It's been a strong year for ESG related investment in Japan. High profile fund launches like MPower Partners Fund L.P. have been part of the story. But with COP 26 behind us, institutional investors seem to be keeping up the momentum. As the linked release shows, over 20 financial institutions (many household names even outside Japan) have signed on to an Impact Driven Financing Initiative.
Under the initiative, those institutions will take a leading role in Japan to implement impact-driven investment, implement impact measurement and management (IMM) and convene regular meetings to discuss and share best practices and challenges .
The involvement and commitment of these heavy weights to the space is a strong indication that ESG investing and funds purpose built for the space are likely to become busier, and more popular in the near term. At least one can hope so.
"Impact Investment is global, and is already making its mark on global markets. It is becoming necessary for Japanese financial institutions that are closely connected to global markets to collaborate and cooperate with global organizations that promote impact investment, while complying with or referring to internationally developed principles and standards."