Supply Chain Biodiversity Footprint Assessment in Mining

The mining industry frequently requires personnel and heavy machinery to operate in remote, ecologically rich regions, severely disrupting their delicate ecosystems. Biodiversity degradation typically occurs from activities like exploration, extraction and transportation. For instance, a report from the International Union for Conservation of Nature (IUCN) indicates that mining activities resulted in the loss of 1.4 million hectares of forest cover from 2001 to 2020. As part of the increasing attention being paid to biodiversity risks globally, there is a demand for transparency and demonstrable impact reduction from stakeholders in the mining industry. Conducting a supply chain biodiversity footprint assessment in mining, particularly during the exploration process, can enable companies to quantify their biodiversity impacts across the full value chain. As mining often happens near biodiversity hotspots, i.e., areas with large numbers of endemic plant and animal species, understanding its impact on the ecosystem can help mitigate biodiversity risks.

Biodiversity Risks in Mining

Pictured: Mines in known biodiversity hotspots.
Image Credit: MSCI.com

The mining sector has been closely linked to biodiversity risks. From initial geological surveys and land clearing to the development of infrastructure and transport corridors, biodiversity is affected at every stage:

• Exploration: This phase often requires access to remote, ecologically sensitive regions. Plants and animals are disturbed by activities like soil sampling, seismic surveys and temporary road construction, sometimes causing irreversible fragmentation of their habitat.
• Extraction: When the mining takes place in an open pit or underground, the vegetation is removed, water courses are often changed and pollutants are released. These actions impact local ecosystems and species diversity.
• Logistics: The construction of road, rail and port infrastructure introduces noise, light pollution and obstacles that hinder the movement of species in the area. This could also lead to the unintentional introduction of invasive species along transportation corridors.
• Processing and Waste Management: Chemical runoffs and waste rock dumps have been documented in mining operations, posing a risk to aquatic and terrestrial ecosystems. Toxic leakage from the containment areas can also spread beyond operational boundaries.
• Closure and Rehabilitation: Poorly managed mine closures can leave degraded landscapes and unsuccessful attempts at restoring the habitat, extending biodiversity impacts far beyond the life of the mine.

Research from MSCi indicates that as of 2020, more than 20% of global mines are in areas identified as biodiversity hotspots. Mines located in developing regions like Brazil, Congo and Indonesia are of particular concern due to the inadequacy of existing biodiversity laws to protect the ecosystem. Mining operations in such regions have also been closely linked to conflicts with the indigenous populace.

What Is Supply Chain Biodiversity Footprint (SCBF) Assessment?

Supply Chain Biodiversity Footprint (SCBF) assessment analyses how the activities within an organisation’s supply chain affect biodiversity. This involves exploring the sources of the raw materials, the production process and any other supply chain activities. In mineral and metals exploration, supply chain footprint assessment in mining can quantify biodiversity loss linked to all tiers of a mining company’s operations, from raw material sourcing through to final delivery.

This includes:

• Mapping biodiversity impacts: Traces impacts from extraction sites to downstream customers, capturing upstream impacts from suppliers and contractors.
• Calculating biodiversity footprint: Implementing a Life Cycle Impact Assessment (LCIA) to assess and quantify the negative biodiversity impact of mining activities in the reg
• The impact of each commodity or activity in the supply chain relative to the total biodiversity footprint is carefully evaluated using the year metric.

The SCBF methodology draws upon recognised frameworks like the Convention on Biological Diversity (CBD), Global Reporting Initiative (GRI) Standards, Kunming-Montreal Global Biodiversity Framework (GBF) and Science Based Targets for Nature. These tools allow for a high-resolution understanding of how operations intersect with ecological thresholds, supporting a data-backed approach to supply chain biodiversity footprint assessment in mining.

Read More: Understanding SCBF: Frameworks and Regulations

Role of SCBF in Promoting Responsible Mineral Mining

The adoption of supply chain biodiversity footprint assessment in mining is vital to corporate Environmental, Social and Governance (ESG) strategies that advance responsible mining by:

• Improving accountability: SCBF quantifies environmental impacts across jurisdictions and suppliers, enabling companies to report accurately and act decisively.
• Guiding project planning: Risk maps help developers avoid biodiversity-rich areas early in project development, saving costs and reducing regulatory resistance.
• Enhancing stakeholder relations: Transparent reporting of biodiversity impacts increases trust among local communities, regulators and NGOs.
• Supporting biodiversity assessment and offsets: Enables tailored restoration, offsetting or conservation initiatives where impacts cannot be fully avoided.
• Strengthening supply chain integrity: Encourages collaboration with suppliers and contractors to implement nature-positive practices.
• Integrating with carbon strategies: SCBF complements carbon accounting by identifying co-benefits or trade-offs with nature-based solutions.

Moreover, it positions organisations as leaders in sustainability in mining industry, which can offer competitive advantages in ESG ratings, investor relations and global procurement.

Aligning SCBF with Broader ESG and SDG Commitments in Mining

Integrating supply chain biodiversity footprint assessment in mining also contributes to key UN Sustainable Development Goals (SDGs), notably:

• SDG 12 – Responsible Consumption and Production: Encourages lifecycle thinking and responsible value chains.
• SDG 13 – Climate Action: Supports ecosystem resilience, which underpins climate adaptation.
• SDG 15 – Life on Land: Directly addresses ecosystem degradation and promotes land restoration.

For organisations reporting under frameworks like GRI or CDP, SCBF offers a quantitative way to evidence biodiversity due diligence and impact reduction. It also complements broader ESG data collection initiatives, supporting integrated sustainability reporting.

Case Study: How Optima Identified Four Key Biodiversity Hotspots with a SCBF Assessment

The SCBF assessment conducted by Tunley Environmental for Optima, a manufacturing company that specialises in the creation of crafted glazed partitioning systems, demonstrates how SCBF puts theory into practice. Optima sought to identify external biodiversity hotspots and the risks within their wider supply chain. Led by Senior Scientist and Biodiversity Co-Lead Dr Tara Garraty, Tunley Environmental carried out an SCBF assessment on Optima’s supply chain using the Biodiversity Input-Output methodology. This resulted in the identification of four key biodiversity hotspots:

• Land use with 59%
• Climate change and terrestrial ecosystems with 20%
• Acidification of terrestrial ecosystems with 15%
• Eutrophication of freshwater ecosystems with 10%

Once the hotspots were identified, further research was carried out into how these contributed to ecological impacts.

The Bottom Line

Regulations to improve biodiversity globally and increasing stakeholder pressure have made it imperative that the mining sector needs to take more action against the degradation of ecosystems through extraction, transport and sourcing. Supply chain biodiversity footprint assessment in mining offers a science-based solution to measure and manage biodiversity impacts. It can help mining companies proactively mitigate risk, support responsible sourcing and enhance their license against increasing biodiversity protection legislations.