FAQs

Valuation

An approach, process or methodology that assesses relative importance of outcomes to people affected. Valuations can be monetary or non-monetary.

Source: SVI Glossary 2.0

Valuation is the anthropocentric process of estimating the relative importance, worth, or usefulness of natural, social, human, and/or produced capitals directly or indirectly experienced by people (or by a business) in a particular context. Valuation may involve using qualitative, quantitative, or monetary approaches or a combination of these.

  • Qualitative valuation describes the relative importance of the impacts and/or dependencies on natural, social, human, or produced capital and may rank them into categories such as high, medium, or low.
  • Quantitative valuation uses non-monetary units such as numbers (e.g., in a composite index), areas, mass, or volume to assess the relative importance of impacts and/or dependencies on natural, social, human, or produced capital.
  • Monetary valuation uses money (e.g. $) as the common unit to assess value.

Source: Value Commission