2024
The Shift and others
The document titled "Investor Guidelines: Aligning Residential Real Estate with Human Rights and Social Values" provides a framework for institutional investors to align their practices with human rights principles in the housing sector. It highlights the growing tension between housing as an asset and a home, exacerbated by the financialization of real estate, which contributes to issues like rising rents and climate change. Key recommendations include committing to social value in business practices, enhancing transparency, and engaging with stakeholders. The document argues that aligning investments with social responsibility not only mitigates risks and enhances corporate image but also responds to the increasing demand for responsible investing. This shift in approach is crucial in addressing the global housing crisis and meeting evolving expectations for human rights and environmental sustainability in investment strategies.
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.