The Sustainability Reporting Standard for Social Housing has been launched today by the ESG Social Housing Working Group to help attract ESG1 investments and ultimately boost the supply of new genuinely affordable homes.
The Standard brings consensus on how to measure and report on ESG performance in the social housing sector and as such will also help reduce the ESG reporting information burden on housing associations. Social housing is understood to be first UK sector to come together with lenders and investors to create a common sustainability reporting standard.
The ESG reporting standard is based on 12 themes – including “Affordability and security”, Building safety and quality, “Resident voice”, “Resident support” and “Climate change” and “Ecology” – and 48 criteria for ESG reporting by housing associations. The criteria are also aligned to international ESG frameworks and standards including the Sustainable Development Goals (SDGs), the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB), and the International Capital Market Association (ICMA) and Loan Markets Association (LMA) Principles.
Initiated by Peabody, one of the UK’s oldest and largest housing associations, the ESG Social Housing Working group is a unique collaboration of 18 banks and investors (including NatWest Group), housing associations, service providers and impact investing organisations that have led on the development of the new standard.
400 organisations, including housing associations, investors, trade bodies, financial experts and tenants’ groups provided feedback to the proposed standard as part of a sector wide consultation in May this year, with 70 organisations already signalling to become early adopters of the standard. Housing associations will report against the standard on an annual basis, while lenders and investors have committed to using the standard in their investment and credit policies, processes and/or product design.
The standard will be overseen by a new Social and Affordable Housing: Sustainability Reporting Standards Board, which will be established in early 2021.
Click here to read the full “Sustainability Reporting Standard for Social Housing: An Overview” report.