What is meant by decommissioning in asset management?

Decommissioning in asset management primarily refers to the process of safely removing an asset from service and managing the environmental impacts associated with its disposal. This involves cleaning up any pollution or environmental damage that may have occurred during the asset's operational life or that could result from its disposal. It is essential to ensure that any hazardous materials are handled properly, mitigating the risk to human health and the environment. This process is particularly significant in industries such as energy, where assets like power plants may pose substantial environmental challenges upon their closure.

In this context, the other options do not encapsulate the full scope of decommissioning. Breaking an asset into smaller parts pertains more to asset dismantling or repurposing rather than the environmental considerations that decommissioning entails. Calculating the present value of the asset relates to financial assessments rather than the physical or environmental actions involved in decommissioning. Determining operational costs is a part of asset management during its active life, which does not encompass the end-of-life considerations that decommissioning covers. Thus, the focus on cleaning up environmental pollution in the correct answer highlights the critical responsibility asset managers hold in maintaining sustainable practices throughout the asset's lifecycle.