Waste sector could generate 600m in social value

The findings come as the waste management firm announced a new partnership with community interest company REalliance.

The Creating social value report, which was commissioned by SITA and produced by Ray Georgeson Resources, was launched yesterday (October 22) at a drinks reception in Church House Conference Centre, London.

It looks at how the waste management sector can increase its social value the non-financial impacts of organisations including the wellbeing of communities, social capital and the environment. It also looks at how it can improve its work with third sector organisations, following the introduction of the Public Services (Social Value) Act 2012. The Act was introduced earlier this year and applies to public services, including waste and recycling services. It requires councils to demonstrate that social value has been considered in the procurement process.

Findings

The report was built on research previously conducted by the Department for Environment, Food and Rural Affairs (Defra) and the Waste and Resources Action Programme (WRAP). It uses future projections for local authority waste services procurements to estimate the social value of the waste sector.

One of the key findings of the report is that, as the industry moves towards a circular economy, the movement of unemployed people into employment in the waste and resource industry could generate an additional 600million. This was calculated using the assumption that 40% of the jobs created from 2013-2020 are filled by formerly unemployed people at an annualised benefit to society of 18,500.

In addition, it notes that the introduction of the Act could help third sector organisations increase their contract value share in local authority collection contracts to deliver an additional 26 million. It adds that if a greater proportion of this increase in contract value is assigned to reuse projects, the additional annual social value could be up to 54 million.

David Palmer-Jones, chief executive at SITA UK, said: I believe 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.

Recommendations

The report identifies a number of ways in which the waste management and recycling sector can add social value. These include: adding new material streams to existing collections; partnership working with socially-excluded communities through reuse; engaging with hard to reach communities; and offering better service quality and more services for the same cost.

SITA also made several recommendations to ensure maximum impact of the Act on the waste and recycling services, including:

• The Government should establish national guidelines for measuring social value in the waste sector;
• The Government should reintroduce the ability to support waste management projects for spend under the Landfill Communities Fund;
• The third sector should be encouraged to form local medium to long term strategic partnerships with the private sector; and,
• Local authorities should be encouraged to nurture community innovation.

Partnership

In a bid to aid the increase in social value through waste services, SITA has partnered with REalliance. The Bristol-based organisation supports and represents social community enterprises working to use and manage resources sustainably.

SITA UK will work with REalliance to identify opportunities for community resource organisations to be involved in the delivery of waste management and recycling services.

Using REalliances resources, SITA said it will aim to support a range of opportunities within the third sector, including future bids for local authority contracts, which it will lead.

Commenting on the partnership, Mr Palmer-Jones said: 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.