Scaling up local investment: Brunel supports white paper from The Good Economy

A white paper published last week by the Good Economy has highlighted the UK’s significant local impact investment opportunity and offered crucial guidance on the best path ahead.

‘Scaling-Up Local Investing for Place-based Impact: A Strategic Framework and Guidance for LGPS’ argues that a stronger UK economy would be one rooted in inclusive, long-term domestic growth.

By publishing the white paper, The Good Economy aims to spark a new era of place-based investing in the UK.

“Congratulations to The Good Economy on producing such a compelling and practical report that harnesses LGPS expertise,” said Faith Ward, Chief Responsible Investment Officer at Brunel Pension Partnership. “Brunel has long seen The Good Economy as a strategic partner and we share its belief in the value of local investment, as anyone can see from our own range of investments up and down the UK.”

Industry input, practical output

Brunel was one of seven LGPS pools to sponsor and contribute to the report; several asset managers also contributed.

The report identifies decades of underinvestment in the UK – and embedded regional inequalities. It sees the LGPS as a “cornerstone of the effort to close this gap and build a more resilient, inclusive domestic economy.”

The result is a roadmap for the LGPS to harness the scale of the pools to channel investment into local priorities, all within the broader remit of meeting their core fiduciary duties.

Among its key points are:

Local context is crucial – you cannot rely on off-the-peg solutions
Collaboration is key – between pools, AAs, local government etc
Share expertise – build large, cross-pool models across target asset classes
Use a risk-return impact lens – to enable impact while supporting fiduciary responsibilities

“This paper not only sets out the significant UK impact opportunity available to LGPS investors, but provides a practical approach that enables them to take that opportunity,” said Ward. “I expect it to be well-used.”

You can read the full paper at the link above.

For examples of impactful local investments in the UK, see our map.