Social value: why community matters

Alex McCulloch, Director at CACI

First published in Retail Destination, May 9 2024

Environmental, social, and governance (ESG) topics are widely discussed, but the focus often leans heavily on the ‘E’ due to its tangible, quantifiable nature. However, the social component – centred on people, community, and their needs – is arguably more important for enhancing performance, though often more complex to address.

To tackle this, we’ve developed an objective framework that quantifies the social needs of a community by examining the existing social provision of services and identifying the social gap. The depth of consumer and supply data we hold gives us unprecedented scope to do this. This allows developers and local councils to focus on delivering true social value based on actual community needs rather than assumptions often made by corporate or local government headquarters.

Using the Themes, Outcomes, and Measures (TOMs) framework helps assess those needs like health, wellbeing, employment, education, alongside the service provision, benchmarking against national and regional averages. This data-driven approach, as opposed to relying on more subjective sources, aligns supply with demand through a social perspective. It enables councils to guide developers in enhancing community integration and ensuring that developments are beneficial to the community.

The value of such initiatives extends beyond ethical considerations. Communities that take pride in their environment tend to generate higher turnovers, greater engagement, more sustainable rents, and foster social inclusion. With financial pressures mounting on local councils, as 1 in 5 face bankruptcy, owners of space have a prime opportunity to deliver necessary facilities and add value, achieving more than just tick box compliance with an ESG strategy.