In this month's expert view, Article 13 explores developments in the South East of England that provide a microcosm of the global debate on pro-growth policies and environmental, social and ethical issues.
The "big" debate
Sustainable development is all about decision making and weighing up the options. Often difficult decisions need to be made, around how to balance and integrate environmental, social and economic impacts, and how to move forward. This often sounds conceptual and academic, but at the moment some of these major sustainability decisions and issues are about to be debated and addressed:
- at regional level, in the south east, with the Mayor's draft London Plan
- at national level, with DEFRA (Government Department for Environment, Food and Rural Affairs) publishing their Sustainable Development Strategy,
- globally, with over 65,000 delegates coming together to debate how to make sustainable development a reality for the world's growing population.
The debate being addressed at the World Summit on Sustainable Development at Johannesburg will centre around reconciling economic growth and progress with the challenges of poverty, exclusion and environmental degradation. Delegates will include representatives of government, business, civil society and NGOs. But how does their debate relate to tangible risks and opportunities for business?
What does it mean in practice?
Developments in the South East of England represent a microcosm of this juxtaposition of growth with social and environmental issues. Over the past two months the UK government has made a number of critical announcements which point to major developments in this region.
John Prescott announced a massive increase in resources allocated to housing in June. Last month Alastair Darling's Department for Transport released its long awaited runway studies consultation impacting the future of aviation in the UK. The Government has committed to promoting a modern, knowledge-based economy which is high in overall value and low in impact, underpinned by public services and renewed investment in better public transport and infrastructure. Overall, government has identified transport, housing and health care as some of the main challenges facing UK.
Building a shared agenda for growth
Underpinning the agenda for growth in the South East is the Government's desire to ensure that the South East and London continues to grow as the power house of the UK economy. But that requires the input and participation of many actors.
For example, recognising this, the Mayor has put out the draft London Plan, which is pro-growth for the city which underpins the UK economy. Central to the Mayor's strategy is the desire for London to be a location of choice for UK and European business headquarters. This means effective transport links, housing that people can afford and a healthy environment as well as economic growth. The plan considers how these can be achieved given London's current crumbling infrastructure.
The Government is well aware that many of these plans are contentious, whether they be new houses, new runways, business districts with relaxed planning controls or indeed, any additional development in London. Critics have called it an onslaught of the countryside, and it is clear that it is just a beginning and hasn't fully addressed all the issues such as promoting social inclusion and diversity to tackle the "ghettoisation" of the city. The South East also faces a huge threat from flooding.
So at the London level we are beginning to see these sustainability issues come into play and meanwhile at the Earth Summit business, government and the NGO sector have come together to develop strategies to move forward. Questions are emerging around how business, government and civil society will manage the emerging issues.
Business as usual?
What can business take away from all the messages? There are certainly opportunities out there, but making it happen will be difficult. Listening to stakeholders to ensure that business is delivering to government and society's expectations could pay major dividends. "Business as usual" is not an option; business needs a new way of operating to ensure that it can maximise these new opportunities.
Examples of how companies can address these varying issues practically, are BAA plc, the UK's leading airport operator and the Berkeley Group, an important developer in the South East of England. Both have pioneered ways of talking to their stakeholders but for very different reasons.
BAA embarked on this route to minimise the cost of a public inquiry and to demonstrate how aviation growth can be made more sustainable. The new economic vision that the government is promoting is reliant on strong and competitive international connections and aviation is integral to delivering this vision (see Liveable Cities briefing paper). However, both at the local and global level, the future of aviation is the subject of much debate because of the high environmental impact associated with it.
After the long process that BAA underwent for Terminal 5 with the ensuing costs in terms of financial and other resources, Gatwick and Stansted have embarked on a more participative approach to growth. With the launch of the government's study on expansion in the aviation industry, the debate will intensify, but BAA's approach shows a step in the right direction.
Berkeley Group, a leading developer in the South East, argue that they are not just concerned with "bricks and mortar" in their developments, but creating sustainable developments for "living communities". Thus, consulting with their stakeholders (communities, users, local authorities) is key in enabling them to deliver to their stakeholders' expectations and in turn their business objectives.
No easy answers
Debates at Johannesburg will focus on the global issues of economic growth, the role of globalisation, poverty alleviation and environmental protection. But what does this mean on a local level? Developments in the South East show how these debates translate themselves locally and what the impact on business could be. Certainly the messages to business can be confusing. But what is clear is that a new era for business is unfolding, and the outcome of Johannesburg will only reinforce this.
Consultation and dialogue can be key tools for the way in which business operates in the future, and some organisations have already taken this on board and future-proofed their growth and development. As governance structures change, business will increasingly need to work alongside other societal partners (local, central and supranational government, as well as NGOs and civil society) to deliver sustainable development in an interdependent world where old boundaries are blurred and new opportunities arise.
Also in this feature:
© Article 13 2002
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