The housing sector is currently undergoing a significant shift towards sustainable financing, with Clarion leading the way by implementing a groundbreaking Sustainable Housing Finance Framework in partnership with the International Capital Markets Association (ICMA) and the Loan Markets Association (LMA).
Aligned with the ICMA principles on green, social, and sustainable bonds, as well as the LMA green and social loan principles, this new framework aims to provide transparency on how investor funds will be utilised for eligible projects. Each project category is assessed based on its alignment with the sustainability reporting standard for social housing, UN sustainable development goals, and Clarion’s own sustainability strategy.
In 2019, Clarion made history as the first registered provider in the sector to establish a sustainable housing finance framework. Since then, the framework has guided how Clarion allocates the £950m of funding raised in the capital markets, ensuring that investors are aware of the financial benefits as well as the social and environmental impact of their investments.
Andrew Hill, Clarion’s director of treasury and corporate finance, expressed his enthusiasm about the new Sustainable Housing Finance Framework, stating that it solidifies Clarion’s commitment to making a positive difference in society through delivering significant environmental and social value. According to Hill, the publication of this framework serves as a clear demonstration of how investors enable Clarion to achieve its purpose.
Miles Lewis, director of sustainability at Clarion, also highlighted the crucial role that investors play in supporting the organisation’s sustainability strategy. Lewis expressed satisfaction in collaborating closely with the treasury team to develop a finance framework that will ultimately contribute to the betterment of residents, employees, and the environment.
In addition to the momentum towards sustainable financing, there are other key developments taking place in the housing market that are shaping the sector’s landscape. The Finance Professional Show 2023, for example, promises to offer valuable insights and opportunities for industry professionals to stay abreast of the latest trends and strategies.
Furthermore, the resurgence of optimism in the housing sector has sparked a keen interest in replenishing land pipelines among housebuilders. This renewed confidence in the market presents a wealth of opportunities for stakeholders to explore, driving growth and innovation within the industry.
On a less optimistic note, former employees of a contractor that has gone into liquidation are still awaiting a total of £72,000 in unpaid wages after five years. This serves as a stark reminder of the challenges and risks faced by individuals in the construction and housing industry, underscoring the importance of ethical and sustainable practices across all facets of the sector.
In essence, Clarion’s Sustainable Housing Finance Framework represents a significant step forward in promoting transparency and responsible financial practices within the housing market. With the implementation of such innovative initiatives, the industry as a whole can work towards a more sustainable and socially conscious future.