Sustainable Asset Valuation (SAVi)
Summary
The Sustainable Asset Valuation (SAVi) tool, developed by the International Institute for Sustainable Development (IISD), is a simulation-based methodology designed to integrate environmental, social, and economic risks and externalities into the financial valuation of infrastructure assets.
Key insights
- SAVi is a simulation-based tool that calculates the financial impact of risks and externalities—such as environmental, social, and economic factors—that are typically omitted from traditional financial valuations. It also quantifies societal and economic benefits, including GDP contributions, productivity, and employment.
- The tool utilizes three interlinked features: simulation (combining system dynamics and project finance models), valuation (assigning financial value to ignored risks like climate-change or legal risks), and customization (tailoring the tool to specific projects, portfolios, or policies). It is currently applicable to asset types including energy, buildings, roads, irrigation, sewerage treatment, and nature-based infrastructure.
- Application of SAVi has produced specific economic and environmental insights across various global projects: in Georgia, green investments in tourism, housing, and agriculture could increase annual GDP growth by 0.2% between 2017 and 2040; in Morocco, climate-risk-related disruptions for the Rabat bypass road are estimated to cost EUR 7.3 million in additional reparations over its lifetime; and in Senegal, the N’Diaye wind project shows a 14% internal rate of return when accounting for externalities, whereas diesel-generated power has a negative internal rate of return.
- SAVi assessments for other regions indicate significant gains: drip irrigation in Tanzania is projected to result in 8% higher employment, 8% more agricultural production, and 14% less water usage compared to floor irrigation; and solar-powered sewage treatment with an artificial wetland for Dal Lake in Srinagar, India, is estimated to generate economic gains of INR 377 billion between 2019 and 2060.
Cite the original document
- 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} }
Full text
Collected · Record updated