Climate Change Data

Environmental Metrics

ESG Focus Areas

• Customer-centered values
• Contribution to society
• Employee fulfillment
• Environmental protection
• Responsible Investment (PRI)
• Sustainable Development Goals (SDGs)

Environmental Achievements

• Reduced CO2 emissions by 12.1% year-on-year in FY2019 (page 17).
• Osaka Fukoku Seimei Building received commendation for built environment efficiency.
• Sapporo Fukoku Seimei Koshiyama Building received LEED Gold certification and a four-star rating under the Development Bank of Japan’s Green Building Certification System.
• Koiwa Fukoku Seimei Building received top ranking and ZEB Ready certification under the Building-Housing Energy-efficiency Labeling System.

Social Achievements

• Launched "Infection Disease Support Plus" medical insurance plan (page 4).
• Launched "Hataraku Sasae Plus" disability insurance rider (page 4).
• Increased dividends for policyholders for the ninth consecutive year (page 3).
• Paid out ¥554.9 billion in insurance claims, annuities, and benefits (page 3).
• Fukoku Life Concerts, Visiting Concerts at schools and institutions for people with disabilities, and Charity Concerts.
• Smile Gallery showcasing art from special needs schools.
• Bake sales run by institutions for people with disabilities.

Governance Achievements

• Introduced an executive officer system in April 2009 (page 12).
• Established a Basic Policy on Corporate Governance (page 12).
• Established a Risk Management Committee and subcommittees (page 12).
• Established a Compliance Committee (page 12).
• Formulated a privacy policy and a basic policy on the handling of specific personal information (page 12).

Climate Goals & Targets

Environmental Challenges

• Substantial drop in new policies in the first quarter due to COVID-19 restrictions on sales activities (page 6).

Mitigation Strategies

• Limited in-person insurance solicitations and focused on remote after-sales services (page 2).
• Gradually resumed sales activities using a combination of in-person and remote methods (page 2).
• Introduced online consultations and an electronic transmission system for sales materials (page 2).
• Strengthened telephone and postal after-sales services (page 2).

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Principles for Responsible Investment (PRI), Task Force on Climate-related Financial Disclosures (TCFD)

Certifications: LEED Gold

UN Sustainable Development Goals

• SDG 17 (Partnerships for the Goals)

Centenary Project initiatives (page 14)

Sustainable Products & Innovation

• Hataraku Sasae Plus
• Infection Disease Support Plus

Environmental Metrics

ESG Focus Areas

• Customer-centered values
• Environmental protection
• Contribution to society
• Employee job satisfaction
• ESG investment and financing
• Climate change
• Sustainable Development Goals (SDGs)
• Human rights and diversity

Environmental Achievements

• Reduced CO2 emissions by 28.9% from the fiscal 2013 level by fiscal 2020; aiming for a 46% reduction by fiscal 2030 and net-zero emissions by fiscal 2050.
• Osaka Fukoku Seimei Building awarded commendation for built environment efficiency.
• Sapporo Fukoku Seimei Koshiyama Building certified gold under LEED.
• Koiwa Fukoku Seimei Building received top ranking and ZEB Ready certification.

Social Achievements

• Donated approximately 46,000 vegetable-based crayons to nursery schools and other facilities.
• Held online and in-person visiting concerts for special-needs schools.
• Sold local products from disaster-stricken areas, donating proceeds to affected regions.
• Implemented initiatives to improve employee satisfaction.

Governance Achievements

• Endorsed recommendations from the Task Force on Climate-related Financial Disclosures (TCFD).
• Established a Sustainability Working Group to monitor SDG-related initiatives.
• Introduced an executive officer system to separate and strengthen decision-making and business execution functions.
• Established a Risk Management Committee and Compliance Committee.

Climate Goals & Targets

Environmental Challenges

• Climate change related physical risks (natural disasters, infectious diseases), transition risks (policy changes, technological innovations), and reputational risks.
• Maintaining stable profitability in a low-interest-rate environment.

Mitigation Strategies

• Managing climate change-related risks from an integrated risk perspective.
• Accumulating foreign stocks and foreign-currency denominated corporate bonds with strong risk-adjusted return.
• Allocating cash on hand into super-long JGBs.
• Utilizing derivative transactions to manage FX and stock risks.
• Engaging in ESG investment and financing.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Increase in insurance claims due to natural disasters
• Growth in morbidity and mortality rates due to infectious diseases

Transition Risks

• Negative impact on asset values due to policy changes and technological innovations

Opportunities

• Growth in coverage requirements stemming from climate change risks
• Investment opportunities in climate change solutions

Reporting Standards

Frameworks Used: PRI (Principles for Responsible Investment), TCFD (Task Force on Climate-related Financial Disclosures)

Certifications: LEED (Leadership in Energy and Environmental Design), ZEB Ready (Zero Energy Building Ready)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Social Issues
• Human Rights
• Diversity & Inclusion

Environmental Achievements

• Reduced GHG emissions from business activities by 27% (FY2022 compared to FY2013), aiming for 46% reduction by FY2030 and net zero by FY2050.
• Reduced GHG emissions in the investment portfolio by 59% (FY2022 compared to FY2013), aiming for 65% reduction by FY2030 and net zero by FY2050.
• Three office buildings certified as ZEB (net zero-energy building) Ready.
• Three rental condominiums certified as ZEH-M (net zero-energy house mansion) Oriented.

Social Achievements

• Increased percentage of customers who responded that they were “very satisfied” in a policyholder survey.
• Consistently increased dividends for individual insurance policyholders for 12 consecutive years.
• Held 341 roundtable meetings for two-way dialogue with staff (2,487 participants).
• Selected for the seventh consecutive year under the Ministry of Economy, Trade and Industry’s Certified Health & Productivity Management Outstanding Organizations Recognition Program.

Governance Achievements

• Endorsed recommendations issued by the Task Force on Climate-related Financial Disclosures (TCFD).
• Established a corporate governance system based on a Basic Policy on Corporate Governance.
• Upgraded by three credit rating agencies (Standard & Poor's, Fitch Ratings, and others).

Climate Goals & Targets

Environmental Challenges

• Increase in payments of insurance claims following natural disasters (physical risk).
• Negative impact on the value of invested assets due to low-carbon transition (transition risk).
• Reputational damage from a passive approach to reducing greenhouse gas emissions (reputational risk).

Mitigation Strategies

• Managing climate change-related risks from an integrated risk perspective.
• Scenario-based testing concerning tropical infectious disease outbreaks.
• Appropriate execution and improvement of the management of credit and market risks.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Increase in insurance claims due to natural disasters
• Growth in morbidity and mortality rates from infectious diseases

Transition Risks

• Negative impact on asset values from policy changes and technological innovations

Opportunities

• Growth in coverage requirements stemming from climate change risks
• Investment opportunities in climate change solutions

Reporting Standards

Frameworks Used: TCFD

Certifications: ZEB Ready, ZEH-M Oriented

Awards & Recognition

• Ministry of Economy, Trade and Industry’s Certified Health & Productivity Management Outstanding Organizations Recognition Program (7 consecutive years)