Opportunity Analysis: Enhancing Biodiversity and Valuing Natural Capital

Reference number: PROC-9177163

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Release date:: Friday 29 November 2024
Closing time:: Friday 17 January 2025, at 05:00 PM ACT local time
Enquiry deadline:: Friday 10 January 2025, at 05:00 PM ACT local time

Summary

In response to the growing focus on biodiversity accounting and natural capital reporting, a comprehensive analysis will be undertaken to identify risks and opportunities and establish a biodiversity baseline for the Australian grains industry. By engaging with stakeholders across the supply chain, this analysis will provide actionable insights and recommendations by assessing factors such as growers' knowledge, legal requirements, financial considerations, productivity, social impacts, motivations and barriers to adopting biodiversity-enhancing practices. The analysis will review existing definitions and internationally recognised metrics relevant to biodiversity and natural capital, evaluate their relevance to the Australian context and formulate strategies to mitigate risks while aligning with current sustainability investments.

Offer period

Offers will remain open for acceptance by the GRDC for a period of 6 months after the Closing Time.

Document contact and enquiries

Attention: Kim Gilbert
Grains Research and Development Corporation
Email: tenders@grdc.com.au

Make all requests for further information or clarification in relation to this procurement in writing (email) prior to 10 January 2025.

GRDC will publish all requests and responses to requests on the GRDC website under Questions and Answers at the bottom of this webpage.

Consortia response

GRDC will not accept Tenders from Consortia.

Lodgement of Tender

Submit your Tender response electronically through the Grains Investment Portal.

AusTender

https://www.tenders.gov.au/Advert/Show/a29346bd-0765-4466-a7a2-61edf1684315

Description

The Australian grains industry faces a significant risk due to its unpreparedness for increasing sustainability accounting and nature risk reporting, including the Taskforce on Nature-related Financial Disclosures (TNFD) and other international and national markets and schemes. This initiative encourages organisations to integrate nature-related considerations into their operational and strategic decisions, which could affect growers' access to finance and require additional data at their own expense.

In 2023, GRDC commissioned a review to evaluate the risks and opportunities of ecosystem services markets for the Australian Grains industry (Aton Consulting 2024). The report indicates that current initiatives provide limited commercial benefits, with minimal gains from ecosystem service credit markets, direct grants and concessional finance. Discussions with growers and other agricultural industries highlights the need to harmonise metrics for scheme interoperability by examining reporting variables across various market and environmental, social and governance schemes. There is also a need for improved routine data collection through existing farm business tools and a clearer understanding of the impact of natural capital markets on the Australian grains industry.

This investment will conduct a comprehensive opportunity analysis to identify risks and opportunities and establish a biodiversity baseline for the Australian grains industry. Stakeholder consultations across the supply chain will provide actionable insights and recommendations. The analysis will assess growers' knowledge, legal requirements, financial considerations, productivity, social impacts, motivations and barriers to adopting biodiversity-enhancing practices. It will also review existing definitions, methodologies and internationally recognised metrics relevant to biodiversity and natural capital, assessing their applicability to Australia and evaluating the suitability of current natural capital accounting tools.

The analysis will establish baseline data, identify future trends and compare grower’s data with key stakeholder targets. It will evaluate the impact of on-farm decision-making on market access, finance, and community trust and develop strategies to mitigate risks. Accounting tools for integrating biodiversity and natural capital into grower decision-making will be explored, alongside understanding their interaction with productivity and profitability. Linkages with existing GRDC sustainability investments will also be identified.

The findings will guide the development of a biodiversity and natural capital RD&E initiative for the grains industry.

Outcome

Analyse growers’ knowledge and attitudes towards biodiversity and natural capital, focusing on their understanding and motivations. Define methodologies and metrics for measuring, monitoring and reporting on-farm biodiversity and natural capital. Examine perceptions within the Australian grains industry and evaluate their potential value in market access, financial benefits and community trust. Review supporting tools and technologies. This investment will guide future RD&E initiatives.

Outputs

Output	Description
Output 1: By June 2025, a comprehensive opportunity analysis for GRDC on biodiversity and natural capital in the Australian grains industry.	1. Understand Grower Knowledge and Motivations: Assess growers' knowledge of biodiversity and natural capital, legal requirements, financial aspects, productivity and social impacts. Evaluate grower motivations and barriers to adopting biodiversity and natural capital practices. Identify differences between family owned and corporate enterprises. Identify knowledge sources like government resources or consultative services. 2. Describe Standard Definitions, Methodologies, and Metrics: Review existing definitions, methodologies and metrics and their relevance to Australia. Determine value perspectives in terms of quantitative, qualitative and monetary benefits to the grains sector and community trust. 3. Baseline Data and Decision Making: Establish baseline data and future trends. Compare growers’ data with stakeholder targets. Evaluate how on-farm decision making impacts on market access, finance and community trust. Identify risks and develop mitigation strategies. 4. Identify Enablers and Synergies: Explore improvements in productivity, profitability and prosperity. Identify trade-offs and synergies with existing GRDC investments and other research organisations.
Output 2: By June 2025, evaluate the suitability of current biodiversity and natural capital accounting tools (e.g., digital twin) for GRDC in the Australian grains industry.	Transparency and Scientific Validity: Review the transparency of methodologies, metrics and scientific validity of biodiversity and natural capital accounting tools suitable for the Australian grains industry: 1. Ease of Use: Assess ease of use, including user interface, technical support, data security, confidentiality, cost-effectiveness, scalability and adaptability for ongoing improvements with new research and innovations. 2. Integration with Farm Systems: Determine how well the tools integrate with the whole farm system to assess yield, productivity, and profitability. 3. Scenario Testing Capability: Evaluate the tools’ capability for scenario testing to assess the impact of different farm practices. 4. Future Interoperability Consider future interoperability with other environmental categories such as greenhouse gas emissions and soil health.
Output 3: By June 2025, design a comprehensive biodiversity and natural capital RD&E initiative for GRDC in the Australian grains industry.	1. Integration with Framework: Integrate with the Australian Agricultural Sustainability Framework. 2. Incorporate findings from Analysis: Develop a clear framework based on the definitions, key concepts, values and grower attitudes identified in the analysis (Output 1). 3. Application of Insights: Apply insights from the evaluation of current accounting tools (Output 2) to recommend necessary changes to meet the identified criteria.

Output

Description

Output 1: By June 2025, a comprehensive opportunity analysis for GRDC on biodiversity and natural capital in the Australian grains industry.

1. Understand Grower Knowledge and Motivations:

Assess growers' knowledge of biodiversity and natural capital, legal requirements, financial aspects, productivity and social impacts.
Evaluate grower motivations and barriers to adopting biodiversity and natural capital practices. Identify differences between family owned and corporate enterprises.
Identify knowledge sources like government resources or consultative services.

2. Describe Standard Definitions, Methodologies, and Metrics:

Review existing definitions, methodologies and metrics and their relevance to Australia.
Determine value perspectives in terms of quantitative, qualitative and monetary benefits to the grains sector and community trust.

3. Baseline Data and Decision Making:

Establish baseline data and future trends.
Compare growers’ data with stakeholder targets.
Evaluate how on-farm decision making impacts on market access, finance and community trust.
Identify risks and develop mitigation strategies.

4. Identify Enablers and Synergies:

Explore improvements in productivity, profitability and prosperity.
Identify trade-offs and synergies with existing GRDC investments and other research organisations.

Output 2: By June 2025, evaluate the suitability of current biodiversity and natural capital accounting tools (e.g., digital twin) for GRDC in the Australian grains industry.

Transparency and Scientific Validity:

Review the transparency of methodologies, metrics and scientific validity of biodiversity and natural capital accounting tools suitable for the Australian grains industry:

1. Ease of Use:

Assess ease of use, including user interface, technical support, data security, confidentiality, cost-effectiveness, scalability and adaptability for ongoing improvements with new research and innovations.

2. Integration with Farm Systems:

Determine how well the tools integrate with the whole farm system to assess yield, productivity, and profitability.

3. Scenario Testing Capability:

Evaluate the tools’ capability for scenario testing to assess the impact of different farm practices.

4. Future Interoperability

Consider future interoperability with other environmental categories such as greenhouse gas emissions and soil health.

Output 3: By June 2025, design a comprehensive biodiversity and natural capital RD&E initiative for GRDC in the Australian grains industry.

1. Integration with Framework:

Integrate with the Australian Agricultural Sustainability Framework.

2. Incorporate findings from Analysis:

Develop a clear framework based on the definitions, key concepts, values and grower attitudes identified in the analysis (Output 1).

3. Application of Insights:

Apply insights from the evaluation of current accounting tools (Output 2) to recommend necessary changes to meet the identified criteria.

Proposed Budget

Proposed Contract & Term

GRDC will contract under the terms of the Consultancy Contract.

The schedule(s) attached to the contract will detail the project details: the outcomes, outputs, milestones, budget, participating personnel and required intellectual property.

The template contract containing the proposed Terms and Conditions is available on the Application resources page on the GRDC website.

It is anticipated that any resultant contract in relation to this procurement will commence with a proposed term of 4 months.

Conditions for Participation

The following are mandatory conditions with which a Tenderer must comply to participate in this procurement process:

The Tenderer must be a single legal entity or recognised firm of partners
The Tenderer and any proposed subcontractor must be compliant with the Workplace Gender Equality Act 2012, the Modern Slavery Act 2018 and any other applicable labour laws and standards in the jurisdiction in which they operate.
The Tenderer and any subcontractor must not have a judicial decision against it (not including decisions under appeal) relating to employee entitlements and who have not paid the claim.
The Tenderer and any subcontractor must not be named on the Consolidated List, being the list of persons and entities who are subject to targeted financial sanctions or travel bans under Australian sanction laws, as maintained by the Department of Foreign Affairs and Trade.

Minimum Form and Content Requirements

The following are the mandatory content and format requirements that the Tenderer must complete and provide to participate in this procurement process:

Submit Tenders using the Grains Investment Portal.
Write Tenders in English and express any measurements in Australian legal units of measurement.
Budget details must be submitted on the ‘GRDC Budget Template’ provided in the Grains Investment Portal.
Certificates of Currency in relation to: Public liability in the amount of at least $10 million in respect of each claim; Professional indemnity insurance with a limit of at least $5 million in respect of each claim; Workers compensation insurance, as required by law.

Evaluation Criteria

In the table below are the Evaluation Criteria that the Tender Evaluation Team will use to assess the value for money of all Tenders.

No	Type	Weighting
1	Technical – Qualitative evaluation criteria related to non-price factors such as methodology, project plan, track record, experience.
1a	A list of all key personnel, including proposed sub-contractors, detailing relevant: Demonstrated experience and skill, industry knowledge and organisational resources. Demonstrated ability to collaborate with industry personnel and stakeholders.	30%
1b	A detailed plan to deliver the investment outcome and outputs, specifying the: specific information, products and/or services to be delivered key tasks/milestones, responsible parties and indicative timeframes project team structure and management arrangements, including collaborations with organisations, commercial companies and/or other projects with relevant data.	40%
1c	Evidence of the ability and experience to deliver similar investment outcomes and outputs, including details of previous relevant project(s).	30%
2	Price - The tendered budget.	N/A
3	Risk - Risks inherent in the application including the degree of compliance with the draft contract and any actual or perceived conflict of interest.	N/A

Lodging a Tender

Questions and Answers

Q1. Will the successful party be able to work with the GRDC lead to provide an interface with growers and possibly facilitate workshops etc? (That is, to what extent can the consultant leverage GRDC's existing connections?)

A1. The successful applicant is expected to contact growers and facilitate workshops using their own networks.

Q2. The potential stakeholder target groups could be quite wide, and whilst we have ideas about who might be most relevant, we would like to confirm GRDC thinking on this.

A2. The applicant must identify target groups for the comprehensive opportunity analysis. Applicants are encouraged to provide a rationale for target group inclusion.

Q3. I would like to enquire about the delivery timeframe for the GRDC call “Opportunity Analysis: Enhancing Biodiversity and Valuing Natural Capital”. The current delivery timeframe is proposed at 4 months. Would the GRDC consider a delivery timeframe of 6 months (which would take the final milestone into the next financial year).

A3. The Opportunity Analysis is due for completion in June 2025. Applicants are encouraged to consider the required resources and budget when developing their application to ensure successful delivery of the Outputs by the specified date.

Q4. Do you have a definition of biodiversity and natural capital or some guard rails around what’s in and what’s out in terms of the analysis and understanding of this? You talk about sustainability frameworks as well as biodiversity and natural capital so I’m just wondering how broad you’d like the analysis of the baseline, metrics, grower’s knowledge etc to be? Would things like GHG emissions, water use efficiency, soil organic carbon likely be included or should these types so things be omitted?

A4. Applicants are encouraged to take a comprehensive approach to biodiversity and natural capital. For the opportunity analysis, we recommend focusing on these elements and considering how they interconnect with other sustainability factors.

Q5. In the tender, output 1.3 does baseline data refer to Output 1.1 Understanding of grower knowledge and motivations? Or does it refer to baseline GHG emissions/ESG/TNFD data?

A5. Applicants are encouraged to consider a range of biodiversity and natural capital factors relevant to the Australian grains industry when proposing the methodology for establishing a ‘Baseline Data and Decision Making’. The proposed baseline should include, but not be limited to, ‘understanding grower knowledge and motivations’.

Q6. Similarly under output 1.3 does 'Evaluate how on-farm decision-making impacts on market access, finance and community trust.' refer exclusively to decision-making about natural capital measurement/monitoring/reporting? Is the analysis expected to evaluate potential future impacts as well?

A6. Yes.

Q7. The tender summary component refers to stakeholders: "engaging with stakeholders across the supply chain, this analysis will provide actionable insights and recommendations by assessing factors such as growers' knowledge, legal requirements, financial considerations, productivity, social impacts, motivations and barriers to adopting biodiversity-enhancing practices." There is not similar reference to stakeholders across the supply chain in the outputs section, except in relation to 'stakeholder targets'. Do these stakeholder targets refer to climate/nature related disclosure targets (biodiversity, emissions reductions targets), or targets/goals of specific stakeholders?

A7. Applicants must identify and consult with relevant stakeholders associated with the Australian grain industry. ‘Stakeholder targets’ refer to biodiversity and nature related disclosure targets set by specific stakeholders.

Q8. Can you please explain what does (and doesn’t) constitute a consortium? For instance, would you accept Tenders from a single organisation that will deliver the project with support from subcontractors (e.g. Associates and/or other consultancies)?

A8. GRDC will enter into a two-party Consultancy Contract with the preferred tenderer, with project partners, associates and collaborators acting as sub-contractors to the agreement.

Q9. A key element of the scope is the community engagement to assess grower knowledge and their key motivations regarding natural capital enhancement practices. This includes characterising how these differ between corporate and family business operations. As we see it, this is a significant piece of work, and we are seeking guidance to help us constrain the scale of stakeholder engagement anticipated to be included in this tender.

Q9A. Can you please give us an indication on if there are any geographical areas that GRDC consider to be more relevant for this package of work, and thus areas of focus for the stakeholder engagement?

A9A. Stakeholder engagement should be conducted nationally to represent the broader grain industry, identifying regional similarities and differences, with no specific geographical area prioritised.

Q9B. Would GRDC be seeking the results of in-person stakeholder engagement or would an online community engagement initiative be considered sufficient for the purposes of GRDC research?

A9B. Applicants can choose in-person, online or a combination of both, if the approach ensures comprehensive and effective engagement. Applicants should justify their approach based on feasibility, cost-effectiveness, and the likelihood of obtaining comprehensive data.

Q9C. As an outcome, is GRDC requiring a social profile and risk assessment report?

A9C. GRDC expects an assessment of grower knowledge, motivations, and barriers as part of stakeholder engagement (a "social profile"). The risk assessment can include challenges to adoption and potential impacts of external factors, such as natural capital credentialing schemes.

Q10. In Output 1.2 the second dot point is “Determine value perspectives in terms of…………” Can you clarify what “value” means in this context.

A10. Value refers to the measurable benefits; quantitative and qualitative as well as monetary for the Australian grain industry.

Q11. In Output 1.3

Establish baseline data and future trends
What time frame should we consider? 5,15,25 years?

A11. It is up to the applicant to determine the appropriate time frame when considering the impact of future trends on biodiversity and natural capital in the grains industry.

Q12. Compare growers’ data with stakeholder targets.

Stakeholders such as EU, markets generally, buyers, millers, wholesalers, retailers ??

A12. Refer to response A7 in Q&A.

Q13. What do you mean by ‘Develop a clear framework based on the definitions, key concepts, values and grower attitudes identified in the analysis’

What is the framework intended to be used for please?

A13. The framework will offer insights for developing GRDC’s biodiversity and natural capital RD&E initiative.

Q14. Biodiversity baseline- this is potentially a very large piece of work. Does GRDC have a preference for the indicators used, or the scale at which the biodiversity baseline assessment is deployed?

A14. Refer to A4, A5, and A9A.

Q15. ‘Identify risks and develop mitigation strategies’ – (output 1, point 3) – what is risk pertaining to in this instance?

A15. Applicants should consider identifying a range of risks including external factors and challenges to adoption by Australian growers. Additionally, GRDC expects applicants to identify current and potential risk mitigation strategies. Applicants should justify their approach. Also refer to A9C.

Q16. Explore improvements in productivity, profitability and prosperity. (output 1, point 4) – is this in relation to biodiversity and natural capital enhancement?

A16. Yes.