Developing Biodiversity Safeguards for Power

Industry to Meet National and International

Standards

(Report submitted for the partial fulfillment of Post Graduate Diploma in

Forestry Management)

Report on Summer Internship

At

International Union for Conservation of Nature

By:
Ankit Kumar Singh
PGDFM 2015-17
Indian Institute of Forest Management
Nehru Nagar, Bhopal- 462 003
i

DECLARATION BY THE ORGANIZATION

This is to certify that the project entitled Developing Biodiversity Safeguards for

Power Industry to Meet National and International Standards done by

Ankit Kumar Singh (PGDFM 2015-17) for International Union for Conservation of Nature
is original work. This has been carried out as summer internship under my guidance for
partial fulfillment of Post Graduate Diploma in Forest Management at Indian Institute of
Forest Management, Bhopal.

Place: New Delhi

Date: June 03, 2016

Reporting Officer
Organization Name & Seal

ii

DECLARATION BY THE STUDENT

I, Ankit Kumar Singh, hereby declare that the project report entitled Developing

Biodiversity Safeguards for Power Industry to Meet National and

International Standards is an original work. The contents of the project report have
not been published before and reflect the study and work done by me during my summer
internship of the Post Graduate Diploma in Forest Management at Indian Institute of Forest
Management, Bhopal from 05 April 2016 to 05 June 2016 with International Union for
Conservation of Nature.

Place: New Delhi

Ankit Kumar Singh

Date: June 03, 2016

(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

Executive Summary .............................................................................................................. x

1. Introduction ....................................................................................................................... 1
1.1 About the organization ................................................................................................ 1
1.2 Background of the project ........................................................................................... 3
1.3 Project description/Problem definition........................................................................ 6
1.4 Rationale of the project ............................................................................................... 7
1.5 Scope of the project ..................................................................................................... 8
1.6 Literature review ......................................................................................................... 8
2. Power scenario in India ................................................................................................... 11
2.1 Overview of the Indian energy sector ....................................................................... 11
2.2 India's power market ................................................................................................. 12
2.3 Power generation ....................................................................................................... 12
2.4 Power transmission ................................................................................................... 13
2.5 Power distribution ..................................................................................................... 13
3. Tools used for study ........................................................................................................ 14
4. Developing safeguards on parameters ............................................................................. 15
4.1 Parameter: Legal ....................................................................................................... 15
4.1.1 Central biodiversity laws .................................................................................... 15
4.1.2 State biodiversity laws ....................................................................................... 17
4.2 Parameter: Financial .................................................................................................. 23
4.2.1 Equator principles .............................................................................................. 23
4.2.2 IFC performance standards ................................................................................ 25
4.2.3 Safeguard policy statement- Asian Development Bank ..................................... 27
iv

4.2.4 EHS guidelines for thermal power plants .......................................................... 29

4.2.5 EHS guidelines for electric power transmission and distribution ...................... 31
4.2.6 Principles for responsible investment ................................................................ 34
4.3 Parameter: Operational .............................................................................................. 35
4.3.1 Biodiversity conservation practices by leading power companies ..................... 35
4.4 Parameter: Strategic .................................................................................................. 43
5. Measuring impacts and actions on biodiversity .............................................................. 53
5.1 Methodology for developing biodiversity indicators ................................................ 53
6. Framework for integrating biodiversity into the site selection process........................... 55
7. Management of biodiversity practices in business .......................................................... 56
7.1 PDCA cycle ............................................................................................................... 56
8. Performance evaluation ................................................................................................... 57
8.1 Monitoring, analysis and evaluation ......................................................................... 57
8.2 Internal audits ............................................................................................................ 57
8.3 Management reviews ................................................................................................. 58
9. Conclusion ....................................................................................................................... 58
9.1 Recommendations ..................................................................................................... 59
References ........................................................................................................................... 61
Exhibits................................................................................................................................ 63
Glossary of Terms ........................................................................................................... 63

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:

Legal- Safeguards should develop a legal compliance mechanism of the country

Financial- Safeguards should meet the requirements of global financial institutions
to lend money
Operational- Safeguards should take account of biodiversity practices by sector
peers to gain competitive advantage
Strategic- Safeguards should meet the requirements of global conventions signed
by country

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.

What IUCN do?

Biodiversity conservation is principal to the mission of IUCN. We validate how
biodiversity is vital to addressing some of the worlds greatest challenges such as climate
change, sustainable development and food security. IUCN builds on its strengths in
following three areas to deliver conservation and sustainability at both the local and global
level.

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:

Figure 1: IUCN Focus Area

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.

Table 1: List of IUCN Members

(Source: IUCN 2014 Annual Report)

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.

1.2 Background of the project

India is always been considered a country of biodiversity richness. India has high
biodiversity value. It supports total of 8.1 percent of the worlds biodiversity on just 2.4
percent of the worlds total landmass. India is listed one of the 12 mega-biodiversity
countries of the world which supports 45000 species of plants and 91000 species of
animals that constitute respectively 11 percent and 7 percent those recorded in the world.
3

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:

Spectrum of ecosystems actuated by the varied agglomeration of landforms spaced

out in an extensive range of latitudes and longitudes. Together with a wide range of
climatic regimes, these offer a notable range of physical environment.
India lies in the confluence zone of three main hubs of origin of life on earth or
Bio-geographic Realms i.e. Indo-Malayan, Eurasian and Afro-tropical.
Indias rich cultural heritage of compassion for all life forms and the longstanding
tradition of conservation.

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.

Plate 1: Status of Species in the World

(Source: Business Insider)

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.

1.3 Project description/Problem definition

Now a day, business collaborations are emerging as a key to safeguard biodiversity and
deliver sustainable development. For sake of conserving biodiversity, a number of global
agreements have been made and 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. For companies, environmental
challenges have as much potential to hurt their bottom line as financial issues.
Here the project problem is to deliver a biodiversity safeguards for power industry and
these safeguards must pass on national as well as international standards. The path of
developing biodiversity safeguards for power industry is not easy as it seems to be. Such
industries are marked as one of the biggest threat to biodiversity and environment. They
produce a wide range of negative impacts on ecosystem. The demand for energy in country
is continuously rising and to meet this demand industries are likely all set to put more
pressure on environment and biodiversity. Power industry is struggling to meet public
demand for abundant, low cost energy and at the same time to meet environmental
responsibility including biodiversity protection.
In this project four parameters are identified to develop the biodiversity safeguards. The
developed safeguards would be validated only to following these four parameters:

Legal
Financi
al
Operati
onal

Strate
gic

Develop a legal compliance mechanism

Requirements of global financial institutions to lend money

Biodiversity practices by sector peers to gain competitive

advantage

Requirements of global conventions signed by country

Figure 3: Parameters for Project Study

1.4 Rationale of the project

Due to their negative impacts on environment, power companies are pressurized by the
different stakeholders like government, shareholders, citizens etc. As a result power
industry is imposed with different laws, policies and also many international conventions
which India has signed to conserve the biodiversity.
The purpose of this project is to create a baseline for biodiversity safeguards for power
industry considering certain parameters. At the end of the project, any power company
would be able to develop legal compliance mechanism related to biodiversity which is
required for power industry in the country. Also after completion of project, industry can
expect financial assistance by the investment institutions by following biodiversity
standards developed by the banking institutions. Project will provide a glimpse of what
leading power companies are doing regarding biodiversity conservation around the globe.
By integrating those biodiversity practices any company can seek competitive advantage.
The report also describes the conventions India has signed to protect biodiversity; it might
give a birth to law in future. So any company can become proactive of this situation.

1.5 Scope of the project

This report has limited scope and study applies within those ranges only. Above this scope
the applicability of report might or might not be possible.

It applies to the generation, transmission and distribution activities of power

industry.
This report consider four parameters: legal requirements, biodiversity practices by
sector peers, requirements of global financial institutions to lend money and
requirements of global conventions signed by India.
It applies to the power companies running their operations in India.
This report considers the biodiversity aspect of environment.
This report is prepared with information up to the date. Any changes in future to
that information may affect the applicability of project.

1.6 Literature review

Biodiversity, the complex web of genes, species, ecosystems and ecological processes that
sustain life on Earth, provides human society with food, medicines, natural resources,
ecological services and spiritual and aesthetic benefits. However, this biodiversity is under
greater risk than ever before from human activities. While power companies operations are
often not the largest threat to biodiversity in an area, they can have a wide range of
negative influences on ecosystems. In some cases, company actions may also make a
helpful contribution to biodiversity conservation. With increasing demand for energy over
the next some decades, the danger to biodiversity from energy development projects is
expected to rise.
The increasing demand of energy and significant importance of value has led to some
difficult challenges for both the energy industry and the conservation society. The
challenge before power industry is to find a way to fulfill the public demand for plentiful,
low-cost energy, at a very same time, meet societys anticipations for corporate social and
environmental responsibility, counting biodiversity protection. Several chief companies are
finding operational, strategic, reputational and financial benefits to including biodiversity
conservation in their policies, decision-making, and operations. For conservation
organizations, the problem is to encourage biodiversity while functioning with industry to
find the balance between the dangers that energy company represents and the prospects for
harnessing the impact, proficiency and resources of energy industries for conservation
efforts. So it very important to find a link between corporate and conservation to tackle
these challenges.
8

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.

Figure 4: Involvement in Biodiversity through Electric Utility Industry Activities

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

2. Power scenario in India

This chapter starts with the background highlighting the importance of energy and further
includes power generation, transmission and distribution scenario of India.

2.1 Overview of the Indian energy sector

Energy use accelerates all human endeavor, as well as social and economic progress. Thus
production and consumption of sufficient energy is considered to be one of the main
challenges for economic development. The degree of energy consumed per capita has
become one of the factor of up gradation and development of a country. Thus, energy
issues and policies are strongly concerned with increasing the supply of energy. Though
energy fuels economic growth, and is for that reason a vital concern for all countries,
access to energy varies widely among them. 70% of people in rural areas rely on
traditional energy resources like fuel wood, kerosene etc. and are not able to take the
benefit of the opportunities made possible by modern form of energy.

Table 2: Fuel Consumption Percentage of Population

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.

2.2 India's power market

The Indian power infrastructure is failing to maintain pace with rapidly developing
economy of the country. Therefore power market is facing major challenges regarding
quality and quantity of electricity supply. In order to meet the growing demand of country,
India needs to double its installed capacity and also to ensure constant supply of fuels from
indigenous energy sources. With emerging economy and lifestyle there is requisite to
provide power to millions of new customers as well as there is need to provide low-cost
power for development purposes of rural areas to enlarge the access of electricity to
accomplish goal of electricity for all as well as elimination of poverty. The sector peers in
European countries are focusing to reduce their impact on biodiversity and to work for
conservation of biodiversity but Indian power companies are not that much concerned in
comparison to European countries.

2.3 Power generation

India has fifth-largest electricity generation capacity in the world. According to Central
Electricity Authority, the total power generation capacity in India is about 288 GW in
2016. Thermal power (coal, gas and diesel) still dominates the Indian power sector with
installed capacity of 70%, followed by hydro power (15%), nuclear power (2%) and
renewable energy sources (13%) as shown below.
Thermal power

Nuclear

Hydro

Renewable

13%
15%
2%
70%

Figure 5: Power Generation Capacity of India as on Jan 2016

12

Figure 6: Thermal Power Generation Break up

Diesel
Gas
Coal
0

50000

100000

150000

200000

2.4 Power transmission

According to Ministry of Power the total transmission capacity of the inter-regional links is
59,550 MW on 30th April 2016, which is anticipated to be increased to 68,050 MW by
the end of 12th plan i.e. 31st March, 2017.
The transmission lines are worked in accordance with Regulations/standards of Central
Electricity Authority (CEA) / Central Electricity Regulatory Commission (CERC) / State
Electricity Regulatory Commissions (SERC). POWERGRID a Central Transmission
Utilities (CTU) is accountable for planning inter-state transmission system (ISTS).
Likewise there is State Transmission Utilities (STU) responsible for the expansion of Inter
State Transmission System.

2.5 Power distribution

Even during the year 2010-11, regardless of increased total ex-bus energy availability and
improved peak met over the preceding year, the scarcity conditions prevailed in the
country both in terms of energy and peaking availability. All the regions in the country
namely Northern, Southern, Western, Eastern and North-Eastern regions continued to
experience energy as well as peak power shortage of fluctuating magnitude on an overall
basis.

13

The following table represents the power distribution position (energy and peak) in March
2016.

Table 3: Power Distribution Position (Energy and Peak) in March 2016

3. Tools used for study

There are different tools used for study on developing biodiversity safeguards for power
industry on four parameters. The important used tools are as follow:
Literature review: Several research papers are used as a reference for the study. All
papers are listed in reference section.
Field research: Ten days of field study at Tata Power, Mumbai, is also done for purpose
of reference to develop biodiversity framework.

14

Expert consultation: The study is completed with consultation of ecosystem and

biodiversity expert Mr. Vipul Sharma, Program Officer, IUCN India.
Official documents and disclosures: Several official documents are analyzed. The list of
all documents is given in reference section.
Ministries sites: Sites of Ministries like Ministry of Environment & Forest, Ministry of
Power, and Ministry of External Affairs are used for information purpose.

4. Developing safeguards on parameters

There are four parameters considered in this report to develop biodiversity safeguardslegal, financial, operational and strategic.

4.1 Parameter: Legal

Develop a legal compliance mechanism
India has passed a number of acts to conserve and protect biodiversity. These acts abide
industries to follow the provisions into their day to day business. The country has passed
biodiversity related acts on central level that extends to the whole of India. Along with
most states has also passed acts, to take care of biodiversity, which applies to their states
only.
The operations of power industry might affect the natural habitat and biodiversity so it is
important for the industry to take consideration of biodiversity laws. It is essential for
power companies to develop biodiversity safeguards in order to fulfill a legal requirement
of the country. The followings are the biodiversity laws which power companies need to
follow to accomplish the legal requirement.

4.1.1 Central biodiversity laws

The country has passed following central biodiversity laws that might apply to power
industries. It extends to the whole of India except state of Jammu & Kashmir.

The Indian forest act, 1927

The India forest act, 1927 is mostly based on former Indian forest acts implemented during
British period. It is an act to consolidate the law relating to forests, the transit of forestproduce and the duty imposed on timber and other forest-produce. The India forest act
describes the procedure to be followed for announcing an area to be a protected forest,
reserved forest and village forest. It describes the activities which are not allowed inside a
15

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.

The forest (conservation) act, 1980

The forest (conservation) act, 1980 was passed with a vision to check further deforestation,
which eventually results in ecological imbalances; therefore the provisions made therewith
must apply to all forest regardless the nature of ownership for classification thereof. This
act put restrictions on the state government regarding conservation of forest and forest land
use for not non-forest purposes. Section 2 of the acts describes that state government
should not make any amendments without the prior approval of central government.
The Forest Conservation Act, 1980 is a Central Act of Parliament with a vision to offer for
the preservation of forest and for matters connected therewith or ancillary or incidental
thereto. This act was further amended in 1988 (69 of 1988). This act extends in whole of
India except the State of Jammu & Kashmir.

The forest (conservation) rules, 2003

The forest (conservation) rules, 2003 defines the guidelines that must be followed for the
successful implementation of the forest (conservation) act, 1980. It includes the rules made
to exercise the powers conferred by sub-section (1) of section 4 of the Forest
(Conservation) Act, 1980 (69 of 1980). This rule extends in whole of India except the State
of Jammu and Kashmir.

The national forest policy, 1988

The first forest policy in India was introduced in 1894. It subsequently amended in 1952
and 1988. The key objective of the revised forest policy of 1988 is conservation, protection
and development of forests.
The main aims of national forest policy are:

Protection of natural heritage

Enhance the productivity of forest to meet the need of nation
Making organized use of forest produce and ideal substitution of wood
16

Minimize the pressure on existing forests

Maintenance of environmental stability through protection and restoration of
ecological balance

The wild life (protection) act, 1972

The Wildlife Protection Act is an act of the Parliament of India. It was legislated for
protection of plants and animals. It extends in whole of India, except the state of Jammu &
Kashmir. Jammu & Kashmir has its own wildlife act. This act is provides for captive
breeding program for endangered species.
The Wildlife Protection Act has six schedules which provide varying steps of protection.
Schedule I and II covers animals of endangered species. The sections in this schedule take
great care of protection of species. Schedule III and IV cover animals, that are not in
danger of becoming extinct. Schedule V describes animals that can easily be hunted or
killed. So hunter seeks a permission from District Forest Officer to hunt. Schedule VI deals
with cultivation and plant life and encourages in setting up more protected animal parks.

The wild life (protection) rules, 1995

The wild life (protection) rules, 1995 defines the guidelines that must be followed for the
successful implementation of the wild life (protection) act, 1972. It includes the rules made
to exercise the powers conferred by clause (k) of sub-section (1) of section 63 of the
Wildlife (Protection) Act, 1972 (53 of 1972). This rule extends in whole of India except
the State of Jammu and Kashmir.

4.1.2 State biodiversity laws

The most states of India have enacted biodiversity laws for conservation of biodiversity.
These acts might apply on power industries, subject to conditions. If Power Company has
implemented their project in any state then apart from central biodiversity law, Power
Company has to comply with provisions of respective state biodiversity acts. The state
laws extend only up to state boundaries.
The brief explanation of state biodiversity laws, state wise, is defined below.

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.
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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.

Jammu & Kashmir

The Jammu and Kashmir forest act, 1930- It is an act to revise and consolidate the
provisions of the law relating to forests and the transit of forest produce.
The Jammu and Kashmir wild life protection act, 1978- The objective of this act is to
make provisions for the protection of birds, animals and plants.
The Jammu and Kashmir forest (conservation) act, 1992- This act was enacted by the
Jammu and Kashmir State Legislature in the Forty-eighth Year of the Republic of India. It
extends to the whole of the State of Jammu and Kashmir. The objective of this act is to
make provisions for the conservation of forests.

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.
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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.

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4.2 Parameter: Financial

Requirements of global financial institutions to lend money
The companies require a huge sum of capital to run their projects and that capital can
easily be received from financial institutions by passing the criteria developed by them.
Most of the investment banks and financial institutions have also included the
environmental impact of projects as one of their criteria. So it is important for the
companies to consider the environmental aspects of the projects in order to gain financial
support. Many financial institutions have adopted the equator principles to ensure that
project they are financing has no adverse impact on environment. International Finance
Corporation has established eight performance standards to lend any project and
biodiversity conservation and sustainable management of living natural resources is one of
them. Asian Development bank has issued safeguard policy statement to finance
environmental friendly projects. Apart from these International Finance Corporation has
specifically developed the environmental, health, and safety guidelines for thermal power
plants electric power generation, transmission and distribution.
The integration of the above policies, guidelines and standards by investments banks into
their operation illustrates the importance for power companies for developing the
safeguards to create biodiversity financing mechanisms. The followings are the principles
and standards developed by the investment banks that Power Company needs to follow.

4.2.1 Equator principles

The Equators principles are the benchmark of financial industries for determining,
assessing and managing environmental and social risk in projects. The Equator Principles
Financial Institutions (EPFIs) have accepted the Equator Principles in order to make sure
that the Projects they sponsor and counsel on are settled in a manner that is socially liable
and reflects sound environmental management practices. EPFIs strongly believe in
biodiversity, climate change and human rights and ensure that negative impacts on
ecosystems, communities, and the climate should be avoided where possible. The Equator
Principles Financial Institutions has implemented the Equator Principles in their internal
environmental and social policies, procedures and standards for financing Projects.
The Equator principles are a set of ten principles. The Equator Principles Financial
Institutions provides project finance and project-related corporate loans to only those
projects that fulfill the requirements of principles 1-10.

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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.

Principle 5: Stakeholder engagement

For all Category A and Category B Projects, the EPFI will ask the client to determine
effective stakeholder engagement as a constant process in an organized and culturally
appropriate manner.

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Principle 6: Grievance mechanism

For all Category A and Category B Projects, the EPFI will ask the client to institute a
grievance mechanism intended to obtain and facilitate resolution of concerns and
accusations about the Projects environmental and social performance.
The grievance mechanism is essential to be scaled to the threats and effects of the project
and have affected communities as its primary user. It will look for to resolve concerns
quickly, using a comprehensible and translucent consultative process that is culturally
suitable, readily accessible, at no cost, and without retribution to the party that created the
issue or concern.
Principle 7: Independent review
For all Category A and Category B Projects, an independent environmental and social
consultant will perform an independent review of the assessment documentation in order to
assist the EPFI's due diligence, and assess Equator Principles compliance.
Principle 8: Covenants
The client will covenant in the financing documentation to fulfill with all related host
country environmental and social laws, regulations and permits in all material respects.

Principle 9: Independent monitoring and reporting

The client has to appoint an independent environmental and social consultant for
monitoring and reporting and its information would be shared with the EPFIs.
Principle 10: Reporting and transparency
The EPFI will report publicly, at least yearly, on transactions that have touched financial
end and on its Equator Principles implementation processes and experience, taking into
account appropriate.
The client has to ensure that, at least, a summary of the Environmental and Social Impact
Assessment is reachable and available online.

4.2.2 IFC performance standards

The policy and performance standards on environmental and social sustainability are an
integral part of IFCs approach to risk management. This policy describes IFCs
commitments, roles, and responsibilities associated to environmental and social
sustainability. The performance standards provide guidance on how to isolate risk and
impacts and structured to avoid and mitigate risk and impacts as a way of doing business in
25

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

Performance Standard 6: Biodiversity conservation and sustainable management of

living natural resources

Performance Standard 7: Indigenous peoples

Performance Standard 8: Cultural heritage

Performance Standard 6 identifies that caring and preserving biodiversity, maintaining

ecosystem services, and sustainably handling living natural resources are important to
sustainable development. The requirements set out in this performance standard have been
directed by the Convention on Biological Diversity. The objective behind standard 6 is to
protect and conserve biodiversity, to encourage the sustainable management of living
natural resources through the implementation of practices that assimilate conservation
needs and development priorities, to maintain the benefits from ecosystem services.
The risks and impacts identification procedure consider direct and indirect project-related
impacts on biodiversity and ecosystem services and recognize any important residual
impacts. The risks and impacts identification procedure includes relevant dangers to
biodiversity and ecosystem services, particularly focusing on habitat loss, invasive alien
species, overexploitation, nutrient loading, hydrological changes, degradation and
fragmentation and pollution. The client should avoid any adverse impact on biodiversity
and ecosystem. If not possible, try to mitigate and minimize adverse impacts on
biodiversity and ecosystem services.
26

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.

4.2.3 Safeguard policy statement- Asian Development Bank

The Asian Development Bank includes following three safeguards policies into their
operation.

The Environment Policy

The Involuntary Resettlement Policy
The Policy on Indigenous Peoples
27

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:

Whereas possible, avoid negative impacts of projects on the environment and

affected people
When avoidance is not possible try to minimize and mitigate the negative impacts
of projects on the environment and affected people
Support borrowers to build up their safeguard systems and advance the capability
to manage environmental and social risks.

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

Policy principles for environmental safeguards

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

Consider alternatives to the projects location, technology, design, and components

and their probable environmental and social impacts and document the basis for
choosing the particular alternative proposed.
Avoid adverse impacts and where not possible minimize and mitigate and enhance
positive impacts by means of environmental planning and management. Also
prepare environmental management plan that includes environmental monitoring
and reporting, mitigation measures, implementation schedule, capacity
development and performance indicators etc.
Implement environmental management plan and
monitor its effectiveness. Note
down the monitoring results and disclose the reports.
Avoid the project activities in critical habitat areas unless there are no assessable
adverse impacts on the critical habitat that could impair its ability to function and
there is no reduction in number of endangered species.
The borrower will institute a mechanism to collect and facilitate resolution of
affected peoples concerns, grievances and complaints about the projects
environmental performance. The grievance mechanism must scale to the risks and
negative impacts of the project.
If during project implementation, unanticipated environmental impacts become
apparent, the client will update the environmental management plan and
environmental assessment or conduct a new environmental assessment to find the
alternatives and measures to mitigate those impacts.
The borrower will measure the significance of project impacts on biodiversity as an
integral part of the environmental assessment process specified in para 410. The
assessments will emphasis on the main threats to biodiversity, which consist of
destruction of habitat and introduction of invasive alien species, and on the practice
of natural resources in an unsustainable manner.
The borrower is accountable for setting and designing the project to avoid
substantial damage to physical cultural resources. Such resources possible to be
affected by the project will be recognized, and skilled and knowledgeable experts
will evaluate the projects potential impacts on these resources by means of fieldbased studies as an integral part of the environmental assessment process specified
in Para 410.

4.2.4 EHS guidelines for thermal power plants

The general approach to the management of Environmental, Health, and Safety issues in
industrial development activities, counting power plants, should consider possible impacts
as early as possible in the project cycle, including the integration of EHS considerations

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

Water consumption and aquatic habitat alteration

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:

Once-through cooling system

Closed circuit wet cooling system
Closed circuit dry 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:

Decline of maximum through-screen design intake velocity to 0.5 ft./s

30

If there are endangered, threatened, or other protected species or if there are

fisheries inside the hydraulic zone of influence of the intake, decline of
impingement and entrainment of fish and shellfish by the implementation of
equipment such as barrier nets, fine mesh screens, fish handling and return systems,
and aquatic filter barrier systems. Instances of operational measures to cut
impingement and entrainment include seasonal closures, if necessary, or declines in
flow or uninterrupted use of screens. Planning the location of the intake structure in
a dissimilar direction or further out into the water body might also decrease
impingement and entrainment.
Decline of intake flow to the levels:
For freshwater rivers or streams to a flow enough to uphold resource
use as well as biodiversity in the course of annual mean low flow
conditions
Intake flow must not interrupt the thermal stratification or turnover
arrangement of the source water for lakes or reservoirs
Fall of intake flow to 1% of the tidal excursion volume for estuaries
or tidal rivers

4.2.5 EHS guidelines for electric power transmission and

distribution
Environmental issues during the construction phase of power transmission and distribution
projects include the following:

Terrestrial habitat alteration

Aquatic habitat alteration

Electric and magnetic fields

Hazardous materials

Terrestrial habitat alteration

The construction and maintenance of transmission line rights of way may result in
disruption and alteration to terrestrial habitat. It may also cause forest fires and impact to
avian species.

31

Construction of right of way

It may transform habitats depending on the topographic situation, features of existing
vegetation and height of transmission lines. These activities may result in loss of wildlife
habitat, fragmentation of forest habitat, auditory and visual disturbance due to machinery
presence, towers and other equipment.
Some recommendations to prevent impact to terrestrial habitat because of construction of
right of way include following:

Fixing of transmission lines overhead existing vegetation to escape land clearing.

Invasive species should be removed during routine maintenance.
Construction activities should be avoided during breeding and other sensitive
seasons.
Disturbed areas should be re-introduced with plantation of native plants.

Right of way maintenance

Within the right of way, regular maintenance is necessary to escape disruption to overhead
power lines and towers. Unchecked growth of tall trees and accumulation of vegetation
may result in numerous impacts like burst of forest and brush fires, interference with
critical grounding equipment and power outages through contact of branches and trees etc.
Regular maintenance may disrupt wildlife and their habitats.
Some recommendations to prevent impact to terrestrial habitat because right of way
maintenance include following:

Integrated vegetation management approach should be adopted, tall growing trees

should be removed and low growing grasses and shrubs should be promoted.
Native plants should be planted and invasive species should be discouraged.
Clearing should be avoided in riparian areas.
Activities should be scheduled in a way that it avoids the breeding and other
sensitive seasons.

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:

Right of way vegetation should be monitored on routine basis.

Eliminating blow down and other high-hazard fuel accumulations.

32

Slashing, thinning and other preferred activities should be performed to avoid

forest fire.
Controlled burning should be performed under burning regulations and must be
monitored by a fire watcher.
Fire resistant species should be promoted.
Fuel break network should be established.

Avian and Bat collisions and electrocutions

The height of transmission towers and distribution poles may cause fatal risk to birds and
bats through collisions and electrocutions. Avian collisions can occur in large numbers if transmission
towers and distribution poles are located within daily flyways or migration corridors.
Some recommendations to prevent Avian and Bat collisions and electrocutions include the
following:

Transmission corridors should be aligned to avoid critical habitats.

Upholding 1.5 meter spacing between energized components and grounded
hardware if spacing is not possible, energized parts and hardware should be
wrapped.
In sensitive areas, underground transmission and distribution lines should be
installed.
Visibility enhancement objects should be installed like diverters, bird deterrents,
and marker balls.

Aquatic habitat alteration

Power transmission and distribution lines might need creation of corridors crossing aquatic
habitats that may interrupt watercourses and wetlands, and involve the elimination of
riparian vegetation.
Some recommendations to prevent Aquatic habitat alteration include the following:

Maintaining fish access when road crossings of watercourses are inescapable by

developing open-bottom culverts, clear span bridges and other methods.
Reducing clearing and disruption to riparian vegetation.

Marine habitat alteration

Transmission across ocean may need use of submarine transmission cables on the ocean
floor. Issues related to marine habitat alteration include coral reefs, disturbance to intertidal
vegetation, and marine life, including marine mammals.
33

Some recommendations to prevent marine habitat alteration include the following:

Burying submarine cables when traversing sensitive intertidal habitat.

Cable laying path should be monitored for existence of marine mammals.
To avoid critical marine habitats and coral reefs, cable routes and shore access
should be located and sited.
In the course of calving periods, fish and marine mammals breeding periods and
spawning seasons, laying submarine cable should be avoided.

4.2.6 Principles for responsible investment

The UN Principles for Responsible Investment is one of the prominent corporate
responsibility instruments developed by the financial sector. The ambition of PRI is to
increase the positive contribution of the private sector to economic, social and environment
progress with a view to attaining sustainable development.
The PRI is a joint initiative of the UN Global Compact and UN Environment Program
Finance Initiative with purpose to incorporate ESG issues into investment decision-making
and ownership practices. The UN PRI is founded on the premise that institutional investors
and asset managers have a responsibility to act in the best long-term interests of their
investors and therefore, essential to give consideration to how environmental, social, and
governance (ESG) issues can disturb the performance of investment portfolios. By
providing a structure for the incorporation of responsible business conduct into investment
tactics, the PRI contributes to the promotion of ESG objectives within the financial sector.
The PRI is a set of six principles, which require institution investors to:

Integrate ESG issues into investment analysis and decision-making processes

Be active owners and integrate ESG issues into ownership policies and practices
Seek appropriate disclosure on ESG issues by the entities in which they invest
Promote acceptance and execution of the principles within the investment industry
Work together to improve their efficiency in applying the principles
Report on their actions and development towards implementing the principles

34

4.3 Parameter: Operational

Biodiversity practices by sector peers to gain competitive
advantage
Power industry is now considering biodiversity conservation as important part of decision
and directly integrating them into their operations. Industries are now realizing that
biodiversity conservation is now not only a legal requirement but more of gaining
strategic, operational, reputational and financial excellence. By integrating biodiversity as
internal part of business, companies are getting competitive advantage. Unlike earlier there
is a huge change in costumer buying pattern. Now they are more conscious about buying
environment friendly products. Consumer has developed a concern towards eco-labeled
and certified products. Following biodiversity conservation practices enables companies to
earn reputation and consumer retention which can be redeemed to increase market value of
the company.
The leading power companies across the world are now utterly engaged in biodiversity
conservation practices. The following are the some practices developed by top leading
companies. The companies are selected on basis of their market value.

4.3.1 Biodiversity conservation practices by leading power

companies
Duke energy, U.S
Market Value- 55.4 Billion
Duke Energy, headquartered in Charlotte, North Carolina, is the largest electric power
holding company in the United States. It was founded in 1904 and deals with generation,
transmission and distribution of electricity. Duke generates electricity through solar farms,
wind farms, oil and gas fired, hydroelectric, coal fired, nuclear and green (biomass fired).
It has nearly 52,700 megawatts of generating capacity in the Carolinas, the Midwest and
Florida. Duke has 7.2 million of customer base.

Biodiversity Practices

Island habitat program- This program is sponsored by the N.C. Wildlife

Federation and Duke Energy to protect river and lake islands from litters and
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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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agreement with the government of Peru, is assisting in efforts to build up the

countrys national system of protected areas through numerous training and
monitoring programs.

GDF Suez, France

Market value- 49.5 billion
GDF Suez founded in July 2008, is now known as Engie. It was French company engaged
in electricity generation and distribution, Natural gas production, sale and distribution.
GDF generates electricity through thermal power, nuclear power, combined heat and
power, wind farms, hydroelectric and biomass. GDF is one of the biggest non-residential
retail energy suppliers in the United States. GDF is a merger of Gaz de France and Suez.

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

Committed to protect biodiversity by ensuring their operations in proper manner.

They always try to enhance the natural value of the area for the benefit of the
environment and local communities.
Working with the Worcestershire Wildlife Trust to enhance the condition of local
species. National Grid has attracted the local farmer to help to restore key habitats
through sustainable agricultural and grazing techniques for his long-horned cattle.
Partnership with the Humberside Industrial Nature Conservation Association
(HINCA) to accomplish essential vegetation and develop a new woodland habitat
for animals and plants on the Humber Estuary.
Restoring hedgerows to establish important corridors of habitat for wildlife and
Putting up the boxes to encourage birds such as long tailed-tits and tawny owls, and
working with Butterfly Conservation to reserve a habitat for the rare brown
hairstreak butterfly.

Next era energy, US

Market value- 46.9 billion
Next Era Energy, Inc. is a biggest generator of renewable energy from the wind and sun in
the United States. It is a leading clean energy company with revenues of more than $15.3
billion and more than 41,000 megawatts of generating capacity. Next Era Energy generates
clean, emissions-free electricity through wind and solar farms from eight commercial
nuclear power units in Florida, New Hampshire, Iowa and Wisconsin.

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.

Set a target to no net loss of biodiversity by 2030.

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

Committed to promote avian protection, wildlife awareness, habitat conservation

and biodiversity.
Protecting species and habitats on their operational sites.
Cove point beach restoration- With cooperation of different groups, Dominion
helped to rebuild a buffer zone using native grasses and plants.
Roanoke River fish restoration- Dominion works closely with federal and state
agencies to assess and implement programs designed to support the fish
populations.
Clover open space easement- Company has aligned with the Virginia Department
of Game and Inland Fisheries to set aside about 400 acres of land neighboring the
station. The area is mutually managed to guard its value as a conservation site for
fish and wildlife and wetlands habitat.
Lake Gaston waterfowl management area- Dominion has secured a 114-acre site
in the northwestern section of Lake Gaston, N.C., as a migratory waterfowl area by
adjusting the lakes water level, and planting the area with vegetation and
controlling invasive species. The company has developed this wetland area in
partnership with the Virginia Department of Game and Inland Fisheries, Ducks
Unlimited and the North Carolina Wildlife Resources Commission, the U.S. Fish
and Wildlife Service.
Avian and wildlife protection- This program is widely regarded as one of the
industrys best. The company has acknowledged with several National
Conservation Service Awards from the U.S. Fish and Wildlife Service in efforts to
protect birds from adverse power line impacts. Now company is expanding their
protection areas.
Wildlife preservation- Company works with the Pennsylvania Game Commission
and the Keystone Elk Country Alliance to help create safe havens and grazing areas
for the elk and deer, which has caused in a tripling of the herds.
Rare plant protection- Company is a supporter of Natural Heritage Program of
the Virginia Department of Conservation & Recreation. Motive of this program
was to preserve the states biodiversity through inventory, ecosystem protection
and stewardship. Dominion has formed a team with VDCR to conduct surveys of
Threatened and Endangered (T&E) plants and other rare plants.
Land conservation- Dominion has donated 477 acres of unique ecological habitat
called Bear Rocks to The Nature Conservancy of West Virginia. This land will be
used for conservation purpose.

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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

Migra program- Iberdrola is engaged in generating bird friendly energy. The

focus of this project is to protect birdlife by expanding knowledge of migratory and
bird breeding habits.
Iberdrola is integrating biodiversity into their environmental management system.
Iberdrola is setting goals, standards for the control, indicators, audit and monitoring
for biodiversity.
Avoiding building any infrastructure to a place of high biodiversity value.
Protecting habitats and species through the implementation of affirmative
conservation management and examination of sites in order to obtain a positive net
balance with respect to the environment.
Iberdrola has implemented biodiversity policy which is approved by the board of
directors.

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.

4.4 Parameter: Strategic

Requirements of global conventions signed by country
As pointed earlier, India is considered as a biodiversity rich country but in last decade there
is massive 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. So in order to prevent loss of species and conserve the
biodiversity, India has signed a number of international agreements with other countries;
these agreements are formally known as conventions. The country is implementing these
conventions to the whole of India. Businesses are constantly being asked to implement
these conventions into their operations.
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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:

Convention on biological diversity

Place of adoption: Rio de Janeiro
Date of document: 05 June 1992
Entry into force: 29 December 1993

Depository: UN United Nations

Field of application: Global

Convention on biological diversity is a multinational agreement concerned with protection

of biological diversity worldwide. Intergovernmental platform on biodiversity and
ecosystem acts as a working body of CBD.
The objective of CBD is to develop national strategies for the conservation and sustainable
use of biological diversity. CBD is the main international instrument for addressing
biodiversity issues.

44

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

The convention places less importance on a traditional

regulatory approach. Its provisions are conveyed as
overall aims and policies, with specific action for
application to be settled in accordance with the
conditions and abilities of parties, instead of as rigid
and precise obligations. The Convention does not fix
any concrete targets, there are no annexes, no lists
concerning to sites or protected species, so the obligation of defining how most of its
provisions are to be applied at the national level remains with the individual Parties
themselves.
The following map represents the convention on biological diversity and Cartagena
protocol on biosafety parties around the world.

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CBD parties

CBD & CPB parties

Neither

Plates 2: Parties of CBD and CPB

(Source: CBD Webpage)

Cartagena protocol on biosafety to the convention on

biological diversity
Date of document: 29 January 2000
Entry into force: 11 September 2003

Depository: UN United Nations

Field of application: Global

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
46

biological diversity. After many negotiations, protocol, known as Cartagena protocol on

biosafety was finalized and adopted at conference of the parties.
This protocol creates an enabling environment to derive maximum output from the
potential that biotechnology has to offer but also to minimize the risk to the environment
and human. The objective of this protocol is to ensure an adequate level of protection
related to safe transfer, handling and use of living modified organisms causing from
modern biotechnology that may have adverse impact on the conservation and sustainable
use of biological diversity.

Nagoya - Kuala Lumpur supplementary protocol on liability

and redress to the Cartagena protocol on biosafety
Place of adoption: Nagoya
Date of document: 15 October 2010

Depository: UN United Nations

Field of application: Global

This protocol is enabled by Cartagena protocol on biosafety. The problem of elaborating

rules on accountability and redress for damage causing from living modified organisms
was under attention globally both after and before the adoption of the protocol on
biosafety. Articles 27 of the protocol explain the stage for the establishment of process
towards completion of issue within a definite timeframe. Article 27 of the protocol
required the COP to adopt a process with respect to explanation of international procedures
and rules in the field of liability and redress for damage resulting from transboundary
movements of living modified organisms.
Therefore, conference of parties established ad hoc open-ended working groups on liability
and redress in the context of the Cartagena protocol on biosafety to elaborate options
analyze issues and present global rules and procedures on the subject. After many
negotiations Nagoya - Kuala Lumpur supplementary protocol on liability and redress to the
Cartagena protocol on biosafety was adopted at the fifth meeting of the Conference of the
Parties serving.
The main objective of this protocol is to facilitate to the conservation and sustainable use
of biological diversity. It also takes care of risk to the human, by providing international
rules and procedures in the field of liability and redress relating to living modified
organisms.

47

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
Place of adoption: Nagoya
Date of document: 29 October 2010
Entry into force: 12 October 2014

Depository: UN United Nations

Field of application: Global

Convention on biological diversity has three objectives- conservation of biological

diversity, the sustainable use of its components and the fair and equitable sharing of
benefits arising from the utilization of genetic resources.
To put more focus on third objective of CBD, the World Summit on sustainable
development called for the negotiation of a global regime, to encourage fair and equitable
sharing of benefits arising from the utilization of genetic resources. After a long period of
negotiation, Nagoya protocol on access to genetic resources and the fair and equitable
sharing of benefits arising from their utilization to the convention on biological diversity
was adopted at the tenth meeting of the conference of the parties. This protocol provides
the strong basis for greater legal certainty and clarity for both providers and users of
genetic resources.

Convention on the conservation of migratory species of wild

animals
Place of adoption: Bonn
Date of document: 23 June 1979
Entry into force: 01 November 1983

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:

(a)- Threatened migratory species to be listed in appendix I

(b)- Migratory species to be subject to agreements listed in appendix II
(c)- Global agreements should deal with those aspects of the conservation and
management of the migratory species concerned which assists to achieve the object
of protection
(d)- ) A scientific body to be established to provide guidance on scientific matters
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(e)- A secretariat to be established

Memorandum of Understanding concerning conservation

measures for the Siberian Crane
Place of adoption:

Ramsar

Date of document: 13 December 1998

Entry into force: 01 January 1999

Depository: CMS Convention on the

conservation of migratory species
Field of application: Regional/restricted

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.

Memorandum of understanding concerning conservation and

management of marine turtles and their habitats of the Indian
Ocean and South East Asia
Place of adoption:

Manila

Date of document: 01 September 2001

Entry into force: 01 September 2001

Depository: CMS Convention on the

Conservation of Migratory Species
Field of application: Regional/restricted

The objective of this memorandum of understanding is to conserve, protect, replenish and

recover marine turtles and their habitat. It should be based on scientific evidence and
socio-economic, environmental and cultural characteristics of signatory states should also
take into consideration.

49

Memorandum of Understanding on the conservation and

management of Dugongs (Dugong dugon) and their habitats
throughout their range
Place of adoption:

Bonn

Date of document: 31 October 2007

Entry into force: 31 October 2007

Depository: CMS Convention on the

Conservation of Migratory Species
Field of application: Regional/restricted

The objective of this memorandum of understanding is conservation and management of

Dugongs (Dugong dugon) and their habitats throughout their range. Under this MOU,
parties agreed to co-operate each other to restore and maintain a favorable conservation
status for dugongs and the habitats on which they depend. Parties also agree to review and
revise their legislations relevant to the conservation and management of dugongs and their
habitats.

United Nations convention on the law of the sea

Place of adoption: Montego Bay
Date of document: 10 December 1982
Entry into force: 16 November 1994

Depository: UN United Nations

Field of application: Global

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.

Convention on the conservation of Antarctic marine living

resources
Place of adoption: Canberra
Date of document: 20 May 1980
Entry into force: 07 April 1982

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
50

living resources is primary concern of this convention. A commission for the conservation
of Antarctica marine living resources established with the following functions:

To help investigation into and comprehensive studies of Antarctic marine living

resources and the Antarctic marine ecosystems.
To collect data on the status of and fluctuations in population of Antarctic marine
living resources, and on elements disturbing the distribution, richness and yield of
harvested species and dependent or related species or populations.
To disseminate, analyze and publish the information referred to in subparagraphs.
To recognize conservation need and study the efficacy of conservation measures.
To formulate, implement and review conservation measures on the basis of the best
available scientific evidence.
To carry out any other activities necessary to fulfill the objective of convention.

Convention on wetlands of
especially as waterfowl habitat
Place of adoption:

Ramsar

Date of document: 02 February 1971

Entry into force: 21 December 1975

international

importance

Depository: UNESCO UN Educational,

Scientific and Cultural Org.
Field of application: Global

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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International convention for the regulation of Whaling

Place of adoption: Washington D.C.
Date of document: 02 December 1946
Entry into force: 10 November 1948

Depository: United States of America

Field of application: Global

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.

Protocol to the international convention for the regulation of

Whaling
Place of adoption: Washington D.C.
Date of document: 19 November 1956
Entry into force: 04 May 1959

Depository: United States of America

Field of application: Global

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

52

recommendations concerning the environment and development. The wildlife protection is

one of the principles of this declaration.

5. Measuring impacts and actions on biodiversity

The integration of biodiversity in business is not important, what important is to measure
company-wide performance in regard to biodiversity, what is specific projects impact on
biodiversity. There is a need of formalized system to measure and monitor the impact of
company operation on biodiversity. It will allow companies to understand, minimize and
avoid impacts, monitor and revise management practices more easily.
Impacts on biodiversity can be measured by using indicators. Indicators can be used to
assess many things, from pressures on biodiversity to changes in the state of biodiversity to
how a company has reacted to biodiversity concerns. These indicators may vary from
project to project. A company can identify indicators for site-level and company-level
performance. These indicators should focus on those elements that may have the utmost
impacts on biodiversity and are most critical for risk management and stakeholder insights,
grounded on the outcomes of ESIA and stakeholder engagement processes.

5.1 Methodology for developing biodiversity indicators

There are total of nine steps for developing site-level and company-level biodiversity
indicators.
Step 1: Desktop assessment of biodiversity values and potential biodiversity impacts
An assessment of the biodiversity value of the site and linked area and any potential
biodiversity impacts is the first step in developing indicators, to produce an assessment and
a list of relevant potential impacts on biodiversity.
Step 2: Establishing a baseline
Preparing a baseline offers a useful record against which any changes in biodiversity status
can be compared.

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Step 3: Focusing on significant impacts

Here list of full indicators must be filtered and
relevant indicators should be picked, those that are
anticipated to be important in the context of the
operation and the surrounding environment.
Step 4: Generating a list of potential site-level
indicators
Each significant impact on biodiversity recognized
in the preceding step may produce one or more
potential indicators.
Step 5: Choosing site-level indicators
The list of potential indicators identified in step 4
must now be narrowed to a smaller number of the
most suitable indicators. Indicators should be
chosen based on appropriateness and capability to
monitor the results of modifying activities.
Step 6: Generating company-level indicators
Company-level indicators may be resulting by the
aggregation of site-level indicators, provided they
have the same unit of measurement, relate to the
same biodiversity impact and improve value at the
company level.
Step 7: Monitoring of impacts and conservation
actions

Figure 7: Methodology for Developing

Biodiversity Indicators

Monitoring is performed to check that goals and

objectives have been accomplished, to recognize new problems and potential impacts and
as a feedback mechanism to amend and develop conservation practices. This stage can also
confirm that the right indicators have been selected to measure actions and evaluate
objectives.
Step 8: Reporting performance
Communicating and reporting performance to stakeholders is an important part of
confirming understanding and transparency of impacts and actions taken to address those
impacts.
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Step 9: Reviewing and modifying actions

Feedback loop should be established to measure the success of actions and indicators put
in place. If reporting specifies that performance is not in track with targets, then site- and
company-level activities should be altered.

6. Framework for integrating biodiversity into the

site selection process
How can companies integrate biodiversity into their decisions about where they should
work?, is a very important and challenging decision for the company. Its a responsibility
of companies to conserve biodiversity and avoid contact with those areas having high
biodiversity value or marked as place of threatened and endangered species. For this
purpose companies prefer to choose that area where they produce zero or very minimal
biodiversity impact.
A company requires a decision-support framework that can allow it to identify and
prioritize the threats and benefits of functioning in a certain area and guide picks about
whether to pursue specific business opportunities.
The following diagram will help companies to take decisions about site selection for
operations.

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Figure 8: Decision-Support Framework for Site Selection

7. Management of biodiversity practices in

business
Only decision for integrating biodiversity in business is not important but how these
biodiversity practices or activities would be managed is more important. There should be
any framework or structure for better implementation, management and success of the
biodiversity practices.

7.1 PDCA cycle

The company can adopt plan, do, check and act cycle for the better management and result
of companys objectives of implementing biodiversity.
Plan: Establish the aims and procedures essential to deliver results in accordance with
requirements.
Do: Implement the processes
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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.

Figure 9: PDCA Cycle

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.

8.2 Internal audits

The organization should conduct internal audits at planned intervals to provide information
on whether practices are effectively implemented and maintained. Internal audits provide
an independent assurance to the management that biodiversity management is working
properly. It ensures to the management that all regulations and standards are compiled as
per expectations. The process of internal auditing is as follows:
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Figure 10: Internal Audit Program

8.3 Management reviews

The top management of organization should play a pro-active role for proper functioning
of biodiversity in business. The management should review the entire process to ensure
that there are no loopholes at all in the operations. Top management should feel
accountable for following activities:

Analyzing risks and opportunities.

Follow-up actions from previous management reviews
Extent to which biodiversity objectives have been achieved
Identify the non-conformities and corrective actions for the same
Scrutinize the audit results
Communication(s) from external interested parties
The biodiversity performance of the organization
Status of corrective and preventive actions
Recommendations for improvement

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
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(2001). Memorandum of understanding concerning conservation and management of
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(2007). Memorandum of Understanding on the conservation and management of Dugongs
(Dugong dugon) and their habitats throughout their range. Bonn: CMS.
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(2014). Corporate responsibility report. Atlanta: Southern Company.

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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.

Biosphere: It is known as the zone of life on earth occupied by living organisms.

Ecosphere: The biosphere of the earth and other planet, mainly when interaction between
non-living and living components is emphasized.
Layers of atmosphere: Earths atmosphere has six layered structure. These layers are
stratosphere, thermosphere, mesosphere, troposphere, exosphere, and ionosphere.
Heterotrophic organism: All protozoans, animals, fungi, and most bacteria are
heterotrophs. They cannot produce its own food and depends for food and energy by taking
in organic substance, like animal or plant matter.
Natural resources management: It is an interdisciplinary ground of study that deliberates
the economic, physical, social and biological aspect of handling natural resources like
water, air, timber, animals and land. NRM is best utilization and conservation of natural
resources for sake of future generations.
Habitat Conservation: It is land management practices that look for to protect, conserve
and restore the habitat areas for animals and plants.
Wilderness: An area of land that is uninhabited, uncultivated and inhospitable.

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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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