What does ESG mean to us?
As a long-term investor into communities – we were founded more than 120 years ago – consideration of Environmental, Social and Governance (ESG) and other risks has been routinely embedded into culture and strategies, long before it became fashionable.
We believe robust, transparent, and comparable ESG reporting helps us on our way, enabling our funders, regulators, colleagues, partners, and residents to assess our risk position, and take a view on whether we're doing what we say we will. At the same time, it helps us better understand our business, manage key risks, and shape our future decisions.
As part of our ESG approach, we report against the Sustainability Reporting Standard for Social Housing (SRS) framework. The SRS is a sector-wide reporting standard co-designed in 2020 by housing associations and their funders to provide a comparable, consistent, and transparent approach for the sector. Southern was one of the founding members of the SRS working group and continues to support the Standard’s evolution.
How are we managing environmental risks and doing our bit to address climate change?
- 75% of our homes now have an energy efficiency EPC rating of ‘C’ or above
- 84% new homes achieved at least EPC B or above
- 9% reduction in our Scope 2 greenhouse gas emissions.
How are we managing social risks and driving positive social impact?
- 41%: our rents versus average market rents, resulting in a £567m market rent discount per annum
- £6.2m secured as added income, in grant, benefits and savings support for residents
- £600k was provided to residents in 2024/25 through our discretionary hardship fund, offering a safety net for residents in acute financial distress
- 4,951 households helped with money and guidance.
How are we ensuring our governance processes remain strong and rigorous?
- 4 roles on our board are filled by residents. This represents a third of the seats on our board
- Resident Scrutiny Panel, which led to us receiving the TPAS Scrutiny Assured Quality Mark with an exceptional 94% score
- 105 business supply chain partners with social value agreements.
SUSTAINABLE FINANCE FRAMEWORK
Our Sustainable Finance Framework creates a direct link between the way we are financed and our social purpose and sustainability goals.
It sets out our commitment to environmental responsibility, how our activities have a positive impact on people in our communities, and our robust governance framework.
Proceeds from the framework fund a range of sustainable and social projects, including retrofitting our existing housing stock, delivering new affordable housing and a wide range of community investment initiatives that secure better futures for households living in our homes.
Our ESG Programme Board oversees our Sustainable Finance Framework, and is responsible for selecting and allocating funds to eligible projects, assessing and reporting social and environmental impacts, and ensuring continued compliance with the framework.