Global Assessment of Infrastructure Assets (GAIA) tool
Posted 19/04/2024 by Brendan Cuddihy
We have developed our Global Assessment of Infrastructure Assets (GAIA) tool to provide a streamlined yet holistic and robust ESG assessment of an infrastructure asset or business. We use GAIA in our advisory services to analyse key ESG issues relevant to each project. These services include due diligence for the acquisition of assets, project financing, pre-sale readiness assessments and due diligence for the sale of assets. It can also be used during the holding period to provide comparable assessments of assets' ESG performance.
The assessment combines materiality and performance assessments to highlight the key risks and opportunities on each project. GAIA’s materiality assessment supports the identification and prioritisation of the key ESG risks and opportunities relevant to the client and the transaction. The assessment is also based on the particular sector and location considerations. The ESG indicators comprise environmental, social and governance, as well as health and safety indicators. This stage ensures that ESG factors that are not material to the client or transaction are screened out, allowing greater focus on the most important topics. In turn, we are able to deliver a bespoke service to our clients, ensuring we meet their specific needs and priorities.
GAIA’s performance assessment consists of a review of the material indicators, which are derived from 21 leading ESG standards and consider both risk and value. As a result, both the strengths and weaknesses of the asset or business are identified. Additionally, the assessment results can be ‘sliced’ to show which of the various indicators correspond to any of the ESG standards used in GAIA. This allows the assessment results to be presented differently for various stakeholders (e.g. lenders).
Based on the assessed materiality and performance of the business, our due diligence goes further to present prioritised recommendations to ensure ESG risks are managed effectively, and value creation opportunities are realised.
GAIA supports us in all our ESG advisory services. It's holistic, ensuring that the full breadth of ESG topics is considered. It is robust, meaning that it can be relied upon to provide deep insight in accordance with the latest ESG standards. It is bespoke, with each project uniquely focussed on the client’s priorities as well as sector- and location-specific factors. Its graphical output allows for a rapid understanding of material ESG risks and opportunities. Combined, these benefits allow us to identify clear recommendations aligned to our clients’ priorities. The philosophy behind GAIA applies across our services through delivery of an efficient yet bespoke service that addresses our clients’ needs and delivers the confidence to invest in a sustainable future.
Please contact Brendan Cuddihy on [email protected] for any friendly advice/information on ESG