In this episode, Molly Galloway, Sustainable Investment Associate at Foresight Group discusses the importance of engaging, enabling and empowering people and organisations to work together in the pursuit of social, economic and environmental wellbeing with Guy Battle, CEO of Social Value Portal. Key Takeaways include: Understanding what social value is, and how this differs from the ‘S’ in ESG Addressing the controversial shelving of the EU’s proposed Social Taxonomy Understanding why quantifying social value in financial terms will accelerate capital toward sustainable outcomes Guy Battle is the Chief Executive of Social Value Portal – an online solution that allows organisations to measure and manage the contribution that their organisation and supply chain makes to society. The podcast is for information purposes only and without limitation, does not constitute an offer, an invitation to offer or a recommendation to engage in any investment activity. Listeners should not construe the content of this podcast as investment advice and no reliance may be placed upon the content. The opinions of speakers are their personal opinions and not necessarily those of their respective companies. Foresight Group LLP is authorised and regulated by the Financial Conduct Authority (FRN 198020). Foresight’s registered office is at The Shard, 32 London Bridge Street, London, SE1 9SG. {TRANSCRIPT} Molly [00:00:04] Welcome to Foresight Sustainability Podcast, a series that explores the sustainability themes that will play a crucial part in shaping our world in the current period of accelerated change. In this series, we will be sitting down with industry experts to explore some of the major developments in sustainability-related fields and consider the challenges facing businesses in a new decade of climate action. With these sessions, we aim to inform and promote dialogue around the mainstreaming of sustainability. I'm your host, Molly Galloway, I'm a Sustainable Investment Associate in the infrastructure team at Foresight Group, an Infrastructure and Private Equity Investment Manager. Today I'm joined by Guy Battle. Guy is the Chief Executive of the Social Value Portal, an online solution that allows organisations to measure and manage the contribution that their organisation and supply chain makes to society. Welcome Guy, would you like to begin by introducing yourself? Guy [00:00:57] Good afternoon, everybody. Or good morning. My name is Guy Battle, I am the Chief Executive of the Social Value Portal. Molly [00:01:05] Great. Thank you for that. Let's jump right into it then with our first question. So the topic of this podcast is social value, but what do we actually mean by the term social value and what's the difference between social value and the social aspect of ESG, which stands for environmental, social and governance, or sustainability? Guy [00:01:26] There's a lot of jargon, alphabet soup of terms and terminologies and acronyms. So, you got ESG, as you mentioned, environmental, social governance, we've got sustainability, we've got social value, we've got social impact, we've got CSR, which stands for corporate social responsibility. There's so much jargon in this space, but I will try and explain where social value sits in it in simple terms. So if you imagine sustainability as being the overarching definition, overarching term, and that kind of comes from the Brundtland report way back in 1987, that defined sustainability as the social, economic and environmental well-being or impact, if you like. So the first takeaway from all of this is that social value and everything else is all about three elements - social, economic and environment. Within that, you've then got ESG, and ESG grew from a sort of investor analyst, and really ESG is all about risk analysis. What risk sits in your supply chain or in a business you might be investing in with respect to environmental, social and the governance side of things? Next to that, we have social values. So if ESG is about the risk or the downside, social value is all about the upside. So what value does a organisation create or an asset create in terms of social, environmental and economic value created? And that's where social value sits. Now we have the other term, which is social impact, and that is more about the long-term impact. So we have the value created over the short term and then we have the impact created over the longer term by an asset or by a business for society. And within all of that, we've got CSR, corporate social responsibility, which is a kind of subset of social value. So a business that is embracing social value as a way of doing its business will have a CSR program. It'll be thinking about what additional activities can it deliver to the communities that deliver sort of value locally. Molly [00:03:29] Great. Thank you for that. I think within the sustainability space, there are so many different terms and acronyms that get thrown around, ...