In today’s world, Corporate Social Responsibility is more important than ever. Rightsholders, stakeholders, regulators, and the public demand transparency and accountability. These groups have various interests and often competing needs in project development, making tracking, monitoring, and reporting more challenging. Traditional Corporate Social Responsibility (CSR) and supply chain tools often don't highlight these metrics. One critical area that has often been overlooked, is the socioeconomic impact or community benefits a project has.

Why Socioeconomic Impact Matters

Being based in Newfoundland, we've seen firsthand the importance of tracking and monitoring socioeconomic impact. But what exactly does "socioeconomic impact" mean? Simply put, socioeconomic impact refers to the effect of a project on the economic and social well-being of the community it operates in.

Collecting data on metrics such as gender and Indigenous status, direct and indirect spending, and local content from contractors, subcontractors, and suppliers helps operators understand the full picture and identify potential gaps. This understanding is vital for:

• Compliance: Many agreements made during pre-construction require you to track these metrics.
• Accountability: You need to show that you can back up your claims with data.
• Community Benefits: Demonstrating your project's benefits to the community can improve community sentiment and assist with future projects or expansions.

Before diving into tracking and reporting, it's essential to establish clear methodologies for monitoring socioeconomic impact right from the start. Without this foundational step, aligning project goals with community needs and expectations becomes challenging. This proactive approach ensures that data collection and analysis are structured to provide meaningful insights.

How to Track and Report on Your Socioeconomic Impact

• Spreadsheets/Internally: This approach has a low barrier to entry but is likely the most challenging method. First, you need to collect data from your contractors, which can be time-consuming. Then, the key is compiling, consolidating, and visualizing the data accurately.
• Consultants: Outsourcing is used to save time but can become costly over time.
• Software: A purpose-built tool is the most efficient and effective tracking method. Not only does this streamline contractor data collection, but it allows you to generate reports on demand.

The Bottom Line

Tracking your socioeconomic impact is more than just looking good. Quality tracking leads to awareness, action, and, ultimately, change. This is what your community partners, such as Indigenous and local communities, want: fair and honest economic development. Success depends on doing the right things and involving the right people. It's about making a real difference.