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.
Tonia said:
"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.
