How to achieve the ‘S’ in ESG

Author: Eric Sandelands, Director at Ingenium Training and Consulting

Eric Sandelands, Director at Ingenium Training and Consulting, explores how well curated urban and rural development can generate significant social value, enhancing community well-being and resilience.

Urban and rural development programmes have the power to create wealthier, happier, safer, and better communities and have a significant positive impact on people’s lives. In this blog, I’ve sought to share lessons from my work in the field on how this can be achieved.

ESG (environment, social and governance) is a set of standards used to identify and measure an organisation's impact. It is a set of standards used increasingly by investors, public and private sector organisations seeking to have a positive impact on the world around them. 
However, the ‘S’ in ESG can at times feel like a Cinderella area. Being involved in realising social value from development programmes can feel like the world’s most satisfying job. Yet, the cognitive dissonance you experience can be completely disorientating when holding the two simultaneous thoughts that social value is both central to the benefits to be realised by urban development programmes, and that it is non-core in times of budgetary pressures. This dissonance will have been experienced by professionals around the world working on large projects and programmes, and yet I believe there are signs of better days ahead, and better days today.

Delivering social impact

A central question is how can urban and rural developments enrich communities? It is a question that, in my experience, needs focus, a clear set of priorities, and the prioritisation of projects and allocation of resources.

Those familiar with the United Nations Global Goals for Sustainable Development will be aware that Goal 8 promotes Decent Work and Economic Growth, and this is a key driver in social impact from urban development together with Goal 11, Sustainable Cities and Communities.
Challenges, including financial pressures, will always be with us. But perhaps smarter decisions are made in times of constraint. Here are my suggestions as to areas of focus for social impact.

Community engagement and empowerment

Inclusivity: Involve residents, businesses, and community organisations in decision-making processes. Their insights and needs are invaluable. Stakeholder engagement is a listening as well as a presenting process. Be aware of your cognitive biases in truly considering community voices.
Capacity building: Invest in programmes that enhance community skills, knowledge, and leadership. Empowered communities can actively contribute to their development. Empowerment is a word used so frequently that we forget its power. It’s worth going back to the early texts on this subject and feeling the energy and optimism of that time.

Public spaces and amenities

Green Spaces: Create and maintain parks, gardens, and green areas. These spaces foster social interaction, physical activity, and mental well-being. Look to the community to understand what they need and where they need it. Think beyond aesthetics, or to say it less politely, look beyond appearances.
Community Centres: Establish centres that offer recreational activities, workshops, and cultural events. They serve as hubs for connection and learning. Don’t just build them, infuse them with your organisational knowledge and energy, while being sufficiently self-aware to not dominate and let members of the community shine. 

Affordable housing and mixed-use developments

Affordability: Prioritise housing affordability to prevent displacement of existing residents. Mixed-income developments can promote diversity. Essentially, though, we need local people to be able to live in good homes in their home cities, towns, and villages, and to thrive. We need young people to see a pathway to a prosperous and happy family life, and not leave in search of it.

Local businesses: Encourage small businesses and local entrepreneurs. Vibrant commercial areas contribute to community identity. And don’t underestimate the existing small business ecosystem. Help them connect and gain traction with the new opportunities for prosperity.

“Involve residents, businesses, and community organisations in decision-making processes. Their insights and needs are invaluable.”

Arts and culture

Public art: Integrate art installations, murals, and sculptures into urban spaces. Art fosters creativity, pride, and a sense of place. Celebrate the past, the present and the future. Don’t be blinded by the big names, be enthused by the opportunity for expression.
Cultural events: Organise festivals, performances, and exhibitions. They celebrate diversity and bring people together. Be genuine, I want to say ‘authentic’ but feel it has become a de-valued word. Don’t insult local people by giving the impression you know their culture better than they do. Don’t have educated local people appear as exhibits for tourists to stare at.

Education and lifelong learning

Libraries and learning centres: Invest in accessible educational resources. Lifelong learning opportunities enhance community members’ skills and prospects. The reinvention of libraries is an urgent imperative if their transformative impact on people is not to be lost.

Our true success will lie not with architectural marvels, but in the positive impact on the lives of those who call these cities, counties and communities, home. 

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Reference: United Nations Sustainable Development Goals, UN Sustainable Development Group, (sdgs.un.org).

Footnote: Eric Sandelands’ latest book, Delivering Social Value in Urban Development, a collected series of essays, is published through Kindle Direct Publishing and available on most Amazon portals.