What is Social Value & ESG?
What is Social Value?
Social value refers to the positive impact an organization, project, or activity has on society beyond financial outcomes. It encompasses the broader benefits to people, communities, and the environment, recognizing that businesses and organizations should not only focus on profitability but also on social well-being, sustainability, and ethical practices.
Key aspects of Social Value
Economic Impact
- Creating jobs and supporting local economies through responsible business practices.
- Investing in skills development, training, and education.
Social Well-being
- Enhancing community quality of life through initiatives such as affordable housing, improved healthcare, and social inclusion programs.
- Promoting diversity, equity, and inclusion in both workplaces and communities.
Environmental Benefits
- Reducing carbon emissions, waste, and pollution.
- Encouraging sustainable practices, conservation efforts, and renewable energy adoption.
Environmental (E) – Impact on the planet
- Carbon footprint and emissions reduction
- Energy efficiency and use of renewables
- Waste management and pollution control
- Biodiversity conservation and sustainable sourcing
- Climate change mitigation and adaptation
Social (S) – Impact on people and society
- Diversity, equity, and inclusion (DEI) in the workplace
- Employee well-being, fair wages, and ethical labor practices
- Community engagement and social impact initiatives
- Consumer protection and product safety
- Human rights and supply chain ethics
What is ESG?
ESG stands for Environmental, Social, and Governance – a framework used to assess an organization’s impact on society and the environment, as well as the effectiveness of its governance practices. ESG is a key consideration for investors, businesses, and policymakers striving for long-term sustainability, ethical responsibility, and regulatory compliance.
3 Pillars of ESG
Environmental (E) – Impact on the planet
- Carbon footprint and emissions reduction
- Energy efficiency and use of renewables
- Waste management and pollution control
- Biodiversity conservation and sustainable sourcing
- Climate change mitigation and adaptation
Social (S) – Impact on people and society
- Diversity, equity, and inclusion (DEI) in the workplace
- Employee well-being, fair wages, and ethical labor practices
- Community engagement and social impact initiatives
- Consumer protection and product safety
- Human rights and supply chain ethics
Governance (G) – Ethical leadership and accountability
- Corporate transparency and responsible decision-making
- Board diversity and independence
- Anti-corruption measures and ethical business conduct
- Regulatory compliance and risk management
- Stakeholder engagement and shareholder rights
