Key points
- A suite of new resources has been released to support the mining industry to adopt Natural Capital Accounting (NCA) – a way of accounting for impacts on nature over the life of projects.
- Resources include a business case, gap analysis and roadmap, guidance on NCA concepts, methods and reporting structures, and a pilot forecasting study to demonstrate a potential strategic use of NCA.
- Development of the suite was led by the Cooperative Research Centre for Transformations in Mining Economies (CRC TiME) and CSIRO with funding from the Commonwealth Department of Climate Change, Energy, the Environment and Water (DCCEEW).
A new suite of reports aimed at supporting the Australian mining industry to implement Natural Capital Accounting (NCA) has been released today.
Globally and nationally, organisations are increasingly being asked to account for their impacts and dependencies on nature, including natural capital under their stewardship.
"There is growing concern about risks to economic stability associated with changing climates and declining biodiversity, which have generated calls for greater action from the private sector," said Associate Professor Bryan Maybee, CRC TiME Program Leader, and Associate Professor of Minerals and Energy Economics at Curtin University's Western Australian School of Mines: Minerals, Energy and Chemical Engineering.
"The prominence of NCA and natural capital assessment in responding to these calls for improved disclosure has accelerated considerably over the last decade. This has seen the emergence of numerous initiatives, frameworks, metrics and targets, all aimed at improving the consistency and comparability of reporting in relation to natural capital.
"These reports have analysed existing data to facilitate development of the consistent approach that is needed across the mining sector."
Developed over 18 months, the resources are intended to build industry capability, understand the sector's readiness to adopt NCA, and to enable consistent application and reporting of natural capital information over time.
CRC TiME together with partner CSIRO, Australia's national science agency, led report collation, with input from the Department of Climate Change, Energy, the Environment and Water (DCCEEW) – initiator of the overarching CRC TiME NCA project – and other CRC TiME partners including Alcoa, BHP, Curtin University, Hanson Construction Materials Pty Ltd, Murdoch University, Syrinx Environmental PL and the University of South Australia.
Specifically, the four reports provide guidance around the following:
- Business case: developed around implementing NCA in the Australian mining sector through an analysis of the opportunities that can be realised from its adoption, and the challenges to its implementation. Includes an indicative roadmap for NCA implementation.
- Guidance: designed to build understanding of the concepts, methods and reporting structures for NCA and risk assessment, with a view to practical implementation.
- Case study report: presenting synopses of the pilot case studies that were undertaken to test the applicability of the System of Environmental Economic Accounting-Ecosystem Accounting (SEEA-EA) framework in the Australian mining sector. These case studies were used to inform the development of the Business Case and Guidance Material.
- Forecasting study: testing and demonstrating the potential to use NCA information for strategic forecasting purposes in the mining sector.
Dr Anthony O'Grady, a Senior Principal Research Scientist in the Natural Capital group in CSIRO, and Project Manager on this CRC TiME project, is excited by the potential opportunities for mining companies arising from these new reports.
"NCA is identified as a pivotal tool for understanding the interplay between the environment and the economy, and can drive improvements in disclosure and sustainability reporting – effectively enabling the mining sector to better demonstrate environmental accountability," Dr O'Grady said.
"Furthermore, NCA can also act as a strategic tool for the creation of future value and competitive advantage. We hope these reports provide a step in the right direction for Australia's mining industry in generating a consistent, efficient and effective approach to NCA adoption and implementation."
About CRC TiME
The Cooperative Research Centre for Transformations in Mining Economies is supported by the Australian Government Department of Industry, Science and Resources through the Cooperative Research Centre Program.
It is the world's only research organisation dedicated to bringing together diverse partners to help examine and transform what happens – economically, socially and environmentally – after mining ends for the better.
About CSIRO
As Australia's national science agency, CSIRO solves the greatest challenges through innovative science and technology. CSIRO collaborates with industry, government, academia and the community to turn science into solutions.
Originally published by CRC TiME
