The Governance of Sustainability
Tuesday 10 October 2023
Presented by:
Roger Garrini and Katherine Ingham
Content Description:
When analysing the issues of sustainability, it is clear that many issues will be addressed with complex projects and programmes which provide opportunities for good governance to influence. It is important that the Governance is sound and the PM community must be supported. We will discuss these issues in this session.
Benefits and Value and Governance SIG Conference, The Governance of Sustainability, 10 October 2023
1. The Governance of Sustainability
Date of presentation 14pt Arial Regular
2. The case for sustainable development
We only have one planet,
therefore finite resources.
Economic models based on
growth cannot work in an
environment with finite
resources.
Therefore, to meet the needs
of all those on our planet and
the needs of future
generations we must take an
approach of sustainable
development.
3.
4. • In 2020, more than 1 billion people lived in slums or informal settlements, with Central and Southern
Asia, Eastern and South-Eastern Asia, and sub-Saharan Africa accounting for 85 per cent of them.
• In 2019, ambient air pollution from traffic, industry, power generation, waste burning and residential fuel
combustion resulted in 4.2 million deaths.
• In 2021, 99 per cent of the world’s urban population live in areas that exceed the new air quality
guidelines set by the World Health Organization (WHO).
• Between 2015 and 2030, annual passenger traffic globally is projected to increase by 50 per cent, and
the number of cars on the road is likely to double.
• According to 2020 data from 1,510 cities around the world, only about 37 per cent of urban areas are
served by public transport.
Source UN: https://www.un.org/sustainabledevelopment/cities/
5. • From 2000 to 2019, total domestic material consumption rose by more than 65 per cent globally,
amounting to 95.1 billion metric tons in 2019.
• In 2020, an estimated 13.3 per cent of the world’s food was lost after harvesting and before reaching
retail markets. An estimated 17 per cent of total food available to consumers is wasted at household,
food service and retail levels.
• In 2019, the amount of e-waste generated globally was 7.3 kilograms per capita, out of which only 1.7
kilograms was managed in an environmentally sound way.
• The capacity of developing countries to generate electricity from renewable sources has soared over
the last decade, from 109.7 watts per capita in 2011 to 245.7 watts per capita in 2020.
• In 2020, governments spent $375 billion on subsidies and other support for fossil fuels.
Source UN: https://www.un.org/sustainabledevelopment/sustainable-consumption-production/
6. • In 2021, the global mean temperature was about 1.1°C above the pre-industrial level (from 1850 to 1900). The
years from 2015 to 2021 were the seven warmest on record.
• It is estimated that $1.6 trillion to $3.8 trillion will be needed each year through 2050 for the world to transition
to a low-carbon future and avoid warming exceeding 1.5 °
• About one third of global land areas will suffer at least moderate drought by 2100. By 2030, an estimated 700
million people will be at risk of displacement by drought alone.
• The sea level could rise 30cm to 60cm by 2100, even if greenhouse gas emissions are sharply reduced and
global warming is limited to well below 2°C.
• About 70 to 90 per cent of warm-water coral reefs will disappear even if the 1.5°C threshold is reached; they
would die off completely at the 2°C level.
Source UN: https://www.un.org/sustainabledevelopment/climate-change/
7. • Other than ‘climate change’, two of the most used terms in the IPCC’s sixth and most recent climate
change report are TRADE-OFF and GOVERNANCE
• Trade-offs are required as delivering on climate action may come at the expense of other SDGs (e.g. #11
developing cities and #12 reducing consumption)
• Governance is required to make decisions in relation to those trade-offs
• Decisions need:
• Alignment to context (organizational objectives and purpose)
• Authority
• Accountability
• Transparency
These are the foundations of the Governance of Change.
https://www.ipcc.ch/report/ar6/syr/downloads/report/IPCC_AR6_SYR_LongerReport.pdf
8. Threat or opportunity?
“climate change and the nature emergency is a systemic problem, so needs a system
solution. Nothing is more systemic than project management”
– Jo Jolly, Deputy Director, Project Futures, UK Infrastructure and Projects Authority
Organisations are increasingly turning to projects to address their sustainability challenges
and opportunities
Projects themselves need to transition from being part of the problem (e.g. consumption) to
being part of the solution (e.g. climate action)
Project professionals who are more sustainability literate will be more valuable to their
employers (or prospective employers)
9. Decision making – how to make projects more sustainable
Scoping and
appraising
Project delivery Project product
/ output
10. Scoping and
appraising
In simple terms
• Refuse
• Reduce
• Reuse / Renew / Repurpose
• Recycle
• Recover
• Dispose
With organisational context and alignment to
business values, priorities or objectives.
11. Project
delivery
Some considerations
• schedule optimised for….. carbon, cost or
calendar?
• controls optimised for…..
• procurement and commercial optimised
for….
• reporting includes sustainability priorities:
how measured?
• delivery methods, e.g. modular off-site
manufacturing
• minimise waste: in particular materials,
movement, energy
12. Project product / output
Some considerations
• users - equality and social value
• operations
• maintenance
• lifespan
• resilience
• adaptability, e.g. platforms
• designed for decommissioning
14. Governance of sustainability – what can you do?
1. Understand
organisational
priorities and anchor
to them
2. Understand
Business Case
trade-offs and
opportunities
3. Have a
sustainability
management
approach for the
project
4. Integrate
sustainability into
reporting
5. Integrate
sustainability into
controls
6. Lead by example.
Don’t wait to be told
Editor's Notes
Sustainability has moved from something that hippies in the 60s and 70s campaigned for to being championed by the UN in the 80s to now permeating every aspect of our lives. It can no longer be an add-on to project management or project thinking, but fully embedded in everything we do.
What is sustainability
In 1987, the United Nations Brundtland Commission defined sustainability as “meeting the needs of the present without compromising the ability of future generations to meet their own needs.”
Heatwaves etc
1976 summer was once in a childhood. Lasted many weeks, but wasn’t particularly hot. Last year’s 40c felt like a one-off. Now 46c in Italy this summer.
Thames Barrier flood defence. Plan to upgrade in 2065 due to rising sea levels. Now needed by 2050.
In Pakistan the flood issue is not 2050, but now. 2019, 2022 and 2023 floods. 12% of their land was under water.
When we think about sustainability many people will think of environmental sustainability and climate change in particular and global warming more specifically. We then think about carbon reduction in terms of what it means for our projects.
But it’s more than that.
There are 17 SDGs
I will highlight just three to illustrate why good governance of projects is essential.
Generational equality. Developed vs developing. If 37% of developing countries want the roads that the developed world has, they’ll need more steel and concrete and therefore more carbon.
It is clear we need to improve the infrastructure, but how can we do so without being part of the problem.
Consumption is still accelerating. Needs to plateau and then reduce (per capita).
We can easily reduce consumption simply by reducing waste.
Example of my house build.
Reducing waste is good for business.
Currently $90bn spent annually and increasing rapidly.
Mark Carney at COP26 convened the Glasgow Financial Alliance for Net Zero (GFANZ) was created to meet enormous investment needs that could total over $100 trillion over the next three decades. Bringing together over 250 financial institutions responsible for $80 trillion in assets and anchored in COP’s Race to Zero, GFANZ is the gold standard for financial sector commitments to sustainability.
Task Force on Climate-related Financial Disclosures (TCFD). Most large corporates now include this in their annual reports.
Scope 1, 2, 3 emissions reporting now prevalent across all orgs.
Scope 1 (generated), scope 2 (energy used), scope 3 (supply chain).
Threat or opportunity
Threat if you do nothing.
Opportunity if you do something.
All about choices.
Also about consistency between choices (e.g. apples to apples on carbon accounting)
We will need to change appraisal methods, particular discounted cashflow which values a benefit today greater than a benefit tomorrow (therefore a life today greater than a life tomorrow).
Should carbon be included in all business cases. Should we set a limit at portfolio level by organisation and then trade carbon at a fair market price.
IPA’s Transforming Infrastructure Performance (TIP) strategic puts the delivery of the SDGs as the very purpose of infrastructure.
HS2 has diesel free construction sites.
Environment Agency’s Boston Barrier project included reporting on SDGs as part of its project reporting.
Controls aligned to priorities otherwise delivery decisions not aligned to scoping decisions.
Whole-life cost.
Social Value Toolkit
IPA’s outcome profiles.
A project output that provides future options is more sustainable. Do you have an ‘off ramp’ for your project or your project output?
Facilitation
Small groups to discuss each of the above points. With a ‘governance’ lens, take one each and develop…..
Ideas for own project.
Ideas for organisation.
Ideas for the profession.
Present your best two ideas for each bullet.