ISC Member Update from the CEO – June 2025

Industry Insights and Reflections from Australia, New Zealand and Beyond 

Earlier this year, S&P Global published their report on how organisations can advance their sustainability strategies while navigating an increasingly fragmented world – highlighting the need to focus on measurable impact, cross sector collaboration and innovation solutions. The ten megatrends identified reflect very much our mid-year context: 

1. A challenging new policy landscape and continued geopolitical uncertainty. 
2. The clean energy transition struggling between policy and market forces. 
3. Worsening climate hazards alongside more stringent disclosure standards shining a light on adaptation. 
4. A recognised large climate finance gap – alongside practical solutions which may drive private mobilisation. 
5. Global carbon markets gaining momentum. 
6. Companies, policymakers and other stakeholders taking more concrete measures to tackle nature in tandem with climate. 
7. An increased pressure on sustainable supply chain management practices. 
8. Tension over what constitutes a just and equitable energy transition and who pays. 
9. The need to balance AI’s energy use against its utility as a climate tool. 
10. Push for consistent and comparable sustainability reporting alongside concerns about heavier reporting burdens for companies. 

Focus on Workforce 

Workforce is a core element of the Social Agenda in the infrastructure and sustainability sectors. One which the ISC has increased focus on in our rating tools, our capability building work and our external programs.  

The recent WEF Future of Jobs Report (2025) highlights how the above global megatrends – individually and in combination – are among the major drivers expected to shape and transform the labour market by 2030.  Report themes relevant to infrastructure sustainability include: 

• Green infrastructure is a top priority, driven by climate change mitigation efforts and the push toward net-zero emissions. The report signals significant job growth in areas such as renewable energy, energy efficiency, and sustainable construction practices. 
• Smart and sustainable energy systems—including renewable energy, energy storage, and grid modernisation—are reshaping infrastructure development and job demand. 
• Digital infrastructure expansion (e.g., broadband, data centres, smart cities) is essential for enabling sustainable practices and remote work, reducing urban congestion and emissions, whilst also presenting related sustainability challenges, e.g energy water use. 
• Environmental stewardship and green skills are among the fastest-growing competencies, reflecting the integration of sustainability into infrastructure planning and operations. 
• Public and private investment is increasingly directed toward sustainable infrastructure projects, such as green buildings, clean transport, and circular economy systems. Goals in infrastructure sustainability will likely require strategic collaboration and partnerships between governments, private sector stakeholders, and communities.  
• Workforce reskilling is critical, as demand for roles like sustainability specialists, environmental engineers, and green construction experts outpaces supply. ‘Over 39% of workers’ core skills are expected to change’ – with analytical thinking, creativity, and technological literacy becoming critical. The need for leadership in managing interdisciplinary, cross-functional teams will grow as sustainability becomes integral to project delivery. 
• AI and automation are being leveraged to optimise infrastructure efficiency, reduce waste, and support predictive maintenance in sustainable systems. Increased adoption of AI and ‘Big Data’ will influence how projects are planned, executed and operated. 
• Social Equity & workforce inclusion – potential for workforce displacement with increasing adoption of automation & technological changes. Raising the question for sustainability leaders, what are the social impacts to an equitable transition. 

City Rail Link (CRL) Social Outcomes 

City Rail Link, a major Auckland IS rated metro project, has made positive social impacts through training, employment, social innovation and supporting the future workforce. As the project nears completion, CRL has released the City Rail Link Social Procurement Case Study which shares their approach to social procurement, and highlights positive impacts experienced by Māori and Pasifika businesses, the reality of the challenges, insights for future tenders and stories from six of the 83 Māori and Pasifika businesses contracted. 

Some of ISC’s workforce initiatives:  

• The ISC’s Capability Framework for Infrastructure Sustainability Professionals is a valuable tool for early to mid-career sustainability professionals, managers and for People and Capability departments. 
• ISC’s fourth cohort of the successful RISE Mentoring Program supported by Gamuda, commenced at the beginning of June. 
• The Infrastructure Sustainability Academy aims to provide targeted learning and development programs for professionals in the infrastructure sector, such as our recent Future Executives Webinar and Masterclass. 

Other recent insights – finance, nature, circularity and AI 

The Australian Sustainable Finance Action Plan 2025-2027 sets out 26 priority actions for the next three years to support reduced emissions, climate resilience, protecting and restoring nature, First Nations economic self-determination and financial inclusion and community resilience. Listen here to Kristy Graham on our Infrastructure Connections podcast to learn more. 

A recent BCG report, Landing the Economic Case for Climate Action with Decision Makers, sets out the economic case for climate action—and how we can make it influence decisions today. 

The Growing Resilience report from WRI and the World Bank developed in collaboration with the African Development Bank, demonstrates how projects rooted in nature-based solutions are gaining momentum in sub-Saharan Africa. 

BSI has released a new standard for nature inclusive marine structures. PAS 1401:2025 covers how to plan, design, install, monitor and decommission marine structures to include nature-inclusive design, thus promoting biodiversity and resilient ecosystems. 

Resource use and waste generation in Aotearoa New Zealand: filling (some) gaps has been published by the Parliamentary Commissioner for the Environment, including challenges and opportunities for the infrastructure sector. It highlights that food, housing, infrastructure and mobility account for 72% of overall natural resource use.  Around 60% of the resources consumed in New Zealand were extracted overseas and imported, and data suggests this trend has increased over recent decades.  

ABC News article (May 20), AI is driving data centre growth — and it’s bringing environmental challenges, highlights the projected growth of data centres driven by AI, and the associated challenges relates to energy and water use. More action needed here.