Hyde to report ESG targets annually to attract ‘right kind’ of investors

Hyde also wants to double the size of its estate to 100,000 by 2030.

Last June, Hyde revealed that it was planning to set up a for-profit registered provider that it would use to bring ESG-hungry pension fund equity capital into the UK social housing sector.

And earlier this month, it unveiled a partnership with M&G Investments to fund a targeted £500m pipeline of shared ownership properties through “compassionate” private capital.

On governance targets, Hyde wants 90 per cent of its residents to register a rating of ‘satisfied’ or better. And it wants to retain its overall viability rating of V2 and governance rating of G1.

Mr Denton said he regards ESG as way to “demonstrate what we stand for, and attract the right kind of investment”.

He also said he wants Hyde to work with other landlords. “There is little sense in housing associations trying to go it alone, which is why we are committed to collaborating with other housing providers on the green agenda, in turn helping residents tackle fuel poverty, sustain tenancies and live in healthier homes.”

Hyde joins a string of other associations that have stepped up their focus on ESG as funders increasingly link lending to credentials in this area.

Clarion, Catalyst and Link Group have all completed Ritterwald’s Certified Sustainable Housing Label – a pan-European scheme aimed at measuring housing providers’ performance against ESG criteria.

Meanwhile, Aster used its new financing framework, aligned with the sector reporting standard, to launch its first sustainability bond in January – only the third such issuance in UK social housing. Other housing associations including Bromford have also indicated that they are launching an ESG framework.

Lee Gibson, chief finance officer at Bromford, told the National Housing Federation’s Housing Finance virtual conference last week that the cost of establishing the framework would more than pay for itself. Speaking at the event on 18 March, he suggested that if the assumed saving on a £100m bond is five basis points, the “max £50,000” cost could be recouped within the first year.

Earlier this month Lloyds said that at least a third of the £1.5bn of funding it aims to deliver to the social housing sector this year will be ESG spending.