Follow us:
Subscribe to our newsletter or print magazine

Build Australia: A construction Magazine logo

  • News
  • Projects
  • Grand Designs
  • Mega Structures
  • Events
  • Products and Services
  • Online Magazine
  • Advertise
  • Contact
Home
  • News
  • Projects
  • Grand Designs
  • Mega Structures
  • Events
  • Products and Services
  • Online Magazine
  • Advertise
  • Contact
  • Report helps break down barriers for women on work sites
  • QBCC review findings to strengthen building industry regulation
  • Australia’s social housing shrinks as demand surges 
  • NSW major projects infrastructure pipeline updated

Economic rebound could be aided by sustainable infrastructure

30 Apr, 2020
454
sustainable infrastructure



Infrastructure will play a central role in Australia’s economic recovery – and sustainable infrastructure can deliver an even bigger rebound, finds new research commissioned by the Australian Infrastructure Sustainability Council (ISCA).

ISCA’s study, IS Rating Scheme Return on Investment, finds infrastructure projects rated under the IS Rating Scheme will deliver up to $2.40 in benefit for every dollar spent.

According to Ainsley Simpson, Chief Executive Officer of ISCA, the economic multiplier effect for infrastructure expenditure is well documented – but this fresh research underscores an even bigger upside.

“Over the next few years, infrastructure will play a mission critical role in our economic rebound – but we must ensure the money we spend today can be leveraged to maximise environmental, social, cultural and economic benefits tomorrow,” Ms Simpson says.

“Governments know that public infrastructure is a great economic multiplier – and that every dollar they invest in public infrastructure delivers around four dollars in GDP value over the life of the asset.

“Over and above this productivity dividend, our research finds IS Ratings are set to deliver a minimum of $1.60 in benefit for every dollar spent – and this figure could be as high as $2.40 in benefit.”

ISCA’s IS Rating Scheme was launched in 2012, and has since measured the social, environmental, governance and cultural outcomes delivered by more than $170 billion major infrastructure projects.

The independent cost benefit analysis undertaken by RPS Group monetised benefits such as carbon, water, ecology and air emissions. IS-certified as-built assets have delivered accumulated reductions of 14 per cent in energy, 27 per cent in water and 31 per cent in materials when compared to standard practice.

Ms Simpson says the ROI study does not quantify wider social value such as health outcomes and human capital development.

“Our study makes the business case clear: sustainability and profitability are not mutually exclusive. Importantly, the non-market benefits of infrastructure should not be limited to major projects. If uptake of the IS Rating Scheme was doubled, the net benefit would soar to $90.7 million. All infrastructure – urban and regional, large and small, new and ageing – can deliver more for our communities.”

“What we also know from the research is that pursuing an IS Rating upskills the workforce, encourages innovation and drives process improvements. Applying the IS Rating scheme to infrastructure projects trains people to think more strategically across the asset lifecycle, which in turn enhances procurement and supply chain efficiencies.”

Given the central role that infrastructure will play in the next wave of fiscal stimulus, ISCA is calling on all governments to rebound with continued determination and decisive leadership, with five practical actions:

  1. Mandate sustainability: Set the policy default for all infrastructure to sustainable and resilient, as well as economically productive.
  2. Prioritise productivity multipliers: Invest in projects that that deliver both productivity multipliers and non-market (benefits, including sustainability and liveability.
  3. Leverage procurement: Stimulate local economies by developing skills and capacity and drive nation-wide innovation across the supply chain.
  4. Commit to best practice: Adopt recognised standards on all shovel-ready projects to measure and achieve best practice sustainability performance.
  5. Embrace transparency: Use assured performance data to communicate the outcomes delivered for business, communities and the workforce.

“Infrastructure investment can help us achieve strong economic outcomes for Australia as we bounce back from the Covid-19 crisis. But we need to ensure we are spending our money wisely,” Ms Simpson adds.

“Infrastructure Australia estimates that $20 billion worth of infrastructure projects were delayed, cancelled or mothballed over the last decade due to community opposition. Construction fatigue has put pressure on communities and jeopardised the industry’s social license.

“By mandating the IS Rating Scheme, governments can help us pivot from past practices and invest in sustainable infrastructure that de-risks assets, boosts financial performance and, most importantly, builds a better future for generations.”

Related Articles

Increase in industrial projects provides opportunities for sustainability

role

Property industry to play critical role in the race to net zero

power

World leading research to power future buildings

GRESB

Australia’s real estate sector leads the world in GRESB ranking

Comments

Leave a comment Cancel reply

You must be logged in to post a comment.

all news all projects

Latest Posts

  • Latest News
  • Latest Projects
30 Jun

Report helps break down barriers for women on work sites

29 Jun

QBCC review findings to strengthen building industry regulation

28 Jun

Australia’s social housing shrinks as demand surges 

28 Jun

NSW major projects infrastructure pipeline updated

28 Jun

Transport for NSW launches online landuse tool to help developers plan projects

30 Jun

New $1.2-billion Bundaberg Hospital to deliver 121 new beds

30 Jun

QEII Hospital projects deliver 140 new beds in Brisbane

29 Jun

Coronation Property secures key Erskineville urban renewal site

29 Jun

$530 million for expansion of Townsville University Hospital to deliver 143 extra beds

28 Jun

Wellington Health precinct to include new $320-million high rise

Online Magazine

    Current Cover
  • Login
  • Subscribe

Subscribe

Subscribe to our newsletter or print magazine

Associations

Our Titles

  • Home
  • Contact Us
  • Terms and Conditions
  • Privacy
© Sage Media Group 2022 All Rights Reserved.
×
Authorization
  • Registration
 This feature has been disabled
 This feature has been disabled until further notice, however you may still register
×
Registration
  • Autorization
Register
* All fields required