Cities must think beyond traditional indicators like economic performance and transport infrastructure to continue to attract investment, it’s being claimed.
The authors of the report warn that cities need to focus far more on issues like climate action and demographic shifts to be successful in the future.
The City Competitiveness Redefined Tracker, from development consultancy Arup, shows which cities are best placed for long term success.
It measures 63 cities against 37 future success indicators – with around a quarter focused on climate action. These indicators span four key assessment areas for city competitiveness: investor attractiveness, assets and infrastructure, liveability and loveability, and urban management and governance.
Paris, Vancouver, and Singapore are among the cities with the highest ‘best in class’ rating, and therefore judged as best placed to be leaders of the future.
This is due to clear action on critical factors for long-term success, like flood risk and access to renewable energy, along with other major issues like demographic shifts and liveability.
Other cities were categorised as ‘leader’, ‘contender’, ‘emerging’, or ‘aspiring’ based on preparedness for future success.
The analysis up-ends some traditional assumptions about globally competitive cities and reveals how tomorrow’s leaders could be quite different from successful cities today.
Lima is a leader for investor attractiveness, showing potential to challenge traditional powerhouse cities, with Peru rising as a regional leader in green finance. Cities like Seoul, Melbourne, and Buenos Aires are championing climate action and resilience, and are also front runners for investor attractiveness. Barcelona, Berlin and Toronto, showed strong evidence of promoting inclusivity and equality – a major factor for future success. But only 29% of cities scored well on inclusivity, showing the need for major improvement globally.
The tracker demonstrates how cities are already under siege from climate change. The World Bank estimates the number of people vulnerable to floods has risen to 1.8 billion. And it has been estimated that the number of cities exposed to extreme temperatures – 35°C and above – will triple by 2050.
The report authors advise that there is a growing relationship between cities with strong climate resilience and mitigation plans, and their potential to attract and retain investment, business, and talent. The tracker found 76% of cities studied have well-developed climate strategy plans, and authors warn that cities need to put them into action as failure to manage climate risks can be detrimental to a city’s global competitiveness.
Miami is one city shown in the study that has taken clear action to manage its exposure to climate hazards. It launched a $400 million ‘forever bond’ to finance climate resilience, helping build more water pumps, flood defences, and other vital infrastructure. And while almost half of the cities in the study have chief sustainability or resilience officers, Miami went a step further – hiring the world’s first chief heat officer.
Andy Hodgson, Global Advisory Services Leader at Arup, says: “Traditional economic and infrastructure indicators are no longer sufficient to gauge a city’s long-term competitiveness. Cities must build resilience into every aspect of planning and operations – from changing climates to energy and water security – or risk becoming unattractive to investors and citizens.
“Those cities that do this will be better positioned to thrive in the long term by protecting their people and assets whilst attracting investment. And there are new, emerging cities leading the way in building resilience to extreme weather like severe heatwaves and flooding and challenging the traditional powerhouses.”
