2020

Annual Report

SIIF: Japan Social Innovation and Investment Foundation

6F M-City Akasaka 1-chome Building, 1-11-28 Akasaka, Minato-ku Tokyo 107-0052, Japan
Tel. +81-3-6229-2622 ｜ Fax. +81-3-6229-2621 ｜ Mail. info@siif.or.jp
https://www.siif.or.jp

Financial status

Practical Knowledge of the "New Economy"
Needed Now More Than Ever
I am pleased to present our Annual Report 2020 toour stakeholders.
Fiscal year 2020 was an unprecedented year inwhich the emergence of a new coronavirus forced
all social activities to be scaled down or suspended.
Not only in Japan, but all over the world, a variety ofproblems became apparent in all aspects of society,including politics, economics, education, and culture.
At the same time that various problems became
apparent, it was also the year that various attempts
to overcome these issues began. Some of them havealready achieved a certain level of success, and it
can be said that there is a bright hope for the future.
Looking back at the history of mankind, there is
no shortage of cases where disasters have led
to social changes. Major crises have always led
to innovative changes, and it is thanks to thesechanges that humanity has been able to overcome
its difficulties. In other words, now that we are facing
the unprecedented situation of the Corona disaster,I think we can say that we are at a historical turning
point.
The mission of the Foundation for the Promotionof Social Change (SIIF) has been to "create asystem for the circulation of social and economic
resources that goes beyond the framework of selfhelp, public assistance, and mutual aid, with the aimof creating a society in which the resolution of social
issues and the creation of diverse values can occur
autonomously and sustainably.
Japan, the world's fastest aging society, is facing
major structural problems such as the exhaustionof medical and nursing care systems, childpoverty, economic decline in rural areas and thedisappearance of communities. Now that it has
become clear that the government redistribution
model built during the period of high economic growthand premised on economic growth cannot cope withthese issues, we need to redefine the boundaries
between the public and private sectors and build a
new social system. One of the major keys to social
systems will be the creation and reconstruction of
mechanisms that visualize, value, and circulate not
only economic capital, but also capital from nature,society, culture, and sensitivity.
Looking back on fiscal 2020, we were able to achieve
many results in the areas of impact investment andsupport for social entrepreneurs using dormant

deposits. In the field of impact investing, as apioneer in Japan, we made two new investments
in Hataraku Fund, published an impact report, helda study session on impact investing jointly with the
Financial Services Agency as the secretariat of the
GSG Domestic Advisory Committee, and preparedguidelines for implementing impact investing.
As for support for social entrepreneurs, for thesecond year in a row, we were selected as a funddistributing organization for the Dormant Deposit
Utilization Project, and provided subsidies andmanagement support to entrepreneurs engaged insocial businesses. We have also provided capital
investment and subsidies to entrepreneurs who
have graduated from the Nippon Foundation Social
Changemakers Program, management support, andsupport for planning and implementing new initiatives
to solve social issues in each region.
In addition, we have been finding and funding social
entrepreneurs who are planning new initiatives tosolve social issues in their respective regions, andproviding them with our own management support.
As government spending continues to grow, theFoundation is actively supporting companies thatprovide innovative services and platforms that
contribute to reducing public costs.
The Foundation will create new model projects inwhich resources such as funds, human resources,
and knowledge are circulated in pursuit of what isgood for society, and will make its own investmentsthat will serve as a catalyst for such projects, while
spreading the examples to more collaborators.
In addition, by creating an environment for the
expansion and development of model projects
through research and policy proposals, we aim tobuild an ecosystem of resource circulation in which
the resolution of social issues and value creation canoccur autonomously and sustainably.
It is my hope that this annual report will help readers
attain a better understanding of SIIF, and encourage
their continued support going forwards.

Capital For
Social Innovation
Net Assets Variation Statement

Balance sheet

I Change in general net assets

I Assets

1. Change in ordinary revenue/expenses

1. Current assets(1) Ordinary revenue

2020
Annual Report
Total ordinary revenue ……………………… 534,810,894

2. Fixed assets(2) Ordinary expenses(1) Endowments

Operating expenses ………………………… 396,495,007

Total endowments …………………………… 10,000,000

Total administrative expenses ……………… 103,181,368(2) Designated assets

Total ordinary expenses ……………………… 499,676,375

Business management equalization fund

Current change in ordinary revenue/expenses before
adjustment by appraisal gain or loss

30,000,762

Social transformation promotion business fund…………… 35,134,519……………………………………………… 264,216,892

Current change in ordinary revenue ……… 35,134,519

Social transformation project assets …… 143,868,638

2. Change in extraordinary revenue/expenses

Dormant deposit project assets ………… 218,525,246(1) Extraordinary revenue

Funds, etc. surplus ……………………… 91,333,323

Total extraordinary revenue ……………………………… 0

Marketable securities …………………… 369,694,857(2) Extraordinary expenses

Fixtures and fittings ………………………… 1,824,015

Total extraordinary expenses ………………… 7,359,478

Equipment attached to buildings

Change in current extraordinary revenue △ 7,359,478

Rental deposit………… 9,950,576…………………………… 27,156,480

Current change in general net assets before taxes

Total designated assets ………………… 1,156,570,789……………………………………………… 27,775,041

Total fixed assets ………………………… 1,166,570,789

Income taxes …………………………………… 70,000

Total assets

Current change in general net assets……………………………… 1,293,818,440… 27,705,041

Opening balance of general net assets …… 6,277,943
Closing balance of general net assets … 33,982,984

II Liabilities
Total current liabilities ………………………… 86,037,667

II Change in designated net assets

Total non-current liabilities ……………………… 7,227,000
Total liabilities ……………………………………… 93,264,667

1 Dormant
MessagefromtheChair ………
of Executive
deposits andothersubsidies
155,256,788Committee
subsidies received …………………… 552,740,000
2 Private
Contents

Total subsidies, etc., received …………………… 707,996,788

3 Appraisal
Vision/Mission
gain or loss on designated assets…… 657,705

III Net assets
1. Designated net assets

Transferto general
net assets
4
Three
roles

5

Transfer to general net assets

Dormant deposits and other subsidies …… 163,525,246……………△ 507,669,472

Private subsidies …………………………… 997,090,166

Current change in designated net assets …… 200,985,021

Contributions …………………………………… 6,218,500

Recipients of funds by sector

7 Opening
Conversation
with anetrecipientof funds: Rennovater
Co.,
Ltd.
balance of designatedassets … 965,585,768
Appraisal
gain
or loss on marketable securities
9

Closing balance of designated net assets

1,166,570,789……………………………………………… △ 263,123

Three-way Conversation with a recipient of funds: CureApp, Inc.

Total designated net assets ………………… 1,166,570,789

11
Fiscal 2020 Case Study (1) Social Entrepreneur
Support
Programsocial entrepreneur
2. General
net assets………………………………
33,982,984
III Closing balance of net assets
12
Fiscal 2020 Case Study (2) Hataraku FUND Total net assets ……………………………… 1,200,553,773

Chair of Executive
Committee, SIIF
Shuichi OHNO

1,200,553,773

Total liabilities and net assets ……………… 1,293,818,440

13

Fiscal 2020 Case Study (3) Dormant Deposit Accounts Utilization Project

15

Fiscal 2020 Case Study (4) Hallucigenia Lab.

17

Fiscal 2020 Case Study (5) Social Impact Measurement/Management

19

Global partnerships

21
Organizational
summary/Financial
statusApril 1, 2020
to March 31, 2021
(Units: yen)1

Total current assets …………………………… 127,247,651

As of March 31, 2021 (Units: yen)

2
22

Solving Social Issues withNew Forms of Economies

Three Roles“Impact” is about signaling our intent for the future
In today’s world we are seeing the end of an era in which economic value wasplaced above all else, and the emergence of a diversity of benchmarks to measurevalue, such as society, the environment and culture. We work with organizations
such as companies, local governments and NPOs on a variety of projects in orderto build an ecosystem for the circulation of social and economic resources thattranscends the framework of self-help, public help and mutual help. As we aim tobuild a society in which the resolution of social problems and the creation of value
take place autonomously and sustainably, there are some things we can do only
because of our perspective as a foundation.

VisionTo build the foundation for asociety in which the resolution ofsocial problems and the creationof value take place autonomously
and sustainably
The goal of SIIF is an inclusive society in which
the dreams of both individuals and communities
are realized. We believe it is a society that
individuals and communities must continuallyseek, choose and create for themselves.

To build an ecosystem for thecirculation of social and economic
resources
Self-help centered on the market economy.
Public help based on a centralized system ofredistribution. And mutual help and reciprocal
aid, which are a form of interdependence at theindividual level. SIIF aims to build a new modelfor the circulation of resources such as funds,
people, and knowledge that transcends theseframeworks, and to present diverse benchmarks
for measuring the value of social outcomes.
3

Mission

Providing capital
Provide risk capital anddemonstrate a model
We create new mechanisms for thecirculation of resources, provide funds
to unprecedented projects andinitiatives, and undertake model
developments.

Creating knowledge

Networking

We generate practical wisdom
to induce social reform

Connecting practitioners, becoming
the cornerstone of the ecosystem

We extract lessons from the newchallenges that we ourselves face, andshare them with other practitioners inorder to encourage ripples of practical
wisdom.

By connecting practitioners who facesimilar challenges, and providing
support for collaboration and mutual
learning, we aim to further enrich theecosystem for resource circulation.

SIIF fulfills three roles that contribute to thebuilding of an ecosystem for the circulation ofsocial and economic resources.

4

Recipients of Funds Map

SIIF investees (41) classified into six categories and four different types of support

Regional revitalization

Medical/caregiving
Investments via funds

Development of medical devices using
artificial intelligence technology to diagnose
infectious disease

Development of medical equipment (ARiS)
to provide innovative treatment for acute
myocardial infarction

Direct investments

Operates the “Minchalle” digital peer
support app that enables individuals to
encourage each other while working to
improve their lifestyle habits

SIB
Provision of management systems for
medical institutions primarily involved in the
career development of medical staff

Development of proprietary AI for machinelearning applications using sparsemodeling technology for feature extraction
from small amounts of data

Development of service aimed at medicalsocial workers, care managers, etc., for
optimizing the selection of facilities forsenior citizens

Development and sale of specialized
drugstore SaaS that improves efficiency ofpharmacy operations, controls excess
inventory and throwing away of medicines,
and enables requests to be accommodated
at neighboring pharmacies• Kobe City SIB for preventing severe diabetic
nephropathy• Hachioji City SIB for increasing the rate ofresidents receiving bowel cancer screening• Hiroshima Prefecture SIB for increasing the rateof residents receiving bowel cancer screening• Okayama City health points SIB• Toyonaka City SIB for stopping smoking

Education/child raising

Subsidies

Develops and provides a platform forestablishing and operating autonomousand distributed “villages” to make use ofidle assets, such as old houses

Operates the “POCKET MARCHÉ” CtoC
platform for directly connecting primary
producers to consumers

Creation of new community economic
zones by developing union organizations
through the utilization of crypto assets

Direct investments

Operates “TANOMOSHI Local BusinessLab” for nurturing local enterprises inpartnership with local financial institutions

Constructs and operates wood biomass
cogeneration facilities that make use offorestry resources within the area, with theaim of both revitalizing the region andpromoting the circulation of resources

Forming a gift economy platform to support
the independence of young creators

Develops and operates the “Keigyo Bank”
media platform for enabling thecontinuation of regional occupations

A company that creates mechanisms forsocial investment to ensure that regions
retain their individuality

Provides multiple-location lifestyle services
for a monthly fee by renovating unoccupied
buildings, such as empty houses, in allparts of Japan

Disaster countermeasures

Investments via funds

Subsidies

Provides “Sketter” skill-sharing service forthose without qualifications or experienceto provide assistance in caregiving facilities
for the time of their choosing

Development of “Rehaplan” cloud softwarethat allows anybody to perform functional
training operations easily, safely, andeffectively.

Supports R&D and development ofbusinesses using epigenome analysis
techniques to create technology that
improves people’s lives

Provision of infection management
solutions for general hospitals

5

Development and sale of compact
ophthalmological diagnostic equipment toencourage the early diagnosis and remotetreatment of eye diseases before they
become critical

Provision of IT programming
education for junior and seniorhigh school students that focuseson the creation of the abilities thatwill be needed by the people who
lead the process of resolvingsocial problems

Development of ultrasonic imaging
equipment for use in the early and painlessdetection of breast cancer

Business development and assistance forbusinesses built around a platform forsupporting patients suffering from serious
illnesses, and their families

R&D and sale of therapeutic software
applications for mobile devices, provision ofmobile health-related services

Builds relationships that transcend
generations between local junior and seniorhigh school students and adults, by meansof a helper app

Established and operates the fan club for
the Echigo-Tsumari region, known as thehome of an extensive triennial art festival
for more than 20 years

Social welfare/support for self-reliance
Investments via funds

Develops methods for improving
manufacturing materials andconstruction methods, as well as
analysis techniques, to improve
earthquake resistance forbuildings built with brick or stone
in countries around the world

Subsidies

Diverse lifestyles
Uses cutting-edge technologies
such as AI and IoT to improve theworking environment in childcare
facilities and to raise the quality ofchildcare itself

Provides four kinds of support needed
for social rehabilitation to those withdependencies such as alcohol andgambling

Buys old buildings and rents them tothose struggling to secure housing,such as senior people living on theirown and single-parent households
Direct investments

Develops and operates the“mamaro” brand of completely
individual rooms for the care ofbabies, allowing people to raisechildren safely and comfortably

Operates services to support continued
employment, employment transition,and lifestyle (Esports, etc.) based on
the Act for the Comprehensive Supportof Persons with Disabilities, as well as
child development support programs
based on the Child Welfare Act

Operates business to provide
production services for artists withdisabilities, with the aim of changing
the perception of disability and thelives of those with disabilities

Investments via funds

Fund to support startups
by single mothers
Startup support program for web
media business for single mothers

Operates “YeLL” 1-on-1 service
utilizing personnel from outside thecompany, provides consulting onorganizational development andhuman resources development

6

Conversation

Providing a home and assistance to those inneed of housing while supporting a businessmodel that generates an economic return

The mission of our foundation is to build an ecosystem for the circulation of social and economic resources, based on which we provide support to companies. We asked Tomoyuki MATSUMOTO, thePresident & CEO of Rennovater Co., Ltd., which buys old houses and apartment buildings and rents
them to those struggling to secure housing, about the initiatives underway at the company.

Japan Social Innovation and Investment FoundationVice-chair of Executive Committee

Mitsuaki AOYAGIThe reality of poverty that is not seen in the data
AOYAGI As an Organization Distributing Funds under
the dormant deposit account utilization system, SIIF
provides support to Rennovater Co., Ltd. You not only
renovate homes and offer them to those struggling tosecure housing, but also provide meticulous support
services to tenants. It is not widely known that evenwhen public housing is available, there are many
people for whom there is a mismatch in terms oftenancy conditions or what the individual themselves
want, and who therefore are unable to secure thehousing they desire. Having received support fromsources such as the dormant deposit accounts
scheme, and after media coverage of the company andits business, has there been a change in the situation?
Tomoyuki MATSUMOTO Those struggling to find housing

7

Rennovater Co., Ltd., President and CEO

Tomoyuki MATSUMOTO

are getting in touch with us more regularly, and so
we have more contact with those who are in an
increasingly serious situation.
AOYAGI There is a general tendency to assume thatpublic institutions will provide a safety net and that
therefore this is not a problem, but that is not the casewith housing, is it?
MATSUMOTO This is not simply a problem of securing
housing for senior citizens and welfare recipients.
There are complex interactions between multilayered
problems such as domestic violence and disability.
At the bottom you have the issue of the house, butthere are also differences in education and family
environment, mental illnesses such as dependencies,
and problems related to physical health. Serious
problems become visible that cannot be resolved byeconomic assistance alone.
AOYAGI Basically, in order to resolve this you haveto address the problems of the individual. Have
there been cases where cooperation between local
governments and private-sector organizations has
been successful?
MATSUMOTO Even if you explain to the individual who
they should contact, in many cases they are unwillingto do so. In terms of cases where there seems to be agood chance of success, there have been examples
where an individual has been introduced to us by alocal government that cannot deal with their request
for housing, and at the same time a caseworker isassigned to them.
AOYAGI It would be good if that could be made into a
more formal mechanism, wouldn’t it. This is the kind ofstory that just isn’t visible in the official data. Using thehome as the starting point, it would be nice if the stateof affairs on the front line could be visualized and used
to improve public services.
MATSUMOTO There are many players seeking toaddress the unoccupied housing problem, but I feelthere are hardly any who are genuinely thinking about
low-income individuals. In some cases it has become ameans of making money, with those in need of housing
becoming the victims. I do want to grow my own
company, but at the same time I think that the market
for rental housing for low-income individuals needs tobe healthy.

dormant deposit account system, and assist you with
regional cooperation and with the creation of social
impact. What is your view on the activities of SIIF?
MATSUMOTO Determining KPIs and measuring social
impact is positive in external terms. And we are gratefulfor the hands-on support. The various things we try
over the two years we are able to receive support are
educational.
AOYAGI Because we are a foundation, we are in aunique position. If there is no social impact, it doesn’t
matter how impressive the business model is, wewill not be your partner. As it is a foundation that is
involved, we need to be even more careful about acting
for the good of the public. I believe it is the obligationof the Foundation to render social impact visible andincorporate it into a network.

Balance between impact and economic growth

Creating networks to share common issues

AOYAGI Have you found it difficult, as a limited
company, to seek a balance between social impact andprofits?
MATSUMOTO Yes, the business model is valid, butthere is a problem in that if you increase the number ofproperties you handle too quickly, it becomes difficult
to provide adequate care for the tenants.
AOYAGI So it is not only the letting of a house, but also
the care of tenants that has a social impact, and it
is important to put in place the related structure andhuman resources. If you allocate too many resources
to this structure, does it result in costs rebounding, andmake it difficult to generate profits?
MATSUMOTO Compared to procuring funds fordeveloping real estate the costs are not that high, so
we can get by with one per case. I hope to be able toengage a university student or somebody else whowants to become an intern.
AOYAGI Considering the expectations of those who
invested in your company, I imagine that they will want
you to increase the number of properties handledgoing forward.
MATSUMOTO That is where there is a gap in the desired
growth curve. The rate of growth in sales is important,but I want them to see our profit margin rising.
AOYAGI The market principle inevitably createsa tendency for growth itself to become the goal.
However, taking a more optimistic interpretation, you
could see it as an expression of potential.
MATSUMOTO The balance between our mission as abusiness and economic growth is important. That iswhere it becomes difficult to decide. In order to becomea player that can influence society, it is preferable to bea limited company. However, once a certain sense ofscale has been achieved, it is easier to obtain funds,
and to operate, as an NPO. Right now I feel we are inthat transition period.
AOYAGI I think you are utilizing the principle ofcapitalism in a good way, and I think it is desirable that
there be an increase in the number of funds providers
positioned between the venture capitalists that focus
on profit on the one hand, and the banks that focus
on collateral on the other hand, but I think it may takesomewhat longer for those on the funds provision side
to come round to your way of thinking. SIIF is not ashareholder, but we support you with funds from the

AOYAGI We are planning a workshop to enable thesix companies to which we provide assistance under
the dormant deposit accounts utilization project toshare the issues that they face. Our aim is to create a
network of entrepreneurs.
MATSUMOTO This is something to look forward to. I think
it is unusual for companies in which the same venture
capital firm has invested to meet with each other.
AOYAGI The Dormant Deposits Utilization Act thatwas enacted in 2018 had a supplementary resolution
attached to the effect that the Act be reviewed five
years later. The Japan Network for Public Interest
Activities (JANPIA) will assess whether the principle of
the Act has been realized, and whether the system andthe method of assessment have brought about results.
Such reviews are important, and in addition to thediscussions, I think we must revise the system to makeit more effective.

Rennovater Co., Ltd.
Founded in 2018, this company purchases and renovatesolder buildings, such as unoccupied houses, and provides
high-quality housing at low rent to those struggling to secure
housing due to the hurdles they face in renting property, suchas the destitute, senior people living on their own, and foreigners. Rennovater Co., Ltd. seeks to use private-sector funds toresolve a social problem, namely the difficulty of entering intoa rental contract experienced by those struggling to secure aplace to live in the general rental housing market. Furthermore,
the company provides not only properties but also meticulous
tenant support services, with the aim of building a mechanismthat creates a turn for the better in the lives of tenants.

8

Three-way
conversation

Visualizing the social value of the project
to increase the number of supporters
Preparing to achieve an impact-oriented IPO

with our mission that we change our business forthe better. The tool we use to achieve this is IMM. In
that sense, the fact that your company has adopted
impact measurement and incorporated it into yourmanagement is close to the realization of an ideal forus.

We want to engage actively with our supporters

CureApp, Inc. is developing a business around the research, development and sale of therapeutic
software applications for mobile devices, as well as the provision of mobile health-related services.
We talked to President and CEO Kohta SATAKE about the company's initiatives.
as one of those?
SATAKE We felt that there was a high degree of affinity
between the company mission and impact investing.
By working with Hataraku FUND, I sense that as acompany we have gained a deeper awareness of theissue of social impact.

Making impact measurement a metric for thecompany
CureApp, Inc.
CEO

Kohta SATAKEKUDO CureApp provides the first treatment app that iseligible for insurance in Japan, and I would like to startby asking what the catalyst was for the founding of thecompany.
Kohta SATAKE After working as a doctor specializing in
respiratory medicine for five years, I spent some time
studying abroad at Johns Hopkins University, where
my academic advisor showed me a dissertation on theuse of apps for treatment. When I found that an app
for treating diabetes had been found to be as effective
as drugs in clinical trials, I got goosebumps. That was
the catalyst that led to me founding the company. I
understood that there was a future in using software
for treatment rather than pharmaceuticals and medical
devices, and felt strongly that I wanted to spread thisapproach in Japan.
KUDO I think you first encountered SIIF when Toyonaka
City issued their “Toyonaka Giving Up Smoking
Project” Social Impact Bond (SIB*1).
SATAKE I heard that the giving up smoking SIB was
Japan’s first such initiative, and my initial impression
was that it was an interesting idea. It turned out to bevery difficult, but I felt it was something that should be
done. Naturally CureApp had accumulated evidence,but until then the effectiveness of treatment apps had
been evaluated in clinical research at universities
and in hospitals. The Toyonaka City SIB was the firstcase of social implementation in which a service wasprovided to specific individuals, and the results were
evaluated.
SAWAI After that, CureApp’s initiatives caught ourattention, and we invested through Hataraku FUND, inwhich the SIIF is a general partner. At the stage yourcompany is at, I think you probably had many inquiries
from investors. Why did you choose Hataraku FUND

9KUDO When you received funds from Hataraku
FUND, you also took on a new challenge in the formof adopting impact measurement and management(IMM*2). How have you found that?
SATAKE I believe that the process of discussing
within the company the social impacts that we are
generating is in itself a valuable activity. Ever since thecompany was founded, our mission has been to use
software to enable all people to receive high-quality
treatment without worry. What does it look like if wetry to quantify this “all people” and this “high-quality
treatment”? We factorized this and created a logic
model. After discussions at our management meetings,
we made the decision to pursue social impact metrics
as a company in the same way that we follow those forrevenue and profit.
SAWAI I found the logic model that you created simple,
easy to understand, and well thought-out. I was
impressed by the clear and logical way that you have,as a company, set out the course of action that you
intend to follow.
KUDO The main reason that we made broadening theuse of IMM in Japan is that we believe it is an effective
technique for continuously confronting the question ofwhether the activities in which we are engaged provide
real benefits to society. It is by repeatedly testing the
hypothesis that our day-to-day activities are aligned

KUDO Another course of action implied by IMM isexternal communications. I think this can be a tool tofacilitate understanding of the company by investors
and stakeholders, and to encourage them to becomefans of the company.
SATAKE Right now, just as we prepare to list thecompany, we are exploring ways to use this IMM
mechanism as a way of appealing to external
investors, including impact investors. Naturally, for thestock market the key issues are revenue, profit andmarket capitalization, but we see IMM as transcending
these, and offering a new way to express our values.
SAWAI A large part of the mission of Hataraku FUND
is to set an example by facilitating the listing ofcompanies that implement IMM, and that continue togenerate social impacts after their listing. We hope that
CureApp will be one of the companies that achieves
this. As a company, when you think about conveying
to society as a whole the importance of social impacts,
specifically what kind of stakeholders do you have inmind?
SATAKE I get asked similar questions by securities
companies. Will it be shareholders, or customers which stakeholder will you focus on as you go about
your business? Moreover, because our company is a
startup associated with the field of medicine, we have avariety of relationships with patients, physicians, healthinsurance associations, the Ministry of Health, Labourand Welfare, medical associations, and academic
institutions. So, for what it’s worth, my conclusion
is that rather than orienting ourselves towards one
specific set of stakeholders, we will engage with all
those who sympathize with our mission, regardless of
their standpoint. We aim to actively engage with those
who show an understanding of our mission.
KUDO I feel that IMM could be a useful tool to increase
the number of those who sympathize with your mission
and wish to travel with you aboard this ship called
CureApp. Do you yourself feel that you would like
impact investors to continue to invest in the company
after it has been listed?
SATAKE Of course, I do very much feel that. I look at
this as being something like an ecosystem, in which anincrease in the number of companies producing impact
reports will lead to an increase in the number of impact
investors, and this in turn will lead to an increase in thenumber of companies that are aware of social impacts.
I think our company can play a role in creating this kindof virtuous cycle.

Surprised by SIIF’s ability to execute andenthusiasm
Member of Executive
Committee, SIIF

Nanako KUDOKUDO I myself have been promoting impact investingsince around 2013, and I feel that the discussion hasentered a new phase. Over the past one or two years,

SIIF
Impact Officer

Noriko SAWAI
the shift towards becoming part of the mainstream has
accelerated all at once, and suddenly we’re living in an
era when investee companies like yourself, which areclosely associated with impact investing, are preparing
to be listed. It is actually quite an emotional moment.
I feel that SIIF has also come to a point where its roleneeds to evolve further. Is there anything specific thatyou yourself would like to see from SIIF?
SATAKE There are many non-profit organizations in theworld today, but SIIF differs from all of them. Having
worked with the SIIF team, we have been surprisedby their ability to execute their mission, and by theenthusiasm with which they push forward with theirplans. During the Toyonaka City SIB, the CureApp
employees involved in the project were deeply
impressed by the level of commitment shown by the
SIIF team. Going forward I aim to strongly promote
their efforts as they work on the social implementationof new mechanisms.

*1 SIB: A mechanism whereby funds sourced from private
investors and donors are used by private businesses toimplement public services outsourced by administrative
agencies and other organizations, with profits returned
to providers of funds in accordance with the outcomesachieved.
*2 IMM: An approach involving understanding and measuring
the social impacts of projects and activities in both
qualitative and quantitative terms, and utilizing this forcontinuous social impact management that increasessocial impact activities.

CureApp, Inc.
Founded in 2014, CureApp’s mission is to reimagine “treatment” through the use of software, with the aim of generating new treatments through technology that resolve social
problems related to healthcare. The software applications formobile devices developed and provided by CureApp seek toachieve therapeutic effects through new approaches, such as
modifying behavior, for those suffering from conditions such as
dependencies, and other lifestyle illnesses, to which existing
methods of treatment have not been fully effective. In August
2020, its app for the treatment of nicotine dependency became
the first such in Japan to receive regulatory approval, becoming eligible for insurance in December 2020.

10

2020 CASE STUDY ❶Providing capital

2020 CASE STUDY ❷Creating knowledge

Providing capital

A program for supporting startups that take on the challenge ofsocial problems“Nippon Foundation Social Change Makers”
Support for program alumni projects(From left) Yoshitaka TABUCHI; Yuya KATO (SIIF), Yuko
KOSHIBA (SIIF), Takaya MATSUDA, President and CEO,
Heralbony, Fumito MATSUDA, COO, Heralbony, Haruki
SASAKI, COO, Heralbony

A total of more than ¥70 million in funds has been provided
to three companies from among those selected for the“Nippon Foundation Social Change Makers” startup
support program, which was launched in 2019 by Nippon
Foundation and ImpacTech Japan. In addition to funds
supplied at the time of founding, primarily in the form ofequity investments, continuous, pacesetting support has
been provided from the three perspectives of (1) building
and visualizing an impact strategy, (2) achieving financial
sustainability, and (3) building a team to support the growthof the business and the expansion of social value.

living, and expand mechanisms to support people who work

“Hatraku FUND” was established in a joint effort between Japanese banking groups and SIIF, as one of
the few examples in Japan of an impact investing fund that is open to external investors. With a focus
on pressing social problems such as the declining birthrate and the aging population, this is a fund toinvest in companies that create the environment required to enable working people to continue to workthrough a variety of life events. Having designated the creation of diverse ways of working and living astargeted long-term social changes (impacts), the fund invests in the work domain in areas such as care,including child raising and nursing, and in the nurturing of next-generation human resources, in order tobuild more substantial mechanisms for supporting working people in society.

Theory of Change (ToC) for this fund: conceptual drawing
Care (Child raising, nursing)• Reducing the individual burden ofchild care and nursing care
• Achieving accommodative child careand nursing care

• Reducing workloads• Achieving accommodative work styles

We act as pacesetters, working alongside social
entrepreneurs right from the seed stage

Society• Fostering a culture and mechanismsthat enable diverse work styles

SIIF
Comment

Creating an impact investing fund in which external
investors can participate
Impact Officer
Yuya KATO

Recipient of funds
Company

Creation ofdiverse ways
of working
and living• Improving access to high-quality
services• Improving societal cooperation forchild care and nursing care

Work (Work/self-investment)

There are still only a limited number of players in Japan who support social entrepreneurs
from the seed stage. In this project we focused on that issue, and worked with Nippon
Foundation and ImpacTech Japan to create a support mechanism. The impact-oriented
businesses that have been developed from scratch by the companies receiving support aregradually getting underway, and beginning to move from the stage of verifying hypotheses
to the growth phase. Leveraging the opportunity presented by being ones that work mostclosely with social entrepreneurs right from the seed stage, we continue to support the effortsof each company to create an impact and to grow their businesses. In addition, we hope
to share with more social entrepreneurs the lessons and know-how that management andourselves have accumulated through trial and error.

11

Hataraku FUND aims to create diverse ways of working andIndividuals

SIIF
Comment

Creating knowledge

We wanted to create a full-fledged impact investing fund of a kind that is still unusual in
Japan in that it not only combines both financial returns and social returns, but it also permits
participation by institutional investors. Hataraku FUND that grew from these ideas completed
its funding in December 2020, having received a total of ¥3.65 billion from a total of 12
companies, including financial institutions, corporations, and universities. With the phase of
setting up the impact investing fund now complete, we have entered the stage of building
a track record, in which, as impact investors, we determine how much we can contribute to
the continued generation of social impacts by investee companies. With interest in impact
investing increasing rapidly, we are entering an era where the “quality” of such investments
will come under scrutiny. The thought does create some tension.

Social impact generated

General Manager,
Projects
Fumi SUGENO

Aster Co., Ltd.
Develops methods for improving
manufacturing materials and construction
methods, as well as analysis techniques,to improve earthquake resistance forbuildings built with brick or stone incountries around the world

Because approximately 60% of the world’s population is housed inmasonry structures built from stone or brick that have little resistance toearthquakes, Aster is planning to use an inexpensive resin material tocoat roofs and external walls in order to significantly reduce casualties
from damage to housing caused by natural disasters such as earthquakes
and typhoons.

A10 Lab Inc.
Operates the “Minchalle” digital peer
support app that enables individuals to
encourage each other while working to
improve their lifestyle habits

By making it more enjoyable to continue with medical treatment andimprove dietary and exercise habits in daily life, thus enhancing qualityof life (QOL) for users, warding off illness and preventing illnesses frombecoming severe, A10 Lab seeks to reduce medical costs and resolve
resource shortages of medical treatment providers across society as awhole.

Yell Co., Ltd.
Operates “YeLL” 1-on-1 service utilizing
personnel from outside the company,
provides consulting on organizational
development and human resources
development

Provides a 1-on-1 service for individual organizations, using external
personnel to help resolve the problem of low engagement by workers
at Japanese companies. By improving independent career formation by
workers and the psychological security of the organization, the company
supports the self-actualization of the individual and the transformation of
the company into a highly autonomous organization.

Heralbony Co., Ltd.
Operates business to provide production
services for artists with disabilities, with theaim of changing the perception of disability
and the lives of those with disabilities

By providing production services for works of art used on station buildings,
office walls, and food packaging, etc., planning and marketing own-brandproducts such as apparel, miscellaneous goods, and furniture, and bylicensing art, Heralbony aims to put the spotlight on individual artists withdisabilities, and to sweep away deep-rooted social prejudices towards
people with disabilities.

CureApp, Inc.
R&D and sale of therapeutic software
applications for mobile devices, provisionof mobile health-related services

Through the use of mobile-device therapeutic software applications, which
are aimed at dependencies and lifestyle diseases, CureApp seeks toachieve sustainable treatment that contributes to the resolution of a variety
of medical problems by bringing about an environment in which “all people(without disparities between regions), can receive high-quality treatment (tomaximize treatment effectiveness) at any point (without being restricted bytime or place) without worry (in a way that is financially sustainable).”New Investees in Fiscal 2020
Company

Social impact generated

12

2020 CASE STUDY ❸Providing capital

In order for social businesses that utilize regional resources to survive and grow, it is necessary to form
flows of funds and personnel that are aimed at generating positive results (impacts) for the region.
To achieve this, we not only provide assistance in the form of funds, but we also focus on acting as
pacesetters for the management of the organizations responsible for these activities, and work toestablish functions and mechanisms to visualize and assess regional revitalization.

Creating knowledge

Supporting social businesses that revitalize regions

Dormant deposit accounts utilization project

Executing organization
Company

In fiscal 2020, SIIF was designated an “Organization Distributing Funds” under the Dormant Deposits
Utilization Act for the second consecutive year. In fiscal 2019 SIIF began implementing a project tosupport the growth of social businesses for revitalizing regions and the formation of an ecosystem thatallows sustainable generation of impacts, to which end it selected six executing organizations. In fiscal
2020 SIIF conducted activities on the theme of “Solving Regional Issues through Collective Impact.”
In order to solve the problem of diminishing vitality in regional society caused by the progressive
decline in birth rates and the aging population, we support the social businesses that form the core of
local communities by reinvigorating a variety of resources not utilized in the regions, and seek to build
mechanisms that take a collective approach to resolving social issues.

sonraku Inc. website. Operates a heat supply business utilizing energy
from wood biomass, supporting the energy aspect of regional self-reliance

Citizens

Deposits(Depositors)

Financial institutions
Dormant
deposits

Transfer

Deposit Insurance
Corporation of Japan

Payment request
Payment○○ Bank /△△ Shinkin bank

Hand
over

Public interest activities

Executing organization(Organization conducting
public interest activities)

NPO, etc.
“Executing organization”
means the organizationthat receives subsidies
from an Organization
Distributing Funds sourced
from monies related todormant deposits, etc., andconducts the public interest
activities.

13

Supervision

Subsidies

Share Village Co., Ltd.
Develops and provides a platform
for establishing and operating
autonomous and distributed“villages” to make use of idle assets,such as old houses

Share Village supports the operation of “villages” across Japanthat are involved in the conservation of local woodlands,
construction of shared housing, restoration of hot springs, andutilization of idle facilities (particularly in the town of Gojome in
Minami Akita, Akita Prefecture), with the aim of establishing andextending a series of decentralized autonomous communities.

sonraku Inc.
Constructs and operates woodbiomass cogeneration facilities thatmake use of forestry resources
within the area, with the aim of both
revitalizing the region and promoting
the circulation of resources

sonraku deploys decentralized autonomous energy facilities toeffectively generate power and heat (small-scale wood biomass
cogeneration equipment) using only local forestry resources(thinnings and other idle resources) with the aim of not only
kickstarting a virtuous cycle for forestry resources, but also
supplying stable electric power and heat energy to communities
for their day-to-day needs.

Rennovater Co., Ltd.
Buys old buildings and rents them tothose struggling to secure housing,such as senior people living on theirown and single-parent households

Rennovater buys empty houses to use for rental with thegoal of eliminating the problems faced by those struggling tofind housing, as well as working with local NPOs to provide
meticulous services to tenants, so as to build a mechanism thatcreates a turn for the better in the lives of tenants.

Misogigawa Co., Ltd.
Operates “TANOMOSHI Local
Business Lab” for nurturing local
enterprises in partnership with local
financial institutions

Through the operation of “TANOMOSHI Local Business Lab,”
Misogigawa seeks to nurture local enterprises in the Noto
peninsula, as well as working with local financial institutions
to strengthen intermediary support functions in the region.
Through these initiatives it aims to generate social impacts inthe form of revitalizing the regional economy, maintaining andpreserving lifestyles and communities in forested and coastal
areas, and expanding so-called “related populations” of people
who reside elsewhere but have a stake in the region.

Pocket Marche, Inc.
Operates the “POCKET MARCHÉ”
CtoC platform for directly connecting
primary producers to consumers

Pocket Marche leverages the systems and the know-how it
has accumulated by operating the “POCKET MARCHÉ” CtoC
platform for connecting primary producers to consumers, using
online purchases from primary producers as the opportunity toinitiate a process of strengthening relations between production
sites in the regions and urban consumers to create so-called“related populations,” and clarifying the metrics used to assessthem.

Ridilover Inc.
Established and operates the fanclub for the Echigo-Tsumari region,
known as the home of an extensive
triennial art festival for more than 20
years

Ridilover seeks to create and expand related populations byutilizing regional resources such as the Echigo-Tsumari Art
Triennial, which has been held in the Echigo-Tsumari regionof Niigata Prefecture for more than 20 years, as well as therural landscape and the culture of country living. Through themultiple ongoing cash points enabled by these relationships,
Ridilover aims to build a regional ecosystem that balances
diverse regional lifestyles with economic autonomy andstability.

Press event held on November 19, 2020 at Satoyama Marugoto Hotel,
with Misogigawa Co., Ltd., Kono Shinkin Bank, and SIIF.

Organizational
chart
Organizational
chart

Organization
Distributing Funds

Supervision

Subsidies

Designated Utilization
Organization

Project report

Project report“Organizations Distributing
Funds” means anorganization that
distributes subsidies
sourced from monies
related to dormant
deposits, etc., toexecuting organizations.

Supervision
Approval of project plan

Application
for project plan
Project report

Cabinet OfficeCouncil for Utilizationof Dormant Deposits

Social impact generated

SIIF
Comment

We support the growth of businesses that can generate
sustainable impacts

For the dormant deposit accounts project, our focus has been on creating mechanisms to
make idle regional assets visible, enable social businesses to sustainably generate social
impacts, and collectively solve the important problems faced by communities. For thispurpose we provide social impact evaluation and pacesetting assistance. It is important thatsocial impacts are sustainably generated even after the active period of the dormant deposit
account project has ended. Rather than simply providing grants and leaving it at that, we aim
to use grants as fertilizer to nurture businesses, to help them achieve sustainable growth,and to cultivate businesses and mechanisms that in the future will no longer rely on dormant
deposits.

Impact Officer
Yuka OGASAWARA

14

2020 CASE STUDY ❹Providing capital

Organizations participating in the first phase of Hallucigenia Lab.
Investment in Kokohore Japan KK

Networking

Research and development of new
mechanisms for resource circulation“Hallucigenia Lab.”In April 2020, we began the “Hallucigenia Lab.” accelerator program for research and development of
new mechanisms for the circulation of resources such as manpower, goods and capital. This programis open to organizations that have ideas for businesses that could become new ecosystems with arole in the circulation of resources. These organizations are provided with funding and six months ofbusiness support. Each of the recipients work on the development of new businesses involved in thebuilding of new resource circulation mechanisms. In addition to providing support to each organization
for the development of new business prototypes, SIIF identifies the success factors within that process,records explicit knowledge related to the business growth process, and provides know-how to thebusiness operators, with the aim of inducing them to build new mechanisms for resource circulation.

(From left) Noriko TADATE (SIIF), Kanafumi FURUICHI(SIIF), Katsutoshi ASAI (CEO, Kokohore Japan KK),
Toshihito KOBAYASHI (individual investor); photo taken
at the NEXs Tokyo start-up support facility sponsored by
the Tokyo Metropolitan government, at which Kokohore
Japan KK is currently registering for membership (source:
Kokohore Japan KK)

By providing its “Nihon Keigyo Bank” service for an annual
fee to match businesses with successors, and by having
entered into partnership agreements with local governments
in five regions, Kokohore Japan has achieved the problemsolution fit required by Hallucigenia Lab. In addition, as an
example of the “new circulation of resources model” that
SIIF hopes will emerge, Kokohore Japan’s “Nihon Keigyo
Bank” business model has led to the unearthing in theregions of ongoing occupations that had not previously
been visible, made their value known to the outside world,and succeeded in appropriately matching up the direct
beneficiaries, which are the successor and the ongoing
occupation. SIIF has made the decision to continue toprovide support in order to conduct further verification ofthis project.

“Keigyo Bank” editors turn it
into an article for wider
consumption

Wants to takeover an occupation
Wants to become abusiness operator
Wants to take over a
traditional occupation
Supporters of the region

Artists interacting with local residents through their creations using a venue that makes use ofan empty house (Ishinomaki City, Miyagi Prefecture) Source: makigumi LLC
Wants somebody to takeover their occupation

Companies participating in Hallucigenia Lab.
Company

15

Business operators worried
about successors

Appealingidea
AccessSearch for an occupation totake over by region, nature ofwork, or type of succession

Find an occupation totake over from someone
Keigyo Bank

Social impact generated

Kokohore Japan KK
Develops and operates the “Keigyo
Bank” media platform for enabling thecontinuation of regional occupations

Kokohore Japan builds new business models to enable the continuationof regional work that would have difficulty surviving in a society in which
economic rationality is given priority. “Keigyo Bank” arrangements havebeen established in five locations around Japan, including Mikasa Cityin Hokkaido, Nanao City in Ishikawa Prefecture, and Mimasaka City inOkayama Prefecture. In multiple regions, small-scale business operators
have used “Nihon Keigyo Bank” to search for heirs to take over thebusiness, and have subsequently succeeded in finding successors.

K.K. Next Commons Lab
Creation of new community economic
zones by developing union organizations
through the utilization of crypto assets

Next Commons Lab implements a mutual-aid type of social security in theform of a cooperative based on a vision of a world in which helping eachother, supporting each other, and investing in the future are all connected.
As part of that process, it seeks to form new kinds of self-government to
supplement and eventually replace the role played by our existing systemof administration.

Unnan Community High School
Consortium
Builds relationships that transcend
generations between local junior andsenior high school students and adults, bymeans of a helper app

UCHC seeks to build organic social capital that transcends generations
in order to increase happiness among local residents. Rather thanachieving happiness through transactions based primarily on exchangesof existing economic value, such as money, it aims to create a society inwhich happiness is based on relationships derived from contributions andconnections to others.

Makigumi LLC
Forming a gift economy platform tosupport the independence of young
creators

Makigumi gathers resources from donors with excess assets, and offers
an environment that provides housing and support for self-reliance inyoung people who aspire to a creative lifestyle. The result of creating
appealing living places in which people gather is the generation of assets
with investment value, which in turn drives local economies.

Application
information

Application
information
Application
information

Application“Keigyo Bank” editors
turn it into an article forwider consumption

Offline interactions forbusiness operators who are
not comfortable with theInternet

RegionSIIF
Comment

Municipality / chamber ofcommerce / cooperative / urban
planning organization, etc.

Source: Kokohore Japan KK

We support entrepreneurs who seek to generate a new typeof resource circulation in the regions
In order to propose new approaches to human interaction and economics thattranscend the existing capitalist economy, Hallucigenia Lab. provides assistanceto players in regional ecosystems while working to develop novel projects thatgenerate new types of resource circulation, such as “manpower,” “goods,” and“capital.” We provided four organizations with subsidies in 2020, and based on
the outcomes of that business development we subsequently made a further
direct investment in one of those organizations, namely Kokohore Japan KK.
Going forward we will continue to support Kokohore Japan’s management as ashareholder, while working with it to create ecosystems around the theme of thecontinuation of regional occupations.

Impact Officer
Kanafumi FURUICHI

16

2020 CASE STUDY ❺Creating knowledge

Social impact measurement/management
Measurements designed to grasp the qualitative & quantitative social impact generated
by projects and activities, and social impact management for the continuation of activities
that utilize these measurements to enhance social impacts. By engaging directly ininvestment and support activities, SIIF accumulates practical wisdom related to social impact
measurement and management, and develops knowledge based on what it learns.

Forming and disseminatingknowledge
We create knowledge based on what we learn from thepractice of social impact measurement and management,
and share it with other impact investors and entrepreneurs.
We also borrow ideas from cutting-edge global case studies
and make further use of these in our own practice.

“Impact Investing Roundtable” held by GSG-NAB Japan and the FSA

Practice
SIIF itself practices social impact
measurement and management throughthe fund it operates, in addition towhich it supports its introduction andimplementation at recipients of SIIF funds
and assistance. We provide support for arange of tasks, including the use of logic
models to visualize social impact, theselection of metrics used for devising social
outcomes, building internal structures toimprove outcomes, and creating reports torepresent social impacts.

Implementation of social impact
measurement and the publication of impact
reports at an investee of the Healthcare New
Frontier Fund
The Healthcare New Frontier Fund is a venture capitalfund that was established with the aim of extending
healthy lives (an initiative being promoted by
Kanagawa Prefecture) and resolving social problems
by creating new industries in the fields of preventative
measures to be taken before people actually become
ill, and of cutting-edge medical treatment. As well as
investing in this fund, SIIF implements social impact
measurement for all the startups in which the fund has
invested, and publishes annual reports summarizing
the outcomes. In 2020 we
implemented social impact
measurements for two
new investee companies
and 14 existing investee
companies, for a total of 16
firms.

An “Impact Investing Roundtable” aimed at those
involved in financial markets and governmental affairs
was held jointly by the Financial Services Agency ofJapan and the Japan National Advisory Board of the
Global Steering Group for Impact Investment (GSGNAB Japan), which is an organization that promotes
impact investing in Japan. As the secretariat of the
GSG-NAB Japan, SIIF is responsible for the planningand operation of the roundtable. Social impact
measurement and management was a topic of greatinterest for the investors participating in the roundtable.
In addition to sharing state-of-the-art case studies fromboth Japan and overseas, we discussed issues related
to the practice of social impact measurement andmanagement, and discussed the measures required toaddress them.

GSG IMM Working Group creates the first “Impact Measurement and Management Guidelines” in JapanThe IMM Working Group of GSG-NAB Japan has been working to refine discussions aimed at forming agreementon impact measurement and management among Japan’s impact investors. In fiscal 2020, we created Impact
Measurement and Management Rules (Guidelines) to be shared among Japan’s impact investors; a practicalguidebook for impact measurement and management that describes cutting-edge case studies from the field;
discussion papers aimed at overseas readers that include informationon the current state of impact investing and impact measurement andmanagement in Japan, the needs of practitioners, and the issues that theyface.

Practice of social impact measurement infiscal 2020
• Assisted in the creation of impact report for
ADDress Co., Ltd.
• Built social impact measurement techniques for
single mother support project• Assisted in the design of social impact
measurements for a social impact bond projectscheduled to be issued by the Ministry of Justice• Support for the dormant deposit accounts
utilization project, Hataraku FUND, Nippon
Foundation Social Change Makers program alumni
projects, and social impact measurement support
for the investee companies of Hallucigenia Lab.

17

18

Becoming a hub for exchanging practical wisdom between
Japan and overseas

Results of Activities in Fiscal 2020

Global partnerships

SIIF cooperates with organizations that are involved in the global promotion of impact
investing and social impact measurement/management, and in addition to communicating
the latest trends in Japan, it works to disseminate leading cases and knowledge fromoverseas within Japan.

GSG

GIIN

IMP

The Global Steering Group for
Impact Investment

The Global Impact
Investing Network

Impact Management
Project

The GSG is a global network, with 33 nations
plus the EU as members, which aims at
promoting impact investing in partnership withfinancial institutions, governments, internationalorganizations, businesses, and other entities
around the world.
Since it was first established, SIIF has
participated in Japan’s Global Steering Groupfor Impact Investment in its role as secretariat,
and SIIF Vice-chair of Executive Committee
AOYAGI is a member of GSG-NAB Japan.

An organization dedicated to increasing thescale and effectiveness of impact investing
established in 2009 by a group of investors. The
GIIN builds critical infrastructure and supports
activities, education, and research that help
accelerate the development of a coherent
impact investing industry.
SIIF participates in working groups as amember of the GIIN, and extends invitations
to the GIIN to attend other conferences andgovernment-sponsored study meetings inJapan.

IMP is an international initiative that, since2016, has been providing a forum for building
global consensus on measuring, managing
and reporting impacts on people and theenvironment. It convenes a community of over
2,000 practitioners to share best practices
related to impact management, delve into
technical issues and identify areas where
further consensus is required.
IMP also facilitates standard-settingorganizations that, through their specific andcomplementary expertise, are coordinating
efforts to provide comprehensive standards
for impact measurement, management andreporting. The IMP is a time-bound global public
interest project, funded by a diverse group ofdonors from Europe, the US and Asia.
SIIF works with the IMP as a strategic partner topopularize impact management in Japan.

AVPN

RPA

Asian Venture
Philanthropy Network

Rockefeller Philanthropy
Advisors

Founded in 2011, AVPN is a non-profit
organization that promotes the developmentof social investment and venture philanthropy
in Asia through a membership network of over
600 foundations, corporations, intermediaryorganizations, investors and HNWIs. We
support the formation of collaborative projects
among member organizations in various
sectors, introduce organizations to each other,
provide opportunities for knowledge sharing
and fellowships, manage projects, and conduct
research and studies.

Rockefeller Philanthropy Advisors is a nonprofit
organization that currently advises on andmanages more than $400 million in annual
giving by individuals, families, corporations andfoundations. Continuing the Rockefeller family’s
legacy of thoughtful, effective philanthropy,
RPA remains at the forefront of philanthropic
growth and innovation, with a diverse team ofexperienced grantmakers with significant depthof knowledge across the spectrum of issue
areas. Founded in 2002, RPA has grown into
one of the world’s largest philanthropic service
organizations and has facilitated more than $3
billion in grantmaking to more than 70 countries.

Participation in Impact Frontiers, operated by
IMP and the Bridges Impact Foundation
Impact Frontiers is a comprehensive framework for understanding impact as well as financial
risk and return, being collaboratively developed by investors worldwide. Impact Officer
Yuya KATO, who is responsible for Hataraku FUND, participates on behalf of SIIF. Overthe next two years, we will use the model impact investing projects in which we have been
involved as a basis for a comprehensive understanding of the economics and the impact of
our investment portfolio as a whole and for individual investments, thus contributing to thedevelopment of practical techniques that can be used for setting targets, making investment
decisions, monitoring, and reporting.

Participation as an advisor in GSG headquarterssponsored working group
Impact officer Michiru TODA is participating on behalf of SIIF in one of the working groups
sponsored by the GSG headquarters, “Mainstreaming Outcome-Based Finance.” This working
group is working to organize and simplify categories of outcome-based finance, with theobjective of promoting its popularization in the public sector. In February 2021, the results ofthese activities were summarized in guidelines under the title “Tying funding to results.” As partof these activities, we gave a talk on this theme at the GSG Global Impact Summit 2020, held
on September 2020.
This same talk, given at the GSG Global Impact Summit 2020, led to SIIF’s General Manager
of Projects, Fumi SUGENO, participating in the GSG headquarters-sponsored “Narrative
Working Group.” To enable discussions in a common language around such subjects as“impact,” “impact investing,” and “how it differs from an ESG investing,” this working group willdevelop and disseminate definitions, examples of usage, and communication tools such as
vocabulary maps.

Numerous SIIF team members involved in development
interviews for GIIN Impact Performance initiative“IRIS+” is an impact measurement tool for investors that is widely used by global impact investors. IRIS+ consists of impact
metrics organized by theme, and Hataraku FUND team members and SIIF’s Michiru TODA participated in the development
process for priorities in the “Quality Jobs” theme. The finalized set of priorities, which impact investors such as SIIF teammembers provided input, is available for installation within the IRIS+ framework.

Participation in the IWAI closed consultation series
Impact Officer Yuko KOSHIBA participated in the Impact Weighted Accounts Initiative (IWAI)
on behalf of SIIF in Japan, as a practitioner in impact investing and ecosystem builder. This
project, led by GSG and Harvard University, seeks to create a system for converting thesocial and environmental impacts generated by a company into monetary values that can beincorporated into the financial statements.

19

20

Financial status

Organizational Summary

Practical Knowledge of the "New Economy"
NeededNow More Than Ever
Organization
SIIF: Japan Social Innovation and Investment Foundation
nameJapan Social Innovation and Investment Foundation [SIIF]

I am pleased to present our Annual Report 2020 todeposits. In the field of impact investing, as a
6F M-City Akasaka 1-chome Building, 1-11-28 Akasaka, Minato-ku Tokyo 107-0052, Japan
our stakeholders.
pioneer in Japan, we made two new investments
Date established September 2018
in Hataraku Fund, published an impact report, held
History
2013 was
Thean
NipponFoundation started
to engagesocialimpact investment
in Japan
Fiscal year 2020
unprecedented
year
in in research to promotea studysessionon impact
investing jointly with the2014	A social investing promotion office was set up within The Nippon Foundation, and The Nippon Foundation and its partners represented
which the emergenceofanewcoronavirus
forcedFinancial
Services
AgencytheInvestment)
secretariat of theJapan on the G8 Social Impact Investment Taskforce (GSG; now the Global Steering Group for as
Impactall social activities
toThebeNippon
scaleddownhosted
or suspended.
Domestic
Advisory
andprepared	Foundationa secretariat managing theGSG
strategic
and day-to-day
activitiesCommittee,of the GSG Japan
National
Advisory
Board
Not only in Japan, but
all over the world, a variety ofguidelines for implementing impact investing.
2015
Start of SIB pilot projects in Yokosuka, Amagasaki, and Fukuoka Cities
problems became
aspectsof society,Initiative (SIMI;
Asnow
forthesupportfor social
entrepreneurs,
for the2016 apparent
Founding of in
theallSocialImpact Measurement
Social Impact
Management
Initiative)
including politics,
economics,
education,andculture.
yearinitiatives,in a row,we wereselecteda fund2017	In order to further
accelerate thesocialimpact investment second
market building
foundedJapan Social
Impactas
Investment
Foundationvarious(SIIF)At the same time thatproblems became
distributing organization for the Dormant Deposit
Start of first, full-scale Japanese SIB projects in Kobe and Hachioji
apparent, it was
the yearin thethatHealthcarevariousNew
attempts
2018 also
Participated
Frontier Fund initiated Utilization
by Kanagawa Project,
Prefecture and provided subsidies andto overcome 2019	these issues
began.
of themmanagement
supportto impact
entrepreneurs
engaged in
Set up andmanagedSome
jointly with
Shinsei have
Corporate Investment
and Mizuho Bank
the social
investment fund	
the Institutefor the Advancement
and renamed ourselves
as thealso
Socialprovided
Innovation and
Investment
already achieveda Mergedcertainwith
levelof success,and it of Social Innovationsocial businesses.
We have
capitalFoundation
can be said thatthere
is a alliancebright concluded
hope forwith
thefuture. Philanthropyinvestment
subsidiesto entrepreneurs
who2020	
Business
Rockefeller
Advisors, one ofandthe largest
philanthropic
advisors in the U.S.
fromthe selected
NipponsixFoundation
Social in
As an Organization Distributing Funds under the dormant havedeposit graduatedaccount utilization
system,executing organizations
2019 offor the“Project tothere
supportisgrowth of social businesses
for revitalizing Program,regions”
Looking back at thefiscal
history
mankind,
Changemakers
management support, andBegan investing in and supporting three alumni companies of the Nippon Foundation “Social Change Makers” programno shortage of caseshave(with
ledSIIF acting as secretariat)
supportplanning
implementing
new events
initiatives
Thewhere
FSA anddisasters
GSG-NAB Japan
beginforholding
joint heldand“Impact
Investing Roundtable”
on
to social changes. Major
to solve social issues in each region.
alternatecrises
monthshave always led
Hallucigenia
is held with
objective of building newIn
mechanisms
resource
to innovative changes,
and itLab.
is thanks
to thethese
addition,forwe
havecirculation
been finding and funding social
Began investing in and supporting the “ADDress” co-living service, which utilizes unoccupied housing to allow members to enjoychanges that humanity
has
been
able
to
overcome
entrepreneurs
whoareplanning new initiatives toresidency across multiple locations
its difficulties. In otherwords,
that weare facing
solveofsocial
in theirrespective
andtheSelected
as annow
Organization
Distributing
Funds for the “Solution
Regionalissues
Issues throughCollective
Impact” regions,program underdepositaccountutilization
system for fiscal 2020 providing them with our own management support.
the unprecedented dormant
situationof theCoronadisaster,I think we can say that we are at a historical turning
As government spending continues to grow, thepoint.
Foundation is actively supporting companies that
Chairof Executive Committee
Shuichi OHNO
provide innovative services and platforms that
Vice-chair of Executive Committee
Mitsuaki AOYAGIThe mission of the Foundation for the Promotion
contribute to reducing public costs.
Member of Executive Committee
Nanako KUDO
of Social Change (SIIF) hasYoshinobu
been toTAKAISHI"create asystem for the circulation of social and economic
The Foundation will create new model projects in
Director
Takuya OKAMOTO[President & CEO, Chitose Kensetsu, Inc.]
resources that goes beyondOsamu
the frameworkofselfwhich resources such as funds, human resources,
KANEDA[Founder & CEO, Yo-ren Limited]
help, public assistance, andShunichimutualNAGATA	aid, with the[Director,
aim Trust Museum,and knowledgein pursuitformerof whatis
Mitsubishi UFJ are
Trustcirculated
and Banking Corporation;
Chairman,
Deposit Insurancegood
Corporationof Japan] and will make its own investmentsof creating a society in which the resolution of social
for society,issues and the creation of diverse
values can occurthat will
AuditorYumiko IGARASHI[Attorney at Law, Igarashi
Lawserve
Office] as a catalyst for such projects, whileautonomously
andsustainably.
spreading
the Instituteexamplesto moreCouncilors
Hiroko OTA	[Senior Professor, National Graduate
for Policy
Studies;collaborators.
Vice Chairman, the Japan
Productivity Center]In addition, by creating an environment for the
Takejusociety,
OGATA is facing[President, The Nippon
Foundation]
Japan, the world's fastest aging
expansionand development of model projects
Yuko KAWAMOTO	[Professor, Waseda Graduate School of Business and Finance, Head of the Waseda University
major structural problems such as the exhaustion
through
research
Institute of Governance & Sustainability] and policy proposals, we aim to
KITAGAWA	[Professor Emeritus,
WasedaAdvisor,Waseda University
ResearchinInstituteof medical and nursing careMasayasu
systems,
child
build
an University;
ecosystemof resource
circulation
whichofpoverty, economic decline in rural areas and theManifesto]
the resolution of social issues and value creation can
Hiroyuki SHIBATA[President & CEO, Shinkin Central Bank]
disappearance of communities.
that it has [Former Chairman,occur
autonomously
and sustainably.
Ryoki Now
SUGITA
Nikkei Inc.;
Advisor, Japan Center
for Economic Research]
Tsuyoshi TAKAGI
become clear that the government
redistribution[Adviser, Japanese Trade Union Confederation (Rengo)]
TAKAHASHI[President, Japan It
Philanthropic
Association]model built during the periodYoko
of higheconomic growth
is my hopethat this annual report will help readers
Akihiko TANAKA[President, National Graduate Institute for Policy Studies]and premised on economic Hironori
growthTARUMI
cannot cope [Professor,
withattainabetterunderstandingof SIIF, and encourage
Faculty of Law, Hokkai-Gakuen
University]these issues, we need to redefine
Yasutakethe
TANGO	boundaries[Chairman of the Board,
their Japan
continued
Tobacco,support
Inc., Former
going
Administrative
forwards.
Vice Minister of theof Finance]
between the public and private sectors and buildMinistryaYuri NAKAE[Actress, writer]
new social system. One of themajor
keys to social
Masahiro
FUTAHASHI[Chairman, Japan Center for Local Autonomy; former Deputy Chief Cabinet Secretary]systems will be the creationTsutomu
and reconstruction
HORIUCHI	of[Professor, Center for Social Investment of Tama University; former CFO, Mori Building Co.,mechanisms that visualize, value, and circulate Ltd.]not
Yoshinori ISOZAKI
only economic capital, but also capital from nature,
AdvisorMariko BANDO[Chancellor, Showa Women’s University]
society, culture, and sensitivity.
Address

Looking back on fiscal 2020, we were able to achieve
many results in the areas of impact investment andsupport for social entrepreneurs using dormant
Organizational summary and officers, etc. valid as of March 31, 2021.

121

Net Assets Variation Statement

Balance sheet

I Change in general net assets

I Assets

1. Change in ordinary revenue/expenses

1. Current assets(1) Ordinary revenue

Total current assets …………………………… 127,247,651

Total ordinary revenue ……………………… 534,810,894(2) Ordinary expenses(1) Endowments

Operating expenses ………………………… 396,495,007
Total administrative expenses ……………… 103,181,368
Total ordinary expenses ……………………… 499,676,375
Current change in ordinary revenue/expenses before
adjustment by appraisal gain or loss

2. Fixed assets

Total endowments …………………………… 10,000,000(2) Designated assets
Business management equalization fund30,000,762

Social transformation promotion business fund…………… 35,134,519……………………………………………… 264,216,892

Current change in ordinary revenue ……… 35,134,519

Social transformation project assets …… 143,868,638

2. Change in extraordinary revenue/expenses

Dormant deposit project assets ………… 218,525,246(1) Extraordinary revenue

Funds, etc. surplus ……………………… 91,333,323

Total extraordinary revenue ……………………………… 0(2) Extraordinary expenses

Marketable securities …………………… 369,694,857
Fixtures and fittings ………………………… 1,824,015

Total extraordinary expenses ………………… 7,359,478
Change in current extraordinary revenue △ 7,359,478

Equipment attached to buildings
Rental deposit………… 9,950,576…………………………… 27,156,480

Current change in general net assets before taxes

Total designated assets ………………… 1,156,570,789……………………………………………… 27,775,041

Total fixed assets ………………………… 1,166,570,789

Income taxes …………………………………… 70,000

Total assets

Current change in general net assets……………………………… 1,293,818,440… 27,705,041

Opening balance of general net assets …… 6,277,943
Closing balance of general net assets … 33,982,984

II Liabilities
Total current liabilities ………………………… 86,037,667

II Change in designated net assets

Total non-current liabilities ……………………… 7,227,000
Total liabilities ……………………………………… 93,264,667

Dormant deposits and other subsidies ……… 155,256,788
Private subsidies received …………………… 552,740,000
Total subsidies, etc., received …………………… 707,996,788
Appraisal gain or loss on designated assets…… 657,705

Transfer to general net assets
Transfer to general net assets

III Net assets
1. Designated net assets
Dormant deposits and other subsidies …… 163,525,246……………△ 507,669,472

Private subsidies …………………………… 997,090,166

Current change in designated net assets …… 200,985,021

Contributions …………………………………… 6,218,500

Opening balance of designated net assets … 965,585,768

Appraisal gain or loss on marketable securities

Closing balance of designated net assets

1,166,570,789……………………………………………… △ 263,123
Total designated net assets ………………… 1,166,570,789
2. General net assets ……………………………… 33,982,984

III Closing balance of net assets

Total net assets ……………………………… 1,200,553,773
1,200,553,773

Total liabilities and net assets ……………… 1,293,818,440

Chair of Executive
Committee, SIIF
Supported by
Shuichi OHNOThe operations of the Foundation are implemented withthe assistance of subsidies from the Nippon Foundation.

April 1, 2020 to March 31, 2021 (Units: yen)

As of March 31, 2021 (Units: yen)22