'Social value' is much more than a buzzword. It is central to offsite manufacture's wider development as a better way to build on all sorts of different levels. We sat down with Penny Anderson, Head of Social Impact at Akerlof, to find out more.
What exactly is social value? We hear a lot about terms such as corporate social responsibility (CSR), environmental, social, and governance (ESG) with business and individual commitments to these areas increasingly important, but how do we define what we mean by these?
"Social impact is talked about in many ways," says Penny. "But all these things essentially encompass the same ideas. It is about looking at what we create and how it impacts lives and communities socially, economically, and environmentally. How can we ensure that we add value, not just from a profit perspective, but in terms of enriching our people and the planet?
"In the offsite sector, we need a better understanding of how our buildings affect our communities. We are gaining momentum and making headway in collating and recording environmental data and the rules and regulations around capturing data related to energy use, carbon emissions is clear. As for social data? We are still very much at the beginning of that journey."
The increased focus on social impact is a clear call to action for all construction companies. Gathering social value data does not have to be complex.
It can be as simple as starting with your own team – looking at your employees, where they come from, and what areas you are employing new people in. Understanding and measuring things like social mobility, educational routes, and diversity provides genuine benefits to organisations increasing its understanding of its own social landscape.
"The Construction Playbook details explicit expectations from the government regarding social outcomes of building projects," adds Penny. "The use of offsite methods aligns with many of the social value requirements that are becoming increasingly important to clients. A solid strategy and approach to measuring social impact is a good way to start delivering on those expectations.
"This is a great opportunity for manufacturers and offsite companies. By understanding this bigger picture, we can create better working environments and attract new talent to the industry. The offsite model allows for a lot of flexibility – we can think about local job creation, looking at areas of economic need and how we can develop and engage with those communities.
"This is an exciting sector to be a part of, and getting the message out about what we're doing, what the opportunities are, and how much we can offer to our communities is vital. There are a lot of opportunities to capitalise on – looking at alternative routes for entering training to attract fresh talent, improving employee retention, and diversifying our skillsets. Offsite is making strides in creating better working environments more conducive to a healthier work life."
Clients and developers have become more aware of the demand for added social value to their operations. Being able to offer clear evidence of offsite's abilities to deliver will put companies in an advantageous position when it comes to winning work. Projects that identify and meet the needs of the housing shortage, homelessness and fuel poverty can really become a truly long tern sustainable solution. But what are the next steps?
"One of the next steps is redefining what we mean by 'space' and I think this will be a key topic in the modular industry over the next few years," says Penny "How do we measure the impact of a safe, secure, and permanent space? We know modular construction offers incredible benefits – faster installation speeds, improved energy efficiency and cost efficiencies. But speaking to people who have moved from temporary to settled accommodation for example, I hear people talk about the importance of 'space' as somewhere to find stability. Having your own space can mean being in a better position to find employment, enter training or education, or get your kids settled into school – these are powerful things."
Being clear about what social value means to an organisation is also a key next step – breaking through the jargon and range of definitions and settling on a strategy which is right for your organisation is crucial. Only when you know what social value means to your organisation can you start to talk with confidence about how you will deliver it and how you will collaborate with others to maximise impact.
For more information visit: www.akerlof.co.uk www.supplychainschool.co.uk
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01. Penny Anderson, Head of Social Impact, Akerlof
