Top 5 trends in social impact we’re likely to see in 2024.
Collectives
Redefining stakeholder value
Quantifying the qualitative
Emphasis on governance
Convergence of language
Collectives
Micro businesses (1–10 people) will pitch for larger projects together.
The ESG (Environment, Social, Governance) space is growing by at least 10% year-on-year, according to the latest PwC report. Our thought is that this is a little undercooked, with numbers ranging from 10–33% in institutional investing alone.
In the ESG advisory space, there are those who are reporting on sustainability initiatives by focusing on the “S” in ESG — demonstrating social value through various measurement and evaluation frameworks. The industry boom has seen a number of micro-businesses birthed (including Pluri) to meet the growing demand in organisations wanting to articulate and measure their social value.
Big problems require creative solutions. As the sector is still defining itself, collectives of micro-businesses that have their own specialty areas will be the most nimble and agile way of forming “dream teams” that can come together for a period of time to work on a particular solution.
Our prediction is that these collectives will be able to compete with established consulting firms (who often do this internally with whoever’s on the bench) to win and execute large projects.
An example of this is a collective that we (Pluri) are a part of (we loosely call it The Impact Co). This collective combines 3+ micro businesses and a series of special advisors across ESG to pitch for larger work. Together, we can offer climate finance specialists, B-Corp consultants, DEI consultants and social impact specialists who have a particular niche background working across Australia-Pacific-Southeast Asia projects. We don’t care about whose brand is put forward (whoever makes the most sense at the time) — but we do care about seeing real impact.
Redefining stakeholder value
Businesses exist to provide stakeholder (or shareholder) value. True.
But is that just money?
So often, organisations have grand vision and mission statements and then do literally nothing to intentionally see if they’ve moved the dial toward making an impact in these areas. What they do measure is money.
However, if we’re serious about providing stakeholder value, then we need to get serious about redefining value to be greater than just making a tidy profit for everyone. If that’s our only goal as an organisation, then what really is our unique value proposition? Why should anyone bother investing in us?
Value can go so much deeper than just profit.
It’s not a zero-sum game.
In redefining value beyond mere financial profit, we must consider the multifaceted dimensions of a business’s impact. This includes social responsibility, environmental stewardship, employee well-being, and community engagement.
For instance, a company that prioritises sustainable practices not only contributes to environmental conservation but also attracts eco-conscious consumers and employees, fostering a culture of responsibility and innovation. Another example is a firm that invests in employee development and well-being, leading to higher job satisfaction, reduced turnover, and a more skilled workforce. Businesses engaging in community development initiatives can build stronger, more loyal local markets and enhance their reputation.
These aspects, often overlooked in traditional value assessments, are essential components of a modern, holistic approach to business success. By broadening the definition of value, companies can achieve a more sustainable and socially responsible model of operation, ultimately benefiting all stakeholders, not just shareholders.
Quantifying the qualitative
How do you measure the unmeasurable?
Or perhaps, why would you even want to?
Particularly in Western cultures, post-enlightenment has gifted us with a reliance on data to reduce our concept of risk. This has been wonderful in so many ways, but — as Edwin Friedman has also noted, we have also developed “data junkyards”. Friedman’s analysis of data culture delves deeply into the phenomenon of blame-shifting, a critical aspect often overlooked in data-driven environments. He observes that an overreliance on data and metrics can lead organisations to shift blame externally rather than fostering internal accountability and growth.
In data-rich environments, it becomes temptingly easy to attribute failures or shortcomings to external factors, as data can be selectively used to support such narratives. For example, a company might blame market conditions or competitor actions for its performance issues, ignoring internal areas needing improvement.
Friedman highlights that this tendency to shift blame away from internal processes and decision-making can stifle innovation and hinder organisational learning. Instead, he advocates for a balanced approach where data is used as a tool for insight and improvement, not as a shield for accountability.
As such, our prediction is that we’re going to see a continued trend to want to start quantifying qualitative information that goes beyond narrative into language analysis. Qualitative information is an essential part of social impact measurement and demonstrating social value — but it can be tricky to measure using scientific methods. Rather, we will start seeing greater use of anthropological methodologies applied to impact measurement.
Emphasis on governance
Notably, in 2023, many ESG conferences were almost entirely about the “E” (Environment), little about the “S” (Social), and almost void of anything about “G” (Governance) — unless, of course, it related to mandatory reporting for the environment.
Perhaps less of a prediction, and more of a hope, is that we’ll start seeing a greater emphasis on governance when we start talking about sustainability, impact and social value in the boardroom. Governance is NOT just about reporting and risk management, but rather the incredible responsibility of stewarding the identity of an organisation (which includes ethos, identity, and impact).
The expansion of governance frameworks to include a variety of approaches is crucial for holistic and effective organisational management. Traditional Western models of governance, while widespread, can benefit significantly from integrating other governance frameworks, such as Indigenous methods of governance, which offer unique perspectives and values. Indigenous governance systems, for example, often emphasize deep respect for the environment, community decision-making, and long-term stewardship of resources. These systems are rooted in a holistic understanding of sustainability and social responsibility, aligning closely with the broader goals of ESG initiatives.
By incorporating broader principles of governance, organisations can adopt best practices from across the globe. Recognising there is more than one way to govern beyond a risk-mitigation and compliance approach can lead to more sustainable and socially responsible outcomes beyond mandatory reporting requirements.
Convergence of language
Just as carbon accounting is having a standardisation crisis right now, we’re also starting to see a forming/norming moment in the language used around impact.
What does “sustainability” even mean? When there are 17 UN SDG (Sustainability Development Goals) — how do we approach all 17 in an organisation when we’re trying to keep the lights on in a market context that doesn’t yet reward adherence/progress to these goals?
Even as the language of ESG is slowly being phased out (with a large number of our clients who have never heard of it before) — we’re starting to see new language, or perhaps, more specifical language, being used to start creating specialisms within the environment-social-governance space. For example, being more specific about renewables and the circular economy, clean energy transitions and decarbonisation, climate risk and climate finance. Or we’re looking at the difference between impact measurement vs. impact evaluation, a common understanding and use of logic models such as the theory of change.
An understanding of accreditations like B-Corp is becoming more mainstream. Governance is slowly (oh, so very slowly) catching up, too — with an increased number of standardised reporting frameworks making their way into new sectors.
These are the top five trends we’re predicting in 2024.
What do you think?
