Methodology note

Social Foundation Contribution (SFC)

A locally grounded, internationally recognisable social ESG metric: household Poverty Stoplight data (Fundación Paraguaya) aggregated onto the social foundation of Kate Raworth's Doughnut Economics model.

The two models

Doughnut Economics defines a safe and just space between an inner social foundation — minimum standards for human well-being — and an outer ecological ceiling of planetary boundaries.

The Poverty Stoplight is a household-level, traffic-light assessment across 50+ indicators (income, housing, education, health, safety and more), each scored red, yellow or green.

The Doughnut supplies the framework; the Stoplight supplies the granular, measurable data that populates the social foundation layer.

The formula

Dimension Score % = (Green + 0.5 × Yellow) ÷ Total households surveyed × 100
SFC Overall       = AVERAGE(all 12 dimension scores)

Red counts as zero, yellow as half credit, green as full credit. Dimensions are averaged unweighted, so no single dimension can mask a shortfall elsewhere. Scores are only released for a scope with at least five surveyed households, protecting individual identity.

Indicator mapping

Doughnut dimensionStoplight areas
Food
Nutrition, food access and potable water at household level.
Food Security
Health
Clinic access, hygiene, eye & dental care, vaccinations, insurance.
Healthcare
Education
School enrolment, income-generating skills, budgeting literacy.
Education
Income & Work
Earnings above the poverty line, stability, savings, credit, multiple income sources.
Income, Employment
Peace & Justice
Household security, freedom from violence, access to recourse.
Safety
Political Voice
Voter registration, ability to influence the public sector.
Community Participation
Social Equity
Fair participation in community and economic life.
Community Participation, Income
Gender Equality
Freedom from gender-based violence, equal access to learning and earning.
Safety, Education
Housing
Shelter quality, separate bedrooms, ventilated kitchen, basic comfort.
Housing
Networks
Connectivity, phone access, social capital and support networks.
Digital Access, Community Participation
Energy
Electricity, safe cooking energy, clean fuel.
Housing, Environment
Water
Safe drinking water, sanitation and an unpolluted environment.
Food Security, Environment

Data collection & cadence

  • Hubs, suppliers and partners run Poverty Stoplight self-assessments with member households in the UCan app.
  • Recommended cadence: bi-annual, with continuous updates permitted as households improve.
  • Aggregates roll up by hub, community or supplier base; a published snapshot freezes the figure for audit.
  • Ecological ceiling metrics (carbon, water, land under restoration) are recorded separately and never alter the SFC.

Use on invoices and in reports

ESG Metrics
– Carbon intensity: 12.4 kg CO₂e per R1,000 revenue
– Social Foundation Contribution (SFC): 78% (Poverty Stoplight – Doughnut aligned)
– Governance score: AA (internal rating)

The SFC can be referenced against GRI social disclosures, SASB human-capital and community metrics, and the EU CSRD social standards. Third-party verification — by Fundación Paraguaya or an external auditor — raises assurance from self-reported to verified.

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