The Sustainable Asset Valuation (SAVi)
IISD’s Sustainable Asset Valuation (SAVi) demonstrates why sustainable infrastructure can deliver better value-for-money for citizens and investors. You can find out more at iisd.org/savi.
SAVi is an assessment methodology that helps governments and investors steer capital towards sustainable infrastructure. SAVi's features are:
Cost of Risk
SAVi places a financial value on economic, social and environmental risks. It then shows how these risks affect the financial performance of infrastructure projects and portfolios, across their life cycles. These types of risks are often overlooked in traditional financial valuations.
Cost of Externalities
SAVi identifies and values in financial terms the externalities that arise as a direct consequence of infrastructure projects. This analysis enables policy-makers and investors to appreciate the second-order gains and trade-offs of infrastructure investments, which may otherwise not be apparent under a traditional valuation.
Costs of Emerging Risks
SAVi shows how externalities today can transform into direct project risks tomorrow. Such valuations help stakeholders make decisions in favour of sustainable infrastructure.
SAVi is customized to individual investment projects and portfolios. SAVi can therefore value the cost of risks along with a range of wider externalities that are directly material to each asset.
How can SAVi help?
SAVi helps policy-makers and investors understand the costs of economic, social and environmental risks and how these risks affect the financial performance of infrastructure projects across their life cycles.
SAVi also values the costs and benefits of externalities. Policy-makers and investors can calculate the wider societal and economic benefits as well as trade-offs, such as employment, income and contributions to GDP. More importantly, they will be able to assess how externalities today can turn into direct project risks in the future.
SAVi is therefore a valuable tool for planning and investing in sustainable infrastructure. Policy-makers and investors are challenged to understand several elements related to sustainable infrastructure, enabling them to incorporate these considerations into their decision making:
- What makes an asset sustainable?
- How can different degrees of sustainability be defined and measured in a scientifically accurate manner?
- How does sustainable infrastructure make a better contribution towards achieving objectives such as enhanced GDP, employment, innovation, and productivity, as well as the UN Sustainable Development Goals overall? Additionally, how can these contributions be measured?
- Why can sustainable infrastructure assets offer better financial returns and better value for money than their business-as-usual counterparts?
- How much additional capital is required to plan and build sustainable infrastructure projects and assets that are more resilient to changing climates?
SAVi provides a robust, interdisciplinary and quantitative response to all these questions. Policy makers and investors are seeking assessment methodologies that are science-based and intersect with financial valuation. We built SAVi to provide the solution.
SAVi in practice
SAVi is being used by policy and investors around the world. We are currently working on assessments in:
- The Netherlands on off-shore wind assets, advising Rijkswaterstaat (Directorate-General for Public Works and Water Management), Ministry of Infrastructure and Water Management;
- Senegal on onshore wind and bus rapid transport infrastructure, advising the Bureau Opérationnel et de Suivi (Operational Bureau) of Le Plan Sénégal Emergent (Plan for an Emerging Senegal);
- Morocco on l’autoroute de contournement de Rabat (Rabat bypass motorway), advising Autoroutes du Maroc (Autoroutes of Morocco) and the International Road Federation;
- India on the cleaning and conservation of Lake Dal, Srinagar, State of Jammu and Kashmir;
- Canada on valuing the infrastructure services of Pelly’s Lake and Stephenfield Reservoir in Manitoba.
- Germany on onshore wind portfolios, working with B Capital Partners;
- Ghana on the upgrade of the public fleet of buses in Accra, advising the Ministry of Transport and the Green Climate Fund.
In the pipeline for SAVi are assessments on health infrastructure in India, nature-based infrastructure in Sri Lanka, solar technologies in Kenya, hydropower investments in Albania and other opportunities in Morocco and Senegal.
Building the Investment Case for Nature-Based Infrastructure
Nature-based infrastructure help increase societies' resilience to climate change and the insurance industry can play a key role.
Sustainability Assessment of an Onshore Wind Portfolio in Germany
The assessment integrates environmental, social, and economic costs and benefits into an asset valuation to improve the transparency of the wind asset's impacts on the environment and important stakeholders. It also evaluates the asset's financial resilience to climate change risks.
New Initiative Supports Nature-Based Infrastructure for Climate Adaptation
A USD 2 million grant will fund a new venture in partnership with GEF, the MAVA Foundation, IISD, and UNIDO.
Sustainable Asset Valuation of the Kalivaç and Poçem Hydropower Projects
The SAVi results suggest that the hydropower assets cannot be considered a preferable solution to generate electricity for the Albanian people.
Sustainable Asset Valuation (SAVi) of Senegal’s Saloum Delta
The assessment provides an economic valuation of the contribution of the Saloum Delta to local livelihoods and regional development.
An Application of the Sustainable Asset Valuation (SAVi) Methodology: Assessing the economic value of restoring the wetlands of S'Ena Arrubia and Corru S'Ittiri-Marceddì-San Giovanni in the Gulf of Oristano in Sardinia, Italy
This assessment uses the Sustainable Asset Valuation (SAVi) tool to calculate the economic and societal value generated by the S’Ena Arrubia and Corru S’Ittiri-Marceddì-San Giovanni wetlands in the Gulf of Oristano in Sardinia, Italy.
Sustainable Asset Valuation (SAVi) of a Public Bicycle Sharing System in Dwarka, New Delhi, India: A focus on the environmental, social and economic impacts of non-motorized transport infrastructure
This SAVi assessment values the environmental, social and economic benefits generated by a public bicycle sharing system. Its results demonstrate how the transport system delivers to sustainable mobility targets in Delhi.
An Application of the Sustainable Asset Valuation (SAVi) Methodology in Sri Lanka: Assessing the economic value of restoring the ecological health of Beira Lake in Colombo
The SAVi assessment quantifies the economic value of investing into different ecological restoration options for South-West Beira Lake in Colombo and makes a strong case for such investments given the positive effects on property values and recreational value of the lake.
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