Our work with Yorkshire Water involves helping the sustainability, resource economics, human resources and central finance teams quantify, evaluate and generally enrich the organisational understanding of operational ‘total impact’, throughout the value chain – direct operations, supply chain and delivery of services. By appreciating this broader impact we believe we assist Yorkshire Water strengthen and future proof the business. Our support has involved a number of discrete but inter-related assessment and evaluation projects. From understanding the perceived value of ecosystem services (e.g. carbon sequestration) flowing from significant land holdings to the current state of human & intellectual capital stocks. In addition, through our modelling capability, we have assisted with their forecast efforts in relation to regional industrial water demands over the next 40 years. A portion of our work is available at:
Our work with Heathrow concerns the systemic integration of sustainability considerations into the investment appraisal process. Specifically, Route2 has built an investment appraisal model that estimates and integrates societal benefits and costs into the investment decision process. The model is designed to be used by any member of Heathrow staff under the stewardship of Heathrow’s Finance and Sustainability teams. It quantifies the likely environmental, social and human impacts, both positive and negative, resulting from proposed capital (e.g. health centre construction) and operating expenditure programmes (e.g. staff training). The model provides an enriched view on the Return on Investment of proposed investments. The model is currently being extended to better represent where proportions of this broader societal value (cost and or benefit) land, in terms of Heathrow’s stakeholders – for example Heathrow Employees, Passengers, Airlines and Wider Society.
Route2 has worked with SGS for more than five years. Our engagement commenced with the design, build and systems integration of the ‘Green Book’, which in essence is a set of sustainability management accounts that capture and assign economic values to SGS’s sustainability performance across all dimensions (environmental, social, human etc.), operating divisions and territories. From this seminal and foundational piece of work we have constructed their supply chain risk model (to inform their CDP and DJSI reporting requirements) and supported their quantitative understanding of the net societal benefits of issue based services such as precision agriculture, energy audits and directional drilling service. SGS’s Value To Society now underpins their sustainability strategy, sustainability reporting and indeed their Annual Reporting and Integrated Reporting <IR> efforts.
Route2 has worked with The Crown Estate for more than five years and been integral to the design, implementation and maintenance of their award winning Total Contribution initiative – a quantitative framework to distil the broader societal value of The Crown Estate’s direct and indirect (upstream supply chain and downstream enabled) activities beyond the financial returns delivered to HM Treasury. The organisation wide framework has been supported by its application at the project level such as spatially explicit ecosystem service assessment and evaluation of the coastal and rural portfolios, Total Contribution of the Windsor Estate and impact comparison between Regent Street developments. Efforts are now being made to integrate this broader view of value creation into day-to-day decision making and inform the future development strategy.
Route2 is working with the Joint Nature Conservation Committee (JNCC) to develop sustainability indicator(s) that will assess the global environmental impacts (or increased pressures) of UK commodity consumption on biodiversity. The drive to identify these indicators stems, among others, from the UK national supply chain commitments within DEFRA’s ‘A Green Future: Our 25 Year Plan to Improve the Environment’ released last year.
Route2 has conducted a literature view covering 1) the availability of input-output models to capture trade in commodities 2) advances in Earth Observation to identify production locations and associated interactions with the natural environment and 3) modelling pressure, linking this to ecosystem services and ultimately biodiversity. The literature review spans some 159 papers, 9 models, and 13 tools.
The indicator methodology – ideally applicable to any country, commodity and environmental pressure – will be tested in pilot studies evaluating the effect on two specific commodities from among (e.g. timber, beef & leather, rubber, palm oil, soy, rice, cocoa, pulp & paper) on two example environmental pressures (deforestation and water stress) within selected trading partner countries; ultimately the results will provide insights about changes in biodiversity emanating from the commodity demands and use.
The project, conducted in partnership with Carbon Smart, is being shared with other government departments in a series of workshops to solicit feedback on the proposed approach.
A Performance Management Dashboard
A Supply Chain Impact Assessment Model Demonstration