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 published joint research results, developed with the support and collaboration of leading institutional investor and the academic institution, focusing on the evolution of impact accounting and the use of logic models in business strategies on a Japanese journal, Disclosure&IR (TAKARA D&IR Research Institute).
As businesses aim for sustainability, Impact Management—advanced ESG—is becoming more vital. Our joint research simplifies Impact Management, using Impact-Weighted Accounts to quantify impact universally. This method includes a logic model for visualizing corporate ripple effects and articulating business strategies. By adopting this integrated approach, we highlight the practical importance of Impact Management for companies and investors.
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.
Overview
Title
Tentative Study on Impact Management ~Proposals for Integrated Logicmodels on Corporate Strategy~
Authors (in no particular order and titles omitted)
Reona Sekino (Chief Executive Officer, IMPACTLAKE Co. Ltd.) Toshiyuki Imamura (Head of Responsible Investment Dept. Nomura Asset Management Co., Ltd.) Yumiko Miwa (Professor, School of Commerce, Meiji University)
Table of Contents
Introduction
Importance of Impact Management
Existing Methods of Impact Management and Their Practical Issues
Recommendations for an Integrated Model as a New Approach
Examples of Application of this Approach(Examples in Specific Domains)
IMPACTLAKE’s impact management tool, impactlake™, has been in beta testing since October last year. We’re pleased to announce its official launch after working with investors (institutional and venture capitalists) and businesses, including startups, and incorporating their feedback.
(Clicking will open the impactlake™ website)
Background
As businesses and companies strive to create more value and increase their societal impact, addressing ESG issues has become a top priority. With the growing evidence of the diverse connections between ESG and corporate value, the significance of advanced ESG-focused impact management is on the rise.
On the other hand, achieving effective impact management still poses challenges in terms of both quantity and quality. IMPACTLAKE has been offering services to institutional investors, businesses, and other impact-driven entities to help them overcome these hurdles. As these activities are expected to grow, we developed this tool to allow impact generators to accumulate knowledge and information. This facilitates a gradual shift from outsourcing to self-driven approaches, promoting a company-wide understanding and awareness of impact management.
In creating this tool, we leveraged IMPACTLAKE’s experience in impact management across different stages and industries, gained through diverse support. We collaborated with the major institutional investor and the academic institution to establish a practical approach to impact management. Looking ahead, we anticipate further advancements and integrations in this field. IMPACTLAKE and impactlake™ will continue to refine frameworks and functionalities based on practical considerations.
This tool is a full-stack impact management solution primarily designed for businesses and investors. It offers the following key functionalities (For more details, please inquire):
Logic Model Construction:
Respond to IMPACTLAKE’s five-step categorization, including target categories, regions, and intentions (direction of impact creation).
Based on the responses, a base logic model is generated for over 50 impact categories (Impact to Output).
The created base model allows linking company or organizational activities using a highly visible tree-style UI, updating to match the corresponding logic model.
KPI Management and Impact Quantification:
Set KPIs and estimation logic for each item constructed in the logic model, interlinked with the model.
Accumulate references for statistical data in the estimation logic, enabling continuous historical management in the same model for subsequent years (approximately a 70% reduction in workload for the following year).
Optionally, outsource quantification tasks quickly and efficiently.
Dashboard and Report Creation:
Aggregate and manage quantified and economically valued impacts using predefined logic, categorized for integrated management.
Understand impacts targeted for management from various perspectives such as overall, portfolio-specific, impact-specific, and chronological.
Easily request impact report creation and quantification for each management subject.
Other Features:
Portfolio Management: Segregate various information and access rights for units of management, such as departments and funds targeted for impact management. Set and manage initiatives (e.g., business or investment activities for impact creation) for each portfolio.
Reference time-series statistical information related to each impact item and sustainability information related to publicly traded companies (reports, various disclosure data), linking them to the model (expansion planned gradually, subject to scope and freshness).
IMPACTLAKE will continue to drive business and solution development that contributes to impact management in the future.
Contact Us
For any questions or clarifications regarding this release or impactlake™, please feel free to inquire using the following contact information.
IMPACTLAKE has released joint research results, developed with the support and collaboration of leading institutional investor and the academic institution, focusing on the evolution of impact accounting and the use of logic models in business strategies.
As businesses aim for sustainability, Impact Management—advanced ESG—is becoming more vital. Our joint research simplifies Impact Management, using Impact-Weighted Accounts to quantify impact universally. This method includes a logic model for visualizing corporate ripple effects and articulating business strategies. By adopting this integrated approach, we highlight the practical importance of Impact Management for companies and investors.
The research suggests practical ways for Impact Management and includes specific analyses for individual companies. The results highlight challenges like the need for broader use to enhance disclosure and reduce burdens. However, it also shows that the methodology is currently useful.
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.
Overview
Title
Progress of Impact Accounting and Utilization of Logic Model in Corporate Strategy ~Proposals for new management methods for impact oriented corporate management and the realization of a sustainable society~
Authors (in no particular order and titles omitted)
Reona Sekino (Chief Executive Officer, IMPACTLAKE Co. Ltd.) Toshiyuki Imamura (Head of Responsible Investment Dept. Nomura Asset Management Co., Ltd.) Yumiko Miwa (Professor, School of Commerce, Meiji University)
Table of Contents
Introduction
Importance of Impact Management
Existing Methods of Impact Management and Their Practical Issues
Recommendations for an Integrated Model as a New Approach
Examples of Application of this Approach(Examples in Specific Domains and Companies)
Discussion and Conclusion
Bibliographic Information
Published on the Social Science Research Network (SSRN). URL:https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4645148(English version) ※The Japanese version of this paper is scheduled to be published in a domestic journal from early to spring 2024.
Contact Us
For any questions regarding this release, please feel free to contact us using the details below:
For companies, purpose-driven and sustainable management has unquestionably become a top agenda. Particularly in startups, while factors such as sustainability (ESG) considerations, including governance, are naturally taken into account, the evaluation is relatively more focused on future growth prospects. It can be said that, in a relative sense, impact (growth potential) is overwhelmingly more important than ESG (sustainability).
On the other hand, startups require intense focus on their business. Despite the importance, CEOs, even with strong dedication, may struggle to find time. Hiring individuals with impactful management skills is also tough due to cost and time constraints.
This service provides all the essential features for impact management in startups, seamlessly supporting from the early stages to full integration. It aims to contribute to achieving and sustaining effective impact management, going beyond simple consulting or tools.
Key Features of this Service
Establishing effective impact management involves implementing practical strategies within the organization. This includes ongoing efforts for skill development and structural enhancements, ensuring a scalable and sustainable approach over the mid-to-long term.
Providing impact assessment and economic value evaluation tailored to the practical perspective of businesses, while incorporating the ‘investor’ viewpoint based on collaborative research with major financial institutions.
An impact management approach that emphasizes quick assessment, easy comparison, reproducibility, cost-effectiveness, and alignment with business strategy.
Mainly Beneficial for:
Startups aiming to create impact and address social challenges (Seed to Early Stage)
Startups aiming for an Impact IPO (Middle to Later Stage)
Package Overview
We comprehensively provide the following functionalities essential for impact startups:
(Image of Provided Features)
Key features for sustained impact management in the future
Offering the impact management tool, impactLake™
Essential features for the initial stages of impact management
Establishing organizational structure and management flows to drive impact management forward
Fundamental organization for future impact management
Steady-state functionalities essential for ongoing impact management
Annual and quarterly evaluations (Updating and refreshing the evaluation system)
Annual and quarterly disclosure report creation (PDF and Web formats)
Features contributing to advanced impact management
Individual project and plan evaluation at the launch of new initiatives, including PR support
Constructing equity stories, including tailored engagement with international impact investors
Development of business strategy, research and development strategy, etc.
Creative support (Creating sustainability concept videos, etc)
Plans
For detailed information and a quote for each plan, please contact us individually.
Minimum Plan
Provision of the Impact Management Tool, impactLake™, only
Basic Plan
(In addition to the above) Comprehensive provision of functionalities required in the initial stages (Project implementation only in the first year, continued tool usage)
Standard Plan
(In addition to the above) Comprehensive provision of a wide range of functionalities required for ongoing impact management (In addition to continuous tool usage, comprehensive provision of functionalities required regularly)
Fundamental Philosophy Behind our Service Provision
This program and the tools/solutions that constitute it offer not just a framework for numerical management but insights and processes, with continuous updates to them.
Beyond mere organization and visualization, true management lies in how you leverage it. We aim for a seamless integration into the strategy, disclosure, and fundraising aspects of impact startups.
Empowering the organization to self-operate is the key in impact management. We achieve this by adjusting the balance between tools and individual support at each phase, moving away from constant reliance on external consultants.
Contact Us
For inquiries, detailed information requests, or proposal requests, please use the following link or contact the IMPACTLAKE office at contact@impactlake.com
IMPACTLAKE Co. Ltd. has released beta version of impactlake™, a full-stack Impact Measurement & Management (IMM) tool, effective October 1, 2022.
Click and Jump to Product Site
ESG initiatives are at the top of the agenda for businesses and companies to create more added value and enhance their significance in society. In addition, as the relationship between ESG and corporate value is being proven from various perspectives, the importance of social impact, especially as a positive aspect, is increasing.
On the other hand, it is also true that there are still challenges in terms of the appropriate assessment and management of social impact, both quantitatively and qualitatively, and IMPACTLAKE has been providing various services to help institutional investors, business companies, and other impact generators overcome these hurdles. IMPACTLAKE has been providing a variety of services to help institutional investors, business companies, and other impact generators overcome such hurdles. As such activities are expected to expand further in the future, IMPACTLAKE has developed this tool to help those who create impact to accumulate such know-how and information and to further improve their understanding and awareness of impact creation, rather than seeking such know-how and information externally.
In this beta release, we are mainly opening up the following functions for enterprises and investors to contribute to their own social impact management.
Impact Dashboard
Logic Model Building
Impact evaluation and quantification
Collection and management of internal and external impact-related indicators
Simple disclosure, etc.
In addition, the first 10 companies (organizations) to register will receive a trial plan that includes consulting services, such as support for the introduction of the system. If you are interested, please contact us for more information.
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