Identifying, recognizing and preserving areas of importance for biodiversity is a core principle of modern conservation. Other Effective Area-Based Conservation Measures (OECMs) are geographically defined areas where pre-existing management and governance is achieving long-term outcomes for biodiversity outside of the protected area network. OECMs do not have to be managed primarily for biodiversity. They can include sites where biodiversity is being conserved through other objectives, such as management of watersheds, sustainable use of resources or the preservation of a community’s spiritual and cultural practices.

Countries are increasingly recognizing OECMs and protected areas in pursuit of Target 3 of the Global Biodiversity Framework, which calls for the expansion of area-based conservation (OECMs and protected areas) to reach at least 30% of land, waters and seas conserved by 2030. The increasing recognition of OECMs necessitates their consideration by businesses when identifying areas of importance for biodiversity and assessing whether their direct operations and supply chain areas are having negative or positive impacts. Businesses that recognize and support OECMs (along with protected areas) may realize a range of benefits, ranging from being able to demonstrate their commitment to environmental protection to improved operational resilience.

By acting to ensure that they do not undermine OECMs (or protected areas), both in direct operations and across supply chains, businesses can both avoid undermining Target 3 and reduce their exposure to biodiversity-related risks. These risks can include physical, transition and systemic risks, that could materialize as financial and operational consequences.  To avoid potential negative impacts from a company on OECMs (whether OECMs are in site footprints or a wider area of influence) business operations should support OECM governance and align with the OECM’s management plan, or equivalent.

In summary, businesses should:

• Assess levels of risk regarding potential harm to OECMs within their direct operations and supply chains.
• Align with the mitigation hierarchy by avoiding harm to OECMs in operational sites’ area of influence  and in supply chains, reducing and mitigating impacts where avoidance is impossible.
• Communicate to internal teams and suppliers that direct operations and sourcing locations within OECMs should operate in alignment with and support of the respective OECM’s governance and management structures including, where applicable, with the free, prior and informed consent of Indigenous Peoples and local communities.
• Implement nature and biodiversity strategies to manage their biodiversity risks, incorporating policies for direct operations and suppliers that recognize the importance of OECMs and acknowledge that industrial-scale activities are generally not compatible with OECMs.