Impact IPO Case studies
Building the movement of impact companies getting listed & listed companies seeking impact
There are increasingly more examples of impact companies that generate, measure and manage their social & environmental impact as well as achieve rapid business growth get listed on the stock exchange market. In addition, with sustainability disclosure standard development, the importance for listed companies to measure their social and environmental impact and to communicate with investors is increasing. SIIF will work to improve the market infrastructure for impact companies’ new listings and subsequent business growth by researching about and supporting impact companies to effectively engage shareholders and managing other issues for impact creation in the listing process and beyond.
Impact companies/impact listed companies
- ‘Impact companies’.
Enterprises that intend to create a positive and measurable social and environmental impact, accompanied by business growth.
- “Impact Listed Companies.”
Among impact companies, this refers to companies that are listed on a secondary market. growing, listed companies that, since listing, have maintained and increased their positive and measurable social and environmental impact creation while fulfilling their obligations as listed companies.
- Characteristics of ‘impact companies’/’impact listed companies’.
- 1) Measure and manage impact created by business (impact measurement and management (IMM)).
- 2) Disclose impact information to stakeholders, including the relationship between business growth and impact creation, as well as impact performance based on impact KPIs.○ Impact-listed companies, as listed companies, are expected to make timely and appropriate disclosures to a larger number of stakeholders.
- 3) Actively pursue stakeholder engagement activities to enhance their enterprise value.
Why is SIIF working on impact IPOs?
While an increasing number of impact companies are seeking to be publicly listed in order to raise the necessary funds and resources for rapid business growth, companies have many difficulties maintaining growth after listing and communicating with shareholders.
On the other hand, investors also vary in their understanding of impact companies’ impact due to a lack of information.
We want to work on improving the market infrastructure necessary for impact companies and impact listed companies to continue to create impact in the listed market, and for information on impact to be appropriately generated, distributed and used for dialogue and investment decisions in the market.
Issues surrounding the listing of impact companies.
● Impact companies/impact listed companies:.
- Sustainable business promotion while creating impact:
Listing on the stock exchange will require not only the maintenance of business performance but also sustainable improvement. The industry as a whole is going through its trials and errors with only limited knowledge and experience in balancing business growth with social and environmental impact expansion.
- Communication with diverse shareholders:.
Listing on the stock exchange market will result in companies being influenced by an unspecified number of shareholders with diverse agendas. How can impact companies effectively explain their impact-creating business activities to obtain shareholders and others’ continuous support through their listing to post-listing process? How do impact companies deal with takeover risks and shareholder requests that could lead to impact mission drift?
● Investor side:
- No awareness of impact listed companies:
The business and impact activities of impact companies should be more understood by investors and stakeholders in the secondary market but understanding is not widespread.
- Insufficient information for investment decisions:.
In Japan, it is difficult to make investment decisions because the industry has not yet accumulated enough know-how to enable PE/VC to support impact and there is a lack of information related to the impact of impact-oriented companies.
- ◆ Research
Through a review of the issues surrounding the listing of impact companies, a survey of overseas case studies and interviews with domestic stakeholders, the project will summarize and disseminate the actions that need to be taken in Japan in the future.
- ◆Case creation
The aim is to create national examples of impact IPOs, where impact companies go public while appropriately creating and disclosing impact information.
- ◆ Market infrastructure building
The project examines and promotes mechanisms that are needed throughout Japan, such as impact information disclosure systems and certification systems.
Publication ‘Listing of Impact Companies Concept Paper’ Scheduled publication: 2022 Jun.
- Table of contents:
- part I. Background
- 1. The challenges faced by companies
- 2. The challenges faced by investors
- 3. The positioning of this concept paper
- Part II: What is an impact company’s new listing?
- Part III: Case studies
1. overseas cases
- a. Corsera
- b. Amalgamated banks.
- c. Darling Ingredients.
- d. Vital Farms.
2. domestic cases
- a. TBMs.
- b. Kachitas.
- c. Cure-up.
- Part IV: Issues and recommendations
- 1. the issues that can be seen from the case studies
- 2. recommendations