Environment protection principle 2: assess and
manage environmental risks and impacts
This Good Practice
Note is for DFAT
staff, delivery
partners and
environment
specialists
involved in
delivering
Australia’s aid
program. It is one
of a series of notes
which explains the
principles of the
aid program’s
Environment
Protection Policy
and how they
should be
addressed. The
notes complement
the Operational
Procedures of the
Environment
Protection Policy.
This Good Practice
Note should be
read in conjunction
with the
Department of the
Environment
publication: Actions
on, or impacting
upon,
Commonwealth,
land and actions by
Commonwealth
agencies Significant
impact guidelines
1.2.
2.6 How to conduct a strategic
assessment
1. Why conduct a strategic assessment?
Much of the aid program is delivered in portfolios of activity or in programs
that fund multiple activities. These activities share similar environmental
risks, and many of the good practice management options (adapted for
local context) would also apply generally across a program.
The Department of the Environment, under the Environment Protection
and Biodiversity Conservation Act 1999 (EPBC Act), provides for strategic
assessments, which can be conducted by Australian government agencies
for large programs, important sectors or large geographic areas. A
strategic assessment can:

Help to meet requirements of the EPBC Act upfront in a large program

Avoid multiple small assessments by assessing the risks of a suite of
activities, and potentially avoid multiple referrals

Significantly reduce administration costs

Assess cumulative impacts and provide specific risk management and
planning guidance for programs and sectors

Identify regulatory and capacity building needs.
A strategic assessment may be relevant in the aid program for larger
initiatives that could potentially involve a range of environmental risks, such
as:

Infrastructure programs – implementing multiple activities

Water supply and sanitation programs – working on numerous small-scale
infrastructure projects

Agricultural research and development programs that are likely to be scaled
up over a significant area

Humanitarian aid for which there is limited time for activity-specific
assessments.
A strategic assessment would be carried out during the design of a
program of activities. A strategic assessment may offer a way to
comprehensively assess and manage risks and to comply with the EPBC
Act without necessarily needing to refer individual activities.
A strategic assessment may also provide evidence for sector-specific good
practice guidance for delivery partners and their subcontractors
implementing activities under the program.
2. What are the legal obligations?
DFAT staff must assess the environmental risks of all aid activity to comply with the
EPBC Act, partner country environmental laws and a range of multilateral
environment treaties.
3. What you must do
DFAT staff:
DFAT staff considering a strategic assessment under the EPBC Act for large,
complex programs, or programs comprising a suite of small activities must:
1. Consult the Environment Safeguards Section at concept stage to determine if
a strategic assessment is appropriate and will reduce the administration costs
of meeting environmental protection obligations.
2. If a strategic assessment is recommended, engage appropriate technical
experts to conduct the assesment. The details you need to develop a Terms
of Reference for the assessment are provided below.
3. The technical experts will be requried to assess risks and recommend options
to avoid and manage the risks.
4. Submit this report to the Department of the Environment for endorsement by
the Minister for the Environment under the EPBC Act (the Environment
Safeguards Section will help with this step)
5. The assessment will produce options for delivering the program and activity
design criteria that will avoid and mitigate risks. After the program is
endorsed, use this information to develop contract conditions for delivery
partners to guide their environmental management processes.
Technical specialists:
Technical specialists engaged to carry out a strategic assessment must follow the
strategic assessment process below.
4. Strategic assessment process
Under the EPBC Act, a strategic assessment is conducted in consultation with the
Department of the Environment; for activities to be approved, the Minister must
endorse the program based on a set of endorsement criteria. Activities developed
under an endorsed program are legally considered to be approved under the Act and
do not need further consideration by the Australian Government.
How to conduct a strategic assessment | 2
Environment protection principle 2: assess and
manage environmental risks and impacts
The Department provides detailed guidance on the process for conducting a strategic
assessment, including estimated time for each step. The process includes the
following steps:
1. Minister for the Environment enters into an agreement with another person to
undertake a strategic assessment on the impacts of actions under a policy, plan or
program
2. Terms of Reference are prepared for a report on the impacts relating to the
agreement
3. Draft report prepared
4. Draft report open for public comment for at least 28 days
5. Minister may recommend modifying the policy, plan or program
6. Minister may endorse the policy, plan or program if appropriate
7. Minister may approve actions under the policy, plan or program if appropriate
(approval may include conditions)
Guided by the Terms of Reference, a strategic assessment should take into account:

How the program will be implemented

The types of activities that are likely to be implemented

The types of environmental risks that are likely to arise

Good practice management methods to avoid and mitigate risks

The principles of ecologically sustainable development.
An example report structure is provided at the end of this guidance.
In deciding whether to endorse a program under a strategic assessment, the Minister
will consider the extent to which the program is consistent with the objectives of the
EPBC Act, in that it:

Protects the environment, especially listed matters of environmental significance

Promotes ecologically sustainable development

Promotes the conservation of biodiversity

Demonstrates adaptation to reasonable climate change scenarios

Provides for the protection and conservation of heritage.
The Minister will also consider how the program:

Avoids impacts on the environment and areas of high biodiversity or heritage value

Mitigates impacts on the environment

Offsets impacts on the environment

Enhances the existing environment and manages existing threats

Provides a comprehensive framework of adaptive management, monitoring, auditing
and public reporting.
How to conduct a strategic assessment | 3
Environment protection principle 2: assess and
manage environmental risks and impacts
5. Example strategic assessment report structure
1. Executive summary
Outline of the key issues in the strategic assessment report.
2. Introduction
Background to the program and the strategic assessment process (including
rationale and purpose)
3. Program description
Summary of the program, including development and conservation activities
4. Environment context
Description of the environment within and around the strategic assessment
area: regional context, natural environmental values and heritage values.
6. Impacts
Analysis of the direct and indirect impacts: description of potential impacts,
analysis of measures to avoid, mitigate and offset impacts , and analysis of adaptive
management measures.
7. Ecologically sustainable development
Analysis of how the program meets the principles of ecologically sustainable
development.
8. Addressing uncertainty
Analysis of how the program addresses uncertainty.
9. Information sources
Analysis of the information sources used to develop the strategic assessment
report. This should include the currency and reliability of the various
information sources.
10. Terms of reference
Outline of how the strategic assessment report meets the terms of reference.
Outline of how the program meets the endorsement criteria.
11. References and consultations
List of the references and consultations used to inform the strategic
assessment report.
Get help if you are unsure
Contact the Environment Safeguards Section: environment@dfat.gov.au
How to conduct a strategic assessment | 4