Social Return on Investment (SROI) is a recognised methodology used to measure the wider social, economic and environmental value created by a programme, organisation or investment.
Unlike traditional Return on Investment (ROI), which focuses solely on financial returns, SROI looks at the broader outcomes generated for individuals, communities and society. It helps organisations understand not just what was delivered, but what difference was actually made.
For example, helping a vulnerable household access debt advice, energy support or wellbeing services may reduce financial stress, improve health outcomes and increase long-term resilience. SROI methodologies assign evidence-based values to these outcomes, creating a measurable view of social impact.
The result is typically expressed as a ratio. An SROI of 5:1 indicates that every £1 invested generated £5 of independently measured social value. Some UK programmes have demonstrated significantly higher returns where preventative interventions reduce demand on public services and improve long-term wellbeing outcomes
SROI has evolved from work originally supported by the UK Cabinet Office and is now used internationally across charities, social enterprises, government programmes, healthcare initiatives and impact investment projects. The methodology incorporates stakeholder feedback, evidence gathering, attribution, deadweight analysis and verification principles to ensure reported outcomes remain robust and transparent.
As impact investing continues to grow globally, SROI provides investors, funders and delivery organisations with a common language for understanding how resources translate into meaningful real-world outcomes.
Key SROI Facts
2009 – The UK Cabinet Office published one of the first formal SROI guides. [Click here]
2,000+ practitioners worldwide use Social Value International frameworks and methodologies.
Used across healthcare, housing, employment, energy and community programmes to measure wider social outcomes.
Expressed as a ratio (e.g. £5 social value generated for every £1 invested). [Click here]
