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Creating Social Value through our supply chain – how Telent has generated £40m of local community benefit

Telent is committed to adding measurable social value by giving equal economic opportunities to suppliers of all types and sizes, that share our goal of delivering high quality critical communications solutions.

In fact, in the fiscal year 22/23, Telent spent over £181 million with Micro, Small, and Medium-Sized Enterprises (MSMEs) across the UK, accounting for 67% of our suppliers. This focus on MSME engagement not only diversifies Telent's supply chain and drives innovation, but also contributes to the prosperity of local economies, generating £40 million of additional social value benefits according to the National Themes, Outcomes and Measurement (TOMs) Framework [1].

By maximising social return on investment (SROI) for our customers through inclusive procurement practices and building partnerships with a diverse range of businesses, Telent has created significant community benefits. This expenditure supports regional employment, skills development, and business-building opportunities.

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The core aim of our supply chain sustainability strategy is to meet our needs for goods and services in a way that achieves value for money on a whole life basis. This is to provide added value not only for our organisation, but also for society and the economy, whilst minimising damage to the environment. We do this by embedding sustainability and social value considerations into all our decision-making processes

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- Rhys Griffiths, Responsible Procurement & Sustainability Manager at Telent

Levelling the procurement playing field

Despite their significant potential for job creation, economic development and innovation, MSMEs are traditionally underrepresented in public sector procurement. To support the targets of our public sector customers, we’re committed to providing MSMEs with access to our economic opportunities through the principles of fair share, fair payment and fair terms. This not only drives innovation and flexibility, but supports local economies through employment, business growth and entrepreneurial opportunities.

Telent also collaborate, partner and invest in our suppliers so they can be more sustainable too, with our Procurement team committing at least 100 hours of their resources per year to building our suppliers’ capabilities in sustainability and social value. All MSME partners are offered a range of development resources including training materials, guidance, practical support and the opportunity to share best practice.

Telent recently attended a Solihull Supplier Social Value matching event organised by the Solihull Metropolitan Borough Council to connect with local Voluntary, Community and Social Enterprises (VCSEs) who can benefit from our resources and expertise.

We also hold interactive supplier webinars to facilitate peer collaboration on topics including: Equality, Diversity and Inclusion (EDI), Carbon Management, Strategic Labour Needs & Training (SLNT), GDPR, Modern Slavery Prevention, STEM Education and Quality & Environmental Management Systems.

Climate committed

Telent also takes responsibility for the sustainability performance of our suppliers and have committed to reducing the intensity of our supply chain carbon emissions by 55% no later than 2030, in support of our Net Zero goal.

We continually support and collaborate with our suppliers on reducing their carbon footprint. In May, we held a virtual Meet the Buyer event attended by over 150 suppliers, who were given the opportunity to explore our Science Based Targets, strategy and also showcase their low-carbon solutions for potential inclusion in our long-term innovation projects. In September, we are running additional MSME workshops covering carbon and social value measurement.

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Telent recognises that true sustainability is about more than just financial success; it's about creating lasting value for society. Through initiatives like responsible sourcing, waste reduction, and energy efficiency, Telent demonstrates its dedication to building a better future. By engaging in sustainable business practices, Telent not only drives positive change but also inspires other industry players to follow suit.

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- Rhys Griffiths, Responsible Procurement & Sustainability Manager at Telent

What is social value and how it is calculated?

Social Value is an umbrella term used to describe the additional benefit created in the delivery of a contract, which has a wider community or public benefit. This includes improvements in the economic, social and environmental wellbeing the project can bring for local individuals, communities and society in general.

It extends beyond the value delivered by the primary contract activity to wider intangible, non-financial benefits. This can be the community as a whole, disadvantaged individuals, minorities, local businesses and Voluntary Community & Social Enterprises (VCSEs), as well as the environment.

There are many positive social value outcomes, including employing local people, hiring apprentices, awarding contracts to local suppliers, supporting community projects and providing staff to volunteer for good causes. There are different ways for organisations to measure and report the benefit of these outcomes, with the National Themes, Outcomes and Measurement (TOMs) Framework being the most widely recognised.

Each measure has a “proxy value” to assess its impact by applying a theoretical financial benefit to the local community. Some of these values are localised by region and industry, for example within the Growth theme, every £1 spent with a local supplier in Warwick generates £0.31 of economic benefits, based on the positive economic impact local spending generates for communities through retaining local income. This leads to increased jobs, higher pay and more tax revenue for government, resulting in better living standards.

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