Social Value in Procurement
Embedding social value to drive positive change, support local communities, and ensure that every pound spent delivers lasting impact, maximising public benefit.
Why it is important:
Organisations are now required to have regard to the importance of maximising public benefit, rather than merely considering social value. Decisions should contribute meaningfully to social, economic and environmental wellbeing.
A minimum of 10% weighting for social value in tender evaluations ensures that suppliers are incentivised to deliver outcomes that go beyond efficiency.
The Public Procurement Act 2023 replaces the “Most Economically Advantageous Tender” (MEAT) with MAT, allowing procurement to prioritise long-term values, including community impact, sustainability and inclusion, not just cost.
To reduce barriers for small and voluntary sector organisations, making it easier for them to access public contracts and contribute to local regeneration and resilience.
Organisations are encouraged to use frameworks like TOMs (Themes, Outcomes, Measures) to define, track, and report social value outcomes consistently, ensuring transparency and accountability.
Examples of social value:
Mentoring and work experience for participants.
Creating new apprenticeship and graduate roles as part of contract delivery.
Inclusive recruitment from underrepresented or disadvantaged groups.
Sponsoring research projects linked to contract.
Offering internships and volunteering opportunities.
Hosting local engagement events.
Providing free training sessions.
Using local SMEs and VCSEs.
Sustainability in Procurement
ETF spending actively supports the UK’s transition to Net Zero, promoting growth and enhancing environmental resilience.
By integrating sustainability into procurement, public sector organisations can use their influence to protect the environment, stimulate green innovation, and lead by example in the fight against climate change.
Why it matters:
Organisations must now consider how procurement decisions can deliver public benefit, which explicitly includes environmental sustainability. This ensures that every contract contributes to long-term ecological wellbeing.
The National Procurement Policy Statement (NPPS) requires organisations to:
Support the transition to Net Zero emissions.
Enhance biodiversity and climate resilience.
Reduce carbon emissions, energy use, and waste across supply chains.
Organisations are encouraged to include sustainability-related award criteria, such as:
Use of low-carbon materials.
Adoption of circular economy principles (reuse, recycling).
Sustainable transport and logistics.
Supplier commitments to environmental standards (e.g. ISO 14001).
Early market engagement enables organisations to shape specifications that reflect life-cycle environmental impacts.
Transparency and reporting – For contracts over £5 million, organisations must report on Key Performance Indicators (KPIs) which can include:
Carbon footprint reduction.
Waste minimisation.
Energy efficiency.
Examples of sustainable procurement in practice:
Implementing energy-saving measures (e.g. LED lighting, insulation).
Reducing waste through recycling and composting.
Promoting decarbonisation via sustainable transport and energy use.
Embedding the Education for Sustainable Development (ESD) toolkit to foster climate awareness and participant-led sustainability projects.
Choosing sustainable venues for events and delivery.
Prioritising suppliers with strong environmental credentials.
Equity, Diversity, Inclusion & Accessibility in Procurement
By embedding Equity, Diversity, Inclusion and Accessibility (EDIA) into procurement, public sector organisations can ensure that contracts reflect the diversity of the communities they serve, remove barriers, and create inclusive environments where everyone can thrive.
Why it is important
Organisations are now required to consider how procurement can advance equality of opportunity and fostering positive relations between diverse groups. This ensures that public spending reflects the values of fairness, respect, and inclusion.
The National Procurement Policy Statement (NPPS) highlights the role of voluntary, community and social enterprises (VCSEs) and Small, Medium Enterprises (SMEs) in:
Building diverse and resilient local economies.
Promoting inclusive employment and economic growth.
Deliver accessible services tailored to community needs.
Organisations are encouraged to include EDIA-related criteria in tenders such as:
Inclusive hiring practices and workforce diversity.
Accessibility of services, facilities and communications.
Supplier commitments to Equality Act 2010 compliance and beyond.
Inclusive procurement practices help eliminate obstacles for underrepresented suppliers and communities by:
Use inclusive language and accessible formats.
Hosting representative supplier engagement events.
Provide training on unconscious bias.
Ensuring accessibility standards in service design.
Examples of EDIA in practice:
Inclusive cultures:
Everyone feels welcome and respected.
Staff and students support one other.
Diverse voices are heard and valued.
Inclusive policies:
Fair and equitable recruitment and promotion processes.
Physical spaces are adapted for universal access.
Inclusive practices:
Lessons designed for diverse learning styles and needs.
Curriculum promotes empathy, cultural awareness, and anti-discrimination.
Student collaborative and contribute to shaping their learning experience.
Support for diversity:
Staff training on disability equality, anti-racism, and inclusive pedagogy.
Integrated support: SEN, EAL, and pastoral needs.
Active policies to address racism, sexism, homophobia, and other forms of discrimination.
Impact in Procurement
The importance of demonstrating impact:
Clear expectations drive innovation:
When ETF defines and measures impact – such as social value, sustainability, or EDIA outcomes - suppliers are encouraged to think creatively about how they can meet or exceed those expectations. This leads to:
New service delivery models
Innovative use of materials or technology
More inclusive and sustainable practices
Competitive advantage for responsible suppliers:
Organisations that can demonstrate positive impact – through low-carbon solutions, inclusive hiring, or community engagement – gain a competitive edge in tenders. This motivates them to invest in innovation that aligns with public sector goals.
Encourages Collaboration and Co-Design
Impact-focused procurement often involves early market engagement, giving suppliers the opportunity to shape specifications and propose innovative approaches. This fosters collaboration and leads to more tailored, effective solutions.
Incentivises Long-Term Thinking
When contacts include Key Performance Indicators (KPIs) and require ongoing impact reporting, suppliers are incentivised to develop sustainable, scalable innovations that deliver value over time – not just at the point of delivery.
Opens Doors for SMEs and VCSEs
Impact-driven procurement lowers barriers for small and voluntary sector organisations, which are often more agile and innovative. By valuing impact over scale, authorities create space for new ideas and diverse suppliers to thrive.
Additional guidance: How to write a bid: a supplier guide (source: Crown Commercial Services)