Based on the podcast conversation "New on Women Changing Finance: Japan’s Quiet Impact Revolution" with Nanako Kudo, hosted by Krisztina Tora, GSG Impact Managing Director.

Nanako Kudo: Shaping Japan's Impact Economy from the Ground Up

Since the early 2010s, Nanako Kudo, Executive Director of the Japan Social Impact Investment Foundation (SIIF), has been a central figure in catalysing Japan’s impact investing ecosystem. As one of the founding members of GSG Impact Japan, the GSG National Partner, Nanako fostered the country’s formal connection to GSG Impact. This affiliation helped anchor Japan’s position within the global impact movement.

Her journey, grounded in grassroots innovation, public policy, and finance, has helped shift the conversation from impact investing to building an impact economy.

Laying the Foundation: From G8 Taskforce to Ecosystem Builder

Nanako’s entry into the impact investing space began with Japan’s involvement in the G8 Taskforce on Social Impact Investment in 2013. At the time, the concept was virtually unknown in Japan. “Nobody was talking about impact investing,” she recalled.

The formation of the G8 taskforce provided an opportunity. Nanako recalled the early days as experimental, with only a few people exploring venture philanthropy and social finance. “We joined the taskforce to introduce the concept of impact investing to corporations, financial institutions and government during seminars and conferences.”

A turning point came in 2015, when Japan’s Government Pension Investment Fund (GPIF), the world’s largest pension fund, signed onto the Principles for Responsible Investment (PRI). This event opened the door for ESG and impact finance to gain traction in financial institutions.

From Investment to Impact Economy

SIIF, originally a team within the Nippon Foundation, received independence to invest and strengthen the ecosystem. Under Nanako’s leadership, it has grown from a small team into a national force for advancing social finance in Japan. SIIF plays a dual role: managing capital and leading advocacy, ecosystem-building, and research initiatives.

A core shift in recent years is the transition from focusing on investment to fostering a broader impact economy.

This ecosystem-wide approach includes:

• Support for impact startups, such as a venture using AI to match underserved workers with suitable jobs, lowering barriers to entry, and improving career opportunities.
• Highlighting the work of corporates, e.g., the department store Marui, which integrates circular economy goals into business KPIs and engages customers in sustainability efforts.
• Partnerships with Japan’s major financial institutions, which are increasingly launching public equity impact funds that allow citizens to invest in purpose-driven businesses.

Policy and Public Infrastructure for Systemic Change

SIIF has been involved in the formation and ongoing work of the Consortium for the Impact Economy, an initiative launched by Japan’s Financial Services Agency. Nanako sees her role as helping to connect stakeholders and shape the conversations that guide Japan’s transition toward an impact economy.

“Right now, the Japanese government is heavily supporting the concept of an impact economy. Last year, the Financial Services Agency of Japan started an impact economy working group, and we are heavily involved in that process of working groups.” - said Nanako

Additionally, SIIF played a key role in helping to mobilise capital from Japan’s dormant bank accounts, following a model inspired by the UK’s Better Society Capital. Through this initiative, SIIF has supported socially driven businesses, often referred to as zebra companies, addressing challenges such as housing access and local healthcare.

A Woman Leader in Finance and System Change

Despite progress, Japan continues to rank poorly in global gender equity indices, particularly in economic and political participation. For Nanako, mentorship and collective action among women are essential to pushing the sector forward.

In a financial sector where senior female leadership remains rare, Nanako’s presence represents an important step toward greater diversity and inclusion.

“We need to change ourselves first,” she reflected, speaking about the lack of diversity on investment committees. “It’s not enough to create impact through investments - the governance structure itself must evolve.”

A Vision Fueled by Values

At the heart of Nanako’s leadership is a deep commitment to joy, humility, and sustainability.

“System change is a never-ending journey,” she said. “The important thing is to enjoy the process.”

Her advice to other changemakers? “Find a mentor. Find your allies. Then act together.”

Final Thoughts

Nanako Kudo’s journey highlights much of Japan’s journey and the power of being grounded, collaborative, and forward-looking. Her work at SIIF offers a replicable model for building impact economies and what’s possible when finance is used as a force for good.