Social Value and Sustainability Policy - Print version

Our vision

Purpose and Introduction to the Policy

This policy outlines Coventry Council’s definition of Social Value and Sustainability and explains how Social Value and Sustainability are considered and addressed through its day to day activities. Coventry Council has embedded the Public Services (Social Value) Act 2012 within procurement processes and subsequent third-party contracts where proportionate and relevant.

Coventry City Council sees Social Value and Sustainability as having a much wider context than simply procurement and subsequent third-party contracts within its organisation, such as within Major Development Project Planning. Long term sustainable solutions, and additional value and benefits can also be driven and delivered to our communities by engaging and working closely with partners and key anchor institutions within the City.

This view is also in line with the Council’s One Coventry approach and our One Coventry Values. One Coventry is the organisational approach that helps shapes the way the Council works with its partners
to improve the City and improve people’s lives. It includes the Council’s vision, values and priorities, new ways of working, and core areas of activity to deliver the One Coventry Plan objectives, key strategies and approaches. One Coventry will enable better use of resources to deliver better outcomes for people, and help the Council meet the challenges of increasing demand and reduction in funding. The One Coventry Partnership is the key partnership forum to drive the One Coventry approach for the
City. Adopting the One Coventry Approach enables the Council to work together with other Partners in the City as a Partnership. The One Coventry Partnership consists of senior officers from broad ‘public sector’ agencies from across the City e.g. Coventry University. The One Coventry Partnership’s aim to enable a consistent, joined-up public sector approach to the development and delivery of strategic City-wide priorities. The One Coventry Partnership also promotes and works to develop a One Coventry
approach culture for how the public sector behaves and relates to communities and the voluntary and its community sectors.

So many decisions we make have wider implications for society and the environment at a local and global level whether it is:

• the goods we purchase; or
• the services we commission from others to address local needs; or
• by shaping future planning for development across the City; or
• influencing the way, we and our partners work.

With a clear policy framework in place, the Council can make a big difference to people’s lives and help to address those environmental, economic and social issues impacting upon inequalities and sustainability. Social value addresses two forms of equity:

Intergenerational equity - where the actions of the existing generation are not carried out at the expense of future generations, we aim to leave the next generation with the same or a better environment and quality of life as we have today; and that of
Intragenerational equity - where there is fairness and justice in today’s society, whether that be addressing inequalities within our City or inequalities between our society and that in other parts of the world e.g. Fair Trade. The Council’s commitment to delivering the 17 United Nation’s Sustainable Development Goals (SDGs) listed below will be supported by this policy framework.

The United Nation’s Sustainable Development Goals ‘…recognise that ending poverty and other deprivations must go hand-in-hand with strategies that improve health and education, reduce inequality, and spur economic growth – all while tackling climate change and working to preserve our oceans and forests.
Arguably, all the SDGs are relevant to this policy and promote social value across the city. Below are some examples that can be linked to measurable outcomes of the Social Value and Sustainability Policy:

Goal 1: No Poverty
Goal 2: Zero Hunger
Goal 3: Good Health & Wellbeing
Goal 7: Affordable clean energy
Goal 8: Decent work and economic growth
Goal 10: Reduced inequalities
Goal 11: Make cities and human settlements inclusive, safe, resilient and sustainable.
Goal 12: Ensure sustainable consumption and production patterns.
Goal 16: Promote peaceful and inclusive societies for sustainable development.

Creating Social Value

Creating Social Value is essential for meeting these goals and these can be illustrated by the following types of activity:

Communities

• Health and wellbeing
• Combatting food poverty
• Improving air quality
• Skills and employment
• Education
• Tackling fuel poverty
• Community Funding
• Promoting community cohesion
   

Environment

• Addressing climate change
• Reducing pollution to air, water and soil
• Protecting natural ecosystems and promoting biodiversity
• Flood mitigation

Economy

• Employment opportunities and prospects
• Fair wages
• Organic growth and local supply chain
• Innovation
• Business start ups
• Inward investment
• Circular economy
• Social enterprise
   

Declining resources, increasing pollution, growing pressures on our ecosystem services and increasing inequalities impacting upon social welfare and health are new challenges and we need to explore opportunities to operate in different ways in order to maximise our effectiveness at overcoming them. This means working together within the Council and with other organisations, groups and residents around Coventry to benefit our communities and those who live, work and study in the City. Coventry City Council is seeking to lead by example on the low carbon agenda and aims to be a Zero Carbon sustainable City. The target date for achieving zero carbon status will be set by the partners working across the City once the commitments are declared by the Council and its private, public and voluntary sector partners. The West Midlands Combined Authority (WMCA) has set a series of target dates for the region for achieving a percentage reduction to 1990 levels of carbon emissions.
 

Coventry City Council has also endorsed and supported Eurocities call to revise the EU 2030 climate targets to at least 55% by 2030 and up to 65% with the right support, compared to 1990 levels. Coventry City Council has joined 58 cities from across Europe who want to see this more ambitious target, ensuring a green and just recovery across these cities. The Council intends to develop a new Climate Change Strategy and Action Plan, which will involve engagement across a broad section of public,
private, voluntary and community agencies with commitments to local and citywide individual and collaborative actions for carbon reduction and delivering sustainable development. The next Strategy and Action Plan therefore will be a Citywide commitment with the stakeholders making their own and collaborative commitments and measurable targets for carbon reduction measures across the City.

An important part of this goal is to reduce the significant health inequalities which exist within the City population. Life expectancies can vary by as much as 10.5 years between the richest and poorest neighbourhoods. Ensuring the health of all Coventry residents is improved by using the Social Value and Sustainability policy to drive policies and practices within the Council, its partners and contractors which will result in more equitable outcomes, taking a proportionate universalism approach, and universal
services are provided proportionate to the level of need.

Coventry City Council will encourage other organisations and businesses to follow its example. We will continue to drive competition and innovation across the City and amongst a range of suppliers, including small and medium sized enterprises (SMEs), maximising every opportunity to become energy and resource efficient, as well as promoting supplier diversity through ethical and sustainable procurement practices. We will deliver savings and promote inclusive economic growth which reduces socioeconomic inequality such as providing good quality, secure jobs and supporting the real living wage for their staff.

We will promote supplier diversity through our ethical and sustainable procurement practices; particularly focusing on increasing the number of Voluntary Community Social Enterprises (VCSEs) and Small Medium Enterprises (SMEs), within the Council’s supply chain. This will be achieved by improving the visibility and accessibility of the Council’s business opportunities, facilitated through direct engagement, supplier workshops and timely promotion of opportunities.

Better Value for Money delivering more for the public pound by requiring your suppliers to do more than ‘just’ deliver the core services

• Increases local spend by rewarding organisations that are local or have a local supply chain, especially SMEs and VCSEs
• Increases opportunities for disadvantaged people and promotes social mobility
• Promotes a responsible supply chain by requiring businesses to compete
• Leads to a cleaner, greener city
• Builds stronger, more resilient communities
• Leads to greater innovation and long-term thinking

Background to the Policy

Coventry City Council implemented its first Social Value Policy in 2014, following the publication of the Public Services (Social Value) Act 2012. This policy is the second revision and has been updated to fall in line with the latest practices of evaluating, embedding and measuring Social Value and Sustainability.

This policy replaces the Council’s Energy and Water Management Policy and covers a much broader definition of sustainability. This new policy will ensure that the way we operate as a Council will be as sustainable as possible and help the city to achieve its climate change targets. Underpinning this policy sits a number of specific sustainability polices such as ‘Energy & Carbon’ and ‘Single Use Plastics’, which support the Council’s Social Value and Sustainability Outcomes as detailed in Appendix 1.

Coventry City Council plays an important role in the provision of services to the people of Coventry as well as our influence over economic growth and development. Our property estates, operations, and the actions of our staff and suppliers have environmental impacts and we are seeking to reduce our impacts including carbon emissions within the Council and the city. The specific sustainability policies aim to set out the context in which we will work both internally and with our stakeholders to manage our environmental responsibilities and to ensure we lead by example and work towards a clean, green sustainable Coventry.

The impacts of Climate Change disproportionately impact on those living in the more deprived areas, therefore mitigating against Climate Change will contribute towards reducing health inequalities.

Since 2013, Coventry has been a Marmot City, demonstrating a strong unified commitment to addressing the health inequalities in the city which ultimately result in those in the most deprived areas of the city living fewer years in good health and dying at a younger age than their more affluent peers. These health inequalities are driven by a range of wider determinants: social, economic and environmental factors which impact on people’s lives, which are affected by policies and practices implemented by the council and other organisations and businesses across the city. Embedding social value can lead to improved service delivery, greater economic growth, greater engagement with the voluntary, community and social enterprise sector, improved wellbeing and quality of life and an increase in the resilience of communities. Acting to increase social value also has the potential, in the longer term, to reduce demand on health and other services by improving the health and wellbeing of the population [“Using the Social Value Act to reduce health inequalities in England through action on the social determinants of health” Public Health England & UCL Institute of Health Equity Sept 2015].

However, we know that we cannot do this alone and the One Coventry approach will help us to challenge ourselves to ensure that our focus is on those things that people value most. It will help the Council to do the right thing and be clear about why we do things and why we can’t, but it will also help us to bring in new ideas and involve the right people. We must enable our residents to do more for themselves and change traditional relationships.

Defining Social Value and Sustainability

The Public Services (Social Value) Act 2012 does not define what is meant by ‘Social Value’. Therefore, Coventry City Council has adopted and developed the definition of Social Value as originally set out by the Sustainable Procurement Taskforce. Social Value and Sustainability are defined as:

The umbrella of ‘Economic’, ‘Social’ and ‘Environmental’ themes, whereby the Council meets its needs for goods, services, works and utilities in a way that achieves value for money on a whole life basis in terms of generating benefits not only for the Council, but also to its local society and economy, whilst protecting, sustaining and enhancing the environment for the long term.
 

Our Social Value and Sustainability Outcomes

Coventry City Council has developed a set of representative and example outcomes that allows it to consider the economic, social and environmental well-being of Coventry City and its residents, as per Appendix 1. These outcomes are supported by the vision, values and priorities contained in the One Coventry Plan. Suppliers, Contractors and Developers are encouraged to align their values with the Council’s Plan, as well as the Social Value and sustainability requirements of the individual contract
or planning permission they are applying for and how they can align their bid submission/planning application to meet the required outcomes.

The Council is committed to working towards paying its directly employed staff the Living Wage Foundation ‘Real’ Living Wage. We will be encouraging our sub-contractors and commissioned providers to work towards this objective. In addition, we will be encouraging our partners to follow our lead to promote this objective.

The Council’s commitment to equality, diversity and inclusion is at the heart of achieving our Social Value and Sustainability Outcomes. The Council is committed to meeting all parts of the Public Sector Equality Duty through incorporating equality and diversity into all stages of its commissioning and procurement activity and this is demonstrated by key actions within the Diversity and Inclusion Strategy. This will enable the Council to help deliver resource-efficient services to the people of Coventry, as well as
encourage our partners/providers to deliver good equalities practice within their own organisations.

The Council will also ensure that Equality Impact Assessments are carried out regularly as part of the commissioning process. These assessments will allow the impact on key groups to be analysed and also consider the impact on vulnerable residents and those living in deprived areas
 

Delivery of Social Value and Sustainability

Coventry City Council delivers Social Value and Sustainability through various channels as listed below:

• Commissioning & Procurement and subsequent third party contracts.
• Major development project planning applications
• City Council partners

7.1 Commissioning & Procurement and Subsequent Third-Party Contracts

7.1.1 Consideration

Before commencing a procurement process, the Council considers how the economic, social and environmental well-being of the City may be improved through the procurement of its services and subsequent third-party contracts.

The aim of the Public Services (Social Value) Act 2012 is not to alter the commissioning and procurement processes, but to ensure that as part of these processes, Coventry City Council gives consideration to the wider impact of the services delivery. It allows the Council for example, to choose a supplier under a tendering process who not only provides the most economically advantageous offer e.g. providing consideration for quality and cost, but one which goes beyond the basic contract terms and secures wider benefits for the community.

The Act applies to services contracts and contracts which combine service with the purchase or hire of goods. However, the Council has for many years considered social, economic and environmental issues when procuring goods, services and works. Therefore, the Council will continue to encourage consideration of Social Value outcomes in all contracts above the Public Contract Regulations thresholds, where it can be evidenced that it is relevant to the subject matter of the contract. For those
contracts that fall below the Public Contract Regulations thresholds, the approach should be to maximise these outcomes where possible and practical to do so.

7.1.2 Consultation

In discharging its statutory duties, the Council is required to consider whether consultation should take place as part of the commissioning process, so as to allow the community and voluntary sectors to be more closely involved; this again ties in with the One Coventry approach. Consultation should be considered as part of the process of looking at how a procurement might be offered for tender, in such a way to improve the area’s economic, social and environmental well-being.

7.1.3 Implementation

The Council has also developed a Procurement & Commissioning Social Value and Sustainability Implementation Framework (Appendix 2), which sets out the Council’s approach to delivering its Social Value and Sustainability Policy. The Framework sets out how the Council will ensure that Social Value and Sustainability is embedded in its commissioning cycle, the governance arrangements in place to deliver and a set of indicators that will be used to consider the potential Social Value and Sustainability
that could be delivered with regard to the Council’s Social Value & Sustainability Outcomes.

7.1.4 Evaluation

The Council procures a wide range of goods and services, and it is recognised that there can be no ‘one size fits all’ model. This Social Value and Sustainability policy will therefore need to be applied in a proportionate manner and be tailored to reflect the service or goods to be procured. It is the responsibility of service commissioners and procurement leads to consider, on a contract by contract basis, the potential Social Value outcomes that could be delivered through the procurement process and the most appropriate procurement strategy and Social Value and Sustainability evaluation tools to achieve these outcomes. The evaluation tools utilised can be of both an objective and/or subjective nature, to quantify the Social Value and Sustainability offered as part of the procurement & commissioning exercise.

7.1.5 Demonstration

Applications to provide services from organisations should therefore demonstrate and where appropriate their supply chains’, ability to add economic, social and environmental value to the City above and beyond simply providing the tendered service and to provide evidence which would contribute to the Outcomes set out in Appendix 1

7.1.6 Contract Monitoring and Management

The Council will monitor and record Social Value and Sustainability delivered throughout the contract period e.g. via contract management meetings, to ensure that supplier commitments made at the procurement & commissioning exercise stage are fulfilled. Through contract management, the Council will also look to understand what additional Social Value and Sustainability outcomes suppliers can deliver, to that committed to prior to contact award, as well recording contributions to the economic,
social and environmental themes from suppliers that were not obliged to commit to delivering Social Value and Sustainability outcomes at the tender stage.

7.2 Major Development Project Planning Applications

7.2.1 Consideration

All major planning applications (as defined by the Town and Country Planning Act) will be asked to develop a Social Value and Sustainability action plan incorporating jobs, apprenticeships, skills, supply chain, community & school engagement and sustainability.

7.2.2 Consultation

A planning consultation will be attached to the planning application relating to a Social Value and Sustainability action plan. The developer/contractor must meet with the Economic Development Service (EDS) Social Value and Sustainability Officer to develop a plan and set targets/outcomes in relation to the project. The One Coventry approach enables the Council to talk & work with the right stakeholders, groups & residents, to ensure people’s opinions are heard and acted on.

7.2.3 Implementation

All major development projects must engage with the EDS Social Value and Sustainability action plan or the planning consultation will not be discharged against the planning application.

7.2.4 Evaluation

Developers/contractors are required to complete the EDS submission form detailing the measures and outcomes they plan to achieve in relation to Social Value and Sustainability on the major development site

7.2.5 Measurement / Demonstration

Developers/contractors must meet with Coventry City Council EDS service to demonstrate that action is being taken on the plan by liaising with identified stakeholders. Evidence of achievements against targets must be submitted quarterly for monitoring and reporting. Further information on the Economic Development Service can be viewed in our Economic Growth & Prosperity Strategy for Coventry 2018-2022

7.3. Council Partners

7.3.1 Anchor institutions are large, public sector organisations that are unlikely to relocate and have a significant stake in a geographical area. As an Anchor Institution, the Council is keen to work in partnership with others to improve the City and the lives of local people. The Council will work towards a shared set of Social Value and Sustainability principles with its Partners and Key Anchor Institutions within the City. By working in a One Coventry approach, together, we will:

• Harness the combined influence of key partner organisations and scale up the impact of cross organisational activity in local communities;
• Identify key links and work with Partners on specific initiatives that align with both the Council’s and the Partner’s individual Social Value and Sustainability outcomes.

Social Value and Sustainability Tool Kit

The Council’s Social Value and Sustainability Tool Kit is an internal document used by Council Officers to assist and ensure that the principles of this Social Value and Sustainability policy, are embedded within the Council’s day to day activities and delivered through the three main areas below:

• Commissioning & Procurement and subsequent third party contracts.
• Major development project planning applications
• City Council partners

Coventry City Council implemented its first Social Value Tool Kit following the launch of its Social Value Policy in 2014. The latest Tool Kit is the second revision and has been updated to also provide guidance on delivering Social Value & Sustainability via Major Development Project Planning and approaches the Council can adopt to work more closely with its City Partners.

The Tool Kit provides guidance and ideas on how to consider and incorporate Social Value and Sustainability, for example within a procurement process through to the contract management stage. Tools are provided in the Tool Kit, to evaluate and measure Social Value and Sustainability objectively such as the TOMs (Themes, Outcomes and Measures) National Framework. The Tool Kit provides guidance whilst also linking into other Council strategies policies and processes that should be considered.

Monitoring and Review of Social Value and Sustainability Delivered

The Social Value and Sustainability Policy will be monitored on an ongoing basis i.e. through the use of objective e.g. the TOMs (Themes, Outcomes and Measures) National Framework and/or subjective criteria, to quantify the Social Value and Sustainability delivered. Reports on the Social Value and Sustainability delivered will be submitted to the Council’s relevant Cabinet Member(s) on an annual basis.
 

Appendix 1: Our Social Value and Sustainability Outcomes where relevant and proportionate

Economic Outcomes:

• Create jobs, upskill local people - increase the number of local people in employment
• Support and empower local people to connect with jobs – maximising knowledge, training opportunities, skills & access to employment opportunities via economic growth
• Minimising the impacts of business on our current and future environment, using resources efficiently and promoting re-use and repair to support a sustainable circular economy with opportunities to work with local SMEs, VCSEs – delivering sustainable and inclusive economic growth for the City to prosper
• Improved employability of young people – supporting young people into apprenticeships
• Enhance Coventry’s profile as a city that is open for business by supporting the growth of an innovative green economy – secure inward investment from key sectors

Social Outcomes:

• Consider equality and diversity in the provision and operation of services, including a workforce that is representative of the communities we serve, where relevant and proportionate
• Promote the safeguarding and welfare of children, young people and vulnerable adults
• Progression and consideration towards paying the Real Living Wage
• Improving the protection, health and wellbeing of local residents, inc. employees and reducing health inequalities
• Provide opportunities e.g. employment opportunities for all, including the most vulnerable, to make a valuable contribution
• Marmot Partnership Group aims to ensure opportunities arising through Social Value work are targeted appropriately and result in a reduction in health inequalities

Environmental Outcomes:

• Ensuring environmental sustainability by retaining, protecting and enhancing the environment, the efficient and responsible use of resources and tackling climate change in Coventry
• Efficient use of resources by minimising waste and reducing its impacts, and procuring materials from sustainable and ethical source
• Reduce energy, water and fuel consumption/use, and maximise renewable and low/zero carbon technologies
• Effective and improved environmental performance

Note: The example Outcomes listed above is not exhaustive list of Outcomes and it should be noted that many of the Outcomes may apply across more than one Theme, e.g. Real Living Wage could also feature as an Economic Outcome as well as a Social Outcome.
 

Appendix 2: Procurement & Commissioning Social Value and Sustainability Implementation Framework

Throughout the Procurement & Commissioning process, the Council will ensure Social Value and Sustainability is considered and subsequently delivered.

Governance Arrangements

The Council will use its existing governance arrangements, through both its democratic governance, as set out in the Council’s Constitution, and its Strategic Category Panels, in order to ensure scrutiny and control of procurement decisions so that the Council achieves Social Value, where appropriate.

The Strategic Category Panels ensure that the Council achieves the best possible outcomes using the resources available, as efficiently as possible and with a view to reducing health inequalities. By embedding Social Value and Sustainability and the One Coventry approach into the Procurement governance documents, which are taken to Strategic Category Panels for approval, the Council will meet its obligations under the Public Services (Social Value) 2012 Act.

Procurement & Commissioning Exercise

The opportunities to secure improvements to social, environmental or economic wellbeing will vary from contract to contract. Consideration of Social Value and Sustainability is built into all the stages of the Council’s procurement & commissioning exercise – when reviewing service provision; conducting a needs analysis; consulting stakeholders and/or the marketplace; and specifying the services to be procured. Together with work through the One Coventry approach to engage residents, businesses and organisations, this offers more genuine opportunities to local Small Medium Enterprises (SMEs), Voluntary, Community and Social Enterprises (VCSEs) and community groups to become involved, ensuring Supplier Diversity, whilst maintaining our focus on obtaining value for money.

Social Value and Sustainability Indicators

The Council has identified a set of indicators that can be used to measure and track the amount of Social Value & Sustainability delivered through contracting arrangements. When commissioning goods and services, commissioners and procurement leads must consider the indicators for inclusion into the award criteria or as a performance obligation, where appropriate. These indicators are not an exhaustive list, and commissioners and procurement leads may wish to consider additional indicators.

Economic

Social

Environmental

Glossary

Equalities Impact Assessment

An Equality Impact Assessment is a tool used by the Council to ensure that we consider the effect of the Council’s decision-making processes on different groups of people protected from discrimination – these are called ‘protected groups’.

Protected Groups*

Under the Equality Act 2010 certain groups are classed as having ‘protected characteristics’ These groups are age, disability, gender reassignment, race, religion or belief, sex, sexual orientation, marriage and civil partnership and pregnancy and maternity. The needs of these groups are specifically considered when the Council is making any policy decisions.

Vulnerable Groups*

These are groups who may not specifically fall under the protected characteristics groups but may be more affected by decisions made by the council and are therefore considered when the Council is making policy decisions. Groups which fall under this definition may include, but are not limited to, people on low incomes, single parent families, Care Leavers (an adult that is aged 18-25 that was in care) and people with multiple and complex needs.

Under represented Groups*

These groups include under represented gender groups, under represented ethnic groups e.g. minority ethnic groups, disabled including people with physical or learning disabilities, white working class boys, homeless, rehabilitating young offenders, Not in Education or Employment or Training (NEETs) including those with low or no qualifications, older people, ex-offenders and ex-forces.

Marmot City

In 2013, Coventry committed to a city-wide approach to tackle health inequalities as set out in Sir Michael Marmot’s 2010 report, ‘Fair Society, Healthy Lives’. In doing this, Coventry became one of seven so-called ‘Marmot Cities’. Of the original seven cities that committed to tackling health inequalities through this approach, Coventry is the only one that has continued this approach.

Marmot Group

A multi-agency partnership group which leads on the work in Coventry to address health inequalities. The group includes representation from the Council, NHS, Police, Fire Service, voluntary agencies, Coventry & Warwickshire LEP, Chamber of Commerce, DWP and Public Health England.

Long-Term Unemployment

Anyone unemployed (not in work but seeking work) for 12 months or more is considered long-term unemployed.

*Note: These groups may cross over depending on the individual’s needs & situation and the Council policies that are in place, for example a ‘homeless’ person could fall under ‘Under represented Groups’ and/or ‘Vulnerable Group