Korean social progress model proves successful in Japan, hinting at global standardization

A South Korean social progress model, known as the Social Progress Credit (SPC), has demonstrated its potential for global standardization after a successful three-year pilot in Japan. The Seoul-based non-profit research foundation, the Institute for Social Value Studies (CSES), organized a final performance report meeting in Tokyo on May 27th to share key achievements of the "Japanese-style SPC project" (J-SPC).

The J-SPC initiative aimed to adapt the "Korean-style social value measurement and reward model" to Japan's impact investing ecosystem. This model precisely measures corporate contributions to social issues like environment, employment, and welfare in monetary terms, then provides cash incentives proportional to those achievements. The project involved collaboration with the Japan Fund-raising Association (JFRA).

Approximately 80 individuals from Japan's impact investing and social sector, along with media representatives, attended the event. CSES, established by the SK Group to promote social value, highlighted the J-SPC project as an experiment in performance-linked funding. The initiative sought to establish a framework for "performance-based finance linked to impact measurement and management" within Japan.