Route2 offers businesses expert advice, analysis and tools to provide unique insights about historical and future performance.
Our Value2SocietyTM Services include:
- Assessment and evaluation of the external costs and benefits of direct business operations.
- Supply chain impact assessment and evaluation.
- Sector and Peer benchmarking to provide context.
- Appraisal of future investment options considering all capital stocks and flows.
- Societal Value Statements.
- Probabilistic models of social, human and environmental risks and opportunities.
We plan and deliver our services in a way that is compatible with existing business systems. As part of our services we create interactive dashboards with no software licenses required.
Value2SocietyTM for Businesses
1. Value2SocietyTM Performance Management Dashboard:
This dashboard allows the assessment and evaluation of the Total Capital impacts resulting from routine operations and provides a richer view on historical performance that will surface risks to and opportunities for future operations.
This dashboard has the following attributes:
(i) A dynamic impact waterfall chart that distils the External Value and Total Contribution of annual operations. Total Contribution is a new and comparable metric business can use to meet a growing demand to demonstrate the societal value of their operations
(ii) An impact valuation table that details the economic costs and economic benefits of all negative and positive impacts according to stakeholder (that’s experiencing the cost and or benefit)
(iii) An impact bubble matrix that illuminates relative impact magnitudes and positions these magnitudes according to their negative, positive, internal and external value (see bubble matrix)
(iv) An impact map that depicts where impacts manifest on the global stage
(v) Total Capital Accounts that build on the familiar balance sheet and income statements of financial accounts to reflect the business dependency on natural, human, intellectual, social capital in addition to the more familiar manufactured and financial capitals. These accounts also distil new Value2SocietyTM metrics such as Societal Equity and Societal Profit (and further offer a view on internalisation horizons via regulatory, physical and reputational events)
(vi) Sectoral benchmarks that show how a business compares to peers at individual and aggregate impact levels. All of these attributes are dynamic if supported by time series data and available at a business’ divisional and or segmental level.
2. Value2SocietyTM Investment Appraisal Dashboard:
Our sustainability investment appraisals cater for the broader assessment and evaluation of proposed capital and operating expenditures. Often interventions to maintain or enhance the full complement of capital stocks fall short of financial hurdles. For example, interventions to improve environmental quality or employee well-being might be shelved if associated financial benefits are not clear. However, with the introduction of the wider economic benefits (to society), the complexion and economic viability of the proposed intervention changes. The Value2SocietyTM Investment Appraisal Dashboard provides a consistent method to understand the financial consequences and societal impact of any proposed intervention.
Value2SocietyTM for Investors
Value2SocietyTM (V2S) provides investors with four different ways to assess business performance, yielding enhanced views on risk and opportunity.
(1) V2S Indices – the reweighting of an index constituent according to a Value2SocietyTM metric (e.g. Carbon intensity, Total Contribution intensity, Societal Profit intensity etc.) and then the reconstruction of the index. These reconstructed V2S indices have been proven to outperform their counterpart benchmark indices.
(2) V2S Portfolios – the routine quantification of the Total Capital impact of existing portfolios to inform re-construction that adheres to maximisation of profit / minimisation of societal cost objectives.
(3) V2S Credit Ratings – the assessment and evaluation of augmented credit risk that accounts for Total Capital impacts and their ‘internalisation’ probabilities (via regulatory, physical and reputational events)
(4) V2S Investor Metric Suite – the provision of enriched conventional investor metrics such as DCF, EP and WACC for any entity of interest.
The Future of Value2SocietyTM
Route2’s services are dependent on the surfacing and structuring of disparate data sources and information sets. As we continually strive to offer our clients more comprehensive toolsets, we are currently investing in the Route2App and Route2Robot – two technologies that aim to surface and attribute new and unique impact data.