Social Housing Governance and Sustainability
In early November The National Housing Federation issued the ‘Code of Governance 2020’ for social housing providers and its members. It replaces the earlier 2015 Code. This coincided with The Good Economy ‘The Sustainability Reporting Standard for Social Housing’.
The latest Code provides a more transparent and consistent set of rules and criteria which can be adopted by housing organisations. It delivers an approach to governance frameworks and reporting that will be of far greater value to stakeholders including residents, lenders, investors, regulatory bodies and central and devolved government.
The Standard, which is voluntary, is designed to be used by both the social housing and financial sector. It provides for a consistent basis to implement and report ESG and sustainability in social housing.
What’s new in the Governance Code?
The 2020 Code reflects a change seen in other governance codes published recently toward greater stakeholder and community consideration and in this case evidencing wider social value, inclusivity, and environmental responsibility.
The Code explicitly addresses the social purpose function and funding models of social housing providers and the responsibility to protect and promote the interests of the residents and communities they service while maintaining public trust and safeguarding investment.
There is greater emphasis on equality, diversity and inclusion, environmental and social sustainability, the culture within an organisation, and accountabilities to stakeholders. Particularly a housing providers residents and customers.
The 2020 Code condenses eight principles of the 2015 Code to four core principles:
Within the Principles there are 15 additional governance considerations:
When to Implement the 2020 Code
Most organisations will choose to adopt the Code from the start of their 2021/2022 financial year. The board (and boards of subsidiaries) will need to consider and approve the adoption of the Code. A governance code change nearly always requires operational and resource expenditure.
How does the Code sit with the Sustainability Standard?
The purpose of the standard is to create a consistent comparable and transparent approach to assessing the ESG performance of housing associations. The Standard is over 12 themes divided into 48 Core or Enhanced criteria. The Standard explains that the Enhanced criteria may be seen as too challenging for small providers and therefore aspirational long-term goals.
Themes within the Standard chime with many of the objectives in the Code. Organisations may therefore decide it is beneficial to consider reporting against the standard when implementing changes to meet the 2020 Code.
How we can help
Good governance is an essential component to achieving success for your business.
Our expertise helps you ensure that good governance is at the heart of your organisation. Ensuring that you have the right oversight and controls in place so you can respond to your shareholders, investors and stakeholders with assurance.
Our experience spans from working with some of the worlds largest companies to SME’s, charities and start-ups. Whatever your size we provide personal and practical governance and corporate advice that reflects your organisational needs.
Governex is an ESG advisory business that helps businesses with corporate governance as well as answering the question of how they make positive contribution to the environment and social issues.
We help organisations implement the right shift in focus from a purely financial commitment to include environmental, social and governance commitments. All in the context of meeting business purpose, strategy, integrity and diversity.
Produced by Governex
2 Walker Street, Edinburgh, EH3 7LA | Tel: 0131 261 6630 | e-mail: firstname.lastname@example.org
Governex Limited. Registered in Scotland with Nr. SC654245. Reg Office: 4-5 Mitchell Street, Edinburgh, EH6 7BD
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
© 2020 Governex Limited.