Impact Circle Launches Support Program for Positive Impact Finance Initiatives

Introduction to Impact Circle's New Service

Impact Circle Inc., headquartered in Minato, Tokyo, is excited to announce the launch of its new support service, tailored to assist local financial institutions in harnessing the power of Positive Impact Finance (PIF). The service aims to streamline the entire process from impact strategy formulation to monitoring and external communication. Scheduled to officially commence on August 21, 2025, this initiative marks a significant step forward in facilitating social value creation through financing in local communities.

Background and Objectives

The rapid expansion of the international impact investing market has catalyzed efforts to measure and assess the social impact of corporate activities, linking these metrics to financial support. Within Japan, the uptake of PIF has steadily increased, establishing a new paradigm for community-focused finance. However, implementing PIF comes with challenges, including the operational burdens of impact assessment and the inadequacies in monitoring and reporting methodologies. Recognition of these hurdles has motivated Impact Circle to develop a new service that combines end-to-end support for assessing impact in PIF with enhancing the visibility of social value created by borrowers.

Service Overview

This service comprehensively addresses the practical challenges faced by financial institutions in the utilization and management of PIF through two primary axes:
1. Process Support Utilizing PIF
- Mapping and visualizing community challenges
- Assisting in logic model and KPI design for potential borrowers
- Supporting the collection, aggregation, analysis, and re-setting of KPIs alongside strategy improvement
- Creating content for disseminating results
2. Creating Value for Borrowers through PIF
- Producing impact creative assets (such as videos and case studies) tailored for each borrower
- Developing creative content that showcases the financial institution’s own PIF initiatives
- Offering recruitment support leveraging the impact narrative of borrowers.

This unique hybrid support infrastructure integrates specialized consulting, efficient operational systems, and creative functions focused on storytelling and visual representation.

Expected Outcomes

For Financial Institutions

- Reduced Operational Burden: Streamlining processes fosters consistent quality in impact evaluations.
- Enhanced Funding Opportunities: Effectively communicating impact can lead to acquiring new funding sources and bolstering recruitment and business initiatives.
- Structured Evidence: Systematizing results and case studies can create ripple effects across regions and contribute maximally to local communities.

For PIF Borrowers

- New Funding Avenues: The proliferation of PIF offers novel fundraising channels grounded in impact.
- Employee Engagement Boost: Enhancing understanding and motivation among employees strengthens engagement and recruitment capabilities.
- Utilized Support Content: Leveraging content to foster trust and stimulate new business engagements during sales activities.

Future Developments

Currently, Impact Circle is actively engaging with multiple local financial institutions to fine-tune practical implementations of this service. Future directions include:

- Knowledge Sharing and Model Support: Organizing and standardizing impact assessment metrics tailored to regional characteristics to create replicable models for other areas and financial institutions.
- Impact Platform Development: Establishing a platform to disseminate activities, achievements, and case studies related to impact initiatives, connecting companies focused on impact with supportive financial institutions, investors, and governmental bodies.

Through the strategic deployment of PIF, Impact Circle aims to connect the capital and evaluative strengths of financial institutions with solutions to community challenges, paving the way for innovative cycles of capital flow. The goal is to update financial practices to uphold social significance while ensuring economic viability.