Group8_C | SDG 11: Sustainable Cities and Communities
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According to the UN, a sustainable city is termed as one that can provide career and business opportunities, safe and affordable housing, and resilient societies and economies. Such cities involve investment in public transport, creation of green public spaces, and improving urban planning and management in participatory and inclusive ways. They take care of the needs of all sections of the society without discrimination. The concept of sustainable cities is interconnected with the environment and economy and safeguards the protection of natural resources, which leads to a minimum acceptable quality of life. Cities are primarily built on Infrastructure, Operations and People. In a Smart City, not only these three are infused with intelligence, but they also work in an integrated way to utilise resources efficiently.
Technology is moving cities towards smart solutions that position businesses at the centre of sustainability solutions to the challenges of developing cities. The most pertinent questions for companies are how to accommodate the new role and find ways to prosper both financially and through long term growth in shaping sustainable cities. Also, responsible citizenship demands an effort from every individual in the society. If that is not forthcoming, the government must come down hard to ensure a clean, healthy environment. An attitude of affection for the environment, controlling pollution, following housing norms, honest effort, and meaningful utilisation of economic resources will positively impact the sustainable growth of a city.
The way we design and build cities will be necessary for citizens' health and well-being, our economies, and our planet. If sustainable cities are managed well, they can become drivers of the economy, contributing to local liveability, global environmental benefits, and global public goods. A sustainable community can endure over multiple generations, enjoying a healthy atmosphere, well-off economy, and vibrant civic life. It develops in accord with the ecological patterns it thrives in.
The Indian Perspective
Today, over half of the world's population lives in cities and accounts for 78 per cent energy consumption and 70% of global CO2 emissions.[1] India forms a large part of that population; with 136.64 crores, its urban population is set to grow by 12% to reach 40% by 2030.[2] More than a tenth of the world's waste is generated in India. With just 79% of the population with access to electricity, India is still the third-largest consumer of energy in the world. Moreover, according to a BP Energy Outlook report, India's energy demand will grow by 132% by 2035.[3]
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While economic growth has been the driving force behind urbanisation in India, the development has mostly been unplanned and unsustainable. Needless to say, if India has to meet the growing demands of its rising population, it has to do so sustainably, placing its masses in sustainable cities. But the inclusion of cities in the Lima Paris Action Agenda (LPAA) at COP21 in Paris and the Sustainable Development Goals (SDGs) is a testament to the capability of these cities to act as global solution hotspots; as the hub of people, businesses, resources and infrastructure, cities offer an exciting opportunity to create better and sustainable places to live in. India too is a Non-State actor of the Lima Paris Action Agenda. It agreed to the Sustainable Cities – Integrated Approach Pilot project in five Indian cities and initiated the International Solar Alliance (ISA), a coalition of solar rich countries.
SCIAP is a child project of the World Bank. Their objectives are to- integrate sustainability strategies into urban planning and management, create a favourable environment for investment in infrastructure and service delivery, and build the resilience of the pilot cities. The five Indian cities selected for the project are- Bhopal, Guntur, Jaipur, Mysore, and Vijayawada.[5][7] Together, these cities represent the diverse urban environment of India, owing to their geographical spread and differences in economic development status. India is also a part of the World Wildlife Fund's One Planet City Challenge (OPCC) wherein the participating cities report ambitious and innovative climate actions and plans in different sectors including energy, transport, housing, and waste, on the international Climate Registry platform; these are then evaluated to declare a national and then a global winner.
Other government initiatives in India include the Smart City: Mission Transform-Nation, Atal Mission for Rejuvenation and Urban Transformation, Pradhan Mantri Awas Yojna Urban, Solar Cities Program and Swachh Bharat Mission. While these programs largely focus on planned urban development, sustainability is a part of them all. These programs aim at creating cleaner and greener cities which are technologically advanced and well managed. But as we have seen before, not all aspects of growth and development are sustainable.
Business Implications -
While successful accomplishment of these programs would translate into a better division of resources and eliminate issues like waste management, overcrowding, and pollution created because of these; whether all aspects of this development would be sustainable remains a question. For example, what about the enormous amount of resources and emissions that would be consumed and created in the process of building these, or are all elements being used in the construction sustainably sourced? What about the agricultural/forest land used for the creation of these cities…? Sustainable cities hold the promise of an equitable and healthy society but not without enormous business implications in the process.
In the long run, sustainable cities can benefit business by attracting a talented and diverse workforce, improving the health of the workforce, and increasing efficiency. Smart solutions in smart cities, like the Internet of Things, will bring the world even closer, including businesses who will now be able to benefit off the reduction in transactional costs and time.[6] The cleaner environment will also mean reduced illness and greater productivity in the workforce, thus directly boosting the bottom line of the company. With vast amounts of data at hand and a talented workforce as human resource, smart cities give us many opportunities to generate growth. Take, for example, the case of Cisco. The company has partnered with the German city of Hamburg to launch the Cisco Smart + Connected Community program, to transform Hamburg into a smart city.
The project aims to connect people, process, data and things to drive innovation and improve the lives of Hamburg's residents by introducing several technological solutions led by Cisco, including- Smart street lighting, smart traffic systems to optimise traffic flows and detect incidents earlier, environment and infrastructure sensing, virtual citizen services solution where administrative services are provided through a high-definition, remote video kiosk and developing a 'smart port' to increase the efficiency of the current infrastructure and quality of services.[6]
The excellent internet connectivity also opens up new possibilities in the maintenance of city buildings and infrastructure, making it easier for people to report issues like potholes and structures that need repairing. At the same time, the individual machines and parts of the infrastructure will also be able to alert city authorities automatically for problems that need to be fixed. In this context, cities are not just looking to corporate giants to create smart cities; they are encouraging start-ups as well. Indian start-ups like Fourth Partner Energy and EnCashea are indeed cashing in on the opportunity.[4]
As is evident, the creation of smart cities holds many opportunities for businesses to provide their services and evolve their abilities to match the times. But for many other companies, it would be a challenge - for example, Uber. The company's entire business model is based on transport by cabs, which honestly are not sustainable, given the consumption of fuel and emissions. Sustainable cities which emphasise on public transport, are in direct contrast to the very nature of such businesses.
Analysis and the Way Ahead
Smart cities have attracted extensive and increasing interest from both science and industry, with many international examples emerging worldwide. Several attempts to conceptualise smart cities and various benchmarking methods have been developed to evaluate their impact. There are six commonly recognised dimensions among the approaches: people, government, economy, mobility, environment, and smart living. It is hardly surprising that the sustainability of cities is a priority for governments, CEOs, city planners, NGOs, and many others. But the opportunities provided by all the technological advances will achieve nothing without the cooperation of all these elements and a coherent vision about utilising the advances in the context of a city.
The issues created by extensive urbanisation are among the most critical challenges of our time. At the same time, they also represent one of the most significant opportunities and responsibilities for the private sector. Businesses are distinctly positioned to shape the sustainable cities and communities of the future. Businesses and investors generally assume that fixing cities is the purview of government and that the government will act. On the contrary, governments across the world are stuck - financially, politically, or both ways. As a result, governments can't be relied on to single-handedly address urbanisation problems or provide solutions like efficient electrification and reliable public transport, that will, in turn, drive economic growth. Implementing such solutions generally requires enormous amounts of capital, proper management, and significantly concurrent interests, which are often in short supply with the governments and adequate with the private players.
Cities are homes to not just the majority of the global population but to the bulk of economic activity as well.[8] The business opportunities arising from the sustainable cities and communities are both all-round and abundant. More sustainable cities provide a better environment for businesses operations. The lower air pollution, fewer crimes and lesser congestions result in lower running costs, as well as a healthier and more productive populous to acquire employees and consumers from. On the other hand, the private sector is likely to be required to contribute to the considerable cost of essential urban infrastructure upgrades.[10]
A problem with sustainable cities is that City action on the SDGs is not properly documented.[9] Experiences are inadequately and inconsistently collected, variably communicated, and often recognized under a different plan. City governments need to properly document and share local experiences on furthering the SDG plan. This will not only inspire other cities but also help accelerate action across the globe.
As we move into an era where immense importance is placed on the sustainability of cities, businesses are presented with an opportunity to influence the direction of urban development. Technology is moving cities towards smart solutions which position businesses at the centre of sustainable solutions to the challenges of growing cities worldwide. However, to prosper from this changing environment, companies must carefully navigate their position to account for the new risks that technology has brought or leave themselves open to criticism.
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