Unlocking private capital to invest in Japan’s social and environmental problem-solving through the development and implementations of Japanese social impact investment models.
We will create a variety of models for social impact investment in Japan. Together with partner organizations, we will identify and support projects that contribute to the solution of social issues and act as a stimulator for other fund providers by supplying risk capital through investments, loans, and guarantees, to promote the expansion of business operators and investors interested in solving social issues.
We will provide subsidies, investments, and other financial support to intermediaries developing social impact investment products that connect business operators, investors, and other important stakeholders. We will also provide nonfinancial support, such as the introduction of social impact evaluation. In addition, we will connect various communities seeking to create social value alongside economic value to promote the formation of a social impact investment ecosystem in Japan.
Together with important stakeholders, we will produce information and make policy proposals necessary for the growth of a social impact investment market, and we will work to develop a dynamic and sustainable ecosystem and to catalyze social change.
Joined the Nippon Foundation and involved in many support projects for NPOs. After the Great East Japan Earthquake, engaged in the disaster reconstruction support team as Chief Manager at the Foundation. Afterwards, involved in research and pilot model projects to spread impact investment in Japan. Current position since 2017.
Executive Director, SIIF
One of the founders of Japan Venture Philanthropy Fund, Japan’s first venture philanthropy fund. Led various social impact investment initiatives, such as Japan’s first Social Impact Bond pilot project. Engaged in G8 Social Impact Investment Taskforce as Executive. Current position since 2017.
Director, SIIF / President, The Sasakawa Peace Foundation
After working for a leading Japanese trading company, became the International Department Director at the Nippon Foundation. Executive Director at the Foundation since 2004. Involved as an advisory committee member on the G8 Social Impact Investment Taskforce. President at the Sasakawa Peace Foundation since December 2016.
President of Chitose Kensetsu Inc.
After supporting corporate revitalization at PwC and being a management member of a start-up company, he became a representative director of SVP Tokyo in 2011. He promotes the transformation of NPO Katariba as a managing director/executive director. Founded Social Management LLC in 2015, creating a place to learn for management. Okamoto was appointed as president of Chitose Kensetsu in February 2018.
Auditor, SIIF / Attorney at Law, Igarashi Law Office
Started her own law firm in 2013 after working for 5 years at Nishimura Asahi, a major law firm dealing with corporate legal affairs. With the previous experience of corporate legal affairs of financial institutions, she advises corporations engaged in education and public benefit activities, and public agencies.
Professor Emeritus at Waseda University and advisor at the Waseda University Research Institute of Manifesto.
Graduate of Waseda University School of Commerce. A member of the Mie Prefectural Assembly and the House of Representatives, and former governor of Mie prefecture, he joined Waseda University’s Faculty of Political Science and Economics in 2003 and after retirement in 2015, is professor emeritus at Waseda University and advisor at the Waseda University Research Institute of Manifesto.
Visiting professor at Tama Graduate School of Business, former Chief Financial Officer of Mori Building.
Postgraduate degree from Harvard Law School. He joined the Mori Building company after working at the Industrial Bank of Japan (now Mizuho Bank), IBJ Securities and Goldman Sachs Japan. Served as President and CEO of Mori Building Investment Management and then CFO and Senior Executive Managing Officer of Mori Building.
President of the Nippon Foundation.
Graduate of the Tokyo University of Agriculture. Served as General Manager of the Sasakawa Peace Foundation and then the Japanese Shipbuilding Industry Foundation (JSIF). Current position as President of the Nippon Foundation since 2011, when JSIF changed its name along with its shift to a public interest organization.
Professor at Waseda University Graduate School of Business.
Graduate of the Social Psychology Faculty of the University of Tokyo. Postgraduate degree in Development Economics from Oxford University. She has worked in the past at the Bank of Tokyo, the Tokyo office of McKinsey & Company, and in Paris.
In the fund business, we will develop social impact investment schemes and provide risk capital in the form of investments, loans, and guarantees.
Working with other investors and outside parties, we work to create our own model projects for social impact investment by designing new impact investment funds and project concepts, researching possible investment targets, and identifying initiatives to support. As investors, we also provide financial assistance for social impact assessments, offer our expertise, and take other measures to help enhance the quality of impact investments.
We have decided to invest in the Healthcare New Frontier Fund. This is a venture capital fund established by Kanagawa Prefecture to solve social issues by promoting the extension of healthy life expectancy and industry creation in the areas of presymptomatic illness and leading-edge healthcare. SIIF will not only invest in this fund, but perform impact measurement of all investee startups to support their growth and increase of corporate value in both financial and social terms.
To help promote social impact bonds and other performance-based schemes, we take the initiative to develop and fund projects that could be viable models for Japan. Our efforts extend to other organizations working on project formation, as well, through assistance in the forms of funding, insights, and know-how.
Social impact bonds (SIBs) are a form of social impact investments based on public-private partnership in which social projects are implemented with private funds and investors are later repaid by the project contractee (e.g. the government) according to the outcomes of the project. SIBs can be characterized as out- come-based bonds to fund social projects by procuring investment from private investors. After the first SIB was launched in the United Kingdom in 2010, more than 100 SIBs have been launched across 22 nations by 2017 to fund projects for youth employment, childcare, prevention of criminal recidivism, and healthcare. In Japan, SIBs were mentioned in national government policies such as the Japan Revitalization Strategy and the Basic Policy for Overcoming Population Decline and Vitalizing the Local Economy for two consecutive years of fiscal 2016 and 2017. Also at the regional level, Japan’ s first SIBs were launched by Kobe City and Hachioji City in fiscal 2017.
A SIB was launched for a project to prevent severe diabetic nephropathy. This project provides health guidance to high risk individuals who have not taken medical checkups or who have discontinued treatment, and a commission is paid based on such outcome indicators as improvement in lifestyle and reduction of kidney function deterioration. SIIF provided risk capital, and Sumitomo Mitsui Banking Corporation and its customer investors invested in the bond.
We invested in a SIB created for a project to increase the rate of residents receiving bowel cancer screening. This project recommends relevant Hachioji City residents to take bowel cancer screening, and a commission is paid based on such outcome indicators as increase in the rate of residents screened and those who underwent precision examination. SIIF provided risk capital for this project together with Digisearch and Advertising and other institutional investors.
In the hub business, we will support intermediaries which support business that contribute to solving social issues, develop new impact investment products and schemes, as well as conduct impact measurement and management etc.
PSI thinks that enterprises and projects born from the diverse resources of a region including its nature, people, wisdom and culture should be viewed as regional assets taking the form of an enterprise or project, and calls them “project assets” . PSI works together with regional partners throughout Japan to identify and create such project assets and to link them with investors through the social investment platform en.try.
The role of intermediaries will be important in launching SIBs, who structure the bond while communicating with and coordinating interests between such stakeholders as government, private fund providers, business operators, and third-party evaluation organizations. As part of efforts to support such intermediary support organizations, SIIF invites successful foreign intermediaries to hold training sessions.
Support for structuring SIBs was provided to Social Value Japan, Japan Fundraising Association, and K-Three through a service agreement. These three organizations put together SIBs for Ikeda City (alternative school), Tama City (prevention of severe diabetic nephropathy), and Osaka Prefecture (support of foster parent placements), that are scheduled for launch in the next fiscal year.
Kevin Tan of Third Sector Capital Partners, a major intermediary in the United States, was invited to lead a symposium and training session for intermediaries from September 5 to 7, 2017. The symposium was attended by about 80 persons and the training session by about 20 persons. In the training session, in-depth training was provided for seven hours per day over a two day period on raising the quality of the bond structuring process.
In the think tank business, we will engage in research and studies and make policy proposals that are needed to develop a market en- vironment that will contribute to the promotion of social impact investments.
Business operators who contribute to solving social issues need to make visible the social value or the social impact they create in order to attract funds, talent with motivation, knowledge, and tech- nical skills and other resources to realize new innovations toward solving issues. Social impact investors and management institu- tions also need to understand the social impact of their invest- ments and explain it to individual investors and other stakeholders. To promote social impact evaluation in Japan, the SIMI was found- ed in June 2016 as a platform for leading discussions on the current state, challenges, and future goals of social impact measurement as well as implementation of efforts toward achieving that goal. SIIF is a member of the initiative’ s joint administrative office. The initiative works together with private businesses, think tanks, inter- mediaries, fund providers, researchers, and government to take concrete action toward promoting social impact evaluation in Japan. As of May 29, 2017, 135 organizations are participating in the initiative.
Road Map Action Plan
Social Impact Day 2017
The predecessor of GSG is the G8 Social Impact Investment Taskforce established by G8 nations under the proposal made by Prime Minister David Cameron when the United Kingdom hosted the G8 Summit in 2013. Membership was extended to non-G8 nations in 2015, and the taskforce was superseded by the Global Steering Group for Impact Investment. Currently 16 member nations have established National Advisory Boards. SIIF serves as the secretariat of Japan’ s National Advisory Board, and it coordinates with the GSG head office and the advisory boards of other nations as it engages in research and studies and makes policy proposals that are needed to promote social impact investments in Japan and around the world.
The GSG Impact Summit 2017 was held in July 2017, to which 550 people were invited to participate from more than 30 nations, bringing together the front-runners of social impact investing. About 10 persons participated from the Japan National Advisory Board. Agreement was reached on a strategy of nations working together to promote social impact investments with 2020 as the tipping point. There was much interest in the enactment of the Dormant Deposit Utilization Act in Japan.
The latest report was published on social impact investment in Japan in fiscal 2017, reviewing market size, recent case examples, and the progress of the seven proposals made in 2015. Market size is estimated to be at least ¥71.8 billion in 2017, more than double from the previous year. The entry of such large financial institutions as Shinsei Corporate Investment and Sumitomo Mitsui Banking is a noteworthy development.
On February 19 and 20, 2018, a forum was held to coincide with a visit by Sir Ronald Cohen, GSG chairperson, to Japan. More than 300 persons attended, mainly from financial institutions and companies. Sir Ronald met with officials such as Chief Cabinet Secretary Yoshihide Suga, Deputy Chief Cabinet Secretary Yasutoshi Nishimura, Financial Services Agency Commissioner Nobuchika Mori, and Minister of Justice Yoko Kamikawa to call for the promotion of social impact investments by the government.