INTEGRAL MANAGEMENT OF BIODIVERSITY IN ISA ENERGY TRANSMISSION BUSINESS GROUP
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INTEGRAL MANAGEMENT OF BIODIVERSITY IN ISA ENERGY TRANSMISSION BUSINESS GROUP Connections with sustainable value © TODOS LOS DERECHOS RESERVADOS POR INTERCONEXIÓN ELÉCTRICA S.A. E.S.P.
Integral Management of Biodiversity – IMB – Our Manifesto • If we recognize that our planet is fragile and needs our care, there is a connection • If we understand that our actions, no matter how small, have an impact, there is a connection • If we realize that in each of us lies the change that we want for the world, there is a connection • Knowing and protecting the diversity of ecosystems each country where we are present is a privilege that goes hand in hand with the nature of our daily work © TODOS LOS DERECHOS RESERVADOS POR INTERCONEXIÓN ELÉCTRICA S.A. E.S.P. 2
Focus of our Integral Management of Biodiversity Designs that minimize the impacts on the environment and biodiversity ISA and its subsidiaries have a clear and determined intention towards the conservation of biodiversity, through legal and voluntary IMB actions directed to manage the possible impacts Environmental Portfolio of on biodiversity during the entire assets life cycle, as Corporate compensations well as to contribute to its conservation. Policy “Jaguar Connection” Program © TODOS LOS DERECHOS RESERVADOS POR INTERCONEXIÓN ELÉCTRICA S.A. E.S.P. 3
PROCESS OF BIODIVERSITY MANAGEMENT As part of the strategies for the management of biodiversity, we implement responsible actions in favor of the environment, avoiding the affectation of sensitive species and ecosystems, mitigating and compensating the impacts that our activities cause on ecosystems and biodiversity. Therefore, we combine efforts and create strategic inter-institutional alliances with environmental authorities and key actors, allowing us to explore and motivate synergies aimed at the conservation and protection of biodiversity in accordance with national and regional priorities. © TODOS LOS DERECHOS RESERVADOS POR INTERCONEXIÓN ELÉCTRICA S.A. E.S.P. 4
Biodiversity Management in Assets Life Cycle In ISA and its companies, biodiversity management is a material issue and therefore is an integral part of environmental management in the life cycle of the asset. © TODOS LOS DERECHOS RESERVADOS POR INTERCONEXIÓN ELÉCTRICA S.A. E.S.P. 5
Internal Procedures for Biodiversity Management MANUAL FOR LEGAL ENVIRONMENTAL SIPOC MANAGEMENT IN ASSETS LIFE CYCLE It is a tool in tabular format to characterize the process of execution of environmental Its objective is to establish the regulatory management in the projects, from the requirements and voluntary commitments, identification of key elements in the domains of such as the activities that must be fulfilled to suppliers - inputs - process - output – customers. carry out environmental legal management during the life cycle of the projects, in order to ensure the obtaining of licenses, permits This tool contains the instructions for the or corresponding environmental development of the necessary processes in the authorizations. environmental management of the projects. These processes include the preparation of a work plan, the presentation of the Evironmental This manual applies to the activities of Management Plans (PMA) including control and supply, design, construction, operation and monitoring, the making of ICAs reports and the maintenance and decommissioning and elaboration of the social management plan. modification of electrical infrastructure © TODOS LOS DERECHOS RESERVADOS POR INTERCONEXIÓN ELÉCTRICA S.A. E.S.P. 6
Tools for Mitigation Hierarchy ARPEX and ARA In the planning stage of the projects, biodiversity-restricted areas included in Restrictions Analysis of the Expansion Plan and Analysis the ARPEX are identified. The ARPEX aims to contribute to the selection and of Environmental Restrictions prioritization of the offerings of the group business portfolio, through the analysis of environmental, social and property issues of future projects, using the technology of GIS, in order to generate mitigation actions; and it is performed for all projects of the Expansion Plan of the countries where ISA is DAA present. Environmental Diagnosis of Alternatives During the ARA, a preliminary route of a project is selected for the preparation of an offer, considering environmental, engineering and property issues. These processes contribute to the prioritization of those projects that minimize impacts on biodiversity. EIA and PMA Environmental Impact Assesment and Environmental Management Plan © TODOS LOS DERECHOS RESERVADOS POR INTERCONEXIÓN ELÉCTRICA S.A. E.S.P. 7
PROCESS OF BIODIVERSITY MANAGEMENT Mitigation Hierarchy ARPEX and ARA The purpose of the DAA is to evaluate and compare the different options of the Restrictions Analysis of the devolopment of a project presented by the company. Expansion Plan and Analysis of Environmental Restrictions These options must take into account the geographical environment, the biotic, abiotic and socioeconomic characteristics, the comparative analysis of the effects and risks of the project; as well as the possible solutions and control and mitigation measures for each of the alternatives. DAA Environmental Diagnosis of Alternatives For the physical-biotic characterization of the area of influence of the project, databases of threatened species of national and regional order are consulted such as Red Books of the IUCN and checklist of CITES species EIA and PMA The above provides the elements required to select the alternative that optimize and Environmental Impact rationalize the use of natural resources and avoid or minimize the risks, effects and Assesment and Environmental negative impacts that may be generated. Management Plan © TODOS LOS DERECHOS RESERVADOS POR INTERCONEXIÓN ELÉCTRICA S.A. E.S.P. 8
PROCESS OF BIODIVERSITY MANAGEMENT Mitigation Hierarchy Once the environmental authority selects the best alternative for the project, the EIA is elaborated. ISA and it companies have manuals, procedures and instruments to ARPEX and ARA manage the impacts identified in the EIA, which is the basic instrument for decision Restrictions Analysis of the making in projects that require an environmental license and is publicly available for Expansion Plan and Analysis of Environmental Restrictions anyone. In general, this study includes: 1. Project location, infrastructure and activities. 2. Characterization of abiotic, biotic and socioeconomic media of the ifluence area. 3. Demand of natural resources by the project DAA 4. Environmental impacts and risk analysis. Environmental Diagnosis of 5. Economic evaluation of the positive and negative impacts of the project. Alternatives 6. PMA and its implementation costs. The PMA describes the activities aimed at preventing, mitigating, correcting and compensating environmental and social effects of the project. 7. Monitoring programs for abiotic, biotic and socioeconomic media (ICAs). These EIA and PMA monitoring are performed periodically and presented to the environmental Environmental Impact authority for its aproval. Assesment and Environmental Management Plan 8. Contingency plan for the construction and operation of the project. 9. Biodiversity offset plan with the objective of not having a net loss of biodiversity © TODOS LOS DERECHOS RESERVADOS POR INTERCONEXIÓN ELÉCTRICA S.A. E.S.P. 9
Mitigation of impacts on biodiversity Forestry Optimization – Business Case ISA and its companies incorporate the concept of Ecoefficiency and minimization of environmental impacts and risks, especially on biodiversity. We established indicators to reduce the intervention on the vegetation cover through the whole lifecycle of the assets. After calculating the baseline and the achievements of the initiatives we established the target to reduce by 10% the area of plant cover cleared for the construction of projects. • Lower costs in the lifecycle of • Manages business risks and • Improves the opportunity at the entrance of the asset interest groups the projects • Saving time in the process • It contributes to social • Improves quality • Avoid fines, penalties or acceptance by community • Increase the use of assets (Availability, usage compensation rate) • Applies to financial assistance • Improving the effectiveness of the operation from the state grant, bond, and maintenance incentive for investment • Decreases impact or contamination • Decreasing applied tax • Minimizes waste and consumption of resources • Early warning of risks and energy • Reputation • Friendly products with the environment • Open green market or qualified © TODOS LOS DERECHOS RESERVADOS POR INTERCONEXIÓN ELÉCTRICA S.A. E.S.P. 10
APPLICATION OF THE MITIGATION HIERARCHY Regulation We abide by and respect the legislation established in every country in which we operate, as well as all relevant covenants, agreements and treaties and voluntary commitments acquired by ISA and its companies. These regulations establish the procedure and mechanisms to obtain No Net Loss or Net Improvement. In addition, we go further with the protection of biodiversity with our voluntary program “Jaguar Connection” COLOMBIA PERU CHILE BRAZIL According to Supreme Federal Decree Decree No. 40 of 2012, The Resolution 0256 of 4,340/2002 establishes The General Law of the compensation measures can 2018 approves de update of that for purposes of the Environment (Law N° only be applied when it is the Manual of Compensation 28611), in its article 6, environmental compensation not possible to mitigate or of the Biotic Component, establishes that (defined in Law 9,985 / repair a significant impact. which allows us to design environmental management 2000), environmental Biodiversity compensation measures to manage the has as priority objectives to authority will establish the requires the execution of negative impacts of a prevent, monitor and avoid degree of impact from the environmental degradation. measurable actions that project: preventing EIA made in the process of When it is not possible to offset residual impacts of a environmental impacts, environmental licensing. It eliminate the causes that project on biodiversity (after minimizing and correcting considers the negative, non- generate it, the appropriate having established mitigation those that can not be mitigable impacts and mitigation, recovery, and repair measures), aimed avoided and, ultimately, restoration or compensation possible risks that may at producing an alternative carrying out the necessary measures are adopted. compromise the quality of and equivalent positive compensation measures. life of a region or cause effect to obtain no net loss damage to natural resources or a net gain of biodiversity © TODOS LOS DERECHOS RESERVADOS POR INTERCONEXIÓN ELÉCTRICA S.A. E.S.P. 11
Avoid possible impact on biodiversity (Articulation Integral Management of engineering and Biodiversity, in the framework of environment) high-voltage electric power transmission Integral Management of Biodiversity Offset portfolio with integral and long-term Synergies aimed at the vision Inter-institutional strategic alliances conservation and protection of biodiversity © TODOS LOS DERECHOS RESERVADOS POR INTERCONEXIÓN ELÉCTRICA S.A. E.S.P. 12
IMB, in the framework of high-voltage electric power transmission Important strategic alliances in Colombia • Prioritize compensations in National Natural Parks National Natural Parks • Exchange of information • Training Regional System of Protected • Identification of potential compensation areas Areas in the Caribean Terrasos - Company dedicated • Structuring of the first Tropical Dry Forest Habitat Bank to the implementation of compensation and environmental investment strategies © TODOS LOS DERECHOS RESERVADOS POR INTERCONEXIÓN ELÉCTRICA S.A. E.S.P. 13
Offset Portfolio - Colombian Case • Strategy aimed at positively impacting and with guarantees of permanence over time, hand in hand with communities and regions. These compensations are close to giving the order to start the contract for the preparation and structuring of a portfolio that will be part of the basic inputs for the specific plans of each project. Conservation of Identification of protected areas areas Compensation strategies Offset Portfolio Protection of biodiversity 10.872 ha Payments for environmental services Potentialize conservation In compensation for / restoration initiatives in the intervention of Habitat banks coordination with 1,273 ha of natural communities, authorities Identification of coverages and other stakeholders efficient and “PeaceForests” sustainable compensation mechanisms over time Acquisition of properties © TODOS LOS DERECHOS RESERVADOS POR INTERCONEXIÓN ELÉCTRICA S.A. E.S.P. 14
AREA (HA) ACTION STATE OF PROGRESS TIME INTERCOLOMBIA Maintenance carried out in 2016 and 38.6 Plantation Finished 2017 Acquisition of properties of The properties were given to the 158 strategic importance for Finished Municipality of Yacopí in 2017 conservation Voluntary protection for GHG 1230 Finished. Protection of tropical humid forest with degraded land by mining and livestock 2017 compensation Pending Biodiversity Next to give order to start the contract by the environmental authority for the preparation 10872 2022 Compensation and structuring of a portfolio REP Pending approval by the national authority. In the initial permit, 200 ha of compensation Plantation for biodiversity were envisaged, however the actual impact was 30 ha thanks to the optimization of Start planting at the end of 2018 and do 30 compensation of MAMO vegetation cutting. Most projects in Peru cross through desert areas where there was no annual monitoring for 30 years project vegetation damage and compensation activities did not have to be done. CTEEP Plantation for biodiversity 50.4 compensation of CTEEP and it Finished. These areas were delivered and closed by the competent environmental agency 2018 subsidiaries It will be monitored in accordance with Plantation for biodiversity 2 Monitoring stage SMA 32/2014 and it is expected to compensation of CTEEP address all indicators in up to 20 years INTERCHILE This compensation is due to forest intervention of the Polpaico project. The Encuentro- 2020 to complete the implementation 150 Reforestation Lagunas project has EIA but because it is located in the desert it has no impacts on the flora, and 10 years of monitoring fauna management is done, especially birds, using flight deviators The establishment is during the Voluntary planting of arboreal 290 Approximately 80% progress has been made in the rescue of succulents and shrub species construction phase of the project and and shrub species. © TODOS LOS DERECHOS RESERVADOS POR INTERCONEXIÓN ELÉCTRICA S.A. E.S.P. 15 the monitoring is for 10 years
Jaguar Connection is our voluntary sustainability program, a corporate initiative aimed at contributing to biodiversity conservation and climate change mitigation, by implementing forestry projects for reducing greenhouse gas emissions, in priority areas for the protection, recovery, connection of natural habitats and corridors of the Jaguar in Latin America. Jaguar Connection is the legacy of ISA and its companies for the planet and new generations, the way in which we reaffirm our commitment towards sustainability.
OUR ROL “Jaguar Connection” Program We create and lead the implementation of the Jaguar Connection program and provide the resources for its development. We ensure the sustainability of the Program and its permanent growth to increase coverage in the Jaguar Corridor. For the integral development of Jaguar Connection, we have the technical support of the South Pole Group and Panthera, two world leaders in climate change, sustainability and conservation of big cats.
OUR TECHNICAL ALLIES “Jaguar Connection” Program Develops projects and activities that contribute to mitigation and adaptation to climate change. It is a leader in the voluntary carbon bond market. In the last 7 years, it has sold more than 28 million carbon credits, many of them under the Verified Carbon Standard (VCS), the Climate, Communities and Biodiversity Standard (CCBS), and the Gold Standard (GS). Within the program our ally focuses on: Analyze the proposed projects and develop their carbon cycle. Issue carbon credits certified under standards. Commercialize the carbon credits of the program.
OUR TECHNICAL ALLIES “Jaguar Connection” Program Is the leading organization worldwide, which is dedicated exclusively to the conservation of the 38 existing species of big wild cats and their ecosystems, with focus on the largest and threatened, including the jaguar and the puma. Within the program our ally is responsible for: • Provide scientific information on identification of areas that serve as Jaguar Corridor • Perform the monitoring of biodiversity in the areas of the projects with emphasis on large vertebrates. • Accompany the implementation of good practices of coexistence and conflict management between humans and jaguars or pumas. • Evaluate the effectiveness of the conservation measures of the Jaguar and its associated biodiversity.
Mitigation of climate change Development of rural communities Conservation of biodiversity Ecosystemic services 20 ©Todos los derechos reservados por Interconexión Eléctrica S.A. E.S.P.
Advances and Contribution of the “Jaguar Connection” Program Mitigation of climate Ecosystemic services change • Emission reduction potential • Improvement of soil and water of 278,569.82 tCO2 2017 in conditions. Colombia Conservation of Development of rural biodiversity communities • Sensitization and • Protection of about 400 environmental education to hectares of forests and water communities. sources • Reduction of poverty and • Recovery of about 2,200 improvement of the quality hectares of degraded land Presence of ISA of life (improvement of • Contribution to the recovery of infrastructure, roads, health Jaguar Corridors the connectivity of the jaguar centers, among others). corridor. • Empowerment of women, • Protection of endemic species through the generation of employment. 21
Highlights of the “Jaguar Connection” Program • Sighting of endemic species and critically endangered species Paujil de pico azul (Crax alberti) Tití cabeciblanco (Saguinus oedipus) 22
Presence of the “Jaguar Connection” Program Mitigation of Climate 2018 in Latin America Change Mitigación del Stage I cambio of Conservation climático • COL - Cimitarra Biodiversity • COL - Tierralta Stage II • 2 in Colombia Ecosystemic Services • Chile • Perú • Brasil Development of rural communities 23
TARGETS “Jaguar Connection” Program TARTGET TARGET YEAR ADVANCES IN 2017 Three projects implemented in Two projects in implementation of the carbon technical cycle 2017 Colombia and one project for the purchase of carbon credits Three (3) projects implemented in Convocatory process, selection and prioritization of projects. 2018 Peru, Chile and Brazil Pre-selection of three projects in Latin America ISA and its Energy Transmission 2020 ISA, XM and INTERCOLOMBIA are carbon neutral since 2016. companies will be Carbon Neutral Offset of 100,000 tCO2 2020 Offset of 5,161 tCO2e of 2016. 12 projects implemented 2020 Two projects in implementation of the carbon technical cycle Protection of about 400 ha of forests and water sources. 180,000 hectares of protected Recovery of about 2,200 ha of degraded land. Contribution to 2020 jaguar corridors the recovery of the connectivity of the jaguar corridor. Improvement of soil and water conditions.
Challenges of our Integral Management of Biodiversity • Continue with the articulation of engineering and the environment, seeking to avoid as much as possible the impact on biodiversity (designs that minimize interventions on natural resources and the environment) • Prevent, minimize and compensate the impacts on biodiversity during assets life cycle (implementation of good practices in the construction and operational stage) • Identify areas and compensation mechanisms that are more efficient and sustainable over time • Strengthen in a continuous manner the synergies with public and private entities • Involve and strengthen relationships with communities in the framework of compensation, generating great benefits for them • Advance in the development of the “Jaguar Connection” Program and achieve its autonomy and sustainability 25
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