We unlock the otherwise hidden financial value of sustainability pursuits.
Through the provision of analytical tools and enriched information, Route2 strives to redirect business operations and investors towards a more sustainable footing by demonstrating that the optimisation of financial, environmental and social value delivers and maintains long term and resilient financial returns.
Our suite of Value2SocietyTM services and tools – such as, the Performance Management Dashboard – allow organisations, who understand the increasing role of their societal license to operate, to quantify and demonstrate their total contribution to societal well-being.
Our distinct capital markets offerings (e.g. Value2SocietyTM Credit Ratings, Value2SocietyTM Indices) serve the investor community and aid more efficient allocation of financial capital to those activities which generate both financial and wider societal returns.
Route2 translates societal impacts into economic values – we advocate and undertake this process of economic valuation for four reasons.
- Firstly, it allows impact comparison. Should a business prioritise reducing their emissions of greenhouse gases over becoming more efficient in their water consumption? Establishing the wider external costs of both impacts can inform priorities.
- Secondly, it allows impact aggregation. A series of positive and negative impacts combined to establish a net position (e.g. Societal Profit or Total Contribution) offers a useful yardstick for both internal management and external communications purposes.
- Thirdly, it enables the integration of societal impacts into the conventional decision making processes and frameworks. Thus, a profit and loss statement can be augmented to produce a societal profit and loss statement and investment appraisals can capture wider societal costs and benefits associated with capital expenditure options.
- Finally the technique of economic valuation offers the canvas upon which scenario analysis can be undertaken. A business current (and familiar) cost and revenue profiles can be stretched and tested to reflect various (unfamiliar) scenarios of a future operating landscape e.g. one with tighter regulations on environmental quality.
Route2 works with interested organisations in a number of ways:
- Measuring the wider societal and economic impacts of business activities, throughout the value chain
- Widening the understanding and estimation of operational risks and opportunities, for example, internalisation pathways: when do external (public) costs or benefits to society, become internal (private) costs or benefits and influence an organisation’s financial performance?
- Distillation of optimal capital investment or expenditure programmes
- Driving the communications of the wider performance of business activities to all stakeholders
- Enabling comparisons against benchmarks and peers concerning wider business performance
- Fulfilment of third party reporting requirements or providing inputs to sustainability rating criterion
- Attraction of capital and reduction in the cost of capital
- A genuine platform for building organisational resilience, in other words, the long term creation of wealth.