S U S T A I N A B I L I T Y M A N A G E M E N T

in the consulting engineering industry

Project Sustainability Management

INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS

Guidelines
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2004
 f o r e w o r d

Many owners of projects aim to commit to FIDIC is proposing PSM as a new area of
the principles of sustainable development by building or knowledge management for use on projects, operating
refurbishing facilities and infrastructure that make more in parallel to the conventional areas of quality, risk and
efficient use of resources, protect ecological systems and business integrity management. Firms will be able to
account for community needs. add a new dimension of value to their work by helping
clients not only apply new and more sustainable
However, they need to know if their designs processes, systems and technologies, but also
and project delivery processes make a genuine contribution demonstrate effectively their contribution to sustainable
to sustainable development. They ask: “How is the intent to development in a way that encourages the sharing of
deliver a project that makes a contribution to sustainable knowledge. It also will help establish an environment for
development translated into reality, and then measured?” innovation so that all parties can cooperate in an
atmosphere of openness, transparency and trust.
Goals for sustainable development tend to
focus on broad problems and issues facing all of society, FIDIC has had a long and continuing
such as global warming, biodiversity, access to fresh involvement in sustainable development. The Federation
water, and materials and energy use. While this whole- has published several guidance documents including
society focus is absolutely essential, it makes it difficult Sustainable development in the consulting engineering
for project owners to clearly define and specify the industry: a strategy paper [1] and Business guidelines for
requirements for sustainable development. sustainable development [2]. FIDIC contributed to the
United Nations Environment Programme (UNEP) multi-
FIDIC’s Project Sustainability Management stakeholder consulting engineering industry sector
Guidelines address this fundamental issue. In the Project report [3] to the 2002 World Summit on Sustainable
Sustainability Management (PSM) process, the project Development, and sustainable development has been the
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owner and the consulting engineer balance the owner’s focus of several FIDIC annual conferences since 1990.
project vision against cost and available alternatives, by Finally, FIDIC collaborates with UNEP, the International
working together to select appropriate project goals and Chamber of Commerce (ICC)and the International Council
indicators for sustainable development which are linked of Local Environmental Initiatives (ICLEI)in the
back to higher level goals. Stakeholder input is sought development and dissemination of environment
throughout the process. Objectives for sustainable management systems for industrial facilities and for
development are therefore addressed in much the same urban administrations.
way as other project objectives are addressed in the
project’s quality management plan. The main drafters of this document were:
Bill Wallace, Wallace Futures Group, USA; John Boyd,
PSM enables project owners and consulting Golder Associates, Canada; Peter Boswell, FIDIC,
engineers to devise and customize indicators to meet Switzerland. They were assisted by other Task Force
stakeholder concerns and issues, while demonstrating a members: Jeremy Boswell, Felehetsa Environmental Ltd,
rigorous, causal link to the fundamental concerns and South Africa; Lorna Walker, Lorna Walker Consulting, UK;
goals of sustainable development. The approach can be Helen Crosby, Arup, UK; Iksan Van der Putte, RPS Group,
used by firms to demonstrate both their clients’ The Netherlands; and by Niels Erik von Freiesleben,
commitment and their own commitment to meeting COWI A/S, Denmark.
sustainability objectives. PSM also provides a
methodology for benchmarking sustainable development The Sustainable Development Task Force
project performance, and for ensuring that advances in wishes to thank the many organisations and individuals
one dimension of sustainable development are not who have helped develop project sustainability
accomplished at the expense of another. management. Special thanks go to: Professor Tomonari
Yashiro, Tokyo University; Dr Wim Bakens, International
Council for Research and Innovation in Building and
Construction (CIB), The Netherlands; Professor Steve
Halls, Queensland University, Australia.
 c o n t e n t s

page
foreword

contents

1 background 1
1.1 Sustainability management
1.2 A long journey

2 introduction 3
2.1 The journey towards sustainable development
2.2 Needed: a framework and a process
2.3 Critical: an environment for innovation
2.4 The role of project indicators
2.5 The FIDIC approach
2.6 Status of sustainability indicators
2.7 Project Sustainability Management
2.8 Why use PSM?

3 Project Sustainability Management 9

3.1 Project indicators
3.2 Core project indicators
3.3 Project-specific indicators
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4 PSM implementation 11
4.1 Establish project-specific goals and indicators
for sustainable development
4.2 Adjust goals and project indicators to local conditions
4.3 Test and refine project goals and indicators
4.4 Use project indicators during project implementation,
operation and decommissioning

6 the path forward 19

references 20

appendices 21
A FIDIC PSM core project indicators
B Indicators for sustainable development
C The Equator Principles
D Millennium Development Goals
E Tools for stakeholder engagement
F Case study: sustainable school construction
 1 b a c k g r o u n d

In response to the interest and demands of 1.1 Sustainability management

stakeholders, many organisations in both government
and industry are making commitments to the principles Recognizing these issues, FIDIC’s
of sustainable development. Changes in the way they Sustainable Development Task Force has developed a
manage their operations and infrastructure investments process for setting project goals for sustainable
demonstrate these commitments. They are starting to development and measuring progress towards the goals.
build or refurbish facilities and infrastructure using Embodied in these Project Sustainability Management
designs and methodologies that make more efficient use Guidelines, the Project Sustainability Management (PSM)
of resources and energy, protect ecological systems, and process ensures that a project’s goals for sustainable
take into account the needs of communities. development are aligned and traceable to goals and
priorities that are recognized and accepted by society as
As such activities increase in number and a whole. The process is also designed to align goals with
importance, several questions arise. How should facilities local conditions and priorities, and to assist project
and infrastructure be designed and implemented in owners and consulting engineers in achieving and
order to make a genuine contribution to sustainable verifying progress toward sustainable development.
development? How is the intent to deliver projects
that make a contribution to sustainable development 1.2 A long journey
translated into reality, and then measured? How does
one convince stakeholders that true progress toward Achieving sustainable development will be
sustainable development is actually being achieved? a long journey, spanning many decades. It will require
nothing less than a complete overhaul of our existing
Unfortunately, there is little guidance about systems, technologies and infrastructure, replacing
what constitutes a sustainable project. For instance, them with approaches that are less energy and resource
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while adding environment-friendly features to a project intensive, use less toxic materials, and protect the
and increasing stakeholder involvement may improve environment and society. All this must be accomplished
public relations, they do little to address the real issues in a manner that is workable in both developed and less-
of sustainable development. developed countries.

In the absence of definitive guidance, many Most of the systems, procedures and
non-governmental organisations and public interest technologies needed for sustainable development
groups are applying their own notions about sustainable have yet to be invented. In the absence of major multi-
development to projects and organisations, based on national agreements and investments, progress will
their particular agenda and interests. As a result, project be made project-by-project, driven by the objectives,
owners, consulting engineers and stakeholders alike motivations and actions of project owners. It will occur
have been exposed to a confusing array of indicator incrementally as new and more sustainable processes,
systems, each claiming to be a capable gauge of the systems and technologies are invented, tested and
progress of sustainable development. Regrettably, these applied on individual projects.
systems tend not to provide a clear connection between
the overall goals of sustainable development and the The retooling of the world’s systems,
projects that move society towards the goals. technologies and infrastructure for sustainable
development is one of the greatest challenges and
opportunities ever offered to the consulting engineering
industry. Owners will, by necessity, not only call upon the
industry to help them with this conversion, but also
expect the industry to provide guidance and services for
the assessment of projects.

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 1 b a c k g r o u n d

A prerequisite for success is an environment environment: engineers and their clients, while
for innovation: working conditions in which learning and observing the achievements of others, must engage
creativity are fostered and celebrated, where consulting their stakeholders in dialogue throughout the project
engineers are encouraged to try out new approaches, development, design and delivery cycle. To make this
test new technologies and replace old ways with new and engagement an efficient and effective process, the
more sustainable alternatives. Openness and parties must establish a working context based on
transparency are essential ingredients of this trust and collaboration.
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two
 [We] inhabit the Earth. And we must rehabilitate
our one and only planet.
Kofi Annan, United Nations Secretary General
If you don’t know where you are going, any road will
get you there.
Lewis Carroll

2 i n t r o d u c t i o n

The concept of sustainable development is Advances will be made by setting and

changing the way people think about development and achieving higher and higher levels of project performance.
its effect on the environment and society. It defines a Each new project will build upon the achievements of
path forward, where society can maintain and improve others; goals will be set by combining experience and
the quality of life without jeopardizing the ability of innovation, reaching for improved levels of performance.
future generations to do the same. Sometimes the goals will be achieved; sometimes they will
be missed. Nonetheless, each attempt will add to society’s
The need to make development sustainable collective knowledge about what worked and what did not
is based on sound evidence showing that we are using work, enabling it to make the appropriate adjustments.
up critical resources and ecological carrying capacity
faster than they can be renewed, replaced or replenished. 2.2 Needed: a framework and a process
This is happening at all scales, from local pollution of
streams and lakes, to the loss of biodiversity and a If progress toward sustainable development
warming of the Earth caused by human activities. At the is to be achieved, it is essential to develop a framework
same time, competition for scarce resources involving, and a process for setting project goals and measuring
for example, water removal from major rivers and progress. The framework ensures that a project’s goals
aquifers, deforestation and the depletion of fish stocks, are aligned and traceable back to the goals and priorities
causes socio-political conflicts within and between of Agenda 21; the process guides the planning and
countries. The evidence is viewed by many as sufficient delivery of projects. The process must:
to change our approach to economic growth.
• Assist the project owner and the consulting engineer
in developing practical project goals for sustainable
The task facing society is enormous.
development, striking a balance between the owner’s
Achieving sustainable development will be a long
aspirations, stakeholder concerns and the issues of
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journey, requiring a total overhaul of the way we extract

cost and achievability.
resources, produce and consume goods and services,
• Incorporate substantive stakeholder input throughout
and dispose of unwanted by-products. The foundation of
the project life-cycle, ensuring that all major issues
today’s economic activity is a huge legacy of facilities
are addressed.
and infrastructure: it will take a colossal investment and
many decades of the invention and deployment of
sustainable processes, systems and technologies to Agenda 21
achieve sustainable development.
Agenda 21 [4] was a 40-chapter, 800-page document which
outlined 120 action programmes for achieving sustainable
2.1 The journey towards sustainable development. The importance of Agenda 21 was that it detailed
development for the first time a comprehensive set of goals and priorities
for resource, environmental, social, legal, financial and
The journey towards sustainable development institutional issues. While not legally binding, it was adopted
was first mapped at the 1992 Earth Summit in Rio de by countries representing 98% of the world’s population.
Janeiro. One of the key outcomes from the Summit was
Agenda 21 (see inset). FIDIC believes that the journey will Agenda 21 urged national governments as well as international
be accomplished incrementally, driven by individual and governmental and non-governmental organisations to identify
institutional objectives, international guidance and and develop sustainable development indicators – measures
which would enable decision-makers to monitor, assess,
stakeholder influence. Without an organized, global
diagnose and compare the factors relevant to sustainable
effort to implement appropriate practices along with development. Agenda 21 also urged local government to
substantial technological breakthroughs, progress toward prepare Local Agenda 21, “… a plan of action aligned to the
sustainable development will be achieved project-by- problems and issues specific to their communities.” By 2001,
project, delivered by project owners and the consulting over 6,000 local authorities in some 100 countries had either
engineering firms they engage. made a formal commitment to Local Agenda 21 or were
actively undertaking the process.

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 2 i n t r o d u c t i o n

• Be open and transparent in terms of goals, stakeholder problem is elusive, driven as much by public perceptions
input and the expectations for project performance. as by technological fact. In these changing conditions,
• Provide mechanisms for feedback, the assessment of progress will be marked by a series of fits and starts,
results, the benchmarking of sustainability triggered by events and politics, and by investments and
performance, and knowledge sharing. accomplishments. The role of the engineer is crucial,
contributing logic and structure in a climate of
An essential ingredient for the process is a uncertainty and confusion.
comprehensive set of goals for sustainable development,
and their accompanying indicators, at the project level. 2.4 The role of project indicators
These must cover the full range of sustainability issues
and enable consulting engineers to measure the specific While project goals set the direction, project
contributions to sustainable development, all tying back indicators provide the means to measure progress.
to the goals of Agenda 21. They enable owners, engineers and stakeholders to gauge
progress toward sustainable development by comparing
2.3 Critical: an environment for innovation the performance achieved on a project with the intended
performance. A comprehensive set of project indicators is
A prerequisite for success to achieve also an essential tool for measuring accomplishments,
sustainable development is the creation of an environment demonstrating transparency to stakeholders and
for innovation: working conditions in which learning and building a knowledge base for professionals. The
creativity are fostered and celebrated. In this environment, purpose and use of indicators for sustainable
project owners, observing the achievements of others, are development are summarised in Appendix B.
urged to set stretch goals, seeking to establish new and
higher benchmarks for sustainability performance. At the To function properly, a set of indicators for
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same time, consulting engineers are encouraged to try sustainable development must be:
out new approaches, test new technologies, and replace
• grounded in the overarching principles, goals and
old ways with new and more sustainable alternatives.
priorities of sustainable development;
• sufficiently comprehensive to cover all relevant
Openness and transparency are the essential
aspects of sustainable development;
ingredients of this environment. Project owners and
• of a size that is manageable and effective for
consulting engineers must engage stakeholders in
communication;
dialogue throughout the development, design and
• capable of being customized in order to align with
delivery of a project to ensure that stakeholder issues
local requirements and conditions using a process
and concerns are fully considered. This process operates
which is open and transparent.
in two directions: stakeholders voice their issues and
concerns about a project so that they can be incorporated
As shown in Figure 1, a project goal can be
throughout the project life-cycle by the project owner and
represented on a sliding scale. Conditions of sustainability
the engineer; the project owner and the engineer inform
are achieved somewhere in the high range, at a goal that
stakeholders on the current state-of-the-art and the
varies depending on local conditions, evidence about
limitations of what is achievable. To make this an
resources and carrying capacity, and any technological
efficient and effective process, all parties must establish
developments that could alter the definition of sustainable
an atmosphere of trust and collaboration.
development for this particular goal. For example, new
knowledge of limitations to ecological carrying capacity
Progress is governed by the ability of engineers
could shift the goal to higher levels. In contrast, the
to innovate: to imagine, invent, develop, test and apply
invention of a low-cost, energy-efficient desalination
new processes, systems and technologies. However, in
technology could alter dramatically the availability of
the case of sustainable development, defining the
fresh water, and thus reduce the goal to a lower level.

four
 In setting project goals for sustainable Once this assessment is complete, the
development, the project owner has several choices. project owner and the engineer can set goals for
The owner may do nothing more than apply conventional performance in one or more aspects of sustainable
technology, directing the engineer to implement the development, as measured by the corresponding
current state-of-practice, defined as procedures and indicators. Here, they may decide to match what others
technologies normally applied by engineering have accomplished on similar projects. Alternatively,
professionals. In some cases, the state-of-practice often they may attempt to set new levels of performance using
lies on the sliding scale just above some compliance level new, but relatively untried, approaches. As the project
defined by global treaties, and by local and national laws progresses, the indicators will enable the owner and the
and regulations. However, in many if not most cases, engineer to measure and record performance.
there are no laws, regulations or treaties associated with
project indicators for sustainable development. Each success in the application of more
sustainable processes, systems and technologies will
The project owner may decide to make a raise incrementally the definition of the best-in-class.
contribution to sustainable development by applying With repeated use, applications once considered
processes, systems and technologies that perform advanced are reclassified as state-of-practice, driving up
substantially better than conventional approaches. In the specification of the state-of-practice. Over time and
this case, the owner and the engineer may assess: given the right environment, the range of implementation
choices moves towards the high end of the scale,
• what others have accomplished on similar projects;
eventually achieving sustainable development.
• new processes, systems and technologies that hold
promise for setting new levels of performance.
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HIGH

Sustainable development: goal Varies, based on new evidence and

for sustainable development technological developments

New benchmark: set new Advances through innovation and risk taking
performance benchmark with new processes, systems and technologies

Best-in-class: Advances through the application of best-in-

Range of
do what is achievable class processes, systems and technologies Range of
sustainable
implementation
development
choices for the
goals for the
State-of-practice: Represents the current project owner
project owner
apply conventional state-of-practice

Compliance: Varies, based on laws

achieve compliance and regulations

LOW

Fig. 1: Project goals for sustainable development

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 2 i n t r o d u c t i o n

2.5 The FIDIC approach While ensuring that progress in one aspect
of sustainable development is not made at the expense
Following the Earth Summit, the United of others, project sustainability indicators also serve as
Nations empowered its Commission on Sustainable guideposts and benchmarks, showing what others have
Development (CSD) to develop a set of indicators for achieved, and inspiring everyone to set new and higher
sustainable development to measure and calibrate levels of performance.
progress towards goals based on the issues, goals and
priorities identified in Agenda 21. The CSD created a list of 2.6 Status of sustainability indicators
indicators organized according to a framework of themes
and sub-themes that could be traced back to Agenda 21 [5]. Organisations including the United Nations,
The CSD indicators aimed to translate the Agenda 21 goals standards institutions, labour unions, national and regional
into a form accessible to decision-makers at the national governments, local authorities, financial organisation’s
level, to be used as guidance in crucial decision-making. and public interest groups have understood that new
measures and criteria on which to gauge the current
If progress toward sustainable development is status and progress will be required if society is to
to be made on a project-by-project basis, then the CSD advance sustainable development. Many have proposed
indicators must be translated into project-level indicators sets of indicators based on Agenda 21, but reflecting their
which are comprehensive and contain all of the key needs and perceptions.
components of sustainable development. Omission of any
one of these components will distort the evaluation and call Some of these indicator sets, classified by the
into question the project’s value and contribution. As an intended purpose, are listed in the inset below. Some aim to
example, a project might reduce the amount of water used measure whole-society conditions of sustainability. Others
by increasing energy consumption or the quantity of toxic are used as investment tools, where a firm’s commitment
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materials. So the failure to include all of the components and performance with respect to sustainable development
would achieve one sustainability goal at the expense of are seen as leading indicators of financial performance.
others, resulting in minimal or negative progress. Still others are used to measure an organisation’s

Sustainable development indicator classifications

Name Description Examples

Whole-society indicators: sustainability of a particular geographic region or political unit
Global Overall assessment of the current state of the world, mapped UN CSD, PAGE, Millennium
to Agenda 21 Assessment, Ecological Footprint,
Regional/local Response to Local Agenda 21: assessment of factors determined Pastille, Sustainable Seattle,
to be important for the local population Santa Monica, NRTEE
Organisation-based indicators: sustainability of the operations of an organisation
Industry/NGOs Indicators of how an organisation is performing in terms of Global Reporting Initiative
a set of indicators for sustainable development
Investor-based indicators: correlation of corporate sustainability with financial performance
Project risk assessment Principles, processes and indicators for assessing project risk The Equator Principles
Financial performance Any published index that tracks the financial performance of Dow Jones Sustainability Index
companies that have committed to sustainability principles FTSE4Good, Innovest, EcoValue21
“Green” funds Funds holding investments in companies which they believe will have Domini Social Equity Fund,
better than market returns owing to commitment to sustainability Triodos Bank, SAM
Project-based indicators: assessment of a project’s contribution to sustainability
Project screening Indicators for screening projects as to their likelihood of achieving World Bank, The Equator
sustainability outcomes Principles
Project performance Contribution a project makes towards sustainable development SPeAR, CRISP, BEQUEST, LEED,
Includes efforts made in the construction phase CH2M HILL’s 4-step screening

six
 performance against its vision of sustainable development. • Depends on the location
Finally, indicators based on a qualitative rating of projects Many issues and impacts for sustainable development
are used to highlight areas of exceptional performance or that are significant in one part of the world may be
needing improvement. All of these indicator sets have an unimportant in another. Others such as climate change,
appropriate place and application. However, they do not ozone depletion and deforestation are ubiquitous.
explicitly and fully connect projects back to the fundamental • Requires an environment for innovation
issues, goals and priorities of Agenda 21. Progress can only be made if consulting engineers
have the freedom to explore, invent, test, apply and
2.7 Project Sustainability Management evaluate promising processes, systems and
technologies that offer better and more sustainable
In relating whole-society sustainability performance. This requires a high degree of openness
indicators to project-level indicators, FIDIC has and transparency in order to foster understanding
recognized that sustainable development: among the stakeholders, and knowledge development
and sharing among engineers.
• Demands a whole-society concept
Any attempt to measure a project’s contribution to
These Project Sustainability Management
sustainable development must be based on complete
Guidelines describe how project owners and engineers can
and accepted principles of sustainable development.
incorporate the principles of sustainable development into
• Represents a moving target
individual projects. FIDIC’s Project Sustainability
Perceived problems and issues will be altered
Management (PSM) system has two components:
substantially by the course of events and the
emergence of new knowledge. Furthermore, it is likely • A framework of goals for sustainable development and
that changes will occur within the life-cycle of typical the corresponding indicators, both of which map back
projects. Thus, both the quantitative magnitude of an to the issues, goals and priorities of Agenda 21.
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indicator and the indicator itself that are established • A process for setting and amending project goals and
at the start of a project will likely be very different indicators, making them consistent with the vision and
from those found later at deconstruction, goals of the project owner, compliant with Agenda 21, and
decommissioning or renovation. tailored to local issues, priorities and stakeholder concerns.

Dimension Environmental Economic Social

Themes
Sub-themes
Indicators

Fig. 2: Conceptual framework for sustainable development project indicators

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 2 i n t r o d u c t i o n

FIDIC has therefore developed: not an easy task. In the absence of overall guidance,
governments, NGOs, public interest groups and others
• A set of core project goals and indicators for
have produced many measuring systems for sustainable
sustainable development, organized in a framework
development. Being based on a narrow focus, they are
which aligns with Agenda 21.
difficult to relate to the balancing of alternatives that
• A process to amend these goals and indicators,
takes place in real projects, and may even create
allowing them to be customized to actual project
conflicting targets. In contrast, PSM starts with a broad
conditions while retaining their link to Agenda 21. The
set of goals and indicators, grounded in the widely
process addresses the life-cycle of the project, from
accepted principles of sustainable development. Using
concept development through to design, construction,
PSM in conjunction with quality assurance and project
operation, deconstruction and disposal. In this sense,
management, project owners and their engineers can
project sustainability goals and indicators become part
modify the goals and indicators to reflect local
of the overall project delivery process.
conditions, as well as the range of potential solutions.
The PSM framework is illustrated in Figure 2.
The value of PSM to a project owner is
Sustainable development issues are divided into
substantial. The starting point – the core set of goals
dimensions: environmental, economic and social. For
and indicators – is virtually unassailable because it is
each dimension, the issues are organized into themes
founded on the original concepts of sustainable
and sub-themes. Each sub-theme is associated with one
development. Moreover, it recognizes the realities of
or more indicators of sustainable development, where
sustainable development:
each indicator is characterised by a sliding scale
referenced to to the current state-of-practice, applicable • The fact that progress will be incremental and
laws and regulations, and goals. PSM differs from other
perfection elusive.
approaches in that:
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• It focuses on achieving incremental improvements

• A user can customize the set of project indicators based on the accumulation of knowledge and
based on an indicator’s relevance to the project scope, experience through innovation.
conditions and context while maintaining a close • It allows the project owner to demonstrate a
connection to the whole-society issues, goals, and contribution to sustainable development in a way that
priorities of sustainable development. is both transparent and verifiable.
• The process takes into account advances in the state-
of-practice, and the setting of new benchmarks for The value of PSM to consulting engineers is
sustainable performance, through invention and also substantial. In order to effectively respond to the
successful application leading to changes in the challenge of sustainable development and to meet
capabilities of processes, systems and technologies. project owner needs, the engineer gains a deep
• The process provides a mechanism for establishing understanding of a project owner’s objectives over a
performance benchmarks, comparing the project’s entire life-cycle. This creates a close
achievements of others and setting ever higher goals. relationship with the client, and an innovative
It therefore recognizes that although sustainability environment that enables the engineer to deliver services
issues are well established, approaches for dealing which are based on quality and a special knowledge of
with them are evolving very rapidly. sustainable practices and technologies. PSM also adds a
new dimension of project management covering
2.8 Why use PSM? processes related to indicator development and
application, and operating in parallel with the
For a project to make a valid and verifiable established areas of cost, time, scope, human resources,
contribution to sustainable development, it must be risk, procurement, communications and quality
designed and delivered in a way that produces a management. It expands the engineer’s scope of
measurable, net, positive impact across all dimensions services, enabling the industry to add sustainable
of sustainability throughout the project life-cycle. This is development to its portfolio of client service offerings.

eight
 3 P r o j e c t S u s t a i n a b i l i t y M a n a g e m e n t

Project Sustainability Management (PSM) • stimulating proposals about what should be measured;
offers a process for establishing, demonstrating and • categorizing issues and organizing ideas;
verifying a project’s contribution to sustainable • establishing a common vocabulary.
development. If a project owner wishes to incorporate
goals for sustainable development into a project, PSM The second step uses a series of conceptual
provides a process by which the goals can be credibly models to map themes and sub-themes to indicators,
established in concert with accepted whole-society goals thus ensuring that indicators refer back to global
and priorities. Progress towards the goals can be objectives, but are project specific in detail. The models
measured and verified against the underlying social describe the performance of the project for each sub-
issues, problems and priorities. theme in terms of measurable parameters. These
parameters summarise the cause and effect
The process is designed to be highly relationships within the context of the project, and
transparent in order to create and maintain stakeholder ensure that the selected indicators measure project
trust. It is recognized that progress towards sustainable performance. Indicators are chosen for a particular
development will only happen if project owners, project if they influence outcomes and respond to
engineers and stakeholders work together, creating and changed external factors.
applying new and more sustainable processes, systems
and technologies. As an example, the framework for a global
objective of improved health might include the sub-
PSM addresses a broad range of issues theme Drinking water, with a conceptual model that,
(see inset). The management of these issues integrates if safe drinking water were available to a larger
naturally with project management systems based on percentage of the population, global health would
the ISO 9001:2000 international standard for quality improve. The indicator then becomes The percentage of
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management. Such systems are process oriented, the population having access to clean drinking water. For a
so incorporating the processes which are required for project in the developed world, this would involve issues
the successful development and implementation of related to maintaining the quality of water coming out of
project indicators is simple and direct. taps in each building. For the developing world, the level
of improvement might be more rudimentary, perhaps
3.1 Project indicators involving a community source of clean water. For the
latter, it would clearly be advantageous to engage the
Indicators are observed or calculated community in a dialogue about the feasibility and
parameters that show the presence or state of a condition applicability of the systems and approaches to be used,
or trend. They are the tools for measuring and monitoring and the indicators that would be chosen to describe the
progress towards goals, providing a basis for judging the outcome of the project.
extent to which progress has been made, or corrective
action is required. They are also an important management
tool for communicating ideas, thoughts and values. As the
United Nations CSD observed, “We measure what we Project Sustainability Management issues
value, and we value what we measure.” The role and
• How to integrate a project owner’s goals for sustainable
characteristics of indicators are summarised in Appendix B.
development into a project.
• How to show the connection between the achievements of
Indicators for sustainable development are a specific project and whole-society goals and priorities.
typically built in a two-step process. The first step • How to create and maintain transparency in the
involves mapping goals for sustainable development to development of goals and indicators.
the themes and sub-themes that will be addressed. The • How to incorporate the goals and needs of a wide range
framework therefore ties indicators for the various of stakeholders.
themes to overall objectives defined in the global • How project goals and indicators affect project objectives
context. Such a framework helps in: and design.

© FIDIC 2004 nine

 3 P r o j e c t S u s t a i n a b i l i t y M a n a g e m e n t

Core project indicators One outcome is that indicators for the

institutional dimension do not appear in the PSM core
The starting point for PSM is a core set set since none of the CSD indicators for this dimension
of themes, sub-themes and project indicators for are relevant to most projects. It should be noted, however,
sustainable development, derived from national and that the list of PSM core indicators in Appendix A includes
international goals and targets, tied to the original the original UN CSD indicators. Users can refer to
whole-society objectives of Agenda 21, reworded and Appendix A for additional indicators.
adjusted to make them relevant to projects.
Another outcome is that the UN CSD
The framework is the same as the UN CSD indicator Percent of population living below the poverty line
framework comprising four dimensions: social, economic, is redefined as the PSM core project indicator Proportion
environmental, and institutional. The CSD applied the of local workers or firms employed on the project. In this
model that indicators should define the driving force, example, the project owner and the engineer can affect
state and response to each relevant issue for the four the percent of the population living below the poverty
dimensions. This model gave a set of 134 indicators line by employing local workers and firms.
which was reduced to 65 indicators organized into
38 sub-themes by applying a second model, namely that In the PSM process, the list of core project
indicators should relate directly to national policies [5]. indicators can be modified and expanded in a series of
steps, applying local indicators for sustainable
3.3 Project-specific indicators development and stakeholder input. The process does
not, however, allow an indicator to be deleted or
As summarised in Appendix A, the PSM materially modified if it seen as being germane to
core set of 45 project indicators is obtained by applying project sustainability.
GOLDER ASSOCIATES CORP. LICENCED USE UNTIL END-MAY 2007

a further model, namely that each indicator must a)

contribute significantly to Millennium Development Goals
[6]; and b) be redefined in the project context in order to
make it relevant to project activities.

ten
 4 P S M i m p l e m e n t a t i o n

The Project Sustainability Management (PSM)

process for defining and implementing project goals and
indicators for sustainable development can be referred to
quality management for projects involving the classic
PLAN - DO - CHECK - ACT cycle, illustrated in Figure 3.

The project owner and consulting engineer

work together at the early design phase of the project to
plan and develop a set of project-specific goals for
sustainable development. As shown in the inset below,
this first step takes place in three stages and involves
establishing, adjusting and testing project goals
and indicators.

Once agreement is reached on a set of

project indicators, the engineer and the project owner
develop and apply an implementation plan to satisfy the
remaining steps in the quality management cycle. The PLAN DO
inset on page 12 describes how the implementation of Use PSM to develop a set of Start the project: set up a
project sustainability will have a major influence on all of project goals and indicators programme to monitor
the main elements of a quality management system for for sustainable development and measure
sustainability performance
projects. It summaries, for each of the quality
management processes, the impacts, issues and Make appropriate Monitor and measure
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concerns that must be taken into account when defining adjustments: record and selected indicators for
and implementing indicators. report on results; add to the sustainable development
project knowledge base against goals
The following sections describe in detail how ACT CHECK
indicators are developed in the three stages and then
applied by drawing up an implementation plan. Fig. 3: Incorporating PSM into project quality management

Project Sustainability Management process

Stage Activity

1 Establish project-specific goals and indicators for sustainable development

Establish the project scope and setting assumptions
Determine the owner’s vision, goals and objectives
Identify and engage key stakeholders
2 Adjust goals and project indicators to local conditions
Incorporate applicable safeguard policy considerations
Identify and incorporate Local Agenda 21 or other local indicator development activities
3 Test and refine project goals and indicators
Test project indicator functionality
Refine goals based on systems integration considerations
Refine indicators to align with applicable regulations, and protocols
4 Use project indicators during project implementation, operation and decommissioning
Indicators are used for project management, feedback and adjustment, and for project evaluation

© FIDIC 2004 eleven

 Impacts on quality management

Quality element Description Sustainability impacts, issues & concerns

Strategic processes
Customer focus Meet project owner requirements Performance of sustainable processes,
Strive to exceed expectations technologies is not fully predictable
Achieve client satisfaction Need to carefully manage client expectations
Leadership Establish unity of purpose & direction Need to establish an environment for innovation
Fully involve people in the organisation inside the organisation & with project stakeholders
Process approach Manage activities & related resources as a process Traceability & documentation are important
Identify & document for stakeholders for trust & transparency
Continuous Collect & analyze information gained during a project Critical component for improving
improvement for use in a continual improvement process sustainability practices & technologies
Factual approach to Conduct project evaluations & closure reports Critical component for improving
decision-making Use information on future projects sustainability practices & technologies
Mutually beneficial Work with suppliers Crucial knowledge about sustainability aspects
supplier relationships Benefit from supplier knowledge of materials, energy & product performance
Resource management
Resource planning Identify resource needs The use of recycled & non-conventional materials &
and control Ensure sufficient resources are available employing new processes & technologies from
non-traditional sources adds risk
Personnel Create an environment where personnel can contribute Need to establish an environment for innovation
Encourage effective communication inside the organisation & with project stakeholders
Manage relationships with customers & stakeholders Effective communication with stakeholders is
important for building trust
Requires new skill sets involving sustainability
Product realization
Project management Establish a project management plan & a quality Need to clarify expected results
plan plan to fulfill contract requirements. Processes & technologies employed are
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Plans to monitor progress new & unconventional

Change management Identification, evaluation, authorization, Implementing new, processes & technologies
documentation, implementation, control of for sustainable development is a learning process:
change activities expect change; set up a programme to learn from
unexpected results
Closure Close out project processes Detailed reports about the implementation of
Review & document project performance sustainability processes & technologies are an
important component of learning
Scope Document project requirements, scope, activities, Scope can extend throughout the project
duration, schedule life-cycle: development, planning, design,
construction, operation, de-construction
Cost Cost estimates should consider all information, Cost estimates for new processes & technologies
trends, past experience for sustainable development are generally
Establish cost control system not available or highly variable
Communication Establish appropriate communication processes Communication with multiple stakeholders
Understand audiences Need to build trust & transparency
Identify & manage information needs Create an environment for innovation
Risk technologies Risk identification, assessment, treatment Working with new processes & control
Performance information is not well documented,
or may be unknown
Developing performance information may be a
project objective
Measurement, analysis & improvement
Measurement & analysis Effective data measurement, collection & validation Essential for judging & validating sustainability
performance of processes & technologies
Continual improvement Collect relevant information on performance Essential step in learning & transferring
Validate & verify knowledge about the levels of sustainable
Highlight experience that can be used elsewhere performance achieved & the lessons learnt

twelve
 4 P S M i m p l e m e n t a t i o n

4.1 Establish project-specific goals and

indicators for sustainable development

During the early planning and design Establish the project scope and setting assumptions
phase of the project, the project owner and the engineer
work together to incorporate goals for sustainable This stage aims to obtain a detailed
development into the project scope, and to align the understanding of the nature of the project, its scope,
goals to the owner’s overall vision for the project. Key setting, intended use, etc, and of its potential economic,
stakeholders are identified and engaged and the owner environmental and social impacts. The work carried out
and the engineer review what others have achieved in assumes that the project owner has conducted a project
terms of goals for sustainable development, and the new risk analysis and has determined that there are no known
processes, systems and technologies that have emerged. or anticipated conditions or circumstances that could
stop the project.

The project manager uses the PSM core set

of goals and indicators for sustainable development as a
checklist to make sure that the project is sufficiently
well defined in order to assess all aspects of project
sustainability. Some aspects concern physical features of
the project, for example the constructed works, including

Stage 1 Stage 2 Stage 3

Establish project-specific goals and indicators for Adjust project goals and Test and refine project
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sustainable development indicators to local conditions goals and indicators

PSM core
indicators

New processes Determine the Incorporate Include systems

and technologies owner’s vision, safeguard integration
Achievements goals & policy considerations to
of others objectives Stage 1 considerations refine goals
project-specific Stage 2 Stage 3
goals and project-specific final
Establish the Test project
indicators goals and project-specific
project scope indicator
Scope of work based on Incorporate indicators goals and
& setting functionality
whole-society Local Agenda 21 adjusted indicators for
assumptions goals for to local sustainable
& other local
sustainable indicators for conditions Refine indicators development
development sustainable to align with
Identify & development applicable rules,
engage key regulations &
stakeholders protocols

Stakeholder engagement

Fig. 3: The Project Sustainability Management process: goal and indicator determination

© FIDIC 2004 thirteen

 4 P S M i m p l e m e n t a t i o n

the expected usable life, operation, maintenance Determine the owner’s vision, goals and objectives
requirements, and disposition at the end of the
constructed works’ life. Others refer to materials and What does the project owner want to
energy flows. Still others refer to the behaviour of users. accomplish in terms of sustainable development?
A partial list of these information requirements is given in The engineer should work with the project owner to
the inset below. determine the economic, environmental and social goals
for the project. The owner may have specific
sustainability goals in mind, such as saving water,
providing a variety of mobility options, or employing
alternative energy resources.

In this stage, the project owner’s vision, goals

Information requirements and objectives for project sustainability are compared
against the PSM core set of project indicators to make sure
Detailed project scope that the elements of sustainable development the owner
System boundaries, both physical and temporal (life-cycle) intends to pursue can be matched to the indicators. It is
Affected environments, habitats or other environmentally important to recognize that project planning and design
sensitive areas decisions made at this stage will have impacts (see inset
Groups affected, both positively and negatively, by e.g., below) during the project life-cycle, that is, through
employment, involuntary displacement or resettlement, etc.
Affected cultural heritage sites
construction, operation, and deconstruction and disposal.
Life expectancy of the constructed works
Requirements for servicing, maintenance and refurbishment Since progress toward sustainable
Demolition, deconstruction, recovery, recycling, disposal development will be accomplished by individual projects,
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Energy consumption and related impacts such as the project owner may wish to stretch the project’s goals
greenhouse gas emissions beyond what has been accomplished, creating new
Materials usage benchmarks for performance in one or more dimensions
Energy changes and evolution of energy chains
Expected use of the facility
of sustainable development. To these ends, the owner
Access to transport may want to make improvements on current sustainable
performance, that is, apply some new process, system or

Impacts of planning and design decisions at various phases of the project life-cycle on sustainable development
Project life-cycle phase
Development Planning, siting, design Construction Operation Deconstruction, disposal

Decision
Location Recycled materials use Recycling Energy efficiency Building reuse
Function Openness of design Disposition of Indoor air quality Ability to recycle
Partnerships Natural lighting use construction waste Materials use building materials
Financing Access to transport
Cost

Impact
Access Materials intensity Recycled materials use Occupant efficiency Resale value
Quality Energy efficiency Construction Occupant productivity Redevelopment potential
User-occupant efficiency User-occupant efficiency environmental footprint
User-occupant comfort User-occupant comfort
Community contribution
Adapted from [7]

fourteen
 technology which achieves higher performance than has • Incorporate the appropriate performance indicators
been achieved previously. Add or modify the current set of project indicators for
sustainable development to accommodate the
If the project owner is seeking to advance benchmarking indicators for the proposed technology
current levels of sustainable performance, the consulting application. Additional indicators may be needed to
engineer and the owner should work together to: capture important performance information regarding
the application of a new technology or technique.
• Benchmark the performance of other projects
Locate other relevant projects and learn what others In working together early in the design
have achieved; identify the indicators and methods of phase, it may be useful for the engineer and the project
measurement used to track performance. owner to apply the concepts of eco-efficiency to the
• Evaluate proposed processes, systems & technologies design of the project (see inset below). It is also valuable
Perform an evaluation of the selected new approach to undertake an interdisciplinary planning process
based on the principles of sustainable development. involving the key stakeholders (called a “design

Eco-efficiency checklist

The seven principles of eco-efficiency are a useful starting point for embarking on the journey towards sustainable development.
They offer new perspectives and ways of rethinking how products are made or services are delivered. The table lists ideas for
innovation based on the principles.

Reduce the material intensity of goods and services Reduce the energy intensity of goods and services
Can the consumption of water be reduced? Can one find ways to employ renewable energy?
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Would the use of higher quality materials create less waste at Would the use of different materials reduce energy usage?
the later stages of the project? Can one use waste heat from one process to supply another?
Can waste be reused on site or transported elsewhere for reuse? Can building energy use be monitored and controlled?
Can products or services be combined to reduce overall Can transport needs be reduced or systems made more efficient?
materials intensity?
Can packaging be reduced or eliminated? Reduce toxics dispersion
Can toxic substances be totally eliminated from a process?
Increase the service intensity of products Can waste and emissions be reduced during the project
Can one work with project owners to improve the service construction phase?
intensity of their business model, i.e., find ways to sell more Are there ways to better handle harmful materials during the
services associated with the product instead of selling the construction phase?
product itself? Can one specify products with a low toxic or harmful
Can one add more knowledge content to the services being sold? substance content?
Can one leverage knowledge of the owner’s business to
reduce the owner’s costs or reduce waste? Maximize the sustainable use of renewable resources
Can one expand the scope of services to meet increased Can one specify products made with resources certified as
stakeholder needs? sustainable?
Can one design facilities and infrastructure making maximum
Enhance material recyclability use of passive heating and cooling?
Can waste be remanufactured, reused or recycled? Can one employ renewable energy sources in the design?
Can one specify products with high-recycled content?
Can one design the facility or infrastructure giving Extend product durability
consideration to reuse, flexibility or recycling? Can one incorporate durability considerations in designs?
Can one consider ease of deconstruction and materials Can one design the facility and infrastructure for ease
recovery in the design and operation of the facility of maintenance?
or infrastructure? Can one design in a high degree of flexibility?
Adapted from [8]

© FIDIC 2004 fifteen

 4 P S M i m p l e m e n t a t i o n

charrette”, see inset below). New ideas generated from this indicators which meets the needs. Situations where the
effort may require new or modified goals and indicators interests of local stakeholders run contrary to the
to track performance. perceived interests of society as a whole are a recognized
source of conflict. Some useful tools for stakeholder
Identify and engage key stakeholders engagement are provided in Appendix E.

In the past, companies recognized a limited 4.2 Adjust project goals and indicators to
number of groups – shareholders, employees, regulatory local conditions
agencies, the financial community, and a few others – as
legitimate stakeholders. Today, the situation has changed Goals and indicators established in the first
considerably. Enabled by information technology and stage are modified to reflect local conditions and concerns,
telecommunications, many non-governmental particularly those of low and middle income countries.
organisations and activist groups are emerging with new
powers of communication and information acquisition. Incorporate applicable safeguard policy considerations
If they see fit, these organisations can use the power of
the media and the Internet to communicate what they If the project is located in a low or middle
perceive as misbehaviour. In effect, these groups set the income country defined by The World Bank Development
de facto standards for governmental and non- Indicators Database [10] as incorporated in The Equator
governmental behaviour. They can have a strong impact Principles (see Appendix C), then additional indicators
on an organisation’s reputation, and a corresponding should be developed to reflect the special concerns and
impact on its financial performance. policy safeguards applicable to developing countries.
These concerns include natural habitats, pest
It is the same situation with projects. The management, forestry, dam safety, indigenous peoples,
GOLDER ASSOCIATES CORP. LICENCED USE UNTIL END-MAY 2007

organisational performance of the project owner is involuntary resettlement, cultural property, child and
judged in part by the projects the owner commissions, forced labour, and international waterways [11].
constructs and operates, and can thus be the subject of
inquiry for stakeholder groups. It is therefore important In addition to safeguard policies, additional
that the owner and the engineer identify early on the key consideration should be given to local resources and the
stakeholders for a project, understand their issues and capacity to understand and apply policies pertaining to
information needs, and establish a set of project sustainable development. Without this understanding,

Design charrettes National Charrette Institute

A design charrette is an intense and rigorous planning and The US National Charrette Institute [9] recommends a four- to
design process conducted over a relatively short period of seven-day session in order to accommodate several
time. It involves a group of professionals from the project stakeholder testing and feedback sessions.
disciplines working together in a collaborative process to
create a workable design. After initial research and preparation, the process starts with a
public workshop designed to educate all participants and elicit
Openness and stakeholder involvement are essential the stakeholder’s vision of the project. The charrette team
ingredients. Cross-disciplinary teams working with (“charrette” comes from the French word meaning “cart”)
stakeholders produce design solutions that are the product of then develops several alternative designs and presents them
many views and much experience. The compressed time in a second public meeting. Input is used to refine the
schedule inspires creativity and discourages debate that is not alternative designs into a single design and implementation
relevant. A well-run design charrette can bring about significant plan. Additional planning and stakeholder meetings are
change as the participants come to a new understanding of the conducted after the charrette is completed in order to
problems and issues involved in the project. continue to refine the plan.

sixteen
 certain categories of issues may dominate discussions 4.3 Test and refine project goals and indicators
with stakeholders, perhaps to the exclusion of all others,
no matter what their importance to sustainable The project owner and the engineer will have
development happens to be. established a set of project goals for sustainable
development and a corresponding set of project
In working in low and middle income indicators, reflecting the owner’s vision of the project
countries, consulting engineers should be careful and modified to reflect local conditions and sustainable
to understand the context in which PSM is applied, development goals. In the third stage of the PSM
making sure that local priorities are being addressed, process, the owner and the engineer will make three
but within the context of the core project indicators for additional refinements to these goals and indicators.
sustainable development.
Test project indicator functionality
For example, in some countries, many if not
most project owners and engineers have not been Once the indicator set is complete, the project
equally exposed to all aspects of sustainable owner and the engineer should review the set and test each
development. Currently, social and socio-economic indicator to see if the PSM process has produced a
issues are receiving considerable attention while sensible and workable set. The Pastille Consortium [13]
environmental issues are not. three-part analysis (see inset below) stimulates different

Incorporate local indicator activities

The Pastille analysis
The locality in which the project will be • Characterise the indicator profile
delivered may have developed its own set of whole- At what level are the project indicators in use: strategic,
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society indicators in accordance with Chapter 40 of programme, project?

Agenda 21 (see [12] for a survey of Local Agenda 21 Within which tools are the indicators operating?
processes). If this is the case, the consulting engineer What is the indicator typology?
should locate the indicator set and use it to develop What is the purpose of the indicator system?
Who are the stakeholders relevant to the project’s indicator
project-specific indicators. The engineer compares the
system?
local indicators for sustainable development to the PSM What is the role of the project indicators?
core indicators, adding any local indicators that are not Are stakeholders supportive, neutral or obstructive?
present in the core set, or modifing the set to obtain How can stakeholders become more supportive of the
better agreement with the local indicators. project’s indicators?
• Define the arena of action
Even if no Local Agenda 21 processes are Define the extent of the arena for action, to better
understand the factors, both positive and negative,
underway, the engineer should still check with local
that affect the use of the indicators. Issues include:
government officials and organisations representing - stakeholder identification, engagement,
stakeholders to identify other activities related to local communication, trust and cooperation;
indicators for sustainable development - ease of data collection;
- indicator linkage to targets and thresholds;
The outcome of this stage is a set of - how indicators are used to make decisions.
indicators for sustainable development based on the • Illustrate the arena of action
Interpret and present the results of the analysis by plotting
PSM core set of indicators, but modified to make them
results on a radar chart as a way of comparing each
relevant to local problems and conditions. The indicators dimension of the evaluation.
must have a substantial level of endorsement from local
government officials and/or key stakeholder groups. The analysis may reveal problems with the set of project
specific indicators. The consulting engineer and the project
owner should conduct a final review of the indicator set and
make any necessary modifications.

© FIDIC 2004 seventeen

 4 P S M i m p l e m e n t a t i o n

ways of thinking and a better understanding of the context 4.4 Use project indicators during project
in which the indicators will operate, and ultimately identify implementation, operation and decommissioning
indicator strengths and weaknesses.
The plan to implement project-specific
System integration considerations to refine goals indicators consists of methods and schedules for
measuring and assessing numeric quantities for
In the design and delivery of a project that indicators, and reporting the results to a defined
advances the state-of-practice across all dimensions of constituency. The reporting schedules should match
sustainable development, the consulting engineer will other reports related to sustainable development that the
draw upon several processes, systems and technologies. project owner produces.
It is important for the engineer to consider how these
individual elements will work together to achieve the In addition to producing reports, additional
desired outcome. The elements are cross-checked to effort should be made to review results periodically so that
make sure that the interferences are minimized. It may the project owner and the engineer can detect unforeseen
be necessary to change the goals for sustainable problems with either the indicators themselves or the
development established earlier to accommodate these values being generated. Unexpected results, or values
integration considerations. greatly out of line with pre-set thresholds, should be noted
and reported to the project owner.
Refine indicators to align with applicable rules,
regulations and protocols Throughout the course of the project,
indicators, methodologies and measuring schedules are
For some projects, client organisations, reviewed regularly and the results assessed. Sustainable
associations, local authorities and other institutions may development issues and the corresponding indicator
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require the application of existing project indicator sets frameworks are in a constant state of change because of
that relate to sustainable development. Furthermore, new information, issues and values. The review process
for reasons of overall image and reputation management, should be incorporated into the project owner’s
competitiveness, or as part of the overall enterprise management processes. As an example, the lifetime of a
strategy of the organisation, the project owner may want project, that is from project concept through design and
to apply a specific reporting or appraisal protocol construction to decommissioning, might be measured in
(the inset below gives examples). tens of years. It is a virtual certainty that the concepts of
sustainable development and what constitutes
Reporting and appraisal protocols appropriate and sustainability technology will have
evolved considerably during the period.
The set of PSM indicators may be adjusted to align with
reporting and appraisal protocols.
• Global Reporting Initiative
Some clients have made it a policy to report their
sustainable development performance in conformance with
the Global Reporting Initiative guidelines [14].
• LEED certification
The project owner may want to achieve a certain certification
level for one or more of the buildings or facilities in the
project. The project indicators may therefore need to be
modified or suplemented to match, say, the LEED system
(in the US, new facilities for the Department of Defence must
meet a certain level of LEED certification [15]).
• SPeAR
The project owner may want to modify the project
indicators to match the SPeAR appraisal model [16].

eighteen
 5 the path forward

Project Sustainability Management can make FIDIC initiatives

a substantial contribution to progress towards sustainable
development. Over time, PSM will provide valuable support Communication and collaboration with stakeholders
to consulting engineers when designing and delivering
projects that improve conditions of sustainability. FIDIC will work with interested and affected stakeholder
groups, and continue to refine its core indicators as well as
the PSM process. Specifically, FIDIC seeks to improve the
However, these guidelines are by no means processes for engaging key stakeholders, creating and
the final word on the subject. PSM is by its very nature measuring indicators, developing sustainable development
and construction an evolving system that will change as goals, adapting sustainable development goals and
society improves its understanding of the issues of indicators to developing world conditions, and testing
sustainable development. FIDIC intends to follow this indicator functionality.
evolution closely, making changes to PSM as knowledge
and experience improves. FIDIC is especially interested in the work of national and
international organisations engaged in developing
sustainable development indicators, including the United
Nations Commission for Sustainable Development, The
World Bank, the World Business Council for Sustainable
Development, the International Standardization
Organisation, International Council for Local Environmental
Initiatives, and the Global Reporting Initiative.

Expansion of the knowledge base

FIDIC will work to expand the knowledge base for sustainable

practices. One of the values of PSM is that it provides a
GOLDER ASSOCIATES CORP. LICENCED USE UNTIL END-MAY 2007

foundation for expanding society’s knowledge about

sustainable development including:
• how to measure and assess progress;
• the performance of sustainable processes, systems
and technologies;
• lessons learned during implementation;
• experience in sustainable system integration;
• existing or proposed codes, regulations, policies
and protocols which affect progress towards
sustainable development.

Such a database will be an invaluable tool for the

consulting engineering industry.

Education and dissemination

FIDIC will develop and disseminate, in conjunction with

these guidelines, a set of tools and training materials to be
used in seminars for member firms. These seminars aim to
educate consulting engineers on how to apply the PSM
process to their projects.

© FIDIC 2004 nineteen

 r e f e r e n c e s

1 Sustainable development in the consulting engineering

industry: a strategy paper, FIDIC, 2001.
2 Business guidelines for sustainable development,
FIDIC, 2000.
3 Sustainable development in the consulting engineering
industry: a unique capacity to address the priorities,
FIDIC, 2002.
4 Agenda 21 Programme of Action for Sustainable
Development, United Nations Conference on
Environment and Development, Rio de Janeiro,
3-14 June 1992.
5 Indicators of sustainable development: Frameworks and
methodologies, DESA/DSD/2001/3, United Nations
Division of Sustainable Development.
6 Millennium Development Goals and Indicators –
Millennium Indicators Database, United Nations
Statistics Division:
[Link]/unsd/mi/mi_goals.asp
7 Building Construction – Sustainability in building
construction, International Standardization
Organisation, SO/TC 59/SC 17 N 35, 2003.
8 Eco-efficiency, Livio DeSimone and Frank Popoff,
The MIT Press, Cambridge, MA, 1997.
GOLDER ASSOCIATES CORP. LICENCED USE UNTIL END-MAY 2007

9 National Charrette Institute:

[Link]
10 Development Indicators Database, The World Bank:
[Link]/data/countryclass/[Link]
11 Guidance on policy safeguards, The Equator Principles:
[Link]/[Link]
12 Survey of Local Agenda 21 processes; ICLEI:
[Link]/rioplusten/final_document.pdf
13 Indicators in action: a practitioners guide for improving
their use at the local level, Pastille Consortium, 2002.
14 Sustainability Reporting Guidelines, Global Reporting
Initiative, 2002.
15 Green Building Rating System for New Constructions
and Major Renovations; LEED-NC Version 21,
US Green Building Council.
16 SPeAR:
[Link]/sustainability/services/[Link]

t w e n t y
 a p p e n d i c e s

A FIDIC Project Sustainability Management core project indicators

FIDIC PSM core project indicators are derived from the UN CSD indicators which refer to Agenda 21 issues. The numbers in brackets
give the Agenda 21 chapters for the social (SO), environmental (EN) and economic (EC) dimensions. The table also gives the theme
and the indicator description for each UN CSD indicator. The FIDIC PSM core project indicators are labelled “SO-01”, etc. or are
indicated as “n/a” if they are not applied.

Dimension Theme Sub-theme Indicator description Relevance to projects Core project indicator Code
SO Equity Poverty (3) Percent of population Contribution to Proportion of local SO-01
living below the employment; hiring local workers, firms employed
poverty line firms, workers on the project, as
compared to other
workers, firms
SO Equity Poverty (3) Gini index of income Owner & engineer have n/a
inequality little or no control
SO Equity Poverty (3) Unemployment rate Contribution to
employment; hiring local See SO-1
firms, workers
SO Equity Gender equality Ratio of average female Establish hiring & wage Existence of hiring and SO-02
(24) wage to male wage policies on the project wage policies related to
during planning & design; minorities and women
implement upon employees
construction Proportion of minorities, SO-03
women hires
Wage comparison of SO-04
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minorities, women
compared to standards
SO Health (6) Nutritional Nutritional status Owner & engineer have n/a
status of children little or no control
SO Health (6) Mortality Mortality rate under Owner & engineer have n/a
5 years old little or no control
SO Health (6) Mortality Life expectancy at birth Owner & engineer have n/a
little or no control
SO Health (6) Sanitation Percent of population with Contribution to Proportion of population SO-05
adequate sewage disposal improvement of sewage with access to adequate
facilities disposal incorporated into sewage treatment
the project
SO Health (6) Drinking water Population with access to Contribution to access to Proportion of population SO-06
safe drinking water safe drinking water with access to safe
incorporated into the drinking water
project
SO Health (6) Healthcare Percent of population with Contribution to healthcare Proportion of population SO-07
delivery access to primary health facilities as part of the with access to primary
care facilities project scope health care facilities
SO Health (6) Healthcare Immunization against Owner & engineer have n/a
Delivery infectious childhood little or no control
diseases
SO Health (6) Healthcare Contraceptive Owner & engineer have n/a
delivery prevalence rate little or no control
SO Health(6) Occupational Systems, procedures for Safety during construction Record of safety
health & safety managing and maintaining performance during SO-8
job safety, health construction
SO Human Child labour Use of child labour Use of child labour during Record of use of labour SO-9
rights on project construction during project construction

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Dimension Theme Sub-theme Indicator description Relevance to projects Core project indicator Code
SO Education Education level Secondary or primary Contribution to K-12 K-12 facilities built, if part
(36) school completion ratio education by building of project scope
facilities and incorporating Ancillary programmes to
auxiliary programmes improve K-12 education
into the project
SO Education Literacy Adult literacy rate Contribution to adult Facilities built related to
(36) literacy by building improving adult literacy as
facilities, incorporating part of project scope
auxiliary programmes Ancillary programmes to
into the project improve adult literacy
SO Housing (7) Living Floor area per person Contribution to improved Proportion of persons SO-10
conditions housing (project living with adequate floor
scope specific) area per person
SO Security Crime Number of recorded Efforts to reduce crime Specific development and
(36, 24) crimes per 100,000 related to the project, design decision made to
population all phases reduce crime rate
Implementation activities

SO Population Population Population growth rate Owner & engineer have n/a
(5) change little or no control
SO Population Population Population of urban Contribution to improvingChange in number and SO-11
(5) change formal and informal conditions in informal proportion of populations
settlements settlements in formal and informal
settlements affected by
the project
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SO Culture Cultural heritage Protection of cultural Impacts on local culture Assessment of impacts SO-12
heritage and historic buildings on local culture and
historic buildings
SO Culture Involuntary Protection from Effects of project on Degree to which the SO-13
resettlement involuntary resettlement displacement of local project displaces the
populations local population
SO Integrity Bribery and Reporting of bribery and Reduction of bribery and Efforts to monitor and SO-14
corruption corruption corruption associated with report bribery and
projects corruption
EN Atmosphere Climate change Emissions of greenhouse Quantity of GHGs Quantities of GHGs EN-01
(9) gases emitted; part of emitted in all phases
considerations in all of the project
project phases.
EN Atmosphere Ozone layer Consumption of ozone Quantity of ozone Quantities of ozone- EN-02
(9) depletion depleting substances depleting substances depleting substances used
used; part of in all phases of the project
considerations in all
project phases
EN Atmosphere Air quality Ambient concentration of Effects of project on air Quantities of key air EN-03
(9) air pollutants in urban pollution in urban areas pollutants emitted in all
areas phases of the project
EN Atmosphere Indoor air Ambient concentration of Effects of project on Quantities of indoor air EN-04
(9) quality air pollutants inside the indoor air pollution pollutants
facilities
EN Land (10) Agriculture Arable and permanent Effects of project on Proportion of arable and EN-05
(14) crop land area arable and permanent permanent crop land
crop land area affected by the project

twenty two
 Dimension Theme Sub-theme Indicator description Relevance to projects Core project indicator Code
EN Land (10) Agriculture (14) Use of fertilizers Effects of project on use Quantity of fertilizers used EN-06
of fertilizers compared to norms
EN Land (10) Agriculture (14) Use of agricultural Effects of project on use Quantity of pesticides EN-07
pesticides of agricultural pesticidesused compared to norms
EN Land (10) Forests (11) Forest area as a percent of Effects of project on Extent to which forests are EN-08
land area forest area used or affected in the
development, design &
delivery of the project
EN Land (10) Forests (11) Wood harvesting intensity Effects of project on wood Extent to which wood is EN-09
harvesting used in all project phases
EN Land (10) Desertification Land affected by Effects of project on land Extent to which land EN-10
(12) desertification affected by desertification covered by project is
affected by desertification.
Measurements of
desertification and
improvements
contributed by project
EN Land (10) Urbanization (7) Area of urban formal and Effects of project on the Measurements of area of
informal settlements area of urban formal and formal and informal
informal settlements settlements affected by
the project
EN Oceans, Coastal zone Algae concentration in Effects of project on Measurements of changes EN-11
seas & coastal waters algae concentration in in algae concentrations
coasts (17) coastal waters
EN Oceans, Coastal zone Percent of total Effects of project on the Changes in populations EN-12
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seas & population living in population living in living in coastal areas

coasts (17) coastal areas coastal areas
EN Oceans, Fisheries Annual catch by major Owner & engineer have n/a
seas & species little or no control
coasts (17)
EN Fresh water Water quantity Annual withdrawal of Use of water in relation to Measurements of water EN-13
(18) ground & surface water total available water usage on project during
as a percent of total all phases
available water
EN Fresh water Water quality BOD in water bodies Effects of project on BOD Measurements of BOD on EN-14
(18) in water bodies water bodies affected by
project during all phases

EN Fresh water Water quality Concentration of faecal Effects of project on Measurements of faecal EN-15
(18) coliform in freshwater concentration of faecal coliform in freshwater
coliform in freshwater bodies affected by project
during all phases

EN Biodiversity Ecosystem Area of selected key What area of key Proportion of area EN-16
(15) ecosystems ecosystems is affected affected by the project that
by project? contains key ecosystems
EN Biodiversity Ecosystem Protected area as a How much of the area See EN-16
(15) percentage of total area affected by the project
is protected?
EN Biodiversity Species Abundance of selected Effect of project on Measurements of the EN-17
(15) key species abundance of selected affect of project on the
key species abundance of key species

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Dimension Theme Sub-theme Indicator description Relevance to projects Core project indicator Code
EC Economic Economic GDP per capita Effect of the project on the Extent to which the EC-01
structure (2) performance improvement of GDP project provides economic
(could be the local benefit to the local
domestic product) economy
EC Economic Economic Investment share in GDP Owner & engineer have n/a
structure (2) performance little or no control
EC Economic Trade Balance of trade in goods Use of local labour & See SO-01
structure (2) & services materials
EC Economic Financial status Debt to GNP ratio Owner & engineer have n/a
structure (2) (33) little or no control
EC Economic Financial status Total ODA given or Owner & engineer have n/a
structure (2) (33) received as a percentage little or no control
of GNP
EC Consumption Material Intensity of material use How has the project been Extent of use of materials EC-02
& production consumption designed & delivered to compared to norms &
patterns (4) reduce use of materials other practices
Recycling during
demolition, disposal?
EC Consumption Energy use Annual energy How has the project been Extent of energy EC-03
& production consumption per capita designed & delivered to consumption compared
patterns (4) reduce the energy to norms & other practices
consumption?
EC Consumption Energy use Share of consumption How has the project been Extent of the use of EC-04
& production of renewable energy designed & delivered renewable energy
patterns (4) resources to use renewable resources compared to
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energy resources? norms & other practices

EC Consumption Waste Intensity of energy use How has the project been See EC-03
& production generation & designed & delivered to
patterns (4) management reduce the intensity of
(19-22) energy use?
EC Consumption Waste Generation of industrial & How has the project been Quantities of industrial & EC-05
& production generation & municipal solid waste designed & delivered to municipal wastes
patterns (4) management reduce industrial & generated compared to
(19-22) municipal solid waste norms & other practices
generation & disposal? Disposition of industrial & EC-06
municipal wastes
compared to norms &
other practices
EC Consumption Waste Generation of How has the project been Quantities of hazardous EC-07
& production generation & hazardous waste designed & delivered to wastes generated
patterns (4) management reduce hazardous waste compared to norms &
(19-22) generation & disposal ? other practices
Disposition of hazardous EC-08
wastes compared to
norms & other practices
EC Consumption Waste Generation of How has the project been Quantities of radioactive EC-09
& production generation & radioactive waste designed & delivered to wastes generated
patterns (4) management reduce radioactive waste compared to norms &
(19-22) generation & disposal? other practices
Disposition of radioactive EC-10
wastes compared to
norms & other practices

twenty four
 Dimension Theme Sub-theme Indicator description Relevance to projects Core project indicator Code
EC Consumption Waste Waste recycling & reuse How has the project been Extent to which waste EC-11
& production generation & designed & delivered to recycling & reuse is
patterns (4) management maximize waste recycling employed in all phases of
(19-22) & reuse? the project compared to
norms & other practices
EC Consumption Transport Distance traveled per How has the project been Measurements of EC-12
& production capita by mode of designed & delivered to transportation modes &
patterns (4) transport reduce the use of distances travelled by
inefficient transport? people & materials in all
project phases compared
to norms & other practices
EC Consumption Durability Durability of the How has the project been Extent to which durable EC-13
& production (service life) constructed works designed & delivered to materials are specified
patterns (4) maximize the length of Design for extended
service of the facility? service life
EC Consumption Care, ease of Level of care and How has the project Extent to which the EC-14
& production maintenance & maintenance required been designed & facility requires care &
patterns (4) repair delivered for ease of maintenance, compared
service & maintainability to norms
of the facility?
EC Institutional Strategic National sustainable Owner & engineer have n/a
framework implementation development strategy little or no control
(38, 39) of SD (8)
EC Institutional International Implementation of ratified Owner & engineer have n/a
framework cooperation global agreements little or no control
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(38, 39) Information

EC Institutional access (40) Number of Internet Contribution to an Increase in the number of
capacity subscribers per 1000 increase in Internet use Internet users as a result
(37) Communication inhabitants of the project
EC Institutional infrastructure Main telephone lines per Contribution to an Increase in the number of
capacity (40) 1000 inhabitants increase in telephone lines telephone lines as a result
(37) Science & of the project
EC Institutional technology (35) Expenditure on research & Owner & engineer have n/a
capacity development as a little or no control
(37) Disaster percentage of GDP
EC Institutional preparedness & Economic & human loss Contribution to protection n/a
capacity response owing to natural disasters of economic & human loss
(37) due to natural disasters

Indicators are taken from the UN Division of Sustainable Development Indicators of sustainable development: Frameworks and
methodologies, DESA/DSD/2001/3. Adjustment for the relevance to projects draws upon the International Standardization
Organisation Buildings and constructed assets – Sustainability in building construction, ISO/AWI 21931, and Buildings and constructed assets
– Sustainability – sustainability indicators, ISO/AWI 21932, and the Global Reporting Initiative Sustainability Reporting Guidelines, 2002.

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B Indicators for sustainable development

B1 Characteristics • Simple
Can the information be presented in an easily
An indicator is characterised by: understandable, appealing way to the target audience?
Even complex issues and calculations should
• a definition, general description and underlying
eventually yield clearly presentable information that is
definitions and concepts
understandable to all.
• unit of measurement
• Valid
• method of measurement, including the status of the
Is the indicator a true reflection of the facts? Was the
methodology against recognized standards
data collected using scientifically defensible
• relevance
measurement techniques? Is the indicator verifiable
• relationship and links to other indicators
and reproducible? Methodological rigour is needed to
• data used to compile the indicator, including data
make the data credible for both experts and lay people.
availability and sources
• Based on time-series data
• value system and judgments by which indicator
Is time-series data available, reflecting the trend of the
quantities are compared against norms or benchmarks
indicator over time? If based on only one or two data
• conventions, agreements, references and recognized
points, it is not possible to visualise the future
standards related to the indicator, plus additional
direction of change.
readings and knowledge sources
• Based on available and affordable standardized data
• limitations of the data, including ease of
Is good quality data available at a reasonable cost or is
measurement, comparability, reliability, availability,
it feasible to initiate a monitoring process that will
accuracy, completeness and seasonal variations.
make it available in the future? Information tends to
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use many resources: time, effort and money.

B2 Aggregation
• Able to aggregate information
Is the indicator about a very narrow or a broad
Indicators are aggregated into multi-
sustainability issue? The list of potential sustainability
dimensional sets in ways that offer insights into the
indicators is endless. For practical reasons, indicators
current situation, the real or potential impacts and the
that aggregate information on broader issues are
range of plausible responses. These sets can be further
preferred. For example, forest canopy temperature is a
combined to create a single index depicting a net
useful indicator of forest health and is preferred to
aggregate condition.
many other potential measures of species, growth, etc.
that yield the same conclusion.
B3 Criteria
• Sensitive and responsive
Can the indicator detect a small change in the system?
Indicators must satisfy several well-
It needs to be determined beforehand if small or large
established criteria:
changes are relevant for monitoring.
• Policy relevant • Reliable
Can the indicator be associated with one or several Will one arrive at the same result if one makes two or
issues around which key policies are formulated? Is more measurements of the same indicator under the
the target group able to influence the outcome? same circumstances? Would two different analyses
Sustainability indicators are intended to improve the arrive at the same conclusions?
outcome of decision-making on levels ranging from
the individual to the entire biosphere. Unless the
indicator can be linked to critical decisions and
policies, it is unlikely to motivate action.

twenty six
 B4 Purpose B5 Project-level indicators

Indicators address different audiences for Infrastructure projects are generally

several purposes. They allow users to: separated into several phases, and indicators have a role
to play at each stage. For instance, they:
• understand sustainability issues
• support decisions • identify where projects may be needed
• solve conflicts • clarify project purpose and guide design
• involve stakeholders. • determine how existing projects are meeting expectations
• support project monitoring and supervision
A given indicator is unlikely to be • help gauge a project’s development impact.
appropriate for all purposes. For example, an indicator
used in scientific analyses is an unlikely candidate for The roles of indicators at the different
communicating with the public. phases of a project are:

An audience, with its matched performance Project phase Indicator role

indicators, will generally focus on specific purposes: Development Demonstrate to investors and funding
agencies that the project has a sufficient
Audience Indicator purpose likelihood of delivering the specified
Stakeholders Measure progress towards results and performance.
achieving objectives and targets Planning Show stakeholders the proposed net
Promote accountability Siting contribution to sustainable
to stakeholders Design development made by the materials,
Staff Compare performance to identify technologies, processes & other
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opportunities for improvement components incorporated in the design.

Clients; business partners Highlight industry capacity Indicators established at the design stage
Professional service firms Comparisons and benchmarks will be used to measure the actual
National industry sector Demonstrate progress towards performance of the project during operation.
industry targets and Provide the ability to measure and verify
development objectives the project’s contribution to
International agencies Industry capacity sustainable development.
General public Generate trust and a shared long- Construction Show stakeholders that sustainable
term vision for development development principles were followed
during construction. Such practices affect:
waste, noise, on-site recycling and take-
Indicators are therefore used for: back policies for excess materials.
• Design and project evaluation Operation Measure and verify the sustainability
performance of the project as designed.
• Monitoring industry and national sector commitments Facilitate renovation and reuse of the facility.
to socially and environmentally responsive voluntary Deconstruction Show that the efforts made in the planning,
initiatives, law, regulations and directives Decommissioning siting & design phase facilitate the
• Monitoring progress to sustainable development goals deconstruction, demolition & disposal of
• Screening project proposals the facility as well as the recycling of
• Selection procedures. materials from the facility at its end of life.

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B6 Data sources

There are several well-established sources of

information and data for assigning numeric quantities
to project indicators:

Project-cycle phase Information source

Strategy formulation Programme effectiveness review
Program development Feedback to policy makers
Project identification Feedback to project planners
Project preparation Design monitoring system
and design
Feedback to project designers
Evaluation framework
Appraisal Evaluation lessons
Selection, negotiation
and approval
Inception or start-up Baseline survey
Project implementation Input, activity and output
and monitoring monitoring
Activity monitoring briefs
Benefit monitoring
Mid-term evaluation Mid-term survey
Project completion Project completion report
Post-evaluation Impact survey
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Impact evaluation
Lessons database
Follow-up and feed-back Evaluation lessons for new projects

B7 Accuracy

The degree of rigour used in the selection of

indicators, and the accuracy required for the data
compiled to support each indicator, will vary greatly
depending on how the indicators are to be applied. For
example, indicators used to educate and inform are likely
to be less accurate than those used by policy makers for
planning purposes.

twenty eight
 C The Equator Principles

The Equator Principles have been adopted by 32 financial In adopting these principles, we undertake
institutions, including the International Finance Corporation to review carefully all proposals for which our customers
(IFC): see [Link]. request project financing. We will not provide loans
They are “an industry approach for financial institutions in directly to projects where the borrower will not or is
determining, assessing and managing environmental and unable to comply with our environmental and social
social risk in project financing.” policies and processes.

C1 Preamble C2 Statement of Principles

Project financing plays an important role We will only provide loans directly to
in financing development throughout the world. In projects in the following circumstances:
providing financing, particularly in emerging markets,
project financiers often encounter environmental and 1 We have categorised the risk of a project in accordance
social policy issues. We recognize that our role as with internal guidelines based upon the environmental
financiers affords us significant opportunities to and social screening criteria of the IFC as described in
promote responsible environmental stewardship and the attachment to these Principles (Exhibit I).
socially responsible development.
2 For all Category A and Category B projects, the
In adopting these principles, we seek to borrower has completed an Environmental
ensure that the projects we finance are developed in a Assessment (EA), the preparation of which is
manner that is socially responsible and reflect sound consistent with the outcome of our categorisation
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environmental management practices. process and addresses to our satisfaction key

environmental and social issues identified during the
We believe that adoption of and adherence categorisation process.
to these principles offers significant benefits to ourselves,
our customers and other stakeholders. These principles 3 In the context of the business of the project,
will foster our ability to document and manage our risk as applicable, the EA report has addressed:
exposures to environmental and social matters associated a assessment of the baseline environmental and
with the projects we finance, thereby allowing us to engage social conditions
proactively with our stakeholders on environmental and b requirements under host country laws and
social policy issues. Adherence to these principles will regulations, applicable international treaties and
allow us to work with our customers in their management agreements
of environmental and social policy issues relating to their c sustainable development and use of renewable
investments in the emerging markets. natural resources
d protection of human health, cultural properties, and
These principles are intended to serve as a biodiversity, including endangered species and
common baseline and framework for the implementation sensitive ecosystems
of our individual, internal environmental and social e use of dangerous substances
procedures and standards for our project financing f major hazards
activities across all industry sectors globally. g occupational health and safety
h fire prevention and life safety
i socioeconomic impacts
j land acquisition and land use
k involuntary resettlement
l impacts on indigenous peoples and communities

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 a p p e n d i c e s

m cumulative impacts of existing projects, the b provide regular reports, prepared by in-house staff or
proposed project, and anticipated future projects third party experts, on compliance with the EMP and
n participation of affected parties in the design, review c where applicable, decommission the facilities in
and implementation of the project accordance with an agreed Decommissioning Plan.
o consideration of feasible environmentally and
socially preferable alternatives 7 As necessary, lenders have appointed an independent
p efficient production, delivery and use of energy environmental expert to provide additional monitoring
q pollution prevention and waste minimization, and reporting services.
pollution controls (liquid effluents and air emissions)
and solid and chemical waste management 8 In circumstances where a borrower is not in compliance
with its environmental and social covenants, such that
Note: In each case, the EA will have addressed compliance any debt financing would be in default, we will engage
with applicable host country laws, regulations and permits the borrower in its efforts to seek solutions to bring it
required by the project. Also, reference will have been back into compliance with its covenants.
made to the minimum standards applicable under the
World Bank and IFC Pollution Prevention and Abatement 9 These principles apply to projects with a total capital
Guidelines (Exhibit III) and, for projects located in low and cost of US$50 million or more.
middle income countries as defined by the World Bank
Development Indicators Database, the EA will have further The adopting institutions view these
taken into account the then applicable IFC Safeguard principles as a framework for developing individual,
Policies (Exhibit II). In each case, the EA will have addressed, internal practices and policies. As with all internal
to our satisfaction, the project’s overall compliance with policies, these principles do not create any rights in,
(or justified deviations from) the respective above- or liability to, any person, public or private. Banks are
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referenced Guidelines and Safeguard Policies. adopting and implementing these principles voluntarily
and independently, without reliance on or recourse to
4 For all Category A projects, and as considered IFC or the World Bank.
appropriate for Category B projects, the borrower or
third party expert has prepared an Environmental Exhibit I
Management Plan (EMP) which draws on the Environmental and social screening process
conclusions of the EA. The EMP has addressed
mitigation, action plans, monitoring, management of Environmental screening of each proposed
risk and schedules. project shall be undertaken to determine the appropriate
extent and type of EA. Proposed projects will be
5 For all Category A projects and, as considered classified into one of three categories, depending on the
appropriate for Category B projects, we are satisfied type, location, sensitivity, and scale of the project and the
that the borrower or third party expert has consulted, nature and magnitude of its potential environmental and
in a structured and culturally appropriate way, with social impacts.
project affected groups, including indigenous peoples
and local NGOs. The EA, or a summary thereof, has Category A
been made available to the public for a reasonable A proposed project is classified as Category A if it is likely
minimum period in local language and in a culturally to have significant adverse environmental impacts that are
appropriate manner. The EA and the EMP will take sensitive, diverse, or unprecedented. A potential impact is
account of such consultations, and for Category A considered “sensitive” if it may be irreversible (e.g., lead to
Projects, will be subject to independent expert review. loss of a major natural habitat) or affect vulnerable groups
or ethnic minorities, involve involuntary displacement or
6 The borrower has covenanted to: resettlement, or affect significant cultural heritage sites.
a comply with the EMP in the construction and These impacts may affect an area broader than the sites or
operation of the project facilities subject to physical works. EA for a Category A

t h i r t y
 project examines the project’s potential negative and Note: The principal requirements relate to the role of IFC
positive environmental impacts, compares them with as a multilateral agency and notification requirements
those of feasible alternatives (including, the “without between riparian states which are generally outside the
project” situation), and recommends any measures remit of private sector operators or funders. It is
needed to prevent, minimize, mitigate, or compensate for referenced for the sake of completeness. The substantive
adverse impacts and improve environmental performance. elements of good practice with respect to environmental
A full environmental assessment is required which is and social aspects therein are fully covered by OP4.01.
normally an Environmental Impact Assessment (EIA).
Exhibit III
Category B World Bank and IFC pollution prevention and
A proposed project is classified as Category B if its potential abatement guidelines
adverse environmental impacts on human populations or
environmentally important areas – including wetlands, As of 4 June 2003, IFC is using two sets of guidelines for
forests, grasslands, and other natural habitats – are less its projects.
adverse than those of Category A projects. These impacts
are site-specific; few if any of them are irreversible; and in 1 IFC is using all the environmental guidelines
most cases mitigatory measures can be designed more contained in the World Bank Pollution Prevention and
readily than for Category A projects. The scope of EA for a Abatement Handbook (PPAH). This Handbook went
Category B project may vary from project to project, but it is into official use on July 1, 1998.
narrower than that of Category A EA. Like Category A EA, it
examines the project’s potential negative and positive 2 IFC is also using a series of environmental, health and
environmental impacts and recommends any measures safety guidelines that were written by IFC staff in 1991-
needed to prevent, minimize, mitigate, or compensate for 1993 and for which there are no parallel guidelines in
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adverse impacts and improve environmental performance. the Pollution Prevention and Abatement Handbook.
Ultimately new guidelines, incorporating the concepts
Category C of cleaner production and environmental management
A proposed project is classified as Category C if it is likely systems, will be written to replace this series of IFC
to have minimal or no adverse environmental impacts. guidelines. When completed, these new guidelines will
Beyond screening, no further EA action is required for a also be included in the World Bank Pollution Prevention
Category C project. and Abatement Handbook.

Exhibit II Where no sector specific guideline exists for

Safeguard policies a particular project, then the World Bank General
Environmental Guidelines and the IFC General Health and
As of 4 June 2003, the following is a list of IFC Safety Guideline will be applied, with modifications as
Safeguard Policies: necessary to suit the project.
Environmental Assessment OP4.01 (October 1998)
Note: The following are World Bank Guidelines not
Natural Habitats OP4.04 (November 1998)
contained in the PPAH and currently in use:
Pest Management OP4.09 (November 1998)
Forestry OP4.36 (November 1998) Mining and Milling – Underground
Safety of Dams OP4.37 (September 1996) Mining and Milling – Open Pit
Indigenous Peoples OD4.20 (September 1991)
Involuntary Resettlement OP4.30 (June 1990) The table on page 32 lists both the World
Cultural Property OPN11.03 (September 1986) Bank Guidelines and the IFC Guidelines.
Child & Forced Labour Policy Statement (March 1998)
International Waterways OP7.50 (November 1998)

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World Bank Guidelines (PPAH) IFC Guidelines

1 Aluminium Manufacturing 1 Airports

2 Base Metal and Iron Ore Mining 2 Ceramic Tile Manufacturing
3 Breweries 3 Construction Materials Plants
4 Cement Manufacturing 4 Electric Power Transmission and Distribution
5 Chlor-Alkali Plants 5 Fish Processing
6 Coal Mining and Production 6 Food and Beverage Processing
7 Coke Manufacturing 7 Forestry Operations: Logging
8 Copper Smelting 8 Gas Terminal Systems
9 Dairy Industry 9 General Health and Safety
10 Dye Manufacturing 10 Health Care
11 Electronics Manufacturing 11 Geothermal Projects
12 Electroplating Industry 12 Hazardous Materials Management
13 Foundries 13 Hospitals
14 Fruit and Vegetable Processing 14 Office Buildings
15 General Environmental Guidelines 15 Offshore Oil & Gas
16 Glass Manufacturing 16 Polychlorinated Biphenyls (PCBs)
17 Industrial Estates 17 Pesticide Handling and Application
18 Iron and Steel Manufacturing 18 Plantations
19 Lead and Zinc Smelting 19 Port and Harbour Facilities
20 Meat Processing and Rendering 20 Rail Transit Systems
21 Mini Steel Mills 21 Roads and Highways
22 Mixed Fertilizer Plants 22 Telecommunications
23 Monitoring 23 Tourism and Hospitality Development
24 Nickel Smelting and Refining 24 Wildland Management
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25 Nitrogenous Fertilizer Plants 25 Wind Energy Conversion Systems

26 Oil and Gas Development (Onshore) 26 Wood Products Industries
27 Pesticides Formulation 27 Waste Management Facilities
28 Pesticides Manufacturing 28 Wastewater Reuse
29 Petrochemicals Manufacturing
30 Petroleum Refining
31 Pharmaceutical Manufacturing
32 Phosphate Fertilizer Plants
33 Printing Industry
34 Pulp and Paper Mills
35 Sugar Manufacturing
36 Tanning and Leather Finishing
37 Textiles Industry
38 Thermal Power Guidelines for New Plants
39 Thermal Power Rehabilitation of Existing Plants
40 Vegetable Oil Processing
41 Wood Preserving Industry

thirty two
 D Millennium Development Goals

A framework of 8 goals, 18 targets and 48 Implementation of the United Nations Millennium

indicators to measure progress towards the Millennium Declaration, United Nations, A/56/326]. Detailed definitions
Development Goals was adopted by experts from the of some indicators are given in footnotes available at
United Nations, the International Monetary Fund, OECD [Link]/unsd/mi/mi_goals.asp
and The World Bank [see Road map towards the

Goal Target Indicator

Eradicate extreme poverty Halve, between 1990 and 2015, the proportion Proportion of population below US$1 Purchasing Power
and hunger of people whose income is less than one Parity (PPP) per day
US dollar a day Poverty gap ratio: incidence x depth of poverty
Halve, between 1990 and 2015, the proportion Share of poorest quintile in national consumption
of people who suffer from hunger Prevalence of underweight children under five years of age
Proportion of population below minimum level of dietary
energy consumption
Achieve universal primary Ensure that, by 2015, children everywhere, Net enrolment ratio in primary education
education boys and girls alike, will be able to complete Proportion of pupils starting grade 1 who reach grade 5
a full course of primary schooling Literacy rate of 15-24-year-olds
Promote gender equality Eliminate gender disparity in primary and Ratio of girls to boys in primary, secondary and
and empower women secondary education, preferably by 2005, and tertiary education
to all levels of education no later than 2015 Ratio of literate women to men of 15- to 24-year-olds
Share of women in wage employment in the
non-agriculture sector
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Proportion of seats held by women in national parliament

Reduce child mortality Reduce by two thirds, between 1990 and 2015, Under-five mortality rate
the under-five mortality rate Infant mortality rate
Proportion of 1-year-old children immunized against measles
Improve maternal health Reduce by three quarters, between 1990 Maternal mortality ratio
and 2015, the maternal mortality ratio Proportion of births attended by skilled health personnel
HIV prevalence among 15-to-24-year-old pregnant women
Combat HIV/AIDS, malaria Have halted by 2015 and begun to reverse Condom use rate of the contraceptive prevalence rate
and other diseases the spread of HIV/AIDS Condom use at last high-risk sex
Percentage of population aged 15-24 with comprehensive
correct knowledge of HIV/AIDS
Ratio of school attendance of orphans to school
attendance of non-orphans aged 10-14
Have halted by 2015 and begun to reverse Prevalence and death rates associated with malaria
the incidence of malaria and other major Proportion of population in malaria risk areas using
diseases effective malaria prevention and treatment measures
Prevalence and death rates associated with tuberculosis
Proportion of tuberculosis cases detected and cured under
DOTS (internationally recommended TB control strategy)
Ensure environmental Integrate the principles of sustainable Proportion of land area covered by forest
sustainability development into country policies and Ratio of area protected to maintain biological diversity to
programmes and reverse the loss of surface area
environmental resources Energy use (kg oil equivalent) per US$1 GDP (PPP)
Carbon dioxide emissions (per capita) and consumption
of ozone-depleting CFCs (ODP tons)
Proportion of population using solid fuels

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 a p p e n d i c e s

Goal Target Indicator

Halve by 2015 the proportion of people Proportion of population with sustainable access to an
without sustainable access to safe improved water source, urban and rural
drinking water and sanitation Proportion of urban population with access to improved
By 2020, to have achieved a significant sanitation, urban and rural
improvement in the lives of at least 100 Proportion of households with access to secure tenure
million slum dwellers
Develop a global partnership Develop further an open, rule-based, Official development assistance (ODA)
for development predictable, non-discriminatory trading and Net ODA, total and to LDCs, as percentage of
financial system. Includes a commitment to OECD/Development Assistance Committee donors’
good governance, development and poverty gross national income (GNI)
reduction – both nationally and internationally Proportion of total bilateral, sector-allocable ODA of
Address the special needs of the Least OECD/DAC donors to basic social services (basic
Developed Countries education, primary health care, nutrition, safe water
Includes: tariff and quota-free access for and sanitation)
Least Developed Countries’ exports; Proportion OECD/DAC donors bilateral ODA that is untied
enhanced programme of debt relief for ODA received in landlocked countries as proportion of
HIPCs and cancellation of official bilateral their GNIs
debt; and more generous ODA for countries ODA received in small island developing States as
committed to poverty reduction proportion of their GNIs
Address the special needs of landlocked
countries and Small Island Developing Market access
States (through the Programme of Action Proportion of total developed country imports (by value
for the Sustainable Development of Small and excluding arms) from developing countries and from
Island Developing States and the outcome LDCs, admitted free of duties
of the 23rd Special Session of the UN Average tariffs imposed by developed countries on
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General Assembly) agricultural products and textiles and clothing from

Deal comprehensively with the debt developing countries
problems of developing countries through Agricultural support estimate for OECD countries as
national and international measures in order percentage of their GDP
to make debt sustainable in the long term Proportion of ODA provided to help build trade capacity
(some of the indicators listed are monitored
separately for the Least Developed Countries, Debt sustainability
Africa, Land-Locked Developing Countries Total number of countries that have reached their Heavily
and Small Island Developing States) Indebted Poor Countries Initiative (HIPC) decision
points and number that have reached their HIPC
completion points (cumulative)
Debt relief committed under HIPC initiative, US$
Debt service as a percentage of exports of goods
and services
In cooperation with developing countries, Unemployment rate of 15- to 24-year-olds, each sex and total
develop and implement strategies for
decent and productive work for youth.
In cooperation with pharmaceutical Proportion of population with access to affordable
companies, provide access to affordable essential drugs on a sustainable basis
essential drugs in developing countries.
In cooperation with the private sector, make Telephone lines and cellular subscribers per
available the benefits of new technologies, 100 population
especially information and communications. Personal computers in use per 100 population and
Internet users per 100 population

thirty four
 E Tools for stakeholder engagement

E1 Stages

There are six stages in building positive 1 Principles

stakeholder relationships: Bring stakeholders to consensus about principles and
definitions of sustainable development that are in use
1 Create a foundation
and the objectives of the indicators programme.
Address strategic relationship building in the
2 Identify
organisation’s strategic plans, and incorporate it into
Identify and select issues of concern.
the organisation’s vision, mission and values.
3 Construct
2 Organisational alignment
Construct/select indicators which encompass issues
Align the organisation to establish collaborative
of concern (issues indicators).
relationships with stakeholder groups to the extent
4 Add
practical.
Add issues indicators (3 above) to those relating to
3 Strategy development
sustainable development principles: test each quality-
Assess existing relationships; enter into dialogue with
of-life indicator to ensure that it is relevant to the
key stakeholders; establish best practices; develop
sustainability principles. For example, not just the rate
strategies and action plans.
of use of a resource, but the rate of use relative to
4 Trust building
investment in a substitute or regeneration, e.g.: tree
Work with stakeholder groups to understand issues, to
planting; investment in renewable energy.
identify and resolve areas of conflict, and to access
5 Boundary
and share information.
Where appropriate, modify step 4 to address boundary
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5 Evaluation
issues (definition of spatial and temporal units of
Design and conduct a stakeholder audit.
measurement and issues at the edges of the area).
6 Repeat
Methodologies and data are not available to make a
Continue to repeat the earlier steps and refine approaches.
full calculation of the wider effects of cities, so the
engineer has to concentrate on those which can be
E2 Stakeholder engagement process
pinned down, e.g.: percentage of water derived from
outside the demand areas; percentage of waste
Project indicators for sustainable
disposed of beyond the area where it is generated.
development must be developed through a consensus
6 Uncertainty
process involving the key stakeholders. Given the
Starting with the indicators from step 4, develop
intrinsic diversity of knowledge and views of the
uncertainty augmented indicators: lack of knowledge
stakeholders, a process for indicator development is
of critical limits; lack of data; unpredictability of
necessary in order to keep such a process on track.
certain processes. The precautionary principle is
required where there is uncertainty.
There are several methodological
7 Evaluate
frameworks for developing indicators for sustainable
Evaluate and review final sustainability indicators for:
development that provide a workable solution.
relevance and scientific validity; sensitivity to change
Representative is a set of principles and a seven-step
in space; sensitivity to change over time; consistency;
process for indicator development that is named after its
comprehension; appropriateness; measurability;
acronym PICABUE [G. Mitchell, A. May & A. McDonald,
potential for establishing targets.
Int. [Link]. Dev. – World Ecology 2, 104-123, 2001].

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F Case study

Sustainable school construction in the This case study illustrates the first three stages of the
Poudre School District FIDIC Project Sustainability Management (PSM) process
William Franzen and Stu Reeve where project specific goals and indicators for sustainable
Poudre School District, Fort Collins, CO, USA development are established, adjusted and tested.

F1 Project description F2 PSM goals and indicators

The Poudre School District is located in Fort Stage 1: Establish indicators

Collins, CO, USA, at the northern edge of the rapidly
growing Colorado Front Range of the Rocky Mountains 1a Project scope and setting assumptions
some 100 km north of Denver. Fort Collins has a
population of 130,000, lies at 1,500 m above sea level and - Increase energy and water conservation and efficiency.
enjoys a moderate, four-season climate with 300 days of - Increase use of renewable energy resources.
sunshine and 370 mm of precipitation a year. It offers an - Reduce or eliminate toxic and hazardous substances
excellent quality of life and a well-educated work force. in facilities, processes, and their surrounding
Community involvement, concern for the environment environment.
and a genuine interest in preserving the quality Improve indoor air quality and interior and exterior
environment has resulted in national recognition. environments leading to increased human productivity
and performance and better human health.
In 2000, voters passed a US$175 million Use resources and materials efficiently.
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bond issue for building new and upgrading existing Select materials and products that minimize safety
schools in the District. Working in partnership with hazard and life-cycle environmental impact (e.g., local
universities, state initiatives, the US Department of materials and lowest “embodied energy” materials)
Energy, local utilities and others, it has been able to raise - Increase the use of material and products with recycled
support and additional funds to help design and content and environmentally preferred products.
construct sustainable school buildings. The District has Recycle and salvage construction waste and building
completed or has in the works several school projects. materials during construction and demolition.
Generate less harmful products during construction,
The District believes that its students learn operation, and decommissioning/demolition.
more, perform better and attend more often when they Implement maintenance and operational practices
are educated in a sustainable building. Students simply that reduce or eliminate harmful effects on people
do better when their school is full of daylight and offers and the natural environment.
fresh air and comfortable temperatures. It also believes - Reuse existing infrastructure, locate facilities near
that the application of sustainable principles can save public transportation, and consider redevelopment
money, in both the first cost (design and construction of contaminated properties.
costs), and in operating costs. - Consider off-site impacts such as storm water
discharge rates and water quality.

A Poudre School District school

thirty six
 1b Owner’s vision, goals and objectives Stage 2: Goals & indicators adjusted to local conditions

Vision 2a Safeguard policies

“[We] stand committed to sustainable design and are
Not required
confident it will yield positive outcomes for our
students and the community.”
2b Local Agenda 21:
Goals
None, so a workshop organized thus adding
- Steward natural resources. indicators for:
- Provide leadership in developing an ethic of - Enhancing student performance and attendance
sustainability. - Teaching principles of sustainable design
- Apply state-of-the-art technology without being - Providing higher quality lighting
experimental.
- Use exemplary buildings as precedents. Stage 3: Testing and refining project goals & indicators
- Be proper stewards of the bond monies assigned for
building new or upgrading existing schools. 3a Systems integration
- Achieve the anticipated cost savings and - Project management encourages collaboration among
sustainable performance in the school buildings. the team members.
- Enhance student performance and attendance. - The project timeline is established for normal
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- Teach principles of sustainable design. design

- Harmonize with the natural landscape. development and construction phases, allowing
Provide higher quality lighting. time for the evaluation of new systems and
- Consume less energy; safeguard water; conserve products, and to perform building simulations.
materials and natural resources - Instrumentation for monitoring and evaluating
- Enhance indoor environmental quality building performance is incorporated into the
- Share the risks and rewards with contractors and building design.
other benefactors. - Building commissioning is performed.
- Post-occupancy inspection is performed and
Objective recommendations are made as appropriate for
operational improvement.
See Table 1: Project objectives
3b Indicator functionality
1c Identify key stakeholders
Functional since only four locally-derived indicators
Stakeholders
were added to the core set.
- Core “Green Team”: includes project owner, suppliers
and vendors, and representatives of District employees, 3c Alignment with applicable rules, regulations
teachers and local public interest groups. and protocols
- Design Advisory Group: community members and
utility and government partners. Not required

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Table 1: The Poudre School District’s project objectives

Objectives, the measures envisaged and specific targets.

Objectives Measures Targets

Sustainable site planning and landscape design

Bio-diversity Bio-diversity of landscaping design Match area’s natural conditions
Low input after establishment Net use of water, mowing, labour, Achieve a uniformity rate of at least 80% in
fertilizers, etc. the application of water
Relates to and is connected to the area’s Based on judgment None available
natural systems
Uses green materials where possible Extent to which green materials are used Meet LEED standards in the use of green
materials
Looks like it belongs in the bio-climatic region Based on judgment: met if the four None available
measures above are satisfied
Visible from the indoors Visibility by school users Natural areas seen in all classrooms and
offices, cafeteria, gymns and auditoria
Modulate heating and cooling of buildings Use of wind buffers and shading in designs None available
Reinforces the health and welfare of the Reduction of school absenteeism and Targets under discussion
local community and economy increased student academic performance
Engages the community in its construction Extent of public involvement Incorporate stakeholders at the design stage
and use
Use of renewable energy sources: solar, Extent of use of solar, wind or geo-thermal Substantial percent of energy supplied by
wind and geo-thermal renewable sources
High quality and energy efficient equipment
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Daylighting Extent to which daylighting is used Extensive use of daylighting

Electric lighting Use of occupancy sensors, electronic Less than 15.5 W/m2
ballasts and T-8/T-5 lamps
Energy efficient building shell: technologies Building energy efficiency See below
and approaches – glazing, air sealing
Energy efficient HVAC systems: Comparisons of energy use with Be in top 25% in building energy efficiency
technologies/approaches – “micro-loaded” other buildings Achieve EnergyStar certification
building, thermal ice storage, HVAC reheat EnergyStar rating of 75 to be eligible to use
system, operable windows, geo-exchange the EnergyStar mark
system, variable frequency drive motors, Conventional standard: ASHRAE 90
energy management system
Environmentally preferable building processes
Environmentally preferable building materials Sources of materials Follow LEED guidelines, e.g., wood from
sustainably managed forests
Water conservation: Reduction in water use Substantially below conventional rates of
technologies/approaches – shared raw water water use
irrigation system, water-efficient landscaping
Recycling and waste management Extent to which waste generation is Recycling programmes in place
reduced and materials are recycled
Construction waste reduction and recycling Requirements of contractors to reduce Substantially below conventional practices
waste and recycle
Commissioning Plan for commissioning early in the project Incorporate commissioning function at the
delivery process design stage
Eco-education Provisions for educating students Incorporate learning tools into the
and teachers building design

thirty eight
 Table 2: The FIDIC PSM project-specific indicators
The PSM core set of project indicators after adjustment to meet the project owners goals and objectives. The designation of the core
set (see PSM Guidelines, Appendix A) are retained for the indicators designated SO (social), EN (environmental) and EC (economic).
Additional indicators are designated AD (additional). Core indicators that do not apply do not appear in the table. Under the
description of the goal are given the goals for achieving the “best-in-class” (do what is currently achievable) and “state-of-practice “
(apply conventional), as descibed in PSM Guidelines, Fig. 1.
Code PSM core indicator Goal Project-specific indicator
State-of-practice Best in class
AD-01 Enhance student Reduced absenteeism, better grades than state average Student absentee rate
performance and Conventional teaching Design the building to Overall occupant satisfaction with
attendance practices connect with natural the building & facilities
surrounding, outdoors Student test scores
AD-02 Teach principles of Students knowledgeable of sustainable development principles Use of learning tools and
sustainable design Conventional teaching Education elements computer kiosks
practices incorporated into the design Building design incorporates exposed
walls to show how systems work
SO-02 Existence of hiring and Meet existing requirements Current hiring and wage policies
wage policies related Hiring & wage policies exist Hiring & wage policies exist & give equal status to women
to minorities and & meet regulatory exceed regulatory requirements & minorities
women employees requirements Proactive programmes locate
women & minority hires
Comparable wage structures
SO-03 Proportion of minorities, Proportion in accordance with local rules & project owner policies Current hiring policies
women hires Employment statistics for women
SO-04 Wage comparison of Proportion in accordance Exceed project averages & minorities
minorities, women with local rules, project Proactive programmes to use Wage comparisons
compared to standards owner policies local workers & firms
SO-05 Proportion of population Reduce water usage through conservation measures: waterless Sanitary sewer connections
with access to adequate toilets, irrigation controls, low water use plants Percent reduction in water use
sewage treatment Connect to local Connect to local sewage compared to conventional
sewage systems systems; reduce water usage
SO-06 Proportion of population Connect to local water supply Existence of municipal water
with access to safe Connect to local water supply Connect to local water supply supply connections
drinking water
SO-08 Record of safety No accidents Number of accidents
performance during At national average No accidents
construction
AD-03 Provide higher Use of daylighting; design to reduce glare Daylighting incorporated into the
quality lighting Conventional lighting Use of daylighting building design
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Design to reduce glare

AD-04 Visibility of natural Natural areas seen by all classrooms, offices Incorporate into building and
surroundings by Conventional windows Natural areas seen by all landscaping design
school users classrooms & offices
SO-11 Change in prop. & no. of No change in the number of formal/informal settlements No formal or informal settlements
populations in formal & No change in the number of No change in the number of at the proposed project site
informal settlement formal/informal settlements formal/informal settlements
affected by the project
SO-12 Assessment of impacts Provide educational resources regarding area history and local Extent to which educational
on local culture, culture resources are provided
historic buildings No significant impacts on local Building enhances local
culture & historic buildings culture; preserves and
enhances historic buildings
EN-01 Quantity of GHGs emitted Reduction of GHG emissions. Specific goals not specified Be in top 25% of building
in all project phases No rules or regulations on Reduction of GHG emissions energy efficiency
GHG emissions Achieve EnergyStar rating of 80
or better
Achieve 120 KBTU/m2
EN-03 Quantities of key air Reduce pollution emissions substantially below regulated levels Use of low VOC-emitting materials
pollutants emitted in allMeet regulatory requirements Low emission vehicles; Use of LNG-powered vehicles
project phases on pollution emissions dust control; low VOC-
emitting materials
EN-04 Quantities of indoor Use high performance systems; provide fresh air ventilation; low
air pollutants VOC-emitting materials Use of natural ventilation
Use on natural ventilation Low VOC-emitting materials Percent use of operable windows
Percent use operable windows Use of low VOC materials
EN-09 Extent to which wood is Use wood harvested from sustainably-managed forests &
used in all project phases extensive use of recycled materials Use of recycled materials
Use wood from Use wood harvested from for construction
© FIDIC 2004 commercial sources sustainably managed forests thirty nine
 Code PSM core indicator Goal Project-specific indicator
State-of-practice Best in class
EN-13 Measurements of water Reduced water usage per capital 40-50% reduction in water use
usage on project during Connect to local water utility & Reduced water use per capital over conventional
all phases user pays on a rate structure
EN-16 Proportion of area No significant impact on key ecosystems Match project area’s
affected by the project Meet local and national No significant impact on natural conditions
that contains regulations regarding key ecosystems
key ecosystems. ecosystem protection
EN-17 Measurements of affect No significant impact on key ecosystems Match project area’s
of project on the Meet local and national No significant impact on natural conditions
abundance of key species regulations regarding key ecosystems
ecosystem protection
EC-01 Extent to which the Purchase materials locally, hire local people and vendors Percent materials & labour
project provides Decisions on materials Purchase materials locally purchased locally
economic benefit to the purchases, hiring of people, & engage local people
local economy & use of local suppliers at the & suppliers
discretion of the contractor
EC-02 Extent of use of materials Reduced materials usage; use of “green” or recycled materials in Follow LEED standards in use of
construction; construction recycling programmes “green” & recycled materials
Use of materials at the Designs incorporate reduced 75% recycling of construction
discretion of the contractor use of materials materials
EC-03 Extent of energy Purchase energy from renewable sources; energy conservation Purchase 100% wind energy
consumption measures Install thermal ice storage
Connect to local energy utility: Buy energy from renewable Super insulation
user pays for electricity on a sources; use non-polluting
rate structure & buy fuels at fuels; reduce energy usage;
commercial rates use hybrid vehicles
EC-04 Extent of the use of Electrical energy from renewable resources Purchase 100% wind energy
renewable energy Use energy from renewable Electrical energy from Extent to which wind buffers &
resources sources dictated by cost renewable resources natural shading are used
EC-05 Quantities of industrial Use of recycled materials in construction & programmes for Percent waste recycled
and municipal wastes recycling construction waste
generated Waste generation & reduction Waste reduction programmes
measures are dictated by cost & extensive use of recycling
of disposal
EC-06 Disposition of industrial Use of recycled materials in construction, including programmes 75% of construction wastes
and municipal wastes for recycling construction waste diverted from landfill
Waste generation & reduction Waste reduction programmes Percent use of recycled building
measures are dictated by cost & extensive use of recycling materials
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of disposal
EC-07 Quantities: No hazardous waste generated Percent hazardous waste generated
EC-08 Disposition: of hazardous Waste generation & reduction No hazardous waste generated
waste generated measures dictated by risk &
hazardous waste disposal cost
EC-09 Quantities: No radioactive waste generated Percent radioactive waste generated
EC-10 Disposition: of radioactive Waste generation & reduction No radioactive waste generated
wastes generated measures dictated by risk &
radioactive waste disposal cost
EC-11 Extent to which waste Use of recycled materials in construction & programmes for Percent of recycling
recycling & reuse is recycling construction waste No hazardous waste generated construction waste
employed in all phases Waste generation & reduction Percent use of recycled
of the project measures dictated by risk & building materials
radioactive waste disposal cost
EC-12 Measurements of Use local people, suppliers & materials to the extent practical Percent use of local labour
distances of people & No measurements done; Programmes to track distances & materials
materials & practices dictated of people & materials
transportation modes in by economics transportation modes
all project phases
EC-13 Extent to which durable Use durable materials, products & equipment that have longer Percent use of durable materials
materials were specified; than normal lifves
design for extended Materials specifications Use of durable materials;
service life based on economic cost- specifications require extended
benefit analyses; design life service life of materials,
determined by client equipment & systems
EC-14 Extent to which the Use durable materials, products & equipment that requires low Percent reduction of care &
facility requires care care & maintenance maintenance requirements,
& maintenance Average care and Little or no care and compared to norms
maintenance requirements maintenance requirements
forty
 c o n t e n t s s u m m a r y

foreword Guidelines for creating business opportunities using

background a process to generate and implement goals and a set
Sustainability management of project-specific indicators for sustainable
A long journey development that aligns with whole-society goals.
introduction
The journey towards sustainable development Prepared by the Sustainable Development Task Force
Needed: a framework and a process • William Wallace, USA (Chair)
Critical: an environment for innovation • Jeremy Boswell, South Africa
The role of project indicators • Peter Boswell, Switzerland
The FIDIC approach • John Boyd, Canada
Status of sustainability indicators • Helen Crosby, UK
Project Sustainability Management • Iksan Van de Putte, The Netherlands
Why use PSM? • Lorna Walker, UK
Project Sustainability Management
Project indicators
Core project indicators
Project-specific indicators
r e f e r e n c e s
PSM implementation
Establish project-specific goals and indicators
for sustainable development Sustainable development in the consulting engineering
Adjust goals and project indicators to local conditions industry – a strategy paper, FIDIC, 2001
Test and refine project goals and indicators Sustainable development in the consulting engineering
Use project indicators during project implementation, industry, FIDIC, 2002
operation and decommissioning Millennium Development Goals and Indicators –
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the path forward Millennium Indicators database

references Building Construction – Sustainability in building
appendices construction, 2004
FIDIC PSM core project indicators
Indicators for sustainable development Eco-efficiency, The MIT Press, 1997
The Equator Principles World Bank Development Indicators database
Millennium Development Goals Equator Principles guidance on policy safeguards
Tools for stakeholder engagement ICLEI Survey of Local Agenda 21 processes
Case study: sustainable school construction
Indicators in action, Pastille Consortium, 2002
i n f o r m a t i o n Global Reporting Initiative Sustainability Reporting
Guidelines 2002

For information, consult [Link]/psm

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