IMPACTLAKE has published joint research results, developed with the support and collaboration of leading institutional investor and the academic institution, focusing on the evolution of impact accounting and the use of logic models in business strategies on a Japanese journal, Disclosure&IR (TAKARA D＆IR Research Institute).
As businesses aim for sustainability, Impact Management—advanced ESG—is becoming more vital. Our joint research simplifies Impact Management, using Impact-Weighted Accounts to quantify impact universally. This method includes a logic model for visualizing corporate ripple effects and articulating business strategies. By adopting this integrated approach, we highlight the practical importance of Impact Management for companies and investors.
IMPACTLAKE will continue various initiatives and collaborations in the field to promote the simultaneous achievement of social value creation and sustainable growth for companies, contributing to the realization of a sustainable society.
Overview
Title
Tentative Study on Impact Management ～Proposals for Integrated Logicmodels on Corporate Strategy～
Authors (in no particular order and titles omitted)
Reona Sekino (Chief Executive Officer, IMPACTLAKE Co. Ltd.) Toshiyuki Imamura (Head of Responsible Investment Dept. Nomura Asset Management Co., Ltd.) Yumiko Miwa (Professor, School of Commerce, Meiji University)
Table of Contents
Introduction
Importance of Impact Management
Existing Methods of Impact Management and Their Practical Issues
Recommendations for an Integrated Model as a New Approach
Examples of Application of this Approach(Examples in Specific Domains)
IMPACTLAKE’s impact management tool, impactlake™, has been in beta testing since October last year. We’re pleased to announce its official launch after working with investors (institutional and venture capitalists) and businesses, including startups, and incorporating their feedback.
（Clicking will open the impactlake™ website）
Background
As businesses and companies strive to create more value and increase their societal impact, addressing ESG issues has become a top priority. With the growing evidence of the diverse connections between ESG and corporate value, the significance of advanced ESG-focused impact management is on the rise.
On the other hand, achieving effective impact management still poses challenges in terms of both quantity and quality. IMPACTLAKE has been offering services to institutional investors, businesses, and other impact-driven entities to help them overcome these hurdles. As these activities are expected to grow, we developed this tool to allow impact generators to accumulate knowledge and information. This facilitates a gradual shift from outsourcing to self-driven approaches, promoting a company-wide understanding and awareness of impact management.
In creating this tool, we leveraged IMPACTLAKE’s experience in impact management across different stages and industries, gained through diverse support. We collaborated with the major institutional investor and the academic institution to establish a practical approach to impact management. Looking ahead, we anticipate further advancements and integrations in this field. IMPACTLAKE and impactlake™ will continue to refine frameworks and functionalities based on practical considerations.
This tool is a full-stack impact management solution primarily designed for businesses and investors. It offers the following key functionalities (For more details, please inquire):
Logic Model Construction:
Respond to IMPACTLAKE’s five-step categorization, including target categories, regions, and intentions (direction of impact creation).
Based on the responses, a base logic model is generated for over 50 impact categories (Impact to Output).
The created base model allows linking company or organizational activities using a highly visible tree-style UI, updating to match the corresponding logic model.
KPI Management and Impact Quantification:
Set KPIs and estimation logic for each item constructed in the logic model, interlinked with the model.
Accumulate references for statistical data in the estimation logic, enabling continuous historical management in the same model for subsequent years (approximately a 70% reduction in workload for the following year).
Optionally, outsource quantification tasks quickly and efficiently.
Dashboard and Report Creation:
Aggregate and manage quantified and economically valued impacts using predefined logic, categorized for integrated management.
Understand impacts targeted for management from various perspectives such as overall, portfolio-specific, impact-specific, and chronological.
Easily request impact report creation and quantification for each management subject.
Other Features:
Portfolio Management: Segregate various information and access rights for units of management, such as departments and funds targeted for impact management. Set and manage initiatives (e.g., business or investment activities for impact creation) for each portfolio.
Reference time-series statistical information related to each impact item and sustainability information related to publicly traded companies (reports, various disclosure data), linking them to the model (expansion planned gradually, subject to scope and freshness).
IMPACTLAKE will continue to drive business and solution development that contributes to impact management in the future.
Contact Us
For any questions or clarifications regarding this release or impactlake™, please feel free to inquire using the following contact information.
IMPACTLAKE has released joint research results, developed with the support and collaboration of leading institutional investor and the academic institution, focusing on the evolution of impact accounting and the use of logic models in business strategies.
As businesses aim for sustainability, Impact Management—advanced ESG—is becoming more vital. Our joint research simplifies Impact Management, using Impact-Weighted Accounts to quantify impact universally. This method includes a logic model for visualizing corporate ripple effects and articulating business strategies. By adopting this integrated approach, we highlight the practical importance of Impact Management for companies and investors.
The research suggests practical ways for Impact Management and includes specific analyses for individual companies. The results highlight challenges like the need for broader use to enhance disclosure and reduce burdens. However, it also shows that the methodology is currently useful.
IMPACTLAKE will continue various initiatives and collaborations in the field to promote the simultaneous achievement of social value creation and sustainable growth for companies, contributing to the realization of a sustainable society.
Overview
Title
Progress of Impact Accounting and Utilization of Logic Model in Corporate Strategy ～Proposals for new management methods for impact oriented corporate management and the realization of a sustainable society～
Authors (in no particular order and titles omitted)
Reona Sekino (Chief Executive Officer, IMPACTLAKE Co. Ltd.) Toshiyuki Imamura (Head of Responsible Investment Dept. Nomura Asset Management Co., Ltd.) Yumiko Miwa (Professor, School of Commerce, Meiji University)
Table of Contents
Introduction
Importance of Impact Management
Existing Methods of Impact Management and Their Practical Issues
Recommendations for an Integrated Model as a New Approach
Examples of Application of this Approach(Examples in Specific Domains and Companies)
Discussion and Conclusion
Bibliographic Information
Published on the Social Science Research Network (SSRN). URL：https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4645148（English version） ※The Japanese version of this paper is scheduled to be published in a domestic journal from early to spring 2024.
Contact Us
For any questions regarding this release, please feel free to contact us using the details below:
For companies, purpose-driven and sustainable management has unquestionably become a top agenda. Particularly in startups, while factors such as sustainability (ESG) considerations, including governance, are naturally taken into account, the evaluation is relatively more focused on future growth prospects. It can be said that, in a relative sense, impact (growth potential) is overwhelmingly more important than ESG (sustainability).
On the other hand, startups require intense focus on their business. Despite the importance, CEOs, even with strong dedication, may struggle to find time. Hiring individuals with impactful management skills is also tough due to cost and time constraints.
This service provides all the essential features for impact management in startups, seamlessly supporting from the early stages to full integration. It aims to contribute to achieving and sustaining effective impact management, going beyond simple consulting or tools.
Key Features of this Service
Establishing effective impact management involves implementing practical strategies within the organization. This includes ongoing efforts for skill development and structural enhancements, ensuring a scalable and sustainable approach over the mid-to-long term.
Providing impact assessment and economic value evaluation tailored to the practical perspective of businesses, while incorporating the ‘investor’ viewpoint based on collaborative research with major financial institutions.
An impact management approach that emphasizes quick assessment, easy comparison, reproducibility, cost-effectiveness, and alignment with business strategy.
Mainly Beneficial for:
Startups aiming to create impact and address social challenges (Seed to Early Stage)
Startups aiming for an Impact IPO (Middle to Later Stage)
Package Overview
We comprehensively provide the following functionalities essential for impact startups:
（Image of Provided Features）
Key features for sustained impact management in the future
Offering the impact management tool, impactLake™
Essential features for the initial stages of impact management
Establishing organizational structure and management flows to drive impact management forward
Fundamental organization for future impact management
Steady-state functionalities essential for ongoing impact management
Annual and quarterly evaluations (Updating and refreshing the evaluation system)
Annual and quarterly disclosure report creation (PDF and Web formats)
Features contributing to advanced impact management
Individual project and plan evaluation at the launch of new initiatives, including PR support
Constructing equity stories, including tailored engagement with international impact investors
Development of business strategy, research and development strategy, etc.
Creative support (Creating sustainability concept videos, etc)
Plans
For detailed information and a quote for each plan, please contact us individually.
Minimum Plan
Provision of the Impact Management Tool, impactLake™, only
Basic Plan
(In addition to the above) Comprehensive provision of functionalities required in the initial stages (Project implementation only in the first year, continued tool usage)
Standard Plan
(In addition to the above) Comprehensive provision of a wide range of functionalities required for ongoing impact management (In addition to continuous tool usage, comprehensive provision of functionalities required regularly)
Fundamental Philosophy Behind our Service Provision
This program and the tools/solutions that constitute it offer not just a framework for numerical management but insights and processes, with continuous updates to them.
Beyond mere organization and visualization, true management lies in how you leverage it. We aim for a seamless integration into the strategy, disclosure, and fundraising aspects of impact startups.
Empowering the organization to self-operate is the key in impact management. We achieve this by adjusting the balance between tools and individual support at each phase, moving away from constant reliance on external consultants.
Contact Us
For inquiries, detailed information requests, or proposal requests, please use the following link or contact the IMPACTLAKE office at contact@impactlake.co.jp
It goes without saying that Purpose Management and Sustainable Management are top of the agenda for companies. It has already become clear that the medium- to long-term value creation story for the realization of these goals not only serves as a guideline for companies, but also plays a particularly important role in evaluations by investors and other external parties. The term “impact (investment),” which has been in the news recently, has various definitions, but IMPACTLAKE defines “impact management” as a strategy and means of execution to maximize the medium- to long-term value creation.
The purpose of this service is to objectively learn the current status and potential of the impact created by your company, and at the same time, to help you take the first step toward materializing the actions necessary to realize your value creation story and to link this to ongoing impact management.
(Click here for more information on the significance of the program and how it can be used.)
Points
Impact evaluation and economic value evaluation based on the “investor” perspective based on joint research with major financial institutions, but also from a practical corporate perspective
Consistent implementation from target impact setting to impact accounting
Not merely an impact assessment for external disclosure, but leads to the formulation of policies and specific actions necessary to maximize the impact
Continuous impact management and delivery with a view to permeating the corporate culture with the strategy of purpose and value creation through these activities, and to Ops (Operations) to realize SX (Sustainability Transformation).
Target
Those who are in charge of corporate planning, new business, R&D, ESG promotion, IR, etc. for large to medium-sized business enterprises.
Output Summary
Basically, we will report on the following items (output image).
Quick Review of your company’s existing sustainability initiatives
Value Creation Story, Materiality Map, and Other Medium- to Long-term Strategies and Current Initiatives
Status of ESG and other sustainability-related disclosures
Visualization of the impact your company creates/will create and its relationship to medium- and long-term strategies
Clarification of impact creation pathways (part of the value creation story)
Quantification of the impact your company creates/will create, simplified impact accounting
From business activities (with the impacts defined above in mind)
Other management activities (mainly environmental and employment impacts are assumed. (For the environment and other areas, if there are already management activities, input those already in place.)
Build a concrete action plan for the future based on the above
Plan
(All deliverables will be tools + ppt report)
Spot plan (from 9,000USD)
Visualization and economic valorization of specific/individual themes (about [3] themes, regardless of actual/future plans)
Standard Plan (from 30,000USD)
Visualization and economic valorization of specific/individual themes (about [3] themes, regardless of actual/future plans)
Advanced Plan (estimate required)
In addition to the above contents, even clarification of specific action directions based on the results of evaluation and construction
Schedule
4-8 weeks (*For Standard Plan. Spot plan is 2-4 weeks)
First week: Initial MTG (interviews, etc.)
Weeks 2-3: QA, initial draft construction of impact creation pathway, etc.
Weeks 3-4: Initial report and discussion
Weeks 5-7: Quantification, economic valorization, etc.
Final week: Final report and discussion
(Follow-up as appropriate)
Notes
Impact evaluation itself is not the main objective. It is also not an index rating based on self-serving evaluations.
It is intended only as a guideline for determining the direction of actions necessary to optimize and maximize the impact creation activities of the entire company, with a view to achieving essential improvements in corporate value (sustainability management) and the realization of a sustainable society.
Contact Us
For inquiries, please use the link below or contact the IMPACTLAKE office at contact@impactlake.co.jp.
IMPACTLAKE Co. Ltd. has released beta version of impactlake™, a full-stack Impact Measurement & Management (IMM) tool, effective October 1, 2022.
Click and Jump to Product Site
ESG initiatives are at the top of the agenda for businesses and companies to create more added value and enhance their significance in society. In addition, as the relationship between ESG and corporate value is being proven from various perspectives, the importance of social impact, especially as a positive aspect, is increasing.
On the other hand, it is also true that there are still challenges in terms of the appropriate assessment and management of social impact, both quantitatively and qualitatively, and IMPACTLAKE has been providing various services to help institutional investors, business companies, and other impact generators overcome these hurdles. IMPACTLAKE has been providing a variety of services to help institutional investors, business companies, and other impact generators overcome such hurdles. As such activities are expected to expand further in the future, IMPACTLAKE has developed this tool to help those who create impact to accumulate such know-how and information and to further improve their understanding and awareness of impact creation, rather than seeking such know-how and information externally.
In this beta release, we are mainly opening up the following functions for enterprises and investors to contribute to their own social impact management.
Impact Dashboard
Logic Model Building
Impact evaluation and quantification
Collection and management of internal and external impact-related indicators
Simple disclosure, etc.
In addition, the first 10 companies (organizations) to register will receive a trial plan that includes consulting services, such as support for the introduction of the system. If you are interested, please contact us for more information.
