Reframing risk and reward
A more sophisticated understanding and framework is required to reflect the real impact of state resource transfer on balance sheets, cash flows, risk maps and the broader governance of organisations. When embracing environmental, social and governance (ESG), lenders should be alert to how filling state gaps add to sector risks and liabilities, but also recognise that without further sector interventions it weakens organisations’ balance sheets. With many multinational corporations recognising this and actively intervening there should not be a disconnect between housing association investors and investees.