The LBG was formed in 1994 to meet the need to create a global measurement standard to benchmark contributions and their results, as well as share best practices. Through the collective efforts of its member companies, it has steadily improved the model it uses to report contributions (monetary, work hours, in kind), and the medium- and long-term results and impacts of projects on society and the business itself.
The LBG Model allows EDP to:
> Provide evidence of the work it does in the community;
> Work with its various stakeholders to calculate the benefits to the company and the community;
> Determine the social return on the resources invested, in accordance with SROI methodology.
SROI (Social Return on Investment) methodology is an approach that measures the value created for the community by the investments made, based on the following chain: inputs, outputs, results, impacts, monetary value of impacts and SROI ratio (ratio of results over costs).
EDP:
The investment value in 2011 was about EUR 21 million, representing 0.91% of EBIT, and the total amount leveraged by the projects undertaken was EUR 1.2 million.
In Portugal, a system for collecting structured information according to the LBG methodology was implemented at the start of 2012. The Fundação EDP applied the SROI (Social Return on Investment) technique to the activities of the organisations that had been previous winners of the
EDP Solidária Barragens programme:
> “Learning by doing”: A project implemented by APPACDM of Mirandela to support people with mental disabilities through learning and the development of motor skills through the introduction of new handicrafts-related activities. The calculated SROI was 22 cents for each one euro invested;
> “Mobility and Health”: A project developed by the Cerejais Parish and Social Centre (CSPC) to support the elderly through the provision of equipment that provides easier access to healthcare and
physiotherapy services. The calculated SROI was EUR 1.47 for every one euro invested;
> “CSS Certification - Arlampar”: A project conducted by Associação EcoGerminar in the area of regional development, training farmers so as to give them CSS certification (Fair and Sustainable Trade). The SROI calculation estimated for a period of five years was EUR 2.69 for every one euro
invested.