I M P A C T

I N V E S T M E N T

R E P O R T

2 0 1 9Proposal for the Expansionof Impact Investing

Executive Summary
April 2020 （Revised Version：February 2021）

About this Report

This report is a summary of the “Proposal for the Expansion of Impact Investing 2019” published by the GSG
National Advisory Board (details on the reverse side) in April 2020.
“Proposal for the Expansion of Impact Investing 2019” is a report on the “present” and “future” of impact
investing in Japan.
The report is a sequel (as 2019 edition) to the Proposal for the Expansion of Impact Investing 2015, published by
the GSG National Advisory Board in 2015.
The report describes domestic and global changes in impact investing over the past five years. It also summarizes
the following points:- key initiatives for the development of impact investing in Japan- actions required of each entity
The full text of the proposal is available on the GSG National Advisory Board website. Please visit our website.
Separately, the GSG National Advisory Board also publishes a variety of reports, including the estimations of thedomestic impact investing market and proposals on social IPOs. Please refer to them as necessary.

Researchers andauthors of this report

Members of the Proposal Working Group, GSG National Advisory Board
Masataka Uo, President, Japan Fundraising Association
Tomoya Shiraishi, Board Member, Social Investment Partners
Authors
Eri Mizutani, Representative Director, Kazetotsubasa Co., Ltd.,
Secretariat of GSG National Advisory Board
Proposal examination, Secretariat
Nanako Kudo, Member of Executive Committee,
Japan Social Innovation and Investment Foundation
Fumi Sugeno, Manager, Japan Social Innovation and Investment Foundation
Yuko Koshiba, Impact Officer, Japan Social Innovation and Investment Foundation

I.

Overview of Impact Investing

Impact investing is defined as investment behaviors whichsocial issues, and that investments are made while conduct-

attempt to solve social and environmental issues while

ing so-called “social impact measurement” , that is by under-

seeking economic returns.

standing social impact generated through projects and activi-

Traditionally, value judgement of an investment has been con-ties and adding a value judgement.

ducted based on two axis: “risk” and “return” . Impact invest-

In some cases, economic returns may be above, equal to, oring, which incorporates the third axis of “impact” , intends tobelow the prevailing market rates. However, it distinguishesbalance both social and economic returns by understanding

itself from activities such as donations, grants, subsidies, andsocial and environmental changes and effects that occur as aventure philanthropy that do not aim for economic returns inresult of projects or activities.

the sense that it intends to balance both social and economic

Impac t investing is charac ter ized by that it aims to solve

values (Figure 1 and Figure 2).

Figure 1 | Definition of terms
Term

Definition

ImpactInclusive of both short-term and long-term, social and environmental changes or effects as aresult of specific projects or activities.

Social impact measurement

To understand social impact through quantitative and qualitative approaches and make avalue judgment of specific projects or activities.
Investment behaviors which attempt to solve social and environmental issues while seeking economic returns. All forms of financial transactions that seek financial returns including equity and bondImpact investing

investment, loans, lease are considered investments. Donations, subsidies and grants are excluded.

Figure 2 | Overview of impact investing
Impact investing

ESG investment
General investment(Negative screens)

Financial Only

Responsible

General donations(Positive screens)

Sustainable

ImpactImpact Only

Investing in projects that can generate market competitive financial returns
Investing in and providing financial support, with consideration for environmental, social, and governancefactors as well as risk mitigation
Investing in and providing financial support to projects that actively work on
environmental, social, and governance issues
Investing in and providing financial support to projects that aim
to solve social issues and have a measurable social impact
Market competitive economic
returns
Economic returns below
the market rates
Social returns only withno intention of seeking
economic returns- Conventional
investment stylethat seeks
economic returns- No active interestin environmental,social, andgovernancefactors- Investment stylewith considerationfor environmental,social, andgovernance factors
as well as risk
mitigation, from not
only a financial
perspective but
also theperspective of notdamaging
corporate value- Investment stylethat placesemphasis onenvironmental,social, andgovernancefactors from theperspective ofimproving values- Generate market
competitive
economic returns
for investors whileproviding themwith social returns
at the same time

- Generate
economic returns
while providing
social returns at
the same time
- Economic returns
may be below theprevailing market
rates- Generate
economic returns
while providing
social returns at
the same time
- Economic returns
are below theprevailing market
rates- Support solvingsocial issues.
No intention ofgenerating
economic returns
for investors.

(Sources) Created by the author based on the G8 Social Impact Investment Task Force (2014) “Allocating for Impact”

01

II.

Expansion of Impact Investing

1. Global
The global impact investing market size is estimated to have reached

acc eleration of discussions toward the promotion of innovative

USD 502 billion in 2019. The impact investing market has grown

financing mechanism.

tremendously over the past few years with the number of related
financial products being on the rise (Figure 3).

In the G20 Osaka Summit held in June 2019, reference was made in
the Prime Minister’ s speech to Japan’ s initiatives in the promotion of

Expectations in the international community are also growing. Accelerating the inflow of private funds is imperative to achieve the SDGs.
This indicates that it is essential to shift from conventional investments that only pursue economic rationality to investments that are inconsonance with respects for the global environment and humanrights. In that sense, impact investing can play a significant role.

impact investing.
Global issues including climate change, closing gender gaps, andfinancial inclusion have driven growth in the ESG investment sectors.
For institutional investors, consideration for the social aspects offinance is becoming a matter of course. The environment for thegrowth of impact investing is being developed, and the market is

Over the past few years, international organizations including the IFC

expected to grow even further.

and UNDP have also actively worked on impact investing. Within theG20 countries, as well, signs of change have appeared, including1.

Impact investing
market size

Expanding impact investing market

Estimated USD

502 billion

Western, Northern,& Southern Europe
21%

Eastern Europe, Russia,& Central Asia
1%

Middle East &North Africa
1%

East Asia
2%

U.S. & Canada
58%
Latin America & Caribbean(Including Mexico)
4%

No Single Headquarter Location
1%

South Asia
3%

Sub-Saharan Africa
6%Southeast Asia
2%

Oceania1%n=1102; excludes organizations for which headquarters location was unknown

Figure 3 | Organizations that work on impact investing (headquarters location)

02

1

G20 Osaka Summit, the leaders’ declaration

2

Prime Minister’s Office website

https://www.g20.org/jp/documents/ﬁnal_g20_osaka_

https://www.kantei.go.jp/jp/98_abe/statement/2019/06

2.

Background and factors of growth
There are several backgrounds and factors that contribute to the growth of impact investing. Here, the following
five main points are discussed.

1

Need to address climate change-

2

New trends in gender investment
-

3

-

-

-

Knowledge on social impact measurement has matured and developed over the past decade, with the accumulation ofknowledge including principles, indexes, and cases.
International initiatives are developing, with the birth of The Impact Management Project (IMP) in 2018 in which nineorganizations including the UNDP, IFC, OECD, PRI, and GSG participate.

Growth in the overall ESG investment sector-

3.

It is said that achieving the SDGs will require USD 5 to 7 trillion in investment each year, thus accelerating the inflow ofprivate funds is essential.
The International Finance Corporation (IFC) released the Operating Principles for Impact Management on social impact
investing. The OECD set out to promote impact investing, and the SDGs Impact was launched at the UN General Assemblyin 2018.
In the private sector, financial products including green bonds, water bonds, vaccine bonds, and microfinance bonds arealso expanding.

Maturation of Social Impact Measurement-

5

Gender-lens Investing, which actively promotes improving women’s financial access, poverty reduction, and empowerment,
is gaining global attention.
Movements to use impact investing to support women’s entrepreneurship, financial inclusion, and their economic andsocial empowerment, including JAPAN ASEAN Women Empowerment Fund and Investing in Women (Australia) are
spreading.

Connecting to the SDGs and the development of the framework in the international community-4

As climate change becomes a reality from threat, it has been widely recognized that the acceleration of climate change will
destabilize companies’ business environment, which will damage investment returns.
Investors have increasingly engaged not only with companies but also governments and international organizations. Suchinvestors’ behavior is driving a shift in the way finance works at an unprecedented speed.
Attempts to properly reflect risks to the market to eliminate factors which destabilize finance, including increased
disclosure of climate-related financial information, are also spreading.

The market size of ESG investment has grown to USD 30.7 trillion: a 34% increase over the past 2 years.
With the spread of ESG investment, interest in the social aspect of finance has increased, backed by the global agreementand demand for achieving the SDGS.

Movement of the international community
G20 Osaka Summit-

In the G20 Osaka Summit held in June 2019, reference was made in the leaders’ declaration to “innovative financing
mechanism.” 1-

In addition, Prime Minister Shinzo Abe declared in his speech in the session 3 of the Summit that “Japan will lead theinternational discussion on impact investing and utilizing dormant bank accounts. ” 2

Figure 4 | Reference to innovative financing mechanism in the leaders’ declaration at the G20 Osaka Summit
G20 Osaka Summit Leaders’ Declaration
Realizing an inclusive and sustainable world
Development
We recognize that international public and private finance for development as well as other innovative
financing mechanisms, including blended finance, can play an important role in upscaling our collective
efforts.
(Source) G20 2019 OSAKA website

Figure 5 | G20 Osaka Summit Speech of the Prime Minister Shinzo Abe in Session 3
Session 3 “Addressing Inequalities, Inclusive and Sustainable World” (held on June 29, 2019)“Science, Technology, and Innovation (STI) are crucial for realizing SDGs. Japan will widely share thebasic concept for the development of the STI for SDGs Roadmap, newly agreed upon at the G20. In addition, Japan will lead the international discussion by examining ways to employ diversified and innovative
financing schemes including social impact investing and utilizing dormant bank accounts for financing
necessary to address global issues.”(Source) Prime Minister’s Office website

03

2. Japan
1.

Expansion of impact investing market
The impact investing market is also growing in Japan. The invest-

This increase is largely due to an increase in the number of orga-

ment balance of impact investing in Japan is estimated to be JPY

nizations that newly work on impact investing. Specif ic ally,

317 billion in 2019 (Figure 6).

entities including investment management companies, insurancec ompanies, and f inancial institutions have entered into theimpact investing market. On the other hand, there are also cases
in which organizations that had already entered the market andhave steadily increased their funding amount and performanceby accumulating impact investing of several hundred million yen.

Figure 6 | (Estimated) impact investing balance in Japan ³

Total cumulative investment
balance
Number of organizations who
responded to the questionnaire

2016

2017

2018

2019

JPY 33.7 billion

JPY 71.8 billion

JPY 344 billion

JPY 317 billion

21

24

20

16

(Source) GSG National Advisory Board (2019)2.

Diversified cases
With the expansion of impact investing market, cases are diversi-

also increasing, with major f inancial institutions entering as

fying. For example, social impact bond (SIB), which had only 2

investors (Figure 7).

pilot projects at the time of issuance of the last proposal, had 12
projects launched as of 2019 that were known, with about 20
projects under consideration.
New entry into the impact investing market by private investors is

As a result of the entry by various entities such as institutional
investors, investment management companies, and venture capital firms, the impact investing market is becoming more diverse(Figure 8).

Figure 7 | Launch of SIB

Number oflaunch:about

Chugokuregion20

City, Ehime● SaijoPrefecture

Prefecture● OitaOptimization of drug

●

●

●

prescription
Omuta City, Fukuoka
Prefecture
Restraining thedegradation of healthconditions of patient
who needs care
supportKoshi City,
Kumamoto Prefecture
Preventive care

Promotion of cancer
screening
Okayama City
Kenko (Health) point

ShikokuregionCity● Fukuoka
Optimization of drugprescription

Sapporo City, Hokkaido● SIB
project composition

cities in Hiroshima● 6Prefecture●
KyushuregionHokkaido

Community businessentrepreneurship support
Mima City, Tokushima
Prefecture
Improving physicalfunctions of people

led by the Ministry of● Projects
Economy, Trade and Industry
Projects
led by the Ministry of● Health, Labourand Welfare● Projects led by the Cabinet Office● OthersurveyKanto
regionCity, Tokyo● Hachioji
Promotion of cancer screening
City, Kanagawa Prefecture● Yokohama
SIB project composition survey
City, Tokyo● TamaPrevention of severe diabetic nephropathy●●

and other serious diseases in cooperation
with pharmacies
Sakura City, Chiba Prefecture
Support the needy to obtain employment
Ina City, Nagano Prefecture
Prevention of lifestyle-related diseases

Kinki
regionCity, Hyogo Prefecture● KobePrevention of severe diabetic●●●

nephropathy and other serious
diseases
Higashiomi City, Shiga Prefecture
Community business entrepreneurship support
Osaka Prefecture
Promotion of registration of foster
parents, Free school
Tenri City, Nara Prefecture
Prevention of severe dementia

City, Osaka Prefecture● Toyonaka
Support to quit smoking
City, Osaka Prefecture● IkedaOperation of a free school
City, Osaka Prefecture● Sakai
Preventive care
City and 2 local● Kawanishi
governments, Hyogo Prefecture
Health promotion program³For figures in 2014, re-examined figures are used. For more information, see G8 National Advisory Board (2016), p.37. No survey data available for 2015.

04

Figure 8 | Examples of impact investing in Japan launched since 2015
Description

Year

Month

2017

January

Shinsei Corporate Investment
Limited- Established the Child-care Support Fund (Japan Impact
Investment I Limited Partnership)- Fund size: JPY 500 million

October

The Dai-ichi Life Insurance
Company, Limited- Invested JPY 400 million in Gojo and Company, Inc.
- Since then, invested about JPY 2.5 billion in a total of 8 companies

2018

2019

Executing entity

November The Sasakawa Peace Foundation- Announced the establishment of The Asia Women Impact Fund

June

Crowd Credit Inc.

- The Social Impact Investment Declaration. Structured and soldmultiple investment products.

July

Plus Social Investment- Launched a social investment platform, en.try

October

Nomura Asset Management Co., Ltd.

- Nomura ACI Advance Medical Impact Fund

June

Shinsei Corporate Investment
LimitedJapan Social Innovation and
Investment Foundation
Mizuho Bank, Ltd.

- Established Japan Impact Investment II Limited Partnership(Sources) Created by the author based on published materials

3.

Developing an environment that supports the growth of impact investing market
The following changes should be noted for the development of the impact investing market. Proactive actions by the public and private
sectors as well as catching up with the international trends are essential for the impact investing market to further grow and mature.

1

Proactive initiatives by the Japanese government-2

Accelerating growth in ESG investment-

3

There are many signs of change including the launch of a platform for green bonds and social bonds at domestic stock
exchange, establishment of the SDGs promotion roundtable, and initiation of discussions on the composition and sales ofimpact investing-related products at the Japan Securities Dealers Association.

Development of Social Impact Measurement-

5

The Government Pension Investment Fund (GPIF), the world’s largest institutional investor, has accelerated efforts for
ESG investment, with signing the UN Principles of Responsible Investment (PRI) in 2015.
These efforts by the GPIF are driving changes in the behavior of domestic institutional investors.

Changes in domestic organizations-

4

Efforts to take the initiative in the international community are underway, based on the leaders’ declaration and Prime
Minister’s speech (see p.4 for details) at the G20 Osaka Summit.
In the “Expanded SDGs Action Plan 2019”, the government declared that it would lead the public opinion of the international
community in closing financial gap to achieve SDGs.
In response to this, proactive efforts are being made including the establishment of “Round Table Discussion of Advisory
Panel to Discuss New Ways of Financing to Meet the SDGs” in the Ministry of Foreign Affairs of Japan.
Regarding the SIB, further expansion was declared and proposed in the “Basic Policy on Economic and Fiscal Management
and Reform 2018”, “Future Investment Strategy 2018”, and “Basic Policy for Town, People, and Business Creation 2019”, andother policies.

Social Impact Measurement Initiative was launched in June 2016. It continues to evolve by consolidating domestic andinternational knowledge.
Examples of social impact measurement have also become broader and deeper with the expansion of practices of impact
investing.

Development of efforts to utilize dormant bank accounts-

Efforts on dormant bank accounts have made significant progress over the past few years.
The initiative is now moving into the implementation phase, following the enactment of the Act on Utilization of Funds Related
to Dormant Deposits to Promote Public Interest Activities by the Private Sector in December 2016, and the establishment of
the Council for Utilization of Dormant Deposits in spring 2017.

05

III.
1.

Future of Impact InvestingThree shortfalls around impact investing
The following three shortfalls must be resolved to further develop impact investing (Figure 9).

Figure 9 | Three shortfalls around impact investing● Lack of recognition among the general public● Lack of recognition and understanding● Lack of conceptualization andamong financial institutions● Lack of understanding of changing

sharing of impact investing

perceptions of institutional investors● Lack of established impact● Lack of awareness and understanding of the1measurement methods anddissemination and use

social impact and potential power ofinvestment● Lack of international framework,

coordinated actions, andinstitutional improvement by thegovernment● Lack of entrepreneurial literacy● Lack of understanding of Japan’s current
situation

Lack ofrecognition andunderstanding● Lack of integration into thecapital market

23● Lack of targeted investment● Lack of personnel to find andLack of social
infrastructure

Lack ofplayers

foster targeted investment● Lack of entrepreneurial
literacy● Lack of investor’s entry● Lack of personnel who candesign new financial products

L a c k o f e x a m p les o f im p act in vestin g

06

2.

Required ecosystem for impact investing
In order to change three “shor t falls” to “enhanc ement ” andThe f igure below visualizes player s in the impac t investing

increase the number of examples, it is essential to enhance andecosystem and image of their expected roles. The enhancement

develop the ecosystem for impact investing.

of each of these players both quantitatively and qualitatively isessential for the development of impact investing.

Figure 10 | Ecosystem and players of impact investing, and image of their expected roles● Angel investors● Individual investors(affluent)● Individual investors(general)● Financial institutions● Institutional investors(pension funds, insurancecompanies, etc.)● Foundations● Incubator● Accelerator● Industry support

Investment in financial products

organizations● Mentoring staff including
senior entrepreneurs● Professional staff
including lawyers andaccountants● Designers, engineers

Investors

Providing financial support based on risk tolerance(including techniques other than investment)● Assessment bodies,academic institutions● Foundations

Discovering entrepreneurs withgrowth potential

Financialintermediaries

Non-financial
intermediaries● VC firms/fund managers● Securities companies● Megabanks● Regional financial
institutions● Type II financial
instruments business
operators

Development of financial products

Mentoring

Sales and brokerage of financial products

Formulating strategies for business growth

Execution of investment

Organizing
Governance

Investees

Business matching
Raising the top line in sales
Organizing financing assessments and needs,
presentation of available options and portfolio design● Companies● Social entrepreneurs

Disseminating information

Business creation

Measurement

Scale up and scale out

Market formation
Building
foundation forgrowthNational and local● governments
Universities and● academic
institutions● Media

Rule making
Presenting cases
Training
Education
Proposing policies and measures, institutionalization

07

IV.
1.

Proposal for the Expansion of Impact Investing

Realizingsustai n

Three shortfalls around impact investing
The figure below shows the Theory of Change (ToC) for

Here, the GSG National Advisor y Board at tempts tothe development of impact investing, created by the GSG

formulate a hypothesis, organizing the efforts required

National Advisory Board (Figure 11).

for the development of impact investing and their causal
relationships.

ToC is a framework used to discuss how to invest limited
resources, how to utilize external resources, and withwhom collaboration is required, based on a structural
understanding of social issues.

Figure 11 | Theory of Change for the development of impact investing

Proble m- The GSG National Advisory Board aims at “realizing a new model of capitalism thatis sustainable and full of challenges and possibilities” through the development of
impact investing.
- Impact investing is an effort that internalizes various effects and values including
reducing the burden on global environment, correcting disparities, respecting humanrights, and encouraging the rebuilding of communities.

Resou- The GSG National Advisory Board, together with various stakeholders, aims toachieve those social values and renew capitalism itself through the power of finance,
thereby improving the sustainability of society as a whole, enabling various entities
to realize the power of finance to solve issues, and changing the way finance works.

An ecos

Funds originating from impact
Funds originating
investing from impact investingEnt icare diversified and sufficiently
are diversified
flowing and sufficiently flowing
back into the market.
back into the market.

A

BA

CB

Investors provide

Investors
provideVariousfinancial

suf ficient funding forsuf ficientfunding for impact
products
are well
products
investing,are well

impact investing.

impactprovided
toinvesting.
the market.

DC

Channels
Variousfor
financial
entr y into

Investors
are forwellentr y into AbInl
Channels
informedeach
impactabout
investing,oppor tunities, are wellne ascandopporimpact.
otunities, are well gr an

prepared.

prepared.

2

2

3

1
08

su inpof risks,
returns,
includingprovided
investment
to the market.aspectincludinginvestment3

An i nEfforts necessary to establish an ecosystem for impact investing
1

Improving investment literacy

2

Expanding financial products and financing channels

3

Enhancing the provision of information to investors and promotingchanges in investors’ behavior
Creating opportunities for entities to grow and enhancing organizations and institutions that support them

4

glism
a new
that modelisof capitalism that is
nges
and
nable
and full of challenges andpossibilities

5

Establishing and spreading methods of social impact measurement

6

Enhancing conceptualization of impact investing and maintaining
its quality
Creating a framework for social implementation and dissemination

7
8

Enhancing links among various players and promoting community
buildingation
e m solving
areand value creation are
constantly attained.

Ultimate outcome

osystemu rces that support the ecosystem
continue to flow back.

Final outcome

g on
ystem
impactof players working on impact
investing is formed.

Outcome 1

8g itiessocialworkingissues onandsolving social issues
Socialandinfrastructure necessaryforSocial infrastructurenecessary for
ratinga positive
the growth of impact investing
is of impact investing iscreating
value are generating a positive
the growthociety. impact in the society.
well established.
well established.

7

7

FE

GF

HG

IH

Both the government
Impactinvestinghas
investingb leto accessImpactmeasurement
Impactmeasurementct
investingis toImpactinvesting isandImpactprivatesector has
beenconceptualized
been theirconceptualized
deepenunderuedpport
functions
methods
havebeenofmethods
have been
as oneofutilized
as oneof the social
a common and are wellstanding
and a common
ecing
cessary
fornecesbusinessestablished
are wellmeansfinancingand
means
neces- andestablishedand policy significancehas
been
understanding has beenutilizedutilized in thecapitalorowth.
the businesssar y inforthethecapitalbusiness understandingof impact investing andcreated.
market.
market.
h.
grow th.
thecreated.
need to promote it.

45

Outcome 2

5

6

I
Both the government
and private sector
deepen their understanding of the socialand policy significanceof impact investing andthe need to promote it.

Outcome 3

6

ni gnoi tfi ai ml upna dcet ri snve
t a nsdt i n g iosf ci mr epaat c
e td .i nve s t i n g i s c r e a t e d .

09

2.

Eight efforts necessary
to realize
ecosystem
for impact
investing for impact investing
2. Eight
efforts annecessary
to realize
an ecosystem

The GSG National Advisory Board
the following
eight
actions
as efforts
necessary
to realize
for impact
Theproposes
GSG National
Advisory
Board
proposes
the following
eight
actionsan
asecosystemefforts necessary
to realize an ecosys
investing and ultimately create “asociety andwhere
problems
are always
solvedandproblems
value is constantly
investingultimately
create“a society
where
are alwayscreated.”solved and value is constantly created.”(These eight actions are correspondent(Theseto the numbersin “Figure
11: Theory oftoChange
for the indevelopmentof impact
eight actions
are correspondent
the numbers“Figure 11: Theoryof investing.”
Change for) the development of impact investing.” )Eight efforts

Eight efforts-

1

Improving investment literacy

1

Expanding financial
products andfinancing channels

3

Enhancing theprovision of information to investors
and promotingchanges in investors’ behavior

2

3

4

Creating opportunities for entities togrow and enhancing
organizations andinstitutions that
support them5

Establishing andspreading methodsof social impact
measurement

6

Enhancing conceptualization of impact
investing andmaintaining its
quality

6

10

7

8

Enhancing links among
various players andpromoting community
building

7

8

●
●
●
●

●
●
●
●
●
●

●
●
●
●
●
●

●

●

Sharing case information and precedent examples
impactinvesting
Sharing on
caseinformationand prEnhance the provision of information -on Enhancefinancial productsthat fall
the provisionof information
on financial
productswith
thatprivate
fall
Promotingcollaboration
think tanks
and academic
institutionPromotingcollaboration
with prthat
drive behavioral
ch a
Publicly
honoringand developin● Publicly honoring and developing good●practices
platforms
that connect
supporters
Enhancingplatforms that conne● Enhancing● and- From the perspective of broadening -theFrom
rangetheof perspective
targeted investof broadening
the rangeof targeted
invest- entities
Creating support
a measurement
system for support
personnel
and organizations,a measurement
systema● enhance● Creating
ment and finding better projects, enhance
supportand intermedimentand finding
better projects,
and intermediCreating
opportunigoodentities
practicesfrom both
non-financial
perspective
Sharing
good practices
from bos●findSharing● and
ary organizations that broadly find and foster
entities engaged
inary organizations
that broadly
and foster
engagedin financial

ties
entities
to values. In addition,Thatefforts
will leadto the qualitativeThat
and thesequantitativeneffortsenhanceme
will lead to thesolvingfor
issuesand creating
createanda mechasolving issues
creating values.
In these
addition,createa mechasectors
sectorsgrow
nism for andthat. enhancing
nism for that.
organizations andinstitutions that
support them

-

●

●

Increase the number of entities that- understandthenumbersocial andIncrease theof entities that
understandsocial ofandProvidingpracticalthe
examplessocial impact
measurement
andsharing ofthProvidingpractical
exampleseconomic value generated
businesses
and generated
utilize the throughvalue
their businesses
and utilize
the andEstablishingand through their economic
measurement
methodshumanresources methto b
Establishingmeasurement● Establishing●developing
results as part ofmethods
their management cycle.
results as part of their management
cycle. performance data
spreading● Sharing● Sharing performance data
- ofEncourage
constructive
investors constructive
and investees- Encourage
dialogue
investors
andandinvestees
Organizing
open data
platform for ●sharingknowledge
Organizing
open data and platfo● betweensocialimpactdialogue between
including companies, and increase the number
ofcompanies,
support organiincluding
and increase the number of support organimeasurement
zations and personnel to support the management
cycle.
zations andpersonnel to support the management cycle.

and personnel
policy aspects
of i mDeveloping
responsib● Developing personnel responsible for the● practical
Enhancingconcepfrom the perspectiveof preparing Promoting
an institutionaland researchideologicalfrom the perspectiveof preparing an institutional
and ideologicaldiversified
at academic
institutions,diversified
business researchschools, aPromoting●●tualizationof impact
foundation,
conceptualize
investing from the academic,
foundation, conceptualize
impact investingfrom theacademic, impactfields)
fields)policy,and practicalaspects anddevelop a social
infrastructure
policy, and practicala social
infrastructure
investingand aspects and develop
an information
sharing platform
contributes
to maintainingaDeveloping
an information
sharin● Developing● thatnecessary for the growth of impact Creating
investing.opportunities for communicating withnecessary for the growth of impact investing.
policyopportunities
makers (administrat
ioCreating
for comm
maintainingits●●mechanisms
forofmaintaining and improving the quality of- Create mechanisms for maintaining -andCreate
improvingthe quality
quality
impact investing or preventing impact washing.
impact investing or preventing impact washing.
-- The significanceand value
The significance and value of impact investing
are understood,
and of impact investing are understood, and

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●
●
●
●

●

●

Encouraging Japanese financial institutions
and private Japanesecompaniesfinancia
to ra
Encouraging
Work on the enhancement of internationalframeworks,
collabora- of international- Workon the enhancement
frameworks,
collaborament, andactively taking
action against andappealing
to financialtu
ment,
and actively
takinginsti
actiontive actions, and government policy support
to promote
impacttive actions,and government
policysupportto promote
impactfocusedon impact
investingfocused on impact investing
investing, toward the expansion of impactinvesting,investing towardpractices.
the expansion of impact
investingpractices.
Providinginformation
to individual financial Providing
institutions,industry groups,ainformation
to individu- Also, develop the foundation for society
as develop
a whole for- Also,the impact
foundation for themsociety
as a wholefortheimpactto actively
positionsocial value of investment
them to actively
in theirpositionpolicies
theansocdinvesting to beaintegrated
into the capital investing
market. to be integrated into the capital
market.the creation of frameworks andCreating
frameEncouraging
the design theof systems
Encouraging
creationandof frareport on, from the perspective of social impact,
their soreporthow
on,they
fromrealize
the perspective
work for social
Encouraging industry groups and affiliated Encouraging
organizationsindustry
to provide
train aningroupsimplementation andimpact investing and the social value of investment
and improve
liter av
impact investing
and their
the social
dissemination
Promoting behavioral changes in financial institutions
a combina
Promoting throughbehavioral
changestii
Encouraging the creation of incentives for Encouraging
investors, including
impactof incinthe creation
systems and other programs
systems and other programs
Toward building the evidence essential for social
impactmeasurement,e
Towardbuilding
the evidence esacademic researches, large-scale demonstration
projects,
and theuti lizacademic
researches,large-sc
databases for the smooth utilization of data databases for the smooth utiliza-

Creating a framework for social
implementation anddissemination

●
●
●
●

● implementation/publication of research●andimplementation/publication
Enhancing
the to institutional andstudy, regarding the long of-tr
under impact investing
individualunder
impact investors
investing by
to institutional
and individual investors by
impact investing
impact investing
provisionof
inforfinancial institutions, inducing appropriatefinancial
investment
behaviors.
institutions,
inducing appropriate
investment
behaviors.
investors with
opportunities to●cultivateawarenessof withimpactinv eProvidinginvestors
opportu● Providing
ence investors to change theirence- mation
Create an environmentthat encourages
investors
to change their- Createan environmentthat encourages
to investors
Creating opportunities for investors to●participate
solving socialfor
issu
esCreatinginopportunities
inves●
attitudes
and behaviors through investment
in financial
productsthrough investment
attitudes
and behaviors
in financial products
andpromotinglevel)
level)Creating
institutional
incentives
toincreasethenumberofinvestors,
includCreating
institutional
incentives
that
fall
under
impactinvesting.
that
fall
under
impactinvesting.
●●changes in invesmanagement
Working
on a review of the foun
● Working on a review of the foundations’●asset
tors’ behavior
investment
portfolios
Expandingsocial impact
investin● Expanding social impact investing in ESG● investors’-

45Specific action s

Summary

Creating opportunities to share knowledge forthe compositionof financial
Creating
opportunities
to sharepk
Increase the number of financial productsthat caninvest- Increase
theattract
numberof financial products
thatcan attract
investIncreasing
cooperationwithand outreach toIncreasing
all entitiescooperation
including variousfowith andcompanies,
and business companies
companies, and business compment funds to businesses that create social
value.
ment
funds to businesses that createsocial value.
Expandingfinancial
Creating a mechanism of financing to areasCreatingthat areadifficult
to be addresmechanismof financ- Enhance the financing channels by- actively
proposingmechaEnhance
the financing
channels funds
by actively
proposingmecha- of outcome
includingthe establishment
funds,
impactthe
funds,
and w hfunds
includingestablishme
products
and precedent examples
nisms and presenting
thatandenablea combinanisms
presenting
precedent examples
enable a for
combinaCreating thata mechanism
participation by individual
throughut ilCreating ainvestors
mechanism
for partic
investment
trustsinvestment trusts
tion of impact investingwith other meanstionof financing.
of impact investing with other meansof financing.
financingchannels
Creating a mechanism for the circulation of Creating
funds anda resources
throughmechanism
for the cin
Creating opportunities to provide informationCreatingand education
for the manageopportunities
to provide
diary organizations
diary organizations-

2

Summary

Encourage all players, including investors,
intermediaries,
entities,- Encourage
all players,
including investors, intermediaries, entities,
Enhancing the dissemination of information
on socialthe
value
of investm eo
Enhancing
dissemination
governments, and the general public, togovernments,
expand their knowledge
and the general public, to expand their knowledge
Enhancing investor education (youth, adult,
and elderly)
Enhancinginvestor education
and understanding of not only impact investing
but also the ofsocialand understanding
not only impact investing but also the social
Improving investSharing
and international
Sharing domestic and internat
significance and value of investment itself,
thereby enablingthemsignificanceand valueof investment
itself,domestic
thereby enablingthem good practices
ment
literacy
Providingindividual financial
institutions
or industry
Providinginformation
to indivg
to recognizethat the efforts are related tototheirsocial andrecognizethat economthe efforts are related
to theirinformationsocial and to
economentities
areinmeinstitutions and entities are members, andinstitutions
working toandreflect
impactv
ic activities.
ic activities.

-

Sharing knowledge and networking acrossSharing
Japan The
GSG National
Ad vknowledge
and networ
Enhance opportunities for each of investors,
intermediarysupport- Enhance
opportunities
for each of investors, intermediary support

as a whole
as a whole
Enhancinglinks amongorganization, entities, governments, andthe generalpublic toorganization,
entities,governments, and the general public toknowledge and networking at ●the regional
Organizations
t h
Sharing level.
knowledge
and networ● Sharing
variousplayers
share the process
and andoutcomes of theirshareeffortsthe
to process
promoteand
impactoutcomes offinancial
their efforts
topromoteimpactinstitutions, community foundations,philanthropic
sectorincludi nfinancial
institutions,community
investing and deepen
mutual understanding.
investing and deepen mutual understanding.
promotingcommunity
region, etc. cooperate and deepen their cooperationin theirrespective
re gregion, etc.
cooperateand deepparticipatingiknowledge
and networkbuilding● Sharing knowledge and networking internationally● SharingActively
global levelglobal level

Milestones towards 2025 Milestones towards 2025

ns

16% of the adult population is aware of theterminvesting.”
16%
of“impact
the adult
population is aware of the term “impact investing.”
m ent with the media involvement
More thanthat
half“investment”
of the adult population
recognizes
that “investment”
will help
solve
socialMore than half of the adult population recognizes
will help solve
social issues,or can become
one ofmeans
to issues, or can become one of means to
supportsolutionsto social issues.
support solutions to social issues.
Half
of
adult
population
thinksitisimportanttounderstandinvestment
outcomefromasocial
as well as economic perspective.
Half of adult population thinks it is important to understand investment outcome from a social as well as economic perspective.
Halfmanagement
and persons
in chargeof productdevelopment
in financial
institutions
Half of management and persons in charge
ofof
product
development
in financial
institutions
and other
organizations
understandthe and other organizations understand thedefinition of impact investing.
financialy whichgroupsand affiliated organizations
toimpact
which investing.
financialdefinition of
The promotion of impact investing is clearly stated in the policies, guidelines, charters of action, etc. formulated by industry groups to
netc.
vesting in their policies and guidelines, etc.
The promotion of impact investing is clearlystatedin theinstitutions
policies, guidelines,
charters of action,etc. formulated
by industry
groupswhichfinancialand other organizations
are members,
government
agencies
including the Financial Services Agency, andto which financial institutions and other organizationsareinstitutional investors
such as GPIF.

al products that aim for social impact
Financial
institutions
that offer impact investingproducts
havethataccounted
for 16%of the products
total, creating
in forthe16%
choiceof total, creating diversity in the choice ofFinancial
institutions
offer impact
investinghave diversity
accountedof themanagement
sment
foundations,institutional investors,
investment
management
impact investing products.
impact investing products.
Institutions
that actively
composeprojectsInstitutions
similar to impact
investinghave emergedin the sales
area investing
and are actively
introducedin sales area and are actively introduced inthat actively
composeprojects similar
to impact
have emergedin theromotionof fundof finance throughe ssed withexisting
the promotionof fundofthe media as a good practice.
the media as a good practice.
w holesale style funds
or moreoutcomefunds/impact
funds
have
been outcome
establishedthrough collaboration
the publicthroughand private
sectors, between the public and private sectors,Oneor morefunds/impact
funds have between
been establishedcollaboration
tedilization
to a theme
andutof methods
includingOne
stocksrelatedto a theme
andand actual funding for social projects has andadvanced.
actual funding for social projects has advanced.
Wholesalestyle
funds function and VC firms
and financial
institutions
thatandexecuteimpactemerged.
Wholesalestyle funds
function
VC firms
andinvesting
financial haveinstitutions
that execute impact investing have emerged.
ve
h currencies
new means including local andalternative
currencies
Social impact
generatedby the abovementioned
fund ofgenerated
funds andby
itstheimpactgenerating processes
are disclosed
to society,creat-processes are disclosed to society, creatSocial impact
abovementioned
fund of funds
and its impact
generating
dg financial
intermeement andstaff of financial institutions
and financial
intermeing opportunities to learn from experience.
ing opportunities to learn from experience.

investing has accounted
the totalinvesting
investment
of individual
investors.
hasbalanceaccounted
for 1% of thetotal investment balance of individual investors.
ation/analysis,
ando ns to conduct
research and Impact
data preparation/analysis,
and for 1% of Impact
Impact andinvestinghasreturns
accounted
the total
asset managementbalanceinstitutions,
VC firms,
foundations,investinghas accounted
for 1%ofofthe
thefinancial
total asset
managementbalanceof the financial institutions, VC firms, foundations,in between impact
ginancial-term returns
correlation
financialin for 1% ofImpact
and companies.
and companies.
minarsandincluding
confer- educational events, seminars and conferv esting,at creating
the localvalues (creating contact points at the local
upoints
es andsu ding tax incentives for individual investorssh anges in the industry

Business side
Business sidemesof supports, andvisualizing and sharingAmongof the outcomesof support
Amongthroughentities investmentsthat have experienced
throughinvestments
and loans,morethan 1% of them have utilized impact investentities thathave experienced financing
and loans,financing
more than
1% of them
have utilized
impactinvesting.
ing.
e slisted social
venturestheir
andbusinesses
startups have
expandingtheir businesses with support from investors.
Newly listed social ventures and startups Newly
have emerged,
expandingwithemerged,
support frominvestors.
seandphilanthropic
nt of
support personnel in bothbusinessand investmentphilanthropic
Supportconducting
through investment
expands
for entities
conducting
businesses that encourage systemic changes.
Supportthrough
expands for entities
businesses
that encouragesystemicchanges.
Supporter side

Supporter sideof support
organizations
that haveprovidedfinancial
andtracked
non-financial
More than 16% of support organizationsMore
that than
have16%
providedfinancialand non-financial
supportto entities
have
their support to entities have tracked theirprogress
after the support from the perspective of impact.
business progress after the support from businessthe perspectiveof impact.
conferencesamong
supporters
activated,
informationis shared
both
onlineand offline and visualized, and a cycle that
Case conferences among supporters areCase
activated,
informationis shared
both areonlineand offline
and visualized,anda cyclethatattractsare
moreparticipants and interested parties are created.
attracts more participants and interested parties
created.

measurement
are open to
publicon theonline platform
and available
for use
About 1,000
specific examplesof thesocialimpactmeasurement
are opento the public
on the online platform and available for use
g the implementation process About 1,000 specific examples of social impact
and reference as an open resource.
and reference as an open resource.
to be responsible for the measurement
Specialized courses and training programson socialcourses
impact measurement
have beenin collaboration
Specialized
and training programs
onestablishedsocial impact
measurementwith
haveinstitubeen established in collaboration with institutions including universities.
tions including universities.
About 100 human resources who haveAbout
received
training onwho
socialimpactmeasurement
and canonwork
on impact
actual measurement and can work on actual
100practicalhuman resources
have
received
practical training
socialmeasurement from a professional perspective
are produced.
measurementfrom a professional perspective are produced.
About 1,000 human resources gain basicAboutknowledge
socialresources
impact measurement,with increasing
opportunities
for attending
1,000 ofhumangain basic knowledgeof social
impact measurement,with increasing opportunities for attending
introductory seminars and receiving training.
introductory seminars and receiving training.

f i mpact investingItems related to impact investing are includedin the courses
offeredat institutions
includingbusinessofferedschools,core
Items related
to impact
investingare includedin the courses
at featuring
institutions
including business schools, featuring core
institutions
and researchers
academic research
related toconducting
impact investingin multiple
fieldssuchtoas
management,
and researchers
academic
research
relatedimpactinvesting in multiple fields such as management,
esearchin multiples, and otherorganizations (progressof researchin multipleconducting institutions
finance, and social policy.
finance, and social policy.
Presentationsat internationalbyconferences
have been accumulated,
driving
the promotionof impact
Japanese researchers
at international
conferences
have been
accumulated, driving the promotion of impact
ting
g and improving the quality of impact
investingby Japanese researchersPresentations
investing in Asia.
investing in Asia.
at ion, legislation, etc.)

inratify
the ESGinvestvarious
frameworks andprinciples
in the ESG
invest-value and significance
Matters regarding
the social
value andsignificanceinvestment,
including
impactinvesting are included in the basic training
Matters
regardingthe social
of investment,
including
impactinvestingofare
included in
the basic
training
andfinancial
various institutions
certificationand
tests
conducted
by financial institutions and industry groups.
and various tocertification
tests conducted byindustrygroups.
i tutions,increase efforts
toincreaseprivate
effortssector, and government
Regional
financial
institutions
and communicate
cooperative financial
institutions
communicate
Regional financial institutions and cooperative
financial
institutions
actively
their social
impact actively
when disclosing
and their social impact when disclosing andprovidinginformation,
enabling
cross-sectionalreferenceof practicalexamples of each region and each institution.
providinginformation,
enabling cross-sectionalreferenceof practicalexamplesof each region
and eachinstitution.
titiesencourage
andtoaffiliatedorganizations, andother entities
to encouragelncontributions
d guidelines, etc., and making
intellectual
contributions
investingtax cuts
and certification
systemshave been
and investors
are utilized by individual and institutional investors
Impactinvestingtax cuts and certificationImpact
systemshave beenrealized,
and are utilized
by individual
andrealized,
institutionalndentities tod othermechanismfor financial institutions
andother entities
toA databasenecessary forpracticing
social impact
measurement
hasbetween
been established
A databasenecessaryfor practicing
socialimpact measurement
has
been establishedthroughcollaboration
the publicthrough collaboration between the publico cial value through finance and private sectors, and is utilized by investment
and private
sectors,andinstitutions,
is utilized byinvestment
financial
institutions, and academic research institutions.
funds,
financialandacademicfunds,
research
institutions.
canetc.
learn
nnsing,soaboutthat staff at financial institutions can learn about
er acyive
formationa tionof regulatory approaches and incentive formation
ssarycertification
investingtax cuts Also, discussing necessary certificationystemsthat enableencouraging
the development of legal systems that enableti andlizationof big data,nt
operationof and the development and operation ofs a visory
hub forBoard
Japanalso plays an active role as a hub for JapanAd
where
players of
impactcollaborate
createdall levels in Japan, at the local, and at thePlaces where players of impact investingPlaces
mutuallycollaborate
havebeeninvesting
created mutuallyat all levels
in Japan,haveat thebeen
local,
and atattheglobal levels.
global levels.
regionalimpact investing
salt focus,
hat promote
with
a
local
focus,
regional
Developa culture
where diversified
includinggovernments,
institutions,
Develop a culture where diversified players
includinggovernments,
financial players
institutions,philanthropists,
andfinancial
foundations
make philanthropists, and foundations makes,
di entities
ng locallyin eachbased corporatefinancial,foundations,entities
in eachfinancial,intechnical,
andtointellectual
contributions
in such places to support community building.
technical,
andintellectual contributions
such places
support community
building.
e gions
at the intellectual contributions to networks at the
go networks
in and making

11

5

Impact investing5 in 2025
Impact investing in 2025

Figure12 describes
what
impactshouldin 2025
by working
on eight
efforts
mentioned
Figure 12 describes what impact
investingshould bein 2025
by investingworking oneightbeefforts
mentionedon theprevious
page,
by stake-on the previous
stakeholder
category.
The
GSG
National
Advisory
Boardwillcontinue
toplay
anactiverole
as a hub for Japan to ac
holder category. The GSG National Advisory Board will continue to play an active role as a hub for Japan to achieve the following
following items
and contributeto the improvementof practice and knowledge at home and abroad.
items and contribute to the improvementof practiceand knowledge
at home and abroad.

Figure 12 | What impact Figure
investing
12 |should
What impact
be in 2025
investing(by stakeholder
should be category)in 2025 (by stakeholder category)

16% ofof thethe adult
term “impact
population
investing.”
is aware of the term “impact investing.”■ 16% of the adult population is■ aware■ More than half of the adult population■ More thanrecognize
half ofthat
the “investment”
adult population
will recognize
help solve thatsocial“investment”
issues, or canwill help
becomesolve
onesocialof means
issues,toor
supportcan become
solutions
onetoof■ Half of adult population think■it isHalf
importantof adulttopopulation
understandthinkinvestment
it is important
outcometo understandfrom a social
investment
as well asoutcome
economic
fromperspective.
a social as well as economic per■ Financial education including■theFinancial
above perspectives
education including
is practiced
the abovein eachperspectives
field of compulsory
is practiced
education,in eachhigher
field ofeducation,
compulsory
andeducation,
adult education.
higher educ■ The promotion of impact investing■ Theispromotion
clearly statedof impact
in the investing
policies, guidelines,
is clearly statedchartersin theof action,
policies,etc.
guidelines,
formulated
charters
by industryof action,groupsetc.toformulated
which financi
by in■ Good impact investing practices■ Goodthat canimpactengageinvestingmanypractices
investorsthat
andcanbe replicatedengage many
acrossinvestors
the region
and havebe replicatedemerged.
across the region have emerged.
■ Place where players of impact■ investing
Place wheremutually
players
collaborateof impacthave
investingbeen mutuallycreated atcollaborate
all levels in
haveJapan,
been
atcreated
the local,
at andall levels
at theinglobal
Japan,
levels.
at the local, an■ Develop a culture where diversified■ Develop
playersa cultureincludingwhere
governments,
diversified players
financialincluding
institutions,
governments,
philanthropists,financialand institutions,foundationsphilanthropists,
make financial,andtechnical,
foundat■ In the scene of asset management,■ In the method
scene ofofasset“impactmanagement,
investing” exists
the method
as a naturalof “impact
option.
investing” exists as a na

Individual investors- With the improvement of financial- Withliteracy
theof
improvement
individual investors,of financial
more
literacy
than ofhalf
individualof adultsinvestors,
understandmore
thatthan half
investing in sound and high-qualityinvesting
financialinproducts
sound andandhigh-quality
utilizing household
financialassets
products
willandleadutilizing
to a betterhousehold associety.investors
society.
Individual- Financial education including the- above
Financial
perspectives
education is
includingpracticed
theinabove
each field
perspectivesof compulsory
is practiced
education,in eachhigherfield ofeducation, and adult education. education, and adult education.
- Impact investing has accounted-for
Impact1% ofinvesting
the investment
has accounted
balance offorindividual
1% of theinvestors.
investment balance of individual in

Investors

Investors■ For institutional investors, impact■ investing
For institutionalhas been
investors,of equal
impactinterest
investingto current
hasESG
beeninvestment,of equal interest
and moreto current ES

Institutional investors

investors use their own assets. investors use their own assets.
- Impact investing has accounted-for
Impact1% ofinvesting
the total has
asset
accounted
managementfor 1%
balance.
of the total asset management balance.
Institutional investors- Institutional investors enter the market- Institutional
as Investors
investors
to outcome
enter thefunds,
marketimpactas Investors
funds, andto outcome
wholesalefunds,
styleimpact fun
funds. Or, more institutional investors
funds.
ventureOr, more
into institutional
impact investing
investors
themselves
venture byintoutilizing
impactthe
investing themselves b
abovementioned funds.
abovementioned funds.

Philanthropic-type

Philanthropic-type
play a role as players in Blended Finance.
play a role as players in Blended Finance.

organizations including- Impact investing
has accounted-for
Impact1% ofinvesting
the total has
asset
accounted
managementfor 1%
balance.
of the total asset management balance.
organizations
includingfoundations

foundations
Financial intermediaries

Financial intermediaries

Megabanks,■ Philanthropic-type organizations,■ foundations,Philanthropic-type
and other
organizations,entities execute
foundations,
impact andinvestingother asentities
one ofexecute
their roles
impactor in- Philanthropic-type organizations- that
Philanthropic-type
actively work onorganizations
finding and fosteringthat actively
targeted
work investments
on finding andemerge.
fostering targe■ Impact investing efforts (product■development,
Impact investing
project
efforts
composition,(product development,
and provisionprojectof information
composition,
to customers)
and provision

are made as a matter of course, andare always
made astaken
a matterup forofdiscussion
course, andasalwaysan option
taken
of financial
up for discussionintermediation
as antooption otargeted investments and loans. targeted investments and loans.
Megabanks,regional bank VCs,

- Half bankof management- Halfin chargeof managementof product anddevelopment
persons inincharge
financialofinstitutions
product development
understandinthe
financial iregional
VCs, and persons

securities companies

securities- 16% ofcompanies
all financial institutions include- 16% impactof all financial
investinginstitutionsin the financial
includeproducts
impact investing
they sell overin thethefinancialcounter.
products

Type II financial- Institutions
that actively compose- Institutions
projects similarthat actively
to impactcompose
investingprojects
have emergedsimilar toinimpact
the sales
investingarea andhave
areemerg
Type
II financial

instruments

business operators

definition of social investment.

definition of social investment.

actively introduced in the media asactively
a goodintroduced
practice. in the media as a good practice.

instruments- Increased number of entities work
- Increasedon the formulation
number ofand
entities
salesworkof new
on financial
the formulation
products,
andcreating
sales ofdiversity
new financial
in
impactoperators
investing projects and products.
impactThis
investingprovidesprojects
investors
and products.
with more This
options.
provides investors with more option
business- Impact investing has accounted-for
Impact1% ofinvesting
the total has
asset
accounted
managementfor 1%
balance.
of the total asset management balance■ Organizations that provide services■ Organizations
including businessthat provide
supportservices
can play
includinga role as
businessa partner
supportin creating
can playvalue
a role as abusiness support
and assessment
institutions

Non-financial intermediaries

Non-financial intermediaries

12

Non-financial,

together with entities and advise them
togetheron diversified
with entities
financing
and advise
options.
themTheyon diversified
can also explain
financingtheoptions.
outcomes
They
they
can a
have produced.
have produced.

- More than 16% of support organizations- More than
that16%haveofprovided
support support
organizations
to entities
that have
have tracked
providedtheirsupportbusinessto entities hprogress after the support from theprogress
perspective
afterofthesocialsupportimpact.
from the perspective of social impact.
- Case conferences among supporters- Caseareconferences
activated, information
among supporters
is shared
arebothactivated,online andinformation
offline andis shared both ovisualized, and a cycle that attracts
visualized,
more participants
and a cycle
andthatinterested
attractsparties
more participants
are created.and interested parties are■ Through conducting social impact■ Throughmeasurement,
conducting
the number
social impactof assessment
measurement,
institutions
the numberthat supportof assessment
theinstituNon-financial,visualization and verbalization of thevisualization
value createdand verbalization
by entities hasofincreased
the value created
and the byoutcomes
entities have
has increased
been
and t
shared.

shared. support
business

About 1,000 specific examples of- Aboutsocial 1,000
impactspecificmeasurement
examplesareofopen
socialto impact
the public
measurementon the online
areplatform
open to the pu
and- assessment
and available for use and referenceandasavailable
an open forresource.
use and reference as an open resource.

institutions- Sufficient opportunities including- practical
Sufficienttraining
opportunities
have been
includingprovided,practical
and assessment
training havepersonnel
been provided,
have been
and asse

produced.
produced.
- A database necessary for practicing- A databasesocial impact
necessarymeasurement
for practicing
has beensocialestablished
impact measurement
through collaboration
has been estab
between the public and private sectors,
betweenandtheis utilized
public andby investment
private sectors,
funds,
andfinancialis utilized
institutions,by investment
and funds, finan
academic research institutions. academic research institutions.

o social issues.

es alareinstitutions
members,andgovernment
other entities
agencies
are members,
including government
the Financialagencies
Servicesincluding
Agency, andthe Financial
institutional
Services
investors
Agency,such asandGPIF.
institutional investors such as GPIF.

n suchand intellectual
places to support
contributions
communityin suchbuilding.
places to support community building.

ue solvinges
Investees

rientedes)■ Financing based on the growth■stage
Financinghas become
based possible,on the growthand impact
stage hasinvestingbecomeis takenpossible,up forand impact investing is taken up for

discussions as an option.
Socialissue solving

discussions as an option.
- Among entities that have experienced- Amongfinancingentitiesthroughthat haveinvestments
experienced
andfinancing
loans, morethrough
thaninvestments
1% of them and loans, more than 1% of thembusinesses
have utilized impact investing.
have utilized impact investing.
- Newly listed social ventures and- startups
Newly listed
havesocial
emerged,venturesexpandingand startups
their businesses
have emerged,
with support
expanding
fromtheir businesses with support from
(impact-oriented
investors.
investors.
businesses)- Support through investment expands- Support
for entities
throughconducting
investment
businesses
expands forthat
entities
encourage
conducting
systemicbusinesses that encourage systemicchanges.
changes.

■ Impact investing has been recognized■ Impactasinvesting
one of means
has been
to practicerecognized
CSR asor achieve
one of means
the SDGs,
to practiceor practical
CSR or achieve the SDGs, or practicalexamples of investment have been
examplesproduced.
of investment have been produced.

es working to■ From the working
perspective of expanding■ Fromand theadvancing
perspective
own ofbusiness,
expandingan active
and advancing
social shiftown
in businessbusiness,itself
an active social shift in business itself
Companies
to

ial issues

solve- social
issues of social impact- isThe
The perspective
included
perspectivein the ofintegratedsocial impact
reportsis orincluded
CSR reports
in the integrated
issued by reports or CSR reports issued byoccurs.

occurs.

companies, and dialogue with investors
companies,
is promoted
and dialogue
from a withmediuminvestors
and long-term
is promoted
value
fromperspective.
a medium- and long-term value perspective.

■ The government has deepened■itsTheunderstanding
governmentofhas
thedeepened
need to promote
its understanding
the social andof thepolicyneedsignificanceto promote the social and policy significanceof impact investing.

ents

es andMarket formation and foundation building

and local

institutionsof impact investing.

- Active utilization of impact investing- Activeand utilization
specific measuresof impacttoinvestingpromoteand
impactspecific
investingmeasuresare included
to promote
as impact investing are included as
oneandof means
one of meanss majortopolicies.
realize the government’s major policies.
National
localto realize the government’- The promotion of impact investing- The
is clearly
promotionstatedofin
impactthe policies
investingandisguidelines
clearly statedformulated
in the policies
by the and guidelines formulated by thegovernments
government agencies including thegovernment
Financial Services
agenciesAgency.
including the Financial Services Agency.
- Impact investing tax cuts and certification- Impact investing
systems tax
have
cuts
been
andrealized,
certificationand systems
are utilized
haveby beenindividual
realized,
and and are utilized by individual andinstitutional investors.
institutional investors.

■ Research on impact investing has■ Researchbeen conducted
on impact
at several
investinguniversities
has been andconducted
academic
at several
institutions,
universities
and and academic institutions, andinformation is shared with foreign information
countries andis shared
Japanese
withpractices
foreign countries
are provided.
and Japanese practices are provided.

- Core institutions and researchers- Corethat work
institutions
on academic
and researchers
research related
that work
to impacton academic
investingresearch
emergerelatedin
to impact investing emerge in
multiple fields such as management,
multiplefinance,fieldsandsuchsocialas management,
policy.
finance, and social policy.
- Items related to impact investing- areItems
includedrelatedintothe
impactcoursesinvestingofferedareat included
institutionsin theincludingcoursesbusinessoffered at institutions including businessschools.
schools.
Universities and- Specialized courses and training- programs
Specializedoncourses
social impact
and training
measurement
programs
haveon socialbeen established
impact measurementin
have been established inacademic
institutions
collaboration
with institutions including
collaboration
universities.
with institutions including universities.
- About 100 human resources who- About
have received
100 humanpractical
resources
training
who
onhavesocialreceived
impact practicalmeasurement
training
andon social impact measurement andcan work on actual measurement can
fromworka professionalon actual measurement
perspective arefromproduced.
a professional perspective are produced.
- About 1,000 human resources gain
- About
basic1,000
knowledge
humanofresources
social impact
gain measurement,
basic knowledge
withof increasingsocial impact measurement, with increasing
opportunities for attending introductory
opportunities
seminars
forandattendingreceiving
introductory
training. seminars and receiving training.
- Presentations by Japanese researchers- Presentationsat international
by Japanese
conferences
researchers
have atbeeninternational
accumulated,conferences
driving thehave been accumulated, driving thepromotion of impact investing in Asia.
promotion of impact investing in Asia.

■ Public awareness of impact investing■ Public
hasawareness
improved withof impact
the dissemination
investing hasofimproved
practicalwith
examplesthe disseminationand good of practical examples and goodMedia
practices on impact investing.

practices on impact investing.

- 16% of the adult population is aware- 16%ofofthe
theterm
adult“impact
population
investing.”
is aware of the term “impact investing.”

13About the GSG
The G8 Social Impact Investment Taskforce was established based on the call by the then Prime
Minister of the UK David Cameron at the G8 Summit (“Summit”) in June 2013.
It was renamed Global Social Impact Investment Steering Group (GSG) in August 2015. Since its
establishment, the GSG has consistently aimed at globally promoting impact investing. The chairman,
Sir Ronald Cohen of the UK, is a pioneer of venture capital in the UK and the founder of Apax
Partners, one of Europe’s largest investment funds, as well as the head of the European NASDAQ.
He is also the founder of the British dormant account fund called Big Society Capital. As of April 1,
2020, the GSG has 32 nations plus the EU as members.

About the GSG National Advisory Board
The GSG requires its member countries to form a national advisory board (NAB), and the NABs
have been established in all member countries.
In Japan, the G8 Social Impact Investment Taskforce National Advisory Board was established inJuly 2014. Later, it was renamed the GSG Japan National Advisory Board, in conjunction with thename change at the global level.
The GSG National Advisory Board is comprised of experts of various sectors including finance,business, social, and academic institutions. It also serves as a hub for sharing knowledge andexperience, with practitioners and researchers engaged in impact investing being widely connected.

Members of the GSG National Advisory Board

Secretariat

Hiroshi Komiyama(Chairman)

Chairman of the Institute, Mitsubishi Research Institute, Inc.

Japan Social Innovation and
Investment Foundation

Masataka Uo(Vice Chairman)

President, Japan Fundraising Association

Asian Venture Philanthropy Network

Shuichi Ohno

President, The Sasakawa Peace Foundation, and Chair of Executive
Committee, Japan Social Innovation and Investment Foundation

Kazetotsubasa Co., Ltd.

Hiroshi Irie

Managing Executive Officer, Sumitomo Mitsui Banking Corporation

Ken Shibusawa

Founder and Chairman, Commons Asset Management, Inc.

Tomoya Shiraishi

Board Member, Social Investment Partners

Masataka Fukao

Chairman, Plus Social Investment

Takehiro Fujimura

General Manager, Corporate Sustainability & CSR Department,
Mitsubishi Corporation

Hiroshi Mikitani

Representative Director, Japan Association of New Economy

Hiroyuki Iijima

Managing Executive Officer, Mizuho Bank, Ltd.

Junichi Yamada

Senior Vice President, Japan International Cooperation Agency (JICA)

Proposal for the Expansion of Impact Investing 2019
GSG National Advisory Board
Date of issue

April 20, 2020

Authors

Eri Mizutani, Kazetotsubasa Co., Ltd.

DesignMayuko Kawamoto

k-three Inc.
Japan Fundraising Association