Beyond box-ticking: how to maximise social value from UK nuclear and small modular reactor investment

Quick take

Nuclear clients must embed social value into business cases, design and procurement decisions from the earliest stages of a project.

The growth of small modular reactors creates new opportunities to diversify supply chains, support SMEs and spread investment across multiple regions.

The greatest social value is achieved when clients, suppliers and communities work together to deliver outcomes that endure beyond construction.

Article

The role of supply chain collaboration in delivering place-based social value

As social value delivery matures, the nuclear sector must move beyond compliance to deliver place-based outcomes that leave a legacy that endures long after construction has finished. Mott MacDonald social value lead for energy Laura Hampson summarises a recent webinar on the topic.

The UK nuclear sector stands at a pivotal moment and decisions taken today will influence communities for decades to come. Discussion during Mott MacDonald’s recent Nuclear Know-How webinar showed that those who embed social value into planning, design, delivery and operation of nuclear projects from the outset will be best positioned to maximise this lasting legacy.

The social value landscape has evolved significantly over the last two years, shaped by changes to procurement requirements, increasing client maturity and major developments in the small modular reactor (SMR) market. Confirmation of Wylfa as the location for Great British Energy – Nuclear’s first SMR project and the selection of Rolls-Royce SMR as its technology partner have created a clearer pathway for investment, supply chain development and regional growth. Private investors are also starting to explore the potential for SMRs to meet their energy needs.

Yet these announcements represent far more than new energy infrastructure. They create an opportunity to rethink how social value is delivered through nuclear programmes and how the benefits can be shared across communities far beyond the traditional centres of nuclear activity.

 

Aerial view of a modern residential neighbourhood showing rows of houses, roads and green spaces, representing local communities that could benefit from long-term social value and investment from UK nuclear and small modular reactor projects.

Maturing market

One of the most notable changes since my colleague Caron Dunlop wrote about the social value opportunities in nuclear in 2024 has been the pace of change in the approach to social value. Organisations across the sector have become more sophisticated in understanding how it can support wider economic and community outcomes, while specialist social value teams have developed greater experience in planning, measuring and embedding it across major programmes. Since the webinar, the government has updated Public Procurement guidance (PPN 026) with a sharper focus on jobs and skills, using it as a tool to deliver policy goals.

This growing maturity is changing how projects are planned and delivered. Rather than individual suppliers pursuing separate initiatives, clients are recognising the need to take a lead and are increasingly creating structures that encourage collaboration across the supply chain right from development of the business case. During the webinar, speakers highlighted the importance of establishing a shared vision for social value and working collectively towards it.

For the emerging SMR sector, this collaborative approach is particularly important. While conventional nuclear developments have traditionally concentrated economic activity around a limited number of established locations, SMRs offer a different proposition. Factory-based manufacturing and modular assembly create opportunities to distribute investment, employment and skills development across multiple regions. The location of an operational reactor may remain fixed, but many of the economic benefits associated with design, manufacturing and supply chain activity can be realised elsewhere.

Inclusive employment opportunities

This is where the social value opportunity becomes especially compelling and was highlighted by my colleague Fifi Banin who explained that SMRs create a chance to design jobs and workplaces around people who have traditionally been excluded from the sector, such as people with disabilities and kinship carers. Part of that potential comes through industrialised construction methods and manufacturing environments that can accommodate a wider range of employees than traditional construction sites.

The wider economic opportunities are equally significant. During the webinar, Cumberland Council lead on Pioneer Park Iain Irving highlighted how local authorities are already viewing SMR technology as a catalyst for broader industrial growth. Rather than focusing solely on energy generation, forward-thinking regions are exploring how nuclear investment can attract new industries, create long-term employment and strengthen economic resilience.

Achieving that outcome requires a genuinely place-based approach. During the discussion, National Grid Transmission social value lead Abbey Reid emphasised the importance of understanding communities before programmes are designed. She explained that successful social value isn’t something you bring to a place – it starts by understanding what that place actually needs.

Mott MacDonald’s experience shows that understanding local conditions, engaging with stakeholders and identifying the challenges are critical first steps. However, a strategy developed for one location cannot simply be transferred elsewhere. Successful programmes identify the specific barriers facing a community and design interventions that create measurable change.

As Iain observed, the biggest social value gains come when the supply chain works as a team rather than a collection of individual contracts and that principle also applies to supply chain development. One of the clearest findings from both Mott MacDonald’s client work and industry discussions is that social value outcomes improve when suppliers collaborate rather than compete.

Meaningful impact

Rolls-Royce SMR head of social value Anne Parks explained that the conversation around social value is moving beyond the headline numbers. She said that what matters isn't the value you've promised on paper, it's the difference communities can see and experience.

In recent years, discussions about social value were often dominated by monetised proxy values and attempts to place a financial figure on outcomes. While such approaches have not disappeared, many clients are increasingly focused on tangible impact and evidence of real change. Metrics such as apprenticeship utilisation, workforce diversity, engagement with schools and support for underrepresented groups provide a more human and meaningful picture of success. The emphasis is shifting back to demonstrable outcomes.

The webinar discussions align with Mott MacDonald’s view that organisations that will create the greatest value from forthcoming nuclear investment will be those that begin with the end in mind. They will understand local priorities before procurement begins, establish partnerships that can endure beyond construction and create mechanisms that allow social value benefits to transfer from one phase of a programme to the next. They will view social value not as a reporting requirement but as a strategic tool capable of unlocking economic growth, strengthening local supply chains and widening access to opportunity. For nuclear clients, developers and tier 1 contractors preparing for the next generation of projects, that represents both a challenge and an opportunity.

The full webinar is available to get detailed insight into how social value delivery is changing and the opportunities the nuclear industry is creating to deliver meaningful impact.

 

Subscribe for exclusive updates

Receive our expert insights on issues that transform business, increase sustainability and improve lives.