The National Social Value Standard(NSVS) has launched a new social value measurement framework with the help of economists at social value software organisation Loop.
… a number of new metrics and valuations were developed…
FE News writes:
THE NATIONAL Social Value Standard (SVS) has launched a new social value measurement framework with the help of economists at social value software and consultancy organisation, Loop.
The new measurement framework will sit at the forefront of an ever-changing social value world and includes more than 800 metrics – 90% of which are monetised – all aimed at increasing the robustness and accuracy of forecasts and estimates.
Loop, which uses the framework across its software, has used its expertise in the field to help develop the standard, with every outcome and grouping carefully reviewed by Loop’s economists in line with the latest academic and government thinking.
Included in the update is the rationalisation of the social value pillars into three impacts – social, environmental, and economic – creating a clearer and more compatible framework structure.
Many of the metrics have also been renamed or consolidated in order to improve consistency and make them more user-friendly. They are now grouped under five headings to add more structure and improve navigation: Jobs, apprenticeships and placements; Workforce wellbeing, training and skills; Supply chain; Community, charity and other stakeholders; and Environmental.
To further mitigate over-claiming, the additionality analysis and economic treatments have all been reviewed and strengthened across the following factors: deadweight, attribution, displacement, discounting, inflation, duration and drop off, with the addition of a new factor: the marginal utility of income. Recommended by the HM Treasury Green Book, this considers that the value of an additional pound of income is higher for a low-income recipient and lower for a high-income recipient.
On top of all the changes to existing metrics, a number of new metrics and valuations were developed. For example, under the environmental heading, the monetised waste metrics have been significantly built out, with changes in waste treatment between all levels of the waste hierarchy leading to specific values – 39 in total. Additionally, under the supply chain heading, a new monetised metric estimates the additional social value that is generated through the supply chain when certain types of suppliers are chosen over others.
The standard also allows tracking of negative values, supporting the framework’s push to mitigate overclaiming. Allowing users to use metrics that generate a negative value, such as the ‘made redundant/dismissed’ metric, and enter negative inputs for certain metrics, such as CO2e emissions, is a key step towards measuring a more accurate view of social value.
Ken Chalk, principal economist at Loop who worked on the National Social Value Standard, said:
“This is the most significant update to the framework in recent times, with the large-scale changes made now allowing for future iterations to be about minor adjustments.
“We decided it was time for the development of this new version as social value methodologies and understanding continues to mature. Whether that is new methodologies being developed or a more sophisticated and tailored use of existing approaches, the aim is increasing the robustness and accuracy of the framework.
“The changes made are vital to ensure a more accurate, HM Treasury Green Book aligned, representation of social value, that can then help drive more efficient creation of positive impacts.
“We are confident that the update to the framework has ensured there is a more comprehensive and diverse range of metrics and valuations available, and we look forward to hearing feedback.”
SVS is leading the way in a continually changing social value world. New measurements, such as this, are continually being added into the standard to stay on top of changes. This was evident from the introduction of the WELLBY. It was included in the new HM Treasury Green Book wellbeing guidance, released in July 2021, and opened a new standardised approach to measuring social value….
The National Social Value Standard will be available to the public via its website. For more information, please visit: National Social Value Standard.
