An innovative way of evaluating the impact of our social-investment programmes

Delivering the next phase of SED in Moquegua

In the Moquegua region in the south of Peru, our Quellaveco copper business has formed several strategic partnerships to help foster sustainable SED in the communities located around the operation.

Notable among other large-scale copper projects in Peru, Quellaveco has continued to progress and remains in good standing with local authorities and civil society.

The second phase of the Anglo American/IDB partnership in Peru, called Moquegua Emerge, focuses on promoting employability in the region through enhancing the prospects of young job-seekers via the provision of skills training; increasing the competitiveness of SMEs within the mining supply chain, and helping to improve local capacity.

Our social return on investment assessment approach

At the launch of Moquegua Emerge, the partnership committed to undertaking a comprehensive impact assessment pilot, with the aim of using the outputs as a decision-making tool for future investment decisions.

The resultant SROI model is an innovative way of evaluating the impact of our social-investment programmes, going beyond traditional programme evaluations, to consider the social, economic, and environmental value created that is not reflected in traditional programme indicators.

An SROI analysis allows us to measure the social value created for each monetary unit invested in a project – a vital factor in future decision making.

Over the three years of the programme, participants were regularly surveyed to collect the relevant data for the SROI analysis.

The results of the analysis revealed that Moquegua Emerge achieved a significant positive SROI, higher than the benchmark of similar projects.

The results showed that the local supplier development programme generated a benefit of $5.45 per dollar invested, driven mainly by an increase in customers and a resultant improvement in company revenues.

The SROI increased by 13% when considering multiplier effects in the local economy. The SROI of the youth employability component amounted to $3.30 per dollar invested, driven mainly by the access to more high-quality jobs.

The SROI amounted to $3.78 when the impact of increased life-satisfaction levels was considered. Overall, Moquegua Emerge trained 1,141 young people on employability, of whom 647 were able to enter the labour market, and supported 97 SMEs within its local supplier development component, which helped to increase company sales by an average of 32%.

In total, Moquegua Emerge supported 2,847 jobs over three years.