Evaluating value creation in quantitative terms in different areas is not easy. There are many quantification models, but most of them are based only on elements that have a direct effect - like direct recruitment, direct purchase from local suppliers and taxes paid to the local governments - never arriving, therefore, at calculating the global impact.
At Saipem, we have developed two different calculation models of Local Content.
The model titled “Saipem Externalities Local Content Evaluation” (SELCE), developed in 2009, is used to quantify the value generated by our operations in a specific area/country or with respect to a certain project in terms of direct, indirect and induced impacts obtained in the economic, employment and in the human capital development.
The REVALUE measurement model serves to evaluate the overall impact of the Group’s activities worldwide, and it is structured according to an approach focused on “continuous improvement” envisaging the possibility of integrating and amending the model and even the quantification of the indicators. Inspired on existing impact evaluation techniques, REVALUE calculates the value created starting from the relations between inputs of the business activities, the corresponding outputs and their long-term results. Thanks to this approach, the model is also able to include the prospects and impacts on stakeholders. The final result of the model is the financial value of all the impacts generated by the business.
The REVALUE Model has been verified by the Ca’ Foscari University Foundation.