ISC Member Update from the CEO – March 2025

Industry Insights and Reflections from Australia, New Zealand and Beyond 

The recently published WEF Global Risk Report 2025 highlights similar risks – and potential opportunities – that werediscussed at ISC’s Connect Conference Big Ideas Panel sessions.  The report emphasises escalating geopolitical tensions, extreme weather events, and societal polarisation as top global risks. While state-based armed conflict, extreme misinformation and economic downturns are pressing concerns, over the long-term biodiversity loss and ecosystems collapse, natural resource shortages and critical change to earth systems rise in significance.  More than ever there is a need for urgent, coordinated global action and enhanced dialogue and collaboration. 

Diversity and Inclusion 

As highlighted with International Women’s Day on March 8, diversity, equity, and inclusion are crucial for fostering collaboration and innovation, improving decision-making, and creating equitable opportunities in workplaces and communities. They also ensure the needs and perspectives of all communities are presented in the development of sustainable and resilient infrastructure. Many ISC member organisations are leading in the diversity and inclusion space – at the project, programme and organisational levels. ISC supports these efforts through the workforce sustainable category in our tools, our mentoring, capability building and awards programs.  

A related The Conversation article reminds us, we must resist attempts to tear down the progress that has been made and remind ourselves of the many good reasons why we pursue diversity and inclusion in the workplace. In an increasingly complex industry, the ability to draw on and give voice to a wide range of perspectives is essential for success. 

ESG Reporting 

As the need for rigorous ESG performance and reporting grows – coordination and streamlining of requirements is also key, as we acknowledge at ISC with our verification and rating tool update work, our participation in Infrastructure Net Zero and our recent TNFD alignment note.  

To support effective and efficient ESG reporting, we note the European Commission has recently adopted a package of proposals to simplify EU rules, focusing on the fields of sustainable finance reporting, sustainability due diligence, EU Taxonomy, carbon border adjustment mechanism, and European investment programmes. The proposals aim to reduce complexity for businesses, focus the regulatory framework on the largest companies which are likely to have a bigger impact on the climate and the environment, while still enabling companies to access sustainable finance for their clean transition. 

Climate Adaptation and Resilience 

In response to extreme weather events and other climate change impacts, there is an increasing focus on Climate Change and Infrastructure Resilience. At an Infrastructure New Zealand’s event in February, Richard Threlfall, Global Head of Infrastructure, Government and Healthcare for KPMG, made a call for greater action, noting that of the overall global spend on climate change an estimated 1.2% is allocated to adaptation and of the global infrastructure needed to respond to climate change there is still 70% to build. New Zealand Infrastructure Commission’s “Invest or Insure” report (2025) is a good summary of the decisions and challenges for the infrastructure sector in responding to natural hazards. The report highlights the very real connection between infrastructure and community resilience: 

• If infrastructure providers are unable to restore services in a timely manner post-event, there can be substantial consequences e.g. public health impacts, reduced economic activity.  

• If we don’t plan our communities well and build to the appropriate standard, we will be exposed to unnecessary levels of risk.  

• If the government and other infrastructure providers are unable to pay for the damages caused by events, we will be unable to recover. 

The Resilience and Climate Change Adaptation categories in the IS Rating Tools reward and support projects to undertake the work to plan for, design and deliver more resilient infrastructure assets and networks.  

Supporting Nature Positive and the Circular Economy 

Our focus on Nature Positive and nature-related reporting continues to expand. Building on our TNFD Alignment Note we are in conversation with members adopting the TNFD in their organisations and working with Jacobs on a Nature Positive thought leadership piece for the water sector.  

In early March, the Australian Clean Energy Regulator announced the availability of the first method under the Nature Repair Market scheme, focusing on replanting native forest and woodland ecosystems. The Nature Repair Market is a world-first, voluntary biodiversity market designed to drive investment in projects that restore and protect the natural environment.  

We also note at the end of 2024, the Australian Department of Climate Change, Energy and the Environment and Water published the first national Circular Economy Framework, which highlights the need to double the country’s circularity rate by 2035. According to the framework report, the built environment accounts for a third of resource consumption globally and is the primary destination for materials in Australia. The framework includes multiple case studies and identifies priorities and enablers for the built environment as well as cross-sector objectives related to innovation, market development and investment, advanced resource recovery and recycling, systems thinking and circular economy skills, collaboration and place-based approaches and behaviour change. 

Dr. Kerry Griffiths -IS Technical Director, Infrastructure Sustainability Council