1. Copyright 2005 by CH2M HILL The Challenge for Consultants Glen T. Daigger, Ph.D., P.E., DEE, NAE Senior Vice President and Chief Technology Officer (gdaigger@ch2m.com) Presented at the 2005 FIDIC Conference Workshop 5: Procurement and Financing of Sustainable Projects Beijing, China, September 6, 2005

2. Copyright 2005 by CH2M HILL 2 I Have Been Asked to Address The Following Questions: How Can Official Policies be Translated Into Real Projects? – How Can Sustainabilty be “Operationalized”? How Can Sustainabilty be Sold to Unwilling Clients? How is CH2M HILL Promoting Sustainability Through Its Projects? Introduction Translating Sustainability Into “Real Projects” Selling Unwilling Clients Sustainability and Projects Conclusions Introduction

3. Copyright 2005 by CH2M HILL 3 Introducing CH2M HILL Roughly $3B/yr Employee Owned Integrated Engineering, Construction, and Operations Company Three Client Groups: – Civil Infrastructure – Federal – Industrial Global Operations with 200+ Offices World-wide and 14,500 Employees in 110 Countries and 6 Continents Began in 1946 as Water/Wastewater/Environment Firm - Still Significant Focus Differentiate by Partnering to Provide Value-Added Services and Outperform™ Client Expectations www.CH2M.com Introduction Translating Sustainability Into “Real Projects” Selling Unwilling Clients Sustainability and Projects Conclusions

4. Copyright 2005 by CH2M HILL 4 What Measures Constitute a Sustainable Solution? Low Energy? No Chemicals? Extracts Products: – Phosphorus? – PHA’s? – Energy? Recycles Water? “Natural Systems”? Introduction Translating Sustainability Into “Real Projects” Selling Unwilling Clients Sustainability and Projects Conclusions

5. Copyright 2005 by CH2M HILL 5 “Triple Bottom Line” Defines Sustainabilty Balance Social Equity Environment Economy Sustainable Solutions Introduction Translating Sustainability Into “Real Projects” Selling Unwilling Clients Sustainability and Projects Conclusions

6. Copyright 2005 by CH2M HILL 6 Value Hierarchy Structures Criteria for Decision-Making Introduction Translating Sustainability Into “Real Projects” Selling Unwilling Clients Sustainability and Projects Conclusions

7. Copyright 2005 by CH2M HILL 7 Utility Scales Allow Analysis of Alternatives vs Criteria Meets Current Not Future Cannot Meet Current or Future Meets Current/Modified for Future Meets Current and Future Exceeds Current and Future Compliance with Standards Introduction Translating Sustainability Into “Real Projects” Selling Unwilling Clients Sustainability and Projects Conclusions

8. Copyright 2005 by CH2M HILL 8 Utility Scales Allow Analysis of Alternatives vs Criteria Introduction of New Institution Needed Not Possible to Meet Need Use Available But Unfamiliar Institution Needs Only Currently Available Institutions Availability of Institution to Provide Needed Service Introduction Translating Sustainability Into “Real Projects” Selling Unwilling Clients Sustainability and Projects Conclusions

9. Copyright 2005 by CH2M HILL 9 Los Angles IRP Integrates Stakeholder Values and Technical Analysis Decision Track Introduction Translating Sustainability Into “Real Projects” Selling Unwilling Clients Sustainability and Projects Conclusions Technical Track

10. Copyright 2005 by CH2M HILL 10 Weighted Scores Quantifies Value of Each Alternative Factors Considered (Range of Criteria) Reflects Values of Stakeholders Technical Evaluations by Professionals Final Score Introduction Translating Sustainability Into “Real Projects” Selling Unwilling Clients Sustainability and Projects Conclusions

11. Copyright 2005 by CH2M HILL 11 Two Key Points: Collect Data Necessary to Discriminate Between Options (to Make Decision) – Use of Existing or Easily Obtainable Data Often Creates Data Bias – Decisions Can Often be Made Based on Less But More Useful Data Stakeholders Do Not Have to Agree on Values (Relative Weights), Only on Selected Alternative Introduction Translating Sustainability Into “Real Projects” Selling Unwilling Clients Sustainability and Projects Conclusions

12. Copyright 2005 by CH2M HILL 12 Sell Sustainability to Unwilling Clients by “Just Doing it” Economic Equity Social Equity Environmental Equity Economic Performance Environmental Performance Social Performance Financially Viable Meets or Exceeds Environmental Standards Supported by the Public Introduction Translating Sustainability Into “Real Projects” Selling Unwilling Clients Sustainability and Projects Conclusions Sydney Water Corporation: Protect Public Health Protect the Environment in Accordance with the Principles of Environmentally Sustainable Development Be a Successful Business

13. Copyright 2005 by CH2M HILL 13 Sustainability is Promoted by Projects Through: Supportive Culture – At Heart, We are an “Environmental” Firm – Sustainable Development Community of Practice Client Selection – Culturally Compatible – Early Adopters Benchmark Projects Like Quality, Must be Built in, Not Pasted on Introduction Translating Sustainability Into “Real Projects” Selling Unwilling Clients Sustainability and Projects Conclusions

14. Copyright 2005 by CH2M HILL 14 A Few Closing Comments: Including Stakeholders Takes Time (and Budget) – Results in Supportable (Implementable) Solution Need Variety of Tools (Scalable) – BECC Example Focus is Critical: – Cooperation – Ethics – Control Introduction Translating Sustainability Into “Real Projects” Selling Unwilling Clients Sustainability and Projects Conclusions

15. Copyright 2005 by CH2M HILL The Challenge for Consultants Glen T. Daigger, Ph.D., P.E., DEE, NAE Senior Vice President and Chief Technology Officer (gdaigger@ch2m.com) Presented at the 2005 FIDIC Conference Workshop 5: Procurement and Financing of Sustainable Projects Beijing, China, September 6, 2005