ESG principles and urban regeneration. A framework for sustainable cities

The city's rethinking project must affirm a culture of integrated and open planning in order to achieve a balance between environmental, ecological and socio-economic components. It is no coincidence that the growing interest in ESG (Environmental, Social, Governance) principles, driven by public attention to the issues of climate change, social inequalities, and the role of stakeholders in decision-making processes, can positively influence urban regeneration practices. In line with the Paris Climate Agreement and the United Nations Sustainable Development Goals (SDGs), the adoption of ESG principles in land-use planning and management can help improve urban quality, as well as promote environmental sustainability and foster social participation and inclusion. This condition is also underscored by recent trends in European policies (proximity, energy, climate change) and stakeholder engagement. These considerations highlight how ESG principles focus on environmental, social and governance impacts: - Environmental: assessment and implementation of strategies for ecological, environmental and energy transition; - Social: issues related to well-being, perceived safety, urban mix, and inclusiveness of public space; - Governance: transparent and accountable decision-making in relation to programmatic choices related to sustainability. The challenge is to understand how the goal of sustainability and the application of ESG principles can influence and contribute to the implementation of urban regeneration projects. ESG criteria are certainly drivers of innovation in urban transformation processes, but the application in the urban planning discipline has yet to be explored. For this reason, governance, and climate adaptation plans need to be guided by decision-making processes that involve communities and stakeholders but can base their decisions on appropriate reporting and evaluation. The resulting framework underpins the dynamic understanding of processes and how they can be enablers for urban planning and transformation. Recent initiatives undertaken by the European Union and national governments show how ESG principles can contribute not only to the evaluation of public projects, but also to funding strategies and subsequent implementation and management phases. In this sense, ESG criteria, in relation to EU funding for the implementation of Key Enable Technologies (KETs), should promote the establishment of methodologies, frameworks and standards aimed at increasing the degree of sustainability. Not surprisingly, the application of ESG principles, for example, extends from sustainability certifications (e.g. LEED) to neighbourhood Walk-Score assessments. The use of measurable impact metrics makes it possible to assess how the project affects issues of resilience and mitigation of the effects of climate change, taking on the role of a catalyst for the ecological transition of cities. This highlights how, in the near future, advanced analytical tools will play a central role in planning due to their ability to combine urban, environmental and economic data in relation to interests in urban and spatial regeneration processes. Signs of synergy in the adoption of ESG principles make it possible to overcome cascading planning in favour of strengthening the strategic dimension, in which urban plans are instructed by reuse, urban regeneration, and environmental criteria. The goal is to generate new knowledge about the relationships between ESG assessments and public value for the initiation of processes for monitoring and sustainable development of territories and cities. Experimentation allows not only to ensure efficiency, but also to reduce risks and improve the standards of design processes. This holistic approach makes it possible to properly assess the interests of stakeholders and communities in relation to contemporary issues and integrate them into design. The paper argues that through a multi-actor, multi-disciplinary and multi-scalar approach, open spaces can be regenerated from environmental resources and components. Integrating environmental, social and governance considerations into urban decision-making processes would enable equitable, inclusive and environmentally sound urban growth to ensure that cities can effectively and supportively address climate challenges.