As Environmental, Social and Governance (ESG) investing grows, consumers and investors alike look to engage with more sustainable businesses. With sustainability plans and strategies becoming a key part of an organisation’s future goals, it is important that Boards of directors be on the lookout for ESG risks. 

ESG risks may vary in their components, but they share a common factor: they greatly affect a company’s profitability and sustainability in the long run.

On the 22nd June 2023, Convene ESG exhibited at the Housing Governance Conference at the Royal College of Physicians, organised by the National Housing Federation. We want to thank all of the speakers and attendees for their engagement both online and in person, as well as the NHF for putting on a fantastic conference.

The conference is the sector’s only event specifically for Governance Teams and Company Secretaries to learn the latest legal, policy and regulatory updates and analyse their impacts.

The focus was on improving governance skills and performance, allowing delegates a space to reflect on how their organisation responds to crisis, and what skills and knowledge is needed to better prepare for the future.

The main goal of the conference was to establish what good governance looks like, at a time when the social housing sector is under enormous pressure. With governance teams finding themselves pulled in many different directions, Boards need to know they are meeting the requirements of the regulator, and of residents.

The topics that were discussed in the conference looked to emphasise the importance of flexibility and adaptation within the housing sector. There were several important talks throughout the day, including discussions on the use of data, resident voices, culture, Board succession, facilitating EDI conversations and more.

With ESG regulations on the horizon for many industries and sectors in the UK, and investors and consumers alike requiring organisations to have good ESG practices, it is important to understand how these efforts can be undermined.

The ‘E’ in ESG is particularly under fire, as an increase in greenwashing activity in recent years means that environmental efforts are being falsified. This makes it even harder to know exactly what sustainable improvements are being made, and who to hold accountable for this.

Housing Associations should care about greenwashing practices because environmental efforts being undermined can be damaging to the sector, its markets and the economy, as well as the planet.

However, before we dive into why you should take notice of greenwashing, let us first explore what greenwashing is and what it can look like.


What Is Greenwashing?

Greenwashing is the attempt to make a product, practice or even an entire organisation appear more environmentally friendly, ‘green’, and sustainable than it really is. 

The lines between genuine reporting on ESG efforts and greenwashing can be a little blurred, due to the evolving nature of the ESG landscape and its regulations, so it’s crucial to understand what actually constitutes greenwashing. 

Forms of greenwashing include:

As issues such as climate change threaten our planet, organisations are becoming increasingly aware of the damage they can have on the environment, and the efforts that must be taken to diminish these environmental impacts.

Managing environmental factors has become a core component of companies’ endeavours in investing more into Environmental, Social, Governance (ESG), its risks and its opportunities. 

ESG is a framework for doing ethical business, and understanding the ‘E’ in ESG means understanding how businesses interact with the environment, and what can be done to protect it.

On Thursday 27th April 2023, Convene sponsored Chartered Governance Institute’s annual ESG Summit in London. We want to thank the CGI as well as all speakers and attendees for participating in such an engaging Summit.

The ESG Summit focused on exploring the changing Environmental, Social and Governance landscape for Boards, and answering questions about how organisations can contend with developing regulations, both in the UK and globally.

There was a specific emphasis on how “the ‘G’ in ESG underpins and facilitates the ‘E’ and the ‘S’”, and how governance professionals are key in ensuring their organisations meet ESG standards. 

There were several compelling presentations, panels and case studies at the Summit, including talks about how governance is at the heart of establishing good ESG practices, how to tackle greenwashing accusations from a governance perspective and how to nurture a diverse Board and make sure inclusion policies are embedded throughout your organisation.

The Summit also facilitated many discussions about ESG reporting, from how organisations are responding to ESG disclosure requirements to how you can improve the quality of the ESG data collected.

This is where Convene ESG came in as a sponsor of the event.

Today, 22nd April, the world is celebrating Earth Day, but what is it exactly?  

Forbes estimates that organisations can save up to $4 million annually through automating simple processes with software. It has also been proven time and time again that investing in ESG saves you money. But why is this, and how can you apply this to your ESG reporting?

Housing Associations are paving the way for other sectors with their ESG efforts, but the task of ESG shouldn’t just fall on one ESG manager. ESG needs to be integrated into everyone’s day-to-day task management and governance processes. Here are our helpful tips on how this can be achieved simply and seamlessly.

In recent years, organisations have had to face increasing operational and compliance risks in both their industries and communities. 

One way to confront and address these issues is by utilising a sustainability lens, or an environmental, social and governance (ESG) lens.


What is ESG reporting?

ESG represents a theory that there is an ethical way to do business, and this method involves prioritising sustainability; focusing on the environment, being socially responsible and establishing transparent governance. 

ESG reporting refers to the disclosures of data on the organisation’s operations and how they function within ESG standards. 

These disclosures are a great way for organisations to demonstrate their ESG policies, practices, and performance, as well as communicating their goals to different stakeholders: customers, investors, employees, suppliers, lenders, and shareholders.

Reports should cover environmental impact (eg. water/energy usage, waste management, greenhouse gas emissions), social elements (eg. community involvement, labour and diversity practices), and governance (eg. compliance, political contributions, board structure).


Why is ESG important?

Creating a quality ESG report is important for demonstrating your organisation’s commitment to sustainability. 

ESG disclosures help further sustainability efforts and good governance practices, as well as enabling a stronger financial performance. The data found in these reports can assist organisations in aligning their purpose, strategy, and operations.

Shareholders and investors can also use ESG reports to understand the related opportunities and risks of the organisation, and see how the company creates sustainable returns and mitigates risks.

Additionally, ESG disclosures can be a useful tool for maintaining transparency. They can aid in shaping better environmental, social, and governmental practices for the future.


Is ESG Mandatory?

Universally, the answer is no, not yet. However, according to the International Sustainability Standards Board (ISSB), recently more global investors have been requesting transparency and quality ESG reporting.

While several countries have incorporated measures requiring mandatory ESG disclosures, it has not yet reached a global scale. Steps are being taken to create a worldwide framework for ESG reporting standards, in order to facilitate the standardisation of the ESG reporting process. 

One such step came in November 2021, when the IFRS Foundation established the International Sustainability Standards Board (ISSB). The ISSB is focused on generating global sustainability standards for investors for its participating countries.

Another example of this came at the end of June 2022, where the European Parliament and the Council (EU Member States) agreed to require the mandatory reporting on ESG  for a considerable number of companies operating on the EU market.

Large or listed subsidiaries of non-EU companies will have to report for fiscal year 2025 on the basis of European Sustainability Reporting Standards.


ESG Reporting in the UK

At present, the UK has no single ESG law or regulation. The UK’s ESG policy consists of domestic and EU-derived laws and regulations, many of which are not ESG-focused.

However, a key regulation for UK ESG disclosures is the Companies Act, as it includes requirements for annual reporting. These rules apply to larger companies that are listed, have more than 500 employees or exceed £500 million in annual turnover

Non-financial information has always been a requirement of annual reports, but in 2022, the Act was extended to include sustainability details. Large UK companies are now required to report on their energy use and carbon emissions as a part of their annual reports.

Some sectors and organisations of a certain size now have standards they may have to report against. For example, the Housing sector has the Sustainability Reporting Standard, which whilst currently optional is paving the way for industries to specialise and standardise their ESG reports.

Additionally, starting in 2023, ESG reporting in the UK will be further defined through Sustainability Disclosure Requirements (SDRs). These SDRs will provide a structure for organisations to manage sustainability opportunities, potential risks and impacts, as well as set specific metrics and targets. 

While the SDRs are rolled out over the next two years, fully mandatory disclosure is expected by 2025.


How Can Convene Help With Your ESG Reporting?

Here at Convene we have developed our own ESG reporting tool: Convene ESG. 

Our aim is to alleviate some of the challenges of ESG data gathering, performance tracking, and reporting for ESG factors so organisations can move towards global sustainability and net zero.

Designed in collaboration with our clients, Convene ESG makes reporting simple, so you can focus on developing sustainable strategies. 

Convene ESG can help you report on a range of existing standards including TCFD, GRI, the SRS amongst a range of others, and are always looking to expand.

It also has a built-in comparison feature, which allows you to compare against competitors' formatting of their publicly accessible reports. This will help your whole sector develop the best results possible.

To find out more about how Convene can help your organisation, you can read about our early adopters here or book a demo.

Organisations are increasingly looking for clear standards by which to assess their ESG performance. The GRI, or Global Reporting Initiative, was established to make sustainability reporting easier by creating a clear framework to follow.

Smaller Housing Associations have many important concerns, from safety to financing. Therefore, it is easy for more seemingly trivial matters like Environmental Social Governance (ESG) to get left to the wayside. However, the knock on social impact of not taking these issues seriously for your residents, particularly during this housing crisis, are dire. 

The Task Force On Climate-Related Financial Disclosures (TCFD) was set up in 2015 by the Financial Stability Board (FSB) as a set of recommendations. Many countries and trading blocs like the European Union, Singapore, Canada and Japan have adopted it as a regulatory framework. 

There are numerous reasons you may want to develop more sustainable buildings. In the long term, creating carbon neutral homes should benefit your organisation as well as your tenants.

Housing Associations in Australia have developed their own version of the Sustainability Reporting Standard for Social Housing (SRS). The reworking of the UK standard establishes guidelines for dealing with ESG concerns in Australia.