices in mining and biodiversity protection are implemented at all stages in the life-cycle of its operations.

The regreening of Sudbury and the 2009 Biodiversity Action Plan for Greater Sudbury Rationale The City of Greater Sudbury has been a mining community since the late 1800s. The area is rich in nickel and copper deposits, both of which have uncommonly high sulfur content. Over the years, local ore smelting released high levels of sulfur and other minerals into the atmosphere where it combined with water vapour to form sulfuric acid, causing what is commonly known as acid rain. During the first half of the 20th century, Sudbury’s landscape was devastated both by acid rain and by logging to provide fuel for early smelting operations. By the late 1960s, 84,000 hectares of land were either barren or semibarren. Regreening the barren landscape and developing a more positive image for Sudbury has became one of the most critical challenges for the City of Greater Sudbury.

Description In the late 1970s, the Regreening of Sudbury Program began as a partnership effort among Vale Inco, the City of Sudbury and other partners. Over the past 30 years, 3,300 hectares of land have been re-greened by applying lime, fertilizer and seeds. Over 9 million trees and shrubs have been planted. Vale Inco raised more than 3,000,000 seedlings at its own greenhouses. As a result, thousands of hectares of land affected by air emissions have been transformed into parkland, bird sanctuaries and wildlife habitat with stands of trees now established in key areas throughout Greater Sudbury. In addition, there have been numerous reports produced to help understand not only the extent of the environmental damage, but also the potential for restoration. The Sudbury Soils Study, one of the most comprehensive studies of its kind ever completed in Canada, analyzed thousands of soil, air, water, vegetable, livestock and fish samples for the presence of specific “chemicals of concern” associated with mining operations. This study was overseen by a partnership that included Vale Inco, Xstrata Ni, the Ontario Ministry of the Environment, the Sudbury & District Health Unit, the City of Greater Sudbury and Health Canada’s First Nations & Inuit

Health Branch. The data collected as part of these studies were used to help assess current and potential risks to humans and the environment and to monitor improvements. In 2009, the Sudbury Soils Study Ecological Risk Assessment found that terrestrial plant communities in the Greater Sudbury area have been and continue to be impacted by mining operations, but are also impacted by other factors such as soil erosion, low nutrient levels, lack of soil organic matter and/or low pH. The study also states that it is unlikely that smelter emissions are exerting a significant direct toxic effect on wildlife populations in the Greater Sudbury area. However, historic impacts of smelter emissions on plant communities may currently be affecting habitat quality, and therefore may be having a continued influence on birds and mammals in the area. Vale Inco, along with the City of Greater Sudbury and Xstrata Ni, responded to the results of the Ecological Risk Assessment with the development of the Ecological Risk Management Framework Report. The primary objective of this report is the development of a Biodiversity Action Plan. Building on past regreening efforts and achievements, Vale Inco will work together with the City of Greater Sudbury and other partners to further improve biodiversity recovery. The long-term commitment begins with preparation of the 2009 Biodiversity Action Plan for Greater Sudbury that defines the vision and priority goals for biodiversity recovery. The inclusive initiative will be based on the following guiding principles, including ecological, sociological and educational considerations: • Build on past accomplishments. • Ensure that the needs and aspirations of the Greater Sudbury community are considered. • Develop and promote educational opportunities. • Create stable soil conditions. • Restore plant and animal species, communities and habitats to effective ecosystems. • Develop resilience within ecosystems. • Include monitoring and reporting processes. • Ensure that the Biodiversity Action Plan remains a “living document.” • Ensure Greater Sudbury remains a world leader in land reclamation and biodiversity recovery. The Biodiversity Action Plan will be developed as a cooperative and collaborative effort under the leadership of the City of Greater Sudbury’s Environmental Planning Initiatives Section. Members of the community, university researchers, biodiversity stakeholder groups and funding partners will have the opportunity to participate and contribute through a series of public “Have Your Say Workshops”,

Canadian Business and Biodiversity Program – 2010 Corporate Case Studies 63

Vale Inco The Regreening of Sudbury and the 2009 Biodiversity Action Plan for Greater Sudbury

surveys and stakeholder involvement sessions. Community input will help in defining environmental values and priorities that will be translated into a clear direction and actions within the Biodiversity Action Plan and the Annual Operations and Research Plans that will follow. These plans will be implemented through Annual Operations Plans that will include: • setting of objectives and targets; • community involvement and public education resources; • funding sources; • human resource needs; • project synergies and linkages; • plans for monitoring, reporting and review. Participants of the community outreach program will be presented key questions to facilitate dialogue under the following headings:

Communication and education The Regreening Program and the 2009 Biodiversity Action Plan for Greater Sudbury have been community-based from the beginning. Public education has been a key strength associated with past land reclamation efforts conducted by the City of Greater Sudbury. Education will include working through the school systems as well as opportunities created for broader learning by the community. Community events such as guided field trips, public talks and hosting an annual biodiversity forum will be explored. A key priority has been to ensure that the general public has been encouraged to participate in and is to be kept well-informed of meetings and workshops and all resultant reports through stakeholder sessions and community consultations.

Community response When all community input was collected and reviewed, the following top priorities were highlighted:

• environmental values;

• Regreening;

• environmental vision;

• Wildlife habitat creation;

• engagement and communication;

• Education of the public;

• monitoring and measurement;

• A healthier environment for the next generation;

• public education.

• Community involvement and participation;

To determine success of the various components of the program requires the development and implementation of comprehensive monitoring and measuring protocols. The plan will also include completion criteria that specifically identify an acceptable end point.

• Science-based decision-making;

Vale Inco has issued a letter outlining its commitment to support Greater Sudbury on this initiative and has agreed to provide ongoing financial and technical support for biodiversity intervention activities, monitoring and research.

City of Greater Sudbury – Development of the Biodiversity Action Plan with the technical and financial help of both Vale Inco and Xstrata Ni.

Late 1970’s – Cambrian Heights, City of Greater Sudbury

Late 1980’s – Cambrian Heights, City of Greater Sudbury

64 Canadian Business and Biodiversity Program – 2010 Corporate Case Studies

• Funding from the companies.

Stakeholders and roles

Laurentian University – Provide technical and scientific expertise in the development and execution of the Biodiversity Action Plan.

The Regreening of Sudbury and the 2009 Biodiversity Action Plan for Greater Sudbury Vale Inco

Xstrata Nickel – Along with Vale Inco, fund the initiative and participate in community consultations, technical and scientific discussion.

• The scope of the project is must be clearly defined at the outset of the study.

Ministry of the Environment – Review and support the content of the Biodiversity Action Plan.

• A public meeting format that is efficient and allows for individuals to ask questions in a pressure-free environment is critical.

Outcomes

• All communications and information provided to the public must be provided in a manner that is understandable to the general public but not belittle the audience.

Benefits Economic Since 1978, the City’s Regreening Program has cost upwards of $24 million plus funding Vale Inco has spent on its own programs. As a result of supporting this project, Vale Inco funds are leveraging additional funding which helps cut the long term costs of habitat restoration programs both on the ground and in needed research. By integrating reclamation strategies at the earliest stages of project development Vale Inco has found that it not only makes for a better project outcome, it is also a cost effective way to minimize negative impacts to biodiversity and the well-being of the community.

Biodiversity The City of Greater Sudbury’s biodiversity has greatly improved because of the regreening program and improved mining practices. Early studies found that the biggest impact of mining activities was on plant communities and by restoring these communities other forms of biodiversity, such as birds, mammals, insects and reptiles, will move into and take advantage of these restored ecosystems.

Lessons learned When developing and implementing a program that is dependent on public input and buy in, a forum and information must be provided in a manner that creates trust and understanding.

Late 1990’s – Cambrian Heights, City of Greater Sudbury

• The public’s input must be documented and proof provided that this input was incorporated into the study. • All stakeholders, while maintaining their individual mandates, must base their input on the same comprehensive and accurate project information.

Impact on company The Biodiversity Action Plan for Greater Sudbury will be a living document, evolving with the community, and with the landscape. The Plan sets the stage for further improving Greater Sudbury’s landscape in a way that builds understanding, knowledge and stewardship in the community. These results complement Vale Inco’s Sustainability Policies and help to encourage other Vale operations to implement similar initiatives.

Contact information Jennifer Hooper Vice-President, Sustainability 416-361-7901 jennifer.hooper@valeinco.com Vale Inco Ltd. 200 Bay Street, South Tower, P.O. Box 70 Toronto, Ontario M5J 2K2 Canada

www.valeinco.com

Early 2000’s – Cambrian Heights, City of Greater Sudbury

Canadian Business and Biodiversity Program – 2010 Corporate Case Studies 65

Industry: Metals and mining Duration: 2007 – ongoing Location: National Case study type: Management and policy

The biodiversity challenge at Xstrata Canada Operations Xstrata plc is a global diversified mining company, with operations and projects in 19 countries. Xstrata’s activities are organised into five global commodity businesses and a technology business, each of which operates with a high level of autonomy. Xstrata Nickel, Xstrata Copper and Xstrata Zinc have significant interests in Canada, including exploration, development, mining, mineral processing, smelting and recycling operations and projects. In Canada Xstrata operates 8 mines, 7 metallurgical sites (including smelters and refineries) and manages 9 closed sites.

Xstrata’s perspective on biodiversity In Canada and globally, an increasingly powerful business case is being made for biodiversity conservation. Today, it is understood that companies demonstrating an understanding and leadership in addressing biodiversity issues will likely attract more public support for their development initiatives. In response to this trend, Xstrata’s Canadian operations have implemented a comprehensive operating standard developed by Xstrata Plc for environment, biodiversity and landscape functions management for all of their sites. The ecological footprint of mineral exploration, extraction and transformation arises mainly from opening up remote areas, open pits, tailings and waste rock disposal areas and water consumption. Mining, milling and smelting can also impact the surrounding biodiversity through atmospheric emissions and aqueous discharges. Xstrata’s Canadian operations have been monitoring the effects of their activities on the surrounding environment for many decades, but more recently have considered those potential impacts from a broader, biodiversity perspective. Through its Sustainable Development Policy, Xstrata operations aim to preserve the long-term health, functions and viability of the natural environment affected by its operations through: • reducing harmful emissions to air, water and land; • eliminating, mitigating or remediating environmental impacts; • avoiding net losses or degradation of natural habitats, biodiversity and landscape functions; • reducing waste quantities and toxicity; • working with stake-holders to mitigate the environmental impacts of product life cycles and supply chains.

66 Canadian Business and Biodiversity Program – 2010 Corporate Case Studies

Xstrata’s Sustainable Development (SD) Policy (Xstrata Plc, 2008) articulates its overall commitment to Biodiversity Conservation. To assist operations in its implementation, Xstrata plc has developed a comprehensive SD Framework consisting of 17 standards based on a corporate policy of operating to the highest international standards. A specific standard related to environment, biodiversity and landscape functions specifies that all potential and actual negative impacts of Xstrata’s activities (from exploration to mine closure) on the environment, biodiversity and landscape functions are identified, analysed, evaluated and eliminated or otherwise treated. Xstrata plc has been named as the Mining Sector Leader in the Dow Jones Sustainability Index for the third consecutive year for 2009/2010.

Xstrata biodiversity program Rationale Today’s challenging economic climate, the growing public awareness of ecological values and issues, coupled with emerging expectations for the protection of the environment, mean that recognition and acceptance of the importance of healthy ecosystems is becoming the norm for many progressive businesses. Xstrata recognizes that it makes sense to build and implement biodiversity conservation standards into their operating plans.

Description

The knowledge gained for the site can be generally grouped as follows:

In 2007, Xstrata Canada initiated studies to assemble site-specific biodiversity and land use information in order to:

• impacts/risks on aquatic life from effluent;

• establish existing biodiversity conditions and land use; • assess the potential risks and impacts on biodiversity related to the presence of their sites and activities, and • identify biodiversity conservation opportunities. This information was used to develop and implement site-specific biodiversity conservation plans all for Canadian sites by the end of 2008. This initial task was accomplished in a broad information sweep using government and regional information that encompassed the sites and surrounding areas. Protected area management and species recognition is an important part in determining future management strategies along with the assessment of habitat fragmentation and land use identification. At certain locations, a greater emphasis is put on the development of a site-specific GIS database integrating the habitat characteristics and biological information available for the site.

• impacts/risks on terrestrial ecological receptors from atmospheric emissions; • loss of habitat due to land occupation, disturbance or fragmentation; • other potential effects (light, noise etc.). As stipulated in Xstrata’s SD Policy and Biodiversity standard, a hierarchy of mitigation measures is generally used, in order of desirability, to address biodiversity impact and risks: • Avoidance: find alternate sites or technologies to avoid predicted impacts. • Reduction: undertake actions to reduce impacts during all phases of mining. • Rehabilitation: undertake actions to rehabilitate or restore the affected environment. • Compensate: actions (generally habitat improvement projects) used as a last resort to offset previously identified biodiversity impacts. To ensure that biodiversity offsets remain pertinent in a local and regional context, workshops are organized with various biodiversity specialists to develop a list of biodiversity conservation opportunities that would provide tangible benefits to local ecosystems and communities. At Xstrata’s Canadian operations, site-specific Biodiversity Conservation Plans were developed in 2008 and are currently being implemented. These Biodiversity Conservation Plans are reviewed annually and typically include the following type of actions to: • address critical knowledge gaps; • develop programs to monitor 99 site – relevant impact indicator species; 99 more generic biodiversity performance indicators.

• avoid or reduce significant impacts on local biodiversity; • rehabilitate habitats affected by its activities; • implement, when needed, cost-effective and locally relevant biodiversity conservation opportunities; • identify and involve key local/regional stakeholder groups in biodiversity conservation projects.

Canadian Business and Biodiversity Program – 2010 Corporate Case Studies 67

Xstrata Canada The biodiversity challenge at Xstrata Canada Operations

Avoidance and reduction of impacts to local biodiversity Favour the use of previously disturbed areas for underground access to ore bodies in current Xstrata Zinc mining projects, in order to reduce the ecological foot print of its future mining activities on local ecosystems.

Site rehabilitation and closure The opening of an old quarry near Xstrata Copper Horne site has been used to securely deposit reactive tailings (no dam construction needed) and rehabilitate the site and surroundings, allowing recolonisation by local biodiversity. • At the Xstrata Zinc Heath Steele Mine closed site in New-Brunswick, nearby aquatic ecosystems were rehabilitated by construction of a fish ladder for salmon and removal of a dam for wetland restoration. • Various bird and fish rehabilitation projects were implemented in the Sudbury region by Xstrata Nickel in the past decades.

Implementation of biodiversity conservation opportunities A few examples of biodiversity conservation actions are described below.

Addressing remaining knowledge gaps on biodiversity and environmental issues A Caribou study done by Laval University researchers and sponsored by Raglan (Xstrata Nickel) examined the effects of climate change and mining activities (from exploration to closure) on migratory caribou. Warmer weather may delay the formation of ice over hydroelectric reservoirs and in doing so disrupt migration routes or cause mass drowning if caribou attempt to cross thin ice. www.caribou-ungava.ulaval.ca During the last decade, the most recent Ecological Risk Assessment (ERA) tools have been used at many sites to assess the ecological risks of historical metal enrichment in aquatic ecosystems nearby Xstrata Copper operations (eg, Sediments of Montreal Harbour Sector 103, Gaspé port). Also, the Sudbury Soils Study was conducted from 2001 to 2008 over a 40,000 km2 area (near Xstrata Nickel operations), to determine risk to residents and ecosystems (www.sudburysoilsstudy.com). Similar ERA studies at Xstrata Zinc Operations are being done prior to, or in preparation of, closing various mining related activities in order to define areas where unacceptable risks to local ecosystems would remain following closure and define proper remediation plan, when warranted.

Biodiversity monitoring programs and performance indicators Environmental Effects Monitoring studies performed at mine sites focus on target fish populations and benthic communities to measure the magnitude, extent, significance and cause of the effects from mining. This information is necessary for the development of sitespecific strategies to reduce impacts on aquatic ecosystems.

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• Xstrata Zinc sites in New-Brunswick donated land and created, in collaboration with local stakeholders, two nature areas: the Daly Point Nature Reserve, (80 ha) in Bathurst and the French Fort Cove Nature Reserve (60ha) in Miramichi. • The 2007 renovation of the Xstrata Nickel Raglan wharf at Deception Bay, Nunavik, increased its total oceanic footprint by 0.9 ha. A fish habitat compensation program will provide access for arctic char (Salvelinus alpinus) to new habitat consisting of a network of 17 ponds and 21 creeks, totalling 8.6 ha and 1.6 km of waterway.

Challenges Development of the site specific biodiversity conservation plans was not accomplished without some challenges: • scarcity of recent site-specific biodiversity (fauna and flora) data; • scarcity of data on true exposure to metal contamination (i.e., bioavailability) in the surrounding environment; • translating potential toxicological effects on single species into biodiversity impacts; • assessing the ecological significance of potential or actual biodiversity impacts in a regional context; • assessing the resilience of nearby ecosystems affected by metals.

Communication Communications has been built into the process and can play a very important role in the development of the conservation plan. It will be critical to maintain awareness of scientific data and to make this information available to all who are involved from company personnel to affected parties and stakeholders. In addition, stakeholder engagement is a routine component of site assessments and remedial actions.

The biodiversity challenge at Xstrata Canada Operations Xstrata Canada

Outcomes

Lessons learned

Benefits

It is always easier, less costly and more effective to be able to identify potential conservation issues in advance through internally-driven risk management processes. This ensures that appropriate mitigation and monitoring programs can be put in place. It also reduces the reputational risk associated with negative external campaigns that are the result of not meeting the expectations of local communities, regulators and other interested parties

Biodiversity Significant negative effects are avoided, reduced, rectified, eliminated or otherwise treated. There are many examples where looking at the management of mining activities through a biodiversity “lens” provides win-win opportunities that achieve local regional or national biodiversity conservation goals and, at the same time, meet local community needs, in a cost-effective manner.

Economic Companies that demonstrate leadership on biodiversity issues will facilitate their social licence to operate and be seen as both an investor and investment of choice. Active monitoring programs for biodiversity issues, including ecological effects monitoring, can help companies anticipate and avoid potential negative – and costly – impacts.

Dependable data are of critical importance. Collaborative monitoring and data management programs should be instigated and supported. Baseline assessments provide a historical context to the monitoring and data management programs. Where none exist, it is still advantageous for already operating plants to produce a “point in time” assessment. Broad, collaborative engagement in the terms of reference and execution plan is an important component of this process.

Management The explicit Biodiversity Conservation commitment expressed in Xstrata’s Sustainable Development Policy and specific Biodiversity Standard triggered a rapid and integrated response by its Canadian operations. Implementing a pro-active program to manage risks and impacts enables timely planning and budgeting of required remedial actions, on a no-surprise basis.

Contact information Jacques Moulins, Biologist General Manager – Environment, Site Rehabilitation and Resource Conservation 514-645-2311, ext. 2100 jmoulins@xstratacopper.ca Xstrata Copper Canada 220 Durocher Street Montreal, Quebec H1B 5H6 Canada Robert Prairie, Biologist Director – Ecological Effects Assessment 514-745-9357 rprairie@xstratazinc.ca Xstrata Zinc Canada 8801 Transcanadienne, Suite 400 Saint-Laurent, Quebec H4S 1Z6 Canada

www.xstrata.com

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Industry: Oil and gas Duration: 2007 – 2013 Location: Southwest Alberta Case study type: Research

Shell Canada Southwest Alberta Montane research program Shell has been operating in Canada since 1911, and is now one of the country’s largest integrated oil and gas companies. Headquartered in Calgary, Alberta, Shell Canada employs more than 8,200 people across Canada and represented nearly a third of all global recruitment in 2008. Shell Canada holds approximately 30% of Royal Dutch Shell’s global resource base. A leading manufacturer, distributor and marketer of refined petroleum products, Shell produces natural gas, natural gas liquids and bitumen, and is Canada’s largest producer of sulphur. Shell is one of Canada’s largest oil sands developers.

Shell’s perspective on biodiversity Impacts on biodiversity The exploration and development of natural gas and oil reserves requires the development of infrastructure such as well pads, roads, pipelines and processing facilities in many remote and backcountry areas as well as in and adjacent to protected areas. These developments can have environmental impacts through habitat degradation, runoff and erosion and an operational presence during critical times of the year for wildlife populations. They can also open up remote areas to additional human impact.

Shell’s approach to biodiversity conservation Shell’s Business Principles include contributing to sustainable development, which means helping to meet the world’s growing energy needs in economically, environmentally and socially responsible ways. This includes managing operations and supply chains in ways that mitigate environmental impacts and create benefits in the societies where it operates. To meet this commitment Shell ensures its employees have the expertise needed to carry out their jobs and build relationships with customers, business partners, governments, academic institutions, non-governmental organizations and neighbours. In addition, Shell’s Health, Safety and Environment (HSE) Policy stipulates protecting the environment and managing resources responsibly, by promoting and implementing best practices in the industry. Shell recognizes the value of biodiversity by:

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• working with others (e.g., local communities, researchers, non-government organizations and regulators) to maintain ecosystems; • respecting protected areas (i.e., areas specifically dedicated to the protection and maintenance of biodiversity, and of natural and associated cultural resources, managed through legal or other effective means); • seeking partnerships to enable the Shell Group of companies to make a positive contribution towards the conservation of global biodiversity.

Sustainable development Contributing to sustainable development means consciously balancing short and long-term interests by integrating economic, environmental and social considerations into business decisions and regularly engaging with stakeholders to understand issues and develop appropriate mitigation. Shells approach to sustainable development affects the choices it makes about its portfolio and products and the way in which it operates. Shell’s focus on sustainability includes producing cleaner-burning natural gas, environmentally acceptable biofuels, and fuels that improve fuel efficiency and reduce emissions. It has also implemented a series of requirements for integrating environmental, including biodiversity, and social factors into the way it plans, designs and makes investment decisions on major new projects. These provide local employment, including for contractors and suppliers and exemplify socially and environmentally responsible business practices

To reduce environmental and social impacts at its operations, Shell works to protect the health and safety of employees and neighbours, reduce disruptions to the community, lower emissions and reduce impacts on biodiversity by using less energy, water and other resources.

Partnerships Shell has developed local, regional, national and global partnerships to progress thinking on environmental issues. Global partnerships have been created with the International Union for the Conservation of Nature (IUCN) and Wetlands International to work together on biodiversity conservation issues. In 2008, the partnerships began research to find the best ways to conserve tundra ecosystems in the Arctic; to treat wetlands in an environmentally sustainable manner along the flight paths of migratory birds; and to reduce the impacts of growing biofuels on biodiversity and local communities. In 2008, it co-authored a report with the IUCN titled Building Biodiversity Business, which describes the benefits for business of biodiversity conservation. In 2009, Shell also signed a cooperative agreement with The Nature Conservancy. To follow and strengthen these standards, Shell partners with stakeholders in projects such as the Southwest Alberta Montane Research Program.

Case study: Southwest Alberta Montane research program Rationale Elk are an important wildlife resource in southern Alberta and an essential element that helps maintain an ecosystem balance of this area. Maintaining habitat and reducing disturbance during critical periods is imperative to maintaining healthy and viable elk populations. Other species, including large carnivores such as wolves and grizzly bears, also contribute to overall ecological health. To ensure that industrial activities have minimal impact on the ecosystem, Shell stepped forward as the major funder and partner of the Southwest Alberta Montane Research Program. The purpose of the Southwest Alberta Montane Research Program is to understand how elk use the montane landscape during winter.

Description Shell has been developing the gas reserves in the Castle / Waterton region for 50 years. There are approximately 75 producing wells in the Waterton gas field and incorporating sustainable development into activities is a key objective. Shell recognizes that creating new motor access into undeveloped areas can have a significant effect on wildlife. Shell works with regulatory agencies and wildlife conservation groups to reduce its environmental footprint, control public motor vehicle access and to remediate and restore habitat effectiveness in the region. The Castle area in southwest Alberta has a rich diversity of large wildlife such as bighorn sheep, elk, mule deer, grizzly bears, black bears, cougars, mountain goats, wolves and many other species. Elk have both winter and summer habitat in the Castle region. Also, the area is one of several corridors that grizzly bears and wolves, which are closely linked to elk population dynamics through the predator-prey relationship, use to move throughout the Rocky Mountains. Maintaining habitat and reducing disturbance are critical to sustainable elk herds in the province, and elk are part of the regulatory framework along the east slopes of the Rockies. Though elk are the primary focus of the study, a large database of information on other wildlife species will be gathered and new management regimes initiated. Also resulting from this study will be three Ph.D. and three M.Sc. theses, as well as research from two post-doctoral students.

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Shell Canada Southwest Alberta Montane research program

To date, over 100 elk have been fitted with radio collars and their movements are being tracked using Global Positioning Systems (GPS) for the duration of the 7-year study (2007 – 2013). By monitoring elk movements, information such as size of winter range for cows and bulls can be further defined. Ongoing monitoring also helps account for animals missing from previous surveys that impacts the bull to cow ratio. Spatial information gained through the monitoring program will help understand the accuracy and increase value of these previous surveys. Several additional research projects have been added that complement the elk study. These involve radio-collaring grizzly bears and investigating wolf depredation on livestock. These collaborative projects are looking at the predator/prey relationship of elk/wolves; livestock and wildlife diseases, and examining the effects of various levels and types of human activity on the food chain, including an evaluation of human access management as a strategy tool for the recovery of grizzly bears. Though data have yet to be analyzed comprehensively by the academic partners in the program, preliminary results show that bull elk have home ranges much greater than currently thought, and intermixing of elk herds may provide important diversity in genetic makeup. This Program is the largest elk project ever conducted in terms of data analysis. Given the large elk population in the region – over 1,800 animals – and the importance of this species to the ecosystem, the relationship between herbivores and predators will be an important part of this program. Information collected in this region may assist wildlife management agencies in understanding trophic cascades, biodiversity restoration, and migration corridor use.

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Communication • 3,000 brochures printed and distributed. • A dedicated website (www.montaneelk.com). • General meetings twice a year to provide updates to government, research team members and local residents. • Several magazine articles, conference presentations and journal articles. • In-house poster session and seminar for Shell staff. • Short video for TV spot.

Outcomes Benefits Economic Having a sound understanding of the critical times and corridors of elk movements, including when they arrive and leave specific habitats, will allow Shell to manage their activities. Wells in this area require several months to drill and cost several million dollars. Having a single timing window for drilling helps reduce costs and results in a safer project because drilling can be completed during a single time period with a single drilling crew.

Biodiversity New access created by Shell into sensitive areas will be blocked to general vehicle use. Older access, seismic lines and other existing trails will be re-vegetated to minimize human impacts. Shell has set a goal of “no net increase in public motorized access” to work in parallel with government land management agencies, local landowners and environmental groups.

Southwest Alberta Montane research program Shell Canada

Lessons learned A successful, major project such as this requires the time and commitment of a multi-disciplinary team. During the course of planning the project, and through its first years of operations, several “keys to success” have been identified and supported. The following should be taken into consideration before starting an undertaking like this: • Identify a corporate leader to look at the big picture and incorporate the research into project plans. • Identify a full time project manager to keep participants aligned and the project running smoothly and efficiently. • Collaborate with user groups on philosophies, activities, and objectives.

Impact on company Shell proactively takes steps to minimize environmental impact related to its operations and to help protect wildlife. In the Castle area it means working closely with Alberta Sustainable Resource Development to address concerns about the environmental effects of activities. The results of the study will help Shell time its activities as to have minimum impact on the various wildlife species that live in the area.

Contact information Trevor Hindmarch Environment Team Leader 403-691-3111 trevor.hindmarch@shell.com Shell Canada 400 4th Avenue SW Po Box 100, Station M Calgary, Alberta T2P 2H5 Canada

www.shell.ca

Canadian Business and Biodiversity Program – 2010 Corporate Case Studies 73

Industry: Oil and gas Duration: 2004 - ongoing Location: Newfoundland and Labrador Case study type: Species rehabilitation

Oiled seabird rehabilitation program Suncor Energy Inc. is Canada’s largest integrated energy company, with its head office in Calgary, Alberta. Suncor combines a leading position in oil sands with complementary operations in refining and marketing, natural gas production and conventional oil production internationally and offshore East Coast Canada. The company’s oil sands business, located near Fort McMurray, Alberta, produces bitumen recovered from oil sands through mining and in-situ technology and upgrades it into refinery feedstock, diesel fuel and by-products. Suncor operates four refineries with a capacity of approximately 433,000 barrels-per-day and one specialty lubricants plant producing more than 350 automotive, industrial and food grade lubricants and greases. Its retail and wholesale network includes more than 1,500 Petro-Canada outlets in Canada, and 165 Phillips 66 outlets in Colorado, United States. In addition to its petroleum business, Suncor has invested in four wind power projects and operates Canada’s largest ethanol production facility. The company has a market capitalization of $58 billion Canadian (as of October 30, 2009).

Suncor’s perspective on biodiversity

and post-construction avian monitoring projects and bat mortality studies at its wind farms.

Suncor completed its merger with Petro Canada on August 1, 2009, resulting in Suncor becoming Canada’s largest energy company by market capitalization. Suncor continues to pursue a vision of responsible energy development through environmental stewardship, sustainable development and environmental excellence. Suncor has taken a proactive approach to reduce its environmental footprint by adopting a series of strategic environmental performance goals in the areas of water use, land disturbance, energy efficiency and air emissions.

• Working with others: Suncor proactively consults with stakeholders to continually improve on the work it is doing to preserve biodiversity.

Suncor has worked on a number of fronts to minimize our impact in the regions that we operate: • Advanced reclamation techniques at its oil sands mining operations: these include contouring the land for a natural appearance, providing suitable drainage and minimizing erosion by planting native trees, grasses and bushes. • Conservation of environmentally sensitive habitats: Suncor has worked with different agencies to voluntarily conserve sensitive areas near our operations. • Advanced technology to minimize its footprint: examples include the use of in-situ bitumen extraction method which has a smaller land footprint and use of low-impact seismic lines and horizontal drilling in its natural gas business to help reduce their environmental footprint in sensitive areas. • Monitoring wildlife activity: Suncor invests in research, monitoring and conservation activities. This includes habitat restoration for caribou along its North Cabin natural gas pipeline,

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The exploration and production of oil sands, natural gas and onshore and offshore conventional oil requires the development of infrastructure such as seismic lines, roads, pipelines, well pads, storage and processing facilities. As such, ecosystem and biodiversity issues and stressors are apparent throughout the regions where Suncor operates. Suncors’ activities, facilities and operations inherently depend on and influence ecosystems and biodiversity. Suncor’s business units deal with ecosystems and biodiversity-related issues including: –– Land use: greenfield developments and protected areas; –– Fresh water: acquisition, use, and discharge; –– Endangered, protected, or flagship species; –– Cultural value: traditional areas and cultural land use; and –– Recreational value: protected areas and recreational land use.

Environmental Excellence Plan Environmental performance and sustainability is one of the key drivers of the Suncor’s operational excellence strategy. In concert with establishing environmental goals, Suncor is implementing a new business process – the Environmental Excellence Plan (EEP) – to support its environmental performance goals. The main objective of the EEP is to accelerate improvements in Suncor’s environmental performance and to go “beyond compliance”.

The EEP will assess and analyze environmental initiatives identified by business units across Suncor. Those environmental initiatives that provide the largest benefits for the costs incurred ensure that progress towards environmental goals is accelerated over time. This business process will promote collaboration between a corporate Environmental Excellence team and the business units to improve visibility of environmental initiatives across the company. The methodology will provide for improved resource allocation and the identification of synergies and best practice sharing opportunities. The EEP will be an integral part of the business planning process, reinforcing the principle of integrated environmental progress and business performance, which underpins Suncor’s sustainability strategy.

Offshore policies and procedures Suncor’s vision is to be a sustainable energy company. That means operating its business in a way that enhances social and economic benefits to society while minimizing the environmental impacts of resource development. As such, the Environment, Health and Safety section of Suncor’s International and Offshore East Coast Management system includes environmental policies, plans and procedures such as:

• Environmental protection plans for drilling and production operations; • Compliance monitoring plans for drilling and production operations; • Seabird monitoring, cleaning, sampling and rehabilitation procedures; • Environmental effects monitoring program; • Offshore chemical management system; • Fisheries liaison and compensation program; • Fish habitat compensation plan; • Waste management plans and procedures.

Case Study: Suncor oiled seabird rehabilitation program Rationale Suncor is a participant in every major oil development project on the Grand Banks of Newfoundland and Labrador, off Canada’s east coast, and has been producing oil from the Terra Nova Field since 2002. The Seabird Rehabilitation Centre was established in 2004 by Petro-Canada.

Canadian Business and Biodiversity Program – 2010 Corporate Case Studies 75

Suncor Energy Oiled seabird rehabilitation program

Suncor’s oiled seabird program is based on the recognition that changing environmental conditions, species endangerment and biodiversity loss coupled with increased stakeholder expectations have greatly influenced operating practices in the oil and gas sector. Sustainable development represents a critical driver for focusing increased corporate attention on ecosystems and biodiversity issues. The Suncor oiled seabird program supports the seabird ecosystem with three main initiatives:

Procedure for Cleaning Oiled Seabirds Manual (PCOSM) Detailed procedures and training for handling oiled seabirds from the initial sighting of an oiled bird to the final disposition of the animal have been developed to assist Suncor personnel. The procedures and protocols detail: • Facility layout;

Leach’s Storm Petrel Recovery & Release Program: recovery and release of Leach’s storm petrels to the wild.

Seabird Monitoring Program: monitoring seabird populations and their habits around oil drilling and production sites.

• Capture, handling and transport protocols;

Seabird Rehabilitation Centre: cleaning and rehabilitation of oiled seabirds collected on offshore installations and vessels.

• Cleaning protocol;

Description As part of its commitment to mitigate ecosystem and biodiversity effects of its offshore oil exploration and production operations, Suncor has obtained a Level 1 emergency rehabilitation permit from the Canadian Wildlife Service under the Migratory Bird Convention Act and authorization from the Government of Newfoundland and Labrador under the Wild Life Regulations to operate the Seabird Rehabilitation Centre. The Centre, which is permitted to handle up to ten seabirds at a time, consists of: • Admissions office; • Laboratory; • Animal washing and rinsing area; • Treatment area; • Isolation room; • Husbandry room; • Drying room; • Necropsy area; • Worker change room; • Washroom and shower facilities. The purpose of this state-of-the-art, 1,800-square foot Centre, located in St. John’s, Newfoundland, is to provide timely attention to animals that have either been injured or oiled. The Centre is staffed, as needed, by a veterinarian and trained volunteer Suncor employees and contractors who clean and rehabilitate birds exposed to oil from offshore operations. Suncor has made the Centre available to other oil and gas companies on the East Coast to supplement their oil spill response programs. At the request of the Canadian Wildlife Service, Suncor has also made the Centre available to other parties to clean and rehabilitate birds that have become oiled through non oil and gas related activities. In addition, Suncor has partnered with the Newfoundland and Labrador Environment Association (NLEA), which operates a licensed rehabilitation facility in Ship Cove, Placentia Bay, NL, to provide longer term rehabilitation of seabirds, if required.

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• Seabird rehabilitation personnel; • Health and safety; • Medical evaluation of recovered seabirds; • Husbandry; • Transportation issues; • Seabird release criteria; • Euthanasia guidelines; • Post-mortem procedure; • Record keeping. The probability of survival of an oiled seabird is dependent on the bird being delivered to the Centre as quickly as possible. To ensure this takes place, designated offshore personal have been trained and are responsible for handling these activities. The offshore designated person plays an important role in arranging transport of the bird to the Centre. Logistics arrangements are coordinated with the onshore Environmental Team. The Centre has been designed with engineering controls and staff is equipped with personal protective equipment to mitigate potential risks associated with seabird handling. The Centre response team is led by a specially trained veterinarian who is responsible for the assessment of incoming birds, medical examinations, treatment, monitoring, washing activities, husbandry and recuperation, euthanasia and authorization of release of birds to the wild or the NLEA rehabilitation facility. The Centre has a team of volunteer Suncor employees and contractors who have been trained as seabird cleaners and perform a critical role in the handling and care of any animal impacted by operations. The design of the Centre and training of Suncor volunteers has been supported by Tri-State Bird Rescue & Research, an internationally recognized and qualified third party wildlife rescue and rehabilitation organization based in Newark, Delaware. If a large oil spill occurred on a Suncor-operated facility, seabird cleaning and rehabilitation would be managed as part of Suncor’s overall oil spill response. If necessary, cleaning operations would be supported by Tri-State, the NLEA and the Eastern Canada Response Corporation (ECRC), a certified marine oil spill response organization.

Oiled seabird rehabilitation program Suncor Energy

Outcomes Benefits Economic The establishment and operation of the Suncor Seabird Rehabilitation Centre is consistent with its corporate responsibility and sustainable development strategies. It has supported Suncor’s license to operate.

Biodiversity Since 2004, the Centre treated 53 seabirds. The success rate for treatment of oiled sea birds in the Centre is 70%, which is outstanding when compared to a survival rate of 25% which is typical in other areas.

Lessons learned Voluntary participation in programs that benefit biodiversity impacted by its actions, has been a valuable lesson for Suncor. Through the establishment of the Centre, Suncor has gained improved relationships with: • government regulators and agencies; • ENGOs; • local communities.

Communications Communications activities surrounding the operation of the Suncor Seabird Rehabilitation Centre include: • Publication of related stories in the 2004 publicly available PetroCanada “Report to the Community”; • TV and print adds titled “Part of your Community” that highlighted local Suncor employees; • Public, government and industry presentations by Suncor staff.

Stakeholders and roles Suncor: Financing, running, maintenance and staffing of the Centre and associated responsibilities. Newfoundland and Labrador Environment Association: Long term rehabilitation if required.

Impact on company Positive public and government response to the development and operation of the Seabird Rehabilitation Centre has demonstrated the value of the facility and supports future Suncor involvement in environmental programs.

Contact information Peter MacConnachie Sr. Sustainability Issues Management Specialist 403-920-8868 pmacconnachie@suncor.com Suncor Energy 150 - 6th Avenue S.W. Calgary, Alberta T2P 3E3 Canada

www.suncor.com

Tri-State Bird Rescue and Research: Training, advice and support. Eastern Canada Response Corporation: Logistical support if required. Environment Canada, Canadian Wildlife Service: Emergency Rehabilitation Permit. Government of Newfoundland and Labrador, Department of Environment and Conservation: Wildlife Handling Permit.

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Industry: Oil and gas Duration: 1978 - ongoing Location: Athabasca Oil Sands, Alberta Case study type: Site rehabilitation

Rehabilitated sites Syncrude Canada Ltd., located in the Athabasca Oil Sands, Alberta, is the world’s largest producer of synthetic crude oil from oil sands and the largest single-source producer in Canada. It supplies about 13% of Canada’s oil requirements and has approximately 5 billion barrels of proven and probable reserves. Syncrude has a production capacity of 350,000 barrels per day with an expected capacity of 425,000 barrels per day by 2020. The company is a joint venture with seven partners, including Canadian Oil Sands Limited, Imperial Oil, Suncor Energy, Nexen, ConocoPhillips, Mocal Energy and Murphy Oil. Syncrude is not traded directly, but rather through the individual partners. Syncrude employs more than 5,000 employees with an additional 1,500 contractors supporting its operations. Since start-up in 1978, Syncrude has made payments in excess of $10 billion for payroll and to governments for royalties, municipal taxes and other Crown charges.

Syncrude’s perspective on biodiversity

• integrate environment, health and safety considerations, along with economic factors, into all business decisions;

Potential impact on biodiversity

• ensure its management takes a leadership role in advocating workplace health and safety, including environmental sustainability, in appropriate regional, provincial and national forums.

The mining of oil sands requires moving large volumes of earth and processing uses substantial amounts of water. These activities, along with upgrader emissions and mine waste, including tailings and tailings ponds, have the potential of direct as well as indirect impacts on both terrestrial and aquatic biodiversity.

Syncrude’s perspective on biodiversity Syncrude’s corporate success depends upon its commitment to protecting and promoting the safety and well being of its employees, contractors, local communities and the environment along with the biological biodiversity dependent on it. Syncrude promotes a workplace where incidents that have the potential to harm people do not occur; where all employees and contractors demonstrate personal commitment to operational excellence and where any degraded environmental values are restored. Syncrude’s Environment, Health and Safety Policy, 2006, is updated on an annual basis and sets a clear vision for responsible development of the oil sands resource. Through the efforts and collective experience of its employees and contractors, Syncrude will: • create a safe and reliable operation where all risks that could compromise the health and safety of workers, or the environment, are identified, avoided or understood and managed; • meet all regulated standards for environment, health and safety performances as the minimum expectation; • learn from best practices applied elsewhere and endeavour to incorporate such lessons into its practices and procedures;

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Greenhouse gases A 2008 report by the Canadian Association of Petroleum Producers shows that Canada’s emissions of greenhouse gases comprise about 2% of the global total and the oil sands industry accounts for about 5% of Canada’s emissions. In 2007, the Alberta Environment Specified Gas Emitters Regulation required Syncrude to reduce it’s per barrel emissions of greenhouses gases by 12% from the average of its annual per barrel emissions between 2003 and 2005. If Syncrude is unable to meet this target directly, it must purchase offset credits or pay into a government fund dedicated to the development of emissions reduction technology. In 2007, Syncrude met 90% of its reduction target under the new regulation.

Water conservation Syncrude’s total import of fresh water from the Athabasca River was 36 million cubic meters in 2007. Efforts to use recycled water resulted in a more than 10% decrease in water intensity per barrel of production as compared to 2006. As of 2009, about 88% of all water used at Syncrude now comes from a continuous closed loop. Efforts to increase water efficiency continue through the work of its water management team and tailings steering committee which are focused on identifying and implementing further conservation and re-use opportunities.

Stakeholder engagement

Description

Syncrude consults formally and informally with a broad range of stakeholders including Aboriginal communities, advocacy groups, contractors, governments, industry groups, suppliers and other interested parties to understand the questions and concerns stakeholders have about the potential impacts of proposed Syncrude activities. Stakeholder discussions are based on the identification of: issues, resolutions, outcomes and engagement.

Landscape reconstruction is a multidisciplinary endeavor and requires collaborative efforts of academic researchers, industry and government to arrive at a comprehensive landscape design that can withstand rigorous risk assessment and result in environmental and economic benefits to Canada. Syncrude’s ongoing reclamation projects and research have evolved to emphasize integrated programs that are intensively instrumented and monitored. This approach leads to collaboration between research disciplines as well as better, more integrated insights from research findings.

Energy conservation Syncrude has a variety of initiatives and measures in place to encourage site-wide energy conservation and energy-efficient behaviors and attitudes among employees. In 2007, this included the introduction of the Global Energy Management System, an ExxonMobil program that aims to significantly reduce energy use across the organization. A research program, initiated by Syncrude, discovered that colder water can be used in the primary separation vessel without affecting bitumen recovery rates which results in a reduction in energy use and lower CO2 emissions.

Supply chain Syncrude endeavours to perform as a leader in the resource industry with respect to environmental protection. Syncrude requires any company that it does business with to comply fully with all environmental obligations as contained in applicable acts, regulations, and the terms and conditions of Syncrude’s various governmental licenses and approvals.

Case Study: Rehabilitated Sites Rationale Typically oilsands mining requires the use of land for several decades. Syncrude is committed to ensuring that the land disturbed by its operation is returned to a stable, safe condition that is capable of supporting biologically self-sustaining communities of plants and animals. The reclamation process occurs throughout the life of the project and is complete when the land is no longer in use and has been fully reclaimed.

In the design and implementation of reclamation programs, Syncrude takes into consideration the concerns of all stakeholders. The wishes of Aboriginal Elders to reclaim disturbed land with materials from the original landform have been incorporated into the conditions of Syncrude’s recently renewed operating license. Syncrude separates organic material it removes from the forest floor and stockpiles it separately and uses these stockpiles to help re-establish native plant species into later landform design.

Closure plans Before mining begins, a closure plan, which is updated every five years, is developed that outlines how the area will be reclaimed after disturbance. As part of these efforts, Syncrude routinely collects information on soil and vegetation, drainage and wildlife habitat. These plans are then reviewed by local stakeholders and submitted to obtain regulatory approval before operations can start. As mining takes place and material is moved, various landforms are created. Landscape planning and design takes into consideration the creation of not only aesthetically pleasing landscapes, but ones which allow for appropriate vegetation patterns and quick establishment as well as appropriate drainage. Once the general shape of the land has been formed it is capped with top soil that is comprised of muskeg, peat and organic matter from the forest floor which contains plant seeds and roots. Once the topsoil has been placed, it is planted with a mixture of native trees and shrubs grown at an off-site nursery.

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Syncrude Rehabilitated sites

Monitoring and certification After the reclamation project is complete, a monitoring program that follows plant and soil health is implemented. Sites are assessed one year after planting and then at five-year intervals. Monitoring of all reclamation areas allows Syncrude to track and compare their performance to design intent and also provides the database required for reclamation certification and annual reporting. Certification by Alberta Environment occurs when regulators determine that a particular area of land has been reclaimed successfully and is healthy and productive. Since certified land becomes public property, companies want to be certain that they have no long-term intentions for the property before turning it back to public ownership. Governments want certainty that they will not inherit a long term environmental problem. In order to receive certification, Syncrude must prove the reclaimed land can sustain vegetation and wildlife similar to that before disturbance. Weighted with the responsibility of setting a precedent for the rest of the industry, Syncrude’s Gateway Hill project has taken the necessary time required to go through the certification process to insure that the project meets all expectations and a well defined process and set of standards is developed to facilitate the certification of other existing reclaimed lands.

Soft tailings Syncrude is also exploring other options for reclaiming soft and fluid tailings materials. While coarse tailings may be used in creating dry landscapes, water capping offers another potentially efficient and environmentally attractive way to incorporate mature fine tails in the

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reclamation of mined-out areas. Laboratory and field research has yielded pilot-scale end-pit lakes constructed in former mines with soft tailings forming sedimentary bottoms. Research indicates that these lakes will, over time, become self-sustaining aquatic landscapes capable of establishing and supporting a healthy aquatic ecosystem.

Progress Syncrude spent $52.9 million on land reclamation activities in 2008, $97 million in 2009 and has committed $180.5 million for 2010. Syncrude leads the industry in reclamation projects and has reclaimed over 4,500 hectares of land since 1978 and planted over five million trees and shrubs. Early in 2008, Syncrude’s 104-hectare Gateway Hill was the first reclamation project to be certified by the Government of Alberta. The certification of this land was a long process but has set the groundwork for the future certification of other reclaimed lands. Prior to mining, the area was wild muskeg and is now a rolling forested area. Syncrude has built a network of interpretive trails (hiking and biking) as well as wetlands through the site and the public is welcome to see land reclamation firsthand on the 4.5-km of interpretative trails named the Matcheetawin Trail, which is Cree for beginning place. In collaboration with the University of Saskatchewan, Environment Canada and the National Sciences and Engineering Research Council of Canada, Syncrude is pioneering the creation of a fen wetland as part of oil sands reclamation. The fen will be established by placing peat and vegetation material, recovered from future mining areas, over a layer of composite tailings and sand. Construction began in late 2008 and is expected to be complete by 2012.

Rehabilitated sites Syncrude

Wildlife The management and safety of wildlife is factored into reclamation projects. A thriving herd of approximately 300 wood bison has been established on a 700 hectare reclamation project. The herd is managed by Syncrude in partnership with the McKay First Nation. This initiative is contributing to a genetic preservation project that aims to create a sustainable future for the entire wood bison species, which has seen a large reduction in its total population over the last century. As part of reclamation efforts, programs are in place to keep wildlife out of areas until reclamation activity is complete. A migratory bird program is designed to keep migratory birds, especially waterfowl and marsh birds, out of areas that have the potential to do them harm. Tactics such as scare cannons, scarecrows and effigies fitted with reflectors are used to deter birds. Reclaimed areas include wetlands and other desirable habitats that will attract birds and help keep them out of areas where they could be harmed. A radar-based system will assist Syncrude in migration monitoring and to analyze trends and adjust its deterrent system to ensure the best protection measures are in place. Monitoring and evaluation programs are in place to ensure these programs are working as expected and to enable changes when and where required.

Partnerships Syncrude has entered into partnerships for the purpose of designing and learning more about the rehabilitation process. Two examples of these partnerships include:

expense substantially on a per-hectare basis, while optimising benefits to those who will use the land in perpetuity. The restoration of traditional medicinal plants will return both health and economic benefits for indigenous peoples of the area.

Biodiversity The restoration of disturbed sites to naturally functioning ecosystems will be of benefit to all forms of biodiversity. Rehabilitation also provides the opportunity to design habitat for desired species to be reintroduced to the area. The Wood Bison partnership with the Fort Mackay First Nation will substantially reduce the chances of extinction of that species.

Lessons learned • Working with First Nations elders has provided valuable insights into rehabilitation techniques and objectives. • Partnerships with local stakeholders facilitate project planning and implementation. • High level corporate support of rigorous environmental policies provides long-term stability for project planning and implementation. • Cutting edge rehabilitation techniques often requires experimentation and adjustment over time. • Constant results monitoring and assessment is essential.

• University of Saskatchewan to look at reconstructing boreal forest disturbed by oil sands mining;

Impact on company

• Cooperating with Athabasca, Chipewyan and Mikisew Cree First Nations elders in a study to collect and record the location and uses of traditional medicinal plants in areas proposed for oil sands development to aid in the re-establishment of these plants when the land is reclaimed.

The return of disturbed sites to healthy functioning ecosystems helps ensure sustainability a long term license to operate. The time and funding committed to research and the use of best practices has shown Syncrude that sound environmental practices are also good economic practices.

Stakeholders and roles Athabasca, Chipewyan and Mikisew Cree First Nations: provide traditional ecological and cultural knowledge to ensure reclamation programs meet future Fist Nation needs. Alberta Environment: regulatory responsibilities, research and certification of reclaimed lands.

Outcomes Benefits

Contact information Ron Lewko Team Leader, Environmental Research 780-970-6874 lewko.ron@syncrude.com Syncrude Canada Ltd. 9421 – 17th Avenue Edmonton, Alberta, T6N 1H4 Canada

www.syncrude.ca

Economic Rehabilitation of disturbed land is a normal cost of doing business. For oil sands operations, it is a significant element of the ‘social licence’ of the business. The extensive research and planning effort put in by Syncrude and its stakeholder alliances has reduced this business

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Industry: Paper and forest products Duration: 2006 – 2011 Location: NW Alberta Case study type: Research

Earthcover, waterbird and water chemistry inventory for Weyerhaeuser Alberta Forest Management Areas Weyerhaeuser, one of the world’s largest forest products companies, has offices or operations in 10 countries with customers worldwide. Weyerhaeuser is principally engaged in the growing and harvesting of timber; the manufacture, distribution and sale of forest products; as well as real estate development. It is the world’s largest private sector owner of softwood timberland and holds logging rights to more than 5.35 million hectares of land in Canada. Weyerhaeuser has approximately 16,500 employees globally including approximately 1,900 employees at 7 operations in Canada. Canadian operations currently include facilities in the provinces of British Columbia, Alberta, Saskatchewan and Ontario, producing a range of pulp, lumber and engineered wood products for Canadian and international markets.

Weyerhaeuser’s perspective on biodiversity

• protecting soil stability and long-term productivity;

Impacts on biodiversity

• providing a diversity of habitats for the conservation of biological diversity;

Forest operations can have impacts on biodiversity during the harvesting, hauling and production phases. These can include direct loss, degradation or fragmentation of habitat due to harvest methods as well as air and water-borne pollutants from processing facilities. One area of concern is the potential to damage wetlands and fish habitat. Weyerhaeuser has operated in Canada since 1965 and holds the philosophy that sustainability of the forests is not only key to a healthy planet, but also key to its own success and growth. In Canada, Weyerhaeuser manages public forestland under long-term licences through government regulated tenure systems. First Nations, environmental organizations, local communities and other stakeholders are invited to comment on management plans.

Sustainable forest policy

• meeting or exceeding applicable water-quality laws and best management practices to protect water quality;

• protecting species of concern, including cooperating with government agencies to determine how forestlands can contribute to their conservation. Where species of concern are present, Weyerhaeuser seeks to design and implement forest-management practices to help in the conservation of these species and the habitats they need. It also engages in cooperative research to expand its knowledge of the needs of these species. For example, for woodland caribou, Weyerhaeuser initiated a 5-year deferral of timber harvest on 82,000 hectares of key caribou range in Alberta. This allowed time to develop research-based forest management plans which address important caribou habitat areas and a recovery planning process to be put in place by the provincial government.

Weyerhaeuser manages its forests for the sustainable production of wood and wood products that meet customers’ needs. Weyerhaeuser is committed to independent certification of its forest management practices and products and to meeting the principles and objectives of applicable forest certification systems. Its Canadian operations are certified to a third-party audited forest management standard, the Sustainable Forestry Initiative Standard (SFI), which is recognized by the Programme for Endorsement of Forest Certification (PEFC), Weyerhaeuser’s policy applies to company-owned and managed lands worldwide and includes:

Environmental core policy

• harvesting at sustainable rates;

• managing the environmental impacts of their business activities and products;

• reforestation by planting or planned natural-regeneration;

It is Weyerhaeuser’s core policy to be responsible environmental stewards wherever it does business and may have an environmental impact. It practices sustainable forestry, sets and meets goals to reduce pollution, conserves natural resources and energy, and continually improves its environmental performance. All employees and leaders worldwide are accountable for managing and operating all businesses by: • complying with all applicable environmental laws and company environmental standards;

• resolving noncompliance promptly; 82 Canadian Business and Biodiversity Program – 2010 Corporate Case Studies

• ensuring all personnel understand environmental obligations, acquire education and training to enable them to carry out these responsibilities and understand that they are a critical part of their jobs; • tracking and publicly reporting on environmental performance.

Environmental compliance Weyerhaeuser has environmental audit programs to track compliance. In addition to identifying potential risks and areas for improvement, these audits also identify best practices, which are then shared across the company. Weyerhaeuser strives to meet or exceed all applicable water quality requirements. It recognizes the contribution of wetlands and water to biodiversity and best management practices are developed and shared that protects water quality, waterbodies and riparian areas.

Supply chain Suppliers must comply with Weyerhaeuser’s EHS requirements. They must also act in accordance with Weyerhaeuser’s supplier code of ethics when working on its behalf.

Earthcover, waterbird and water chemistry inventory for Weyerhaeuser Alberta Forest Management Areas Rationale Making sound management decisions pertaining to access, harvest locations and timing, as well as research and many other activities, requires a wide breadth of information. The information gained from these wetland and waterbird inventories will provide Weyerhaeuser managers and other industries and organizations with the knowledge needed to make environmentally sound decisions in and around wetlands and other aquatic habitats.

Description Three-quarters of Canada’s forest are in the boreal. The boreal (or “northern”) forest is a vast area stretching through Canada, Alaska, Norway, Sweden, Finland and Russia. About 70% of the boreal forest in Canada remains undeveloped. It is home to the world’s largest populations of caribou, wolves, grizzly bears and lynx. It is also the breeding ground for an estimated one-third of North America’s land birds and 40% of its waterfowl.

Weyerhaeuser has supported a number of projects that relate directly to sustainable management of the boreal forest. In 2006, Weyerhaeuser and Ducks Unlimited Canada agreed to fund and conduct jointly a 5-year research project on migratory bird habitat on 2.1 million hectares of Weyerhaeuser-managed land in Alberta. This area includes the Forest Management Areas (FMAs) of Drayton Valley, Edson and Grand Prairie. The objectives of this project are to collect information on waterbird populations and water chemistry and to create the fundamental data layers necessary to provide a GIS-based wetland mapping and classification system for Weyerhaeuser Alberta FMAs. The results of this project will lead to watershed-based forest management plans that will help protect key wetlands, help maintain watershed health, establish enhanced best management practices to advance sustainable development, and provide better information to protect key nesting and stopover areas for a multitude of North America’s migratory waterbirds.

Earthcover inventory Mapping and classification will result in 25 to 40 wetland and upland cover types being identified. This will be coupled with detailed site descriptions (vegetation data, landform, position in the landscape), critical in determining the distribution of wetlands and uplands and how water moves across the landscape. The approach is to map the boreal forest as an entire ecosystem using recent LandSat Thematic Mapper (TM) satellite imagery and a standardized hierarchical classification scheme that is suited to analysis at multiple scales.

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Weyerhaeuser Company Earthcover, waterbird and water chemistry inventory for Weyerhaeuser Alberta Forest Management Areas

This enhanced wetland classification recognizes up to 19 wetland types that conform to the five major wetland classes: swamp, bog, fen, marsh and shallow water of the Canadian Wetland Classification System. The purpose of this activity is to provide recent, regional-scale baseline inventory of the various upland and wetland cover types found within the Weyerhaeuser Project area in western Alberta. These inventories will help provide resource managers, researchers, industry, and other organizations with detailed information on the spatial distribution of upland and wetland cover classes for use in making management decisions, research and many other activities. The final product will be up-to-date landscape-level coverage of upland and wetland cover types and an ecologically-based wetland classification system for the project area. This classification will be the foundation for undertaking the waterbird and water chemistry inventories, future modeling, additional research and potential area change assessments. This information will then feed in to the development of Best Management Practices around wetlands and timber harvesting.

Water chemistry surveys Water chemistry analysis will help define linkages between uplands and wetlands, and groundwater to wetlands as well as the range of wetland productivity and waterbird use. This will help determine the effects of various land-use practices on wetlands, and guide activities to ensure the maintenance of water quality, water supply, wetland functions and overall watershed health. Surface water will be collected and analysis will be undertaken to measure selected water chemistry parameters for the purpose of understanding relative wetland productivity and to determine a regional water chemistry profile for the project area. Analysis will include characterization of pH, conductivity, salinity, nutrients and dominant ion composition. This analysis will assist in defining: • linkages between uplands and wetlands; • groundwater to wetland linkages; • productivity and waterbird use;

Waterbird inventory

• the range of variability of wetland productivity within the project area.

The goal of conducting waterbird (e.g., ducks, geese, swans, grebes, loons) surveys is not only to gain information about waterbirds and wetland ecosystems but also to contribute to establishing forest management strategies that minimize differences between natural and anthropogenic disturbance on waterbirds. The waterbird inventory will be conducted from a helicopter by surveying all water types (lakes, ponds and streams). Data will be used to identify key wetlands and to develop predictive models that will be used to develop wetland/ watershed-based conservation strategies for the project area.

Collection and analysis of samples for isotopes will assist in determining the relative importance of ground water versus surface water inputs to these systems. This in turn will allow development of hypotheses on the effects of various land-use practices on wetland water quality and productivity. These data will help determine how landscape features (hydrology, relief, till deposits) may affect wetland productivity.

In each year of the project, Ducks Unlimited Canada will conduct two waterfowl breeding pair surveys (May, June) and two brood surveys (June, July) that will include an inventory of other wetland-associated migratory birds.

84 Canadian Business and Biodiversity Program – 2010 Corporate Case Studies

Ducks Unlimited Canada and Weyerhaeuser will work together to develop and promote new science-based sustainable development activities, which will guide better land-use decisions. An initial collaborative research topic to build on the knowledge gained through the partnership will focus on assessing watershed vulnerability and, in turn, on determining the resiliency of varying amounts of wetland to harvesting activities.

Earthcover, waterbird and water chemistry inventory for Weyerhaeuser Alberta Forest Management Areas Weyerhaeuser Company

Biodiversity This project will address knowledge gaps and lead to an enhanced understanding of the boreal wetland systems (wetland types – forested and non-forested, distribution, extent and connectivity throughout the landscape), associated waterbird biodiversity and forest hydrology for the three Weyerhaeuser FMA’s in Alberta. This information will help advance sustainable development, help protect key wetland systems and maintain watershed health that in turn will benefit biodiversity and the people of Alberta.

Lessons learned In addition to supporting Ducks Unlimited Canada’s inventory work, Weyerhaeuser will collaborate on research to develop, improve and inform on best management practices including stream and lake buffers and effect of roads on subsurface hydrology.

To date, this project has helped to enhance the comprehensive picture of interconnectivity of water on the landscape. It has allowed foresters to better understand the relationships between surface and subsurface water, and it has provided tools, such as improved monitoring methodologies, that will help identify potential impacts on sensitive or key waterfowl habitats.

Communication Weyerhaeuser believes that hands-on, community based environmental education is essential to help people understand issues and make informed choices. Weyerhaeuser supports and participates in selected environmental education programs that focus on developing critical thinking skills and improving environmental literacy.

Stakeholders and roles Weyerhaeuser: Weyerhaeuser provided funding support (through FRIAA Association), forest management expertise, in kind contributions and shared the project management role. Ducks Unlimited Canada: DUC responsibilities included project management, field data collection and data analysis. They also provided wetland and waterbird expertise and project funding.

Outcomes

Impact on company The results of this work will lead to enhanced wetland mapping and tools to advance watershed-based forest management planning and practices on forestlands managed by Weyerhaeuser Company.

Contact information Wendy Crosina Manager Forest Ecology – Wildlife Biology 780-733-4203 wendy.crosina@weyerhaeuser.com Weyerhaeuser Company Alberta Timberlands 11553 154 Street NW Edmonton, Alberta T5M 3N7 Canada www.weyerhaeuser.com

Benefits Economic Information gathered during the course of this project will help Weyerhaeuser forest managers make more informed decisions on such things as harvest block location and road and culvert placement. Understanding both overland and underground water flow allows managers to strategically place operations to minimize the impact on the environment and reduce such things as road erosion and seedling mortality. This has the potential to reduce road maintenance and silviculture costs.

Canadian Business and Biodiversity Program – 2010 Corporate Case Studies 85

Lessons learned The following is a brief summary of the essential lessons learned by the case study contributors which are scalable to all sizes and types of business. These lessons are elaborated in the Business & Biodiversity Guide document prepared by the CBBP.

Social licence Successful businesses must, over the long term, operate in harmony with their social and ecological surroundings.

Corporate leadership The highest levels of management must be enthusiastic supporters. High level leadership carries the responsibility to provide the needed tools for bottom-up implementation, including strategic and action planning, personnel training, access to technical support, incentives, resources and appraisals of achievement.

“We know that tomorrow’s jobs are going to go to those who can see that the future depends on environmental progressiveness, and that’s the race that we plan to win.” Avrim Lazar, President & CEO of FPAC, on the announcement of a Boreal forest agreement among Canada’s forest industry and environmental groups, May 18, 2010.

Corporate policy and strategy Corporate biodiversity strategies need to be flexible and adaptive. As for all other significant areas of corporate accountability, for the area of biodiversity conservation and sustainable use corporate goals and objectives need to be set, accompanied by ways to measure progress towards them. A high level policy needs to be accompanied by operational strategies and action plans at all levels in the organisation, with appropriate assignment of accountabilities and opportunities for periodic reassessment and adjustment. Build a corporate culture for sustainability at all levels in the organisation. Demonstrate long-term commitment. Communicate fully, frequently and in simple terms to maintain enthusiastic internal and external collaboration. Engage employees in in-house conservation efforts. Set staff accountabilities at all levels and provide training where needed. Collaborate openly and transparently at the local level to establish conservation priorities. Lead by example.

86 Canadian Business and Biodiversity Program – 2010 Corporate Case Studies

Experience has shown that companies that can demonstrate a strong track record on conservation can attract more enthusiastic and committed employees, especially among young people.

Supply chain and business partners Life cycle approach is essential to address direct and indirect impacts of business activities on biodiversity. Suppliers and partners must be following the same policies as the business to maintain its integrity and commitment.

Community engagement Partnerships with respected environmental organizations can be key to making meaningful progress on biodiversity conservation issues. It can serve to leverage the funding, resource and expertise capabilities of each organization. The loss of community support can, conversely, spell the demise of operations. Earning this support takes time and genuine, sincere effort from wellconceived programs that resonate with community values.

Data and information Progress against objectives must be rigorously measurable and measured objectively. Dependable data sources are of critical importance, but reliable biodiversity data can be very difficult to obtain. Be prepared not to find a simple metric for biodiversity reporting.

Communications If people don’t know what you’re doing, neither they nor you can optimise benefits. Frequent communications on progress and directions in conservation will help maintain momentum. A significant difficulty with biological information is in obtaining consensus on the science. It is often advantageous for a company to support external research, through universities or consultants, to provide a third party perspective.

Building trust Industry’s real commitment to the conservation of biological diversity can be regarded skeptically by various groups. Building trust is a critical step to achieving success. Independent verifications and audits of management plans can help build credibility. However, every little bit helps and the integration of biodiversity conservation into a business management plan is important.

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The Canadian Business and Biodiversity Program initiatives Canadian businesses will need a variety of products and tools to assist them in managing for biodiversity conservation. The Secretariat, from recommendations coming out of the Montreal planning conference, is developing a series of initiatives designed to help Canadian businesses address biodiversity conservation issues: A biodiversity conservation guide for business. Biodiversity conservation case studies. Corporate biodiversity awards. Dedicated Website. Communications and promotional products. Forum for the interaction of industry leaders and conservation practitioners. Workshops and conferences. The initial thrust of the Secretariat has been the production of this case studies document and the biodiversity conservation Guide which will incorporate the lessons learned from the case studies with other cutting edge conservation practices relevant to Canada. The Guide will be a living document, with frequent updates, and the initial publication will be ready by fall 2010.

The successful conservation and restoration of Canada’s natural resources can be a very costly and long term venture. The sharing of experience and gained knowledge, especially with those who are just starting out, can be instrumental in developing and implementing cost effective programs.” Peter MacConnachie, Sr. Sustainability Issues Management Specialist, Suncor Energy

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Case studies index Alcoa: Ecosystem services review of an aluminum smelter in a biosphere reserve

Canadian Cattlemen’s Association: CCA Environmental Stewardship Award

Granby Zoo: In situ conservation of endangered species: Recovery of the Spiny Softshell Turtle in Quebec

Holcim (Canada) Inc: Biodiversity conservation through quarry rehabilitation

Hydro-Québec: Conserving biodiversity along distribution lines

L’Oréal: Responsible sourcing of argan oil

Nestlé Waters Canada: Biodiversity monitoring

Ontario Power Generation: Ontario Power Generation Biodiversity Policy

Procter and Gamble: Everyday Wildlife Champions

Rio Tinto Alcan: Land use stewardship standard implementation in facilities worldwide

Shell Canada: Southwest Alberta Montane research program

Suncor Energy: Suncor Oiled Seabird rehabilitation program

Syncrude Canada: Rehabilitated sites

Syngenta Canada: Atlantic Canada Best Management Practices Program

Vale Inco: The Regreening of Sudbury and the 2009 Biodiversity Action Plan for Greater Sudbury

Weyerhaeuser: Earthcover, waterbird and water chemistry inventory for Weyerhaeuser Alberta Forest Management Areas

Xstrata Canada: The biodiversity challenge at Xstrata Canada Operations

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Canadian Business and Biodiversity Program Steering Committee Business

Environmental NGOs

Deloitte Ms. Johanne Gélinas Partner (Chair)

Alberta Biodiversity Monitoring Institute Mr. Kirk Andries Executive Director

Ontario Power Generation Mr. Steve Hounsell Senior Adviser, Corporate Sustainable Development Group

Wildlife Habitat Canada Mr. Len Ugarenko President

Suncor Energy Mr. Peter MacConnachie Sr. Sustainability Issues Management Specialist

Academia

Syngenta Canada Ms. Judy Shaw Government Affairs Director Xstrata Canada Mr. Robert Prairie Director – Ecological Effects Assessment

University of Guelph Professor Joe Ackerman Dept. of Integrative Biology

Staff Mr. Reg Melanson, Head, CBBP Secretariat Mr. John Herity, Adviser Ms. Sylvie Noguer, Adviser, Deloitte

Government and institutions Environment Canada Mr. Mark Cantwell, Lead, Business and Biodiversity Ecosystem and Biodiversity Priorities Division Secretariat for the Convention on Biological Diversity Mr. Ravi Sharma Director, Implementation, Technical Support and Outreach

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Contact information Reg Melanson Head, Canadian Business and Biodiversity Secretariat 1750 Courtwood Crescent, Suite 310 Ottawa, ON K2C 2B5 Phone: 613-722-2090, ext. 242 Toll-Free: 1-800-669-7919 Fax: 613-722-3318 reg.melanson@businessbiodiversity.ca

Johanne Gélinas Chair, Canadian Business and Biodiversity Program Steering Committee Deloitte 1 Place Ville Marie, Suite 3000 Montreal, QC H3B 4T9 514-393-5408 jgelinas@deloitte.ca

www.businessbiodiversity.ca

Steering committee members

Lowe-Martin Group The Lowe-Martin Group (LMG), a recognized leader in environmentally sustainable printing, is a supporter of the CBBP and has provided printing services for this document. LMG maintains ISO 9001 certification, Forest Stewardship Council’s Chain of Custody certification, and the Environmental Choice Program’s EcoLogo certification for lithographic and digital printing services. LMG has received much formal recognition for its work in this area, including, in both 2008 and 2009, the Gold Award as “the most environmentally progressive printer in Canada” at the annual Canadian Environmental Printing Awards. LMG has been in business for over 100 years and understands that in order to thrive for another century; it must protect our resources and our planet. The LMG corporate philosophy includes encouragement of investment in greener processes, sharing ideas and best practices, and demonstrating that environmental sustainability truly does provide a competitive advantage. “We go over and above the standard to eliminate waste and reduce consumption, and meet our goals by establishing an emphasis on conservation within our corporate culture”, Ward Griffin, President & CEO. Designed by Joannie Sauvageau, Graphic designer at Deloitte.