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Social housing ESG reporting standard receives backing from dozens of landlords and investors
A new sustainability reporting standard for environmental, social and governance (ESG) factors in the UK social housing sector has been backed by 61 organisations, including housing associations, banks and investors.
The Sustainability Reporting Standard for Social Housing, designed by a working group of housing associations and consultants The Good Economy, comprises 12 core themes and 48 criteria for ESG reporting.
The standard comes after The Good Economy published an ESG white paper in May which outlined the type of reporting housing associations would need to carry out to meet the standard.
ESG refers to range of criteria that may be considered by investors as they look to invest ethically in business and organisations that provide social value. The new standard published today aims to provide a uniform approach to how housing associations show private investors that by investing in them, their money can have a positive social impact.
A total of 27 lenders and investors, including Lloyds Banking Group, Legal & General Investment Manager, M&G Investments and NatWest, have signed up as early adopters, meaning they have agreed to use the standard in their investment and credit policies.
A further 34 housing associations have agreed to become early adopters of the standard.
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The 48 criteria, decided on following feedback from stakeholders, include issues such as affordability, fire safety and net zero-carbon emissions.
The standard will be overseen by a new Social and Affordable Housing: Sustainability Reporting Standards Board, which is to be established in early 2021.
Sarah Forster, chief executive of The Good Economy, said: “By working together, the social housing sector and financial sector have demonstrated how the lack of consistency, transparency and comparability in ESG reporting can be overcome.”
Lord Bob Kerslake, chair of Peabody and former head of the civil service, said the sustainable investment market is “growing rapidly” and is estimated to be around £2tn.
“This sector-wide reporting standard makes a significant contribution to the aim of increasing private capital flows into social housing, and will help a better and fairer economy and society to emerge after COVID-19,” he said.
The standard’s 12 core themes are:
- Affordability and security
- Building safety and quality
- Resident voice
- Resident support
- Placemaking
- Climate change
- Ecology
- Resource management
- Structure and governance
- Board and trustees
- Staff well-being
- Supply chain management
