TCFD REPORT

2023

INDEXCEO Message …………………………………………………………………………………… 3
Climate-Related Financial Disclosure Based on the TCFD Recommendations ………… 4
Governance………………………………………………………………………………………… 5❶ Supervisory and Execution Structure for Responding to Climate Change 6❷ Compensation System for Directors and Executive Officers 6

Strategies…………………………………………………………………………………………… 8❶ Recognition of Risks and Opportunities 9❷ Scenario Analysis 11

A. Physical Risks 11
B. Transition Risks 17❸ Implementation of Climate Change Strategy 18

A. Initiatives of Tokio Marine Group 18
B. Policies Concerning Insurance Underwriting as well as Investment and Financing 22

Risk Management ………………………………………………………………………………… 23
Metrics and Targets……………………………………………………………………………… 26❶ Metrics and Targets 27❷ GHG Emissions 28

CEO Message
Climate-Related Financial Disclosure
Based on the TCFD Recommendations

1

Governance2

Strategies

3

Risk Management

4

Metrics and Targets

CEO Message
Tokio Marine Group aims to resolve social issues through our business activities based on the Group’s
purpose of protecting our customers and society in times of need and to increase our corporate value as aresult. By continuing to help society through our business activities, we also aim “To Be a Good Company”— one that can still be trusted by customers and society 100 years from now. We have leveraged knowledge
and experience accumulated over the years in the insurance business to contribute to social development
through the provision of safety and security. We will continue to work to resolve social issues and help build
a safe, secure and sustainable future. By doing so, we will perpetually enhance our corporate value andgenerate value beneficial to all of our stakeholders, and more broadly, to society.
Climate change is a serious global issue, which threatens the safety and security of our customers andsociety. The intensification of natural disasters directly affects the insurance industry. Therefore, we
recognize that climate change is an extremely important issue to address as an insurer (insurance products
and services), a global company, institutional investor, asset manager and good corporate citizen. We havebeen communicating and collaborating with various international organizations, governments, industries,
academic institutions, and civil society to achieve the goal of the Paris Agreement, which was adopted atthe 21st session of the Conference of the Parties to the UNFCCC (COP21) in December 2015. Based on such
constructive dialogue and collaboration, Tokio Marine Group will voluntarily engage in climate action andcontribute to the transition to a decarbonized society.

Satoru Komiya
President and Group CEO
Tokio Marine Holdings, Inc.

Based on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), we
present our strategy to identify and make appropriate responses to the impact of climate change on ourbusiness and society, along with Tokio Marine Group’s initiatives through various business activities towardrealizing the transition to a decarbonized society.

TCFD Report 2023

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CEO Message
Climate-Related Financial Disclosure
Based on the TCFD Recommendations

1

Governance2

Strategies

3

Risk Management

4

Metrics and Targets

Climate-Related Financial Disclosure Based on the TCFD Recommendations
The Task Force on Climate-related Financial Disclosures (TCFD) had been entrusted by the Financial

disclose climate-related information and how to link the disclosed information to appropriate investment

Stability Board (FSB) to formulate voluntary recommendations for consistent, comparable, reliable,

decision-making of financial and other organizations.

clear, and efficient climate-related disclosures by companies in the financial sector and released its final
recommendations (TCFD recommendations) in June 2017.

Tokio Marine Holdings has been making disclosures based on the TCFD recommendations starting fromits Integrated Annual Report 2017 and has been striving to enhance its content every year.

Climate change and natural disasters represent a global issue and have a significant impact on Tokio
Marine Group as we engage in insurance and financial services. As a founding member of the TCFD, Tokio

The table below is an overview of the four fields of disclosure based on the TCFD recommendations. In thisMarine Holdings has contributed to the formulation and publication of the TCFD recommendations andreport, we provide detailed information in each field.

has been working toward the formulation of policy recommendations to encourage disclosure that will
help investment decisions by engaging in discussions and exchanging opinions with relevant government
and private-sector parties in Japan and overseas.
In July 2018, Tokio Marine & Nichido became a founding member of the insurer pilot group, launched by theUnited Nations Environment Programme Finance Initiative (UNEP FI) under the Principles for Sustainable
Insurance (PSI) framework to examine and develop methodologies and analytical tools for the insurance
industry to make climate-related disclosures based on the TCFD recommendations. The company has
contributed to the publication of the final report of the UNEP FI pilot project, entitled “Insuring the climatetransition,” in January 2021.
In Japan, our Chairman of the Board of Tokio Marine Holdings worked as one of the founders andDisclosure Based on the TCFD Recommendations

Governance

Strategiesa) O versight by the Board a) Climate-related risks
of Directors
and opportunitiesb) Management roleb) I mpact of climaterelated risks andopportunitiesc) Possible impact ofdifferent climaterelated scenarios

Risk management

Metrics and targetsa) Processes fora) Metrics used to assess
identifying andclimate-related risks
assessing climateand opportunities
related risksb) Scopes 1, 2 and 3b) Processes for managing
greenhouse gas (GHG)
climate-related risks
emissionsc) I ntegration of thesec) Targets used to manage
processes into overall
climate-related risks
risk management
and opportunities

contributed to the establishment of the TCFD Consortium in May 2019. After the establishment, Tokio
Marine Holdings has been a member of the Planning Committee to deliberate on the consortium’s courseof action and has contributed to the release of the TCFD Guidance (most recently TCFD Guidance 3.0

Source: Created by Tokio Marine Holdings based on the Recommendations of the Task Force on Climate-related Financial
Disclosures, Figure 4 (p. 14), TCFD, June 2017

released in October 2022). The Company also participates in discussion on effective ways for companies to
TCFD Report 2023

4

GovernanceCEO Message
Climate-Related Financial Disclosure
Based on the TCFD Recommendations

1

Governance2

Strategies

3

Risk Management

4

Metrics and Targets

Governance
Various initiatives related to climate action are reported to the Board of Directors after the discussion at[Sustainability Committee]

Sustainability Committee and Management Meeting. In our governance structure, each relevant execution

We established the Sustainability Committee in April 2021 to accelerate our sustainability strategy,

body voluntarily promotes initiatives under the supervision of the Board of Directors. Key related bodies

including climate action, across the entire Group. Chaired by the CSUO and comprising suchand their roles are as follows.

members as the CEO, chief officers and management of overseas Group companies, the Sustainability❶ Supervisory and Execution Structure for Responding to Climate Change

Committee deliberates on details of our sustainability initiatives and policies on a global basis andmonitors the progress of each initiative. The committee met four times in fiscal 2022 to promote[Board of Directors]

and execute the sustainability strategy, formulate medium- to long-term targets (KPIs) related to

The Board of Directors recognizes responding to climate change as a material management issue andsustainability, formulate, and review annual plans and deliberate on other items.

assumes the role of supervising our sustainability strategy and initiatives. The Board deliberates oursustainability policies encompassing climate action, as well as evaluates and determines mid-term[Division Dedicated to Promoting Sustainability]

and single-year plans. The Board receives reports from the Sustainability Committee every quarter

Tokio Marine Holdings has a division dedicated to the promotion of the Group’s sustainability

in principle to monitor sustainability iniitiatives and provides instructions as necessary. In addition,

including climate action (Sustainability Division, Corporate Planning Department), which identifies

the Board of Directors holds deliberation on corporate strategy on the themes of the management

major challenges related to sustainability as well as formulates and implements related Group-wide

environment and management issues, including climate action, to fully utilize the knowledge ofstrategies and conducts monitoring.

outside directors and outside Audit & Supervisory Board members.
Corporate Governance, Integrated Annual Report 2022 (P. 94)❷ Compensation System for Directors and Executive Officers
In fiscal 2022, we started incorporating non-financial indicators concerning the tasks on climate[Group Chief Sustainability Officer (CSUO)]

action and other key issues in our sustainability strategy into the performance-linked compensation

We established the new position of CSUO in April 2021 to accelerate the promotion of sustainability

for Directors and Executive Officers. We use the progress of each task toward our vision as an

strategy, including climate action, across the entire Group. The CSUO, a Director, oversees theindicator, and after performing the first assessment of compensation amounts at the Sustainability

promotion and permeation of the sustainability strategy, presents related policies to the Board ofCommittee, hold a deliberation and give a final decision at the Compensation Committee.

Directors and the Management Meeting for discussion and takes the role of reporting the progress tothese bodies.

TCFD Report 2023

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CEO Message
Climate-Related Financial Disclosure
Based on the TCFD Recommendations

Governance1

Strategies

2

3

Risk Management

4

Metrics and Targets

Tokio Marine Holdings’ Organizational Structure for Promoting Sustainability

Board of Directors

CEOManagement Meeting

Four times annually

Sustainability Committee

CSUO(comprised of the CEO and chief officers)(Note 1)

Secretarial Office(Note 2)

(Note 3)

Working Group
Products andservices

Operations

Task Force

SocialCommunications
contributions

Businessstrategies

TCFD

Diversity
Council(Note 1) Secretarial Office:	Handles administration for the committee (as well as the subcommittees and task force)and promotes the sustainability strategies.

Departments(Note 2) Working Groups:
	Formulate and execute annual plans for respective issues, with input from relevant
departments of Tokio Marine Holdings and members of Group companies.
	Formulate plans and coordinate actions regarding measures to address material issues.
Group companies in thedomestic non-life
insurance businessGroup companies
in the domestic
life insurance businessGroup companies in thedomestic financial andother businesses

Group companies
in the international
insurance business(Note 3) Task force:	Organizes members of projects tasked with strengthening short-term initiatives.

TCFD Report 2023

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Strategies

CEO Message
Climate-Related Financial Disclosure
Based on the TCFD Recommendations

1

Governance2

Strategies

3

Risk Management

4

Metrics and Targets

Strategies
In responding to climate change, which poses a global social issue critical to human history and important❶ Recognition of Risks and Opportunities

for Tokio Marine Group, we promote initiatives toward achieving carbon neutrality by 2050 in keeping

In a strategy, recognizing inherent risks is essential. Tokio Marine Group assumes a rise in climate-relatedwith the promise of the Sustainable Development Goals (SDGs) of leaving no one behind and based onrisks and accordingly identifies and evaluates their impact on our business. Climate-related risks include

constructive dialogue (engagement) with all of our stakeholders. As an insurer (insurance products andphysical risks and transition risks. Physical risks arise from an increase in the frequency and intensity ofservices), institutional investor and asset manager, we provide support both in terms of mitigating andnatural disasters caused by climate change, while transition risks result from the impacts of the transition

adapting to climate change and help customers and investment and financing recipients solve their

to a decarbonized society on the corporate value of investee companies and assets held by us. On therespective issues. Efforts include providing insurance products and services to support the transition to aother hand, initiatives to mitigate and adapt to climate change also provide business opportunities for

decarbonized society, such as those promoting the more widespread use of renewable energy; providing

Tokio Marine Group. On the next page, we show examples of events for each risk and opportunity based

insurance to cover damages caused by natural disasters; services that will lead to prevention or reduction

on the TCFD recommendations and examples of risks and opportunities to the Group’s business activities.

of damages; and undertaking sustainable investment and financing.
As is described later in the “Risk Management” section, Tokio Marine Group identifies the “risk of major
As a global company, we also take climate action through collaboration and cooperation withwind and flood disasters (including physical risks of climate change)” as a material risk that will have aninternational and other organizations. We intend to contribute to the mitigation and adaptation to climate

extremely large impact on our financial soundness and business continuity. We believe such risks couldchange and seek growth together with our stakeholders. Social contribution activities are also key toincrease in frequency and severity due to climate change.

climate action. As such activities, we plant mangroves and engage in research and educational activities
to increase society’s resilience, thereby contributing to climate action as a good corporate citizen in local
communities.
Additionally, Tokio Marine Group announced “Tokio Marine: Our Climate Strategy” in September 2020 andhas since reviewed and updated the statement annually. In this statement, Tokio Marine Holdings commits
itself to providing all-out support to customers and investment and financing recipients with regard toclimate action.

TCFD Report 2023

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CEO Message
Climate-Related Financial Disclosure
Based on the TCFD Recommendations

1

Governance2

Strategies

Physical risks

Examples of events
Acute

Potential for growing frequency and scale of typhoons, floods and other
weather events

Chronic

Rise in temperature
Other weather changes, such as droughts and heat waves
Rising sea levels
Impact on arthropod-borne infectious diseases

Transition risks

Policies and regulations

Technology

Markets

Opportunities

Reputation

3

Risk Management

4

Metrics and Targets

Examples of risks to the Group’s business activities

Time frame
Short term
or longer• Impact on the calculation of claims payments• Impact on business continuity caused by damage to buildings and other facilities at bases

Increase in carbon prices
Strengthening of environment-related regulations and standards
Increase in climate-related legislation• Decrease in the corporate value of investee companies and the value of the assets heldby the Company due to higher carbon prices• Impact on liability insurance payments

Technological innovation toward the transition to a decarbonized society• Decrease in the corporate value of investee companies that have missed the transition toa decarbonized society and in the value of the assets held by the Company• Decline in revenue due to technological innovation and inability to ascertain changes incustomer needs

Changes in the demand for and supply of products and services

Changing customer and societal awareness of initiatives surrounding thetransition to a decarbonized society

Mediumto long term

Mediumto long term

Mediumto long term
Short term
or longer
Short term
or longer• Reputational damage due to the Company’s efforts being deemed inappropriate• Drastic increase in the need for insurance for renewable energy projects• Increase in investment and financing opportunities on the back of companies’ increasing
Resource efficiency, energy sources,
Demand for products and services aligned with changes in energy sources
funding needs associated with response to decarbonization
products and services,and designed to increase resilience; changes in public awareness• Increase in disaster prevention and mitigation needs toward increasing resilience against
markets and resiliencedisasters

Short term
or longer

Note: Short term: less than 3 years, Midium term: 3-10 years, Long term: 10 years or more

TCFD Report 2023

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CEO Message
Climate-Related Financial Disclosure
Based on the TCFD Recommendations

Governance12Strategies

3

Risk Management

4

Metrics and Targets❷ Scenario Analysis

The Tokio Marine Research Institute, a Group company, began conducting research in 2007 to evaluate

Scenario analysis is a process of identifying and evaluating the potential impact of climate change basedand calculate the impact on insurance loss of changes in wind disaster risk associated with typhoons

on certain scenarios. The Group believes it can be flexible and resilient to these impacts, as most non-life

under future climate conditions (impact under the IPCC’s RCP4.5 and RCP8.5 scenarios) and changes ininsurance policies are relatively short term and the Group’s assets under management are mainly highly

flood risk due to increased rainfall (impact resulting from temperature increases of 2°C and 4°C). Referring

liquid financial assets.

to the results of this scenario analysis, we assess the impact on underwriting of natural disasters resulting
from increasingly severe climate change.

<A. Physical Risks>
Physical risks are those related to physical impacts of climate change. Climate change increases the

Future projections of climate change scenarios (+2°C, +4°C, etc.) are subject to uncertainties, as describedfrequency and intensity of natural disasters, which could impact claims payments and business continuity.

later (see page 14). In assessing the impact of climate change, it is also important to evaluate not only

We conduct a scenario analysis of physical risks as part of our efforts to identify and assess their impact.

weather phenomena but also the vulnerability of society to disasters as well as the extent to whichreal estate and personal properties will be concentrated in areas exposed to natural disaster risk in theA-1. Impact on Claims Payments

future and the extent to which their asset values will increase (in other words, the extent to which asset

The Group takes part in the United Nations Environment Programme Finance Initiative (UNEP FI). Using

concentration will change). The basis for these projections and assessments is indicated in the following

analysis and assessment tools developed by UNEP FI’s climate change impact assessment project, we havepages.

created the following assessment of the impact of changes in the intensity (wind speed) and number oftropical cyclones on our claims payments under the IPCC’s Representative Concentration Pathway (RCP)
8.5 scenario forecast as of 2050.
Changes in claims payments in 2050
Intensity (wind speed)

Number of formations

Japan (typhoons)+5% to +53%

-30% to +28%

United States (hurricanes)

0% to +37%

-36% to +30%

* The figures above reflect economic losses, assuming the same impact on claims payments.
* The figures above show the rate of change from current weather conditions (1980–2000) to those in around 2050.

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CEO Message
Climate-Related Financial Disclosure
Based on the TCFD Recommendations

1

Governance2

Strategies[Changes in Weather Events]

3

Risk Management

4

Metrics and Targets

For heavy rains and tropical cyclones, which are two weather events that considerably affect Tokio Marine
Group, we consider the impact of climate change as follows.

How a weather event will change due to the impact of climate change and the degree of confidence ofsuch an impact forecast will vary depending on the type of weather event. Figure 1 shows the confidence◆ Impact of Climate Change on Heavy Rainsof climate change impact projections by weather event type. As seen in the figure, the confidence of

In Japan, the frequency of heavy rains has been on the rise since 1900 (Figure 2). The IPCC Sixth

impact projections for extreme rainfall (heavy rains) is higher than that for tropical cyclones, such as

Assessment Report released in August 2021 states that heavy rains will become more severe in the futuretyphoons and hurricanes, but the impact on extreme rainfall (heavy rains) involves greater uncertainty

in line with temperature rise and that for every 1ºC temperature rise, the intensity (precipitation) of heavy

compared to such temperature variations as extreme heat (heat wave) or extreme cold (cold wave).

rains will increase by approximately 7%.

Highconfidence

2.5

Number of days per year

Ability to detect possible influenceof climate change on specific event

Extreamcold
Extreamheat

Droughts
ExtremeExtreamsnow
rainfall& ice
ExtratropicalTropical
cyclones
cyclones
Severeconvective Wildfires
stormsLow
confidence

2

1.5

1

0.5

0

1901 1904 1907 1910 1913 1916 1919 1922 1925 1928 1931 1934 1937 1940 1943 1946 1949 1952 1955 1958 1961 1964 1967 1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012 2015 2018 2021

Figure 2: Days per year with daily precipitation of 100 mm or moreHigh
confidence

Source: Tokio Marine Holdings based on materials from the Japan Meteorological Agency (website)

How well we understand the likely influence
on event types in general
Figure 1: Confidence of impact forecasts of climate change
Source: Tokio Marine Holdings based on material prepared by the U.S. National
Oceanic and Atmospheric Administration

TCFD Report 2023

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CEO Message
Climate-Related Financial Disclosure
Based on the TCFD Recommendations

1

Governance2

Strategies

Risk Management

34

Metrics and Targets◆ Impact of Climate Change on Tropical Cyclones

In the future, while the number of tropical cyclones is expected to level off or decrease overall, the ratio of

Atmospheric and oceanic large-scale circulations (e.g., El Niño and monsoons) are closely related to theintense tropical cyclones is forecast to increase. As such, there are both decrease and increase projections

formation, development and movement of tropical cyclones. As climate change affects each of these

for the number of intense tropical cyclones (IPCC Sixth Assessment Report).

factors, the impact of climate change on tropical cyclones consequently becomes more uncertain.
Wind speed(increase)

First, looking at past trends, the IPCC Sixth Assessment Report reported an increase in the number ofobservations will be needed to monitor changes in long-term trends (Japan Meteorological Agency).
As for hurricanes making landfall in the United States, even though the ratio of major hurricanes has
risen over the past 40 years, a longer-term survey covering the period from 1900 revealed that there
is no discernible trend both in the number of total hurricanes and that of major hurricanes (IPCC Sixth

Change rate (%)

intense typhoons in Japan. However, the certainty level is not yet high, and longer-term, higher-quality

Precipitation(increase)

Number of all tropical cyclones(Both Increase/Decrease)

Number of major cyclones(Both Increase/Decrease)

%

%

%

%

30

30

80

80

20

20

40

40

10

10

0

0

0

0

-40

-40

Typhoon Hurricane Global

Typhoon Hurricane Global

Typhoon Hurricane Global

Typhoon Hurricane Global

Assessment Report).

Number of continental U.S.
landfalling hurricanes

Figure 4: Changes in tropical cyclones due to a temperature change of +2ºC
8

All hurricanes

Major hurricanes4* Thomas Knutson, Suzana J. Camargo, Johnny C. L. Chan, Kerry Emanuel, Chang-Hoi Ho, James Kossin, Mrutyunjay Mohapatra,
Masaki Satoh, Masato Sugi, Kevin Walsh, and Liguang Wu, 2020: Tropical cyclones and climate change assessment part II:
Projected response to anthropogenic warming. Bull. Amer. Meteor. Soc.,101, E303‒E322, https://doi.org/10.1175/
BAMS-D-18-0194.1 (© American Meteorological Society. Used with permission.)

7
6

3

5
4

Source: Tokio Marine Holdings based on Knutson et al., 2020*

2

3
2

1

1
0

0
1900 1905 1910 1915 1920 1925 1930 1935 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015

1900 1905 1910 1915 1920 1925 1930 1935 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015

Figure 3: Number of hurricanes making landfall in the United States
Source: Tokio Marine Holdings based on Klotzbach et al., 2018**Philip J. Klotzbach, Steven G. Bowen, Roger Pielke Jr., and Michael Bell, 2018: Continental U.S. hurricane landfall frequency
and associated damage. Bull. Amer. Meteor. Soc., 99, 1359‒1376, https://doi.org/10.1175/BAMS-D-17-0184.1(© American Meteorological Society. Used with permission.)

TCFD Report 2023

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CEO Message
Climate-Related Financial Disclosure
Based on the TCFD Recommendations

1

Governance2

Strategies[Changes in Vulnerabilities in Society and Asset Exposure]3

Risk Management

4

Metrics and Targets◆Changes in Vulnerabilities in Society
In Japan, revisions to the Building Standards Act have proved to directly translate into the better resilienceAs shown in Figure 2 on page 12, the frequency of heavy rains in Japan has been increasing since 1900.

of society as a whole. In fact, revisions made in 1981 to the seismic building codes and in 2000 to the

Figure 5 below, on the other hand, shows a declining trend for flooded areas. This is because Japan’s

wind pressure resistance building codes have greatly contributed to the improved resistance of buildings

disaster prevention infrastructure, including embankments, has improved since the mid-19th century andagainst natural disasters. More recently, Typhoon Faxai, which made landfall in 2019 and caused damage

is effectively reducing the occurrence of floods during heavy rains.

to the roofs of many houses, has prompted revisions to the standards for roofing on countermeasures

Flooded area
(housing districts and others) (ha)against intense winds, which were enacted in January 2022. In addition, the Ministry of Land,
Infrastructure, Transport and Tourism has already announced its policy that the anticipated intensification

120,000of natural disasters should be considered in improving disaster prevention infrastructure in the future,

100,000

making its recommendations for rivers in 2019 and for storm surges in 2020.
80,000Overseas, efforts to increase resilience throughout society have also been under way. The United States,

60,000for example, has improved its disaster prevention infrastructure and revised building codes following

40,000huge natural disasters, including Hurricanes.

20,00001965 1968 1971 1974 1977 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013 2016 2019

Figure 5: Areas inundated by floods (ha)In keeping with the move toward strengthening resilience in and outside Japan, Tokio Marine Grouphas been contributing to greater resilience of the entire society by supporting customers to cope withdisasters through the dissemination of disaster information.

Source: Tokio Marine Holdings based on materials from the Ministry of Land, Infrastructure,
Transport and Tourism (flood statistics)

The amount of damage will vary significantly if there is a change in asset exposure, that is, a change inthe degree of concentration of assets or in the value of assets in areas exposed to natural disaster risk. In
this way, we recognize that identifying changes in weather events themselves, such as heavy rains andtyphoons, as well as changes in society’s vulnerabilities to disasters and in asset exposure are essential inpredicting damage due to natural disasters.
TCFD Report 2023

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CEO Message
Climate-Related Financial Disclosure
Based on the TCFD Recommendations

Governance12Strategies

Risk Management

34

Metrics and Targets◆ Recognition of Changes in Asset Exposure

From the viewpoint of damage due to natural disasters, an important factor is the exact location of assets

In Japan, an influx of people into urban areas is expected to continue in the future. Over the period(whether within a hazardous area). In response to frequent occurrence of natural disasters in recent years,

from 2015 to 2040, even though the number of households in the country is projected to decline 4.8%

Japan’s Ministry of Land, Infrastructure, Transport and Tourism has stated that it is important to consider

on national average, an increase is expected in some prefectures, including Tokyo. As such, the trend offlood risk reduction when determining the locations of housing districts and city functions. Accordingly,

changes in asset exposure varies from region to region.

Tokio Marine Group is monitoring the policy trends of the national and local governments.

Area of extremely high risk
with land development andbuilding restriction

N

Area that currently has risk
and will continue to faceresidual risk after measures interms of “hardware,” such as
flood control, are implemented under the ongoing plan,but is serving as a base of civic
life and is desirable to remain
so in the future as well(%)

0 or higher-5 to less than 0-10 to less than -5
Less than -10

0

400km

National: -4.8%

Area that will continue toface significant residual risk
after measures in terms of“hardware,” such as flood
control, are implemented,
requiring to consider
relocation to a safer area with
its population on the decline

Risk
low

high

Area requiring measures tocounter risk of flood frominland waters in its central
district, where city functions
are to be locatedArea that has high risk oflandslide near the cliff, forwhich the need forrelocation will be examined
as necessary

Area that has relatively low
risk but needs to establish analert and evacuation system
to further increase safety

Figure 7: Direction of urban development based on the risk of water-related disasters
Source: Tokio Marine Holdings based on materials from the Ministry of Land, Infrastructure, Transport
and Tourism (website)

Figure 6: Changes in the number of households from 2015 to 2040
Source: National Institute of Population and Social Security Research, “Number ofHousehold Projections for Japan (2017 Estimates)”

TCFD Report 2023

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CEO Message
Climate-Related Financial Disclosure
Based on the TCFD Recommendations

1

Governance2

Strategies

3

Risk Management

4

Metrics and Targets

Changes in the exposure geographic distribution are important in considering natural disaster damage

A-2. Impact on Business Continuity: Promoting Climate Change Adaptation Measuresboth in Japan and overseas. In the United States, economic loss caused by hurricanes in the past is known

Tokio Marine Group uses multiple scenarios*1 to perform analysis and evaluation*2 on the impact of

to be on an upward trend, but when the impact of a change in inflation, wealth properties and population

climate change risk on our operations using holistic and context-specific approaches. By doing so, we areis normalized, there is no longer a significant trend. Thus, a rise in economic loss is mostly a result of thesepromoting climate action and initiatives to increase resilience against disasters.

factors.

*1 Including IPCC’s Shared Socioeconomic Pathway (SSP) 5-8.5, SSP3-7.0, SSP2-3.5, SSP1-2.6, SSP1-9, RCP8.5, RCP6.0, RCP4.5 and
RCP2.6 scenarios*2 Climate change risk analysis and evaluation conducted in collaboration with Resilience of the United Kingdom

Continental U.S. economic loss from hurricanes (USD billion)

250
200

Adjusted by inflation only

◆ Holistic Approach

150

Based on a holistic approach, we use multiple scenarios to analyze and evaluate, both quantitatively

100

and qualitatively, the impact of an increase in weather disasters (such as heavy rains and floods)
on our operations and have been implementing measures from medium- to long-term (about

50

two to five years) and short-term (within one year) viewpoints. On the whole, we have specifically01900 1905 1910 1915 1920 1925 1930 1935 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015concluded that an increase in weather disasters will not have a profound impact on our operations ascompared to the manufacturing and other industries for a number of reasons. For example, insurance
products represent an intangible service and do not necessarily require physical sales bases, and

250
200

Adjusted by inflation and exposure

their development and production involve minor supply chain risks such as the procurement of raw
materials.

150◆ Context-Specific Approach100

Based on a context-specific approach, we use multiple scenarios to analyze and evaluate, both
50

qualitatively and quantitatively, the impact of increase in weather disasters (such as heavy rains

01900 1905 1910 1915 1920 1925 1930 1935 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015

and floods) on our operations and have been promoting initiatives to protect our own assets fromweather disasters, which are expected to become more severe due to climate change. Specifically,

Figure 8: Economic loss due to hurricanes on the U.S. mainland

we are examining measures from medium- to long-term (about two to five years) and short-term

Source: Tokio Marine Holdings based on Klotzbach et al., 2018*(within one year) viewpoints and implementing measures against flood disasters, such as installing*Philip J. Klotzbach, Steven G. Bowen, Roger Pielke Jr., and Michael Bell, 2018: Continental U.S. hurricane landfall frequency
and associated damage. Bull. Amer. Meteor. Soc., 99, 1359‒1376, https://doi.org/10.1175/BAMS-D-17-0184.1(© American Meteorological Society. Used with permission.)emergency power generators and more water bars at our major bases.
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Governance2

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3

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4

Metrics and Targets<B. Transition Risks>

The following shows the results of the model-based estimates of transition risks of assets (equities,

Transition risks are risks associated with the transition to a decarbonized society. As the global momentum

corporate bonds, CMBS and government bonds) (impact analysis on asset prices based on scenarios up to

toward decarbonization accelerates and the transition to a decarbonized society progresses, we anticipate

2050) held by Tokio Marine Group as of March 31, 2023.

more stringent regulations, technological innovation, asset value fluctuations and changes in theTransition risks

investment environment as well as in customer needs, which could affect the Group’s businesses.
Transition risks include impact on the corporate value of investee companies and the value of assets heldby the Company due to increased costs associated with GHG emissions resulting from climate change.
To reduce the impact of these factors, we are decreasing total holdings of business-related equities andpromoting engagement with investee companies.
We have estimated the impact of transition risks on assets under management by Tokio Marine Group(equities, corporate bonds, commercial mortgage-backed securities – CMBS and government bonds)
using “Aladdin Climate,” a model provided by BlackRock Solutions. With the model, we have quantified
the impact on corporate value due to changes in scenario variables (carbon prices, energy demand, fuelprices, emissions, etc.) based on scenarios provided by The Network of Central Banks and Supervisors forGreening the Financial System (NGFS). More specifically, the quantification of the impact on corporate
value has been conducted by comparing the scenario where current policies continue to 2050 (NGFS’s Hot
House World – Current Policies scenario, assuming limited policy changes and a 3.3°C temperature rise atOrderly

Disorderly

-1.5%

-1.3%

Equities

-7.7%

-5.6%

Corporate bonds

-2.4%

-1.8%

CMBS

-0.0%

-0.2%

Government bonds

-0.0%

-0.4%

Total

* The Aladdin Climate analytics of BlackRock Solutions contained in this report should not be construed as a characterization of
the materiality or financial impact of the corresponding information. The Aladdin Climate analytics includes non-financial
metrics and involves measurement uncertainties resulting from limitations inherent to the nature of the corresponding data
and the methods used for determining such data.
The Aladdin Climate analytics is not fixed and is likely to change and evolve over time. The Aladdin Climate analytics relies on
relatively new analysis methods, and there are limited peer reviews or comparable data available. BlackRock Solutions does
not guarantee and shall not be responsible for the content, accuracy, timeliness, non-infringement or completeness of the
Aladdin Climate analytics contained herein or have any liability resulting from the use of the Aladdin Climate analytics in thisreport or any actions taken in reliance on any information herein.

the end of this century) with the following two scenarios also of NGFS.

It should be noted that the model results used by Tokio Marine Group does not separately calculate the(1) Orderly: Net Zero 2050 (Assuming a temperature rise suppressed to 1.5°C and net zero CO2 emission

positive effects (market superiority or business opportunities) generated by technically implementing

both by 2050)(2) Disorderly: Delayed Transition (Assuming a 1.8°C temperature rise by 2050 due to delayed policychanges)climate change mitigation and adaptation measures as we transition to a low-carbon society. Moreover,
we believe that this and other quantification models of climate change are still in the development stage,undergoing upgrades based on the latest research findings. We thus have no plan, at this point, to use thedata shown above in our management decision-making process, but will continue to carry out researchand investigations to explore more appropriate ways to utilize such quantification modeling methods.
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Metrics and Targets❸ Implementation of Climate Change Strategy

In February 2021, Tokio Marine & Nichido, a Group company, established the company-wide Green<A. Initiatives of Tokio Marine Group>

Transformation (GX) Task Force to support customers’ efforts to become carbon neutral and transition to a

Tokio Marine Group assumes the roles of an insurance company, institutional investor, asset manager,

decarbonized society and contributing to the growth and development of the industry.

global company, and good corporate citizen. In every role, we are promoting the creation of a safe, secure,and sustainable future to protect our customers and local communities in times of need even 100 years

The company is engaging in the developmentfrom now. In the following sections, we describe our initiatives in each role.

and provision of insurance products and solutions
that will contribute to the more widespread use of

A-1. Initiatives as an Insurance Company (Insurance Products and Services)

renewable energy, including offshore wind power

Tokio Marine Group engages in the development and provision of insurance products and services

and solar power, the spread of storage batteries andthat support the transition to a decarbonized society. As one example, we provide insurance related tothe promotion of the use of hydrogen. Our specificrenewable energy.

efforts to contribute to customers’ transition to a
decarbonized society are multifaceted. They include

There is momentum toward decarbonization worldwide and a shift to renewable energy in major

developing defect warranty insurance for the liability

countries for a more efficient electricity supply. In building and expanding the use of offshore wind powerof contractors constructing offshore wind power generation plants; undertaking an initiative to support

generation plants, for example, insurance is indispensable as project financing will not be extended

local communities in achieving decarbonization by utilizing a solar power purchase agreement (PPA)

without insurance. However, offshore construction work is never easy, and there is also a need to reduce

model; developing insurance products to help electricity retailers to stabilize their management andwork errors and prepare for typhoons. It thus represents a challenging domain requiring high levels of

secure a power supply capacity; and providing a service to support information disclosures based on theunderwriting and claims services capabilities.

TCFD recommendations.
Promoting Green Transformation, Sustainability Report 2022 (P. 70)

Tokio Marine Group has acquired GCube, a leading company offering insurance to renewable energy
operators. Based on its advanced underwriting and claims services

For the transition to a decarbonized society, it is essential to make progress with all our customers, so

capabilities, we are driving the more widespread use of renewable

we have been supporting their transition by conducting engagements and providing solutions. To date,energy on a global basis through insurance underwriting andTokio Marine & Nichido has made engagements with more than 250 companies, of these the company

insurance claims payments, seamlessly covering everything from thehas offered solutions to resolve various issues to more than 120 companies while leveraging its expertise.

construction phase to the operational phase after the launch.

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As one engagement example, Tokio Marine & Nichido has been holding dialogue with power plants for

In fiscal 2022, Tokio Marine & Nichido established a team to carry out impact investment that generates

which the company has provided insurance. The company encourages them to consider the environment

both social and economic value and has made investment commitments to renewable energy,

through the adoption of innovative high-efficiency power generation technologies and carbon dioxide

environmental and other funds conducive to counter climate change. In fiscal 2023, the company

capture, utilization and storage technologies (CCUS/carbon recycling) that reduce GHG emissions andcommitted to investment in a new field, specifically a forestry fund, to promote the passing down ofsupports their transition by providing relevant products and consulting services.

valuable forest resources to future generations.

To strengthening of our dialogues, we have set a target to conduct deeper engagements with 200 large

As for our ongoing themed investment and financing efforts, such as those related to green bonds andcorporate customers, which accounts for approximately 90% of insurance-associated emissions of Tokio

sustainability bonds, we are also promoting the creation of social and economic value in new fields. In

Marine & Nichido.

fiscal 2022, we invested in Japan’s first blue bonds to support the investee companies’ efforts related toenvironmentally sustainable fishery and aquafarming businesses. We have also invested in transition

In November 2022, Tokio Marine & Nichido also launched, jointly with MUFG Bank, Ltd., a service tobonds issued by gas, iron and steel and other companies. In this way, we have been providing a broad

support disclosures of climate change risks and opportunities and other related information in accordance

range of support for the realization of a decarbonized society in the investment and financing field.

with the TCFD recommendations as a service solution to help companies promote GX.
The total balance of ESG-themed investments and financing, including green bonds, sustainability bonds
A-2. Initiatives as an Institutional Investor (Investment and Financing)and green loans, was about 109 billion yen as of March 31, 2023, for Tokio Marine & Nichido, Tokio Marine

As a signatory to the United Nations Principles for Responsible Investment (PRI) through Group companies& Nichido Life and Nisshin Fire. In fiscal 2022, Tokio Marine & Nichido started making impact investments

Tokio Marine & Nichido and Tokio Marine Asset Management, we have established a policy concerning

in funds with measurable social returns, such as renewable energy funds. Such commitments amounted

environmental, social and governance (ESG) investment and financing, considering not only financial

to approximately 13 billion yen as of March 31, 2023.

information but also ESG elements. By incorporating climate-related elements into the investment
decision-making process, we are supporting the transition to a decarbonized society.

We have also begun using data providers to conduct quantitative analyses of the GHG emissions of ourinvestee companies.

Specifically, we are undertaking ESG engagement to support increased corporate value and thesustainable growth of investee companies through constructive and purposeful dialogue that considers
non-financial factors including ESG elements in addition to their financial data as well as ESG integration
where both financial data and non-financial data are used in the investment decision-making process.

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A-3. Initiatives as an Asset Manager (Fund Formation)

3

Risk Management

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Metrics and Targets

guidelines to perform forward-looking impact assessment of climate change.

Tokio Marine Asset Management has been operating renewable energy funds targeting investments insolar power plants since 2012, effectively supporting initiatives aimed at the transition to a decarbonized

In July 2018, Tokio Marine & Nichido became a founding member of the insurer pilot group, launched by thesociety.

United Nations Environment Programme Finance Initiative (UNEP FI) under the Principles for Sustainable
Performance of renewable energy funds (Total as of March 31, 2022)

Insurance (PSI) framework to examine and develop methodologies and analytical tools for the insurance

Amount committed ……………… Approx. 62 billion yen
Units installed …………………… 45

industry to make climate-related disclosures based on the TCFD recommendations. The company has

Power generation capacity (DC) … Approx. 280 MW

contributed to the publication of the final report of the UNEP FI pilot project, entitled “Insuring the climatetransition,” in January 2021.
Tokio Marine Kiln and Tokio Marine HCC International from Tokio Marine Group have joined ClimateWise,a climate change-related international initiative in the insurance industry. They have been carrying out
studies and research on various risks and opportunities related to climate change jointly with about 30
leading insurers in the world.
We are also the only Asian company to be a member of the Sustainable Markets Initiative, an insurance
industry task force envisioned by the then Prince Charles of England and established in June 2021.

A-4. Initiatives as a Global Company(Leading Discussions at International Climate Change Conferences)

In Japan, the then Chairman of the Board of Tokio Marine Holdings worked as one of the founders andcontributed to the establishment of the TCFD Consortium in May 2019. After the establishment, Tokio

As climate change is an important social issue that needs to be addressed by the entire world, Tokio

Marine Holdings has been a member of the Planning Committee to deliberate on the consortium’s course

Marine Group actively engages in dialogue with international organizations, governments, industries,of action. We have contributed to the creation of the three versions of the TCFD Guidance released inacademic communities, NPOs and NGOs.

December 2018, July 2020 and October 2022, respectively, and “A Guide to Flood Risk Assessments forEnhanced TCFD Disclosures” released by the Ministry of Land, Infrastructure, Transport and Tourism in

We have led discussions at international conferences, which includes co-chairing a climate change-

March 2023. We also participate in discussion on effective ways for companies to disclose climate-related

related working group for the Geneva Association since 2008. We have also joined the Association’s

information and how to link the disclosed information to appropriate investment decision-making ofclimate change task force and have been engaging in the formulation of scenario analysis and stress test

financial and other organizations.
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Additionally, through industry-academia collaboration with The University of Tokyo, Nagoya University,

A-5. Initiatives as a Good Corporate Citizen (Social Contribution)

Kyoto University and Tohoku University, we engage in research on climate change and natural disaster

Mangrove forests have an effect on the prevention and mitigation of global warming by absorbing

risks in an effort to gain deeper scientific insight into disaster prevention and mitigation and to raise

and fixing a significant volume of CO2. Under the concept of “Insurance for the Future of the Earth,”the sophistication of measuring methods through risk modelling to ascertain risk volume in even

Tokio Marine Group has engaged in the Mangrove Planting Project since 1999. As of March 31, 2023,

greater detail. Our efforts in this area include development of a stochastic risk assessment approach. We

approximately 12,261 hectares of mangrove forest have been planted through this project in nine

believe that in addition to providing products and services in developed countries it is also important tocountries, primarily in Asia. In addition to Tokio Marine & Nichido, other Group companies are now

disseminate the ideas of an insurance mechanism and risk management practices in developing countries

planting mangroves. We have also announced the Mangrove-Based Value Co-creation 100-Yearand regions particularly vulnerable to the impact of climate change and natural disasters in accordance

Declaration, which aims to create value through the blessings of nature brought by mangroves inwith the Sendai Framework for Disaster Risk Reduction 2015-2030, which provides new world guidelines

collaboration with forestry NGOs. Under the declaration, we will continue to undertake this project in thefor disaster risk reduction.

future.

Tokio Marine Group is contributing to the creation of international rules and the progress in research on

In 2022, we launched activities to protect eelgrass beds. Eelgrass is a type of seagrass, which grows in

climate change and natural disaster risks through these initiatives.

sandy, shallow waters with sunlight and gentle waves. It has a high ability to absorb and fixate CO2 fromthe atmosphere as well as purify water. Together with mangroves, we will promote this initiative as aneffort to protect the global environment.

Activities to plant mangroves

Restoring eelgrass beds

Green Lessons

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At every age, educating and enlightening children who will lead the future are a great responsibility adultssociety by no longer providing new insurance underwriting capacities nor investment and financing to oilmust assume. Around the world, Tokio Marine Group is visiting schools to provide Green Lessons andand gas company extraction projects*2 in the Arctic Circle (all areas north of latitude 66°33, including theDisaster Prevention Lessons to children to raise their environmental awareness and disaster preparedness.

Arctic National Wildlife Refuge, ANWR) and oil sands mining.

With our strong belief that “it is our responsibility to pass on a bright future to future generations,” Tokio

Tokio Marine Group operates a strict underwriting policy for specific sectors it defines high risk to theMarine Holdings has positioned future generations as its stakeholders in addition to customers, society,environment and society. For underwriting transactions in the specific sectors that may fall under special

employees, shareholders and investors since 2021. We will step up our tree planting, education, and otherconsideration*3, the Group makes a transaction decision based on risk assessment by a dedicated teamefforts to pass on a sustainable environment and society to these future generations.

through an escalation process and, if necessary, approval by the Sustainability Committee. In FY2022, wereceived 21 inquiries regarding specific sectors, one of which was subject to evaluation by the dedicated<B. Policies Concerning Insurance Underwriting as well as Investment and Financing>team.

Our basic policy on climate change is to support the decarbonization of customers and local communities*1 Carbon dioxide capture and storage/Carbon dioxide capture, utilization, and storage*2 Exemptions for projects with decarbonization plans that are aligned with the Paris Agreement*3 Projects with innovative technologies and approaches, such as CCS/CCUS and mixed combustion which contribute toachieving the goals set in the Paris Agreement, and projects conducted by companies with decarbonization plans alignedwith the Paris Agreement will be carefully decided after analyzing their ESG risks.

through insurance products and services as well as investments and financing through constructive
dialogue with stakeholders. We individually set up a policy on each transaction for the areas that could
cause significant, negative impacts on the environment or society.
Insurance underwriting, investment, and financing on specific sectors

Escalation process (Insurance Underwriting)

Tokio Marine Group has not provided new insurance underwriting capacities nor

Specific sectors

investment and financing to coal-fired power generation projects since September

Decline transaction

2020 or thermal coal mining projects since September 2021, regardless of whetherNothey are newly constructed or not. However, we may grant exceptions after carefulconsideration for projects with innovative technologies and approaches, such
as CCS/CCUS*1 and mixed combustion, aiming to achieve the goals of the Paris

Planned transaction

Transaction that may fallunder special
considerationin specific sectors

Agreement.
Since September 2022, Tokio Marine Group has also strengthened its commitment

ESG risk evaluation by
Sustainability Committee(Dedicated team)

Falls under special
consideration andenvironmental andsocial risks are mitigatedYes

Not related to
specific sectors

Proceed with transaction

by protecting the environment and supporting the transition to a decarbonized
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Risk Management

CEO Message
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Governance2

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Risk Management

3

Risk Management

4

Metrics and Targets● Quantitative Risk Management

For material risks, through measuring risk amounts and implementing stress tests as part of our[Managing Climate-Related Risk Based on Enterprise Risk Management (ERM)]

quantitative risk management, we perform a multifaceted review of the adequacy of capital relative to the

Tokio Marine Group conducts enterprise risk management (ERM), which includes the management ofrisks held for the purpose of maintaining ratings and preventing bankruptcy.

climate risks. Through the ERM cycle, we comprehensively identify and assess climate-related risks, using
both qualitative and quantitative approaches.

We calculate risk amounts posed by natural disasters using a risk model (for Japan, a risk model wedeveloped in-house based on engineering theory and the latest knowledge of natural disasters, andIn the insurance business, which pursues profit through risk-taking, risk assessment is the foundationfor overseas, models provided by outside vendors for insurance companies). We independently analyzeof our business. The Group has been working for many years to increase the level of sophistication ofchanging trends of past tropical cyclones (typhoons in Japan and hurricanes in the United States)

its risk assessment for material risks (including those due to natural disasters) both quantitatively andand torrential rains and incorporate this data as necessary in order to properly assess current weather

qualitatively. Specific initiatives are as follows.

phenomena.

3
 . Business and Other Risks, Section 2 Business Overview, Part 1 Corporate Information, Fiscal 2022 Annual
Financial Report (P. 21) (in Japanese)

Furthermore, within material risks, we conduct stress tests based on scenarios in which extreme economic
losses are expected and scenarios where multiple material risks occur at the same time. As for risks● Qualitative Risk Management

involving major wind and flooding disasters, for example, these scenarios assume typhoons and flooding

We identify all forms of risks comprehensively, including those for natural disasters such as major storms

on a much larger scale than the major typhoons that hit the Greater Tokyo Area in 2018 and 2019 causing

and emerging risks due to environmental changes. Of these risks, we define risks that will have an

extensive damages. We update scenarios continuously while taking into account stress tests released byextremely large impact on our financial soundness and business continuity as “material risks.” We include

the regulatory authorities, the latest knowledge (including that of climate change) and the most recent

the risk of major wind and flooding disasters (including climate change physical risks) in the “materialcase studies.

risks” category, which we believe could become more frequent and severe due to the effects of climatechange. For these material risks, we also formulate control measures prior to risk emergence and response
measures for after risks occur.

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CEO Message
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Governance2

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3

Risk Management

4

Metrics and Targets[Appropriately Controlling Risk through Risk Diversification and Reinsurance, etc.]
Natural disasters are inevitable in Japan, our home market. For that reason, we have sought to control
risk capital by geographic, business and product risk diversification through M&A overseas. In addition,
reinsurance, as a hedge against risk, is also an effective way to protect our capital and stabilize profits. The
Group utilizes reinsurance to prepare for major natural disasters (capital events) that occur once every
few centuries, and we determine earnings coverage from the standpoint of economic rationality and takenecessary measures.
[Acquisition of Knowledge (Industry-Academia Collaboration, etc.)]
Tokio Marine Group is deepening collaboration with both inside and outside experts to acquire
knowledge about risks. The Tokio Marine Research Institute collaborates with The University of Tokyo,
Nagoya University and Kyoto University, among others, to carry out impact analysis based on thepossibility for increased insurance losses associated with natural disasters that are becoming more severein nature.
Moreover, Tokio Marine dR and a team of experts in natural disasters working in Atlanta in the UnitedStates are leading efforts to upgrade natural disaster risk management across the entire Group, including
various evaluations of natural disaster risk models.

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Metrics and Targets

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Metrics and Targets

Metrics and Targets❶ Metrics and Targets[Metrics and Targets for Fiscal 2050]

Level

Topics1.

Identify issues

Understand customer’s decarbonization plans and initiatives
based on the company’s management plan, IR reports, etc.,
while presenting our list of decarbonization solutions.

2.

Proposal based on
identified issues

Provide concrete solutions after creating a shared understandingof issues.
• S upport for adopting renewable energy technologies, risk
assessment, and writing insurance to mitigate risks.
•A dvisory on climate change-related information disclosure andformulation of decarbonization plan, etc.,

3.

Provide insurance
and solutions

Support customers’ transition through our proposed list of
solutions and insurance services.

● Reduction of GHG emissions

Aiming to reduce GHG (CO2) emissions from Tokio Marine Group to net zero by fiscal 2050 for our own
operations (including insurance customers and investment and financing recipients)*1,*2.
[Metrics and Targets for Fiscal 2030]● Reduction of GHG emissions

Reducing GHG emissions (CO2) for operations from Tokio Marine Group by 60% (vs 2015)*3● Renewable electricity use

Using 100% of renewable electricity at Tokio Marine Group’s major business facilities●E lectrification of company-owned vehicles (Tokio Marine & Nichido, Tokio Marine & Nichido Life andNisshin Fire)Switching all vehicles owned by Tokio Marine & Nichido, Tokio Marine & Nichido Life and Nisshin Fire to

Activities

electrified vehicles (EV, PHV, HV, etc.)● Engagements with customers (Tokio Marine Nichido)

Conduct engagements with 200 large corporate customers*4, which accounts for approximately 90%
of insurance associated GHG emissions of Tokio Marine & Nichido and achieve engagement level 2 (seetable below) with more than 160 customers[Metrics and Targets for Fiscal 2023] (Increase or Improvement vs Fiscal 2020)●Increase in insurance products that will contribute to green transformation (GX)

Increasing income from insurance premiums on GX-related insurance products by around 7 billion yen(Tokio Marine & Nichido)
Has increased by 6.3 billion yen as of the end of fiscal 2022
Our strategy is to expand our insurance offerings to drive the more widespread use of renewableenergy. We aim to increase GX-related insurance by using insurance premiums as a metric.
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Strategies● Improvement of profitability of fire insurance

Improving profitability of fire insurance by more than 45 billion yen*5 (Tokio Marine & Nichido)
Has improved by 36.6 billion yen as of the end of fiscal 2022

3

Risk Management

4

Metrics and Targets●A mount of GHG (CO2) Fixed and Reduced: 130,003 tons

Tokio Marine Group is working to reduce the environmental impact (domestic and international)
and become carbon neutral by 1) conserving energy and using energy more efficiently, 2) planting
mangroves to absorb and fix CO2, 3) using renewable energy (such as by procuring green electricity)

To protect customers and local communities in times of need, we must provide fire insurance inand 4) amortizing carbon credits. As a result of these efforts, in fiscal 2021 we achieved carbon neutrality

preparation for natural disasters that have been becoming increasingly severe. We will use thefor the ninth consecutive year (since fiscal 2013) thanks to absorption and fixation effects of mangrove

profitability of fire insurance as a metric and seek to provide the fire insurance system in a stable andplanting and the use of carbon credits outperforming the CO2 emissions generated by the Group’s

sustainable manner.

overall business activities. The value of ecosystem services generated through the Mangrove Planting*1 Medium-term targets still under consideration*2 Scope 3, Category 15, based on the GHG Protocol standards*3 Associated with our own business activities (Scope 1 [direct emissions] + Scope 2 [indirect emissions] + Scope 3 [otherindirect emissions; Categories 1, 3, 5 and 6] based on the GHG Protocol standards)
Scope 3 includes categories of importance to the Group for which numerical values can be obtained.
*4 Prime listed companies selected from the top 150 customers of Tokio Marine & Nichido in terms of written insurance
premiums and its top 100 customers in terms of GHG emissions.
*5 Supposing natural catastrophic claims in an average yearSupposing natural catastrophic claims in an average year.

❷ GHG Emissions[Emissions Associated with the Group’s Business Activities and Achieving Carbon Neutrality]
Each Tokio Marine Group company is working to reduce the environmental impact associated with its

Gas, gasoline
and others
13,022 tons

CO2 emissions
83,483 tons

CO 2 fixation
and reduction
130,003 tons

Scope 1 Direct

Electricity
and others
47,435 tons*

Scope 2
IndirectPaper, business traveland others
23,026 tons

Scope 3Other

business activities, and at the same time, aims to achieve carbon neutrality on a global basis, in which theCO2 absorption andfixation throughmangrove planting
130,000 tons

amount of GHG fixed and reduced through mangrove planting and the use of natural energy exceeds
GHG (CO2) emissions from business activities.
Achieving Carbon Neutrality in Fiscal 2021
●R
 eduction of GHG (CO2) emissions from Tokio Marine Group operations*1: 83,483 tons (32% reductionvs 2015)

Write-off of carbon credits
3 tons* CO2 emissions include the effect of purchasing green power, etc., of 8,597 tons.

(Scope 1: 13,022 tons; Scope 2: 47,435 tons; Scope 3*2: 23,026 tons)
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Governance12Strategies

3

Risk Management

4

Metrics and Targets

Project over the past 20 years (from April 1999 to the end of March 2019) has reached approximately

carbon intensity (WACI) on its domestic listed equity and bond portfolios as of March 31, 2022, the118.5 billion yen. We expect the value to climb to 391.2 billion yen by the end of fiscal 2038 *3. As of

disclosure of which is recommended by the TCFD. In performing the analysis, the company conducted

March 31, 2023, we have planted a total area of 12,261 hectares of mangrove forest.

measurements using data provided by MSCI ESG Research LLC*4, 5, 6.

*1 Associated with our own business activities (Scope 1 [direct emissions] + Scope 2 [indirect emissions] + Scope 3 [otherindirect emissions; Categories 1, 3, 5 and 6] based on the GHG Protocol standards)*2 Amount of paper used, etc.
(Categories 1, 3, 5 and 6)*3 Survey contracted out to Mitsubishi Research Institute, Inc. and evaluated following internationally recognizedmethodologies

We will continue to urge our investee companies to fully disclose climate change-related information andwork toward a decarbonized society through engagement, while also making use of this analysis.
*4 The figures in the table cover 93.3% of the domestic listed equities in the portfolio (based on the market value). Likewise, thefigures in the table cover 66.0% of the domestic bonds in the portfolio (based on the book value).
*5 Data may be subject to change retrospectively.
*6 We conducted measurement of our GHG emissions using information (the “Information”) from MSCI ESG Research LLC and[GHG Emissions for Investment Portfolio]
To assess the climate change-related risks and opportunities of its investee companies and financing
recipients, Tokio Marine & Nichido has performed analysis of total GHG emissions and weighted average
Total GHG emissions(Scope 1 and 2: million tCO2e）

WACI(tCO2e/million USD)

Domestic equities

1.86

114

Domestic bonds

0.92

542

its affiliates (the “ESG Parties”) as well as from other information providers. The Information may only be used for readers’internal use, may not be reproduced or resold in any form and may not be used as a basis for, or a component of, any financial
instruments or products or indices. The ESG Parties do not allow the use of the Information to determine which securities
to buy or sell or when to buy or sell them and do not warrant or guarantee the originality, accuracy and/or completeness of
the Information. The ESG Parties expressly disclaim all explicit or implicit warranties, including those of merchantability andfitness for a particular purpose. None of the ESG Parties shall have any liability for any errors or omissions in connection with
the Information or any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost
profits) even if they have been notified of the possibility of such damages.

Total GHG emissions:Greenhouse gas emissions associated with the portfolio, calculated based on the company’s percentage of equity ownershipto adjusted corporate value (market capitalization + interest-bearing debt)
Weighted average carbon intensity (WACI):Calculated by multiplying each investee company’s greenhouse gas emissions to revenue by the weight of the company in theportfolio and getting the sum of these figures

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