Overview

GSG Impact JAPAN National Partner (formerly known as the GSG Japan National Advisory Board), whose secretariat is managed by the Japan Social Innovation and Investment Foundation (SIIF), held the second edition of its workshop titled “Dialogue and Workshop on Impact Measurement and Management (IMM) and Impact Indicators between Investors and Impact Enterprises” in March 2025.

Background

While Japan’s impact investment market has grown to over 17 trillion yen (*), impact enterprises still face many challenges to create a positive impact while improving their corporate value from pre-IPO to post-IPO stages, with limited precedent examples. In response, GSG Impact JAPAN launched the “Impact IPO Working Group” in July 2023 and published practical guidance for impact enterprises in May 2024.

Workshop Objective

This workshop was designed to provide enterprises with an opportunity to engage in candid dialogues with impact investors and IMM professionals, discuss practical challenges they face in the IPO and post-IPO process, and improve the guidance based on practical needs in the future.

(*) Reference
“Impact Investing in Japan: Current Status and Issues – FY2024 Survey” (SIIF / GSG Impact JAPAN National Partner)

Global Dialogue
In this second edition, two pioneering global public equity impact investors joined
discussions with four Japanese enterprises (three private, one listed), alongside
domestic public equity investors and IMM experts.

Global Dialogue
In this second edition, two pioneering global public equity impact investors joined discussions with four Japanese enterprises (three private, one listed), alongside domestic public equity investors and IMM experts.

Participants Private impact companies:TBM,Rehas,Ubie
Listed impact companies:EUCALIA
International Investors:Ed Whitten (Baillie Gifford),Henk Jonker (Triodos Investment Management)
Japanese Experts:Shohei Iwaya,Katsuji Imata (SIMI)

Outcomes
Day 1:One-on-one dialogues and feedback.
Day 2: Collective reflection and learning among participants.
Key takeaways included: - Aligning business and impact strategy:

There were a number of questions from impact investors regarding the scale of the issues being addressed, the attributes of beneficiaries and customers, the company’s unique contributions to impact creation (its competitive advantage), and the management of various forms of capital, including non-financial assets such as human capital. Particularly, oversea investors emphasized the importance of providing background information on Japan’s institutional frameworks and cultural context.
- Consistent IMM aligned with mission:

At the same time, both enterprises and investors acknowledged that there are various challenges in implementing IMM.
In such cases, it was emphasized that it is crucial to disclose information as transparently and faithfully as possible, clearly explaining the limitations of impact measurement and the reasons for any changes.

- Setting appropriate impact indicators: There were expectations for enterprises to explain the relationship and alignment between their impact KPIs and financial KPIs or medium-term business strategies, as well as to establish quantitative or qualitative indicators that measure outcomes for ultimate beneficiaries, such as individuals and the environment.
- Managing negative impacts:

Rather than evaluating and reporting comprehensively, investors shared the view that companies should identify and manage the most material risks in alignment with their mission, purpose, and core values.
- Importance of early dialogue with impact IPO investors:

For impact enterprises aiming to go public, engaging in early and ongoing dialogue with long-term public equity impact investors from the pre-IPO stage is considered essential.

Link
Detailed summary: https://impactinvestment.jp/activities/impact-ipo.html

Event Info
Dates: March 13 & 18, 2025
Format: Online
Organized by: GSG Impact JAPAN National Partner
Secretariat: SIIF Impact Economy Lab

Related Resources - What is an “Impact IPO”? (Japanese)

- Impact IPO Working Group – GSG Impact JAPAN Activities
https://impactinvestment.jp/activities/impact-ipo.html

- Guidance for Disclosure and Dialogue by Impact Enterprises
https://impactinvestment.jp/resources/report/20240510.html

- Overview and Background of Guidance Development
https://note.com/siif_pr/n/n26f97102a19e

- Report on First IMM Workshop
https://impactinvestment.jp/news/20241225.html