In a world of rapidly changing economic and social dynamics, understanding territorial impact has become essential.
This concept, both rich and complex, plays a crucial role in the sustainable development of territories.
In this article, we define territorial impact and explore its importance in contemporary society.
1 - What is territorial impact?
Territorial impact can be defined as all the spin-offs generated by an activity or project on a given territory.
This includes economic, social, fiscal and environmental aspects.
The territorial impact approach makes it possible to analyze how the actions of companies, governments and other entities influence the well-being and development of local communities.
2 - Importance of territorial impact
- Economic and social development: Territorial impact is crucial in assessing how local initiatives can stimulate economic development and improve the quality of life of local residents.
By measuring the impact of projects on local communities, decision-makers can optimize resources and direct investments more effectively.
For example, knowing the impact that a plant has on a locality can encourage decision-makers to grant subsidies more readily, with the aim of reinforcing this beneficial effect on the community (via job creation, tax generated etc.).
- Sustainability and the environment: In the context of climate change and pressure on natural resources, it is vital to understand the environmental impact of companies' activities on the territory.
Territorial impact analysis enables us to identify the main sources of carbon emissions linked to a company's activities.
This assessment is crucial in helping the company to reduce excessive emissions or, on the contrary, to valorize its efficient ecological practices.
- Strategic planning: for companies and organizations, territorial impact assessment is a strategic tool for planning and decision-making.
It helps to identify growth opportunities and minimize potential risks.
For example, if a company realizes that 70% of its spending takes place outside its territory or country, it can develop strategies to reduce this rate and thus improve its local territorial impact. The aim of this approach is to reinforce the positive impact of its activities on a given territory.
3 - Case studies and applications
Various case studies show how territorial impact analysis has been successfully used in different contexts.
For example, an urban development project can be assessed for its impact on local employment, economic growth and the environment.
Similarly, a company can use this analysis to measure the effectiveness of its corporate social responsibility (CSR) initiatives.
Take the Logis Hôtels group, for example. With a strong presence in Auvergne-Rhône-Alpes (17% of its establishments), the group has a significant impact on the local economy in France.
Their network of hotels, located every 12 km on average, supports a local purchasing policy, with 69% of purchases made in the département (on average 217 km away) and 85% within 400 km.
In 2022, the Group created 23,420 full-time equivalent jobs, divided between 16,431 direct jobs, 3,796 indirect jobs and 3,193 induced jobs, reflecting its influence on local economies.
One euro spent in their establishments generates €0.35 in payroll and around 12.8 jobs per hotel per year, including 0.42 induced jobs per direct job in the département.
Fiscally, the group contributed €81.6 million in 2022, or around 6% of their sales. These taxes are divided into direct (37.2 million euros), indirect (23.5 million euros) and induced (21 million euros). Thus, every euro spent also generates €0.06 in taxation. These tax contributions and job creation underline Logis Hôtels' key role in the French regional economy.
For more details, see our full report on the Logis Hôtels Group's territorial impact: Logis Hôtels Group - Territorial Impact Report 2023
Conclusion
Territorial impact analysis is fundamental to the modern economy, offering a holistic perspective on the effects of companies and projects on territories.
It helps guide sustainable development, optimize economic and environmental strategies, and reinforce corporate social responsibility.
Concrete examples, such as that of the Logis Hôtels group, illustrate the importance of this approach to assessing and improving local impact.
Territorial impact thus becomes a key indicator for measuring the effective contribution of entities to the well-being and prosperity of local communities.
