Measuring and demonstrating the social value of infrastructure
Work undertaken by the Global Infrastructure Hub shows the infrastructure spend multiplier to be roughly 1.5. In other words, for every $1.00 spent, the benefit to GDP is $1.50. For this reason, infrastructure is increasingly regarded as an economic “supercharger”. With the COVID-19 pandemic forcing the widescale adoption of a new set of fiscal rules, its importance to the fight back from global recession has been underlined. In the first half of 2020, ESG stocks outperformed non-ESG counterparts, proving that social value has never been more valuable. But key questions remain. How can social value be accurately measured? Can social value considerations inform procurement processes? And what can be done to demonstrate the social value of large scale projects to an often sceptical public?