By Frikkie Malan, Chief Commercial Officer, Remote Metering Solutions (RMS).
The World Bank estimates that over half of the world’s population, approximately 4.4 billion people, currently lives in cities. This trend of urbanisation is expected to persist, with the urban population projected to more than double by 2050, when nearly seven out of ten people will reside in urban areas.
The expansion of urban land consumption now outpaces population growth by as much as 50%, which is expected to add 1,2 million km² of new urban built-up area to the world by 2030, according to a recent World Bank Urban Development Overview. Once a city is built, its physical form and land use patterns can be locked in for generations, leading to unsustainable sprawl. Such sprawl puts pressure on land and natural resources, resulting in undesirable outcomes, with cities now representing two-thirds of global energy consumption and accounting for more than 70% of greenhouse gas emissions.
Cities have thus become increasingly crucial in addressing climate change, as their vulnerability to climate and disaster risks rises with their expansion. Cities worldwide are innovating and becoming progressively smarter by committing to digital transformation, reducing air pollution, and adopting circular economy principles and other initiatives.
Technology giant IBM defines a smart city as an urban area where technology and data collection help improve the quality of life and the sustainability and efficiency of city operations. Cities like Melbourne, London, Hamburg, Brisbane, Hong Kong, and Singapore are leading examples, employing Internet of Things (IoT) technology to bridge sustainability goals with urban development strategies.
However, developing sustainable, smart cities, and environments that are green, resilient, and inclusive, demands coordinated policies, and strategic investments that promote recycling, reuse, and the reduction of waste, holding governments and all its stakeholders accountable.
Paris Olympics models a sustainable urban vision
When Paris secured the 2024 Olympics, Mayor Anne Hidalgo and her team seized the opportunity to showcase the French capital as a sustainable, smart city. The Olympics provided a platform for Paris to demonstrate its commitment to regeneration and sustainability, most notably through the eco-friendly design of the Athletes’ Village. The 2,800 apartments are anticipated to emit only half the carbon compared to equivalent structures built using conventional methods. Following the Games, these apartments will be repurposed, with at least a third designated for public housing.
Furthermore, the site features a miniature water treatment centre to purify wastewater for garden irrigation. One experimental building, “The Cycle Building,” will utilise purified rainwater for its toilets, which will later be converted into fertiliser. Some pavements are made from recycled oyster and seafood shells, designed to absorb less heat than traditional tiles. Additionally, other walkways incorporate byproducts from the paper-making industry or resin sourced from pine trees instead of oil-based bitumen. Event organisers also significantly changed the food served at the games, switching 60 percent of all food and 30 percent of the meals for athletes at the Village, to plant-based options.
Using the Paris 2024 Games as a plausible case study, architects and urban planners around the globe have a unique opportunity to rethink how we live, work, and play in the urban spaces we inhabit. As architects acknowledge the necessary changes during this transitional phase, the shift toward sustainability is increasingly apparent, driven by pressure from investors and consumers. This pressure compels business owners to prioritise eco-friendly practices in design, construction, and utility management.
Shopping malls are a dominant feature of our cities and provide an excellent starting point for transitioning to smart cities. A smart mall that is operated efficiently, uses water and energy effectively, and has its own power generation and water treatment capacity can lead the vital transition of our urban landscape to a smart city future.
Commercial real estate at a crucial crossroads
In an age marked by the urgency to protect the environment, commercial real estate stands at a crucial crossroads, and prominent urban landmarks like shopping malls are responding to this opportunity. Integrating ESG initiatives into their operations has become a corporate responsibility, and smart property owners extract significant value from their ESG initiatives to attract and retain tenants and shoppers, meet investor expectations, and contribute to a sustainable future.
Moreover, the surge in online shopping has offered unparalleled convenience, a realm where malls struggle to compete. Instead of trying to emulate this convenience, malls should pivot towards offering a different kind of experience — one that moves beyond mere shopping to provide broader value to consumers.
Globally, shopping malls are evolving into smaller mixed-use lifestyle centres, blending residential, office, and retail spaces with entertainment venues, gyms, grocery stores, and leisure facilities. They also serve as vital community hubs. In South Africa, for example, these spaces offer opportunities for socialising, accessing wireless networks for work, and serving as a refuge, especially when other public spaces may be unsafe or during lengthy water or electricity shortages at home.
While load-shedding significantly affects the operations of large properties like shopping malls, the persistent (and increasing) threat of unreliable water sources poses a further challenge for South African property owners. Without reliable access to water, tenants such as restaurant chains and hair salons cannot operate effectively, shoppers cannot use restroom facilities, and there is a heightened risk to everyone’s health, safety, and hygiene due to inadequate water for maintaining cleanliness standards.Top of Form
Realising environmental responsibilities
The increasing frequency of load shedding and water shortages highlight the necessity for malls and other public spaces to become more self-reliant in managing the supply of these essential resources. This has compelled local mall operators to reconsider how they conceive and manage utilities at their properties.
Shopping malls that embrace sustainability align with ethical business principles and appeal to environmentally conscious consumers. They thus fulfill a dual role of attracting shoppers while helping them realise their environmental responsibilities.
Creating self-sustained energy and water systems in malls involves resource optimisation and innovative circular economy approaches to harvest, store, and recycle enough water to be independent, reduce electricity consumption from sources that produce carbon emissions, and harness renewable energy sources. Implementing these strategies enables shopping malls to reduce their environmental impact and inspire active participation in sustainable practices among tenants and other stakeholders.
Incorporating the realities of climate change into cities’ budgets
Building resilient cities that work requires intensive policy coordination and investment choices, and national and local governments have an important role to play. Yet, local governments often face competing priorities and lack a long-term approach or sufficient resources to invest in resilience measures, effective waste management, energy-efficient transport, and infrastructure.
These challenges are often compounded due to a lack of alignment with national priorities. Creating sustainable shopping malls can lead the way by showing policymakers and municipalities what can be achieved. A positive step forward was President Cyril Ramaphosa signing the Climate Change Bill (the Bill) into law in July this year. This landmark legislation represents South Africa’s first dedicated law to combat climate change, encompassing measures for reducing emissions and adapting to climate impacts.
Introduced in 2022, the Bill outlines a thorough national strategy, now involving provinces and municipalities, to align with South Africa’s commitments under the Paris Agreement.
These are some encouraging trends. Let’s now seize the opportunities. We have no time to waste.
