Sustainability Department

Concept

SDGs funds we offer

The managing amount of ESG-related products is forecasted to expand as governments, investors and other organizations who provide funds are tending to require and also the Principles for Responsible Investment is rising. However, it cannot say that there are many options of ESG-related products and thus various types of products need to be provided. Sustainability Department originates and offers products to invest in businesses which contribute to achieving SDGs, in order to respond to the demands from corporate investors.

Characteristics　Not only financial returns but also pursuing social returns

　　　　 　　SDGs fund　　 　Equity Investment 　 　　　　Loan　　　　 Donation and Grant-in-aid
Difficulties in financing High level of social returns is required. Flexible according to business plans. No need to transfer voting rights. Exit strategies are required. As investors become shareholders, there are risks regarding the lack of flexibilities on management. Collaterals and guarantors are usually required. It is difficult to use for businesses with uncertainty. High level of social returns is required.
Financial returns Distributions based on the sales and achievement of businesses. Design financial returns accordance to social impacts. Capital gain + Dividends Principal + interest No financial returns
Social returns Incentives to maximize impacts on society are included as achievements are well connected to social returns. Not considered in general. Not considered in general. Certain level of social returns is expected.

Background　Potential needs

Local governments and business owners
Local governments and business owners

Fund-raising the large amount of money.

Operating their business with billions of yen.

Corporate investors
Corporate
investors

Invest more in funds which truly contribute to SDGs.

Invest a part of managing amount in products related to social contribution in SDGs and responsible investors are booming. However, there are only few options of financial products with high social returns.

Reference Blended Finance

The potential of Blended Finance

Many of businesses with high social returns have small financial returns, compared to ordinary businesses, and in some cases it is difficult to arrange financing. For such businesses, our SDGs funds can satisfy financial returns required by investors, by blending donations, subsidy and grant-in-aid from public agencies, concessional finance from international financial institutions.

The potential of Blended Finance

Our strength

Our 3 strengths complement each other and make us competitive

our strength

Reference Financial products we offer, schemes, risks and returns

Basic scheme

  • We have been providing impact investment scheme, through “Securite,” based on silent partnership, mainly for individual investors. SDGs funds are newly designed, using such scheme so that corporate investors can also participate in.
  • In our scheme, investors can pursuit both social and financial values, through making investment in businesses with large impacts on society, based on silent partnership as well as receiving distributions from the sales.

Financial products we offer, schemes, risks and returns

Returns

  • Distributions based on the sales and performance of the business invested (Financial returns).
  • Contribution to social impact and SDGs through growth of the business invested (Social returns).

Risks

  • In case that a business invested cannot perform well, neither financial returns nor social returns can be achieved.