Delivering the ‘S’ of ESG

The Young Foundation’s 2023 analysis of FTSE100 activities in relation to the ‘social’ dimension of their ESG strategies, we found wildly varying activity, no standard reporting structures, nor any sensible way of clustering the dimensions of how a business can contribute to tackling social challenges or support social outcomes.

As a result, we proposed a simple Four-Scope Social Framework, pictured below. This is aligned to the ‘Scope One to Three Framework’ for Greenhouse Gas emissions (with which most businesses are now familiar).

Our Four-Scope Social Framework gives multiple starting points for a business’ ‘social journey’, depending on their readiness and their capacity. It beyond employee engagement, health and safety, or proxy financial measures for calculating social value towards something genuinely impactful and long-term.

Four steps to success

The Young Foundation’s Four-Scope Social Framework comprises:

Scope one: People The dominant, starting focus for many organisations, Scope one measures how far a businesses provides a safe, fair, representative and well working environment, and a diverse workforce.

Scope two: Suppliers Another area where businesses have a good degree of control is through their procurement and supply chain, incentivising and expecting other businesses to create lasting social value. Scope two assesses the social sustainability of an organisations’ suppliers and its role in supporting their social journey.

Scope three: Communities Many larger businesses describe local communities as ‘stakeholders’ and are often keen to improve the trust, relationships and impact they have on community wellbeing. Scope three assesses the extent to which local people and communities needs, priorities and aspirations are prioritised by a business.

Scope four: Collective impact Creating sustained, meaningful social value in a place – or on a particular social issue – takes more than one business, and will often take years, not months. This work necessarily takes place in the context of a transition to net zero and nature recovery. Scope four supports businesses through this more complex arena of activity. It assesses a ‘readiness’ for a transition to net zero which does not leave people behind and supports collaboration across sectors to contribute to a just transition across a locality.

Read our report

Publication 9 February 2023

Quest for the ‘S’ in ESG

How can businesses act in both environmentally and socially responsible ways? What are the trade-offs between sustainability and social outcomes? This report examines how FTSE 100 companies approach ESG.

‘Work to be done’ for UK businesses to drive social change, our report finds

Innovation and Investment Local economies Social innovation Systems change

9 February 2023

Our Quest for the S in ESG report uncovers a lack of attention, measurement and commitment to social outcomes as part of ESG strategies.

‘Businesses must get serious about their social responsibilities’

Community Environment Innovation and Investment Systems change

14 March 2023

No amount of employee volunteering or charitable giving will deliver the change we need to see in our society and economy, says Helen Goulden

‘In our quest for environmental sustainability, social responsibility is key’

Climate change Community Innovation and Investment Local government & public services Social action Social innovation Systems change

19 October 2022

Previewing our upcoming report, Helen Goulden looks for the ‘S’ in ESG – and asks if political and economic turbulence could knock it into the long grass?

A spotlight on the ‘S’ in ESG on the Turley ESG Bites podcast

Environment Social innovation

25 May 2023

Helen Goulden discusses The Young Foundation’s ‘Quest for the ‘S’ in ESG’ on the Turley ESG Bites podcast.

Build your social impact

We are delighted to be working with The Crown Estate, with our Four-Scope Framework supporting their mission to develop ‘lasting and shared prosperity for the nation’.

If you would like to talk to our team about delivering the ‘S’ of your company’s ESG commitment, please contact

Helen Goulden, CEO, The Young Foundation helen.goulden@youngfoundation.org
Emily Morrison, Director of Sustainability and a Just Transition emily.morrison@youngfoundtion.org
Charlotte Healy, Head of Social Business and Innovation charlotte.healy@youngfoundation.org