Successful trial sees Peabody award contracts to suppliers who add social value
Peabody will apply a 20 percent social value weighting to its scoring criteria when awarding contracts to suppliers, after a successful two-year trial.
The move means organisations tendering for Peabody’s business need to demonstrate a clear benefit to residents and communities, as well as delivering on quality and value for money.
Peabody estimates the trial generated £20-million-worth of social, economic and environmental benefits for communities, and it will now apply the 20 percent social value weighting for all tenders above the UK procurement threshold. This allows the organisation to use its position to maximise the social value generated on every pound it spends on its activities.
Peabody has used its first social value impact report, published today (Wednesday 19 April), to demonstrate the impact of its commitment to working with organisations that make a positive difference to people’s lives.
The not-for-profit housing association invests approximately £1 billion a year in goods and services. Its focus on social value has led to a raft of community initiatives throughout its neighbourhoods. These include employment, skills and training and apprenticeship opportunities, as well as projects that tackle social isolation and improvements to outdoor spaces.
An example is Peabody’s 10-year contract with facilities management and building solutions provider VINCI Facilities. This partnership has seen more than 20,000 books sent to families in Hackney, Waltham Forest and Thamesmead as part of a programme to encourage under-fives to read every day. Called Reading from the Start, the scheme is delivered in partnership with the Dolly Parton Imagination Library.
Purdy Contracts, which has been delivering electrical services to Peabody since 2016, brought back to life a previously unloved community garden at Paradox Community Centre, Chingford. The patio area was transformed by providing new planters and creating a space for residents to grow their own food and socialise.
And in 2022 alone, Peabody helped nearly 200 people access opportunities to train and work in construction, through information sessions and traineeship programmes with partners including Durkan, Berkeley Homes, Ardmore and Mulalley.
A wide range of Peabody’s corporate partners also donate to its annual Christmas food and toy hamper appeal. Now in its tenth year, the hugely successful scheme ensured more than 900 families had gifts to open on Christmas day.
Sahil Khan, Peabody’s Director of Community Strategy, Partnerships and Funding, said: “Our communities need our support more than ever as they continue to experience the growing cost-of-living crisis. By using our buying power and leveraging social value from our supply chain, we can generate better economic, social and sustainability outcomes for our residents and communities. As we look to the future, we will continue to champion social value and embed it across everything we do, including our procurement processes. Together we can achieve more and truly help people flourish.”