Increasing development pressures and escalating public concern about the resulting loss of biodiversity and ecosystem services, pose a strategic threat (and offer potential competitive advantage) to energy companies.
Companies face risks unless they demonstrate high standards with respect to the conservation of biodiversity and careful management of ecosystem services, they may face difficulties in the medium- to long-term in accessing resources in new sites, suffering competitive disadvantage relative to others with better practice. They may also lose revenues through incurring liabilities, damage to reputation and increased operating costs in the short term. This can compromise long-term shareholder value.
Conversely, best practice management of impacts on biodiversity can offer opportunities such as speed of obtaining consents and licenses or favoured partner status, increasing shareholder value and links directly to corporate commitments to operate responsibly.