Press Release
To all members of the press

November 29, 2021
Japan Impact-driven Financing Initiative
All signatory financial institutions

21 Financial Institutions in Japan sign "Japan Impact-driven Financing Initiative"
aiming to solve environmental and social issues through finance
Today, the following 21 financial institutions ("Signatories") signed the "Japan Impact-driven Financing Initiative("Initiative"). The Signatories of the Initiative believe that the fundamental purpose of private financial
institutions is to solve environmental and social issues. It also promotes impact-driven finance with measuringand managing the changes in society and the environment ("impact") created by their investments andloans/bonds. The Signatories, while very diverse, will work together to promote high quality impact investment
in Japan.
Today, when environmental and social issues are becoming increasingly significant, it is essential to leverage
private capital to solve these issues, since the capacity and capability of governments, local authorities andinternational organizations are not sufficient to tackle these issues. Under these circumstances, for maximizationof the potential of finance to solve a wide range of issues, the Signatories believe that it is important for financial
institutions to have clear impact-orientation as their purpose, and to visualize and manage the impact. However,Japan's impact investing is still at an early stage. In order for financial sector to produce outcome on a larger
scale, it is utmost necessary for impact-driven financial institutions to share their efforts and challenges among
like-minded institutions, and then to raise the level of these activities in both quantity and quality. At the sametime, the Signatories believe that collaboration and cooperation with leading overseas initiatives in impact
investing is essential.
The 21 Signatories will not only implement impact-driven investment, impact measurement and management(IMM) individually but will also have regular meetings to discuss and share best practices and challenges.
Through the activities, the Initiative aims to evolve the Japanese financial industry to be more impact-oriented
in a sustainable and autonomous manner.

For more information, please contact: Public Relations email: media@siif.or.jp
Japan Social Impact and Innovation Foundation e-mail: impact-drivenfi@siif.or.jp

List of Signatory Organizations: *in alphabetical order
ANRI Co., Ltd.
Asset Management One Co., Ltd.
Beyond Next Ventures Inc.
Capital Medica Ventures Co., Ltd.
Dai-ichi Kangyo Credit Cooperative
Energy & Environment Investment, Inc.
Future Venture Capital Co., Ltd.
Global Brain Corporation
Mitsubishi UFJ Trust and Banking Corporation
MUFG Bank, Ltd.
Nippon Venture Capital Co., Ltd.
Plus Social Investment Co., Ltd.
Real Tech Holdings Co., Ltd.
Resona Holdings, Inc.
Ritsumeikan Social Impact Fund Investment Limited Partnership
Shinsei Bank, Limited
Sumitomo Mitsui Trust Holdings, Inc.
Tajima Shinkin BankThe Dai-ichi Life Insurance Company, Limited
The Kyoto Shinkin BankThe Shizuoka Bank, Ltd.

List of supporters:
Global Impact Investing Network (GIIN)
Global Steering Group for Impact Investing (GSG)
Japan Exchange Group (JPX)
Japan International Cooperation Agency (JICA)
Japan GSG National Advisory Board
Japan Social Innovation and Investment Foundation (SIIF)
Social Impact Management Initiative (SIMI)

Website of the "Japan Impact-driven Financing Initiative": https://en.impact-driven-finance-initiative.com/*The photos of the press conference will be stored by 10:40 on November 29.

For more information, please contact: Public Relations email: media@siif.or.jp
Japan Social Impact and Innovation Foundation e-mail: impact-drivenfi@siif.or.jp

Comments from representatives of 21 signatory financial institutions *in alphabetical order
ANRI Co., Ltd.

Anri Samata, General Partner & Co-Founder
Established its first fund in 2012, ANRI is a seed stage focused venture capital firm in Japan
with an AUM of 35 billion yen. We have led the Japanese startup industry in promoting D&I,
through initiatives such as increasing the ratio of female entrepreneurs in our current
running ANRI IV fund. On a personal level, I support NPOs and other social sector
organizations to solve critical social issues. Investments in startups that solve environmental
issues are accelerating around the world as we move toward a more decarbonized society.
As environmental and social issues also emerge in Japan, we will continue to generate
impact by solving these issues through our investment activities.

Asset Management

Akira Sugano, President & CEO

One Co., Ltd.

We are delighted to be part of the Initiative with like-minded financial institutions. In January
this year, we published a corporate message as our purpose in society, "Creating asustainable future through the power of investment", as part of our strong commitment tointegrating sustainability into our management. We believe that this is the very essence ofour "impact orientation". However, as an asset management company, it is difficult for us totake on this major challenge on our own, and it is extremely important that the entire
investment chain, including asset owners and market participants, work together to develop
an information disclosure platform for measuring impact. We hope that this declaration will
accelerate the pace of this effort.

Beyond Next Ventures

Tsuyoshi Ito, CEO, Managing PartnerInc.

We believe in the potential of science and technology to make the world a better place.
Through our incubation investments in technology start-ups, we have aimed to create newindustries through the commercialization of technology seeds. All our portfolio companies
are working every day to create a positive impact on society and the environment. Ourparticipation in the Japan Impact-driven Financing Initiative reaffirms our ambition to workwith entrepreneurs to solve social problems.

Capital Medica

Takeshi Aoki, CEO

VenturesIn the healthcare sector, where we invest, the market itself has a structure in whichbusinesses must produce outcomes or they will be weeded out and will not be able togenerate sustainable profits. In other words, in order to succeed in the healthcare sector, itis necessary to manage the social impact of the business, which is a prerequisite for
maximizing financial returns over the medium to long term. Capital Medica Ventures istherefore pursuing impact-oriented investment activities with a long-term perspective inorder to maximize profits.

Dai-ichi Kangyo Credit

Tsutomu Nomura, Chairman

Cooperative

Dai-Ichi Kangyo Credit Union is a financial institution that aims to contribute to sustainableregional and community development by supporting people who are engaged in local
business and living in a spirit of mutual aid. Since the activities of those who are working tosolve environmental and social problems are becoming increasingly important in theirregions, we believe that supporting and encouraging them financially to make a difference
will lead to the realization of sustainable regions and communities.

For more information, please contact: Public Relations email: media@siif.or.jp
Japan Social Impact and Innovation Foundation e-mail: impact-drivenfi@siif.or.jp

This Initiative is in line with the direction we are aiming to take, and we have joined the listof signatory financial institutions in supporting its aims. We will continue to focus on theactivities that we are required to carry out to create an impact on the community, and welook forward to working together with the signatory financial institutions to create a greater
impact.
Energy & Environment

Shuichiro Kawamura, President

Investment, Inc.

I would like to welcome the launch of the Initiative as a cross-industry impact-oriented
initiative among domestic financial institutions. It is a great honor to be part of this Initiative.
Since its establishment in 2006, our company has been investing in and supporting growthof venture companies that are dedicated to business creation and innovation to solve social
issues in the environment and energy fields. Our 4th fund, which was established in June
2018, evaluates the social impact created by investee venture companies from bothquantitative and qualitative perspectives, and issues an impact report compiled in eachfiscal year.
By participating in this Initiative, I hope that an opportunity to share information among not
only venture capitals but also among other financial institutions will be created, domestic
impact finance will be expanded, and its information be disseminated overseas.

Future Venture Capital

Naoto Matsumoto, President and CEO

Co., Ltd.

Future Venture Capital's mission is to " build companies that will last 100 years", and we
aim to create a society that generates innovation for a sustainable future. Future Venture
Capital's flagship initiative, the " Regional Revitalizing Fund ", which aims to sustain andvitalize regional economies by partnering with regional financial institutions and local
governments across Japan, has a total investment value of 10.9 billion yen and has invested
in approximately 290 companies. We have also seen an increase in the number ofconsultations on the establishment of funds with a clear theme, such as social issues or
SDGs, and we believe that there is a growing momentum to provide funding to businesses
that seek to solve local issues and the importance of impact as an outcome. With thesigning of this initiative, we will accelerate further impact investment across Japan.

Global Brain

Yasuhiko Yurimoto, President and CEO

Corporation

We are deeply grateful for the opportunity to participate in the co-creative Initiative toaddress social challenges with other financial institutions under the Japan Impact-driven
Financing Initiative. Innovative solutions are needed to quickly address longstanding social
challenges. We have invested in a number of deep-tech startups that are using thetechnology to solve some of the world's biggest challenges. We've helped them grow andcreate impact by providing hands-on support from our dedicated team. In collaboration withother signatory organizations, we will continue to contribute to solving social issues more
effectively through implementing IMM practices.

Mitsubishi UFJ Trust

Iwao Nagashima, President and CEO

and Banking

Mitsubishi UFJ Trust and Banking Corporation conducts sustainability activities, with

Corporation“Trust”, to resolve environmental and social issues and create a "safe and affluent society."
We believe that by enhancing our impact investment measurement and management
processes, we will be able to demonstrate a high level of expertise in the solutions for our

For more information, please contact: Public Relations email: media@siif.or.jp
Japan Social Impact and Innovation Foundation e-mail: impact-drivenfi@siif.or.jp

clients' assets. And it will also help us to act as a responsible trustee who will lead to abetter future through our investment actions. Therefore, we have joined this Initiative.
We will collaborate with other signatories to promote activities aimed at developing impactoriented investments and loans, and work with a wide range of stakeholders to resolve
environmental and social issues.
MUFG Bank, Ltd.

Junichi Hanzawa, President & CEO
Through MUFG Bank's issuance of green bonds, we have contributed to showing theireffects on the environment and society and supported the creation of positive impacts. We
have joined this Initiative to identify business opportunities and enhance risk management
methods that contribute to solving environmental and social issues, and to fulfill our role asa financial institution as expected by society. Based on the Initiative, we will continue topursue activities for the development of impact-oriented investing and lending incooperation with other signatory organizations while maintaining our focus on environmental
and social impact, and will aim to contribute to solving environmental and social issues in awide range of fields.

Nippon Venture Capital

Minoru Tagaya, President and Representative Director

Co., Ltd.

This year marks the 25th anniversary of our founding, and as a venture capital firm, we havebeen proud to have indirectly contributed to technological innovation and social change by
supporting the success of many of our portfolio companies. However, with the accelerationof environmental and social problems such as climate change, environmental destruction,
declining birthrate, aging population, and the depopulation of rural areas in Japan, we
believe that a different approach will be required. This is why we decided to join the Japan
Impact-driven Financing Initiative. Our efforts have just begun, but we are delighted to workwith the Initiative's signatories to promote impact-driven finance for the next 30, 50, and100 years.

Plus Social Investment

Masato Noike, CEO

Co., Ltd.

We were founded in Kyoto in 2016 with the aim of creating a flow of funds that stimulates/social innovation and contributes to the formation of sustainable and flexible local

Ritsumeikan Social

communities. Through our social investment platform "en.try", we provide a mechanism for

Impact Fund

local residents, local businesses and financial institutions to support and participate in

Investment Limited

essential local businesses through social investment. From 2020, we are also collaborating

Partnershipwith Ritsumeikan University to establish and manage the Ritsumeikan Social Impact Fund,which totals 1.5 billion yen. We will continue to take on the challenge of creating impact inlocal communities and creating the necessary funding mechanisms to achieve this.

Real Tech Holdings Co.,

Akihiko Nagata, Chairman

Ltd.

We are very delighted to sign the Japan Impact-driven Financing Initiative together withJapan's leading financial institutions. Since the establishment of our Real Tech Fund in
2015, we have been a frontrunner in investing in and nurturing R&D-based startups that
aim to solve societal and environmental issues, both domestically and internationally. In
2021, we established Japan's first impact investment fund specializing in deep-tech. Impact
investing in the startup industry is still in its infancy, and through this initiative, we arecommitted to increasing the number of deep-tech startup supporters as well as contributing

For more information, please contact: Public Relations email: media@siif.or.jp
Japan Social Impact and Innovation Foundation e-mail: impact-drivenfi@siif.or.jp

to the development of the impact investing industry in Japan and strengthening its global
presence.
Resona Holdings, Inc.

Masahiro Minami, Director, President and Representative Executive Officer
Impact orientation is an approach in which a financial institution supports the innovationand good business of a company by sympathizing with the aspiration of the company inwhich it has invested to solve social problems. In order to promote impact orientation, wemust first convey to society our own vision of what society should be and how we want it tobe, learn from actual experiences through dialogue with the companies we invest in, deepenand evolve our dialogue even further, clarify the causal relationship between the businessactivities of the companies we invest in and the social impact they create, and ensure that
their efforts to solve social issues are sustainable. Through our impact orientation, we arecommitted to working towards a better and more prosperous society.

Shinsei Bank, Limited

Hideyuki Kudo, President and Chief Executive Officer
If each company strives to become meaningful to society and to engage in activities withpositive impact on society, then it will generate enormous energy as a whole. Shinsei Bank
Group will further deepen “Redesigning Finance” initiative and impact finance byparticipating in this Initiative, and contribute to growth of impact-oriented finance together
with financial institutions which share the same spirit.

Sumitomo Mitsui Trust

Toru Takakura, Director, President

Holdings, Inc.

The Sumitomo Mitsui Trust Group aims to leverage the diverse, flexible functions of trusts
along with analysis which incorporates scientific knowledge to become a crossroads for thebusinesses, investors, individuals, and other constituents of today’s economy, and makesustainable society a reality. We believe that this will bring about a virtuous circulation offunds, assets, and capital, stimulate asset formation of citizens and sustainable growth ofbusinesses, and contribute to growth of the Japanese economy which has remained
stagnant for so long. We believe that impact-oriented initiatives are the precise embodimentof our Group’s Purpose, which is “Creating new value with the power of trusts and let
prosperous future for our clients and society bloom.”

Tajima Shinkin Bank

Hirotaka Morigaki, Managing Director
Tajima Shinkin Bank has 28 branches in Hyogo and Kyoto prefectures, mainly in the Tajima
area of northern Hyogo. The Tajima area, our main area, is a typically depopulated area
where the population has been declining since 1947. While the population and industry of
the region is slowly declining due to depopulation and the declining birth rate and ageing
population, the recent Covid-19 disaster has put a downward pressure on the region. As aregional financial institution based in such a region, we believe that it is very important to be
impact-oriented in order to create a sustainable circulation of funds that can autonomously
solve social and environmental problems. With the signing of this declaration, we will further
promote our efforts as a regional producer and take up the challenge of measuring andmanaging our impact.

The Dai-ichi Life

Seiji Inagaki, President and Representative Director

Insurance Company,

We have revised our group vision to "Protect and improve the well-being of all " in the new

LimitedMid-term Management Plan starting from 2021. As a key premise to achieve this vision, theFor more information, please contact: Public Relations email: media@siif.or.jp
Japan Social Impact and Innovation Foundation e-mail: impact-drivenfi@siif.or.jp

realization of a sustainable society is essential, and it is necessary that more financial
institutions take practical actions to solve environmental and social issues with "impactdriven" attitudes.
We have been making impact investments, and will continue to expand and measurepositive impacts of the investment portfolio. By sharing knowledge with those who support
this Initiative, we will make a significant contribution to solving global environmental andsocial issues.
The Kyoto Shinkin

Takayuki Sakakida, Chairman

Bank

Kyoto Shinkin Bank was the first financial institution in Japan to introduce the concept of a"community bank" in 1971. Our goal under the SDGs is to create a prosperous society bypromoting financial inclusion for local small, medium and micro enterprises and start-up
businesses, and we aim to create sustainable, socially-minded communities. To this end,
we have established the Social and Sustainable business standard in collaboration with the
Yunus Social Business Research Center to foster and support businesses that go beyond
the financial realm and work to solve a wide range of social issues.
By providing engagement and support to local businesses through the certification, and byincorporating the impact of micro, small and medium-sized businesses on the local
community into our lending decisions, we will work to ensure that 80% of our clients are
ESG-conscious businesses within 10 years.

The Shizuoka Bank,

Hisashi Shibata, President

Ltd.

The Shizuoka Bank Group is committed to helping solve social issues through financial
services, aiming for sustainable growth of local communities under our corporate philosophy
to "expand dreams and affluence with our community". In January 2021, Shizuoka Bank
became the first bank in Japan to provide positive impact finance to small and mediumsized enterprises (SMEs) in order to support local companies that are actively involved in
the SDGs. The Shizuoka Bank Group considers the creation of impact to be the next stepbeyond relationship banking, and will continue to contribute to the creation of a sustainablecommunity by establishing an impact orientation in the region through finance.

For more information, please contact: Public Relations email: media@siif.or.jp
Japan Social Impact and Innovation Foundation e-mail: impact-drivenfi@siif.or.jp

Reference
Japan Impact-driven Financing Initiative
Preamble
Environmental and social issues outlined in the UNSDGs are becoming increasingly significant for financial institutions, inparticular, the threat of climate change and the new social and healthcare challenges exposed by the COVID-19 crisis (suchas delays in digitalization and healthcare reform). Investment by central and local governments or international organizations
is not sufficient to tackle these challenges, and the private sectors’ contribution is now essential, as huge efforts are neededto achieve the SDGs. Financial institutions can contribute to minimizing the negative and maximizing the positiveenvironmental and social impact of the companies they are investing into.
They can contribute to creating impact by investing into companies actively addressing environmental and social issues in
two ways. One is through financing those companies that integrated environmental and social impact in their businessmodel. Additional funds will support such companies to scale their outcomes. Another way is for them to provide risk money
for projects for the development of innovative technologies and business models. The created impact will contribute to thegrowth of the business in long term, therefore contribute to the value creation, which means that environmental and social
impact creation is compatible with profitability.
However, new skills are required to effectively balance profit and impact, and stay ahead of fast moving changes in thisevolving field. For impact driven companies these skills are often the development of a robust business model based on
environmental and social outcomes. For investors, these skills include enhanced due diligence expertise, thoroughunderstanding of engagement methods and financial product structuring. In order to develop those skills, collaboration
between companies and financial institutions is crucial.
The inclusion of impact into an investor’s operations often requires internal discussions about the sustainability of their own
existence, the mission and purpose of the organization, and the adoption of a comprehensive impact-driven approach tosolving environmental and social issues - driven from the senior management.
For financial institutions to practice impact investment (impact-driven investment and lending), it is necessary thatappropriate impact measurement and management (IMM) practices are developed. In the practice of impact investment,
although the appropriate and realistic way of IMM differs according to the attributes of the financial institutions andcompanies, the implementation of IMM is essential.
Impact Investment is global, and is already making its mark on global markets. It is becoming necessary for Japanesefinancial institutions that are closely connected to global markets to collaborate and cooperate with global organizations that
promote impact investment, while complying with or referring to internationally developed principles and standards.
The pursuit of impact and the implementation of IMM are important developments for the financial sector in Japan. It is
now the time for senior leadership in financial institutions to drive the inclusion of impact as a decision driver in theirinvestment decisions. It is also necessary to transform the flow of funds handled by financial institutions to be as impactdriven as possible, and to create a sustainable circulation of funds that can autonomously solve environmental and social
issues.

For more information, please contact: Public Relations email: media@siif.or.jp
Japan Social Impact and Innovation Foundation e-mail: impact-drivenfi@siif.or.jp

Signatories of the declaration will take following actions in their own organizations as well as in cooperation with othersignatories.
Commitments and actions
1.

We understand the importance of being impact-driven in management in order for financial institutions to fulfill the role
expected by society, and we will practice impact investment in each of our financial institutions.

2.

We will integrate IMM as a decision driver in every investment process and financial product, since we believe that
impact visualization as well as impact management, which requires efforts to continuously create impact by utilizing
impact information, integrating into investment strategies and a decision driver, are necessary.

3.

We will develop each action plan for the above-mentioned actions (1 and 2), appropriate to the situation of eachorganization, and then share and discuss the best practices and challenges experienced among the signatories, so that
we can develop the signatories’ community as a platform in a sustainable manner.

4.

We will engage in collaborative activities at the working level of signatories, including exchange of information, andnecessary research and studies, with a view to improving the quality of IMM and increasing the volume of impact
investing.

5.

We will work collaboratively to ensure that the impact-driven management of financial institutions and theimplementation of the IMM will spread throughout the Japanese financial industry, including financial institutions notparticipating in this declaration.

6.

We will actively participate in global initiatives that promote impact investing and IMM, contribute to the promotion ofinternational impact investing, and actively disseminate information from Japan.

7.

We will continue these activities until Japan's financial sector is able to develop impact investing in a sustainable andautonomous manner.

Signatory Organizations and Representatives are listed in the press release
Supporters are listed in the press release[end of document]

For more information, please contact: Public Relations email: media@siif.or.jp
Japan Social Impact and Innovation Foundation e-mail: impact-drivenfi@siif.or.jp