Research Outline
The Australian construction sector is one of the major emitters of greenhouse gases due to the large industrial activities in the sector. Therefore, actions towards reducing carbon emissions by all stakeholders particularly project managers (PMs) have become crucial in recent years. However, the roles and competencies of project managers to ensure the attainment of net-zero carbon in the construction industry by 2050 is still unexplored. In this research, we aim to investigate the specific roles and competencies of project managers and develop a competency maturity model towards achieving net zero carbon in a project lifecycle in Australia. This research will utilise expert forum and two-round Delphi survey to collect data from project managers to develop the maturity model. Further, the model will be validated using a case study through semi-structured interviews with selected experts. The resultant net zero carbon competency maturity model will help PMs to understand their critical roles and the competencies required to achieve net zero carbon in projects as well as meet the national net zero target by 2050.
Research background
ntegrated Environmental Social Governance (ESG) reporting has increased worldwide since its inception in 2006 as investors are demanding that organizations demonstrate their social and environmental responsibilities. As of 2020, the assets under management (AUM) for ESG based funds has grown to more than US$35.3 trillion and is expected to reach US$50 trillion by 2025. Australian investors are also following this global trend. It has become clear that ‘ESG regulation is no longer a question of “if” but “when” and “to what extent”, which creates an urgency to demonstrate that ESG factors are receiving the attention of corporations and their boards. ESG reporting is also having an impact on the funding of major infrastructure projects, and we expect that this will encompass all projects in the future as organizations report on ESG indicators. Although this impact is felt at the start of projects when investment is required, the literature on megaprojects shows an increasing need for projects to create social value as well as demonstrate environmental responsibility throughout their delivery. However, standards and guides on governance of projects do not seem to have kept pace with the requirements for ESG even though they refer to social value and sustainability. The data required to create ESG reports from projects is also not clear. This makes it difficult to design suitable project dashboards displaying information that would be useful to implement project governance and controls to comply with ESG requirements.
A review of prominent project management journals reveals that ESG is not discussed in research articles, which shows that there is a gap in the literature that requires investigating.
Aim and Objectives
The aim of this research is to investigate the impact of ESG reporting on project governance and controls in Australia with a specific focus on infrastructure projects for urban development, which could become relevant to all projects in the future. This would involve the following:
- Investigate the current state of the requirements for ESG reporting for infrastructure projects for urban development in Australia.
- Identify data to be collected from infrastructure projects and develop a uniform reporting scheme as there are variations between Infrastructure Sustainability Ratings between states in Australia.
- Develop a prototype visualization method to enable projects to incorporate these indicators for project governance and controls.
- Inform bodies that are publishing project governance standards and guides as well as the Infrastructure Sustainability Council of Australia.
Proposed research methods
A multi-method approach will be adopted to collect required data for this research. Following an extensive review of available academic and professional literature on ESG reporting requirements, a diverse sample of experts from industry will be interviewed. The semi-structured interviews will assist us to understand the current state of adopting ESG guidelines and reporting. Overall, ten interviews will be conducted and potential interviewees will be invited from Transport for NSW, Treasury NSW, City of Sydney, investors in 2 projects (Plenary, Capella), infrastructure developers/contractors (Acciona, John Holland, Motzky) and Infrastructure Sustainability Council of Australia, consultants (PwC Australia, TBH).
After analyzing data from the interviews, a data strategy will be developed for ESG reporting using the expertise of two doctoral researchers in the research team who are doing their research on data science and visualization in projects. A focus group will be conducted with five reputable research scholars and professional experts familiar with various project governance standards and practices to validate our understanding and data requirements. A proof-of-concept prototype to demonstrate the visualization of data for ESG reporting using a current infrastructure project will be developed with the assistance of a visualization research institute at an Australian university.
The practical benefits expected to be derived from the research
The dissemination of outputs from this study includes a report to the Project Governance and Controls Symposium (PGCS) and articles submitted to project management journals that will help report ESG indicators in major projects. The prototype will assist in enhancing governance and controls in projects.