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

1. Sustainability Metrics & Capital Markets
1
May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Sustainability Metrics
and
Capital Markets
Dr. Andreas Georgoulias
Harvard University

2. Sustainability Metrics & Capital Markets
2
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

3. Sustainability Metrics & Capital Markets
3
May 22, 2014
Prof. Andreas Georgoulias, Harvard University

4. Sustainability Metrics & Capital Markets
4
May 22, 2014
Prof. Andreas Georgoulias, Harvard University

5. Sustainability Metrics & Capital Markets
5
May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Sustainable Companies – Sustainable Profits?

6. Sustainability Metrics & Capital Markets
6
May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Sustainable Companies – Sustainable Profits?

7. Sustainability Metrics & Capital Markets
7
May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Sustainable Companies – Sustainable Profits?

8. Sustainability Metrics & Capital Markets
8
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

9. Sustainability Metrics & Capital Markets
9
May 22, 2014
Prof. Andreas Georgoulias, Harvard University
THE ENVISION RATING SYSTEM™

10. Sustainability Metrics & Capital Markets
10
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
at
Harvard University Graduate
School of Design
and the
ISI Institute for Sustainable
Infrastructure.

11. Sustainability Metrics & Capital Markets
11
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

12. Sustainability Metrics & Capital Markets
12
May 22, 2014
Prof. Andreas Georgoulias, Harvard University
5 Major Categories - 60 Measurable Credits

13. Sustainability Metrics & Capital Markets
13
May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Online
application

14. Sustainability Metrics & Capital Markets
14
May 22, 2014
Prof. Andreas Georgoulias, Harvard University
60 SUBMISSIONS
26 SHORT-
LISTED
BILLION USD
TOTAL INVESTMENT
45 ELIGIBLE
PROJECTS
44
18 COUNTRIES

15. Sustainability Metrics & Capital Markets
15
May 22, 2014
Prof. Andreas Georgoulias, Harvard University
B. APPLICATION OF ENVISION
Mariscal Sucre
International Airport
Quito, Ecuador
1500 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 investment
5 million passengers expected in
the first year

16. Sustainability Metrics & Capital Markets
16
May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Baltra Ecological
Airport
Galápagos, Ecuador
6000 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

17. Sustainability Metrics & Capital Markets
17
May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Xingú And Macapá
High Tension Lines
Amazon, Brazil
1,192 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

18. Sustainability Metrics & Capital Markets
18
May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Aura Solar I
Photovoltaic Plant
La Paz, Mexico
100 ha
131,800 one-axis tracked
polycrystalline modules
30 MW
30-year lifespan
82 GWh per year generation
(60% of La Paz households)
US $ 100 million total investment

19. Sustainability Metrics & Capital Markets
19
May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Pozo Almonte
Photovoltaic Plant
Atacama Desert, Chile
100 ha
2,400 meters above sea level
25 MW
US $ 80 million investment
13% of the yearly energy demand
of the mining company

20. Sustainability Metrics & Capital Markets
20
May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Necaxa – Àvila
Camacho Highway,
Sierra Oriental, State
of Puebla, Mexico36.64 km long stretch
6 double tunnels, 12 bridges, four-
lane roads
2.5 hours (5.3 hours before) travel
time from DF to Tuxpán
16,400,000 m3 soil removed
36.6 km toll-free highway
US $ 75 million investment

21. Sustainability Metrics & Capital Markets
21
May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Vias Nuevas de Lima
Lima, Peru
115 km
US $ 21.76 million projected
revenue in 2013
US $ 590 million investment
30-year concession
Integration of 23 districts

22. Sustainability Metrics & Capital Markets
22
May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Los Hierros
Hydroelectric Power
Stations
Melado River Basin,
Chile
19.85 MW installed capacity
110 GWh per year
2 Francis-type turbines
60-years operation
110 kV 17 km long electric
transmission Line
US $ 50 million investment

23. Sustainability Metrics & Capital Markets
23
May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Santo Antônio do Jari
Hydropower Plant
Amazon, Brazil
373.4 MW capacity
196.1 MW of assured energy
3 Francis-type turbines
1 Bulb-type generating unit
100% Energias do Brasil
US $ 360 million investment
31.7 km2 reservoir in Jari River
352,648 tons of CO2 reduction per
year

24. Sustainability Metrics & Capital Markets
24
May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Lima Metro Line 1
Lima, Peru
30-year concession
34 km long
26 stations in 51 minutes
132,000 commuters per day
(250,000 in 2014)
.54 USD per ride
US $ 270 million investment
32,000 tons of CO2 emissions
reduction in the city per year

25. Sustainability Metrics & Capital Markets
25
May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Wastewater Treatment
Plant and Marine
Outfall La Chira, Lima,
Peru
100-year lifespan
11.3 m³/s wastewater treatment
capacity
21.87 hectares of public land
25-year public-private partnership
US $ 161 million investment
Treats wastewater from 2.6
million people in 18 districts of
Lima

26. Sustainability Metrics & Capital Markets
26
May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Los Cocos Windfarm
Pedernales Region,
Dominican Republic
77 MW
200,000 MWH annually
40 Vespa V80 wind turbine
generators
160,000 tons of CO2 reduction
per year
US $ 180 million investment

27. Sustainability Metrics & Capital Markets
27
May 22, 2014
Prof. Andreas Georgoulias, Harvard University

28. Sustainability Metrics & Capital Markets
28
May 22, 2014
Prof. Andreas Georgoulias, Harvard University

29. Sustainability Metrics & Capital Markets
29
May 22, 2014
Prof. Andreas Georgoulias, Harvard University
Pre-Assessment
Checklist
Recognition
Assessment
Phase Toolkits
Companion
Tools

30. Sustainability Metrics & Capital Markets
30
May 22, 2014
Prof. Andreas Georgoulias, Harvard University

31. Sustainability Metrics & Capital Markets
31
May 22, 2014
Prof. Andreas Georgoulias, Harvard University

32. Sustainability Metrics & Capital Markets
32
May 22, 2014
Prof. Andreas Georgoulias, Harvard University
ZOFNASS PROGRAM FOR SUSTAINABLE 32

33. Sustainability Metrics & Capital Markets
33
May 22, 2014
Prof. Andreas Georgoulias, Harvard University

34. Sustainability Metrics & Capital Markets
34
May 22, 2014
Prof. Andreas Georgoulias, Harvard University

35. Sustainability Metrics & Capital Markets
35
May 22, 2014
Prof. Andreas Georgoulias, Harvard University

36. Sustainability Metrics & Capital Markets
36
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.

37. Sustainability Metrics & Capital Markets
37
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.

38. Sustainability Metrics & Capital Markets
38
May 22, 2014
Prof. Andreas Georgoulias, Harvard University
economictool.zofnass.org