Community housing organisations in Australia have made substantial strides in their environmental, social and governance (ESG) practices, according to the second annual review of the sector’s ESG Reporting Standard.
Released by Australian Community Housing, the review highlights a marked lift in reporting quality across the sector.
“Community housing provides stability and safety for hundreds of thousands of Australians whose needs can’t be met by the private rental market,” said Rebecca Oelkers, chair of Australian Community Housing.
“This report shows that positive social and economic impact is compounded by improved performance in sustainability measures that matter to tenants, communities and investors.”
The 2025 review analysed data from 17 major community housing organisations, collectively managing more than 54,000 homes — approximately 40 per cent of all social and affordable homes overseen by large providers.
Across 41 ESG criteria, 29 now receive complete responses from all organisations, up from just 18 last year.
Significant progress was observed in governance.
The number of organisations with Modern Slavery policies nearly doubled, and more organisations approved Reconciliation Action Plans.
None faced adverse regulatory findings.
On the environmental front, providers reported continued energy efficiency retrofits, solar panel installations and policy progress.
However, carbon emissions reporting remains an area of ongoing challenge for many.
Social performance continues to be a strength, with tenant satisfaction scores ranging from 74 to 96 per cent and generally low complaint rates.
Providers maintained robust tenant education programs and forged new partnerships with energy companies to help residents manage utility costs.
Oelkers emphasised that the standard is driving genuine changes, stating: “We’re seeing energy efficiency programmes that cut tenant bills, governance improvements that strengthen organisations, and better data that helps attract investment.”
Australian Community Housing is currently working on the second edition of the ESG Reporting Standard, with input from housing providers, financial institutions and industry partners.
The updated standard is slated for release in October 2025.
Adrian Harrington, Chair of the ESG Reporting Standard Interim Governance Group, commented: “This framework positions community housing as a credible investment option while driving real improvements in how we house Australians.
“The second-year results show this approach is working.
“The evolution of this standard will only make community housing a more attractive asset class to institutional investors.”
The Australian ESG standard was developed with SGS Economics and Planning and RITTERWALD, first launching in March 2023.
