Implementing sustainability into project
development
Queensland Asset Management and Maintenance Conference
3-4 December 2...
Tunnel energy use
Electricity	
  Demand	
  

Legacy	
  Way	
  example	
  

22,873	
  
MWh	
  pa	
  

Ven$la$on	
  
Ligh$ng...
Emergence of infrastructure
sustainability rating schemes
UK	
  

Interna6onal	
  

Australia	
  

United	
  States	
  
Introducing ISCA…
• 
• 
• 
• 

Member	
  based,	
  not-­‐for-­‐profit	
  
>	
  80	
  member	
  organisa$ons	
  
Employing	
...
ISCA members

6
ISCA members (cont’d)

7
ISCA Board and operations team

David	
  Singleton	
  
Chairman	
  

Anne	
  Davis	
  
Director	
  

Nick	
  Fleming	
  
D...
 
Innova$on	
  
Verifica$on	
  
Consistency	
  
Benchmarking	
  
Differen$a$on	
  
Risk	
  management	
  
	
  

A	
  photovo...
Sources of business value

Sustainability
impact

Value creation
levers

Cost efficiency

Cost savings

Margin
improvement...
Sources of business value
Sustainability
impact

Value creation
levers

Improved
reputation

Pricing power

Employee
engag...
IS Scheme Ratings and the Brand

12
Infrastructure Types
Transport	
  
• 
• 
• 
• 
• 

Airports	
  
Cycleways	
  &	
  Footpaths	
  
Ports	
  &	
  Harbours	
  ...
IS rating scheme

14
IS themes and categories
Themes	
  
Management	
  and	
  Governance	
  

Using	
  Resources	
  

Emissions,	
  Pollu$on	
 ...
IS themes and categories
Themes	
  
Management	
  and	
  Governance	
  

Using	
  Resources	
  

Emissions,	
  Pollu$on	
 ...
IS themes and categories
Themes	
  
Management	
  and	
  Governance	
  

Using	
  Resources	
  

Emissions,	
  Pollu$on	
 ...
IS themes and categories
Themes	
  
Management	
  and	
  Governance	
  

Using	
  Resources	
  

Emissions,	
  Pollu$on	
 ...
IS themes and categories
Themes	
  
Management	
  and	
  Governance	
  

Using	
  Resources	
  

Emissions,	
  Pollu$on	
 ...
IS themes and categories
Themes	
  
Management	
  and	
  Governance	
  

Using	
  Resources	
  

Emissions,	
  Pollu$on	
 ...
Benchmarking
Compliance
Business
as Usual

Level of
Performance

21

Beyond Compliance
Level 1
Good

Measurement	
  
	
  
...
Certified rating
Whitsunday STP Upgrades
Upgrade	
  of	
  2	
  treatment	
  plants	
  at	
  Proserpine	
  and	
  
Cannonva...
Tenix CEO Ross Taylor, and
Whitsunday Regional Council Mayor Jennifer Whitney

23

SOURCE:	
  www.tenix.com	
  
Great Eastern Highway Upgrade
A	
  4.2km	
  sec$on	
  of	
  the	
  Great	
  Eastern	
  Highway	
  between	
  Kooyong	
  Ro...
Great Eastern Highway Upgrade – Highlights
Category/	
  
Credit	
  

Score	
  

Achievements	
  

Management	
  
Systems	
...
Great Eastern Highway Upgrade – Highlights
Category/	
  
Credit	
  

Score	
  

Achievements	
  

Materials	
  

Previous	...
Great Eastern Highway Upgrade – Highlights
Category/	
  
Credit	
  

Innova6on	
  

27

Score	
  

Achievements	
  

•  Wa...
Case study: application of the IS
operation rating
Why this project?
•  Councils	
  want	
  to	
  know:	
  

–  how	
  sustainably	
  are	
  we	
  managing	
  our	
  assets?...
Why local roads?
• 
• 
• 
• 

Largest	
  asset	
  class	
  of	
  	
  many	
  councils	
  
Roads	
  management	
  largest	
...
General IS benefits
•  Common	
  language	
  
•  Waste/cost	
  reduc$on	
  
•  Consistent	
  applica$on	
  and	
  
evalua$...
Benefits – current IS ratings
Quotes for by current IS registrations

'The	
  sustainability	
  ini/a/ves	
  
collec/vely	...
Trade-offs

33
Evolution of IS
Current	
  or	
  proposed	
  ISCA	
  IS	
  development	
  ac$vi$es	
  –	
  in	
  response	
  
to	
  indust...
Infrastructure projects and IS ratings

35
Enlarged Cotter Dam
An	
  Enlarged	
  CoTer	
  Dam	
  is	
  being	
  built	
  downstream	
  of	
  the	
  exis$ng	
  dam	
 ...
North West Rail Link
The	
  North	
  West	
  Rail	
  Link	
  is	
  a	
  priority	
  rail	
  infrastructure	
  project	
  f...
Gold Coast Light Rail (Stage 1)
Development	
  of	
  a	
  light	
  rail	
  system	
  that	
  passes	
  through	
  key	
  h...
Take-away messages
•  Exci$ng	
  $mes	
  following	
  years	
  
of	
  development	
  
•  Fully	
  opera$onal	
  ra$ng	
  s...
 

Thank you
0488 592 555
PO Box Q80
QBV NSW 1230
info@isca.org.au
www.isca.org.au

Scott Losee
BES MPhil MEIANZ

Consulta...
Scott Losee - Infrastructure Sustainability Council of Australia - Implementing sustainability into project development
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Scott Losee - Infrastructure Sustainability Council of Australia - Implementing sustainability into project development

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Scott Losee, Director, Infrastructure Sustainability Council of Australia delivered this presentation at the Asset Management and Maintenance Conference. This conference addressed the effective maintenance strategies for a variety of private and public assets.

Find out more at http://www. Informa.com.au/assetmgmt2013

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Scott Losee - Infrastructure Sustainability Council of Australia - Implementing sustainability into project development

  1. 1. Implementing sustainability into project development Queensland Asset Management and Maintenance Conference 3-4 December 2013, Royal on the Park, Brisbane Scott Losee Director, ISCA Independent Consultant au.linkedin.com/in/scottlosee Advancing sustainability in infrastructure planning, procurement, delivery and operation.
  2. 2. Tunnel energy use Electricity  Demand   Legacy  Way  example   22,873   MWh  pa   Ven$la$on   Ligh$ng   Presurisa$on   fans   Pumps   21,513   tCO2-­‐e  pa   =1,434   Households  
  3. 3. Emergence of infrastructure sustainability rating schemes UK   Interna6onal   Australia   United  States  
  4. 4. Introducing ISCA… •  •  •  •  Member  based,  not-­‐for-­‐profit   >  80  member  organisa$ons   Employing  ~  70,000  people   >$5M  invested  by  industry   'Advancing  sustainability  in  infrastructure  planning,   procurement,  delivery  and  opera8on'   5
  5. 5. ISCA members 6
  6. 6. ISCA members (cont’d) 7
  7. 7. ISCA Board and operations team David  Singleton   Chairman   Anne  Davis   Director   Nick  Fleming   Director   Menno  Henneveld   Director   Antony  Sprigg   Chief  Execu6ve  Officer   Russel  Cu@ler   Director   Sco@  Lambert   Company  Secretary   Mark  Rogers   Deputy  Chairman   Rick  Walters   Technical  Director   Vacancy   Technical  Advisor   Sco@  Losee   Director   Tim  Carter   Coordinator   Penny  Townley   Director   Jayne  Whitney   Director   Eva  Wang   Bookkeeper  /  Administra6on   8 8
  8. 8.   Innova$on   Verifica$on   Consistency   Benchmarking   Differen$a$on   Risk  management     A  photovoltaic  noise  barrier  runs  alongside  the  A22  autostrada  at  Brennero  in  Italy,   World  Highways,  2012  hTp://www.worldhighways.com/sec$ons/irf/features/photovoltaic-­‐noise-­‐barriers/     9
  9. 9. Sources of business value Sustainability impact Value creation levers Cost efficiency Cost savings Margin improvement Increased profit Free cash flow Market valuation multiple 10 Total shareholder return
  10. 10. Sources of business value Sustainability impact Value creation levers Improved reputation Pricing power Employee engagement Productivity Cost efficiency Cost savings New markets Increased market share New sources of revenue Margin improvement Increased profit Free cash flow Revenue growth Reduced risk Access to capital Social license to operate Brand strength Risk premium Market valuation multiple Adapted from Berns et al., 2009, The Business of Sustainability, MIT Sloan, BCG. 11 Total shareholder return
  11. 11. IS Scheme Ratings and the Brand 12
  12. 12. Infrastructure Types Transport   •  •  •  •  •  Airports   Cycleways  &  Footpaths   Ports  &  Harbours   Roads     Railways     Communica6on   •  13 Communica$on  Networks   Water   •  •    Sewerage  &  Drainage   Storage  &  Supply   Energy   •  •  Electricity  Transmission  &   Distribu$on     Gas  Pipelines  
  13. 13. IS rating scheme 14
  14. 14. IS themes and categories Themes   Management  and  Governance   Using  Resources   Emissions,  Pollu$on  and  Waste   Ecology   People  and  Place   Innova$on   15 Categories   Management  Systems   Procurement  and  Purchasing   Climate  Change  Adapta$on   Energy  and  Carbon   Water   Materials   Discharges  to  Air,  Land  and  Water   Land   Waste   Ecology   Community  Health,  Well-­‐being  and  Safety   Heritage   Stakeholder  Par$cipa$on   Urban  and  Landscape  Design   Innova$on  
  15. 15. IS themes and categories Themes   Management  and  Governance   Using  Resources   Emissions,  Pollu$on  and  Waste   Ecology   People  and  Place   Innova$on   16 Categories   Management  Systems   Procurement  and  Purchasing   Climate  Change  Adapta$on   Energy  and  Carbon   Water   Materials   Discharges  to  Air,  Land  and  Water   Land   Waste   Ecology   Community  Health,  Well-­‐being  and  Safety   Heritage   Stakeholder  Par$cipa$on   Urban  and  Landscape  Design   Innova$on  
  16. 16. IS themes and categories Themes   Management  and  Governance   Using  Resources   Emissions,  Pollu$on  and  Waste   Ecology   People  and  Place   Innova$on   17 Categories   Management  Systems   Procurement  and  Purchasing   Climate  Change  Adapta$on   Energy  and  Carbon   Water   Materials   Discharges  to  Air,  Land  and  Water   Land   Waste   Ecology   Community  Health,  Well-­‐being  and  Safety   Heritage   Stakeholder  Par$cipa$on   Urban  and  Landscape  Design   Innova$on  
  17. 17. IS themes and categories Themes   Management  and  Governance   Using  Resources   Emissions,  Pollu$on  and  Waste   Ecology   People  and  Place   Innova$on   18 Categories   Management  Systems   Procurement  and  Purchasing   Climate  Change  Adapta$on   Energy  and  Carbon   Water   Materials   Discharges  to  Air,  Land  and  Water   Land   Waste   Ecology   Community  Health,  Well-­‐being  and  Safety   Heritage   Stakeholder  Par$cipa$on   Urban  and  Landscape  Design   Innova$on  
  18. 18. IS themes and categories Themes   Management  and  Governance   Using  Resources   Emissions,  Pollu$on  and  Waste   Ecology   People  and  Place   Innova$on   19 Categories   Management  Systems   Procurement  and  Purchasing   Climate  Change  Adapta$on   Energy  and  Carbon   Water   Materials   Discharges  to  Air,  Land  and  Water   Land   Waste   Ecology   Community  Health,  Well-­‐being  and  Safety   Heritage   Stakeholder  Par$cipa$on   Urban  and  Landscape  Design   Innova$on  
  19. 19. IS themes and categories Themes   Management  and  Governance   Using  Resources   Emissions,  Pollu$on  and  Waste   Ecology   People  and  Place   Innova$on   20 Categories   Management  Systems   Procurement  and  Purchasing   Climate  Change  Adapta$on   Energy  and  Carbon   Water   Materials   Discharges  to  Air,  Land  and  Water   Land   Waste   Ecology   Community  Health,  Well-­‐being  and  Safety   Heritage   Stakeholder  Par$cipa$on   Urban  and  Landscape  Design   Innova$on  
  20. 20. Benchmarking Compliance Business as Usual Level of Performance 21 Beyond Compliance Level 1 Good Measurement     Implemen6ng   Ini6a6ves   Level 2 Excellent No  net  impact   Level 3 Leading Restora6on  &     Enhancement  
  21. 21. Certified rating Whitsunday STP Upgrades Upgrade  of  2  treatment  plants  at  Proserpine  and   Cannonvale  to  serve  growing  communi$es  and   meet  stringent  effluent  discharge  requirements  to   protect  the  GBR.  They  will  also  reduce  sewage   overflows,  and  improve  noise  and  odour   Proponent:   Contractor:   Tenix   Infrastructure  Type:   Sewage  treatment   Ra6ng  Type:   Design   Loca6on:   Whitsundays,  QLD   Capital  Value:   $45m   Start  Date:   May  2012   Prac6cal  Comple6on:   22 Whitsunday  Regional  Council   May  2014  
  22. 22. Tenix CEO Ross Taylor, and Whitsunday Regional Council Mayor Jennifer Whitney 23 SOURCE:  www.tenix.com  
  23. 23. Great Eastern Highway Upgrade A  4.2km  sec$on  of  the  Great  Eastern  Highway  between  Kooyong  Road  and   Tonkin  Highway  widened  from  four  to  six  lanes  with  a  number  of  ancillary   improvements  including  central  medians,  upgraded  intersec$ons,  on  road   cycling  facili$es,  bus  priority  lanes  and  con$nuous  paths  for  pedestrians.   Proponent:   Main  Roads  WA  (MRWA)   Contractor:   City  East  Alliance  (MRWA,   Leighton  Cont.,  GHD,  NRW)   Infrastructure  Type:   Road   Ra6ng  Type:   As  Built   Loca6on:   Perth,  WA   Capital  Value:   $350  million   Start  Date:   July  2011   Prac6cal  Comple6on:   March  2013  
  24. 24. Great Eastern Highway Upgrade – Highlights Category/   Credit   Score   Achievements   Management   Systems   Water   25 •  Commitment  to  mi$ga$ng  nega$ve  environmental,   social  and  economic  impacts   •  Accredited  management  systems   6.3/10.5   •  Thorough  risk  and  opportunity  assessment   •  Knowledge  sharing  clearly  demonstrated   •  Strong  decision  making  approach  incorpora$ng   sustainability  aspects   •  Opportuni$es  to  reduce  water  use  iden$fied  and   implemented   •  Instead  of  using  high-­‐value  potable  water,  the  project   2.9/7.0   installed  groundwater  bores  and  constructed  a  weir   which,  on  comple$on,  was  handed  to  the  local  council   to  irrigate  parks.  
  25. 25. Great Eastern Highway Upgrade – Highlights Category/   Credit   Score   Achievements   Materials   Previous  Land   Use   3.3/3.3   Heritage   26 •  Significant  reduc$on  in  materials  lifecycle  impacts   through  extensive  use  of  recycled  materials,  reducing   the  use  of  non-­‐renewable  resources  of  limestone,  sand   and  bitumen   6.2/7.0   •  The  highway  now  has  the  largest  use  of  recycled   material  on  any  WA  State  road  with  43  per  cent  of   imported  material  being  recycled   •  Thorough  approach  to  heritage  assessment  and   management   2.3/5.0   •  Monitoring  overseen  by  appropriately  qualified  persons   •  >75%  of  land  used  for  the  project  was  previously   disturbed  
  26. 26. Great Eastern Highway Upgrade – Highlights Category/   Credit   Innova6on   27 Score   Achievements   •  Warm  mix  asphalt  was  used  on  the  project,  applying   innova$ve  foaming  technology  to  mix  the  bitumen  into   the  asphalt  mix   1.7/5.0   •  This  was  a  first  for  Western  Australia,  reducing  energy   use  and  GHG  emissions  
  27. 27. Case study: application of the IS operation rating
  28. 28. Why this project? •  Councils  want  to  know:   –  how  sustainably  are  we  managing  our  assets?   –  how  does  our  sustainability  performance  compare   with  others?   –  how  can  we  demonstrate  good  sustainability   performance  and  improvements  over  $me?   –  what  ac$ons  can  we  take  to  manage  our  assets  more   sustainably?   –  how  can  we  get  our  colleagues  to  support  us?   –  How  can  we  demonstrate  our  performance  to  our   community?  
  29. 29. Why local roads? •  •  •  •  Largest  asset  class  of    many  councils   Roads  management  largest  opera$ons   Huge  total  annual  spend  maintaining  roads   Even  small  %  improvements  in  sustainability   can  result  in  enormous  benefits  cumula$vely   84%  (by  length)  of  all  of   Australia’s  roads  are   maintained  by  Australia’s   560  local  councils   Total  value  of  Australia’s   local  council  infrastructure   $187  Billion  (roads  >$100   Billion)  
  30. 30. General IS benefits •  Common  language   •  Waste/cost  reduc$on   •  Consistent  applica$on  and   evalua$on  in  tendering   •  Scoping  whole-­‐of-­‐life  risks   •  Innova$on  and  con$nuous   improvement   •  'Social  license  to  operate'   •  Builds  creden$als  and  reputa$on   31 Photo:  City  East  Alliance,  Great   Eastern  Highway  Upgrade,  Kooyong   Road  to  Tonkin  Highway,      hTp://www.cityeastalliance.com.au/   gallery/images/august/  
  31. 31. Benefits – current IS ratings Quotes for by current IS registrations 'The  sustainability  ini/a/ves   collec/vely  add  significant  value  at   nil-­‐marginal  addi/onal  cost.'   'As  this  is  an  outside  body  ra/ng  the  projects   sustainability  performance,  be?er  recogni/on  of  our   organisa/on’s  sustainability  systems  is  achieved.'     32
  32. 32. Trade-offs 33
  33. 33. Evolution of IS Current  or  proposed  ISCA  IS  development  ac$vi$es  –  in  response   to  industry  feedback:   •  Opera$on  IS  Tool  pilot  trials   •  Development  of  Workforce  and  Economic  Themes   •  Current  Tool  review  and  update  (including  flexible  weigh$ngs)   •  'How  to  use  IS'  Guidelines  for  Business  Case  &  Project   Development,  Investors,  Procurement   •  Industry  Forums  and  Knowledge  Hub     34
  34. 34. Infrastructure projects and IS ratings 35
  35. 35. Enlarged Cotter Dam An  Enlarged  CoTer  Dam  is  being  built  downstream  of  the  exis$ng  dam  to  increase  the   CoTer  Reservoir’s  capacity  from  4GL  to  78GL.  The  Enlarged  CoTer  Dam  forms  part  of   ACTEW’s  con$nued  response  to  ensuring  a  secure  water  supply  for  the  ACT  and  to  address   drought,  climate  change  and  variability.   Proponent:   ACTEW   Contractor:   Bulk  Water  Alliance  (JHG,   Abigroup,  GHD,  ACTEW)   Infrastructure  Type:   Water  Storage  &  Supply   Ra6ng  Type:   As  Built   Loca6on:   ACT   Capital  Value:   $299m   Start  Date:   2008   Prac6cal  Comple6on:   2013   36
  36. 36. North West Rail Link The  North  West  Rail  Link  is  a  priority  rail  infrastructure  project  for  the  NSW   Government.  Eight  new  railway  sta$ons  are  proposed  at  Cherrybrook,  Castle  Hill,   Showground,  Norwest,  Bella  Vista,  Kellyville,  Rouse  Hill  and  Cudgegong  Road  and   4,000  commuter  car  parking  spaces.  The  rail  link  includes  15km  of  tunnels  between   Bella  Vista  and  Epping  -­‐  Australia's  longest  rail  tunnels.     Proponent:   Transport  for  NSW   Design,  Construc6on   and  Opera6on:   Four  packages  of  works   Infrastructure  Type:   Railway  and  associated   infrastructure   Ra6ng  Type:   Design,  As  Built,  Opera$on   Loca6on:   NW  Sydney,  NSW   Capital  Value:   $8.3bn   Start  Date:   Q2  2011   Prac6cal  Comple6on:   2019   37
  37. 37. Gold Coast Light Rail (Stage 1) Development  of  a  light  rail  system  that  passes  through  key  health,  educa$onal  and   residen$al  precincts.  Stage  One  works  will  carry  passengers    along  the  13-­‐kilometre  light   rail  corridor,  connec$ng  them  from  the  Gold  Coast  University  Hospital  and  Griffith   University  (Health  and  Knowledge  precinct)  to  the  fast  growing  commercial,  retail  and   recrea$onal  centres  of  Southport,  Surfers  Paradise  and  Broadbeach.   Proponent:   Contractor:   McConnell  Dowell   Infrastructure  Type:   Light  Rail   Ra6ng  Type:   As  Built   Loca6on:   QLD   Capital  Value:   $437m   Start  Date:   Jan  2012   Prac6cal  Comple6on:   38 GoldLinQ   2014  
  38. 38. Take-away messages •  Exci$ng  $mes  following  years   of  development   •  Fully  opera$onal  ra$ng  scheme   •  Not  just  environmental   •  Industry-­‐led  drive  for  beTer   sustainability  outcomes   •  Mul$ple  benefits  including  cost   reduc$on   39
  39. 39.   Thank you 0488 592 555 PO Box Q80 QBV NSW 1230 info@isca.org.au www.isca.org.au Scott Losee BES MPhil MEIANZ Consultant ABN 42 665 869 451 0404 467 228 54 Boronia Ave, Holland Park West, Queensland, Australia, 4121 Advancing sustainability in scottlosee@optusnet.com.auinfrastructure planning, procurement, delivery and operation.

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