IMPReFi, a token-based ecosystem for value for impact to support impactful business company's finance (currently under construction)
Team
Core Member
Lead the planning and execution of Impact/Sustainability strategies on for corporations and financial institutions. Priorly, worked in a Japanese financial group, a strategy consulting firm, and a bigdata company, involved in the planning of long-term visions, mid-term plans, business strategies, and new business development. Bachelor of Science degree from the University of Tokyo.
Reona Sekino
Representative Steward, Founder
After working for a major financial SIer and a consulting firm, he co-founded the firm. He has experience in project management of middle and back office system development for banks and securities firms, fund formation using non-financial data in the asset management area, and ESG/impact assessment support for financial institutions. Bachelor of Education from the University of Tokyo.
Since its official release last December, we have been receiving feedback from investors (institutional investors and venture capitalists) and business companies (including start-ups), and have been developing more effective functions, especially from the practical viewpoint of impact management. As a major update, we are pleased to announce the release of an automated function utilizing AI, which we have been testing and developing for some time.
With this, impactlake™, which has been offered as an “impact management tool,” will be positioned as an “impact management agent” for more individualized and flexible operations, based on the concept of “eliminating the need for personalization in the formal aspects of impact management. The company’s impactlake™ will be positioned as an “impact management agent” for more individualized and flexible operations, and will play a broader role in operations for the execution of sustainability strategies.
Background
The importance of sustainability management has become a given fact for many companies. On the other hand, many companies are still trying to integrate these efforts into their management strategies, utilize them in business and investment decision-making, and promote them as part of their corporate culture to their employees and stakeholders. In this context, we understand that the concept of impact (not a word) can function as a common language for multi-stakeholders in the creation of corporate and social value.
On the other hand, it is also true that there are still challenges in impact management from both quantitative and qualitative perspectives, and IMPACTLAKE has been providing various services to help institutional investors, business companies, and other impact generators overcome such hurdles. We will continue to expand these activities in the future. As such activities are expected to expand further in the future, IMPACTLAKE has developed this solution to enable a gradual shift from outsourcing to self-management and in-house production, and to improve company-wide understanding and awareness of impact management, by enabling those who create impact to accumulate their own know-how and information. The solution was developed to enable a gradual shift from outsourcing to in-house production and to improve company-wide understanding and awareness of impact management.
The development of the methodology is based on IMPACTLAKE’s knowledge of impact management at various stages and in various industries through various types of support, and reflects the methodology developed through collaboration* with major institutional investors and academic institutions with the aim of establishing impact management from a practical viewpoint. While further development and integration of methods in this area is expected in the future, IMPACTLAKE and impactlake™ will continue to examine the various frameworks and functions from a practical perspective.
The UPDATE adds functions such as automatic judgment and information output using AI to the existing impact management functions, especially for areas with a high degree of flexibility (e.g., initiatives and target issue areas that differ from user to user). (Additional functions will be released in due course.)
Automated Logicmodel Building
Enter information (free text allowed) about the activity to be evaluated and managed
Based on the responses, a standard model provided by the company or a model defined by the user himself/herself that has the potential to contribute is identified, and a logic model is automatically created
A conventional questionnaire-style wizard can also be used in parallel. Conventional survey-type wizards can also be used in parallel.
Automated Report Issuing
Logic models and KPIs organized qualitatively and quantitatively by the impact management function are imported.
Based on the input information, content is automatically output according to a template structure that matches the purpose. (Templates will be added sequentially.)
Update and proofread based on automatically output information, and output proofread content in various formats (.pptx, .docx, .html)
Finalize reports (including design) and Web pages directly as needed.
Analysis of Future Financial Impact
Models are available not only for external economic impact (social impact), but also for the impact on the company’s future finances.
The time horizon and scope of impact can be set as appropriate, and Monte Carlo simulations can also be performed. Results can be viewed on a dashboard.
Others (Released soon)
Impact management assistant functionality using AI that has already learned various types of information related to impact management
Output format support and workflow functionality for external certification
etc…
IMPACTLAKE will continue to promote the development of solutions that contribute to impact management.
Contact
If you have any questions or need confirmation regarding this release, please click below.
IMPACTLAKE has entered into a strategic business alliance agreement with Edge International, Inc. (Location: Minato-ku, Tokyo; President: Yoshitaka Aso), Japanese Leading IR support firm, to strengthen corporate transformation (CX) support for client companies.
As an IR support company with a top-class track record in the industry, Edge International, Inc. has been helping client companies build a corporate value enhancement story that appeals to their uniqueness and future potential through the production of integrated reports. With the spread of integrated reports and the development of a framework for ESG information disclosure, the information disclosed by companies has been expanded, and dialogue with investors and other stakeholders has become more fulfilling. At the same time, it will become increasingly important to explain more logically how the information is related to the uniqueness and future potential of the company. In addition, a logical growth story and quality content drawn from information collected extensively while working with the client company will become a powerful tool to support corporate reform not only in the area of information disclosure, but also in terms of human resources, organization, and business.
Through this strategic business alliance, the two firms will further improve the quality of corporate communications by making the growth stories of existing and new clients more logical and actionable. Furthermore, we aim to realize sustainable and competitive management of Japanese companies by combining “verbalization and storytelling” with “impact management support”.
IMPACTLAKE will continue various initiatives and collaborations in the field to promote the simultaneous achievement of social value creation and sustainable growth for companies, contributing to the realization of a sustainable society.
We will formulate a concept for a new business that captures social issues and the risks and opportunities that arise from these issues, and consider specific launch policies that are in line with the company’s assets and capabilities.
Examination and promotion steps (example)
1Identify key areas
From the perspective of sustainability strategy, identify social issues and themes that are particularly important from the perspective of the company’s impact and capabilities
2Develop a range of business ideas
Based on the issues and themes identified, comprehensively identify solutions and businesses using models provided by the company
3Setting priorities and selecting projects to promote
Initially organize the attractiveness of each issue and theme area in terms of market, competition, impact, contribution to purpose, and company strengths
4Specify business ideas
Formulate initial business strategies by carefully examining the market, competition, needs, etc., to concretize business in promising areas
The training aims to promote a basic understanding of sustainability and its impact from a company-wide and management perspective, especially among middle management and employees who will lead the practical implementation of the program.
Steps to consider and promote (example)
1Training objectives and design
Training implementation Adjust the theme, format, participants, volume, participating experts, and methods to best suit the objectives of the training
2Implementation of training
We basically prepare content, etc., and implement the actual training according to the designed content
3FB and review
Based on FB from participants and stakeholders, consider additional training, distribution content, and suggestions for future measures
4Disclosure of results internally and externally
Content creation regarding training content and results (including both superficial and practical aspects such as impact evaluation conducted as a subject in the training)
We will realize corporate transformation (CX) in terms of organization and systems by redesigning the functions required for sustainability management in a step-by-step manner, which tends to be decentralized and stove-piped.
Examination and promotion steps (example)
1Check sustainability strategy
Find out existing sustainability strategies (if none exist, consider them individually)
2Examination of the ideal organization required to solve the issues
In light of current issues and issues about to emerge, zero-based examination of what kind of organizational structure and human resources are needed
3Identify Gap & Fill
Identify what is lacking/sufficient against the ideal system, and consider complementary actions for any shortfall
4Examination of optimal transition plan
Organize and prioritize what measures should be implemented in what time frame against the ideal organizational structure as a scenario
By setting short-term process KPIs for contributions from a sustainability perspective, which are difficult to incorporate into short-term evaluations, and evaluating them within the context of annual milestones, we will steadily realize our medium- to long-term strategies.
Examination and promotion steps (example)
1Design of process goals
Corporate Set sustainability targets for each division and group unit in a consistent manner based on the sustainability strategy
2Design evaluation criteria for each division
Specify what criteria will be used for each evaluation unit organization in light of specific business activities, etc.
3Consultation and coordination with relevant departments
Consider the desired image and potential, and integrate as a vision in light of feasibility, etc.
4Development of evaluation tools
Develop and prepare specific evaluation tools (evaluation charts, feedback forms, self-evaluation sheets, etc.) based on evaluation criteria
4Pilot implementation, etc.
Implementation to a limited group and training and briefing sessions for overall implementation
As typified by the My Purpose program and other such programs, the company maximizes value creation by visualizing and connecting the vector of each individual human resource’s aspirations and the company’s raison d’etre.
Consideration and promotion steps (example)
1Detailing the Purpose
The company Clarify as comprehensively as possible what kind of projects and initiatives will achieve the Purpose that the company aims for
2Confirm the paths that human resources have
Determine what paths they have as individuals, what activities in the company will realize them, and how motivation can be maximized
3Confirming the alignment of the company’s and human resources’ paths
Evaluating the degree of alignment of each individual’s paths with the business or other paths that each human resource is involved in, and checking the relationship with their performance
4Incorporating into human capital management measures
Review the issues and potentials identified in the previous step and extract measures such as reviewing human capital allocation and mission settings
We support the design and organization of dialogue, especially from a sustainability perspective, as well as the determination of the importance of issues, and the consideration and implementation of countermeasures and action plans in investor requests and dialogue.
Examination and promotion steps (example)
1Current analysis and assumption organization
Investors List and clarify questions and concerns (especially those related to sustainability) from stakeholders such as investors
2Formulate a response plan
Organize what information and stance to provide in response to the concerns raised in 1, and what actions are necessary to achieve this
3Internal coordination and data collection
Work with relevant departments (management, finance, sustainability, etc.) to gather information necessary for disclosure and request actions in advance
4Communication Implementation
In accordance with the plan, conduct meetings with investors, presentations, and various reports and disclosures to meet expectations
Using frameworks such as Impact-Weighted Accounts (HBS), we evaluate business performance and investment projects in consideration of the external economics of products, services, etc.
Steps for consideration and promotion (example)
1Boundary setting and impact identification
Set selection criteria for initiatives and target areas for impact accounting, and identify initiatives and areas that meet the criteria
2Set KPIs
Set KPIs and their calculation formulas for measuring targeted impact in accordance with IWA or other framework
3Data Collection and Analysis
Gather statistical and internal information that matches the set KPIs. Adjust KPIs and formulas if appropriate data does not exist
4Calculate overall impact and integrate with financials
Aggregate impact calculated based on formula and KPIs to the appropriate extent, compare, analyze and integrate with various financial indicators, etc.
Visualize and quantify the economic and social significance of a company, business, product, service, etc., and appeal to customers, consumers, and other stakeholders in an effective manner.
Steps for consideration and promotion (example)
1Impact assessment
Target Organize the impact of the business, products, and services, including quantitative aspects as necessary
2Stakeholder analysis and engagement
Identify stakeholders interested in sustainability and develop communication strategy incorporating their expectations and opinions
3Strengthen brand proposition
Clarify unique brand proposition with targeted impact creation story at its core
4Incorporate into design, story, etc.
Based on communication strategy and brand proposition, create optimal design and messaging
While responding to disclosure standards for major global issues (e.g., decarbonization, biodiversity, supply chain, etc.), the company will present its strategic initiatives to the outside world in a consistent manner.
Example of steps for consideration and promotion
1Wide definition of what we want to be
Medium- to long-term Identify business and social values to be realized in the mid- to long-term through discussions among stakeholders
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
3Formulate a vision
Compare the desired state and potential, and integrate into a vision in light of feasibility, etc.
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 realize the investment strategy to realize the management and sustainability strategies, develop investment criteria and management policies, and create expected results and synergies by sharing the perspective with individual companies.
Examination and promotion steps (example)
1 Identifying risks and opportunities in sustainability
Identify which issues have large risk exposure and which areas are difficult to solve by the company alone
2Formulate complementary policies
For each complementary area, formulate policies for venture investment, consortium formation, acquisition, in-house development, etc., according to difficulty level, technology maturity, etc.
3Consolidate policies for utilizing CVC investment
Consider how to make direct investments, small investments, fund investments, etc. depending on the importance and market maturity of the target area
4Concrete investment criteria design and sourcing
Basic criteria for investment, criteria from an impact perspective, and preparation on the body side required for subsequent collaboration and incorporation of functions
Maximize corporate value and potential by redefining the business portfolio from a financial perspective (growth potential and scale) as well as a non-financial perspective (social value, human capital, etc.).
Examination and promotion steps (example)
1Analysis of individual businesses
Existing businesses In addition to profitability, market growth potential, and competitiveness, evaluate the social impact and positioning in the value creation story of existing businesses
2Understand future opportunities and risks
Evaluate the impact on the business portfolio based on trends in target markets, customer needs, competitive conditions, and the impact of social issues on fundamentals
3Redesign business portfolio
Plan reallocation of management resources, expansion and contraction of business areas, launch of new businesses, M&A, liquidation and sale of inefficient and inconsistent businesses
4Development of implementation plan
Put into concrete transition plan and action plan, and promote after setting up responsible departments and businesses
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)
1 Identifying social impacts
Corporate Evaluate not only negative impact from activities but also positive impact from business activities
2Corporate impact assessment by social issues
Identify social issues that could impact future business performance and finances, and assess their specific impact
3Materiality identification
Identify (material) themes to focus on, taking into account the company’s impact and the potential for solutions
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)
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
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
3Formulate a vision
Compare the desired state and potential, and integrate into a vision in light of feasibility, etc.
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)
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
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
3Formulate a vision
Compare the desired state and potential, and integrate into a vision in light of feasibility, etc.
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)
1Selection of evaluation targets
Strategically Identify and select evaluation targets based on certain boundaries, such as initiatives of high importance
2Visualization of impact
Define the impact created by the evaluation target, and build a logic model while utilizing impactlake™
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.
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)
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
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
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)
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)
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
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
3Confirmation with portfolio companies
Confirm evaluation results with investment targets, etc., and confirm and reconcile perceptions regarding current status and future policies
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)
1Analysis of current business strategy
Business Identify what assets (systems, customer base, basic technology, etc.) have been established and what the future challenges are
2Organize future strategic options
Explore a wide range of possibilities based on target market trends, customer needs, competitive conditions and social issues
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
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
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
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
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
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)
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.
2Impact Evaluation
Construct logic models for major projects and initiatives and conduct impact estimation consistent with actual results and future plans
3Impact Disclosure
Contents are incorporated into impact reports, websites, equity stories, etc. to demonstrate the company’s intensity for impact generation
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)
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.
2Organize necessary actions
Identify specific action items for ESG themes of particular importance, focusing on bench marks of other companies
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
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)
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.
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)
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) )
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
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
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.
3Quantify impact
Map impact creation of existing portfolio companies and investment pipeline projects as “activity” against the logic model developed in 2
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)
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 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
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)
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
2Implementation of impactlake™
Develop management policy at portfolio company in a manner tied to the investor’s impact model, request/adjust reporting flow, etc.
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
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)
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
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™
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
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)
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
2Organize future strategic options
Explore a wide range of possibilities based on target market trends, customer needs, competitive conditions and social issues
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
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)
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
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
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
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)
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
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
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
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)
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
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.)
3Confirmation with investee
Confirm evaluation results with investee (and possibly future stakeholders) to confirm and reconcile perceptions regarding current and future policies
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)
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.
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)
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)
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
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
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
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)
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
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)
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
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
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
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
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
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
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)
1Investee impact evaluation
Visualize and quantify the impact created by the investee and identify drivers to maximize growth and utility
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
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
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)
1Development of impact evaluation process for eligible projects dt>
Initial development of viewpoints, management frequency, reporting system, etc. for each issue area in line with the loan product design
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
3Execution of individual projects
Visualization and quantification of the social value (impact) of projects to be financed based on business plans, etc.
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
Sustainability management policies are disseminated throughout the company in various formats, including internal reports, owned media, and KPI design, to maximize results.
Consideration and promotion steps (example)
1Impact assessment
As for the impact that the company solves Organize the social issues to be solved by the company and the impact to be created, including quantitative aspects if necessary
2Design internal KPIs and policies
Incorporate into KPIs to measure the assessed impact and policies for business activities to make steady progress
3Communication Story
Build a communication story based on information organized in the previous step of the process
that meets expected results, such as increased employee motivation
4Posting on owned media and internal reports
Posting sustainability stories on owned media to deepen internal understanding, explaining various policies and their background, etc. Internal dissemination of the
We will identify the disclosures and actions required for various certifications and ratings through benchmarking, etc., and consider whether disclosure policies and measures are in line with the importance from the investor’s viewpoint.
Examination and promotion steps (example)
1Current status analysis
Aspects of existing external evaluation and Establish ESG issues of high importance based on feedback from existing external evaluations and ratings, differences with others, etc.
2Organize necessary actions
Identify action items to improve ESG ratings, focusing on benchmarks of other companies
4Organize potential for impact creation
Based on vision, identify actions for positive impact creation and consider them in the same list as ESG actions
3Set priorities and roadmap
Consider steps to be taken based on importance in terms of rating evaluation, strategic importance, feasibility (required time, cost, etc.), and size of impact
We support the planning, information gathering, and production of integrated reports, sustainability reports, and impact reports that are tailored to stakeholder dialogue plans and that are particularly aware of stories from the investor’s perspective.
Consideration and promotion steps (example)
1Selection of evaluation targets
The purpose of disclosure Set boundaries in consideration of the purpose of disclosure, and select businesses and impacts to be disclosed
2Visualization of impact
Build a logic model for the targeted impact and organize activities to impact
3Set KPIs and quantify impact
Set KPIs consistent with the organized logic model and estimate the impact created in line with actual results and future plans
4Report creation and disclosure
Determine communication plan based on visualized and quantified information and reflect in various reports
We support the formulation of mid- to long-term R&D strategy concepts that are consistent with the sustainability strategy, and the establishment of policies such as stage gates to make these strategies effective.
Examination and promotion steps (example)
1 Identifying key areas
Identify technologies and development themes of particular importance from the perspective of sustainability strategy
2Organize future trends for each theme
Emphasize what kind of technological evolution and social implementation is expected for each issue area and its impact and influence
3Evaluation of feasibility
Emphasize the time frame and probability of feasibility in light of the company’s capabilities, existing capital and technology
4Incorporation into concrete strategies
Prioritize and sequence initiatives based on the organized information and organize as a roadmap
In addition to “risks” regarding sustainability, we identify “opportunities” based on current management capital, formulate optimal solutions for future corporate value, and incorporate them into action plans.
Steps for consideration and promotion (example)
1 Identifying risks and opportunities
General Identify future risks and opportunities using existing frameworks (e.g., Encore for biodiversity)
2Search for and identify opportunities
Search for specific opportunities that can be solved by the company and identify risks that the company cannot handle alone
3Formulate specific action policies
Identify priority issues and formulate a roadmap and action plan in alignment with vision and management strategy
4Progress and performance management
Conduct concrete impact assessment and quantitative and qualitative management of intermediate milestones in the process of realization