Engagement is a core activity essential to achieving our mission. It is conducted with the aim of making the investment chain more sustainable and more impact-oriented.
We collaborate with investee companies to explore ways to align sustainable societal development with long-term corporate value creation. Our engagement is primarily conducted through one-on-one meetings, where we adopt a coaching-based approach. We establish a constructive dialogue by outlining our engagement principles, identifying corporate challenges, asking open-ended questions, and concluding with feedback. To further understand corporate needs, we conduct post-dialogue surveys.
One of the distinguishing features of our engagement approach is the use of our proprietary Impact Integrated Value (IIV) framework—not only for investment decisions but also as a foundation for engagement. By using IIV, portfolio companies can recognize the importance of impact both intuitively and logically. This enables us to have sustainability-focused dialogue with portfolio companies where we discuss corporate value born from impact considerations.
We believe that integrating sustainability initiatives strengthens corporate governance, mitigates negative impacts, and generates positive impacts (causal ①). As a result, these efforts contribute to greater stakeholder value (③). Strengthening governance and impact initiatives enhances stakeholder satisfaction - including employees, business partners, customers, and shareholders - by reinforcing internal branding and improving risk management. These efforts ultimately elevate the quality of business operations (②). While the initial phase may involve increased costs, the long-term outcome is improved economic value through enhanced profitability and capital efficiency (④).
Unlike startups seeking capital through equity issuance, many listed companies are in a phase where they reinvest profits generated from their businesses. Therefore, our engagement focuses on capital allocation discussions. While shareholder returns remain important, we emphasize ensuring that capital is also allocated to high-impact activities that contribute to solving social challenges. At Cadira, we believe this is the primary pathway for public equity investors to drive meaningful impact.
Process
The engagement process typically begins by presenting the IIV results to capture the company’s attention. Since this valuation is an investor’s estimation of the company’s worth, it naturally piques the company’s interest. We then explain the calculation process, highlighting how positive impact factors can enhance corporate value. This makes a compelling case for the need to reduce negative impact and create positive impact, fostering a shared understanding with the company.
When a company expresses interest, we provide more concrete action plans to support improvement in both sustainability practices and long-term corporate value. Some of our portfolio companies are highly proactive and open to receiving feedback from multiple investors to enhance their initiatives. For such companies, we organize collaborative engagement meetings that bring together the company and other impact investors.
We have held several such sessions to date, each involving one company and multiple institutional investors. On the company side, participants have included Recruit Holdings, Katitas, and Marui Group, while investor participation has ranged from 15 to 50 individuals. The dialogues focus on topics such as setting impact goals and improving disclosure practices. From the company’s perspective, these sessions are valuable opportunities to gain input from dozens of impact investment professionals and expand their network. Companies have expressed strong appreciation for the insights and benefits gained through these meetings.
To elevate insights gained through our engagement activities into public goods for the broader market, we also publish articles on our website showcasing such initiatives.
Please see: https://cadiracm.com/p9vTXPHB-1/0FUqAoo-
In addition, we create opportunities to share knowledge by hosting seminars for listed companies on sustainability-related themes. For example, in July 2024, we held a seminar featuring representatives from the United Nations ILO and environmental NGOs.
We believe that continuing to operate this engagement cycle not only supports the management improvement of our portfolio companies, but also helps energize the broader market by pursuing our Mission. In the long term, we expect this to contribute positively to both building a more sustainable society and enhancing fund performance.
Lastly, should an investee company’s fundamentals or engagement approach diverge from our expectations, we request corrective action. If our concerns remain unaddressed over a set period, we consider divestment.
Learn More
2026/7/9
The Impact of AI's Evolution on Asset Management
AI Adoption: Rapid Spread, Gap in ResultsThe evolution of AI is bringing about a structural shift in...
2026/6/9
The Need to Reassess Risks considering Extreme Weather
Growing Cost of Extreme Weather Risk MitigationIn May 2026, CDP (Carbon Disclosure Project, an NGO p...
2026/4/17
The Impact of Large-Scale Military Operations Against Iran
Japan’s Crude Oil and LNG ProcurementFollowing the large-scale military operation conducted by the U...
2026/3/13
A Review of the Lower House Election Results and Key Themes Ahead
Lower House Election ResultsIn the February 2026 general election for the House of Representatives, ...
2026/2/13
Japan’s Evolving Discount Rate — Re-examining Corporate Valuation in a Rising Interest Rate Environment
Interest Rate Trends and BackgroundLong-term interest rates in Japan have been rising. Comparing Jan...
2026/1/19
Further Revision of Governance and Shift in Management Resource Allocation: Expanding the Scope of Growth Investment in the Japanese Stock Market
Review of 2025The Japanese equity market in 2025 experienced a broadly strong upward trend. The TOPI...
2025/12/19
AI-Powered Threats: How Cybersecurity Became a C-Suite Priority
Cybersecurity DamageIn recent years, cybersecurity incidents have continued to rise sharply. Accordi...
2025/11/21
Japan's First Female Prime Minister: The Takaichi Administration and New Investment Opportunities
Japan’s First Female Prime MinisterIn October 2025, Sanae Takaichi was elected Prime Minister of Jap...
2025/10/31
Defining the Boundaries of Sustainable Investing in an Era of Expanding Defense Spending — Cadira’s Investment Policy
In recent years, rising geopolitical tensions have heightened the importance of the defense industry...
2025/8/15
Staying Grounded Amid Political and Trade Uncertainty in Japan
At Cadira Capital Management, we believe that while macro-level developments such as politics and tr...
2025/7/25
Gender Reform as a Catalyst: What Sustainable Investors Should Watch in Japan
On June 11, the World Economic Forum released its Global Gender Gap Report 2025 (*1), in which Japan...
2025/5/8
Agility Matters More Than Ever—The Impact of U.S. Tariff Policy and Implications for Japanese Equities
When the environment is highly uncertain, investors cannot rely solely on a company’s current busine...
2025/4/18
Governance Reforms and the Future of Japan’s Listed Subsidiaries: Unlocking Value through Transparency
Efforts to enhance corporate governance in Japan continue to advance steadily. The Tokyo Stock Excha...
2024/11/29
Trends in the US Housing Market
Housing was one of the key issues of the 2024 U.S. presidential election. Skyrocketing home prices a...
2024/11/22
On Japan’s House of Representatives Election on October 27
Elections to the House of Representatives were held on October 27. The Liberal Democratic Party (LDP...
2024/10/18
On the 2024 LDP Presidential Election
On October 1, Shigeru Ishiba was sworn in as Prime Minister of Japan. Prior to this, on September 27...
2024/9/17
August Stock Market Volatility and Subsequent Outlook
The Japanese stock market plunged in the first half of August, with the TOPIX posting historic decli...
2024/5/17
On the Recent Weakening of the Japanese Yen
The yen-dollar exchange rate reached 160 yen on April 29, 2024. This is the yen's weakest level in 3...
2024/4/26
On the Bank of Japan's Rate Hike
On March 19, 2024, the Bank of Japan decided to raise its policy rate from -0.1% to 0-0.1%. This is ...
2024/2/9
Impact Integrated Value (IIV)
How can we effectively integrate both positive and negative impact when making investment decisions?...
2024/2/2
Positive Impact Assessment
Integration of positive impact in corporate valuation poses significant challenges. For standardized...
2024/1/26
Our Investor Contribution
Engagement is a core activity essential to achieving our mission. It is conducted with the aim of ma...
2024/1/19
Sustainable Companies
The Japanese stock market is in a situation where structural changes are creating new investment opp...
2024/1/12
Structural Investment Opportunity
At Cadira Capital Management, we believe that investor engagement will bring about a structural chan...
2023/12/1
Our Investment Philosophy
At Cadira Capital Management, we believe that "investing for sustainability" will deliver superior r...
2023/11/8
Our Views on Geopolitical Risks
The conflict between Israel and Palestine erupted on October 7th, raising concerns about geopolitica...
2023/10/24
Perspectives on Equity Investing in a Declining Population
"Is there any reason to invest in countries with declining populations?"This is an unavoidable quest...
2023/10/9
Our Views on Exchange Rate Risks
The Bank for International Settlements (BIS) announced that the real effective exchange rate (*1) fo...
2023/9/25
Our Bottom-up Approach to Listed Equity Impact Investing
At Cadira Capital Management, we take a unique bottom-up approach to impact investing in public equi...
Important Notice
The content of this website has been prepared by Cadira Capital Management Co., Ltd. (“CCM”) for informational purposes only to professional investors who are expected to make their own investment decisions without undue reliance on such content. The views and strategies described may not be suitable for all investors. Under no circumstances is it to be used or considered as legal or investment advice, a recommendation to buy, an offer to sell, or a solicitation of an offer to buy or sell securities and investors should be advised to consult their own stockbroker, accountant, solicitor, independent financial adviser, or other professional adviser for advice. We accept no liability whatsoever for any direct or consequential loss arising from any use of this content. The information is intended solely to report on investment strategies and opportunities identified by CCM. Opinions and estimates offered constitute our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. CCM and its affiliates do not warrant the accuracy or completeness of any of the information or data contained herein. References to specific securities and their issuers are for illustrative purpose only and are not intended to be, and should not be interpreted as investment advice or, a recommendation, offer or solicitation for the purpose or sale of any financial investment. This content does not constitute tax advice and as such investors should be advised to consult their own tax advisers regarding the tax consequences of their investment activities. Investment return and principal will fluctuate, so that a client's initial investment may increase or decrease. Investing in securities markets involve risks like those arising from stock and bond markets, currency exchanges rate and interest rate volatility. No part of this content may, without CCM prior written consent, be copied, reproduced, or published by any recipient for any purpose. Past performance is not indicative of future performance.
