With many businesses feeling more confident about their sustainability commitments, and several recognised measurement and reporting frameworks now in place, it’s the S in ESG that remains a focus of discussion.
Why the S in ESG needs industry focus and alignment
15 Oct 2024

Having worked with clients on corporate reputation and ESG strategy for the past decade, it has been interesting to see how the focus areas, challenges and opportunities have evolved.
The early days of ESG saw a largely surface-level rollout of standalone corporate social responsibility (CSR) programmes and campaigns. This was followed by a mad sustainability scramble to fulfil new greenhouse gas reporting and carbon reduction requirements when they came into force. There has since been an ever-increasing level of pressure on businesses to do the right thing.
One of our Business Directors, Sian Kilgour, recently attended IMPACT UK – an ESG property event with panels and discussions hosted by landlords, investors, occupiers and local authorities. Although retail, residential, and commercial property companies have had a significantly more focused push on reducing environmental impact over the past five years – with many now looking at what happens after achieving net zero – it’s clear there are still areas of uncertainty and debate.
Here are five key considerations when planning a social impact programme:

1. Make a lasting impact
Social impact vs Social Value – these are both terms that are bandied around a lot when discussing ESG aspects, but not everyone understands the difference.
Social value is a quantitative way of measuring what has been achieved and is more likely to be retrospective, with measurement and KPIs harder to approach than sustainability metrics. Achievements can also be incidental, e.g. creating social value through new job opportunities for a community as a result of expanding a retail scheme.
Social impact is a more intentional way of delivering against specific needs and outcomes that you set out at the start. For example, setting out to reduce child hunger by introducing free meals through F&B suppliers.

2. Set meaningful social measurement metrics
Whether or not it’s right to put a value on social impact is still a hotly debated question, with the industry view leaning towards the need for a way of measurement that isn’t putting a financial ‘value’ on a life helped.
Whilst investors will of course want assurance that their funds are being put to good use, it is very difficult – and some may say unethical – to translate a social impact benefit into a harder quantitative ROI.
Increasingly, I believe we will see a new form of measurement that looks at softer yet still demonstrable metrics such as ‘lives changed’ or ‘homes provided’. The RNLI for example has its own unit of ROI currency which is ‘a life saved at sea’. Once you start thinking in these terms, social measurement feels more achievable.

3. Consider risks as well as opportunities
There can often be conflicts between human needs, environmental requirements and the business plan objectives of a scheme. For example, aligning plans to reduce the carbon intensity of a building and adding renewable energy tech, with the need for space to be used for public amenities or for social and community benefit.
When reviewing and measuring impact, it is therefore essential to consider the necessary compromises and potential negative impact of any activity, project, or development and what you are doing?to mitigate those risks.
Communication then becomes key, sharing the business ambitions and plans with your communities, customers, tenants and stakeholders, so that they understand the risks and opportunities and feel part of the process.

4. Put your communities at the heart
For a social impact programme to succeed, it must be built around tangibly delivering genuine and long-lasting social benefit.
This should not just be about investing in programmes on a regional and national level. Look for opportunities that will have a meaningful local impact.
This starts with listening to your communities – including visitors, local residents, or occupiers – to understand the things that actually matter to them and digging into local needs.

5. Find ways to engage and collaborate
Be proactive about engaging community stakeholders such as MPs, the local Business Improvement District (BID), community groups and other businesses, and partner with them at every step of the way.
Know who your local opinion formers are and be the enemy of misinformation by putting a clear and transparent communications plan with regular updates in place.
Collaborate with brand partners, tenants and highly engaged audiences to work together for the greater good. This is also important when it comes to meeting Scope 3 carbon reduction commitments.
Ultimately, it’s about setting out to deliver genuine social impact as part of a longer-term strategy, addressing and mitigating against risks, setting meaningful success metrics and taking audiences on the journey from the start.
Find out how we helped Trafford Centre share its environmental and social impact ambitions here.



