Japan’s Impact Investment Asset under Management Reaches 17.3 Trillion Yen (150% Year-on-Year Increase)Publication of the “Current State and Challenges of Impact Investing in Japan—FY2024 Survey “

GSG Impact JAPAN National Partner (formerly GSG Japan NAB), for which Japan Social Innovation and Investment Foundation (SIIF) (President: Shuichi Ohno, Headquarters: Minato-ku, Tokyo, Japan) serves as secretariat, has announced the release of the “Current State and Challenges of Impact Investing in Japan—FY2024 Survey” (hereinafter referred to as “the Report”) on March 31, in both Japanese and English. Based on survey results, the Report estimates that as of March 2024 (including data points from June and September 2024), the total impact investment asset under management in Japan has reached 17.3 trillion yen. The Report also provides insights into the latest trends in Japan’s impact investment market through a comparative analysis with international markets and discusses prospects.

Key Findings from the Report

The Report reveals that Japan’s impact investment asset under management for FY2024 reached 17.3 trillion yen, marking an increase of 5.76 trillion yen (a 150% rise) from the previous year’s 11.54 trillion yen. The following factors have been identified as key contributors to this growth:

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1. Expansion by Existing Impact Investment Organizations Rather than New Entrants

The impact investment asset under management of 50 organizations that responded to the survey in both FY2023 and FY2024 grew by 4.12 trillion yen (a 136% increase), accounting for approximately 72% of the total increase.

2. Significant Growth in Impact Investments by Banks and Life Insurance Companies

Of the total increase of 5.76 trillion yen, 94% was attributed to eight major banks and life insurance companies, highlighting their growing commitment to impact investing.

<Trends in Domestic and International Impact Investment Markets>

The Report also provides an overview of the latest developments in impact investing, both domestically and globally, including the following key events:

Global Trends

• July 2024: UNDP partners with GRI, GSG Impact, IFRS Foundation, and ISO to establish a Sustainability Disclosure & Management Hub.
• August 2024: GSG Impact published “Impact Transparency from the Ground Up.”
• October 2024: GIIN released “Sizing the Impact Investing Market 2024.”

Developments in Japan

• May 2024: Japan Financial Services Agency (FSA) hosted the “Impact Forum.”
• May 2024: Tokyo Metropolitan Government announced the establishment of a “Public–Private Partnership Impact Growth Fund.”
• June 2024: The Japanese Cabinet included impact investment promotion in the revised “Grand Design for a New Capitalism and Action Plan (Revised Edition 2024).”
• January 2025: Ministry of Health, Labour and Welfare announced plans to incorporate impact investing into GPIF’s 5th mid-term investment strategy.

Purpose and Scope of the Report

The Report aims to shed light on current state of impact investing in Japan, providing an in-depth analysis of emerging trends and challenges in the sector. It explores key topics such as the definition of impact investing, major initiatives, and the implementation status of impact measurement and management (IMM). Furthermore, it highlights critical issues that need to be addressed for the further development of the market.

Commitment to Promoting Impact Investing

GSG Impact JAPAN National Partner and SIIF remain committed to advancing impact investing through research, advocacy, and collaboration with stakeholders. By continuing to engage with policymakers, financial institutions, and other relevant parties.