The green infrastructure valuation toolkit user guide

Building natural value for sustainable economic development: the green infrastructure valuation toolkit user guide
6 Investment
High environmental quality and the creation and development of green
spaces and landscaping can encourage and attract high value industry to
a locality or region. Including green infrastructure in and around a new
estate and buildings can improve functionality, reducing cost and
improving outcomes.
Relevant types of green spaces and features – these include:
all trees, plants and green spaces
green infrastructure within, in close proximity to, or providing gateways
to, investment sites
green roofs and SUDS
investment in the public estate, including hospitals and schools.
WHAT THE EVIDENCE SHOWS
Economic growth is influenced by many factors, including:
skills
health
education
transport networks
access to capital
proximity to markets
environmental quality.
There is anecdotal and qualitative evidence that high environmental quality is an
important factor to some businesses. Investing in green infrastructure can both
improve the quality and the image of an area or site - leading to new investment
and employment.
The presence of trees and green spaces has also been shown to improve
outcomes, for example improving labour productivity [see section 7] or reducing
patient recovery time - and hence length of stay in hospitals. Well-designed green
infrastructure can reduce running costs, through sustainable water management
[see section 2] and reduced energy costs [see section 1a].
For the purpose of valuation, green infrastructure affects private sector
investment - helping to drive economic growth - in two main ways.
At a wider scale
Green infrastructure provides a context for inward investment, enhancing an
area’s image.
Poor perceptions of an area can be a barrier to inward investment and to
recruitment - especially of highly skilled workers 109 . Investment in environmental
improvements has the potential to help improve perceptions:
At the site level
33 per cent of new investors in the West Midlands region cited the
attractiveness of the region as an important factor in location
decisions 110
in the South West, over 35 per cent of companies quoted
environmental attractiveness as a key reason for their move 111 .
The public realm and green infrastructure in and around particular investment
sites can help attract and retain companies.
A high quality public realm can create the impression of a prosperous area which
businesses are keen to buy into. The fluidity and footloose nature of many
business sectors means that they can relocate if the circumstances are not right.
Typical green investments might include tree planting, landscaping and provision
of green space. Functional green infrastructure – like SUDS and green roofs –
can be attractive to firms concerned with their environmental impact.
Current research
A literature review by Greenspace Scotland concluded that while there was likely
to be a positive relationship for some investors, there was a need to enhance the
evidence base 112 .
A number of studies however do show a positive relationship between
environmental quality and investment, particularly for high-value, mobile
businesses:
Research on the benefits of environmental enhancements to
investment showed that the quality of the location had a direct impact
on investment – see the Riverside and Speke Garston investment
projects below.
A CABE and DETR (2001) study 113 examining the value of urban
design found that ‘evidence was offered that the better designed
environments beneficially impacted on the productivity and the health
and satisfaction of the workforce’.
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