Route 2

ROUTE2 TRANSLATES DATA AND INFORMATION INTO MORE USEFUL FORMS AND FORMATS.

Embodied in three core services, these new forms and formats can incentivise countries and corporations to establish more resilient and long standing foundations for wealth creation and distribution.

ROUTE2’S  SERVICES ARE DISTINCTIVE FOR TWO REASONS   

First, they manifest from real-time, ground-sourced, web-sourced, and direct disclosure-sourced data and information. 

Secondly, the sourced data and information is structured and analysed according to Route2’s understanding of what drives wealth creation. Resulting services offer richer and more current views on what drives and undermines wealth creation.


PRODUCTS

Advisory

Balancing requisite short term financial returns with strategies for long term and resilient wealth creation…

Route2's Value 2 Society™ product strengthens our clients’ societal license to operate and enriches their views on future risks and opportunities.

The full Value 2 Society™ engagement classifies and quantifies all impacts resulting from business activities, positive and negative, across value chains, upstream and downstream. Additionally, economic valuation is utilised to enable impact comparison, aggregation and integration.

Example modules, which are all available independently include: Supply Chain Risk Assessment & Evaluation; Integrated Reporting Support; Spatially Explicit Economic Valuation of Ecosystem Service Provision; Human Capital Economic Valuation; Social Capital Economic Valuation; and Social Benefit Assessment & Evaluation of Products.


Data & Analytics

Generating fresh insights on risks to and opportunities for long term and resilient wealth creation...

Route2 data sets, which inform our advisory services, are independently available on a subscription basis to organisations with specific issue based needs. Example data sets include: event probabilities e.g. fraud incident, workforce strike, pollution spill etc. and country-industry impact profiles e.g. indirect modern slavery, first tier carbon dioxide, direct occupational injuries etc.


Credit Ratings

Providing alternative views on creditworthiness...

Standard creditworthiness methodologies augmented with Route2’s data, information and insight provide alternative and challenging views to convention. Route2 Credit Ratings, of sovereign and corporate issuers, follow the familiar alphanumeric rating form and are supported by summary and more detailed reports.

Issuer credit ratings will be available on a subscription basis and will reflect a constant real time ground sourced flow of data and information.



WEALTH CREATION

WEALTH CREATION

Route2’s understanding of the foundations for wealth creation assigns primacy to six types of capital-stock and eight types of capital flow.

The route to establishing more resilient and long standing foundations for wealth creation is the effective management of six types of capital stock. This is achieved through maintaining respective critical stock components, enhancing their functional out-flows, and developing a clear and actionable understanding of stock interdependencies and stock-flow interrelationships.

CAPITAL STOCK:

Financial Capital

The cash & cash equivalents that provide a store of market value and a medium of exchange for other stock functions


CAPITAL STOCK:

Manufactured Capital

The inventory of property, plant, equipment and other manufactured goods that house economic activities, perform mechanical work and provide inputs to other production processes


CAPITAL STOCK:

Natural Capital

The store of ecosystem goods and services, such as minerals, carbon sequestration and biodiversity produced by the natural environment


CAPITAL STOCK:

Human Capital

The physical and psychological capacity of individuals to undertake market based employment and pursue wider aspirations


CAPITAL STOCK:

Intellectual Capital

The store of knowledge orchestrating the production of economic goods and services, driving innovation and furthering the development of humanity


CAPITAL STOCK:

Social Capital

The store of trust between people and organisations that facilitate all human exchanges, whether market based or wider social interactions


CAPITAL FLOWS:


  • Investment

    Positive flow



    Interventions to maintain or enhance capital stock functions / outputs and associated economic values. Investments, as recognised by Route2, do not include acquisitions. This flow captures the quantitative and qualitative changes to stocks under current ownership / control


    Financial Capital stock example

  • Depreciation of Value - Internal

    Negative flow



    The impairment of capital stock capacity to generate functions / outputs and erosion of associated economic values, resulting from owner / controller management decisions


    Financial Capital stock example

  • Depreciation of Value - External

    Negative flow



    The impairment of capital stock capacity to generate functions / outputs and erosion of associated economic values, resulting from external factors, classified as Natural, Social, Political & Market


    Financial Capital stock example

  • Appreciation of Value - Internal

    Positive flow



    The enhancement of capital stock capacity to generate functions / outputs and increase of associated economic values, resulting from owner / controller management decisions


    Financial Capital stock example

  • Appreciation of Value - External

    Negative flow



    The enhancement of capital stock capacity to generate functions / outputs and increase of associated economic values, resulting from external factors, classified as Natural, Social, Political & Market


    Financial Capital stock example

  • Private Benefits

    Positive flow



    Capital stock functions / outputs, required to create economic goods & services, which are capable of market based exchanges. Exchange, between sellers and buyers, is mediated by the market prices of economic goods and services. Typically, the exchange will result in the seller receiving financial capital (cash) from the buyer.


    Financial Capital stock example

  • External Benefits

    Positive flow



    Capital stock functions / outputs, required to create economic goods & services, which are not capable of market based exchanges. Absent characteristics make provision of these goods and services difficult to control. Such goods and services are gifts, from the producer to society. No financial capital is received by the seller in return for their provision.


    Financial Capital stock example

  • External Costs

    Negative flow



    External costs represent the use of capital stock functions / outputs, required to create economic goods & services, for which no financial costs are incurred. External costs represent the consumption of external benefits.


    Financial Capital stock example


CASE STUDIES

Example case studies include:


The Crown Estate

The Crown Estate

Total Contribution


Route2 has been integral to The Crown Estate’s Total Contribution initiative since inception. Total Contribution quantifies and communicates The Crown Estate’s contribution to the UK economy and wider society. The core methodologies are now evolving into decision-making tools, for example, an aid to investment management. Further, Route2 has supported The Crown Estate in quantifying the economic benefits of ecosystem services produced across their rural and coastal portfolio.


SGS

SGS

Green Book & Value 2 Society


Route2 has been central to the development and deployment of SGS’s unique Green Book and Value 2 Society framework. The Green Book is an ancillary management account, recording non-financial data (e.g. tonnes of greenhouse gas emissions, equal opportunity ratios etc.). It has been implemented across more than 50 countries of operation. Attainment of associated performance targets influences performance reviews. Driven by Green Book data, Value 2 Society helps SGS identify the future risks to and opportunities for their diverse services.  


Yorkshire Water

Yorkshire Water

Total Impact


Route2 has supported Yorkshire Water in their Total Impact initiative, providing advice on impact characterisation, quantification and economic valuation. Total Impact helps Yorkshire Water better understand the full consequences of routine operations across the value chain and thereby help reveal future risks and opportunities. Further, Route2 has supported Yorkshire Water quantify the economic benefits of ecosystem services produced across their rural portfolio.


Nike

Nike

Economics of Green Chemistry


Route2 has supported Nike's pursuit of zero discharge of hazardous chemicals. Specifically, using Route2’s economic models and economic valuation techniques, Route2 supported the full cost benefit analyses of shifts to green (non-hazardous) chemicals across footwear and clothing ranges.


PWC

PWC

Sustainable Development Goals


Route2 supports PwC in the development and deployment of their Sustainable Development Goal [SDG] ‘Business Navigator’. The navigator enables organisations to distil the SDG priorities across their countries of operation and the associated risks to growth if host countries do not achieve the goals.


ROUTE2 FUTURE

Route2’s credit rating service is currently in beta mode. 

The Route2 App and Route2 Search Engine, which surface and extract the data and information underpinning this, are in a planned testing mode. 

More details will be disclosed in the near future. 


JOIN OUR TEAM

If you have an interest in social, political and environmental issues and their influence on finance please apply. Quantitative and analytical skills are favoured, but not essential. Successful applicants will be involved in an exciting business, have immediate responsibilities and receive a competitive salary.

If you believe you could add value to Route2, please email a CV and covering letter to careers@route2.com.

Your covering letter must be brief, explaining your motivations and professional interests.

Join Team

Examples of potential projects include:

- Probability of tailings dam failures and their consequences
- Balance between knowledge obsolescence and employee training
- Air quality levels and associated health costs
- Modern slavery occurrence across industry sector value chains
- Private Security Contractors: balancing profit and care in immigration detention
- Supply chain risk in the procurement of construction materials
- Levels of torture and foreign direct investment
 


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Route2Sustainability Ltd. 2016

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Registered office: Market House, 10 Market Walk, Saffron Walden, CB10 1JZ, United Kingdom