Professional Documents
Culture Documents
By:
Ankit Kumar Singh
PGDFM 2015-17
Indian Institute of Forest Management
Nehru Nagar, Bhopal- 462 003
i
This is to certify that the project entitled Developing Biodiversity Safeguards for
Reporting Officer
Organization Name & Seal
ii
I, Ankit Kumar Singh, hereby declare that the project report entitled Developing
(PGDFM 2015-2017)
iii
Table of Contents
List of Acronyms .................................................................................................................. vi
List of Tables ....................................................................................................................... vii
List of Figures .................................................................................................................... viii
List of Plates ....................................................................................................................... viii
Acknowledgements .............................................................................................................. ix
List of Acronyms
ADB: Asian Development Bank
CBD: Convention on Biological Diversity
CBP: Cartagena Protocol on Biosafety
COP: Conference of Parties
EHS: Environmental, Health, and Safety
EMS: Environmental Management System
EPFI: Equator Principles Financial Institutions
ESG: Environmental, Social and Governance
ESIA: Environmental and Social Impact Assessment
ESMP: Environmental and Social Management Plan
ESMS: Environmental and Social Management System
GOI: Government of India
IFC: International Finance Corporation
IUCN: International Union for Conservation of Nature
IVM: Integrated Vegetation Management Approach
NBSAP: National Biodiversity Strategy and Action Plan
NGO: Non-Governmental Organization
NRM: Natural Resource Management
PRI: Principles for Responsible Investment
UNFCCC: United Nation Framework Convention on Climate Change
vi
List of Tables
Table 1: List of IUCN Members
Table 2: Fuel Consumption Percentage of Population
Table 3: Power Distribution Position (Energy & Peak) in March 2016
vii
List of Figures
Figure 1: IUCN Focus Area .................................................................................................. 2
Figure 2: Biodiversity-Ecosystem Relationship .................................................................... 5
Figure 3: Parameters for Project Study ................................................................................. 7
Figure 4: Involvement in Biodiversity through Electric Utility Industry Activities ............. 9
Figure 5: Power Generation Capacity of India as on Jan 2016 ........................................... 12
Figure 6: Thermal Power Generation Break up .................................................................. 13
Figure 7: Methodology for Developing Biodiversity Indicators ....................................... 544
Figure 8: Decision-Support Framework for Site Selection ............................................... 566
Figure 9: PDCA Cycle ...................................................................................................... 577
Figure 10: Internal Audit Program .................................................................................... 588
List of Plates
Plate 1: Status of Species in the World
Plate 2: Parties of CBD and CPB
viii
Acknowledgements
I express my deepest gratitude and appreciation to Mr. Priya Ranjan Sinha, Country
Representative, International Union for Conservation of Nature India for providing me
with an opportunity to work on this project and to Dr. J. S. Rawat, Manager, Program,
Constituency and Administration, IUCN India for his constant support throughout the
entirety of this project.
I am extremely grateful to my reporting officer, Mr. Vipul Sharma, Program Officer,
IUCN India for his constant guidance and valuable suggestions in completion of project
within a defined time period. It was a great learning experience to work with him and the
project would never have been possible without his presence and expertise.
I gratefully acknowledge the continuous support and encouragement extended by Mr.
Aditya Petwal, Coordinator, Leaders for Nature and entire IUCN New Delhi staff during
my internship period.
I take this opportunity to thank Dr. G.A. Kinhal, Director, Indian Institute of Forest
Management and our summer internship chairperson Prof. Advait Edgaonkar for providing
me with such an opportunity, and the SI committee for their untiring efforts and for the
smooth facilitation of the SI selection process.
I would like to express my heartfelt thanks to Dr. Yogesh Dubey and Dr. Omprakash
Madguni for their guidance in understanding the main objective of the project in broader
sense and for their valuable inputs and suggestions.
ix
Executive Summary
Biodiversity offers numerous ecosystem services that are crucial to human well-being at
present and in the future. The functioning of ecosystem depends upon the richness of
biodiversity but it is degrading at an unprecedented scale. To conserve this biodiversity,
India has signed many conventions and enacted a number of laws to create a legal oblige in
the country. Businesses are consistently being asked to come forward and implement these
agreements into their business operations that will lead to a healthy and safe planet.
Businesses are now realizing that biodiversity conservation is no more only a legal and
regulatory requirement but it also leads them towards strategic, operational, reputational
and financial excellence.
Power industry is also one of the factors of biodiversity loss. It produces a wide range of
adverse impacts on biodiversity. In India, The demand for energy is continuously rising
and to meet this demand power industries are likely all set to put some more pressure on
environment and biodiversity. Power companies are required to integrate biodiversity in
their decision-making, operations and policies to reduce the negative impacts on
biodiversity.
This project is about to develop a biodiversity safeguards for power industry. These
safeguards should encounter national as well as international standards. The project
identifies four parameters to develop the biodiversity safeguards:
The report indicates various national and global requirements to develop biodiversity
safeguards for power industry. The review of literatures, field study, expert consultation,
official documents and disclosures and ministry sites are used as a tool for this study. The
report includes methodology for developing biodiversity indicators to measure impacts and
actions of power project on biodiversity. The report also describes the framework that how
biodiversity could be integrated into the site selection process of power project. The report
also produces some recommendations to power industries for better management of
biodiversity integration.
1. Introduction
1.1 About the organization
IUCN, International Union for Conservation of Nature, is the largest environmental
network in the world created in 1948. It helps countries to find pragmatic solutions to most
critical development and environmental challenges. It is an international organization
working in the field of conservation of nature and sustainable use of its resources. IUCN is
working in more than 160 countries and primarily involved in scientific research,
managing projects all over the world, bring NGOs, governments, the UN and companies
all together to develop laws, policies and best practices. It is the world oldest as well as
largest global organizations, with almost 1300 government and NGO members and more
than 15,000 volunteer experts in 185 countries. IUCNs work is carried by over 1000 staff
in 45 offices and hundreds of partners in public, NGO and private sectors around the
world. Its headquarters is in Gland, near Geneva, in Switzerland.
Vision
Our vision is a just world that values and conserves nature.
Mission
Our mission is to influence, encourage and assist societies throughout the world to
conserve the integrity and diversity of nature and to ensure that any use of natural
resources is equitable and ecologically sustainable.
Science- More than 15000 experts are setting global standards in their respective
fields like setting of standards for risk of species extinction- the IUCN Red List of
Threatened Species.
Action- Hundreds of projects are running across the world with aim of sustainable
management of biodiversity and natural resources.
Influence- With collective effort of more than 1300 government and NGO
members, IUCN influences global conventions, policies and laws.
Work focus
IUCN work is focused only to these three areas:
Organizational structure
IUCN has three structural components:
Members- National non-governmental organizations, international nongovernmental organizations, government agencies and states are the members of
IUCN. In 2014, there were total of 1273 members of IUCN.
Commissions- IUCN has total of six commissions which involves experts from
different disciplines. These commissions are Commission on Education and Communication (CEC)
Commission on Environmental, Economic, and Social Policy
(CEESP)
World Commission on Environmental Law (WCEL)
Commission on Ecosystem Management(CEM)
Species Survival Commission
World Commission on Protected Areas (WCPA)
Secretariat: The secretariat is controlled by the Director General. IUCN separate
eight geographical regions for the management of operations and each region is run
by a director who directly reports to the Director General.
India, as a country, alone account of 70 percent of the worlds total flowering plants. India
has a very rich and varied heritage of biodiversity. It is also counts in those countries that
has developed a biogeographic classification for conservation planning and has mapped
biodiversity rich areas in the country. Out of the 34 global biodiversity hotspots, four are
spotted in India represented by the Himalaya, the Western Ghats, the North-east, and the
Nicobar Islands. India has 10 bio-geographic zones representing diverse ecosystems as
well as 91 eco-cultural zones, which are peopled by more than 4500 community groups.
The richness of Indias biodiversity owes it to three unparalleled attributes:
Over the last decades there is immense pressure felt on biodiversity due to population
explosion, climate change and lax implementation of environmental policies. This pressure
is results in biodiversity loss by threat of extinction of species. This not only disturbs the
food chain and smooth running of ecosystem, but also the culture and livelihoods of
millions of Indians who depend on local biodiversity. Either species are facing extinction
at a very high rate or they are very close to door of extinction. As per the business news
website Business Insider by the end of this century, close to half of all living species on
this earth could be vanished (Speiser, 2015). According to The IUCN Rest List of
Threatened Species, considered as the worlds most comprehensive information source on
the global conservation status of animal, fungi and plant species and their links to
livelihoods, in 2014 total of 76000 species have been assessed and it shows that more than
22000 species are at risk of extinction. Further it reveals that 63 percent of Cycads, 41
percent of Amphibians, 33 percent of reef corals, 34 percent of Conifers, 25 percent of
Mammals and 13 percent of birds are threatened all over the world.
The following map presents the clear picture of endangered and critical endangered species
across the world where India is also marked in list of countries of endangered species.
Almost half of the world either in critically endangered or endangered situation. This
figure depicts that how dangerous circumstances can be if necessary steps not be taken.
The biodiversity richness is extremely important for human life. The well-being of people
is inextricably linked to the well- being of animals, plants and other forms of life on the
planet. Many poor people
rely on biodiversity i.e.
forest etc. for their living.
Biodiversity has also
crucial importance for
well-managed and healthy
ecosystem. These two has
strong relationship and
entire functioning
of
ecosystem depends on the
biodiversity status of the
country.
This graphic presentation
Figure 2: Biodiversity-Ecosystem Relationship
shows the three potential
relationships between species richness and ecosystem functioning. Linear curve states that
5
with every addition in species richness the functioning of ecosystem will also increase.
Redundancy relationship will arise when multiple species have the same influence on
functioning and after a certain point functioning level becomes stagnant and starts
decreasing. Later on adding a new species will only have a positive influence on
functioning of ecosystem. Idiosyncratic curve presents the relationship indicates a system
where species varies in their ability to enhance functioning. In this case the addition of
single species has disproportionally large adverse or positive impacts on ecosystem
functioning.
Considering the value of biodiversity for human life, we need to ensure the sustainable use
of biodiversity and in order to do that we have to come up with sustainable plan or
sustainable safeguards.
Legal
Financi
al
Operati
onal
Strate
gic
The business need to recognize the importance of biodiversity and the blessings of nature
and also to consider the impact on ecosystem. In order to increase the private sector
engagement for biodiversity conservation Ministry of Environment has issued Guidelines
for Private Sector Engagement in Biodiversity. The companies are required to integrate
biodiversity into their decision making, operation and management. The following figure
shows how electric utility industry can involve in biodiversity.
Most energy companies are aware of that failure to work in an environmentally and
socially accountable manner can present significant threats to a company's operations and
reputation. The leading companies across the world are implementing biodiversity
conservation practices and gaining operational, strategic, reputational and financial
benefits. Moreover India has enacted a several act and policies with a view to protect and
conserve biodiversity. So energy companies are required to develop safeguard to meet
legal compliance of the country. The financial institutions are also taking great care of
biodiversity and considering it one of the parameter to lend money. The India has signed
several conventions to protect biodiversity. So biodiversity is not more a legal compliance
for the company but its a source of creating reputation and gaining advantage.
The first argument in favor of including biodiversity considerations in decision-making
and one that is the most important driver for several leading companies is a moral and
ethical one. Further, conserving biodiversity is simply the right thing to do. Increasingly,
shareholders, employees and the public believe companies to ensure the right thing and to
share the publics concern for environmental issues, including biodiversity.
Companies that integrate better biodiversity practices into their processes may have better
access to capital from private commercial institutions and multilateral development banks
that are progressively highlighting good environmental performance in their screening
practices and conditionality for lending loan for projects. A number of multilateral
development banks and other public financial institutions, including the International
Finance Corporation, the World Bank and the Overseas Private Investment Corporation
(OPIC), have safeguard policies, guidelines and compliance requirements on
environmental and social problems, numerous of which relate to biodiversity conservation.
With the increasing popularity of socially responsible investment, businesses with good
environmental performance records may have an advantage.
Gradually, companies are identifying that there are moral and ethical, as well as financial
and economic reasons for integrating biodiversity considerations in decision-making
process as part of the companys wider approach to environmental and social performance.
However, while it is acknowledged that there are both tangible as well as intangible
advantages to being a responsible operator and a company that cares about biodiversity,
there is very little documented proof of how these values transform into benefits to a
companys bottom line. There is thus a real need for companies, conservation
organizations and other concerned parties to document and share evidence to quantify and
demonstrate the specific business values of incorporating biodiversity conservation into
company policies and management systems.
10
Most current energy generation and usages are supplemented by environmental impacts
that threaten human well-being now and well into the future. India has set a target of
eliminating the poverty and deliver access to electricity by 2030 through inclusive and
sustained economic growth. India is facing a huge challenge to form up its energy
infrastructure in order to maintain pace with its rapidly developing economy coupled with
11
social and environmental pressure. Recently the energy consumption is growing very
sharply and this tendency is likely to stay in near future too in view of Indias strong
economic and population growth as well as shifting lifestyle patterns.
Nuclear
Hydro
Renewable
13%
15%
2%
70%
12
Diesel
Gas
Coal
0
50000
100000
150000
200000
13
The following table represents the power distribution position (energy and peak) in March
2016.
14
reserved forest, forest offence and penalties imposed for the violation of the provisions of
the act.
The Indian Forest Act, 1927 (16 of 1927) has total 86 sections, divided into thirteen
chapters, including i) Preliminary, ii) Reserved forests, iii) Village forests, iv) Protected
forests, v) The control over forests and lands not being the property of government, vi) The
duty on timber and other forest produce, vii) The control of timber and other forest produce
in transit, viii) The collection of the drift and stranded timber, ix) Penalties and procedure,
x) Cattle-trespass, xi) Forest officers, xii) Subsidiary rules, and xiii) miscellaneous.
Karnataka
The Karnataka forest act, 1963- There are different forest laws in practice in the five
integrating parts of the Mysore State. So it is difficult and inconvenient to implement
different laws in different parts. Because of that the current bill has been prepared to carry
17
consistency of forest laws all over the state. The purpose of this act is to conserve and
protect the forest.
It is an act to consolidate and adjust the law relating to forests and forest produce in the
state of Karnataka. This act has total 12 chapters and applies only to boundaries of
Karnataka state.
Maharashtra
The Bombay wild animals and wild birds protection act, 1951- The purpose of the
Bombay wild animals and wild birds protection act is to make better and adequate
provision for the protection of wild animals and birds in the state of Bombay. This act
applies only to the state of Maharashtra. This act has 7 chapters, including chapter 1preliminary, chapter 2- authorities to be appointed or constituted under the act, chapter 3hunting of animals and birds, chapter 4- game sanctuaries, chapter 5- trophies and pet
animals and birds, chapter 6- prevention and detection of offences and penalties, chapter 7miscellaneous.
The Indian forest (Bombay amendment) act, 1948- The Indian forest (Bombay
amendment) act is an act to adjust the Indian forest act, 1927, in its application to the
province of Bombay. In this act, section 28, 36, 37 of act XVI of 1927 were amended and
new section 34A was inserted. This act was further amended in 1953, 1955, 1956, 1957,
1961, 1964, 1968, and 1984.
Gujarat
The Gujarat wild animals and wild birds protection act, 1963- It is an act to make
appropriate and adequate provisions for the safeguard of wild animals and birds in the state
of Gujarat. This act applies only to the state of Gujarat. This act has 7 chapters, including
chapter 1- preliminary, chapter 2- authorities to be appointed or constituted under the act,
chapter 3- hunting of animals and birds, chapter 4- game sanctuaries, chapter 5- trophies
and pet animals and birds, chapter 6- prevention and detection of offences and penalties,
chapter 7-miscellaneous.
The Indian forest (Gujarat unification and amendment) Act, 1960- The act was
subsequently amended in 1963, 1976, 1983. This act was enacted to deliver for consistency
in the law relating to forest and the transit of forest produce in the whole of the state of
Gujarat. This act applies only to the state of Gujarat.
Jharkhand
Jharkhand has not proposed any state biodiversity act which affects the operation of power
companies.
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West Bengal
The West Bengal wild life preservation act, 1959- This act was enacted in the Tenth
Year of the Republic of India, by the Legislature of West Bengal. It is an act to provide for
the well conservation of wild life in West Bengal. This act applies only to the state of West
Bengal.
Delhi
The Delhi preservation of trees act, 1994- This act was enacted by the Legislative
Assembly of the National Capital Territory of Delhi in the Forty-fifth Year of the republic
of India. The objective of this act is to preservation of trees in the National Capital
Territory of Delhi. This act applies only to the Delhi.
Tamil Nadu
The Tamil Nadu forest act, 1882- This act applies only to the state of Tamil Nadu. It is
an act to make provision for protection, conservation and management of forests in the
state of Tamil Nadu. This act has total ten chapters.
Rajasthan
The Rajasthan forest act, 1953- This is an act to consolidate the law relating to forests
the transit of forest produce and the duty imposed on timber and other forest produce. This
act applies only to the state of Rajasthan.
Andhra Pradesh
The Andhra Pradesh forest act, 1967- This act was enacted by the Legislature of the
State of Andhra Pradesh in the Eighteenth Year of the Republic of India. It is an act to
consolidate and modify the law relating to the protection, conservation and management of
forests in the State of Andhra Pradesh. This act was further amended in 1997.
Arunanchal Pradesh
The Arunachal Pradesh Anchal forest reserve (constitution and maintenance) act,
1975 This act extends to the whole of Arunanchal Pradesh. The objective of act is to
establishment and maintenance of Anchal reserve forest in Arunanchal Pradesh and other
matters connected therewith.
Assam
Assam has not proposed any state biodiversity act which affects the operation of power
companies.
19
Bihar
Bihar has not proposed any state biodiversity act which affects the operation of power
companies.
Chhattisgarh
Chhattisgarh has not proposed any state biodiversity act which affects the operation of
power companies.
Goa
The Goa, Daman and Diu wild animals and wild birds protection act, 1965- This act
was enacted by the Legislative Assembly of Goa, Daman and Diu in the Sixteenth Year of
the Republic of India. This act applies to the whole of the Union Territory of Goa, Daman
and Diu. It is an act to make superior and adequate provision for the preservation and
protection of wild birds and animals in the Union territory of Goa, Daman and Diu.
Haryana
Haryana has not proposed any state biodiversity act which affects the operation of power
companies.
Himanchal Pradesh
Himanchal Pradesh has not proposed any state biodiversity act which affects the operation
of power companies.
20
Kerala
The Kerala forest act, 1961- The act was enacted in the twelfth year of the republic of
India. It is an act to unify and revise the law relating to the protection, conservation and
management of forests in the state of Kerala. This act applies only to the state of Kerala.
Madhya Pradesh
Madhya Pradesh has not proposed any state biodiversity act which affects the operation of
power companies.
Manipur
Manipur has not proposed any state biodiversity act which affects the operation of power
companies.
Meghalaya
The Meghalaya wild animals and birds protection act, 1971- This act applies only to
the state of Meghalaya. The objective of this act is to make provisions for the protection of
birds, animals and plants.
Mizoram
Mizoram has not proposed any state biodiversity act which affects the operation of power
companies.
Nagaland
The Nagaland forests act, 1968- The Nagaland forests act extends to the whole of
Nagaland. It is an act to modify and consolidate the law relating to forest, produce and the
Duty imposed on timber in Nagaland.
Orissa
The Orissa forest act, 1972- This act was enacted by the legislature of the state of Orissa
in the twenty third year of the republic of India. It is an act to consolidate and modify the
laws relating to the protection, conservation and management of forests in the state of
Orissa. This act extends to the whole of Orissa.
Puducherry
Puducherry has not proposed any state biodiversity act which affects the operation of
power companies.
21
Punjab
The Punjab wild life preservation act, 1959- This act extends to the whole of the state of
Punjab. It was enacted by the legislature of the state of Punjab in the tenth year of the
republic of India. The purpose of this act is to consolidate and modify the laws relating to
the protection and preservation of birds, plants and animals.
Sikkim
Sikkim has not proposed any state biodiversity act which affects the operation of power
companies.
Tripura
Tripura has not proposed any state biodiversity act which affects the operation of power
companies.
Uttar Pradesh
The Uttar Pradesh forest corporation act, 1974- This act applies to the whole of Uttar
Pradesh. It is an act to provide for the formation of a corporation for superior protection,
management and development of forests and to stop exploitation of forest produce within
the state of Uttar Pradesh.
The Uttar Pradesh protection of trees in rural and hill areas act, 1976- This act applies
to the whole of Uttar Pradesh. The purpose of this act is to make provisions for felling and
re-planting of trees in rural and hilly areas of Uttar Pradesh.
The Indian forest (The Uttar Pradesh amendment) act, 1973- This act applies to the
whole of Uttar Pradesh. The act was enacted in the twenty fourth year of the republic of
India. It is an act further to amend the Indian Forest Act, 1927 and to provide for matters
connected therewith.
Uttarakhand
The Indian forest (Uttaranchal amendment) act, 2002- This act applies to the whole of
Uttarakhand. The Indian forest (Uttaranchal amendment) act is an act to adjust the Indian
forest act, 1927, in its application to the state of Uttarakhand. The purpose of this act is to
revise the law relating to the protection, conservation and management of forests in the
state of Uttarakhand.
22
23
Statement of principles
Principle 1: Review and categorization
The EPFIs categorize each and every project into 3 categories based on the degree of its
probable environmental and social risks and impacts.
Category A- Projects with adverse environmental and social risks and impacts that is
irreversible or unprecedented
Category B- Projects with limited adverse environmental and social risks and that is
largely reversible
Category C- Projects with negligible or no adverse environmental and social risks
Principle 2: Environmental and social assessment
For all Category A and Category B Projects, the EPFIs will ask the client to conduct an
assessment and address the all environmental and social risk involved in project. The client
should indicate all measures to minimize and mitigate the adverse impact on environment.
Principle 3: Applicable environmental and social standards
The assessment process should address compliance with related host country laws,
regulations and authorizations that pertain to environmental and social issues.
Principle 4: Environmental and Social Management System and Equator Principles
Action Plan
For all Category A and Category B Projects, the EPFIs will ask the client to develop or
maintain an Environmental and Social Management System (ESMS). The client will
prepare an Environmental and Social Management Plan to report issues pointed in the
assessment process and integrates actions essential to comply with the applicable
standards. If standards are not up to satisfaction, the client and the EPFI will reach a
decision an Equator Principles Action Plan.
24
a sustainable way. IFC ask their clients to apply the performance standards to manage
environmental and social risks and impacts.
The clients seeking finance from IFC has to comply with following eight performance
standards designed by IFC.
Performance Standard 1: Assessment and management of environmental and social
risks and impacts
Performance Standard 2: Labor and working conditions
Performance Standard 3: Resource efficiency and pollution prevention
Performance Standard 4: Community health, safety, and security
Performance Standard 5: Land acquisition and involuntary resettlement
For the conservation of biodiversity, a biodiversity offset should be designed and applied
to attain quantifiable conservation outcomes that can reasonably be anticipated to result in
no net loss and rather a net gain of biodiversity. While designing a biodiversity offset
client must take help of external experts, who have offset design and implementation
experience.
This standard applies to those modified habitat areas that include significant biodiversity
value. The areas with high biodiversity value are identified during risks and impacts
identification process. The client should avoid any significant alteration or degradation in
natural habitats. The project activities should avoid any contact with critical habitat areas.
Critical habitats are areas with high biodiversity value which includes habitat of significant
importance to critically endangered species.
If project is located within an internationally recognized area or legally protected area, the
client will meet the necessities of paragraphs 13 through 19 of this performance standard
and make evident that the proposed development in such areas is legally permitted, act in a
mode consistent with any government documented management plans for such areas. The
clients are not allowed to introduce any new alien species unless this is approved in
accordance with the existing regulatory framework for such introduction.
The clients, involved in the primary production of living natural resources, including
animal husbandry, natural and plantation forestry, aquaculture, agriculture and fisheries
will be subject to the requirements of paragraphs 26 through 30. If significant and credible
standard exist, but the client has not yet gained independent authentication or authorization
to such standard, the client have to conduct a pre-assessment of its conformity to the
appropriate standard and make arrangements to attain such verification or authorization
over an suitable period of time. If a client is obtaining primary production that is known to
be made in areas where there is a threat of significant conversion of natural and/or critical
habitats, systems and confirmation practices will be implemented as part of the clients
ESMS to assess its primary suppliers. The systems and verification practices will limit the
procurement to those suppliers that can make evident that they are not contributing to
substantial transformation of natural and/or critical habitats.
Safeguard policies are assumed to be operational policies that look for to avoid, minimize,
or mitigate adverse environmental and social impacts, comprising guarding the rights of
those likely to be affected or marginalized by the development process. These policies
contain an organized process of impact assessment and mitigation to report the adverse
impact of projects throughout the project cycle. The safeguard policies demand that
impacts are acknowledged and measured at early stage, develop and implement plan to
mitigate adverse impacts, affected people should well informed and consulted during
project preparation and consultation.
The Asian Development Bank is devoted to make sure that social and environmental
sustainability of every supported project is fulfilled. The aim of the safeguard policy
statement is to encourage the sustainability of project consequences by guarding the
environment and people from projects probable adverse impacts. The safeguards
developed by ADBs have three main objectives:
The clients are responsible for the implementation of the provisions of the principle. ADB
implements a set of specific safeguard requirements that borrowers are necessary to fulfill
in addressing environmental and social impacts and risks.
Safeguard requirements 1: Environment
Safeguard requirements 2: Involuntary resettlement
Safeguard requirements 3: Indigenous peoples
Safeguard requirements 4: Special requirements for different finance modalities
Conduct screening process for all proposed projects to find the appropriate extent
and type of environmental assessment.
Perform an environmental assessment for all proposed projects to determine direct,
indirect, induced and cumulative adverse impact of projects.
28
29
into the site choice and plant design processes in order to maximize the range of choices
presented to avoid and control potential adverse impacts.
In thermal power plant projects, primarily the following environmental issues occurred:
Air emissions
Energy efficiency and Greenhouse Gas emissions
Effluents
Solid wastes
Hazardous materials and oil
Noise
In thermal power plant, large amount of water is required to produce steam. This stem is
further used to move turbines which finally lead to generate electricity. Thermal power
plants use cooling system to condense stem and discharge the water back to the source.
Thermal power plants use the following cooling system:
Combustion facilities using once-through cooling systems need large amount of water
which is settled back to receiving surface water with elevated temperature. The withdrawal
of such amount impacts the other use of water like drinking water sources and agricultural
irrigation. The withdrawal and discharge with elevated temperature and chemical
contaminants such as biocides or other additives may affect aquatic organisms; including
fish, shellfish, phytoplankton, crustaceans, zooplankton, and many other forms of aquatic
life. Aquatic organisms drawn into cooling water intake structures are either impinged on
components of the cooling water intake structure or entrained in the cooling water system
itself. In this case, aquatic organisms may be killed or subjected to significant harm.
Sometimes organisms like sea turtles are entrapped in the intake canals. So measure should
be established to prevent, minimize, and control environmental impacts associated with
water withdrawal.
Recommendations to prevent and control impacts to aquatic habitats and water resources
include:
31
Forest fires
If regular maintenance will be avoided and trees will grow beyond the planned point it may
be potential reason for forest fires.
Some recommendations to prevent forest fires include the following:
32
34
Biodiversity Practices
increase public awareness. Employees are collecting trash and installing nesting
boxes for bird species along the river.
Fish friendly piers- Duke has created an artificial habitat to provide a place for
fish to live and grow. This program is effort of North Carolina Wildlife Resources
Commission, South Carolina Department of Natural Resources and Bass Anglers
Sportsman Society. Duke has constructed a fish friendly pier to attract more fish.
The program is also aim to encourage homeowners on the lake to create similar
habitats.
Wildlife and industry together- This program connects company to the volunteers
and community group to develop company sites into natural habitat. The volunteers
enable the natural habitat to flourish and provide a home for wildlife by cultivating
native plants. The program also aims to build blue bird boxes and add butterfly
gardens. It was started by the North Carolina Wildlife Federation Endowment and
Education Fund, North Carolina Wildlife Federation, along with a grant from The
Duke Energy Foundation, to offer new homes for native wildlife.
Peregrine Falcons - caring for our wildlife- This program provides nesting sites
for the birds by Installing nest box at the sites.
Partnership with Clearwater Marine Aquarium to improve its sea turtle rescue and
rehabilitation program.
Partner in the Robust Red horse Conservation Committee to help recovery and
conservation of the robust red horse fish.
Installing equipment that alerts or deters birds from utility infrastructure and
providing Artificial nesting platforms to protect birds from the risk of electrocution
with purpose to avian protection.
Working with state and federal agencies to protect threatened species by handling
the companys assets to inspire precious habitats and nesting and collaborated with
the Indiana Department of Natural Resources to monitor and evaluate endangered
species found on or near its properties.
Wood Duck banding- Duke partners with the Kentucky Department of Fish and
Wildlife to band wood ducks. It is a method to improve waterfowl populations
across the country.
Duke employees are working on how to stop turtles from slipping past the plants
protective barrier on the Cape Fear River. The plant was averaging 11 stranded
turtles a season, with Brunswicks sea turtle recovery program making assured they
were saved and returned to the river.
Duke Energy International has declared a contribution of $50,000 to The Nature
Conservancy to help protect biodiversity in Peru. This support will help to enhance
biodiversity and stop the loss of species. The Nature Conservancy, under an
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Biodiversity practices
The Engie is combating soil erosion by planting indigenous plants which originate
in the location concerned and reproduce there. By doing so they are cutting the cost
of remediating storm driven soil erosion by 90%.
To reduce the impact on wildlife, plant life, noise levels and landscape the Engie is
conducted a series of environmental studies before construction of wind farms.
Engaged in other activities like monitoring of bird life for three years after
commissioning of the wind farm, encouraging the growth of the bat population by
facilitating access to appropriate cavities, and the introduction of three 5,000 m
plots of uncultivated scrubland 1 km from the wind farm to promote biodiversity.
Taking initiative in reduction or complete stoppage of wind power generation
during bird migration periods, fish passes to enable fish to bypass dams, limiting
the use of herbicides by using sheep to control vegetation, late mowing and
differentiated management of green open spaces, the introduction of ultrasound
techniques to prevent fish being caught in the cooling water inlet filters of
conventional power generating plants, the introduction of nesting boxes and
wildlife refuges etc.
The group has fitted two LNG carriers with systems to avoid collisions with
whales. The group has partnership with the whale conservation group Souffleurs
dcume.
The Engie is supported by International Union for Conservation of Nature France
and the France Natural Environment Federation in implementing the plans and
achieving its goals.
Gas routes are buried underground so they do not fragment natural habitats. The
fragmentation of natural habitat is a biggest threat to biodiversity.
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National Grid, UK
Market Value- 49 billion
National Grid public limited company, founded in 1990, is a British multinational
electricity and gas utility company. Its headquarter is in Warwick, United Kingdom.
National Grid is primarily engaged in electricity transmission, distribution and Gas
transmission and distribution. Its principal activities are in the Northeastern United States
and United Kingdom.
Biodiversity Practices
Biodiversity practices
Before building a plant at any site, company takes care of the fact that there wont
be any negative impact or minimal impact on local environment and no species
would be harmed after installation of plant.
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Take care of threatened and endangered species and the proximity to valuable
wildlife corridors, wetlands or other ecologically important areas. Always tries to
avoid these areas for working.
After the implementation of project, company continues to monitor potential
impacts to biodiversity that may occur. Company has implemented a voluntary
Wildlife Response and Reporting System (WRRS) to track long-term avian and bat
interactions. Company also monitors post-construction mortality rate at every wind
sites.
Complies with Ministry of Natural Resources guidance to perform a least of three
years of post-construction mortality monitoring for birds and bats.
Have installed fencing around the site to hold the desert tortoise away from the
solar panels.
Helps in providing nesting locations for Ospreys.
Working closely with state and local wildlife agencies on wildlife problems.
EDF, France
Market value- 46.3 billion
EDF is a French electric utility company, headquartered in Paris, France, with 65.2 billion
in revenues in 2010. EDF was founded in 2002. It generates electricity through coal fired
stations, wind, nuclear and renewable energy. EDF handles more than 5.7 million customer
accounts. It has diverse portfolio of 120+ gig watts of generation capacity in South
America, Europe, Asia, North America, the Middle East and Africa.
Biodiversity practices
All nuclear power stations in England have received the Wildlife Trusts
Biodiversity Benchmark.
Target to hold the Wildlife Trusts Biodiversity Benchmark by 2018 to all the
operational sites.
Works with Wildlife Trusts and other organizations to protect and enhance
biodiversity at operational sites.
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Enel, Italy
Market value- 44.6
Enel is an Italian global manufacturer and distributor of electricity and gas. It was first
established as a public body at the end of 1962, and then converted into a limited company
in 1992. Following the liberalization of the electricity market in Italy, Enel was privatized
in 1999. Enel generates electricity through renewable sources (hydroelectric, wind, geothermoelectric, biomass, photovoltaic) and coal.
Biodiversity practices
Introduced a series of projects for the purpose of supporting the safeguard of the
ecosystems and natural habitats of the different areas.
Preserving the nesting species through cooperation with farmers who abstain from
fighting rodents and the use of Phytotoxins, the permanent center for environmental
initiatives (CPIE), hunters (Aube) who keep an eye on the situation, the League for
the Protection of Birds (LPO), and the Ardennes Region, which monitors the birds.
Enel in cooperation with the CTS rescues and takes care of injured animals,
disseminates information and raises awareness.
Engaged in Fish repopulation by stocking various species of local fish.
Protecting the species given in the Red List of the International Union for
Conservation of Nature and Natural Resources (IUCN) in protected areas near the
power plants.
Has prepared Group Biodiversity Policy and also implemented the biodiversity
plan.
Dominion resources, US
Market value- 42.8
Dominion Resources Inc., known as Dominion, is one of the US biggest electric power and
natural gas companies, serving more than 5 million utility and retail energy customers in
13 states. It was founded in 1983 and has headquartered in Richmond, Virginia, U.S.
Dominion deals with generation, transmission and distribution and generates electricity
through nuclear, coal, and renewable energy.
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Biodiversity practices
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Iberdrola, Spain
Market value- 42.3 billion
Iberdrola is a Spanish public global electric utility company based in Bilbao, Basque
Country. It was founded in 1992. Iberdrola has a customer base of 31.67 million
customers. Iberdrola has become Spains biggest energy group by market capitalisation
and the worldwide leader in wind energy. It deals in electricity and gas, generation and
distribution. Iberdrola is the first Spanish company to issue green bonds to invest in
sustainability projects.
Biodiversity practices
Southern co, US
Market value- 40.9 billion
It is an American electric utility holding company based in the southern United States. It is
headquartered in Atlanta, Georgia with customer base of 4.4 million customers. Southern
co was founded in 1945. It operates more than 42,000 megawatts of generation capacity
and generates electricity through coal, hydroelectric and nuclear.
Biodiversity practices
Created a partnership with stewards, owners and various conservation groups like
The Nature Conservancy, the National Wild Turkey Federation and the Wildlife
Habitat Council to improve wildlife habitats and conserve biodiversity.
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The company has donated large piece of land to state DNR organizations to protect
threatened animals and plants.
Signed a Safe Harbor agreement in 2007 with the Georgia DNR to manage
approximately 1,800 acres at its two nuclear sites for red-cockaded woodpecker and
other longleaf-dependent species, such as the gopher tortoise.
Partner in the Alabama Bald Eagle restoration project to help in restore population
of bald eagle.
Work closely with partners through the National Fish and Wildlife Foundation to
restore and form new longleaf pine habitat.
Protects a population of federally endangered species and have supported the
banding of adults and nestlings to enable mapping, monitoring and survey of
health.
Hanergy
Market Value- 38.2 billion
Hanergy is a privately held Chinese global renewable energy company. It was founded in
1994. It is headquartered in Beijing. It generates electricity through solar, wind and
hydropower.
Biodiversity practices
Hanergy is not involved in any biodiversity conservation practices but it does care to
minimize their impact on environment. Hanergy is engaged in many practices to make the
organization environment friendly but it still not working on biodiversity aspects.
These conventions might give a birth to law in future. So it is very important for any
industry to take pro-active steps and follow these conventions in their day to day business.
The implementation of these conventions may result in strategic or pro-active advantage
for the company.
The brief explanation of important biodiversity conventions, which India has signed, and
power industry needs to follow to gain pro-active advantages are as following:
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168 signatories
196 Parties
The Convention identifies the necessity for a multisectorial approach to make sure that biological diversity
is conserved and used sustainably, the significance of
sharing information and critical technologies, and the
advantage that can accrue from use of biological
resources.
CBD goals
Conservation of
biological
diversity
Sustainable use
of components
of
biological
diversity
Fair
and
equitable
sharing of the
benefits arising
out of the use of
genetic
resources
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CBD parties
Neither
The Conference of the Parties to the convention, at its second meeting, established an open
ended ad hoc working group to develop a draft protocol on biosafety. This protocol focus
on transboundary movement of any living modified organism causing from new
biotechnology that may have adverse effect on the conservation and sustainable use of
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Depository: Germany
Field of application: Global
The objective of this agreement is to protect those species of wild animals that migrate
across or outside national boundaries. The summary of the provisions are as follow:
Ramsar
The objective of this memorandum is to improve the conservation status of the Siberian
Crane. Under article IV (4), this memorandum of understanding is a non-legally binding
agreement. Under this MOU, parties promise to protect Siberian Cranes, and also
recognize and conserve wetland habitats important for their survival. MOU encourage
parties to cooperate each other and share important information related to the conservation
of the Siberian Crane in order to co-ordinate their action.
Manila
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Bonn
The objective of this convention is to facilitate the cooperation among states for
conservation and management of living resources of the high sea. This convention obliges
signatory states to take measures which are designed on the basis of best scientific
evidence to protect or restore population of sea species.
Depository: Australia
Field of application: Regional/restricted
The objective of this convention is to protect the environment and integrity of the
ecosystem of the sea surrounding the Antarctica. The conservation of Antarctica marine
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living resources is primary concern of this convention. A commission for the conservation
of Antarctica marine living resources established with the following functions:
Convention on wetlands of
especially as waterfowl habitat
Place of adoption:
Ramsar
international
importance
The objective of this convention is to stop the encroachment on and loss of wetlands.
Under this convention, contracting party reach a decision to elect at least one national
wetland for insertion in a list of wetlands of international importance (art.2.1), and to
consider its international obligation for the conservation, management and wise practice of
migratory stocks of wildfowl, when altering the content of the list (art.2.6). Contracting
parties agrees to establish nature reserves in order to conserve wetland resources and to
raise waterfowl populations through management. Parties co-operate each other in the
exchange of information as well as in the implementation of the convention. The
International Union for the Conservation of Nature and Natural Resources is nominated to
execute the bureau duties under the Convention (art.8).
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The objective of this convention is to protect all species of whale. This Convention set up
an International Whaling Commission for the control of whaling. This convention
recognizes the interest of nations in conservation for future generations the great nature
resources represented by the whale stocks. The parties agree to take adequate measures to
prevent decline in population of whales.
This protocol is enabled by international convention for the regulation of Whaling. The
objective of this protocol is to extend the application of the convention to helicopters and
other aircraft and insert provisions on methods of inspection. Article V paragraph 1 of the
Convention enable the commission to amend the schedule by adopting regulations with
respect to methods of inspection.
Agenda 21
Its a non-binding and voluntarily applied action plan of the United Nation with regard to
sustainable development. The 21 in Agenda 21 indicates to the 21st Century. Agenda 21
is an action plan of 40 chapters divided into four sections. Agenda 21 was first stated in
earth summit in 1992.
Stockholm declaration
The United Nations Conference on the Human Environment was held in Stockholm,
Sweden from June 516 in 1972. Stockholm declaration is a set of 26 principles and 109
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Check: Monitor and measure different activities to ensure that biodiversity functioning are
matching with the objectives and are in the right path.
Act: Management Review of all actions to recognize opportunities for continual
enlargement and thus recognizing any changes, if required.
8. Performance evaluation
8.1 Monitoring, analysis and evaluation
A company should adopt clear policies to monitor, measure, analyze and evaluate the
system. The monitoring and evaluation processes should carry out on a regular basis. The
results of monitoring and evaluation should update in the documents and properly
communicated throughout the organization.
9. Conclusion
Humans are the one who are responsible for the global environmental change which cause
threatening to biodiversity at an unprecedented scale. In return many ethical motives to
preserve it for its own sake, biodiversity offers numerous ecosystem services that are
crucial to human well-being at present and in the future. Power companies are also blessed
with natural resources like water, natural energy, biomass etc. which help them in boost
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their production. So its moral and ethical responsibility of the companies to give back to
the nature.
Gradually, companies are recognizing that integrating biodiversity in business is not only a
social responsibility but it is developed as a tool to create goodwill and gain advantage,
over a period of time. The leading companies across the world are integrating biodiversity
into business, operation and decision making and gaining operational, strategic,
reputational and financial benefits. By doing so they are creating a platform to lend money
by global financial institutions and multilateral development banks, meeting legal
compliance system of the country and handling the projects in socially and
environmentally responsible manner.
Every company has a diverse set of values, principles and policies, each is at a different
point along the route of incorporating biodiversity into its systems and operations, and
each will progress at a different rate toward achieving effective consideration of
biodiversity issues. But before integrating biodiversity in operation, management and
decision making process a company needs to develop safeguards for better attainment of
results.
9.1 Recommendations
To encourage progress in integrating biodiversity conservation into business, the study of
the report recommends that:
The companies should develop a baseline before starting the project. The company
should conduct environmental study of the site before starting operation and find
out that what will be the impact of operations on local biodiversity. If the place is
biodiversity rich or marked as area for threatened species, the company should
avoid any type of contact with such areas. If company chooses to operate in areas
of high biodiversity value, company should employ a comprehensive set of
management actions, including mitigation, compensatory measures and
investments in opportunities to benefit biodiversity conservation.
Based on the biodiversity assessment baseline, identify the key species that are
impacted by the company operation and work for their conservation. It will comply
with IFC performance standard 6 and the wildlife protection act.
Identify migratory species that has been path along company site and work for their
protection and conservation. It will ensure company best practices for biodiversity
conservation in one hand and on the other hand it will comply with Convention on
the conservation of migratory species of wild animals.
After selection of site, there should be continual monitoring of operational impact
on biodiversity. The company should identify indicators to measure the impact and
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make adequate program for the conservation of biodiversity like monitoring of bird
life for three years after commissioning of the wind farm.
The company might require reducing or shutting down the operation during peak
seasons to protect the species. So company should prepare with a closure plan in
advance and find alternative for this closure. Ex- reduction or complete stoppage of
wind power generation during bird migration periods
The company should implement adequate techniques to protect impacted species
during day to day operation like fish passes to enable fish to bypass dams,
ultrasound techniques to prevent fish being caught in the cooling water inlet filters
of conventional power generating plants etc.
The companies should report of their biodiversity practices on timely basis and it
must be transparent and available in public domain. It would serve the lending
criteria of financial institution and also create goodwill among different
stakeholders.
Stakeholder engagement that includes biodiversity conservation should continue
throughout the project life cycle. Stakeholder engagement during impact
assessment, indicator development and evaluation of opportunities to benefit
biodiversity conservation is most important. It would also comply with lending
criteria of financial institution.
Company should work closely with conservation organizations to make use of their
expertise. It will enable companies for better management of projects as well as
meet one of the principles of financial institutions.
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References
(1982). United Nations convention on the law of the sea. Montego Bay: United Nations.
(1992). Convention on biological diversity. Rio de Janerio: United Nations.
(1992). Global biodiversity strategy. IUCN, WRI, UNEP.
(1992). The Rio declaration on environment and development. Rio de Janerio: United
Nations.
(2000). Cartagena protocol on biosafety to the convention on biological diversity. United
Nation.
(2001). Memorandum of understanding concerning conservation and management of
marine turtles and their habitats of the Indian Ocean and South East Asia. Manila:
CMS.
(2007). Memorandum of Understanding on the conservation and management of Dugongs
(Dugong dugon) and their habitats throughout their range. Bonn: CMS.
(2009). Safeguard policy statement. Asian Development Bank.
(2010). Biodiversity action guidelines by the Japanese electric utility industry. The
Federation of Electric Power Companies of Japan.
(2010). Nagoya - Kuala Lumpur supplementary protocol on liability and redress to the
Cartagena protocol on biosafety. Nagoya: United Nations.
(2010). Nagoya protocol on access to genetic resources and their fair and equitable
sharing of benefits arising from their utilization to the convention on biological
diversity. Nagoya: United Nations.
(2012). Performance standards on Environmental and Social Sustainability. International
Finance Corporation.
(2012). Safeguards for scaling-up biodiversity finance and possible guiding principles.
Hyderabad: CBD.
(2013). Environment policy. Warwick: National Grid.
The Equator Principles. (2013, June). Retrieved from Equator Principles: www.equatorprinciples.com
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Exhibits
Glossary of Terms
Biodiversity: Biodiversity also known as biological diversity may define as the variety
and variability of life on earth across all of the diverse levels of biological organizations. It
is seen in the number of species in an ecosystem or on the entire Earth. It is also considered
as tool to measure the health of biological system, the more diversity we have the healthier
will be biological system.
Environment: Environment is the concept of defining the surroundings in which a person,
plant and animal lives or operates.
Nature: Nature is the phenomena of the physical world in which animals, plants, the
landscape and further features and products of the earth includes.
Ecosystem: Ecosystem is defined as the community of living and non-living things. The
living things are known as biotic factors, and the non-living things are abiotic factors.
Ecosystem is the study of processes that connect the living components to the non-living
components.
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Arboretum: Arboretum is a place where different kind of trees, shrubs and herbaceous
plants are grown for purpose of educational and scientific research.
Biome: Biome is a collection of animals and plants that have similar characteristics
because of climatic conditions and can be found over a range of continents.
Power Industry: Public utility industry that provides electricity.
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