Clarion announces new Sustainable Housing Finance Framework
Clarion Housing Group has published a new Sustainable Housing Finance Framework, which meets investors’ growing needs around reporting and transparency.
Clarion’s sustainability credentials and its position as the most sustainable not-for-profit housebuilder in the country (according to the NextGeneration benchmark) has made the Group a trusted partner of government and business. In 2022, Clarion became the single biggest partner of the Social Housing Decarbonisation Fund, and in late 2023 the Group’s housebuilder Latimer achieved a NextGeneration Gold award for its continued commitment to driving sustainability in affordable house building.
Clarion was the first registered provider in the sector to establish a sustainable housing finance framework in 2019. This framework has governed how we use the £950m of funding we have raised in the capital markets since that time, ensuring that our investors know the social and environmental benefits from their investment as well as the financial ones.
The new framework, published today, aligns with the International Capital Markets Association (ICMA) principles on green, social and sustainable bonds, and the Loan Markets Association (LMA) green and social loan principles. It sets out clearly the eligible projects that investors monies will be used for, showing how each category of project aligns to the Sustainability Reporting Standard (SRS) for Social Housing, UN Sustainable Development Goals, the EU Taxonomy (ahead of the UK Taxonomy being finalised) and Clarion’s own Sustainability Strategy.
DNV Business Assurance Services UK Limited (DNV) have independently completed a ‘second party opinion’ of the framework, and concluded it achieves the alignment to the ICMA and LMA principles noted above.
Andrew Hill, Clarion’s Director of Treasury and Corporate Finance, said:
“Clarion’s purpose is to make a difference, and we do that by delivering significant environmental and social value. I am delighted to publish this new Sustainable Housing Finance Framework which clearly demonstrates how our investors enable us to deliver on our purpose.”
Miles Lewis, Clarion’s Director of Sustainability, said:
“I recognise the important role our investors have to play in order for us to deliver on our Sustainability Strategy. I am pleased to have had the opportunity to work closely with our treasury team in constructing a finance framework which will help us deliver for our residents, our people and the planet.”