Nippon Life Insurance plans to invest JPY30bn ($280m) in companies that provide solutions to social and environmental issues three years from now, reported Nikkei.
In adopting an impact strategy, Nippon Life will look at companies that provide solutions in fields like health care, food and climate change. The focus will not only be on the bottomline but also the investee company;s contributions to society.
Nippon Life Insurance will begin by investing JPY2bn in US private equity firm TPG Capital’s impact investment fund within the month. The fund is investing in medical startups as the coronavirus takes its toll around the world, and expects an annual yield of above 10%.
Nippon Life Insurance will work with TPG to learn the ropes, after which it hopes to be able to make independent investments in such companies after three years. The company will invest around JPY10bn annually in startups.