Social Value: Quantifying Social, Environmental, and Economic Impacts

In today’s rapidly evolving infrastructure landscape, businesses are increasingly required to quantify not just their financial performance, but also their social, environmental, and economic impacts. At Ventia, we believe that it is essential to systematically measure these impacts to build trust, create transparency, and ultimately making sure infrastructure truly works for our communities and drive positive change within society.

To achieve this, we have adopted the Themes, Outcomes, and Measures (TOMs) system—a globally recognised social value measurement tool—and are working with industry partners to tailor it to the unique context of Australia and New Zealand.

Our commitment to developing a Social Value Framework in line with the TOMs system has positioned us at the forefront of social impact measurement in the region. This effort is not just about Ventia; it’s about raising the bar for how social value is understood, measured, and reported across industries.

Our leadership in co-chairing the Social Value Taskforce for Australia and New Zealand (ANZ) has brought together over 40 organisations from across the public, private and 3rd sectors to collaborate on a common and consistent, regionally relevant approach to social value measurement.Why Social Value Measurement MattersThe significance of social value goes beyond simply “doing good.” For us, social value is about ensuring that every decision we make positively impacts the communities in which we operate. Measuring this impact has profound benefits for both buyers and suppliers, especially in a world increasingly focused on value for money and outcomes.

Here are two primary benefits of quantifying social value through systems like TOMs:

1. Outcomes, outcomes, outcomes: The TOMs framework helps clarify the specific outcomes we want to see more of. This is especially important for non-subject matter experts, as it lays out the relative value of different social contributions in a clear, comparable way. By defining themes and outcomes, it guides organisations ations to focus on what truly matters—whether that’s local employment, supporting Indigenous businesses, or reducing carbon emissions. For example, Ventia’s Social Value Framework delivered $4.3 billion in social value in 2023, underlining the immense potential of structured impact measurement.
2. Comparability: One of the most valuable aspects of the TOMs system is its ability to provide a common language for comparing performance across our business and supply chains. Whether it’s spending with local businesses, reducing emissions, or employing long-term unemployed individuals, TOMs allows us to compare “apples with apples.” This comparability benefits both buyers and suppliers by providing clear, actionable insights into what’s working and what isn’t, driving better decision-making across sectors.

Tailoring TOMs to the ANZ Context

While the TOMs system has been effective globally, the unique context of Australia and New Zealand requires an adapted approach. Through the Social Value Taskforce, we are leading efforts to develop regionally specific TOMs that reflect the social and environmental challenges and opportunities here. Importantly, we’ve agreed that the systems for Australia and New Zealand will remain separate but compatible, allowing cross-border businesses to report a single social value figure in the relevant currency.

Some of the specific elements being addressed include:

• Defining “Local”: One of the key challenges we’re tackling is how to define “local” in a meaningful way for both countries. In a vast region like Australia and New Zealand, perceptions of “local” can vary significantly depending on geography, culture, and socio-economic conditions. The TOMs system is being designed to account for this, ensuring that local needs and priorities are accurately reflected.
• First Nations Representation: In Australia, the inclusion of Aboriginal and Torres Strait Islander communities is a critical part of our social value framework. Similarly, Māori and Pasifika communities in New Zealand are central to how we think about social impact. The TOMs system is being adapted to measure and reflect outcomes that are specifically relevant to these groups, acknowledging their unique place in both nations’ social fabric.Leadership Through Collaboration

Our commitment to co-chair the ANZ Social Value Taskforce is rooted in our belief that industry-wide change requires collaboration. We’ve brought together organisations from government, the private sector, academia, and the third sector to develop a shared framework for social value measurement. By doing this, we’re not only driving improvements within Ventia but also helping to elevate the entire industry’s standards around social and environmental impact.        

By opening up the TOMs system under a Creative Commons License, we will make this tool available to any organisation, free of charge, for non-commercial use. This approach ensures that businesses across Australia and New Zealand can measure their impact in a transparent, standardized way—creating a ripple effect that will benefit the entire infrastructure sector and the communities we serve.Looking Ahead.

As we continue to refine the ANZ TOMs framework, our focus remains on outcomes that matter. Our next steps include targeted consultations with government bodies, NGOs, and industry leaders to finalise a set of core measures by early 2025. These measures will form the backbone of our social value reporting system, ensuring that every dollar spent with Ventia delivers tangible benefits to people, communities, the economy and the planet.

In conclusion

Ventia’s commitment to quantifying social value is not just about meeting today’s requirements but about shaping the future of infrastructure delivery in a way that is sustainable, inclusive, and resilient. By leading the charge in developing the TOMs system for Australia and New Zealand, we are ensuring that social value becomes a fundamental part of the infrastructure equation, leaving a legacy of positive impact for generations to come.

You can read more about our approach here