Socially valuable, sustainable and just infrastructure – a call to action

Social Value

Proving the social value of infrastructure projects will be an increasingly integral part of project development. Focusing on how infrastructure can improve economic well-being, quality of life, and equity of individuals must be addressed as more than an attribute that is nice to have.

Governments are more frequently asking developers to prove that they are providing more than just an infrastructure asset. They want companies to ensure that the infrastructure they build is a vital component of the community. To keep this kind of momentum going, more public-sector planners will need to integrate social value elements earlier into their planning cycles and ask more of the private sector.

Additionally, the definition of social value needs to be expanded to include respect for civic pride and community heritage. Measuring social value is challenging, but both public and private sector stakeholders will have to work together to ensure that infrastructure sector assets work and work well for our communities.

Systemic injustice

Often, to varying degrees of intent, infrastructure design has exacerbated systemic injustices. In the past, transportation planning has perpetuated systemic racism by dividing and isolating communities of colour. Many of America’s famous freeways were built over thriving black neighbourhoods, designed to shuttle wealthy white Americans from city jobs to homes in the suburbs. These infrastructure design and housing policy choices have segregated cities for generations and reinforce systemic racism in everything from school quality to wealth accumulation.

More needs to be done to quantify and measure the ways these decisions have solidified systemic injustice. New tools and technologies also need to be developed to help decision-makers structure business cases that are more aware of the infrastructure’s ability to hurt or heal. Community engagement also needs to be stronger, and a more diverse set of stakeholders brought into the planning and design process in a meaningful way.

Sustainability

The case for building more sustainable infrastructure in the urban context was clear before the Covid-19 pandemic spread across the world. However, there were still enormous challenges in addressing climate change. Now, new dimensions precipitated by Covid-19, such as social distancing, will add another layer of complexity.

The growth in investments with a heavy ESG focus is a positive development and can help close the funding gap for infrastructure. The continuing emergence and definition of a sustainable infrastructure asset class will complement this and has the potential to accelerate the development of sustainable infrastructure projects and systems significantly. A broader understanding of sustainability is also on the rise, with a more significant focus on resilience and technology. The pandemic has also given us a preview of how major events can cause massive industry disruption and change. The rapid move to remote working has compressed into a matter of weeks a digital transformation that many thought would take years. This could augur well for a post-Covid-19 world that still needs to tackle climate change.

Project Performance

To state the obvious, successful projects and programs lead to infrastructure assets that serve our communities. As we craft our vision for building back better, we cannot lose sight of how we design, engineer, construct and commission these assets by undertaking projects and programs. The industry has always taken on large and complex projects to meet societal needs. However, project performance is far too frequently below stakeholder expectations, sometimes damaging levels of trust, as well as the sector’s public image. Now, most projects are experiencing supply chain disruptions, productivity decreases, and work stoppages caused by the pandemic. This has brought key stakeholders together in a call to action on how to reasonably treat and address the direct and indirect costs incurred on projects due to the pandemic in the short term.

In the long-term, the issue of delivery needs to be addressed holistically. A clear definition of the rationale and scope of the project is necessary so that we are not rushing projects and only proceed with those that are shovel-worthy. We need to enhance transparency over the project lifecycle by using international standards and best practices. The use of technology and data and an evidence-driven approach is required. Critical decisions on projects must be made by pulling data and evidence that ties the social, economic, and environmental considerations. Project sponsors must become more intelligent about data and information used on projects. It is crucial that decision makers know how to harness, cultivate and apply large volumes of data. It furthermore is essential in the project delivery process that we can convert data into meaningful actions based on strategic and tactical questions for the benefit of projects.

Funding

It is no secret that the infrastructure sector has needed a large infusion of money for some time. The pandemic, and ensuing economic downturn, has further complicated the funding and financing situation for much-needed projects. Ageing assets in mature economies that were built and operated using now outdated assumptions and principles need revitalization in line with the aspirations of our communities. New infrastructure assets need new thinking, and in many cases, an upfront investment that provides the human-centric outcomes that we all desire.

So how do we enable more private sector funding and better public sector accountability of infrastructure projects after the large general stimulus measures already enacted by governments around the world? Public debt funded projects are going to be hard-pressed because so much public money has gone into the immediate pandemic response. Can we make the levers of sound environmental, social, and governance measures open doors for projects that are investment ready and more attractive to private investment? The public sector must be open to changes in laws and regulations that promote an environment for seeking private-sector financing and technological innovation.

In conclusion

Aligning our commercial energies with a collective goal of bettering society, rather than having them at odds, is essential to harness the energy and enthusiasm our industry has to offer. It is crucial to realize the role of circular economic principles in the financing of our infrastructure projects and programmes and also in reshaping the design, delivery, and management of infrastructure assets.

As we reimagine the infrastructure sector, it is vital to understand the workforce requirements needed by the industry. Reimagining the way we deliver and manage infrastructure assets for our communities also requires that we reimagine the additional skills and competencies required for the workforce that make up the fabric of our industry, and that will eventually be joined by a pipeline of new workers. We need collaborative efforts that join up industry, government, and academia.

In this context, we need to take a ‘whole-of-industry,’ a ‘whole-of-life,’ and a ‘whole-of-asset/system’ approach.