Principles for Impact Measurement and Management in Impact Investing and Discussion Paper are now available in English
Research and Study
Principles for Impact Measurement and Management in Impact Investing: a Guide for Fund Managers, Guidebook for Impact Measurement and Management for Impact Investment, and Discussion Paper “Refining the Global Standard of Impact Measurement and Management ~Views from a Japanese Working Group~”, were released.
From September 2020 to March 2021, the Impact Measurement and Management (IMM) Working Group (hereinafter referred to as “IMM WG”, established as a working group under Japanese GSG National Advisory Board (hereinafter referred to as GSG NAB), actively discussed with impact investment practitioners in Japan practical challenges, issues and countermeasures upon implementing IMM in equities investing based on the learnings from global leaders of impact investing.
As an outcome, the IMM WG released the following three documents:
l Principles for Impact Measurement and Management in Impact Investing: a Guide for Fund Managers l Guidebook for Impact Measurement and Management for Impact Investment (Guidebook) Only available in Japanese l Discussion Paper Refining the Global Standard of Impact Measurement and Management- Views from a Japanese Working Group
The impact investment market in Japan has moved from its infancy to a period of early growth, with a domestic impact investment balance of approximately 512.6 billion yen (announced in April 2021). In order to ensure that the amount of high quality impact investment continues to increase in the future, the question is how to implement IMM, which is one of the four key characteristics of impact investment.
Against this background, Japanese GSG NAB, an organization that promotes impact investment in Japan, established IMM WG in order to form a common understanding of IMM among Japanese impact investment practitioners and to improve the quality of IMM practices in private equity. A total of six meetings were held with the participation of investment practitioners from 17 companies, including venture capital firms, asset management companies and asset owners.
The working group researched and studied the international principles, frameworks and tools of IMM, as well as overseas and domestic good practices, and identified issues and solutions to be considered in implementing IMM. As a result of these discussions, "Guidebook for IMM for Impact Investment", and the " Discussion Paper Refining the Global Standard of Impact Measurement and Management- Views from a Japanese Working Group were prepared and released.
The IMM approach is in a developmental stage toward the formation of a "de facto standard" and there is a possibility that new ideas and approaches will be developed in the near future. With this background, the guidebook focuses on displaying the most advanced practical knowledge in Japan and abroad. The discussion paper also presents the unique Japanese perspective on how to set impact themes such as regional revitalization and aging society with low birthrate.