Frameworks for defining and measuring social value

Frameworks are useful to help organisations and projects organise their approach, but it is the way in which they are applied that is critical. They must be embraced by the client, enable the design and delivery team to be creative, and facilitate innovation.   

Five Capitals Model

In 2019 the Association of Consulting Engineers (ACE) published their Five Capitals Model. This model sets a framework within which a client can define what value means to them in the context of a specific investment. It further shows how social, environmental and economic value all contribute to a ‘Sustainable Project’. 

Some organisations in the infrastructure sector use the Six Capitals Model to inform decision making and structure their reporting – the additional capital being intellectual capital.  Arup have also developed their own ‘Total Value’ model for infrastructure investment which builds on the five capitals model. It combines traditional concepts of value (financial, economic) with social value and natural capital in a flexible framework that is applicable across sectors. The Total Value model focuses on value accrual to beneficiaries in order to identify potential partnership opportunities.   

Doughnut Economics

Another useful model is doughnut economics, a concept developed by Oxford economist Kate Raworth. The model states that an economy is considered prosperous when twelve social foundations are met without overshooting any of nine ecological ceilings (environmental limits). This situation is represented by the area between two rings, the eponymous doughnuts, and constitutes a “safe and just space for humanity.” This is the space in which inclusive and sustainable economic development takes place. The social foundations are inspired by the UN Sustainable Development Goals and provide a basis for ensuring projects have strong social foundations and push these areas.

UN Sustainable Development Goals

The Sustainable Development Goals (SDGs) are 17 interconnected goals that form a blueprint to achieve a better and more sustainable future for all. They were adopted by all United Nations Member States in 2015. There is very clear alignment between the UN Sustainable Development Goals and the social value agenda. Both focus on decent work and economic growth, reduced inequalities, good health and well-being, sustainable cities and communities, and climate change. In the UK, The Social Value Portal has mapped the National TOMs (Themes, Outcomes, Measurements) Framework against the SDG targets to show just how strong the alignment is.  

The National TOMs Framework for social value

The Social Value Taskforce launched the National TOMs Framework for social value in 2017. It consists of five Themes, 18 Outcomes, and 35 Measures. Each measure has been allocated a financial proxy value. The aim of the National TOMs Framework is to provide a minimum reporting standard for measuring social value. For organisations starting out on their social value journey, it provides a menu of options and an excel-based measurement tool that can be applied to any project. It is already being used by many organisations in the UK’s infrastructure sector, and an infrastructure-specific plug-in is in development. 

CEEQUAL

CEEQUAL is the evidence-based sustainability assessment, rating and awards scheme for civil engineering, infrastructure, landscaping, and public realm projects. The ‘Communities and stakeholders’ category addresses issues regarding the wider social and economic effects of a project on local communities. It further covers other relevant stakeholders who might be impacted directly or indirectly by a project’s delivery and/or operation. Several credits are available for identifying and implementing wider benefits that minimise negative social impacts and increase wider social benefits during the project’s construction and operation. 

CEEQUAL promotes social outcomes such as renewal and revitalisation of the social fabric of the community in which the project is placed; enhancement of community quality of life; development of local skills and capabilities; and  provision of amenity features or community resources. It also encourages a social impacts and benefits assessment of local needs, including social benefits in contract documentation, and creating partnerships.

Common Social Impact Framework for Rail

In 2018, the UK rail sector collaborated to produce the Common Social Impact Framework for Rail (CSIF), led by The Rail Safety and Standards Board (RSSB). It aims to provide a consistent approach to understanding and measuring social value impacts across the lifecycle. The CSIF is an excel workbook or ‘library of ideas’ with supporting guidance downloadable online. It helps to inform and direct investment decisions and help consider how social value can be built into the delivery of projects.