SUSTAINABILITY

JER recognizes that efforts to create a sustainable society are an important issue, and is taking the following initiatives to achieve the Sustainable
Development Goals (SDGs) adopted at the UN Summit in September 2015.

Initiatives through Business Activities
JER aims to achieve the SDGs by providing safety and security to support
the lives of those affected by earthquake disasters through the operation ofits earthquake insurance system, as the only company underwriting earthquake reinsurance on dwelling risks in Japan.
In recent years, Japan has experienced frequent natural disasters such as earthquakes,typhoons, and torrential rains. Mean while, the probability of a major earthquake in thenear future, such as an earthquake directly under the Tokyo metropolitan area or the Nankai
Trough, is increasing. Therefore, JER will contribute to the reconstruction of the lives of disaster victims by developing a system that enables prompt and reliable reinsurance paymentseven when disasters and infectious diseases occur simultaneously.
JER will also promote understanding of earthquake insurance as a means to support thereconstruction of people’s lives after a disaster, and will use its extensive database to provide
useful information on disaster prevention and disaster mitigation. Through these such efforts
to increase the earthquake insurance take-up ratio and to contribute to disaster prevention
and disaster mitigation, JER will help build “Sustainable Cities and Communities.”

Promotingunderstanding ofearthquake insurance

Establishinga prompt payment
system in the event of
a complex disaster

Increasing in theearthquake insurance
take-up ratio

Rapidly rebuilding the lives ofdisaster victims

23Japan Earthquake Reinsurance Co., Ltd. Annual Report 2023

Providing information
useful for disasterprevention andmitigation

Encouraging ofdisaster prevention
and mitigation efforts

Providing lectures at earthquake insurance seminars heldby Independent Insurance Agents
JER Managing Director Motomi Ikeda lectured about earthquake
insurance at seminars held by the Independent Insurance Agentsof Okinawa and by the Independent Insurance Agents of Iwate.
In addition to giving a general explanation of earthquake insurance, Managing Director Ikeda described why the earthquake
insurance scheme has become what it is today (its developmentfrom its establishment up to today) and how the government isinvolved in reinsurance to ensure the strength of the scheme andto enable agents to confidently offer insurance products to customers. He gave some examples related to the Great East Japan
Earthquake.

Sending employees to universities to lecture
JER sends employees to universities to lecture about earthquake
insurance to promote people’s understanding of the earthquake
insurance scheme. In FY2022, JER lecturers provided lectures
to students enrolled in courses related to non-life insurance atfour universities: Hokkaido University, Tohoku University, Nagoya
University and Osaka University. They provided an overview ofthe earthquake insurance scheme, reinsurance mechanisms, and the roles of the government,
non-life insurance companies and JER in earthquake insurance using charts.

Beginning the distribution of videos about earthquake
insurance
JER has created an official channel on YouTube, a video sharing platform, and started to sharevideos about earthquake insurance. Shin-kun, a fifth grade boy, and his older sister, Chiichan, appear in videos. They learnthat earthquakes can occur anywhere and that insurance benefits
are helpful for rebuilding lives. Theyemphasize the importance of taking out earthquake insurance before
earthquakes occur.

Japan Earthquake Reinsurance Co., Ltd. Annual Report 2023

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ESG Investment
In light of the public nature as an earthquake reinsurance company, JER aims togenerate investment income and solve social issues at the same time. JER engages
in environmental, social and governance(ESG) investment to provide funds to better companies and businesses using environmental and social criteria. JER chooses investee companies based on thecomprehensive assessment of the companies. In addition tofinancial information, JER considers companies’ ESG practices, particularly their handling of environmental and social
issues.
Through constructive dialogue with its investee companies,
JER encourages the companies to take specific measures,including climate change measures and earthquake countermeasures. JER also asks for their understanding of andsupport for the promotion of earthquake insurance. In
FY2022, JER cooperated in the creation of an article about
the importance of enrolling in earthquake insurance published in the Aichi Disaster Prevention Newsletter (No. 19)
published by the Aichi prefectural government.
The table below shows the number of investments made by
JER in SDG bonds (bonds compliant with the International
Capital Market Association (ICMA)’s Green Bond Principles,
Social Bond Principles, Sustainability Bond Guidelines, Sustainability-Linked Bond Guidelines and Climate Transition
Finance Handbook whose proceeds are used for projects
that will contribute to the achievement of the SDGs). The
number of investments in FY2022 declined because JER reduced its investments in securities
due to an increase in insurance proceeds paid. However, JER has been investing more than
10% of its investments in securities in SDG bonds since FY2020.

Investments (number of investments) in SDG bonds

25FY2020

FY2021

FY2022

Green Bonds

557

Social Bonds

1523

5

Sustainability Bonds

577

Sustainability Linked Bonds-22Total

253721

Japan Earthquake Reinsurance Co., Ltd. Annual Report 2023

Promoting Diversity and Inclusion
JER acts to enable employees with diverse values to have job satisfaction and fully demonstrate their capabilities.
Work style reforms
JER enabled employees to have more flexible work styles by allowing all employees to work
remotely or have staggered work hours and issuing them thin client terminals and smartphones.
During the 6th Medium-Term Management Plan, JER is reviewing internal operations to savetime and increase productivity. JER has introduced a video learning service to help employees
develop their skills and grow.
Promoting women’s active participation
JER formulated a general employer action plan under the Act on the Promotion of Female Participation and Career Advancement in the Workplacein April 2021 and has been implementing the plan.
None of JER’s line managers were women in FY2021. Now, 18.2% of linemanagers are women.
In July 2022, JER achieved the highest, three-star, Eruboshi certification
program rating. The Eruboshi certification is given by the Minister ofHealth, Labour and Welfare to companies with excellent conditions for thepromotion of women.
Encouraging male employees to take childcare leave
JER has declared that 100% of its eligible male employees will take childcare leave and it is encouraging them to take childcare leave.
JER introduced a month of special paid leave in FY2023. In addition toleave, JER encourages employees to work remotely and works to create anenvironment where employees can balance work and childcare.
Diversity education
In FY2022, JER provided Ikuboss training
for managers and diversity training for all
officers and employees. Through training,
JER worked to deepen understanding ofwork styles suited to the different stages oflife that people experience. LGBTQ people
held a lecture to promote understanding ofdiversity.

Japan Earthquake Reinsurance Co., Ltd. Annual Report 202326

Responding to Climate Change
JER approaches its environmental conservation activities by operating an environmental
management system under its Environmental Policy. JER has identified (1) appropriate useof electricity, (2) appropriate use of paper, and (3) appropriate disposal of waste as priority management items, and is pursuing a number of measures to reduce its environmental
impact. Specifically, we are working on energy conservation, resource conservation and recycling of resources by promoting paperless operations, reducing the amount of copier paper
used, saving electricity, and promoting green purchasing.
JER also introduced Toyota Motor Corporation’s new fuel cell vehicle (FCV), the Mirai, in July
2021. Mirai has been is called the “ultimate eco-car” because it does not emit carbon dioxide,a cause of global warming, and because it runs on a motor powered by a “fuel cell” that useshydrogen as fuel and generates electricity through a scientific reaction
with oxygen in the air.
JER began measuring greenhouse gas emissions in FY2021 in orderto understand the environmental impact of its business activities. We
will continue our efforts to realize a low-carbon society by curbing and reducing greenhousegas emissions. We will also contribute to achieving the goals of the SDGs through our environmental conservation activities.

Contributing to Local Communities and Society
Volunteer activities
JER participates in Hanasaku Machikado Volunteers in Chuo-ku and plants and grows plants
in a flowerbed in front of the head office. JER contributes to thecreation of beautiful, clean streets with flowers and greenery.
JER has a volunteer leave system that enables employees to take amonth of leave maximum to conduct social contribution activities.
Encouraging the acquisition of disaster prevention expert
qualifications
JER encourages employees to acquire disaster prevention expert qualifications to develop
personnel who are conversant in disaster prevention and crisis management and thereby enhance its ability to handle contingencies as an earthquake reinsurance company and to contribute to improving society’s disaster prevention capabilities as an entity engaging in local
disaster prevention. Approximately 60% of all officers and employees have acquired disasterprevention expert qualifications.

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Japan Earthquake Reinsurance Co., Ltd. Annual Report 2023