In a world where economic and social dynamics are changing rapidly, understanding territorial impact has become essential. This concept, which is both rich and complex, plays a crucial role in the sustainable development of territories. In this article, we will define what territorial impact is and explore its importance in our contemporary society.
1 - What is territorial impact?
Territorial impact can be defined as all the benefits generated by an activity or a 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 businesses, 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 to assess how local initiatives can stimulate economic development and improve the quality of life of residents. By measuring the impact of projects in local communities, decision-makers can optimize resources and direct investments more effectively. For example, knowing the impact that a factory has on a locality can encourage decision-makers to award subsidies more easily, in order to reinforce this beneficial effect on the community (through job creation, taxation generated, etc.)
- Sustainability and environment: In the context of climate change and pressure on natural resources, understanding the environmental impact of the actions of business activities on the territory is vital. Territorial impact analysis makes it possible to detect the main sources of carbon emissions linked to a company's activities. This assessment is crucial to help the company reduce its excessive emissions or, on the contrary, to promote its efficient ecological practices.
- Strategic planning: For businesses and organizations, territorial impact assessment is a strategic tool for planning and decision-making. This makes it possible to identify growth opportunities and to minimize potential risks. For example, if a company finds that 70% of its expenses are outside its territory or country, it can develop strategies to reduce this rate and thus improve its local territorial impact. This approach thus aims to reinforce the positive impact of its activities on a given territory.
3 - Practical cases and applications
Various case studies show how territorial impact analysis has been used successfully in different contexts. For example, an urbanization project can be evaluated for its impact on local employment, economic growth, and the environment. Likewise, a company can use this analysis to measure the effectiveness of its corporate social responsibility (CSR) initiatives.
Take the example of the Logis Hotels Group, 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 at the departmental level (on average 217 km away) and 85% less than 400 km away.
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 about 12.8 jobs per hotel per year, including 0.42 jobs induced per direct employment at the departmental level.
Fiscally, the group contributed 81.6 million euros in 2022, or around 6% of their turnover. This taxation is divided into direct taxation (37.2 million euros), indirect taxation (23.5 million euros) and induced taxation (21 million euros). Thus, each euro spent also generates €0.06 in taxation. These tax contributions and job creation highlight the key role of Logis Hotels in the French regional economy.
For more details, see our complete territorial impact report from the Logis Hotels Group: Logis Hotels Group - 2023 Territorial Impact Report
Territorial impact analysis is fundamental in the modern economy, offering a holistic perspective on the effects of businesses and projects on territories. It helps guide sustainable development, optimizes economic and environmental strategies, and strengthens corporate social responsibility. Concrete examples, such as that of the Logis Hotels Group, illustrate the importance of this approach in evaluating and improving local impact. Territorial impact thus becomes a key indicator to measure the effective contribution of entities to the well-being and prosperity of local communities. For more details on these case studies, See you here.