Is it worth investing in Visionary Nature-based Solutions?

Exploring the social benefits of EU Project VARCITIES' Visionary Nature-based Solutions through Social Return on Investment Analysis

by Saba Mirzahosseini Barough & Elisa Vasiliu – 05.08.24

In the realm of urban development, the typical approach to evaluating projects revolves around their potential for financial profit. However, what happens if we redirect our attention to prioritize the enhancement of citizens’ health and well-being? How can we measure the social changes that occur as a result of an intervention, whether positive or negative?

This article describes the process of measuring social aspects that not only explore intangible benefits but also undergo a validation process of expected outcomes by directly engaging key stakeholders in workshop activities and conducting site visits to collect first-hand impressions.

The case study considered is the EU project VARCITIES, which focuses on the social impact of implemented Nature-Based and Digital solutions. The social benefits analysed are assigned a monetary value by applying the methodology of the Social Return on Investment (SROI). 

Overview of the EU Horizon 2020 VARCITIES Project

The VARCITIES Project focuses on a holistic approach to  Visionary Nature-Based Solutions (VSs), i.e., a series of urban actions that integrate Nature-based, Digital and Socio-cultural solutions to shape innovative urban spaces with the goal of establishing a more resilient and liveable urban setting for its residents, ultimately improving their health and well-being  – Learn more about VSs. The project started in 2020 and will continue until 2025. It is being implemented in 7 European cities: Chania (EL), Castelfranco Veneto (IT), Leuven (BE), Novo Mesto (SI), Skelleftea (SE), Dundalk (IE) and Gzira (MT).

visionary nature-based solutions_VARCITIES pilots. Source: varcities.eu - What's That Green?

VARCITIES  pilots. Source: varcities.eu

Gzira pilot

In the Gzira pilot, VARCITIES has played a crucial role in implementing VSs to enhance vibrancy and sustainability along Rue d’Argens, a heavily trafficked road, and at a local primary school. This innovative project goes beyond the mere introduction of green spaces; it focuses on community empowerment and sustainable development.

Three VSs are currently being implemented in Gzira:

  1. Micro-greening interventions in a local bus station and adjacent parking lot through a participatory design process.
  2. Citizen science on air and noise quality to increase health & well-being.
  3. Urban biodiversity, education and engagement through a co-created community garden project.

Further information on the Gzira pilot and real-time environmental monitoring data are available on the VARCITIES Health & Wellbeing Platform.

1.2_visionary nature-based solutions_VARCITIES pilots. Source: varcities.eu - What's That Green?
1.3_visionary nature-based solutions_VARCITIES pilots. Source: varcities.eu - What's That Green?

VARCITIES  Gzira pilot. Source: varcities.eu

SROI analysis use

The Social Return on Investment (SROI) analysis plays a crucial role in assessing the social, environmental, and economic benefits emerging from these combined Nature-Based and Digital interventions. By quantifying the positive impacts of these solutions, urban project managers can gain a clearer understanding of the value they bring to the community. This process aids in making well-informed decisions and prioritizing investments that optimize benefits for both residents and the environment.

The Three Stages of SROI Framework

  1. Theory of Change: This initial phase is similar to creating a blueprint, shaping the vision and pathways of a project’s social benefits. By involving stakeholders and community members early on, a shared vision of the expected outcomes is developed, setting the stage for measuring the social impact and value created by the project.
  2. Quantification of Outcomes: This stage links numbers with the outcomes agreed during the Theory of Change phase, focusing on quantifying the social, environmental, and economic impact of the project. The data collection, the measuring of indicators, and the assigning of monetary value to these outcomes showcase the positive changes brought about by an initiative.
  3. Reporting: It’s time to display the results! In this final stage, the results of the SROI assessment are presented in a detailed report. By sharing these insights with stakeholders, funders, and the community, transparency and accountability are promoted, empowering communities by recognizing their contributions and the value of VS projects.
visionary nature-based solutions_SROI methodology steps_c_ Saba Mirzahosseini Barough - What's That Green?
SROI methodology steps. Source: authors' elaboration

Empowering Communities Through Citizen Engagement

Active citizen engagement is vital to enhancing VSs by enriching community empowerment and fostering a sense of ownership. By incorporating community voices and values into Willingness-To-Pay (WTP) assessments for project outcomes, citizens become proactive creators, as this engagement deepens their connection with nature, promoting stewardship and prioritizing community aspirations in decision-making processes. 

Finally, involving residents in evaluating WTP cultivates transparency, accountability, and inclusivity in Nature-Based and Digital solution projects, aligning initiatives with community preferences and promoting collective responsibility for environmental conservation.

What was truly innovative in the SROI application in the VARCITIES project was the bottom-up approach of listening and validating the outcomes with the residents engaged. Instead of assuming the possible outcomes and respective monetary values. Therefore, three main involvement activities have been organized:

  • An onsite visit to disseminate the project, collect impressions on the VS from the local community and measure how they would value changes in their neighbourhood thanks to the WTP technique
  • A workshop with local experts
  • A workshop in which locals could directly define the Theory of Change in their neighbourhood and being able to assign a value to the expected changes
visionary nature-based solutions_Stakeholders in Rue d’Argens_source - What's That Green?
Stakeholders in Rue d’Argens expressing future aspirations for their neighbourhood ©Saba Mirzahosseini Barough

Complete SROI Application – Castelfranco Veneto Pilot

While the Gzira pilot is still in progress, the VARCITIES project initially tested the SROI methodology in the pilot of Castelfranco Veneto, a medium-small Italian city in the North. The results showed that for each euro invested, two euros of social return were generated.

In Castelfranco Veneto, six VS were proposed:

  • VS 1: Creation of garden access routes to ensure improved access according to the needs of the garden users
  • VS 2: Analysis and monitoring of psychological and physiological well-being for elderly people and people affected by Alzheimer
  • VS 3: Full monitoring of microclimatic conditions in the different areas of the garden (forest area, open area, lake area)
  • VS 4: Development of a green public space (re)design toolbox and establishment of the “Local observatory on therapeutic effects of the landscape“
  • VS 5: Implementation of virtual and ICT tools to ensure a rewarding experience of garden users and for the assistance of visitors with disabilities with the goal of increasing safety while visiting the garden
  • VS6: Adaptive and intelligent lighting systems/energy data management
5_visionary nature-based solutions - What's That Green?
Visionary Nature-Based Solutions in Castelfranco Veneto. Source: Varcities

Following six workshop activities, two for each stakeholder group deemed relevant as affected by VARCITIES, the main outcomes outlined within the Theory of Change are as follows: 

6_visionary nature-based solutions - What's That Green?

For further information read the scientific article: Visionary Nature-Based Solutions Evaluated through Social Return on Investment: The Case Study of an Italian Urban Green Space

To sum up

The lessons learned from VARCITIES highlight the importance of prioritizing sustainability and green solutions in urban development. By embracing VSs, communities can create more resilient and liveable spaces that not only benefit the environment but also enhance the quality of life for residents. As we continue to explore the positive impacts of these solutions through SROI analysis, we gain a deeper understanding of how these initiatives can pave the way for a greener and more sustainable future. This detailed assessment not only quantifies the benefits of the initiatives but also empowers residents to actively engage in the evaluation process. By involving the community in measuring social value, the project provides residents with a “stage” to express their preferences and priorities. This inclusive approach not only strengthens the connection between the initiatives and the community but also ensures that VSs align with residents’ needs.

Key takeaways

  • Employing social impact assessment tools aids decision-making, especially in adopting innovative solutions that are usually considered not cost-effective.
  • Looking at the success of an urban intervention purely from an economic point of view is reductive and does not guarantee social acceptance.
  • Actions should be taken considering the long-term effects, given the permanence of projects on the territory.