The Sustainable Asset Valuation (SAVi)
IISD developed the Sustainable Asset Valuation (SAVi) to demonstrate to governments, investors and citizens why sustainable assets can deliver better value for money and more attractive internal rates of return.
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.
A Sustainable Asset Valuation of the Tirana–Durres Railway in Albania
This report presents the economic valuation of the Tirana–Durres railway in Albania, including its investment costs, added benefits, and avoided costs.
A Sustainable Asset Valuation of a Net-Zero Transport Strategy in Indonesia
This report presents the economic valuation of net-zero transport strategies in Indonesia—their investment costs, added benefits, and avoided costs—encompassing interventions such as investments in public transport, private vehicle electrification, teleworking, and decarbonization of the electricity supply.
A Sustainable Asset Valuation of the FAME II policy in India
This report presents the economic valuation of the second phase of the Faster Adoption and Manufacturing of Electric (& Hybrid) Vehicles (FAME II) policy in India and demonstrates its economic, social, and environmental outcomes under different scenarios.
A Sustainable Asset Valuation of a Bus Rapid Transit System in Bandung, Indonesia
This report presents the economic valuation of a planned Bus-Rapid Transit system in Bandung, Indonesia, including investment costs, added benefits, and avoided costs.
Factor Gender into Transportation Planning, IISD Analyst Urges Policy-Makers
Cost-benefit decisions on new transportation infrastructure that are gender-blind create a cost for women and the societies they live in, says an analyst with the International Institute for Sustainable Development (IISD).
Uncovering the Value of Sustainable Transport Investments
Using a case study in Coimbatore, India, IISD demonstrates the importance of recognizing, valuing, and reflecting the full economic, social and environmental benefits and costs of a transport project in infrastructure decision-making.
A Sustainable Asset Valuation of Non-Motorized Transport in Coimbatore, India
A Sustainable Asset Valuation (SAVi) of the economic, social, and environmental benefits of a non-motorized transport (NMT) network in Coimbatore, India.
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