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1EnvironmentandSustainabilitySustainabilityindicatorsDecisionanalysisCasestudy:theNewburybypassLecture4Canweassesssustainability?2Wehaveseenthatinordertoachievesustainability,wemusttakeaccountofeconomic,environmentalandsocialfactors.Canthesefactorsbemeasured,sothatwecanguideouractions?Canwetellwhetheroneprojectorproductis“moresustainable”thananother?[Ifnot,istheconceptofanyvalue?]‘Developmentwhichmeetstheneedsofthepresentwithoutcompromisingtheabilityoffuturegenerationstomeettheirownneeds.’TheBrundtlandReportEnvironmentEconomicsSociety3ToolstoAssessSustainabilityWesetourselvesthetaskofmeasuringthesustainabilityofcomplexanddynamicsystemsinthemostobjectivewaypossible.Whatweneedaresometoolstodothejob.Thetoolswehaveare:StakeholderAnalysis:IdentifiesissuesandprioritiesLifeCycleAnalysis,Footprinting:QuantifyresourceuseandimpactsIndicatorsets:GiveaquantifiedoverviewMulti-criteriadecisionanalysis:StructuresdecisionsAsetofindicatorsmeasuresthecharacteristicsofthesystem.Theideaissimple…4SustainabilityIndicatorsandDecisionAnalysisAnexample:Fortakingchildrentoschool,wewanttocomparetwocars(LandRoverFreelander,ToyotaPrius),thebus,andthebicycle.Whichismostsustainable?PossibleindicatorsmightbeEnvironmental(kgCO2per10miletrip)
Economic(costper10miletrip)[data:Prius£8.5,LR£12.9,bus£3.0,bicycle£0.6]Social(Childsafety,contributiontoroadcongestion)5Themethodology:1.Chooseindicatorsandassignweightingstoeachindicators.2.Scoretheindicatorsonascale(inthesamesense,eg1=bad,10=good).Sometimestheycanallbereducedtoamoneybasis.3.Calculateweightedscores.4.Usethescorestoidentify“good”and“bad”options.Manytechniquesarepossible,suchaspairwisecomparison,orweightedtotals.5.Examinesensitivity.(otherindicators,weightings,scores…)SustainabilityIndicatorsandDecisionAnalysisCO2w=0.5safetyw=1.0congestionw=0.5costw=0.8totalPrius218831.521.612.1LR10.58831.510.810.8bus429994.532.417.9bicycle10533105108216CO2w=0.5safetyw=1.0congestionw=0.5costw=0.8totalPriusLRbusbicycleSustainabilityIndicatorsandDecisionAnalysisScoresareonthescale:10=good,1=bad7Thebicycleisthepreferredchoice.Wemustnowtesttherobustnessofourdecisionbydoingasensitivityanalysis.ThismethodologyisknownasMulti-criteria,orMulti-attribute,DecisionAnalysis.Manybookshavebeenwrittenaboutit.Themethodologystructuresthedecision-makingprocess,makingittransparent.Ifattitudesorcircumstanceschange,thedecisioncanberevised.MCDAdoesnotreconciledifferencesofopinion,justclarifiesthem!SustainabilityIndicatorsandDecisionAnalysis8AcloserlookathowtochoosethemSustainabilityIndicators9Safeandefficientcontrolofacomplexprocessneedshundredsofmeasurements(T,P,Fetc.).Eachoneisanindicatoroflocalperformance.Overallperformancecanbepresentedintermsofafewkeyindicatorslikeyieldofgasolinepertonneoffeedstock,ortheprofit($/day).Catalyticcracker,ShellStanlowrefinery
Photo:ShellUKSustainabilityIndicatorschosenforapurpose10Cleardefinitionofwhatistobeassessed,andwhy(Governmentpolicy,factoryoperation,etc)themetricsmustassessimpactsonthedifferentcapitals-economic,environmental,societalCoverage–keyaspectsmustbeincludedAvailabledata–quantifiableempiricaldata,notqualitativejudgementsAvoidduplicationandneedlesscomplexityCompositesifappropriate(recogniseweightingproblem)Asetofmetricswhichisnotplannedforsomedefinedpurposeismerelyacollectionofstatistics.SustainabilityIndicatorschosenforapurpose11egValueadded,margin,NIBTegrawmaterialsused,materialsrecycledSocial&HumancapitalNaturalcapitalFinancial&Assetcapitalegabsenteeism,promotions,wageandbenefitpackageratio(top10%relativetobottom10%),HSEThesustainabilityfootprintmeasuredbythesetof50IChemEmetricsSource:DartonRCTransIChemEB812003295-302(Resourceusage)EnergyMaterialsWaterLandAtmosphericAquaticProfit,value,taxInvestmentWorkplaceSocietyLand(Pollution)SustainabilityIndicatorsformanufacturingoperation12Metricsmeasuretheinteractionsintermsofthetwoperspectivesefficiencyofusingorenhancingcapitalfairnessindistributingbenefitsanddisbenefits(includinginter-generational)interactionsinteractionsinteractionsThebusinessSocial&HumancapitalNaturalcapitalFinancial&AssetcapitalAmethodologyforselectingasetofmetricsforabusiness13Source:CheeTahir,A.andDarton,R.C.JournalofCleanerProduction18,1598-1607A.OverviewofbusinessB.DefinitionofSustainabilityD.SustainabilityframeworkAnalysebusinesstoidentifyallsignificantimpactsonSustainabilitydomains-storesofvalue(capital)CharacterisetheseimpactswithmetricsC.DefinitionofsystemboundaryintimeandspaceThebusinessdescriptioninAmustincludeallprocesseswithintheboundaryNaturalcapitalFinancial&AssetcapitalSocial&HumancapitalProcessAnalysisMethodforselectingasetofmetricsforabusiness14SustainabilityIndicatorsforabusinessAcomparisonofpalmoilestatesEstateEnvironmentalEconomicSocialScoreRankScoreRankScoreRankA74.14277.52284.622B69.83469.07475.813C79.73177.60188.951D72.90372.65373.374Eachscoreisacompositeofaround20metrics,eachnormalisedbytheindustry'sbestperformance,in%.Source:AidilCheeTahir,DPhilThesisOxfordUniversity15CharlesGoodhart
NormanSosnowProfessorofBankingandFinanceattheLondonSchoolofEconomicsGoodhart'sLawWhenameasureesatarget,itceasestobeagoodmeasure.asre-statedbyProfessorMarilynStrathernMeetingthetargetforonesustainabilityindicator,shouldnotmeanthatsomeotheraspectessignificantlyworse.Thisimpliestheneedforcompositetargets,aswellascompositeindicators.SustainabilityIndicators:awarning16Decision-makinginacomplexworldTheMkIIIEngineerrecognisestheneedforsustainability,mustdealwithuncertaintyinthedecisionmakingprocess,andconsultsandengageswithstakeholders.
Multifaceteddecisions,tradeoffmonetary&non-monetarybenefits.Roleasinformedexpertinpublicdebate&decisions.Dealingwitharangeofcriteriaisanenormouschallenge,egtheNewburybypassdilemma:howdoyoubalancethelossofnaturalhabitatagainstanimprovementintownenvironment(andsafety)andshorterjourneytimes?17TheNewburybypass-thecaseforitTheA34isastrategicallyimportantrouteconnectingtheMidlandsandtheNorthwiththeSouthCoastports.ItispartoftheTransEuropeanRoadNetwork....the13.4kmdualcarriagewaybypasswilltaketheheavythroughtraffic(includingsome400HGVanhouratpeaktimes)outofthecongestedtownandofftheonlyremainingsectionofsinglecarriagewayontheroute.Significanteconomic,environmentalandsafetybenefitsareexpected...Extensivestepshavebeentakentorelocateaffectedwildlife,protecthighqualityrivers,reducenoisebyuseofaporousasphaltroadsurface,andtoreplacewoodedareaswithmanymoretreesthanwerelost.(RoadsReviewConsultationdocument)18“TheGovernmenthasrecognisedthesuperbwildlifevalueoftheriversLambournandKennet[designatedSSSI’s].NowtheDepartmentofTransportplanstobuildatrunkroadacrossthesesites.EnglishNaturemuststandupforwildlifeandchallengetheproposeddamagetothesebeautifulrivers.”TonyJuniper,FriendsoftheEarthThetworivershavebeendescribedas"unique"bytheNationalRiversAuthority.EnglishNature*hasfoundthatthestretchesofbothriversintheNewburyareahavea"particularlydiverseflora,comparablewithanyriverinEngland".
But"EnglishNatureisnotacampaigningorganization,butrathermustpresentthenatureconservationcaseatPublicInquiryandthenabidebythedecisionmade."-apositionthatmanycampaignersfounddisappointing.*nowNaturalEnglandTheNewburybypass-thecaseagainstit19TheNewburybypassdilemma“TheNewburybypassinBerkshire,UK,wasatthetimeofconstruction,oneofthemostinfamousroaddevelopmentsintheWorld-debatedandarguedaboutbyalltypesofpeople,politiciansandenvironmentalists-locally,nationallyandeveninternationally.OneofthemajorbonesofcontentionwasthetotallackofanEnvironmentalImpactAssessment(EIA)atNewbury.ThisstaggeringdisregardofEUlawbythethenConservativeUKGovernmentsoinfuriatedsomelocalresidentsthattheypetitionedthemattertotheEuropeanParliamentinBrussels.”(TheNewburyBypassProject–localmonitoringgroup)20TheGovernmentmaintained,andtheEuropeanCommissionconfirmed,thatatthedatewhenconsentwasgiven,anEIAwasnotneeded.EIA’swereonlyneededafter3/7/88.TheNewburybypassdilemma21“howdoyoucountthecostofdevastationtonaturereserves,sensitiveeco-systems,archaeologicalsitesandwatermeadows.”Aftermanyprotests,theroadwasopenedin1998."ThetreeIwasinduringtheevictionwasstillthere…thelandscapehaschangedbeyondrecognition.Ifeelgutted,itreallyhashappened."TheNewburybypassdilemma22Thetotalcost,overandabovethetenderpriceof£74million(plusastandardtenpercentcontingencyforcivilengineeringprojects)isasadirectresultofprotestaction.Weestimatethatitwillremove20,000vehiclesadayfromNewburyandsave28livesoverthenext30years.”TheHighwaysAgency17/11/1998“The£104millionNewburyBypasswastodayopenedbyHighwaysAgencyChiefExecutive,
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