How to Create Social Value: A Q&A with EMCOR's Roy Ramrutton

Share
Roy Ramrutton of EMCOR UK gives Sustainability Magazine readers advice on how to run a business with a positive societal impact
Roy Ramrutton, Head of Social Value at EMCOR UK, explores why social value is so important, how to deliver & measure successful programmes & offers advice

Social value is a concept which encompasses the broader impact of an entity's actions on society, the environment and the economy. It is reshaping how success is measured beyond mere financial returns. 

As stakeholders increasingly demand transparency and ethical practices, companies are compelled to demonstrate their contribution to societal wellbeing. 

In the UK, the Public Services (Social Value) Act 2012 has been a catalyst, mandating public bodies to consider social value in procurement decisions. 

This shift is not limited to the public sector – private enterprises are now recognising that integrating social value into their core strategies can enhance brand reputation, foster innovation and drive long-term profitability.

With the global focus on sustainability intensifying, social value has become an indispensable component of ESG frameworks, influencing investment decisions and corporate governance.

Social value is about considering the impact of decisions on people's lives and perspectives, rather than just using money as the main indicator for progress

EMCOR is a prominent American company specialising in mechanical and electrical construction, industrial and energy infrastructure and facilities services.

With revenues of approximately US$12.6 billion in 2023, EMCOR operates through more than 100 subsidiaries across approximately 180 locations, employing more than 38,000 people.

In this Q&A with Sustainability Magazine, Roy Ramrutton, Head of Social Value at EMCOR UK, explores why social value is so important, as well as how to deliver and measure successful programmes.

Youtube Placeholder

Why is social value important?

Social value is important because it reflects the positive impact an organisation has on the local communities where it operates. It encompasses the broader financial and non-financial benefits created through daily business activities, contributing to the wellbeing of individuals, communities and the environment.

Incorporating social value into corporate strategies is essential if businesses want to succeed in today’s socially conscious society as there has clearly been a shift in expectations that businesses should play a role in making the world a better place. This is reflected by expectations of consumers, employees and investors. 

Recent research has shown that 77% of consumers are more likely to choose companies that demonstrate commitment to social responsibility. Employees want to work for organisations that are making a difference and are more likely to stay with them.

One survey revealed that 55% of employees would accept a lower salary to work for a socially responsible company. Investors are also placing a premium on social value as part of the ESG criteria on which they make decisions on where to place funds with social impact a key part of this decision-making process. 

The Labour Government has also made its commitment to social value very clear and has already announced a Social Value Policy role in the Cabinet Office as well as plans to establish a Social Value Council to drive best practice and accountability. 

Since 2012, when the Social Value Act came into effect, social value weighting in government contracts has steadily increased from around 2.5% to at least 15-20% and in some cases up to 30%.

The Procurement Act, which comes into effect in February 2025, will require buyers and suppliers to publish KPIs and key commitments within contracts and this may include social value delivery. 

Therefore, integrating social value into your business strategy and operations is not just about doing the right thing, but there are also clear business benefits. 

Moreover, as regulatory frameworks like the UK Sustainability Reporting Standards come into effect, reporting on social value will become a legal requirement, making it essential for companies to adopt sustainable and socially responsible practices.

"Social value is important because it reflects the positive impact an organisation has on the local communities where it operates." - Roy Ramrutton, Head of Social Value at EMCOR UK

How can social value be delivered?

Companies can deliver social value through various initiatives. Some common methods include employing local people, spending and partnering with small and medium-sized enterprises (SMEs), supporting community projects and collaborating with charities or social enterprises.

It is important to adopt a strategy and framework which will help to structure these efforts, while actively engaging with communities help to bring the impact to life. 

As a facilities management (FM) provider, a major way that we contribute to social value is by employing local people and working with SMEs to support regional economic growth. We also prioritise the health and safety of our workforce and supply chain, both from a physical and mental standpoint. 

Collaboration is also critical for delivering social value. Partnering with local charities, social enterprises and community groups can help companies create meaningful and long-term change. These partnerships allow businesses to tap into local expertise and resources, ensuring that their social value initiatives are aligned with community needs.

We have also seen major benefits of collaborating with our supply chain via an ESG Supply Chain Charter that we have developed.  

For example, we have collaborated with The Feed, a social enterprise working to prevent poverty, hunger and homelessness in Norwich. We delivered a session to help its members develop their digital skills and confidence in accessing services on-line.

We also worked in partnership with our customer, Anglian Water, to provide a range of support for the Feed. We jointly hosted drop-in sessions for members to help them with their digital skills.

Through these initiatives, we have sought to tackle digital exclusion and to help improve the wellbeing of disadvantaged groups. 

Paying all our colleagues the Real Living Wage and creating a comprehensive and inclusive apprenticeship programme are other ways that have helped us to drive social mobility and improve life chances.  

It is important for companies to have a structured approach to maximise the impact of these initiatives. Developing a clear social value strategy ensures that efforts are aligned with business objectives and community needs. This strategy should then be supported by a robust framework that guides the delivery and measurement of social value.

EMCOR has collaborated with The Feed, a social supermarket and food provider that works to help the homeless and vulnerable in East Anglia

How can social value be effectively measured?

Measuring social value is essential for understanding its impact and ensuring that initiatives are delivering tangible benefits. It also provides companies with the evidence they need to promote further investment in social value programmes and activities. 

Measurement should include both quantitative and qualitative assessments and it is often worth partnering with an expert organisation.

We partnered with the Social Value Portal which uses a standardised framework of National Themes, Outcomes and Measures (TOMs) which has recently been streamlined for implementation in 2025.

This framework helps us to measure, manage and report on our social, economic and environmental achievements. It helps us to set benchmarks and to monitor our progress and improve our social value goals. 

At its core, the TOMs framework categorises social value into key themes, such as job creation, support for local businesses, community well-being and environmental sustainability.

For each theme, we can identify specific outcomes we aim to achieve such as increasing local employment or reducing carbon emissions. These outcomes are then measured using quantitative and qualitative data, which is independently verified to ensure transparency and accuracy. 

This partnership has enabled us to report that we delivered more than £50m (US$65,8m) in social value and local economic value in 2023 which is based on independent assessment of our social value activity.

Through investing time and money into social value projects, EMCOR hopes to be a force for good

What tips do you have for companies beginning their social value journey?

For organisations starting on this journey, here are a few tips:

  • Commitment from leadership: It is important that the leadership is genuinely committed to driving social value and leaders should act as champions to inspire their colleagues.
  • Start small but think big: It is advisable to start with manageable projects, such as supporting local suppliers or community initiatives and then to grow these as the company gains more experience and learns what works well
  • Work in partnership with experts: If you work with an FM provider, engage with them to see how they can support your social value goals and collaborate with an expert on how you can measure your social value activities.
  • Involve the community: Engage with local charities, social enterprises or community groups to generate meaningful social value 
  • Measure and improve: Measurement is key to success. Use both quantitative data and qualitative feedback to evaluate your impact. Setting benchmarks will help you track progress and set new goals.

******

Make sure you check out the latest edition of Sustainability Magazine and also sign up to our global conference series - Sustainability LIVE 2024

******

Sustainability Magazine is a BizClik brand

******

Share

Featured Articles

This Week's Top Five Stories in Sustainability

This week's top stories include a forecast for DEI across 2025, missed UN NDC deadlines, energy revolution in the Baltics, Starbucks' legal case & AI laws

McKinsey Will ‘Boldy Pursue’ DEI in Face of Storm

Reports say McKinsey has doubled down on DEI initiatives despite other high-profile firms and businesses retreating from pledges after US executive orders

Apple, IBM & GM Amongst Those Set For DEI Showdowns in 2025

Apple, Coca-Cola, IBM, GM, Levi's and Berkshire Hathaway among firms facing shareholder scrutiny over diversity policies in a shifting corporate landscape

Which 10 Nations Met the UN's Deadline for NDC Targets?

Net Zero

What Next as Baltic States Switch off Russian Energy Supply?

Renewable Energy

This Week's Top 5 Stories in Sustainability

Sustainability