SROI and Infrastructure

In 2010, the Valuing What Matters team published new work extending the use of SROI to decisions on infrastructure investment. This was piloted with a re-evaluation of the case for Heathrow runway 3 the findings of which are presented in Grounded: a new approach for evaluating Runway 3.

The project set out to:

1. Influence the way decisions are made on large infrastructure projects by highlighting the poverty of existing analyses, and the conflicts of interests that proliferate. The SROI on runway 3 demonstrated a model infrastructure project assessment.
2. Bring a robust analysis to the specific debate around runway 3. With the social, environmental and economic outcomes seen to be in conflict, the debate lacked a more dispassionate review of the evidence.  nef’s study took and independent, evidence-based perspective which challenged exuberant economic forecasts, valued the social and environmental impacts in a way to reflect the views of stakeholders, but conversely did not seek to deny the potential social and economic gains from Runway 3 simply because of negative social and environmental outcomes.

Infrastructure projects once completed are with us for generations, as are their impacts. We cannot afford to make poor decisions. nef argues that a more holistic and robust approach such as SROI is particularly relevant for these projects where it can make explicit the value of often hidden costs and benefits, and thereby enhance transparency and accountability in decision-making.