Storytelling has long been central to ESG communication. But today, stories alone are not enough.
Business leaders increasingly recognise that every narrative must be backed by credible data and measurable results - especially in the underserved 'Social' pillar.
According to research from the Conference Board, 76% of companies seeking a clear return on investment (ROI) from sustainability initiatives aim “to strengthen (their) sustainability story”, while one in three cite growing “scrutiny from management” as a key driver.
PwC research, meanwhile, has found that 72% of investors want to know that ESG actions are relevant to a company’s business model, and 71% want to understand the costs of meeting sustainability commitments.
Together, these findings point to a clear conclusion: ESG decision-makers are under intensifying pressure to prove measurable ROI, not just tell compelling stories.
Why measurable Social Value is the missing link in ESG strategy
Many feel that business leaders should simply fund environmental, social, and governance initiatives because it’s the right thing to do.
Indeed, 77% of the UK public believe businesses should be legally required to prioritise people and the planet alongside making a profit, while 83% of consumers in Europe and the US think companies should be actively shaping ESG best practices.
But good intentions alone don’t secure investment or influence. Without credible, measurable data to demonstrate positive impact, ESG functions risk being seen as cost centres rather than strategic value drivers – and cost centres are often first in line when budgets tighten.
The organisations that break out of that trap treat ESG not as a reporting exercise, but as a source of competitive advantage.
This means using robust measurement and reporting to prove how their actions create tangible value for communities, investors, and the business itself - which is where Social Value comes into its own.
The power of Social Value for ESG teams
Where traditional ESG focuses on risk mitigation, Social Value focuses on capturing the total benefit an organisation creates for the economy, environment, and society - from local hiring and community volunteering, to reducing emissions, partnering with the third sector, and embedding sustainable procurement practices.
The Global TOM (Themes, Outcomes, Measures) System makes this impact measurable and comparable.
In addition to tracking outputs like apprenticeship weeks or volunteer hours, the TOM System applies financial proxy values that translate outcomes into clear, monetised figures.
This allows ESG leaders to speak the language of both purpose and performance, turning social impact into a credible business metric.
Let’s take the example of employing a person who is long-term unemployed in France and Australia:
A global company operating in both these markets to communicate the societal value being delivered in both the currencies, and with an international figure that allows for direct cross comparison.
While it was traditionally a focus for the public sector, Social Value has been enthusiastically adopted by the private sector as well, with a growing number of businesses using the frameworks to measure and improve their impact on communities:
- ISS: Measured $1.22 billion of Social Value in 2024, with key contributions including 55k individuals employed in Spain, including 2,450 employees with a recognised disability – 4.43% of total workforce, exceeding Spain’s 2% legal threshold.
- Compass Group UK & Ireland: Delivered £718 million of Social Value in 2022, measured through the TOM System, including £7 million in direct organisational initiatives alongside extensive local economic value.
- Roche Diagnostics (UK): Created £9.2 million of Social Value in 2023 through its healthcare contracts, focusing on waste reduction, skills development, and community partnerships.
The next steps in your impact journey
Social Value marks a defining shift for ESG leaders: from explaining why initiatives matter to proving what they achieve. By combining credible data with powerful storytelling, you can build the trust and buy-in needed from stakeholders, customers, and communities alike.
Explore how leading organisations are putting this into practice in our deep dive - Global Social Value: A new approach to social impact in business.
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