Sustainable Asset Valuation – SAVi

Sustainable Asset Valuation – SAVi

Description

SAVi is a financial tool designed to demonstrate how sustainable infrastructure delivers better value-for-money for governments and taxpayers and offers better financial returns for investors. It is primarily intended to assess the impacts of improved sustainability performance on cash flows and financial returns in individual projects or portfolios.

How It Works

SAVi is customizable to the needs of the clients, whether they are looking at a single project, a portfolio of projects, or an economic or industrial policy. SAVi identifies externalities and risks on a case-by-case basis in collaboration with the client. SAVi can compare and contrast the environmental, social and economic performance of business-as-usual infrastructure with more sustainable alternatives and also determine the climate resilience of planned infrastructure projects.

Tool Outcome

An analysis to assess the impacts of improved sustainability performance on cash flows and financial returns.

Sustainability Criteria

SAVi is customizable for the needs of each client. Typical workflow for a SAVi Assessment:

  • STEP 1: Engage with the client to understand and record asset characteristics;
  • STEP 2: Determine risk scenarios and externalities most relevant to the asset and asset owners;
  • STEP 3: Obtain and verify data. Build in assumptions using robust international data sets;
  • STEP 4: Customize SAVi and run models;
  • STEP 5: Analyze results and write up results;
  • STEP 6: Present results and explore how values change under different risk scenarios;
  • STEP 7: Deliver results

Additional Information

  • Users of the tool – Local Authorities, Project Team, General Audience
  • Phase when the tool applies – Planning, Design, Construction, Operation, Maintenance
  • Geographic application – Not specified – Applies globally