Let this period of renewal energise the ESG movement

At Sustainability for Housing (SfH) we are embarking on our own changing of the guard, as I will step down later this year. Like the election campaign, I am sure that my successor will inject vigour into the sustainability agenda and help drive the sector further forward.

I am proud to have worked with some fantastic colleagues in setting up the Sustainability Reporting Standard for Social Housing (SRS) and am buoyed by the impact it has had. Since its creation, the standard has attracted 157 adopters, including 120 housing associations and 37 funders.

The SRS has been a vital tool in harnessing the shifting sentiments in the investment industry, and the vast majority of new debt taken on by the sector is now ESG-linked in some way. 

This, of course, was not the sole aim of the SRS when we set it up. We also wanted to drive progress on ESG metrics across the sector, and we are seeing results in this area, too. Adopters of the SRS are improving energy efficiency, providing a greater proportion of homes for social rent and improving equality in their organisations.

But make no mistake, there is plenty more to do, and I am confident new leadership on this agenda will allow for continued progress.

In the first few years of the ESG reporting movement, much of the work was around connecting funders and housing associations and understanding the needs of both parties. This has been a success. Our recent annual review found that 77 per cent of funders believe the SRS has led to them receiving more useful information on the ESG performance of the sector.

This is a fantastic result, but our focus must now shift to collaborating with housing associations and helping them move from planning to delivery. We are clear that reporting alone is not a proxy for action.

We can take heart that the SRS is influential. Our review also found that close to half of our housing association adopters (44 per cent) thought ESG reporting had already led them to do things they otherwise would not have done, or accelerated implementation of planned actions, such as creating sustainability strategies and setting ESG targets.

As the sector matures on ESG reporting, we will support housing associations to accelerate their progress on sustainability further and faster. In particular, we will be seeking to support the sector on Scope 1, 2 and 3 emissions reporting and biodiversity – areas we know are a challenge for our adopter community.

If they do not move quickly, the building and construction sectors could easily become the biggest obstacle on the country’s journey to reach net zero. This is a serious sector risk and opportunity.

This year will feel like a period of renewal for many in the country, and I urge everyone in the sector to use this moment as a springboard for greater ambition and to grasp new opportunities. I might be biased, but I think ESG reporting can help accelerate action and bring stakeholders with you on the journey.

Brendan Sarsfield, outgoing chair, Sustainability for Housing