Climate Change Data

Environmental Metrics

ESG Focus Areas

• Affordability and Security
• Building Safety and Quality
• Resident Voice
• Resident Support
• Placemaking
• Climate Change
• Ecology
• Resource Management
• Structure and Governance
• Board and Trustees
• Staff Wellbeing
• Supply Chain Management

Environmental Achievements

• 95% of new builds have EPC ratings A-B
• 65% A-C EPC rating of existing stock, compared to a sector average of 60%

Social Achievements

• Provided long-term funding at competitive rates to housing associations, reducing their debt costs.
• Supported over 1,000 people into work or skills training (Torus)
• Delivered over 500 health and wellbeing sessions (Torus)
• Provided over 2,000 urgent food parcels (Torus)
• Made almost 2,000 benefit advice referrals (Torus)
• Expanded care leaver scheme for 16-18 year olds, supporting 11 young people (Regenda)
• Assisted 323 people to find training or stable employment (Rooftop)
• Distributed 1,300 food parcels to vulnerable customers and £1.5m in additional benefits and grants (Regenda)

Governance Achievements

• All borrowers are registered with either the English or Welsh regulators.
• All but one borrower have the highest regulatory grading available.
• 56% of borrowers pay the Real Living Wage.
• Mean pay gap in the bLEND pool is 8.3%

Climate Goals & Targets

Environmental Challenges

• Decarbonising existing housing stock to net zero by 2050 at an estimated cost of £100bn.
• Ongoing shortage of truly affordable housing.
• Cost of living squeeze for existing tenants.
• Sector debt stands at £115bn and is expected to grow.

Mitigation Strategies

• Providing low-cost, long-term funding to housing associations to facilitate their own sustainability strategies.
• Borrowers undertaking retrofit works, including component replacements and fabric-first approaches, use of solar panels and battery storage systems.
• Targeting worst performing stock first for maximum benefit.
• Experimenting with biomass boilers or combined heat and power systems.
• Providing direct financial support to tackle fuel poverty.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Social Bond Framework (aligned to ICMA principles and SRS), Sustainability Reporting Standard (SRS) for social housing, UN Sustainable Development Goals (SDGs)

Environmental Metrics

ESG Focus Areas

• Affordability and Security
• Building Safety and Quality
• Resident Voice
• Resident Support
• Placemaking
• Climate Change
• Ecology
• Resource Management
• Structure and Governance
• Board and Trustees
• Staff Wellbeing
• Supply Chain Management

Environmental Achievements

• Almost all new stock from bLEND borrowers is to EPC B or higher.
• Many borrowers are making fabric-led interventions and boiler replacements, installing solar panels, water saving features, and air source heat pumps.

Social Achievements

• Delivered two projects to support tenants with managing their energy costs, resulting in estimated savings of £39,634 and 277 fuel vouchers totaling £15,148.12.
• Cobalt helped eight tenants gain employment, secured almost £1.5m in extra benefits for tenants, and established three food pantries saving each resident around £850 a year.
• Connect's Money Matters team saved tenants £617,508.
• Walsall Housing Group helped customers access £5,601,053 in unclaimed welfare payments and clear, reduce or reschedule debt to the value of £206,388.

Governance Achievements

• All bLEND borrowers have a compliant grading from the national regulator of social housing.
• Robust risk management procedures are in place, overseen by Boards and Audit/Risk Committees.
• Most borrowers had a board effectiveness review within the last two years.

Climate Goals & Targets

Environmental Challenges

• Gathering emissions data proved difficult for some associations.
• Not all borrowers were able to respond to every criteria in the SRS.
• Cost of living crisis, rising debt and development costs, and potential rent cap proposals.

Mitigation Strategies

• The SRS rollout accommodated varying levels of prior engagement on ESG among borrowers.
• Continued work with clients to engage with the SRS.
• Resilience and consolidation are emerging as key themes for the coming months.

Supply Chain Management

Responsible Procurement

• Consideration of social value and ESG in procurement processes.

Climate-Related Risks & Opportunities

Physical Risks

• Increased flood risk
• Increased risk of homes overheating

Reporting Standards

Frameworks Used: Sustainability Reporting Standard for Social Housing (SRS)

UN Sustainable Development Goals

• UN SDG 13: Climate Action

Supporting housing associations in decarbonising their stock and business operations.

Environmental Metrics

ESG Focus Areas

• Affordability and Security
• Building Safety and Quality
• Resident Voice
• Resident Support
• Placemaking
• Climate Change
• Ecology
• Resource Management
• Structure and Governance
• Board and Trustees
• Staff Wellbeing
• Supply Chain Management

Environmental Achievements

• Nearly all new housing stock certified to EPC “B” or “A”
• About half implementing retrofit works to enhance efficiency of existing stock
• Marginal improvements in EPC ratings of existing homes

Social Achievements

• Launched initiatives to support tenants experiencing fuel poverty (e.g., The Home Energy Project by Ateb)
• Supported 330 homeless adults through supported housing (Hightown)
• Provided around 3,500 food parcels and essential items to tenants struggling with cost of living (ForHousing)

Governance Achievements

• 12 out of 22 English borrowers rated G1/V1 by the English Regulator for Social Housing
• All but one borrower have a compliant grading
• Robust risk management procedures overseen by Boards and Audit/Risk Committees

Climate Goals & Targets

Environmental Challenges

• Supply chain issues
• Cost inflation
• Policy uncertainty from Government
• Inconsistent GHG emissions data reporting from borrowers
• Difficulties in initiating SRS reporting in older subsidiaries

Mitigation Strategies

• Monitoring and addressing areas where pool averages have decreased (e.g., Fire Risk Assessment compliance)
• Working with borrowers to improve GHG emissions data reporting consistency
• Focusing on improving internal processes and data precision for future ESG reporting
• Implementing a “comply or explain” approach for each criterion in the updated SRS Version 2.0

Supply Chain Management

Responsible Procurement

• Considering social value and environmental impact during procurement

Climate-Related Risks & Opportunities

Physical Risks

• Increased flood risk
• Increased risk of homes overheating

Reporting Standards

Frameworks Used: Sustainability Reporting Standard for Social Housing (SRS)

UN Sustainable Development Goals

• UN Sustainable Development Goals (SDGs)

Proceeds from bLEND’s social bond issuance are entirely on-lent to housing associations to support their core business activities, which are mapped against the UN SDGs.

Sustainable Products & Innovation

• Carbon neutral homes (Ongo)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Ecology
• Resource Management
• Affordability and Security
• Building Safety and Quality
• Resident Voice
• Resident Support
• Placemaking
• Structure and Governance
• Board and Trustees
• Staff Wellbeing
• Supply Chain Management

Environmental Achievements

• 3.5% increase in existing homes with EPC rating of "C" or above compared to 2022/23
• 5.9% increase in newly developed homes with EPC rating of "A" compared to 2022/23
• Over two-thirds of bLEND borrowers have a net zero target and strategy in place

Social Achievements

• 54.6% increase in new homes delivered by bLEND borrowers compared to 2022/23
• 2% improvement in the percentage of homes with completed fire risk assessments (99.8% in 2023/24)
• 7% increase in housing associations paying the Real Living Wage (87% in 2023/24)

Governance Achievements

• 80.6% of bLEND borrowers report that ESG risks are incorporated in their risk registers

Climate Goals & Targets

Environmental Challenges

• Inconsistencies in units used to report GHG emissions data
• Complexity and resource-intensity of calculating GHG emissions data
• Need for more guidance on materially harmful pollutants
• Difficulty in analyzing the sustainability of supply chains

Mitigation Strategies

• Improved consistency of units used for GHG emissions reporting in 2023/24
• Reassessment of GHG metrics to report bLEND pool totals for Scope 1, 2, and 3 emissions
• One-on-one discussions with housing associations to provide guidance on materially harmful pollutants
• Encouraging the use of responsibly sourced materials and sustainable practices in procurement

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Some housing associations include social value generation as a contractual requirement with their suppliers; others ask to see social value pledges and commitments.

Climate-Related Risks & Opportunities

Physical Risks

• Flooding, overheating

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: SRS Version 2.0

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed