Call for Corporate Contributions for Sustainable Urban Environments

Urban areas will house over half of the world’s population by 2050, underscoring the importance of enhancing the safety and livability of urban environments. The role of the private sector is fundamental, yet research found that companies seem to make only minimal contributions to realizing this vision.

Issues with Urban Environments

From air pollution to the housing crisis, urban areas have experienced and will continue to face unique challenges amidst economic turmoil and the climate crisis. While city governments hold the biggest responsibilities in creating safe and livable urban environments, private companies must also contribute their fair share of efforts through sustainable and responsible business activities.

However, despite the rising awareness of corporate accountability, research by the World Benchmarking Alliance found that the world’s most influential companies make very minimal contributions to urban sustainability. The research examines 300 private companies that provide essential services in urban areas, including housing and transport.

Lack of Actions

Overall, the research reveals that companies still lack the contribution and support to tackle multiple issues occurring in urban environments.

For instance, only fewer than 10 out of 300 companies have consistently tried to reduce key air pollutants, such as nitrogen, sulfur, and particulate matter (PM). This trend occurs despite the fact that air pollution is among the top issues faced by city dwellers, posing significant public health risks that go as far as causing millions of premature deaths.

Similarly, only a few percent of companies have demonstrated disaster preparedness strategies. Despite their high vulnerability, a staggering 63% of urban companies operating in low- and middle-income countries lacked evidence of natural disaster risk assessment.

In the socio-economic aspect, the research finds that 75% of urban companies do not include affordability in their sustainability agenda. Meanwhile, billions of people grapple with the cost-of-living crisis globally. Furthermore, many companies also have not been meaningfully engaging with their stakeholders, exacerbating systemic inequalities and power imbalances among citizens.

Raising Corporate Accountability

Eventually, making progress to achieve safe and better living conditions in urban environments for all requires strong collaboration between governments, businesses, and civil society. Businesses, in particular, must create meaningful shifts and include social and environmental factors in their business operations. Minimizing carbon emissions, integrating disaster risk management and strategies, and meaningfully engaging with citizens are crucial courses of action to create sustainable urban environments for all.

“To safeguard net-zero goals, local authorities should integrate decarbonization into public procurement, licensing, and building permits. This would push companies to boost transparency and reduce their carbon footprint in line with climate targets. Governments, regulators, and investors should enforce stricter reporting and sustainability standards to ensure corporate accountability,” said Tony Widjarnarso, World Benchmarking Alliance’s Urban Transformation Lead.

Kresentia Madina

Reporter at Green Network Asia | Website | + posts

Madina is the Assistant Manager of Stakeholder Engagement at Green Network Asia. She holds a bachelor’s degree in English Studies from Universitas Indonesia. As part of the GNA In-House Team, she supports the organization's multi-stakeholder engagement across international organizations, governments, businesses, civil society, and grassroots communities through digital publications, events, capacity building, and research.