Driving Sustainable Solutions in Australian Infrastructure National Local Government Asset Management and Public Works Engineering Conference Doug Harland Melbourne 13.05.2010 1

Sustainability has now become a Strategic Issue for Business Past Eras: The IT era Quality era The Safety era These eras, now business as usual resulted in significant business and cultural changes. The New Era: SUSTAINABILITY Global resource depletion, Climate Change, species extinction rates and population and consumption growth have platformed a widespread and growing awareness for the need to urgently change human activity and behaviours to a more sustainable model. 2

How is Sustainability Defined? Engineers Australia has defined ESD based on Bruntland as: “Development that meets the needs of the present, without compromising the ability of future generations to meet their own needs.” A broader definition other than Ecological Sustainable Development is needed, and this is currently subject to much debate globally. “An activity you can do forever” – Steve Posselt (Intergenerational responsibility) AGIC provides one solution to infrastructure sustainability 3

AGIC’s Tool’s Three Dimensions Natural Capital Economic Capital Social Capital The Three Issues to Manage - People 4

The AGIC Sustainability Scheme is a World’s first Do any other Sustainability Assessment Schemes Exist? Green Star Australia Buildings (design) NABERS/ABGR Buildings (operation) BREEAM UK Buildings NEAT Health Facilities LEED USA CEEQUAL Civil Engineering (AUS $22.0bn certified in 5 Years) VicRoads/TCI Roads FIDIC’s PSM Global Development projects Arup’s SPeAR© All projects ASCE & WCCE have recognized the need – AGIC is a world’s first. 5

Voluntary Rating Schemes Drive Change Consider means to improve energy efficiency in buildings 6

Mandatory Schemes Only Encourage Compliance Effects of introducing minimum compliance standards Study Conclusion: Mean Fell! 7

Market efficiency achieved by the Green Star Rating Scheme Voluntary Rating Schemes Drive Change as Result of a Competitive Market Market efficiency achieved by the Green Star Rating Scheme Industry practitioners have the view this will be replicated for infrastructure 8

The AGIC Tool Categories AGIC Infrastructure Sustainability Assessment Categories Project Management & Governance. Economic Performance. Using Resources. Emissions, Pollution & Waste. Biodiversity. People & Place. Workforce. A total of 27 sub-categories within the 7 categories above were developed through industry engagement and AGIC working groups. 9

The 27 Assessment Sub - Categories 4.4 Waste management 5.1 Functioning ecosystems 5.2 Enhanced biodiversity 6.1 Health, wellbeing, safety 6.2 Natural & cultural heritage values 6.3 Participatory processes 6.4 Positive legacy for current & future generations 6.5 Enhanced urban & landscape design & aesthetics 6.6 knowledge sharing, shared intellectual property 7.1 Safety, health & well being of workforce 7.2 Capacity building 7.3 Increased knowledge of applied sustainability 7.4 Equity 1.1 Purchase & procurement 1.2 Reporting and responsibilities 1.3 Making decisions 1.4 Climate change vulnerability 1.5 Knowledge Sharing & capacity building 2.1 Value for money 2.2 Due diligence 2.3 Economic life 3.1 Energy use 3.2 Water 3.3 Material selection & use 4.1 Greenhouse gas management 4.2 Discharges to air, water and land 4.3 Land management 10

Infrastructure Types Covered by The AGIC Scheme Roads and tunnels. Railways and bridges. Airports. Ports and marinas. Cycle and pedestrian pathways. Distribution grids. Telecommunication infrastructure. Water and wastewater supply and treatment infrastructure Civil engineering head works of industrial processes. 11

The Benefits of a National Sustainability Assessment Framework Alignment of stakeholders: Investors – Greenfield projects & brownfield asset assessment Government- tender review & project management Designers Consultants Contractors Owner operators / Suppliers The adoption of a national common framework will reduce tendering costs and it is a vehicle for real cultural change. It will yield a common national language and understanding and also bring a focus on key issues that facilitates the optimization of resources with resultant cost savings 12

Project Assessment / Rating Stages Design Construct Operation AWARD AWARD AWARD Interim AGIC Rating for Design AGIC Rating for As Built / Construction Infrastructure Rating for Project (On going review) (Badging yet to be decided) 13

Likely Impacts on Projects & Asset Upgrades Pre project commencement briefings of all stakeholders Metrics will be developed for each of the assessment sub categories Whole of life – cradle to cradle considerations Increased use of recycled materials & improved waste management Optimisation of the transport of materials Climate Change impact considerations (Increased frequency & intensity of events) A focus on water consumption during construction & operation Energy (Carbon) measurement – (GHG, Direct & embodied energy) Increased regional procurement and employment Long term transportation changes – people & freight 14

A Quote from Main Roads WA “Main Roads WA (MRWA) views the AGIC, with its innovation focus, as providing us an important framework for consideration within our forward 2K12 Strategy.......to move the organisations culture from a “business-as-usual” approach to a commitment to go “beyond best practice” in highway delivery and maintenance towards “achieving excellence”. This focus has already resulted in a number of projects, especially our recent major freeway extension being completed ahead of schedule and below budget with on-going recognition of its sustainability initiatives. MRWA, as a recent member of AGIC looks forward to AGIC’s leadership furthering this “innovative framework” with its new tools and sustainability initiatives, providing a platform for the efficiency and productivity gains we all seek. I look forward to enhancing our already strong relationship further towards our mutual goals. Tony Missikos- Director, Strategic Relationships - Office of the Commissioner Main Roads WA. 15

A Quote from the Civil Contractors Federation “The AGIC scheme is regarded by CCF as an excellent means to advance the development of governance systems that stimulate continuous improvement programs and innovation on an ongoing basis in all areas of infrastructure construction activity. CCF views the scheme as a vehicle for future productivity improvement” Chris White - Chief Executive Officer - Civil Contractor’s Association 16

AGIC Foundation Members 17

AGIC website –www.agic.net.au THANK YOU 18