Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety and Security for Society
• Global Environmental Issues (Climate Change)
• Sustainable and Responsible Financial Services
• Community Involvement and Development
• Developing Human Resources and Promoting Diversity

Environmental Achievements

• Working together with stakeholders to pass on a sustainable society to future generations
• Adaptation to climate change
• Mitigation of climate change
• Preservation of biodiversity

Social Achievements

• NKSJ Volunteer Days—Encouraging Employees’ Individual Efforts
• Continued Recovery Support for Victims of the Great East Japan Earthquake
• Corporate Citizenship Activities around the World
• Social Contribution through Foundations
• Inclusion of Diversity as a Corporate Strength

Governance Achievements

• Building a Responsible Investing Framework
• Contributing to the Development of a Sustainable Society by Providing Financial Products to Promote CSR-driven Companies

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, ISO26000, UN Global Compact, UN Guiding Principles on Business and Human Rights, ISO14064-1, Environmental Reporting Guidelines (Ministry of Environment, Japan)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Human Rights
• Community Involvement
• Sustainable Financial Services

Environmental Achievements

• Achieved carbon neutrality
• Reduced CO2 emissions by at least 20% versus fiscal 2006 (Nipponkoa)
• More than 15 million customers chose web-based policies, forgoing the conventional paper-based format.

Social Achievements

• Launched NKSJ Volunteer Days, with about 10,000 employees participating
• Launched “Miracle Miracle,” a website for sustainability education for children
• Provided continuous support for recovery from the Great East Japan Earthquake
• More than one million people purchased a lifelong medical insurance product

Governance Achievements

• Integrated CSR and environmental management systems (CSR-EMS) at Sompo Japan and Nipponkoa, working towards ISO14001 certification
• Established a group-wide CSR organization to accelerate collective initiatives
• Conducted group-wide CSR training programs for employees at all levels
• Acquired ISO39001 certification (international standard for road traffic safety management system)

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Green purchasing throughout the value chain

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ISO26000

Certifications: ISO14001, ISO39001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Weather Index Insurance
• Web-based insurance policy access

Awards & Recognition

• Newsweek Green Rankings 2012 (No. 18)
• Eco-Products Award
• J-Win Diversity Basic Achievement Award
• Green Purchasing Award
• Make a CHANGE Day Award
• RobecoSAM Sustainability Award
• World’s Most Ethical Companies
• Golden Bee CSR China Honor Roll
• Nikkei’s Environmental Communication Awards
• Toyo Keizai’s CSR survey
• R&I Fund Award 2012
• HDI-Japan’s Five-Star Program

Environmental Metrics

ESG Focus Areas

• Security, health, and wellbeing of customers and society
• Climate change countermeasures
• Environmental, social, and governance (ESG) investment
• Diversity
• Human rights

Environmental Achievements

• Reduced CO2 emissions by 1.2% from FY2013
• Reduced electric power consumption by 3.6% from FY2013
• Developed fire insurance for wind power generation companies with a special clause that covers costs to prevent recurrence of accidents. This product received Japan’s Environment Minister’s Prize in the Eco-Services Category of the 11th Eco-Products Awards.

Social Achievements

• Launched new medical insurance product “Shin Kenko no Omamori” with over 300,000 applications in 11 months.
• Launched “Smiling Road” safe driving support services for corporate customers.
• Increased annual dividend per share to 70 yen (from 60 yen) and conducted share buybacks amounting to 17.0 billion yen.
• Entered into a capital and business alliance agreement with major nursing care company Message.
• Entered the home remodeling business by acquiring FRESHHOUSE.
• Increased the annual dividend per share to 80 yen (from 70 yen).

Governance Achievements

• Appointed four outside directors with diverse backgrounds to enhance management quality.
• Established a Nomination and Compensation Committee with a majority of outside directors.
• Improved internal solvency ratio.
• Improved adjusted consolidated ROE.

Climate Goals & Targets

Environmental Challenges

• Super-aging society
• Decreasing population
• Risk of large-scale natural disasters
• Significant changes resulting from a shrinking Japanese population

Mitigation Strategies

• Merger of Sompo Japan and Nipponkoa to maximize cost reduction effects and improve profitability.
• Automobile insurance product and premium rate revisions.
• Marketing insurance through agencies and direct sales.
• Disciplined investments in mature and emerging markets.
• Development of businesses complementary to the insurance business.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Large-scale natural disasters

Reporting Standards

Frameworks Used: International Integrated Reporting Framework (IIRC)

Sustainable Products & Innovation

• Weather index insurance
• Typhoon Guard (Insurance)
• Fire insurance for wind power generation companies

Awards & Recognition

• Environment Minister’s Prize (Eco-Services Category)
• Environment Minister’s Award (Biodiversity)
• Environment Minister’s Award (Global Warming Prevention)
• 1st in Non-Manufacturers/Financial Business Category (Toyo Keizai Inc.’s CSR Corporation Ranking)
• 1st in Financial Business Category (Toyo Keizai Inc.’s CSR Corporation Ranking)
• Bronze Class (RobecoSAM Corporate Sustainability Assessment)
• 1st among Japanese financial institutions (CDP Climate Change)
• Highest Award of the Year (Make a CHANGE Day Award)
• Outstanding Performance Prize (The Environmental Communication Awards)
• Outstanding Organizational Initiative Award (Dementia Supporters Caravan Award)

Environmental Metrics

ESG Focus Areas

• Disaster Preparedness
• Health and Welfare
• Global Environmental Issues
• Community Empowerment
• Diversity and Inclusion

Environmental Achievements

• Reduced Greenhouse Gas Emissions (Scope 1-3) from 134,833 t-CO2 in 2011 to 151,704 t-CO2 in 2015 (Note: Scope breakdown not explicitly provided, coverage of survey varied across years).

Social Achievements

• Launched Nursing Care Support Plan to help employees balance work and caregiving.
• Increased number of female employees in managerial positions from 5.0% in 2013 to 13.2% in 2016.
• Launched the “ALSOK Reliable Accident Site Support Service” for improved customer experience after accidents.
• Sompo Insurance Indonesia ranked overall No. 1 among insurance companies by Indonesian economic magazine infobank.

Governance Achievements

• Introduced a business owner system to expedite decision-making and clarify authority and responsibility.
• Established a Nomination and Compensation Committee with a majority of outside directors to ensure transparency and fairness in appointments and compensation.
• Increased percentage of outside directors from 25% in 2013 to 33.3% in 2015.

Climate Goals & Targets

Environmental Challenges

• Population decline and rapid aging in Japan.
• Normalization of large-scale natural disasters.
• Exponential evolution of technology and changes in customer behavior.
• Soft market trends in overseas insurance business.
• Potential for increased insurance claims from unexpected natural disasters.

Mitigation Strategies

• Established a business scale with a global presence and built differentiated business models.
• Implemented advance investment to enhance the earning power of the domestic P&C insurance business.
• Diversified business portfolio by shifting management resources to growth areas.
• Reinforced risk management systems to minimize the threat of risks in the overseas insurance business.
• Established SOMPO Digital Labs in Tokyo and Silicon Valley for research and development in digital strategy.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Large-scale natural disasters

Reporting Standards

Frameworks Used: International Integrated Reporting Framework (IIRC)

Third-party Assurance: Third-party certification organization (annual assurance statement issued since 2012 for greenhouse gas emissions)

Sustainable Products & Innovation

• Portable Smiling Road (smartphone app for safe driving)
• Weather index insurance

Awards & Recognition

• Inclusion in Dow Jones Sustainability Indices, FTSE4Good Index Series, MSCI Global Sustainability Indexes, ECPI Global Developed ESG Best-in-Class Equity Index, Morningstar Socially Responsible Investment Index
• Bronze Class in RobecoSAM Corporate Sustainability Assessment
• Ranked 1st in Toyo Keizai Inc.’s CSR Corporation Ranking and Nikkei Inc.’s Corporate Environmental Management Survey Ranking
• 1st Nihon Service Award Excellence Award
• Minister of State for Space Policy Prize at the 2nd Space Development and Utilization Grand Prizes
• J-Win Diversity Award 2016
• Environmental Minister’s Award
• Women’s Empowerment Grand Prize Award

Environmental Metrics

ESG Focus Areas

• Climate change
• Community Involvement
• Product and service development contributing to security, health, and wellbeing
• Providing sustainable and responsible financial services
• Diversity and Inclusion

Environmental Achievements

• Reduced CO2 emissions by 7.6% from FY2014
• Reduced electric power consumption by 2.1% from FY2014
• Reduced paper use by 18.5% from FY2014
• Ratio of eco-friendly parts used increased to 4.6%
• Ratio of bumpers repaired: 17.4%
• Ratio of outer panels repaired: 56.4%

Social Achievements

• Increased shares of existing SRI funds by 800 million beneficial interest from private investors
• Received additional 20 billion yen for sustainable investment from pension funds
• Exceeded TOPIX by 0.63% (on April 28, 2016)
• Approximately 13,000 employees participated in year-round volunteering
• Expanded the Everyone’s Sunflowers Project from 50 to 80 schools
• Ratio of female employees in managerial positions increased to 13.2%

Governance Achievements

• Published CSR Booklet and CSR Report in Japanese and English
• Published a white paper on customer feedback
• Launched an all-new official website
• 98.11% of employees received compliance training

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Third-party organization

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Insurance to increase earthquake hazard coverage
• Insurance product to cover fees arising from a legal dispute
• Health and productivity management support service
• ALSOK accident support service
• Thai flooding index insurance prototype
• Indonesia weather index insurance

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• All Group companies in Japan received ISO 14001 certification.
• Selected for the 2016 Climate A List in a survey on climate change by the international CDP project.

Social Achievements

• Group receives recognition of its weather index insurance for Southeast Asia and consequently becomes first financial institution in Japan to be granted membership of Business Call to Action (BCtA).
• Sompo Japan Nipponkoa receives Prime Minister’s Award in recognition of initiatives to empower female employees.
• Group launches Group Exchange Program for international exchanges among Group personnel.

Governance Achievements

• Group appoints outside director
• Group establishes Nomination and Compensation Committee
• Group companies become signatories of Principles for Financial Action towards a Sustainable Society (Principles for Financial Action for the 21st Century).
• Group becomes a signatory to the Women’s Empowerment Principles
• Group appoints its first female outside director.
• Group establishes Diversity Promotion Headquarters.
• Introduced a Business Owner system
• Introduced a Group Chief Officer system

Climate Goals & Targets

Environmental Challenges

• Market contraction stemming from the advent of an aging society with a decreasing population and to increased risks associated with global climate change.
• Decreasing population and rapidly aging society in Japan.
• Increasing frequency of large-scale natural disasters.
• Exponential evolution of technology and accompanying changes in customer behavior.

Mitigation Strategies

• Enhancement of corporate value through ESG initiatives.
• Acquisition of Sompo International (formerly Endurance Specialty Holdings Ltd.).
• Establishment of business foundations for the nursing care business.
• Establishment of SOMPO Digital Lab with a view to embarking upon a full-fledged digital strategy.
• Introduction of a Business Owner system to facilitate prompt, flexible decision-making.
• Introduction of a Group chief officer system.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency of large-scale natural disasters

Opportunities

• Development of weather index insurance

Reporting Standards

Frameworks Used: International Integrated Reporting Framework

Certifications: ISO 14001

Sustainable Products & Innovation

• Weather Index Insurance

Awards & Recognition

• Dow Jones Sustainability Indices (DJSI World, Asia Pacific)
• RobecoSAM Bronze Class Award
• CDP (Climate Change) A List
• Prime Minister’s Award to Commend Leading Companies Where Empowering Women
• Grand Award of Global Warming Countermeasures Report (Environment Minister’s Award)

Environmental Metrics

ESG Focus Areas

• Social Responsibility
• Environmental Sustainability
• Community Engagement
• Disaster Relief
• Employee Wellbeing
• Diversity and Inclusion

Environmental Achievements

• Acquired ISO 14001 certification (1997), first Japanese financial institution
• Published an environmental report (1998), first Japanese financial institution
• Launched Sompo Japan Green Open (SRI fund) (1999)
• Achieved carbon neutrality (2013)
• ISO 14001 certification for all Group companies in Japan (2016)
• Web-based insurance policy access for automobile insurance products (2009), reducing paper usage

Social Achievements

• Established the Yasuda Kasai Fine Art Foundation (now Sompo Japan Nipponkoa Fine Art Foundation) (1976)
• Opened the Seiji Togo Memorial Yasuda Kasai Museum of Art (now Seiji Togo Memorial Sompo Japan Nipponkoa Museum of Art) (1976)
• Established the Yasuda Fire & Marine Foundation (now Sompo Japan Nipponkoa Welfare Foundation) (1977)
• Established employee volunteer organization and introduced volunteer work leave (1993)
• Launched CSO Learning Scholarship Program (2000)
• Established Healthcare Frontier Japan Inc. (now Sompo Health Support Inc.) (2005)
• Launched road safety program in Indonesia and maternal and child health program in Myanmar (2014)
• Caravan-Mate Training for Dementia Supporters (2016)

Governance Achievements

• Signed UNEP FI Statement of Environmental Commitment by the Insurance Industry (1995)
• Joined the United Nations Global Compact (2006)
• Signed the UN supported Principles for Responsible Investment (UN PRI) (2006)
• Signed the Women’s Empowerment Principles (WEPs) (2012)
• Signed Japan’s Stewardship Code (Sompo Japan Nipponkoa, Sompo Japan Nipponkoa Asset Management) (2014)
• Acquired ISO 39001 certification (international standard for road traffic safety management system) (2012)

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Human Rights
• Customer Value

Environmental Achievements

• Reduced GHG emissions (Scope 1-3, excluding Scope 3 Category 15) to 306,876 t-CO2e in FY2023 from 412,771 t-CO2e in FY2017.
• Received an A score for Climate Action by CDP for the seventh time.
• Sompo Risk Management received the highest “S” rating for 11 consecutive years in the Tokyo Cap-and-Trade Program.

Social Achievements

• Increased ratio of female employees in managerial positions to 25.5% in FY2023.
• Improved employee engagement scores (Gallup Q12) in both Japan and overseas.
• Certified as a 2024 Health & Productivity Management Outstanding Organization for the eighth consecutive year.

Governance Achievements

• Sompo Holdings was awarded a one-star rating as an outstanding company in the Information Technology Federation of Japan (IT-renmei)’s survey on corporate cybersecurity initiatives and information disclosure.
• Inclusion in various ESG indices (DJSI, FTSE4Good, MSCI ESG Leaders Indexes, etc.).

Climate Goals & Targets

Environmental Challenges

• String of recent misconducts undermining corporate culture and governance.
• Need to improve data management and customer value optimization, particularly in the domestic P&C insurance business.
• Addressing the gender gap in years of service and meeting the legally mandated quota for hiring people with disabilities.

Mitigation Strategies

• Appointment of an officer to improve customer service and trust.
• Reassessment of data management practices from a customer-oriented perspective.
• Development of services and measures to cater to the diversity of customers (elderly, disabled, foreigners).
• Continued implementation of GHG emission reduction targets in investments and loans.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Initiatives to reduce paper consumption.

Climate-Related Risks & Opportunities

Physical Risks

• Wind and flood damage

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Extending services to offshore wind farm operators

Reporting Standards

Frameworks Used: GRI Standards

Certifications: Null

Third-party Assurance: British Standards Institution (BSI)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• CDP Climate Change A List
• Health & Productivity Management Outstanding Organization