In 2023, the ESG Reporting Standard for Australian community housing was launched with the conviction that more can and must be done to highlight the central role of quality, affordable housing in the lives and livelihoods of all Australians.
One year later, we reflect on the success and spirit of what we have achieved over the past year. We knew the road ahead needed to promote widespread use and trust in the standard as a reliable tool for shaping investments and decisions.
At the organisational level, we acknowledged that producing an annual sustainability report was a first-of-its-kind undertaking for many Adopters, requiring collaboration across the business. We recognised that sourcing data, indicator measurement, and monitoring ‘performance’ at the sector scale can feel a world removed from the humanity of meeting tenant needs. After all, the right to adequate housing is a fundamental human right. At the community level, we continue encountering outdated systems primed to reward short-term gains and which have shaped narrow conceptions around the broader benefits of housing.
But the tide is shifting. Our efforts to develop and implement the ESG Reporting Standard have brought together diverse skills and sectors, ideas and perspectives coalescing into a movement for better housing outcomes.
The 14 housing Adopters who reported their ESG data in Year 1 collectively own and manage 44,500 properties across Australia, representing over a third of all properties of the 100 largest providers nationally.
The first Annual Review highlights several achievements the sector can be proud of. Community housing providers are leading the way in creating social value. Beyond housing, most Adopters connect tenants to essential support services, such as employment assistance and financial wellbeing programs, ensuring equitable access to opportunities many take for granted. They also engage in placemaking and community-building efforts to enhance public spaces and foster a stronger sense of community.
Providers are also addressing the decarbonisation challenge, upgrading their properties to improve energy efficiency, reduce tenant costs, and educate tenants on sustainability practices. Additionally, they demonstrate strong governance, with no adverse regulatory findings, pay above award rates, and are actively working on Reconciliation Action Plans and closing the gender pay gap.
The first Annual Review also identifies several areas underpinning a future focus, including calculating carbon emissions, monitoring homes’ energy rating performance within diverse portfolios, and reporting on Board and workforce diversity. These challenges are not unique to the community housing sector but are areas ripe for sector leadership and innovation.
It is critical to value these findings and the foundations laid in a year. The sector’s significant strides in ESG reporting have undoubtedly nudged away some cultural and practical barriers to getting started.
Looking ahead to the future, we know there are key success factors in scaling the adoption of the Standard to grow the community of 37 Adopters and Supporters. Having a clear sense of why, understanding how we improve quality reporting, and supporting Adopters and Supporters must all be part of the plan.
We are guided by three beliefs as we plan and prepare for the next phase of ESG implementation:
- ESG reporting matters because it generates tangible benefits. A transparent and credible record of sustainability performance helps attract finance and raise provider competitiveness in gaining funding support. We have heard these reflections clearly from the 118 housing associations in the UK, many of whom are now in their third year of reporting against the Sustainability Reporting Standard for Social Housing.
- ESG reporting is at the heart of sector capacity building. It nurtures an organisational culture that is motivated by and makes decisions based on the value of long-term outcomes. The process must not become the point of the exercise; we should keep our sights on the ‘why’ and be open to refining it to suit emerging needs and circumstances.
- ESG reporting makes data and insights more visible. It enables housing providers to interface with broader industry stakeholders, meeting fast-evolving expectations around transparent sustainability commitments. At the same time, the potential of this data should not be underestimated. Its application to analysis showcasing housing as a key determinant of social, economic, and environmental health and wellbeing would convey what we have known: the fuller story of housing as an essential infrastructure for all Australians.
The first year of the ESG Reporting Standard has laid a solid foundation for transformative change in community housing. We've seen progress in social impact, environmental responsibility, and governance, driven by collaboration and a commitment to long-term outcomes. As we continue to scale adoption and refine reporting, we are shaping a future where quality, affordable housing is recognised as essential infrastructure for all Australians.
