SfH is currently looking for feedback on Version 2.0 of the SRS from adopters, endorsers and others.
You can find details of the new criteria alongside some commentary on the changes here.
As we set out on the consultation process, we asked some members of the board to reiterate the benefits that the SRS offers.
Robert Hall, Director: Earth Systems Impact Investment, Federated Hermes: “The SRS is valuable because it enables the sector to demonstrate the significant value it delivers to residents, the environment, and broader society. It enables investors to come to a view on what good looks like, to systematically take account of the risks which exist within the sector, and the steps that providers take over time to reduce these.
“It allows investors to internalise good governance practices into their lending and investment decisions, establishing a level playing field across the sector, incentivises providers to improve standards, and ultimately increases the ability of the sector to source finance from entities seeking opportunities to invest into high positive impact sectors of the economy.”
Fayann Simpson, Group Board Member and Senior Independent Director at L&Q: “The SRS allows for a consistent and shared language for stakeholders to assess progress. There is a greater scrutiny in terms quality and energy efficiency of residents’ homes and there is need to clearly demonstrate what is being done.
“The SRS aligns well with the Tenant Satisfaction Measures and the push for transparency. Residents want to know what is happening and how changes will affect them. The housing sector has a shared and powerful story to tell and the SRS provides clarity to share that message. Given the challenging economic climate, there is a significant need for investment in the sector. We have to communicate more effectively to a broader range of stakeholders. The SRS is helping the sector do that.”
Julie McDowell, Chair of Blackwood Homes and Care: “The SRS enables good management of ESG issues, which is essential to the success of HAs in today’s world.
“HAs need to respond to increased expectations from government and other stakeholders on how they manage environmental and social impacts as well as how they are governed.”
David Cleary, Managing Director and Head of Housing at Lloyds: “From a lender’s perspective, the SRS allows us to assess ESG performance, establish current baselines and measure subsequent improvements, in order to structure and deliver our ESG and sustainable finance solutions.
“Through the evolution of ESG finance across the sector, and the wider adoption of SRS, we have deepened our client relationships beyond merely finance teams, with multi-layered discussions involving a range of teams across sustainability, asset management, social and community impact to name a few. The SRS has been a catalyst for enhanced ESG reporting and has a crucial role to play in the continued growth of the sector for housing associations, investors and lenders alike.”
Craig MacDonald, Global Head of Fixed Income abrdn: “Investors and their clients are applying an ever increasing ESG focus to their investments and the SRS framework provides a good evidence base to measure this and also helps us quantify improvement against the various metrics.
“The SRS helps understand the differences between providers, and where different HAs are on their ESG journey from a strategic priority; management focus; and reporting and disclosure perspective. It is also useful for enabling in-depth ESG conversations between investors and HAs which should ultimately facilitate more investment growth into the sector.”