The Impact Investing Institute, together with the Good Economy and Pensions for Purpose, is working on a collaborative project aimed at mobilising more flows of institutional investment to address place-based inequalities and support more inclusive and sustainable development across the UK.
Our goal is to build market knowledge and influence institutional investors, such as local government pension schemes, to consider the opportunities to invest in asset classes that deliver financial returns alongside positive social, environmental and economic impacts in local communities, towns and region. The three main project objectives are to:
- Develop a conceptual framework to characterise, define and measure the impact of PBII that is useful to both investors and local stakeholders and is taken forward for widespread consultation and adoption
- Build an evidence base on the current level of PBII by Local Government Pension Schemes (LGPS) in the UK and the PBII opportunity from a financial performance perspective
- Carry out a critical review of existing institutional asset management models that focus on PBII-aligned investments, present findings on where gaps exist and make recommendations on how to scale up existing, or develop new, models to mobilise greater flows of institutional investment to PBII
The findings of the project will be published in a White Paper in 2021.