Family Homes Funds Limited joins the global community in celebrating the 2024 World Environment Day, with its important theme "Land Restoration, Desertification, and Drought Resilience", with the slogan, “Our Land. Our Future”.
Land is a crucial natural capital of immeasurable value that has been fundamental to the basic needs and the development achieved by humans throughout history. As a housing construction financing institution, land is central to our mission of facilitating housing construction and ownership. Underlining this, land is the foundation upon which communities are formed, societies thrive, and the nation develops. This intrinsic link to land underscores the responsibility we have in addressing the land-related environmental challenges of our time.
Human activities have significantly contributed to land degradation, and the housing construction sector is no exception. Over-extraction of resources, deforestation, and improper land use can lead to soil erosion, loss of fertility, and disruption of natural habitats. According to the United Nations Convention to Combat Desertification (UNCCD), land degradation currently impacts roughly a quarter of global landmass, resulting in significant consequences for the well-being and livelihoods of an estimated 1.5 billion population, who are resource-constrained and whose livelihoods depend on land resources.
The Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) defined land degradation as “the many human-caused processes that drive the decline or loss in biodiversity, ecosystem functions or ecosystem services in any terrestrial and associated aquatic ecosystems”, and restoration as “any intentional activity that initiates or accelerates the recovery of an ecosystem from a degraded state”.
Our focus as an institution is to finance housing construction, and not directly involved in the land acquisition processes. However, we use our underwriting and conditions precedent to facilitate fund disbursement, ensuring that Borrowers/Developers comply with existing national and international laws, standards, and regulations that protect the environment throughout the lifecycle of housing projects funded by FHFL. Internally, FHFL's efforts to protect land resources include but are not limited to, the following two key initiatives.
- Community Engagement: Recognising that many communities have a deep connection with their land, we prioritize that our Borrowers conduct community/stakeholder engagement to ensure land is rightly acquired and locals are not forced out of the land that provides their livelihoods. In situations where resettlement of locals is inevitable, we ensure that is done following best practices and engagement with appropriate authorities.
- Environmental and Social Governance Process: As part of our mandatory environmental and social due diligence (ESDD) process for potential housing projects, we make sure to thoroughly note any environmentally and socially sensitive issues related to land use and take necessary measures to protect the well-being of people and their livelihoods. FHFL’s governance processes for Borrowers also include compliance with national environmental and social regulations such as the Environmental and Social Impact Assessment (ESIA) for any proposed major development. We also work closely with developers to incorporate green spaces and tree planting into construction designs. This not only enhances the aesthetic value of housing projects but also improves air quality, supports biodiversity, and provides recreational spaces for residents. In addition, we encourage developers to pursue green building certifications, such as LEED or BREEAM, which promote sustainable construction practices and energy efficiency that help to address climate change and efficient use of natural resources. In addition to this, Borrowers are required to develop strategies for managing the pollution and generation of wastes.
Recognising the importance of addressing land degradation and the need to prevent further damage, FHFL considers itself as a major stakeholder in this global discourse. Therefore, this year’s World Environmental Day is a call to action of the opportunity—and obligation—to champion the sustainable and responsible use of land and its resources. We unite with the global community, to raise our voice to support the development of vibrant and resilient communities that can continue to sustain our dreams and aspirations of a safe and peaceful world.
Happy World Environment Day
