- By Sian Clay
- In Useful Stuff
A simple guide to social value and ESG
The terms “social value” and “ESG” are often used in business and public sector conversations. They are linked by a shared goal: creating positive outcomes for people and the planet. But they are not the same thing.
In this article, we explain the difference between the two – and why it matters.
What is ESG?
ESG stands for Environmental, Social and Governance. These are three key areas that businesses report on to show how they manage risks and opportunities beyond profit.
- Environmental includes things like cutting carbon emissions, reducing waste and saving energy.
- Social refers to how a company treats its staff, supports local communities and ensures human rights in its supply chain.
- Governance is about leadership, transparency and how decisions are made in the business.
ESG started in the investment world. It helps investors understand how sustainable a business is. It has since become a wider framework for how organisations track and report on their impact.
What is social value?
Social value is about creating wider benefits for society through the work an organisation does. In the UK, the term is commonly used in public sector contracts.
The Social Value Act means that public bodies must consider how the services they buy improve the social, economic and environmental wellbeing of an area.
This could include things like:
- Hiring people from disadvantaged groups
- Supporting local suppliers and small businesses
- Helping communities through volunteering or donations
- Improving environmental outcomes
Social value is more about what you give back than how you run your business.
Key differences between social value and ESG
| Social value | ESG |
| Often used in public sector procurement | Used across the private sector and investment world |
| Focuses on added benefits to society | Covers internal practices and sustainability performance |
| Driven by UK policy (e.g. Social Value Act) | Driven by global frameworks and investor pressure |
| Measured through outcomes and community impact | Measured through outcomes and community impact |
Why does it matter?
Understanding the difference helps organisations stay compliant, competitive and aligned with expectations.
- If you’re bidding for public sector work, you’ll need to show your social value.
- If you’re attracting investors or reporting to stakeholders, you’ll need strong ESG credentials.
For many businesses, these two areas overlap. But it’s important to understand their separate purposes and audiences.
Social value and ESG both aim to make business better for people and the planet. They are two sides of the same coin – but with different roots, rules and reporting needs.
Knowing the difference helps you respond to contracts, meet regulations and show your organisation is doing the right thing.
Content Coms’ B Corp Certified team offers practical support for social value and ESG communications. Whether you’re bidding for public sector work or starting your ESG journey, we’ll help your organisation stand out for the right reasons. Get in touch!
