Cause for Optimism in 2023

Written by Ben Carpenter, CEO of Social Value International.

This short blog reflects on some key developments of the last 12 months and provides me with hope and optimism for 2023. I hope this energises you too and inspires you into more collaboration with SVI as we grow and build momentum in our mission to change the way the world accounts for value.

I start with reference to the graph above. Borrowed from the Capitals Coalition (who in turn, borrowed from Drift) this shows that we are currently in Phase 2 – a period of rapid innovation, collaboration and developments that will accelerate our transition to a new normal. Many of us have been preparing the groundwork for a long time. But is this acceleration happening and why am I confident that a new normal is in sight?

Significant developments are taking place in terms of legislation and regulation. The EU have now given the green light to a new Corporate Sustainability Reporting Directive (CSRD). In the United States, the Securities Exchange Commission (SEC) are progressing with climate related disclosures. At COP15 this month heads of states are discussing whether to make it mandatory for businesses to disclosing impacts on nature.

The major international standard setters for mainstream financial accounting, reporting and audit are all gradually incorporating the ‘sustainability’ agenda. Lots of acronyms but check out the developments withing financial reporting (ISSB), public sector accounting (IPSASB) and auditing (IAASB).

Are all of these developments going far enough? Quick enough? No - but SVI have been active in responding to these (and other) public consultations and there is only one direction this is moving in.

ESG and SDG noise! It’s hard to move without seeing these acronyms. Both representing quite different approaches. SVI have worked hard this year to set out how the social value movement relates to both. See our campaign for going Beyond ESG. And watch this short video on our alignment with the SDG Impact Standards and our collaboration with the United Nations Development Program.

In the social purpose led world we are seeing more convergence around stakeholder engagement (watch this video of our OECD funded work) and transparency (see this report for the G7 by the Global Steering Group on Impact Investing). Rising inequality and global recession increases the need for civil society work and impact led initiatives. SVI will play a key role in this space with our framework for SROI, accountability and our stated purpose: to optimise positive impact on wellbeing.

During this acceleration phase it feels like there is an explosion of tools, approaches, standards for measuring and managing impact. Whilst this may be true, there is also great commonality and convergence emerging. Practitioners should take note of SVI’s work being a key part of the Impact Management Platform’s ‘system of standards’ and the Value Accounting Network (see recent report A navigation through value accounting methods).

Last but not least, I am optimistic because SVI is growing and evolving at just the right time. Our ideas are resonating and becoming more relevant than ever. We now have members in 60 different countries and networks in 27 regions. Our professional pathway is growing with over 250 accredited individuals. From a technical perspective we have published a clear purpose for the SVI Standards which is to optimise positive impacts on wellbeing, the new Principle 8: Be responsive transforms our standards beyond reporting into a ‘decision making framework’.

These are just a few examples of why I am optimistic. Within each of the territories represented by SVI networks there are more examples of innovation, convergence, more collaboration more progress towards our shared vision.

I get my inspiration from ‘zooming’, ‘hanging out’ and ‘teaming’ with passionate individuals every day. Working across continents, through every hour of the day and night I see people sharing ideas, developing best practice and slowly changing the world.

Have a peaceful, restful end to the year. See you all for more fun and hard work in 2023. 😊