Sustainable Asset Valuation (SAVi)

Sustainable Asset Valuation (SAVi)

Organization

International Institute for Sustainable Development (IISD)

Type(s) of Tool

Economic / Financial ValuationsAnalyses the economic/financial value and risks related to projects.

Sector(s)

Tools applicable to all sectors

Lifecycle Phase(s)

FinanceDevelopers decide how to pay for their project.

Open Source

No

Language Availability

English

Country of Origin

Canada

Description

The Sustainable Asset Valuation (SAVi) helps policy makers and investors take informed decisions on infrastructure financing based on customized simulations. The tool forecasts how infrastructure projects will affect and be affected by the environmental, social and economic dynamics and simulates how different risk scenarios affect a project’s financial viability across its life cycle and how material externalities can affect future cash flows. Thereby, SAVi allows to evaluate the financial attractiveness of infrastructure projects across the life cycle, considering important environmental, social, economic and governance factors that are overlooked in traditional valuations, and to compare different infrastructure scenarios and their financial viabilities.

Tool Outcome

SAVi identifies externalities and risks of infrastructure projects and valuates their financial implications and provides developers and investors with an informative report. Moreover, SAVi compares and contrasts the environmental, social and economic performance of business-as-usual infrastructure with more sustainable alternatives. Thereby, SAVi informs policy makers and investors on the wider, second-order gains and trade-offs of infrastructure investments, which may not be reflected in a traditional valuation, guiding decision making towards sustainable infrastructure.