In the world of ESG reporting, the "Social" aspect is often the most complex to measure, manage, and communicate. Unlike environmental or governance data, which tends to rely on more tangible metrics like energy consumption or compliance regulations, social value data is inherently qualitative and varied.

As a Customer Success Executive, Gina guides clients through the challenges of integrating social value data into their reports. Over time, the complexities businesses face have become clear, but so have the significant benefits of capturing and communicating social value effectively. This article will share insights on how businesses can master social value data in ESG reporting.

Understanding Social Value Data in ESG Reporting

To put it simply, social value data refers to the positive impact that an organisation has on the wellbeing of its employees, communities, and society. It is a broad and often subjective category, encompassing everything from employee training and workforce development to social justice initiatives and community investments. However, measuring and reporting on these social value impacts can be tricky.

Businesses are increasingly expected to report on the social outcomes of their operations, having to provide clear, data-backed insights into their social contributions. But social value data is often scattered across various sources— e.g. employee surveys, community feedback, and charitable contributions—making it difficult to track centrally. This fragmented approach can hinder accurate collection, analysis, and reporting of a company’s social impact.

Advice for Capturing Social Value Data

1. Define Clear Metrics
   Before collecting data, it’s essential to define clear metrics that align with your business goals and stakeholders' expectations. Focus on areas that directly reflect your company’s social impact, such as employee diversity, community engagement, or charitable donations. Having specific, measurable KPIs will help avoid vague or inconsistent reporting.
2. Ensure Data Accuracy and Consistency
   Social value data can come from various sources, including employee surveys, community feedback, and records of charitable contributions. It’s crucial to establish a consistent method for collecting and tracking data across all departments and sources to ensure accuracy. This will help present a reliable and cohesive narrative.
3. Leverage Existing Data
   Look for quick wins by leveraging existing data. For instance, training records, apprenticeship programs, and charitable donations are often already documented and easy to pull into your ESG reports. These data points can provide immediate insights into your company’s social impact without requiring significant additional effort.
4. Fill Data Gaps

Once existing data is captured, start thinking about what social actions are done within the company but are currently not captured. Often overlooked, responsible leadership data is key to showcasing the ethical practices and leadership behaviours that drive positive change but frequently goes untracked. By capturing this data, organisations can provide a fuller picture of their societal contributions, empowering stakeholders to make informed decisions and hold leaders accountable for their social responsibilities.

Quick Wins for Data Collection

1. Charitable Donations and Charity Partnerships
   Data from charitable donations is typically easy to gather. Most companies maintain records, which can be included in ESG reports to highlight social impact on the community. Additionally, information about charity partnerships, such as the amount donated and specific initiatives supported, can provide a more comprehensive picture of a company's philanthropic efforts and demonstrates ongoing commitment to social responsibility and community engagement.
2. Apprenticeships
   Most businesses have a record of their apprentices. This data helps highlight the commitment to workforce development and providing career opportunities to underserved communities. By showcasing apprenticeship success, companies can demonstrate their positive social impact, particularly in fostering skills and employment opportunities.
3. Training

Training records are usually easily pulled from existing systems. Including this data in ESG reporting showcases a company’s investment in employee growth, supporting career advancement and enhancing workplace diversity. By tracking and reporting on training initiatives, companies can demonstrate their commitment to upskilling their workforce and contributing to broader social goals, such as reducing unemployment or increasing employability.

Difficulties to Watch Out For

1. Data Fragmentation
   Social value data often comes from various departments, making it difficult to centralise and analyse effectively. Inconsistent formats, different data sources, and lack of integration between systems can cause challenges in compiling a comprehensive social value report which is where SustainIQ comes into play. Having a centralised system to capture social value data is invaluable when it comes to reporting.
2. Subjectivity of Social Metrics
   Unlike environmental data, which is more objective, social data often involves qualitative aspects such as employee satisfaction or community feedback. These subjective metrics can be hard to quantify and may require careful interpretation to avoid misrepresentation.
3. Ongoing Monitoring
   Unlike one-time reports, capturing social value data is an ongoing process. Regularly updating and tracking progress over time can be resource-intensive, and companies may struggle with maintaining consistent data collection efforts year after year. A holistic system like SustainIQ helps streamline this process, guaranteeing a consistent data collection method.

Capturing social value data is essential for businesses to effectively communicate their ESG impact. By focusing on clear metrics, staying mindful of potential difficulties, and leveraging existing records as well as expanding on them, companies can streamline the process. While it requires ongoing effort and attention, mastering social value data allows businesses to demonstrate their positive contributions to society and build stronger relationships with stakeholders.