The Triple Bottom Line Page 6

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www.ice.org.ukCivil engineering knows no boundaries. It is the

profession creating the infrastructure of civilisation

itself: transport, sanitation, energy, safety, health and

habitation – the life support systems of the modern

community. As such it makes a unique contribution

to economic growth and environmental sustainability.

The future shape of society will depend in large

measure on our profession.

Civil engineering produces men and women with a

quality and diversity of skills fitted to the dynamic

global challenges of sustainable development. The

Institution of Civil Engineers creates, encourages

and nurtures new generations of civil engineers.

Their knowledge transcends disciplines, is encapsu-

lated within a culture of continuous learning and

operates at the forefront of innovative technical and

management processes.

Society, sustainability and civil engineering

SOCIETY, SUSTAINABILITY AND CIVIL ENGINEERINGA strategy and action plan, 2002–3

The Institution of Civil EngineersAssociation of Consulting EngineersCivil Engineering Contractors AssociationConstruction Industry Research and Information AssociationConstruction Products Association

ii

This strategy and action plan has been prepared by ateam comprising the Institution of Civil Engineers(ICE), the Association of Consulting Engineers (ACE),the Civil Engineering Contractors Association (CECA),the Construction Products Association (CPA) and theConstruction Industry Research and InformationAssociation (CIRIA). This document is intended to buildon the vision set out in Building a Better Quality of Life,the government's strategy for more sustainable construction and developed further by Sir Martin Laing'sSustainable Construction Taskforce in their reportTowards Sustainability — A Strategy for theConstruction Industry. Our report sets out a commit-ment to help the civil engineering industry to delivermore sustainable civil engineering, a series of actionsthat the partners to the strategy will undertake them-selves, and a series of recommendations for threeother groups — individual civil engineers, clients of civilengineering, and the commercial organisations in thecivil engineering supply chain.

This document is the first such coordinated plan, andwill be updated and extended over the coming monthsand years, the partners having committed themselvesto review and revise it at least annually. It is acknow-ledged to be a first step on the long road to a sustain-able industry supplying a sustainable society, and theteam looks forward to comment and input from anyoneconcerned with the future of the earth, of society generally, and of the civil engineering industry andinfrastructure on which so much of modern lifedepends.

Anyone wishing to comment, to provide suggestionsfor additional content or to provide details of relevantexperience that could be used to prepare the next version of this plan is invited to contact the SectorStrategy Secretariat at the address given at the front ofthis report (p. iv).

Introduction

Published byInstitution of Civil Engineers, 1 Great George Street, London, SW1P 3AA

Tel.: 020 7222 7722Fax.: 020 7222 7500

© Institution of Civil Engineers, 2002

Designed and typeset by Alex Lazarou, Surbiton, Surrey

SOCIETY, SUSTAINABILITY AND CIVIL ENGINEERING

iii

Statement by Brian Wilson MP, Minister ofState for Industry and Energy

When government publishedBuilding a Better Quality of Life —A Strategy for More SustainableConstruction in April 2000, wecalled on representative bodiesand trade associations to develop complementary sectoralstrategies.

I am delighted that the civil engineering sector andpartners in its supply chain have accepted this chal-lenge and produced this strategy and action plan.

This strategy is another step on the road to a high performing construction industry, wedded to the principleof continuous improvement within a framework of environmental and social responsibility.

At heart, sustainability is about making sustainedimprovements to our quality of life. Civil engineeringhas a major contribution to make to this process asboth a major employer and generator of wealth, and asa profession with the technical skills to deliver majorimprovements to the built and natural environment.

The challenge of sustainable construction is a majorone. I am pleased that the civil engineering sector iscommitted to reviewing its progress and priorities onan annual basis and to working with its partners inother disciplines to implement its strategy. I wish itsuccess and look forward to hearing of furtherprogress.

Statement from the ICE, the ACE, theCECA, CIRIA and the CPA

The ICE, the ACE, the CECA, the CPA and CIRIA arecommitted to the series of actions outlined in this docu-ment, which are aimed at delivering more sustainablecivil engineering projects and, thus, making their contri-bution to enabling society to live more sustainably.

Foreword


Mark Whitby, President ICE

Peter Bransby, Director General CIRIA

Rod Macdonald, Chairman ACE

Roy Harrison, President CPA

Chris Harding, Chairman CECA


iv

1 Executive summary ................................................................................................................................................12 Action plan ..............................................................................................................................................................23 The challenge of sustainable construction ............................................................................................................64 The benefits and impact of civil engineering ..........................................................................................................75 The business case for sustainable engineering ..................................................................................................106 Measuring sustainability performance ..................................................................................................................13

Concluding remarks..............................................................................................................................................15Useful contacts ....................................................................................................................................................16Bibliography ..........................................................................................................................................................17Summary of abbreviations used in this report ......................................................................................................18

Steering GroupRoger Venables Chairman, Institution of Civil Engineers Environment and Sustainability Board & Crane Environmental LtdMark Broadhurst Cornwall County Council & Institution of Civil Engineers Environment and Sustainability BoardGareth BrownMorrison Construction & Civil Engineering Contractors AssociationJeremy CroxsonAssociation of Consulting EngineersMartin HuntConstruction Industry Research and Information AssociationTim GamonInstitution of Civil Engineers Environment and Sustainability Board & TRL LtdAndrew McLuskyIndependent Consultant & Institution of Civil Engineers Environment and Sustainability BoardRita SinghConstruction Products AssociationJohn WilsonCivil Engineering Contractors Association

Coordinating Author and Sector Strategy SecretaryAndrew CrudgingtonInstitution of Civil Engineers, 1 Great George Street, London, SW1P 3AATel.: 020 7665 2219; Email: [email protected]

Contents

Acknowledgements

1

The civil engineering sector must address the sustain-ability agenda if it is to:

� deliver improvements in efficiency and resourceproductivity

� meet increasing public demands for environ-mental and social responsible construction

� demonstrate to the investment community that itis capable of preserving and enhancing share-holder value through effective risk managementand the ability to adapt to a changing legal andsocial environment

� meet increasing demands from clients and endusers for improved performance from buildingsand infrastructure

� recruit and retain high-calibre staff� develop the new products and techniques that will

underpin the long-term future of the industry.

Furthermore, sustainable development and sustainableconstruction will not be possible without an immensecontribution from professional civil engineers in a rangeof areas, including:

� delivering positive environmental improvements,for example through the provision of clean waterand sanitation, and the remediation of contamin-ated land

� preserving and enhancing appropriate biodiversity� providing and maintaining the infrastructure,

including power and transport networks, on whicha modern economy depends

� providing a safe, well-designed and accessiblebuilt environment in which people are happy tolive out their lives.

However, civil engineering cannot be divorced from theconstruction sector as a whole. In 2000, the govern-ment published Building a Better Quality of Life — AStrategy for More Sustainable Construction (DETR,2000). To help implement this strategy, the Institution ofCivil Engineers (ICE), the Association of ConsultingEngineers (ACE), the Civil Engineering ContractorsAssociation (CECA), the Construction IndustryResearch and Information Association (CIRIA) and theConstruction Products Association (CPA) have, in con-sultation with industry, government, regulators, clientsand other stakeholders, identified an action plan forourselves and a series of recommendations for allorganisations in the civil engineering supply chain(including clients, contractors, direct labour organisa-tions (DLOs), etc.), individual civil engineers and our

clients. These plans and recommendations cover thefollowing priority areas.

(a) ICE, ACE, CECA, CIRIA and CPA (Section 2.2):(i) promoting the business case for sustainable

construction within the civil engineeringsector

(ii) promoting resource productivity in the civilengineering sector

(iii) promoting cultural change and innovation inthe civil engineering industry.

(b) Individual civil engineers (Section 2.3):(i) continuing professional development

(CPD), personal development and profes-sional behaviour

(ii) knowledge sharing.(c) All organisations in the civil engineering supply

chain (Section 2.4):(i) management of impacts and resource

productivity(ii) stakeholder engagement(iii) accountability.

(d) Clients and end users (Section 2.5):(i) client education for sustainability(ii) stakeholder engagement (iii) management of impacts.

1 Executive summary

2

2.1 Introduction — everyone can make a contribution

The first half of this action plan sets out in detail theactions that the sector strategy steering group — theICE, the ACE, the CECA, CIRIA and the CPA — arecommitted to carrying out to help deliver more sustain-able construction.

In the second half of the action plan we list the actionswe recommend be taken by all the organisations makingup the civil engineering industry, by individual civil engi-neers and by our clients. Many of the steering groups'actions will make it easier for other stakeholders to imple-ment our recommendations. In the next stage of thisprocess, the steering group will discuss actions we cantake to help others implement our recommendations.

These action plans and recommendations reflect our consultation with industry, government, regulators,clients and other stakeholders during 2001.

We intend to review our priorities and progress againstthis action plan on an annual basis.

2.2 ICE, ACE, CECA, CPA and CIRIA —priorities and actions for 2002–3

The three tables below (Priorities 1–3) show theactions the ICE, the ACE, the CECA, the CPA andCIRIA will take to meet the priorities for action identi-fied for trade and professional bodies.

Priority 1: Promoting the business case for sustainable construction within the civil engineering sector

Action Participants Expected by

1. Develop CEEQUAL (see Section 6.3 below) from feasibility ICE, ACE, CECA, April 2003to operational phase CIRIA

2. Develop a research proposal for improving understanding ICE, ACE, CECA, September 2002and use of whole life costing and whole lifecycle CIRIA, CPAenvironmental assessment in the civil engineering sector

3. Dissemination and reporting on key performance indicators ACE, ICE June 2002(KPIs) for construction clients

4. Sustainable Construction in Practice Roadshow TRL, Environment Autumn/winter 2002Agency, CIRIA, ICE

5. Management and publication of results from CIRIA's CIRIA December 2003Sustainable Construction Indicators Pioneers Club

6. Production and dissemination of at least six case studies, ICE September 2002demonstrating aspects of sustainable construction

2 Action plan


3

Priority 2: Promoting resource productivity in the civil engineering industry

Action Participants Deadline

1. To facilitate and disseminate research and demonstration ICE (with IWM) Ongoingprojects by way of the ICE/Institute of Wastes Management (IWM) Resource Sustainability Initiative (see Section 5.5). Projects to include:(a) development of protocol for recycling demolition waste ICE April 2003(b) development of best practice guidance for civil ICE December 2002

engineering applications of tyres(c) mass balance and resource flow studies of London, ICE First results (London),

Scotland and Northern Ireland September 2002

2. Development of a register of construction and demolition CIRIA, ICE September 2002waste recycling sites

3. Mass balance study of construction industry VIRIDIS with CIRIA, June 2002ICE

4. Construction Products Industry KPIs: to publish performance CPA First results February results for the industry and sectors annually with the 2002, thereafter Department of Trade and Industry (DTI) pan-industry KPIs annually

5. Dissemination of TRL, Building Research Establishment CPA, ICE, CIRIA June 2002(BRE) and CPA tools for measuring indicators for extraction and use of quarry products in construction

Priority 3: Promoting cultural change and innovation in the civil engineering industry

Action Participants Expected by

Creation and Development of ICE online Environment and ICE PIN in place, Sustainability Professional Interest Network (PIN) and forum, development ongoingwith free access to all

Launch new learned society journal, Engineering Sustainability ICE March 2003

Roll out CPD events using materials from the Professional ICE From May 2002Practice for Sustainable Development Project developed by the Institute of Environmental Science, the ICE and 14 other professional bodies

Open discussion with the Joint Board of Moderators with regard ICE To be confirmedto the sustainability content of undergraduate courses

Promote publication of sustainability reporting in annual reports ACE, CECA, ICE Ongoing

Promote adoption of environmental management systems ACE, CECA, ICE Ongoing

Open discussion with GCCP and the CCC with a view to ICE, ACE, CECA To be confirmeddeveloping client education materials

Production and dissemination of 15 ICE Environmental Position ICE April 2002Statements

2.3 Recommended actions for individualcivil engineers

The ICE recognises that it has a special role in provid-ing the leadership and resources that will allow individ-ual civil engineers to meet these priorities. To this end,the ICE's network of regional liasion officers and localassociations will be asked to advise members of thefollowing priorities.

Priority 1: CPD, personal development and pro-fessional behaviour

(a) Individuals to ensure that their CPD programmesequip them to deal with sustainable developmentissues. CIRIA's Construction Industry EnvironmentalForum (CIEF) (certified by the Construction CPDService and recognised by the ICE) stages over30 seminars and workshop per year (details athttp://www.ciria.org.uk/cief_events.htm).

(b) To adhere to the standards set out in the ICE'sEnvironmental Policy Statement Civil Engineersand the Environment and to keep up-to-date withthe ICE's Environmental Position Statements (allavailable at www.ice.org.uk).

(c) To engage with the ICE's online ProfessionalInterest Networks (PINs), particularly theEnvironment and Sustainability PIN (atwww.ice.org.uk).

(d) Develop an understanding of key components ofsustainable construction, including:(i) whole lifecycle environmental assessment/

whole life costing(ii) nature conservation and biodiverity issues(iii) waste minimisation/resource productivity(iv) the use of environmental management

systems(v) community engagement (vi) design for disassembly(vii) alternative design solutions, e.g. Sustainable

Urban Drainage Systems (SUDS).

Priority 2: Knowledge sharing

(a) Analyse the sustainability performance of projects and share the results with professionalcolleagues and, where possible, the ICEEnvironment and Sustainability PIN.

(b) Share and promote information on tools, stan-dards and methodologies contributing to sustain-able construction with professional colleagues.

(c) To increase effectiveness of (a) and (b), andidentify and focus on likely opinion leadersamong professional colleagues and contacts.

2.4 Recommended actions for all organi-sations in the civil engineering supply chain

Case studies on a range of topics, including whole lifecosting, sustainable construction, supply chain man-agement, partnering, lean construction, integrateddesign and construction, IT, heath and safety, and culture and people, can be found at the Movement forInnovation (M4i) website (http://www.m4i.org.uk/innova-tions/). In making the recommendations below, wepoint companies towards the lessons learnt throughthe M4i case studies and encourage them to submitproposals for inclusion in M4i's register of demonstra-tion projects at http://www.m4i.org.uk/membership/.Alternatively, the ICE will also be publishing a series ofGood Practice Case Sheets. To submit a case sheetproposal, contact the Sector Strategy Secretariat at theaddress at the front of this report (p. iv).

Priority 1: Improve management of impacts andresource productivity

(a) Designers and contractors to develop an under-standing of whole lifecycle environmental assess-ment, trial its use and make results publicly available.

(b) Design, specify and use recycled materials ormaterials with lower than normal environmentalimpact based on whole life performance.

(c) Introduce an environmental management system.(d) Create mechanisms for sharing sustainability

best practice within companies.(e) Develop and implement waste minimisation poli-

cies at all stages of the design and constructionprocess.

(f ) Develop skills in the reuse and improvement ofexisting built assets.

(g) Develop an understanding of biodiversity impactsof projects on the chosen site.

Priority 2: Stakeholder engagement

(a) Supply chain — all parties, including contractors,designers, suppliers and clients, to engage at theearliest possible stages of projects. Lessons on


4

different means of ensuring continuity in the sup-ply chain can be learnt from the M4i demonstra-tion projects at http://www.m4i.org.uk/innovations/.

(b) Financial world — to open a dialogue with theCity and other financial institutions to promote thebenefits of investment in companies pursuingsustainability policies.

(c) Communities — learn from and employ bestpractice in community consultation and involve-ment, see CIRIA/CIEF (Construction IndustryEnvironmental Forum) briefing note CommunityInteraction (2001).

(d) Clients — to actively promote the benefits of sustainable construction to clients.

Priority 3: Accountability

(a) Include sustainability reporting in company annualreport.

(b) Develop and publish company policy in key areassuch as:(i) staff employment conditions(ii) green transport plans(iii) pension fund investment.

(c) Develop and use transparent processes for plan-ning, designing and constructing projects, andtake positive steps to ensure that this informationis available to all stakeholders.

(d) Develop existing health and safety practices.

2.5 Clients and end users

We recognise that our agenda will require positiveaction and investment by clients. A key action for theSector Strategy Steering Group is therefore to opennegotiations with major clients and their representativeorganisations to discuss means of implementing theserecommendations.

Priority 1: Client education in sustainability

(a) To develop training for procurement staff in sus-tainability awareness in consultation with tradeand professional groups. Issues that might becovered include:(i) whole lifecycle environmental assessment(ii) use of specifications(iii) importance of time for dismantling and sort-

ing, pre-tender discussion, etc.

(iv) link between best value and sustainableconstruction

(v) the incentives for developers to providesustainability features for end users

(vi) consideration of refurbishment over newbuild

(vii) locations of projects in relation to transportand other services.

(b) Create mechanisms for sharing sustainabilitybest practice within organisations.

(c) Understand and promote the benefits to endusers of improved sustainability performance,e.g. reduced energy usage and easier mainte-nance.

Priority 2: Stakeholder engagement

(a) Earliest possible engagement with all parts of thesupply chain. Lessons on supply chain engage-ment are available from M4i demonstration proj-ects (http://www.m4i.org.uk/innovations/).

(b) Major clients to proactively engage with localauthorities over local plan development to helpensure that planning applications are not submit-ted for unsuitable sites/land use and transportplanning are effectively linked.

Priority 3: Management of Impacts

(a) Develop an understanding of whole lifecycle envi-ronmental assessment, trial its use and makeresults publicly available.

(b) Insist on positive action by designers and con-tractors to minimise the waste of human andphysical resources.

(c) Seek opportunities for refurbishment over newbuild.

(d) Take part in demonstration projects on sustain-ability practice.


5

6

By working together, the ICE, the ACE, the CECA,CIRIA and the CPA have sought to apply the strategicvision set out in the Department of the Environment,Transport and Regions' (DETR) Building a BetterQuality of Life, A Strategy for More SustainableConstruction and developed in Towards Sustainability,the first report of the Sustainable Construction TaskGroup chaired by Sir Martin Laing (see Fig. 1) to thecivil engineering sector.

What do we mean by sustainability and sustainabledevelopment? Writing in Civil Engineering in November2000, Sara Parkin, Director of Forum for the Future,suggests that: 'Sustainable development is a processwhich enables all people to realise their potential andimprove their quality of life in ways that simultaneouslyprotect and enhance the Earth's life support systems.'

This definition draws the useful distinction between theobjective of sustainability, an end state in which allhuman activities can be maintained within the carryingcapacity of the earth, and sustainable development,the process by which we can move towards that goal.Within this statement it is possible to make out thethree key themes of sustainable development, thetriple bottom line (see Fig. 2) of:

� social progress that meets the needs of everyone� high and stable economic growth and employment� effective protection and enhancement of the envi-

ronment with prudent use of natural resources,

all of which needs to be achieved in the context of acontinuous improvement in resource efficiency.

3 The challenge of sustainable construction

Steps to Sustainability

Towards Sustainability, A Strategy for the Construction Industry (Sustainable Construction Focus Group/Construction Confederation,

2000)

Promoting awareness and educating peopleSteps to sustainability

Collecting information on sustainability initiativesCollecting practical examples of sustainability in action

Demonstrating a clear business case for more sustainable buildings and construction

Stakeholder dialogue

Spreading best practice

Settling and promoting targets

Establishing a voluntary code of reporting

Reviewing performance

Learning from failures

Building a Better Quality of Life, A Strategy for Sustainable Construction (DETR, 2000)

Themes for Action

Reuse existing built assets

Design for minimum wasteAim for lean construction

Minimise energy in use

Do not pollute

Preserve and enhance biodiversity

Conserve water resources

Respect people and their local environment

Set targets

A Better Quality of Life — A Strategy for Sustainable Developement in the UK (DETR, 1999)

Society, Sustainability and Civil Engineering — An Action Plan and Strategy (ICE, ACE, CECA, CPA and CIRIA, 2002)

Monitoring and observing performance

Environment Society

Economy

Sustainable development

Fig. 1. Relationship of strategy and action plan to other initiatives

Fig. 2. The triple bottom line�

�

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4.1 Imagine life without civil engineering

To understand the huge positive contribution civil engi-neering and civil engineers can make in this area weneed to understand our impact on the 'triple bottomline', referred to in Section 3.

It is difficult to assess the impact of any industry sectorin isolation from the rest of the economy, particularly soin the case of civil engineering, inextricably linked as itis to the wider construction sector. However, a goodway to get a feel for the industry's contrubution to soci-ety is to pose the question, 'imagine life without civilengineering'.

In the last 50 years, for example, civil engineering hasbrought:

� potable water to millions� effective treatment of sewage and waste other

than waste waters, with dramatic reductions indischarges of pollutants to rivers and the sea

� reliable electricity supplies (working in partnershipwith electrical engineers)

� extensive reclamation of contaminated land andits subsequent beneficial development

� extensive flood defences.

Such are the public health benefits of many parts ofthe civil engineering spectrum that it has been sug-gested that civil engineering is responsible for greaterimprovements in this area than the medical profession.

4.2 The economy

The civil engineering industry is responsible fordesigning, constructing and maintaining a huge rangeof projects, including:

� roads� railways� docks, harbours, jetties, inland waterways and

coastal protection� dams and reservoirs� power stations� airports� bridges, viaducts and other structures� waste water treatment works

� reclamation of industrial land and urban regenera-tion

� water distribution networks and water purificationplants

� waste management infrastructure� flood and coastal protection� heritage conservation.

The industry has constructed nearly 400 000 miles ofroads in the UK and almost 11 000 miles of railwaytrack that is still in use. The industry is responsible forconstructing and maintaining many high-profile facili-ties, such as the Channel Tunnel, the Cardiff BayBarrage, the London Underground, sewerage systems,as well as thousands of smaller, less well-known, butequally important, projects throughout the country.

The industry employs around 220 000 engineers, otherconstruction professional staff, managers and opera-tives in the UK alone. Together, their output is wortharound £12.5 billion a year. This figure includes thevalue of materials produced by other sectors that areused in civil engineering works. Without these, exclud-ing materials, civil engineering accounts for around 2%of gross domestic product (GDP).

As an integral part of the economy, the civil engineer-ing industry has a major effect on other industriesthrough the purchase of materials, including cement,aggregates and steel. In addition, the industry isresponsible for the provision of power and an efficientdistribution network — two key factors underpinningthe UK's prosperity.

4.3 The environment

4.3.1 Managing our environmental impacts

Civil engineering can, and does, make a positiveimpact to the environment in many areas. However, asprofessionals we are responsible for minimising nega-tive impacts where they arise. Some indicative figuresfor the environmental impact of the whole constructionsector include:

� 72.5 million tonnes of construction and demolitionwaste was produced in England and Wales in1999, however, 35% of this waste was recycledand a further 13% was used for engineering onlandfill sites (Environment Agency, 2001)

4 The benefits and impact of civil engineering

� the quarrying of about 220 million tonnes ofaggregate in England and Wales in 1998

� the use of 24% of total energy consumption byindustry in the UK in 1996 for the manufactureand transportation of construction materials(Quality of Life Counts, DETR, 1999).

Civil engineering, as part of the construction sector,has a profound impact on the natural environment —both negative and positive. This is recognised by thelegal requirement to conduct an environmental impactassessment (EIA) for major projects measuring theirimpact on a range of 'receptors', including humanbeings, flora, fauna, soil, water, air, landscape, climateand material assets.

Beyond the regulatory control of the EIA, many civilengineering companies are now looking to control theenvironmental consequences of all of their operationsthrough the development and implementation of anenvironmental management system (EMS). This allowsan organisation to manage its operations in line with aclearly defined environmental policy, objectives andprocedures.

A particular challenge for the civil engineering sector isthat many of its environmental impacts relate to thetemporary construction phase as well as the longer-term impacts of the completed project. At any onetime, one company may have environmental responsi-bilities on a range of sites, distinguished by differ-ences in client, output, legal and planning require-ments and other local factors. Environmental manage-ment practices therefore need to be flexible enough tosuit individual site or project requirements, whileachieving overall improvements in environmental performance.

4.3.2 The positive environmental impact of civil engineering works

All of the above must be set against the fact thatmany civil engineering schemes are delivering adirect improvement to our environment and quality oflife.

TransportEngineers have a key role in planning and providingfacilities for more sustainable transport options, such as walking, cycling and high-quality public transport.

Contaminated land The remediation of land contaminated by previousindustrial and commercial uses reduces risks to theenvironment and human health, and relieves pressureto develop green sites. Civil engineering measures,such as on-site containment of pollutants, can alsoremove the need to extract contaminated land and tothen transport the material to a hazardous waste land-fill.

Water Infrastructure built and maintained by civil engineersensures that a supply of water of appropriate quality forthe basic public health needs of every user in the UK isavailable at all times. Improved planning and manage-ment of this system, within an overall framework ofriver basin management, can reduce the need forgroundwater abstraction with its damaging effects onriver flows and wetlands.

To help engineers understand the key environmentalissues arising from their work, the ICE has publishedEnvironmental Position Statements on coastal manage-ment, contaminated land, energy, energy use in build-ings, environmental management and liability, transport,transport and land use planning, urban regeneration,waste management and water resources, and thesecan be downloaded free at www.ice.org.uk.

4.4 Society and the built environment

The social element of sustainability is often hardest tograsp. A useful way of looking at this issue is to think interms of impacts internal and external to the industry.

Civil engineering provides employment in the industryand its supply chain. The employment, health andsafety, and other business practices of companieswithin the industry have a similar direct impact on theiremployees and a range of other stakeholders.

Externally, all construction work has a direct impact onthe quality of life of local people in the construction andoperational phase of projects and, in some cases suchas airports, very large surrounding areas.

On a more complex level, civil engineering and con-struction provide the physical fabric in which peoplelive their lives. The Value of Urban Design (DETR and


8

the Commission for Architecture and the BuiltEnvironment, 2001) lists a huge range of socio-envi-ronmental impacts of good urban design, over whichcivil engineering and civil engineers can potentiallyhave an enormous impact, including:

� creating well-connected, inclusive and accessiblenew places

� delivering development sensitive to its context� enhancing the sense of safety within and beyond

developments� boosting civic pride and enhancing civic image� creating more energy efficient and less polluting

development� opening up investment opportunities, raising confi-

dence in development opportunities and attractinggrant monies.

4.5 Meeting future needs

The value placed on green space or civic pride islargely subjective, adding to the difficulty in trying toconstruct a holistic justification for a project. This doesnot mean that these issues can be ignored. On thecontrary, our consultations suggest that one of themost important issues we face is securing communityconfidence and involvement in all stages of civil engi-neering projects.

In attempting to assess the sustainability of projects,we are also faced with difficult issues, such as theboundary to be drawn when calculating social, eco-nomic and environmental impacts and assessing thegreater good. The existing land use planning systemdoes not always provide a satisfactory mechanism forproviding answers to these questions. One solutionmay be to develop an EIA into a wider sustainabilityimpact assessment. However, before such an assess-ment method could be introduced there must be anational debate on how these fundamental issues canbe resolved and an acceptable system of measure-ment established.


9

10

5.1 Efficiency and profitability

Active management of sustainability performance candeliver significant improvements in business efficiencyand profitability. The use of partnering and PFI (PrivateFinance Initiative) arrangements will increasingly giveconsultants and contractors the incentive of a directand long-term interest in the performance of completedfacilities.

Improved company environmental performance canachieve significant short-term business benefits. Forexample, lean construction and efficient resource usecan generate quantifiable cost savings, as can reducedenergy consumption in business activities. Project case studies can be found at the M4i website(http://www.m4i.org.uk/innovations). (Section 6.1 providesdetails of the high performance of these projects compared to industry norms.) Other benefits of adoptingthe sustainability approach include:

� reducing landfill costs by increasing recycling� reduced transport costs through using local sup-

pliers� increased efficiency and capacity for self-regula-

tion through the introduction of environmentalmanagement systems

� positive publicity arising from environmentalimprovement schemes producing future tenderingopportunities

� avoidance of pollution incidents or environmentaldegradation, leading to fines and court costs anddamage to reputation.

Furthermore, by working with local communities, localopposition to the project can be reduced, enabling:

� planning permissions to be achieved more quicklyand at reduced costs

� minimisation of delays and site security costs arising from direct action during the constructionphase

� positive publicity for all project stakeholders.

5.2 Meeting client expectations

Many leading clients are now demanding better environ-mental and social performance from their supply chain.

For example, the Government Construction ClientsPanel, which is responsible for 40% of annual UK con-struction spend, launched its Sustainability Action Planin July 2000. The action plan provides targets againsteach of the ten 'Themes for Action' in Building a BetterQuality of Life, and individual departments, agenciesand non-departmental public bodies have undertaken toassess their current situation against these goals and todevelop their own action plans.

Many of the advantages outlined in Section 5.1 willalso accrue to the client. Other advantages to the clientinclude:

� demonstration by developers that they are meet-ing end users' expectations

� potential for enhanced shareholder value� hedging against future legislation/regulation� demonstration of corporate citizenship and social

responsibility.

5.3 The investment community

5.3.1 Socially responsible investment

Socially Responsible Investment Funds (SRIs) repre-sent a small but financially significant proportion ofinvestment in public companies. Increased consumerconcern about the conduct of companies and the fundsinvested in them on their behalf by their pension fundswill see this sector grow in future years.

5.3.2 Trends in mainstream investment

The investment community is increasingly aware of therisks posed by companies with poor environmental andsocial performance. Interbrand, the global brandingconsultancy, estimates that 25% of the world's financialwealth is held in intangible assets, such as reputationand brand. Companies also need to demonstrate thatthey are capable of adapting to future legislativechanges, managing stakeholder relations and, crucially,recruiting and retaining high quality staff. These trendshave been encouraged by a number of regulatorydevelopments described below.

(a) Pension Scheme Disclosure — from July 2000,all company pension schemes have been obliged to disclose 'the extent to which social,

5 The business case for sustainable engineering

environmental or ethical considerations are takeninto account in the selection, retention and realisa-tion of investments'. In response, fund managersare increasingly seeking relevant informationfrom the companies in which they invest.

(b) TheTurnbull Report (Internal Control, Guidancefor Directors on the Combined Code, Institute ofChartered Accountants in England and Wales,September 1999) — presses listed companies toreport on their approach to risk, including risksrelating to environmental performance and busi-ness probity. Failure to disclose adequate infor-mation in an annual report is likely to lead to anadverse impact on share price.

5.4 Long-term benefits

As Sections 5.1–5.3 show, there are long-term benefitsfor companies adopting a sustainability approach,including:

� market differentiation and new product opportuni-ties (e.g. green technologies)

� securing long-term investment� managing risk to reputation/brand� recruitment and retention of staff� easy adoption to future legislative and societal

changes� protection and enhancement of shareholder

value.

5.5 Key challenges for building the business case

5.5.1 Whole life costing/whole lifecycle environmental assessment

The use of these tools was identified in our consulta-tion as the top priority for building up the businesscase. However, industry take up will be dependent on:

� a simple definition of whole life costing and wholelifecycle environmental assessment, and anunderstanding of how results from the two tech-niques will differ

� access to reliable data to allow consistent andaccurate whole life costing and whole lifecycleenvironmental assessment to be carried out

� an easy to use mechanism for including whole lifecosting and whole lifecycle environmental assess-ment in tender documents.

As part of our action plan, the ICE and its partners willbegin discussions with researchers and companiesworking in this area to assess the current state ofknowledge and practice, and how this can be devel-oped. For instance, all new build and major mainte-nance works within the Highways Agency's construc-tion programme are whole life costed using standardmodels developed by the Transport ResearchLaboratory (TRL).

5.5.2 Resource productivity

Resource Productivity: Making More with Less(Performance and Innovation Unit, the Cabinet Office,November 2001) states that a key policy aim of govern-ment is 'achieving continued economic growth withoutthe unacceptable costs of environmental and socialdegradation…producing more goods and services withfewer inputs of materials and energy, and with less pollution and waste'.

The ICE and its partners have already put a number ofprojects in train in this area.

(a) Resource Sustainability Initiative (RSI) — the ICE is working with the Institute of WastesManagement and seven registered environmentalbodies (EBs) to facilitate a programme ofresearch aimed at improving resource manage-ment in all phases of the construction process.

(b) CIRIA Directory of Construction Waste RecyclingSites — CIRIA are developing an online directoryof such sites that will be freely available fromSeptember 2002.

(c) Mass Balance of Construction Industry project byCIRIA and VIRIDIS — a project to measurematerial use by the industry. Scheduled to reportin June 2002.

5.5.3 Education and training

The education and training of engineers, both throughtheir university courses and their ongoing CPD pro-grammes, must prepare them for, and enable them to,respond to the challenge of sustainability. As a firststep, the ICE has been working with the Institute ofEnvironmental Sciences, the Environment Agency, the


11

World Wide Fund for Nature (WWF), the Natural Stepand 14 other professional bodies on ProfessionalPractice for Sustainable Development (PP4SD). Thisproject has developed CPD materials for a foundationcourse in sustainability for professionals.

5.6 Barriers to sustainable construction

As part of our consultation with industry and otherstakeholders, we asked people to identify the most significant barriers to achieving more sustainable civilengineering that they would like to see addressed. The results of this exercise were:

� a need to raise awareness of sustainable devel-opment issues throughout the industry

� the industry to engage more successfully and ear-lier with clients and the supply chain to enable theimplementation of sustainability principles at allstages of the construction process

� legal and regulatory issues such as the interpreta-tion of the definition of waste.


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Measurement and continuous improvement is vital ifthe industry is to deliver sustained improvements in itssustainability performance. Within the construction sector, a number of systems are currently available toallow measurement of industry, company and projectperformance.

6.1 How is the industry currently performing?

The business performance of the construction industryunderpins its ability to contribute to sustainable devel-opment and has been the focus of considerable atten-tion in recent years. Sir John Egan's 1998 report,Rethinking Construction, proposed radical changes for

the industry, not least a move away from competitivetendering towards long-term partnership arrangementsbased on clear measures of performance and sus-tained improvements in quality and efficiency. A set ofstandardised KPIs were developed by industry and theDTI, with industry performance against the KPIs pub-lished annually. Table 1, published in July 2001, showsthe latest figures for the industry. The M4i is one strandof the implementation process for RethinkingConstruction, which manages over 170 demonstrationprojects. These projects embrace a range of innovativepractices central to sustainable construction, includingpartnering arrangements between client, contractorand supplier, down to the use of whole life costing,lean construction and standardisation and preassem-bly. As Table 1 illustrates, application of the KPIs to theM4i demonstration projects shows a clear performanceadvantage.

Table 1. Construction industry KPIs (DTI, July 2001)

KPI Measure 1999 2000 M4i 2000

Client satisfaction — product Per cent scoring 8/10 or better 73% 72% 93%

Client satisfaction — service Per cent scoring 8/10 or better 63% 63% 76%

Defects Per cent scoring 8/10 or better 65% 53% 86%

Predictability cost — design Per cent on target or better 64% 63% 61%

Predictability cost — construction Per cent on target or better 45% 52% 66%

Predictability time — design Per cent on target or better 37% 41% 67%

Predictability time — construction Per cent on target or better 62% 60% 69%

Profitability Median profit before interest 4.7% 5.5% 7.1%and tax

Productivity Mean turnover/employed £27 000 £28 000 £36 000

Safety Mean accident incident rate 1037 1088 620

Cost Change compared with one –2% +2% –7.1%year ago

Time Change compared with one +3% +1% –12.9%year ago

6 Measuring sustainability performance


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6.2 Developing the industry KPIs

The existing industry KPIs are currently being extendedin a number of areas.

6.2.1 Environmental performance and respect for people indicators

The M4i launched its environmental performance indi-cators and benchmarks in July 2001. The initial suite ofindicators covers:

� operational energy� embodied energy� transport energy� water use� waste in the construction process� biodiversity.

Specialist indicators for civil engineering projects willdraw on information emerging from the CEEQUALproject (see Section 6.3.3 below).

A pilot suite of 'Respect for People' indicators werealso launched in July 2001, covering:

� employee satisfaction� staff turnover� sickness absence� safety� working hours� travelling time� diversity� training� pay� Investors in People status.

6.2.2 KPIs for construction consultants

The first set of performance indicators for constructionconsultants were launched in August 2001 by theACE. The consultants' indicators were backed by theRoyal Institute of British Architects, the RoyalInstitution of Chartered Surveyors, the ICE, govern-ment and the Construction Industry Council. The KPIsapply to consulting engineers, architects and char-tered surveyors, and are based on data from memberfirms and from Companies' House figures. The 15indicators focus on client satisfaction, value for money,

profitability, timely delivery, investment in training, andhealth and safety.

6.2.3. Construction Products Industry KPIs/aggregate production site indicators and construction indicators

The first Construction Products Industry KPIs werelaunched in January 2002. The indicators comprise aninitial set of ten indicators focusing on areas of key con-cern, such as customer satisfaction, people, and envi-ronmental issues. The CPA will publish performanceresults of the industry and sectors annually with theDTI's pan-industry KPI results (see Section 6.1 above).

The Construction Products Industry KPIs will be complemented by two sets of indicators, AggregateProduction Site Indicators and Construction SiteIndicators, produced by a project being led by the TRL. These indicators will allow construction clients, contractors and suppliers to benchmark the mainenvironmental impacts associated with the productionand consumption of aggregates.

6.3 New measures of sustainability performance

A number of current projects will provide the means toprovide an even fuller picture of the industries sustain-ability performance.

6.3.1 OECD report on sustainable constructionin the UK

The Organisation for Economic Cooperation andDevelopment (OECD) is currently reviewing UK envi-ronmental and sustainable development performance.A key focus of this review will be construction, focusingon the UK's approach to sustainable construction. TheOECD report is expected in June 2002.

6.3.2. CIRIA sustainable construction company indicators

This CIRIA report describes a range of indicators tomeasure the sustainability of a company providing

design or construction services. The inidicators arebeing measured through the CIRIA Pioneers club (seeSection 6.3.4 below).

6.3.3 CEEQUAL

A Civil Engineering Environmental QualityAssessment and Award Scheme — the ICE is leadinga pan-industry group to develop an assessment andaward scheme, applicable to all civil engineering proj-ects. CEEQUAL will support clients and designers indealing positively with the environmental qualityissues in their civil engineering projects, and to inte-grate this thinking into the design and constructionprocesses. CEEQUAL will complement the existingBREEAM (Building Research EstablishmentEnvironmental Assessment Method) used for build-ings. The feasibility stage of this project will be com-pleted in April 2002 and it is hoped to have a schemein operation by the end of 2003.

6.3.4 CIRIA Sustainable Construction Indicators and Pioneers Club

Working with industry, CIRIA has identified a series ofindicators against which companies can measure thesustainability of their business and the activities theyperform. The recently formed Pioneers Club encour-ages leading companies to pioneer the use of CIRIA'ssustainability indicators to assess, improve and reporton their performance.

Over 30 months, beginning from July 2001, the clubmembers have been, and will be, working on imple-menting the indicators by way of the following activi-ties:

� identification of key sustainability issues� identification of appropriate performance meas-

urement indicators� analysis of data to determine key performance

improvement requirements� implementation of performance improvement

initiatives� preparation of information for a sustainability

report.

The study will also consider the political issuesinvolved in introducing the indicators throughout acompany's operations.

6.3.5 Government Construction Clients' Panel Sustainability Action Plan

The government's Strategy for More SustainableConstruction highlights the role of government and itsprocurement practices as a key driver for improvedpractice. The GCCP (Government Construction Clients'Panel) launched its Sustainability Action Plan in July2000 on 'Achieving Sustainability in ConstructionProcurement ' . The action plan provides targets againsteach of the ten 'Themes for Action' in the government'sstrategy. Individual departments, agencies and non-departmental public bodies have undertaken to assesstheir current situation against these goals and todevelop their own action plans

To help them report their progress against the actionplan, a toolkit has been developed (March 2002) thatenables organisations to assess their progress from'doing nothing' to meeting the commitments under theaction plan by March 2004.

6.3.6 Highways Agency's performance and procurement indicators

The Highways Agency has already begun the processof identifying the appropriate indicators, from the CIRIAseries, to measure the performance of its constructionand maintenance contractors.

Some performance indicators are being tested withinexisting maintenance contracts and will be introducedmore widely in the future. A requirement to agree sus-tainability indicators and report against them has beenintroduced into the latest private-finance road scheme. A report on the selection of the indicators and the resultsof the tests will be published by the TRL later in 2002.


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Concluding remarks

The strategy and action plan has been developedand published to promote action towards signifi-cantly more sustainable civil engineering. Thepartners look forward to working together andwith their own members and others in the industry to deliver the plan and sustainable civilengineering.


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Association of Consulting EngineersTel.: 020 7222 6557; Fax: 020 7222 0750www.acenet.co.uk

Building Research EstablishmentTel.: 01923 664000www.bre.co.uk

Business in the CommunityTel.: 0870 600 2482www.bitc.org.uk

Business in the EnvironmentTel.: 0870 600 2482www.business-in-environment.org.uk

Construction Best Practice ProgrammeTel.: 0845 605 55 56 www.cbpp.org.uk

Confederation of Construction ClientsTel.: 020 7921 1670www.clientsuccess.org.uk

Civil Engineering Contractors AssociationTel.: 020 7608 5060www.ceca.co.uk

Construction Industry Research and InformationAssociation (including the Construction IndustryEnvironmental Forum)Tel.: 020 7222 8891www.ciria.org.uk

Commission for Architecture and the Built EnvironmentTel.: 020 7960 2400www.cabe.org.uk

Construction Products AssociationTel.: 020 7323 3770www.constprod.org.uk

Department for Environment Food and Rural Affairs,Sustainable Development Unit Tel.: 020 7944 6485. www.defra.gov.uk/environment/sustainable/index.htm

Department of Trade and Industry, ConstructionDirectorate www.dti.gov.uk/construction/

English NatureTel.: (0)1733 455000www.english-nature.org.uk/

Environment AgencyTel.: 01454 624400 www.environment-agency.gov.uk

Envirowise (Environmental advice for business)Tel.: 0800 585794www.envirowise.gov.uk

Forum for the FutureTel.: 020 7251 6070 www.forumforthefuture.org.uk

Friends of the Earth UK Tel.: 020 7490 1555www.foe.co.uk/

Government Construction Clients PanelTel.: 020 7271 2624www.property.gov.uk/services/construction/gccp/gccp.html

Institute of Chartered Accountants in England andWales www.icaew.co.uk

Institute of Environmental Sciences Tel.: 01778 394846http://ies-uk.org/

Institute of Wastes ManagementTel.: 01604 620426www.iwm.co.uk

Movement for Innovation (M4i)Tel.: 01923 664820www.m4i.org.uk (Case studies at www.m4i.org.uk/innovations/)

Useful contacts

Organisation for Economic Cooperation andDevelopmentwww.oecd.org

Royal Institution of British Architects www.architecture.com

Royal Town Planning InstituteTel.: 020 7929 9494www.rtpi.org.uk

Scottish Environmental Protection AgencyTel.: 01786 457700www.sepa.org.uk

Sustainable Development Commission Tel.: 020 7944 4964www.sd-commission.gov.uk/

Transport Research LaboratoryTel.: 01344 770007www.tr.co.uk

UK Social Investment ForumTel.: 020 7749 4880www.uksif.org

Urban Design AllianceTel.: 020 7251 5529www.udal.org

Waste and Resources Action Programme (WRAP)Tel.: 01295 819900www.wrap.org.uk

WWF UKwww.wwf-uk.org


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A Better Quality of Life, Department of theEnvironment, Transport and the Regions, May 1999.

Achieving Sustainability in Construction Procurement,Government Construction Clients Panel, July 2000.

Building a Better Quality of Life — A Strategy for MoreSustainable Construction, Department of theEnvironment Transport and the Regions, April 2000.

Civil Engineers and the Environment — EnvironmentalPolicy Statement, Institution of Civil Engineers, 1998.

Sustainable Development: Making it Happen,Proceedings of the Institution of Civil Engineers, CivilEngineering, 2000, Vol. 138, November, Special Issue 2.

Community Interaction, CIEF Workshop Report, CIRIA,2001.

Construction Waste Survey, Environment Agency,Spring 2000.

Internal Control, Guidance for Directors on theCombined Code, Institute of Chartered Accountants inEngland and Wales, September 1999.

Resource Productivity: Making More with Less,Cabinet Office, November 2001.

Rethinking Construction, Department of theEnvironment, Transport and the Regions, July 1998.

Towards Sustainability, Sustainable Construction TaskForce/Construction Confederation, June 2000.

Quality of Life Counts, Department of the Environment,Transport and the Regions, December 1999.

The Value of Urban Design, Department of theEnvironment, Transport and the Regions/Commissionfor Architecture and the Built Environment, February2001.

Bibliography


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Summary of abbreviations used in this report

ACE Association of Consulting EngineersBRE Building Research EstablishmentBREEAM Building Research Establishment Environmental Assessment MethodCCC Construction Clients ConfederationCECA Civil Engineering Contractors AssociationCEEQUAL Civil Engineering Environmental Quality Assessment and Award SchemeCIEF Construction Industry Environmental ForumCIRIA Construction Industry Research and Information AssociationCPA Construction Products AssociationCPD Continuing Professional DevelopmentDETR Department for the Environment, Transport and the Regions (now defunct)DLO Direct Labour OrganisationDTI Department of Trade and IndustryEA Environment AgencyEB Environmental Body (as specified in the Landfill Tax Credit Scheme)EIA Environmental Impact AssessmentEMS Environmental Management SystemGCCP Government Construction Clients' PanelICE Institution of Civil EngineersIWM Institute of Wastes ManagementKPI Key Performance IndicatorsM4i Movement for InnovationNGO Non-Governmental OrganisationOECD Organisation for Economic Cooperation and DevelopmentPFI Private Finance InitiativePII Partners in InnovationPIN Professional Interest Network (accessible through the ICE website)PP4SD Professional Practice for Sustainable DevelopmentSEPA Scottish Environmental Protection AgencySRI Social Responsible InvestmentSUDS Sustainable Urban Drainage SystemsTRL Transport Research Laboratories WLC Whole Lifecycle CostingWLCEA Whole Lifecycle Environmental AssessmentWRAP Waste and Resources Action ProgrammeWWF World Wide Fund for Nature

One Great George Street Westminster London SW1P 3AA United Kingdom

Tel +44 (0)20 7222 7722 Fax +44 (0)20 7222 7500 www.ice.org.uk

www.ice.org.ukCivil engineering knows no boundaries. It is the

profession creating the infrastructure of civilisation

itself: transport, sanitation, energy, safety, health and

habitation – the life support systems of the modern

community. As such it makes a unique contribution

to economic growth and environmental sustainability.

The future shape of society will depend in large

measure on our profession.

Civil engineering produces men and women with a

quality and diversity of skills fitted to the dynamic

global challenges of sustainable development. The

Institution of Civil Engineers creates, encourages

and nurtures new generations of civil engineers.

Their knowledge transcends disciplines, is encapsu-

lated within a culture of continuous learning and

operates at the forefront of innovative technical and

management processes.

Society, sustainability and civil engineering

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