How does social value relate to carbon reporting?

Carbon reduction is a key component of social value measurement. Under the TOMs framework, environmental outcomes including carbon emissions avoided, renewable energy generated, and waste diverted from landfill all contribute to an organisation's social value score. Strong carbon data from platforms like Climatise provides the evidence base for social value claims.

Is social value mandatory?

For UK public sector procurement, the Social Value Act 2012 requires consideration of social value, and PPN 06/20 mandates a minimum 10% weighting for social value evaluation in central government contracts. In the private sector, social value measurement is voluntary but increasingly expected by investors, customers, and regulators.

Social Value

The wider economic, social, and environmental benefits that an organisation delivers to communities and stakeholders beyond its core commercial activities, increasingly measured alongside carbon and sustainability metrics.

What is Social Value?

Social value refers to the quantifiable improvement to community wellbeing resulting from an organisation's activities. In the UK, the Social Value Act 2012 requires public sector organisations to consider social value in procurement. The TOMs (Themes, Outcomes, Measures) framework developed by the Social Value Portal provides a standardised methodology for measurement.

Social value intersects with carbon reporting in several ways. Environmental contributions — such as carbon reduction, waste diversion, and biodiversity enhancement — are key components of social value measurement. PPN 06/20 (Procurement Policy Note) introduced a minimum 10% weighting for social value in central government procurement, with environmental sustainability as one of the five priority themes.

For organisations bidding for public sector contracts, demonstrating both strong carbon reduction plans (PPN 06/21) and social value delivery (PPN 06/20) is increasingly essential. The two frameworks are complementary: emissions reduction activities generate social value, and social value commitments often include environmental targets.

Practical Examples

A facilities management company measures social value delivered through its contracts, including carbon reduction from energy efficiency retrofits, local employment created, and waste diverted from landfill.

A construction firm uses the TOMs framework to quantify the social value of a school building project, including reduced operational carbon, improved indoor air quality, and apprenticeship opportunities.

A technology company bidding for a government contract demonstrates social value through its carbon-neutral operations, community STEM programmes, and supply chain diversity initiatives.

How Climatise Helps

Climatise provides the environmental data that feeds into social value calculations. By accurately measuring your carbon reductions, energy savings, and waste diversion, you can quantify the environmental component of your social value delivery for public sector bids and reporting.

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