Sustainable development requires access to affordable energy, as well as the conservation of biodiversity and the ecosystem functions it provides. The need to meet energy demands while maintaining the health and functionality of ecosystems leads to some complex challenges for society.

Industry performance
Oil and gas operations may have a range of direct and indirect impacts on biodiversity at all stages of a project lifecycle, from exploration and production through to decommissioning. Although the industry’s physical footprint is small relative to other sectors, companies face the challenge of managing operations in a way that conserves biodiversity. From a business perspective, it is important to minimise risks and thereby enhance the ability to access key business resources and company reputation.

IPIECA and OGP’s Biodiversity Working Group (BDWG) focuses on ways to improve industry performance and increase industry awareness of key biodiversity issues by: sharing good practice across the industry in international workshops; developing tools and guidance to assist with biodiversity-inclusive business planning; providing a forum to share information on strategic issues; and liaising with biodiversity conservation organisations and policy fora, including the CBD.

The oil and gas sector has been active in developing best practices and guidelines that integrate biodiversity into different management processes. Examples include Biodiversity Action Plans and the integration of biodiversity into Environmental and Social Impact Assessments and Environmental Management Systems. These practices, which are shared within IPIECA and OGP, are focused on identifying biodiversity risks at an early stage to ensure mitigation is built into project design. By reducing its operational footprint, the sector can contribute to achieving the objectives of the CBD.

Business value
There is business value in managing risks associated with biodiversity at all stages of industry activities, from upstream access to blending of fuels. In the exploration and production business, for example, business works to gain access to resources in sensitive environments by participating in the development of policy on protected areas, engaging stakeholders in planning of new oil and gas projects; and operating to recognised standards that minimise ecological impacts. However, there are other instances where business may benefit from collaborating with others. Governments, business and civil society all have their roles to play in generating opportunities to conserve biodiversity. Examples of business partnerships with conservation organisations include:

The Energy and Biodiversity Initiative (EBI) was a partnership between energy companies and conservation organisations which developed industry best practice on topics such as metrics and site selection (1). Energy companies working with UNEP-WCMC to improve the availability of biodiversity data for all stakeholders. Oil and gas companies have worked with conservation organisations on a range of projects. Examples of these can be found on IPIECA’s website (2).

Richard Sykes is Executive Secretary and Dholoo is Biodiversity Project Manager, International Petroleum Industry Environmental Conservation Association (IPIECA).

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(1) The Energy and Biodiversity Initiative
(2) (IPIECA) Biodiversity case studies
(3) Ecole Polytechnique Federale de Lausanne - CEN Energy Center, The Roundtable on Sustainable Biofuels