Mining Sector Embraces Natural Capital Accounting to Value Nature

Africa – The metals and mining industry, crucial to the climate, nature, and energy nexus, is adopting Natural Capital Accounts (NCA) to assess and manage its environmental footprint. This approach is gaining attention as companies aim to measure their natural assets’ extent, condition, and value over time.

According to World Economic Forum, Mendoza, Argentina, is using the Urban Mobility Scorecard, an NCA tool, to benchmark its sustainable mobility plans. This initiative is part of the city’s broader strategy to establish itself as a sustainable mobility leader in South America. Mendoza has developed comprehensive plans focusing on public transit, cycling, and walking networks to reduce carbon emissions, alongside plans for mobility hubs and expanded electric vehicle infrastructure.

In the mining sector, BHP has conducted a pilot case study applying NCA principles at its rehabilitated Beenup Mineral Sands site in Western Australia. The Beenup Case Study provides insights into the natural capital of the site, assessing ecosystem assets and potential contributions to ‘nature-positive’ outcomes. The study reveals that Beenup’s restored ecosystems could have an estimated net present value of AUD$30-40 million, with annual ecosystem service flows, such as carbon dioxide removal, estimated at around AUD 1 million per annum.

NCA in mining encompasses a range of information, including changes in ecological status and ecosystem service flows. At Beenup, NCA has enabled a better understanding of the site’s ecological and socio-economic impacts, including contributions to threatened species breeding programs and water quality improvement in nearby areas. This approach also facilitates consideration of compatible economic activities like beekeeping and seed collection.

BHP’s initiative demonstrates the inclusion of renewable natural assets in NCA, highlighting the importance of holistic monitoring and data collection for environmental stewardship. Modern techniques, such as satellite imagery and drone surveys, are increasingly essential for this purpose.

The Beenup Case Study marks a critical step in integrating NCA into corporate strategies, aligned with global initiatives like the Global Biodiversity Framework and the Taskforce on Nature-related Financial Disclosures (TNFD) framework. NCA serves not to commodify nature but to acknowledge its societal and economic value, aiding companies in responsible decision-making and reporting.

This adoption of NCA in the mining sector represents a growing recognition of the need to balance economic development with environmental conservation. It offers a pathway for the industry to contribute positively to reversing nature loss trends and managing environmental impacts amidst increasing mineral extraction demands for the energy transition.