SSE Community Investment Review 2017/18 Contents Foreword Foreword 01 Funder’s Report 02 Sustainable 04 2017/18 Development Fund 2018 marks the 10th anniversary maturing and delivering real benefit to environment for the development of the UK’s Climate Change Act, communities. of new on-shore wind projects, the establishing the framework from Scottish Government is carrying out a Beatrice Fund 8 Local Funds 11 Our Funds in Focus 17 which Scotland and the UK would see In 2017/18, £5.1m community review of its guidelines for community significant investment in low carbon investment funds were made available benefit and community ownership electricity generation. In SSE’s case – to the local and regional panels. This of renewables, with SSE actively we have invested nearly £4bn since represents the largest funding pot SSE participating in the review. We led the 2008 – with more to come. has provided. This ‘pot’ is available at a way with our approach to community time when the funds themselves have benefit in 2012 and we are committed Our funds in focus That investment creates jobs and reached key milestone, for example to ensuring that value continues to be supports local economies – as well the fifth anniversary of the Keadby created in a sustainable way for both Highlands and Islands Perth and Kinross Sustainable 29 Development Fund as providing low carbon renewable Wind Farm Fund in North Lincolnshire. SSE and communities. Beatrice Caithness Community Fund 18 Development Fund electricity to provide homes with the These milestones give local leaders the Dunmaglass 19 Dumfries and Galloway energy they need. From the earliest opportunity to look back at what had I’m pleased that the SSE funds are Strathy North 20 Argyll and Bute Clyde Dumfries and Galloway 36 days of these wind farm developments, been delivered, but more importantly supporting communities I would like to Bhlaraidh 20 Tangy 30 Artfield Fell 37 there was wide acknowledgement to focus on their priorities for the thank the countless people who give Gordonbush 21 Balmurrie Fell 38 that the local communities that hosted coming years. up their time freely to sit on our panels Glendoe 22 Ayrshire Moffat Construction Fund 38 the wind farms should share in the or volunteer for their local Trust. You all Fairburn 24 Hadyard Hill 30 economic benefits that they create. The model for managing the contribute to the success of our funds Achany 25 Hunterston 31 North Lincolnshire That is why Community Benefit is a Community Funds varies from place and without you I am in no doubt that Spurness 25 Keadby 39 central feature of SSE’s renewable to place. In most cases local decision SSE’s Community Funds would not Kingairloch 26 Scottish Borders energy portfolio with £23m provided in making panels, supported by SSE, have the success that they do. Beatrice Partnership Fund - Highlands 26 Clyde Borders 32 Community Funding since 2008. decide the investment strategies. I hope you enjoy this year’s report and, Toddleburn 33 In 2012 we brought the management However, in some places local Trusts like me, are inspired by the fantastic Moray Scottish Borders Sustainable 34 of our renewable energy funds in- are the custodians of the funds. These work going on in our communities. Beatrice Moray Community Fund 26 Development fund house. We did that because we believe trusts have been a focus for the SSE in it would result in better partnerships 2017/18 helping to forge even stronger Perthshire South Lanarkshire between the company and the links with communities and working Griffin and Calliachar 27 Clyde South Lanarkshire 34 communities where we operate. Five with Third Sector partners to ensure Drumderg 27 South Lanarkshire Sustainable 36 years on and – we believe - the funds that the funding has maximum impact. Rachel McEwen and our approach to funding, are Recognising the challenging Director of Sustainability SSE Community Investment Review 2017/18 1 Funder’s Report 2018/19 is a growing area of focus. SSE is understanding of and relationship with priorities of the local communities. an active member of the steering the trusts and organisations which Local fund group established by the Scottish manage funds on our behalf. A focus New Approaches awards Government to review its current this year has been on increasing the 2017-18 was a year in which the team guidelines for community benefit and support given to North Lincolnshire embraced different ways in which to £5.42 shared ownership. SSE is committed Council to ensure their delivery deliver funds. The innovative Griffin to developing a responsible approach aligns with new developments within and Calliachar Enterprise Fund (p13) in this area and is working with the SSE process. The team has also was launched in May 2017 and has stakeholders to explore options for worked with a number of trusts and successfully provided funding of shared ownership and other models community companies from the Great £250,000 in business grants to local Invested in 2017/18 (SDF South Lanarkshire Social Return on Investment study) of Community Funding, ensuring that Glen area in the Highlands to ensure social enterprises and small businesses. value is created in a sustainable way for these externally managed funds are The Moffat Construction Fund, part 3% from 16/17 Strong foundations Thriving youth Enterprising opportunities Vibrant communities both the business and communities. consistently operated and continue of the Clyde Extension Fund (p15) Active lives Sustainable surroundings to meet the needs of local people. A provided SSE’s first experience of using Enhancing Relationships collaborative workshop was held in a public community vote for funding renewable Maturing as a funder over the last the Great Glen to share best practice decisions. Working with communities, energy five years, there has been recognition and identify future priorities. As part the team welcomes the opportunity to 29 funds that our approach to some elements of this process the decision was taken consider new approaches, particularly 463 of funding needed to be refreshed to wait until 2018-19 to start the new those which empower communities and further developed. A key priority Stronelairg Wind Farm Fund – ensuring and help deliver legacy projects. 15% from 16/17 for 2017-18 was enhancing our that due consideration is given to the Average award of Priorities for 2018-19 £11,196 Indications are that 2018-19 will be another busy and focused year with a range of 10% from 16/17 priorities which will ensure SSE’s community investment programme compliments the changing landscape in which it operates: − Community Benefit and Shared Ownership – SSE will engage with the Scottish 2018-19 Year in review Government consultation and remains committed to engaging positively internally and 2017-18 has been a year for growth operate, continual improvement into community assets and services. As externally on the subject. and maturity within the SSE community our fund management process and well as celebrating the awards made to investment programme. The funds have partnership with other funders. date, the community was encouraged − Sustainability Support – it is recognised that as a responsible funder SSE must provide the now reached a size and scale at which to think about the future priorities of best possible support to funded organisations. In 2018-19 the team will work in partnership significant impact can be evidenced, Celebrating Anniversaries the fund. The fifth anniversary of the with Wren and Greyhound, impact consultants, to trial the delivery of sustainability with £5.1m being awarded to 463 The tenth anniversary of the Drumderg Keadby Wind Farm Fund was used to projects. Five years after bringing the Wind Farm Fund in Perthshire (p14) was work with the local panels to reflect workshops as part of its on-going support of Sustainable Development Fund projects. management of our funds in-house we marked this year with a community on past successes and to amend the can reflect on the importance of this event bringing together local residents criteria to reflect the current needs of − Launch of Funds – after time spent in 2017-18 to ensure the delivery method and approach decision in empowering communities and past recipients to celebrate the the community. for our new funds was correct the team looks forward to the launch of both the Clyde to make funding decisions and £1m of awards made locally since the Extension and Stronelairg wind farm funds which are anticipated to provide £9.6m and £14m improving our management of the fund opened. The event highlighted the Looking to the Future funds over this time. As an experienced importance of supporting grassroots The future of community benefit respectively over their lifetime. funder, we are creating a culture of community projects which have and shared ownership of renewable collaboration between the funds we used the funding to develop thriving developments with communities 2 SSE Community Investment Review 2017/18 3 Sustainable Demonstrating our impact Development Fund Stranraer Development Trust Dumfries and Galloway Sustainable awarded Fund Demand Development Fund – Sustainable Places £10,000 awarded in October 2016 South Lanarkshire A new tourism venture adds £500,000 to the local economy. £543,441 451% An excellent example of the impact that the Sustainable Development Fund can have is demonstrated by the Stranraer Development Trust. The Scottish Borders fund provided the initial investment to support the Trust to develop the first Stranraer Oyster Festival, which was a celebration of the area’s unique coastal heritage. As well as supporting local businesses, the event helped to extend £190,476 492% the summer tourism season and capitalised on the ever-expanding growth of food tourism. Stranraer Development Trust commissioned MKA Economics Perth and Kinross to carry out independent research which found that: the event contributed £500,000 to the local economy; provided benefits for 10,000 attendees; and £225,359 323% that 90% of survey responders found the event very enjoyable.