Urban Splash has been ‘doing’ ESG for the last 30 years but for a long time we didn’t have a name for it – we acknowledged our intension to ‘do good stuff’ and [rightly] believed that would pay dividends in the long run.

ESG is an acronym which is gaining traction; In simple terms, what’s the impact of your activities on the planet? What is the impact of your activities on people? And what processes have you got in place to make sure your activities are lawful, robust and resilient?

Janet, from our finance department mentioned that her American friends have been using the term ESG for years, but it feels like adoption in the UK is a little slower. Similar terms like corporate social responsibility, sustainability, social impact, social value have been around for a while but few seem to know the difference between these things and crucially how ‘doing good stuff’ can and should have a commercial benefit for your business. I believe that when ESG is truly understood and effectively integrated into corporate governance, it can have a positive, transformational impact on a company and the products and services it delivers.

At a recent international event I was asked a very simple question by a veteran planner - ‘I’ve been following the work of Urban Splash for some time, and I have always wondered why your company can deliver so much social impact and other developers aren’t?’ The simple answer is because we think its valuable, and we don’t separate it from other measures of success like financial performance.

For a long time Urban Splash has driven great outcomes using gut instinct. As the scale of our projects has grown and the complexity of the challenges we are addressing domestically and globally has evolved, so has our need to create a more sophisticated means of galvanising intentions with our partners and stakeholders; monitoring progress against those intentions throughout delivery and ultimately demonstrating our achievements and acknowledging the commercial advantages of ESG impact in the long term.

To help us manage this process consistently we developed a very useful, but also rather beautiful, framework (fig3) which is underpinned by our company purpose and embedded into various governance processes. Being a fundamental part of how our company operates is crucial.

Our ESG framework is used in multiple different ways but in this article I am focusing on how its used to influence development outcomes.

At the beginning of partnerships and/or projects we can use the framework to set intentions, this can be a collaborative exercise that can include local authority partners, our design teams and/or local communities. The ESG framework is a participatory tool.

Once high-level intentions are set we use the framework to bake in specific measurable targets that will deliver our objectives.

These targets are added to our development gateway process which includes ESG factors and financial performance.

At each gateway we monitor whether the project is achieving targets or not. If not, the project doesn’t pass to the next gateway until it does. Crucially ESG targets are given as much significance as financial targets in the gateway process and decision making. ESG and financial metrics are considered hand in hand, often both need to flex at different points throughout delivery but the framework and integration of this into the gateway process prohibits us for considering either in isolation. By integrating our ESG framework into our development gateway process we are able to ‘pass the ESG baton’ from gateway to gateway maintaining its significance all the way through delivery and post occupancy.

At the end of development, or an individual phase of development, we are able to use the framework to report on impact and demonstrate the financial, social and environmental value that our activities have created. Demonstrating impact, especially when undertaking the scale of regeneration Urban Splash does, is incredibly valuable to stakeholders. Being able to fully demonstrate development value, whether this is transactional financial value or less tangible social and environmental value, is the key to translating these impacts into commercial success.

Take, for example, our work at Cole Brothers. In 2023, Urban Splash was selected to transform the much-loved, Grade II Listed department store in the heart of Sheffield. The building is rich with stories and heritage, has a special place in the hearts of local residents, but like many mid-century masterpieces is feeling its age.

Our most significant challenge is how we forge a relevant new purpose and narrative for the building quickly, preserving the social value that already exists. We want to breathe new life into the space without compromising on sustainability, and we want to evolve designs which are fit for the future whilst not producing a sterile box filled with artificial light and air.

Our ESG framework has been invaluable in this pursuit, providing parameters that guide and inspire our design teams architectural solution and help us bring our partners along on the journey.

After collaboratively agreeing the high-level intensions of this transformation we are applying specific measurable targets to each indicator.

You can tell from the intentions set on the framework that social value and embodied environmental impact are high on the list of priorities at Cole Brothers. Even though we are only at RIBA stage 2, we’ve already identified how we intend to deliver that impact and measure it.

This doesn’t mean things cant change throughout delivery, we fully expect the process of refurbishing and repurposing Cole Brothers to bring unexpected challenges which affect our initial intentions. The Urban Splash governance process is designed to support us in managing significant responsibilities like this, ensuring that ESG factors such as social value are as crucial as any financial appraisal of the building. We have an ambitious vision for this particular site. Achieving our vision will require new ways of working and will challenge convention. Our ESG framework helps us agree and articulate our intensions and makes it easier to bring everyone along on the unconventional ride.

We’re in a similar position in Swansea, collaborating with the City Council to realise a shared vision that will revitalise seven sites and create a "city by the sea." Our plans will celebrate Swansea’s rich heritage while introducing innovative design ideas to rejuvenate the city responsibly.

As we have done in other locations like Park Hill and Royal William Yard, we have invested in long-term regeneration, committing to a 20-year partnership in Swansea. By leveraging our framework, we ensure that our collective vision is sustainable and has social impact on a large city-wide scale.

Part of our partnership with Swansea includes a responsibility to consider the Wellbeing of Future Generations Act 2015. We are using our framework early in the partnership process with Swansea city council to align our development intensions with those of the legislation – to guide us towards creating solutions that provide a more sustainable and equitable future for the people of Wales.

The Urban Splash ESG framework is used beyond regeneration activity, we also use it to establish monitor and evidence the whole groups ESG impact at a corporate level. We collect information from over 170 different data points so that we can accurately demonstrate our whole company’s impact on people, impact on the planet and means of managing our activities through robust governance (fig 10).

Using our ESG framework and integrating it into our governance processes gives social and environmental impact as much prominence as financial performance but doesn’t guarantee quick profit. It’s an approach that ensures our places, whether created 30 years ago or yet to come, are greater, better and more beautiful than they were left to US - this ultimately drives more value, and when you know how to maximise value, commercial success will follow… it might just take a little longer.