Japan’s Financial Services Agency (FSA) is seeking views on new impact investment guidelines developed by a working group led by Professor Noriyuki Yanagawa of the University of Tokyo. The working group has created four principles of impact investment intended to serve as a reference point for fund managers in designing their strategies. The principles are intentionality, additionality, identification, measurement and management of impact, and innovation, transformation and acceleration. Principle 3 – measurement and management of impact – includes determining the impact and profitability in quantitative and qualitative terms, on an ongoing basis, using an internationally established framework. Principle 4 – innovation, transformation and acceleration – includes engaging with investee companies to assist them in creating changes that could generate tangible social or environmental impact as well as financial returns. The FSA said the invitation for public comments reflects its commitment to making impact investment a key part of Japan’s financial ecosystem. The consultation is open for comment until 10 October 2023.
— Regulation Asia (@RegulationAsia) August 1, 2023