LAND DEGRADATION: reduction or loss [….] of the biological or economic productivity and complexity of [….] cropland, or range, pasture, forest and woodlands resulting from land uses or from [….] human activities and habitation patterns, such as: (i) soil erosion caused by wind and/or water (ii) deterioration of the soil (physical, chemical and biological or economic properties) (iii) long-term loss of natural vegetation Reduction in the capacity of the land to provide ecosystem goods and services and assure its functions over a period of time for the beneficiaries of these. (FAO)

More than 25% of the world’s land area undergoing degradation in the last two decades DIFFERENT CAUSES … … DEPENDING ON LOCAL CONTEXTS Overexploitation for fuelwood 7% Overgrazing 35% Deforestation 30% Agricultural activities 28%

WP1: Analysis of CSR Policies WP2: Analysis of Investment Flows WP2: Analysis of Policy Environment G M : W o rk in g D e fi n it io n o f S L M Advocacy, Interaction with Companies, Investment Packages Sy n th es is R ep o rt D3 D4 D5 D7 D6 D8 D1 D2 PHASE 1 PHASE 2

13 • Companies: Screening of 40 largest mining companies and another 10 large mining companies that were known to publish sustainability reports • Screening based on corporate websites and financial reports • Identification of countries these companies operate in • Countries included in initial screening based on initial responses: • Africa (5): Botswana, DR Congo, Eritrea, Mozambique, Zambia • Asia (6): Cambodia, India, Indonesia, Malaysia, Philippines, Vietnam • Latin America (1): Peru • Limitations: • Size/ significance of country-level operations not taken into account at this stage • Not systematically checked availability of mine-level EIAs • Bias towards large companies in sustainability reporting • Quality of sustainability reports SCREENING OF MINING COMPANIES

Findings (objective 1) • Sustainability reporting has improved overall • But: – Poor quantitative data – Fragmented information on SLM – Highly aggregated information (not operation-specific) – Lack of transparency and comparability RECOMMENDATIONS:

• Survey mining MNCs + other stakeholders • Questions focussing on project finance • Follow-up interviews • Targeted discussions with practitioners (e.g. mining analysts at investment banks)

Findings (objective 2) • Inconclusive evidence that market values sustainable mining operations • Scarce project finance data (disclosure) • Difficult to isolate SLM from other risk factors RECOMMENDATIONS: