SROI standardisation programme launched

07/05/2008

A new programme to standardise and improve how social return on investment (SROI) is measured has been launched by the government.

Minister for the third sector, Phil Hope, announced the plans yesterday at a social investment conference.

The project, which will bring together the public sector, independent investors and social enterprises, will agree a standard methodology for SROI measurement, allowing social enterprises to have access to more sustainable funding and finance.

Hope said the research will aim to be an important driver of the rapidly developing social investment market, worth around £30bn in the UK.

He added that increasingly, investors are looking at the impact of their investment on society and the environment, meaning the research may see the introduction of a social stock exchange and a social investment wholesaler.

“Consistent measurement of social return has the potential to enable investors to put a financial value on the social and environmental benefits derived from their investment,” he told the conference.

“Social enterprises play hugely important roles in improving peoples' lives as well as the environment. Like any businesses they need access to finance.

“This will enable them to demonstrate their impact to investors and public services and help them attract funding,” he said.