ESG factors are becoming increasingly important for housing associations, influencing everything from investment decisions to stakeholder relations. By prioritising environmental sustainability, such as reducing carbon emissions and promoting energy efficiency, housing associations can contribute to the broader goal of combating climate change. Social factors, such as community engagement and affordable housing initiatives, are also important in fostering inclusive governance practices. Transparency and accountability ensure that housing associations operate ethically and effectively.

The social housing sector plays an important role in the UK achieving Net Zero carbon emissions by 2050; however, decarbonising social homes presents a unique set of challenges. A recent report commissioned by the National Housing Federation and the Local Government Association delved into the complexities of decarbonisation efforts and highlighted the characteristics and constraints of homes that are difficult to decarbonise. The report identified several challenges in decarbonising social homes, ranging from technical and spatial to regulatory factors. By investing in energy-efficient building designs, renewable energy sources, and carbon offsetting measures, housing associations can work towards achieving Net Zero emissions and contributing to a greener future.

Sustainable practices not only benefit the environment, but also improve residents’ health and well-being, lower operating costs, and boost housing associations’ reputation in their communities. From sustainable procurement policies to green building certifications, housing associations can implement a variety of strategies to improve sustainability throughout their operations.

While there are legitimate concerns about the financial implications of implementing the new Decent Homes Standard, investing in quality housing is important to ensuring residents’ well-being and the long-term viability of housing stock. Board Members will be pushed to explore cost-effective strategies and innovative funding solutions to reduce financial burdens while maintaining decency standards.

ESG, Net Zero, and sustainability all aim to promote environmental stewardship, social responsibility, and good governance. These topics are becoming increasingly relevant in the sector. We are running training to help board members incorporate ESG principles into their sustainability strategies, align their efforts with broader sustainability objectives, and support their commitment to best practices. Please visit our training page to learn more about our upcoming training sessions.