Sustainable Asset Valuation: Methodology and Applications

This lecture introduces the Sustainable Asset Valuation methodology (SAVi), developed by the International Institute for Sustainable Development. SAVi is a simulation-derived methodology used by governments and investors to design and simulate investments in sustainable and resilient infrastructure. The lecture covers the motivation behind developing SAVi, how it works, and its application in assessing the financial returns of sustainable infrastructure solutions. The speakers discuss the integration of qualitative and quantitative modeling approaches, the use of system dynamics, and project financing models to assess the impact of infrastructure on sustainable development. They also provide examples of how SAVi can outperform traditional financial analysis by considering environmental, social, and economic externalities in project valuation.