Equity Impact Reporting Project
Working towards a common approach to impact reporting for equity investors in social and affordable housing.
Overview
The Good Economy and Big Society Capital lead the Equity Investor Impact Reporting Project (EIP), a collaboration of investors and other market participants developing a common impact reporting framework for equity investors in social and affordable housing. The project working group is co-creating a framework and tools to measure, manage and report on the positive impacts of equity investment in social and affordable housing and mitigate any negative impact risks.
The framework allows investments to be assessed according to key social and environmental issues pertinent to the social and affordable housing sector. These include housing affordability, social care provision and the zero carbon agenda.
An initial position paper explored the role of equity in social and affordable housing and seek to create a common language to categorise the various models, and consider their approach to risk, return and impact.
The collaboration will seek to build consensus on a standardised set of impact objectives, impact strategies and reporting metrics. This will inform an impact management ‘Best Practice Guide’, which will be based on the Operating Principles for Impact Management.
The Impact of Equity Investment in Affordable Housing
Over the last decade, equity-backed investment models have become a small but increasingly significant part of England’s affordable housing landscape. But with growth comes a responsibility to show – clearly and credibly – what difference this capital is making.
This inaugural Sector Insights Report from The Good Economy and Better Society Capital brings together impact data from six UK Investment Fund Managers (IFMs) investing equity into affordable housing. The aim is to improve transparency in a rapidly growing part of the market and to test where institutionally backed Registered Providers (RPs) are adding value versus the wider affordable housing system.
The report sits in a context where traditional not-for-profit housing providers are capacity-constrained, increasingly diverting resources into existing-stock remediation (repairs and safety), while the UK faces a large and growing need for affordable homes. Equity-backed models are positioned as a crucial supplement to public funding and housing association delivery, but their legitimacy depends on credible impact evidence.
Initial Outputs
In July 2021 the Equity Impact Reporting Project published two reports:
The Good Economy is interested in speaking to all stakeholders of equity-based investment models in social and affordable housing. If you like to know more about the project or express an interest to be involved, please contact Andy Smith, head of housing impact services at The Good Economy.
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