Place-Based Impact Investing

Creating Pathways to a Good Economy

Speak to a Place-Based Impact Expert

Introducing Place-Based Impact Investing

The Good Economy’s Place-Based Impact Investing (PBII) work is about catalysing and shaping the market for place-based impact investing that delivers real benefits to local people and places in collaboration with others.

TGE is recognised as the thought leader in PBII and is uniquely placed to facilitate a constructive dialogue between stakeholders across sectors focused on connecting capital with place – across the UK and around the world.

PBII is part of the DNA of The Good Economy whose founders’ UK and international careers have bridged finance and sustainable development, with one question in mind: How do we connect capital to communities in ways that put sustainable prosperity within reach of everyone?

The search for answers continues in the shape of our PBII work.

“There is now a golden opportunity for private capital to step in, work with local stakeholders and deliver positive environmental and social impact in places and communities across the country.”

Mark Hepworth, co-founder of The Good Economy and Director, Research and Policy

PBII Services

The Good Economy’s PBII services are aimed at local government authorities, place stakeholders and private sector investors who are interested in exploring innovative financing solutions to local problems and designing place-based investment funds. Developed in the UK, the PBII model is applicable to places globally.

We also provide a PBII Reporting Service to help organisations measure and report their contribution to social, economic and environmental outcomes from a place-based perspective.

The PBII Conceptual Model

Place-based approaches to financing and delivering public services – including local and regional economic development – are well-established across OECD countries. They involve understanding the issues, interconnections and relationships in a place and coordinating action and investment to improve the quality of life for that community.

At The Good Economy we have applied a place-based approach to impact investing and called this ‘Place-Based Impact Investment’ (PBII).

In doing this, we are doing three things:

TGE’s conceptual model of PBII was unveiled in seminal white paper Scaling Up Institutional Capital for Place-Based Impact which we published with the Impact Investment Institute and Pensions for Purpose.

“Investments made with the intention to yield appropriate risk-adjusted financial returns as well as positive local impact, with a focus on addressing the needs of specific places to enhance local economic resilience, prosperity, and sustainable development.”

Based on extensive research and consultation with the Local Government Pension Scheme (LGPS) as a case study, the white paper recommended that UK institutional investors should invest more in our own backyard, particularly in underinvested areas. Our recommendation to allocate 5% of all UK institutional investment to the UK was taken in the Government’s Levelling Up White Paper. We also developed a PBII Reporting Framework with the LGPS and specialist asset managers that is now being used by institutional investors.

Speak to a PBII Expert

From Concept to Practice

In 2022, our PBII work shifted from concept to practice – how could the PBII model work on the ground? This involved setting up ‘PBII Labs’ in four regions of the UK. The Labs brought together local stakeholders and investors around the same table (literally), for the first time in most cases, to consider innovative (or unconsidered) funding approaches to local development projects. Feedback from participants has been highly positive and our approach has attracted international attention.

Today, The Good Economy’s PBII work has evolved three strands:

A PBII Advisory service for local governments, investors, and other sectors.

A PBII Network of Local Government and Investor founder members aimed at shaping and promoting PBII in markets and policies, at all levels

A PBII Research Programme that will provide investors, local governments and other stakeholders with PBII roadmaps and tools

Get in Touch

"*" indicates required fields

This field is for validation purposes and should be left unchanged.