The Shift
The Shift
2024
## 📜 Context The document titled "The Shift: Investor Guidelines - Aligning Residential Real Estate with Human Rights and Social Values" was published in October 2024 by The Shift, an organization dedicated to promoting housing rights. The guidelines aim to assist institutional investors in the residential real estate sector in aligning their investment strategies and business practices with human rights principles and the social value of housing. This initiative arises at a time when there is an increasing recognition of the necessity for human rights due diligence, particularly within the housing sector. ## 🏠 Housing Crisis and Investment The guidelines highlight the growing tension between viewing housing as a financial asset versus a place to live. The financialization of housing has led to adverse outcomes, such as rising rents, increased evictions, unnecessary renovations, and diminished services for residents. Moreover, the real estate sector is identified as a significant contributor to climate change, responsible for 37% of global energy-related CO2 emissions. ## ⚖️ Human Rights Standards The guidelines establish essential human rights standards for housing, which include: - Affordability: Housing costs should not impede access to other basic needs. - Accessibility: Housing must be available to diverse households. - Security: Tenants should be protected from arbitrary evictions. - Habitability: Properties must be in good repair, adequately sized, and offer protection from environmental elements. - Sustainability: Housing should be environmentally responsible. ## 📈 Key Recommendations for Investors The document outlines five crucial recommendations for investors: 1. Commit to business practices that recognize the social value of housing. 2. Enhance transparency regarding human rights and environmental impacts. 3. Evaluate the effectiveness of measures and establish remedial procedures. 4. Engage meaningfully with all stakeholders. 5. Contribute positively to housing's social value while avoiding legal exploitation. ## 🌍 Business Case for Implementation Implementing these guidelines can mitigate investment risks, enhance corporate reputation, and lead to more stable tenancies. Additionally, it aligns with emerging trends in Environmental, Social, and Governance (ESG) criteria and impact investing, while also supporting climate commitments. ## 🔑 Significance The guidelines represent a paradigm shift in real estate investment philosophy, advocating for a balance between profit-driven motives and social responsibility. They offer practical frameworks for investors to adapt to evolving expectations and contribute to solutions for urgent social and environmental challenges, particularly relevant amidst the global housing crisis and increasing regulatory scrutiny of business impacts on human rights.
This document titled "The Shift: Investor Guidelines - Aligning Residential Real Estate with Human Rights and Social Value" was published in October 2024. It appears to be authored by The Shift, an organization focused on housing rights, though specific authors are not directly named in the document.
Key Context
The guidelines were created to help institutional investors in residential real estate align their investment and business practices with human rights principles and social value of housing. They come at a time when there is growing recognition of the need for human rights due diligence in business, particularly in the housing sector.
Main Findings
Housing Crisis and Investment
- There is increasing tension between housing as an asset and housing as a home
- Financialization of housing has led to higher rents, increased evictions, unnecessary renovations, and reduced services
- The real estate sector contributes significantly to climate change, generating 37% of energy-related CO2 emissions globally
Human Rights Standards Housing should be:
- Affordable (costs should not compromise other basic needs)
- Accessible (available to diverse households)
- Secure (protection from arbitrary eviction)
- Habitable (good repair, adequate space, protection from elements)
- Sustainable (environmentally conscious)
Five Key Recommendations for Investors
- Commit to business practices that recognize housing's social value
- Enhance transparency regarding human rights and environmental impacts
- Assess effectiveness of measures and create remedial procedures
- Meaningfully engage with all stakeholders
- Actively contribute to housing's social value while avoiding exploitation of laws
Business Case for Implementation
- Mitigates investment risks
- Enhances corporate image
- Leads to more stable tenancies
- Creates positive socio-economic impacts
- Aligns with growing ESG and impact investing trends
- Helps meet climate commitments
Significance
This document represents a significant shift in thinking about real estate investment, pushing for a transformation from purely profit-driven approaches to ones that balance financial returns with social responsibility and human rights. It provides practical guidelines for investors to make this transition while maintaining viable business models.
The guidelines are particularly relevant given the global housing crisis, increasing regulation of business human rights impacts, and growing interest in responsible investing. They offer a framework for investors to adapt to changing expectations while contributing to solutions for pressing social and environmental challenges.