Our commitment to ESG
As a leading housing association our social purpose and impact is significant. We’re conscious of the need to build more genuinely affordable homes, and in doing so we’re committed to ensuring our Environmental, Social and Governance (ESG) is strong.
How we’re embedding ESG in to our business
The ESG factors are a subset of non-financial performance indicators which include ethical, sustainable and corporate government issues, such as making sure there are systems in place to ensure accountability and managing our carbon footprint.
ESG has three central factors and we’re embedding these in to our business in the following ways:
- Environmental criteria examines how a business performs as a steward of our natural environment and we’re focusing on climate change, ecology and resource management
- Social criteria looks at how Sovereign treats people, and concentrates on our residents’ voice, support for residents, building safety and quality, affordability and security, and placemaking
- Governance criteria examines how we as a corporation police ourselves – how we’re governed - and focuses on structure and governance, our Board and Trustees, staff wellbeing and our supply chain management.
We’re proud early adopters of ESG
Sovereign are early adopters of the UK social housing – Building Sector Standard Approach for ESG Reporting and have committed to reporting against the standard on an annual basis.
The reporting standard evolved from the ESG Social Housing Working Group, a unique collaboration of 18 banks and investors, housing associations, service providers and impact investing organisations.
The Good Economy, a specialist impact advisory firm, led the process of researching and developing the ESG criteria, and a culmination of work led to the initial White paper.
HACT Social Value Measurement Approach
As a housing association we’re committed to using the Social Value Bank, and the HACT Value methodology to report on our Social Value.
The Social Value Bank is the largest bank of methodologically consistent values to measure the impact of activities from employment through to health. By working with HACT Value, we’re able to identify how and where social value is generated most effectively, from in-house projects to the value generated by the supply chain.
Tracey Barnes, Executive Director - Chief Financial Officer, Sovereign, said:
“The Sustainability Reporting Standard will play a pivotal role at Sovereign in our approach to performance reporting, enabling further transparency for our customers, investors, and other stakeholders. This will clearly drive environmental improvements and assure Sovereign’s clarity as an organisation of social purpose.”
HACT ‘A Sector Together’ Report
You can read the full report on the social housing sector and Covid-19 here.