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 & trustees
• Staff wellbeing
• Supply chain

Environmental Achievements

• Switched to certificated zero carbon electricity for more than 6,000 supply points, reducing direct carbon emissions by >25%
• Reduced office area footprint by nearly 36%, reducing indirect carbon emissions
• Retrofitted 3,188 homes, saving 1,718,320 kg CO2 and £470,515 in bills for residents
• 94% of new build properties completed with a minimum EPC rating of B

Social Achievements

• Clarion Futures invested £13.7 million, delivering £107 million in social value
• 2,558 people supported into work through Clarion Futures
• 215 people placed into apprenticeships through Clarion Futures
• 13,998 digital skills support interventions delivered through Clarion Futures
• 3,820 residents supported with one-to-one money guidance and energy advice through Clarion Futures
• More than 8,000 residents supported by tenancy sustainment team
• Enabled residents to receive more than £1 million in extra income from benefits
• Over 80,000 calls to vulnerable households to check on their wellbeing during the pandemic

Governance Achievements

• Retained highest regulatory gradings (G1/V1) from the Regulator of Social Housing
• Adopted the NHF’s Code of Governance 2020 and is working towards compliance
• Invested £27 million in fire safety in 2020/21

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic impacting access to homes and service delivery
• Financial struggles of residents due to the pandemic
• Challenges with electric van range and charging
• Assessing Scope 3 upstream emissions

Mitigation Strategies

• Adapted ways of working to continue repairs service and provide remote support
• Provided emergency fuel vouchers and extended credit lines
• Provided one-to-one advice and support to residents
• Provided laptops and MiFi devices to residents
• Established Covid response grant programme
• Rolling out the planned expansion of the electric fleet

Supply Chain Management

Responsible Procurement

• Social value and environmental impacts considered in major procurements
• FSC/PEFC certification on all timber products
• Contractor targets for carbon emissions and waste

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), Sustainable Housing Finance Framework, Certified Sustainable Housing Label, UN Sustainable Development Goals

UN Sustainable Development Goals

• SDG 1: No poverty
• SDG 3: Good health and wellbeing
• SDG 4: Quality education
• SDG 8: Decent work and economic growth
• SDG 10: Reduced inequalities
• SDG 11: Sustainable cities and communities
• SDG 12: Responsible consumption and production
• SDG 13: Climate action
• SDG 15: Life on land

Clarion's work aligns with these SDGs through various initiatives described in the report.

Awards & Recognition

• Gold level Procurement Excellence Programme award

Environmental Metrics

ESG Focus Areas

• Sustainability
• Climate Change
• Energy Efficiency
• Building Safety
• Diversity and Inclusion

Environmental Achievements

• Upgraded energy efficiency of around 120 homes in a pilot project for the government’s Social Housing Decarbonisation Fund.
• Spent £40 million on fire safety work.
• Awarded £5.2 million to upgrade a further 450 homes in Fenland, Merton, and Tonbridge and Malling.
• New homes have a minimum EPC rating of B and will be zero carbon compatible by 2025.
• Using certificated zero carbon electricity for all central electrical energy supply contracts.

Social Achievements

• Helped 3,717 customers secure employment, including 160 apprenticeships.
• Helped 114 people set up their own business.
• Provided personalised money guidance to 3,945 residents.
• Supported 3,022 residents through independent debt advice partners.
• Launched Clarion Relief pilot scheme to prevent evictions.
• Launched Hometruths House project to support younger residents.
• Achieved 83.4% overall customer satisfaction.
• Achieved 90.5% repairs satisfaction.
• Delivered 68 apprenticeships as a result of development projects.

Governance Achievements

• Retained the highest possible ratings from its regulator, both for governance and viability (G1/V1).
• Adopted the NHF Code of Governance 2020.
• Successfully raised £300 million in a 30-year sustainable bond issue.

Climate Goals & Targets

Environmental Challenges

• Increased scrutiny on the maintenance and quality of homes.
• Cyber security incident in June 2022.
• Soaring price of energy.
• Skills shortage in key areas.
• Supply chain disruptions.
• Cost of living crisis impacting residents.

Mitigation Strategies

• Implemented processes to adapt quickly, put things right and share learning.
• Engaged cyber security partner and external experts to restore systems.
• Continued emergency repairs, heating and hot water repairs, planned investment and critical safety checks.
• Communicated with residents through letters, drop-in sessions, calls and visits.
• Investing in energy efficiency upgrades.
• People Strategy, graduate and apprenticeship schemes, recruitment training.
• Thorough due diligence processes, diversification of contracts, contingency planning.
• Customer Strategy, diverse communication channels, policies, procedures and training.
• Preventative and detective cyber security controls, multi-factor authentication, data assessment and classification.

Supply Chain Management

Responsible Procurement

• Online portal for prospective suppliers
• Feedback process for suppliers
• Joint venture partnerships
• Global 30-day payment terms

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Streamlined Energy and Carbon Reporting (SECR)

Awards & Recognition

• Gold Award for Occupational Health & Safety
• President Award for Clarion Response

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Waste Reduction
• Water Efficiency
• Social Value
• Community Engagement
• Health and Safety
• Affordable Housing
• Job Creation
• Diversity and Inclusion
• Placemaking
• Sustainable Transport

Environmental Achievements

• 99% of completed new homes have an EPC rating of A or B
• 19.6% of completed new homes are heated without the use of fossil fuels
• 37% of completed new homes connected to solar PV systems
• 203.9 kW of solar electricity generation installed
• 178 MWh of solar electricity generated per year from new installations – saving of £59,000 from electricity bills
• 99% of waste from construction sites diverted from landfill
• Over 300% increase in the number of trees on the completed development sites
• 70.3% of trees retained during development, 453 new trees planted, resulting in a 328% increase in trees after development.

Social Achievements

• 63 new construction apprenticeships created on our projects
• 91.8% customer recommendation
• Affordable housing provision 143.9% higher than Local Authority minimum
• Brompton Cycle Hire scheme offered to residents
• Temporary accommodation provided for homeless individuals
• 1,352 referrals for young person social prescribing service in 2022

Governance Achievements

• Sustainability performance data and recommendations presented to the board at regular intervals
• Dedicated Sustainability Committee meets quarterly to review performance and shape targets
• Sustainability is a key part of business objectives for all departments

Climate Goals & Targets

Environmental Challenges

• High levels of water stress in some areas
• Industry benchmark of 148 m³ per £million project-spend on site water usage
• Meeting ambitious decarbonisation targets
• Achieving zero waste to landfill by 2025

Mitigation Strategies

• Minimum standard for water efficiency of 105 litres per person per day, reducing to 90 litres by 2025
• Target of 80% reduction in site water usage by 2025
• Detailed roadmap for net zero carbon by 2050
• Target of zero waste to landfill by 2025 on development projects

Supply Chain Management

Supplier Audits: Monitored and audited through the Achilles platform

Responsible Procurement

• Supplier code of conduct
• Requirement for FSC or PEFC certification for all timber

Climate-Related Risks & Opportunities

Physical Risks

• Flood risk
• Overheating risks
• Water supply restrictions

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: Next Generation Benchmark, UN Sustainable Development Goals, BREEAM, Home Quality Mark, Passivhaus, LETI

Certifications: ISO 45001, ISO 14001, FSC, PEFC

Third-party Assurance: Not disclosed

Sustainable Products & Innovation

• Modern Methods of Construction (MMC) technologies

Awards & Recognition

• 3rd Place in Next Generation benchmark 2022
• Next Generation benchmark Silver Award 2022
• Building With Nature Full Award – Sutton Dwellings
• Rospa safer by design award for product book homes
• Gold Award for customer satisfaction

Environmental Metrics

ESG Focus Areas

• Affordable housing
• Sustainability
• Community development
• Energy efficiency
• Net-zero carbon emissions

Environmental Achievements

• Over 5,000 Clarion homes fitted with energy-saving features
• More than £100m invested in decarbonisation to improve energy efficiency in homes
• Aiming to achieve net zero carbon emissions across operations by 2050

Social Achievements

• Built 1,538 homes in the past year
• Clarion Futures awarded nearly £600,000 in grants to support residents and communities
• Launched a £500,000 Cost of Living Emergency Fund
• £131m delivered in social value

Governance Achievements

• Regulated by the Regulator of Social Housing
• Any surplus reinvested back into homes and communities

Climate Goals & Targets

Environmental Challenges

• Housing crisis
• Maintaining existing homes
• Improving customer service for repairs

Mitigation Strategies

• Investing in repairs (£1m/day)
• Transforming repairs system for improved customer service
• Undertaking major regeneration programmes
• Detailed roadmap to deliver net zero carbon by 2050
• Partnerships such as the Social Housing Decarbonisation Fund (SHDF)

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Sustainability
• Net Zero
• Building Safety
• Diversity & Inclusion
• Community Investment

Environmental Achievements

• Retrofitted more than 5,000 homes
• Fleet-wide adoption of Lightfoot telematics system, resulting in 7% fuel savings and CO2e emissions reductions
• Company car fleet now comprises 47% alternative fuel vehicles (12% EV and 35% hybrid)

Social Achievements

• Customer satisfaction exceeded target at 83.8%
• Clarion Futures worked with more than 6,000 households to help them manage their money
• Clarion Futures distributed more than £1.5 million in funding to organisations including food banks, community groups and local charities
• Expanded warm spaces programme to over 50 locations
• Almost 8,000 people were helped into jobs, training, or self-employment
• Significant improvement in ethnic minority representation in leadership roles (13.98% from 8.35%)
• Median gender pay gap of 4.94% (below the 14.3% national average)
• Median ethnicity pay gap of 0.39%

Governance Achievements

• Received highest possible rating of G1 for governance from the Regulator of Social Housing
• Introduced a new customer committee comprising six residents to shape and improve services

Climate Goals & Targets

Environmental Challenges

• Increasing supply chain costs
• Significant regulatory changes
• Growing need for investment in existing homes
• Contractor insolvencies
• Changing fire safety regulations
• Unprecedented delays in the planning system
• Cost-of-living crisis impacting residents
• Difficulties in accessing mental health support and adult social care
• Intense media and political scrutiny of housing associations
• High inflation
• Rent cap limitations
• Slow housing market
• Supply chain pressures
• Cyber threats
• Increased scrutiny of the social housing sector
• Unprecedented demand for repairs

Mitigation Strategies

• Careful financial planning and stress testing
• Responding to consultations and influencing policy
• Redesigning projects ahead of new legislation
• In-sourcing repairs service
• Streamlining processes to improve efficiency
• Enhanced vulnerability recording and support for vulnerable residents
• Proactive communication with residents
• Implementing a refreshed risk policy and methodology
• Strengthening cyber security measures
• Investing in learning and development
• Developing crisis leadership capability
• Moderating development programme to respond to market uncertainty
• Diversification of contracts
• Regular strategic and performance reviews for critical suppliers
• Implementing improvement to data collection and performance on waste generation
• Climate-related risk exposure assessment
• Delivery of Customer Strategy
• Liquidity policy
• Prudent treasury policies and procedures
• Funding strategy
• Long term business plan

Supply Chain Management

Responsible Procurement

• Supplier Due Diligence policy
• Procurement and contract management programme training
• Due diligence management system

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Sustainability Reporting Standard (SRS) for social housing, Streamlined Energy and Carbon Reporting (SECR)

Sustainable Products & Innovation

• Zero Bills development in Newport, Essex

Awards & Recognition

• Gold Award for customer satisfaction at the Housebuilder Customer Satisfaction awards (Latimer)