An additional £600m in ‘social value’ could be generated by the waste and resource management sector by 2020, according to a report from Sita UK.
The report, Creating Social Value, was commissioned in response to the Social Value Act, which comes into force in January, and requires local authorities and other public bodies, to consider economic, social and environmental wellbeing in their procurement processes.
This statutory obligation means that a range of factors can be taken into account when drawing up a contract including, for example, the number of apprentices employed in waste collection. Examples are listed below.
As well as the global figure of £600m, the research for Sita by Ray Georgeson Resources also indicates the legislation could help third sector organisations increase their contract value share in local authority collection contracts to deliver an additional £26m, and perhaps as much as £54m, in social value each year.
The company also announced a partnership with community interest company REalliance. The two parties will work together to identify opportunities for community resource organisations to be involved in the delivery of waste and resource management services.
Sita chief executive David Palmer-Jones said: “There is an opportunity for forward thinking businesses operating in the waste and resource management sector to embrace the purpose of the Public Services (Social Value) Act 2012 and work more closely with third sector organisations.
“We will work closely with our new partner, REalliance, to engage with the rapidly emerging social value agenda and hope that national guidelines will be established soon for measuring social value in the waste and resources sector to assist local authorities in commissioning and procuring services”, he added.
How the waste and resource management industry can add social value
|Third sector involvement|