Why does it matter?
In UK public procurement, making social value commitments is only half the equation. Contracting authorities increasingly expect, and in many cases contractually require, suppliers to evidence that they have delivered on those commitments throughout the life of a contract. Poor or absent social value reporting can lead to contract management issues, reduced performance scores, and weaker positions in future tenders. Strong reporting, on the other hand, builds credibility, strengthens client relationships, and provides compelling evidence for future bids.
Key details
What gets reported
The specific metrics reported depend on the framework in use. Under the National TOMs framework, organisations report against specific measures such as the number of local jobs created, apprenticeship weeks delivered, volunteer hours contributed, or tonnes of CO2e reduced, each with an associated proxy financial value. Under the government's Social Value Model (PPN 06/20 / PPN 002), reporting is typically more qualitative, focused on demonstrating delivery against the commitments made during the bid process.
Common categories of social value that are reported include employment and skills outcomes (jobs, apprenticeships, training), supply chain impact (SME and VCSE spend, local procurement), environmental outcomes (emissions reductions, waste diverted from landfill), and community contributions (volunteering, pro bono support, charitable activities).
When and how reporting happens
Social value reporting typically occurs at agreed intervals during a contract, commonly quarterly or annually. Reports are submitted to the contracting authority, often through a dedicated portal or as part of broader contract management reviews. Some organisations also publish social value reports externally as part of their annual reporting or ESG disclosures.
Challenges in social value reporting
The biggest challenges organisations face are data collection (particularly across dispersed supply chains), consistency of methodology, and the administrative burden of reporting against multiple frameworks for different clients. Many organisations still rely on spreadsheets and manual processes, which creates inefficiency and increases the risk of errors.
The value of good reporting
Organisations that invest in robust social value reporting gain a significant competitive advantage. They can evidence their track record in future bids, identify areas where they are over- or under-delivering, benchmark their performance against peers, and build a compelling narrative around their social impact that resonates with clients, investors, and the wider market.
UK & public sector context
Social value reporting is becoming contractually embedded across UK public procurement. Under PPN 002, all social value commitments made by suppliers must be reflected in the contract as contract terms, KPIs, or performance indicators, and monitored accordingly. The Procurement Act 2023 strengthens contract management provisions, requiring contracting authorities to set and monitor KPIs on contracts above £5 million, which increasingly include social value metrics.
For suppliers, this means the days of making aspirational social value promises without evidencing delivery are ending. The organisations that can systematically collect, analyse, and present their social value data will be best positioned as reporting expectations continue to tighten.