Abstract:
There is an increasing focus by investment and financial stakeholders to rank, report, and
track Environmental, Social and Governance (ESG) performance of all sectors, including
the transport and infrastructure sector. This paper explores the application of ESG and
Future Ready principles in the multi-criterion analysis (MCA) evaluation tool to help with
decision making and implement the strategies and tactics to deliver on these commitments
on individual transport and infrastructure projects. The paper proposes and discusses a
systematic assessment framework for the appraisal of such projects. Such a framework is
required as, by implication, the budgeting process for most transport and infrastructure
agencies requires projects to be ranked in terms of their relative value.
The cost-benefit analysis (CBA), given its exclusive focus on economic efficiency, is not
suitable for this purpose. The multi-criterion analysis (MCA) is however capable of
facilitating project assessment and ranking in a multi-objective decision environment but
requires customization to consider local conditions and incorporate the different ESG
metrics that are part of the developing ESG reporting frameworks. The paper concludes
with the assertion that, in efforts to reduce the global carbon footprint of the transport and
infrastructure sector (net-zero) and ensure resilient and Future Ready societies, project
assessment frameworks should combine both MCA and CBA analysis by adopting an
overall multi-criterion approach with ESG, Future Ready principles and economic
efficiency (optimal allocation of resources) as decision criteria.
