| Term |
Synonyms |
Acronym |
Definition |
| Absolute V2S |
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The total V2S created by a business over a defined operating period, typically one year |
| Benefit |
|
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The increase in human Well Being |
| Capital Complement |
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The non-substitutable interaction of Capital Stocks & Flows |
| Capital Erosion |
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The deterioration of Capital Stock condition |
| Capital Investment Flow |
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The reinforcement of a Capital Stock to deliver services |
| Capital Stock |
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The store of services that perform economic functions and therefore have economic benefits |
| Capital Use Flow |
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The delivery of services that perform economic functions and therefore have economic benefits |
| Client Data Inputs |
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The data provided by a Route2 client used to quantify and value Impacts and V2S |
| Cost |
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The reduction in human Well Being |
| Dependencies |
|
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The indirect use of the 6 Capital Stocks by business |
| Direct Data Input System |
|
DDIS |
The platform to collect Client Data Inputs |
| Direct Impact |
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The Impacts resulting from a business’ direct operations |
| Disability Adjusted Life Year |
|
DALY |
The measure of overall disease burden, expressed as the number of years lost due to ill-health, disability, or early death |
| Disability Weight |
|
|
The weighting factor that reflects the relative severity of a health state, with a value anchored from 0 to 1, with 0 implying a state that is equivalent to full health and 1 to death |
| Domain Specific Language |
|
DSL |
The programming language used to encode V2S Indicators |
| Double Materiality |
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The intersection of Impact & Financial Materiality i.e. significance of a business Input or Output to both financial performance and human Well Being |
| Double Materiality Matrix |
|
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The graphical representation of Double Materiality |
| Downstream Impact |
Product Use Impact, Product Disposal Impact |
|
The customer Impacts that stem from a business’ sales |
| Economic Valuation |
|
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The process of assigning monetary values to Non-Market goods and services |
| Enabled Impact |
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The attribution of business Impacts to the facilitating sources of finance (e.g. bank loans or equity investment) |
| Energy Use |
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The energy inputs of production processes, both electrical and fuel based |
| External Benefits |
Externalities |
|
The Financial & Non-financial Benefits accrued by a business’ external Stakeholders |
| External Costs |
Externalities |
|
The Financial & Non-financial Costs incurred by a business’ external Stakeholders |
| External Impact |
|
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The financial and non financial changes in human Well Being experienced by a business’ external Stakeholders |
| Financial Benefit |
|
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The increase in human Well Being caused by financial incomes |
| Financial Capital Stock |
|
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The store of monetary value |
| Financial Cost |
|
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The reduction in human Well Being caused by financial outlays |
| Financial Materiality |
|
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The significance of a business Input or Output to financial performance |
| Geo-Sector |
|
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The industry sectors within a particular municipality, country and or region |
| Gross Value Added |
|
GVA |
The conventional measure of a business’ economic contribution |
| Human Capital Stock |
|
|
The store of labour services that have perform economic functions and therefore have economic Benefits |
| Impact |
|
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The financial and non financial changes in human Well Being |
| Impact Factor |
|
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The translation of Outcomes to Impacts |
| Impact Materiality |
|
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The relative significance of impacts on human Well Being (e.g. is water pollution more impactful on human Well Being that air pollution) |
| Indirect Impact |
|
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The business’ Upstream, Downstream, Induced & Enabled Impacts |
| Induced Impact |
|
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The employee Impacts that stem from the spend and or investment of incomes |
| Input |
|
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The ingredients necessary for business activities |
| Input-Output Model |
|
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The table of inter and intra country intermediate (industry sector) and final (e.g. households) consumption financial flows |
| Input-Output Model Extensions |
Extensions |
|
The table of inter and intra country intermediate (industry sector) and final (e.g. households) consumption non-financial flows |
| Intellectual Capital Stock |
|
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The store of knowhow services that have perform economic functions and therefore have economic Benefits |
| Intermediate Costs |
|
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The inter-industry inputs that feature in an Input-Output Model, in essence business to business inputs |
| Internal Costs / Benefits |
|
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The financial Costs and revenues incurred and accrued by the business |
| Internalisation |
|
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The process by which External Costs and Benefits become Internal Costs / Benefits |
| Manufactured Capital Stock |
|
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The store of shelter and work services that have perform economic functions and therefore have economic Benefits |
| Material Use |
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The material inputs of production processes i.e. the production recipe |
| Modelled Data Inputs |
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The data generated from Route2’s internal models and used to estimate client performance (in the absence of Client Data Inputs) |
| Natural Capital Stock |
|
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The store of ecosystem services that perform economic functions and therefore have economic Benefits |
| Net Externalities |
|
Net-X |
The sum of External Costs and External Benefits |
| Non-Financial Benefit |
|
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The increase in human Well Being caused by a positive experience |
| Non-Financial Cost |
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The reduction in human Well Being caused by a negative experience |
| Non-Market |
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The goods and services that deliver economic Benefits but not traded, nor mediated, by markets and therefore do not have market prices |
| Normalised V2S |
|
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The Absolute V2S divided by sales, profit, employees or area permitting comparisons across businesses and physical assets |
| Outcome |
|
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The change in condition (i.e. health) of a Capital Stock |
| Outcome Factor |
|
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The translation of Outputs to Outcomes |
| Output |
|
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The consequences of business activities, both product and non-products |
| Output Factor |
|
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The translation of Inputs to Outputs |
| Profit |
Private Return, Private Profit, Net Profit |
|
The value surplus of business activities i.e. revenues less all Costs |
| Research Inputs |
|
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The third party data used within V2S Pathway as Output, Outcome & Impact Factors |
| Segmentation |
|
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The DSL encoding components of a V2S Indicator Pathway |
| Social Capital Stock |
|
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The store of stakeholder trust that has economic functions and therefore have economic Benefits |
| Social Value |
|
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The positive external Impacts / External Benefits of business activities |
| Societal Costs / Benefits |
|
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The sum of Internal and External Costs / Benefits |
| Spatial Adjustment |
|
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The adjusting of impact values to reflect local Capital Stock conditions |
| Stakeholder Matrix |
|
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The distribution of an Impact across the Stakeholders who experience it |
| Stakeholders |
|
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The various people and organisations that have an interest in a business, classified as: company / owners; employees; government agencies; industry sector peers; customers; and local communities / wider society |
| Sustainability |
|
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The capacity for continuance, indefinitely. |
| Time Factor |
|
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The representation of Impact manifestation over time |
| Total Capital Stock |
6 Capital Stock |
|
The sum of Natural, Human, Intellectual, Social, Manufactured and Financial Capital Stocks |
| Upstream Impact |
|
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The supplier Impacts that stem from a business’ procurement |
| V2S Balance Sheet |
|
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The augmentation of traditional financial balance sheet statement with the 6 Capital Stocks, providing a more comprehensive understanding of assets, liabilities and equity |
| V2S Baseline |
|
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The business’ V2S benchmark that future V2S performance can be compared to |
| V2S Cash Flow Statement |
|
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The augmentation of traditional financial cash flow statement with 6 Capital Double Materiality perspective, providing a more comprehensive understanding of future available cash |
| V2S Credit Rating |
|
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The augmentation of traditional credit rating methodologies with 6 Capital Stocks and Flows, providing a more comprehensive understanding of likely credit default |
| V2S Indicator |
Indicators |
|
The measurable aspects of a business’ Capital Use and Investments Flows |
| V2S Indicator Pathway |
|
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The full process by which a V2S indicator is transformed into an Impact represented in monetary value terms |
| V2S Position Statement |
|
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The standard V2S reporting form, containing all headline metrics, priority V2S indicators, initial Double Materiality matrix and V2S Indicator methods |
| V2S Profit & Loss Statement |
|
|
The augmentation of traditional financial profit & loss statement with 6 Capital Flows, providing a more comprehensive understanding of costs, benefits and profit |
| V2S Ratios |
V2S Metrics |
|
The various relationships with financial performance metrics e.g. V2S to Profit, V2S to Sales etc. |
| V2S Schema |
|
|
The representation of how business interacts with the 6 Capital Stocks, in database and model forms |
| V2S Sustainability Accounting Framework |
|
|
The process and structure to quantifying and valuing a business’ use and investment in the 6 Capital Stocks, and subsequent performance aggregation to generate the V2S metric |
| Value At Stake |
|
V@S |
The proportion of External Costs / Benefits likely to become Internal Cost / Benefits |
| Value Chain |
|
|
The full extent of a business’ influence, comprising Direct Operations, Upstream suppliers and Downstream customers |
| Value of Statistical Life |
|
VSL |
The value estimate society places on reducing the risk of dying |
| Value of Statistical Life Year |
|
VSLY |
The value estimate society places on a year of life |
| Value2Society |
Societal Contribution, Societal Profit, Societal Returns |
V2S |
The societal returns of business operations, also referred to as the societal contribution of business operations |
| Value2Society Plus |
|
V2S+ |
The potential societal returns of business operations if Internal Impacts are addressed |
| Waste Flows |
|
|
The outputs from business activities that generate zero Benefits |
| Well Being |
|
|
The overall state of health and happiness of a person, and how they feel about their life |
| Wellbeing Adjusted Life Year |
|
WELLBY |
The measure of a person’s change in life satisfaction over a year |
| Wider Society |
|
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The members of local communities and wider populations that as a group are classed a business Stakeholder |