This philosophy is deeply embedded in JPI’s identity, shaped by its history as a government-owned entity before privatizing in 2007. Unlike other financial institutions, its role has long been tied to national well-being, which naturally informs its three priority themes in ESG and sustainability investments: environmental protection, improving well- being, and revitalizing local communities. A legacy of community investment JPI’s commitment to social well-being and national revitalization is nothing new. One of its most enduring contributions is Radio Exercise ( rajio taiso ), which was introduced to address social issues such as improving the health of everyone and revitalizing local communities, and it is a familiar part of daily life in Japan. First introduced in 1928, these morning exercises—practiced from kindergarten through old age—have been a staple in Japanese communities for nearly a century. Nomura explains, “Although many people know it, many don’t realize it was Japan Post Insurance that created it. The same company behind ‘simplified insurance’ launched Radio Exercise because they saw it as a way to encourage people to live longer, feel secure in joining insurance programs, and lead healthy lives. Our people at that time thought that a healthier population would contribute to Japan’s growth and revitalization. That’s where it all started.” 115 This long-term thinking continues today in JPI’s deep ties to post offices, where it operates over twenty thousand locations across Japan and serves nearly twenty million customers. Just as Radio Exercise has lasted one hundred years, JPI hopes that its sustainable and impact investments will create a legacy. Nomura reflects on this vision, stating, “With our ESG and sustainable investments, honestly, I hope to continue them for one hundred years. In one hundred years, when future generations look back, I hope they recognize the value of what we have done. That is the value of sustainable, ESG, and impact investments we are pursuing today.” From ESG to Impact: A New Investment Approach JPI’s investment strategy has always emphasized long-term stability, but since 2021, it has taken a more intentional approach to ESG integration across its portfolio. As a long-term investor, JPI is particularly focused on whether a company can continue to grow over the next ten or twenty years. Beyond the financials, it also looks at unseen risks or issues that aren’t currently reflected in the numbers. This shift in thinking led JPI to launch the Impact K project in 2022, as it began to develop its own framework for impact investing. Unlike its broad ESG-aligned portfolio, impact investments require a deeper level of intentionality and measurement. Nomura explains, “Impact investing represents the next evolution of ESG, focusing on the business’s future. It’s about understanding how companies aim to solve social issues and grow as organizations to remain competitive and thrive.” 116 195
Ten Years in the Making
Powered by FlippingBook