SRS 2.0 – Are You Ready?

The Sustainability Reporting Standard for Social Housing (SRS) has been the go-to ESG reporting framework for the UK’s social housing sector ever since its launch in 2020. Launched by and for the sector, the SRS has over 150 official adopters and many more formal endorsers at the date of publication.

With the broader ESG reporting landscape developing at lightning speed, Sustainability for Housing (SfH), who oversee the SRS, are constantly walking the tightrope of evolving the Standard to align with changing best practice and keeping it consistent to allow for year-on-year comparisons. To this end, after an extensive consultation period, SfH launched SRS Version 2.0 in October 2023. This updated version of the SRS will be reported against by housing associations for the first time in autumn 2024.

With SRS Version 2.0 coming later this year, housing associations should be doing what they can now to prepare to report against the updated Standard. As a staunch supporter of the SRS and the social housing sector, The Housing Finance Corporation (THFC) is committed to doing what it can to help its borrowers get ready for these changes.

On 16^th April, THFC held a special webinar for its bLEND borrowers on the subject of “Are You Ready for SRS Version 2.0”? In this online event – which was hosted by Danielle Hughes, ESG Strategy and Communications Manager at THFC, Andy Smith, Head of Housing Impact Services at The Good Economy, and Luke Cross, Director (London) at Social – attendees heard about the changes coming in SRS Version 2.0, as well as the process that took place to create the updated Standard. Attendees also had the opportunity to ask questions.

The webinar commenced with a presentation from Andy on the history of the SRS, the process that was followed to create Version 2.0, and the key changes being rolled out, in addition to an overview of the consultation feedback.

As Andy explained in his presentation, 3 main principles were adhered to during the creation of the initial version of the SRS, and 3 additional principles were followed during the making of Version 2.0.

Key principles of the SRS Version 1.0:

Where possible, use criteria that are already being measured and recorded by housing providers
The criteria should work for small and large housing providers
Focus on questions that are material

Additional principles for SRS Version 2.0:

The number of criteria can’t increase beyond 48
The criteria should evolve to reflect emerging best practice
Where possible, criteria should be kept consistent to allow year-on-year comparison

Andy also discussed the key changes between SRS Version 1.0 and SRS Version 2.0. These include:

An expectation that housing providers report year-on-year results in order to demonstrate performance over time
Removal of the core/enhanced criteria distinction and reliance on a “comply or explain” approach
Additional “enhanced reporting options”, which are optional but represent emerging best practice
The requirement to disclose if an SRS report has been through an external validation process
The re-ordering of the 3 ESG themes to E-S-G.

To close his presentation, Andy reflected on the ongoing role of SfH and stated the organisation’s aim to play a more active role in supporting adopters of the SRS. He also advised listeners that, in order to keep up with the quickly changing ESG landscape, it is likely that the SRS will require minor updates on an annual basis going forward.

Danielle’s presentation focused on bLEND’s annual aggregate SRS report and the more granular changes to the “Environment” (E), “Social” (S), and “Governance” (G) themes within the Standard. bLEND published its third consecutive SRS report, which reflects the collective ESG disclosures of the bLEND pool, in November 2023.

Key changes to the “E” section include a focus on net zero plans and targets, “enhanced reporting options” regarding SAP ratings and other energy intensity ratios, and optional biodiversity metrics.

The “S” section now features expanding criteria on stock quality, a new qualitative question regarding management of damp and mould, and questions that align with the new Tenant Satisfaction Measures (TSM) regime. It also includes a qualitative question on the management of homes that fail to meet the relevant national housing quality standard.

As for the “G”, there are several new questions regarding Diversity, Equity, and Inclusion (DEI), incorporation of the resident voice to board level, and professional development for staff. To help manage the reporting burden for housing providers and prevent the overall number of criteria from surpassing 48, some “static” criteria that are reported elsewhere were removed.

THFC recognises the power of ESG reporting when it comes to driving real, positive change, as well as the significant effort required to report against the Standard each year. As the leading aggregator to the social housing sector, THFC is committed to supporting its borrowers through their ESG reporting journeys and encourages anyone in need of ESG support to get in touch with Danielle Hughes at Danielle.Hughes@thfcorp.com.