SSE Advisory Committee Clarifies Role of Social Impact Assessors for Listed Social Enterprises

In the dynamic world of social enterprises, ensuring that projects deliver meaningful and sustainable impact is paramount. Social enterprises funded by securities listed on the Social Stock Exchange (SSE) of the Bombay Stock Exchange (BSE) or the National Stock Exchange (NSE) must undergo rigorous assessments to ensure transparency and accountability. This is where the role of a Social Impact Assessor becomes critical.

The recent notice from the Social Stock Exchange Advisory Committee (SSEAC), dated July 31, 2024, outlines new reporting requirements for social enterprises listed on the SSE. These requirements include the revised formats for the Annual Social Impact Report (Form 2.1), which social enterprises must prepare annually for projects funded by securities listed on the SSE. The aim is to integrate the theory of change into project evaluations, ensuring a more structured and transparent assessment of social impact. Social Impact Assessors will play a vital role in this process by rigorously evaluating these reports to maintain accountability and drive continuous improvement in social projects.

Who is a Social Impact Assessor?

A Social Impact Assessor is an external evaluator responsible for analyzing and reporting on the social impact of projects funded by listed securities on the SSE. Empanelled with a Self-Regulatory Organization (SRO) specified by the Securities and Exchange Board of India (SEBI), their primary role is to ensure that projects achieve their intended social outcomes and adhere to the promises made during fundraising.

The Social Impact Assessor will need to conduct the following activities according to revised Form 2.1: Annual Social Impact Report by Social Enterprises for projects funded by securities listed on SSE.

1. Reviewing Annual Social Impact Reports: Social enterprises will prepare an annual social impact report for each project funded by listed securities. This report will include data on key performance indicators (KPIs), progress, and outcomes. The Social Impact Assessor will thoroughly review these reports to ensure the accuracy and comprehensiveness of the data provided.
2. Analyzing the Solution Implementation Plan (SIP): The SIP outlines the project’s roadmap, detailing the goals, activities, and expected outcomes. The assessor will evaluate the SIP to ensure it aligns with the guiding frameworks and includes clear, verifiable KPIs for outcomes, outputs, and activities. They will check if the SIP considers factors like reach, depth, and inclusion, and whether the means of verification for each KPI are well-defined.
3. Evaluating Performance: The assessor will compare actual achievements against the stated goals and KPIs. They will identify any deviations and analyze the reasons behind them. This will include assessing cumulative deviations in output KPIs from previous years to understand long-term trends and performance.
4. Consulting Stakeholders: Effective social projects rely on the involvement and feedback of various stakeholders, including beneficiaries, community members, and partner organizations. The assessor will take into account stakeholder feedback gathered during the reporting period. They will evaluate how well the social enterprise has integrated this feedback into the project’s implementation and any adjustments made based on stakeholder input. Although the document does not explicitly mandate fieldwork, it implies thorough assessment, which may require some field visits or observations.
5. Identifying Risks and Unintended Outcomes: The assessor will report on potential risks and unintended negative outcomes of the projects. They will analyze internal risks, such as organizational and HR capacity issues, and external risks, such as unfavorable market or policy changes. Assessors will suggest mitigation measures to address these risks and ensure the project’s sustainability.
6. Reporting Findings: The assessor will provide a detailed report on the project’s performance, highlighting successes, challenges, and any necessary changes to improve future implementations. This report will include an analysis of outcomes, stakeholder feedback, and the project’s overall impact on the community.
7. Ensuring Sustainability: One of the assessor’s crucial roles will be to evaluate the sustainability of the interventions and the contributions from stakeholders. They will assess whether the social enterprise has a well-defined sustainability plan and how effectively it is being implemented. This involves examining stakeholder engagement, community contributions, and the organization’s long-term plans for project sustainability.

At BlueSky Sustainable Business (BSSB), we bring over three years of expertise in conducting Corporate Social Responsibility (CSR) Social Impact Assessments, leveraging ISO frameworks to ensure precise and reliable evaluations. Our team of empaneled Social Auditors is well-equipped to assist non-profits listed on the Social Stock Exchange in conducting thorough social impact assessments. Let us help you measure and enhance the impact of your initiatives, driving sustainable and meaningful change in your communities.