Policy Brief

The Current State of Impact Investing in Japan 2018

25 May 2020

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The Japanese impact investing sector is a product of its unprecedented super aging demography, its advanced economy led by powerful corporates, and its nonprofit sector with strong expertise in disaster relief, elderly care, and healthcare. The key features of the demand and supply sides of the impact investing sector include the following:

Demand side

Japanese society faces major structural issues such as the world’ s fastest ageing demographic, poverty among children, and shrinking regional economies. The government-led resource reallocation model from the post-war economic growth period has its limit in addressing these social challenges. Developing a new flow of private money to social challenges is critical. Healthy growth in the number of nonprofit organizations especially in the period immediately following the devastating earthquake and tsunami in eastern Japan in 2011. Emergence of social enterprises in the recent past, leading to approximately 200,000 ventures in number and employing 5.8 million people. Given the lack of a legal organization, many social enterprises operate as for-profit entities. Expansion of corporate engagement in social issues, particularly with the spreading of concepts such as creating shared value (CSV) and base of the pyramid (BOP).

Supply side

Substantial role of crowdfunding platforms to mobilize individual donations and investments for impact investing projects. Involvement of mainstream financial institutions, notably the largest pension fund in the world, Japan's Government Pension Investment Fund (GPIF), which has made a commitment to ESG investing. Entrance of major private foundations that are willing to provide risk capital that enables other investors with lower risk appetite to participate in impact investing projects.

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References

A. Environmental Stewardship
To protect the environment, we organize programmes like mangrove nursery and Reforestation, Coastal and River Clean-Up, Community Based Environmental Solid Waste Management, Environmental IEC Campaign and Eco-Academy

B. Food Security and Sustainable Livelihood
To ensure a sustainable livelihood for the community, eco-tourism include Buhatan River Cruise Visitor Center Buhatan River Mangrove Boardwalk are run by the community. Others include Organic Vegetable and Root crops Farming, Vegetable and Root crops Chips and by-products Processing and establishing a Zero waste store.

C. Empowered Communities
To empower the community, we provide product and Agri-Enterprise Development Training, Immersion and Learnings Exchange Program, Earth Warrior Training and Community Based Social Entrepreneurship Training

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