Equity investors consider ESG factors in their decision making say Trowers
Tonia Secker, partner and head of affordable housing at international law firm Trowers & Hamlins comments on the role of environmental, social or governance (ESG) factors in affordable housing investment decisions. This was highlighted in The Good Economy's white paper 'Building a Sector Standard Approach to ESG Reporting' which the firm co-sponsored alongside other sector experts, aimed at building a standard approach in the affordable housing finance sector.
"Affordable housing is attracting an unprecedented level of interest from equity investors. As ESG considerations increasingly inform and shape investment decisions, affordable housing feels like a natural fit. But how can investors get the data necessary to back the sentiment? Many housing associations already capture ESG outputs but there is no doubt that a uniform and robust reporting methodology would promote efficiency in the investment process within this sector.
The White Paper represents an important step towards developing that methodology. As co-sponsors and participants in the paper's development, Trowers & Hamlins see its evolution as an important tool in widening investment into the affordable housing sector. We look forward to working with both investors and housing associations in further developing a common vocabulary and methodology to encapsulate the ESG outcomes generated by the affordable housing sector."
The report launched on Wed May 6 can be downloaded here: https://esgsocialhousing.co.uk/
The project will be in a public consultation period until June when there will be further findings and advice around ESG for the affordable housing sector.