In our latest Impact Chat, Social’s London Director, Luke Cross, was joined by a panel of ESG specialists to explore the state of sustainability in the UK housing beyond the noise of political rhetoric.
Janani Paramsothy, Associate Director at Newbridge Advisors LLP, Danielle Hughes ESG Consultant and Associate at Sustainability for Housing and Chris Evans, Director at Newbridge Advisors LLP joined the discussion. Together, they explored what sustainability truly means for the sector and the future of ESG.
Below are some of the key takeaways from the conversation.
Is ESG over or is it just evolving?
Luke opened the discussion on the changing landscape of ESG and whether it is ‘dead’. Although the panel acknowledged the hype around ESG has come to a lull, they rejected the idea that ESG has ‘died’.
Danielle noted that ESG is tarnished but not dead, she said: “We’re experiencing a recalibration of priorities and a natural pendulum back to slightly more swing of pragmatic views of ESG risks and opportunities.”
Janani delves further into this point and emphasised the “tale of two worlds”. Politically ESG may be under threat, referencing the no shows at COP, but she pointed out: “There’s lots of opportunities as well as the risk and some people are capitalising on that.”
What political volatility means for housing providers
When questioned on how housing providers should respond to the political uncertainty, Danielle said: “Climate change isn’t stopping, regardless of the noise coming from governments across the world.”
With most 2050 homes already built, the social housing sector holds a huge amount of public value and it’s essential they stay the course and continue to ensure that homes are retrofitted and climate resilient.
Janani explored the conflicting messages of the pressure to build and what is expected of new developments, she observed: “It’s not just about getting it built […] it’s also about if you’re looking after these properties in the long term, what are you setting yourselves up for as an organisation.”
The quiet surge of UK sustainability regulation
Despite the anti-ESG sentiment in the US, Janani highlighted that sustainability reporting and regulations still have a strong presence in the EU, which is where the UK usually follows suit.
Danielle and Janani both discussed ways the UK government continues to quietly advance sustainability reporting standards especially through Ed Miliband’s consultations, Danielle said: “It may not be making headlines, but the UK government has been quietly pressing ahead with a new era of sustainability reporting regulations.”
When questioned on the value of regulations to the sector, Janani commented: “Instead of viewing the regulation as just a burden […] attention should be shifting, not just this something that is done to us, but something we can really capitalise on internally.”
Speaking the same language as residents
The panel dismantles the myth that residents do not care about sustainability. Janani discussed her time working at a housing association, she underlined that residents have concerns about damp and mould, warm homes and high energy bills – these are all linked to decarbonisation.
Organisations need to be aware of the sustainability jargon that is used. Janani explained: “[We are] slightly disconnected from the customer, and I think part of the journey is how you translate all of highly technical, regulator and science-based points into things that matter to the customer.”
Are investors still interested in ESG and how does it affect disclosures?
Luke spotlighted how conversations around ESG began from finance regulation in the sector, posing the question on whether investors and lenders are still interested in ESG data.
Despite the shifting political landscape, investors have not stepped back, Chris stated that investors still want to see consistent year-on-year ESG reporting and sustainability strategies. He pointed out: “It’s probably more of an integration of ESG into day-to-day conversations rather than being a particular topic area that gets discussed in isolation.”
