Antony Sprigg CEO

1. ‘The Infrastructure Sustainability Rating System and its use by Councils’ Antony Sprigg CEO • April 2016

2. Sustainability needs to be sustainable!! Street Artist 'Megx' Creates Giant Lego Bridge in Germany by Christopher Jobson on July 5, 2012

3. Calibration conversation… Sustainability is TBL, not just environmental Sustainability adds value not cost Addressing sustainability reduces risk IS rating scheme is a community of practice IS rating scheme may increase productivity

4. Holistic approach in sustainability Benchmark, evaluate and gap analyse for TBL aspects in the business case for a new infrastructure project. Identifies and incorporates high value sustainability considerations early and informs procurement. Inform/challenge master plan through TBL performance assessment of the proposed underpinning infrastructure. A ‘bottom up’ applied sustainability tool and management framework which can be used to benchmark asset performance and inform continuous improvement. A TBL performance framework to assess and identify sustainability objectives, targets and innovations pretender by client and as part of tender response by tenderers. An integrated framework which encourages ‘centralising’ of sustainability ownership, increasing the likelihood of unlocking design solutions which can meet both fit for purpose, cost and sustainability whole of life expectations and outcomes. An industry developed best practise standard for applied sustainability in construction associated with civil and infrastructure projects.

5. Social LicenceCSR Initiative at the Harvard Kennedy School, 2014 Types of costs from lost social licence: Security, Project modification, Risk management, Material damage, Lost productivity, Capital, Personnel, Reputation, Redress MELBOURNE'S East West Link project has been declared dead for a price of $339 million, but the true cost for Victorian taxpayers may be up to $900 million. Apr 15, 2015 A fundamental social and economic issue, where stakeholders often leverage environmental impacts (real or perceived) for personal/political gain.

6. Risk of Climate ChangeThe Climate Council, 2014 • Australia’s infrastructure has been built for the climate of the 20th century and is unprepared for rising sea level. • A sea-level rise of only 0.5 m would, on average, mean that a 1-in-a-100 year flood—a very rare event today—would occur every few months. • Sea level rise of 1.1m would put $67B of road and rail assets at risk.

7. Join the community

8. Project ProductivityDeloitte Access Economics, 2015 • There are big opportunities for more efficient procurement • Reduce the costs of projects by 5.4%, comprised of: • direct price increases of 3.6% • indirect price increases of 1.5% from reduced competition • inefficient costs of bidding worth 0.3% of project prices • Reduce delays to projects by 7% • Improve the quality of projects by 7% • Governance sustainability issue primarily associated with poor decision making, lack of transparency misaligned roles and responsibilities resulting in reduced productivity. An opportunity to integrate project excellence.

9. Industry traction Registrations Capital Value $79.2 billion Projects / Assets 53 78

10. IS registrations by rating type Certified IS Operation Certified IS Design Completed Planning Certified IS As Built 6 2 4 7 Capital Value $2.8 billion Capital Value $2.2 billion Capital Value $7.1 billion Registered IS As Built Registered IS Design Registered Planning Registered IS Operation 6 9 14 28 Capital Value $32.8 billion Capital Value $2.5 billion Capital Value $47.1 billion

11. IS registrations by location

12. IS registrations by asset type

13. How IS helps • Common national language for sustainability in infrastructure • Consistent application and evaluation of sustainability in tendering processes • Scoping whole-of-life sustainability risks for projects and assets, enabling smarter solutions that reduce risks and costs • Fosters resource efficiency and waste reduction, reducing costs • Fosters innovation and continuous improvement • Builds an organization’s credentials and reputation in its approach to sustainability in infrastructure

14. Local Government involvement Whitsundays Greater Shepparton City of Sydney Queanbeyan Canberra Queensland Urban Utility Parkes Shire Panuku Auckland

15. How we help you • IS rating scheme comprises • IS Scorecard • IS Materials Calculator • IS Technical Manual • Assessment process involves • Registration • Assessment support • Independent verification • Certification and rating award • Education and training programmes • ISCA Case Manager • You are not alone!

16. IS Themes & Categories

17. Improvements for Local Government Small project customisations in 25 of 44 credits Benchmarking operations Program approach for operational assets and capital works programs

18. Small Projects Specific guidance for small projects (<$20m) Customisations in 25 of 44 credits Adjusts the credits to suit small projects Highlighted throughout Technical Manual Benefits – reduced evidence burden, enhanced value add

19. Weightings Assessment Addresses concerns about whether the default weightings are suitable for all infrastructure Supports identification of the most material sustainability issues Results in adjustments to weightings within the tool to tailor and focus the tool to the project/assets stakeholders and context Weightings transfer to the scorecard Benefits – tailored approach, enhanced value add

20. Scaled credits Ene-1, Wat-1, Wat-2, Mat-1, Lan-1, Eco-1 V1.1 had (up to) three fixed Levels for credits V1.2 scaled credits allow for fractions of Levels to be achieved on a sliding scale Provides encouragement to pursue every improvement opportunity possible Benefit - enhanced value add

21. Other Improvements

22. How is the IS rating scheme relevant to asset management? Key aspects: Performance benchmarking and reporting Risk management Sustainability and asset management systems Business case for sustainability initiatives

23. Setting KPIs and benchmark reporting Identifying and setting KRAs and KPIs Consistently benchmarking performance Effective corporate social responsibility Identifying and managing initiatives

24. Holistic risk management Providing a collaborative model Facilitating better decision making Whole of life approach Facilitating development of next steps

25. Incorporating sustainability into asset management systems Sustainability is often seen as an add on to existing systems … but should be seen as: Efficiencies across the quadruple bottom line Improve payback periods by applying a holistic view Support continuous improvement and improved service provisions Extend asset life

26. Case studies of IS certified projects and assets Case studies

27. Auckland Airport IS Operations Pilot Asset owner is using IS Operations to benchmark current airport assets to establish objectives and targets for on-going maintenance and operations and also to inform the new airport master plan.

28. Madden and Pakenham St Road UpgradeIS Design rating $13m Waterfront Auckland applying IS to 2 early smaller road and drainage projects. Looking at how IS can be used to feed into broader development sustainability objectives. Influencing procurement and asset handover considerations. Adding value corporately.

29. Yarra Park Water Recycling FacilityIS Operations pilot Asset operator used IS to benchmark current asset performance and to demonstrate that performance to owner.

30. Whitsundays STP Upgrades (QLD)IS Design and As Built ratings • $45m upgrade of two treatment plants at Proserpine and Cannonvale • First certified Design rating • First project/asset to achieve an IS Design and As Built rating • >$1 million saved through implementation of sustainability initiatives. • Total saved in construction = $1.1M • Total annual operational savings = $182,000 • 50% of total spend in Whitsunday region • 30% of total spend in greater Queensland • ROI = >400% • 305 MWh electricity saved over operational life – thus a 14% reduction equating to $75,000 saving/year • Use of B20 Biodiesel avoiding 272 tCO2-e (cost neutral) • Ecological value enhanced through >5,000 m2 of regenerated native habitat and 1000 m2 of wetland • World first use of innovative nitrogen effluent removal technology

31. Whitsundays STP Upgrades (QLD)IS Design and As Built ratings Costs Benefits

32. Great Eastern Highway Upgrade IS As Built rating A 4.2km section 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 intersections, on road cycling facilities, bus priority lanes and continuous paths for pedestrians.

33. North-South Corridor (SA)Torrens Road to River Torrens The Torrens Road to River Torrens project includes a 3.7km upgrade of South Road incorporating a 1.4km long non-stop lowered road (8m below ground level) and aims to improve travel efficiency for north-south traffic through Adelaide’s metropolitan area. It also includes a rail overpass, improving pedestrian and cycling facilities and other intersection upgrades. INSERT IMAGE Graphical representation

34. North-South Corridor (SA)Torrens Road to River Torrens • Project was registered to receive support during the project development phase, specifically the procurement phase. • DPTI registered to help drive sustainability initiatives • sustainability is a key consideration in the design and delivery of the project. • As a trial project to provide a sustainable performance baseline for future projects and to gain an understanding of the costs and benefits associated implementing the IS rating scheme

35. Non-road Diesel Air Emission Case StudiesNSW EPA and ISCA project

36. What’s next Benchmark your operations Register capital works programs Join the community Reap the rewards!