Sustainable Asset Valuation (SAVi)

The Sustainable Asset Valuation (SAVi) tool by the International Institute for Sustainable Development (IISD) integrates system dynamics simulation with project finance models to value risks and externalities typically ignored in traditional financial assessments. It applies to asset types including energy, roads, buildings, irrigation, sewerage treatment, and nature-based infrastructure. The tool aims to support the goals of the Paris Agreement and UN Sustainable Development Goals by optimizing value for money across an asset's life cycle. Case studies demonstrate its application in valuing climate-risk-related road disruptions in Morocco, the economic gains of wetland conservation in India, and the internal rate of return for wind energy in Senegal.

• SAVi is a simulation-based methodology that quantifies the costs of environmental, social, and economic risks and externalities—which are typically omitted in traditional financial valuations—as well as societal and economic benefits such as GDP contributions, income, productivity, and employment.
• The tool is applicable to various infrastructure types, specifically energy, roads, buildings, irrigation, sewerage treatment, and nature-based infrastructure, and can be customized for single projects, portfolios, or industrial policies.
• Application of SAVi in Senegal showed that the N’Diaye wind project has an internal rate of return of 14 per cent when accounting for externalities and climate risks, whereas diesel-generated power has a negative internal rate of return.
• In Morocco, SAVi estimated that climate-risk-related disruptions for the Rabat bypass road would result in EUR 7.3 million in additional reparation expenditures over the asset's lifetime.
• Analysis of Dal Lake in Srinagar, India, identified solar-powered sewage treatment combined with an artificial wetland as the optimal solution, projecting economic gains of INR 377 billion between 2019 and 2060.
• In Tanzania, the use of drip irrigation in the agricultural sector is projected to result in 8 per cent higher employment and 8 per cent more agricultural production, while reducing water usage by 14 per cent over the project's lifetime compared to floor irrigation.
• Green investments in Georgia's tourism, housing, and agricultural sectors are estimated to increase annual GDP growth by 0.2 per cent between 2017 and 2040.

APA

International Institute for Sustainable Development (2019). Sustainable Asset Valuation (SAVi). https://www.iisd.org/sites/default/files/publications/sustainable-asset-valuation-savi-tool-brochure.pdf

Chicago

International Institute for Sustainable Development. Sustainable Asset Valuation (SAVi). 2019. https://www.iisd.org/sites/default/files/publications/sustainable-asset-valuation-savi-tool-brochure.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=Sustainable Asset Valuation (SAVi) |date=2019 |url=https://www.iisd.org/sites/default/files/publications/sustainable-asset-valuation-savi-tool-brochure.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopment2019sustainable, author = {{International Institute for Sustainable Development}}, title = {{Sustainable Asset Valuation (SAVi)}}, institution = {International Institute for Sustainable Development}, year = {2019}, url = {https://www.iisd.org/sites/default/files/publications/sustainable-asset-valuation-savi-tool-brochure.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }