Although impact investing continues to grow around the world, efforts have only just begun in Japan.
There are three shortfalls around impact investing in Japan：
(1) lack of recognition and understanding,
(2) lack of players
(3) lack of social infrastructure.
These three shortfalls result in lack of cases of impact investing. Therefore, they must be resolved by enhancing cooperation and collaboration with various stakeholders in the future.
（Source) Proposal for the Expansion of Impact Investing 2019
In order to resolve three shortfalls and to further expand and mature impact investing in Japan, it is essential to enhance and develop the ecosystem for impact investing.
Ecosystem for impact investing consists of the following players.
The enhancement of each of these players both quantitatively and qualitatively is essential for the further enhancement of impact investing in Japan *Note 1
(Source) Proposal for the Expansion of Impact Investing 2019
＊Note 1 Ecosystem for impact investing is considered to be a process by which impact investing, which is one of the most important tools to drive a shift in the way finance works and promote solving social issues, and which also encompasses ideas toward new capitalism, grows with diverse players working together as well as a reciprocal and mutually beneficial relationship between the players of impact investing itself.
GSG-NAB Japan has formulated a theory of change *Note 2 for the expansion of impact investing. The theory of change presents a hypothesis based on the vision and key initiatives to achieve such vision, as well as the causal relationship among the key initiatives.
The following eight initiatives are necessary to realize an ecosystem for impact investing.
＊ Please see “ Proposal for the Expansion of Impact Investing 2019 Executive Summary ” for further details.
＊Note 2 Theory of Change is a framework to capture a structural understanding of social issues and to discuss about efficient usages of limited resources, availability of external resources and key collaboration required to tackle targeted social issue.