This Memorandum details an initiative to demonstrate the Government's commitment to the implementation of the principles of Sustainable Development and Total Asset Management.

Government agencies are now required to incorporate the requirements of the Environmental Performance Guide for Buildings (the Performance Guide) in their Asset Strategies (ref. Premier's Memorandum No. 2002-10: Total Asset Management), and in subsequent project delivery briefs for buildings. This will establish high environmental performance outcomes and deliver lower operating costs for NSW Government buildings.

As detailed in my memorandum No. 2002-10, Total Asset Management provides a framework for the strategic planning and management of the State's assets to ensure that there are clear linkages between overall government policy, the services delivered to the community and the allocation of resources. It requires agencies to integrate the objectives of sustainable development across all their business practices from corporate planning to service delivery and resource planning. This approach also supports the Smarter Buying for Government strategy by providing a practical tool for achieving cost reduction and best value for money in the acquisition, operation, maintenance and disposal of government buildings.

The Performance Guide builds on the Sustainable Development Guideline in the Total Asset Management Manual (available on the Internet at gamc.nsw.gov.au/TAM2000) by providing a development process through which an agency's sustainable development objectives can be implemented in the planning, acquisition, operation and disposal of a built asset. It details an integrated delivery process that incorporates the environmental issues for stakeholders at all stages of the acquisition and operation of an asset's life to ensure that the finished product delivers a high environmental performance with least impact on cost. The benefits of implementing the Performance Guide can be readily quantified and the results recorded in an environmental assessment tool and performance report at a project and agency level.

The Performance Guide is interactive and continually updated on the Internet at asset.gov.com.au/EnvironmentGuide.

It is anticipated that the Performance Guide will be used by:

• government agencies to set project goals and more specific environmental briefs for building projects;
• project managers to set briefs and monitor design development;
• designers to review the full scope of design strategies and carry out self-assessment reviews;
• builders to review and manage environmental impacts; and
• facility managers to assess building performance and inform performance improvement strategies.

Incorporation of the Performance Guide as part of an agency's asset resource planning for all NSW Government capital works acquisitions will ensure that they deliver high environmental performance.

A building that has a high performance delivers outcomes in a number of areas:

• functional outcomes such as improved adaptability and maintainability;
• healthier indoor air quality, thermal comfort, illumination and acoustic environment; and
• significant efficiencies (in the order of 20 to 60%) through a lower whole of life cost, water, energy and resource conservation, minimal greenhouse gas emissions, and reduced pollution and waste during construction and in operation.

To ensure the currency and continuous development of the Performance Guide, the Government Asset Management Committee will monitor its implementation on all projects with a construction value in excess of $5 million. To this end, the Government Asset Management Committee, in conjunction with the Construction Policy Steering Committee, Ministry of Energy and Utilities and the Environment Protection Authority is developing an environmental performance reporting template based on the Performance Guide's assessment form. The reporting template will provide agencies with a tool for measuring and reporting the benefits of using the Performance Guide as well as integrating the data collection requirements of the Government Energy Management Policy and the Waste Reduction and Purchasing Policy. It is expected that a draft of the template will be available for trialing in March 2003.

Budget dependent and non-budget dependent agencies will be required to submit to the Government Asset Management Committee their environmental performance reports, using this template, for all new buildings with a construction value in excess of $5 million and for projects of a lesser value where it is economically feasible. These reports will be aggregated by the Government Asset Management Committee to develop a coordinated whole of government building environment report for the Minister for Public Works and Services to present to Government on its sustainable buildings outcomes.

Bob Carr
Premier

Related to M2002-10. Partly superseded by M2004-04 with respect to energy consumption and greenhouse emissions only