Social and economic statement of impacts: guidance for applicants

5. Structure of the SESI

This section sets out the structure of the SESI. The structure reflects the standard appraisal set out in HM Treasury’s Green Book, adapted to the context of offshore and other marine projects.

The SESI should be clearly structured and include the following sections:

• project overview: A brief description of the proposed project, including its location, scale, key activities and anticipated project phases
• study area: Applicants should include a description of the study area(s) used for the assessment including a rationale and the method used for defining them. While a Scotland wide overview of impacts is required, more localised study areas are also necessary to understand impacts on specific communities and sectors .

Where relevant, and where applicants are able, applicants should identify the port(s) likely to be used during different phases of a project. If applicants are unable to disclose information on specific ports due to commercial sensitivity or uncertainty, the inclusion of up to five likely port locations is recommended for each main phase of the project. Where shortlisting of likely port locations is not feasible, hypothetical scenarios can be constructed with representative port locations. These should be clearly set out, with accompanying rationale and assumptions.

All effects should be assessed at the smallest study area possible. Guidance on defining an appropriate study area is published by the Scottish Government^[5]

• stakeholder mapping and identifying affected groups: Applicants should identify the people, groups, communities and sectors that may be affected by the project. This should include a high-level stakeholder mapping exercise, informed by engagement activity where possible. This should describe how stakeholders have been or are planned to be engaged throughout the process. Annex C provides resources that can assist in planning for suitable stakeholder mapping and identification
• impact pathways/ theory of change models: Applicants should set out the mechanisms through which the project is expected to generate economic and social impacts. This may take the form of a theory of change model or narrative description linking the project activities to expected outcomes, also known as impact pathways. This should clarify why particular impacts are considered relevant or excluded from the assessment. Guidance on theory of change modelling can be found in HM Treasury’s Magenta book^[6]
• approach and methodology: A clear description of the reproducible analytical approach and methods used to assess the economic and social impacts. This should include any modelling techniques, assumptions, data sources and use of expert judgement
• baseline and counterfactual: Applicants should present a description of the current socio-economic conditions drawing on recent data, typically from the last three to five years. A description of how these conditions are expected to change in the absence of the project should be included to provide a counterfactual against which impacts can be assessed over the project lifecycle
• economic and social appraisal: This should present an assessment of the expected economic and social impacts compared to the counterfactual, covering the relevant project phases. This should draw on project level data, secondary sources and, where appropriate, stakeholder engagement or expert judgement. Applicants should clearly explain how appraisal concepts such as additionality, displacement, leakage and deadweight have been assessed
• uncertainty, bias and limitations: A discussion of the main sources of uncertainty, bias and limitations in the data, methods and assumptions. Applicants may wish to use scenario switching and/or sensitivity analysis where appropriate
• summary and conclusions: A clear summary of the key economic and social impacts identified, including both positive and negative effects, and how these are distributed across communities, sectors and geographies