Certification Overview

Photo: Marcos Amend

Certification Overview

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LIFE Institute Website: www.institutolife.org LIFE Institute Rua Victor Benato, 210 Bosque Zaninelli • Pilarzinho CEP: 82120-110 • Curitiba(PR) • Brasil +55 41 3253-7884 / +55 41 3252-7092 Email: life@institutolife.org

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Estúdio Contramão

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Marcos Amend - www.marcosamend.com Gerson Sobreira - www.terrastock.com.br Roberto Okamura - www.fotoaventura.com.br Zig Koch - www.zigkoch.com.br www.shutterstock.com Michelle Galdi Spinelli Bianca Brasil

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Place and Date

Bianca Brasil Lee Bloch Curitiba, Brazil • May 2012

© LIFE Institute Reserves the rights provided by copyright law, in Brazil and internationally, according to the terms defined in Brazilian and foreign legislation relevant to this matter. Any form of use and/or reproduction of part or all of these Document, including photocopies or eletronic format, must first be expressly authorized by LIFE Institute.

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The challenges facing biodiversity conservation have never been as great as they are now, when pressures on ecosystems are increasing to unprecedented levels due to human population growth, increased unsustainable consumption and production patterns, spread of invasive alien species, coupled with climate change impacts.

The international community has succeeded at COP10 of the Convention on Biological Diversity to agree on a new global agenda for biodiversity for the decade of 2011-2020, including a set of 20 targets – the Aichi Targets.

However, we will only succeed in meeting those targets to the extent we manage to mainstream biodiversity in all sectorial policies and in all business strategies and practices.

Of paramount importance is the wiliness of all citizens, business and governments to practice responsible consumption. To help support such cultural and economic shift we need better information on production patterns available to all in a transparent and reliable way. How to ensure that the information provided by producers of goods and services are reliable when they make claims regarding biodiversity conservation, use and benefit sharing?

Voluntary certification is one such mechanism. There is a growing proliferation of certification schemes everywhere, but most of them are product-oriented or process-oriented and have little bearing on biodiversity issues. There is a scarcity of performance-oriented certification mechanisms focused on biodiversity issues – this precisely what LIFE Certification promotes.

The Brazilian Ministry of the Environment is proud to be a supporter of the LIFE Certification initiative since its inception. We believe the LIFE Institute has developed and tested a comprehensive and adequate set of biodiversity criteria to evaluate the environmental performance of business initiatives. This has been done with partners in the academy, the non-governmental (NGOs) and the private sectors, and taking the objectives of the Convention on Biological Diversity as a reference.

Several important Brazilian companies have decided to use the LIFE Certification mechanism and have found it to be very useful in identifying where they need to enhance their performance regarding biodiversity to meet the highest standards.

LIFE Certification was born in Brazil but it has the potential and the ambition to become global, as a mechanism like it is needed everywhere. Considering that Brazil is a megadiverse country of continental proportions facing all the kinds of challenges and opportunities in handling biodiversity issues faced by all countries, I believe that a certification mechanism developed for Brazil can be utilized everywhere else in the world, with appropriate adjustments.

I invite all those committed to implement the Aichi Targets to examine and test the criteria developed in Brazil for the LIFE Certification and apply them wherever possible.

Braulio Ferreira de Souza Dias National Secretary for Biodiversity and Forests Brazilian Ministry of the Environment December, 2011.

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It gives me great pleasure to support this first publication of our partners of the LIFE Institute. Brazil, by its very nature, is a critical player in the area of business and biodiversity and LIFE has been an important partner of the business outreach programme of the Secretariat of the Convention on Biological Diversity (CBD). In SĂŁo Paulo in November 2005, we held the second global meeting on business and biodiversity. The following year, at COP-8, held in Cutitiba, we saw the first ever decision on business and biodiversity be adopted by the Parties.

The Secretariat of the CBD is pleased that the LIFE Certification system addresses a core objective of the Convention: to engage the business community in the campaign for the protection of the diversity of life on Earth.

The LIFE Certification was formally launched at the Business and Biodiversity Workshop in Rio de Janeiro which was co-hosted by the Secretariat. This two-day event attracted well over 250 decision makers in business and helped to raise awareness of the importance of biodiversity to the corporate community. I am pleased to note that as a follow-up to the workshop, Brazil is now embarking on establishing a business and biodiversity initiative, which will continue to raise awareness and help companies to mainstream biodiversity and the goals of the Convention into their day-to-day activities. We are pleased that LIFE will be an integral part of this effort, and we look forward to continuing to work with them in this regard.

We also feel that LIFE Certification itself is important in helping companies deal with concerns surrounding biodiversity. A major challenge for companies, both large and small, is to understand, assess, mitigate and measure their environmental impact. With an issue as complex as biodiversity, this challenge is doubly daunting. By definition, industrial production and consumption processes both depend, and have an impact upon biodiversity.

Customers globally are ready to use their purchasing dollars for a sustainable future, but without appropriate - and verifiable - environmental performance standards, there will always be the risk of greenwashing. By developing and applying well-tested methodologies to monitor how much businesses in Brazil, and elsewhere, are protecting biodiversity, and by providing leading enterprises with a recognized label, LIFE helps to harness the energy of business towards the achievement of the Aichi Targets for 2020.

LIFE Certification is thus an important tool in helping companies to meet this challenge, and through this, to help them to reduce their environmental footprint. Certifications such as that developed by LIFE are crucial to moving the biodiversity agenda forward - more so as LIFE’s technology and procedures were developed entirely in an emerging megadiverse country and a leader in the Convention. We encourage LIFE to continue to expand its efforts in this area, and we invite the global business community to use its Certification system to guide future investments.

Ahmed Djoghlaf Executive Secretary Convention on Biological Diversity December, 2011.

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From this distant vantage point, the Earth might not seem of any particular interest. But for us, it’s different. Look again at that dot. That’s here, that’s home, that’s us. On it everyone you love, everyone you know, everyone you ever heard of, every human being who ever was, lived out their lives. The aggregate of our joy and suffering, thousands of confident religions, ideologies and economic doctrines, every hunter and forager, every hero and coward, every creator and destroyer of civilization, every king and peasant, every young couple in love, every mother and father, hopeful child, inventor and explorer, every teacher of morals, every corrupt politician, every “superstar,” every “supreme leader,” every saint and sinner in the history of our species lived there – on a mote of dust suspended in a sunbeam.

— Carl Sagan, Pale Blue Dot: A Vision of the Human Future in Space

LIFE LOGO

The above text by Carl Sagan was the element that inspired the LIFE logo.

LIFE stands for: Lasting Initiative For Earth.

It is the perfect visualization for the most noble of the legacies we can leave to our descendants.

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MESSAGE FROM THE CREATORS OF LIFE CERTIFICATION “Providing tools to the business sector that reconcile biodiversity conservation and their production requirements is a crucial task in the world today. Values such as ethics, scientific knowledge and sense of priority are not easily transformed into practical means to promote sustainability and social responsibility. Clearly, we need to engender alternatives to reverse the historical loss of biodiversity and to stop the conflicting views between ‘conservation of natural heritage’ and ‘models of development’. A new way of interpreting the use of natural resources, however, has been supported by different players worldwide. Recognition of the relevance of ecosystem services for the balance of the planet has already become a concern for governments, corporations and institutions in the third sector. It is clear that the destruction of nature and its consequences need to be brought to a halt in order to mitigate social and economic losses which can only become more severe and intense over time. Fortunately issues such as business interests and biodiversity conservation, which have been conflicting for the most part until recently, have just started to come together in a virtuous process. The creation of LIFE Certification is closely linked to the conviction that new initiatives, to improve the relationship between businesses and biodiversity, are needed for the emergence of an agenda committed to life and to the future.”

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Fundação Grupo Boticário de Proteção à Natureza Maria de Lourdes Nunes • Executive Director

Gráfica e Editora Posigraf Giem Guimarães • President

Fundación AVINA Miguel Milano • Representative for South Brazil and Pantanal Region

Sociedade de Pesquisa em Vida Selvagem e Educação Ambiental (SPVS) Clóvis Borges • Executive Director

LIFE BOARD OF DIRECTORS PRESIDENT Clovis Borges Executive Director - SPVS VICE-PRESIDENT Miguel Milano Director - Permian Brazil Representing AVINA on the board MEMBERS Angel Alberto Yanosky Diretor Executivo Guyra Paraguai

Miguel Gellert Krigsner President of the Board of Directors – O Boticario Group

Fernando Fernandez Professor Ecology Department Federal University of Rio de Janeiro

Paulo Monteiro Barbosa Filho Sustainability Director – EBX Group

Giem Guimarães President – Posigraf

Pedro Wilson Leitão Filho President of the Board of Directors - FUNBIO

Jorge Miguel Samek Director – Itaipu Binational

Thomas Lovejoy President – Heinz Center for Science, Economy and Environment

Mario Prestes Monzoni Neto Coordinator - Study Center of Sustainability of Getúlio Vargas Foundation LIFE FISCAL BOARD Everson Breda Partner – ZHC Group

Jucimar Nunes Partner – Valim Nunes Associates

Lucas Dezordi Chief Economist – Inva Capital

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INDEX PREFACE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 LIFE INSTITUTE: FROM IDEA TO REALITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

LIFE’S MISSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

LIFE’S VISION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

1. LIFE CERTIFICATION: DEVELOPMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 2. CERTIFICATION METHODOLOGY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

LIFE CERTIFICATION PREMISES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

STEP 1 – Adaptation of organization management to LIFE Principles, Criteria and indicators. . . . . . . . . . . . . . . 21

LIFE CERTIFICATION PRINCIPLES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

STEP 2 – Biodiversity Estimated Impact Value Calulation (BEIV) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

STEP 3 – Defining the minimum performance in Biodiversity Conservation Actions (BCAminimum) . . . . . . . . . . . . 28

STEP 4 – Evaluating of Performance in Biodiversity Conservation Actions (BCA) . . . . . . . . . . . . . . . . . . . . . . . . . 30

Group 1 – Protected Areas Officially Implemented . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Group 2 – Other areas of Interest for Conservation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Group 3 – Taxa of interest for Conservation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Group 4 – Minimization of Impacts on Biodiversity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Group 5 – Actions of Indirect Contribuition Biodiversity Conservation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

3. TECHNICAL DOCUMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 4. LIFE CERTIFICATION MANAGEMENT SYSTEM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 STRATEGIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 RISKS AND OPPORTUNITIES OF PRIVATE-SECTOR ENGAGEMENT UN CONSERVING BIODIVERSITY . . . . . . . . . . . . 41 REFERENCES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 PARTNERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

ABOUT THIS DOCUMENT This document was created with the aim of presenting LIFE Institute and LIFE Certification in its entirety.

The reader is provided with information concerning:

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How LIFE Institute and LIFE Certification were created

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Methodology development

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Step-by-step guide to LIFE Certification process

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LIFE Certification management system

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Strategies

Upon thorough and complete review of this publication, the reader is expected to understand: • •

Methodologies supporting LIFE Certification Knowledge of LIFE mechanisms ability to assist the business sector in:

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Incorporate biodiversity conservation into the business management process

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Use of proven, positive results for conservation

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Photo: Zig Koch

Preface

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Approximately 40% of the global economy is based on products sourced from biodiversity or its ecological processes. It is crucial to preserve the diversity of species, ecosystems and the wealth of genetic biodiversity in order to maintain the natural balance of the Planet and also to secure businesses continuity.

Until recently, the loss of biodiversity was a natural and acceptable outcome of development and economic growth. In this way through the environmental management tools available until this moment, the loss of biodiversity was compensated in various ways not necessarily indicating or resulting in effective conservation actions. Fortunately we are beginning to notice a change in societies behavior as evidenced countless initiatives worldwide seeking to incorporate biodiversity conservation into the business decision-making process. The international community has increasingly demanded an active positioning by the business sector in relation to the conservation of natural resources. Consequently, biodiversity conservation as a voluntary corporate action recognized by a system of independent evaluation, represents a promising opportunity.

Studies in Biology and Ecological Economics have demonstrated that the sustainability of resources will only be achieved if there is a genuine concern with the conservation of biodiversity and ecological processes. As a result of the increasing recognition of the interdependence between biodiversity conservation and its interface with environmental services and businesses operations, the urgency in establishing a concrete management mechanism was identified. The need to conserve biodiversity through the maintenance of natural heritage and through strengthening the engagement of the private sector with environmental issues has set the scene for the creation of LIFE Certification.

LIFE Institute

“One of the more promising initiatives, coming out of Brazil and gaining international prominence, is the LIFE Institute. They have created and are responsible for managing LIFE Certification, which qualifies and recognizes public and private organizations that promote biodiversity conservation and sustainable development initiatives, thus ensuring the protection of ecosystem integrity.�

TEEB For Business

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Photo: Shutterstock

LIFE Institute: From Idea to Reality

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LIFE INSTITUTE: FROM IDEA TO REALITY Since its establishment in 2009, LIFE Institute has been working to develop a consistent and robust methodology based on technical and scientific specifications and on effective actions to conserve biodiversity.

LIFE Institute has the recognition of the Convention on Biological Diversity (CBD), which believes LIFE Certification to be a pragmatic method of establishing direct commitment from organizations with the global goals of biodiversity conservation.

Thus, according to its purposes, the main result of LIFE Institute’s innovative concept rests on the dissemination of concrete science-based actions for biodiversity conservation. These actions result inequivalency to the responsibilities derived from environmental impact of activities carried out by organizations.

LIFE Institute is responsible for the development and management of LIFE Certification. The certification aims at qualifying and recognizing public and private organizations that develop positive and effective actions towards biodiversity conservation. These actions henceforth result in contributing to the maintenance of natural areas and their ecological processes and the perennial supply of environmental services (water cycle, climate regulation, raw materials supply, etc.).

LIFE Institute deems the potential of certification as a means of recognizing companies achieving practices and commitments with regards to the biodiversity conservation. LIFE Certification creates positive differentiation providing formal and credible recognition to businesses in the market place while promoting dissemination of these actions across the business world.

LIFE´S MISSION

To recognize and add value to both private and public institutions that develop favorable actions to biodiversity conservation.

LIFE´S VISION

To be recognized internationally as a reference in the promotion of the integration between business and biodiversity conservation by 2020.

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Photo: Zig Koch

LIFE Certification: Development

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LIFE CERTIFICATION: DEVELOPMENT Since 2009 a group of specialists, technicians, consultants, business managers, and representatives from government, academia and civil society are working to develop a complete certification system, keeping in mind:

• Conservation of biodiversity as a voluntary act • The need for a conservation performance that is compatible with impacts on biodiversity and the capacity for investment, never losing sight of promoting the inclusion and engagement of small/ medium businesses • Objectivity through the quantification of impacts and scoring of conservation actions based on technical and scientifically recognized criteria • Applicability to businesses of any size or sector

This process involves more than 198 experts and 96 organizations in public meetings, technical meetings and pilot audits, and was initiated with an extensive research on an international level on actions already carried out in this direction.

Benchmarking In 2008, even before the creation of LIFE Institute, a wide and extensive research is conducted to ensure the innovation of the mechanism being developed, focused on biodiversity conservation actions applicable to the entire business spectrum regardless of the size or line of business of the organizations, while at the same time differentiating the performance required according to the specifics of each business.

Creation of the Working Group One of the first steps into developing the Certification is the creation of a multidisciplinary team of experts: biologists, mathematicians, engineers and environmental managers who developed the methodology of LIFE Certification through a complex and integrated work dynamics.

Stakeholder Participation In the process of developing the LIFE Certification methodology, several stakeholder consultations took place such as: public meetings with NGOs, academia, government agencies and private companies; technical meetings with a range of specialists in the areas of environmental management and biodiversity conservation; provision of documents and information via website; creation of a Technical and Scientific Committee; and creation of a Permanent Technical Committee.

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LIFE Institute Governance LIFE Institute’s Governance is built upon a three-fold manner by representatives from the second sector (private sector), the third sector (non-profit organizations) and academia.

Permanent Technical Committee LIFE Institute established a Permanent Technical Committee as an advisory body to the Board of Directors. The committee is comprised by members of the private sector, the civil society and prestigious experts in the area of biodiversity conservation. The aim of the body is to provide guidance to the development and continuous improvement of the methodology providing support aligned with the main international strategies for biodiversity conservation.

Pilot Audits Testing and refining of the methodology in preparation for the release of Version 1.0 also featured pilot audits conducted in companies of different sizes and sectors, which were located in different biomes.

The pilot audits were performed by professionals with extensive experience in different environmental certification systems.

“A major initiative, the LIFE Certification scheme was submitted to Nagoya and was welcome so we are extremely delighted to see the leadership of the business community in Brazil.”

Ahmed Djoghlaf ex-Executive Secretary Convention on Biological Diversity 16

Photo: Roberto Okamura

Certification Methodology

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CERTIFICATION METHODOLOGY LIFE Certification assumes that real engagement with biodiversity conservation can be assessed in two complementary ways: a ) The inclusion of biodiversity across the board in environmental management b ) Performance of direct, voluntary and effective actions for biodiversity conservation In this way, the methodology is comprised of: a qualitative approach, applied to organizational management; and a quantitative approach, which establishes the minimum performance and evaluates the efficacy of conservation actions that are carried out.

LIFE Certification Methodology encompasses four steps:

Steps

STEP 1 Adjustment of organizational management with the Principles, Criteria and indicators.

Reference documents LIFE Certification Standards: Principles, Criteria and indicators established according to the Premises, which are based on the objectives of the Convention on Biological Diversity (CBD).

STEP 2 Biodiversity Estimated Impact Value (BEIV) calculation

STEP 3

LIFE Technical Guide 01: describes how to calculate the minimum performance score in Biodiversity Conservation Actions (BCAminimum) to be achieved by an organization according to its size and environmental impact.

Establishment of a minimum performance score in Biodiversity Conservation Actions (BCAminimum) required for Certification

STEP 4 Evaluation of performance in Biodiversity Conservation Actions (BCA).

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LIFE Technical Guide 02: describes the methodology and the scoring system for Biodiversity Conservation Actions (BCA) evaluation.

THE FOLLOWING FIGURE SHOWS A SUMMARY OF THE LIFE CERTIFICATION METHODOLOGY

“...Other motivating factors include the biodiversity certification, such as the Brazilian LIFE Institute (Lasting Initiative For Earth) which has begun to unite large Brazilian companies, the United Nations Convention on Biological Diversity and the Brazilian government.”

Biosphere Economy Volans

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LIFE CERTIFICATION PREMISES a) Conserving biodiversity means maintaining conditions favorable to human life on Earth. b) Biodiversity conservation is essential for human well-being and for maintaining businesses. c) All enterprise cause some environmental impact due to the use of natural resources, regardless of its management. d) All negative impacts on the environment should be avoided; when impacts are unavoidable, they should be minimized. e) Impacts that cannot be avoided, even those already minimized, must be compensated, even if the compensation is an action limited to conservation, given that each form of life and each ecosystem have a unique tangible and intangible value. f ) Scientific research, as well as the contribution of associated traditional knowledge where applicable, is fundamental to the monitoring and development of new technologies promoting the conservation autochthonous biodiversity, and to compensating for those inevitable or residual impacts. g) Initiatives favorable to nature conservation and ecosystem services, based on the best scientific knowledge, should contribute immediately to reversing the current trend of loss of biodiversity in all hierarchical levels - genes, species, ecosystems, biomes - their interactions and integrations, and should be evaluated and recognized. h) The precautionary approach and the ecosystem approach, both basic pillars of the Convention on Biological Diversity, can be put into practice in different ways as a function of local, regional, national and international conditions, always considering the rights of indigenous peoples and traditional and local communities. Both biological and cultural diversity are central components of the ecosystem approach. i) Conservation management and the use of biodiversity should consider the importance of fair and equitable distribution of the derived benefits.

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Adaptation of organizational management to LIFE Principles, criteria and indicators.

LIFE Certification Standards are derived from premises based on objectives of the Convention on Biological Diversity (CBD), then structured into Principles, criteria and indicators.

Compliance with LIFE Certification Standards depends on meeting all the Principles, Criteria and indicators that are applicable to the audited organization.

A Principle is considered met when all the criteria applicable to the auditee have been met.

A Criterion is considered met when all the applicable indicators are in conformity.

The Standards set forth in this regulation establish the basis for the implementation of LIFE Certification system for any organization.

Photo: Shutterstock

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Step 1

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LIFE CERTIFICATION PRINCIPLES PRINCIPLE 1: Common responsibility Organizations have to operate effectively in biodiversity conservation, considering it as a common good for which everyone should be responsible, regardless their legal status – private or public entities, or the direct or indirect use of biodiversity.

PRINCIPLE 2: Compliance with legislation, agreements, treaties and international programs Organizations of every nature, size or sector should comply with current legislation applicable to its activities, as well as with international treaties and agreements signed by the country where they operate.

PRINCIPLE 3: Biodiversity conservation as an action of additionality Organizations should identify, carry out or support, and monitor biodiversity conservation actions, in addition to those required by law.

PRINCIPLE 4: Interaction among biodiversity, human well-being and business

Photo: Bianca Brasil

Organizations should operate considering that conservation and the sustainable use of biodiversity are always linked to human well-being, both at individual or collective levels, and to the sustainability of the organization.

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PRINCIPLE 5: Priority and complementarity between environmental management and impact compensation Organizations should observe the following hierarchy when it comes to biodiversity impact management: to avoid generating impacts, to minimize unavoidable environmental impacts, to reverse the caused damage and finally to compensate any residual impacts.

PRINCIPLE 6: Traditional science and knowledge Organizations should promote actions favorable to the conservation and sustainable use of biodiversity that are substantiated by science, considering the contribution of associated traditional knowledge when applicable.

PRINCIPLE 7: Cultural heritage valorization and benefit sharing Organizations should value cultural heritage, respecting the rights of indigenous people and of traditional and local communities considering where applicable, the fair and equitable sharing of benefits that arise from biodiversity and traditional knowledge, as well as associated risks and liabilities.

PRINCIPLE 8: Monitoring and continuous improvement

Photo: Shutterstock

According to the sector and size of their activities, organizations should monitor their negative environmental impact as well as their conservation actions, thus promoting continuous improvement of environmental management with focus on biodiversity.

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Step 2

Biodiversity Estimated Impact Value Calculation (BEIV) Further to the appraisal of the compliance level with LIFE Certification Standards, the next step is to calculate the Biodiversity Estimated Impact Value (BEIV). It is the referential for environmental aspects related to the main impacts on biodiversity that can be quantified.

The environmental aspects evaluated in order to calculate the BEIV were selected based on four criteria:

1. Relevance to global biodiversity loss

2. Feasibility of data measurement

3. Data availability

4. Possibility of collecting data in organizations of all sizes and sectors

Based on the mentioned criteria, five environmental aspects were selected; four of which are indirectly related to biodiversity loss, and one of which is directly related to biodiversity loss.

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For the calculation of Biodiversity Estimated Impact Value (BEIV), aspects indirectly-related to biodiversity loss are evaluated in two ways: quantity and severity.

LIFE methodology considers quantity to be the contribution of the environmental aspect evaluated against a national referential value, obtained from official reports. For example, an organization’s water consumption is compared to the official national levels of water consumption. Similar comparison is conducted with regards to waste generation, energy use and greenhouse gas emissions.

Photo: Shutterstock

The Total Quantity Index (TQI) is obtained by adding the Quantity Indexes (QI) of each environmental aspect:

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The severity of environmental aspect takes into account not only the quantity but also parameters of gravity: the global warming potential of each gas emitted; the ratio of hazardous waste as opposed to non-hazardous waste; water availability in the region where the organization is located as well as its energy matrix.

The Total Severity Index (TSI) is obtained by adding the Severity Indexes (SI) of each environmental aspect:

TSI = w1 SI Re sidues + w2 SI Gases + w3 SI Water + w4 SI Energy

When it comes to the direct impact on biodiversity the evaluation takes into account the Area Occupation Index (AOI):

Area Occupation Index (AOI) In addressing the area occupation impact of a given biome taking into account its fragility, it is necessary to calculate the Area Occupation Value (AOV).

- Enterprise area

- Original area occupied by the biome where the organization is located

- Biome remaining area where organization is located

This value is later transformed into an index due to the need to work in a non-dimensional manner.

The objective of this index is the differentiation between the direct impacts on biodiversity carried out by organization of different sizes, while taking into account how threatened is the biome in which the organization is located.

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Biodiversity Estimated Impact Value (BEIV) The Total Quantity Index (TQI) and Total Severity Index (TSI) combined with the Area Occupation Index (AOI) make possible the calculation of the Biodiversity Estimated Impact Value (BEIV) through the following formula:

Where: BEIV: Biodiversity Estimated Impact Value AOI: Area Occupation Index TQI: Total Quantity Index TSI: Total Severity Index w: weight equals 0,25

Photo: Marcos Amend

Once the Biodiversity Estimated Impact Value (BEIV) is calculated, it is possible to define the minimum performance on Conservation Actions (BCAminimum) that the organization should achieve (step 3).

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STEP 3

Defining the minimum performance in Biodiversity Conservation Actions (BCAminimum) Calculation of the minimum performance in Biodiversity Conservation

Actions (BCAminimum) is determined by two factors: Biodiversity Estimated Impact Value (BEIV) and the size of the organization, represented by its Gross Revenue (GR).

These two components are considered in the LIFE Certification Methodology through a mathematical function so that the minimum performance in Biodiversity Conservation Actions (BCAminimum) will enable to differentiate organizations proportionally with their impacts and their ability to invest.

BCAmin imum = f (GR) â‹… g ( BEIV )

BCAminimum

- minimum performance in Biodiversity Conservation Actions

- Gross Revenue

- Biodiversity Estimated Impact Value

Photo: Marcos Amend

Photo: Michelle Galdi Spinelli

The result of this equation represents the Minim

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The result of this equation represents the minimum performance in Biodiversity Conservation Actions (BCAminimum) that should be carried out by the organization in order to obtain LIFE Certification.

LIFE Institute developed a tool that enables the calculation of the Biodiversity Estimated Impact Value (BEIV) and minimum performance in Conservation Actions (BCAminimum).

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Step 4

EVALUATION OF PERFORMANCE IN BIODIVERSITY CONSERVATION ACTIONS (BCA) LIFE Certification Methodology is developed not only to recognize organizations that implement actions in favor of biodiversity conservation but also first and foremost, to provide strategic guidance to those wishing to incorporate biodiversity conservation into their businesses, or guarantee the efficacy of their actions.

HIERARCHY FOR SCORING CONSERVATION ACTIONS

LIFE Technical Guide 02 was developed according to this hierarchy. It is designed to serve both as a guidance tool for decision making and carrying out actions to conserve biodiversity, as well as to evaluate these actions according to LIFE Certification guidelines.

Biodiversity Conservation Actions (BCA) encompassed in the scoring system are structured in five main groups within LIFE Technical Guide 02. Each of those groups is sub divided into themes that comprise indicators according to the purpose and object of referred actions.

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Scoring can vary depending on type of action, group and theme. Preference will be given to actions with immediate and significant influence to biodiversity conservation.

Group 1 – Protected Areas officially implemented The themes integrating Group 1 refer to the categories of creation, planning and to the biodiversity conservation actions within Protected Areas officially implemented and equivalents to the IUCN categories I to VI. The location of the Protected Areas is an important factor determining the overall score. Protected Areas with more restrictions of use and located within threatened biomes score higher than Protected Areas with less restrictive use and within a less threatened biome. Conservation actions promoting connectivity for mosaics and ecological corridors also receive high scores.

Group 2 – Other areas of interest for Conservation The themes within Group 2 are similar to group 1 and they score considering the same hierarchy; however, they refers to areas of interest for conservation which are not officially implemented, or to areas that are officially implemented but not targeting conservation directly. The scoring system also considers aspects related to Biome threat, size and importance of the area to biodiversity conservation.

Group 3 – taxa of interest for conservation Group 3 defines conservation actions in situ and ex situ for fauna and flora species. The scoring system encourages in situ actions because they have direct impact for conservation of species in their natural habitats. Criteria of rarity, endemism, and threat are considered by the scoring system as well.

Group 4 – Management of Impacts on Biodiversity The themes of Group 4 focus on the Management of impacts on biodiversity and its scoring hierarchy relates to the planning and actions of prevention, control, minimization, restoration and monitoring of impacts. The scoring system prioritize actions for the prevention of impacts and the adoption of sustainable alternatives for resources use/ management and production; followed by actions related with the mitigation and restoration of impacts.

Group 5 – actions of indirect contribution for biodiversity conservation Group 5 refers to actions with indirect benefits for conservation, for example projects of Payments for Environmental Services (PES), the implementation of public policies promoting biodiversity conservation, research and monitoring about possible impacts of genetically modified organisms (GMOs) on local biodiversity, campaigns for conservation, etc.

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APPLICABILITY OF THE LIFE TECHNICAL GUIDE TO DIFFERENT SITUATIONS

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REQUIREMENTS FOR LIFE CERTIFICATION In order to receive LIFE Certification, the minimum requirements in relation to the four steps of the methodology are as follows:

Verification of compliance with the minimum requisites of LIFE Certification is conducted by independent Certifying Bodies, which are trained and credentialed by the LIFE Institute.

“O Boticário is proud to be a part of LIFE Certification for we believe that it is an innovative tool for businesses to invest in biodiversity conservation.”

Miguel Krigsner President of Board of Directors O Boticário Group

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Photo: Shutterstock

Technical Documents

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TECHNICAL DOCUMENTS The following technical documents detail the requirements for LIFE Certification:

“Part of the innovation brought about by the LIFE Certification scheme has been to provide businesses with an opportunity to demonstrate their commitment with the environment, with nature and with biodiversity”

Sean McKaughan Executive Director Fundación AVINA 35

Photo: Michelle Galdi

LIFE Certification Management System

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LIFE CERTIFICATION MANAGEMENT SYSTEM

LIFE Institute is responsible for the development and management of LIFE Certification Methodology in any country advised by local Technical Committees. Independent Certifying Bodies accredited by LIFE Institute are responsible for the evaluation of organizations in accordance with LIFE Certification.

Only Certifying Bodies accredited by LIFE Institute may carry out official audits for LIFE Certification.

To attain accreditation Certifying Bodies must meet a series of requirements established set by international organizations save exemption from conflict of interest, transparency and credibility of the process.

Certification, Monitoring and Recertification Audits After the certification audit (year 0) an organization that receives LIFE Certification will undergo annual audits by the Certifying Bodies in order to verify the organization’s performance as indicated below:

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Flowchart of Certification Process

The flowchart below shows the complete certification process that the organization undergoes during auditing by Certifying Bodies: Organization carries out self-assessment Calculation of Biodiversity Cálculo do Valor Estimado deEstimated Impacto à Impact Value e(BEIV) and the Minimum Biodiversidade do Desempenho Mínimo Performance in Conservation Actions em Açõesminimum) de Conservação (BCA

LIFE Certification Standards

Evaluation scoring of Biodiversity Avaliação eand pontuação das Ações de Conservation (BCA) Conservação daActions Biodiversidade Is the scoring for BiodiversityConservation Actions (BCA) sufficient, considering the calculated minimum performance?

Organization meets LIFE Certification Standards

Yes

No

Yes

Organization selects and contracts Certifying Body

Are adjustments needed to meet LIFE Certification Standards?

Organization carries out and/or supports other Biodiversity Conservation Actions (BCA) until attaining the necessary scoring

Certifying Body carries out certification audit Calculation of Biodiversity Estimated Impact Value (BEIV) and the minimum performance in Conservation Actions (BCA minimum)

LIFE Certification Standards

Certifying Body creates audit report Are adjustments needed to meet LIFE Certification Standards?

Yes

Organization meets LIFE Certification Standards

Evaluation and scoring of Biodiversity Conservation Actions (BCA)

Is the scoring for BiodiversityConservation Actions (BCA) sufficient, considering the calculated minimum performance?

No

Yes

Organization considered eligible to receive LIFE Certification

Certifying Body brings report to Peer Review Report is returned with comments Certification is granted, valid for five years Certifying Body carries out follow-up audits over the next four years

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No

No

Organization carries out and/or supports other Biodiversity Conservation Actions (BCA) until attaining the necessary scoring

Photo: Shutterstock

Strategies

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International Expansion Life Institute, with international headquarters in Brazil, is managementing the expansion process of Certification LIFE in Mercosul countries, Chile and shortly in Europe.

Continuous Improvement Given the dynamic nature of the mechanism, new elements and techniques will be constantly sought after and incorporated to the methodology in order to secure excellence in business and environmental management for biodiversity conservation – always in line with the Convention on Biological Diversity.

Communication LIFE Institute is constantly seeking to expand its communication channels through the dissemination of processes, goals and achievements. LIFE Institute is involved in diverse forums both in Brazil and overseas when it comes to themes related to Business and Biodiversity that has allowed LIFE to be in tune with cutting-edge practices worldwide.

Technical Input LIFE Institute has become a reference in regards to business and biodiversity, having had the opportunity to work side by side with the Convention on Biological Diversity (CBD) in implementing the Brazil Workshop on Business and Biodiversity in 2011. LIFE Institute has also actively participated in forums that the Brazilian government instituted for the internalization of the Aichi Targets, as well as in the creation of the global platform on Business and Biodiversity promoted by the Convention on Biological Diversity. LIFE Institute continues to participate in advisory bodies for other initiatives in Brazil and around the world today.

Expansion of Partners Network Due to its dynamic and avant-garde nature, LIFE Institute is constantly seeking new partners that are able to contribute with new elements to the Certification System. This partner contribution ensures the certification instrument reflects the worldwide demand for a tool that stimulates the business sector to invest in conservation actions with effective results for the environment.

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Photo: Michelle Galdi Spinelli

Risks and Opportunities of Private-Sector Engagement in Conserving Biodiversity

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RISKS AND OPPORTUNITIES OF PRIVATE-SECTOR ENGAGEMENT IN CONSERVING BIODIVERSITY OPERATIONAL Risks • Cost increase and scarcity of resources necessary for production • Productivity reduction due to dependence on degraded services • Interruption on production processes and insurance increase • Interruption on operations due to natural disasters

Opportunities • Increase on productive processes efficiency by the use of ecosystem services and associated cost reduction • Adaptation of operations to ensure sustainable flow of resources in the long term • Evaluation of different alternatives for the use of resources ensuring optimal decision making

REPUTATION Risks • Change in consumer preferences that come to consider the impacts associated with the product • Weakened relationship with stakeholders

Opportunities • Brand differentiation from competitors

• Improved relationship with stakeholders • Enhanced performance by personnel

MARKETS AND PRODUCTS Risks • Waste of natural resources due to poor use

• Market loss due to dated technologies aggressive to the environment

Opportunities • Identify alternative resources

• Revenue increase by attracting new clients when supporting sustainable products • Consumer loyalty due to development of new technologies

FINANCING Risks • Restrictive requirements from investment funds

• Questionable long term revenue capacity • Poor company performance in financial markets

Opportunities • Attract a growing number of investors who prefer to invest in environmentally responsible businesses • Value gain due to new management model that attracts both investors and consumers

REGULATORY Risks • Government promoting legislation changes and increase on taxation to ensure that organizations will reduce impacts on biodiversity • Taxation over scarce natural resources such as water, carbon, land, among others

Opportunities • Organizations that go beyond legislation are better prepared for new regulatory framework

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REFERENCES

LIFE Certification Methodology is built upon relevant and internationally recognized references on biodiversity conservation. Below you will find some of the references that are used to establish hierarchy and the guidelines for conservation actions’ evaluation: • The Convention on Biological Diversity (CBD) main goals and objectives • Important Bird Areas (IBA) – Birdlife • Convention on International Trade in Endangered Species of Wild Flora and Fauna (CITES) • Red List of Threatened Species and Key Biodiversity Areas – International Union for Conservation of Nature and Natural Resources (IUCN) • Millenium Ecosystem Assessment – Main causes of global biodiversity loss

Photo: Michelle Galdi

Photo: Michelle Galdi Spinelli

• Guidelines for Applying Protected Area Management Categories. Gland, Switzerland: IUCN.

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CREATORS

SPONSORS

AGREEMENT

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INSTITUTIONAL PARTNERS

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+ 55 41 3253-7884/ + 55 41 3252-7092