Housing authorities are, by definition, social organizations. They ensure that people with lower incomes can live comfortably. They have long been collecting and reporting extensive information on the social aspect of their social responsibility.
But expectations go even further. Housing authorities are also being held accountable by tenants, municipalities, the national government, and society at large for good governance and for how they, as major property owners, are making their properties more sustainable. The challenge of making properties more sustainable is enormous: the majority of social housing units still have an unfavorable energy rating and must be addressed step by step in the coming years.
Aedes has developed a guide for this purpose, but in practice it is still rarely used in reporting. Housing associations report on social performance, but most organizations lack a comprehensive picture of their ESG performance—social, environmental, and governance.
A transportation company invests in more sustainable fuels or electric vehicles, but finds that customers are not willing to fully cover the higher costs. Due to the low profit margins in the transportation sector, this is often not financially attractive enough.
Housing cooperatives are not subject to the CSRD and have no formal obligation to report comprehensively on ESG. This makes it difficult to prioritize sustainability reporting internally, even as expectations from tenants, municipalities, and financiers continue to rise.
Without centralized reporting, there is a lack of insight into which measures have the greatest impact—financially, socially, and environmentally. Opportunities for energy savings, subsidies, or improved financing terms are missed because the business case is unclear.
By systematically analyzing ESG data, it becomes clear where the greatest opportunities lie: which measures yield the greatest energy savings, what subsidies are available, and how does the investment compare to the long-term return?
Financial institutions and banks are increasingly setting requirements regarding the sustainability performance of housing cooperatives. Cooperatives that can transparently demonstrate their ESG performance are eligible for more favorable financing terms, such as green loans and ESG-linked financing.
Aedes has developed a guide for housing cooperatives to report on sustainability—including social, environmental, and governance aspects. The guide provides a practical framework for achieving comprehensive ESG reporting, aligned with existing information flows and the Aedes benchmark. In practice, the guide is not yet widely known and is rarely used in annual reports. This presents an opportunity: housing associations that start now will be ahead of future expectations.
The National Performance Agreements set specific targets for housing cooperatives in the areas of sustainability, affordability, and availability. These agreements are translated into local performance agreements with municipalities and tenant organizations. For housing corporations, this means that sustainability goals are not merely non-binding aspirations but a regulatory obligation, with specific deadlines and accountability to the municipality and the national government.
The majority of the social housing stock has an unfavorable energy efficiency rating. Making these properties more sustainable is a massive undertaking: technically complex, costly, and politically sensitive, because rent increases resulting from these investments are often unaffordable for the target population. At the same time, energy costs for tenants are rising, which increases the urgency of making these properties more sustainable.
Housing authorities are required to provide housing for various target groups: status holders, people with care needs, and urgent cases. This sometimes leads to tension in neighborhoods and political debates about the allocation of scarce housing. At the same time, housing authorities are responsible for ensuring livable neighborhoods and strong social cohesion, which also requires monitoring and accountability.
Housing authorities depend on policy decisions made by the national government, ranging from the landlord levy to contributions to the National Performance Agreements. Shifting policies and uncertainty regarding funding make long-term planning difficult. At the same time, lenders are increasingly expecting certainty regarding ESG performance as a condition for favorable financing.
Together, we’ll assess the current situation: what ESG information is already available, what’s missing, which issues are most urgent, and which stakeholders—tenants, the municipality, and financiers—are asking the most questions? This forms the basis for a targeted approach.
Based on the baseline assessment, we determine which issues require the most attention and what a realistic roadmap looks like. We align ESG goals with the National Performance Agreements and the local performance agreements with the municipality.
We provide support in preparing a comprehensive sustainability report in accordance with the Aedes guidelines. Depending on your needs, Cooperate Green can take on project management or provide guidance to your team.
