Asset Management & Climate Change

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1 Asset Management & Climate Change An Introduction Owen James, C.WEM, C.Env, MIAM April, 2017

2 Assets the Fabric of our Society Meeting the social & recreational needs of our society Public health & safety Sustainable societies Enabling economic development

3 The Global Challenge is Enormous Increased demand 50% by 2030 (IEA) Energy Food Increased demand 50% by 2030 (FAO) Climate Change Water Increased demand 30% by 2030 (IFPRI)

4 The Canadian Challenge is Significant Ageing Infrastructure Urban Growth Climate Change

5 The Challenge of Efficiency

6 Who shouts the loudest:

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8 Canadian Infrastructure Challenge Infrastructure Deficit: $50-570B? To fix Canada s infrastructure, billions are just drops in the bucket Innovation can help to close the infrastructure gap Canada has a massive bill for new roads, bridges and pipes coming due, and it will take new technologies to close the gap Wear and tear behind water main break that flooded Montreal streets Nearly half of national park ecosystems rate as 'fair' or 'poor' in Parks Canada report

9 We cannot continue to do what we have always done FCM Video: Why invest in asset management

10 What is asset management

11 What is asset management? Coordinated activity of an organization to realize value from assets Managing assets effectively and efficiently over their whole lifecycle today and tomorrow. Objectives Plans & Decisions, Actions managing assets

12 What is asset management? Review & Improve Stakeholder requirements Policy, Strategy & Objectives - Investigation - Monitor performance Asset Management Plans & contingency plans Processes e.g. : - Decision making - Risk - Creation / Acquisition - Operations - Maintenance - Renewal - Disposal - Data & information - Systems - Resources & responsibilities - Training & competence - Communications

13 A Model of Asset Management Customers Legislation Investors Commercial Environment Natural Environment Organizational Strategic Plan Asset Management Strategy & Planning Lifecycle Delivery Organization & People Enablers Asset Management Decision Making Risk & Review Asset Knowledge Enablers Scope of AM IAM Conceptual Model 2011

14 AM Subject Areas & Skills Asset Management Strategy & Planning Asset Management Policy Asset Management Strategy Demand Analysis Strategic Planning Asset Management Plans Asset Management Decision Making Capital Investment Decision Making Operations and Maintenance Decision Making Lifecycle Cost and Value Optimization Resourcing Strategy and Optimization Shutdowns & Outage Strategy and Optimization Ageing Asset Strategy Lifecycle Delivery Activities Technical Standards and Legislation Asset Creation and Acquisition Systems Engineering Configuration Management Maintenance Delivery Reliability Engineering and Root Cause Analysis Asset Operations Resource Management Shutdown / Outage Management Incident Response Asset Rationalization & Disposal Asset Knowledge Enablers Asset Information Strategy Asset Knowledge Standards Asset Information Systems Asset Data and Knowledge Organization and People Enablers Contract and Supplier Management Asset Management Leadership Organizational Structure and Culture Competence and Behavior Risk & Review Criticality, Risk Assessment and Management Contingency Planning & Resilience Analysis Sustainable Development Weather and Climate Change Assets and Systems Performance & Health Monitoring Assets & Systems Change Management Management Review, Audit and Assurance Accounting Practices Stakeholder Relations

15 Standards / Frameworks Asset Management for Sustainable Service Delivery Effective Utility Management: The Key to Sustainability ISO Introduction ISO Requirements ISO Guidance

16 Key concepts and principles

17 The Plan-Do Check Act of Asset Management Act Improvement Plan Asset Management Planning Review of AM Activity Asset Management Enablers Check Delivery of AM Plans Do

18 Cost-Risk-Performance Relationship Service Risk Cost

19 Performance & Levels of Service You can t manage what you don t measure

20 Evidence Based Without data you re just another person with an opinion

21 Line of Sight

22 Lifecycle of Assets Cost impacts Risk impacts Decision Making Impacts Design & Construction Maintenance

23 Climate Change

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25 The Effects of Climate Change

26 Consideration in Planning

27 Consequence: How do events affect Society? Event Response Service Loss Business Loss Evacuation & Rehousing Damage & Recovery Environmental Loss Public Health

28 2011: $1.7B 2013: $3.2B 2016: $4.9B 2017:? Insurance Bureau of Canada

29 Possible Responses Natural Cycles Human Activity Climate Change Impacts and and Vulnerabilities Mitigation Reduction in the Causes of climate change Response Mitigate impacts & vulnerabilities Build response capacity Adaptation Response to the Consequences of climate change

30 GHG Mitigation AMP 5 Success Story Capital Carbon 54% Operational Carbon

31 Decision Making Stage gating

32 Flood Mapping Decision Making

33 CRD Greater Victoria Water Supply System All Risks Climate Risks

34 Asset Management Actions Leakage prevention Reservoir expansion Public Engagement High efficiency pumping Green roads Low level intakes Bike lanes Ammonia Control Flood defenses Lifecycle Costing Emergency plans HVAC modifications Natural lighting Fine bubble aeration Climate analysis Materials selection Asset risk evaluation Upsizing of sewers More tree planting

35 What can we do? Learn & Continuously Improve Improvement Plan Climate Policy Mitigation Objectives Adaptation Plans Contingency Plans Monitor Performance & Risk Review effectiveness Investigation of incidents & failures Act Review of AM Activity Check Asset Management Planning Asset Management Enablers Do Event data / indicators GHG in Decision Making Consider Climate Risk People aware, competent Delivery of AM Plans All Risks / Climate Risks Design Standards Innovate O&M Practices

36 Questions? Contact: Owen James,