scott losee - infrastructure sustainability council of australia - implementing sustainability into...
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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/assetmgmt2013TRANSCRIPT
Advancing sustainability in infrastructure planning, procurement, delivery and operation.
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.
Tunnel energy use Electricity Demand
Ven$la$on
Ligh$ng
Presurisa$on fans
Pumps
Legacy Way example
22,873 MWh pa
21,513 tCO2-‐e pa
=1,434 Households
Emergence of infrastructure sustainability rating schemes
UK Australia United States
Interna6onal
• Member based, not-‐for-‐profit • > 80 member organisa$ons • Employing ~ 70,000 people • >$5M invested by industry
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Introducing ISCA…
'Advancing sustainability in infrastructure planning, procurement, delivery and opera8on'
ISCA members
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ISCA members (cont’d)
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ISCA Board and operations team
David Singleton Chairman
Mark Rogers Deputy Chairman
Sco@ Lambert Company Secretary
Russel Cu@ler Director
Anne Davis Director
Nick Fleming Director
Menno Henneveld Director
Sco@ Losee Director
Penny Townley Director
Jayne Whitney Director
Eva Wang Bookkeeper / Administra6on
Tim Carter Coordinator
Vacancy Technical Advisor
Rick Walters Technical Director
Antony Sprigg Chief Execu6ve Officer
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A photovoltaic noise barrier runs alongside the A22 autostrada at Brennero in Italy, World Highways, 2012 hTp://www.worldhighways.com/sec$ons/irf/features/photovoltaic-‐noise-‐barriers/
Innova$on
Verifica$on
Consistency
Benchmarking
Differen$a$on
Risk management
Sources of business value
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Cost efficiency Cost savings
Margin improvement
Market valuation multiple
Increased profit
Total shareholder return
Sustainability impact
Value creation levers
Free cash flow
Sources of business value
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New markets Increased market
share
Employee engagement
Social license to operate
Reduced risk
Cost efficiency
Improved reputation
New sources of revenue
Productivity
Brand strength Risk premium
Access to capital
Cost savings
Pricing power
Revenue growth
Margin improvement
Market valuation multiple
Increased profit
Total shareholder return
Sustainability impact
Value creation levers
Adapted from Berns et al., 2009, The Business of Sustainability, MIT Sloan, BCG.
Free cash flow
IS Scheme Ratings and the Brand
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Infrastructure Types
Transport • Airports • Cycleways & Footpaths • Ports & Harbours • Roads • Railways
Communica6on • Communica$on Networks
Water • Sewerage & Drainage • Storage & Supply
Energy • Electricity Transmission &
Distribu$on • Gas Pipelines
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IS rating scheme
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IS themes and categories
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Themes Categories
Management and Governance Management Systems Procurement and Purchasing Climate Change Adapta$on
Using Resources Energy and Carbon Water Materials
Emissions, Pollu$on and Waste Discharges to Air, Land and Water Land Waste
Ecology Ecology
People and Place
Community Health, Well-‐being and Safety Heritage Stakeholder Par$cipa$on Urban and Landscape Design
Innova$on Innova$on
IS themes and categories
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Themes Categories
Management and Governance Management Systems Procurement and Purchasing Climate Change Adapta$on
Using Resources Energy and Carbon Water Materials
Emissions, Pollu$on and Waste Discharges to Air, Land and Water Land Waste
Ecology Ecology
People and Place
Community Health, Well-‐being and Safety Heritage Stakeholder Par$cipa$on Urban and Landscape Design
Innova$on Innova$on
IS themes and categories
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Themes Categories
Management and Governance Management Systems Procurement and Purchasing Climate Change Adapta$on
Using Resources Energy and Carbon Water Materials
Emissions, Pollu$on and Waste Discharges to Air, Land and Water Land Waste
Ecology Ecology
People and Place
Community Health, Well-‐being and Safety Heritage Stakeholder Par$cipa$on Urban and Landscape Design
Innova$on Innova$on
IS themes and categories
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Themes Categories
Management and Governance Management Systems Procurement and Purchasing Climate Change Adapta$on
Using Resources Energy and Carbon Water Materials
Emissions, Pollu$on and Waste Discharges to Air, Land and Water Land Waste
Ecology Ecology
People and Place
Community Health, Well-‐being and Safety Heritage Stakeholder Par$cipa$on Urban and Landscape Design
Innova$on Innova$on
IS themes and categories
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Themes Categories
Management and Governance Management Systems Procurement and Purchasing Climate Change Adapta$on
Using Resources Energy and Carbon Water Materials
Emissions, Pollu$on and Waste Discharges to Air, Land and Water Land Waste
Ecology Ecology
People and Place
Community Health, Well-‐being and Safety Heritage Stakeholder Par$cipa$on Urban and Landscape Design
Innova$on Innova$on
IS themes and categories
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Themes Categories
Management and Governance Management Systems Procurement and Purchasing Climate Change Adapta$on
Using Resources Energy and Carbon Water Materials
Emissions, Pollu$on and Waste Discharges to Air, Land and Water Land Waste
Ecology Ecology
People and Place
Community Health, Well-‐being and Safety Heritage Stakeholder Par$cipa$on Urban and Landscape Design
Innova$on Innova$on
Benchmarking
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Beyond Compliance
Level 1 Good
Level 2 Excellent
Level 3 Leading
Business as Usual
Measurement Implemen6ng Ini6a6ves
No net impact Restora6on & Enhancement
Compliance
Level of Performance
Certified rating Whitsunday STP Upgrades
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Proponent: Whitsunday Regional Council
Contractor: Tenix
Infrastructure Type: Sewage treatment
Ra6ng Type: Design
Loca6on: Whitsundays, QLD
Capital Value: $45m
Start Date: May 2012
Prac6cal Comple6on: May 2014
Upgrade of 2 treatment plants at Proserpine and Cannonvale to serve growing communi$es and meet stringent effluent discharge requirements to protect the GBR. They will also reduce sewage overflows, and improve noise and odour
Tenix CEO Ross Taylor, and Whitsunday Regional Council Mayor Jennifer Whitney
23 SOURCE: www.tenix.com
Great Eastern Highway Upgrade A 4.2km sec$on of the Great Eastern Highway between Kooyong Road and Tonkin Highway widened from four to six lanes with a number of ancillary improvements including central medians, upgraded intersec$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: $350 million
Start Date: July 2011
Prac6cal Comple6on: March 2013
Great Eastern Highway Upgrade – Highlights
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Category/ Credit Score Achievements
Management Systems 6.3/10.5
• Commitment to mi$ga$ng nega$ve environmental, social and economic impacts
• Accredited management systems • Thorough risk and opportunity assessment • Knowledge sharing clearly demonstrated • Strong decision making approach incorpora$ng sustainability aspects
Water 2.9/7.0
• Opportuni$es to reduce water use iden$fied and implemented
• Instead of using high-‐value potable water, the project installed groundwater bores and constructed a weir which, on comple$on, was handed to the local council to irrigate parks.
Great Eastern Highway Upgrade – Highlights
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Category/ Credit Score Achievements
Materials 6.2/7.0
• Significant reduc$on in materials lifecycle impacts through extensive use of recycled materials, reducing the use of non-‐renewable resources of limestone, sand and bitumen
• The highway now has the largest use of recycled material on any WA State road with 43 per cent of imported material being recycled
Previous Land Use 3.3/3.3 • >75% of land used for the project was previously
disturbed
Heritage 2.3/5.0 • Thorough approach to heritage assessment and management
• Monitoring overseen by appropriately qualified persons
Great Eastern Highway Upgrade – Highlights
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Category/ Credit Score Achievements
Innova6on 1.7/5.0
• Warm mix asphalt was used on the project, applying innova$ve foaming technology to mix the bitumen into the asphalt mix
• This was a first for Western Australia, reducing energy use and GHG emissions
Case study: application of the IS operation rating
• 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?
Why this project?
• 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
Why local roads?
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 >$100 Billion)
• Common language • Waste/cost reduc$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
General IS benefits
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Photo: City East Alliance, Great Eastern Highway Upgrade, Kooyong Road to Tonkin Highway, hTp://www.cityeastalliance.com.au/ gallery/images/august/
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.'
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'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.'
Trade-offs
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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
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Infrastructure projects and IS ratings
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Enlarged Cotter Dam
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Proponent: ACTEW
Contractor: Bulk Water Alliance (JHG, Abigroup, GHD, ACTEW)
Infrastructure Type: Water Storage & Supply
Ra6ng Type: As Built
Loca6on: ACT
Capital Value: $299m
Start Date: 2008
Prac6cal Comple6on: 2013
An Enlarged CoTer Dam is being built downstream of the exis$ng dam to increase the CoTer Reservoir’s capacity from 4GL to 78GL. The Enlarged CoTer Dam forms part of ACTEW’s con$nued response to ensuring a secure water supply for the ACT and to address drought, climate change and variability.
North West Rail Link
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Proponent: Transport for NSW
Design, Construc6on and Opera6on: Four packages of works
Infrastructure Type: Railway and associated infrastructure
Ra6ng Type: Design, As Built, Opera$on
Loca6on: NW Sydney, NSW
Capital Value: $8.3bn
Start Date: Q2 2011
Prac6cal Comple6on: 2019
The North West Rail Link is a priority rail infrastructure project for the NSW Government. Eight new railway sta$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: GoldLinQ
Contractor: McConnell Dowell
Infrastructure Type: Light Rail
Ra6ng Type: As Built
Loca6on: QLD
Capital Value: $437m
Start Date: Jan 2012
Prac6cal Comple6on: 2014
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Development of a light rail system that passes through key health, educa$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$onal centres of Southport, Surfers Paradise and Broadbeach.
Gold Coast Light Rail (Stage 1)
Take-away messages
• Exci$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
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Advancing sustainability in infrastructure planning, procurement, delivery and operation.
0488 592 555 PO Box Q80 QBV NSW 1230 [email protected] www.isca.org.au
Thank you
Scott Losee BES MPhil MEIANZ
Consultant ABN 42 665 869 451
0404 467 228 54 Boronia Ave, Holland Park West, Queensland, Australia, 4121