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Social Value –Buying and Selling

key considerations

The role of Social Value in procurement,

contracts, and delivery

Agenda: • Social value over time

• Key influences in SV in 2023

• Social Value in procurement

• Social Value in Policy/ legislation

• Social Value in Delivery

• Social Value Measurement

• Cross sector working

• Interdependencies

• Takeaway task

• Further reading references

• Q&A

SOCIAL VALUE OVER TIME

Social Value TIMELINE How did we get here?

1800s

1900s

1970s

1980s

1990s

2023+ Philanthrocapitalism –

Please sir can I have some more?

The business of benevolence – large scale distribution of

wealth

Trust you – acknowledgement of the triple bottom line

(TBL)

Prove it – Data management,

exploration and analysis

Show me – Environmental and social accounting

Tell me – Contextualising the TBL – what are you specifically doing?

What are the 8 key SV influences in 2023?

Procurement practice

Social Value questions are asked and

answered, sometimes weighted in

scoring, sometimes assessed

qualitatively and sometimes

quantitatively.

Policy/ standards/ legislation

Central Government, Local Government,

Professional Bodies and Standards

organisations (ESG/ B Corp/ GRI) create

rules for Social Value

Measurement and reporting

Proof of performance is sometimes

required, measurement routes are

dictated or left open and reports made

accessible to varying degrees

Delivery

Commitments made in procurement are

sometimes ‘policed’ and delivered.

Where this does happen successfully,

‘best practice’ is created

Social Value ‘businesses’

Within the measurement market, profit

making businesses are on the rise,

particularly for measurement, offering

procurers an easy solution to scoring SV

responses

Cross over with Environmental and EDI

Biodiversity, circular economy and

Equality, Diversity and Inclusion all cross

over with SV, so how are we making

distinctions between these?

Wellbeing

Wellbeing has been brought to the

forefront of SV, digital inequalities have

been highlighted, and a focus back into

workplaces regarding ‘how’ a business is

run (governance), has occurred.

Modern Methods of Construction MMC influences are growing, as more

investors and contractors see the

programme, cost and environmental

impacts of off site manufacture. But

what does this do to jobs and local

spend?

SOCIAL VALUE IN PROCUREMENT

What social, economic and

environmental benefit will you deliver on

this project.

*Harder than it looks

THE SHORT AND SWEET Quantified offer (# and £); Qualified offer

(Method statement that requires A - Thematic

Approach; B - Delivery Capability; C - Continuous

Improvement Plan; D - Engagement and

Collaboration Plan). *Easy to lose the will to live

THE EPIC

Asks two very similar questions - possibly

using the terms added value/ social value/

social innovation

*Requires a TQ. Never guess.

THE REPEAT Set out how you and your supply chain will support Social

Value (in accordance with section 27 of the Specification),

demonstrating how your approach will ensure that you

embed sustainable solutions into the delivery of works and

services.

*the one that doesn't allow you to say what you want to

THE OBSCURE

Types of SV questions

Types of SV responses

Types of SV scorers

Happy Scorer Subject matter expert Scorer Grumpy scorer

SOCIAL VALUE IN POLICY/ STANDARDS

Things to know…

ü The Public Services (Social Value) act is 10 years old:

https://www.gov.uk/government/publications/social-value-act-information-and-resources/social-value-act-

information-and-resources

It was quite weak as a piece of legislation, but its existence did light a fire under the procurement and

commissioning teams in public sector. It created an environment of competition.

Things to know…

ü DCMS released a civil society strategy (2018)

https://www.gov.uk/government/publications/civil-society-strategy-building-a-future-that-works-for-everyone

This connected the public, private and social (or third) sector in a strategy that made sense. It influenced what we

understood social value to be across sectors.

Things to know…

üWe have a new PPN to supplement the act (September 2020) https://www.gov.uk/government/publications/procurement-policy-note-0620-taking- account-of-social-value-in-the-award-of-central-government-contracts

Central Government were recognised as not being able to demonstrate the application of the Act very well, and they have reacted to this via the new PPN.

This means any central government work you are involved in from this point forward will be asking for more SV commitments.

Hot off the press!

Standards

https://www.bcorporation.net/en-us/

https://www.globalreporting.org/

https://ecovadis.com/

SOCIAL VALUE IN DELIVERY

Resource Purpose Review frequency Where to use

Social Value policy The ‘what’

To have a 1-2 page statement about your business principles and approach to society, economy and environment. Can be a combo on inward looking CSR type narrative and more outward looking social value footprint content. The themes you use should be present in other complementary documents e.g. strategy/ delivery plans

Annually On website, appended in bids, on staff intranet

Social Value strategy The ‘how/ who’

To have a 4-5 page approach to set out ambitions you want to meet as a business for social value, focussed on the in house functions and how they contribute to the social value agenda (e.g. what do planners, project managers etc do as part of their role for SV and how does that help your ambitions). Themed the same as the policy, you can set some high level outcomes in this document

Every 6 months As above plus in regional offices, for project managers, for BD managers, appended to bids where needed

Social Value Delivery plans The ‘detailed how’

Specific ‘method statement’ for meeting each deliverable committed to a client. Details the partners you’ll work with, the process for getting from ‘a’ to ‘b’, milestones for achievement, how you’ll measure success, how you’ll manage risk.

For each project Within site teams, for client information on live projects

Social value tracker Excel spreadsheet with core business KPIs, Extra client KPIs mapped to TOMs where possible. Month on month performance, appended or hyperlinked evidences. Sent directly to client or used to feed client based reporting formats where needed. Can be linked to Power BI (part of Microsoft package) to create dashboards too

Quarterly by committee to ensure format is meeting delivery team and client needs.

Kept at project level adhering to GDPR rules,

Sent to client if no preferred format

Engagement decision making/ business case making process

Where individuals at delivery or strategic level are approached to complete additional or bespoke SV activities, these are raised to SV committee to be fed into decision making process

Ideally make a decision within 1-2 weeks of request. So must have a way to process this outside of committee meetings which are likely quarterly.

Make a committee member accountable for feeding requests into process so can be done quickly when needed

Quarterly – as requests are approved and delivered, or rejected, document the performance and adjust decision process accordingly

Within committee to decide on what extra engagement to agree to and document this for continuous improvement

Not communicated in detail to clients or stakeholders

SOCIAL VALUE MEASUREMENT

Outcomes not Outputs…

22

• What resources went in?

• Time/ money/ equipment

Input

• What numbers of activities/ interventions were achieved?

Output • Output details • E.g. 1 apprenticeship

= 1 employment, 1 qualification and 1 distance travelled

Outcome

• What happened as a result of the outcomes?

• People/ Planet/ Profit

Impact • What was the value of the impact (where applicable)

• The return on investment (ROI)

Value

Methodologies

Systems

Data sets Data Frameworks

Research based £ proxies and non £ measures

Ways to make sense of data setsBest practice

approaches so you don’t under or over claim impact

Tools that combine data sets, frameworks and methodologies into one useable space that creates bespoke reporting opportunities

Examples: • Data set - Unit Cost Database • Data Framework - National Themes Outcomes and Measures (TOMs) • Methodologies – Social Return on Investment (SROI) • Systems – Social Value Portal

24

Return on investment/ social value in £...the rationale and risk areas

Two types of quantification:

A. Economic/ Fiscal = Wages, Tax, NI, spend, Benefit savings, service use savings

B. Social/ Wellbeing = happy, content, secure, included, inspired, confident people

Objective

Subjective

Measurement trends UK:

The National Social Value Task Force developed the National Themes, Outcomes and Measures (TOMs) to be used as a framework to capture and quantify SV in a consistent way across sectors. It has gained significant traction in public sector, for procurement and delivery. Social Value Portal, the branded software that helped develop this, has also got a significant market share.

In infrastructure, Network Rail have developed the CSIF- Common Social Impact Framework and the new Social Value Tool for Rail, which is being rolled out on their projects. Simetrica developed the CSIF, Impact Reporting worked on the operational delivery of this, to capture ‘on the ground’ data. The new tool for rail is underpinned by Social Profit Calculator (now rebranded as Loop)

A new Social Value Model has been created to support the release of PPN 06/20, outlining 5 themes and the types of outcomes being sought by Central Government Procurement teams

Tools that support measurement and reporting aligned to B Corp, ESG and GRI will soon begin to surface.

Measurement trends International/ Global:

The Sustainable Development Goals/ Global Goals are growing in use, demonstrated by:

• A manifest in and from Central UK Government for Local Authority to demonstrate performance against these • Use of SDGs by CHINA ALLIANCE OF SOCIAL VALUE INVESTMENT (CASVI)

https://thegiin.org/research/publication/discovering-social-value-99-in-china-a-social-value-assessment-report-on- a-share-listed-companies-(2018)

ESG reporting has trended out of the finance and investment sector and into more businesses. https://docs.wbcsd.org/2019/02/Corporate_and_sustainability_reporting_trends_in_Japan.pdf

Social Value bank moves to Australia: https://asvb.com.au/

https://www.socialvalueint.org/blog

Why social value needs a cross sector approach…

What helps to make sure social value is delivered

well?

ü RESOURCE

ü ASPIRATION

ü RESPONSIBILITY

• Resource: Low

• Aspiration: Medium

• Responsibility: High

*need more resource

PUBLIC SECTOR PRIVATE SECTOR

• Resource: Low

• Aspiration: High

• Responsibility: Low

*need more resource and responsibility

THIRD SECTOR

• Resource: High

• Aspiration: Low

• Responsibility: Low

*need more responsibility and aspiration

ü Resource: High (Private Sector)

ü Aspiration: High (Third Sector)

ü Responsibility: High (Public Sector)

COMBINED

INTERDEPENDENCIES

Sometimes it is hard to decide if something is a

Social Value outcome, an equality outcome, a

wellbeing outcome or a biodiversity net gain

outcome…..

Some examples

Inclusive Employment

Accessible green space

Green site set up

SV

WB

BNG

EDI

TAKE AWAY TASK

Take away task – to be returned in April

Modern Methods of Construction vs traditional solutions…

Using Modern Methods of Construction can affect the social

value, Equality, Diversity and Inclusion (EDI), Environmental (e.g.

biodiversity) and wellbeing outcomes of a project.

Name and explain 6 main differences between a traditionally

built project and a project using MMC.

Try to identify 3 benefits (positive things about MMC) and 3

disbenefits (negative things about MMC).

FURTHER READING…

35https://www.ukgbc.or g/wp- content/uploads/202 0/04/Delivering- Social-Value- Measurement.pdf

https://www.ukgbc.or g/wp- content/uploads/201 8/03/Social-Value.pdf

https://www.ukgbc.org/ wp- content/uploads/2021/ 02/Framework-for- Defining-Social- Value.pdf

36https://resources.ecov adis.com/buyers/susta inability-clauses- commercial-contracts- key-corporate- responsibility

https://www.icaew.co m/technical/audit- and-assurance/audit- insights/audit- insights-industry- sectors/audit-insights- construction

https://www.london. gov.uk/sites/default/fi les/lsdc_- _qol_2017_evidence_ report.pdf

https://www.isurv.com/ downloads/download/1 992/developing_an_app roach_to_sustainable_r eturn_on_investment_i n_the_uk_brazil_and_t he_usa_rics

Reading list books:

• The Locust and the Bee – Geoff Mulgan

• Higher Ambition – Michael Beer/ Flemming Norrgren

• The Entrepreneurial state/ The Value of Everything- Mariana Mazucato

• Social Impact Assessment – C J Barrow

• Responsible Corporate Strategy in Construction and Engineering – Martin Loosemore & Florence Phua

• The Age of Responsibility - Wayne Visser

• All In – David Grayson, Chris Coulter and Mark Lee

Websites/ organisations:

• Social Value UK and International

• Social Enterprise UK

• Social Value on gov.uk

• DCMS – Civil society strategy

• PPN06/20 on Gov.uk

• Social Value Portal – National TOMs

2021/2022

• Institute of Civil Engineers – Project 13

• Green Building Council

• World Business Council for Sustainable

Development (WBCSD)

Q&A WHAT'S ON YOUR MIND?

Extra bits! Following on from the Q&A

Social Value Triangle

Pure SV

Social Value and Equality, Diversity and Inclusion crossover

Multiple crossovers and interdependencies

07851986088

Carrie-Ann Huelin

[email protected]

PHONE NUMBER

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