Responsible Investment
Report 2021

1

Table of Contents

1. Message from the
President---2

2. Main Initiatives of
Responsible Investment
Activities---3

3. Our Role as a
Responsible Investor---4

4. Basic Policy on ESG
Investments---5

5. Our Approach for
Responsible Investment---7

6. Our Framework for
Responsible Investment---8

7. Highlights---10

8. ESG Investment Report

Our History for ESG Investment and2020 Review

ESG-themed investment
ESG integration

9. Report on Stewardship
Activities









Basic approach and processes
Our History for stewardship
activities and Review
Examples of engagements
Policy for FY2021
Voting Policy and Voting records
Self-evaluation and evaluation byothersMessage from the General
Manager of the Responsible
Investment Dept.
Reference (Glossary)

---15

---35

1. Message from the President

2

Message from the President
We seek to solve climate change and other sustainability issues through responsible
investments for the well-being of all present and future generations
In March 2021, the Dai-ichi Life Group announced the new Re-connect Medium-term Management Plan from the current fiscal year to 2023. Re-connect incorporates our passion

to connect all of our stakeholders in better ways through business, from our shareholders and other investors to our business partners and employees. As Dai-ichi Life Grouppursues Re-connect, finding harmony with society and the global environment is essential. The Dai-ichi Life Group will engage in sustainability initiatives as one key aspect ofmanagement strategy.

For the well-being of all present and future generations
We revised our Group vision to “Protect and improve the well-being of all” when formulating this new medium-term management plan. “Well-being” refers to living a happy andhealthy life with peace of mind and prosperity. Re-connect incorporates this desire to contribute to the well-being of all present and future generations. A life insurance company
receives premiums from life insurance policyholders and transfers insurance claims to their children’s generation. In other words, the job of a life insurance business is to bridge andconnect the present generation with the next generation. I believe the greatest stakeholders of the Dai -ichi Life Group are our children and those to come in future generations.
However, conventional economic growth models have stagnated in the modern world. Numerous social challenges have arisen from climate change, conservation of biodiversity,and a social divide driven by economic disparity. French Author Antoine De Saint-Exupery once said, "We do not inherit the earth from our parents, we borrow it from our children."
These words ring true. We must not pass down the cost of growth in our generation to our children’s generation. I believe sus tainability initiatives are an important responsibility for
the well-being of present and future generations as well as a sustainable society anticipating the next century.

Initiatives to combat climate change
The response to climate change is one of the most important challenges the world faces among many other social issues. Even as thenovel coronavirus infection continues to spread, concerns about climate change around the world are at an all-time high. In 2020, theJapanese government committed to becoming carbon neutral by 2050, taking a large turn toward decarbonization throughout Japan.

Many other countries also showed a transition to stronger decarbonization efforts globally for the 2021 United Nations Climate Change
Conference (COP26) to be held in November. As the core operating company of our Group and a universal owner that manages broad,long-term assets of roughly JPY 38 trillion entrusted to us by our policyholders, Dai-ichi Life positions ESG investments as one mainstay ofasset management and has promoted initiatives to address climate change and a broad range of other social issues. In February 2021,
Dai-ichi Life became the first Asian institutional investor to join the Net -Zero Asset Owner Alliance, an international initiative in which
institutional investors aim to transition to carbon neutral portfolios by 2050. We have set targets to reduce the greenhouse gas emissionsof our listed equities, corporate bonds, and real estate portfolios 25% by 2025. I hope these targets will work to overcome these issues
and transition us to a low-carbon society through engagement encouraging corporate transformation as well as active financial support,such as technological innovation and infrastructure investments, while working more closely with portfolio companies.

Together with our stakeholders
This “Responsible Investment Report” is published to inform all of our stakeholders, including policyholders, shareholders, clients, and local
communities, about our commitment to responsibly investing in the assets of our life insurance company as well as our concret e efforts. To
realize a sustainable society, we will continue to work with our stakeholders to contribute to solving social issues through our ESG

investment and stewardship activities.

Seiji Inagaki,
President andRepresentative Director

２. Main Initiatives of Responsible Investment Activities

3

Our Initiatives of Responsible Investment Activities
Commit to realize carbon neutrality of investment portfolio by
2050 and set mid-term greenhouse gas (GHG) emission

Support corporate initiatives to build a sustainable society
 Set important issues as themes of engagement according to theexternal social environment, such as coronavirus and climate

reduction goals

change initiatives and more effective corporate governance Reduce GHG emissions 25% in listed equities, corporate bonds,
and real estate by 2025 (compared to March, 2020)

 Support initiatives to combat climate change at investee
companies through engagement

Participate in cooperative engagement through initiatives
 Participate in cooperative engagement through Institutional
Investors Collective Engagement Forum, Life Insurance Associationof Japan Working Group, and other such opportunities as aneffort to enhance effectiveness of engagement activities

25% Reduction

Carbonneutralby 2050

Approx.
6.64 million
tCO2e

2020

To realize
carbon Stewardshipneutrality activities

2025

Expand ESG–themed investment
and positive impact
Approx. JPY 940 billion: ESG-themed investments
Approx. JPY 390 billion: Investments inclimate change solutions

ESG-themed
investments Participationand in global
integration initiatives

First Japan member of Net-Zero AOA*Net-Zero Asset Owner Alliance is an initiative ofglobal institutional investors aiming to realize netzero of investment portfolios by 2050

Approx. 800,000 tons: Avoided GHG emissions

Enhance sophistication of ESG integration
 Refine ESG integration in research, incorporate ESG
factors as part of the real estate investment criteria, etc.

Only Asian company selected as a member of the

GFANZ CEO Principals Group*Glasgow Financial Alliance for Net Zero (GFANZ) is a strategic forum aiming todecarbonize the entire financial industry by integrating net-zero initiatives in thefinancial industry.

4

3. Our Role as Responsible Investor

Our Role as a Responsible Investor
 With customers throughout Japan, Dai-ichi Life, as a responsible investor which hold multi asset class in
our portfolio, believes it is essential to pursue investment strategy & management for caring various
stakeholders.
 The life insurance business that the company carries out is seen as critical work for protecting the next
generation as the bridge between the present and the future. In this context, we view that the next
generation is our largest stakeholder and that our mission is to ensure a sustainable future for them.
 We aim to generate mid- to long-term investment returns and realize a sustainable society by promoting
responsible investment (ESG investment and stewardship activities) as one of the priorities of thecompany whose mission is “By your side, for life.”

ESG investments
Localcommunities

Futuregenerations

Policyholders
Insurance
claimsInsurance
premiums

Insurance
claimsDai-ichiLife

Investment/
financing
portfolio

Universal
owner・National andlocal
governments
・Companies
・Real estate,etc.

Total assets:
About ¥36 trillion

Shareholders

Stewardship
activities

Realization of asustainable society
Both generating
investment returns
and solving social
issues4. Basic Policy on ESG Investments

5

Basic Policy on ESG Investments
 From a medium- to long-term standpoint as an asset owner of a wide range of assets, Dai-ichi Life has
positioned ESG investment as a pillar of its asset management and aims to both generate investment returns andsolve social issues.
 To promote ESG investment in “the Dai-ichi Life way,” the Company takes initiatives with a focus on “creating a
positive impact” and “engagement.”

Incorporating
ESG factors ininvestment
processes

Incorporate ESG factors in investment policies and processes for all assets(Target completion by or before fiscal year 2023)••

Aim to build a portfolio for both generating returns on investments and solving social issues.
Incorporate ESG factors into investment policies , investment process and internal ratings in all
assets to make investment decisions considering climate change and other ESG factors

Create a positive impacts on society by investments that contribute to solving social issues(At least double the cumulative investment amount by fiscal year 2023)

Investing insolutions to social
issues•Actively invest in institutions and projects striving to promote businesses mitigating climate change
and contributing to the achievement of the SDG goals•

Expand investments in growth and venture companies to create innovation (impact investments)•

Strengthen disclosure by establishing methods to monitor social impact

Support corporate initiatives to solve social issues through engagement withinvestee companies
Engaging in
stewardship
activities•

Disclose information and propose solutions according to ESG challenges of investee companies•

Promote climate change initiatives and advocate disclosure climate risks/opportunities•

Actively participate in collective engagement groups and other initiatives to drive the positive impact
on investee companies as well as society as a whole•

Properly execute voting rights taking into account engagement activities working closely withinvestee companies on challenges which differ at each stage of growth.

4. Basic Policy on ESG Investment

6

Investments for Solving Social Issues
 Cumulative total amount of investment (mainly for QOL improvement, mitigation of climate change, andregional development and revitalization) reached approx. ¥800 billion as of the end of FY2020
 We will at least double the investment amount by FY2023 based on the end of fiscal year 2019 forcreating further positive impact on society
Unit: ¥ trillions

1.4

At least
double as ofthe end of
FY 2023

Cumulative investment amount

1.2
Approx. ¥800
billion as ofthe end of FY
2020

1.0

0.8

Approx. ¥550
billion as ofthe end of FY
2019

0.6
0.4
0.2

0.0
2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

7

5. Our Approach for Responsible Investment

Our Approach for Responsible Investment
Stewardship Activities

ESG investment
ESGテーマ型投資
ESG-themed
investment
We makeinvestments in a
ESGの課題解決に繋がるテー
wideマを持つ資産に幅広く投資を
variety of assets that
have行うことで、投資リターンの獲得
ESG themes leading tosolvingissues, to aim forと社会課題解決の両立を目指
bothします。
obtaining investment
returns and solving social
issues.

ESG
integration
ESG

インテグレーション

With the ESG factors
systematically incorporated
intoESG要素を体系的に投資プロ
the investment
セスに組込むことで、中長期的
process,
we aim for
な投資リターンの向上と社会課
improving mid to long term
題解決への貢献を目指します。
investment
returns andmakingEngagements(Dialogues)

Exercising voting
rights

We closely examine the bills
Based on the Stewardshipof the shareholders‘ general
Code and Corporate
Governance Code, we engage meetings to make judgments
in constructive dialogues with for approval or disapproval
investee companies to facilitate based on the details of theengagements. This is also intheir sustainable growth andaccordance with theconsequently to aim for the
standards for exercising
improvement of mid to longvoting rights established interm investment returns.
terms of raising thecorporate value of theinvestee companies, andenhancing their sustainablegrowth.

P.27～

P.17～

From p. 21

From p. 31

From p. 36

From p. 53

6. Our Framework for Responsible Investment

8

Our Framework for Responsible Investment
 We formulate policies of responsible investment through deliberations at the Responsible Investment Committee of which
the majority of its members are external members. Matters of particular importance are also reported to the Board of
Directors and Management Meeting.
 We promote efforts in the entire investment department through activities including progress follow-ups and holding
discussions at the Responsible Investment Meeting comprised of members engaged in responsible investment. We analyze
the annual assessment results for the Principles for Responsible Investment (PRI) to raise the level of our efforts based on
global standards.
 We continuously seek to enhance the sophistication of our framework, which has included appointing ESG analysts fromfiscal year 2020 to carry out cross-asset ESG analyses.

Board of directors
Management meeting
Reporting on activities such as revising important policies, exercising
voting rights, and engaging in dialogues

Responsible Investment Committee

External committee members: 3
internal committee members: 2

Main agenda: deliberations on responsible investment-related policies and important bills for which
voting rights are exercised
ReportingResponsible Investment Meeting
Main agenda: formulating responsible investment-related policies, looking back at PRI assessment,
following up on the progress of individual efforts
Sharing global trends, etc. forresponsible investment

Receivingassessment
results

Effort results / progress report

Investment department

ESG investment

Responsible
Investment

Stewardship Activities

Providingannualreports

Formulated in 2006. Global
standards for responsible
investment.
Advocated incorporating
ESG issues into investment
decisions, in order toachieve a sustainable
society.

6. Our Framework for Responsible Investment

9

System of Responsible Investment: Our Responsible Investment Governance Committee
 The majority of the members of the Responsible Investment Committee are external experts with plenty of specialized
knowledge regarding business strategies, governances, ESG investment, etc., enabling a system that reflects a wide variety
of external opinions in the Committee.
 In addition to external experts, officers in charge of compliance are added to the committee members, and therefore
deliberations and confirmations are made for important policies regarding responsible investment and important exercisingof voting rights, etc. These are based on the perspectives regarding management for conflicts of interest with life insurance
contracts.

Committee members
Attendance /No. of meetings

Name / title

Internal Committee
members

Kazuyuki Shigemoto

External Committee members

Tetsuya Hishida

Meetings

4 times/
4 times

Chairperson
Executive Officer in charge of
Responsible Investment Dept.

Director, Managing Executive
Officer in charge of ComplianceControl Dept.

Haruka Matsuyama
Attorney at Law and Partner
Hibiya Park Law Offices

Kikuo Kuroiwa
President
Kuroiwa Associates(As of September 2021)

PeriodMain deliberation agenda/reported matters

July 2020• Exercise of voting rights on important resolutions*

September 2020

Ichiro Okamoto

Partner / Auditor
Industrial Growth Platform,<July 2020 to June 2021>

Inc.

4 times/
4 times

4 times/
4 times

4 times/
4 times

4 times/
4 times• Management of exercising voting rights taking into
account COVID-19 pandemic• Revision of standards for nominating directors,
auditors and other executives at companies that werecauses of scandal• Stewardship Activity Report 2019
• 2019 PRI assessment results• Announcement of Responsible Investment Report
2020

March 2021

• Revision of standards for exercising voting rights• Exercise of voting rights on important resolutions*

June 2021• Exercise of voting rights on important resolutions*• Management of exercising voting rights taking into
account COVID-19 pandemic• Formulation and announcement of Responsible
Investment Policies 2021
• Setting of targets to reduce CO2 emissions in our
portfolios*Verified there were no problems with exercise of judgment
at departments responsible for managing conflicts of interest7. Highlights

10

Highlights - As a Responsible Institutional Investor Assets Under Management

EquityAbout ¥

Other

Real EstateOpen foreignbonds

38 trillion

Cash and cash
equivalents.

4%
3% 3%
5%

10%

Compositionof assets

7%

Loan
19%

49%

Public &corporate bonds

Hedgedforeignbonds* As of
August 2021

ESG-themed investment
Investment
amount940

About ¥
billionInvestments in Climate
Change Solutions390

About ¥
billionSDGs bonds

SDGs projects

About ¥
billion

About ¥
billion360

Impact investment

30

About ¥
billion390

Regional development

160

About ¥
billion* As of March 2021

Engagements
Number of companies
engaged in dialogues

248

Rate of interviews with
Executives

About

companies

63%* FY2020

Ratio of companies engaged in dialogues in JapaneseEquities portfolio
Accumulated
for 3 years

About

86%

FY2020About

58%(based on market value)7. Highlights

11

Highlight – Promotion of Investments to Solve Social Issues
 We strive to create a positive impact by investing in assets that contribute to solving social issues.
 Avoided GHG emissions from investment of green infrastructure projects were 800,000 tons, equivalent to
12% of emissions from our portfolios (listed equities, corporate bonds, and real estate).

Investment Theme

Relevant SDGs

Cumulative Total

Climate change action

Approx.
JPY 390 billion

Better QOL

Approx.
JPY 310 billion

Regional development
and revitalization

Approx.
JPY 160 billion

合計：約3,860億円

Sustainability of natural capital

Approx.
JPY 30 billion

Respect of human rights
and promotion of diversity

Approx.
JPY 10 billion

Positive impact
of investments

Avoided GHG emissions

Approx.

800,000 tons

Impact of projects already disclosed under the theme of climate change
action, such as renewable energy businesses and green bonds (*)

People benefited in emerging nations

Approx.

500,000 people

Impact of microfinancing, agricultural support, andpower supply projects already disclosed in emerging nations*The avoided GHG by investment of renewable power generation businesses is calculated using the PCAF concept. The PCAF is an international initiative developing methods tomeasure and calculate GHG emissions in investment and financing portfolios.

7. Highlights

12

Highlight – GHG Emission Reduction Targets of Investment Portfolios
 We have positioned solutions to climate change as the highest priority issue for responsible investment. Dai-ichi
Life joined the Net-Zero Asset Owner Alliance in February 2021 as the first member in Japan and has made apublic commitment to transition to carbon neutral investment portfolios by 2050.
 We have set a target to cut GHG emissions 25% (compared to March, 2020) in listed equities, corporate bonds,
and real estate by 2025 and have analyzed the GHG emissions of our portfolios in accordance with the TCFD
guidance.
 Total GHG emissions and reduction targets oflisted equity, corporate bond, and real estate portfolios

Foreincorporate
bonds
11%

25% reduction

Approx.
6.64
milliontCO2e

Carbonneutral by
2050
（All
Investment
portfolios)

(*1)

2020

 State of portfolio GHG emissions
CO2 emissions of listed equities,
corporate bonds, and real estate (breakdown)2025 Net-Zero Asset Owner Alliance• International initiative of
institutional investors aiming totransition portfolios to net-zero
GHG emissions by 2050
• 42 global insurance companies,
pensions funds and otherinstitutions are members who
manage over USD 6.6 trillion (as of
May 2021) in total

Real estate 2%

Approx.
6.64
MilliontCO2e
Japanese
corporatebonds…

Japanese
equities
38%

Foreignequities
5%

Weighted Average Carbon Intensity (WACI)(Value calculated by multiplying the carbon-to-revenue intensityof each company by the holding ratio)（tCO2e/million yen）

3.5 Portfolio Market indexes
(*2)
3.0
2.4
2.5
2.0
1.1
1.5
1.0
1.9
0.5
0.8
0.0
Japanese
equities(*1) Total value of Scope 1 and Scope 2 emissions from listed equities, corporate bonds, and real estate as of March 31, 2020 .
(*2) Uses the TOPIX, MSCI ACWI ex-Japan, S&P Japan Corporate Bond Index, and S&P International Corporate Bond Index as the market indexes.

Foreignequities

3.3

2.1
2.3

Japanese
corporate
bonds

1.5
Foreigncorporatebonds

7. Highlights

13

Highlight -Initiatives to Realize Carbon Neutrality  We set mid-term reduction targets every five years aligned to the Net-Zero Asset Owner Alliance Target Setting
Protocol to achieve carbon neutral in investment portfolios by 2050, while monitoring progress and working to
expand assets subject to these targets.
 We also support the initiatives of investee companies through engagement as well as further contributions
toward a low-carbon society and innovation through broader investment and financing in solutions that contributeto mitigating climate change.
2025

Up to 2021

Engagementtargets
Targets bysectorSetting of mid-termtarget for listed
equities, corporate
bonds and real estate(25% reduction by
2025)

Selection of 50
companies with themost emissions andprioritize engagement

Climate change solutions
Investments: JPY 320 billion

Transition
targets

Avoided GHG emissions
through investment:
800,000 tons

Monitor progress toward targets/set mid-term targets after 2025

25％
Reduction

Expand assets subject to mid-term targets(Sovereign bounds, corporate loan, funds, etc.)

Encourage investee companies through engagement
to take initiative in setting and achieving GHG
reduction targets
Set reduction sector targets,
focusing on sectors with large GHG emissions

Expand investment to shift to a low-carbon society
through transition financing, impact investment, andgreen bonds and renewable power generation
projects

Set five-year
mid-term
targets

Achieve net-zero investment portfolios

GHG
reduction
targets//2050

7. Highlights

14

Highlight – Participating in initiativesClimate change-related

Participating since Sep. 2018
First by Japaneselife insurancecompany

Participating since Aug. 2019

Participating since Feb, 2021 Participating since Apr, 2021

First by Japaneselife insurancecompanyFirst by Japaneselife insurancecompany

Task force established in
December 2015 by the
Financial Stability Board(FSB) at the request of theG20. Publishedrecommendations thatencourage knowing climatechange-related
opportunities and risks anddisclosing suchinformation.

An initiative of institutional
investors that carries out
constructive dialogues
regarding emissions
reduction efforts andinformation disclosure withcompanies that are large
emitters of greenhousegases.

An international initiativein which institutional
investors aim totransition to portfolios
with net-zero greenhousegas emissions by 2050.
*Dai-ichi life pays annual
membership fee of
20,000 EUR.

Participating since Sep. 2018

Participating since Sep. 2019

Evaluates the top 20 global
pharmaceutical companies
to improve access topharmaceuticals indeveloping countries. Its
purpose is to help improveaccess to pharmaceuticals
by incorporating indices into
institutional investors’
investment decisions.

An initiative that aims to
improve effective standardsof corporate governanceand investor stewardship toadvance efficient markets
and sustainable economic
development worldwide.

Involved withestablishment

Participating since Nov. 2015

First by Japaneselife insurancecompany

A strategic forum
bringing together theleading net-zero
initiatives across thefinancial sector.

Formulated in October
2011, these action
guidelines for financial
institutions are designed toencourage actions forcreating a sustainable
society.

Launched in 2006, thePrinciples for Responsible
Investment advocates
incorporating ESG issues
into investment processes
to realize a sustainable
society.

Participating since Nov. 2019

Participating since Mar. 2020

Participating since May 2020

Participating since Jul. 2020

First by Japaneselife insurancecompanyFirst by Japaneselife insurancecompany

Involved withestablishment

First by Japaneselife insurancecompanyFirst by Japaneselife insurancecompany

Participating since 2011

An initiative established forexchanging opinions onpractical issues, sharing
information, and reviewing
measures between asset
owners and industry
participants, including asset
management institutions,on a cross-industry basis.

Forum established in 2017
to support collaborative
engagements byinstitutional investors.

Japan
Investor GroupFirst by Japaneselife insurancecompany

Established in 2019, thisgroup of institutional
investors aims to promote
gender diversity to raise
mid- to long-term corporate
value.

First by Japaneselife insurancecompany

An independent and nonprofit organization
established in the UnitedStates in 2011 that
formulates ESG information
disclosure standards.

15

Table of Contents

1. Message from the
President---2

2. Main Initiatives of
Responsible Investment
Activities---3

3. Our Role as a
Responsible Investor---4

4. Basic Policy on ESG
Investments---5

5. Our Approach for
Responsible Investment---7

6. Our Framework for
Responsible Investment---8

7. Highlights---10

8. ESG Investment Report

Our History for ESG Investment and2020 Review

ESG-themed investment
ESG integration

9. Report on Stewardship
Activities









Basic approach and processes
Our History for stewardship
activities and Review
Examples of engagements
Policy for FY2021
Voting Policy and Voting records
Self-evaluation and evaluation byothersMessage from the General
Manager of the Responsible
Investment Dept.
Reference (Glossary)

---15

---35

８. ESG Investment Report

16

Our History for ESG Investment and 2020 Review
 In fiscal year 2020, we have worked to enhance the sophistication of ESG integration, such as introducing ESG
index as the benchmark for foreign equities investments and incorporating climate change and waste plastic
issues in ESG research.
 Since we have set the climate change as the priority theme of responsible investment, we have invested in assetsthat contribute to solve climate change issues.

Fiscal year
Investment
Policy・Framework

Investment execution
according to project

Systemimprovement

2010

2015

2013

2014

2016

Expanding the rangeDeepening ofof initiatives
initiatives

2017

2018

Further improve
effectiveness

Regularization of
integration

2019

2020

Formulation of ESG Investment Policy
SignedPRI

ESG Analyst

Responsible Investment Dept

Responsible Investment Committee（Responsible Investment Meeting）

Investments for SDGs businesses related to renewable energy power plants, etc.

ESG-themed
investment

Investments in SDGs bonds issued by multilateral development banks, etc.

Strengthen ofclimate change
initiatives

Impact investment

Diversification of
Investment method

Sophistication on
impact monitoring

Contributing to regional revitalization
Incorporate
climate change

Japanese equities ESG managed in-house

ESG
integration

Incorporate ESG factors
into research process

ESG engagement
Negative screening
PromoteForeign equities ESG
managed in-house
Strengthen of climatechange initiatives

Coal・Weapon added
Responsible Investment
PolicyImplementationof ESG Index
Enhancement of
ESG analysis

Expansion ofassetsOil・Gas added

８. ESG Investment Report

17

Responsible Investment Policy 2021
ESG integration
Incorporating ESG factors into
investment processes for all assets(Aiming for completion in FY2023)

ESG-themed investment
Enhancement of investments aimed at
resolving important social issues

Basic Policy(At least doubling of total investment amount by
FY2023 compared to FY2019)

 Active promotion of investment tofacilitate resolving social issues

 Policy development for incorporating ESG
into all assetsIn FY2020, ESG analysis has been reflected tointernal credit ratings for sovereign bond
Further, ESG index has been introduced as thebenchmarks for foreign equity
Moving foward, consideration/execution of expanded
adoption of the ESG index in benchmarks,
sophistication of reflecting ESG elements in externallyconsigned assets, etc.

 Further strengthening of ESG researchIn FY2020, the strengthening of a structure for crossasset ESG analysis by appointing ESG analysts toanalyze climate change and the issue of plastic waste
The sophistication of corporate evaluations throughevaluation method related to new ESG issues(improvement of sustainability of natural capital andthe respect for human rights and promotion ofdiversity) as well as incorporation into research, andthe strengthening of partnerships between ESG
analysts and front analysts in various operations

Actively investing in themes that contribute toresponding to new ESG issues, the key themes in
the Company's ESG investment, and therealization of "Protect and improve the well-beingof all," the Company group's new vision
Improvemen
t of qualityof life
Improvement ofsustainability ofnatural capital

Easing ofclimatechangeNEW

Regional
revitalizationRespect for humanrights, promotion ofdiversity

In addition to investment in SDG bonds and SDG
businesses, active efforts toward investment ingrowth companies/startups aimed at the creation of
innovation (impact investment)

Active promotion of "transition finance," which
supports initiatives aimed at decarbonization

No longer invest in new fossil fuels power plants(includes coal, petroleum, and gas*)*Petroleum and gas were added from FY2021

8. ESG Investment Report

18

Signification and Process of Identifying ESG Materiality
 As an responsible investor, Dai-ichi Life scrutinizes important ESG issues of portfolio companies across various
industries, business categories and regions, knowing it is necessary to reflect these in investment processes.
 We identified priority ESG issues from the many ESG challenges, and promote incorporation in investment
process, such as investment decisions, priority of ESG themed investments as well as stewardship activities.

Materiality matrix

Steps to identify ESG materiality
STEP２

Identifysocialissues

Evaluate
importance

Extract 50(*)
targets from the
169 SDGs

Evaluate importanceby significance tosocial impact andsignificance toinvestment as an
institutional investor

STEP３

Selectpriority
ESG issues

Map materiality
matrix(*) Dai-ichi Life HD’s materiality

Reasons for selecting critical and priority ESG issues

Social significance

STEP1

 Mitigate climate change Enhance
governance 気候変動の緩和

 ガバナンスの向上
critical
ESG issues
 Better QOL
 Regional development and revitalization
 Respect of human rights and diversity
 Improve sustainability of natural capital

Priority ESG issues

Evaluate 50 social issues(*)
Significance to investment as an institutional investor

Materiality

Main reason for selection

Mitigate climate change

We regard climate change as a serious global issue with a huge environmental and social impact. As an institutional investor, we believe therisks / opportunities can affect the value of investee companies.

Strengthen governanceAs exemplified by the revisions to Japan’s Corporate Governance Code in June 2021, each board of directors is required to fulfill their duties andsecure diversity. We know enhancing governance directly connects to heightening medium - to long-term corporate value.

Better QOL

Better QOL is related to the Dai-ichi Life HD’s materiality (safety in old age/health promotion), and we see Japan’s super-aging society as ahigh-priority issue.

Regional development andrevitalization

Regional development and revitalization relate to Dai-ichi Life HD’s materiality (building safe and secure places to live) and see the aging society
with a low birthrate and dwindling population in Japan as a high-priority issue.

Respect of human rights andpromotion of diversity

Japan announced the National Action Plan on Business and Human Rights in Oct. 2020, while most European countries made human rights due
diligence mandatory. Respect for human rights and diversity promotion are high-priority issues to society, and also enhance corporate value.

Improve sustainabilityof natural capital

Damage to biodiversity and other natural resources has become a serious issue. With the launch of the Taskforce on Nature-related Financial
Disclosures (TNFD), investors consider the impact caused by the sustainability of natural resources a high-priority for corporate value.

19

Table of Contents

1. Message from the
President---2

2. Main Initiatives of
Responsible Investment
Activities---3

3. Our Role as a
Responsible Investor---4

4. Basic Policy on ESG
Investments---5

5. Our Approach for
Responsible Investment---7

6. Our Framework for
Responsible Investment---8

7. Highlights---10

8. ESG Investment Report

Our History for ESG Investment
and 2020 Review
ESG-themed investment
ESG integration

9. Report on Stewardship
Activities









---15

Basic approach and processes
Our History for stewardship
activities and Review
Examples of engagements
Policy for FY2021
Voting Policy and Voting records
Self-evaluation and evaluation byothersMessage from the General
Manager of the Responsible
Investment Dept.
Reference (Glossary)---35

8. ESG Investment Report

20(Reference) Our Definitions of ESG Investment Method
ESG Investment Method

ESG-Themed Investment

Definitions
Investment in fields that help resolve social issues premised on secure
investment returns(Climate Change Solution Investments :Of the above, investments that
contribute to solving climate change issues)

Investment and Financing
for SDGs Bonds, etc.

Funding for international organizations and companies promoting businesses
that contribute to achieving SDGs
(Green, social, sustainability bonds, etc.)

Investment and Financing
for SDGs Businesses

Funding for businesses that contribute to achieving SDGs (social
infrastructure development, environment preservation, etc.)

Impact Investment

An investment method in which decisions for investments are made while
intending to both obtain income from investments and create a social impact(structural changes to society, etc.)

ESG Integration

Systematic integration of ESG factors into the investment process

Integration into
Research

Systematic integration of ESG factors into analysis and evaluation performedby the Company

Positive Screening

Building a portfolio comprised of companies with high ESG ratings

Negative Screening

Excluding certain uses of funds and industries, etc. from the portfolio

Dialogue on ESG

Dialogue activities related to ESG issues

8. ESG Investment Report (ESG-themed Investment)

ESG-themed investment

21* As of the end of August 2021

 ESG-themed investment has accumulated the assets and reached to ¥940 billion.
 Mainly, we actively invested in Climate Change Solutions.
＜ESG-themed investment assets change＞
 TotalAbout¥940 billion

 Breakdown

About¥360 billion＜Investment and Financing for
SDGs Bonds, etc.＞
Funding for international institutions andcompanies that promote business
contributing to achieving SDGs

2016

2017

2018

2019

2020

About
¥390 billion＜Investment and Financing
for SDGs Businesses＞

Investments in
Climate Change
Solutions:

2021

Funding for business (social
infrastructure development, environment
preservation, etc.) contributing toachieving SDGs

Renewable energy
business:

About ¥390 billion

About ¥230 billion

2016

2017

2018

2019

2020

2021
2016

2017

2018

2019

2020

2021

* In addition to the above, ESG-themed investments include impact investments and real estate investments that contribute to regional development and revitalization.

8. ESG Investment Report (ESG-themed Investment)

22

Climate Change Solution Investments* As of the end of August 2021
Cumulative investment amount:
About ¥390 billion
Classifications

Investment amount

Investments in SDGs
projects

About ¥250 billion
Overseas:
About¥110 billion(Investments and Financing for Renewable
Energy Power Generation projects)

Domestic:
About¥140 billion

Investments in SDGs Bonds

About ¥100 billion(Investments for Green, sustainability linkbonds,etc)

Impact Investment /OthersDomestic:
About¥50 billion

Overseas:
About¥50 billion

About ¥40 billion
Domestic:
About¥20 billion

Overseas:
About¥20 billion

8. ESG Investment Report (ESG-themed Investment)

23

Examples of Investments in Climate Change Solutions
Project summary

Investment

PeriodJPY 4.8billion2021/3

JPY 13.2
billion2021/7

JYP 5.5billion2021/7*As of August 31, 2021
*investment cases after
October 2020

Sustainability-Linked Bonds(Nomura Research Institute: NRI)

Issued to support NRI’s initiatives aiming to eliminate GHG
emissions by 2050
• The world’s first sustainability-linked product enabling prepayment by achieving sustainability performance targets*Sustainability-linked bonds have interest rates which vary based onprogress toward achieving sustainability performance targets set inadvance.
•

Climate resilience bond（European Bank for Reconstruction and Development）••

The use of funds is limited to climate resilient infrastructure andother such projects
Dai-ichi Life has purchased the first climate resilience bond issued
to an institutional investor in Japan by the European Bank for
Reconstruction and Development

Infrastructure fund for renewable energy
in emerging countries(BlackRock)•••This fund invests in projects or facilities constructing
or operating renewable power generation plants inemerging countries, such as solar or wind power
Governmental financial institutions and private investors
invest jointly in this fundThis fund monitors the social impact of the projects

Image provided by BlackRock8. ESG Investment Report (ESG-themed Investment)

Investment to Support the COVID-19 Response24*As of August 31, 2021
*Includes main projects in or after October 2020

Cumulative investment: Approx. JPY 60 billion
 Invested in the Health Bond issued by Asian Development Bank (ADB):
Supporting acquisition and supply of COVID19 vaccines in Asia-Pacific region••

Invested in
2021/2

Investment amount: Approx. JPY 10 billion
Support ADB health and medical initiatives, including assistance inacquiring and supplying COVID-19 vaccines

 Invested in Education Bond issued by the Asian Development Bank (ADB):
Supporting provision of high-quality education opportunities in anticipationof life after COVID-19 in the Asia-Pacific region
Invested in••

2021/2

Investment amount: Approx. JPY 6 billion
Support initiatives to increase high-quality education opportunities in life
after COVID-19 by enhancing online education, building inexpensive andsafe internet environments, and other such measures

 Provided financing to African Export-Import Bank:
Supporting financing of companies in Africa impacted by the COVID-19
pandemic
Invested in••

2020/12Investment: Approx. JPY 3 billion
Support initiatives of the African Export-Import Bank for the purpose of
assisting African countries impacted by the COVID-19 pandemic©ADB

8. ESG Investment Report (ESG-themed Investment)

25

Other ESG-themed Investments*As of August 31, 2021
*Includes main projects in or after October 2020

Cumulative investment: Approx. JPY 490 billion
Project summary

Blue bond(Asian Development Bank)•

The first blue bond issued by the Asian Development Bank to support
marine and ocean-based initiatives

Investment

PeriodJPY 16.5
billion2021/9JPY 1.8billion2020/10

JPY 10billion2021/3Social bond
(The University of Tokyo)•

The first bond issued by a national university in Japan provides
procurement funds for building large-scale, state-of-the-art researchfacilities, networks, data usage environments, etc.

Children's bond(International Bank for Reconstruction and Development)••International Bank for Reconstruction and Development and UNICEF
each put in half of the procurement funds
Dai-ichi Life is the first institutional investor in the world that supports
UNICEF through debt investment

Global venture capital fund(MPower Partners Fund L.P.)••

The purpose of the fund is to support venture companies aiming tosolve social issues through the power of technology
The fund invests in venture companies worldwide in thehealthcare/wellness, financial technology, next-generation workstyle/education, next-generation consumer, andenvironment/sustainability fields-(Amount ofinvestment notreleased)

2021/5

8. ESG Investment Report (ESG-themed Investment)

26

Purpose of Impact Investment
 We promote impact investments for the purpose of both generating a return on investments andcreating a social impact in unlisted and listed equities as well as external trust investments
 We select projects by considering whether they have a clear vision to solve social issues, whether
their businesses exhibit certain barriers to entry such as innovativeness and originality, and theirpotential social impact, which we continuously monitor after investment.
 Even in our engagement activities, we make proposals to companies for impact investing, such as
more comprehensive disclosure.

Portfolio company

Innovation
ImpactInvestment

Dai-ichi Life
Environment/
renewable energy

Healthcare
Medical/bio
Generate areturn on
investments

Enhance corporate valueNew
insurance
products/
services

Createsocialimpact*Regular monitoring

Dai-ichi Life

8. ESG Investment Report (ESG-themed Investment)

Impact Investment

27*As of August 31, 2021
*Includes main projects in or after September 2020

Cumulative investment: Approx. JPY 30 billion(Listed equities: JPY 16 billion; Unlisted equities: JPY 8 billion; Funds: JPY 6 billion)
Summary

Social impact

Investment

PeriodJPY 100
million2021/2

Encourage spacedevelopment to foster
economic growthby dramatically reducing
labor costs in space

JPY 200
million2021/３Extend the healthy
lifespan of cancer
patients
by developing andproviding next-generation
cancer immunotherapies

JPY 500
million2021/3Better quality of life
for patients by expanding
medical care using
surgical robots

JPY 500
million2021/９

Sharing Energy•

Japanese venture company providing the Share
Denki service for use of third-party residential
solar power generation systems

GITAI
•

Venture company researching, developing, andmanufacturing space robotics

Noile-Immune Biotech•

Venture company developing new cancer
immunotherapies centered upon CAR-T
therapies

Riverfield•

Venture startup of Tokyo Institute ofTechnology developing pneumatically driven
surgical robots capitalizing on proprietary
pneumatic control technologies

Reduces CO2 emissions
by popularizing renewableenergy, etc.

8. ESG Investment Report (ESG-themed Investment)

28

Efforts for Solving Social Issues through Industry-Academia Partnership We actively partner with universities, which are educational institutions that shape the future, with the aim ofcreating innovations through industry-academia partnerships and solving social issues through regional
development and revitalization.
 We carry out joint research that contributes to improving quality of life and extend healthy lifespans and promote
its implementation in society. We are also engaged in initiatives aimed at solving social issues, including throughrevitalization of regional economies, by concluding comprehensive partnership agreements that set forth training
innovative talents and creating businesses at university campuses and in local regions.

Comprehensive partnership agreement partners

Institute for Advanced
Biosciences (IAB), Keio
University

Examples of investments in university-launched venture companies
and university venture capital* VC launched by Keio University
Investment: June 2016

Concluded
August 2018
* VC launched by Kyoto University
Investment: November 2017

Tokyo University of
Science* VC launched by Tokyo University of Science
Investment: September 2019

* VC launched by Tohoku University
Investment: December 2020

Concluded
March 2019

* Venture company launchedby Nagoya University
Investment: July 2020

* VC launched by Tokyo University
Investment: March 2018
* Venture company launchedby Yamaguchi University
Investment: March 2021

Tohoku University

Concluded* Venture company launched by IAB,
Keio University
Investment: November 2018

August 2019
* Venture company launchedby Kobe University
Investment: September 2019

* Venture company launchedby Tokyo University ofTechnology / Tokyo medical
and dental University
Investment: July 2021
* Venture company launchedby Osaka University
Investment: September 2021

8. ESG Investment Report (ESG-themed Investment)

29

ESG Initiatives for Real Estate Investment
 Plan for rental office building with awood hybrid structure•••

We have begun considering a new architectural plan fora rental office building with a wood hybrid structure in
Kyobashi, Chuo-ku, Tokyo.
The project aims to reduce CO2 emission during
construction at least 20% compared to steel structures
through cyclical use of resources by using domestic
timber and the adoption of a wood hybrid structure.
ESG factors are taken into the evaluation andcalculation of investment return, which is one of theinvestment criteria.

 Regional economic revitalization bypromoting workcation in Obihiro City••

We aim to create and expand the population in cooperation
with Obihiro City through workcation and other promotions
This project strives to revitalize the region throughworkcations and other projects by launching a hotel businessthrough renovations of the Dai-ichi Life office in Obihiro Cityand setting up co-working spaces.

30

Table of Contents

1. Message from the
President---2

2. Main Initiatives of
Responsible Investment
Activities---3

3. Our Role as a
Responsible Investor---4

4. Basic Policy on ESG
Investments---5

5. Our Approach for
Responsible Investment---7

6. Our Framework for
Responsible Investment---8

7. Highlights---10

8. ESG Investment Report

Our History for ESG Investment
and 2020 Review
ESG-themed investment
ESG integration

9. Report on Stewardship
Activities









---15

Basic approach and processes
Our History for stewardship
activities and Review
Examples of engagements
Policy for FY2021
Voting Policy and Voting records
Self-evaluation and evaluation byothersMessage from the General
Manager of the Responsible
Investment Dept.
Reference (Glossary)---35

８. ESG Investment Report (ESG Integration)

31

Enhancing Sophistication of ESG Integration
 We optimally integrate ESG factors into each asset according to asset liquidity and characteristics, and aim tocomplete ESG integration into all assets.
 ESG analysts select priority themes from various ESG issues and conduct cross-sector analyses. the research
results are shared with equity and credit analysts, and then each asset analyst reflects those results into theevaluation of each company.

Methods of ESG Integration
Investment
portfolio

Bonds
Listed equities
Loans

Unlisted equities
Project financeFunds

How to integrate
ESG factors•••

Reflected in benchmark
Reflected in internalratings(*See right)

Reflected in due diligenceand monitoring process

Approach to ESG issues
Top-down approach
ESG analyst
Selection of ESG themes/cross-sector research and analysis
Various ESG issues

ClimatechangeHumanrightsESGアナリスト

Naturalcapital

ESG scoring
エクイティアナリスト・クレジットアナリスト
Internal rating of each company
Equity/credit analyst

Real estate•

Reflected in hurdle rate

Research and analysis of each company

Bottom-up approachetc…

８. ESG Investment Report (ESG Integration)

32

Examples of ESG Integration (Climate Change) In terms of climate change integration, we score each company after quantitively and qualitatively evaluations taking into accountengagement results.
 More specifically, our quantitative evaluation calculates the effects of carbon taxes while our qualitative evaluation considers future
opportunities, such as environmental technologies. Our engagement verifies and assesses initiatives of companies to address
climate change risks, corporate governance, etc.

ESG analyst
Quantitative evaluationQualitative evaluation

Calculates the financial impacts of introducing carbon taxes
The impact of carbon taxes is estimated by calculating GHG
emissions of each company (Scope 1 and Scope 2 GHG
emissions, and sometimes Scope 3 depending on the type ofbusiness)
Takes into account the acquisition of SBT certifications andplans to reduce CO2 (fixed deductions from corporate carbon
emissions)

Evaluates corporate opportunities from various
perspectives, such as potential business expansion,
through green growth strategies of governments or theability to lead an industry with outstanding proprietary
technologies, energy savings, or environmental
measures.

Assessment of engagement results with relevant companies
Evaluates the approachto address climatechange risks in detail

Evaluates initiatives of companies such as endorsement of TCFD, plans to reduce CO2, andclimate related disclosures and organizational (governance) structures

ESG scoring
Each company is scored according to the overall evaluationand it is shared with equity/credit analysts

EquityanalystReflected ininternal
ratings

Creditanalyst８. ESG Investment Report (ESG Integration)

33

Positive Screening (Japanese Equities/Foreign Equities)


An ESG fund in domestic equity portfolio conduct screening from the viewpoint of governance and climatechange, and integrate ESG factors in internal ratings, and adjust the weight based on it.
Since September 2020, the company has introduced an ESG index as a benchmark for foreign equity portfolio,
and began reflecting ESG factors in all of its foreign equity investments managed in -house.

[ESG fund construction method
for Japanese equities]

Constituents of ESG
Indexes

Investment
universe

Portfolio(1) FTSE Blossom Japan Index(2) MSCI Japan ESG Select Leaders Index(3) MSCI Japan Empowering Women Index(4) Nadeshiko brand(5) Health and Productivity [foreign equity investments managed in-house]
Management brandConstituents of MSCI(6) S&P Carbon Efficient Index

ACWI
Screening in terms of G
(governance) andclimate change (E)(MSCI All Country

Extract high rank companies
based on internal ratings
considering ESG factors

ESG index
universe

World Index)(Make adjustments to neutralize
the risk factors in industries, etc.)

Replace brands and adjust weights
based on internal ratings, etc.

Determineweighting
MSCI ACWIESG Universal Index

Excludecompanies suchas those with arecord of serious
misconduct or
involved in the
manufacture ofcontroversial
weapons

Adjust the weights ofthe parent index(market capitalization
weights) based on
MSCI’s ESG scores7. ESG Investment Report (examples of efforts for ESG integration)

34

Negative Screening Our negative screen list is continuously reviewed taking into account the characteristics of the life
insurance business and the sustainability of society.

List of negative screening
Screening targets

Assets under screening Specific arms manufacturing (cluster bombs,
biological/chemical weapons, anti-personnel
mines, etc.)

 Equity Project finance Bond Real estate Corporate financing

 New thermal power plant-related projects
using fossil fuels(including coal, oil, and gas) coal mining projects

 Project finance

Process of negative screening
Investigating
candidates fornegative screening

Determining fields
and companies
subject to negative
screening

Excluding fromthe investment
targets

Regularverification ofholdings

35

Table of Contents

1. Message from the
President---2

2. Main Initiatives of
Responsible Investment
Activities---3

3. Our Role as a
Responsible Investor---4

4. Basic Policy on ESG
Investments---5

5. Our Approach for
Responsible Investment---7

6. Our Framework for
Responsible Investment---8

7. Highlights---10

8. ESG Investment Report

Our History for ESG Investment
and 2020 Review
ESG-themed investment
ESG integration

9. Report on Stewardship
Activities









---15

Basic approach and processes
Our History for stewardship
activities and Review
Examples of engagements
Policy for FY2021
Voting Policy and Voting records
Self-evaluation and evaluation byothersMessage from the General
Manager of the Responsible
Investment Dept.
Reference (Glossary)---35

9. Report on Stewardship Activities (basic approach and processes)

36

Our Basic Approach for Stewardship Activities
 We engage in stewardship activities the “Dai-ichi Life way,” reflecting our group mission of “By your side,
for life.” We undertake activities with a close understanding of the issues facing investee companies which
differ by growth stage, and help increase corporate value in the mid- to long-term.
 We are actively pursuing more sophisticated efforts, based on both Japan’s Stewardship Code andCorporate Governance Code.

Increase corporate
value in the mid- tolong-term

Responding
to E/S issues
governance
Growthstrategies

Mid- to long-term stewardship activities
according to the growth stage of companies

Corporate
Governance
Code
More sophisticatedgovernance system

Stewardship
CodeMore sophisticatedstewardship activities

9. Report on Stewardship Activities (basic approach and processes)

37

Our Stewardship Activity Process We conduct stewardship activities focused on engagements, with a view to promoting increases in thecorporate value of investee companies and improving our mid- to long-term investment returns.

Improveinvestment
returns

Investment
decision
Reflect oninternal ratings

Start*Deliberations by the Responsible
Investment Committee

Voting
Review the agenda
items based on theengagements

Follow up on
progressof issues

Monitor progress of issues
and provide information tocompanies

Selection ofcompanies to beengagedbased on importanceand engagement
theme

Increase
corporate valueof investees
Conduct
engagements
Exchange opinionswith companies on theissues we identified

Analyze
companies
Analyze financial/nonfinancial information
based on disclosed
information

9. Report on Stewardship Activities (basic approach and processes)

38

Following up Progress of Engagement Issues
 We regularly follow up on the progress of the issues based on engagements, and help solve the issues ofinvestee companies by providing information in response to the issues.

Tracking 4-step milestones
1

Raise issue: Dai-ichi Life raises a matter it considers to be anissue with a investee company

2

Recognize issue: The investee company recognizes that it must
address this issue

3

Address issue: The investee company begins addressing the
issue

4

Solve issue: Dai-ichi Life confirms that the issue has been solved

Help solve
issuesthroughprovidinginformation

Examples of issues of each theme
GovernanceManagement/financial strategies

 Application of
independent outside
directors

 Identifying materiality andreflecting it in management
strategy Composition of board of
directors and its
effectiveness Formulating and disclosing
mid-term management plan
and KPI considering validity

 Nomination/remuneration  Business portfolio

 Formulating and disclosing
capital policies（investment,
shareholder return andretained earnings ） Improving total return ratio Cross-Shareholdings
 Capital efficiency

Environmental/social issues
 Addressing climate change Human rights and diversity
 Approach to natural capital andbiodiversity

9. Report on Stewardship Activities (Our History for stewardship activities and Review)39

Past Stewardship Activities
 We continuously raised the level of our stewardship activities focusing on engagements, strengthening
our mechanisms to diversify engagement methods and themes, along with enhancing information
disclosures on voting activity to improve transparency.
 In FY2020, we focus on ESG issues, such as climate change and plastic waste in our engagement
activities. Also, we encouraged initiatives that take into account the impact of the spread of COVID-19.
FY2014Engagementcompanies

Engagement
themesDisclosure of
voting records

FY2016FY2017FY2018FY2019FY2020Established
Responsible
Investment Center

Announced commitment to Stewardship Code

Number of
persons
conducting
engagement(Number ofdedicatedpersons)

FY201514 people(0 person)

17 people(2 people)

17 people(3 people)

19 people(6 people)

20 people(7 people)

20 people(7 people)

20 people(7 people)

110
companies

233
companies

277
companies

271
companies

251 companies

239 companies

248 companies

Collaborative
engagements(LIAJ)

About 100
companies(Send letters)

About 110 companies(Send letters /engagements)

About 140 companies(Send letters /engagements)

Commence bonds
engagements
Cover about 90% of market capitalization of portfolio as 3-year cumulative total

Environmental/social issues

Full-scalelaunchAbout 140 companies(Send letters /engagements)

Strengthen climate change engagements

ESG

Corporate governanceManagement/ Financial strategies

Plastic waste
engagements
COVIT-19
engagements

Disclose voting tally table (for each agenda item type)

Disclose summary of voting policy
Improvetransparency

Disclose details of voting policy
Disclose votes in favor/against each agenda item
(quarterly)

Disclose reasons for voting
in favor/against agenda item

9. Report on Stewardship Activities (Our History for stewardship activities and Review)

40

Review of Stewardship Activities in FY2020(Target period: July 2020 to June 2021)

 In fiscal year 2020, we selected companies where climate change, waste plastics, COVID-19, and ourother important dialogue themes may become critical management issues taking into account theimportance of their holding amounts, top shareholders and other such factors.
 We conducted dialogues with 248 of these companies.
 Revisions of Japan’s Corporate Governance Code and the impact of the COVID-19 pandemic haveincreased the number of new management issues related to governance and management strategy.
Total brand holdings: Approx. 1,500(including general/special accounts)
Focal
themesClimate change, waste
plastics, COVID-19:
90 companies

Holdings amount/
top shareholders<New issue selection by theme >Companies where climate change, waste plastics, and
COVID-19 response may become critical management
issues100%

80%

Growth strategies:
34 companies

Companies in a stage of growth(Support corporate growththrough a dialogue on growth strategies)

60%

45%
36%

40%

Main themes:
135 companies

Companies with issues in three major themes (ESG,
management strategy, and financial strategy)/
companies with a large amount of investment

20%

32%
21%

0%

248 companies*Some redundancy

Dialogue with 248 companies
Covering about 60% of themarket capitalization of the portfolios

2016

2017

経営戦略（財務戦略含む）
Management
strategies(including financial
strategy)

2018
ガバナンス
Governa
nce

2019

2020

環境・社会課題
Environmental/social issues

9. Report on Stewardship Activities (Our History for stewardship activities and Review)

41

Medium-term Engagement Outcomes Progress has been made to solve the issues raised with companies over time. The companies have resolved
roughly 80% of governance and 60% of management strategy issues identified before fiscal year 2016.
 In light of factors such as Japan’s commitment to carbon neutrality, investee companies have also furthered
their response to environmental and social issues and have resolved about 50% of the issues identified infiscal year 2018.
 We will continue to identify and follow themes centered on critical issues for investee companies.
＜ Status of the issues raised in each fiscal year as of the end of June 2021 ＞

Governance

100%

④
③

80%
60%

80%

②

100%
80%

40%

20%

20%

0%

50%

60%

40%

①

Environment/social
issues0%
bef.2016

2017

2018

2019

2020

① Raise issue: Dai-ichi Life raises a matter it considers to be an issue with a company② Recognize issue: The company recognizes that it must address this issue③ Address issue: The company begins addressing the issue④ Solve issue: Dai-ichi Life confirms that the issue has been solved

Progress ofengagement

Tracking engagement milestones

2018

2019

2020

42

Table of Contents

1. Message from the
President---2

2. Main Initiatives of
Responsible Investment
Activities---3

3. Our Role as a
Responsible Investor---4

4. Basic Policy on ESG
Investments---5

5. Our Approach for
Responsible Investment---7

6. Our Framework for
Responsible Investment---8

7. Highlights---10

8. ESG Investment Report

Our History for ESG Investment
and 2020 Review
ESG-themed investment
ESG integration

9. Report on Stewardship
Activities









---15

Basic approach and processes
Our History for stewardship
activities and Review
Examples of engagements
Policy for FY2021
Voting Policy and Voting records
Self-evaluation and evaluation byothersMessage from the General
Manager of the Responsible
Investment Dept.
Reference (Glossary)---35

9. Report on Stewardship Activities (Examples of engagements)

43

Leading Examples of Engagement
Examples enhancing corporate value by furthering
governance and ESG management at startup companies

Company A
Construction/
real estate
Identificationof issues atthe company

Dialogue
overview
andcompany
initiativesReaction

Positive

1
Raise
issue

Company A is a startup with significant growth that runs a real estate business.
We conducted dialogues with Company A three times since 2019 to improvegovernance stricture and ESG management.

2
Recognize
issue

3
Address
issue

4
Solve
issue

[Composition of theBoard of Directors][Strengthening Governance] We engaged in an ongoing dialogue over several sessions about the composition of
the company’s board of directors because ensuring diversity on the board of directors(diversity in skills suited to strategies, lack of female directors, etc.) is an importantelement for enhancing the effectiveness of corporate management strategies.
Company A took a positive view of exchanging opinions with us and other investors
and reformed its member composition (increased outside directors, appointed afemale director, etc.) toward strengthening functions of the board of directors.
[Promotion of ESG management] As a startup with limited resources, the priority of ESG disclosure had been relatively
low at first. Recognizing the importance of social contributions of its businesses
through our dialogue, Company A began to promote the disclosure of ESG informationand published an ESG report.

[Trend of stock price]

Futurepolicies In addition to a favorable business performance, Company A enriched thecomprehensiveness of its disclosure and its stock price has been on an upward trend.
 Company A continues to review its board of directors, and we will continue dialogue
with them to further enhance its effectiveness.
 Company A already has a relatively high level disclosure about its initiatives topromote ESG management, but we encourage them to disclose more comprehensive
information that is useful for long-term investors.

9. Report on Stewardship Activities (Examples of engagements)

44

Leading Examples of Engagement
Governance

Issue

Strengthening governance

Goal

Reform board of directors’ composition

Overview of dialogue

Company B
Fiber
products

Management/
finance

Environment/
society

Governance

Number of dialogues:６(2017 to 2021)
Shared opinions on reforming
the composition of the board of
directors due to a large numberof members and overwhelming
number of internal director
appointments.

Goal

Increase capital efficiency

Apparelfinance

Environment/
society

Number of dialogues: 5(2016 to 2021)
Shared opinions on establishingbusiness strategies to improve
profitability

1
Raise
issue

2
Recognize
issue

Reaction
Positive

Company response
Business performance
drastically declined due tostore closures caused by the
COVID-19 pandemic.
Company C began drafting
business strategies in
anticipation of business after
the pandemic to strengthenbusiness performance via
eCommerce and otherchannels.

4
Solve
issue

Continue dialogues
with the company toensure a diverse
board of directors,
such as theappointment offemale directors.

－

1
Raise
issue

3
Address
issue

Future policies

Voting record

Company B decided to cut
the total number of directors
by half while increasing thenumber of outside directors
to one-third of the board by
2020.

Low-level of capital efficiency

Company C Management/

Positive

Company response

Issue

Overview of dialogue

Reaction

2
Recognize
issue

Voting record

Voted in favor of
the proposal toappoint a director
in view of the
COVID-19
pandemic.

3
Address
issue

4
Solve
issue

Future policies

Support futurebusiness performanceand corporate
strategies.

9. Report on Stewardship Activities (Examples of engagements)

45

Leading Examples of Engagement
Issue

Minimal shareholder return ratio

Goal

Set targets and increase the levelof the shareholder return ratio

Governance

Overview of dialogue

Company D Management/
Retailfinance

Number of dialogues: 5(2016 to 2021)
Shared opinions on setting target
for shareholder return and raising
the level of return in line withcapital adequacy.

Reaction
Positive

Company response

1
Raise
issue

2
Recognize
issue

Voting record

Company D took an active
part in exchanging ideas withinvestors as well as set anddisclosed targets for returns
to shareholders in a new
medium-term plan.

Governance

Minimal shareholder return ratio

Continue dialogue withthe company about
specific improvement
measures as itheightens its capitalefficiency even more.

－

Goal

Increase the level ofthe shareholder return ratio

Overview of dialogue

Company E Management/
Retailfinance

Environment/
society

Number of dialogues: 3(2015 to 2021)
Shared opinions on increasing thelevel of the shareholder return ratio
and target disclosure.

Reaction
Negative

1
Raise
issue

4
Solve
issue

Future policies

Environment/
society

Issue

3
Addressissue

2
Recognize
issue

3
Address
issue

4
Solve
issue

Company response

Voting record

Future policies

Company E had already begun
discussing the problem after
other shareholders had pointed
out the same issue but felt that
it was difficult to increase theshareholder return ratio anddisclose target as it need tokeep certain internal reserves.

Voted against a
proposal for theappropriation of
surplus because
the internal
reserves aresubstantial while
the total return
ratio is low.

Dai-ichi Life sold off its
shareholdings because
Company E did notintend to take any
initiative and there
was a strong
uncertainty about
medium- to long-term
recovery in businessperformance.

9. Report on Stewardship Activities (Examples of engagements)

46

Leading Examples of Engagement
Governance

Issue

Integration of ESG issues into
management vision

Goal

Positive
Shift to ESG-oriented business managementand draft a medium- to long-term management plan

Overview of dialogue

Company F Management/
Machineryfinance

Environment/
society

Number of dialogues: 3(2016 to 2021）
Although Company F hasbusinesses closely related toenvironmental and social
contributions and does publish areport, we shared opinions on
integrating ESG factors into thevision of the medium-term
management plan.

Issue
Governance

Goal

Company G
Iron andsteel

Management/
finance

Environment/
societyCompany response

Number of dialogues: 6(2016 to 2021)
Mutually recognized the importanceof addressing climate change andshared opinions about
endorsement of TCFD, target
disclosure, and details of corporate
initiatives.

Voting record

Company F worked to alignits efforts with the SDGs and
KPI and has announced amedium- to long-term plan
which shifts to ESG-oriented
business management in
2021.

Setting of long-term climate changetargets
Create a road map to CO2 emission
reductions

Overview of dialogue

1
Raise
issue

Reaction－

Reaction
Positive

Company response

Company G has endorsed
TCFD since 2019 and has
disclosed scenario analyses.
It also disclosed its CO2
emission reduction targets in
2021.

1
Raise
issue

Voting record－

2
Recognize
issue

3
Address
issue

4
Solve
issue

Future policies
Regularly support the
progress of the publicplan and continue a
dialogue with thecompany on thespecific initiatives andchallenges towardachieving its plan.

2
Recognize
issue

3
Address
issue

4
Solve
issue

Future policies

Encourage moresophisticated scenario
analyses and otherfurther measures andsupport progress of its
specific initiatives toreduce emissions.

9. Report on Stewardship Activities (Examples of engagements)

Participation in Collective Engagement Initiatives
 We participate in collective engagement initiatives as an effort to strengthening and enhance theeffectiveness of our own engagement activities.
 In FY 2020, we participated in collective dialogues with the Institutional Investors Collective
Engagement Forum, an exchange of ideas with outside female directors at the 30% Club Investor
Group.

 The Institutional Investors Collective Engagement Forum is
an initiative overseeing collective engagement of institutional
investors. This group of seven institutional investors sends
letters to companies and engages with them collectively
around themes that include materiality, publicly listedparent/subsidiary pairs, cross-shareholding policies, defense
against hostile takeovers, many “against” votes, andscandals.

 Shared favorable examples of engagement at theregular meeting held with institutional investors
in the Asia region
 Announced the Net-Zero Company Benchmark in
December 2020, which evaluates corporate
climate change initiatives

Example of FY2020 Collective Dialogues (April 2021)
Theme: Materiality Company: Mitsui O.S.K. Lines•••

Addressed the relationship between materiality andmedium- to long-term strategies in this dialogue, suchas efforts to handle the oil spill after the Wakashio
incident where a vessel ran aground in the Republic of
Mauritius in the summer of 2020
Shared opinions with company management aboutcommunication methods and materiality reforms(taking a stance that overlooks the entire supply andvalue chains)
Deepened mutual understanding, which helped facilitate
a constructive dialogue Exchanged ideas several times in the Best
Practices Subgroup, which Dai-ichi Life
participates, on outside female directors who
belong to public certified accountant and lawyer
associations
 Gathered examples of best corporate practices
related to women’s empowerment to publish in
the annual report47

9. Report on Stewardship Activities (Examples of engagements)

48

Participation in Collaborative Engagements through theLife Insurance Association of Japan As an effort to strengthen our engagement activities and enhance effectiveness, we continuously participate incollaborative engagements conducted by the Working Group for Stewardship Activities of the Life Insurance
Association of Japan (LIAJ).
 In FY2020, LIAJ carried out engagements with the themes of “increasing shareholder returns,” “improving
ESG information disclosures” and “enhancing climate change information disclosures” with 171 companies intotal (cumulative total 178 companies), based on the recognition of issues shared by the participatingcompanies. Especially for the theme of “enhancing climate change information disclosures”, LIAJ has
encouraged the top 50 largest GHG emitters companies to promote further efforts toward decarbonizing.
 We will also strengthen efforts for other collaborative engagement initiatives in which we participate.

FY2019 Results of efforts

FY2020 Engagement themes<Status of efforts of engagement partner companies>
Enhancing shareholder returns
LIAJ Working Group for Stewardship Activities(11 life insurance companies including our company)

Dividend
payout ratio
over 30％
24％

Dividend payment
ratio under 30％

73%

N/a companies
3%

Letter sent under joint signatures of
11 life insurance companies
Explain the purpose through engagements, etc.

intensify
effortEnhancingshareholder
returns

Enhancing ESG
information
disclosures

Enhancingclimate change
info disclosures

64 listedcompanies

64 listedcompanies

50 listedcompanies

Enhancing ESG information disclosures
Publishedintegrated
Report17%

Progress indisclosure
observed
28%

Progress in disclosure
not observed
55%

Enhanced ESG information
disclosures
Total 45％

Source: Prepared by Dai-ichi Life based on LIAJ, “Life Insurance Companies’ Efforts to Revitalize the Stock Market and Realize a Sustainable
Society through Asset Management”

49

Table of Contents

1. Message from the
President---2

2. Main Initiatives of
Responsible Investment
Activities---3

3. Our Role as a
Responsible Investor---4

4. Basic Policy on ESG
Investments---5

5. Our Approach for
Responsible Investment---7

6. Our Framework for
Responsible Investment---8

7. Highlights---10

8. ESG Investment Report

Our History for ESG Investment
and 2020 Review
ESG-themed investment
ESG integration

9. Report on Stewardship
Activities









---15

Basic approach and processes
Our History for stewardship
activities and Review
Examples of engagements
Policy for FY2021
Voting Policy and Voting records
Self-evaluation and evaluation byothersMessage from the General
Manager of the Responsible
Investment Dept.
Reference (Glossary)---35

9. Report on Stewardship Activities (Policy for FY2021)

Responsible Investment Policy 2021
Engagement
 Strengthening engagement aimed at resolving important issues of investee companies
 Support initiatives aimed at creating sustainable society, such as climate change
response, governance effectiveness improvement, etc.

 Strengthening climate change
engagement

 Consistent with the target-setting protocol of the
Net-Zero Asset Owner Alliance, active support for
the further raising and execution of net-zerotargets for the top 50 GHG emitting companies ofour portfolio
 Strengthening climate change-related
engagement such as to the endorsement of TCFD,
the information disclosure related to the financial
impact brought by climate change, and otherinitiatives related to climate change based on
analysis and proposals from our ESG analysts

 Emphasis on engagement regarding
management strategy
 Sharing issues with investee companies while
confirming consistency between corporate
purpose/management principles and businessmodels Ascertaining business strategies to maximize
corporate value, financial strategies to realize capitalefficiency that exceeds capital costs, and sustainable
management strategies based on drastic changes inthe external environment such as the spread of
COVID-19 infections

 Improvement of effectiveness of corporate
governance In accordance with revisions to Japan's Corporate
Governance Code, the raising of issues based on a skill
matrix recognized to be necessary for business models
for companies faced with challenges on the diversity
and selection process of their board of directors.

 Incorporation of important ESG-related themes
 Investigating on Major ESG themes such as the
improvement of sustainability of natural capital and therespect for human rights and promotion of diversity,and incorporate these into the engagement themes.

 Promotion of collaborative engagement
 Actively participate in collaborative engagement initiatives,and demonstrate the ability to influence companies

29. Report on Stewardship Activities (Policy for FY2021)

51

Companies Targeted for Engagement in FY2021
 In FY 2021, we selected and carried out engagement at companies where climate change, growthstrategies, human rights, natural capital, and our other important dialogue themes may become criticalmanagement issues as well as companies where critical issues were identified during engagement in past,taking into account the importance of their holding amounts, top shareholders and other such factors.
Total brand holdings: Approx. 1,500(including general/special accounts)

Focal
theme
Climate change,
human rights,
natural capital:
90 companies

Holdings amount/
top shareholders

50 companies with high GHG emissions
in our portfolios
Companies with significant human rights risks
or impacts on natural capitalManagement
strategy:
100 companies

Companies with growth strategy themes

Governance, etc.:
100 companies

Companies with governance and other issues

250 companies

Covers 90% of the market capitalization of
portfolios in the medium term (approx. 3 years)*Some redundancy

52

Table of Contents

1. Message from the
President---2

2. Main Initiatives of
Responsible Investment
Activities---3

3. Our Role as a
Responsible Investor---4

4. Basic Policy on ESG
Investments---5

5. Our Approach for
Responsible Investment---7

6. Our Framework for
Responsible Investment---8

7. Highlights---10

8. ESG Investment Report

Our History for ESG Investment
and 2020 Review
ESG-themed investment
ESG integration

9. Report on Stewardship
Activities









---15

Basic approach and processes
Our History for stewardship
activities and Review
Examples of engagements
Policy for FY2021
Voting Policy and Voting records
Self-evaluation and evaluation byothersMessage from the General
Manager of the Responsible
Investment Dept.
Reference (Glossary)---35

９. Report on Stewardship Activities (Voting Policy and Voting Record)

53

Voting Policy (Main Points)

Our voting policy is designed to increase the corporate value of portfolio companies and promote sustainable growth.
We review the voting policy as needed based on various factors, including the social and economic situations
surrounding the companies.
Current

Agendaitem

CandidateAppointing
directors,
auditors,
etc. (*)

Representative director

Representative director

Director

MarketAfter April 2021

Planned Revision
After April
2022

MarketAll markets

When ongoing dialogues do not show
improvements in ESG issues that use problems
and priority themes of portfolio companies

All markets No changeFirst Sectionof TSEOne independent outside director

TSE Prime

1 person

TSEStandard

1 person

TSE
GrowthAbsentOther thanFirst Sectionof TSEAll markets

Absence of independent outside director

After April 2023

Under 1/3, or 1 person

Deficit for three consecutive fiscal years/under
5% ROE for five straight fiscal years（expand
All markets No change
applicable people to reappointed directors）

In the process of special measures in view of the COVID-19 pandemic
Representative directorof listed subsidiary thathas a controlling interest

Independent outside
officer(director/auditor, etc.)

Outside officer(director, auditor, etc.)

All markets

Only First
Section of
TSE

Only First
Section of
TSE－・Originally from major shareholders with
15% or more holding ratio
・ Long tenure (total of 12 years or more)

All markets Independent outside director: under 1/3, or 1 person

TSE Prime

No change

・Originally from major shareholders
with 10% or more holding ratio
・Long tenure(total of 12 years or more)

Other than
TSE Prime－・Originally from major shareholders
with 10% or more holding ratio

Under 75% attendance rate at board of directors
All markets No change
and board of auditors meetings(*) Includes directors serving as Audit & Supervisory Committee members

９. Report on Stewardship Activities (Voting Policy and Voting Record)

54

Voting Policy (Main Points)
Agenda item

Current
MarketAfter April 2021

Planned RevisionMarketAfter April 2022

After April 2023

Granting stock-based
compensation and stock
options to auditors, etc.

Granting of stock-based
All markets compensation and stock
Officer compensation,
options that may cause
retirement allowance, stockover 10% dilution
based compensation, andissuing and granting stock
Increase in officer
options
compensation and payment
of officer bonuses in poorly
performing companies
Only First
Section ofTSEAllmarkets
No change

Provision of retirement
allowances to auditors, etc.

Only TSE
Prime

Appropriation of surplus(representative director isreappointed as director if
there is no applicableagenda item)

Under 20% total return
ratio for three cumulative
All markets
fiscal years and most recent
fiscal yearAllmarkets

Introduction and update of
takeover defense measures(One of the following applies)
Under 5% ROE for threeconsecutive fiscal years;All
All markets
less than two independent markets
outside directors; economic
compensation provided

No change(One of the following applies)
Under 5% ROE for three consecutive fiscal years; independent
outside director: under 1/3, or 1 person*See materials on our website for more information on our voting policy. https://www.dai-ichi-life.co.jp/dsr/investment/ssc2.html

９. Report on Stewardship Activities (voting policy and voting records)

55

Voting Records (July 2020–June 2021)

The ratio of our votes against agenda items proposed by companies remains relatively low, in part because we emphasize midto long-term engagements with investee companies and we make efforts to spread awareness of our policies on voting against
proposals.
On the other hand, the ratio of our votes against proposals regarding the appointment of directors has increased with therevision of our voting policy (establishment of criteria on tenure of independent directors, etc.) dated April 1, 2020.
We voted in favor of 4 agenda items proposed by shareholders that we deemed contribute to increasing corporate value.

Agenda items proposed by companies<Based on the numberof companies>
16.1％ voted against（-1.0％）

1,275 votes in favor
245 votes against<Based on the number ofparent agenda items>
5.５％ voted against（ -0.2％）

4,669 votes in favor
271 votes against<Based on the numberof subordinate agenda items>

2.0％ voted against（ -0.1％）

15,638 votes in favor
314 votes against

Agenda items proposed by shareholders<Based on the numberof companies>
8.6％ voted in favor<Based on the number ofparent agenda items>
3.1％ voted in favor

３ votes in favor
32 votes against

4 votes in favor
127 votes against（-6.1％）（-1.6％）<Based on the numberof subordinate agenda items>
4.1％ voted in favor（-2.3％）

6 votes in favor
139 votes against(Year on year）* Parent agenda item is counted as one agenda item when it includes several subordinate agenda items
such as proposals to appoint directors.
* For a detailed tally and individual voting records, see materials on our website. https://www.dai-ichi-life.co.jp/dsr/investment/ssc2.html

９. Report on Stewardship Activities (voting policy and voting records)

56

Voting Records (July 2020–June 2021)■ Agenda items related to corporate organizations[Selecting/dismissing directors]<Based on the number of parent agenda items>

9.7％ voted against (+1.5%)[Retirement allowances for retired officers]
15.7％ voted against (+3.4%)

70 votes in favor

1,330 votes in favor

13 votes against

143 votes against<Based on the number of subordinate agenda items>
1.5％ voted against (+0.1%)

11,325 votes in favor[Selecting/dismissing auditors]

174 votes against<Based on the number of parent agenda items>
4.5％ voted against (-2.9%)

1,179 votes in favor■ Agenda items related to capital policies(except those for Articles of Incorporation)[Appropriating surplus]

1.5％ voted against (+0.2%)

997 votes in favor
15 votes against[Related to organization restructuring]
0.0％ voted against (0.0%)

32 votes in favor
56 votes against<Based on the number of subordinate agenda items>
3.1％ voted against (-1.1%)[Introducing, updating, and abolishingtakeover defense measures]
30.8％ voted against (+11.1%)

2,153 votes in favor
68 votes against[Selecting/dismissing independent auditor]
0.0 ％ voted against (0.0%)

32 votes in favor

27 votes in favor
12 votes against[Agenda items related to othercapital policies]
0.0％ voted against (0.0%)
39 votes in favor■ Agenda items related to officer compensation[Officer compensation]
4.4％ voted against (+0.7%)■ Agenda items related to Articles of Incorporation
0.6％ voted against(+0.6%)

307 votes in favor

655 votes in favor
30 votes against

2 votes against(Year on year)

9. Report on Stewardship Activities (self-evaluation and evaluation by others)

57

Our Compliance with Japan’s Stewardship Code (self-evaluation)●Status of efforts and self-evaluation by principle
Principle

Status of efforts

Self-evaluation

Principle 1
Formulate and publicly
disclose policy

In April 2019 and July 2020, we revised and publicly disclosed the “Policy on Stewardship Activities”
as follows.
 Taking into account the developments related to the UK Stewardship Code, the PRI
assessment results, etc., the policy was revised to state that stewardship activities also cover
Japanese bonds and Japanese unlisted investees.
 We added “sustainability considerations” to the definition of “stewardship responsibilities.” Wealso newly added “contributing to solving regional and social issues” to the existing“maintaining and expanding mid- to long-term investment returns” as the purpose of ourstewardship activities.



We evaluate that weare executing thisprinciple appropriately
by revising andpublicly disclosing ourpolicy based on
domestic andoverseasdevelopments.

Principle ２Manage conflicts ofinterest

In April 2017, we established the Responsible Investment Committee for strengthening ourgovernance of stewardship activities, among other purposes. Since April 2018, the committee has
three external members and two internal members (one of whom is the executive officer for theCompliance Control Dept. in charge of managing conflicts of interest), such that external members
make up the majority of the committee.
The Responsible Investment Committee deliberates and decides on particularly important exercisesof voting rights, e.g., companies that have a large amount of holdings and other companies andagenda items that are attracting significant attention in society. Simultaneously, we report allimportant exercises of voting rights to the Responsible Investment Committee.



We evaluate that weare executing thisprinciple appropriately
by establishing andrunning the
Responsible
Investment
Committee, etc.

We quantitatively monitor business results and financial situations, as well as collect and analyze
non-financial information including regarding governance, environmental, and social issues(especially response to climate change in FY2019) in order to evaluate the mid- to long-term profit
growth of investee companies.
In April 2020, we newly assigned ESG analysts, which will lead to more in-depth ESG surveys. By
organically linking the survey findings to in-house ratings and investment decisions, we seek toincrease the sophistication of our ESG integration.
We conducted engagements with companies having about 90% of market capitalization of theJapanese equity portfolio as a three-year cumulative total from FY2018 to FY2020.
In the case of around 60% of the companies with which we conducted engagements in FY2020, wesought to share issues with the management of the companies, including through interviews with
their officers.
We have participated in The Net-Zero Asset Owner Alliance and plan to engage with top GHG
emitters companies.
We continuously participate in the collaborative engagements of the Working Group for Stewardship
Activities of the Life Insurance Association of Japan. We also newly participated in domestic andoverseas initiatives, including Climate Action100+ and the Institutional Investors Collective
Engagement Forum.

 We consider that ourissues are: morecomprehensive andsystematic inclusionof non-financial
information,
increasing theeffectiveness ofcollaborative
engagements
including initiatives
we newly
participated in, andincreasing thesophistication of ourengagements
through participationin collaborative
engagements.

Principle ３
Monitor investee
companiesPrinciple ４
Engagements withcompanies







9. Report on Stewardship Activities (self-evaluation and evaluation by others)

58

Our Compliance with Japan’s Stewardship Code (self-evaluation)
Principle
Principle ５
VotingStatus of efforts

Principle ６
Report periodicallyPrinciple ７
Acquire competency







Self-evaluation

In FY2020, the Responsible Investment Dept. exercised all voting rights for 1,520 listedcompanies in Japan (we did not use any services of voting advisory companies).
We revised our voting policy and announced the details in March 2021 based on deliberations at
the Responsible Investment Committee. The timing for applying the revised policy is set to aperiod deemed feasible for companies to appropriately adapt to each item of the revised policy.
Every quarter, we disclose the aggregated results of each type of agenda item that has been
voted on, as well as the number of votes in favor and against the proposals by individual investee
company and each agenda item. we disclose the reasons for any agenda item we deem especiallyrequire an explanation, irrespective of whether we voted in favor or against the item.



We evaluate that weare executing thisprinciple appropriately
by revising our voting
policy and disclosing
our voting activity,
including reasons forvoting in favor oragainst proposals.

The status of our overall stewardship activities is disclosed each fiscal year in the Stewardship
Activities Report (Responsible Investment Report since FY2018) available on our website.
Our entire voting policy, any scheduled revisions of the policy, and the quarterly voting results aredisclosed on our website.

We evaluate that weare executing thisprinciple appropriately
by disclosing our
responsible
investments, including
stewardship activities,
on our website, etc.

We established the Responsible Investment Dept in April 2017 to consolidate personnel andfunctions related to stewardship activities. It seeks to increase the sophistication of our efforts for
stewardship activities, accumulate know-how, and train talents.
We regularly held in-house workshops for improving engagement skills and acquiring knowledge
on environmental and social issues surrounding companies, inviting external experts as lecturers.
We participated in opinion exchange for inviting external experts and investors, held at theWorking Group for Stewardship Activities of the Life Insurance Association of Japan.
We actively exchanged opinions with other financial institutions and participants of initiatives suchas The Net-Zero Asset Owner Alliance on climate change-related measures.

 We evaluate that weare executing thisprinciple appropriately
by consolidating
personnel andfunctions through theestablishment of the
Responsible
Investment Dept., aswell as throughparticipation inworkshops and opinion
exchange with external
experts and investors.

９. Report on Stewardship Activities (self-evaluation and evaluation by others)

59

Engagement Partner Survey Results (evaluation by others) We conducted an anonymous survey that was sent to engaged companies and others. The results showed that our engagement
and the content of our Responsible Investment Report are highly evaluated compared to previous year.
 Although there are a certain number of companies that keep feedback of engagement with us at the level of department in charge,
rather than at the board of directors / executive officers, the more companies have reported it to senior managements compared
to last year.
 We will take stock of the opinions received in the survey for further improving our engagement activities.

Was Dai-ichi Life’s engagement
helpful?

Was the Responsible Investment
Report useful?

Did the Dai-ichi Life person in charge ofengagement fully understand yourcompany’s situation?
72%

68%

53%

58%

58%

39%

38%
31%

To some extent

3%1%

Not really

Understood fully

2020年
41%

Not fully /to some extent

not at all

Officer in charge of businessplanning, finance, IR, etc.
Dept. in charge of business planning,

34%
33%

finance, IR, etc.

6%2%Very much

To some extent

Not really

Examples of measures taken basedon the opinions received◆Engagement

12%
17%

Board of directors

1% 0%

1%

Understood

To whom you report feedback of engagement with us .

Have not sent feedback

46%

27%

4%
Very much

2019年

59%

48%
49%

* Multiple
answers allowed• Flexible time settings for engagement (more than 1 hour)• Accumulation of good practices of other companies andposting them in engagement materials
 Responsible Investment Report• Creating summary slides that make it easy to understandthe points of efforts

60(Reference) 2020 Result of PRI assessments
 In the 2020 PRI assessment, we received the highest “A+” score in four modules and above
the global median score in all modules for the third consecutive year.
module2019

2020（Assessment period:（Assessment period:
January–December 2018 )） January–December 2019）

Dai-ichi’s（Median）
score

Future initiatives based on the results

Dai-ichi’s（ Median ）score

Strategy andGovernance

A

（A）

A+

（A）



Establish systematic climate change risk analysis and social impact
measurement methods for the entire investment portfolio

Listed Equity Incorporation

A

（B）

A+

（A）



Adopt ESG index as a benchmark for foreign equity investments

Listed Equity Active Ownership

A+

（B）

A+

（B）



Consider expanding disclosure of engagements

Fixed Income

A

（B）

A

（B）



Consider setting in-house rankings for SSA based on ESG analysis

Enhance measures for properties held to reduce Dai-ichi Life’s CO2
emissions(e.g., change to renewable energy, obtain environmental certification)

Property

A+

（B）

A+

（B）

* As the result of PRI assessment of 2021 will be disclosed in 2022, the latest result is 2020 assessment.
* Fixed income score is the average of four modules(SSA, corporate financial, corporate non-financial, and securitized)* Number of PRI signatory institutions as of the end of August 2020: 3,311

９. Report on Stewardship Activities (self-evaluation and evaluation by others)

61

Message from the General Manager of the Responsible Investment Dept.

Toward Responsible Investment Activities Leaving No One Behind in a Dramatically Changing Economic and Social Environment
Thank you for your continued understanding and cooperation with Dai-ichi Life responsible investment activities.
The "Responsible Investment Report" , is a new version of the previous "Stewardship Activity report" and has been published a s a booklet for the third year since2021. Over the past three years, the global economic and social environment has drastically changed. After Japan revised its Stewardship Code in June 2020, the way
in which people work and communicate has changed in the face of the ongoing COVID-19 pandemic. Interests in climate change and other sustainability initiatives
grows more rapidly, and sustainability efforts have become essential to companies as well as investment activities. Japan’s Corporate Governance Code revised in June
2021 also clarifies the necessity of tackling sustainability issues.
Companies and institutional investors are doing everything in their power to not be left behind in this rapidly changing environment, but not everyone can keep up

with the tremendous speed of these changes. In February 2021, Dai-ichi Life became the first institutional investor in Asia to join the Net-Zero Asset Owner Alliance,
committing to targets to make our investments portfolios carbon neutral by 2050. However, as not every sector can further reduce GHG emission reductions at thesame pace, it is essential to provide supports to encourage initiatives of companies, such as building infrastructure or expanding investments in technologicalinnovation to make the transition to a low-carbon society.

Therefore, Dai-ichi Life, as a long–term investor, aims to facilitate responsible investment activities that “no one leavebehind”, by staying close with each company facing various challenges, conducting engagements, and providing financial
supports to help resolve such challenges. At a time when sustainability initiatives are commonplace for institutional
investors worldwide, we must clarify what kind of “outcomes” our responsible investment activities provided.
We would like to promote responsible investments committed to the next generation of sustainability by presenting theimpact of investments, issues resolved through engagement, and other outcomes in a form shareholders can see with

their very own eyes.
September 2021

Hiroko Ishii, General Manager,
Responsible Investment Dept.

62

Table of Contents

1. Message from the
President---2

2. Main Initiatives of
Responsible Investment
Activities---3

3. Our Role as a
Responsible Investor---4

4. Basic Policy on ESG
Investments---5

5. Our Approach for
Responsible Investment---7

6. Our Framework for
Responsible Investment---8

7. Highlights---10

8. ESG Investment Report

Our History for ESG Investment
and 2020 Review
ESG-themed investment
ESG integration

9. Report on Stewardship
Activities









---15

Basic approach and processes
Our History for stewardship
activities and Review
Examples of engagements
Policy for FY2021
Voting Policy and Voting records
Self-evaluation and evaluation byothersMessage from the General
Manager of the Responsible
Investment Dept.
Reference (Glossary)

---35

63

(Reference) Glossary* In alphabetical order
Term

Blue bonds

Explanation

Bond issued by limiting the use of funds forpurposes related to water, such as marine andocean conservation, sustainability of thefishing industry, and waste processing

Carbon neutral

Balance between the amount of greenhousegas emissions and absorption throughgreenhouse gas reduction, absorption andother initiatives.

Climate Action
100+

A global initiative of institutional investors thatengages companies with large greenhouse gas
emissions to take actions, including improving
climate change governance, curbing emissions,and strengthening information disclosures

Collaborative
engagement

Multiple investors collaborate to holdengagement with companies aimed atincreasing their mid- to long-term corporate
value

Corporate
Governance Code

Code of conduct on corporate governanceoutlining behavioral standards to be followedby listed companies. Established in 2015, it
provides guidelines for securing shareholder
rights and equality, ensuring appropriate
information disclosure and transparency, andthe responsibilities of the board of directors.

Term

Explanation

Engagement

Dialogue between investors and companies
aimed at increasing their mid- to long-term
corporate value

ESG

Stands for Environment, Social, andGovernance. It is often used in the context ofcorporate initiatives for increasing corporate
values through environmental and social
considerations and enhancement of corporate
governance, as well investment strategies of
institutional investors that reflect suchcorporate initiatives.

ESG integration

Systematic inclusion of ESG factors ininvestment decision-making (buy or sell)
processes

FinTech

Term coined by combining finance andtechnology. It refers to innovative efforts thatlink financial services and the latest
information technologies.

GHG

Acronym for greenhouse gases, which includes
carbon dioxide (CO2), methane (CH4), nitrous
oxide (N2O) and other gases causing thegreenhouse effect64(Reference) Glossary* In alphabetical order
Term

Explanation

Term

Explanation

Green bond

Bond issued to raise funds needed forenvironmental initiatives (tackling global
warming, renewable energy measures, etc.)

Materiality

Critical issues related to the environment,
society, governance, and other areas that may
have a significant impact on the sustainabilityof a company’s business model

Hedged foreignbond

A foreign bond that can reduce the impact offoreign exchange fluctuations on income andexpenditure by using a mechanism that avoids
foreign exchange fluctuation risks (hedging)

Negative screening

Exclusion of specific industries and companies
from the investment portfolio

Hurdle rate

One standard of investment evaluation
indicating the minimum rate of return

Portfolio

A collection of financial products (stocks,
bonds, etc.) held by investors

InsTech

Term coined by combining insurance andtechnology. Similar to FinTech, it refers to thecreation of new insurance services throughcombining insurance and the latest
information technologies.

Positive screening

Selection of specific industries and companies
to include in the investment portfolio

PRI

Acronym for Principles for Responsible
Investment. An initiative advocated by then
UN Secretary-General Annan to the financial
industry in 2006. It presents principles aimed
at incorporating ESG issues into investment
decision-making by institutional investors.

KPI

Acronym for Key Performance Indicator. An
important indicator measuring progress
toward achieving a business goal.

65(Reference) Glossary* In alphabetical order
Term

Explanation

Project finance

Provision of funds obtained from a specificproject (cash flow) as a source of repayment

QOL

Acronym for Quality Of Life

Resilience

An ability to adapt flexibly to thecircumstances, including strong externalpressure

ROE

Acronym for Return On Equity. It is the ratioof net income to a company’s own capital, andis one of the management efficiency indicators
showing how much profit is generated relative
to capital.

SBT

Acronym for the Science Based Targets
initiative that sets greenhouse gas reduction
targets for companies conforming to acceptedscientific knowledge inline with the standards
outlined in the Paris Agreement

Term

Explanation

Scope 1
Scope 2
Scope 3Categories of greenhouse gas emissions;
Scope 1 refers to direct emissions fromcompanies; Scope 2 refers to power
consumption and other indirect emissions;
Scope 3 refers to all other indirect emissions
throughout the entire supply chain

SDGs

Acronym for the Sustainable Development
Goals. They are international goals adopted at
the UN Summit in September 2015 to create asustainable and better world by 2030, andconsist of 17 goals and 169 targets.

SDGs bondBonds that limit the use of proceeds toprojects that contribute to the SDGs

Social bond

Bond issued to raise funds needed for solvingsocial issues

66(Reference) Glossary* In alphabetical order
Term

Stewardship
activities

Explanation

Activities by institutional investors to improveand foster investee companies’ corporate
value and sustainable growth throughconstructive engagement, or purposeful
dialogue, and the exercise of voting rights

Code of conduct of institutional investors topromote the sustainable growth of companies.
Established in 2014, it provides guidelines for
Stewardship Code the formulation of stewardship policies,
development of structures for conflict ofinterest management, exercise of voting rights,
and other efforts.

Sustainability
bonds

Bond issued by limiting the use of funds tobusinesses contributing to environmental andsocial sustainability

Term

TCFD

Explanation
Acronym for Task Force on Climate-related
Financial Disclosures, which was establishedby the Financial Stability Board in 2016. It
presents a framework for companies tovoluntarily disclose climate-related risks andopportunities.

Provision of funds for initiatives to transition
Transition finance out of an economy that uses large quantities
of coal to a low-carbon economy

Universe

A collection of financial products (stocks,
bonds, etc.) chosen for investment inaccordance with a certain objective

WACI

Acronym for weighted average carbon
intensity calculated by multiplying the carbonto-revenue intensity of each company by theholding ratio of our portfolio

67

The Dai-ichi Life Insurance Company, Limited

13-1,YURAKUCHO 1-CHOME,CHIYODA-KU,TOKYO,
100-8411 JAPANTEL: +81-3-3216-1211
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