At the end of June Helpthemove attended Housing 2024 at the Manchester Central Exhibition Centre, where we had the opportunity to contribute to the discussion on the role of ESG in the housing sector. Our session, titled “How can ESG help deliver better outcomes for housing providers and their tenants?”, brought together industry experts to explore the current state of implementation and its impact on housing associations and their residents. This discussion is especially relevant as we launch our new business venture, Footprint ESG, a comprehensive reporting platform. We’ve summarised some of the key takeaways below.
Jo Shields of WHG, in her role as Head of Sustainability and ESG, stated that ESG reporting should not stand in isolation for businesses but rather be integrated within the business’s functions. She pointed out that most companies gather the relevant data but fail to report on it in the right way. By embedding it into daily roles and responsibilities, businesses cultivate a sense of ownership and engagement, which then becomes an everyday way of doing business.
Rachel McGoff, the Head of Financial Accounting and Reporting of The Guinness Partnership noted that ESG reports are critical in providing a framework in the way business is carried out:“ Doing the reports helps us understand what’s happening across the business. It helps with budget-setting and consistency with prioritising resources.” She went on to explain that organisations can then deliver the information placed in the context of its broader meaning in support of their financial and operational objectives.
Brendan Sarsfield, Chair of Sustainability for Housing, observed the mixed progress within the housing sector, stating: “Some organisations have been reporting for years, but others are lagging behind”, whilst also noting a “silo mentality” of reporting; echoing Jo’s sentiments. Brendan also struck a cautious tone, explaining that as “the third biggest contributor to carbon emissions”, the property sector as a whole, but particularly the social housing space, must innovate when it comes to ESG and reporting, before people start to seek someone to blame when things like extreme weather become worse.
Rachel also warned that from a legislative point of view, there is no clarity on implications for not hitting targets by 2050: “It is a legal target – but what does it mean if it’s not achieved? Large fines to offset emissions? Is anyone modelling for this in their financial plans? It seems quite far away but it’s not.”
Stephen Henesy, Founder and CEO of Helpthemove Ltd, highlighted long-term planning as a necessity in current and future initiatives. He furthered this by explaining its usage at both a granular level and at a higher strategic level: “Examples can be as granular as monitoring individual meters and getting feedback to save on costs immediately, right up to the strategic view of what’s the most effective way of getting a portfolio of houses up to a better grade with minimum impact to the tenants.” Data, he said, should be harnessed by organisations not just to meet their reporting needs but also for finding actionable insights leading to sustainable and efficient improvements.
On the back of an audience question about “blockers to taking action right now, instead of continuing to talk about the problem?”, the panel were aligned that there are a myriad of issues to address. Brendan spoke in detail about supply chain issues, short-term thinking in social housing organisations and financial constraints. He went on to challenge housing associations to bring about change now, even at the smallest level, rather than put it off because of financial worries, stating: “For those thinking “I can’t do it all”; I’d say – you can do some. If you can afford to make a start, you should do so as soon as possible. You’re going to need to do it at some stage as the deadline is inevitable.”
The issue of access to accurate data was raised by Stephen: “I think one of the biggest blockers is access to data and insights and regulations around this. If you don’t know where you are on day one – how do you know when you’ll be able to hit net-zero?” Jo also shared these sentiments: “how can we model the finance against the business case, without the base data?” She also made the point that if we continue on this current trajectory, we are setting people up to fail in the long run.
Jo and Rachel both emphasised the importance of involving tenants in the ESG journey. While it might not be the primary concern for all residents due to an ongoing cost of living crisis, it is the responsibility of housing providers to make their homes sustainable without being disruptive. Rachel then went on to emphasise that effective communication and education are key to aligning tenant priorities with ESG goals, ensuring that the broader community benefits from these efforts.
The panel agreed in principle that there is still a long way to go for the Social Housing industry to fully embrace the ESG challenge and bring about meaningful strides towards net-zero. Their insights show however, that there are numerous mitigating factors and external pressures driving the current inaction and lack of progress. Get in touch with Helpthemove’s team today to learn how our future reporting platform, Footprint ESG, can help your organisation plan for sustainability by measuring impact.
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