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May 2024
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Nippon Life invests in Nissay Capital sustainability fund

By Hui Ching-hoo   
May 23, 2023

Nippon Life Insurance is investing 3 billion yen (US$21.8 million) in a sustainability fund created by Nissay Capital Co, the Japanese insurer’s venture capital arm.

According to Nippon Life, the Nissay Capital Sustainability Solutions Fund No. 1 Investment Limited Partnership invests in start-ups and venture capital funds that contribute to society on the United Nations Sustainable Development Goals or SDGs.

It focuses mainly on decarbonisation, environmental impact, new energy, health and longevity and sustainability, Nippon Life says in a statement on May 19.

The move is part of the company’s environmental, social and governance and decarbonisation financing facility. The insurer is targeting to earmark 5 trillion yen for ESG financing under this facility by 2030.

Nippon Life notes that the Nissay Capital fund’s 18-year investment period is much longer than for most Japanese venture capital funds, which is around ten years.

“However, as Nippon Life is a limited partner in the fund, it can utilise its attribute of being an institutional investor that manages assets with a long-term perspective and provide long-term support for research and development start-ups expected to contribute to society from an SDGs aspect,” the company says.

Osaka-based Nippon Life had 748.7 trillion yen of total assets as of June 2022.