Glossary of Terms

Term Synonyms Acronym Definition
Absolute V2S The total V2S created by a business over a defined operating period, typically one year
Benefit The increase in human Well Being 
Capital Complement The non-substitutable interaction of Capital Stocks & Flows
Capital Erosion The deterioration of Capital Stock condition
Capital Investment Flow The reinforcement of a Capital Stock to deliver services
Capital Stock The store of services that perform economic functions and therefore have economic benefits
Capital Use Flow The delivery of services that perform economic functions and therefore have economic benefits
Client Data Inputs The data provided by a Route2 client used to quantify and value Impacts and V2S
Cost The reduction in human Well Being 
Dependencies The indirect use of the 6 Capital Stocks by business
Direct Data Input System DDIS The platform to collect Client Data Inputs 
Direct Impact 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 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 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 The process of assigning monetary values to Non-Market goods and services
Enabled Impact The attribution of business Impacts to the facilitating sources of finance (e.g. bank loans or equity investment)
Energy Use 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 The financial and non financial changes in human Well Being experienced by a business’ external Stakeholders
Financial Benefit The increase in human Well Being caused by financial incomes
Financial Capital Stock The store of monetary value
Financial Cost The reduction in human Well Being caused by financial outlays
Financial Materiality The significance of a business Input or Output to financial performance
Geo-Sector 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 The financial and non financial changes in human Well Being
Impact Factor The translation of Outcomes to Impacts
Impact Materiality 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 The business’ Upstream, Downstream, Induced & Enabled Impacts
Induced Impact The employee Impacts that stem from the spend and or investment of incomes
Input The ingredients necessary for business activities
Input-Output Model 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 The store of knowhow services that have perform economic functions and therefore have economic Benefits
Intermediate Costs The inter-industry inputs that feature in an Input-Output Model, in essence business to business inputs
Internal Costs / Benefits The financial Costs and revenues incurred and accrued by the business
Internalisation The process by which External Costs and Benefits become Internal Costs / Benefits
Manufactured Capital Stock The store of shelter and work services that have perform economic functions and therefore have economic Benefits
Material Use The material inputs of production processes i.e. the production recipe
Modelled Data Inputs The data generated from Route2’s internal models and used to estimate client performance (in the absence of Client Data Inputs)
Natural Capital Stock 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 The increase in human Well Being caused by a positive experience
Non-Financial Cost The reduction in human Well Being caused by a negative experience
Non-Market The goods and services that deliver economic Benefits but not traded, nor mediated, by markets and therefore do not have market prices
Normalised V2S The Absolute V2S divided by sales, profit, employees or area permitting comparisons across businesses and physical assets
Outcome The change in condition (i.e. health) of a Capital Stock
Outcome Factor The translation of Outputs to Outcomes
Output The consequences of business activities, both product and non-products
Output Factor 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 The third party data used within V2S Pathway as Output, Outcome & Impact Factors
Segmentation The DSL encoding components of a V2S Indicator Pathway
Social Capital Stock The store of stakeholder trust that has economic functions and therefore have economic Benefits
Social Value The positive external ImpactsExternal Benefits of business activities
Societal Costs / Benefits The sum of Internal and External Costs / Benefits
Spatial Adjustment The adjusting of impact values to reflect local Capital Stock conditions
Stakeholder Matrix The distribution of an Impact across the Stakeholders who experience it
Stakeholders 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 The capacity for continuance, indefinitely.
Time Factor 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 The supplier Impacts that stem from a business’ procurement
V2S Balance Sheet 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 The business’ V2S benchmark that future V2S performance can be compared to
V2S Cash Flow Statement 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 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 The full process by which a V2S indicator is transformed into an Impact represented in monetary value terms
V2S Position Statement 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 The members of local communities and wider populations that as a group are classed a business Stakeholder