Tokio Marine Group supports and respects the Universal Declaration of Human Rights, the ILO Core Labour Standards and the OECD Guidelines for Multinational Enterprises. Also, Tokio Marine Group will contribute to the creation of a safe, secure and sustainable future through participation in initiatives beginning with the United Nations Global Compact (UNGC) and the United Nations Environment Programme Finance Initiative (UNEP FI).
Human Rights, Labour, the Environment and Anti-Corruption
The United Nations Global Compact
The United Nations Global Compact is a voluntary initiative for participation by companies in the creation of a global framework under which companies exercise responsible and creative leadership to act as good members of society to realize a sustainable society.
The ideas and contents of the ten principles concerning human rights, labour, the environment and anti-corruption advocated by the UNGC coincide with Tokio Marine Group’s own approach to Sustainability as well as our Sustainability Charter. Therefore, Tokio Marine Holdings has been a signatory to and expresses its support for the UNGC since 2005.
Tokio Marine Holdings is participating in the United Nations Global Compact Network Japan (GCNJ) and in fiscal 2021 participated in such initiatives as the Disaster Prevention and Mitigation Working Group and Reporting Study Working Group, and Woman Empowerment Working Group, among others. From fiscal 2022 and beyond, Tokio Marine Holdings will promote these initiatives as “PARTICIPANT.”
Tokio Marine Holdings summarizes and reports every year on the status of initiatives for addressing the ten principles of the United Nations Global Compact.
Sustainable Finance and Insurance
UNEP FI Principles for Sustainable Insurance (UNEP FI-PSI)
More than 400 financial institutions around the world participate in the United Nations Environment Programme Finance Initiative (UNEP FI), an initiative that surveys, researches and puts into practice business approaches that consider economic development, the environment and sustainability.
In addition to providing support as a sponsor to the Tokyo Dialogue on Sustainable Finance convened by UNEP FI in Tokyo in June 2019, Tokio Marine & Nichido participated in the Asia-Pacific Regional Roundtable held in June 2021 and made a presentation on the theme of “Co-creating value through the Green Gift Project and mangrove planting project.” The company also contributes to the discussions on climate-related financial disclosures and other topics. From the perspective of promoting sustainability throughout the Group, in January 2022 the UNEP FI signatory body was changed from Tokio Marine & Nichido to Tokio Marine Holdings.
The Principles for Sustainable Insurance (PSI) of UNEP FI is a working group that surveys, researches and executes ESG initiatives in the insurance industry.
Tokio Marine & Nichido has not only participated in the formulation of PSI but also supported its intent and policies and became its founding signatory in June 2012.
The company has since been promoting insurance industry initiatives that consider ESG issues together with insurance companies all around the world.
From fiscal 2018, Tokio Marine & Nichido participates in the PSI Task Force on Climate-related Financial Disclosure (TCFD) Insurer Pilot Working Group and was involved in creating the framework for climate-related financial disclosure in the global insurance industry based on the TCFD recommendations. The company was also instrumental in the creation and publication of the “Insuring the climate transition” report in January 2021. In June 2022, we participated in PSI’s 10th anniversary event and appealed to the insurance industry to contribute to The Decade of Action, which under the UN calls for the acceleration of ESG initiatives toward 2030.
Ministry of the Environment Principles for Financial Action towards a Sustainable Society (Principles for Financial Action for the 21st Century)
Based on a suggestion from the Ministry of the Environment’s Central Environment Council Expert Committee on Environment and Finance, the Principles for Financial Action for the 21st Century were compiled in 2011 by Japan’s Environmental Financial Action Principles Drafting Committee, which featured the participation of a wide range of financial institutions, with the aim of broadening the circle of initiatives for environmental financing. The Principles for Financial Action are aimed at enabling domestic financial institutions to promote optimal initiatives in their main businesses for addressing a host of issues they face directly such as environmental, social and governance issues. Under these principles, financial institutions seek to unify directions with such international initiatives as UNEP FI and PRI and fulfill their necessary responsibilities and roles for the formation of a sustainable society based on their concerns about the future of the earth.
Within Tokio Marine Group, Tokio Marine & Nichido is actively participating as a member of the drafting committee and the following six other Group companies have agreed with the intent of and signed the Principles.
- Tokio Marine & Nichido Fire Insurance
- Tokio Marine & Nichido Life Insurance
- Nisshin Fire & Marine Insurance
- E. design Insurance
- Tokio Marine Millea SAST Insurance
- Tokio Marine Asset Management
Tokio Marine Group has been proactively contributing to the Principles’ initiatives. In July 2021, the Group gave a lecture entitled “The Latest TCFD Developments” during an online seminar held by the Insurance Business Working Group.
In the future as well, Tokio Marine Group will continue to promote the kind of initiatives that the financial and insurance industries can provide support for to create a sustainable society.
Sustainable Investment
UN Principles for Responsible Investment (PRI)
The United Nations Principles for Responsible Investment (PRI) is an initiative devised mainly by UNEP FI and the United Nations Global Compact that expresses and puts into practice stances and policies that consider ESG issues in investment decisions by financial institutions and institutional investors.
The following Tokio Marine Group companies agree with the thinking of PRI and have signed the Principles.
| Signatories (Timing) | Initiatives |
|---|---|
| Tokio Marine Asset Management (April 2011) | Signed the UN-supported PRI initiative, accepting these Principles as an asset management company. The company established a responsible investment committee composed of the chief asset managers of each line, as well as a responsible investment group. Through these steps, the company develops basic policies, processes and systems concerning responsible investment, and undertakes initiatives that take into account ESG issues during investment analysis, product development and exercise of voting rights. |
| Tokio Marine & Nichido (August 2012) | Tokio Marine & Nichido has endorsed the concept of the PRI and signed on as an asset owner. The company has established an ESG investment and financing policy and has been promoting initiatives for ESG engagement and ESG integration. |
Japan Sustainable Investment Forum
Japan Sustainable Investment Forum (JSIF), a not-for-profit organization (NPO), carries out activities to promote the spread and development in Japan of sustainable investment and ESG investment, which are actively undertaken in Europe and the United States. JSIF functions as a venue for information and opinion exchanges, discussions and investigative research among persons involved with ESG investment and aims for the sound development of ESG investment and for the building of a sustainable society.
As members of JSIF, Tokio Marine & Nichido and Tokio Marine Asset Management are participating in investigative research on ESG investment and in initiatives for the sound development of this investment.
Climate Change and Natural Disasters
Net-Zero Insurance Alliance (NZIA)
The NZIA is an international initiative to promote the transition of insurance underwriting portfolios to realize a net-zero greenhouse gas (GHG) emissions society by 2050. It considers the definition of net zero insurance underwriting portfolio, the method of measuring GHG emissions of the insurance underwriting portfolio and how to set targets. The NZIA aims to announce the targets for the first five years in July 2023.
In January 2022, Tokio Marine Holdings became the first Japanese insurance company to join the NZIA, an international initiative, from the perspective of further promoting climate change countermeasures. By joining the NZIA, the Company will proactively participate in the creation of international rules in the insurance industry to achieve the goal of decarbonization. Tokio Marine Holdings will also aim to formulate a framework that respects the decarbonization process matched to the situation of each country, including criteria for evaluating the effectiveness of carbon offset technology in offsetting CO2emissions as well as placing an emphasis on dialogue (engagement) to support corporate decarbonization activities.
Partnership for Carbon Accounting Financials (PCAF)
The PCAF is an international initiative to develop methods for measuring and disclosing GHG emissions associated with investment and financing. To date, the organization has developed methods for measuring and disclosing GHG emissions related to listed stocks and corporate bonds, commercial loans and unlisted stocks, project finance, commercial real estate, mortgage loans and auto loans. In September 2021, the PCAF established a working group jointly with the NZIA to develop a method for measuring GHG emissions related to insurance underwriting portfolios.
In January 2022, Tokio Marine & Nichido joined the PCAF. Through participating as a member, the company aims to improve its technology related to the measurement and analysis of GHG emissions and improve the quality of dialogue (engagement) with its recipients of investments and financing to achieve decarbonization.
The United Nations Office for Disaster Risk Reduction (UNDRR) — Private Sector Alliance for Disaster Resilient Societies (ARISE)
In November 2015, The United Nations Office for Disaster Risk Reduction (UNDRR), a strategic framework for disaster risk reduction adopted by United Nations member countries in 2000, launched Private Sector Alliance for Disaster Resilient Societies (ARISE) toward the strengthening and reorganization of the Private Sector Partnership for Disaster Risk Reduction (DRR-PSP) for disaster prevention that Tokio Marine & Nichido joined in 2014.
Tokio Marine & Nichido participated in the 7th Global sPlatform Meeting (GP2022) and Stakeholder Forum hosted by UNDRR in May 2022 and made a presentation on “Insurance Companies as Risk Managers.”
The Geneva Association
The Geneva Association is an insurance industry think tank composed of approximately 70 executives from major insurance companies around the globe.
As a member of the Executive Committee of the Geneva Association, Tsuyoshi Nagano, Chairman of Tokio Marine Holdings, leads and supports surveys and research on important insurance industry issues (climate change and the environment, health and aging society, socioeconomic resilience, new technologies and data, cyber issues, compensation liabilities, public policies and regulations, etc.) handled by the association. At the same time, as Joint-Chairman of the “Climate Change and Emerging Environmental Topics” working group, he is taking the lead in undertaking surveys and research on climate change and natural disaster risk and disseminating related information to society. In recent years, the Geneva Association has been hosting the Women in Insurance Award with the aim of facilitating the empowerment of female leaders in the insurance industry. Chairman Nagano has been serving as a member of the selection panel of the award.
ClimateWise
ClimateWise is an initiative led by the Prince of Wales in which approximately 30 leading insurers in Europe jointly carry out studies and research on various risks and opportunities related to climate change and make recommendations toward reducing the risks that climate change imposes on economic and social life. The initiative is operated by the University of Cambridge Institute for Sustainability Leadership (CISL).
Participants from Tokio Marine Group include Tokio Marine Kiln and Tokio Marine HCC International. Tokio Marine Kiln Group CRO Vivek Syal serves as a member of the ClimateWise Advisory Council.Tokio Marine Group will continue to promote efforts toward mitigating and adapting to climate change in accordance with the seven ClimateWise Principles.
Asia-Pacific Financial Forum (APFF)
With the recognition that economic indemnification brought by natural disasters is linked closely to national financial issues, the Asia-Pacific Economic Cooperation (APEC) Finance Ministers’ Process (FMP) adopted the Cebu Action Plan (CAP) in September 2015. The CAP positions disaster risk financing and insurance* (DRFI) as a priority issue and confirms the importance of collaboration with the private sector. To implement the action issues specified under the CAP, the Working Group on Disaster Risk Financial Solutions composed of finance authorities from nine APEC member economies and related international organizations was launched. The Asia-Pacific Financial Forum (APFF), a platform to provide support to APEC-FMP through public-private collaboration, is participating in discussions as a member.
Tokio Marine & Nichido (Masaaki Nagamura, Fellow) is participating as a member of APFF and is leading discussions on DRFI within APFF.
Under the APEC-FMP, a policy to promote the use of “cat bonds” within the APEC region was approved at the 2019 meeting of finance ministers. In response, the World Bank and APFF jointly held an online workshop on cat bonds in September 2020 to exchange information and opinions conducive to the widespread use of cat bonds in the APEC region. It has also been implemented in Guangdong, Hong Kong and the Pearl River Delta region.
In addition, an online roundtable was held in April 2022 on how to promote financial preparedness in the APEC region through public-private partnerships against pandemic risks. Tokio Marine & Nichido engaged in the discussion from the standpoint of an insurance underwriter.
- *1 DRFI is a broad concept that bundles multiple countries and offers a wide variation of insurance schemes that range from insurance that covers natural disaster risk, with countries being the insured party, to schemes under which private-sector insurance companies provide earthquake insurance coverage for individual customers possessing regular homes and household goods, with governments serving as reinsurers.
Insurance Development Forum
The Insurance Development Forum (IDF) was established in 2016 as a publicprivate partnership led by the private insurance industry to promote the widespread use of insurance schemes in countries vulnerable to natural disasters.
Tokio Marine Group has been participating as a member of the IDF’s Operating Committee and Steering Committee since 2018. The IDF assembles experts involved in promoting disaster risk insurance around the world to mutually share experiences and motivate each other. Since Japan has experienced many disasters, its input for disaster responses has been greatly valued, including for the earthquake insurance system implemented as a public-private collaborative scheme. Meanwhile, the network cultivated through participation in the IDF has proved useful for discussions at the aforementioned APFF. As such, Tokio Marine Group has been instrumental in organically bridging initiatives advocated by the two organizations.
Climate Change and Nature-related Disclosure
CDP
The Carbon Disclosure Project (CDP) is an organization that drives an initiative under which the world’s principal institutional investors cooperate in calling for companies worldwide to disclose their climate change strategies (risks and opportunities) and greenhouse gas (GHG) emissions. Tokio Marine Holdings participates every year as a CDP Signatory and is supporting survey research in the areas of corporate-related climate change strategies and GHG emissions as well as energy usage.
Financial Stability Board (FSB) Task Force on Climate-related Financial Disclosures (TCFD)
The Task Force on Climate-related Financial Disclosures (TCFD) organized under the Financial Stability Board (FSB) released its recommendations in June 2017, which have played a central role in promoting information disclosures of climate-related risks and opportunities.
In addition to disclosing its own information based on the TCFD recommendations, Tokio Marine Holdings contributed to the release of the recommendations in 2017 and was involved in the creation of their framework as a TCFD member. Moreover, in Japan the company has served in its capacity as one of the founders of the TCFD Consortium and a member of its Planning Committee to facilitate discussions and opinion exchanges among relevant parties in both public and private sectors from around the world. The company has also been working to encourage the spread and promotion of TCFD initiatives in Japan and Asia-Pacific countries.
Taskforce on Nature-related Financial Disclosures (TNFD) Forum
The TNFD is an international initiative launched in June 2021 by the UNEP FI, UNDP, Global Canopy and the World Wildlife Fund (WWF). By establishing a framework for disclosing nature-related financial information and encouraging companies to disclose nature-related information, the TNFD aims to shift global financial flows toward nature-positive outcomes.
In January 2022, Tokio Marine Holdings endorsed and participated in the activities of the TNFD Forum from the perspective of further promoting efforts to protect the natural environment.
Environmental Value Creation
Ministry of the Environment Eco-First System
Eco-First is a system under which companies pledge to the Ministry of Environment that they will proactively undertake initiatives for protecting the environment that include adopting global warming countermeasures and waste and recycling measures. Under the system, the ministry certifies those companies (top-notch companies within the industry) that “carry out visionary and unique business activities that lead the industry” in environmental fields.
In 2008 Tokio Marine & Nichido was certified as an Eco-First company. In fiscal 2014 and 2019, Tokio Marine & Nichido obtained recertification based on a new agreement. This was in recognition of initiatives aimed at protecting the earth’s environment and preventing global warming through the insurance business. These include “offering environment-conscious insurance with the participation of customers through the Green Gift Project” and “research centered on industry-academia collaboration that focuses on climate change and natural disasters.”
Tokio Marine & Nichido will continue to promote initiatives for protecting the global environment and preventing global warming as an Eco-First company.
Endorsement of the Ministry of the Environment's COOL CHOICE
COOL CHOICE is a national campaign that encourages all “smart choices” conducive to countermeasures for global warming. They include switching to products, utilizing services and making lifestyle choices that contribute to the realization of a decarbonized society to reduce emissions of CO2 and other greenhouse gases.
Tokio Marine & Nichido endorses COOL CHOICE, a national campaign being carried out by the government to counter global warming, and will work to make “smart choices” that contribute to the realization of decarbonized operations in all business activities. This includes not only striving for power savings in summer and winter but also in areas ranging from products and services to donations and volunteer activities.
Endorsement of the Ministry of the Environment’s “Fun to Share” Climate Change Campaign
The Ministry of the Environment has been undertaking the Fun to Share climate change campaign since March 2014. By sharing with all citizens information, technologies and knowledge leading to the creation of an enriched low-carbon society, the campaign aims to not only foster interest in and a sense of crisis about global warming concerns but also create opportunities for linking companies, organizations, communities and citizens and realize Japan’s first “Lifestyle Innovation,” in which Japan can take pride, throughout the world.
Tokio Marine & Nichido has endorsed the Fun to Share campaign and is actively promoting initiatives toward the realization of a low-carbon society.
Green Purchasing Network
The Green Purchasing Network was established in 1996 as a facilitative network and an information-disseminating organization of companies, government agencies and non-government organizations leading the way in green purchasing. The network was established based on the recognition that green purchasing plays a crucial role in the formation of markets for environment-friendly products and represents an extremely effective means of promoting the development of environment-friendly products through markets and by extension for building a sustainable society. As a member of the Green Purchasing Network, Tokio Marine & Nichido promotes initiatives for green purchasing.
30 by 30 Alliance for Biodiversity by the Ministry of the Environment
The 30 by 30 Alliance for Biodiversity was established to achieve global targets to end and reverse biodiversity loss (i.e., become nature-positive) by 2030 and to effectively protect at least 30% of Japan’s land and sea areas as sound ecosystems by 2030. The Ministry of the Environment launched the initiative in April 2022 with the aim of preserving more than 30% of the country’s land as a natural environment area by 2030.
Tokio Marine & Nichido has been promoting conservation of biodiversity through the Mangrove Planting Project since 1999. From fiscal 2022 and beyond, the company will promote initiatives for biodiversity as a company that has endorsed the 30 by 30 Alliance at its establishment.
