Embedding Social Sustainability in the District Energy Business Model

Social sustainability is the “missing pillar” in many district heating strategies. In this episode, Hanne Kortegaard Støchkel (DBDH) talks with Kristina Lygnerud and Johanna Aurault about how to integrate social value into every stage of the district heating value chain. From a Canadian case study in Burnaby to practical tools like social KPIs, they explore how municipalities and companies can work together to improve community well-being, strengthen business cases, and stay competitive. 🎯 For: Business developers, municipal decision‑makers, and energy professionals. Social sustainability is often overlooked in district heating, yet it is essential for creating energy systems that are resilient, inclusive, and trusted by communities. It goes beyond economic and environmental goals to address the broader social impacts of energy projects—ensuring benefits are shared across stakeholders, from employees and customers to local communities and future generations. A recent study funded by the International Energy Agency explored this in Burnaby, Canada, revealing key differences from the European context. While Europe often frames social sustainability around fuel poverty, Canadian stakeholders linked it to health, climate resilience, and urban planning. Interviews with a wide range of stakeholders—from architects to disaster management offices—showed that district heating’s value extends far beyond its core function. Social sustainability can be embedded at every stage of the district heating value chain, creating opportunities for innovation and stronger community ties. Social Key Performance Indicators (KPIs) help measure these impacts, with many benefits—such as community education, inclusive urban design, and improved cityscapes—being non-monetary but highly influential. Drivers include both external pressures (legislation, procurement requirements, public expectations) and internal motivations (competitiveness, talent attraction, stakeholder trust). Municipalities can lead by setting clear social sustainability criteria and integrating urban and energy planning. District heating companies benefit by aligning with these expectations, building partnerships, and enhancing their business cases—turning social engagement into a competitive advantage. The shift towards social sustainability is not about technology—it’s about mindset. Strong relationships, cross-sector collaboration, and deep community integration will define the most successful and future-ready district heating projects. Chapters: 0:00:00 - Introduction: Why Social Sustainability Matters 0:01:00 - The First Study of Its Kind 0:02:09 - Defining Social Sustainability 0:03:22 - Case Study: Burnaby, Canada 0:05:13 - Unusual Stakeholders and New Insights 0:06:38 - Shared and Divergent Stakeholder Values 0:08:05 - Beyond Core Business: Anchoring in the Community 0:10:07 - Social Sustainability in the District Heating Value Chain 0:12:24 - Measuring Impact: Monetary vs Non Monetary KPIs 0:14:46 - Ripple Effects and Public Perception 0:16:10 - Internal and External Drivers 0:18:22 - The Role of Municipalities 0:21:20 - The Role of District Heating Companies 0:23:05 - Actions to Foster Social Sustainability 0:24:58 - Business Model Transformation 0:26:38 - Conclusion: A People Centred Mindset