Community housing providers are building to higher social, environmental and governance standards (ESG), a review of a new reporting framework has found.
Within three decades, one in seven Australians could be living in community housing, according to a report released on Monday.
The first annual review of a groundbreaking, but still voluntary, standard found fewer complaints and more green spaces.
However, there was room for improvement on accurately reporting carbon emissions and getting First Nations peoples into boardrooms.
Community building initiatives and neighbourhood improvements, known as “place-making”, meant early adopters of the standards were helping tenants to feel safe and have a sense of belonging.
These included plant workshops and garden competitions, school holiday activities, community markets, installing public art, and better shared spaces.
Based on data from 14 community housing organisations, managing about 44,000 properties, the ESG standard has led to a greater focus on energy efficiency upgrades.
With the nation’s housing stock often leaving the poorest in the cold during winter and sweltering through summer, four reported installing quality insulation to address energy efficiency.
Renters were also more likely to be given information about energy conservation and sustainability practices, the review found.
All providers surveyed relied on a combination of retrofits – gas replacements, installation of solar panels and energy-efficient heating and cooling systems – and design to improve energy efficiency.
Often out of reach for tenants, six organisations said they were undertaking retrofits to install solar and replace appliances.
Most community housing organisations paid above the minimum wage under relevant awards but there was still a gender pay gap, although one reported a gender pay gap of 70 per cent in favour of women.
According to review, it is no longer tenable for lenders and investors to dismiss as “peripheral” the factors that shape society and a low-carbon economy.
To help fix the housing crisis and meet annual demand for 36,000 new social and affordable homes nationwide, public and private investment will be required.
The standards were loosely based on a British reporting framework and financial institutions want more guidance on incorporating them into Australian lending and investment.
Community Housing Industry Association chief executive Wendy Hayhurst said Australia was in the early stages of what may be a wave of investment in social and affordable housing.
“It’s driving real improvements in how we operate … but also makes community housing a more attractive proposition for investors,” she said.
The review questioned the role of Australia’s $3.5 trillion superannuation system after the National Housing Accord committed to building 10,000 affordable homes.
Ten superannuation funds and associations are parties to the accord, but some are wary of the “unproven” investment class.
