The Current State and Challenges of Impact Investing in Japan (2023)

What was the growth rate of impact investing in Japan in 2023?

The report shows a growth in impact assets under management (AUM), reaching 11,541.4 billion yen in 2023, a 197% increase from the previous year. This growth is driven primarily by established impact investors and new contributions from financial institutions.

Who are the key players in Japan’s impact investing market?

Key players in the Japanese impact investing market include private funds, ethical banks, and public institutions. Notable initiatives include the launch of new impact funds, public-private partnerships, and innovative financial instruments aimed at increasing capital flow to impactful projects.

Why is impact measurement important in impact investing?

The report emphasises the importance of impact measurement and management (IMM). It highlights the tools and frameworks used by organisations to measure and manage impact, such as the UN Sustainable Development Goals (SDGs) and the 5 Dimensions of Impact.

What are the main challenges faced by the impact investing sector in Japan?

The main challenges identified include the regulatory framework, impact washing, and the need for standardised impact measurement.

Which sectors are most promising for impact investments in Japan?

The report identifies health/healthcare, climate change mitigation, and sustainable agriculture as key sectors for impact investments. Most impact investments are made in Japan, but there is also significant investment in other Asian countries, North America, and Europe.