Impact classes of the superclass S1 - General public
SI 1.1 Collective Welfare
The class of collective welfare refers to the positive and negative impacts of infrastructure companies on the well-being of a given community, where well-being can be understood as a state of health, happiness and/or prosperity.
SI 1.1.1 Human rights:
As per the Universal Declaration of Human Rights (UN, 1948), human rights are rights inherent to all human beings, regardless of race, sex, nationality, ethnicity, language, religion, or any other status. Human rights include the right to life and liberty, freedom from slavery and torture, freedom of opinion and expression, the right to work and education, and many more. Everyone is entitled to these rights, without discrimination. Note that this sub-class does not consider labour rights together with human rights but rather looks at human rights under the superclass of "Employees". Resettlement programs associated with the construction of infrastructure are riddled with controversies of human rights infringement (Hay et al., 2019; Fratkin, 2014; Morvaridi et al., 2004).
SI 1.1.2 Public health and safety:
Public Health and Safety is generally defined as the science of the anticipation, recognition, evaluation and control of hazards that could impair the health and well-being of the public, taking into account the possible impact on the surrounding communities and the general environment. The operations of infrastructure assets can cause air pollution, water pollution, sound from wind turbines and data centres, and vibrations from rail infrastructure all of which can have negative health impacts on the public.
SI 1.1.3 Public disturbance:
A public disturbance is a state in which the comfort or peace of members of the public is disrupted, without having a negative health impact. Activities of infrastructure assets, such as noise from roads or light from airport runways, can be a source of nuisance to the public.
SI 1.1.4 Heritage and culture:
The heritage and culture of a community/society is the legacy of physical artefacts and intangible attributes of the community including but not limited to historic and cultural resources and archaeological remains (UNESCO, 2017). Wind farms are often under fire for negatively impacting the cultural heritage and landscape of the given site (Morvaridi et al., 2004; Silva et al., 2017).
SI 1.2 Human development:
The United Nations Development Programme defines human development as the process of enlarging people's choices, wherein the said choices allow them to lead a long and healthy life, to be educated, to enjoy a decent standard of living, as well as political freedom, other guaranteed human rights and various ingredients of self-respect (UNDP, 1997). Infrastructure assets by providing access to basic human rights and enabling socio-economic development are usually associated with positive human development.
SI 1.2.1 Standard of living:
Standard of living refers to the level of wealth, comfort, material goods, and necessities available to a certain socio-economic class or geographic area. The role of infrastructure in promoting socio-economic development and improving the standard of living of impacted communities is well-documented, from improving education outcomes, enabling the flow of goods and services to markets and protecting populations from natural hazards (Gunther et al., 2011; Barrett et al., 2019; Ismail et al., 2015; Garschagen et al., 2016; Donaldson et al., 2018; Banerjee et al., 2012; Duflo et al., 2015).
SI 1.2.2 Human Capital:
Human capital is the stock of habits, knowledge, and social and personality attributes (including creativity) embodied in the ability to perform labour so as to produce economic value (Goldin et al., 2016). Social infrastructure such as schools, colleges, universities and vocational institutes improve human capital.
SI 1.2.3 Healthy life:
A healthy life refers to a long life, free from diseases and acute and chronic health conditions. It stems from the environment and from practices of population groups that are consistent with supporting, improving, maintaining and/or enhancing health. Infrastructure assets by improving the efficiency of their activities, using better technology, etc. can reduce the pollution associated with their activities. In addition to this infrastructure such as roads provide access to hospitals and clinics (social infrastructure) that are vital in keeping a community healthy.
SI 1.3 Assets Values:
Asset value can be understood as the market value of all assets that can be impacted by infrastructure. Increased asset values translate to wealthier communities.
SI 1.3.1 Related land value:
Land value is the market value of a piece of property including both the market value of the land itself as well as any improvements that have been made to it. Land market values are highly sensitive to infrastructure investment and urban economic growth. Public works projects such as road construction, water supply, and mass transit investment produce benefits that are immediately capitalized into surrounding land values (Peterson, 2008). Conversely, damage to land (such as pollution) can negatively impact land values.
SI 1.3.2 Related real estate value:
Property value refers to the market value of a piece of real estate based on the price that a buyer and seller agree upon. Just as with land market value, the availability of infrastructure assets and economic growth leads to a rise in real estate market value given the increased levels of accessibility and connectivity associated with the piece of real estate. For example, the construction of transport infrastructure typically leads to a price increase in surrounding neighbourhoods (Liang et al., 2021).
SI 1.3.3 Related business value:
Business value is defined as the entire market value of the business, that is, the total sum of all tangible and intangible elements. Examples of tangible elements include monetary assets, stockholder equity, fixtures, and utility. Examples of intangible elements include brand recognition, goodwill, public benefit, and trademarks. This sub-class refers to the value of a business that excludes the market value of any real estate associated with the company. Infrastructure services enable business processes, thereby having a positive impact on related businesses' market value.
SI 1.3.4 Related infrastructure asset value:
The market value of any given infrastructure asset is dependent (positively and negatively) on multiple factors, one of which is the availability of infrastructure networks connected physically or digitally. This network effect increases the market value or utility a user derives from a good or service (infrastructure in this case) and leads to an increase in related infrastructure market value. For example, roads enable easy access to multiple other types of infrastructure, such as airports, train stations, hospitals, and schools.
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