Sustainability is now fundamentally changing the entire infrastructure landscape. There will be no room for sustainability laggards who remain focused on only schedule and budget.
Sustainability, like its predecessor’s technology and safety, has moved from sitting in a siloed department to now touching every part of a project or the project lifecycle. It is both a strategic risk and opportunity for projects, with slow action revealing not just a weakness in sustainability thinking, but also the strategic capability of leaders.
Many publicly listed organisations have already begun voluntary sustainability reporting. This includes how they manage sustainability and climate change risk in line with global recommendations from the Financial Stability Board’s Task Force on Climate-related Financial Disclosures. Their decision to start comes in preparation for regulatory changes. These are likely to become mandatory and the International Financial Reporting Standards is driving a level of rigour and integrity around sustainability performance and financial benchmarking that hasn’t been seen before.
Similarly, the newly released Taskforce for Nature-related Financial Disclosure framework outlines reporting requirements on an organisation’s progress towards the adoption of nature positive practices.
Not all sustainability efforts are created equal
Another challenge for designing and delivering major projects is the quality of sustainability actions that are identified and accepted. There’s been a big shift towards sustainability, together with a desire by businesses, industries and individuals for more sustainable living: however, society is at the point where scepticism is creeping in as people no longer take promises at face value.
Stakeholders are seeking verification of impact – as an example a trend that is becoming clear in carbon markets where there is now a price separation for different forms of carbon offsets. A premium already exists for higher integrity projects where there is high confidence that carbon is removed from the atmosphere and stays removed.
The legacy ambition for infrastructure: What does it take to deliver?
Major projects and their leaders leave a legacy. Those organisations that think about leadership skills and their transition across major assets and infrastructure have the superpower to deliver projects well, and sustainably.
Transportation
Our transportation networks, which facilitate the movement of both people and goods, are one of the world’s largest economic ecosystems and have a fundamental role to play in shifting the sustainability dial.
Improved sustainability is being demanded within all major modes of transport, driven by a growing awareness of the impact from both vehicle emissions and construction materials. Protecting both communities and the environment will only be achieved through a combination of renewable energy use, alternative and circular material usage, more efficient use of the networks, and building less through digital and AI driven design and construction methods. Alternative and reduced energy use, along with different design and construction methods, promote holistic systems thinking to protect and preserve communities and the environment.
The most significant impact transportation can make is by reducing operational emissions from car and truck fleets, as well as those related to road freight, shipping, and aviation. Lessons can be learnt from the resources industry, where some of the largest trucks, plant and equipment in the world are transitioning to electric or hydrogen fuel cells.
Another key potential impact is to continue to push for mode shift onto more sustainable transportation systems including both public active transport, which will enable a more efficient use of our networks and also speed up emissions reductions as these fleets transition to renewable fuel sources.
In construction, we also must look to the use of more efficient design and construction methods. In Victoria, the change of bridge structure from a traditional concrete span bridge to a steel network arch bridge brought a 39 per cent reduction in embodied carbons. Additionally, the modular prefabrication of some bridge components helped reduce construction waste.
Long-term value creation and competitive advantage
Sustainability will increasingly drive the direction of capital investment through value creation, establishing the way organisations define value, manage risk, construct portfolios, design projects, and engage with stakeholders. Businesses that prioritise sustainability often attract and retain top talent, strengthen stakeholder trust, and foster long-term relationships with customers and communities.
Major projects, and their leaders, that champion transparency and demonstrate responsiveness to stakeholders will attract investment more effectively. They will also realise their own, and society’s, ambition to make choices which are more sustainable; economically, socially, and environmentally.
Scott Smith (he/him)
Managing Director, Transportation – Australia, Aurecon
scott.smith@aurecongroup.com