Table of Contents
1. Message from the
President---2

6. Report of Actions for ESG
Investment


2. Our Role as
Responsible
Investor---3

3. Approach for
Responsible
Investment---4

4. Our Framework for
Responsible
Investment---55. Highlights

Looking back on past efforts andactions
2019 effort policies
ESG-themed investment results
Examples of efforts for ESG
integration

7. Report on Stewardship Activities






---8

---13

---32

Basic concepts and processes
Looking back on past efforts andactions
Example of engagements
2019 effort policies
Reference materials- Situations responding to
Stewardship Code- Standards for exercising voting rights- Results of exercising voting rights

1

Message from the President
We aim for both obtaining investment return and solving social issues through "Dai-ichi Life's responsible investment", in order to respond to expectations from various stakeholders including policyholders.
Asset management as a life insurer
Since the Sustainable Development Goals (SDGs) were adopted by the United Nations Summit in 2015, there have been growing expectations for"contributions to solve social issues" by companies and financial institutions both inside and outside Japan. In recent years, international conferences
and symposiums have been held all over the world to support the initiatives.
Life insurance companies, as institutional investors, have provided long-term capital to contribute to solve various social issues including developing
new industries and changing social structures. In the current situation where international societies are making efforts in cooperation to solve social
issues for the purpose of realizing a sustainable society, the responsibility of investment in insurance companies is growing more important than before.
Based on the background, our company raised a “responsible investment” with two pillars—ESG investment and Stewardship Activities—as one of
our important initiatives for improving investment management, and is making efforts even more actively.

Dai-ichi Life's responsible investment
With total asset of ¥36 trillion received from 10 million policyholders throughout Japan, Dai-ichi Life, as a “universal owner” investing in variety of asset
classes, acknowledges that we need to conduct investment by considering various stakeholders. Therefore, our mission is not only to obtain investment
return but also to make contributions to solve local and social issues and actively promote "Dai-ichi Life's responsible investment".
As our business is conducted globally, with the base in Japan, we are also promoting our ESG investment across assets through important themes
below.
• “Quality of life Improvement ": Value creation of Dai-ichi Life Group• “Local development and revitalization": Solving local social issues• "Mitigation of climate change": Solving global social issues

In addition, we raise “By your side, for life” as a group mission and carry out stewardship activities mainly throughengagements with mid to long term viewpoints on different issues from various investee companies by each growth stage.
Specifically, we help companies to create corporate value by supporting “establishment of governance system”, “advancementof management strategies / capital policies” and "promotion of initiatives to solve social issues“.

Together with our stakeholders

We have prepared this “Responsible Investment Report” to convey our thoughts and efforts for responsible investment
through life insurance company’s investment to all stakeholders including policyholders, shareholders, clients and local
communities.
To realize a sustainable society, we would like to continuously make a contribution to solve social issues through our ESG
investment and stewardship activities.

Seiji Inagaki,
President andOctober 2019 Representative Director
2Our Role as Responsible Investor
 With 10 million customers throughout Japan, Dai-ichi Life, as an “universal owner” which hold multi
asset class in our portfolio, believes it is essential to pursue investment strategy & management for
caring various stakeholders.
 We are aiming for both obtaining mid to long term investment returns and solving social issues bypromoting responsible investment (ESG investment / Stewardship Activities), one of the important
issues for advancements of life insurance company's investment management.
ESG
Investments
Localcommunities

Customers

About 10
millionInsurance
premium

Universal
owner

Dai-ichiLife
Insurance
claimsTotal assets:
About¥36 trillion

Investee /financingcompanies- Country, local
governments- Companies- Real estate, etc.

Aiming forboth obtaining
investment returns
and solving social
issuesShareholders
Engagements throughStewardship Activities

3

Our Approach for Responsible Investment

ESG investment

Stewardship Activities

ESG-themed
investment

ESG integration

Engagements(Dialogues)

Exercising voting
rights

We make investments in awide variety of assets thathave ESG themes leading
to solving issues, to aim forboth obtaining investment
returns and solving social
issues.

With the ESG factors
systematically incorporated
into the investment process,we aim for improving mid
to long term investment
returns and making
contributions to solve
social issues.

Based on the Stewardship
Code and Corporate
Governance Code, we
engage in constructive
dialogues with investee
companies to facilitate
their sustainable growthand consequently to aim
for the improvement of
mid to long term
investment returns.

We closely examine the billsof the shareholders‘ general
meetings to makejudgments for approval ordisapproval based on thedetails of the engagements.
This is also in accordancewith the standards forexercising voting rights
established in terms ofraising the corporate valueof the investee companies,
and enhancing theirsustainable growth.

From p. 17

From p. 27

From p. 32

From p. 32
4

Our Framework for Responsible Investment
 We formulate important policies regarding our responsible investment activities through deliberations
at the "Responsible Investment Committee"—of which the majority of its members are external
committee members. We are promoting efforts in the entire asset management department throughactivities including following up progress, and having discussions in the "Responsible Investment
Meeting“.
 Moreover, we use the annual assessment results for the Principles of Responsible Investment (PRI) to
improve the level of our efforts based on global standards.

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

Asset management department
ESG investment

Responsible
Investment

Stewardship Activities

Providingannualreports

Formulated in 2005. Global
standards for responsible
investment.
Advocated incorporating
ESG issues into investment
decisions, in order toachieve a sustainable
society.

5

(Reference) 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 andconfirmations are made for important policies regarding responsible investment and important exercising of voting rights, etc. These arebased on the perspectives regarding management for conflicts of interest with life insurance contracts.

Achievements

Makeup of Committee members
Name/title

Internal Committee
members
External Committee members(As of October 2019)<July 2018 to June 2019>

Attendance countKazuyuki Shigemoto
Chairperson Responsible Investment Center3 times/
3 times(Including
formerappointment)

PeriodSeptember
2018• Results of exercising voting rights for importantbills in FY2017*• Policies on Stewardship Activities in FY2018• Efforts for improvements in 2019 based on PRI
assessment results in 2018

March 2019

• Policies on ESG investment in FY2019• Revision of "standards for exercising voting rights"• Approval or disapproval of general shareholder
meeting bills on companies that were the cause ofa scandal*

Ichiro Okamoto
Executive Officer in charge of the ComplianceControl Department

3 times/
3 times

Tetsuya Hishida
Partner / Auditor
Industrial Growth Platform, Inc.

3 times/
3 times

Haruka Matsuyama
Attorney at Law and Partner
Hibiya Park Law Offices

3 times/
3 times

Kikuo Kuroiwa
Former President and Representative Director
Robeco Japan Company Limited•

2 times*/
3 times

Written opinions delivered for deliberation agenda
when an absence occurred

Main deliberation agenda / reported matters

June 2019• Approval or disapproval of general shareholder(Specially held)
meeting bills on companies that were the cause ofa scandal or had a governance-related problem** Verified that there were no problems in exercising
judgment at a department responsible for managing
conflicts of interest
6

(Reference) Our Recent Progress for Responsible Investment
 Since we signed on the PRI, we proceeded with developing an internal system for promoting
responsible investment, and received the Minister of the Environment Award in FY2017.
 We are making efforts to promptly incorporate global trends into our system through active
participation in taking international initiatives.

2015

2016

2017

2018

2019

Formulating our policies on ESG investment
Responsible Investment Center

SignedPRI

Responsible Investment Committee
Responsible Investment Meeting
the Ministerof theEnvironmentAward Award from the Minister for of the Environment（March 2018）
The reason for our selection for the award

Seiji Inagaki,
President andrepresentative Director•

We have been promoting investments based on our social responsibilities as an institutional
investor, and have been systematically making efforts for ESG-themed investment and ESG
integration.

•

We have been making advanced efforts to develop a system for promoting responsible
investment, e.g., formulating our "policies on ESG investment" every year, and newly establishinga responsible investment meeting and Responsible Investment Committee.

Mr. Nakagawa (at that time),
Minister of the Environment

7

Highlights - As a Responsible Institutional Investor Open foreign
bonds

Operating assets

About ¥

36 trillion* End of FY2018

ESG-themed investment
Balance ofinvestment

Project related to power
generation throughrenewable energy/finance

About ¥160 billion

Impactinvestment

Shares, etc.

5%
3%
3%
7%

Cash and cash
equivalents, call,
etc.

10%
Composition49%
of assets

7%
Loan amount

16%

Public &corporate bonds

Hedgedforeign bonds

Engagements

About ¥400 billion

SDGs bond

Other

Real estates

Balance of assets

About ¥120 billion

About ¥6.4 billion(13 cases)* As of September 2019

Number of companies
engaged in dialogues

251
companies

Rate of interviews with
officers

About 61%
* FY2018

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

FY2018About 92%

About 59%
(based on gained market value)82019 Result of PRI assessments
Result of PRI assessments
 In the 2019 PRI assessment, we gained an evaluation above the global average (*) in all fields, in 2
consecutive years.
 Based on the results, we will further improve our efforts to advance responsible investments.
* Number of PRI-signed institutions as of October 2019: 2622 companies (Total assets of signed companies
are more than 80% of those of companies in the world.)

2018(Assessment period:
January–December 2017)2019(Assessment period:
January–December 2018)

Future initiatives based on the results

Area

Dai-ichi’s score

AverageDai-ichi’s score

Average

Strategy andGovernance

A

A

A

A

Enhance integration of climate change risks
and opportunities

Listed Equity
Investment

A

B

A

B

Commence incorporating ESG elements into
the research of non-Japanese Equities

Stewardship
Activity

A+

B

A+

B

Participate in cooperative engagements
inside and outside of Japan

Fixed Income
Investment

B

B

A

B

Formulate policies on engagements as abond investor

Real Estate
Investment

A+

B

A+

B

(Consider further improvements based on
global trends)*Fixed income score is the average of four areas (sovereign, corporate (financial), corporate (non-financial) and securitized
products)
9As a Responsible Institutional Investor
Participating in initiatives
First domestic life
insurance signed(Signed in November 2015)

Principles formulated in answer to a call from the then-United
Nations Secretary General Kofi Annan in 2005. Global
standards for responsible investment. Advocated incorporating
ESG issues into investment decisions, in order to achieve asustainable society.
First domestic life
insurance signed(Signed in September 2018)

Task force established in December 2015 by the Financial
Stability Board (FSB) based on the request from G20. Grasped
opportunities and risks related to climate changes, andreleased a proposal to encourage information disclosure.

(Signed in August 2019)

The initiative of institutional investors, that engages inconstructive dialogue regarding matters such as efforts for
reducing emissions and disclosing related information withcompanies that emit significant amounts of green-house gas.

First domestic life
insurance signed(Signed in September 2018)

Evaluated the top 20 global pharmaceutical companies toimprove access to pharmaceuticals in developing countries(released indices). Its purpose is to facilitate improvements foraccess to pharmaceuticals by incorporating the indices when
institutional investors make investment decisions.

First domestic life
insurance signed(Participated since 2011)(Signed in September 2019)"Principles for Financial Action towards a Sustainable Society".
Action guidelines formulated in October 2011 for financial
institutions to facilitate actions for forming a sustainable society.

An initiative that aims for the promotion of sustainableeconomic development and a globally-effective market througheffective improvement of corporate governance and investors'
stewardship.
10

Highlights - As a Responsible Institutional Investor Efforts to accelerate diffusion

We are aiming to improve our profitability from ESG investments and achieve a sustainable society throughcontributing to market development for ESG investments.

Participating in government-led meeting bodies and research groups, etc.
 MoE

 Nomura Institute of Capital Markets
Research

ESG Finance High-Level Panel(February 28, 2019)

Research Group on Sustainable Development of the
ESG Bond Market(February 2018 to June 2019)(Seiji Inagaki, Representative
Director and President)

Presented in various seminars
 "TCFD Forum" co-sponsored by
the Japan Exchange Group(JPX) and PRI (June 11, 2019)"The Era of Sustainable Finance- ESG/SDGs and the Bond
Markets" seminar co-sponsoredby Nomura Securities Co., Ltd. /Bloomberg L.P.

Report of the Research Group:"The Era of Sustainable Finance ESG/SDGs and the Bond
Markets", Kinzai Institute forFinancial Affairs

Efforts of the Life Insurance Associationof Japan The position ofchairperson was
appointed for WGs for the
FY2018 ESG
investment/financing
promotion andstewardship. Issued
reports as a result ofactions taken.
"Initiatives by Life Insurers to Reinvigorate theEquity Market and Achieve a Sustainable Society
through Asset Management"

Published in various magazines
 PRI in Person 2019
(September 10–12, 2019)

 Disclosure & IR (August 2019 edition)"ESG investment entered a new stage" Weekly Financial Affairs (September 9, 2019
edition)"Impact investment of Dai-ichi Life aiming for bothinvestment income and social results"

 AL-IN September edition (Vol. 53), separate
volume "ESG2019""The response to climate change, focusing on
positive/impact investments, is this fiscal year's theme."(Miyuki Zeniya, Executive Sustainable Finance Specialist)11

Table of Contents
1. Message from the
President---2

6. Report of Actions for ESG
Investment


2. Our Role as
Responsible
Investor---3

3. Approach for
Responsible
Investment---4

4. Our Framework for
Responsible
Investment---55. Highlights

Looking back on past efforts andactions
2019 effort policies
ESG-themed investment results
Examples of efforts for ESG
integration

7. Report on Stewardship Activities






---8

---13

---32

Basic concepts and processes
Looking back on past efforts andactions
Example of engagements
2019 effort policies
Reference materials- Situations responding to
Stewardship Code- Standards for exercising voting rights- Results of exercising voting rights

12Our History for ESG Investment and 2018 Review

Since 2015 when we signed PRI, we have been making extended efforts to continuously improve ESG
investments
In FY2018, we strengthened monitoring for ESG-themed investments and improved Japanese Equities ESG fund.
Investments
on a case-by-case basis

FY

FY2010FY2013

FY2014

Infrastructuredevelopment

FY2015FY2016

Extendingefforts

Deepening efforts

FY2017FY2018Renewable energy power plant-related investments and loans

ESGthemed
investment

Investments in SDGs bonds issued bymultilateral development banks,etc

Started monitoring the use of funds, etc.

Impact investment
Regional revitalization investment
and loans
Japanese Equities ESG funds managed in-house

Improve portfolio utilizing ESG research

Incorporation ESG factors into research process

ESG
integration

ESG engagement

Started engagements as a bond investor

Negative Screening
Promote use of ESG Investment

13

FY2019 Policies for ESG Investment
ESG-themed investment

ESG integration

Boost investments and financing
on three important themesInvesting in vaccine
bonds issued byinternational financing
facilities for
vaccinations

Climate change

Contribute to solving climate change issues
through project finance related to renewableenergy generation, andinvestments/financing in green bonds

Quality of life improvement

Contribute to improve Quality of life,
including extending healthy life expectancies
through investments into venture companies
that create innovations in the healthcare field

Investing andfinancing in project
finance for wind
power generation

Regional development / Regional revitalization

Contribute to improve Quality of life ofpolicyholders through investment/financing
of assets, and developing real estate, inorder to contribute to regional development
and revitalization

Early development of organization
responding to market movements

Investing in the
Toranomon 2-chome
redevelopment
project

Strengthen responses to climate change issues• Introduce analysis of climate change risks
and opportunities to incorporate ESG
elements into research (Stock/Credit)• Start to encourage investee companies todisclose their information based on TCFD
through engagementsExtend efforts• Start in-house ESD fund investment in
non-Japanese Equities, in addition
Japanese Equities• Start to incorporate ESG elements into
research of non-Japanese Equities

14

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

Definitions

ESG-Themed Investment

Investment in fields that help resolve social issues premised on secure
investment returns

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.)

Other

ESG Integration

Investing in SDGs bonds, project finance related to power generation
through renewable energy, investing and financing to contribute toregional development / regional revitalization
Systematic integration of ESG factors into the investment process

Integration into
Research

Systematic integration of ESG factors into analysis and evaluation
performed by 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
15

Table of Contents
1. Message from the
President---2

6. Report of Actions for ESG
Investment


2. Our Role as
Responsible
Investor---3

3. Approach for
Responsible
Investment---4

4. Our Framework for
Responsible
Investment---55. Highlights

Looking back on past efforts andactions
2019 effort policies
ESG-themed investment results
Examples of efforts for ESG
integration

7. Report on Stewardship Activities






---8

---13

---32

Basic concepts and processes
Looking back on past efforts andactions
Example of engagements
2019 effort policies
Reference materials- Situations responding to
Stewardship Code- Standards for exercising voting rights- Results of exercising voting rights

16

Our ESG-themed Investment
 ESG-themed investment has accumulated the assets and reached to ca. ¥400 billion.
 Mainly, we actively invested/financed in SDGs bonds and SDGs business(social infrastructure development and environment preservation, etc.).

<ESG-themed investment assets change> TotalAbout¥400 billion

 Breakdown
2000

1500
1000

About
¥160 billion<Investment/financing in
SDGs bonds, etc.>
Funding for international institutions andcompanies that promote business
contributing to achieving SDGs

500
0
2015

2000

1500
1000

2016

2017

2018

<Investment/financing in
SDGs business, etc.>

About¥180 billion

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

Renewableenergybusiness:
About ¥120
billion500

2015

Signed
PRI

2016

2017

2018

2019

2019

0
2015

2016

2017

2018

2019

* In addition to the above, ESG-themed investments include impact
investments and real estate investments that contribute to regional
development and revitalization.
17

ESG-themed investment for SDGs bonds
Funding for international institutions and companies
promoting business contributing to achieving SDGs
(Green, social, sustainability bonds, etc.)

Total investment assets: About ¥160 billion
EuropeWorld Bank Group

Microfinance Bond (EBRD)• Financial support to SMEs and microenterprises in developing countries
Health Bond (EBRD)• Support for improvement of medical
services in East/Central European countries
Environmental Sustainability Bond (EBRD)• Support for renewable energy projects inEast/Central European countries

Inclusive Business Bond (IFC)• Support for companies that actively integrate
low-income communities into their value chain
Green Bond (IBRD)• Support for climate mitigation and adaptation
activities
Vaccine Bond (IFFIm)• Support for development of new vaccines
Sustainable Development Bond (IBRD)• Support for food loss and waste issues

Asia-Pacific
Health Bond (ADB)• Support for health projects in the
Asia-Pacific
Gender Bond (ADB)• Promote women's empowerment in
the Asia-Pacific

AfricaFeed Africa Bond (AfDB)• Support for agricultural businesses inAfricaLight Up and Power Africa Bond (AfDB)• Support for electricity and energy
infrastructure development in Africa

Japan
Tokyo Green Bond (Tokyo Pref.)• Support for smart city projects inTokyo

Latin America/Caribbean
EYE Bond (IADB)• Finance EYE(Education, Youthand Employment) projects
18* Described cases issued by multilateral development banks and the government, etc.

ESG-themed Investment 2019 Highlights: for SDGs bonds

Project title・summary

Green Bond （IBRD）―Support for climate mitigation andadaptation activities

Environmental Sustainability
Bond （EBRD）―Support for renewable energy
projects in East/Central European
countries

Sustainable Development Bond
（IBRD）―Support for food loss and waste
issuesVaccine Bond （IFFIｍ）―Support for development of new
vaccines

Investment
amount¥10.8
billion

Focused theme

ClimatechangeJune 2019¥10.8
billionClimatechangeJune 2019¥10.8
billionQuality of life
improvement

July 2019¥5.2
billionQuality of life
improvement

July 201919

ESG-themed Investment: Investment & Financing for SDGs
Business
Total investment assets: About ¥180 billion

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

North America
EuropeOther
About¥19billion Renewable
EnergyAbout ¥24
billionRenewable
EnergyAbout ¥12
billionJapan
Germany: Offshore wind
power generation(January 2017)

Asia-Pacific

AfricaOther
About ¥6
billionRenewable
EnergyAbout ¥7.1
billionOther
About¥29billion

Other
About ¥7.5
billionRenewable
EnergyAbout ¥74
billionFukushima Prefecture:
Solar power generation(August 2015)

South America
Turkey: Hospitaldevelopment/operation(July 2017)

Côte d'Ivoire: Support government
for infrastructure development(June 2019)

USA.: Energy-efficient
LNG power generation(April 2015)

Renewable
EnergyAbout ¥2.7
billion
Peru: Railway
development(March 2019)20

ESG-themed Investment: Investment and Financing for Renewable
EnergyTotal investment balance: About ¥120 billion
Renewable energy division

Project finance forsolar power generation
business

Project finance forwind power generation
business

Project finance forbiomass power generation
business

Balance of investment

Focused theme

About ¥51 billion
Domestic:
About¥44 billion

Overseas:About¥7 billion

About ¥42 billion
Domestic:
About¥11 billion

Overseas:
About¥31 billion

ClimatechangeClimatechangeAbout ¥27 billion
Domestic:
About¥21 billion

Overseas:
About¥60 billion

Climatechange21

ESG-themed Investment: Impact Investment
Total investment assets: About ¥6.4 billion(13 investments)
Company

Improving
Qualityof lifeClimateChangeOther

Investment intended to both obtain investment return andcreate social impacts (society's structural change, etc.)

Business summary

Investment
amountResearch and development of“treatment applications” fornicotine dependency¥1000
millionDevelop and provide theeyewear for low-vision patients¥300
millionResearch and development ofmobile application for
insomnia treatment¥100
millionDevelop apps measuring cognitive
functions by eye tracking¥800
millionResearch and development ofworld’s first avatar robot, which
has the closest performance tohuman hands¥300
millionDevelop a visualizing system forthe early detection of breast
cancer¥200
millionDevelop and provide an
antibody/peptide drug discovery
platform that uses AI¥100
millionDevelop and provide solutions
utilizing IoT and AI toward realizing
smart nursery care centers¥300
millionDevelopment of nextgeneration bio materials¥1000
million

Venture fund focusing on theenergy and resource related
sectors¥1000
millionDevelopment of wind turbines
capable of generating electricity
even in typhoons¥200
millionMicro-finance business indeveloping countries¥1000
million

Provide financing-type crowd
funding services¥100
millionCompany

Business summary

Investment
amount22

ESG-themed Investment: 2019 Highlights of Impact
Investment
Company・Business summary

Challenergy Inc.
―Development of wind turbines capable ofgenerating electricity even in typhoons

NeuroTrack Technologies, Inc.
―Develop apps such as "NeuroTrack Cognitive
Function Test," which measures cognitive
functions by eye tracking

Integral Geometry Science―Develop a visualizing system for the early
detection of breast cancer

UniFa Co., Ltd.
―Developing solutions utilizing IoT and AI
toward realizing smart nursery care centersthat are comfortable workplaces for nurserycare workers

Social Impacts
Reduce CO2
emissionsby replacing
fossil fuel power
generation

Extendinghealthy life
expectancy
by preventig of
Dementia

Investment
amountFocusedtheme¥200
millionClimatechangeFebruary
2019¥800
millionJuly 2019

Qualityof lifeimprovement

Reduction in thebreast cancer¥200
fatality rate
millionthrough the early
Septemberdetection of2019
breast cancer

Qualityof lifeimprovement

Resolving thelengthynursery care
waiting list
problem

Qualityof lifeimprovement¥200
millionSeptember
2019

23

(Reference) Why Dai-ichi Life does Impact Investment?
 Aim of impact investment

Establishing innovation

Impactinvestment

Obtaining
investment
incomeFinTechEnvironment / renewableenergyHealth care
Medical services /biotechnology

InsTechNew insurance
products/services

Creatingsocialimpacts* Regularly monitored

Investment destinationcompanies

Raising corporate
valuesViewpoints for case selection① The management shouldhave clear visions for solvingsocial issues.

(2) A certain feasibility should be present.
(* Comprehensively determined, concerning the viewpoints below)

Businessinnovation

Market share24

ESG-themed Investment: Regional Development / Regional
Revitalization
Comprehensive partnership agreementwith the Institute for Advanced
Biosciences, Keio University

Signed inAugust 2018

Made investment
Toranomon 2-chome redevelopment
decision in March 2019
project- We invested in ventures and demonstration experiments as apart of the partnership agreement to support social implementationof innovations created by the Institute.

Investment- We will utilize our knowhow of improving Quality of life
obtained in the life insurance business to redevelopment
planning, and will contribute to regional revitalization.

Investment
Comprehensive
partnershipagreement(Eradicate heart failure
by regenerative medicine)(Develop a kit for
diagnosing depression)

Institute for Advanced
Biosciences,
Keio University(Develop next-generation biomaterials)(Accelerate drug development
utilizing AI)

Tsuruoka Bioscience Park

25

Table of Contents
1. Message from the
President---2

6. Report of Actions for ESG
Investment


2. Our Role as
Responsible
Investor---3

3. Approach for
Responsible
Investment---4

4. Our Framework for
Responsible
Investment---55. Highlights

Looking back on past efforts andactions
2019 effort policies
ESG-themed investment results
Examples of efforts for ESG
integration

7. Report on Stewardship Activities






---8

---13

---32

Basic concepts and processes
Looking back on past efforts andactions
Example of engagements
2019 effort policies
Reference materials- Situations responding to
Stewardship Code- Standards for exercising voting rights- Results of exercising voting rights

26

Framework of ESG Integration
Incorporating into research (equities/credit)
Analyzing industries

Analyzing individual companies

Analyzing
financial affairs

Analyzing financial information
Grasping
quantitative
industrial
characteristics

Analyzing nonfinancial affairs

Identifying
elements ofhighimportance(Materiality)

From
2019

Analyzing the impactsof climate change
across industries

Analyzing growthpotential

Analyzing safety[Main analysis items]- BS, PL
- Segment
information- Market share, etc.

Analyzing non-financial
information (ESG) impacting
corporate values(Considering results ofengagements as well)[Main analysis items]- Governance- Research and- Management
development
strategies- Human capital, etc.

Reflecting on
internal ranking

Setting
internal
rankings
considering
ESG
elements

Reflecting on
investment
decisions

Additionalpurchasing
and selling,etc., basedon internalranking

Conducting
notch
adjustments, etc.

From
2019

Evaluating the impacts ofclimate change on eachcompany27

Framework of ESG Integration
Positive screening (Japanese Equities)
 ESG fund construction method for Japanese Equities

ESG Index adopting
brands, etc.

(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 Management brand

Screening in terms of G (governance)(Based on our standards forexercising voting rights)

Investment target
universe
Extracting high-rank brands based oninternal ranking considering ESG

Portfolio(Making adjustments to neutralize
the risk factors in industries, etc.)

Replacing brands and adjusting weights
based on internal ranking changes, etc.

28

Framework of ESG Integration
Positive screening (non-Japanese Equities)
 ESG fund construction method for non-JapaneseEquities

Composition of MSCI-ACWI(MSCI World Index)[Company Profile]• ESG vendor established in 2017 / Headquarters in Germany• Main customers are European, American, and Asian banks, andinsurance, pension fund, and ranking companies. Their scores
were utilized in custody operations in State Street Corporation and
JPMorgan Chase & Co., and in the S&P index.
[ESG scores]
Collecting the ESG-related data of more than 7000 globally-listedcompanies on a daily basis, and calculating ESG scores using AI

Screening using ESG scores of
the ESG vendor (Arabesque)
Investment target
universe

Portfolio

Optimizing so as to neutralize
various risk factors of countries,
currencies, and industries etc.

Confirming ESG score changes,
replacing brands, and adjusting weights

29

Negative Screening
Negative screeningThe fields below are subject to prohibition of investment and financing in terms of characteristics andsustainability of life insurance operations.
(The targets of negative screening are to be continuously considered for additions, based on domestic andforeign social situations, etc.)

 Target of negative screening
Fields subject to be screened

Targeted assets

Manufacturing cluster munitions

 Stock investments
 Project finance Bond investments
 Real estate Corporate financing
investments

Coal-fired power generation

 Project finance Process of negative screening
Investigating
candidates fornegativescreening

Determining fields
and companies
subject to negative
screening

Excludingfrom theinvestment
targets

Regularverificationof holdings30

Table of Contents
1. Message from the
President---2

6. Report of Actions for ESG
Investment


2. Our Role as
Responsible
Investor---3

3. Approach for
Responsible
Investment---4

4. Our Framework for
Responsible
Investment---55. Highlights

Looking back on past efforts andactions
2019 effort policies
ESG-themed investment results
Examples of efforts for ESG
integration

7. Report on Stewardship Activities






---8

---13

---32

Basic concepts and processes
Looking back on past efforts andactions
Example of engagements
2019 effort policies
Reference materials- Situations responding to
Stewardship Code- Standards for exercising voting rights- Results of exercising voting rights

31

Our Basic Policies for Stewardship Activities As the Stewardship Activities in the “Dai-ichi Life way” with “By your side, for life” raised as our group
mission, we are making efforts to support raising corporate values in the mid to long term, and deal withdifferent issues of various investee companies, by their growth stage.
 We are actively promoting the advancement of our efforts based on both the Stewardship Code and the
Corporate Governance Code, in order to provide our own added values as a listed institutional investor.

Raising corporate values
in the mid to and longterm

Growthstrategies
Governance

Financialstrategies

Mid to long term Stewardship Activities
in accordance with the growth stage of companies
Corporate
Governance
Code
Advancing the governance system

Stewardship
Code

Advancing Stewardship Activities

32

Our Framework of Stewardship Activities
 We are aiming to facilitate raising the corporate values of companies and improve our mid to long term
investment returns through our Stewardship Activities with the focus on engagements.

Reflecting on
internal ranking

Deciding on
investments
P. 27

Improving
investment returns

P. 27

Exercising voting rights
Closely examining the content
of agendas based on the detailsof the dialogues

Selecting an
engagement target
Selecting a target
based on the importanceand dialogue theme

Following up
the progress of issues
Managing the progress of issues
and providing information, etc.
to companies
P. 34

Raising
Corporate values

Conducting engagements
Exchanging opinions on matters
we regard as issues
with companies

Analyzing companies
Analyzing financial/nonfinancial information based on
disclosed information

33

How We Follow Engagements with Companies
 We are regularly following up on the progress of issues based on engagements, and supporting solving
issues of companies through providing related information.

4-step milestone management
1

Issue presentation: Presenting issues that we acknowledge to companies

2

Issue acknowledgement: Acknowledging issues we present as those to be
dealt with by companies

3

Efforts on dealing with issues: Companies starting to make efforts on issues

4Issue solution: Confirming that the issues are solved

Supporting
issue solving
through
information
provision

Examples of issues for each theme
Governance Independent outside
directors

Environmental /social issues
 Identifying ESG issues

Management
strategies

Financial strategies

 Formulating and disclosing
mid-term management plan Formulating and disclosing
shareholder return policies

 Formulating and disclosing KPI Formulating and disclosing thepolicies of utilizing treasury shares Board of directors

 Identifying and disclosing
materiality

 Cross-shareholdings Dealing with TCFD

 Reconstructing business Nomination/remuneration

 Diversity and human rights

 Improving business performance Improving the total return ratio Formulating and disclosing capital
policies
34

History of Our Stewardship Activities
 We have been continuously raising the level of the Stewardship Activities, focusing on engagements through increasing thenumber of engagement companies. This has been handled by strengthening organization and through diversifying themes,along with improving transparency by enhancing disclosure regarding the execution of voting rights.
 We have started full-scale engagements with the “environmental and social issues” as the main themes since 2018, basedon environmental changes surrounding companies.
FY2014Disclosing theresults of exercising
voting rights

Announcing SSC acceptanceEngagement
themes

FY2016FY2017FY201819 workers(6 workers)

Number of workers
dealing withengagements(Number ofdedicated persons)Engagementcompanies

FY2015

14 workers(0 workers)

17 workers(2 workers)

17 workers(3 workers)

110

233 companies

277 companies

companies

Newly establishing
Responsible
Investment Center

271 companies

20 workers(7 workers)

251 companies

Covering 90% of the market capitalization of the portfolio accumulated every 3 years
Cooperative engagements(Life Insurance
Association of Japan)

About 100 companies(Sending letters)
Environmental/social issues

Corporate Governance

About 110 companies(Sending letters /engaging in dialogues)

ESG
Full-scalelaunchManagement strategies
Financial strategies
Disclosing the spreadsheet (for each agenda item type) concerning the results of exercising voting rights
Disclosing the overviews of the standards for exercising voting rights
Improvingtransparency

Disclosing the details of the standards for exercising
voting rights

Disclosing the approvals and disapprovals for eachagenda item (for each quarter)35

2018 Stewardship Activities (Target period: July 2018 to June 2019) Based on the viewpoints of importance such as investing amounts and the ranking of shareholding
percentages, etc., we have selected 251 companies for engagement in 2018 in accordance with ESGs
(including regional development) and growth strategy themes.

 In commencing engagement in full-scale ESG dialogues, the ratio of dialogue regarding environmental
and social issues increased to nearly 40%.
Total brands held: About 2,300(Including general and special accounts)

Investing amounts /ranking of shareholding
percentages

NEW

ESG:
50 companies

Companies having issues related to ESGs
(including regional development)[Power, energy, general trading companies,
and local banks, etc.]

Growthstrategies:
40 companies

Companies in the growth stage(Supporting the growth of companies
through dialogue regarding growth strategies)<Annual changes by dialogue theme>
100%

37%
80%
60%

Main themes:
180 companies

Companies having issues related to the main 3 themes(governance, management and financial strategies)

40%
20%

Selecting 251
companies* Redundantselection included

Engaging in dialogues with 251 companies
Covering about 60% of themarket capitalizationof the portfolio

0%
2015

2016

2017

environmental and social issues
management strategies

2018

36
governancefinancial strategies

Our achievement of Engagements with Companies
 We made progress in the issues presented to the companies in FY2015 in the order of governance, management,
and financial strategies.
 70% of the governance-related issues were solved with the support of an external environment.
 We took more time to solve financial strategy related issues such as use of funds.

<Status of the issues presented for each fiscal year as of the end of June 2019>

GovernanceManagement strategies

100%

4

80%
60%

3
70%

100%

4 100%
3

80%

50%

60%

80%

Financial strategies

4
3

40%

60%

2

2

2

40%
20%

40%

40%

20%

20%

1
0%

1

0%
2015

2016

2017

2018

1

2015

2016

2017

2018

0%
2015

2016

1

Issue presentation: Presenting issues that we acknowledge to companies

2

Issue acknowledgement: Acknowledging issues we present as those to be dealt with by companies

3

Efforts on dealing with issues: Companies starting to make efforts on issues

4Issue solution: Confirming that the issues are solved

Progress of dialogues

Milestone management for dialogues

2017

2018

37

Table of Contents
1. Message from the
President---2

6. Report of Actions for ESG
Investment


2. Our Role as
Responsible
Investor---3

3. Approach for
Responsible
Investment---4

4. Our Framework for
Responsible
Investment---55. Highlights

Looking back on past efforts andactions
2019 effort policies
ESG-themed investment results
Examples of efforts for ESG
integration

7. Report on Stewardship Activities






---8

---13

---32

Basic concepts and processes
Looking back on past efforts andactions
Example of engagements
2019 effort policies
Reference materials- Situations responding to
Stewardship Code- Standards for exercising voting rights- Results of exercising voting rights

38

Case of Engagements (1)Issue

Over-holding cross-shareholdings
Reaction

Governance

Goal
Environment/
societyCompanyAConstruction

Management
strategies

Financialstrategies

Governance

Overview of dialogues

Number of dialogues: 2(2016/2018)
Sharing our acknowledgementthat the amount of crossshareholdings is excessive
compared to total assets, and at
the same time, exchanging
opinions on efforts to verify thenecessity of and reduceshareholdings.

Issue
Goal

CompanyB
Other
products

Environment/
society

Management
strategies

Financialstrategies

Reducing cross-shareholdings

In the 2019 corporate
governance report, we
described the concrete
verification method for thenecessity of possessing
cross-shareholdings, andour intention to proceed withmaking reductions step bystep.

Number of dialogues: 3(2016/2017/2018)
Confirming the necessity of the
takeover defense measures,sharing our policy that higher
capital efficiency should bedemanded when updating, andexchanging opinions on setting
the ROE target and its level, etc.

Response by thecompany2
Issue
acknowledgement

Exercising voting
rightsResponse by the company

Continuing takeover defense
measures / low-level capital efficiency
Setting a ROE target based on capital
cost

Overview of dialogues

Positive

1
Issue
presentation

Positive

1
Issue
presentation

4
Issue
solution

Policies for the future

We will regularly follow
up with the statusconcerning the
reduction of crossshareholdings, and willcontinuously engage
in dialogues with thecompany.

-

Reaction

3
Efforts on
dealing withissues2
Issue
acknowledgement

3
Efforts on
dealing withissues4
Issue
solution

Response by the company

Exercising voting
rights

Policies for the future

Decided to abolish thetakeover defense
measures in 2019.

Consequent to theabolishment of the
takeover defense
measures, theupdating issue was
not put on theagenda of thegeneral meeting of
the shareholders.

Continuously
engaging in dialogues
with the company on
disclosing measuresfor each segment in
the mid-term
management plan,and setting the ROE
target, etc.

39Case of Engagements (2)Issue
Governance

Goal

CompanyC

Environment/
societyTransportationequipment Management
strategies

Financialstrategies

Governance

Company
D
Transportationequipment

Management
strategies

Financialstrategies

Identifying and disclosing materiality /supporting TCFD

Overview of dialogues

Number of dialogues: 1 (2018)
Exchanging opinions on
identifying and disclosing
important environmental andsocial issues (materiality) for thecompany using the integrated
report, and on the response to
climate change including
supporting TCFD.

Issue
Goal

Environment/
societyEnhancing disclosure of ESG information /strengthening responses to climate change

Number of dialogues: 3(2015/2016/2018)
Exchanging opinions on theenhanced disclosure of businessstrategies including setting KPI
because no concrete KPI was
described, even though themedium-term management plan
was formulated and disclosed.

Positive

1
Issue
presentation

Exercising voting
rightsResponse by the company

The company issued theirintegrated report in 2018 forthe first time, and disclosed
their materiality including aparticular process.
The company announced
their support for TCFD in
2019.

Enhancing disclosure of businessstrategies
Setting/disclosing KPI in the mediumterm business plan

Overview of dialogues

Reaction-

Reaction

Positive

Response by the company

Progress was made for theenhanced disclosure ofmanagement strategies
including long-term policies
for group strategies anddisclosure of targets of sales
revenue and profits.

1
Issue
presentation

Exercising voting
rights-2
Issue
acknowledgement

3
Efforts on
dealing withissues4
Issue
solution

Policies for the future

We will continue toengage in dialogues
with the company on
the appropriateness ofthe disclosed
materiality and thestate of the businessstrategies based on
the materiality.

2
Issue
acknowledgement

3
Efforts on
dealing withissues4
Issue
solution

Policies for the future

The target regarding
capital efficiency has
not been disclosed.
We will continue toengage in dialogues
with the company on
the enhanced
disclosure of the
management target.

40

Case of Engagements (3)Issue
Governance

Goal
Environment/
societyCompanyE
Machines

Management
strategies

Financialstrategies

Governance

Environment/
societyCompanyF
Retailing
Management
strategies

Financialstrategies

Enhancing disclosure of shareholder
return policies
Setting/disclosing shareholder returntargetOverview of dialogues

Number of dialogues: 4(2015/2016/2017/2018)
Exchanging opinions on setting andclearly describing the appropriate
return target on materials to be
published, because the return
policies have only been explained
verbally, and it seemed that there
was some room for increasing thelevel.

Reaction

Positive

The company announced
the target payout ratio of
30% as the long-term policyof the company group.

Low-level shareholder return ratio

Goal

Setting and disclosing shareholder
return target / raising return level

Number of dialogues: 3(2015/2017/2018)
Sharing our acknowledgementswith the company that the payout
ratio is low compared to the levelof the owned capital, andexchanging opinions on setting
and disclosing the mid-to longterm shareholder return targets
and on raising the return level.

Negative

1
Issue
presentation

3
Efforts on
dealing withissues4
Issue
solution

Policies for the future

We will continue toengage in dialogues
with the company onother issue-related
themes, such as thestate of the businessstrategies.

-

Reaction

Overview of dialogues

2
Issue
acknowledgement

Exercising voting
rightsResponse by the company

Issue

1
Issue
presentation2
Issue
acknowledgement

3
Efforts on
dealing withissues4
Issue
solution

Response by the company

Exercising voting
rights

Policies for the future

The company did not raisethe dividend rate nor set thetarget for the level from theviewpoint focusing on theprovision of stable dividends.

Opposed to theagenda item for theappropriation of thesurplus (proposed by
the company) in theordinaryshareholders'meeting.

We will continue toengage in dialogues
with the company on
the same issue,
additionallyconsidering theutilization of thecooperative
engagements.
41

Participating in Collaborative EngagementsTo strengthen our own engagement activities and to enhance effects, we have participated in the cooperative
engagements being conducted by the Working Group for Stewardship Activities of the Life Insurance Associationof Japan, with the company taking the role of chairperson of the Working Group.
In FY2018, we have carried out engagements with the themes of "enhancing shareholder returns" (for 48
companies) and "enhancing the disclosure of ESG information" (for 64 companies)—for 107 companies intotal—based on the acknowledgement of issues shared by the participating companies. We have made certain
results.

Themes for dialogues

Results of dialogues<Reactions of companies we engaged in dialogues with>

Working Group for Stewardship Activities of
the Life Insurance Association of Japan(10 life insurance companies including our company)

Letter sent under joint signatures of
10 life insurance companies
Explaining the purpose through dialogues, etc.

Enhancing shareholder returns
Targetinga payout ratio of morethan 30%

Negative forraising thedividend level

Uncommitted

33%

33%

33%

Enhancing the disclosure of ESG information
Enhancing shareholder
returns

Enhancing the disclosureof ESG information

Consideringenhancements fordisclosure

48 listed companies

64 listed companies

47％

Negative forenhancing
disclosure

Uncommitted

6%

47%

Created based on the source "Initiatives by Life Insurers to Reinvigorate the Equity Market and Achieve a Sustainable Society throughAsset Management"

42

Table of Contents
1. Message from the
President---2

6. Report of Actions for ESG
Investment


2. Our Role as
Responsible
Investor---3

3. Approach for
Responsible
Investment---4

4. Our Framework for
Responsible
Investment---55. Highlights

Looking back on past efforts andactions
2019 effort policies
ESG-themed investment results
Examples of efforts for ESG
integration

7. Report on Stewardship Activities






---8

---13

---32

Basic concepts and processes
Looking back on past efforts andactions
Example of engagements
2019 effort policies
Reference materials- Situations responding to
Stewardship Code- Standards for exercising voting rights- Results of exercising voting rights

43

2019 Policies for Stewardship Activities(Target period: July 2019 to June 2020)Engagements
Strengthening the ability to respond to various issues of companies
through the expansion and deepening of our efforts
 Strengthening dialogues on climate change
Supporting corporate responses toclimate change through dialogues on
the state of disclosure, based on thesuggestions offered by TCFD andothers Starting full-scale bond engagements

Starting full-scale engagement activities
for domestic bond issuers, advancing
financial strategies of the issuers, andcontributing to revitalizing the bondmarket Enhancing disclosure of reasons for
decisions on exercising voting rights
Disclosing our company's policies
clearly regarding the execution of voting
rights through ingenuities, etc. for thedescription of reasons regarding
individual judgements, and further
facilitating constructive dialogues

 Participating in collaborative engagements
Showing influence beyond that of asingle company for solving issues
common to investor, and for developinga market environment throughparticipating in the domestic andoverseas collaborative engagements

ESG integration
Developing/systematizing evaluation standards
 Integrating ESG activities to evaluation
Systematizing evaluation standards
regarding corporate efforts for ESG, andincorporating them into corporation
evaluations to appropriately reflect themthrough investment decisions

44

2019 Focused Engagement Themes
Focused themes for engagements

1.

2.

Strengthning the governance system(Reference) Efforts for Dai-ichi Life HD

Advancing the governance based on the Corporate Governance
Code Continuously reviewing the governance system
based on the Corporate Governance Code as acompany listed on the stock exchange

Responding to climate change Supporting TCFD and joining in RE100

Developing and disclosing the governance system based on
the suggestions by TCFD
ESG

3.

Enhancing integrated disclosure
Disclosing integrated financial and non-financial information
through the integrated report, etc.

4.

Identifying and incorporating materiality into
management strategies
Identifying important issues (materiality) in the sustainability of abusiness model, and reflecting them into the management
strategies (risks and growth opportunities)

Management
strategies

5.

 Setting "contributions to theimprovement of QOL" as theimportant field of our value
creation

Strategical investment for sustainable growth
Strategical investment policies for growth(M&A, capital investment, R&D investment, human resources
investment, etc.)

Financialstrategies6.

 Creating the integrated report, and announcing
our company's value creation process

Mid- to long-term financial strategies
Appropriate balance between growth investment, shareholder returns,
and internal reserves

 Promoting efforts for InsTech
and overseas deployment oflife insurance business Setting the targets below as the financial
strategies[Capital efficiency] 8% or more of ROEV[Capital achievement rate] 170 - 200% of ESR[Shareholder return] 40% of total return ratio
45

2019 Targeted Companies for Engagements
 In FY2019, based on viewpoints of importance such as investing amounts and the ranking of shareholding
percentages, we select 250 companies, for which “climate change” may become an important management issue
for engagements.

Total brands held: About 1,900*(Including general and special accounts)

Investing amounts /ranking of shareholding
percentages

NEW
Climate change:
50 companies

Companies for which climate change may become
an important management issue

Growth strategies:
50 companies

Companies in the growth stage(Supporting the growth of companies through dialogues
regarding growth strategies)

Main themes:
180 companies

Selecting 250
companies:* Redundantselection included

Companies having issues related to main three themes(ESG, management, and financial strategies)

Covering about 60% of the market capitalizationof the portfolio* Changing the management method for passive products for special accounts
reduced the number of brands held comparing to that of the last fiscal year.

46

Table of Contents
1. Message from the
President---2

6. Report of Actions for ESG
Investment


2. Our Role as
Responsible
Investor---3

3. Approach for
Responsible
Investment---4

4. Our Framework for
Responsible
Investment---55. Highlights

Looking back on past efforts andactions
2019 effort policies
ESG-themed investment results
Examples of efforts for ESG
integration

7. Report on Stewardship Activities






---8

---13

---32

Basic concepts and processes
Looking back on past efforts andactions
Example of engagements
2019 effort policies
Reference materials- Situations responding to
Stewardship Code- Standards for exercising voting rights- Results of exercising voting rights

47

(Reference)

How We Respond to Japan Stewardship Code● Situation of efforts for each principle and self-evaluation
Principle

Situation of efforts

Self-evaluation

Principle 1
Formulating andannouncing policies



In April 2019, we revised and announced the "Policies for Stewardship Activities" asfollows.
 Based on the PRI assessment results and the British movement related to the
Stewardship Code, we clearly stated that the domestic bond invesees were
subject to the Stewardship Activities, in order to fulfill our responsibilities forthe stewardship on our own initiative.
 Since FY2018, we started engaging in full-scale dialogues for ESG as themain theme. We will continuously deal with ESG in the future. In addition,
climate change is an important theme yielding serious impacts on the
improvement of our future corporate value. Therefore, we clearly stated the"issues on the governance, environment, and society including climatechange" as the main dialogue themes.



We evaluate that we areappropriately dealing with thesepoints through revising andannouncing our policies based on
the domestic and overseas
movements.

Principle 2Managing conflicts ofinterest

For the purpose for strengthening the governance system related to the Stewardship
activities and other purposes, we established a Responsible Investment Committee
in April 2017. In April 2018, for the committee, we appointed three external
committee members (accounting for the majority in the committee) and two internal
committee members (one of the two is the executive officer of the ComplianceControl Department in charge of managing conflicts of interest).
The Responsible Investment Committee deliberates and decides on especially
important executions of voting rights for companies that have a large amount ofholdings, and other companies and agenda items, etc. with extremely high attention.
Simultaneously, we report all important executions of voting rights to the
Responsible Investment Committee.



We evaluate that we areappropriately exercising voting
rights through establishing andoperating, etc. the Responsible
Investment Committee.

We are quantitatively grasping the business results and financial status, etc.
Moreover, we are making efforts for collecting and analyzing non-financial
information including the governance, environmental and social issues to evaluate
the mid- to long-term profit growth of the companies.
We engaged in dialogues with companies having 90% or more market capitalizationof the domestic share portfolio as a three-year accumulation from FY2016 toFY2018.
As for 61% of the companies with which we engaged in dialogues in FY2018, thedialogues led to having interviews with the officers of those companies. We
presented and shared the issues we considered with the management of said
companies.
We have participated in the cooperative engagements being conducted by theWorking Group for Stewardship Activities of the Life Insurance Association of Japanas the company taking the role of the chairperson of the Working Group.

 We have been evaluating the profit
growth and utilizing the cooperative
engagements, etc. based oncollected and analyzed nonfinancial information. We consider
that future issues will be themore systematic incorporationof non-financial information andthe improvement of theeffectiveness of cooperative
engagements.

Principle 3
Precisely graspingcompanies

Principle 4
Dialogues withcompanies








48

(Reference)

How We Respond to Japan Stewardship CodePrinciple

Principle 5
Exercising voting rights

Situation of efforts

Principle 6
Regular reportingPrinciple 7
Acquiring competencySelf-evaluation

In FY2018, the Responsible Investment Center exercised all voting rights
for 1,907 companies listed on the domestic stock exchange.
We revised the standards for exercising voting rights and announced thedetails in April 2019 based on the deliberations in the Responsible
Investment Committee. Note that, as for the timing of adopting the revised
standards, we set a considered period where companies can appropriately
respond to the details of the revised standards, one by one.
We had disclosed the aggregated results of each agenda type in exercising
voting rights and the results of the approvals and disapprovals on the
results of each company and agenda item every quarter. For those startingfrom January 2019, we have started disclosing them including individual
reasons for opposing.

We evaluate that we haveappropriately exercised thevoting rights throughreviewing the standards forexercising voting rights andannouncing their results,
including disclosing reasons for
opposing.

The situation of efforts for all of the Stewardship activities is available foreach fiscal year as the "Stewardship Activities Report" ("Report of Actions
for Responsible Investment" since FY2018) on our website.
As for the execution of voting rights, the entire standards for exercising
voting rights, scheduled revision of the standards, and the results ofexercising voting rights every quarter are also available on our website.

We evaluate that we areappropriately making
announcements throughdisclosure on the website
related to responsible
investment including
Stewardship Activities.

We opened the Responsible Investment Center in April 2017 to gather
personnel and functions related to the Stewardship Activities. The Center ismaking advancements for efforts pertaining to the Stewardship Activities
and accumulating knowhow, and developing human resources.
Inviting external experts as lecturers, we have regularly held internal study
sessions for improving dialogue skills and obtaining knowledge related toenvironmental and social issues surrounding companies.
We shared the efforts of companies that participated in the Working Groupfor Stewardship Activities of the Life Insurance Association of Japan, andparticipated in an information exchange meeting, inviting external investors.

 We evaluate that we haveappropriately acquiredcompetency through efforts
such as gathering personnel
and functions by establishing
the Responsible Investment
Center, sharing examples ofindividual companies' efforts inthe Working Group of the Life
Insurance Association, andparticipating in the informationexchange meeting inviting
external investors.

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Our Voting Policy (main points)
 We have decided on the standards for exercising voting rights in terms of improving the corporate value of
our companies and facilitating their sustainable growth.
 We review the standards as needed based on the social and economic situations, etc. surrounding thecompanies.
Agenda item

Targets

Selecting directors/auditors
Representative director

Standard as of April 2019

Scheduled revision from April 2020

Deficit in three straight fiscal years, under 3% of ROE in fivestraight fiscal years (when being continuously present as therepresentative director during the applicable term)

All listedcompanies

No independent outside directors

One independent outside director

To be applied from
April 2021

Companies listed
on TSE First
Section-No independent outside directors

To be applied from
April 2021

Companies listed
other than TSEFirst Section- Relatives within the third degree- Originally from major shareholders with 15% or more holding ratio[Elements below added in the current standards]
Long appointment period (up to a total of 12 years) as outside
directors/auditors, etc. (including committee members for auditing, etc.)

Representative director

Independent outside
directors/auditors

Outside directors/auditors
Auditors/directors who arecommittee members forauditing, etc.

Targets

Companies listed
on TSE First
SectionCompanies listed
on TSE First
Section

Under 75% attendance rate for the board of directors and the board ofauditorsCompanies listed
on TSE First
SectionLong appointment period (12 years or more)

Granting stock-based compensation and stock options for auditors, etc.
(including committee members for auditing, etc.)

All listedcompanies

Granting stock-based compensation and stock options that may cause
over 10% dilution

All listedcompanies

Officer compensation, stock-based compensation
Issuing and granting stock options

Appropriation of the surplus (Representative director isreappointed as a director when there is no applicableagenda item.)

Under 15% of the total return ratio for three-fiscal year accumulationand the most recent fiscal year (Representative director is reappointed asa director when there is no applicable agenda item.)

Introducing and updating takeover defense measures(One applicable) Under 5% of ROE in three straight fiscal years; one
independent outside director; providing economic consideration

Providing retirement allowances

Providing retirement allowances for auditors, etc. (including
committee members for auditing, etc.)* See materials disclosed on our website for details of the standards for exercising voting rights.

Under 20% of the total return ratio for three-fiscal year accumulation andthe most recent fiscal year

All listedcompanies

All listedcompanies
Companies listed
on TSE First
Sectionhttp://www.dai-ichi-life.co.jp/dsr/investment/ssc2.html

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Results of Voting Records (July 2018-June 2019)


Focusing on mid- to long-term engagements with companies and making efforts to spread the policies for our
opposing standards, ratio of votes against for the agenda items proposed by companies is staying relatively inthe low levels.
As for the agenda items proposed by the shareholders, we voted in favor of two items that we determined tocontribute to improving corporate value.

Agenda items proposed by companies

Agenda items proposed by shareholders<Based on the numberof companies><Based on the numberof agenda items><Based on the numberof companies><Based on the numberof agenda items>

12.7% voted against

4.2% voted against

94.4% voted against

98.4%voted against

1,664 votes in favor
243 votes against

6,135 votes in favor
271 votes against

2 votes in favor
34 votes against

2 votes in favor
121 votes against* See materials disclosed on our website for results of the execution ofindividual voting rights.

https://www.dai-ichi-life.co.jp/english/dsr/investment/ssc2.html
51

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Results of Voting Records (July 2018-June 2019)- Agenda items related to corporate organizations(except those for Articles of Incorporation)[Selecting/dismissing directors]
3.0% voted against

1,757 votes in favor
54 votes against[Selecting/dismissing auditors]
8.6% voted against

1,553 votes in favor
147 votes against[Selecting/dismissing accounting auditors]
0.0% voted against

47 votes in favor- Agenda items related to officer compensation[Officer compensation]- Agenda items related to capital policies

3.7% voted against

709 votes in favor
27 votes against[Providing retirement allowances
for retired officers]
13.9% voted against
143 votes in favor
23 votes against[Appropriating surplus]

0.4% voted against

1,346 votes in favor
6 votes against[Related to organization restructuring]
0.0% voted against

47 votes in favor[Introducing, updating, and abolishingtakeover defense measures]
20.6% voted against

50 votes in favor
13 votes against[Agenda items related to other capital
2.2% voted against
policies]
44 votes in favor

1 votes against- Agenda items related to Articles ofIncorporation

0.0% voted against

439 votes in favor52