Social Return on Investment Metrics

More than ever, people want to know how the work they are doing on a daily basis is contributing to the world. At IPL, we recognise that in addition to creating economic value, the social value that we create as a company is also important.


With the completion of our new US$815 million Waggaman, Louisiana Ammonia Plant at the beginning of the IPL 2017 financial year, we worked with Louisiana Economic Development and engaged a third party to assist us in the development of a Social Return on Investment (SROI) metric to help us quantify and communicate the value of our social contribution relative to our financial investment in the new plant. SROI is a principles-based method for measuring the extra-financial value created by companies through investments, such as the development of the Louisiana Ammonia Plant. Built on a brownfield site, the development required no land clearing and created 65 above-average wage positions and 466 flow-on positions (which were valued at average wage). The SROI estimated that for every dollar IPL invested in the plant, US$3.40 of social value has been created in the local community.


We also created two other SROI metrics. The first valued the social contribution made to the community by the reduction in injury rates as a result of our investment in safety training during the first two years of our 5 year global safety strategy. The second valued the social contribution made through our supply of fertiliser for food production in Bangladesh during 2016. The results of our three SROI metrics are presented below and linked to the relevant United Nations Sustainable Development Goal.