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Presented at the 4th Global Infrastructure Basel Summit 21 & 22 May 2014. Read more about the world leading platform for Sustainable Infrastructure Finance at www.gib-foundation.org. Next Summit: 27 & 28 May 2015 in Switzerland
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Sustainability Metrics & Capital Markets
1
May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Sustainability Metricsand
Capital Markets
Dr. Andreas GeorgouliasHarvard University
Sustainability Metrics & Capital Markets
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May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Private companies disclosing ESG data
Investors subscribing to responsible & sustainable investing
Market indices tracking sustainable performance
Do capital markets reward sustainability?
Sustainability - from Metrics to Markets
Sustainability Metrics & Capital Markets
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May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Sustainability Metrics & Capital Markets
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May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Sustainability Metrics & Capital Markets
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May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Sustainable Companies – Sustainable Profits?
Sustainability Metrics & Capital Markets
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May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Sustainable Companies – Sustainable Profits?
Sustainability Metrics & Capital Markets
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May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Sustainable Companies – Sustainable Profits?
Sustainability Metrics & Capital Markets
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May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Sustainability - from Strategy to Metrics
Why sustainability doesn’t always correlate with above-average returns?
- externalities (carbon etc) not priced in?
- not a viable business model?
- markets don’t care?
- markets don’t know how to measure and assess it?
How can we connect sustainability to capital markets?
Risk and reward balance.
Project Performance Metrics
Sustainability Metrics & Capital Markets
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May 22, 2014
Prof. Andreas Georgoulias, Harvard University
THE ENVISION RATING SYSTEM™
Sustainability Metrics & Capital Markets
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May 22, 2014
Prof. Andreas Georgoulias, Harvard University
ENVISION & SUSTAINABLE INFRASTRUCTURE
Envision™ is the product of a joint collaboration between the :
Zofnass Program for Sustainable Infrastructure atHarvard University Graduate School of Design
and theISI Institute for Sustainable Infrastructure.
Sustainability Metrics & Capital Markets
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May 22, 2014
Prof. Andreas Georgoulias, Harvard University
A holistic, integrated approach using metrics, criteria and guidelines
Preserve and enhance the ecological systems
Optimal allocation and use of resources
Address long-term climate change
Enhance health and quality of life
Plan Long-Term Maintenance and Monitoring
Sustainability Metrics & Capital Markets
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May 22, 2014
Prof. Andreas Georgoulias, Harvard University
5 Major Categories - 60 Measurable Credits
Sustainability Metrics & Capital Markets
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May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Online application
Sustainability Metrics & Capital Markets
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May 22, 2014
Prof. Andreas Georgoulias, Harvard University
60 SUBMISSIONS
26 SHORT-LISTED
BILLION USD TOTAL INVESTMENT
45 ELIGIBLE PROJECTS
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18 COUNTRIES
Sustainability Metrics & Capital Markets
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May 22, 2014
Prof. Andreas Georgoulias, Harvard University
B. APPLICATION OF ENVISION
Mariscal Sucre International Airport Quito, Ecuador1500 hectares 2400 m above sea level 4100 m long landing strip 41 m high control tower 38,000 m2 of passenger terminal 14,000 m2 cargo terminal 45 gates US $ 700 million investment5 million passengers expected in the first year
Sustainability Metrics & Capital Markets
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May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Baltra Ecological Airport Galápagos, Ecuador6000 m2 of new constructed terminal 2400 m long runway new control tower 23000 m2 new platform to be constructed US $ 35 million investment LEED Gold certification solicitation
Sustainability Metrics & Capital Markets
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May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Xingú And Macapá High Tension Lines Amazon, Brazil1,192 Km extension 6 substations (4 of 500kv, 2 of 230kv) 1,300,000 tons of CO2 reduction per year 2,400 MW transmission capacity 30 years operation and maintenance US $ 2000 million total investment
Sustainability Metrics & Capital Markets
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May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Aura Solar I Photovoltaic Plant La Paz, Mexico100 ha131,800 one-axis tracked polycrystalline modules30 MW 30-year lifespan82 GWh per year generation (60% of La Paz households)US $ 100 million total investment
Sustainability Metrics & Capital Markets
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May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Pozo Almonte Photovoltaic Plant Atacama Desert, Chile
100 ha2,400 meters above sea level25 MWUS $ 80 million investment13% of the yearly energy demand of the mining company
Sustainability Metrics & Capital Markets
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May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Necaxa – Àvila Camacho Highway, Sierra Oriental, State of Puebla, Mexico36.64 km long stretch6 double tunnels, 12 bridges, four-lane roads2.5 hours (5.3 hours before) travel time from DF to Tuxpán16,400,000 m3 soil removed36.6 km toll-free highwayUS $ 75 million investment
Sustainability Metrics & Capital Markets
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May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Vias Nuevas de Lima Lima, Peru
115 kmUS $ 21.76 million projected revenue in 2013US $ 590 million investment30-year concessionIntegration of 23 districts
Sustainability Metrics & Capital Markets
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May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Los Hierros Hydroelectric Power Stations Melado River Basin, Chile19.85 MW installed capacity110 GWh per year2 Francis-type turbines60-years operation110 kV 17 km long electric transmission LineUS $ 50 million investment
Sustainability Metrics & Capital Markets
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May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Santo Antônio do Jari Hydropower PlantAmazon, Brazil373.4 MW capacity196.1 MW of assured energy3 Francis-type turbines1 Bulb-type generating unit100% Energias do BrasilUS $ 360 million investment31.7 km2 reservoir in Jari River352,648 tons of CO2 reduction per year
Sustainability Metrics & Capital Markets
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May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Lima Metro Line 1Lima, Peru30-year concession34 km long26 stations in 51 minutes132,000 commuters per day (250,000 in 2014).54 USD per rideUS $ 270 million investment32,000 tons of CO2 emissions reduction in the city per year
Sustainability Metrics & Capital Markets
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May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Wastewater Treatment Plant and Marine Outfall La Chira, Lima, Peru100-year lifespan11.3 m³/s wastewater treatment capacity21.87 hectares of public land25-year public-private partnershipUS $ 161 million investment Treats wastewater from 2.6 million people in 18 districts of Lima
Sustainability Metrics & Capital Markets
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May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Los Cocos WindfarmPedernales Region, Dominican Republic
77 MW200,000 MWH annually40 Vespa V80 wind turbine generators160,000 tons of CO2 reduction per yearUS $ 180 million investment
Sustainability Metrics & Capital Markets
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May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Sustainability Metrics & Capital Markets
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May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Sustainability Metrics & Capital Markets
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May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Pre-Assessment Checklist
RecognitionAssessment
Phase Toolkits
CompanionTools
Sustainability Metrics & Capital Markets
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May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Sustainability Metrics & Capital Markets
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May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Sustainability Metrics & Capital Markets
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May 22, 2014
Prof. Andreas Georgoulias, Harvard UniversityZOFNASS PROGRAM FOR SUSTAINABLE INFRASTRUCTURE
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Sustainability Metrics & Capital Markets
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May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Sustainability Metrics & Capital Markets
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May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Sustainability Metrics & Capital Markets
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May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Sustainability Metrics & Capital Markets
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May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Sustainable Return on Investment
Source: Williams et al, “Economic Assessments of the Value of Sustainability”, in “Infrastructure Sustainability and Design”, Routledge: London, 2012.
Sustainability Metrics & Capital Markets
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May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Source: Williams et al, “Economic Assessments of the Value of Sustainability”, in “Infrastructure Sustainability and Design”, Routledge: London, 2012.
Sustainability Metrics & Capital Markets
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May 22, 2014
Prof. Andreas Georgoulias, Harvard University
economictool.zofnass.org
