FIDIC's Strategy

 BRolf Sägesser, SKS, Zurich

Chair of the FIDIC Sustainable Development Task Force

Contents (Reference: FIDIC Strategy Strategy Paper)

1. Sustainability Markets
2. FIDIC’s Strategy
3. FIDIC’s Framework of Actions
4. Acknowledgements

There are signs that sustainability markets are emerging rapidly in some sectors. For instance international capital markets have, within a relatively short time, developed sustainability strategies in their portfolios. The performance of these portfolios is above average.

Or, another example, pension funds in the UK from this year on have to inform their members and the public in a "statement of investment principle" on the inclusion of ecological and social criteria into their economic decision making.

Or, a further example: one of the largest globally active forest-industry company, the Swedish "Stora Enso" publicly commits itself to do without using genetically manipulated seeds for its tree plantations.

These and more examples show there is a definite demand for a (more) sustainable development in this world, and some markets can be clearly identified, such as:

• Industry, and
• Capital Markets,

Others are emerging, in particular

• Infrastructure,

and of course, interlinks or combinations of those sectors, such as

• Tourism

A long-term key to changing markets will be

• Training and Education, and
• Capacity Building.

Consulting Engineers, National Associations and FIDIC as a global Federation must and can be more prominent players in these markets. In the field of "Infrastructures" we actually must be leaders, while in others we ought to at least be partners and contribute.

Let’s take a look at "Infrastructures": The classic conception of an infrastructure such as rail, road, airport, energy, water, city-planning etc. is colliding with the demands of sustainability. A sustainable infrastructure, which considers economic, environmental and social requirements will, however, increase the longterm international attractivity and competitiveness.

Only premature politics and management tools towards that goal do exist. Clients will have to change too. The pressure will in many cases come through the capital markets in privatised infrastructure projects.

• Why haven’t we done more?

• Why is it so difficult to change?

The answer might be: because we face a paradigma change. That is never easy; it can even stir up emotions, or give a feeling of insecurity.

Today, only 28 years after the publication of the Club of Rome’s book on "Limits to Growth" hardly anybody disputes being aware of those limits to growth, be it on European motorways congested with trucks which apparently all deliver just in time, or watching the sprawl of American home developments, or looking at the consequences of some recent dam projects, not to mention the development and detoriation of some Mega Cities in the world.

Better health, growth of population, greater wealth and the chance to use that wealth for goods and in mobility have brought human society in many areas rapidly closer to some of the limits of growth, despite a remarkable increase in the efficiency of use of resources.

Developing all the means for housing and infrastructures of all kind will always be needed, but a gloom of concern is lingering with many of the engineered investments. Side effects and after effects are more and more recognised, whether properly assessed by a study or simply felt. The result is a split image of our profession at large.

And that’s why this change - for some of us and some of our clients a paradigma jump - has to be made.

The Executive Committee of FIDIC recognised the need for action and established a Task Force on Sustainable Development two years ago with the following term of reference:

1. To prepare a strategy paper on Sustainable Development by GAM 1999.
2. To define possible further tasks, including possible management tools, in line with other industries.
3. To review the existing ToR of FIDIC’s Committee on the Environment (ENVC) and other Committees.
4. The Task Group should represent through its composition aspects of engineering management and environmental engineering.
5. Member of UNEP and WBCSD/ICC should be asked to act as a Steering Committee to this Task Group.

The Task Group had prepared a Draft Strategy Paper for last years Conference in the Hague. In a workshop it was presented and discussed. After that the draft went for formal comment to the MA’s. From both the workshop discussion and MA circulation a broad support and some valuable additions came back to the Task Group by the end of last year. The main concerns were the following ones:

• what should we or can we do differently?
• how should we communicate with our clients?
• does this Strategy Paper make FIDIC’s documents on the environment obsolete?

We from the Task Group are convinced that the results of the Task Group do help to answer these and other questions.

The Strategy Paper in short:

The key in understanding is that besides environmental considerations, the social and economic dimensions are all equally important. The FIDIC Strategy for sustainable development focuses on two main aspects, namely professional policy, comprising professional attitudes, public relations and co-operation, and professional services, comprising the services delivered by FIDIC members.

The printed Strategy Paper includes lists of detailed objectives on the level of FIDIC as an umbrella Federation, on the level of member associations and of course – on the level of member firms, which after all form the true front of everyday action.

The objectives of the environmental dimension point out the principles on the key issues: materials, toxic materials, energy requirements, renewable resources and greenhouse gases which bring existing environmental practices up to date.

For the economic dimension the Strategy Paper provides guidance on it’s objectives, such as life-cycle costs, internalising costs, alternative financing and economic instruments.

Equally in the social dimension: stakeholder participation, public participation or institutional framework belong to the vocabulary, which might be new to many of FIDIC’s members.

3. FIDIC’s Framework of Actions

Where does the Strategy Paper fit in with FIDIC’s documents? Firstly, the Strategy is a consequence of the results of the FIDIC Task Force 21, which presented 1998 its findings in the report "Engineering our Future". The Sustainability Task Force does not in anyway overlap or compete with the efforts and FIDIC’s documents on the Environment. It is rather the timely continuation and expansion of that topic.

FIDIC GAM adopted in 1990 the Policy Statement on the Environment. Four years later, the "Green Book", theGuide for Actions was released. That Guide is still valid and used in many places. Among the tools, in 1995 the Environmental Management System Training Resource Kit, together with UNEP and ICC was worked out, a milestone in co-operation. This document is translated in the meantime in more than 14 languages.

The equivalent of the Policy Statement is this Strategy Paper, now in your hands. The equivalent of the Green Book will be the Business Guideline, available as a draft, presented by my follow speaker. Once more, the Business Guideline will not contradict the Environmental Guide for Action, rather expand it to the socio-economic dimensions.

Future tools most likely will be sustainability indicators. It must be FIDIC’s interest to be at the global table, where such indicators will be discussed, drafted and decided on. There is no question, that the society at large is looking for higher accountability. So there is the next item for the Task Force.

4. Acknowledgements

As one can imagine, to form a Task Group on Sustainability is quite an experiment. In the first year, varied, sometimes controversial input from our Task Force members were received, to which valuable, but once more controversial input from UNEP, WBCSD and FIDIC’s EC was added. This process in the group led eventually to a clear vision and today’s products.

I like to thank all my collegues, experts and liaison persons who contributed. It was for all a very special challenge and effort. A key contributor was Ike van der Putte with his expertise. I wish my successor, Bernd Kordes luck and energy for the success of his task. He will present the Draft Business Guideline.