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Sustainable Social and Ecosystem Stewardship

International Conference of the Greening of Industry Network June 15-17, 2007 Wilfrid Laurier University, Waterloo, Ontario, Canada

The Vale Residential Estate: Setting the Stage for Sustainable Stewardship

in New Communities. Corporations, sustainable communities, building resource recovery.

The Vale residential estate in Perth, Western Australia is being established by Multiplex Developments Australia Pty Ltd. Multiplex is working with EarthCare Sustainability Consultants and a network of other consultants, academics, government personnel and school and community groups to incorporate principles of sustainability throughout the development process and beyond. The aim is to build and enhance sustaining social, natural and economic capital that will endure in the newly formed community once the builders have left. An integrated approach is being implemented across a range of areas, such as the design of housing and other infrastructure, development of sustaining business strategies, methods of building a new community with a strong sense of place, and ways of fostering a stewardship ethic in respect to the local, regional and global environment. Multiplex is leading by example in the estate construction phase by supporting programs such as the Vale Smart Builders Program, for instance. This involves the collaborative development of new management strategies that link stakeholder businesses in the housing construction phase to provide more sustainable resource recovery. This paper begins by briefly outlining the nature of the challenges and opportunities the developer faces in helping to lay the physical, social, environmental and economic foundations of a sustainable community. It then focuses specifically on the Vale Smart Builders Program as an innovative management system which capitalizes on existing technological capabilities and potential economic benefit in order to reduce the amount of builders’ waste that goes to landfill and to increase the amount of recycled product used in the construction industry. The importance of shared learning in this process is discussed. GOLLAGHER, M. EarthCare 12 Whyalla Court, Bibra Lake Perth, Western Australia Phone: (08) 9434 2200 email: margaret@earthcare.net.au

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The Vale Residential Estate: Setting the Stage for Sustainable Stewardship

in New Communities.

Introduction

Vale is a master-planned residential estate being established in Perth, Western

Australia, by Multiplex Developments Australia Pty Ltd. The company is

committed to identifying and implementing development practices that promote

sustainability. This paper begins by briefly outlining key strategies the developer

is employing in order to lay the physical, social, environmental and economic

foundations of a sustainable community. It then focuses specifically on the Vale

Smart Builders Program as an innovative management system which capitalizes

on existing technological capabilities and potential economic benefit in order to

reduce the amount of builders’ waste that goes to landfill and to increase the

amount of recycled product used in the construction industry. The importance of

shared learning in this process is discussed.

Greenfield estates

Vale is a greenfield estate, that is a ‘master-planned’ residential neighbourhood

generally established on land not previously used for urban construction.

Developments of this kind have contributed greatly to suburban expansion in

Australia throughout the twentieth century (Dowling and McGuirk, 2005, 2). They

tend to take the form of ‘large scale, integrated housing developments produced

by single development entities that include the provision of physical and social

infrastructure’ (Dowling and McGuirk, 2005, 3). In Australia, greenfield estates

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are often established at cities’ perimeters or on large sites earmarked for urban

renewal (Dowling and McGuirk, 2005, 3).

The estate covers 537 hectares, with development proceeding in a number of

stages until completion in 2016. Eventually, Vale will have 4 500 new homes and

approximately 12 000 residents. It will also have shopping centres, schools,

parks, and child and aged care facilities for use by people from Vale and

surrounding communities (Multiplex Group, 2007, n.p.).

Vale is an example of a master-planned community where

extensively planned integrated developments, incorporating physical and social infrastructure, are frequently complemented by programs of community development and various forms of ‘community compact’ (including behavioural...compacts) used to mastermind social interaction and nurture community sentiment, binding residents and developers to the vision and localized practice of ‘community’ (Dowling and McGuirk, 2005, 3).

Multiplex is attempting to create a ‘point of difference’ at Vale by embracing

principles of sustainability throughout the design and construction of the estate.

The intention is to ensure that Vale creates a benchmark for sustainable urban

development in the future (Multiplex Group, 2007, n.p.). A network of

participants including EarthCare sustainability consultants, stakeholder

businesses, academics, government personnel and school and community

groups is being drawn together to try to achieve this aim. Given the prevalence

of master planned community developments in Australia (Dowling and McGuirk,

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2005), such initiatives are important. The Australian Institute for Sustainable

Futures recognizes ‘significant opportunities associated with implementing

sustainability’ on residential subdivisions (2005, ii).

In order to enhance the sustainability of the community, the development must

be informed by an appreciation of the interconnections between biophysical,

built, and socio-cultural contexts. The company’s commitment to adopting

principles of sustainability implicitly requires an integrated approach to the use of

resources, preservation and enhancement of the environment, and community

building. This is a challenging goal, and one that is not easily or quickly

achieved. It is often difficult to balance short term economic goals such as

business profitability and the provision of affordable housing with the long term

goals of sustainability, for instance.

Sustainability in this context is very much an evolving process, often hampered

by resistance to change. Furthermore, people in particular positions within the

company have great influence over the direction the project takes – staffing

changes have already lead to changes in strategy and direction. These

inevitable difficulties can be overcome to some extent by emphasizing ongoing

processes of shared learning throughout the network of stakeholders involved at

Vale.

Fostering stewardship

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Nearly one quarter of the land at Vale has been set aside for open space,

conservation and recreation. Key areas of concern in terms of conservation

include reserves of local bushland (‘Bush Forever’ sites), wetlands and

connections to Perth’s Swan River. A grass roots participatory approach is being

encouraged in order to foster governance structures supporting stewardship over

the long term. This task is uniquely challenging in a community that is literally

being built from the ground up1.

Links are being created between residents joining the new and growing

community at Vale, local and state government agencies and non-government

organisations (NGOs) (Multiplex, unpublished, 2). For example, staff members

from nearby Whiteman Park, which is managed by the Western Australian

Planning Commission (WAPC), and from the North Metropolitan Catchment

Group are beginning work in partnership with residents to take care of

conservation areas over the long term.

Multiplex provides new home buyers at Vale with information designed to foster

long term stewardship of the area’s natural environment. Residents are offered

advice about the influence their activities are likely to have on the surrounding

1 Some baseline information is available regarding the likely demographic composition of the community at Vale. For instance, Australian census data indicates that younger families tend to move to greenfield estates in the outer suburbs (ABS, 2001). Data has been collected on the community’s likely employment rates, percentage or owner-occupiers, education, income and family structure.

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natural and built environment. Other sustainability initiatives that are being

implemented Vale or are planned include:

♦ landscaping packages, including ‘Smart Gardening’ workshops and rebates

for homeowners to encourage them to adopt environmentally friendly garden

design and practices in order to minimize fertilizer and water use, save

energy and provide wildlife habitat;

♦ ‘Smart Homes’ workshops providing information for new residents about

sustainable building design and running practices;

♦ residents’ days are held twice yearly to enhance community building

♦ community engagement and empowerment strategies, including a community

arts project, a community and wetland interpretive centre, the Vale Water

Sensitive Display Park, a culture and environment interpretive trail, an intranet

to provide links and information for residents, and the Swan Valley Anglican

School’s Productive Garden;

♦ conservation activities during the estate’s construction – seed collection,

relocation of significant plant species, weed management, dieback

management2

♦ the Vale Smart Builders Program, described later in this paper (Multiplex,

unpublished, 2).

2 Dieback is a disease caused by the organism Phytophthera Cinnamomi. It affects certain species of Eucalyptus trees. The organism can be spread by vehicular movement, such as that of trucks involved in construction.

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The relationships between various aspects of the build environment at Vale and

their impact on culture and form are also being considered. For example, one

aim is to provide public spaces that encourage a communal sense of place and

belonging, while at the same time reducing the need for residents to replicate

publicly available amenities in their own homes. The estate has been designed

so that people can easily walk between neighbourhoods. This community

building approach can reduce the amount of space needed for each housing site

and encourage the development of diverse styles of housing within the estate. A

variety of housing types will also cater for demographic shifts anticipated in

future.

Research at Vale

Multiplex founded the Multiplex-Murdoch University Sustainability Research and

Development Fund in order to help facilitate the requisite multilayered processes

of learning for sustainability at Vale. The fund will ‘enable active research into

sustainability practices and community development to be undertaken on site at

Vale’ (Multiplex Group, 2007, n.p.). Post-graduate students will undertake

research throughout the establishment of the new community. Research topics

to date include sustainable landscapes, community development, governance

models, place-making and accessibility (Multiplex, unpublished, 2). The

Managing Director of the company states that

The results of this research will not only help inform current industry practices but will also be applied to future projects, while the long-

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term vision for the fund is to develop a research centre of suburban studies based on Vale (Multiplex Group, 2007, n.p.).

Research that links universities, business and community groups in such ‘public-

private partnerships’ (PPPs) has demonstrated potential to promote sustainable

development (von Malmborg, 2004; Agamuthu and Hansen, 2007). Universities

often have a key role to play in PPPs. Agamuthu and Hansen (2007), for

instance, studied international research in solid waste management undertaken

between 1998 and 2006 by Danish and Malaysian universities in collaboration

with other partners. Agamuthu and Hansen note the successes of the research

and conclude that such ‘university reach-out is considered vital to development in

all countries actively striving for global and sustainable development’ (2007, 241).

Hands-on research at Vale can assist busy professionals in the development

industry by stimulating innovation, providing relevant data, knowledge and

analyses and identifying world’s best practice.

Criticisms of greenfield developments

Researchers argue that since this growing form of urban development has such

a significant place in contemporary Australian society it should be examined in

terms of its ‘social formats and the qualities of neighbourhood and community (it

sustains)’ (Dowling and McGuirk, 2005, 5). Such analyses are important,

particularly when promoting sustainability as a core principle to guide the creation

of a new community.

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Some international analysts have identified exclusivity as a negative and defining

characteristic of greenfield developments (Gwyther, 2005), a hurdle for the

creation of any ‘sustainable community’. Critics argue that master planned

communities are created to appeal to people looking for places of ‘homogeneity,

social distinction...security and protection...’ where the ‘the non-resident can be

designed out’ (Dowling and McGuirk, 2005, 3). Vale is presented as a

prestigious estate and a desirable place to live. Not everyone will be able to

afford to buy a house there. Many people will effectively, even if not deliberately,

be ‘designed out’. This represents a fundamental challenge to the developer’s

intention of creating a sustainable community.

However, the picture is ambiguous - other studies of similar developments

around the world have revealed a mix of inclusiveness and exclusiveness (Ross,

2002). At Vale, the need to respond to criticisms of greenfield developments

such as the tendency for them to be homogenous, to fall short of residents’

needs and to be based on static plans has been recognised (Multiplex,

unpublished, 2). Multiplex notes that each community

is unique, with its own set of constraints, opportunities and desired futures and each community therefore needs its own individual framework to enable it to become economically, environmentally and culturally healthy into the long-term (Multiplex, unpublished, 2).

The sustainability initiatives that Multiplex is implementing at Vale provide an

important platform from which to begin to address these issues. Furthermore, in

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many cases they are also designed to be of benefit to other Western Australian

communities. The Vale Smart Builders Program described in the next section

illustrates this point.

The Vale Smart Builders Program

The Vale Smart Builders Program focuses on the housing construction phase at

the estate. The program’s primary aim is to reduce the amount of residual

building material going to landfill. It is hoped that a financially viable business

model promoting resource recovery, recycling and reuse will be developed,

incorporating the full spectrum of businesses in the home building industry.

The program embodies inter-organizational action and draws on public-private

partnerships for sustainability.

The Vale Smart Builders Program is being implemented in three stages over two

years. The first involves basic recycling strategies and engagement of

stakeholders in the design and implementation of resource recovery systems.

This phase is scheduled to take 4 – 6 months to complete. During the 12 months

of the second phase, a more coordinated approach will be taken, possibly using

a transfer station on the estate and hiring a waste management contractor to

collect and recycle materials to provide economies of scale. In phase three, the

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resource recovery systems implemented during stage two will be refined and

continued.

In Western Australia, landfill is currently the predominant means of disposal of

most waste. Construction and demolition processes contribute just over 50% by

weight of the 2.8 million tones of waste going to landfill in Western Australia

(WMB, 2006, 9; Western Australia Department of Environment, 2006, 1).

Currently, most building waste is collected as mixed waste and sent to landfill.

Two key factors behind this practice are a ‘waste management culture’ in the

building industry that accepts this as standard practice and the historically low

cost of disposing material to landfill (Cardno BSD, 2006, 4). The Bureau of

Industry and Economics indicates that landfill prices throughout Australia are too

low to reflect the full cost of externalities such as loss of recyclable resources,

land and facilities provided for tipping waste, landfill closure and rehabilitation,

and health costs to the surrounding community (WMB, 2005, 6). However,

landfill levies are likely to increase substantially in future, with some of the

funding earmarked for use to ‘influence behaviour and support establishment of

best practice infrastructure and systems’ (Western Australia Department of

Environment, 2006, 5).

The inefficient material flows which result in resources being sent to landfill have

economic implications for businesses (WMB, 2005, 4). In the Western Australian

home building industry, approximately 5% of profits are discarded as waste to

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landfill (Brereton and van Berkel, 2001, 1), a figure of concern in an industry

where margins are tight. Furthermore, this means that companies are paying for

materials twice – once when they purchase them and then again when they pay

for their disposal. However, companies are increasingly coming to an

understanding of ‘waste’ as a potential source of profit, or at least cost

minimization. In practice, this view has been seen for some time as fundamental

to the establishment of sustainable waste minimization and resource recovery

strategies (McDonald and Smithers, 1998, 72)

The Vale Smart Builders Program builds on research undertaken by the Western

Australian Housing Industry Association (HIA) at Ellenbrook, a neighbouring

residential development. The researchers found that the majority of builders

‘recognised the significance of construction waste as a financial cost to them and

as an environmental issue and a public relations matter’ (GreenSmart, 2005, 6)

Most residual building products are reasonably easy to recycle (WMB, 2006, 6;

Chiva, 2005). In Perth, construction and demolition (C&D) waste recycling

companies together with some suppliers already have the capacity to handle the

volume and types of waste generated in the Vale initiative. This market driven

C&D recycling industry ‘provides a mechanism by which to achieve reductions in

waste going to landfill’ (WMB, 2006, 16). Left over bricks, concrete, rubble, sand,

wood, metal and paper can all be processed by existing firms. These

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substances can be recycled and/or reused in the building industry and elsewhere

and generally cost less than the equivalent raw material.

In Western Australia, cost effective resource recovery is difficult at individual

building sites. This is because of the comparatively small quantities of materials

involved and their low market value (GreenSmart, 2005, 7) particularly once the

labour and transport costs of collecting resources from dispersed building sites

are taken into account. However, it is possible to achieve vital economies of

scale by implementing a coordinated waste management strategy such as the

Vale Smart Builders Program at greenfield estates (GreenSmart, 2005, 8). At

Vale, individual waste contractors will be given the opportunity to tender for

responsibility for the collection and transfer of materials to recycling stations

during Phase 2. On-site separation and coordinated recovery and storage of

residual building materials on a transfer station provided on the estate by the

developer will be designed to improve the profitability of resource recovery.

On-site separation is useful because tipping fees for sorted materials are lower

than for mixed waste. During Phase 1, a number of builders at Vale are

beginning implementation of on-site sorting in line with the construction cycle.

Several of the construction managers working at Vale have indicated the need to

take a proactive approach to resource recovery in anticipation of future economic

and legislative pressures, regardless of immediate financial outcomes.

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However, if sorted materials are contaminated by even small amounts other

forms of waste, they are more difficult and expensive to process. Therefore it is

imperative that effective sorting and collection practices are well understood and

strictly adhered to. This is a difficult task. At Ellenbrook, for example, although

a comparatively high level of separation of resources was attained on each

building site involved in the construction waste initiative (Greensmart, 2005), it

proved difficult to achieve optimum on-site separation. The waste contractor

responsible for removing materials from each site expressed the view that this

was a result of the difficulties in enlisting and informing all subcontractors

adequately (Charles Begley, pers. comm.).

Inter-organizational management

Businesses involved in housing construction at Vale include the corporation

developing the estate, building companies and small enterprises, sometimes

consisting of one construction or waste management subcontractor. Each has a

role to play in the Smart Builders Program and each stands to benefit by its

success.

Other participants in the Vale Smart Builders Program include sustainability

consultants, academic researchers, local and state government departments,

industry bodies and community groups. The network of collaborators

contributing to the program have overlapping aims and motivations, ranging from

securing market benefits for stakeholder businesses and the industry in general,

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to promoting environmentally friendly practices for the good of the entire Western

Australian community. These collaborators are coming together in a ‘public-

private learning-action network’ (von Malmborg, 2004, 345) driven forward by

shared learning experiences.

The program is supported by the Western Australian Government. It receives

substantial funding from the Western Australian Waste Management Board’s

(WMB) Strategic Waste Initiative Scheme (SWIS). The WMB ultimately aims to

ensure that ‘all Western Australians live in a waste free society’ (2005, n.p.). It

offers financial support and advice to initiatives that support that aim. The

WMB’s proposed long term actions include the provision ‘of seed funding to

assist private industry to generate business plans’ and to work with ‘industry

associations to facilitate improved recycling processes and infrastructure’ (2006,

17).

This approach to resource recovery clearly requires inter-organizational

management (Sindin, 2000) between ‘mutually interdependent actors’ (von

Malmborg, 2004, 344). In this case it would be more accurate to describe it as

an example of inter-organizational management for sustainability, since it is

concerned with profitability as well as environmental and social issues.

Inter-organizational strategies demonstrate a shift from

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the model of the firm environmental effort from one with an internal focus (or passive one) into a model that includes active engagement in inter-organizational environmental management (Sindin, 2000, 82).

Recycling systems such as the Vale Smart Builders Program frequently rely on

inter-organizational environmental management (SIndin, 2000, 82), involving a

process of

developing, implementing and operating a take-back and recycling system (that) leads participants to co-operate in ways that lead to a higher efficiency in the system (Sindin, 2000, 83).

The Vale Smart Builders Program fits the WMB’s criteria because it is targeted to

simultaneously achieve business and community objectives in relation to waste

management. The tendency towards exclusiveness inherent in the creation of

prestigious residential estates is countered by the inclusiveness of developing

strategies that could become the norm across the building industry and therefore

benefit the entire Western Australian community. The lessons learned in the

process are also likely to be of interest to national and international observers. It

therefore offers significant benefit in terms of local, regional, national and global

sustainability.

The SWIS funding received by sustainability consultants at EarthCare will be

used in part to overcome economic barriers that typically hinder attempts to

establish inter-organizational environmental management. There are up-front

economic costs associated with all forms of environmental management,

however inter-organizational strategies incur higher costs during the process of

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organizing cooperation between companies and because of the need for

governance structures or systems to manage the cooperation (Sindin, 2000, 86).

The government funding granted to EarthCare sustainability consultants offers

external support for facilitation and project management. The consultants are

acting partly as ‘knowledge brokers’ (von Malmborg, 2004, 334). Their efforts

mean that the costs to stakeholder businesses of establishing an inter-

organizational approach to resource recovery can be significantly reduced, which

may encourage participation.

Building sub-contractors’ inertial response to adoption of new resource recovery

strategies demonstrates key organizational and informational barriers to inter-

organizational environmental management. Where successful firms typically

benefit from a degree of resistance to change that ensures ‘performance

reliability and accountability’ (Hannan and Freeman, cited in Sindin, 2000, 88),

inter-organizational approaches often require fundamental operational changes

within and between firms (Sindin, 2000, 88).

Information flows are also critical. A key aspect of the Vale Smart Builders

Program is proving to be the development of relevant, externally coordinated

information and shared learning systems which reach all businesses involved,

from the developer to the many different subcontractors who each spend small

amounts of time on each home building site. For instance, site managers from

companies building homes at Vale have expressed the need to receive accurate

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information about construction and demolition (C and D) firms’ services and

requirements in regard to separation of materials on site. This information will be

used to inform subcontractors about required practices and standards.

Conversely, it is vital that subcontractors’ experiences and knowledge are

communicated accurately throughout the inter-organizational network. Their first

hand knowledge is invaluable in designing and evaluating innovative resource

recovery practices.

The Waste Management Board recognizes the need for communication and

behaviour change strategies to facilitate shared learning and engagement (2006,

16). It notes that

in order to achieve a successful outcome, some sense of ownership is required by the majority of participants and therefore the more inclusive the approach, the more likely there is going to be a positive response. In other jurisdictions the approach to waste management has combined government-sponsored schemes with a voluntary approach to facilitate a successful outcome (WMB, 2006, 16).

For these reasons the Vale Smart Builders Program is being designed and

enacted with the active assistance of all stakeholders. Workshops, surveys,

meetings and continual communication and feedback are provided as essential

to the program’s success. Rather than attempting to engineer interest, the

program is tapping into a slowly growing level of awareness and concern within

the industry and helping to translate this into action on the ground. It is one step

in an ongoing process of change in business models and culture in the

construction industry.

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In the long term it is anticipated that this strategy will continue to be emulated in

future, not only by the participants of this initiative, but also on residential

developments elsewhere in Western Australia. Later, the program could be

integrated into a broader, more holistic approach to waste management with a

view to eliminating or at least minimizing the amount of residual material

generated at home building sites in the first place.

Conclusion

Multiplex has taken steps to incorporate principles of sustainability throughout the

development of the Vale residential estate, a master-planned community. An

integrated approach is being implemented across a range of areas, such as the

design of housing and other infrastructure, development of sustaining business

strategies, methods of building a new community with a strong sense of place,

and ways of fostering a stewardship ethic in respect to the local, regional and

global environment. This effort is being informed by ongoing research and

processes of shared learning involving a wide array of stakeholders in public-

private partnerships.

As part of this overarching strategy, the Vale Smart Builders Program aims to

improve the sustainability of housing construction processes. This program

involves the development of new inter-organizational management strategies in

order to improve resource recovery and reuse. It accesses existing,

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economically viable reprocessing technologies by facilitating culture change

within the construction industry. Like all sustainability initiatives at Vale, the

Smart Builders Program is a work in progress, involving collaboration and shared

learning between diverse stakeholders.

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