INTRODUCING SUSTAINABILITY INTO AMEC PROJECTS

Presentation by Sustinium

23 October 2014

Agenda

• Background

• About Sustinium

• Sustinium’s approach to sustainability

• Value Improvement

• Case studies

Sustinium

“Our purpose is to deliver the

best quality advice to make

your business sustainable”

Who we are

• A small, responsive and experienced team • Principals John Russell and Malcolm Wilkinson

backed by associates • Operational backgrounds in the oil, gas,

petrochemical, FMCG and other process sectors and consultancy provision to all these

• Expertise in project management, sustainable development strategy and practices, organisational development, process innovation and manufacturing strategy

Sustainable Development

EnvironmentEconomics

Society

EnvironmentEconomics

Society

Maximising the efficiency of wealth creation is not sufficient for sustainable development.

We must balance wealth creation with impacts on natural capital, and society

The Business Case Learning to live sustainably within the limits and carrying capacities of the natural world is a non-negotiable imperative: the process can be delayed, but it cannot be avoided. The process industry’s contribution to society goes unrecognised because of its poor reputation. Proactive engagement with local communities, NGO’s, media etc is a must. The industry must explicitly address consumer’s concerns. Pro-active engagement enhances recruitment and retention. Investors are increasingly concerned to see companies managing their reputational risks. Financial success depends on earning the “licence to operate”. Dematerialisation is the name of the game: more economic value out of less “stuff”. Source: Chemistry Leadership Council/Forum for the Future

Industry Programmes

• Responsible Care – global EHS charter

• Product Stewardship – product centred approach to environmental protection throughout the lifecycle

• Sector GHG targets

• Corporate Social Responsibility

• Business groupings for sustainable development

Client approach

Opportunities for sustainable

development

Organisation’s fitness for

sustainable development

Potential pathways for improvement

Sustainability improvement targets

Actions to deliver targeted

improvements Sustinium Sustainable

Improvement Process

Sustinium model

Project interfaces

• SUSOP® is a sustainability risks and opportunities framework: – Applied through structured multi-disciplinary workshops

and supporting analysis mainly at the early phases of projects

• SUSOP® aims to

– Identify environmental, social and community issues – Translate them into operating designs and practices – Deliver better outcomes…without compromising financial

rigour

SUSOP® SUStainable OPerations

HAZOP brought a design methodology to safety; SUSOP® seeks to do the same for sustainability © 2014 SUSOP Pty Ltd

Value Improvement throughout the Project Life Cycle

OPPORTUNITY

Identify & assess positive & negative sustainability impacts Identify alternatives to manage impacts

PROPOSAL

Understand clients sustainability goals Identify sustainability goals and potential benefits

AWARD

Identify opportunities & risks & prioritise Finalise & agree sustainability targets & scope

DESIGN

Produce engineering definition of prioritised opportunities Incorporate sustainability expectations into procurement strategy

CONSTRUCTION

Identify sustainability issues in construction Engage subcontractors on sustainability expectations

HANDOVER

Transfer positive outcomes to client Perform project review and feedback for continuous improvement

ENGAGE WITH APPROPRIATE KEY STAKEHOLDERS THROUGHOUT

Making sustainability operational

Value improvement process

IMPACTS

Identify positive and negative impacts of project Consider the total project system & identify impacts using key words from the Venn diagram Engage key stakeholders

GOALS

Establish sustainability goals and potential benefits Based on client’s, AMEC’s or industry sector targets with “stretch” where possible Engage key stakehoders

OPPORTUNITIES & RISKS

Identify opportunities and risks and prioritise Using Sustinium’s Creativity Process develop impact list to identify specific sustainability improvement opportunities & risks Engage key stakeholders

ENGINEERING DESIGN

Produce engineering definition of prioritised opportunities Incorporate sustainability opportunities into detailed engineering design Engage key stakeholders

Case Study 1 (SUSOP®)

• Metallica Minerals Ltd SCONI project - nickel, cobalt and scandium deposit – Previously worked mine in northern Queensland (Greenvale

mine), Australia

• Allow Metallica to implement their corporate

sustainable development principles

• Key Outcomes – Reduce reliance on local water – Recycle water from residue facility – Reduce volume of residue facility – Will allow progressive rehabilitation – Capex reduction (about 50% compared with

wet reside storage facility)

15 © 2014 SUSOP Pty Ltd

Case Study 2 (SUSOP®)

• Review effluent treatment options for mineral processing expansion

– Critical to operation expansion

– Economic, environmental, and social considerations and risks

Key Outcomes

Replace proposed reverse

osmosis plant with wetland

Use precipitate from the effluent

as a cement alternative

Outsource limestone quarry to a

local business

16 © 2014 SUSOP Pty Ltd

Case Study 3 (Bechtel)

• Curtis Island LNG Project (EPC contractor)

- 3 LNG trains liquifying coal seam gas sited in Gladstone, Queensland

• Key outcomes - Minimise import of invasive marine species from shipping equipment to the island site through a management plan in collaboration with shipping brokers, customers, local authorities and NGOs

- Implement awareness and competency training in biosecurity for 800 employees in Australia and 400 at fabrication yards in SE Asia

- $1 billion in local procurement and contracts; 12,000 local employees hired; 434 indigenous employees and subcontractors hired

Case Study 4 (Bechtel)

• Crossrail Project (project management)

- new east-west rail line with 42 km tunnels and 9 stations in London

• Crossrail Ltd sustainability targets set a 5% reduction in construction CO2 emissions

• Outcome – to date cut emissions by nearly 10% at no extra cost - Diesel-electric hybrid excavators with 30% lower carbon emissions

- Bio-diesel fuel to operate cranes

- LED site lighting consuming 47% less energy

- Zero emission hydrogen fuel cells for portable power sources

- 32% of procured construction material from recycled material cf 15% target

How Might We Work Together?

We would very much like to work with you to help achieve your objectives:

• Continue the dialogue to identify opportunities

• You have suggested you will propose Sustinium services to your clients

• Invite Sustinium to review existing environmental procedures

• Organise a Value Improvement workshop focused on a completed project to see the benefits

Receive project brief from

Client

Prepare outline requirements of

process and facility

Map the environmental

and social context and identify stakeholders

Produce a composite set

of sustainability targets

Identify those aspects of the

project that require adoption of previous

solutions

Identify expectations of Client, explicit

and implicit

Conduct stage by stage assessment

of impact on environment and local community

Prepare first draft of

proposal, fully costed

Identify areas of promise for

innovative solutions

Develop and evaluate

innovative solutions

Prepare final proposal for

submission to Client

Assess organisational

fitness to deliver

proposal

Attend to organisational

weaknesses

Route map for Preparing Project Proposal

Receive project brief from

Client

Prepare outline requirements of

process and facility

Map the environmental

and social context and identify stakeholders

Produce a composite set

of sustainability targets

Identify those aspects of the

project that require adoption of previous

solutions

Identify expectations of Client, explicit

and implicit

Conduct stage by stage assessment

of impact on environment and local community

Prepare first draft of

proposal, fully costed

Identify areas of promise for

innovative solutions

Develop and evaluate

innovative solutions

Prepare final proposal for

submission to Client

Assess organisational

fitness to deliver

proposal

Attend to organisational

weaknesses

Route map for Preparing Project Proposal