Sustainable Return on Investment
The Sustainable Return on Investment (SROI) process assesses the benefits of a transportation infrastructure project and a green business case as compared to a no build scenario. The SROI model includes four phases, which are very similar to the four phases of a Health Impact Assessment (HIA):
I. Development of a Structured and Logical Plan - Assessment of “how” all the variables and assumptions interact to determine the impact of a project.
II. Quantifying Input Data and Assumptions - Statistical probability analysis of project elements.
III. Risk Assessment Debriefing with Project Stakeholders
IV. Model Simulation and Forecasting Results - Data modeling of various project scenarios and statistical probability distributions.
Why use the the SROI model? Isn't it like any other performance metric?
Actually, no. The SROI model takes a systems approach by placing an emphasis on transparency, accountability, and the efficient use of resources required to maximize the “triple bottom-line” of sustainability, which includes economic, environmental AND social value. This innovative tool builds on best practices in Cost-Benefit Analysis complemented by state-of-the-art Risk Analysis and stakeholder engagement techniques. In essence, the process is a feasibility study that identifies the significant impacts of a project and values these impacts in monetary terms, while accounting for non-monetary societal benefits and external costs. Let's be realistic, isn't this really what drives any project? Having this information provides justification and quantitative data needed to make informed decisions not only for community leaders, but also for the public constituency.
As a side note, the SROI model also represents an ecological approach that provides a “general framework for understanding the nature of people's transactions with their physical and socio-cultural surroundings.” Therefore, people are the determining factor influenced both by the physical (e.g., geography, architecture, and technology) and social environment (e.g., culture, economics, and politics). Human utility (health/well-being) is multifaceted with an interplay among all of the elements and factors of the SROI model. Interestingly, the SROI concept is the basis of not only public health planning, but program development within the built environment.
I. Development of a Structured and Logical Plan - Assessment of “how” all the variables and assumptions interact to determine the impact of a project.
II. Quantifying Input Data and Assumptions - Statistical probability analysis of project elements.
III. Risk Assessment Debriefing with Project Stakeholders
IV. Model Simulation and Forecasting Results - Data modeling of various project scenarios and statistical probability distributions.
Why use the the SROI model? Isn't it like any other performance metric?
Actually, no. The SROI model takes a systems approach by placing an emphasis on transparency, accountability, and the efficient use of resources required to maximize the “triple bottom-line” of sustainability, which includes economic, environmental AND social value. This innovative tool builds on best practices in Cost-Benefit Analysis complemented by state-of-the-art Risk Analysis and stakeholder engagement techniques. In essence, the process is a feasibility study that identifies the significant impacts of a project and values these impacts in monetary terms, while accounting for non-monetary societal benefits and external costs. Let's be realistic, isn't this really what drives any project? Having this information provides justification and quantitative data needed to make informed decisions not only for community leaders, but also for the public constituency.
As a side note, the SROI model also represents an ecological approach that provides a “general framework for understanding the nature of people's transactions with their physical and socio-cultural surroundings.” Therefore, people are the determining factor influenced both by the physical (e.g., geography, architecture, and technology) and social environment (e.g., culture, economics, and politics). Human utility (health/well-being) is multifaceted with an interplay among all of the elements and factors of the SROI model. Interestingly, the SROI concept is the basis of not only public health planning, but program development within the built environment.
Business Case Evaluator
The Business Case Evaluator (BCE) was developed by Impact Infrastructure in collaboration with the Institute for Sustainable Infrastructure, Committee on Economics. Baseline data and diverse collection methods were adopted from peer-reviewed publications available in scientific literature and used to quantify and validate the cost and benefit projections in the model. Using Monte Carlo simulation, a computational algorithm of repeated random sampling to obtain numerical results, BCE has the capabilities to account for the uncertainty of real-world data and diverse data collection methods. This built-in safe guard provides a reliable probability distribution of multiple project outcomes, as opposed to a single expected value that is often accompanied by a high degree of uncertainty. Click HERE to download the full BCE reference document, sample model and blank model in Excel format.
AutoCase
AutoCASE is a real-time web based performance metric that considers the costs, benefits, and sustainable features of an infrastructure project. This risk-adjusted tool is run early and at predetermined intervals throughout the feasibility, planning, design, and construction phases of a project. AutoCase can be used with minimal information, drawing on standard regionally-specific system inputs and best practice data to facilitate:
Informed Decision-Making – Cost-benefit and Monte Carlo risk analyses are fully integrated into the early planning and design phases of a project to determine an accurate valuation with simulated uncertainty.
Transparency and Full Disclosure – Using data and methods validated by peer-reviewed published research in conjunction with industry standards and government mandated data, adds a degree of credibility, confidence, and comparability available to all stakeholders.
Stakeholder Engagement – Data and information translated into visual summaries can traverse communication and cultural barriers to improve the understanding of design changes and project impacts to a community.
Click HERE for additional information on AutoCase and to sign up for a FREE 14 day trial!
Informed Decision-Making – Cost-benefit and Monte Carlo risk analyses are fully integrated into the early planning and design phases of a project to determine an accurate valuation with simulated uncertainty.
Transparency and Full Disclosure – Using data and methods validated by peer-reviewed published research in conjunction with industry standards and government mandated data, adds a degree of credibility, confidence, and comparability available to all stakeholders.
Stakeholder Engagement – Data and information translated into visual summaries can traverse communication and cultural barriers to improve the understanding of design changes and project impacts to a community.
Click HERE for additional information on AutoCase and to sign up for a FREE 14 day trial!
Below is a PowerPoint presentation available for review and download. If you have any question regarding economic modeling or any of the tools described on this page, please contact Stephane Larocque at steph.larocque@impactinfrastructure.com or visit the Impact Infrastructure website at http://www.impactinfrastructure.com/
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Stephane Larocque
Senior Vice President
Consulting Practice Leader
Impact Infrastructure, Inc.
Toronto, Ontario - Canada
Stephane is an internationally recognized professional in the field of triple bottom-line economic analysis, which reflects the environmental, social and financial impacts of infrastructure investment. Stéphane was one of the original pioneers in the development of the Sustainable Return on Investment (SROI) Framework. By joining Impact Infrastructure CEO, John Williams and Chief Economist, John Parker, Stephane completes the process of reuniting the original team that pioneered the development of SROI and introduced it into the public domain in 2009 through the Clinton Global Initiative.
Over his nearly 20 year career, Stéphane established himself as a thought leader speaking at conferences for groups such as; American Public Works Association, US Green Building Council, Harvard Graduate School of Design, Transportation Research Board, Canadian Society of Value Analysis, American Planning Association and International Conference on Transport & Health as well as teaching Masters level workshops at Columbia University in New York.
Senior Vice President
Consulting Practice Leader
Impact Infrastructure, Inc.
Toronto, Ontario - Canada
Stephane is an internationally recognized professional in the field of triple bottom-line economic analysis, which reflects the environmental, social and financial impacts of infrastructure investment. Stéphane was one of the original pioneers in the development of the Sustainable Return on Investment (SROI) Framework. By joining Impact Infrastructure CEO, John Williams and Chief Economist, John Parker, Stephane completes the process of reuniting the original team that pioneered the development of SROI and introduced it into the public domain in 2009 through the Clinton Global Initiative.
Over his nearly 20 year career, Stéphane established himself as a thought leader speaking at conferences for groups such as; American Public Works Association, US Green Building Council, Harvard Graduate School of Design, Transportation Research Board, Canadian Society of Value Analysis, American Planning Association and International Conference on Transport & Health as well as teaching Masters level workshops at Columbia University in New York.
