Definition of an ESG framework for sustainable urban regeneration

Sustainable urban regeneration projects feature social, economic and environmental considerations and set ESG (Environmental, Social and Governance) compliance at the core of their operations (UN-Habitat, 2021). ESG criteria are used by investors to assess environmental, social and corporate governance issues and determine the future performance of their investments. ESG taxonomies are increasingly used also by city governments, that incorporate ESG factors into decisions about their assets. Some examples of ESG assessment and measurement approaches are already available in sectors related with urban regeneration such as real estate and infrastructures, including certification standards (SuRe, Envision, CEEQUAL, ISO), reporting standards (GRI, SASB), financial impact analysis (SAVi, TREDIS, Autocase). These approaches have been defined by different actors, such as NGOs, international organizations, private companies, professional associations, research and academia with a variety of purposes. However, an ESG framework explicitly defined for sustainable urban regeneration is still missing. The aim of this paper is to define relevant ESG criteria for sustainable urban regeneration, to systematize existing evaluation frameworks, to identify the gaps between existing frameworks and relevant criteria and to propose a new approach that could fill these gaps. The methodology is multi-faceted and includes: a) an analysis of existing ESG evaluation frameworks which could be applicable to urban regeneration projects, in order to identify their main features and categorize their criteria and indicators; b) a systematization of ESG criteria and indicators, performed by detecting overlaps, duplications and merging similar criteria and indicators, when needed. The criteria and indicators are then evaluated according to their applicability within: i) the process to develop an urban regeneration project; ii) the impact assessment of an urban regeneration project; c) a gap analysis to detect and identify the substantial gaps of criteria and indicators in existing frameworks. The paper contributes to the literature in several ways: firstly, it fills the gap between existing ESG evaluation frameworks and urban regeneration; secondly, it provides a new methodology that may be used by developers, private investors and policy makers to evaluate real projects.