Millea Group CSR Report

2005

Contents / Group Overview

CONTENTS
1

Contents / Editorial Policy

Protection of the Global Environment2

Overview of Millea Group / About This
Report16 Initiatives Dealing With Environmental Issues

3

Message From The President

5

CSR Charter / CSR Promotion Framework

7

Corporate Governance

21 Environmental Communication and AwarenessRaising

23 Insurance for the Planet~The Mangrove Reforestation Project~
Contribution to Communities and Societies

Feature9

Our Contributions in the Wake of the Great
Indian Ocean Tsunami

Products and Services

11 Providing Safety and Security for theEnvironment and Society
Respect for Human Rights and Dignity

13 Creating a Frank and Open Business Culture

25 Practice of Community / Social Philanthropy
Compliance

29 Engaging in Fair Management
Communication

31 Dialogue With Stakeholders
33 Third Party Comment
34 Holding Company Overview
35 The United Nations Global Compact Index / GRI
Guideline Index

Editorial Policy
Previously, our annual “Environmental Report” was published by Tokio Marine. However,this year Millea Group has taken the opportunity presented by the enactment of theGroup CSR Charter to publish its first ever “CSR Report” for the group as a whole.
Our CSR Charter is made up of the six headings of “Products and Services”, “Respect for
Human Rights and Dignity”, “Protection of the Global Environment”, “Contribution to
Communities and Societies”, “Compliance”, and “Communication”. This report aims toprovide information on the activities of Millea Group in the six areas defined in the Charterto our many stakeholders that include our shareholders, customers, agents, employees,
and regional communities.
Millea Group considers this report to be one of its key communication tools. Throughcommunication with all our stakeholders, we aim to continuously improve the content of
this report.

1

Overview of Millea Group(As of March 2005)※Limited liability company indications have been removed (as throughout the report)

Millea Holdings
Non-Life Insurance Operations

Tokio Marine & Nichido
Life Insurance Operations

Tokio Marine & Nichido Life
Life Insurance Operations (Variable Products)

Tokio Marine & Nichido Financial Life
Asian Overseas Subsidiary Holding Company

Millea Asia
Real Estate Investment Advisory Operations

Millea Real Estate Risk Management(Main Umbrella Companies)
Tokio Marine Capital
Private equity investment
Tokio Millennium Re
Reinsurance business
Tokio Marine & Nichido Risk Consulting
Risk consultation
Tokio Marine Asset Management
Investment advisory business
Tokio Marine & Nichido Medical Service
Health and medical related business
International Assistance
Emergency assistance service
Millea Agency
Management of insurance agency
subsidiaries

Temporary Staffing Service

Tokio Marine & Nichido Career Service
About This Report
Organizations Covered in This Report
This report basically covers the activities of all companies within
Millea Group.

Reporting Period
This report basically covers activities from the 2004 Fiscal Year(from April 2004 until March 2005). However, there are passages
where information from outside this time period has been provided
in order to give complete explanations.

The Publication Date
●The previous report (Tokio Marine “Environmental Report 2004”)
was published in August 2004.
●The publication date for this report is July 2005.
●The next projected publication date is July 2006.

Referred Guidelines●GRI (Global Reporting Initiative) “Sustainability Repor ting
Guidelines 2002”.
●United Nations “Global Compact Guidelines for Communication
on Progress (COPs)”.
●Ministry of Environment “Environmental Reporting Guidelines(2003 Edition)”.

Significant Areas of Change from Last Year's Report
The following are points of significant areas of change from the“Environmental Report 2004” published last year by the former
Tokio Marine:(1) Expansion of report scope arising out of the switch from an“Environmental Report” to a “CSR Report”.
(2) Expansion of reporting organization scope with the change frompublication by Tokio Marine to Millea Group.

(3) In October 2004, the two group companies of Tokio Marine andNichido Fire merged to form Tokio Marine & Nichido.
As a result of the above, there have been a number of changes inorganizations behind company initiatives, names, and thecollection scope of related data, all of which results in this reportnot being easily comparable in many areas to the former Tokio
Marine's “Environmental Report 2004” of last year.

Means of Obtaining Further CSR Related Information●IR and Financial Related Information:
http://www.millea.co.jp/en/index.html●Compliance:
http://www.millea.co.jp/en/conduct/index.html●Contribution to Communities and Societies, and Communication:
http://www.millea.co.jp/en/social_respon/social.html●Protection of the Global Environment:
http://www.millea.co.jp/en/social_respon/earth.html●Products and Services:(Tokio Marine & Nichido)
http://www.tokiomarine-nichido.co.jp/index-e.html(Tokio Marine & Nichido Life)
http://www.tmn-anshin.co.jp/ (in Japanese)(Tokio Marine & Nichido Financial Life)
http://www.tmn-financial.co.jp/ (in Japanese)(Tokio Marine & Nichido Career Service)
http://www.tcshaken.co.jp/ (in Japanese)(Millea Real Estate Risk Management)
http://www.mirerim.co.jp/ (in Japanese)2

Message From The President

The Millea Group is committed to fulfillingits corporate social responsibilities(“CSR”) by implementing its Corporate
Philosophy to achieve sustainable growth
together with the development of society.

President, Millea Holdings, Inc.

What CSR Means to Millea Group
It is set down in our corporate philosophy that “Millea Group is committed to thecontinuous enhancement of corporate value, with customer trust at the base of all its
activities.” Millea Group seeks to continue growing together with the various
stakeholders of customers, shareholders, society, and group company employeesthat support us. We believe that the overall value we provide to each of our
stakeholders represents our “Group Corporate Value”, and work hard to improve ourGroup Corporate Value while achieving mutual sustainable growth together withsociety as a whole. It is our belief that the fulfillment of our corporate social
responsibilities can be achieved through actions based upon following our corporate
philosophy.

CSR Initiatives of Millea GroupFor Millea Group, the year 2005 marks our first year of full scale CSR initiatives. Thus,
for us it is our “inaugural CSR year”. In November 2004, we set out the “Millea GroupCSR Charter” as an action agenda to spread awareness of CSR amongst all group
employees, and to put our corporate philosophy into action in a concrete manner.
This charter sets out six fundamental pillars that serve as principles for taking action,
which are “Products and Services”, “Respect for Human Rights and Dignity”,“Protection of the Global Environment”, “Contribution to Communities andSocieties”, “Compliance”, and “Communication”. In order to promote the adoption of
concrete actions across the group as a whole, we have set out a “2005 Millea Group
Annual CSR Plan”. In addition, we have also set up a “CSR Board” made up of group
executives to act as a central entity to oversee and promote our various CSR
initiatives.

The United Nations Global Compact
As of April 2005, the two companies of Millea Holdings and Tokio Marine & Nichido
began participating in the United Nations Global Compact. The Global Compact is a
grand scheme to ensure that all people are able to share in the benefits andopportunities presented by globalization, through businesses adhering to ten
principles relating to such areas as human rights, labor, the environment and anticorruption measures. We seek to apply these kinds of universal principles indeveloping our business activities globally acting as a good corporate citizen.

3

Looking Back at 2004
From the insurance perspective that makes up the core business of Millea Group, lastyear was one that will not soon be forgotten. With a record 10 typhoons making
landfall in Japan, and major earthquakes in Niigata and Fukuoka, as well as the Great
Indian Ocean Tsunami, there were a remarkable number of natural disaster events
both in Japan and abroad that led to tragic loss of life. We were proactively involved
in relief efforts offered to victims in these disaster areas. From among these efforts,
we felt our appreciation of the importance of CSR activities was affirmed when welearned through news reports that during the Great Indian Ocean Tsunami, the green
breakwater provided by mangroves had mitigated tsunami damage. Millea Group,
primarily through Tokio Marine & Nichido is now in the 6th year of its “Mangrove
Reforestation Project” which has achieved replanting of mangroves in an area inexcess of 3,000 hectares. Some of these mangroves played a part in absorbing someof the energy of the tsunami, protecting people and their livelihoods. The original
purpose of this initiative was to offset our business related CO2 emissions and to
become carbon neutral in order to contribute to global environmental protection.
However, it has also ended up making a contribution in the area of disasterprevention.

On the Publication of this CSR Report
Up until FY 2004, Millea Group has published an annual environmental report throughTokio Marine (which merged with Nichido Fire in October 2004 to form Tokio Marine& Nichido Fire Insurance). However, from this year onwards, we will publish a CSR
Report with scope broadened to cover the entire group, in order to promote CSR
activities throughout group companies.
CSR activities cover an extremely broad range of topics. We believe it is important torecognize that all our day to day activities are linked to CSR. Throughout the courseof preparation of this report, we have renewed our own awareness of the very broadbase that makes up CSR activities, and aim to take actions that encourage all group
executives and employees to incorporate CSR into their daily activities.
Millea Group has expressed its long term strategy goal of becoming a “Top Ranked
Global Insurance Group”. Our executives and employees will work hard as one todevelop CSR activities worthy of this goal, and so we sincerely look forward to yourfurther support and encouragement.

Millea Group Corporate Philosophy
The Millea Group is committed to the continuous enhancement of corporate value, withcustomer trust at the base of all its activities.
■ By providing customers with the highest quality products and services, we will spread safety andsecurity to all around us.
■ For fulfilling our responsibility to shareholders, we will pursue global development of sound growing
and profitable businesses.
■ For promoting the creativity of each and every employee, we will foster a corporate culture which
encourages free and open communications.
■ While demonstrating responsible management as a good corporate citizen, we will make a positive
contribution to society.

4CSR Charter / CSR Promotion Framework
Millea Group aims to fulfill our corporate social responsibilities while achieving mutual
sustainable growth together with society as a whole, as we increase the “Group Corporate
Value” we provide to each of our stakeholders.

CSR Charter / CSR Promotion Framework
CSR Charter
Millea Group CSR Charter
Millea Group enacted its “CSR
Charter” based on its corporate
philosophy as a common policy forpromoting concrete initiatives in thearea of CSR across all groupcompanies. The creation of thischarter was carried out based onsuch precepts as seeing businessas a social entity, tying our own
growth to that of developing
sustainability across society ingeneral, encompassing a set ofstakeholders stretching broadly
across the world, respecting adiverse set of values, and placing
an emphasis on communication.
The main message it enshrines is
the
clear
statement
that
implementing
ourcorporatephilosophy
will
lead
on
to
promotion of CSR. Furthermore, inthe message given for each item,
specific initiative policies are
spelled out for each area of CSR.

The Millea Group is committed to fulfilling its corporate social responsibilities(“CSR”) by implementing its management philosophy to achieve sustainablegrowth together with the development of society, in accordance with the following
principles:●Products and Services-We aim to provide society with products and services to meet its needs for safety
and security.
●Respect for Human Rights and Dignity-We respect and actively promote the recognition of human rights.
-We strive to ensure an energetic working environment that is both safe and healthy
and to promote training and education of our employees.
-We respect the right to privacy and strive to enforce sound information
management and control.
●Protection of the Global Environment-Acknowledging that the protection of the global environment is an important
responsibility for all corporate entities, we respect harmonization with andimprovement of the global environment in all of our activities.
●Contribution to Communities and Societies-As a member of various communities and societies, we respect the diversity ofcultures and customs and we aim to contribute actively to the needs of the current era.
●Compliance-While striving to maintain high ethical standards at all times, we will pursue strict
compliance in all aspects of our business activities.
●Communication-We intend to disclose information timely and appropriately and to promotedialogue with all our stakeholders to ensure effective corporate management.

Participation in the United Nations Global Compact
Millea Holdings and Tokio Marine & Nichido Fire Insurance
participate in the UN Global Compact as part of their CSR
activities. The UN Global Compact (UNGC) was officiallylaunched in July 2000 at UN Headquarters in New York, in
accordance with the basic philosophy of the ten principles
of business activities relating to human rights, labor, theenvironment and anti-corruption measures (see Exhibit)that were proposed by United Nations Secretary General
Kofi Anan at the World Economic Forum in Davos,
Switzerland, in January 1999. Our participation was basedon the fact that the philosophy and content of the Compact
shares the same philosophy applied to CSR within Millea
Group and its CSR Charter. Millea
Group will implement CSR activities
based on the principles defined by the
UNGC from now on, and plans todemonstrate its activities throughvarious communication tools.

5

The Ten Principles(Human Rights)
Principle 1: Businesses should support and respect the protection ofinternationally proclaimed human rights; andPrinciple 2: make sure that they are not complicit in human rights
abuses.
(Labor Standards)
Principle 3: Businesses should uphold the freedom of association andthe effective recognition of the right to collective bargaining;
Principle 4: the elimination of all forms of forced and compulsory labour;
Principle 5: the effective abolition of child labour; andPrinciple 6: the elimination of discrimination in respect of employment
and occupation.
(Environment)
Principle 7: Businesses should support a precautionary approach toenvironmental challenges;
Principle 8: undertake initiatives to promote greater environmental
responsibility; andPrinciple 9: encourage the development and diffusion of environmentallyfriendly technologies.
(Anti-Corruption)
Principle 10: Businesses should work against all forms of corruption,
including extortion and bribery.

CSR Promotion Framework
In tandem with the creation of the CSR Charter, Millea
Group has also set up a “CSR Board” that serves as themain entity promoting CSR related initiatives within groupmember companies. The CSR Board is headed by the
President of Millea Holding and made up of chief executives
from each group company. It fulfills the function ofpromoting CSR initiatives across the group as a whole.
Following the basic policies and plans set out by the CSR
Board, group companies oversee promotion of CSR among
their own subsidiary companies while constructing theirown tailored frameworks.

■ Millea CSR Promotion Framework

Tokio Marine &NichidoMillea Holdings

Board ofDirectors

CSR Committee

CSR Board
CSR Section

Management
Meeting
Tokio Marine & Nichido Life

Corporate Planning
Department

Establishment of a CSR Section & CSR
Committee (within Tokio Marine & Nichido)

Tokio Marine &Nichido Financial Life

Within Tokio Marine & Nichido, the recent merger was taken
as an opportunity to establish a CSR Section within the
Corporate Planning Department, to be dedicated tostrengthening promotion of CSR. This CSR Section took
over the role of the former Corporate Philanthropy &Environmental Preservation Section within the Corporate
Administration Department of Tokio Marine which was
responsible for promoting the environmental andphilanthropic initiatives of that company. In addition, in
November 2004 we established a “CSR Committee” incharge of sharing information among relevant departments
and strengthening the effectiveness and promotion of
initiatives.

Millea Asia

Millea Real Estate Risk
Management

Tokio Marine &Nichido Career Service

The Tokio Marine & Nichido Corporate Value Index - CSR Indexing
Within Tokio Marine & Nichido, corporate value is defined as
the total value generated for all of our stakeholders. Tokio
Marine developed a “Corporate Value Index” in 2003 to rate
itself based on the view that it is important to review theeffectiveness of company policies on a yearly basis toquantitatively measure whether they are leading to concrete
improvements in value.
This self evaluation is carried out for the five stakeholder
groups of customers, shareholders, agents, employees, andsociety, over nine designated areas to be evaluated, adding
up to a final score given out of 1,000 points. While
ascertaining the satisfaction levels of important CSR
stakeholders such as customers, agents and employees, theCSR Index has also newly added themes such as promotionof women and the disabled, compliance, greenhouse gas
emissions, contributions to regional communities, andparticipation in volunteer work. With this index, we aim tomeasure and verify the level of progress in implementing ourcorporate philosophy and CSR actions, and to tie into overallbusiness strategy evaluation and planning.

Area of Evaluation

Main Index

Customer Relationship

Number of individual customers, proportion of small and medium
sized enterprise transactions, proportion of large company
transactions, feedback from (corporate) customer questionnaires, etc.

Agent RelationshipThe proportion of insurance premiums obtained fromleading agencies, feedback from customer
questionnaires (about our agents), etc.

Leadership ofManagement

Surveys results on our external corporate image,
feedback from employee questionnaires, etc.

Organization and Human
Resources System

Employment rates of disabled, number of female staff(above a certain rank), feedback from employeequestionnaires, etc.

Corporate Culture

Greenhouse gas emissions, number of cases of employees involved in making
contributions to local communities, number of employees taking special
volunteer-work leave, survey results regarding our external corporate image, etc.

Strength of Employee
Skills and Business
Processes

Compliance, surveys regarding our external corporate image,
feedback from customer/agent questionnaires (on our employees,
services, etc), feedback from employee questionnaires, etc.

Product Strength

Survey results regarding our external corporate
image,feedback from agent/employee questionnaires, etc.

Brand Strength

Survey results regarding our external corporate image

Profitability and Soundness

Financial rating, ROE, etc.

6Corporate Governance
We have a sound and highly transparent corporate governance framework which enables us toeffectively control each of our group companies and to conduct appropriate risk management.

Current State ofCorporate GovernanceMillea Holdings is committed to thecontinuous enhancement of corporate
value by fulfilling its responsibilities toshareholders,customers,society,
employees and other stakeholders, in line
withMilleaGroup’s
Corporate
Philosophy. For this purpose, Millea
Holdings maintain a sound andtransparent
corporate
governancesystem and, as a holding company, aims
to exercise appropriate control over its
group companies.
Board of Directors
The Board of Directors is responsiblefor deciding important matters relating
to the execution of Millea Holdings’
business, supervising the performanceof individual directors, and establishingan effective internal control system. In
addition, it is also responsible fordetermining medium to long-termbusiness strategies and various basic
business policies for Millea Group. The
number of directors shall generally beapproximately ten members, of whom,
as a general rule, at least three shall beoutside directors.

Corporate Auditors and the Board of
Corporate Auditors
Corporate auditors shall audit theperformance of directors in accordancewith the regulations of the Board of
Corporate Auditors as well as the audit
standards, audit policy and audit plan
determined by the Board of Corporate
Auditors. The number of corporate
auditors shall generally be around five.
As a general rule, a majority of thecorporate auditors shall be external
corporate auditors. Furthermore, as a
general rule, at least one corporate
auditor shall be qualified as an “Audit
Committee Financial Expert” within themeaning of the rules of the United States
Securities and Exchange Commission.
Nomination Committee andCompensation Committee
The Nomination Committee shalldeliberate on the appointment anddischarge as well as the appointment
criteria for directors and corporate
auditors of the subsidiaries of Millea
Holdings, and report to its Board of
Directors. The Compensation Committee
shall deliberate on the evaluation of theperformance of directors of the principal■ Framework of Corporate Governance Within Millea Holdings
Millea Holdings

General Meeting of Shareholders
Appoints/
Discharges

Independent Auditors

LinkedAppoints/
Discharges

Corporate Auditors(Board of Corporate Auditors)

Appoints/
Discharges

ReportBoard of Directors
ReportInternal Audit
Department

Internal Audit

Planning, Management Department
Monitoring

Risk Management
Committee
・Corporate Planning Department
・Financial Planning Department
・Corporate Accounting Department
・Business Management Department
・Personnel Planning Department
・Corporate Legal Department

Business Management/Monitoring

Non-Life Insurance
Tokio Marine & Nichido Fire
Insurance

7

Life Insurance
Tokio Marine &Nichido Life
Tokio Marine &Nichido Financial Life

Insurance Businessin Asia
Millea Asia

Compensation Scheme for
Directors and Corporate
Auditors of Millea Group
Compensation for full-time directors ofMillea Holdings and its main subsidiaries
consists of three elements: fixedcompensation; bonuses related to thebusiness performance of Millea Holdings
and the performance of individuals; andstock options. Compensation forcorporate auditors and part-time
directors consists of two elements: fixedcompensation and stock options.

Governance of Subsidiaries
Governance System
Millea Holdings shall exercise its
shareholder rights over its subsidiaries
in an appropriate manner. In addition,
Millea Holdings shall enter intobusiness management agreementswith each subsidiary and exercise
effective control over the subsidiaries,
setting out the basic policies for Millea
Group and pre-approving matters suchas corporate strategies and plans.

Audit & Compliance
Committee

Management
Meeting

Audit

Compensation Committee

Supervision

Audit
Linked・AuditDepartment

Nomination Committee

Audit

subsidiaries of Millea Holdings and the
director’s compensation system, andreport to the Board of Directors. The
Nomination Committee and theCompensation
Committee
shall
generally each consist of approximately
five members. As a general rule, amajority of the members of eachcommittee shall be selected fromoutside the company, and the chairmanof each committee shall be one of theoutside members.

Other Businesses
Millea Real Estate
Risk Management
Tokio Marine &Nichido Career Services

Evaluation of the Business Results of
the Subsidiaries
Millea Holdings shall evaluate thebusiness results of each subsidiary ofMillea Group on an annual basis,comparing
actualresults
withpreviously determined indices. The
results of such evaluations shall beconsidered in the determination of thecompensation for the directors of eachsubsidiary.

Risk Management Framework■ Risk Management Framework

Board of Corporate
Auditors

Management Meeting
Risk Management CommitteeCore Risks

Non-core Risks

Other Risk

Reputation Risk

Legal Risk

Information Leak Risk

System Risk

Officework Risk

Liquidity Risk

Real Estate Investment Risk

Credit Risk

Within Millea Group, internal audits are
executed based on the belief that “inorder to play an effective role inachieving our management targets,internal audits covering the full scope ofoperations performed in our businessshould not simply uncover and highlightissues found within internal officeprocesses, but also include evaluations
and highlight issues regarding ourinternal management framework, andpropose methods of improvement.”
Within Millea Holdings and its insurance
subsidiaries, each company has its own
specialized internal audit section, that
performs internal audits accounting fortypes of risk and risk levels within the“Risk Management Framework” and a“Compliance Promotion Framework”,
which make up the key pillars of risk
management. For other subsidiarles
which have no specialized internal audit
department, Millea Holdings’ internal
audit section directly carries out audits,and performs monitoring of the internal
audit management framework. The
results of these audits are reported tothe internal audit department of Millea
Holdings, as well as the Board of
Directors of each member company of
the group. Based on the audit findings,
a report is submitted to the Board of

Corporate
Auditors

Board of Directors

Market Risk

Internal Audit Framework

Millea Holdings

Insurance Underwriting Risk

Millea Holdings tracks the state of risk
for the entire group, and assumes therole of overseeing group-wide risk
management.
In respect of insurance underwriting
risk and investment risk (market risk,
credit risk and real estate investmentrisk), Millea Holdings sees these ascore risks related to its source of
earnings that it must control, andmanages such risks proactively andcomprehensively. Furthermore, inrespect of office work risk, system risk
and other such risks accompanying
business activities, actions are taken to
identify these risks and to work toprevent or mitigate them throughappropriate risk management, toensure stable business management.

・Proposes Policies & Standards
・Provides Guidance, Direction,
Management & Monitoring for

Report to

Subsidiaries
Perform Audits on their own Subsidiaries

Directors of Millea Holdings in the eventthat serious issues are uncovered.
Consistent Internal Auditing
Framework as a GroupA set of unified “Internal Audit
Policies” and “Internal Audit Rules”
are applied to all internal audits
performed by specialized internal
audit
sections
withingroup
companies, in order to maintainconsistency among all internal audits.
In addition, Millea Holdings defines
key points and issues to be taken up
each year, and works towards
construction of a consistent internal

auditing framework throughout thegroup through such measures as preapproving
subsidiary’s
annualinternal audit plans.

Joint Audit
In order to raise the effectiveness ofinternal audits, there are also cases
where the internal audit departments ofeach subsidiary work together.

8

Our Contributions in the Wake of the Great Indian Ocean Tsunami
Tokio Marine & Nichido practices provision of “safety and security” set out in its corporate philosophy
from an environmental protection perspective with its mangrove reforestation activities. Recent events
have shown that these mangroves also provide “safety and security” from a disaster prevention.

The Role that Mangroves PlayThe Ranong Mangrove Reforestation Zone. Although the tsunami swept away small
boat piers and huts, land behind the mangroves was protected.

Regions lacking vegetation like mangroves were struck directly by the tsunami, andsuffered enormous damage (a photo showing this kind of damage in Sri Lanka)

Similarly, a ship struck directly by the tsunami in an coastal area lacking vegetation (inSri Lanka)

9

Tokio Marine & Nichido kicked off the Mangrove
Reforestation Project in April 1999, and by 2003 had reached
its target of reforesting a 3,000 hectare area in the five
Southeast Asian countries of Indonesia, Thailand,
Philippines, Myanmar and Vietnam. This project began withthe aim of offsetting the carbon dioxide emissions caused by
the business activities of Tokio Marine & Nichido byreplanting an area of mangroves sufficient to absorb thesame amount of carbon dioxide, neutralizing the global
warming burden of our company. At present, having
succeeded in reaching our 3,000 hectare first phasereforestation target, we are now in the second project phasestarting in April 2004 that plans to reforest a further 2,000
hectares of mangroves over a five-year period.
These mangrove forests played a major role in preventing
damage resulting from the Great Indian Ocean Tsunami thatwas caused by the Sumatra-Andaman Earthquake. As was
widely shown in the media, the tsunami caused extensive
damage to buildings in regions along Indian Ocean
coastlines. However, in regions where mangroves were
present, those mangroves slowed the momentum of thetsunami, minimizing the damage caused.
Mangroves flourish in coastal areas, and are firmly attachedto the ground with uniquely shaped roots. The upper part ofthese plants is soft and flexible, and can grow to a height ofaround 10 to 20 meters. These mangrove characteristics
acted as a natural wavebreak against the Indian Ocean
Tsunami waves often seen as being around 10 meters high,proving effective in absorbing the enormous energy of thetsunami. Not only were the mangroves reforested by Tokio
Marine & Nichido undamaged by the tsunami, but also thedamage suffered by people living behind them was held to aminimum. While it has previously been well known thatmangroves play a role in preventing coastal erosion andstorm damage by protecting coastal and surrounding areas,
there had been no such previous confirmation of theireffectiveness in mitigating such large coastal disasters as
tsunamis.
Over the last 30 to 40 years, mangrove deforestation has
advanced with up to 80% lost in some countries within theSoutheast Asian region due to their conversion into prawn
farms, construction of factories and roads, and use as anenergy source, Here at Tokio Marine & Nichido, we willcontinue to expand these forests of the sea that provide
safety and security to the Earth and to people with a view notjust to ecosystem protection and preventing global warming,but also to disaster prevention.

Expert Comments on the Buffer Effect Mangroves Had on the Tsunami【Professor Fumihiko Imamura, Director of the Disaster Control Research Institute of Graduate School of Engineering, Tohoku University】

During the Great Indian Ocean Tsunami,
in regions without mangroves, there
were many cases of people being injured
by floating debris, and many cases ofchildren lacking in strength who did notsurvive. Mangroves allow a certain
degree of water to pass through, butlarge objects tend to get caught up inthem, serving as a means of injury
prevention from floating debris.
Furthermore, it has been verified throughscientific tests that by reducing the
speed and height of waves, mangroves
had an effect of dissipating the energy of
the tsunami. They have been shown tobe effective in cases of evacuations, inthat it can slow the speed at which atsunami strikes.
The onward advance of humaninduced deforestation in recent years

has weakened the disaster preparednessof many of these regions. Had themangroves not been deforested in thefirst place, it is likely that this would nothave become such an enormous
disaster. We have broken down the very
barriers that protect us.
There is the suggestion that instead,breakwaters could be used, but taking
the example of concrete breakwaters,
this seems like rather strong medicine.
While these provide 100% protection
when tsunamis striking them are lessthan the height of the breakwater, when
the wave height exceeds the breakwater,
the power of the wave is undiminishedand damage become enormous.
In contrast, mangroves are like traditional
Chinese medicine in that while they do
not completely block inundation, they

have an overall effect of broadly blocking
debris in a manner that is gentle on theenvironment. Rather than using suchbreakwaters, it is important to consider
the disaster prevention benefits ofplanting vegetation suitable for a given
region, for example planting mangrovesin the Southeast Asian region or planting
pinewood forests and such in Japan.

Professor Fumihiko Imamura

Donations Made to Tsunami Disaster and Mangrove Reforestation Sites
Tokio Marine & Nichido and Millea
Group Companies along with our
employees and agents collected a totalof 63.6 million yen in donations for
Sumatra-Andaman Earthquake andtsunami relief, which was passed on to
victims and groups involved inproviding relief in the disaster zones. Of
this, 6 million yen was donated to theRanong Province, Thailand in which our
Mangrove Reforestation Project isbeing developed. Along with words ofappreciation, it was also explained byRanong provincial governor Winai
Mongkonthan in the presentation
ceremony that the donations would be
put to use in newly building 800 boats
for fishermen who had their boats
swept away by the tsunami.
In addition, along with the 14 million
yen for donations to NGOs involved indisaster relief work fundraised by Millea
Asia and its staff, which has a growing
practice in the region, Tokio Marine &Nichido’s American and European
entities also collected donations andpassed them on to disaster zone
governments and UNICEF.

Ranong provincial governor Winai Mongkonthan (onthe right) accepting our donations.

An NGO we provided donations to issuing measles
immunizations on the Indonesian Island of Sumatra(copyright: AMDA).

Donation Information
Donation Received By

Donation

Ranong Province, Thailand

6 Million Yen

Disaster relief to Ranong Province, Thailand

Details

OISCA International(Jakarta Office)6 Million Yen

Disaster relief to orphans in Sumatra Island due to tunami disaster

NGOs in Millea Asia
Countries

36 Million Yen

Disaster relief in Indonesia, India, Thailand and Malaysia

Japanese Red Cross

5.6 Million Yen

Disaster relief“Emergency Relief NGOs
(AMDA, Peace Winds
Japan)”

10 Million Yen

・Emergency medical relief in Indonesia, Sri Lanka and India
・Help in reconstruction and rehousing in Indonesia

Total

63.6 Million Yen(Donation Base): Millea Group including Tokio Marine & Nichido:50.6 million yen, Staff & Agents: 1.3 million yen

10Products and Services

Providing Security and Safety for the Environment and Society
Tokio Marine & Nichido is offering security and safety for the environment and society
through insurance and financial products and services that enhance environmental quality
and social welfare.

Initiatives Relating to
Our Core BusinessWind Condition Risk
Hedging Programme
In 2001, Tokio Marine developed its“Wind Condition Risk Hedging
Programme” with the aim of helping tostabilize the business operations ofwind power generation enterprises,
and facilitating their obtaining offinance. This product compensates fora loss in revenue taking place due towind resource falling below thatpredicted, through the use of unusual
weather event insurance and weather
derivatives.

Eco-Car Discounts for
Auto Insurance
We offer a 1.5% discount on auto
insurance for low pollution, low fuelconsumption, low emission vehicles
with the aim of contributing to the
spread of environmentally consideratecars. When this system was first
introduced, there were hardly any carsthat met the preset criteria. However,during FY 2003, this figure had grown
to 3,551,000 vehicles, representing a
25% overall share being entitled to thediscount.

11

Condition ofApplication

Corresponding Vehicles

Low Pollution
VehiclesHybrid vehicles, methanol fueledvehicles, compressed naturalgas (CNG) vehicles. Vehicles
entitled to relief from vehiele
Acquisition Tax as a result of thekind of fuel they use.

High Mileage
Vehicles

Vehiclesmeetingtargetmileage standards, and thatare entitled to relief fromvehiele Acquisition Tax.

Low Emission
Vehicles

Vehicles subject to the exhaus
regulation anytime since 2001,
or that are certitled as being
low emission vehicles.

P&I (Protection and Indemnity)
Insurance Covering Loss from
Groundings & Oil Spills
At Tokio Marine & Nichido, we haveoffered insurance covering liability (P&I
Insurance) arising from the costs ofclearing ships that are written off after
running aground, and liability incurredfrom oil spill accidents. Recently, ships
running aground and causing oil
pollution through spillages have been amajor cause of concern in Japanesesociety, which resulted in an
amendment to the Law on Liability for
Oil Pollution Damage setting out that
as of March 2005, all ships docking inJapanese ports are now required tohave P&I insurance. At Tokio Marine &Nichido, the proactive role we playedin giving advice to the Ministry of Land,
Infrastructure and Transport onpracticalities relating to insurance has
been recognized, and the P&I
Insurance that we issue has beenrecognized by the Ministry of Land,
Infrastructure and Transport as analternative to the Guarantee Contract
Security that it issues itself.

Investments in Environment
Related Ventures
At Tokio Marine & Nichido, we havebeen investing in environmental
venture businesses since April 2000,
with the aim of supporting andfostering their growth. Up until now,
we have invested 800 million yen into
recycling, semiconductor related,energy conservation, and biomass
related businesses, and have seen
concrete successes achieved such as
some of the companies we invested inregistering as listed companies. During
the 2004 fiscal year, we madeinvestments in three firms, one thatbuilds and sells small scale wind
power generators, another that is
involved in the development of next
generation batteries, and one morethat is involved in energy conservation.
As well as continuing to proactively
make such investments into the future,
we are also looking into purchasing of
the products and services that thesebusinesses provide, with a view tohelping these businesses to grow andto further environmental protection.

Environmental
Consideration Level Check
During Business Financing
Ever since 1999, Tokio Marine has
included “Environmental Consideration/ Solutions” into the negative checkpoints used during credit checking, inorder to promote environmental
consideration through its financing.
Specifically, in cases where we find in
our investigation that an applicant has
been punished or fined for violations ofany environmental legislation aimed atbusiness, this enters into the decisionof whether to extend credit or not.
During FY 2004, we did not encounterany businesses with these issues.

Cooperation in Campaigns
to “Use Recycled Parts”
and “Repaired Parts”
The General Insurance Association ofJapan is currently running a campaign
to promote extended use of parts froma waste reduction perspective, throughthe use of recycled exchange parts inthe case of accidents, and the use of
repaired parts. Within Tokio Marine &Nichido, we deal with vast numbers ofaround 900,000 claims for damage toinsured automobiles, and around 1
million claims for damage to vehicles
and objects belonging to third parties.
As a result, we give explanations to ourcustomers from a social responsibility
perspective about recycling in cases
where vehicles suffer light damage andwork with repair businesses to promote
the use of recycled and repaired parts.
In FY 2004, we ran a campaign between
June and July during which we issued
posters, and held study meetings
related to the use of recycled andrepaired parts.

Environmental Consulting
We advise many multinational
companies on various environmental
issues likely to affect their operations
based on our extensive research ofoverseas environmental regulations,and environmental policy trends.

Road Safety Consulting
Using a data safety recorder thatanalyzes driving behavior to ascertain
the causes of road accidents, we help
companies to promote safer driving by
their employees.

Compliance ConsultingWe
providecompliancerisk
assessment services and training for
managers and employees responsible
for promotion of compliance tosupport companies in setting up theirowncompliancemanagement
systems.

Providing Comprehensive
Restoration Services for
Disaster Damage

CSR Consulting
The diverse range of themes coveredby CSR often inhibits companies fromsetting priorities and winning thecooperation of their employees. This
service uses various analysis tools toprovide customized solutions to theseissues, and helps companies toestablish effective and efficient CSR
management systems.
Natural Disaster Loss Consulting
We offer efficient and effective
solutions to mitigate natural disasterloss based on quantitative data
created by our own original analysis
models which can estimate earthquake
and typhoon risk and project damage
across broad areas.

Risk Consulting Services
The risks related to business are becoming
more and more complicated anddiversified. Based on its technology andexpertise, Tokio Marine & Nichido Risk
Consulting, a subsidiary of Tokio Marine& Nichido, providies comprehensive risk
consulting services to private and public
institutions facing various risks.
Crisis Management Consulting
We support framework solutions that
range from scoping and evaluation of all
domestic and overseas related risks
affecting business, to the creation ofmanagement frameworks, and on further
to emergency response solutions.

Since 2004, Tokio Marine & Nichido
Risk Consulting has offered a BusinessContinuity Plan (BCP) creation support
service for operational facilities andequipment, in alliance with BELFORInternational GmbH, the biggest
disaster damage restoration company
in the world. This is in addition to aservice for supporting the creation of
BCPs focusing more on overallbusiness recovery. Furthermore, thisalliance has created another new
service for post-disaster damage
recovery of operational facilities andequipment, enabling us to provide
comprehensive services against
disaster loss.

Example of water-blasting recovery of damaged
equipment

Example of earthquake damage projection

Example of typhoon damage projection

12Respect for Human Rights and Dignity

Creating a Frank and Open Business Culture
Millea Group respects human rights and pays consideration to the health of each and every one of its
employees. Moreover, it is also undertaking to create workplaces that are comfortable to work in,through providing various opportunities for lifestyle and career development.

Protection of Privacy& Human Rights
Standards of Human
Rights Awareness
Millea Group has set down its own“Standards of Human Rights
Awareness” aimed to promote humanrights awareness among staff
throughout
group
companies.
Furthermore, we gather reports on
initiatives called for by these standards
and issue guidance once a year or as
the need arises.

1983. The training covers such issues
as minority discrimination, sexual
harassment, normalization for disabled
employees, challenges faced by Korean
residents of Japan, and invasion ofprivacy. Furthermore, each December
the company has a “Human Rights
Week” whereby all employees of theTokio Marine & Nichido Group andtheir families are invited to submit
human rights related catch phrases,
with the aim of raising the level ofhuman rights awareness within thecompany. During the 2004 fiscal
year, 23 entries were selected out ofsubmissions made from each of ourdepartments and offices.

Millea Group “Standards of
Human Rights Awareness”※ Note that only Item Headers have been listed below

Aim
Definitions
Role of Millea Holdings
Role of Subsidiary Companies
Standards of Human Rights
Awareness
1. Establishment and Promotion of
Basic Policy
2. Creation of an Organizational
Framework for Promoting Human
Rights Awareness3. Promotion of Human Rights
Awareness Training
4. Enforcement of NonDiscriminatory Hiring Practices
5. Promotion of Normalization
6. Prevention of Sexual Harassment

Human Rights Awareness
Related Initiatives
Tokio Marine & Nichido has established a“Human Rights Awareness Training
Committee” with the company president
as chairperson, and also holds Human
Rights Awareness Training for allcompany employees with the aim of“building a comfortable workplace foreach and every employee” and“instilling of a human rights affirming
culture” within the company. This
training started in 1980 addressing
issues relating to minority discrimination,and has been held annually since

13

Staff Undergoing Human Rights Training

Creation of a Privacy Policy
Millea Group and its subsidiary, Tokio
Marine & Nichido have set out a “Privacy
Policy” in order to ensure proper
handling and safe management of ourcustomer personal information. Tokio
Marine & Nichido has had rules in place
for the management of customer
information since 1994 and worked hardto ensure proper management of
personal information. However, in theface of recent increased concern andawareness of the importance ofprotecting personal information in the ITage, we have also engaged in a review
and revision of these policies. On theorganizational side, our information
management framework was further
strengthened in October 2004 when the“Information Security Department” wasestablished as a single unified
department dedicated to information
security, and an “Information Security
Committee” was set up as amanagement committee subcommittee
to resolve inter-departmental information
security issues.

※Please refer to the links below for further informationon our Privacy Policy(Millea Group)
http://www.millea.co.jp/en/info/privacy.html(Tokio Marine & Nichido)
http://www.tokiomarine-nichido.co.jp/privacy.html(In Japanese)

Working Together With
Disabled Employees
Tokio Marine & Nichido has continued
exceeding the 1.80% Japanese legal
threshold for employment of disabled
people since March 2001, with an
employment rate of 1.91% (as ofMarch 31st, 2005). Since setting up the“In-House Promotion of Normalization
Center” in 1991, we have held a dialog
semi-annually with our disabled
employees in order to assist them in
adapting to our workplace and working
conditions. In addition to thisfeedback, we have also continued
moving forward with making thebuildings we occupy barrier free,through such steps as installation oframps, textured floor tiles, anddisabled-friendly toilets. Furthermore,wearepresently
assessing
employment rates of disabled people
within other Millea Group companies,
and working to increase rates of
employment where shortfalls arefound.

Periodic Dialogue with Disabled Employees

Equal Opportunity /Career Development
Increased Opportunities
for Female Employees
Tokio Marine & Nichido is engaged an“Increased Opportunities for Female
Employees” campaign, with thephilosophy that we need to create anenvironment that allows our ambitious
and most competent employees torealise their full potential, irrespective ofgender. In addition, we have reviewed
all related company systems to support
femalestaff
throughcareerdevelopment and various training
opportunities. We have also furthereddiscussion in each workplace of theways in which we can give people roles
suited to their wishes and abilities, andthis is now becoming reflected in thedivision of roles within the company.

Job Request System
We run a “Job Request System” as oneof our key human resource systems tomaintain and expand the dynamism of
our employees. Under this system
employees have the opportunity tochoose their own job placement, andthe system aims to effect job placement
preferences insofar as possible from theviewpoint of “optimization of humanresource placement”, and “building up
staff autonomy based on choice andpersonal responsibility.” As of the 2004
fiscal year, we have also newly added
U-Turn and I-Turn placement systems
as part of our system of increased
opportunities for female employees.

subject to transfers, and allows themto try working in a new area for a fixed
period to make the best of their own
abilities. Through these U-TurnPlacements, employees from more
remote regions have the opportunity to
be transferred to more central regions,and provides the opportunity toattempt new job tasks going beyond
those available under the oldframework.

Support For Employee
Skill Development
Range of Training Systems
At Tokio Marine & Nichido, we offer
various kinds of training such as RankSpecific Training, Optional Training, andSpecialization Training, in order tosupport our employees in their present
work tasks, and to realize their career
visions. Furthermore, we have also set
up fee support for obtaining external
qualifications through our “External
Qualification Acquisition Incentive
System”, and taking correspondence
courses through our “External
Correspondence Course Support
System” in order to support voluntary
learning by employees.
In addition, we have also set up the“Tokio Marine & Nichido University”
that gathers together all forms of skill
development related information onto
our intranet portal site, allowing our
employees to obtain any information
they need, when they need it.

Fiscal Year

Applicants

Successful

2003

119

20

2004

136

32

2005

189

56

Training Course
New Appointee Manager Training
New Leader Training
Employee Rank Based Training (Rank Level 4)

Employee Rank Based Training (Rank Level 2)
Basic Skills Training
Nationwide New Hiree Training
Regional New Hiree Training■Business School (MBA Obtaining),
Law School Courses■ Representative Training Courses(To Non English Speaking Countries)■Internationalization Capability
Development Course (1-4 weeks)

Participants

Hours Per Person

46
134
368
420
91
148
148
320

18 hours
29 hours
14 hours
15.5 hours
7 hours
28 hours
224 hours
81 hours

Number of Participants in Optional Training
Training Course

Fixed Duration Placement Transfers(U-Turn Placements)
One element of the Job Request
system is the new addition of “U-TurnPlacements”. This system takes
employees from regions not previously

Study Abroad System
We proactively send young employees
abroad for study with the aim ofcultivating staff that have a broad
perspective, are internationallyminded, and that possess a highdegree of knowledge, as well as tofoster international links. Specifically,
we dispatch around 30 of our staff
overseas each fiscal year on short trips
abroad to study, focusing on thefollowing three courses:

Number of Participants in Rank Specific Training

Employee Rank Based Training (Rank Level 3)

Number of Job Request System Participants

Skill Development
Target Setting / Tracking
We have competency / career development
interviews between superiors andsubordinates in order to help our
employees move forward with theirskill development in a planned manner.
In these interviews, the employee sets
out two kinds of skill development
targets, and attaches a priority tothose targets for goal completion, andthen seeks feedback from theirsuperior on those goals, as well as
their strengths and weaknesses.

Coaching Training
Step-Up Training (leardership development)
Seven Habits Training
Logical Thinking Basic Training
Interpersonal Relationship Improvement Training
Business Communication Reinforcement Training

Participants

Hours Per Person

226
91
317
94
161
36

15 hours
15 hours
15 hours
14.5 hours
15 hours
15 hours

14

Respect for Human Rights and Dignity

Creating a Frank and Open Business Culture (Continued)

Supporting Work andHome Coexistence

My Select

This enables adjustment of working times without any change inprescribed working hours.

Half Day Leave

12 Days of half day vacations (24 allotments) are available eachfiscal year.

Overtime Exemption Measures

People with children less than three years old can claim
exemption from doing overtime.

We have taken a number of measures
as policies that support “Work andHome Coexistence” seeking to expand
the options available to our employees
throughout various life stages.
Furthermore, we have also created an
action plan in accordance with the Law
for the Promotion of Support Policies
for Future Generations and are
expanding our child care support
system.

Maternity Leave

Maternity Leave is available for 8 weeks following childbirth(more than is legally required).

Childcare Leave System

This is generally for the period until the child s first birthday, although it
can be extended until the child is one year and six months, or until thefirst April following the child s first birthday. (more than is legally required).

Early End of Working Day

Female staff with children of pre school age are permitted toleave work 30 minutes early.

Nursing Leave

Staff are permitted to freely take up to five days leave for nursing preschool children eachfiscal year. Available in half day units, this enables leave to be taken up to ten times.

Support of Use of Babysitters

The company provides financial support to pay part of the cost ofbabysitters.

Number of Staff Taking Childcare / Caregiving Leave

Family Caregiving Leave System

It is possible to obtain Caregiving Leave for up to a year at a time
whenever one member of a family requires round the clock nursing.

Response to
Depopulation / Aging Society

Fiscal YearChildcare Leave Caregiving Leave

2002

58

0

2003

69

2

2004

83

3

Creating Comfortable
Workplaces
Employee Healthcare andEmotional Support
Tokio Marine & Nichido provides both
healthcare and emotional support for
its employees through medical
checkups and counseling by clinicalpsychologists made available throughthe Healthcare Center in our Head
Office, and the Health Consultation
Offices we have in 46 locations
nationwide. In the first round of
medical examinations following thecompany merger, the number of staff
examined increased by 1.5 times,
accompanied by a participation rate ofalmost 100%, with the exception of thespecial case of just one person.
On emotional care, in 2004 we newly
assigned clinical psychologists to six
business support departments, on topof having maintained a network of 55
counseling centers nationwide for
employees and their families since2003. In the wake of the Chuetsu

15

Content of Our Support Policies

Earthquake in Niigata Prefecture, weassigned
additional
clinical
psychologists to look after theemotional wellbeing of our employees.
Moreover, we have also established a
Mental Health Project Team within the
Human Resource Department and are
consulting on new measures toimprove current service.

Initiatives to Cut Back
Working Hours
Tokio Marine & Nichido has establishedan Overtime Strategy Management
Committee headed by the Human
Resource Director, and Overtime Labor
Management Committees for eachregion. These committees haveconducted an overall review and looked
into improving efficiency in order toraise worker satisfaction throughreducing overtime hours. Furthermore,
we have also commenced a flexible
working hours system covering severalof our branches and are implementing a
discretionary work system* and breaksystem aimed at helping employees toimprove their own efficiency throughgiving them the independence todecide on their own approach to workand time allocations.
※Discretionary Work System

This is a system whereby working hours and how tomove forward with work can be decided flexibly by
the worker. Salary is then paid in line with fixedworking hours under labor agreements.

Activities of Labor Union
Within Millea Group various labor
unions exist, main one being the Tokio
Marine & Nichido Labor Union. The
Tokio Marine & Nichido Labor Union
had 13,569 members as of March 31st
2005, making up 83% of all company
employees (16,280 in total).
The Tokio Marine & Nichido Labor
Union concludes collective labor
agreements based on a high level ofmutual trust between labor andmanagement. Furthermore, labormanagement meetings are held
between top management andemployee representatives over 10times each year. The Tokio Marine &Nichido Labor Union also holds
ongoing
negotiations
andconsultations
throughdaily
negotiations between permanent
representatives on matters from wages
and human resource systems to
management policies so as to build up
a frank and open business culture.

Protection of the Global Environment

Initiatives Dealing With Global Environmental Issues
Acknowledging that the protection of the environment is an important responsibility for all
corporate entities, Millea Group is expanding its activities with respect for harmonization withand improvement of the global environment.

Environmental Philosophy / Policy at Tokio Marine & Nichido■ Environmental Philosophy ■Adopting the preservation of the global environment as one of its key management policies, Tokio Marine &Nichido recognizes that it is an important responsibility of all humans and companies in the present world topreserve the environment. Tokio Marine & Nichido commits to taking up the task of bringing about a society
where sustainable development is maintained through the efforts of all employees throughout the entire range ofour business activities, in order to improve and keep harmony with the environment.

■ Environmental Policies ■Tokio Marine & Nichido has established the following policies and will make every effort to realize them in all areas of its activities.
1. Preservation of the Global Environment Through the Insurance BusinessWe will work on the preservation of the global environment through our activities in the business fields of
insurance products, claims services, financial services, etc.
2. Effective Use of Resources & Energy
We will work on conserving resources and energy, recycling resources and green purchasing, in full recognition of theburden on the environment caused by the consumption of resources and energy, and the discharge of waste.
3. Compliance with Environmental Laws
We will comply with relevant environmental laws and regulations and with other requirements to which Tokio Marine & Nichido subscribes.
4. Continual Improvement of the Environment and Prevention of Pollution
We will continually work on the improvement of the environment and the prevention of pollution by setting
objectives and targets and reviewing them periodically for better performance.
5. Promotion of Environmental Awareness-Raising and Philanthropic Activities
We will work, on the preservation of the environment through the dissemination of relevant information, theprovision of consulting services, promotion of environmental education both in and outside the company, andengage in furtherance of community and philanthropic activities as a good corporate citizen.
The above policies are to be well known and understood by all employees and released to the public.
October 1st, 2004

Reduction ofEnvironmental Burden
Reduction of Paper Use
Copy Paper
At Tokio Marine & Nichido, we
consume vast amounts of paper
resources. In order to reduce theburden that this places on theenvironment, we are moving forwardwith a drive to decrease the volume of
copy paper (paper used in printers andcopy machines) consumed across all
our nationwide offices through such
steps as reusing paper already printed
on one side and using double sided
printing. Also at a branch level, there

are various initiatives in place utilizing
ideas and ingenuity to work on
achieving reductions. For FY 2004 copy
paper consumption overshot our targetof 1,644 tonnes, with a total of 1,737
tonnes consumed. The fact that in theprevious financial year we switchedover from our previous record keeping
paper to ordinary copying paper isconsidered to have been a major factor
in this.
Pamphlets and Other Such Printed
Materials
Around the time of our merger in
October 2004, we did whatever
possible to reduce paper consumption
by abandoning printed pamphlets, andchanging over to digital media and thelike. Nonetheless, the conversion ofpamphlets and company materials
associated with the merger, as well as
the introduction of new privacy
legislation coming completely into force
in April 2005 meant that consumption of
printed materials (product pamphlets,
booklets, etc) reached 7,510 tonnes.
Computer Paper
With respect to computer paper (paper
used for statistical tables, management
materials, etc.), we have various
initiatives to cut back on paper use
such as providing partial statistical
table and management material data on
CD-ROMS, but nonetheless consumptionof such paper for FY 2004 reached2,090 tonnes.

16

Protection of the Global Environment

Initiatives Dealing With Global Environmental Issues (Continued)

Energy Efficiency

Recycling

Green Purchasing

Initiatives within the Main Building of
Tokio Marine & Nichido Headquarters

Recycling of Confidential Documents

At Tokio Marine & Nichido, we promote“Green Purchasing”, which extends
priority to the purchase of environmentallyfriendly goods and services with theaim of reducing our environmental
burden. As well as having almost
completely cut over to using 100%
recycled paper for copying paper,
Tokio Marine & Nichido also promotes“greening” through having put in placea system for making sure that when wepurchase fixtures and fittings, the“Green Purchasing Law List of Items” isused as a selection criteria base. In
2004, we approached a firm thatprovides around 35% of our online
office supply trading, and Tokio Marine
Nichido Corporation which provides
office products and services tocooperate in creating an eco friendly
catalogue for the new merged
company, which was distributed to all
our offices in October.

Based on the ISO14001 programme, an
initiative has been carried on since FY
2003 aiming to “cut back energy
consumption in the Main Building of theTokio Marine & Nichido Head Office for
FY 2004 to levels lower than FY 2001”.
This has been achieved by;●Switching off lights in common areas
such as elevator halls and the like atnight, during lunch and on holidays.
●Improved room temperature
management on floors we occupy.
●Powering off office equipment after
office hours.
● Partly shutting down fan coils andwater closet heaters during breaks.
●Renovation of all elevators (between
January 2004 and 2007).
As a result of these initiatives, the Main
Building of our Head Office was able tolimit power consumption to 96.95% of
FY2003 levels and 94.25% of FY 2001
levels.

Green Electricity
Certificate System
The Green Electricity Certificate
System is a system under whichbusinesses paying the extra costs ofelectricity generated from renewablesources are entitled to “Green
Electricity Certificates”, which aretreated as purchases of green energy.
For 15 years starting in April 2002, Tokio
Marine & Nichido has formed apurchasing contract with Japan Natural
Energy Company to purchase 1 million
kilowatt hours of electricity per year
generated by wind power, as acomponent of our measures for energy
efficiency and to reduce carbon dioxide
emissions. In FY 2004, this constituted
around 8% of the electricity consumptionof the Main Building of our Head Office,and contributed to reductions in CO2emissions.

17

During the course of operations at
Tokio Marine & Nichido, we handle
large volumes of customer information.
This means that there are also vast
amounts of paper that we cannot
recycle in a normal fashion, forprotection of privacy reasons. We
process such old documents byshredding them in industrial shredders
we have in six of our buildings in our
Head Office, Makuhari, Tama, Fukuoka,
Osaka and Sendai, in order to protect
confidential customer information while
promoting resource recycling at thesame time.
Recycling of Documents Disposed ofDuring the Merger
As one component of our merger
project, we have succeeded in having
all our nationwide offices achieve a
100% recycling rate for disposed
documentation. Given the differencesin process frameworks set up in
different regions, we created astandardized manual for checking
procedures and confirming operations,and based on this have been able to set
up a dual system for both information
management and recycle processing.
Recycling of Expendable Accessories for
Office Appliances
In 1996, Tokio Marine & Nichido
established an “Office Appliance
Recycling Center” and constructed anationwide recycling system for items
such as printer toner cassettes and ink
cartridges, putting to effective use
processed plastic that was disposed of.
For FY 2004, a total of 19,022 items
were recycled from within Tokio Marine& Nichido itself, and 21,755 items fromthe Tokio Marine & Nichido groupcompanies as a whole.

Environmental Burden Data
Energy Consumption■Electricity■Gas（1,000kWh）■Other Fuels（1,000m3）

100,000

FY2003（GJ）

FY2003

FY2004■Gasoline

FY200360,000FY2003

FY2004
4,670

40,0001,193

60,0006,000

47,23645,943

1,519

1,454

1,500

67,658（1,000L）

FY200457,274

83,87478,82280,0002,000

FY2004

4,000

3,554
3,002

1,000
40,00020,000

2,000

1,668

500

20,000261

11,164

1,294
0

NichidoTokio
Marine0Tokio Marine &NichidoSum

NichidoTokio
MarineTokio Marine &NichidoSum

0

NichidoTokio
MarineSum

0

Tokio Marine &NichidoNichidoTokio
MarineSum

Tokio Marine &Nichido(Calculation Base: All nationwide offices of Tokio Marine & Nichido for gasoline, in other cases taken from the main 86 office buildings of Tokio Marine & Nichido(containing approximately 60% of our employees)

Energy Based Carbon Dioxide Emissions（kg-CO2）

FY 2003
Tokio Marine■Total Amount of CO2 Emissions

FY 2004

NichidoSum of Both（t-CO2）60,000

Tokio Marine & Nichido

Electricity(Purchased Renewable Energy)
Gas
Other Fuels
Gasoline

25,574,614▲378,000
2,432,277
3,086,672
6,969,055

4,220,100
0532,377
89,6553,872,338

29,794,714▲378,000
2,964,654
3,176,327
10,841,392

31,704,328▲378,000
3,097,609
3,845,103
8,251,368

Total

37,684,617

8,714,470

46,399,087

46,520,407

40,000FY2003

FY2004

46,39946,520Sum

Tokio Marine &Nichido

37,68520,0008,714
0Nichido※Calculated based on the emission factor set out in the Ministry of the Environment s Environmental Performance Index Guideline for Business, 2002 Version※We have deducted the portion of purchased renewable energy from greenhouse gas emissions caused by electricity consumption.

Water Consumption

Paper Consumption■Water Consumption■Copy Paper（1,000m3）

600

FY2003

Tokio
MarineFY2004■Pamphlet Paper■Computer Paper

（t）

（t）

（t）

2,000

8,000

2,500

FY2003

FY20041,737

FY2003

FY2004
7,510

469
1,500

399

400

FY2003

FY2004
2,090

2,000

329

6,000

1,760
1,500

1,045
1,000

4,000

500

2,000

3,874
1,000

200
500

69
0

0

NichidoTokio
MarineSum

Tokio Marine &NichidoTokio
MarineTokio Marine &Nichido0

Tokio
MarineTokio Marine &Nichido0

Tokio
MarineTokio Marine &Nichido(Calculation Base: 86 Main Buildings of Tokio Marine & Nichido)※Calculated based on the assumption that company's
share of the total floor area of the buildings is proportional
to its share of the total water consumption of those.

(Calculation Base: All Branches of Tokio Marine & Nichido)※With respect to paper usage, data for 2003 only shows data for Tokio Marine because the statisticalscope for data gathering used by Tokio Marine differed to that of Nichido Fire.

Waste Generation

Group Company Energy Consumption

（t）

（t）

100

1,000
808.7

800

858.0

731.9

57.0

64.3

40

400
200
0

60

Industrial Waste

Energy Consumption

Electricity
Gas
Other Fuels

11,508,000 kWh
80,000 m3
5,918 GJ

FY2003(Calculation Base: Major Group Companies)※Taken from the 37 buildings managed
by Tokio Marine & Nichido Life, andthe 15 buildings managed by Tokio
Marine & Nichido Career Service.

20

Municipal Waste
FY2002

Industrial Waste

Municipal Waste

600
59.6

FY200480

FY20040(Calculation Base: The Tokio Marine & Nichido Head Office)18

Protection of the Global Environment

Initiatives Dealing With Global Environmental Issues (Continued)

Plan

Environmental Objectives and Targets

The Tokio Marine & Nichido Head Office was certified with the ISO 14001
International Standard for Environmental Management Systems in 1999. For the2004 fiscal year, we adopted 12 objectives and targets relating to environmental
aspects and proceeded with initiatives to achieve them. In the 2005 fiscal year, weplan to expand our objectives and targets related to more stringent legal complianceand the environmental aspect of our core business of insurance and financial
services in recognition of trends in recent years toward stricter environmental
legislation along with amendments to ISO 14001 standards, and will undertake
initiatives to achieve these objectives and targets.
Environmental Policies
GlobalEnvironmental
Protection Throughthe Insurance
Business

Environmental Objectives
Development of Eco
Friendly Insurance Products
Investment in Worthwhile
Environment Related
Ventures
Control Over Power Usage

Efficient Use of
Resources andEnergyCompliance withEnvironmental
Regulations
Continuous
Environmental
Improvement and
Pollution Prevention
Environmental
Awareness Raisingand Philanthropic
Activities

Environmental Targets
Holding consultations on how to incorporateneed for eco friendly insurance products
uncovered by research, into insurance.
Research into making over 10 investments
in environment related venture businesses
annually.
Promotion of our Power Use Control/Reduction
plan set down in 2002 (aiming to keep power
consumption below FY 2001 levels)

Reduction of Paper for
Pamphlet Usage

Aiming to cut paper consumption
volume by 10% on FY 2003 levels.

Cutover to On Demand
Printing (ODP)

Aiming to increase ODP use to 150% of
FY 2003 levels by FY 2005.

Reduction in Volume of
Copying Paper Use

Maintaining the same purchasing levelsof copy paper as in FY2003.

Installation of Double Sided
Printing Enabled Printers inall our offices.

Installing 227 double side printing
capable printers within our loss division.

Promotion of Green
Purchasing

Switching over to green purchasing for
more than five product items.

Increasing the share of low
emission vehicle ownership.
The Six Nation Southeast
Asian Mangrove
Reforestation Project (aimingfor 2000ha by FY 2008)

Aiming to make 45% of our managerial
company cars low emission vehicles.

Environmental Awareness Advertising

Engaging in environmental awareness advertising.

Environmental AwarenessRaising Directed at
Employees and AgentsEngaging in environmental awareness raisingfor our employees at least once a month.
Carrying out environmental awareness forour agents at least twice a year.

Act

Management
Review

Check
Inspection

397ha of mangroves to be reforested

Management Review

Act

Based on the results of the internal audit of November 2004, a management level
review was carried out in January 2005. This review recommended obtaining a bettergrasp of environmental performance data, strengthening initiatives to promote global
environmental protection through our core business activities, and reinforcing ourenvironmental communication efforts in order for Tokio Marine & Nichido to promotefurther actions to protect the global environment. In June 2005, a final report for FY
2004 activities was received and all initiatives of the year were reviewed.

19

Do

Implementation and Operation

Environmental initiatives aimed at achieving environmental objectives andtargets are operated in accordance with Environmental Aim / Target Achieving
Programme . Of the environmental objectives and targets set out in FY 2004,
only one of the 12 (reduction of copy paper usage) remains unfulfilled.

Environmental Objectives

Environmental
PolicyDevelopment of Eco
Friendly Insurance Products
Investment in Worthwhile
Environment Related
Ventures

Plan

Environmental Objectives
and Targets

Do

Implementation
and Operation

Inspection

Environmental Targets
Holding consultations on how to incorporateneed for eco friendly insurance products
uncovered by research, into insurance.
Research into making over 10 investments
in environment related venture businesses
annually.

Level of Achievement○

Enacted.

○12 investments underconsideration.

Control Over Power Usage

Promotion of our Power Use Control/Reduction
plan set down in 2002 (aiming to keep power
consumption below FY 2001 levels)○

Currently at 94.57% of
FY 2001 levels (monthly
average)

Reduction of Paper for
Pamphlet Usage

Aiming to cut paper consumption volume
by 10% on FY 2003 levels.

○

On track, and achieved
mid-term targets.

Cutover to On Demand
Printing (ODP)

Aiming to increase ODP use to 150% of
FY 2003 levels by FY 2005.

○

Increase of 109% on FY
2003 levels.

Reduction in Volume of
Copying Paper Use

Maintaining the same purchasing levels of
copy paper as in FY2003.

×

Increase of 106% on FY
2003 levels.

Installation of Double Sided
Printing Enabled Printers inall our Offices

Installing 227 double side printing capable
printers within our loss division.

○

229 machines installed.

Promotion of Green
Purchasing

Switching over to green purchasing for
more than five product items.

○

Switched over to green
purchasing of 6 items

Increasing the Share of Low
Emission Vehicle Ownership

Aiming to make 45% of our managerial
company cars low emission vehicles.

○

Ownership rate of 56.3%

The Six Nation Southeast
Asian Mangrove
Reforestation Project (aimingfor 2000ha by FY 2008)

397ha of mangroves to be reforested(FY 2004).

○

434.7ha completed

Environmental Awareness Advertising

Engaging in environmental awareness advertising.

○

EnactedEnvironmental AwarenessRaising Directed at
Employees and AgentsEngaging in environmental awareness raisingfor our employees at least once a month.
Carrying out environmental awareness for our
agents at least twice a year.

○

Activities held on average 1.3 times monthly
for employees. 15 times
annually for our agents.

Check

We hold an internal audit once a year in order to assess whether the Environmental Management System of our Head Office isfulfilling ISO 14001 requirements, and whether it is being appropriately maintained. In FY 2004, the internal audit was carried out
in November following the company merger. This audit turned up five cases of minor non-conformity and 13 cases for further
monitoring . With respect to the items of non-conformity, corrective instructions were issued and each department took action tocorrect the matters raised. In February 2005, an enlarged audit was performed accompanying the merger (to become the regular
audit henceforth), where a single strong point was identified, one minor non-conformity was found, and 8 cases for further
monitoring were highlighted. Throughout 2005, we have focused on making improvements in the areas raised by the periodic
audit so as to raise the overall effectiveness of the Environmental Management System of our Head Office.

20

Protection of the Global Environment

Environmental Communication & Awareness Raising
Tokio Marine & Nichido is proactively expanding its environmental communication and awarenessraising activities through the use of various tools, starting with our own employees and agents.

External Initiatives
Carbon Disclosure
Project 3 (CDP3)
Tokio Marine & Nichido participated asa signed institutional investor in therunning of the climate change risk
survey of the world’s top 500
companies carried out under the
Carbon Disclosure Project’s thirdsurvey (from February 2005 onwards).
The CDP is operated with the aim ofhighlighting the possible risks posed byclimate change to investment receiving
corporations as well as business
opportunities. 35 institutional investor
companies participated in its firstsurvey between 2002 and 2003, with 95
such companies in its second survey
between 2003 and 2004, and 143
companies in its current survey. In
addition, Millea Holdings is also
participating as a respondent to the
CDP survey, as one of the worlds
leading 500 companies.

around 80% favorable evaluations of
theinformation
we
presented.
Furthermore, Makoto Ando of the CSR
Section of our Corporate Planning
Department also participated as apanelist in the “Environment and
Financial Services Seminar” held as
one of the symposiums held along withthe exhibition.
Eco Products Survey Results（N=94）
Didn't find very
Interesting 1%

Not Interesting at all 0%

Examples of Environmental Seminar
Topics in Recent Years

Average16%
Slightly
Interesting
29%

Found
Interesting54%“Eco-Products 2004”
Following on from our participation lastyear, Tokio Marine & Nichido
participated for the second time in“Eco-Products 2004” held at Tokyo Big
Site. “Eco-Products 2004” is one ofJapan’s largest general environmental
exhibitions
involvingover400
businesses, local governments, researchorganizations and such, presenting theirvarious environmentally friendly products,
environmental services and initiatives.
During this exhibition, we displayed
videos relating to our “Mangrove
Reforestation Project”, and gave
introductions to many of our initiatives
aimed at global environmental issues
including our environmentally considerate
insurance products such as “Eco-Car
Discounts For Auto Insurance”, our “SoilRemediation Cost Insurance”, “Weather
Derivatives” and other environment
related products and services, as wellas our support for the spread of wind
power through our “Wind Condition
Risk Hedging Programme” andpurchasing of wind generated power,
among other things. The result of aquestionnaire we ran during thisexhibition showed that we received

21

Seminar in 2004

・On Content Relating To The Tokio Marine & Nichido BoothThe Tokio Marine & Nichido Booth at “Eco-Products
2004”

Environmental Seminars
Since 1990, Tokio Marine & Nichido has
held environmental seminars with theaim of deepening understanding
among stakeholders of the mostpressing environmental issues. Our
15th such seminar held last year
adopted the theme of “Business
Solutions for Waste Processing”.
Against the background of increasing
numbers of businesses suffering losses
as a result of illegal dumping of waste,
the seminar was attended by 67
participants (from 53 the previous year),mainly being people directly involved indealing with business waste. We
received a number of comments
indicating that the seminar was mostenlightening on the establishment ofinternal company frameworks and rules
for waste management.

Month / Year

Theme

November 2004

Business Solutions
for Waste Processing

December 2003

EU Environmental
Policy and Business
Solutions

October

2002

Business Solutions for
the Soil Pollution Law

October

2001

The Environment andBusiness Management

December 2000

Environmental Risk
Assessments Sought
by Business

Environmental Magazine“Talisman Special Edition”
Against a background of rising interest
among businesses expanding overseas
in concerns about environmental risk
and environmental issues generally,
Tokio Marine & Nichido began
publishing the environmental magazine“Talisman Special Edition” in 1989,
covering trends in environment related
legislation in various countries worldwide
and timely environmental topics (with 71
issues published to date). Each special
edition is either a US, EU, Asian, Japanor Global Edition, and are publishedsemi-annually.
In FY 2005, we took up the topics of“Recent
Trendsin
Waste
Legislation” (Japan Edition), and“Trends and Issues in Chinese
Environmental Law” (Asian Edition).
“Recent Trends in Waste Legislation”
has been widely subscribed to,particularly by people responsible forwaste management within enterprises.

Marunouchi Townhall
Environmental ForumThe “Marunouchi Townhall Environmental
Forum” has been held jointly with Japan
Airlines Corporation and Mitsubishi
Corporation since 1993. In FY 2004,
forums were held on two occasions, forthe 38th time in November 2004, and the39th time in March 2005. The 38th Forumwas set on the topic of “New Ties
BetweentheEnvironment
andArchitecture” in a lecture given byarchitect Norihiko Dan. The 39th Forum
was a lecture given by medical researcher
Takeshi Yoro on the topic “Thinking
About the Environment Now”. The
seminars were attended by 200 and 350
people respectively from within andoutside the company, and were very wellreceived.
Examples of Marunouchi Townhall
Forum Topics Given in Recent Years
Event No.
39th
38th

video we prepared outlining environmental
problems affecting our company, an outline
of ISO 14001, and our environmental
objectives and targets. Executive training
took place in September 2004.

Company Magazine andAgency Office NewsWe distribute a company magazine andagency office news to our employees
and agents on a quarterly basis, witharticles related to the environment
appearing in all issues, as part of ourongoing efforts to raise environmental
awareness. The content of thesematerials is also made available on theinternal company intranet and TNH (anelectronic bulletin board for our agency
offices). Furthermore, we took theopportunity of the merger last year toswitch over the paper we use in ourcompany magazine and agency officenews to Forest Stewardship Council(FSC) certified paper.

to offer. Our intra-office news programme“Morning
Nextage”
introduces
environment related topics every
morning. We also broadcast the special
environmental documentary “The Tokio
Marine & Nichido Nature Special‘Journey Through Mangrove Forests of
the Ocean Toward Fiji at the Crossroadsof the Pacific’”, which was broadcast on
public television in March 2005.

Environmental Topics
Ever since 2002, we have periodicallypublished “Environmental Topics” online, which contains articles explaining
environmental issues, aimed mainly at
our employees. In FY 2004, topics suchas waste issues and the coming into
force of the Kyoto Protocol werecovered.
Topics Published in FY 2004
Edition No.

Title

No. 9

Thinking About The
Environment Now

Recent Developments
Related to Global Warming

No. 10

New Ties Between The
Environment & Architecture

Current Situation
Regarding the “Waste Law”

No. 11Coming Into Force of the“Kyoto Protocol” Following
Russian Ratification

No. 12The Coming Into Force ofthe Kyoto Protocol On
February 16th

Topic

37th
36th

My Ecological Life
1. How Far the Global
Environment Has Come
2. Thinking Globally, Acting
Where You Are

35th

Living Alongside Nature

Green NewsWe periodically publish “Green News”
which introduces initiatives relating toclose to home global environmental
protection initiatives, with the aim ofpromoting these initiatives within all ourbranch offices, and a sense of care forthe environment among our employees.
The 2004 edition raised such topics as
our measures to reduce copy paper
consumption, and measures taken toconserve energy.

39th Seminar

Internal Initiatives
Training on ISO Environmental
Fundamentals
Once every year, we hold “Training on
ISO Environmental Fundamentals” forHead Office employees. Last year, we
ran training in all departments through a

In-House Satellite
Broadcasting
We work to raise awareness among our
employees and agents by broadcasting
information relating to our environmental
initiatives through daily broadcasts on our
in-house satellite broadcasting system“CSN”, taking advantage of thecharacteristics that visual media have

Intranet site of Green News

22

Protection of the Global Environment

Insurance for the Planet - Mangrove Reforestation Project
Tokio Marine & Nichido has been operating a “Mangrove Reforestation Project” since 1999 withthe aims of regenerating rapidly disappearing mangrove forests and contributing to theprevention of global warming.

Overview of the Mangrove
Reforestation Project
In late March 2004, Tokio Marine &Nichido completed a project set out aspart of pre-merger Tokio Marine & Fire
Insurance's
120th
Anniversary
Celebrations to reforest an area of
3,000 hectares in the project first phasewith a total of 3,444 hectares ofmangroves reforested in five Southeast
Asian countries over a five year period
starting in 1999. As of FY 2004, wehave began a second project phasewith a target to reforest a further 2,000
hectares in five years in the previous
five Southeast Asian Nations plus the
newly added nation of Fiji.
This project is being carried out in
partnership with two NGOs with aproven track record in mangrove
reforestation; the Organization for
Industrial, Spiritual and Cultural
Advancement (OISCA), and Action for
Mangrove Reforestation (ACTMANG).

volume of carbon dioxide emissions
resulting from our business activities
with the volume of carbon dioxide
absorbed by reforested mangroves, so
as to become “carbon neutral” .
(2) Disaster Prevention
In the Indian Ocean Tsunami that
occurred in December 2004, a portion ofmangroves played a role in acting as awave break, protecting the lives of many
people. It can be therefore said that thisproject also has great significance froma disaster prevention perspective.
(3) Regional Contributions andInternational Exchange
By reforesting mangroves which
provide resources indispensable to thedaily lives of local residents, we havebeen able to bring about improvements
and greater stability in their living
environment. Moreover, we are making
efforts to foster international exchangewith local people by way of our“Mangrove Reforestation Tours.”

also hold study meetings onenvironmental issues, pay visits to local
schools, have exchanges with local
children, and visit NGO training centersalong with other such cultural exchange
programmes providing opportunities forparticipants to be involved in environmental
education and international exchanges.
The 7th Mangrove Reforestation
Volunteer Tour visited Tien Lang in thenorthern Vietnamese city of Haiphong.
22 Green Volunteers made up of Tokio
Marine & Nichido employees, groupcompany employees, retirees and theirfamilies participated, reforesting 6,000
plants in three days, on schedule asplanned. Volunteers pitched in working
together with Tien Lang women'sgroups in carrying out the mangrove
reforestation, as they struggled to keep
their footing in the mud of estuaries andriver beds, forging deep ties offriendship through the exchange.

(4) Environmental Awareness Raising
We are proactively engaging inenvironmental awareness raising bothwithin and outside our company throughour mangrove reforestation activities.

Reforestation
Activities in 2004
The 7th Mangrove
Reforestation Volunteer Tour
Young, replanted Mangrove trees in Fiji

Project SignificanceProject Significance(1) Environmental Protection
The role mangroves play in sequestering
carbon dioxide, one of the primary gases
responsible for global warming, has
drawn much attention in recent times.
3,000 hectares of mangrove forests is
estimated to be a scale sufficient toabsorb the emissions associated withthe business activities of Tokio Marine& Nichido. Our aim is to balance the23

Once or twice a year, we hold weeklong
Mangrove Reforestation Tours within
Tokio Marine & Nichido wherebycompany employees, agents, staff
alumni, and families join our “Green
Volunteers”. Along with the tours, we

Reforestation Volunteer Tours Held To Date
Tour No.

Tour Period

Reforestation Site

1st

18-24 July 1999

Tien Lang, Vietnam

2nd6-11 July 2000

Palawan Island, Philippines

3rd

28 May - 2 June 2000

Tien Za, Vietnam

4th

3-9 June 2001

Ranong, Thailand

5th

19-25 May 2002

Ranong, Thailand

7-13 February 2004

Ranong, Thailand

6-11 June 2004

Tien Lang, Vietnam

6

th

7th

Project Phase 1
Reforestation Results

Results of Project Phase 1 Reforestation（ha）

During Phase 1 of this project between
FY 1999 and 2003, we surpassed ourgoal or reforesting 3,000 hectares.
[Target Countries]
The five countries of Indonesia, Thailand,
Philippines, Myanmar, and Vietnam.

Reforestation Region
Indonesia
ThailandPhilippines
MyanmarVietnamArea Reforested
911
516
505
610
902

Total
Completion Rate

3,444
115 %

Project Phase 2
Planned Reforestation
Project Phase 2 kicked off in FY 2004 witha reforestation goal of 2,000 hectares over
five years in the same countries asprevious, with the new addition of theSouth Pacific island nation of Fiji, whichhas particular concern about inundation
due to sea level rise resulting from global
warming. We continued on with thisproject in response to the many voices ofour employees who raised the view that weshould continue reforestation activities.
[Target Countries]
The six countries of Indonesia, Thailand,
Philippines, Myanmar, Vietnam, and Fiji.

Reforestation Phase 2 Plan
Reforestation
RegionIndonesia
ThailandPhilippines
MyanmarVietnamFiji
Total（ ha ）

Reforestation Reforestation
Area (Target) Area (Current Total)
650
400
100
550
250
50

68
100
0
216
43
8

2,000

435

Environmental Awareness Raising Through Mangrove Reforestation
As an activity kicked off as part of its

Forests for Children Results
Outline of the Plan for Forests for Children

5th Anniversary Celebrations in 2002,- Ranong, Thailand

Tokio Marine & Nichido Life has been

Scope ：Ban Koh Lhao School, elementary school

constantly involved in contributing to
the “Forests for Children” Plan (ofMangrove Reforestation) run by the
NGO OISCA in Thailand. Along withsupporting the onsite reforestation ofmangroves in these regions, thisinitiative

providesenvironmental

education to local children, develops
fondness for nature through holding
environmental

camps,

andcontributes to awareness of the needto protect mangroves in the region.

students and teachers：Ban Had Sai Dum School, elementary
school students and teachers
Duration：5 Years (2002 - 2006)
Goals ：
(1) To impart knowledge and understanding in childrenof the ecosystems within mangrove forests.

Location & Year・Ban Koh Lhao School
2002
2003
2004
・Ban Had Sai Dum School
2002
2003
2004
Total

（ ha）

Area Reforested
5.36
5.36
5.36
5.36
5.36
5.36
32.16

(2) To obtain knowledge and the ability to reforest andprotect mangroves.
(3) To make children think about preserving nature,
make a contribution to the environment and topromote voluntary participation in mangrove
reforestation.
(4) To aim to regenerate mangrove forests near toschools that are in bad condition.
(5) To encourage school participation in thereforestation project both as a school, and as
part of environmental education.

24

Contributions to Communities and Societies

Practice of Community / Social Philanthropy
At Millea Group, we treat “Communities and Society” as among our most important
stakeholders. We broadly contribute to the growth of society as a good corporate
citizen.

■ Operational Policy ■At Tokio Marine & Nichido, we define philanthropic activities as: “Activities not related to our coreareas of business, where we make a contribution for the public good of our own initiative without
expectation of any direct payback in return”.
1) We divide this into the three major areas of “social welfare”, “international exchange(international cooperation), and “global environmental protection”.
2) We support “community and philanthropic activities” across all regions.
3) We support the volunteer activities of our staff.

※In FY 2004, we have joined with NPOs to proactively support volunteer activities by our staff and community
philanthropic work under the slogan “Supporting Philanthropic Activities at a Community Level”.

Framework for
Supporting
Volunteer Activities
Volunteer Activity
Financial Support System
Under this system, Tokio Marine &Nichido provides financial assistance toNPOs and such organizations where
our staff engage in voluntary activities
with the aim of supporting the volunteer
activities of our employees, and to workwith NPOs that are seen as one
supporting element accompanying theformation of a new civil society. Since
setting up this system in 2002, thenumber of groups we provide support
for has grown year by year.
Number of Groups Receiving Support under the
Volunteer Activity Financial Support System
Area of Support

FY 2002

FY 2003

FY 2004

Youth Development
Disabled/Elderly Care
International Exchange
Environment
Education

2
2
2
-

4
3
3
1
-

5
3
2
1
1

Total

6

11

12

Number of People Taking Volunteer Work
Leave / Long Term Leave

Gift Matching System
Tokio Marine & Nichido set up thissystem in 1994 whereby the company
matches the charitable donations of
employees in the hope of raising levelsof commitment among our employees
to philanthropy. Along with theparticipation of our agents, we engage
in charity bazaar auctions andfundraising activities. In FY 2004,
through fundraising activities in supportof disaster relief relating to floods,
typhoons and such, we weresuccessful in raising donations inexcess of the amount gathered theprevious year.
Gift Matching Donation Cases/Amount Raised
No. of Cases
AmountRaised(1,000Yen)

FY 2001

FY 2002

FY 2003

FY 2004

39

36

34

35

6,297

5,005

3,826

5,322

Volunteer Work Leave
SystemTo date, four of our employees havemade use of the Voluntary Long Term
Leave System to participate in overseas
youth cooperation groups, and performed
support work in Bangladesh, Malaysia,
Senegal and Samoa. Furthermore, in FY
2004, 45 people used our Volunteer Work
Leave System to participate in suchactivities as Mangrove Reforestation
Tours and the Special Olympics.

Activities by one of the supporting NPOs25

FY 2001 FY 2002 FY 2003 FY 2004
VolunteerWork Leave

19

19

18

45

VolunteerWork Long
Term Leave

1

0

0

0

Providing Information by
Forums / NewsWe
provideinformationonphilanthropic activities through ourcompany intranet. The “Society &Environment Forum” is used as abulletin board for employees todisseminate
informationonphilanthropic activities going on at all
our nationwide offices, and to
exchange opinions. “CSR News”
periodically introduces the activities ofall our branch offices, and engages inawareness raising activities aimed atour employees.

Philanthropic
Activities WithinJapan
2004 NPO Awards
In October 2004, Tokio Marine & Nichido
held the 2004 NPO Awards jointly with
Tokyo Junior Chamber, Inc. These NPO
Awards, now in their third year, are heldwith the objective of providing awards toleading NPOs engaged in activities
beneficial to society, and to foster
exchanges among NPOs. These awards
look at the activities of NPOs within
Tokyo, and from those selects 30
organizations seen as best fitting theobjective of achieving “public benefit
from the standpoint of an ordinary
citizen”, from which the decision on the
top award is made. The selected 30
NPOs were able to make appeals for theactivities of their group and deepen
exchanges and cooperation with othergroups and opened booths highlighting
the activities they are involved in (such as“promotion of social education”,“improvements in sanitation, medical
and general welfare”, “promoting
children’s health”, “promoting town
revival”, and “international cooperation”).

2004 NPO Awards Booth

Support for the Pink
Ribbon Drive
Ever since January 2005, Tokio Marine& Nichido Life via the NGO J.POSH has
been proactively supporting the Pink
Ribbon Drive through the sale of thewomen’s dedicated medical insurance“Assurance Amulet” to cover the costsof breast reconstructions and such. In
FY 2004, our staff wore pink ribbon
badgesandworkedtowards
communicating the importance to ourcustomers and agents of the Pink
Ribbon Drive and of the need to detectbreast cancer at an early stage. Tokio
Marine & Nichido along with lecturers
from J.POSH also held seminars in 11
locations around the country aimed atour employees and agents in addition
to our customers.

Scholarships for Students
Studying Abroad from ASEAN
Since 1990, Tokio Marine & Nichido hasoffered scholarship support to master’s
degree students studying abroad fromASEAN countries, with the aim offurthering international friendship withthe people of ASEAN countries throughhuman development. The actual
operation of this scheme is carriedout by the Tokio Marine Kagami
Commemorative Foundation.

ASEAN Scholarship Student’s Exchange Meeting

Participation in the UN Disaster Prevention Meeting
On January 18th, 2005, the day of the 10th Anniversary of the Kobe Earthquake,“The United Nations World Conference on Disaster Reduction” was held in Kobe
setting out policies and measures for future worldwide disaster prevention. The
three companies of Tokio Marine & Nichido, Tokio Marine & Nichido Risk
Consulting (both from Millea Group) along with our partner BELFOR Japan
participated in this meeting holding lectures and setting up an exhibition booth.
As Counselor Koukei Higuchi of Tokio Marine & Nichido gave a lecture on the topic
of “Disaster Prevention Utilizing the Dynamism of the Market and Private Sector”,
Tokio Marine Risk Consulting and BELFOR Japan also gave lectures on such
topics as “The Need for Business Continuity Planning (BCP)” and “Ways to Revive
Business Operations”.

Counselor Higuchi giving a speech※1 What is BELFOR?
BELFOR, based in Germany, is the world’s largest company specializing in disaster recovery,
with a proven track record in recovering equipment and facilities damaged in natural disasters
and accidents.
※2 What is Business Continuity Planning (BCP)?
This is a predetermined plan by which companies plot out how they will continue or restore core
operations in the event of an accident or disaster.

Our exhibition booth26

Contributions to Communities and Societies

Practice of Community / Social Philanthropy (Continued)

Establishment of an “Environmental / Community Philanthropy Promotion Month” and a “Presidential Award System”
In October 2004, an “Environmental/Community Philanthropy Promotion
Month” was established by Tokio Marine & Nichido throughout the company aspart of our CSR practice with the aim of promoting environmental andcommunity philanthropy by our employees. As part of this month, Presidential
Awards are given for environmental and community philanthropic activities
carried out over the last financial year seen as being in keeping with thecharacter of Tokio Marine & Nichido, and that are deemed to have made a highlevel of contribution to local communities. In the first ever round of Presidential
Awards, a total of 155 activities were nominated, from which awards were
presented to the branch offices listed below.

Initiatives From Each Branch Office Receiving the Presidential Award

27

Nagano Branch OfficeToyama Branch Office

Saitama Central Branch Office

Staff from our Nagano Branch Office showed
Tokio Marine & Nichido’s support for the“Special Olympics World Winter Games” heldin Nagano from February 26th through March
5th 2005 by allowing the first floor of ouroffice building to be used as a PR booth forthe games for three months, fundraising 1.25
million yen and donating 5 million yen, anddirectly through the 46 staff who worked astranslation
volunteers.
Free
medicalassistance with translators was also wellreceived by games participants from all over
the world.

Every Thursday between 11 and 11:30am,
bread made at the “Mehi no Noen” facilities
for the autistic and intellectually disabled isoffered on sale in the seventh floor elevator
hall of our Toyama Branch Office. Under theslogan “every Thursday is bread day”, thepurchase of bread for lunch or taking home isproactively encouraged.

Between February and March 2005, all thestaff from our Saitama Central Branch Office
and agents wore Pink Ribbon Drive badges,
and made and distributed pamphlets
explaining the Pink Ribbon Drive as well as
collecting donations, in order to promote theeradication of breast cancer through early
detection.

Fukushima Branch Office

Tohoku Business Support Department

Ehime Branch Office

In January 2005, 55 employees from our
Fukushima Branch Office ran our “Pink
Ribbon Drive” street campaign outside theeast exit of Fukushima Station in Fukushima
City, and the west exit of JR Koriyama Stationin Koriyama City. Participants handed out
pamphlets as they promoted the importanceof early diagnosis of breast cancer.

In October 2004, the Tohoku BusinessSupport Department participated in the“Sendai Cares” event to introduce NPOs toordinary citizens. Department staff also
gathered together surplus office equipment
and fixtures to offer to NPO groups, over halfof which was taken away with messages ofappreciation.

33 members of our Ehime Branch Office joined
together to make a team that did rounds ofvolunteer work in flood stricken areas in
Niihama City and Saijo City. This team helped
clear mud from the floors of affected houses,
and in the removal of household items. Staff
received letters of appreciation from Saijo City,
Niihama City and Shikoku Chuo City.

Overseas
Philanthropic
Activities
BrazilIn 2003, Tokio Marine Brazil started the“Tokio Marine Angels”. This provides
food packages to economicallydisadvantaged households four times
annually. Last year marked our second
initiative during the Christmas period.
As occurred in 2003, we delivered foodpackages at Christmas to 208
economically struggling homes basedin favelas. Last year, more so than inprevious years, there was a high level ofinterest shown by our employees,
whereby they not only delivered foodpackages, but also showed their
feelings of support which was warmly
receivedbyalltherecipienthouseholds. On top of this, Tokio
Marine Brazil has also been presented
with the FY 2004 Annual Brazil BestEnterprise Award. We were the only
company of Japanese origin to bechosen among the 30 companies thatreceived this award from Brazil’s mostwidely published magazine.

Cambodia

Hawaii

As of FY 2003, Tokio Marine & Nichido
Life has supported children’s education
through the NGO “Caring for Young
Refugees (CYR)” which creates picture
songbooks and character cards withthe aim of improving the child literacy.
In FY 2003, we provided part of theoperation costs of the Prey Totung
Kindergarten, and in FY 2004 we went
beyond this to cover all direct operating
costs (costs of local teachers,
educational materials, and school
lunches). Our company name wasincluded as a supporter in acommemorative plaque mounted on
the outer wall of the Prey Totung
Kindergarten.

Support for Exhibition ofExpressionist Painting*The NGO “Caring for Young Refugees (CYR): This isan NGO that acts in response to the needs of theCambodian Education Agency to help its children
recover from the impact of the civil war there indelaying children’s education (with a rate of 11% ofkindergarten students entering schooling).

Tokio Marine & Nichido’s affiliatecompany, Hawaii First Insurance was
the main sponsor of the major
exhibition “Japan and Paris” held
between April and June 2004 in the
Honolulu Art Exhibition Center, which is
the only general art exhibition center inthe state of Hawaii. We sought throughthis initiative to show our appreciation
to our local customers, while
supporting cultural activities in within
Hawaii State.

Donations To Local Communities
Hawaii First Insurance has provided
support to the needy among the
HawaiianCommunity
since
its
foundation in 1911, and madeUS$300,000 in donations during FY
2004.

Indonesia
Tokio Marine Indonesia agreed to theplan for a “3 Year School Feeding
Programme” set up by the United
Nations World Food Programme toprovide nutrition to impoverished anddisadvantaged children, and made a
US$16,000 donation. This donation
was used in the purchase of scales andmeasuring equipment necessary toassess the health of students in 103
elementary schools (covering 35,000
children) in and around Jakarta.

©Kobayashi Masanori“Best Places to Work in Hawaii”25 Companies
Hawaii First Insurance was chosen as one of the 25 companies listed as the“Best Places to Work in Hawaii” for FY 2005 (FICOH Commendation Award).
This is an award set up by Hawaii Business Magazine under its plan of thesame name, in which Hawaii First Insurance was selected in the award’s
inaugural year. Selection
was based on a company
questionnaire and a staff
questionnaire carried out
withalmostall
ouremployees. Among ourgenerally high evaluation,
results rated our level ofsatisfaction
with
staff
welfare particularly highly,
showing a marked effect on
FICOH Award Ceremony
staff motivation to work.

Donation Ceremony at one of the elementary schools

28ComplianceEngaging in Fair Management
We aim to effect fairness and equity in our business activities by having our staff andagents maintain a high level of ethical standards throughout all aspects of ouroperations.

Compliance Related Policy /Promotion Framework
Millea Group Code of Conduct

Millea Group Code of Conduct
Millea Group is committed to continuous enhancement of its
corporate value, with customer trust at the base of all its
activities. The Millea Group Code of Conduct sets forth ethicalstandards that are essential for translating this corporate
philosophy into action.

(as amended July 25th, 2005) ※Itemized outline only

1.Purpose of This Codeof Conduct

2-3 High Transparency inManagement●Public Disclosure

2. Basic Principles●Accurate Information

2-1 Compliance

Millea Group Framework for Promotionof Compliance
Millea Group defines compliance as “complying withapplicable laws, rules, regulations, internal rules, andconducting fair and equitable business activities within social
norms”, and we actively engage in related initiatives based on
this definition.

●Free and Fair Competition●Anti-Harassment●Conflicts of Interest●Private Information

The Role of Millea Holdings
Millea Holdings sets out basic policies, general measures andengages in periodic monitoring of the progress of initiatives witha view to raising the level of those initiatives throughout theGroup. Compliance is promoted in a manner that accounts forpractical considerations such as the business operations of thegroup company concerned, its size, and so on, in order to raise
the effectiveness of initiatives. Furthermore, reports aregathered from group companies on points detected throughmonitoring as being of clear importance, which are discussed in the
Compliance Committee, Management Meeting, and Board of
Directors and where necessary, those group companies are
subject to guidance and advice.

Promotion of Compliance Among Group
Companies

2-4 Human Rights●International Rules andLocal Laws

●Anti-Discrimination●Insider Trading●Intellectual Property

3. Enforcement
and Administration●Working Environment●Standards for Compliance●Reporting of Non-Compliance

2-2 Social and Political
Issues●Consequences of
Non-Compliance●Anti-Social Forces●Political Activities,
Political Funding●Gifts and Entertainment

Millea Holdings
Board ofDirectors

Corporate
Auditors

Board ofCorporate
Auditors

Management
Meeting
Compliance Committee
Corporate Legal Dept.
(Corporate Legal & Compliance Group)
Proposes Policies & Standars
Provides Guidance, Directions,Management & Monitoring for
Report toGroup Companies
Board ofDirectors

Corporate Auditors(Board of Corporate Auditors)

Compliance Committee, etc(Entity established as befitting each group company)

Compliance Department

Internal Audit

Group companies create tailored frameworks for thepromotion of compliance within their own companies inaccordance with the basic policies set out by Millea Holdings.
They also oversee the promotion of compliance insubsidiaries, where such subsidiaries exist. Our insurance
subsidiaries have done this through the creation ofCompliance Departments that oversee initiatives generally,and by setting up Compliance Committees that engages in
implementation and periodic status monitoring of actionplans. Group companies other than those engaged ininsurance have also set up their own promotion frameworks
that fit each of their own circumstances.
These initiatives are all aimed at achieving continuous
improvement, and are managed in accordance with the PDCA
(Plan, Do, Check, & Act) Cycle. Furthermore, Millea Group asa whole continues to work at compliance awareness throughthe creation of manuals tailored for each area of operations,distributing such manuals, and providing access for company
staff and management to information on the complianceframework and applicable rules.

29●Confidential Information●What is ComplianceDetails of Initiatives
Establishment of aCompliance Committee
A Compliance Committee more thanhalf made up of members from outside
the firm, such as lawyers and university
academics, has been establishedwithin Tokio Marine & Nichido to gather
a broad range of external opinions
relating
tothepromotionofcompliance. This committee is set up
as a body accountable to the Board of
Directors that reports and makes
recommendations
directlytomanagement. We have been able toobtain invaluable advice and proposals
based on the observations andexpertise of these committee members.

Hotline System
Within Millea Group, we have various
hotline systems in place to handle
compliance related reports andconsultations from the staff andmanagement of our group companies.
Among these, we have set up a
hotline to an external law firm, tofacilitate use by group members. We
also take care with the handling of
information to ensure that use of thesystem does not result in any
disadvantage to the person reportingor consulting.

Details of the Hotline System● Millea Holdings Hotline● External Hotline (to an external law firm)● Internal Hotlines: Examples from Tokio

Marine & Nichido-Compliance Help Line (dedicatedhelpline handling calls for cases otherthan sexual harassment or humanrights)-Human Rights Awareness Office(Sexual Harassment / Human Rights)● Compliance Consultation Box: Examples

Compliance Staff Training
Within the companies of Millea
Group, we hold training sessions for
all ranks and workplaces in order toensureproperknowledgeofcompliance requirements. At Tokio
Marine & Nichido, we have formallycommenced an e-Learning system thatuses our intranet, and are working
towards setting up an environment thatenables our employees to learn more
effectively.

Policies Aimed at
Promoting Compliance Among Staff● Training for management (seminars byexternal lecturers)

Policies Aimed at
Promoting Compliance Among Our Agents● Training for key agents with the aim ofsupporting internal management
frameworks within our agents(accounting for agency characteristics)● Newly offering training to our agentsthrough the use of our online network(e-Training)● Individual agent training with the aim ofraising compliance related knowledge
levels● Introducing aCompliance Checklist
to allow self-checking by our agents● Continued operation of group agent

training● Distribution of ourComplianceHandbook For Agents to all agents● Workplace training (common topics)● Training by rank
● e-Learning using the company

network (for management and staff)● Compliance meetings in each of ourdepartment and branches (set out
under annual measures)● Information distributed by ComplianceDepartments (of useful examples of
initiatives)

Compliance
Promotion
Among Our Agents
Within Tokio Marine & Nichido,
training is provided aimed both at allagents in general, and specifictraining for key agents, in order toensure that compliance initiatives areembraced by agents voluntarily. We
have supported the development of acompliance management framework
among our agents led by the person
responsible for compliance in eachbranch. Also, we have distributed“Compliance Handbooks” to all our
agents, and are constantly involved inraising compliance awareness invarious ways.

from Tokio Marine & Nichido(we opened an interface for written
submissions through the company
intranet in October 2004)30

Communication

Dialogue With Stakeholders
We proactively engage in communication with all our stakeholders while at the sametime disclosing timely and appropriate information relating to Millea Group’s current
state of affairs and the development of our business operations.

Disclosure Policy of Millea Group■ Disclosure Policy of Millea Group ■We aim to disclose meaningful information regarding Millea Group that enhances management transparency and fairness
in connection with our “Corporate Social Responsibility”.

1.Disclosure Policy
It is our policy to disclose information expeditiously in accordance with the “Rules on Timely Disclosure of Corporate
Information by Issuers of Listed Securities and the Like” stipulated by the Tokyo Stock Exchange.
We strive for timely, accurate and fair disclosure of other information that is relevant to our customers, shareholders
and investors, representative offices and employees as well as the society at large.
In addition to disclosing appropriate information pursuant to Japanese laws and ordinances as well as stock
exchange rules and regulations, it is our policy to disclose information in accordance with United States securities
laws, rules and regulations, including providing annual reports containing consolidated financial statements preparedin accordance with the United States Generally Accepted Accounting Principles, or US-GAAP.

2.Methods of Disclosure
Disclosure pursuant to stock exchange rules, regulations and other requirements is made through the Timely
Disclosure network, or TDnet, of the Tokyo Stock Exchange as well as the press and other appropriate means. We
subsequently post the disclosed information on our website.
Other disclosure is made in an appropriate manner based on the content of the relevant information.
English language information publicly filed with or submitted to the United States Securities and Exchange
Commission, or the SEC, is available for viewing on the SEC website (http://www.sec.gov/edgar.shtml) or our website.

3.Additional Information
Disclosure made based on this Disclosure Policy is intended to inform the public regarding Millea Group's activities
accurately, expeditiously and fairly and is not intended to constitute an investment solicitation.

Communication With
Our Customers

Customer Satisfaction Survey Results
Highly Unsatisfied:0.6%
Unsatisfied:0.4%
Not Really Satisfied:2.7%

Not Answered:2.3%
Greatly Satisfied:3.2%

Customer Surveys
Every year, Tokio Marine & Nichido
performs a postal survey of contracted
insurance
customers,
seeking
feedback on satisfaction levels,
opinions and suggestions. Received
opinions and suggestions are sharedwith relevant departments within thecompany, and applied in making
improvements to our products andservices. In FY 2004, approximately
4,000 of our automotive insurance
clients were sent survey forms, fromwhich we received around 1,100
responses. The responses included
favorable comments regarding our
response to accidents, as well as calls
for improvements in our products andservices, and reinforcement of ourframework for providing information.

31

Well
Satisfied:
20.9%
Average:
45.5%
Satisfied:
24.4%

Customer Center
The Customer Center handles inquiries
relating to our insurance products, andlooks after all the administrative needsof our customers contracted for
insurance. They are equipped to handle
all basic areas of inquiry. Furthermore,transfer of automobile insurance,cancellation of automobile liability

insurance, and reissuance of deduction
certificates are included among theadministrative operations handled by
the Customer Center. In FY 2004, theyhandled around 640,000 calls.

Feedback and Inquiry
Interface on Our Homepage
We have installed a “Feedback / Inquiry
Corner” on our homepage thatserves as a 24 hour-a-day, 365 daya-year interface for receiving
feedback and inquiries from ourcustomers. In response to received
feedback and inquiries, we generally
provide a response from a specialist
representative within 24 hours, making
direct contact by phone where
necessary. During FY 2004, we received
around 6,000 items of feedback making
such suggestions as that we improve
the functionality of our homepage, andreceived inquiries on our contractual
terms and product conditions.

questionnaire distributed at the meeting(with a return rate of 95.6%), 62% ofattendees
expressed
satisfied
responses.

Improvements to Our
Products/Services from
“Our Customers’ Voice”
and “Total Feedback”
We take our “Customer’s Voice” madeup of feedback and suggestions
received through a wide range ofchannels, and make it available via ourcompany intranet, to be put to use in
making improvements to our products
and services. Furthermore, we also
draw upon “Total Feedback” which are
the improvements and suggestions
from our customer’s perspective raisedby our agents and employees. Until
now, these have led to the making of
concrete improvements such asrevisions made to our automobile
insurance
products,
terms
andconditions, insurance account transfer
system, and product information
pamphlets.
Results for FY 2004
Feedback and suggestions
received from customers

460
cases

Suggestions for improvementfrom our agents and employees

1,200
cases

Tokio Marine & Nichido
Assurance Emergency Dial
Because one never knows when an
accident is going to take place, we set
up a 24-hour, 365 day-a-year freedial
number in 1989 for dealing withinquiries and consultations relating toaccidents. On October 1st, 2004, Tokio
Marine Assurance Emergency Dial andNichido Fire Backup Dial merged toform Tokio Marine & Nichido Assurance
Emergency
Dial,andcontinue
providing freedial services. At the sametime as setting up a new call centersystem last year, we also continue
working to expand our services in many
ways, such as through setting up an“English Response Corner”, “New
Assurance Fax Service”, and an“Agent’s Late Night / Public Holiday
Accident Support Desk”. The numberof calls received by Assurance
Emergency Dial reached about 1.02
million in FY 2004.

Assurance Emergency Dial Offices

Communication With
Our Employees
CSR Forum
In February 2005, we established a
CSR Forum on the Tokio Marine &Nichido company intranet as a place toshare CSR related information andexchange opinions. This is done from thestandpoint of considering information
sharing and exchanging of opinions
among all staff as being vital in order tohave our CSR initiatives reach each andevery company employee. The “CSR
Forum” provides an introduction to
CSR Committee meeting notes, good
examples of initiatives, and references
to CSR related information (records oflectures and examples from otherfirms). It also serves as a place in which
opinions can be exchanged on other
CSR initiatives.

Communication With
Shareholders andPrivate Investors“Top 190 Company
Investor Relations
Websites on the Internet”
A complete renewal of the Millea
Holdings corporate website was carriedout in March 2004 in order to improvethe understandability and usability of
the website to enable all investors andshareholders quick and convenient
access to necessary information. As aresult of this, Millea’s website wasincluded in the Daiwa Investor
Relations Co., Ltd. “Top 190 Company
Investor Relations Websites on theInternet*” announced in April 2004.
* The “Top 190 Company Investor Relations
Websites on the Internet” is a list of firms
compiled by Daiwa Investor Relations Co.,
Ltd. based on a survey carried out between
March 22nd and April 12th, 2004, in which
the investor relations websites of 999
market leading firms were reviewed, the top
515 firms being selected and ranked
according to the evaluation given them by
Daiwa, with the top 190 being chosen for
the “Top 190 Company Investor Relations
Websites on the Internet” list.

Private Investor Briefings

SRI Fund and Index

In November 2004, we held a private
investor briefing attended by 360
people. This kind of briefing aimed at
private investors was a first within theinsurance industry, and the first formalsuch briefing to have been held by aleading financial service industry
member. At the briefing, company
president Kunio Ishihara gave a lectureon the “Overview and Management
Strategy of Millea Group”, while Mr.
Makoto Sugimachi, General Manager of
the Product Sales Support Department
at Tokio Marine & Nichido gave apresentation on our “Super-Insurance”.
According to the results of aMillea Group receives favorable
evaluations from corporate CSR rating
agencies, and is included in many SRI
Funds and Indices.
Adopting Indices

MS-SRI
Monitoring Star Socially
Responsible Investment
Index (Japan)

FTSE4GoodETHIBEL(UK)(Belgium)32Third Party Comment

Moving from being an “Environmental Report” to a “CSR
Report”, the “Millea Group CSR Report 2005” has gone
through a transformation whereby its content
emphasizes the diverse philanthropic contributions of its
business activities.
The main features of this report are how it has structured
and set out its environmental and philanthropic goals
along with measures for reaching them, and the zeal withwhich it demonstrates the governance framework for self
evaluating progress towards those goals. Governancehere refers to the control and autonomy that make up“Cooperative Governance”, which is to say strict
adherence to corporate philosophy and implementationplans, and motivated stakeholders such as employees
and shareholders who participate in CSR of their own
volition. Thus, it is indeed the participant’s
comprehension of CSR and this common understandingthat makes putting it into practice possible. It is
praiseworthy that from the very outset this “CSR Report2005” concisely sets out the links between its Corporate
Philosophy, CSR Charter, CSR Promotion Framework,
as well as the related indices targeted by these, and calls
for participation in CSR initiatives.
At the same time, this CSR report takes care that its
message is in no way diminished to those within or
outside the company, by introducing efforts from its
group companies that work to enhance society, protect
human rights and privacy, offer equal opportunity, careerdevelopment, and so on. This is a key prerequisite for
fostering the autonomy and initiative from within thecompany required for “Cooperative Governance”. To
achieve that, common sharing of information throughcommunication is indispensable. This reportsystematically explains this communication framework,and conveys the intent to attempt closer cooperation
with stakeholders. Millea group continues with acommunication framework to elaborate on initiatives tostakeholders, which shows Millea Group’s commitment
to collaboration with stakeholders.

All companies broadening reporting content from that ofan environmental report to a CSR report struggle withhow to deal with the scope of CSR and add value. As thereporting scope expands, there tends to be a loss in
structure and focus. “CSR Report 2005” has been
painstaking in this respect. Introducing CSR based on
the Corporate Philosophy, it is possible to understandthe thinking that the implementation of this Corporate
Philosophy is directly tied to environmental and CSR
practices. However, it is not easy to systematicallysummarize such a broad policy as this and tie it tospecific actions at ground level, as well as to foster
common understanding and comprehension for readersfrom outside the company in particular. The other side to
the enthusiasm shown in the “CSR Report 2005” is theinescapable impression that it remains at sea oversystemization, as can be seen in the over brimming tableof contents of the report.
It would be more desirable to have taken an editorial
approach that organizes issues, establishes key
concepts and introduces CSR as a built up series ofconcentric circles from within the company to society ingeneral, from individual and local societies to the Asian
region, and then to the broader world, to convey its
message.
It is mentioned within the report that mangroves
reforested through hard work since 1999, proved to havea strong effect in facing down the Indian Ocean Tsunami.
Beyond this physical effect, one can’t help but think of
the importance and size of intangible CSR related effects
among individuals, and between people and society. I
send my congratulations for having produced this work
as befitting Millea Group’s inaugural CSR year.

ProfileProfessor Takeshi Hara
●Graduated Waseda University School of Law and entered the Mainichi Newspapers in 1962.
●On top of being Head of Science Section, and an editorial staff member, became a

Waseda University Graduate School Professor in 1998.
●Also, a guest member of Mainichi Newspaper editorial staff and a guest lecturer at

Tokyo University of Agriculture.
●Specializes in Environmental Sociology and Agricultural Economics.

Recipient of the United Nations Environment Programme (UNEP) Global 500 /Reporting Award in 1993.

33

Holding Company Overview

Company Information
As of July 25, 2005

Millea Holdings
Official Name

Millea Holdings , Inc.

Location of Headquarters

Tokio Kaijo Nichido Building Shinkan 9F, 1-2-1 Marunouchi,
Chiyoda-ku, Tokyo, 100-0005, Japan

Date of Establishment

April 2, 2002

Common Stock

150 billion yen

Number of Employees

126

Stock Exchange Listings

Tokyo, Osaka, and NASDAQ(U.S.)

Main BusinessTo manage its subsidiaries as an insurance holding company,
and to conduct business pertaining thereto(As of March 31,2005)

Ordinary Income and Total Assets of Millea Group(Trillion Yen)

(Trillion Yen)

4

Ordinary Income
Total Assets

12
9.95

11.01

11.62
10

3
2.93

2.90
2.78

Total
Assets8
Ordinary
Income

2

6
4

1
2
0

0
FY2002

FY2003

FY2004(Million Yen)

FY2002

FY2003

FY2004

Ordinary Income

2,929,011

2,775,718

2,899,467

Total Assets

9,945,809

11,006,256

11,624,496

34

The United Nations Global Compact Index / GRI Guideline Index
UN Global Compact
Global Compact Principles

Human Rights

Labour Standards

Environment

Anti-Corruption

Principle 1
Businesses should support and respect the protection of internationally proclaimed human rights.
Principle 2
Business should make sure that they are not complicit in human rights abuses.
Principle 3
Businesses should uphold the freedom of association and the effective recognition of
the right to collective bargaining
Principle 4
Businesses should uphold the elimination of all forms of forced and compulsory labour.
Principle 5
Businesses should uphold the effective abolition of child labour.
Principle 6
Businesses should uphold the elimination of discrimination in respect of employment and occupation.
Principle 7
Businesses should support a precautionary approach to environmental challenges.
Principle 8
Businesses should undertake initiatives to promote greater environmental responsibility.
Principle 9
Businesses should encourage the development and diffusion of environmentally friendly technologies.
Principle 10
Businesses should work against all forms of corruption, including extortion and bribery.

Page
P5
P13, P27
P15−−
P13, P27
P16-P17, P19-P20
P21-P24
P11, P17
P29, P30

GRI Index
GRI Elements and Indicators Page
Vision and Strategy
1.1
Statement of the organisation s vision and strategy regarding its contribution to sustainable development
1.2
Statement from the CEO describing key elements of the report
2 Profile
Organisational Profile
2.1
Name of reporting organisation
2.2
Major products and/or services, including brands if appropriate
2.3
Operational structure of the organisation
2.4
Description of major divisions, operating companies, subsidiaries, and joint ventures
2.5
Countries in which the organisation s operations are located
2.6
Nature of ownership; legal form
2.7
Nature of markets served
2.8
Scale of the reporting organisation
2.9
List of stakeholders, key attributes of each, and relationship to the reporting organisation
Report Scope
2.10
Contact person(s) for the report, including e-mail and web addresses
2.11
Reporting period (e.g., fiscal/calendar year) for information provided
2.12
Date of most recent previous report (if any).
2.13
Boundaries of report (countries/regions, products/services, divisions/facilities/joint ventures/subsidiaries) and any specific limitations on the scope
2.14
Significant changes in size, structure, ownership, or products/services that have occurred since the previous report
Basis for reporting on joint ventures, partially owned subsidiaries, leased facilities, outsourced operations, and other2.15
situations that can significantly affect comparability from period to period and/or between reporting organisations
Explanation of the nature and effect of any re-statements of information provided in earlier reports, and the reasons for such
2.16
re-statement
Report Profile
2.17
Decisions not to apply GRI principles or protocols in the preparation of the report
2.18
Criteria/definitions used in any accounting for economic, environmental, and social costs and benefits
2.19
Significant changes from previous years in the measurement methods applied to key economic, environmental, and social information
2.20
Policies and internal practices to enhance and provide assurance about the accuracy, completeness, and reliability that can be placed on the sustainability report
2.21
Policy and current practice with regard to providing independent assurance for the full report
Means by which report users can obtain additional information and reports about economic, environmental, and social
2.22
aspects of the organisation s activities, including facility-specific information (if available).
3 Governance Structure and Management Systems
Structure and Governance
3.1
Governance structure of the organisation, including major committees under the board of directors that are responsible for setting strategy and for oversight of the organisation
3.2
Percentage of the board of directors that are independent, non-executive directors
Process for determining the expertise board members need to guide the strategic direction of the organisation, including
3.3
issues related to environmental and social risks and opportunities
Board-level processes for overseeing the organisation’s identification and management of economic, environmental, and social risks and opportunities
3.4
3.5
Linkage between executive compensation and achievement of the organisation’s financial and non-financial goals (e.g., environmental performance, labour practices)
3.6
Organisational structure and key individuals responsible for oversight, implementation, and audit of economic, environmental, social, and related policies
Mission and values statements, internally developed codes of conduct or principles, and polices relevant to economic,
3.7
environmental, and social performance and the status of implementation
3.8
Mechanisms for shareholders to provide recommendations or direction to the board of directors
Stakeholder Engagement
3.9
Basis for identification and selection of major stakeholders

Page

1

35

P4, P5
P3, P4

P34
P34
−
P2
P34
P34
−
P34
−
Back Cover
P2
P2
P2
P2
P2
−
−
−
P18
P33
P33
P2

P7
P7
−
P6-P8
−
P6-P8
P6,P29P32−

3.10

Approaches to stakeholder consultation reported in terms of frequency of consultations by type and by stakeholder group

P13, P31-P32

3.11
3.12

Type of information generated by stakeholder consultations
Use of information resulting from stakeholder engagements

P31, P32
P31, P32

GRI Elements and Indicators Page
Overarching Policies and Management Systems
3.13
Explanation of whether and how the precautionary approach or principle is addressed by the organisation
3.14
Externally developed, voluntary economic, environmental, and social charters, sets of principles, or other initiatives to which the organisation subscribes or which it endorses
3.15
Principal memberships in industry and business associations, and/or national/international advocacy organisations
3.16
Policies and/or systems for managing upstream and downstream impacts
3.17
Reporting organisation s approach to managing indirect economic, environmental, and social impacts resulting from its activities
3.18
Major decisions during the reporting period regarding the location of, or changes in, operations
3.19
Programmes and procedures pertaining to economic, environmental, and social performance
3.20
Status of certification pertaining to economic, environmental, and social management systems
4 GRI Content Index
4.1
A table identifying location of each element of the GRI Report Content, by section and indicator
5 Performance Indicators
Economic Performance Indicators
Core Indicators
Customers
EC1
Net sales
Public Sector
EC10Donations to community, civil society, and other groups broken down in terms of cash and in-kind donations per type of group

Environmental Performance Indicators
Core Indicators
EnergyEN3
Direct energy use segmented by primary source
Water
EN5
Total water use
Emissions, Effluents, and Waste
EN8
Greenhouse gas emissions
EN11 Total amount of waste by type and destination
Additional Indicators
EnergyEN17 Initiatives to use renewable energy sources and to increase energy efficiency
Social Performance Indicators
Labour Practices and Decent Work
Core Indicators
Labor / Management Relations
Percentage of employees represented by independent trade union organisations or other bona fide employee
LA3
representatives broken down geographically OR percentage of employees covered by collective bargaining
agreements broken down by region /country
Training and Education
LA9
Average hours of training per year per employee by category of employee
Diversity and Opportunity
Description of equal opportunity policies or programmes, as well as monitoring systems to ensure compliance andLA10results of monitoring
Additional Indicators
Employment
LA12

Employee benefits beyond those legally mandated

Training and Education
LA16 Description of programmes to support the continued employability of employees and to manage career endings
Human Rights
Core Indicators
Strategy and Management
HR1
Description of policies, guidelines, corporate structure, and procedures to deal with all aspects of human rights relevant to operations, including monitoring mechanisms and results
HR4
Description of global policy and procedures/programmes preventing all forms of discrimination in operations, including monitoring systems and results of monitoring
Additional Indicators
Strategy and Management
HR8
Employee training on policies and practices concerning all aspects of human rights relevant to operations
SocietyCore Indicators
Bribery and Corruption
SO2
Description of the policy, procedures/management systems, and compliance mechanisms for organisations and employees addressing bribery and corruption
Political Contributions
SO3
Description of policy, procedures/management systems, and compliance mechanisms for managing political lobbying and contributions
Additional Indicators
Competition and Pricing
SO7
Description of policy, procedures /management systems, and compliance mechanisms for preventing anti-competitive behaviour
Product Responsibility
Core Indicators
Respect for Privacy
PR3
Description of policy, procedures/management systems, and compliance mechanisms for consumer privacy
Additional Indicators
Products and Services
PR8
Description of policy, procedures/management systems, and compliance mechanisms related to customer satisfaction, including results of surveys measuring customer satisfaction

Page
P8
P5
P12
−
P21
−
P6, P19-P20
P19
P35-P36

P34
P25, P27, P28

P18
P18
P18
P18

P17

P15

P14
P13,P29

P15
P14

P13, P29
P13, P29

P13

P29
P29

P29

P13

P6, P3136

Tokio Kaijo & Nichido Building Shinkan 9F, 1-2-1 Marunouchi, Chiyoda-ku, Tokyo, 100-0005, Japan
Tel. +81-3-6212-3333 Fax. +81-3-6212-3711“Millea Group CSR Report 2005” Uses FSC Certified Paper
The FSC Paper used in this report is sourced from paper products
taken from forests that have been properly managed and raised
through the cycle of “Planting”, “Nursing” and “Harvesting”. Forest
development has taken place with full consideration paid tosurrounding ecosystems. Environmentally friendly “FSC Certified
Paper” was adopted for use in this report out of a desire to support
the protection of forests, which provide a wide range of benefits, suchas the absorption of CO 2.

This printed matter has been printed with FSC
certified paper using Soy ink (100% vegetable oil)
and waterless printing methods at an ISO14001
certified factory. Furthermore, printing is done by
CTP leading to resource efficiency (filmless).

Cert no. SA-COC-1210