Social Impact Assessment & Measurement

Social impact assessment (SIA) is the process of identifying, analysing and managing the social effects of an organisation’s activities, projects, products or supply chain. It evaluates how a business affects the people connected to it — including workers, local communities, consumers and vulnerable groups — across areas such as employment conditions, human rights, access to services, and community wellbeing.

Social impact measurement takes this a step further, using indicators, frameworks and quantitative methods to track performance over time, demonstrate progress and communicate outcomes to stakeholders. Where assessment asks ‘what are our impacts?’, measurement asks ‘how significant are they, and are they improving?’

Used together, social impact assessment and measurement give organisations the evidence base they need to manage risk, meet regulatory obligations, attract responsible investment and build trust with the communities they affect.

The business case for robust social impact assessment and measurement has never been stronger. Organisations that understand and actively manage their social performance are better placed to navigate regulatory requirements, access capital and maintain their social licence to operate.

Regulatory and reporting obligations

The CSRD requires large companies operating in the EU to report on social impacts, risks and opportunities under the European Sustainability Reporting Standards (ESRS), including S1 (own workforce), S2 (workers in the value chain), S3 (affected communities) and S4 (consumers and end-users). The CSDDD goes further, mandating that companies conduct human rights and environmental due diligence — including social impact assessment — across their operations and supply chains.

Beyond EU regulation, the UN Guiding Principles on Business and Human Rights (UNGPs), IFC Performance Standards and Equator Principles all establish expectations for social impact assessment in project finance and infrastructure contexts.

Investor and stakeholder expectations

ESG-focused investors and lenders increasingly require credible evidence of social performance as part of their due diligence. Private equity firms, development finance institutions and institutional investors are integrating social risk into their investment decisions — and expect portfolio companies to have measurement systems in place that can support ongoing monitoring and reporting.

Internal performance and accountability

Beyond compliance, social impact measurement helps organisations understand where they are creating genuine value for people — and where they are falling short. A well-designed impact measurement framework enables teams to set meaningful targets, track progress, identify improvement opportunities and communicate results to internal and external stakeholders with confidence.

Social impact assessment identifies and evaluates the social effects of an organisation’s activities — typically at a point in time or ahead of a new project or initiative. Social impact measurement quantifies those impacts over time using indicators, frameworks and metrics. The two are complementary: assessment establishes what matters and why, while measurement tracks whether performance is improving. Anthesis provides both, either as standalone services or as an integrated programme.

We draw on a range of internationally recognised standards and frameworks depending on the client context, including: IFC Performance Standards, UN Guiding Principles on Business and Human Rights (UNGPs), Equator Principles, UNEP/SETAC guidelines for S-LCA, Social Value International’s SROI principles, European Sustainability Reporting Standards (ESRS) under CSRD, and the UN Sustainable Development Goals (SDGs). Our assessments are tailored to the specific regulatory, sectoral and geographic context of each client.

Social impact assessments are required or strongly recommended in several contexts: under the CSDDD and CSRD, which mandate assessment of adverse social impacts in operations and supply chains; for project finance transactions referencing IFC Performance Standards or the Equator Principles; for planning applications involving major infrastructure or development projects; as part of responsible investment due diligence; and as an input to ESG and sustainability reporting. Some organisations also commission social impact assessments proactively, as part of their commitment to understanding and improving their social performance.

Social Return on Investment (SROI) is a framework for measuring and communicating the social, environmental and economic value created by an organisation or programme relative to the resources invested. It assigns a monetised value to social outcomes — for example, improved livelihoods, strengthened community resilience or reduced health inequality — enabling organisations to express impact in financial terms. A ratio of, say, £4 of social value for every £1 invested gives funders, boards and investors a clear, comparable metric for decision-making.

A Social Lifecycle Assessment (S-LCA) evaluates the social impacts associated with a product across its full value chain — from raw material extraction and manufacturing through to use and end of life. It assesses conditions for workers, local communities, consumers and other stakeholders at each life cycle stage, using the UNEP/SETAC guidelines as a methodological basis. S-LCA is increasingly used by consumer goods, apparel and food companies to identify social hotspots in their supply chains, inform responsible sourcing decisions, and meet CSRD reporting obligations.

Timelines vary significantly depending on scope, geography and the complexity of stakeholder groups involved. A focused Social Impact Assessment for a single site or product may take four to eight weeks. A full supply chain social impact assessment or SROI analysis for a large organisation typically takes three to six months. We work with clients to scope assessments realistically against their reporting deadlines and budget constraints.