Expert Social Value Consultants
What is Social Value and Why is it the Hot Topic for 2025?
Legislative and Value Chain Demand
Ready to go, or in a rush? Book a meeting today – click here.
The Role of Social Value in Business and ESG Compliance
The increasing focus on sustainability and ethical business has made Social Value reporting a vital aspect of corporate responsibility. While the Social Value Procurement Act (2023), effective February 2025, mandates public sector suppliers to demonstrate Social Value, its significance extends beyond legal compliance. Organisations aiming for alignment with major ESG frameworks such as B Corp, EcoVadis, GRI, and CSRD must integrate Social Value into their reporting to meet stakeholder expectations and regulatory requirements.
Social Value refers to the broader positive impact an organisation has on society, including areas such as local employment, skills development, community engagement, diversity, and carbon reduction. Many companies contribute to Social Value through initiatives such as sustainable sourcing, apprenticeships, and social enterprise support, but they often lack the tools or expertise to effectively evidence these efforts.
The shift towards holistic value assessment in procurement and ESG frameworks ensures that factors such as job creation, supplier resilience, emissions reduction, and social impact carry greater weight in decision-making. Businesses that can clearly articulate and measure their Social Value contributions stand to benefit from enhanced reputation, stronger stakeholder relationships, and increased competitive advantage.
Beyond compliance, Social Value reporting presents a compelling PR opportunity. A clear and structured approach to reporting allows organisations to communicate their commitment to sustainability and community impact, fostering trust among customers, investors, and employees. By embedding Social Value into ESG reporting, businesses not only fulfil regulatory requirements but also position themselves as leaders in sustainable and responsible enterprise.
The 8 Challenges of Procurement Act Compliance
Why is measuring Social Value so complex?
The Challenges of Social Value Compliance
- Navigating Regulatory Demands
The Social Value Procurement Act (2023) requires organisations bidding for public sector contracts to actively demonstrate their societal contributions. This goes beyond traditional procurement considerations, demanding that businesses integrate sustainability, employment impact, and community benefits into their operations. Many organisations struggle to align their activities with these evolving regulatory expectations while maintaining commercial viability. - Investment in Tracking and Reporting Tools
To comply effectively, businesses often turn to specialist Social Value tracking systems. These platforms, such as those based on the National TOMs framework, require significant financial investment for licensing, onboarding, and staff training. For small and medium-sized enterprises, these costs can be prohibitive, limiting their ability to compete for contracts. - Labour-Intensive Data Management
Demonstrating Social Value contributions requires extensive data collection, monitoring, and reporting. Businesses must track metrics such as employment generation, emissions reductions, and local supply chain impact. This level of reporting places a considerable burden on internal teams, particularly when working across multiple procurement frameworks with varying expectations. - Proving Tangible Outcomes
Procurement authorities expect bidders to provide auditable, quantifiable proof of their Social Value initiatives. This requires ongoing documentation, detailed impact assessments, and, in some cases, third-party verification. Establishing long-term evidence—such as tracking the career progression of apprentices—demands additional resources and expertise. - New Procurement Evaluation Criteria
The shift from Most Economically Advantageous Tender (M.E.A.T.) to Most Advantageous Tender (M.A.T.) has placed a greater emphasis on Social Value considerations alongside cost and quality. This change means businesses must proactively invest in community and environmental initiatives without the certainty of winning a contract, increasing financial risk. - Consequences of Falling Short
A failure to provide adequate Social Value evidence can result in missed opportunities, loss of credibility, and exclusion from future bidding processes. Many organisations, especially those new to structured Social Value reporting, face a steep learning curve and must seek external consultancy or legal advice to ensure compliance. - Disproportionate Impact on Smaller Firms
While large corporations have the capacity to absorb compliance costs, smaller businesses and social enterprises often struggle to meet the demands of Social Value reporting. Limited budgets, lack of dedicated personnel, and unfamiliarity with measurement frameworks can place them at a disadvantage when competing for public sector contracts. - Constantly Changing Expectations
Social Value requirements continue to evolve, incorporating new sustainability priorities, diversity targets, and local economic development goals. Keeping up with these shifting standards necessitates continuous policy updates, process refinements, and engagement with new reporting methodologies, all of which add to long-term costs.
Exploring a New Approach
Complying with the Social Value Procurement Act (2023) is an expensive and time-consuming process, requiring significant investment in software, data tracking, and administrative resources. While the Act drives meaningful change, it places considerable strain on businesses, particularly SMEs. The question remains—could a Managed Service approach offer a more efficient and cost-effective solution?
Ready to go, or in a rush? Book a meeting today – click here.
Rapid Compliance via the ESG Pro SV:SI Programme
An affordable and scaleable service for Procurement Act compliance
Social Value compliance is now a requirement—but it doesn’t have to be complex or costly.
ESG Pro’s Social Value Compliance Solution removes the need for expensive consultants, complicated software, and legal or financial advisors while ensuring full compliance with the Social Value Procurement Act (2023).
Say goodbye to overwhelming frameworks and endless paperwork—our approach transforms compliance into an easy, accessible, and cost-neutral process. We help businesses identify, measure, and report their Social Value effortlessly, making procurement a driver of positive social and environmental change without unnecessary costs.
How the ESG Pro SV:SI Solution Works for You
✅ No costly consultants – We take care of compliance, so you don’t have to.
✅ No expensive software – Our efficient system replaces complex tools.
✅ No legal complexity – Fully aligned with current procurement regulations.
✅ No financial strain – Our service is self-funding, making compliance sustainable.
With ESG Pro, Social Value reporting becomes more than a regulatory requirement—it’s a strategic advantage. Reduce risk, strengthen sustainability efforts, and build more resilient supply chains while making a measurable community impact.
Take action today. Make Social Value compliance simple. Fill out the enquiry form or schedule a consultation now!
Ready to go, or in a rush? Book a meeting today – click here.
