The Shift
The Shift
2024
🏠 Context and Purpose The document titled "The Shift: Investor Guidelines - Aligning Residential Real Estate with Human Rights and Social Value," published in October 2024, is authored by The Shift, an organization dedicated to advocating for housing rights. This publication emerges amid an escalating global housing crisis and increasing recognition of the necessity for human rights due diligence in business practices, particularly within the housing sector. 📉 Key Issues in Housing The guidelines highlight a growing tension between viewing housing as a mere financial asset and recognizing it as a fundamental home. The financialization of housing has resulted in adverse effects such as rising rents, increased evictions, unnecessary renovations, and a decline in service quality. Additionally, the real estate sector is a major contributor to climate change, accounting for 37% of global energy-related CO2 emissions. 📜 Human Rights Standards for Housing The document outlines essential human rights principles that housing should uphold: - Affordability: Housing costs must not jeopardize other basic needs. - Accessibility: Housing should be available to a diverse range of households. - Security: Protection against arbitrary eviction is crucial. - Habitability: Properties must be in good repair, provide adequate space, and protect residents from environmental elements. - Sustainability: Housing practices should be environmentally conscious. 🔑 Recommendations for Investors The guidelines provide five key recommendations for institutional investors in residential real estate: 1. Commit to business practices that recognize housing's social value. 2. Enhance transparency regarding human rights and environmental impacts. 3. Assess the effectiveness of implemented measures and establish remedial procedures. 4. Engage meaningfully with all stakeholders involved. 5. Actively contribute to the social value of housing while avoiding legal exploitation. 💼 Business Case for Sustainable Investment Implementing these guidelines can mitigate investment risks, enhance corporate image, and lead to more stable tenancies. Furthermore, it can create positive socio-economic impacts, align with emerging trends in environmental, social, and governance (ESG) investing, and aid in meeting climate commitments. 🌍 Significance of the Guidelines This document signifies a transformative approach to real estate investment, advocating for a balance between financial returns and social responsibility. It offers a framework for investors to adapt to evolving expectations while addressing pressing social and environmental challenges, particularly as they relate to the ongoing global housing crisis and advancements in responsible investing.
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.