Social Value in rail: How LNER is leading the way

London North Eastern Railway (LNER) is on a mission to be the UK’s most responsible rail train operator. The business is making this ambition a reality through both its corporate activities and its engagement with the supply chain - working with Social Value Portal to measure, evaluate and report on its impact.

LNER’s Social Value impressive achievements set a hugely positive example for the wider rail sector. Read on to dive into the details of their Social Value journey.

Corporate Social Value at LNER

One of the cornerstones of LNER’s corporate Social Value programme is its Customer and Community Investment Fund (CCIF). CCIF provides critical funding to a range of small and medium sized charity and community support initiatives along its route. The fund’s three priorities are:

Better for People

• Fostering a culture of equality, that champions diversity and inclusivity.
• Creating a culture of positive mental health, bringing people and communities together.

Better for Places

• Creating skilled and inclusive communities along our networks that can thrive.

Better for Planet

• Conserve resources, reduce waste and reuse where possible.

CCIF’s 2024/25 funding is supporting a range of notable causes championing mental health, diversity and inclusion, environmental and sustainability, including LifeCare Edinburgh, Fareshare Yorkshire, Durham Wildlife Trust, and many others.

Measuring Social Value across the supply chain

One of LNER’s biggest Social Value priorities is driving additional value to communities along its routes through its supply chain. LNER recognises that its procurement spend is an enormous opportunity to ensure that suppliers go beyond contractual requirements and create a measurable positive impact for local people.

In 2020 LNER began measuring the Social Value of its supply chain as a member of Social Value Portal with the Social Value TOM System™. Social Value Portal has created a set of 43 Measures from the TOM System tailored specifically to guide LNER’s suppliers toward the most impactful initiatives – here are some of its most popular Measures:

1. Paying staff the real living wage
2. Employing local people
3. Equality, diversity and inclusion training for staff and supply chain
4. Paying invoices within 30 days
5. Volunteering with community groups

With the introduction of PPN 06/20, LNER faced ambitious targets. Social Value Portal has been a key partner in helping us educate and raise awareness across our supply chain, as well as among fellow rail industry operators. We are incredibly proud of the contributions our supply chain has made to our people, places, and planet through Social Value. Our procurement team has worked tirelessly to upskill the business and implement PPN 06/20; as a result, Social Value has been embraced at all levels of LNER. Social Value Portal’s platform and expertise have been invaluable, enabling us to report, measure, and evaluate our supply chain’s Social Value delivery. This has allowed LNER to encourage and deliver real value to the communities along our route.

Dave Edwards, Head of Procurement, LNER

LNER is determined to maximise the amount of Social Value it can deliver to the communities it serves – even lowering the threshold at which tenders will consider Social Value to £100,000.

But LNER isn’t just focused on growing its own Social Value delivery. It’s also championing Social Value across the rail sector more broadly by acting as a supply chain Social Value advocate. This has involved working with other train operators like TransPennine Express, Northern, and Southeastern Railway to integrate Social Value into joint procurements.

Supporting suppliers to create impact

The past year has seen LNER greatly enhance the level of guidance it provides to suppliers – resulting in a big boost to overall Social Value delivery.

Here are a few of the ways LNER has ensured suppliers have the knowledge, tools and resources they need:

• Creating and signposting Social Value resources and webinars for suppliers
• Incorporating Social Value into internal contract management training
• Aligning supply chain Social Value with corporate initiatives like the Customer and Community Investment Fund
• Fostering partnerships with a local university to explore opportunities for enterprise growth with local businesses and VCSEs

All this has culminated in a remarkable Social Value delivery figure of over £21 million in 2023-24 – significantly exceeding LNER’s target of £6,000,000 – and a total Social Value delivery to date of £56 million.

LNER isn’t stopping there though. In fact, the business has committed a total of £100 million in Social Value, with 62 projects currently live for measurement on the Social Value Portal platform.

The rail sector has a crucial role to play in driving a more sustainable future for the UK, and we're immensely proud to partner with a leader like LNER. As a ground-breaker within the rail sector, their proactive approach to Social Value and community impact sets a powerful example for all other TOCs and I am excited to see how they continue to innovate to benefit their communities.

Sol Tannir, Strategic Account Manager, Social Value Portal

Social Value spotlight: A sustainable new train fleet

The Social Value Portal team has supported LNER in procurement, and one project in particular stands out as a fitting illustration of LNER’s ambitions: the purchase of a fleet of 10 new tri-mode trains, manufactured by CAF and financed by Porterbrook.

The new rolling stock will be able to operate in electric, battery or diesel mode, reducing emissions and cutting operating costs. It will also play a key role in achieving LNER’s goals of a 67% emissions reduction by 2035 and to hit net zero by 2045.

With an incredible Social Value commitment of £55 million, the project promises to have a massive impact on communities across LNER’s route.

Start levelling up your Social Value delivery

LNER's pioneering efforts are setting a new high bar for Social Value in the rail sector. At Social Value Portal we are committed to helping organisations across the public and private sectors make a meaningful difference where it matters.

Are you ready to start creating real impact for communities? Our experts are on hand and ready to ready to help – just arrange a discovery call and let’s get started.