Last month, in partnership with Newbridge Advisors LLP, we hosted our first summer sustainability event, ‘Bridging the Gap’. It brought together over 40 sustainability and finance professionals from across the housing sector and financial services industry. 

Set in Camley Street Natural Park, a hidden gem in the heart of King’s Cross, the event highlighted the energy and real desire to address the sustainability challenge head on.  

Our director, Luke Cross, led a discussion on ‘Staying the Course’, hearing from an expert panel of finance, housing and sustainability professionals – and facilitating a lively debate among attendees. The event marked the launch of Newbridge’s recent report on the use of sustainability-linked loans (SLLs) in the social housing sector, which also shaped the panel discussion. 
 
The reality: the financial pressure on housing providers means sustainability and ESG aren’t where we’d like them to be – it’s a challenging journey, and it means sustainability advocates need to work even harder to be heard and influence decisions.  
 
But we have also seen ESG become integrated into business – this concept really wasn’t anywhere in the social housing sector five or so years ago; now it’s central to the industry’s agenda. We have a new crop of sustainability experts in housing and a sector ESG standard – we are making progress. 
 
Below are some of our key takeaways: 

• Reporting and communications are playing an even more crucial role due to the need to influence and win hearts and minds. Having a clear strategy and roadmap would also facilitate better conversations with stakeholders, including funders. 

• Having attractive and good value sustainable finance products can help make the case for sustainability – but we need to see finance people bring sustainability people to the table too.  

• SLLs aren’t a silver bullet but can be a more impactful piece of the puzzle. Although a discount on loan interest is a common incentive to meet sustainability targets, is it enough ? It definitely adds up, but where else can efficiencies be made? 

• Even if discounts on margins can’t go any further – there are ideas out there – reducing fees, or flexibility on covenants on sustainable products – or could government get more bang for its buck by diverting capital grant to support discounted finance (in addition to guarantees)? 

• Finance MUST be a leader if we’re to stand any chance of delivering this transition – and its role in supporting sustainability isn’t just about climate – it’s social sustainability, environmental sustainability, and economic sustainability. 

Many businesses, large and small, are under a lot of pressure just to deliver business as usual  – preaching only gets you so far. But open and honest discussions between those tasked with setting and delivering sustainability ambitions, and the people holding the purse strings, may just help move things along. 

By Social