Business Review Fy23 Final V4

Welcome to the first edition

Sonia Adams, Chief Client Officer

Welcome to the first edition of Nexus Magazine. Our goal is to bring you deep insights and diverse viewpoints that inform the global conversation on how to make businesses and society sustainable for generations to come.

Drawing on the vast experience of GHD’s thought leaders, innovators and groundbreakers, we explore the most pressing issues. Our goal is to prioritise data-backed analysis and practicality, sharing best practices and offering real solutions to help business leaders navigate an ever more complex world.

Indeed, the path forward for businesses has rarely felt so uncertain. Economic and political disruptions have continued to cloud the outlook across industries this year, forcing organisations to recalibrate their strategies to adjust to a rapidly shifting playing field.

Yet despite this, there is an enduring certainty on which leaders can ground their decisions – the intelligent and efficient use of resources will continue to give their companies a core competitive advantage. The terms used to describe sustainability may be changing as mandates face a political backlash, but that doesn’t change the reality that maximising the productive use of energy, water and other resources will be central to business resilience and success.

Our top story in this inaugural edition argues that it’s time for leaders to shift to a mindset of Absolute Efficiency – a theme that informs all of the stories. Absolute Efficiency means leveraging the use of resources to control costs, protect profits, drive innovation and build resilience, regardless of which political winds are blowing.

When performing due diligence on energy infrastructure, for example, an evidence-based evaluation of not only the risks but also the opportunities of the acquisition’s growth potential becomes a strategic tool for unlocking value.

Absolute Efficiency is a mindset that demands leaders rethink business as usual. Rather than a side project or an add-on, sustainable transformation needs to be treated as core to growth and woven into companies’ long-term strategic planning. Businesses need to take a holistic approach to planning that considers the needs of their stakeholders to avoid getting tunnel vision and seeing short-term gains eroded over the longer term by a lack of cohesion and poor integration.

It’s an approach that applies equally to city leaders who are grappling with aging infrastructure and rising citizen demands for better services. The most innovative municipalities are starting to apply the power of AI to understand their cities’ needs better. Others are using asset management best practices to roll out green infrastructure that will save taxpayers money and build resilience against more extreme weather.

This is an exciting opportunity to embrace the positive side of uncertainty –leaders have a license to experiment, innovate and break out of traditional silos to fuel growth and build long-term resilience.

A new sustainability paradigm Absolute Efficiency

Tai Hollingsbee, Asia-Pacific Market Leader, Sustainability

Stop with the buzzwords – businesses need to prioritise the productive use of resources because it makes long-term economic sense.

Call it Absolute Efficiency. It’s a powerful concept that leaders can lean into at a time when many of the terms and concepts around sustainability have become politically charged and hostage to electoral shifts. It recognises that despite these swings, it’s not time to step away from demonstrating credible, economically-minded progress.

Business leaders worldwide agree. According to the Business Breakthrough Barometer 2025¹, 9 out of 10 executives maintained or increased their investments in climate action and achieving emissions targets over the past year.

Absolute Efficiency means maximising the productive use of energy, water and other resources across every part of a business. It recognises that true sustainability isn’t about checking boxes or reading the political weathervanes. Unlike ESG jargon that may come and go, it represents an enduring lodestar for organisations because it is based entirely on evidence, science and measurable business impact. This is the mindset shift that businesses need in these uncertain times – one that views sustainability as a competitive advantage rather than a compliance requirement.

Absolute Efficiency reframes sustainability as a smart business optimisation strategy to control costs, protect profits, drive innovation and build resilience.

Adopting an Absolute Efficiency strategy can lower companies’ climate change risks, reduce exposure to scarce resources, and provide insulation against rising costs. That can include reducing waste by reprocessing it for new uses, boosting commercial outcomes while cutting inputs, and increasing the value of assets over time.

Economic sense

A report² released in June by the Paris-based International Energy Agency found that energy efficiency helps companies compete amid high costs, growing resource demand, and escalating trade pressures. The benefits, which can be replicated in efficiencies in construction materials, water- and other resources, range from boosting profitability to job creation. Despite this, the report notes that industrial efficiency gains have slowed recently as companies encounter barriers such as upfront costs and workforce constraints.

That’s why bold, deliberate planning on efficiency across the energy, water and materials that companies use is so vital. Take accounting for the carbon costs of a product, for example. Incorporating those costs into 3-, 5- and 10-year forecasts may not be required by regulations, but it remains an effective way to protect profit margins and avoid surprise costs down the line.

Similarly, investing in energy-saving efforts for facilities today can help avoid future fines and legal costs, while also supporting the long-term value of assets by reducing resource costs. Reputational integrity and trust are also valuable assets, both of which can be strengthened by sustainability initiatives, such as wholeof-life carbon consideration in construction projects.

Thinking in systems

Absolute Efficiency calls for moving beyond isolated process improvements to thinking in terms of broader systems. That means taking steps that recognise and take advantage of the wider connections among circular economies, communities and supply chains.

The European Union is transitioning toward a fully circular economy, where waste is minimised and materials are kept in use for as long as possible, with a target completion date³ of 2050. But companies shouldn’t sit around waiting for the next regulation. For instance, rather than transporting waste to landfills at ever-increasing costs, companies can find partners who will utilise it as a raw material, thereby turning a liability into an asset.

Systemic thinking means identifying opportunities for shared value that can reduce costs and create new revenue streams. For example, instead of transferring heat outdoors, could large-scale data centres capture and sell the energy to a nearby hospital or laboratory? Similarly, carbon dioxide generated in the manufacture of cement factories can be repurposed as a building block in other products, such as sustainable aviation fuels. Taking the output of one system as the input of another – that’s Absolute Efficiency. Forward-thinking organisations are already using “material passports” – digital records of a product’s or project’s composition and potential reuse – to help them think about the life cycle of materials from the design phase onward. They are forming recycled, reconstituted and recovered material banks with customers eager to trim costs.

New tools, new possibilities

New technologies are opening up ways for businesses to achieve Absolute Efficiency through more intelligent design and planning. Consider the emergence of “mixed reality” headsets, such as the Apple Vision Pro. This novel device, which overlays data and digital content onto real-world surroundings, allows professionals to literally see how efficiencies can be integrated into projects.

Whether they’re designing a new retail store or refurbishing ageing infrastructure, project managers can strap on the device to observe how different materials, lighting and temperature control systems can change spaces and influence energy use. They can do so while streaming real-time data on energy performance, enabling them to model scenarios before committing to a budget.

This and similar tools are democratising planning and decision-making around efficiency. Managers no longer need to be skilled engineers trained in the science of efficiency – or even understand kilowatt-hours – to make sound business decisions on sustainability.

The objective is not to replace the role of scientists, technicians and consultants. Rather, it’s about empowering teams to seize opportunities and determine the most effective use of resources for projects.

The Absolute Efficiency mindset shift

Absolute Efficiency is a fundamental reframing of sustainability that steps away from political baggage, freeing businesses to focus on what they understand best – measurable results and bottom-line impact.

It means being bold enough to think systemically, work outside traditional silos, and push suppliers to find efficiencies to build long-term resilience, regardless of the policies governments are planning or implementing. Don’t wait for instructions. Instead, decide what to do and how to get there, simply because it makes good business sense.

References

1. World Business Council for Sustainable Development (WBCSD). June 30, 2025. “Business Breakthrough Barometer.”

https://www.wbcsd.org/actions/business-breakthrough-barometer

2. International Energy Agency (IEA). June 2025. Gaining an Edge: The Role of Energy Efficiency in Enhancing Competitiveness.

https://www.iea.org/reports/gaining-an-edge

3. Center for Sustainability & Excellence. January 31, 2025. The EU’s Road to a Circular Economy by 2025: Key Steps and Challenges.

https://cse-net.org/eu-road-to-a-circular-economy-by-2025-key-steps-andchallenges

9/10 executives maintained/increased climate investment (2025 survey)

Ditching decarbonisation?

Charlotte Gray, Graduate Engineer, GHD

Transitioning for profitability and competitiveness.

Conceptual models: material passports, circular flows, waste-to-value systems

Reframe sustainability: control costs, protect profits, drive innovation and build resilience

Muwaffaq AIKhedery, Senior Advisor, Sustainability, Resilience and ESG

Steel, cement, chemicals, aviation, shipping and heavy transport industries that seem hardest to decarbonise are also sitting on the biggest opportunities – with early-movers racing to capture market share. Amid global political and economic volatility and under extreme pressure to deliver short-term, bottom-line returns, it turns out that organisations aren’t ditching decarbonisation. According to the World Business Council for Sustainable Development’s (WBCSD) Business Breakthrough Barometer 2025¹, nine out of ten business leaders surveyed maintained or increased their transition-related investments and emissions targets over the past year.

In the absence of policy certainty, global organisations have struggled to rationalise hefty transition investments in emerging technologies while delivering quarterly results to shareholders, according to WBCSD, companies are increasingly channeling investments into ‘bright spots’ – i.e. markets offering stable policy environments, affordable clean energy and growing demand for low-carbon solutions.

The stakes to decarbonise remain high

Jane Nethersole, Head of Programmes, Climate Action

Almost all of the business leaders surveyed in the Business Breakthrough Barometer 2025 believe that achieving a net-zero economy, one that delivers a stable climate, in the long term, will result in lower burdens on their organisation than the costs of transitioning. On top of that, industries are collectively recognising that if they want to thrive and survive, they need to decarbonise.

In April, the UN International Maritime Organisation and Marine Environment Protection committee agreed to have its net zero emissions framework formally adopted in October this year before coming into force in 2027².

References

1. World Business Council for Sustainable Development – Business Breakthrough Barometer 2025 https://www.wbcsd.org/actions/business-breakthrough-barometer/

Example: data centre reusing heat for hospital

2. United Nations, April 2025 “Countries reach historic deal to cut shipping emissions”. https://news.un.org/en/story/2025/04/1162176

A reality check: Progress amid persistent challenges

Hard-to-abate industries account for nearly 40% of global greenhouse gases. And while these sectors are nudging in the right direction, heavy industry comes up against fundamental physics when it comes to decarbonising. Steel production requires temperatures exceeding 1,500°C. Cement manufacturing inherently releases CO2 through chemical reactions. Aviation demands energy-dense fuels. These process emissions— distinct from energy-related emissions—have remained largely unchanged for decades.

Over the last 12 months, companies in harder-to-abate sectors have marched on by positioning themselves for long-term competitiveness by anticipating evolving regulatory frameworks, tightening regulations and procurement requirements. Why else are organisations not losing focus on decarbonisation? Fifty-six percent of surveyed business leaders say the primary motivation for investing in the transition is to secure long-term industrial competitiveness.

Five ways to make viable progress

01

Diversification for market leadership

Outside of the World Economic Forum’s recommendations³ to focus on collaboration, electrification and circularity efforts, below are practical measures for business leaders looking to position their decarbonisation efforts for profitability and competitiveness.

Focus on a balance of shortterm wins, while investing in longer term goals and more transformational strategies. Devote resources to large, complex decarbonisation projects while focusing on near-term opportunities that bring you closer to the end goals. For example, investing in renewable energy infrastructure while pursuing ongoing energy efficiency programs. Consider what’s available to your business across financing mechanisms such as green bonds, publicprivate partnerships, climate funds and carbon pricing. Slicing up your decarbonisation strategy into achievable components will help you adopt a more practical approach while working on bigger, flagship-style solutions.

03

Orchestrate an ecosystem

Decarbonisation cannot be achieved in silos. Organisations must adopt a collective approach to drive low carbon operations and processes. Internally that means breaking down traditional silos and encouraging cross-functional cooperation. Collaboration extends to encompass likeminded partnerships with industry peers, government, industrial hubs, even competitors. Industry alliances and collaborative initiatives enable shared standards, best practices and frameworks.

04 02 05

Technology investment for new efficiencies

Digital innovation can fasttrack positive outcomes. Emerging technologies across carbon capture, utilisation and storage, biofuels, new production pathways for materials, hydrogen and its derivatives can all be considered in your plans. Start with considering what technologies you already have available and go from there to establish new systems and platforms that support long-term transition efforts. To select ideal digital partner organisations, conduct a needs gap assessment to identify the additional capabilities and expertise required to accelerate achieving your net zero goals.

Digital-first measurement and tracking

Spreadsheet-based emissions tracking is becoming a competitive liability. Companies that can accurately and repeatedly report their decarbonisation progress are emerging as preferred partners for investors and customers. There is also greater scrutiny surrounding emissions, their origin, calculation and aggregation. Leverage digital data to track metrics, map supply chains and integrate renewables into manufacturing.

Intertwined in these steps is the call for pooling thinking, best practices and resources, desperately needed to drive industry forward. Creating forums and collaboration opportunities is crucial for carving out a clear path.

Organisations seeking long-term stability, adaptation and resilience, and those wanting to perform in an increasingly complex environment need to decarbonise. Evaluating your risks and implementing actions to address operations, practices, products and services is critical regardless of your industry.

Hard-to-abate sectors require more significant diversification and changes across the supply chain to edge closer to targets. Reframe the conversation from a set of problems to solve and costs to outlay into one about opportunity and future-proofing.

Integrated solution development

Explore which low carbon alternatives for scaling are most cost effective and also provide greater diversification across domestic and export customer bases. Execution plans that combine multiple low carbon energy customer sets are likely to provide the best opportunities for early market entry. It will take a combination of solutions underscored by social buy-in, equitable policies, workforce upskilling and supporting communities. Consider harnessing AI and simulation tools to break down increasingly complex scenarios and support smarter decision-making.

From farms to the clouds

Can green ammonia solve the data centre energy dilemma?

Hassan Modarresi, Senior Technical Director – Energy, USA

Tej Gidda, Global Leader –Future Energy

Ron

Heffron, Vice President –US Hydrogen

Artificial intelligence and digital infrastructure are accelerating faster than the systems built to power them. Data centres - already among the most energy-hungry facilities on the planet - are scaling rapidly, yet many remain tied to outdated, emissions-heavy energy models.

Consider the projections: in the US alone, data centre electricity use is forecast to surge by 160 percent by 2030 - adding approximately 650 TWh of demand and accounting for 8 percent of total national electricity consumption. Meeting this load will require an estimated US$50 billion in new power generation, with 60 percent expected from natural gas and 40 per cent from renewables¹.

So, how do we power the future of AI? A new solution is emerging - powering data centres with on-site renewables and future fuels, including green ammonia. By integrating solar and wind generation with hydrogen electrolysis and ammonia storage, operators can create fully off-grid, low-carbon systems which are resilient by design and ready for the AI era.

Beyond the hype: why ammonia?

Ammonia and its derivatives have historically been used in agriculture and industry, but its role in energy is evolving quickly. When produced from green hydrogen and nitrogen via renewables-powered electrolysis, it becomes a carbon-free, storable fuel that can be cracked back into hydrogen or combusted directly in turbines or engines.

Among the three main “future fuels” being explored for clean powerhydrogen, methanol and ammonia - ammonia offers a uniquely strong fit for data centres. Hydrogen delivers the highest efficiencies and near-zero emissions, particularly in fuel cells, but presents significant storage and handling challenges. Methanol, while offering slightly better combustion efficiency than ammonia, depends on access to biogenic carbon dioxide (CO₂) for synthesis, complicating its scalability. Ammonia strikes a powerful middle ground: moderate efficiency, near-zero CO₂ emissions and compatibility with existing infrastructure and technology pathways.

It’s also scalable and transportable, with a far higher energy density than hydrogen alone which makes it ideal for distributed, high-demand facilities like data centres.

“This isn’t a future fuel for some distant tomorrow. Green ammonia is a real, available solution for today’s data centre challenges.”

� Hassan Modarresi, Senior Technical Director –Energy, USA

A real-world proof of concept

A techno-economic analysis conducted in a GHD West Texas case study evaluated an integrated system comprising 250 MW of on-site solar and wind generation and 140 MW of electrolysis capacity, designed to produce green ammonia to power an 80 MW behind-the-meter data centre².

The system demonstrated strong performance, delivering an annual energy surplus of 278 GWh and a shortfall of just 88 GWh. After factoring in conversion losses, the model shows that it can meet total site continuous energy demands over 99.999 percent availability

Importantly, the estimated levelised cost of electricity (LCOE) is $128/MWh today, with projections suggesting it could fall to $60/MWh as technologies mature, deployment scales and supply chains become more efficient.

The key benefits of renewable ammonia systems include:

Carbon-free operations

Unlike diesel generators or carbon-intensive hydrogen production methods, ammonia fuel solutions eliminate carbon emissions completely. Leveraging these systems represents a step toward achieving net-zero goals in the operations of data centres while setting new standards for environmental responsibility.

Scalability and economic efficiency

Ammonia’s ability to integrate into existing industrial systems and infrastructure makes it highly scalable. Additionally, lower production costs due to advancements in renewable energy technologies make ammonia a cost-efficient solution for high-demand sectors like data centres.

Storage versatility

Renewable ammonia can be deployed both as a direct fuel source and as a storage medium for hydrogen. This dual-use capability translates into flexibility for data centre operators who require systems that adapt to fluctuating energy demands.

You can download the whitepaper here

Ammonia Whitepaper

The real value of ammonia lies in bridging the tension between sustainability and uptime. Diesel and gas systems offer reliability, but at a climate cost. Renewables offer clean power, but intermittently. Ammonia-powered systems close that gap, offering dispatchable backup power during outages or demand spikes while enabling fully off-grid operation where needed.

Climate, compliance and resilience

The benefits go well beyond cost. The system’s carbon intensity is estimated at just 3 g CO₂/kWh, up to 150 times lower than natural gas. And unlike fossil-based systems, this solution recovers water vapour from combustion, offering up to one-third water reuse potential in drought-prone regions.

As data centres expand into remote, arid or gridconstrained areas, these advantages matter. Ammonia offers a path to resilient, modular power without reliance on pipelines, permits or centralised infrastructure.

The bottom line

Data centres power our digital lives. But to meet the future, they’ll need to power themselves - cleanly, securely and sustainably.

Green ammonia offers a way forward: a renewable, storable, scalable fuel that aligns uptime with decarbonisation. The technology is here. The use case is clear. And for data centres ready to lead, the transition has already begun.

They also support grid flexibility, allowing data centres to reduce peak load stress and decouple from energy market volatility. This isn’t just about technology. It’s about autonomy - energy systems that respond to internal demand, not external disruption.

Addressing adoption risks

Like any emerging solution, ammonia faces perceived barriers: capex, safety, regulation. But the industrial ammonia supply chain is already well-established, and advancements in green hydrogen production are reducing costs and improving system safety. Pilot projects in Europe and Japan have already validated ammonia-powered generators in commercial settings.

Policy support is also growing. National and regional regulators are now offering incentives for green ammonia production, infrastructure co-investment, and earlystage innovation partnerships³ ⁴.

The overlooked opportunity

Ammonia is well known in petrochemical, agriculture and heavy industry circles, but its application to data centres is still nascent.

For operators, the opportunity is not just decarbonisation, it is leadership. Green ammonia offers a way to design for resilience, signal climate alignment and unlock community and investor confidence.

Rethinking due diligence

From risk-aversion to enhancing value

Thomas Evans, Origination Leader Commercial Advisory

Investment decisions related to energy infrastructure projects are usually driven by one overarching and crucial question: What could go wrong?

But the most forward-looking businesses and investors in the space find they can unlock more long-term deal value by putting equal emphasis on another question: What could go right?

By making a systematic evaluation of opportunities as well as risks, it’s possible to turn defence into attack. Whether projects involve solar or wind power, battery energy storage, energy from waste or circular chemicals, due diligence becomes a strategic tool for unlocking value, opening pathways to higher ROI and fueling growth.

This more forward-looking approach doesn’t replace the vital work of kicking a project’s tyres for potential problems. Instead, it enhances it, allowing investment committees to make decisions based on a more holistic picture of an infrastructure opportunity.

Let’s first look at how a typical risk-focused due diligence process works.

For investors, the primary goal of due diligence has traditionally been to identify possible red flags, such as technical or commercial risks, that would enable them to negotiate a price reduction or withdraw from a deal altogether. It’s

also an important box to tick for investors with environmental compliance mandates.

Consider, for example, a solar farm: Investors would want to investigate any issues with the project’s grid connectivity or risks associated with its planning permission. They might also examine whether the appropriate commercial contracts are in place with buyers for the energy they plan to generate.

While the exact risks will vary according to the specific assets involved, every project typically raises technical, environmental, market and delivery issues that must be thoroughly evaluated and presented to investors.

Just as a prospective homebuyer would never move forward on a purchase without first checking the house’s roof and plumbing, this type of due diligence is a vital baseline for investors because it exposes the cost implications of any risks and tells them what it could take to mitigate them.

Where it falls short, however, is in providing a complete picture of a project’s potential. By getting only half the story, businesses and investors can’t make fully informed decisions.

From risks to opportunities

Risks uncovered in due diligence processes often contain the seeds of opportunities, but the traditional approach doesn’t follow through to explore what those seeds could mean for future growth.

Say, for instance, a diligence process finds that an investor’s 20 percent year-on-year compound growth expectation is threatened by bottlenecks in a project’s manufacturing capacity or sales pipeline. An opportunities-focused approach might ask how the seller’s existing supply chain and sales relationships could mitigate and even outweigh that risk.

It’s an approach that can demonstrate to investors that a company has a clear path to managing its risks and maximising opportunities. For instance, a business might vertically integrate or form joint ventures with partners to de-risk or tackle upcoming challenges — thereby shifting the conversation from “slow down” or “stop” to “how to stimulate growth.”

To capture a more complete picture for investors by widening the aperture to include opportunities as well as risks, use due diligence to probe for:

Market expansion

What regulatory trends or adjacent channels could be leveraged to expand a project’s market potential? How might existing partnerships be used to open up access to new sources of demand?

Supply chain strengthening

What are the prospects for forging strategic supplier relationships to diminish long-term supply risks? Are there opportunities to recycle or reinforce some components?

Technology boost

Is there an innovation roadmap that could allow the project to operate and scale most effectively and efficiently?

Management networking

Does senior leadership have relationships they can harness to expand opportunities and drive growth? Do they have the strategic skills to make the most of opportunities? Is the organisation’s structure adequate and set up to succeed and support growth?

Demand signals and product-market fit

How well does the project align with emerging industry trends? What benchmarking or global competitive information can be sourced for assessing ‘lessons learnt’?

While setting formal ESG targets is currently facing a “greenwashing” backlash, identifying growth opportunities through sustainable practices can be a central element of this type of diligence process. In fact, many fund managers operate within a compliance mandate, adhering to guidelines such as the Equator Principles¹ or Article 6² of the Paris Agreement, which obligates them to report sustainability risks. A project might deliver local social or environmental benefits that would strengthen its long-term viability, or a company

Making the shift

To emphasise opportunity while still acknowledging risk, investors need to demand more from their advisors during the due diligence phase. That means pushing them to analyse the big picture, rather than getting stuck in the weeds of technical risks.

Flagging technical risks is step one, but it’s the advisors’ job to then place those risks in context and weigh them against long-term value creation. And consider which risks will have a material impact on the business’s costs and cashflows.

An opportunities-focused approach also benefits from calling on a broader, more interdisciplinary team than due diligence usually entails. Engineers may be crucial

could look to differentiate itself through sustainability metrics that attract customers with decarbonisation or related goals.

Despite political changes, the market for decarbonised solutions remains strong due to several prominent companies pushing ahead with their targets. Coca-Cola³, AB InBev⁴ and Unilever⁵, for example, all have net-zero targets in place, which is driving their supply chains to invest in and develop net-zero products and services.

for identifying and resolving technical problems. Still, businesses should look for advisors who bring in other professionals, such as economists and investment bankers, to determine how commercial, financial and market factors could impact value accretion.

It’s important not to treat the opportunity focus as an “add-on” late in the day. Instead, it should be integrated into the diligence process right from the start because it will inform and enhance the entirety of the discussion.

It’s about reframing due diligence from a static checklist of problems to a primary strategic tool for unlocking growth. Not to mention, if the transaction goes through, it serves as a blueprint for success.

References

1. The Equator Principles. April 2025. The Equator Principles. https://equator-principles.com/about-the-equator-principles/

2. United Nations Framework Convention on Climate Change (UNFCCC). 2025. “Article 6 of the Paris Agreement.” United Nations Climate Change. https://unfccc.int/process-and-meetings/the-paris-agreement/article6

3. Coca-Cola. n.d. “Climate Action: Coca-Cola.” Coca-Cola. https://www.coca-cola.com/xe/en/sustainability/climate-action

4. AB InBev. n.d. “Net Zero Executive Summary.” AB InBev. https://www.ab-inbev.com/assets/pdfs/Net%20Zero%20Executive%20Summary_FINAL%2012pm.pdf

5. Unilever PLC. June 3, 2025. “Our Climate Transition Action Plan.” Unilever. https://www.unilever.com/sustainability/climate/our-climate-transition-action-plan/

How natural ventilation helps futureproof buildings and control costs Beyond AC

Ali Rezghi, Junior Energy & Computational Fluid Dynamics Modeling Specialist

In a warming world, innovative businesses and urban planners are rediscovering the value of an old idea: Let nature do the cooling.

Natural ventilation – the science of moving air through buildings to maintain thermal comfort without the use of air conditioning systems – is emerging as a cornerstone of intelligent climate resilience planning.

Extreme heat is becoming the new normal, and it’s putting more strain on power grids. By incorporating natural ventilation into building design, organisations can reduce energy costs and carbon emissions, keep employees comfortable and protect against the costs of future climate extremes. It can also help businesses stay ahead of compliance demands as climate resilience and carbon emissions attract closer attention from regulators and governments.

Builders relied on natural ventilation methods for most of human history, until the introduction of air conditioning in the early 20th century. Today’s versions use sophisticated, tech-enabled design and engineering techniques to harness thermal buoyancy (the tendency of hot air to rise) and wind effects to ventilate indoor spaces efficiently.

Perhaps the most compelling argument for natural ventilation? It’s free to run, and at a time when temperatures are rising along with the costs of keeping cool with air conditioning. What’s more, the upfront investments in designing and building natural ventilation systems are often less than those for complex HVAC systems.

Harnessing nature to build resilience

Integrating natural ventilation into projects not only saves money now, but also helps protect buildings and businesses against future challenges, such as climate change and rising energy costs.

In GHD’s recent work on the Ontario Line subway station project in Toronto, for example, we modelled the building’s thermal comfort not only on current weather conditions but also on several global warming scenarios. This ensures the station will remain within temperature thresholds even under extreme heat, removing the need for costly retrofits in the future.

As part of the design, several hundred square metres of automated louvers (angled slats), positioned in various locations, are programmed to open when the indoor temperature reaches a certain level. This allows hot air to escape through the top of the building. Permanent openings, such as escalator shafts, also help by drawing in cooler air indoors and allowing warmer air to exit through the louvers.

In hot climates, louvers are typically designed to be resistant to heat and sand, and are often equipped with seals to prevent dust and debris from entering the building. Another key benefit of louvers is their seasonal flexibility: They can be closed in winter to retain heat within the building and opened in summer to enhance ventilation. Louvers can also provide acoustic insulation, which can be tailored to meet specific noise control requirements.

Another building envelope cooling strategy is glazing, which was also deployed in the Ontario Line project. Glazing, a protective layer applied to a surface, plays a key role in limiting direct sunlight and, therefore, heat from entering a building. High-performance double or triple glazing with low-emissivity (Low-E) coatings and a low solar heat gain coefficient (SHGC) is commonly used to reduce solar radiation while maintaining sufficient daytime lighting.

Glazing systems are often complemented by solarreflective coatings and architectural elements, such as sunshades or brise-soleils, which help deflect solar rays and further reduce thermal loads. Sun breakers support thermal comfort by intercepting sunlight before it reaches building façades, while still allowing for natural airflow. Common materials include aluminium, perforated metal or treated wood, and are selected based on performance and aesthetics.

The most effective natural ventilation projects are designed to leverage local climate and weather conditions. The 18-story San Francisco Federal Building, which opened in 2007, is a prime example. Instead of louvers, remote-controlled windows in optimal locations create cross ventilation by leveraging wind exposure. The building’s management system monitors temperature, wind speeds and carbon dioxide levels, and automatically opens windows during favourable conditions.

Future-proofing against strained grids, regulations

Regulatory codes for building sustainability are becoming increasingly stringent. Natural ventilation methods can help buildings perform well in energy consumption and carbon emissions assessments. For example, natural ventilation scores highly on the Building Research Establishment Environmental Assessment Method (BREEAM).

When it comes to extreme weather, such as heatwaves or earthquakes, natural ventilation systems tend to perform more reliably than

mechanical alternatives in testing scenarios. The cooling approach also relieves pressure on electricity grids, especially in highly populated urban areas and during extreme weather conditions. During this summer’s heatwave in Europe, for example, daily power demand increased by up to 14 percent¹ as air conditioning use surged. Natural ventilation also reduces peak energy loads and provides organizations with a non-mechanical backup system.

Dependence on climate demands careful solutions

Natural ventilation involves a complex interplay between design, engineering and the natural environment, which raises several considerations and potential limitations.

First of all, the method is dependent on the outside climate. In very hot and humid climates natural ventilation may not be suitable because the air being drawn in could be too warm to provide adequate cooling for a building. In this case, natural ventilation could still be used in tandem with a mechanical cooling mechanism.

Another possible risk: Natural ventilation could introduce pollutants or particulate matter into the building – a consideration in urban areas where heavy traffic or industrial zones can increase the presence of contaminants. For projects located near potentially polluting sites,

careful assessments are required to determine which parts of the building’s natural ventilation equipment would be unsuitable due to excessive local pollution.

Noise and security are other considerations. Operable windows can amplify street noise, as well as produce whistling or humming sounds during high winds. Open windows on lower floors can create entry points for intruders.

These factors make natural ventilation an effective choice when applied as part of a hybrid climate resilience system and supported by detailed engineering modelling and environmental assessments. For example, Computational Fluid Dynamics (CFD) simulations can be used to study air quality and thermal performance of a building.

Natural ventilation at the heart of climate resilience

As companies and cities make strides towards their goals for net-zero carbon emissions, natural ventilation can be a valuable tool in supporting climate resilience objectives as well as the safety and comfort of employees. It also aligns well with urban planning for green spaces and principles of healthy living.

Going forward, technology such as AI and digital twins (virtual replicas of physical objects or systems) can provide more detailed and accurate simulations of how systems will perform in various weather and climate scenarios. This will enable organisations to create more effective, environmentally appropriate solutions that are critical to the effectiveness of natural ventilation systems.

Seizing the opportunity of England’s new biodiversity rules

Matthew Ling, Nature-based Solution Lead, GHD

Seeding wildflower meadows. Thinning non-native trees. Supporting pollinators. Creating ponds and wetlands. What if landowners could turn relatively simple, wildlife-friendly enhancements to their property into sources of income?

In February last year, England introduced world-first planning rules under its Environment Act requiring developers to ensure that new projects improve the local environment by achieving a “biodiversity net gain” (BNG) of at least 10 percent¹. That’s calculated using a government metric to assess the relative value of different types of habitats before and after a development is built, based on assumptions about what kinds of plant, animal, insect and other lifeforms a given habitat can support.

If a developer cannot achieve the requisite uplift within their site boundaries or on other land they own, they can make up the difference by purchasing off-site biodiversity units from thirdparty providers. Any landowner can generate these units and become a provider by making biodiversity enhancements on land they own, committing to manage these improvements for at least 30 years and logging the resulting units in an official registry.

Landowners of all types have begun exploring the opportunities presented by BNG, investing in enhancing the quality of their land for biodiversity. Among the landowners, a significant group is England’s 317 local authorities, which own 5,261 km² of land, or 4 percent of the country’s total area, and have shown interest in

capitalising on this new market.

There is also significant global interest in how England’s BNG scheme has been developed and implemented, and how its adoption is progressing, as countries consider the potential for creating similar markets.

The World Economic Forum has estimated² that global demand for biodiversity credits could reach $2 billion in 2030 and $69 billion in 2050, assuming a supportive policy environment. If less effective measures are taken, global demand could still reach $760 million by 2030 and increase to as much as $6 billion by 2050. Contributions through such mechanisms could go some way to realising Target 19 of the Global Biodiversity Framework, which seeks to mobilise $200 billion annually³ for biodiversity from all sources, including public, private, and international finance.

Pioneering biodiversity market schemes can play a crucial role globally in complementing existing mechanisms, such as carbon markets. They can provide a valuable incentive for landowners to protect and restore natural ecosystems while offering businesses and other organisations more options to meet net-zero, nature-positive, and other environmental goals.

References

1. Czyzak, Pawel. July 4, 2025. “Heat and Power: Impacts of the 2025 Heatwave in Europe.” Ember. https://ember-energy.org/latest-insights/heat-and-power-impacts-of-the-2025-heatwave-in-europe/

Greening the grey

In England, Plymouth City Council became the first local authority to establish a Habitat Bank under its Ocean City Nature⁴ scheme, designed to help local developers meet their obligations under the new rules. Improvements to three initial sites totalling 109 hectares at Cann Woods, Ham Woods and Chelson Meadow are expected to generate biodiversity units worth £7.4 million over 30 years. This would result in a net benefit to the council of £187,000 per year over 30 years, after accounting for habitat management costs.

Other local authorities have followed suit, registering approximately 680 hectares⁵ of habitat creation or enhancement in the year following the rules’ implementation. With more investors, landowners and organisations getting involved, the market for biodiversity units could grow to between £135 million and £274 million per year, according to projections in a report commissioned by the Department for Environment, Food and Rural Affairs.

Progress in England’s pioneering market for biodiversity units will, to some extent, be influenced by how rapidly landowners can access the expertise needed to identify the scale of the opportunity and the potential market that could be unlocked through the BNG process.

The first step towards creating a habitat bank and selling biodiversity units involves identifying the existing state of

Visualizable data points

10% 4%

minimum mandatory uplift in biodiversity post project development for 30 years; Sutton case shows 171% gain, anything over 10% offsets developers future projects of England’s total area (5,261 km2) –and growing-is currently applying BNG

current habitats, then conducting a baseline ecological survey and condition assessment of any potential land that could be registered as a gain site. Owners can then start scoping viable enhancement options and then run the baseline data and improvement plan through the statutory metric to ascertain how many units the site could generate.

Just a few examples of the many possible approaches include thinning non-native tree species or clearing invasive or dominant single-species areas to allow a greater diversity of plants to establish themselves. New habitats can be created, such as by sowing wildflower meadows, digging new ponds, or planting trees to establish new woodlands. Blue-green infrastructure⁷ approaches can be used as alternatives to traditional engineering options in urban areas to “green the grey” and support pollinating insects, for example.

Sometimes the potential gains can go far beyond the 10 percent required in the Environment Act. In the London Borough of Sutton, a case study⁸ from the consultancy Aspect Ecology suggests that plans to plant more than 300 trees and develop green roofs, shrubs, gardens and other green spaces at a development of 970 new homes and adjacent commercial property will generate a biodiversity net gain of 171 percent. All net gains above the minimum 10% requirement represent units that could be used to offset the developer’s other projects or sold to other developers requiring off-site gains.

Compliance and climate challenges

Once a landowner has decided to proceed with managing their land as a habitat bank, they must legally secure the land and commit to managing the enhancements for a minimum of 30 years. They must then develop a habitat monitoring and management plan for approval by the Local Planning Authority, and register the land parcels as Habitat Banks on the Natural England National Biodiversity Gain Sites Register. Assuming the application is approved, the units will be added, and the landowner can then seek out developers who need them to meet their 10 percent biodiversity net gain obligations.

Recent examples of local authorities taking advantage of the system include Hartlepool Borough Council in northeast England. The council has collaborated⁹ with the Environment Bank, a leading developer of biodiversity units, and local tenant farmers to produce a supply of 100 off-site biodiversity units. These units will help developers meet the projected demand for 1,000 new homes in the area each year.

One of the biggest challenges for local planning authorities may lie in implementing the monitoring and enforcement processes needed to ensure that enhancement pledges are honoured. Critics point out that there is, as yet, no clearly defined process for compliance monitoring, raising the risk10 that commitments to manage habitats in specific ways over 30-year periods could fall by the wayside. That would render any projected biodiversity enhancements, and payments made for them, meaningless.

References

1. Department for Environment, Food & Rural Affairs, UK. 2025. “Understanding biodiversity net gain.” GOV.UK. https://www.gov.uk/guidance/understanding-biodiversity-net-gain

2. World Economic Forum in collaboration with McKinsey & Company. 2023. “Biodiversity Credits: Demand Analysis And Market Outlook Insight Report.” World Economic Forum

https://www3.weforum.org/docs/WEF_2023_Biodiversity_Credits_Demand_ Analysis_and_Market_Outlook.pdf

3. Convention on Biological Diversity. n.d. “Target 19: Mobilise $200 Billion per Year for Biodiversity From all Sources, Including $30 Billion Through International Finance.” Convention on Biological Diversity. Secretariat of the Convention on Biological Diversity. https://www.cbd.int/gbf/targets/19

4. Ocean City Nature. n.d. “Bringing benefits for people and wildlife in Plymouth.” https://www.oceancitynature.co.uk/

5. Ben Stansfield. 2025. “Biodiversity Net Gain - how might new proposals evolve the current regime?” Gowling WLG. https://gowlingwlg.com/en-ca/insights-resources/articles/2025/biodiversitynet-gain---how-might-new-proposals-evolve-the-current-regime?.com

6. Department for Environment, Food & Rural Affairs and Economics for the Environment Consultancy Ltd (eftec). 2021. “Biodiversity Net Gain: Market analysis study.” London, UK. https://randd.defra.gov.uk/ProjectDetails?ProjectId=20608

7. GreenBlue Urban. January 9, 2023. “Why Green and Blue?” https://greenblue.com/ce/about-us/why-green-and-blue/

8. Poulton, Jon. February 28, 2024. “February 2024: Case Study - Delivering Significant (>150%) Biodiversity Net Gain in Greater London.” Aspect Ecology. https://aspect-ecology.com/january-2024-biodiversity-net-gain-tobecome-mandatory-from-12-february-2024-copy

Plymouth: 109 hectares

£7.4M

value over 30 years. Benefit to council of £187,000 per year over 30 years

$2B

Global biodiversity market projections (WEF): $2B (2030), $69B (2050)

This governance gap could make the system “unenforceable”, a study11 published in 2021 warned. The authors also found widespread disagreement among surveyors over habitat classifications, leaving significant scope for bias or error. Fifteen months after BNG became mandatory, it would be interesting to collate experience from ecologists conducting baselining to see if this is reflected in the reality of implementing the process.

Perhaps some of this may surface through the recently closed consultation process12

Momentum for change

While such concerns will linger, the BNG process reflects broader ambition and momentum towards more sustainable development and protection, restoration, and enhancement of the environment. By 2030, the UK Green Building Council, a group comprising developers and more than 20 local authorities, aims to have all new buildings and infrastructure designed to be climate-resilient and to maximise environmental net gains throughout their lifetimes, including through the prioritisation of nature-based solutions.

The scope for landowners to realise value under the new regulations – and the potential for environmental benefits – appears likely to grow.

9. Environment Bank. 2025. “BNG Habitat Bank in partnership with Hartlepool Council.” Environment Bank.

https://www.environmentbank.com/case-studies/bng-habitat-bank-inpartnership-with-hartlepool-council/

10. National Audit Office (NAO) UK. 2024. “Risks to the long-term effectiveness of new biodiversity net gain scheme.”

https://www.nao.org.uk/press-releases/risks-to-the-long-term-effectivenessof-new-biodiversity-net-gain-scheme/

11. Zu Ermgassen, Sophus O., Sally Marsh, Kate Ryland, Edward Church, Richard Marsh, and Joseph W. Bull. 2021. “Exploring the Ecological Outcomes of Mandatory Biodiversity Net Gain Using Evidence from Early adopter Jurisdictions in England.” Conservation Letters 14 (6). The Society for Conservation Biology.

https://doi.org/10.1111/conl.12820

12. Department for Environment, Food & Rural Affairs, UK. May 28, 2025. “Improving the implementation of biodiversity net gain for minor, medium and brownfield development.” GOV.UK.

https://www.gov.uk/government/consultations/improving-theimplementation-of-biodiversity-net-gain-for-minor-medium-and-brownfielddevelopment

Rethinking business as usual

The key to sustainable transformation

Hena Rana, Business Group Leader, Strategy and Commercial Advisory, GHD

Planning isn’t what it used to be. In a world of continuous strategic disruptions, traditional business timeframes and priorities are no longer fit for the purpose of achieving sustainable transformation.

Climate risks, supply-chain fragility, post-pandemic recovery needs, net-zero ambitions, the e-commerce revolution, and broader economic uncertainty are just some of the factors that require leaders to rethink business as usual.

For many organisations, short-term thinking is the status quo. Instead of working a few steps ahead of the competition, their leaders are stuck playing catch-up as they focus on the problem of the day. Others treat sustainable transformation as a side project, something that can be bolted on to their business rather than being foundational to their growth. Long-term planning is often based on the standard five- to 10-year horizon.

These mindsets are no longer viable. Leaders need to adopt an integrated, holistic approach tailored to their companies’ unique characteristics. Time horizons are less important than flexibility and achieving alignment on their purpose and values, as well as with stakeholders across teams and departments.

This ensures that strategic wins, no matter how small or quick, are situated within the same culture of resilience and sustainability, helping to identify what skill sets or systems need to remain in place or be changed.

What works for one company won’t automatically work for another. A strategy needs to meet the intentions of an organisation and, critically, be implementable. Strategic planning must consider how goals will translate into actual delivery and actionable steps for employees.

If not, tunnel vision can creep in. Failing to acknowledge and plan for the needs of various stakeholders is a recipe for potential roadblocks.

Let’s look at this through the lens of the very different approaches of two fictional companies. Call them TechCompany1 and SustainCorp.

A false sense of progress

Facing mounting competitive pressure and rising costs, TechCompany1 is eager to overhaul its operations. It invests heavily in upgrading data centres, optimising systems and streamlining processes. The immediate gains are evident: faster data processing, improved efficiency and cost savings. But under the surface, cracks are showing.

The new tools disrupt employee workflows and erode morale because the company failed to consider how the “upgrades” would impact their jobs. New systems clash with legacy software, creating inefficiencies and data silos. The company leaves its supply chain untouched, allowing partners with poor sustainability practices to undermine its long-term reputation and build up compliance risks.

An aggressive sales campaign boosts profits but further erodes the company’s reputation as customers perceive it to be losing its brand purpose. A narrow focus on improving energy efficiency in its facilities overlooks the bigger picture of addressing the carbon footprint of its entire product lifecycle.

Before long, a brain drain begins as employees feel burned out and exhausted by the rapid, yet incoherent, changes. TechCompany1 didn’t lack ambition. But its drive to transform was fatally undercut by a lack of cohesion.

The power of holistic thinking

Now, consider SustainCorp, TechCompany1’s competitor. They take a different path, with leadership embracing a more integrated, holistic approach to sustainable transformation.

SustainCorp engages its employees, suppliers and customers early in the transformation journey, cocreating solutions with them based on shared values rather than imposing top-down mandates.

It evaluates decisions through the lenses of people and the planet, not just profit. Their infrastructure upgrades consider employee experience, supply chain ethics and environmental impact. SustainCorp’s marketing campaigns don’t fuel an immediate surge in sales, but they do build long-term trust by demonstrating a commitment to sustainability.

For SustainCorp, the transformation is much more than a tech upgrade, a compliance exercise, or a race to boost the next quarter’s numbers. It’s a redesign of its entire system that treats its people, its partners and its processes as interdependent. Every initiative is cohesive, measured against a shared long-term vision of resilience and sustainability.

Enablers of sustainable transformation

A company never truly runs out of things it can do to become sustainable. The key is to manage change within a holistic framework. Leaders should start with a few essential principles:

Define the vision

Identify the goals of the transformation. Consider the potential barriers and trade-offs. This will clarify how to prioritise investments and improvements.

Harmonise strategy

Actions must align – not conflict –with the company’s overall goals, and beyond that its purpose. This enables informed decision-making and meaningful innovations.

Nurture people and partnerships

Your people and partners must be involved in every part of the journey. Bring them in early, train them, and listen to them. Transformation requires collaboration.

Beyond the meter How AMI is reshaping water utilities from the inside out

Freddy Guerra, GHD Digital Water Solutions Leader

Every year, global utilities lose up to 30 percent of treated water through leaks¹, theft and outdated meters – wasting an estimated US$39 billion in non-revenue water annually².

At the same time, many utility networks are ageing, while operational expectations, cost pressures and compliance demands continue to mount.

For water utilities, the question is no longer whether to invest in smarter systems. It’s how to do it in a way that delivers maximum value, especially at a time of constrained capital and increased public scrutiny. One proven pathway is advanced metering infrastructure (AMI).

AMI transforms water utilities from reactive responders to proactive system optimisers by replacing intermittent data snapshots with real-time, system-wide visibility. This shift enables:

Offer short-term boosts

While it’s not wise to rely on short-term gains, those wins can raise morale. Offer employees opportunities to showcase their skills and talents while solving relevant problems. Innovation labs and other funded workstreams enable companies to explore potential employee interests without committing fully to a new direction.

Check your compass

Monitor and evaluate your progress against goals and adapt when needed. Feedback can inform the next set of strategies to ensure that you’re heading in the right direction and keeping the goals in sight.

Consider new tools

Not every new technology or system is worth the upheaval and stress it can cause for employees. But as external disruptions emerge, organisations should continually consider efficiencies to stay nimble and lean.

It’s more crucial than ever to plan for change. Building resilience and sustainability into your business strategy is no longer a nice-to-have, a compliance box to be checked, or an add-on – it’s a necessity to avoid being outflanked by more adaptive competitors. The new business as usual needs to be based on holistic, integrated thinking that helps companies lead through the many disruptions and opportunities to come.

Early leak detection

Identifying issues before they escalate

Accurate billing

Reducing disputes and improving customer trust

Predictive maintenance

Preventing failures and extending asset life

The result: better visibility, better decisions, and better outcomes.

Informed asset planning Prioritising investment based on live performance data

Unlocking efficiency and staff productivity

Traditionally, water utilities have relied on manual meter reads and scheduled maintenance, which ties up labour in routine, repetitive tasks. AMI changes the equation by delivering continuous flow and pressure data to a central platform, allowing operators to target issues precisely, rather than sending crews on pre-set rounds.

This allows utilities to redirect staff to higher-value tasks, such as identifying areas of system stress, optimising pump operation or improving water quality management. It also reduces field time and improves safety by limiting unnecessary site visits.

In cities where AMI has been deployed, utilities have reported faster billing cycles, improved troubleshooting and greater confidence in contract management. Realtime data helps prioritise fieldwork based on actual system performance - reducing downtime and focusing investment where it’s needed most.

In Patterson, California³, this transformation is already underway. By integrating AMI-generated data into the city’s billing platform, utility staff have improved the accuracy of customer accounts, sped up troubleshooting and made more informed decisions around contractor performance. GHD supported Patterson throughout the rollout and continues to play a role in validating the City’s annual water audits and managing a digital twin of the network to inform capital planning. The result is a smarter, more resilient utility - one with lower losses, better service delivery and a stronger foundation for growth.

Stemming losses and boosting revenue

One of AMI’s most immediate benefits is reducing nonrevenue water. Many leaks go undetected for weeks or months, especially in hard-to-reach locations. AMIenabled systems can detect sudden pressure drops, continuous flow during off-hours and abnormal usage patterns - pinpointing leaks and theft in near real-time.

Mobile dashboards and centralised platforms mean field crews can respond immediately to issues. Instead of dispatching staff on fixed schedules, utilities can direct resources based on live conditions, reducing downtime, improving service and making every hour in the field count.

This not only helps prevent water loss but also enhances financial performance. By reducing unbilled usage and recovering lost revenue, utilities strengthen their financial sustainability and free up capital for system upgrades or resilience initiatives.

Fairer billing and demand management

Inaccurate meters and estimated billing create inequities and erode trust. AMI enables high-resolution, timestamped consumption data that supports more accurate bills, faster resolution of customer disputes and the detection of anomalies such as zero usage or continuous flow.

With better data, utilities can also explore pricing structures that promote conservation, such as timeof-use or tiered rates. While these models require thoughtful implementation, they offer a way to encourage responsible use while managing peak demand and extending infrastructure lifespan.

Reducing call volumes, improving customer satisfaction

Billing disputes are a major source of customer service costs. Site visits, manual account adjustments and meter rereads consume time and resources and often for issues that could have been prevented with better data.

With AMI, customers can access real-time information through apps or online portals. Usage alerts and highbill warnings - delivered by SMS, email or app - help households detect leaks early, manage consumption and avoid bill shock. This proactive engagement builds trust and reduces unnecessary service calls.

In multi-unit properties or those with shared meters, AMI also supports more equitable billing. With sub-metering and granular usage data, costs can be distributed more fairly, reducing complaints and increasing transparency.

Smarter maintenance, stronger systems

AMI doesn’t just improve operations - it fundamentally reshapes how assets are managed. When paired with sensors, GIS and digital twins, AMI supports predictive maintenance strategies that reduce failures and extend asset life.

Patterns in pressure or flow can reveal early signs of corrosion, blockages or backflows. Usage data can highlight parts of the network under stress or nearing capacity. By integrating this intelligence into asset planning, utilities can coordinate outages, prioritise renewals and optimise investment.

Making the investment count

While the upfront cost of AMI can be substantial, the return on investment is increasingly compelling. Delaying rollout means missing years of avoidable losses and operational inefficiencies. And as digital technologies continue to advance, the cost of inaction will only grow.

The key is to approach AMI not as a standalone upgrade, but as an enabler of broader transformation. It provides the visibility, control and flexibility needed to modernise operations, reduce costs and build resilience for the future.

Supporting compliance and sustainability

As climate pressures and regulatory expectations grow, AMI is also proving valuable for compliance, reporting and long-term sustainability planning.

Automated data collection for regulatory reporting

Real-time alerts for conservation and drought response

Enhanced demand forecasting and supply planning

Better visibility into system-level energy and emissions performance

For utilities pursuing sustainability goals, AMI offers quantifiable metrics that support transparent reporting and demonstrate environmental stewardship.

Resilient by design

Water utilities today face a convergence of pressures including ageing assets, limited budgets, rising expectations and a rapidly changing climate. AMI offers a way to respond strategically, not reactively. By embedding intelligence across the network, it allows utilities to shift from firefighting to foresight.

Ultimately, the value of AMI goes far beyond billing accuracy or operational savings. It lies in enabling smarter systems, more informed planning and stronger relationships with the communities they serve.

The next step is clear: treat AMI as a strategic asset, not just a digital tool.

Smart Metering (AMI)

30% treated water loss globally.

US$39B in nonrevenue water

Start by asking:

– Where are the most costly data blind spots in our network?

– What decisions could we make differently with real-time visibility?

– How might smarter metering unlock value for customers, regulators and the bottom line?

Those who act early will gain the greatest advantage through lower losses, better service and a stronger foundation for the future of water.

AMI impacts: leak detection, billing accuracy, predictive maintenance, informed asset planning

Case study – Patterson, California

Integrated AMI data into billing platform. improved billing accuracy and faster troubleshooting

References:

Cutting through the noise Why AI is a powerful ally for city leaders

Emily Gallant, Technical Director,

Engagement, Innovation and Partnerships, GHD

Carla Pignatelli, Service Line Leader, Engagement and Communications, GHD

It’s not easy running a city today. Municipal leaders have limited budgets to meet rising demands for better transport, safer streets and a host of other issues that affect urban living.

It’s a theme that echoes around the world. Toronto¹ is adjusting to its status as the fastest-growing city in North America, while Londoners² cite concerns about crime and the rising cost of living. In New York City³, almost half of the residents say they may leave within five years, citing concerns over affordability, safety and living space. In Sydney, housing affordability remains a key challenge, yet citizens increasingly favor low-density living.

If you’re a city leader, you may be wondering how to transform all of this “noise” into precise data and long-term solutions. Fortunately, the emergence of generative AI is making these questions much easier to answer.

A carefully orchestrated AI system can process a vast amount of information in real-time. It can also be applied to a city’s historical data and sift through years of community engagement to unearth new perspectives and identify hidden trends. Expertly applied to both the present and the past, AI can give city leaders an unprecedented ability to understand problems and create effective solutions.

Benefits/results: better visibility, better decisions, and better outcomes

Real-time usage data informed contractor performance evaluations

Annual water audits and digital twin of the network for capital planning

1. Water New Zealand ‘Using AMI technology to reduce non-revenue water, improve resiliency and enhance customer satisfaction’ Annual Conference 2024. https://www.waternz.org.nz/Article?Action=View&Article_id=1591

2. ResearchGate ‘Quantifying the global non-revenue water problem’, 2018.

https://www.researchgate.net/publication/326238463_Quantifying_the_global_non-revenue_water_problem

3. GHD ‘Managing water meter upgrades for City of Patterson: From installation to integration’ 2024. https://www.ghd.com/en-au/projects/managing-water-meter-upgrades-for-city-of-patterson-from-installation-to-integration

Perceiving the present

Toronto is growing quickly. Its population surged⁴ by 500,000 residents in just the last two years. With 40 percent of the population (7 million) speaking⁵ languages other than English or French, Toronto is one of the most culturally diverse cities in the world.

Rapid growth, along with swiftly changing cultures and perspectives, is adding more complexity to the issues facing Toronto and many other large cities today. This is where AI is becoming so important. Toronto used AI to sift through 25,000 comments from residents in just days, helping city officials accelerate and deepen their understanding of the community they serve.

In the UK, a local council recently asked residents for feedback⁶ on plans to build over 20,000 new homes. To process all of the submitted comments, a council leader would have needed to read the equivalent of Leo Tolstoy’s War and Peace — twice. So the council turned to AI to read and process the feedback, saving them weeks of work.

Earlier this year in Bowling Green, Kentucky, officials wanted more community engagement⁷ than they typically see at conventional forums, such as town halls.

8 ways AI is already changing cities

UK council

Toronto

+500,000 residents in 2 years; highly multicultural, 40% speak languages other than English/French

So they leveraged AI to spark more conversations online, resulting in an almost 80-fold increase in community input.

In Singapore⁸, the government is utilising an AI-powered chatbot on WhatsApp and Telegram to assist residents in reporting complaints about litter and damaged facilities within their communities. Handling approximately 30,000 files a month, it automatically extracts key details and then sends them to the relevant government department, saving up to two working days per case.

This is just the beginning, as the scope and scale of AI solutions continue to expand. For example, some researchers came up with an idea to analyse social media for emotional posts⁹ in different neighbourhoods, effectively mapping the mood of a city and highlighting areas that may need more attention from city planners. Others are leveraging AI to track the loss of greenery10. More and more, AI is becoming a finger on the pulse of a living and breathing city, helping us learn what residents want and need in real-time.

It’s also uncovering lessons from the past that can be applied now.

20,000 homes. AI read “War and Peace” equivalent twice

Singapore

30,000+ complaints handled per month via AI chatbot, 2 days saved per case

Bowling Green

80× more community engagement

Mood mapping

AI scans social posts to chart emotional geography

Urban canopy loss tracking

AI monitors greenery reduction

Information repository

Structure data, reveal trends, support research

Predict user behavior for infrastructure/systems planning. 20% route adjustment in delivery routes

Unlocking the past

Toronto11 has the minutes of council meetings stretching back to the 1800s, while New York has a photo of every city building12 from the 1930s (there are about 700,000). There’s a wealth of information tucked away in these city archives. However, there’s a problem too: It can take forever for people to comb through old files, and much of it remains un-digitised.

AI can extract information from this ocean of unstructured data to reveal trends and support (or dispute) research being conducted today. Whether you want to find out how many people were cycling to work 10 years ago, or predict how many may be cycling to work 10 years from now, it’s all becoming possible.

Predicting the future

Cities around the world are littered with examples of projects that launched with high hopes but later sank due to bad planning and misjudged community support.

Generative AI’s ability to scan massive amounts of data and identify patterns provides cities with a powerful new tool to design and implement plans more intelligently.

Using everything from old maps to new surveys, as well as social media posts, traffic data and more, AI can harness and analyse information at scale. Understanding what makes a city tick today enables leaders to know how to build a better city tomorrow.

Consider your weekly garbage pickup — it hasn’t changed much over the years. However, with each truck making about 1,000 stops a day on average, even a small improvement in planning13 could add up to significant savings. By using AI to identify who plans to opt out of service or go on holiday, approximately 20 percent of a truck’s route could be adjusted, saving money for the city and speeding up service for the customers who remain.

From planning14 walkable neighbourhoods to predicting crime15 on the New York subway, AI is increasingly being used to look over the horizon to forecast how both problems and solutions may evolve over time.

Data security and privacy

AI’s harnessing of so much data naturally raises privacy concerns. What information is available and what isn’t? How do we use sensitive data while ensuring it is secure?

Imagine you receive a postcard16 in the mail that details the contents of your garbage and tells you how to sort it differently. Would you find this helpful or intrusive? Now, consider areas like healthcare or finance. Privacy becomes much more critical, potentially affecting your insurance coverage or job prospects.

Fortunately, concerns about data security and privacy are being taken seriously. Whether it’s government oversight, such as the European Union’s EU AI Act17, or measures from AI companies themselves (see OpenAI’s Privacy Policy)18, institutions are recognising that progress in AI must go hand-in-hand with the strict protection of personal data and privacy.

Your city is talking –are you listening?

Cities have always been talking to leaders — the problem is that it’s been tough to hear what they were saying above the noise and the sheer volume of signals. With AI, leaders now have a powerful way to tune into their residents with much greater clarity and accuracy than before.

The cities whose leaders can harness AI while retaining citizen trust will be better equipped to understand their communities, predict problems and capitalise on opportunities that may have been previously hidden or unclear. The tools are already here or being developed. The question is, which cities will use them to take the lead?

References

1. Robertson, Becky. November 13, 2024. “Forty per Cent of Toronto Can’t Even Afford Living Here and the Number Is Only Getting Worse.” blogTO.

https://www.blogto.com/city/2024/11/toronto-cant-afford-living-here-gettingworse/

2. Office for National Statistics. February 21, 2025. “Public Opinions and Social Trends, Great Britain: January 2025.” Public Opinions and Social Trends, Great Britain - Office for National Statistics.

https://www.ons.gov.uk/peoplepopulationandcommunity/wellbeing/bulletins/ publicopinionsandsocialtrendsgreatbritain/january2025

3. Citizens Budget Commission (CBC). June 4, 2025. “Straight from New Yorkers 2025: Residents Still Largely Dissatisfied with Quality of Life, Services, and Safety.” BCBNY.org

https://cbcny.org/research/straight-new-yorkers-2025

4. Raaj, Aarjavee. January 18, 2025. “The Toronto Region’s Population Has Topped 7 Million. Here Is What You Need to Know.” CTVNews.

https://www.ctvnews.ca/toronto/article/the-toronto-regions-population-hastopped-7-million-here-is-what-you-need-to-know/

5. Mehrabi, Kimia Afshar. June 13, 2024. “Fascinating Map Shows Which Languages Are Spoken the Most across Toronto.” blogTO. https://www.blogto.com/city/2024/06/fascinating-map-languages-toronto

6. Local Democracy Reporter. July 4, 2025. “East Devon: AI to Read Comments about Proposed New Homes.” East Devon News.

https://eastdevonnews.co.uk/2025/07/04/east-devon-district-council-to-use-aitechnology-to-read-new-homes-feedback/

7. News Staff. April 16, 2025. “Bowling Green, Ky., Used AI to Drive Public Engagement.” GovTech.

https://www.govtech.com/artificial-intelligence/bowling-green-ky-used-ai-todrive-public-engagement

8. GovTech Singapore. “How GovTech Uses AI to Enhance Digital Public Services.” January 12, 2024. Government Technology Agency (GovTech). https://www.tech. gov.sg/technews/how-govtech-uses-ai-to-enhance-digital-public-service

9. University of Missouri-Columbia. July 1, 2025. “AI Maps the Mood of Your City –and It’s Surprisingly Accurate.” SciTechDaily. https://scitechdaily.com/ai-maps-the-mood-of-your-city-and-its-surprisinglyaccurate

10. Lawrence, Robyn Griggs. June 16, 2025. “New AI Tool Helps Cities Respond to Shrinking Urban Canopy.” Smart Cities Dive. https://www.smartcitiesdive.com/news/new-ai-tool-helps-cities-respondshrinking-urban-canopy-IIASA/750788

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Authors bios

Authors bios

Tai Hollingsbee, Asia-Pacific Market Leader, Sustainability

Tai is a design engineer with nearly 25 years’ experience leading global projects. He specialises in building physics, sustainability assessment systems and emerging technology integration. Tai collaborates with leading architects and global brands to deliver award-winning, science-based design solutions, currently focusing on minimising the ecological impact of Artificial Intelligence infrastructure.

Hena Rana, Business Group Leader - Strategy and Commercial Advisory

Hena leads commercial and organisational change initiatives that solve critical strategic, technology and operational challenges for asset-intensive clients. As an asset and digital transformation specialist, her expertise spans AI implementation, behavioural science applications and enterprise risk management, delivering innovative solutions across transport infrastructure, defence, utilities and industrial sectors globally.

Ali Rezghi, Junior Energy/ CFD Modeling Specialist

Ali is an Energy and CFD Modelling Specialist with over two years of experience across Ontario, Canada. He specialises in building energy simulation, thermal comfort analysis, CFD, and greenhouse gas reduction. At GHD, he applies advanced modelling tools and data analysis techniques to deliver energy-efficient, climate-resilient, and net-zero design solutions.

Thomas Evans, Origination Leader Commercial Advisory

Thomas brings 15 years of global expertise in energy transition strategy, leading management consulting teams across London, Sydney, the UAE and Madrid. As GHD’s origination, commercial and deal advisory team leader in London, he specialises in supporting financial institutions through complex energy transactions whilst delivering strategic market entry guidance for energy developers.

Freddie Guerra, Digital Water Market Lead

Freddie is a strategist specialising in public sector innovation. With over 30 years’ experience across global markets, he helps governments and utilities harness technology to solve complex challenges. His expertise lies in connecting human and data insights with digital platforms to deliver transformative outcomes that improve lives and strengthen mission delivery.

Matthew Ling , Nature based Solutions Lead Commercial Advisory

Matthew is an environmental professional with nearly 20 years of experience combining academic, consultancy, local government and third sector expertise in environment, ecology, conservation and climate sectors. He specialises in leading high-profile, multi-stakeholder, multi-national projects and partnerships, working directly with policy makers and business leaders to drive environmental change.

Emily Gallant, Technical Director - Engagement, Innovation and Partnerships

Emily is an IAP2-trained facilitator and engagement practitioner and systemic team coach with over 15 years of experience designing meaningful participation processes across energy, water, environment, transportation, education, healthcare and municipal sectors. As a pioneer in AI-enhanced stakeholder engagement, she has developed innovative solutions now being delivered globally for clients worldwide.

Charlotte Grey, Consultant UK Energy Solutions

Charlotte is a chemical engineer specialising in lowcarbon energy solutions. With international project experience and a focus on future energy, she supports the transition to Net Zero through hydrogen, its derivatives and other low carbon fuels and renewables. Based in London, she works as a Consultant at GHD, delivering strategy, engineering studies and technical due diligence across the energy sector.

Anne-Marie Kirkman, Strategic Growth InitiativesGlobal Program Lead

Anne-Marie is a champion for innovation in the infrastructure sector, delivering improved outcomes for communities and the natural environment. Her expertise spans client-focused commercial strategy, transformational change and environmental engineering, with over 25 years of international experience across four continents.

Carla is a stakeholder engagement consultant specialising in technical and community communications. With over 11 years’ experience across major infrastructure projects, she designs tailored engagement programmes that make complex information accessible. Carla ensures communities and stakeholders can meaningfully engage with projects, delivering high-quality consultation that goes beyond compliance and supports planning and approvals processes.

Jane Netherstone, Climate Action

Muwaffaq AlKhedery, Senior Advisor, Sustainability, Resilience and ESG

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MP – hold off until clarification from MF on partner bio

Carla Pignatelli , Service Line Leader - Engagement and Communication Innovation, Transformation