Clarion Housing Unveils Climate Transition Plan for Heat Networks and Retrofits

Image Credit: Clarion

In a pioneering move, the UK’s largest housing association, Clarion, has unveiled its first-ever Climate Transition Plan. This bold strategy lays a roadmap to retrofit existing homes, electrify heating systems, and ensure a seamless shift to a net-zero future by 2050. With an impressive portfolio of 125,000 homes, Clarion is not just talking the talk — it’s the first housing association in the country to take action with a comprehensive Climate Transition Plan.

The plan revolves around four key pillars guiding the long-term journey toward net-zero: decarbonising existing homes, eliminating embodied carbon, slashing electricity and fuel consumption across the business, and tackling the challenge of bridging the gap to net-zero emissions.

Clarion’s targets are ambitious yet crucial for real change. Over the next few years, the association plans to retrofit 42,000 homes with vital fabric upgrades, electrify heating systems for 70,000 properties, and install solar panels on 80,000 homes. By 2029, every property under its management will have a clear pathway to net-zero carbon emissions.

Further, Clarion is set to introduce a decarbonisation strategy for its 178 heat networks — another significant step in reducing emissions across its operations.

Clarion Housing Group’s chief executive, Clare Miller, said: “As the UK’s largest provider of affordable housing, we have a responsibility to lead by example in addressing the climate crisis. That’s why I’m proud that we’ve published our Climate Transition Plan, setting ambitious targets alongside tangible actions to reduce our environmental impact.

“Our plan is focused on reducing carbon emissions, but the main objective is to enable healthier, warmer and cheaper homes for our residents, ensuring that they are not left behind in this transition. We are already making strides towards net zero, but we know that transformational change requires collaboration, funding, and shared ambition, and we stand ready to help lead the way.”

Clarion is zeroing in on its Scope 3 emissions, particularly those from regulated energy consumed by residents (a whopping 60% of its total emissions) and embodied carbon from construction materials in new developments (30%). These two areas will focus on the company's strategy to comply with the Science-Based Targets initiative (SBTi), which necessitates action on over two-thirds of a company’s Scope 3 emissions.

Despite these extensive plans, Clarion has already projected a potential 15-20% shortfall in its emissions reductions. According to the SBTi’s Net-Zero Standard, achieving decarbonisation for over 90% of a company's carbon footprint is essential before relying on carbon credits. Clarion's stance? Offsets will only be considered a last resort, once they’ve fully understood the unavoidable residual emissions.

The "Bridging the Gap to Net Zero Carbon" initiative is crucial to Clarion’s plan. This aims to speed up the decarbonisation of the UK grid, push for fairer energy pricing to make low-carbon alternatives more accessible, and explore innovative funding models. Furthermore, Clarion is committed to supporting the government’s efforts to launch a public engagement strategy, which is slated for release in late 2024.

Clarion does not have near-term verified science-based targets. The company states this is primarily due to “the requirement to include whole building emissions, which are particularly difficult to quantify or have any significant influence over in a residential context”.

In tandem with this, Clarion is developing strategies to tackle fuel poverty and promote nature recovery, all while staying on track to meet its net-zero target by 2050 — a goal set back in 2021.

Clarion has also carefully considered the potential challenges its residents face. An annual survey of 2,000 tenants revealed that many are struggling financially, with most only having enough money for essentials. This makes the cost of installing low-carbon technologies a significant concern. In response, Clarion has partnered with Octopus Energy and The Hill Group to create the UK’s first affordable rent ‘Zero Bills’ homes, guaranteeing no energy bills for residents for the first five years.

This Climate Transition Plan has been in the making for the last 18 months, with guidance from the Transition Plan Taskforce (TPT) Disclosure Framework and other industry-leading standards like the UK Green Building Council’s Whole Life Carbon Roadmap. As Clarion takes this bold step, its strategy is clear to be rooted in innovation and a deep understanding of the complexities of climate action.