Impact Report 2024
Welcome to the Infrastructure Sustainability Council’s FY24 Impact Report. This year’s report focuses principally on the impacts that the ISC and its ecosystem of member organisations and stakeholders delivered during the year. It outlines the value created and captured through our efforts to influence policy and regulations that shape our sector, our membership, training and supplier programmes, and the IS Ratings. It also profiles the tremendous expertise, influence and reach of the wider ISC ecosystem – which in the 12 years since our inception has improved sustainability outcomes across 405 registered projects valued at $382 billion across Australia and Aotearoa New Zealand.
These impacts matter! The infrastructure sector consumes, embodies and enables some 70% of Australia’s and 50% of Aotearoa New Zealand’s carbon emissions. Decarbonisation is just one way that infrastructure affects the sustainability of communities. The IS Ratings scheme provides a world class framework for shaping, reporting, and verifying enhanced sustainability performance across 36 aspects in 16 social, economic, environmental and governance categories that cover 15 of the 17 UN Sustainable Development Goals.
Verified outcomes are critical for companies and governments facing growing pressure to publish honest, transparent information about their sustainability performance. Australia’s Infrastructure Policy Statement is clear that publicly funded infrastructure must serve the communities they connect, and to do so sustainably. Aotearoa New Zealand’s newly-announced National Infrastructure Agency will apply a fresh focus to the value that infrastructure will deliver in partnership with private investors.
Furthermore, the ISC provides a curated pathway for whole-of-market transformation. We do this first by stimulating and sharing innovations that deliver sustainability outcomes. These innovations are then socialised as “best practice” through the ratings tools, and normalised as “better BAU” when we upgrade the ratings. Finally, some of these become requirements when Government agencies mandate them in formal regulation.
The ISC’s ability to convene the sustainable infrastructure community plays a critical role in delivering impact. We continue to see growth in the number, attendance and positive response to the ISConnect conference and other events.
These provide opportunities to share best practice and lessons learned, strengthen relationships across sectoral and jurisdictional boundaries, and build consensus on how to respond to the challenges and opportunities facing the entire value chain.
We are excited by the incorporation of the IS Ratings Scheme into the Environmentally Sustainable Procurement Policy. Australian government construction projects over $7.5m must now report on sustainability outcomes, and the IS Rating tools is an approved reporting pathway. We are proud to have worked with government in developing this policy.
The IS Ratings’ requirement for independent third-party verification has helped many asset owners in preparing to address the new challenges around anti-greenwashing legislation and the expectations of the Australian Stock Exchange, Australian Sustainable Finance Institute and Australian Accounting Standards Board for thirdparty assurance of ESG data under the Australian Sustainability Reporting Standards.
These signs of progress are landing in challenging times. The pipeline for transport infrastructure projects is closing faster than the clean energy project pipeline is opening. The Infrastructure Investment Review, while unquestionably necessary, also reduced the number of projects. Skills and labour shortages, rising material costs and “value engineering” are putting further pressure on projects seeking to secure ratings scores agreed under more favourable market conditions. We are mindful of the challenges this presents for registered projects, and remain committed to working with asset owners, project teams and verifiers to deliver more effectively. We remain equally committed to doing this without compromising on our core purpose of making infrastructure more sustainable.
The better outcomes that certified projects deliver remain at the heart of ISC’s contribution. This year, 25 certified As Built projects contributed 144,000 tonnes to the total of 1,353,000 million tonnes of avoided lifecycle materials emissions and 1,447,000 tonnes to the total of 23,546,000 tonnes of lifecycle operating emissions avoided since 2018. In both FY23 and FY24, 100% of ISC certified projects made use of innovative materials; nothing reflects “better BAU” than that!
The Infrastructure sector urgently needs to expand the workforce’s capability to meet national net zero targets and deliver real social value. The Sustainability Skills Capability Framework we launched in July 2024 offers employers, recruiters and professionals a clear picture of the essential skills for sustainability practitioners from graduate to senior professional. We will continue to build on this Framework as we expand our training programmes.
This year’s report outlines the governance, structure and scope of the IS Ratings Scheme. The launch of IS Planning Version 2.1 and IS Essentials completes the Scheme’s coverage of the whole asset life cycle, from strategic planning to operation. IS Essentials provides practical and cost-effective downscaling for projects from as little as $5 million without compromising our “better than BAU” core purpose. The wheels of progressive improvement continue to turn in the Technical Working Groups, fine tuning the verifier’s role, and the approval of all certifications by the ISC Executive and Board. This work plays a critical role in ensuring the integrity and ambition of the Ratings’ process.
In a similar vein, the launch of Infrastructure Net Zero, and the working groups addressing modern slavery and the water sector provide the thought leadership that lays the foundations for influencing the development of future policy and practice.
In summary, we are proud of the impacts and progress the ISC has delivered in FY24, This is as much for the impacts themselves as for the foundations they lay for delivering even greater impacts as we move forward. Specifically, we are keen to deepen our engagement with the water, energy and financial industries to expand our reach into these sectors.
A final word goes to the ISC team. Their passion, professionalism and expertise make possible every outcome and impact we have achieved. Thank you to all of our readers, members, and stakeholders. Deb and Toby Chair and CEO’s Message Deborah Spring, Chair Toby Kent, CEO 6 Infrastructure Sustainability Council 2024 Impact Report 7