A large share of financing for the SDGs is needed at the local level where local assets, such as equipment and machinery, public land, buildings, and infrastructure facilities provide essential public services. Yet assets that are key to providing such services are not managed in a sustainable manner. Very few municipalities in the world follow a cohesive and proactive approach to asset management. Most do not even have a focal point that encourages collaboration among all stakeholders involved in asset management. This mindset needs to change. Maintaining, repairing and upgrading physical assets will be crucial in the face of social and environmental challenges, including urbanization and climate change. Improving municipal asset management will help municipalities meet a required level of basic services, in the most cost-effective manner for present and future generations. This objective is accomplished through enhanced life-cycle asset management and portfolio asset management. Life-cycle asset management ensures that financial decisions are made based on the lowest long-term cost rather than on short-term savings. Portfolio management maximizes the entire value of the portfolio of assets rather than individual or single groups of assets.
Toolkits on Asset Management