The FIDIC State of the World Report 2012 was commissioned by the FIDIC Executive Committee, comprising: Geoff French, URS, UK (President); Pablo Bueno, Typsa, Spain (Vice President); Andreas Gobiet, Gobiet & Partners, Austria; Jae-Wan Lee, Sekwang Engineering Consultants, Korea; Akihiko Hirotani, Oriental Consultants, Japan; Bisher Jardaneh, Arabtech Jardaneh Group, Jordan; Chris Newcomb, McElhanney Consulting Services, Canada; Alain Bentéjac, Coteba, France; Kaj Möller, SWECO, Sweden. The Report was compiled by Professor Peter Guthrie, Professor of Engineering for Sustainable Development, and Thalia Konaris, Centre for Sustainable Development, University of Cambridge, UK, with contributions from Geoff French, URS, UK; John Boyd, Golder Associates, Canada; Jean Felix, Syntec Ingénierie, France; Enrico Vink and François Baillon (FIDIC Secretariat). Disclaimer The views expressed are endorsed by FIDIC, and while FIDIC aims to ensure that its publications represent the best in business practice, the federation accepts or assumes no liability or responsibililty for any events or the consequences thereof that derive from the use of its publications. FIDIC publications are provided ‘as is’, without warranty of any kind, either express or implied, including, without limitation, warranties of merchantability, fitness for a particular purpose and non-infringement. FIDIC publications are not exhaustive and are only intended to provide general guidance. They should not be relied upon in a specific situation or issue. FIDIC is the international Federation of national Member Associations of FIDIC’s contracts and consulting engineers. agreements are recognised internationally as the industry standard for infrastructure, civil FIDIC was founded in 1913 by three national associations of consulting engineering and construction. engineers within Europe. The objectives of forming the Federation They have been adopted by were to promote in common the professional interests of the Member the mutilateral development Associations, and to disseminate information of interest to their members. banks, by bilateral aid Today, FIDIC membership covers more than 90 countries from all parts agencies, national of the globe and encompassing most consulting engineers in private governments, procurement practice. authorities, and by private clients in all sectors. FIDIC is charged with promoting and implementing the consulting FIDIC works contracts cover the full range of engineering industry’s strategic goals on behalf of Member Associations. infrastructure projects - from relatively short construction-time projects to design-build-operate Its strategic objectives are to: represent world-wide the majority of firms projects combining design, construction and providing technology-based intellectual services for the built and natural long-term operation and maintenance. environment; assist members with issues relating to business practice; define and actively promote conformance to a code of ethics; enhance FIDIC professional services agreements are the image of consulting engineers as leaders and wealth creators in based upon the FIDIC Client/Consultant Model society; promote the commitment to sustainability. Services Agreement. Together with agreements for joint ventures, and subconsultants, they are widely used in the public and private sectors. FIDIC arranges seminars, conferences and other events in the furtherance of its goals: maintenance of high ethical and professional standards; FIDIC is the authority on business practice exchange of views and information; discussion of problems of mutual for the consulting engineering concern among Member Associations and representatives of the industry. The Federation international financial institutions; development of the consulting develops and disseminates engineering industry in developing countries. policies, guidance and training materials for firms supplying technology-based FIDIC members endorse FIDIC’s statutes and policy statements and intellectual services for the built comply with FIDIC’s Code of Ethics which calls for professional and natural environment. competence, impartial advice and open and fair competition. Procurement FIDIC, in the furtherance of its goals, publishes international standard Consultant selection forms of contracts and agreements for works and for clients, consultants, Risk management sub-consultants, joint ventures and representatives, together with related Scope of services materials such as standard pre-qualification forms. Quality management Quality of construction Business integrity FIDIC also publishes business practice documents such as policy Environmental statements, position papers, guides, guidelines, training manuals and management training resource kits in the areas of management systems and business Project sustainability processes. Insurance Capacity building Transfer of technology Professional liability FIDIC organises the FIDIC World Consulting Engineering Conference Information technology and an extensive programme of seminars, conferences, capacity building Project management workshops and training courses. TABLE OF CONTENTS Executive Summary 1 ❚ Why decision-making? 2 ❚ Sustainability - Risk, Resilience and Opportunity 3 ❚ Sustainability Tools 4 Chapter 1 - What is Sustainability 6 ❚ Why focus on decision-making 6 ❚ Sustainable Decision-making hierarchy 6 ❚ Case Study 1 Olympic Games - London 2012 9 ❚ Case Study 2 Swedish SymbioCity Approach 10 Chapter 2 - Sustainability - Risk, Resilience and Opportunity 11 ❚ Risk 11 ❚ Resilience 14 ❚ Opportunity 15 Chapter 3 - Sustainability Tools 16 ❚ Overview 16 ❚ Decision - Support Tools 18 ❚ Rating & Certification Tools 24 ❚ Calculators 31 ❚ Guidelines 33 Chapter 4 - FIDIC’s Role 34 Appendix I - Sustainability Calculators 35 Appendix II - Useful Sustainability Guidelines 39 Executive Summary Maintaining and improving our Quality of Life today Following on from these developments, this State of offers many new challenges and opportunities. This the World 2012 Report ‘Sustainable Infrastructure’ report sets out to make sense of sustainable development presents FIDIC’s belief that these challenges can only in the context of key infrastructure. It describes how be addressed by having a clear view of sustainability in decisions might be made towards a sustainable future in infrastructure development. our societal fabric, of roads, railways, ports and airports, in water and wastewater, and in power generation. In Sustainable development is derived from the Brundtland other words, in all that underpins society worldwide. definition and embraces respect for environmental concerns, social fairness, and future generations whilst In 2009, the International Federation of Consulting acknowledging the realities of economic drivers. Engineers (FIDIC), released the ‘State of the World: FIDIC Infrastructure Report 2009’, to raise awareness Infrastructure needs to deliver its service over its lifetime, of the increasingly complex challenges being faced by efficiently and reliably, and it needs to be adaptable the infrastructure sector today. These include economic and resilient to change and shock. This implies assets crises, global urbanisation, non-renewable resource with a long useful life, with minimum reliance on depletion, water scarcity, climate change, waste non-renewable resources, with maximum benefit to management and increasingly complex disasters, which society and the environment and which contribute to, threaten the resilience of critical infrastructure and rather than endanger, economic prosperity in the long services globally. A key message resonating through term. At its core, sustainable development is a way to the report was the leading role that the consulting express society’s demand for all aspects of decisions to engineering industry has to play in tackling these be taken into account, not to allow narrow interests to challenges. The Report offered constructive examples as avoid consideration of the full implications of decisions. to how that can be achieved. It is a modern expression of the ambition to act responsibly, fairly, effectively, efficiently, sensitively, and In parallel, through the publication of their Project with a view to the long term. Sustainability Management Guidelines (PSM) in 2004 FIDIC began the process of making a significant The approach of sustainable development offers a contribution internationally to the global arena of systematic perspective which is crucial for embracing emerging sustainability guidelines and tools for the complexity, balancing tradeoffs and managing infrastructure sector. Such tools use internationally competing priorities that are in the nature of modern recognised sustainability indicators, calculation infrastructure projects. Sustainability is not responsible methodologies and green technologies to guide project for this complexity or trade-offs, rather it brings them teams reliably towards sustainable project design together so that informed decisions can be made early. and execution. The 2004 PSM framework proposed a set of core project sustainability issues traceable to Sustainability ensures that risks to infrastructure the overall sustainability indicators endorsed by the assets and services are predicted early and mitigated world’s governments as the basis for Agenda 21, an against. Furthermore, its systematic perspective enables internationally agreed global action plan by the UN consideration of risks occurring when systems individually for sustainable