impactlake™
impactlake™ is the industry’s first impact management agent that provides one-stop support for impact management and impact accounting for companies, investors, and other impact-generating entities to maximize the impact created. We cover the main processes required for impact management, from information gathering and modeling to impact accounting and internal and external disclosure.
Fully Support for Impact Management
Strategy
- Scenario planning from a sustainability perspective
- Prioritization of actions in the overall sustainability strategy including ESG
- Introduction of impact criteria in new business, R&D, etc.
Business
- Building sustainability-related KPIs and other criteria for business and investment, and designing specific evaluation flows
- Rapidly identifying sustainability-related trends, events, and risks relevant to your business
Internal Engagement
- Employee assessment from an impact and ESG perspective
- Internal engagement, spreading sustainability strategy
External Engagement
- Basic Impact Management (IMM)
- Impact Reporting and Web Disclosure Support
Function of impactlake™
This impact management agent solves the above issues from both qualitative and quantitative perspectives, and provides functions and information that cover the full range of processes required for impact management. It mainly provides the following functions.
Visualization / Planning
- Materiality identification and future financial impact calculation
- Automatic logic model determination and construction
- Provision of standard logic models by area
- Impact management support
Measurement / Management
- Automatic impact quantification functionality in conjunction with impact models
- Dashboard
- Impact (KPI) planning and forecasting
Continuous Update
- Impact Accounting (integrated financial metrics)
- Automatic Impact Reporting
- Impact Portfolio and Divisional Management
- Certification Efficiency (*Under construction)
Value of impactlake™
The trade-off between “rigor,” “usefulness,” and “feasibility” that has existed until now in impact management will be reconciled by leveraging the power of digital and AI.
Strictness
General-purpose visualization and quantification model while ensuring individuality
Availability
Streamlining and optimization of various operations using digital and AI
Utility
Provides a practical set of functions based on the latest IMM knowledge
impactlake™ Realizes…
We will continuously implement and establish impact management burden reduction and sophistication within the organization to realize our mid- to long-term sustainability strategy.
Visualizing to Utilize
Focusing on how to leverage, rather than simply visualize, the information to promote seamless use in strategy, disclosure, and fundraising.
Stock Practical Knowledges
What impactlake offers is not a box for numerical management but knowledge and processes, their constant updating
Training / Culture Building
Impact management achieves its true purpose by allowing organizations to run on their own, rather than through continuous external intervention.
Let’s work together with impactlake™ to realize and advance impact management.
Based on double materiality (corporate → social impact + social → corporate impact), the resolution will include actual impact and factors of high importance, and clarify the connection to specific actions.
Consideration and promotion steps (example)
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- 1 Identifying social impacts
- Corporate Evaluate not only negative impact from activities but also positive impact from business activities
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- 2Corporate impact assessment by social issues
- Identify social issues that could impact future business performance and finances, and assess their specific impact
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- 3Materiality identification
- Identify (material) themes to focus on, taking into account the company’s impact and the potential for solutions
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- 4Development of individual policies
- Incorporation into a roadmap for business-level initiatives, including issues that are important but for which the company has little controller
Clarify and articulate Corporate Value through visualization of financial and social values, and incorporate and align them into mid- to long-term plans for each business and management activity.
Examination and promotion steps (example)
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- 1Wide definition of what we want to be
- Medium to long-term Identify the business and social values to be realized in the mid- to long-term through discussions among related parties
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- 2Inventory of corporate value potential
- Inventory of various types of capital that will be the source of future corporate value and evaluate their potential for creating financial and social value
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- 3Formulate a vision
- Compare the desired state and potential, and integrate into a vision in light of feasibility, etc.
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- 4Integrate into mid- to long-term strategy
- Based on the vision, formulate management and business strategies that will serve as a roadmap for realization
We will consider solutions to key global issues (e.g., decarbonization, biodiversity, supply chain, etc.) as important opportunities, and consider how to commercialize and monetize them by leveraging our own strengths.
Examination and promotion steps (example)
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- 1Widening out the desired state
- Medium- to long-term Identify the business and social values that you want to realize in the mid- to long-term through discussions among stakeholders
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- 2Inventory of corporate value potential
- Inventory of various types of capital that will be the source of future corporate value and evaluate their potential for creating financial and social value
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- 3Formulate a vision
- Compare the desired state and potential, and integrate into a vision in light of feasibility, etc.
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- 4Integrate into mid- to long-term strategy
- Based on the vision, formulate management and business strategies that will serve as a roadmap for realization
Visualize and quantify the social value (impact) created by individual projects and initiatives, and use this information for external disclosure and PR, as well as for internal decision making regarding projects and investments.
Steps for consideration and promotion (example)
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- 1Selection of evaluation targets
- Strategically Identify and select evaluation targets based on certain boundaries, such as initiatives of high importance
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- 2Visualization of impact
- Define the impact created by the evaluation target, and build a logic model while utilizing impactlake™
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- 3Quantification of impact
- Estimate and economically value impact created from actual results and future plans by setting the logic model and integrated KPI for each item developed in 2.
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- 4Implementation of ongoing impact management
- Continued management of issues identified during the evaluation process, such as insufficient data at this time or identification of more important measures, and formulation of action plans in an appropriate term
We will establish an internal flow and system to link diverse corporate initiatives to the value creation story and manage them in an integrated and sustainable manner.
Examination and promotion steps (example)
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- 1Examination of impact management policy
- Review the basic overall picture, including identification of utilization objectives, management categories in the short-, medium-, and long-term, and identification of lead and related departments
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- 2Formulate a company-wide impact model
- Formulate an impact model (logic model with integrated quantitative indicators) at the company-wide level by linking it to each department and business while detailing the path and value imagination story
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- 3Permeate into individual department level
- Develop management policies in individual departments in a manner tied to the company-wide model, request and adjust reporting flows, etc. (may be introduced in stages, for example as pilot projects)
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- 4Update company-wide impact strategy and FB to individual departments
- After a certain period of monitoring, expand FB and management targets according to progress, review work flow and utilization policy, etc. cyclically
By determining the robustness and suitability of investment projects from impact and ESG perspectives, we support implementation decisions that meet the needs of investors and stakeholders.
Consideration and promotion steps (example)
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- 1Current assessment of investment targets and projects
- Organize what kind of impact and how much impact will be created, and what are the risks and opportunities from various ESG perspectives
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- 2Effect verification by event
- In light of the event (investment, M&A, etc.) that is the objective of DD, consider how the impact drivers and ESG items of the portfolio company will change
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- 3Confirmation with portfolio companies
- Confirm evaluation results with investment targets, etc., and confirm and reconcile perceptions regarding current status and future policies
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- 4Final evaluation and formulation of action plan
- Presentation of final evaluation results and proposal of proposed measures and roadmap required in the future based on current status
In addition to financial perspectives (growth potential and scale), business strategies are reconstructed from non-financial perspectives (social value, human capital, etc.) to maximize growth potential.
Examination and promotion steps (example)
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- 1Analysis of current business strategy
- Business Identify what assets (systems, customer base, basic technology, etc.) have been established and what the future challenges are
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- 2Organize future strategic options
- Explore a wide range of possibilities based on target market trends, customer needs, competitive conditions and social issues
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- 3Evaluation of strategic options
- In addition to marketability and growth potential for each option, conduct impact evaluation and select strategic options with the final story in mind
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- 4Develop an execution plan
- Develop into a concrete transition plan/action plan and promote after setting up the responsible department and business
By visualizing and quantifying the impact created through the business and integrating it with the business plan, we can build a more complete corporate growth story.
Example of steps for consideration and promotion
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- 1Impact assessment
- Visualize and quantify the impact created by the project Visualize and quantify the impact created by the business and organize it as a story of medium- to long-term value imagination
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- 2Organize the impact of the event
- Organize what positive impact or risk will arise on the impact created by the company due to the intended event such as financing, listing, M&A
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- 3Align with business plan and capital policy
- Align various KPIs, etc. with future plans, and at the same time, align with existing stakeholders and target investor communications
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- 4Reflection in equity story
- Integrate organized information into equity story and use for fundraising and stakeholder presentations
We support the preparation and introduction of management to promote the social value created by the company to impact investors and responsible investors at the time of IPO.
Steps to Consider and Promote (example)
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- 1Implementing Impact Management
< dd>Create an implementation policy, structure, and flow for continuous IMM (Impact Measurement & Management), which is a requirement for an impact IPO.
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- 2Impact Evaluation
- Construct logic models for major projects and initiatives and conduct impact estimation consistent with actual results and future plans
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- 3Impact Disclosure
- Contents are incorporated into impact reports, websites, equity stories, etc. to demonstrate the company’s intensity for impact generation
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- 4Dialogue with investors, brokers, etc.
- Share and dialogue with impact investors, other institutional investors, and other stakeholders on the company’s generated impact and impact management status and policies
We will consider flexible responses to ESG issues, which are increasingly requested by investors as companies grow, in accordance with the company’s stage, size, and business form.
Examination and promotion steps (example)
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- 1Current situation analysis
- Existing external assessment and Establish ESG issues of high importance based on existing external assessments, feedback from stakeholders, differences with other companies, etc.
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- 2Organize necessary actions
- Identify specific action items for ESG themes of particular importance, focusing on bench marks of other companies
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- 4Organize potential for impact creation
- Based on vision, identify actions for positive impact creation and consider them in the same list as ESG action list
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- 3Set priorities and roadmap
- Consider response steps in light of importance from external evaluation perspective, strategic importance, feasibility (required period, cost, etc.), and size of impact
We will establish and provide a flow and structure for implementing fund-level impact management in an integrated and sustainable manner with investment activities.
Examination and promotion steps (example)
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- 1Examination of impact management policy
- Review the basic overall picture, including short-, medium-, and long-term management categories, management details from investment execution to exit, etc.
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- 2Formulate fund-level impact model
- Detail the fund’s purpose and value imagination story while tying it to each project in the investment pipeline and portfolio companies. Develop an impact model (logic model integrating quantitative indicators)
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- 3Infrastructure development
- In order to have portfolio companies consider impact management in an integrated manner with the fund-level model, impactlake™ was introduced at both the fund and portfolio companies (we also support it) )
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- 4Infiltration at the portfolio company level
- Execute impact management for individual portfolio companies in a manner tied to fund-level impact models and request and adjust reporting flows, etc. (e.g., as pilot projects) (Possible phased introduction)
Visualize and quantify the social value (impact) created by the fund through the investee, and use it for external disclosure, PR, and various decision making.
Example of steps for consideration and promotion
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- 1Formulation of a fund-level perspective
- Sort out the impact you want to achieve at the fund level and the issues you want to solve through the “input” of investment activities
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- 2Formulate a fund-level logic model
- While utilizing impactlake™, decompose the impact creation paths associated with the paths in as generic a manner as possible and build a logic model for the fund as a whole.
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- 3Quantify impact
- Map impact creation of existing portfolio companies and investment pipeline projects as “activity” against the logic model developed in 2
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- 4Impact quantification
- Set KPIs integrated with the logic model developed in 2, collect direct and indirect indicators from portfolio companies via impactlake™, and create impact based on these indicators Estimate and economic value the impact
We support the planning, information gathering, and production of management reports, sustainability reports, and impact reports in accordance with the dialogue plans with LPs and other stakeholders.
Consideration and promotion steps (example)
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- 1Selection of evaluation targets
- (All investment targets (In the case where criteria are set instead of all investments) Boundaries are set in consideration of the purpose of disclosure, and investees and impacts to be disclosed are selected
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- 2Collect information from portfolio companies
- Request qualitative and quantitative information from portfolio companies on impact management, status of impact creation, KPI basis, etc., and receive through impactlake™, etc.
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- 3Impact quantification
- Estimates the impact of the fund as a whole against a predefined impact model and formula, based on the results and future plans gathered from the portfolio companies
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- 4Reporting and disclosure
- Determine communication plan with LPs and other stakeholders based on visualized and quantified information and reflect it in content and reports
Establish an internal flow and system to link diverse initiatives at portfolio companies to the value creation story and manage them in an integrated and sustainable manner.
Examination and promotion steps (example)
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- 1Examine impact management policy
- Review the basic overall picture, including identification of the purpose of utilization, management categories in the short-, medium-, and long-term, communication policy with existing and new investors, and the assignment of staff in charge
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- 2Implementation of impactlake™
- Develop management policy at portfolio company in a manner tied to the investor’s impact model, request/adjust reporting flow, etc.
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- 3Develop impact model
- Develop impact model (logic model with integrated quantitative indicators) by linking to each business and initiative while detailing the investee’s path and value imagination story
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- 4Verify consistency with fund impact
- Confirm consistency with fund-level impact to be defined separately, then move to regular management. Regularly report progress on KPIs, etc.
Visualize and quantify the social value (impact) created by the portfolio company’s businesses and initiatives, and use this information for external disclosure and PR, as well as for internal decision making regarding business and investment.
Steps for consideration and promotion (example)
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- 1Selection of evaluation targets
- Strategically Identify and select specific evaluation targets among the portfolio company’s businesses and initiatives with certain boundaries, such as initiatives of high importance
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- 2Visualization of impact
- Define the impact created by the investee and build a logic model consistent with the fund-level impact model while utilizing impactlake™
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- 3Quantification of impact
- Set KPIs for each item that are integrated with the logic model developed in step 2 and consistent with the fund level, and estimate and economize the impact created based on actual results and future plans
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- 4Implementation of ongoing impact management
- Continued management of issues identified during the evaluation process, such as insufficient data at this time or identification of more important measures, and development of action plans in an appropriate term
Based on the business seeds such as technologies possessed by the investee, we determine whether there are enough business opportunities from the perspective of solving social issues and creating impact, and link them to the most appropriate business strategy.
Examination and promotion steps (example)
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- 1Analysis of current business strategy
- Investment Identify what assets (systems, customer base, basic technology, etc.) have been established and what the future challenges are, in addition to the status of the business ahead
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- 2Organize future strategic options
- Explore a wide range of possibilities based on target market trends, customer needs, competitive conditions and social issues
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- 3Evaluation of strategic options
- In addition to marketability and growth potential for each option, conduct impact evaluation and select strategic options with the final story in mind
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- 4Formulate an execution plan
- Incorporate into a concrete transition plan and action plan, and promote after setting the person in charge, KPI, schedule, etc. within the investment partner
We provide comprehensive support for impact evaluation and ongoing development of impact management systems to enable portfolio companies to realize impact IPOs.
Steps to Consider and Promote (Example)
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- 1Implementing Impact Management
- Support for portfolio companies to establish a policy, structure, and flow for implementing continuous IMM (Impact Measurement & Management), a requirement for impact IPO
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- 2Impact Evaluation
- Construct a logic model of the investor’s major projects and initiatives, and conduct impact estimation consistent with actual results and future plans
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- 3Impact Disclosure
- Integrate content into impact reports, websites, equity stories, etc. to demonstrate the investor’s and existing shareholders’ commitment to creating impact Show the tension as an investee and existing shareholder to create impact
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- 4Dialogue with investors, brokers, etc.
- Share and dialogue with stakeholders, including impact investors and other institutional investors, about the impact created by investees and impact management status and policies
By visualizing and quantifying the impact created through the portfolio company’s business and integrating it with the business plan, we build a more complete corporate growth story.
Examination and Promotion Steps (example)
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- 1Impact Evaluation
- Visualize and quantify the impact created by the investee’s Visualize and quantify the impact created by the business of the investee, and organize it as a story of medium- to long-term value imagination
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- 2Organize the impact of the event
- Organize what kind of positive impact or risk will be generated on the impact created by the investee due to the intended event such as fund raising, listing, M&A
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- 3Align with business plan and capital policy
- Align various KPIs of the investee with future plans, and at the same time, align with existing stakeholders and target investor communications
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- 4Reflection in equity story
- Integrate organized information into investee’s equity story and use for fundraising and stakeholder presentations
As an investor who has promoted impact investing in IPOs and M&A, we will evaluate whether the event will contribute to the future growth of the investee and, by extension, to the creation of greater impact.
Steps to Consider and Promote (Example)
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- 1Evaluation of the current status of the portfolio company, deal, etc
- Arrange what kind and how much impact will be created by the investee’s business, and what are the risks and opportunities from various ESG perspectives
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- 2Effectiveness verification by event
- Examine what changes in impact drivers and ESG items of the investee in light of target events (investment, M&A, etc.)
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- 3Confirmation with investee
- Confirm evaluation results with investee (and possibly future stakeholders) to confirm and reconcile perceptions regarding current and future policies
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- 4Final evaluation and formulation of action plan
- Presentation of final evaluation results and proposal for future measures and roadmap based on current status
Establish a flow and system to link various initiatives in various asset classes to the value creation story and manage them in an integrated and sustainable manner.
Examination and promotion steps (example)
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- 1Examination of impact management policy
- Review basic overall picture, including short-, medium-, and long-term management categories, development of management policies for each asset class, and establishment of staff in charge
-
- 2Implementation of impactlake™
- Develop management policies for each asset class and its portfolio companies in a manner tied to the investor’s impact model, request and coordinate reporting flows, etc.
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- 3Develop impact model
- Detail the impact created by each asset class and portfolio company, and develop a cross-asset class, overall impact model (logic model with integrated quantitative indicators)
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- 4Verify consistency with fund impact
- Confirm consistency with fund-level impact to be defined separately, then move to regular management. Regularly report progress on KPIs, etc.
Visualize and quantify the social value (impact) created by the portfolio company’s businesses and initiatives, and understand the short-, medium-, and long-term impact and synergies on the core businesses of the company and asset owners.
Steps for consideration and promotion (example)
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- 1 Identifying key social issues impacting core businesses
- Considering the future financial drivers of the core business, identify what upside potential and downside risks exist due to the progress or improvement of what social issues
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- 1Impact assessment
- Visualize the impact created by investment targets in each asset class and quantify the degree of impact created on important social issues within each time horizon
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- 3Other impact assessment
- Identify and quantify not only social impact but also non-financial value (human capital, intellectual capital, etc.) created and what the future financial impact is
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- 4Identification and evaluation of final future financial impact
- Based on the considerations in 1~3, what synergies will be created for the future core business and how much economic value (and social value) will they create? Based on the considerations in 1~3, what synergies will be generated for the future core business and how much economic value (and social value) will they create
We support the planning, information gathering, and production of management reports, sustainability reports, and impact reports in accordance with dialogue plans with asset owners and other stakeholders.
Consideration and promotion steps (example)
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- 1Selection of evaluation targets
- All investment targets (In the case where criteria are set instead of all investments) Boundaries are set in consideration of the purpose of disclosure, and investees and impacts to be disclosed are selected
-
- 2Collect information from portfolio companies
- Request qualitative and quantitative information from portfolio companies on impact management, status of impact creation, KPI basis, etc., and receive through impactlake™, etc.
-
- 3Impact quantification
- Estimates portfolio-wide generated impact against pre-defined impact model and formula, based on actual results and future plans collected from portfolio companies Estimation of portfolio-wide generated impact against pre-defined impact models and formulas
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- 4Reporting and disclosure
- Determine communication plan with LPs and other stakeholders based on visualized and quantified information and reflect in content and reports
We visualize and quantify the economic and social significance of the companies, businesses, products, and services in which we invest, and propose measures to maximize their performance and corporate value.
Examination and promotion steps (example)
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- 1Current analysis and assumption arrangement
- Investor Analyze the impact created by the investor, its management strategy, and its relationship to specific actions, and concretize and clarify issues
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- 2Formulate response plans and proposals
- Organize what kind of proposals and stance should be provided for the issues raised in 1, and what actions are necessary to achieve them
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- 3Implementation of communication
- Based on the plan, conduct meetings with portfolio companies, presentations, request various reports and disclosures, etc. and request responses to investor expectations
Based on the social value (impact) and trends that the portfolio aims to achieve, we will examine the combination of solutions and investment targets to minimize investment risk and maximize opportunities.
Example of steps to consider and promote
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- 1Impact model at portfolio level Visualization
- Organize an impact model of what paths are envisioned to solve the social issues in mind for the investment strategy and investment path
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- 2Organize trends and scenarios based on the impact model
- Based on the model, identify which areas can be established over what time horizon and which areas have trade-off relationships, etc. Organize key issues from a bird’s eye view
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- 3Sourcing
- Examine what kind of investment projects and investment issues can achieve the targeted effect as a portfolio while adapting to the key issues, including combinations
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- 4Investment decision making based on other investment criteria
- Build investment hypothesis and execute investment
When an investee (mainly an asset owner or a company) is ultimately acquired as its own business or function, planning is done to maximize the creation of targeted results and its external reputation.
Consideration and promotion steps (example)
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- 1Investee impact evaluation
- Visualize and quantify the impact created by the investee and identify drivers to maximize growth and utility
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- 2Confirm alignment with expected synergies
- Confirm alignment and complementary relationship between the direction and drivers identified in 1 and the strategies and capabilities of the business or organization expected to generate synergies
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- 3Examine measures to create results
- Examine measures to maximize results, from hard aspects such as capital structure, organizational structure, and management intervention, to soft aspects such as succession and integration of Purpose with Purpose
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- 4Development of an action plan
- Put into concrete transition plan and action plan, and promote after setting the person in charge
Since the sustainability initiatives to be financed are wide-ranging and highly individualized, it is necessary to implement them using appropriate indicators and with a low monitoring burden.
Steps for consideration and promotion (example)
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- 1Development of impact evaluation process for eligible projects
- Initial development of viewpoints, management frequency, reporting system, etc. for each issue area in line with the loan product design
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- 2Implementation of impactlake™
- In order to manage a wide range of deals under the same management system, a flow is established using a model provided by the Company for certain issue areas
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- 3Execution of individual projects
- Visualization and quantification of the social value (impact) of projects to be financed based on business plans, etc.
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- 4Management and monitoring during the term
- Utilize impactlake™ for post-execution reporting and management, update operational standards and flows, and engage with borrowers Execute engagement