Five Questions City Builders Need to Ask About ESG and Their Businesses
Environmental, social, and governance (ESG) principles have become non-negotiable for city builders, from governments and developers, to investors and non-profits.
1.
Are we building resilience to climate change in our city infrastructure?
Canada’s commitment to the United Nations Sustainable Development Goals (SDGs) underscores the importance of integrating ESG principles into city-building initiatives. According to recent data from the Canadian government, while progress has been made in certain areas (e.g., clean energy production, sustainable consumption), challenges remain in achieving goals related to energy efficiency, climate action, and sustainable communities. By prioritizing ESG in urban development strategies, we can accelerate progress towards these goals, contributing to a more sustainable and equitable future for all residents.
Key takeaway for your business:
Prioritize incorporating climate change resilience into your infrastructure to mitigate risks and ensure long-term viability. Find partners who not only share that commitment but also possess that expertise.
2.
Are we attracting investment and talent through our commitment to ESG?
ESG performance is increasingly influencing investment decisions and corporate strategies. According to a survey by RBC Global Asset Management, 72% of institutional investors consider ESG factors when making investment decisions, up from 53% in less than a decade ago. Similarly, a study by Canada Post found that the vast majority of Millennials and Gen Zers believe business success should be measured by more than just financial performance, with environmental and social impact being important considerations. By demonstrating a commitment to ESG, we can attract investment capital and top talent, driving economic growth and competitiveness in the global marketplace.
Key takeaway for your business:
Recognize that commitment to ESG principles not only attracts investment but also top talent to your organization, enhancing economic growth and competitiveness.
3.
Are we creating long-term value for our city and its residents through ESG initiatives?
ESG initiatives are not just about meeting short-term targets but also creating lasting value for Canadian cities and their residents. According to research by McKinsey & Company, companies with strong ESG performance tend to outperform their peers financially over the long term, with lower volatility and higher profitability. Similarly, a study by Harvard Business Review found that companies with a strong focus on sustainability are more resilient to external shocks and better able to adapt to changing market conditions. By integrating ESG considerations into city-building efforts, we can create more resilient, prosperous, and sustainable communities that thrive in the face of future challenges.
Key takeaway for your business:
View these measures as investments in the future, as they contribute to creating resilient and prosperous communities over the long term.
4.
Are we building resilience to climate change in our city infrastructure?
The impacts of climate change are already being felt across Canada, from increased frequency of extreme weather to threats to infrastructure and public health. According to a report by Natural Resources Canada, the economic costs of climate-related disasters in Canada are projected to increase significantly in the coming decades if proactive measures are not taken. By investing in green infrastructure and technologies, promoting energy efficiency, and implementing climate adaptation strategies, we can enhance resilience to climate change and minimize the associated risks and costs.
Key takeaway for your business:
Invest in green infrastructure and energy-efficient solutions like submetering and EV chargers to enhance resilience and minimize costs.
5.
Are we promoting social equity and inclusivity in our city-building efforts?
In recent years, there has been growing recognition of the importance of social equity and inclusivity in urban development. According to the Canadian Rental Housing Index, affordable housing remains a significant challenge in many Canadian cities, with a growing number of households spending more than one third of their income on rent. Additionally, marginalized communities continue to face barriers to accessing affordable housing and essential services. By prioritizing affordable housing, promoting social inclusion, and engaging with diverse communities, we can create more equitable and inclusive environments for all residents.
Key takeaway for your business:
Prioritize affordable housing and inclusivity initiatives to foster equitable and inclusive environments for all residents in multi-residential buildings. Work with likeminded partners also committed to the communities they serve.
ESG considerations are essential for the future success and resilience of Canadian cities. By these measures, our industry can take the lead in creating more livable, inclusive, and prosperous communities for all residents.
Not sure how ESG impacts your business? Let us help. Book a general consultation with a Wyse expert.