Ecosystem accounting provides an on-going organizational framework for monitoring that there is no net loss of biodiversity over time. Biodiversity offsetting appears to be becoming established practice in the corporate world. In recent years mining companies have become actively engaged in promoting ‘biodiversity offsetting’ as a way of ‘greening’ the mining sector. BHP Billiton states that:

Our IndoMet Coal Project (IMC) is located in Central and East Kalimantan (Indonesian Borneo) within a region globally recognized for its biodiversity and cultural values. Part of the region is covered by the Heart of Borneo Initiative which is a tri-lateral agreement between Indonesia, Malaysia and Brunei aimed at a cooperative approach to balancing the protection of natural capital and sustainable development of this region. Recognizing the importance of this area, since 1999, we have undertaken extensive environmental and social assessments. We have been engaging and partnering with leading conservation and community non-government organizations (NGOs) in the development and implementation of our biodiversity strategy.

Required: Considering BHP’s biodiversity strategy, discuss the four (4) challenges for BHP associated with biodiversity offsetting. Explain the hierarchical mitigation steps for companies like BHP to follow in order to achieve no overall negative impact on biodiversity.

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The hierarchy follows avoidance minimization restoration and offsets in order to reduce development ... View the full answer