Leveraging ESG for sustainable urban development in Zim

THE United Nations estimates that by 2050, 68% of the global population will live in urban areas.

Urbanisation transforms natural habitats into urban settings, leading to habitat loss and fragmentation, which undermines ecosystems and results in biodiversity loss.

Many species cannot adapt to urban environments, risking local extinction and the establishment of invasive species that threaten native ecosystems. Some of these have become a common feature along the Mukuvisi River in Harare (pictured) and other small cities and towns.

One way to address this challenge is by incorporating ESG (environmental, social and governance) principles into urban planning, ensuring that investments prioritise biodiversity preservation and the mitigation of invasive species threats. Zimbabwe can leverage on its existing legislation, the Public Entities and Corporate Governance Act [10:31].

ESG principles serve as a framework for evaluating the sustainability and societal impact of urban investments. As urbanisation often causes environmental degradation, including pollution and habitat destruction, the environmental aspect of ESG is crucial for mitigating such effects.

The social component emphasises the creation of inclusive urban spaces that prioritise human well-being, addressing issues like affordable housing and access to services. Effective governance is essential for transparency and accountability in decision-making, which is vital for managing urban environments. By incorporating ESG principles, cities can develop sustainable urban solutions that mitigate climate impacts, while promoting equity and resilience against future risks.

According to research by Zurich Insurance (2023), more than 50% of people living in the urban areas are unprepared for climate change impacts.

Given that cities are the focal points of most development, the sustainability of urban development is critical to achieving sustainable development overall.