1

Table of Contents

7. ESG Investment Report

1. Message from the
President---2

2. Our Role as
Responsible
Investor---3

3. Basic Policy on ESG
Investment---4

4. Our Approach for
Responsible
Investment

---7




5. Our Framework for
Responsible
Investment

---8






6. Highlights

---11






Looking back on past efforts andactions
2020 effort policies
ESG-themed investment
Examples of efforts for ESG
integration

8. Report on Stewardship
Activities




---18

Basic approach and processes
Looking back on past efforts andactivities
Examples of engagements
Policies for FY2020
Voting Policy and Voting records
Self-evaluation and evaluation byothersMessage from the General
Manager of the Responsible
Investment Dept.
Reference (Glossary)

---39

2

Message from the President
We seek to realize a sustainable and resilient society through “Dai-ichi Life’s responsible
investment,” under our life insurance company’s mission to connect the present andfuture generations.
As a universal owner that manages assets of JPY 36 trillion sourced from insurance premiums of approximately 10 million customers throughout Japan, theDai-ichi Life promotes responsible investment that has ESG investment and stewardship activities at its core for improving investment return as well as
solving social issues. In April 2020, we formulated and disclosed the Dai-ichi Life Basic Policy on ESG Investment,* affirming our commitment to stepped-up
efforts for realizing a sustainable society.
Life insurance bridges present and future generations: Responsible investment for realizing a sustainable society
A life insurance company receives premiums from life insurance policyholders and transfers insurance claims to the policyholders’ children’s generation. I
therefore believe that the job of a life insurance business is to bridge and connect the present generation with the next generation. In other words, Dai-ichi
Life’s largest stakeholder is the next generation (our children’s generation), and we have a mission to protect this generation. Following this line of thought,
we provide life insurance products and services that offer peace of mind in the areas of inheritance, wealth succession, and protection and also economic
supports.

In recent years, however, the sustainability of society itself has been brought into question due to the increase in natural disasters caused by global
warming and the spread of COVID-19. We cannot leave behind a world of scorching heat and famine to future generations. We have an important task tobuild a society where people can live with peace of mind and in comfort. Against this backdrop, we seek to realize a sustainable and resilient society, notonly through the provision of insurance products but also through the investment under the same mission of connecting the present and future generations.
Dai-ichi Life’s responsible investment: Investing JPY 36 trillion of total assets in ESG and engagement for leaving no one behind
To this end, we are actively engaged in ESG investment. We have set a goal of incorporating ESG factor into the investment policies and processes of all of
our assets of JPY 36 trillion. Especially in the post-COVID-19 world, companies that are sincere and forward-thinking in building a sustainable society are
expected to drive the recovery and growth of the world economy and lead the “Build Back Better” initiative. By providing financing to such companies, we
aim to maximize both economic and social returns.
In pursuit of realizing a sustainable society, we place particular emphasis on engagements with mid- to long-term
viewpoints. As a universal owner investing in all business segments, we carry out stewardship activities to ensurethat companies face and work toward solving sustainability-related issues in a sincere manner. We do not abandon
companies for their failure to take action, as is the case with divestment. We aim to transition to a sustainable
society under the approach of leaving no one behind, including all companies and owners.
Together with our stakeholders
This “Responsible Investment Report” has been prepared and published since last year in order to inform all our
stakeholders, including policyholders, shareholders, clients, and local communities, about our commitment to
responsibly investment as well as our concrete efforts. To realize a sustainable society, we will continue to workwith our stakeholders to contribute to solving social issues through our ESG investment and stewardship activities.

* Dai-ichi Life Formulates Basic Policy on ESG Investment https://www.dai-ichi-life.co.jp/english/news_release/2020/pdf/index_006.pdf

Seiji Inagaki,
President and Representative Director

２. Our Role as Responsible Investor

3

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.
 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 the next
generation.
 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

Insurance
claims

Policyholders

Insurance
premiums

About 10
millionInsurance
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3. Basic Policy on ESG Investment

4

Dai-ichi Life’s Basic Policy on ESG Investment
 From a medium- to long-term standpoint as a "universal 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 and solve 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”① Incorporating ESG in Management Policies and Processes for All Assets(Target completion by fiscal year 2023)
Build an asset portfolio for both generating investment returns and solving social issues
 By incorporating ESG factors into the management policy of all assets, portfolio building process and internal investment rating, Daiichi Life strengthens medium- to long-term portfolio resilience, reduce ESG risk and generate investment return
 Investment to high-risk sectors from the standpoint of sustainability for society will be prohibited (specified arms manufacturers,
coal-fired power generators and coal miners)② Invest for Solutions to Social Issues that Dai-ichi Life Sets as Priorities(At least double the cumulative investment amount by fiscal year 2023)
Create a positive impact on society through investments
 Proactively invest in SDGs bonds, such as green bonds and social bonds, and SDGs projects that contribute to social infrastructuredevelopment in and outside Japan Expand investments in growth companies and venture companies to create progressive innovations (impact investments)
FocusedSocialIssues

QOL improvement

Promote solutions to pandemic, elimination of poverty and correction of inequality, individual asset formation,
extension of healthy lifespans, active roles for women, and innovation creation

Mitigate climatechangeSupport transition to a low-carbon society, and implementation of progressive environmental innovations

Regional development/
revitalization

Support growth of regional industries and creation of business, regional revitalization through collaboration
between businesses, public sector and academia (urban development) Strengthen disclosure by establishing methods to monitor social impact (CO2 emission volumes from the investment portfolio,
positive impact created through investment, etc.)③ Stewardship Activities for Promoting ESG Initiatives in investee companies
Support initiatives of investee companies to solve social issues
 Set ESG initiative as the main theme of engagement and provide information responding to ESG issues and propose solution
 Promote companies’ initiatives for mitigating climate change and advocate disclosure of information, including the financial impact of climatechange Collaborate with engagement groups within and outside of Japan and actively participate in ESG initiatives
 Execute appropriate voting rights taking into account dialogue with each investee company, which is considered the different issues at eachcompany

3. Basic Policy on ESG Investment

Incorporate ESG into Investment Policies/Processes for All Assets byend of FY2023
 Systematically incorporate ESG factors into the investment process to build a portfolio that both generates
investment returns and solves social issues
 Strengthen resilience of the portfolio in the mid- to long-term by reducing ESG risks and taking
opportunities

Current status
Incorporate
ESG inResearch

ESG factors have been considered in ourratings for equity and corporate bonds

2019: Reflect analysis of climate change impact)Positive
Screening

Analyze ESG initiatives at companies andreflect it in ratings for equity and bonds(FY
FY 2020: Appoint ESG analysts

Positive Screening has been incorporated
in domestic and foreign listed equity


Build a portfolio of companies with high ESG
assessments (Domestic equity: From 2010;
Foreign equity: From 2019)

Companies / Projects as below list havebeen excluded from investment targets
Negative
Screening Arms manufacturing companies (cluster
bombs, biological /chemical weapons, antipersonnel mines, etc.)
 Coal-fired power generation and coal mining
projects within and outside of Japan

Vision (by the end of FY2023)
Incorporate in research processes for all
assets Start sequentially to incorporate notjust for company assessments, butalso assets such as government bonds

Incorporate in policies and processes for
all assets
 Systematically consider ESG factors in asset
allocation and investment decisions
 Achieve zero carbon emissions ahead ofschedule in power consumption in real estate(latter half of 2020’s)

Continuously examine and implement
additional excluding cases frominvestment targets from the standpoint ofsustainability5

3. 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. ¥550 billion as of the end of FY2019
 We will at least double the investment amount by FY2023 for creating further positive impact on society
Unit: ¥ trillions

At least
double as ofthe end of
FY 2023

1.4

Cumulative investment amount
1.2

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

４. Our Approach for Responsible Investment

7

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. 12

From p. 34

From p. 39

From p. 57

５. 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 asset management department through activities including progress follow-ups andholding 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 from thisfiscal year 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

Asset management 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.

５. 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.

Ichiro Okamoto
Director, Managing Executive
Officer in charge of ComplianceControl Dept.

Partner / Auditor
Industrial Growth Platform,

Haruka Matsuyama
Attorney at Law and Partner
Hibiya Park Law Offices

Kikuo Kuroiwa
President
Kuroiwa Associates(As of September 2020)

Inc.

<July 2019 to June 2020>
PeriodMain deliberation agenda / reported matters

September
2019• Results of exercising voting rights for importantresolutions in FY2018*• Policies on Stewardship Activities in FY2019• Efforts for improvements in 2020 based on PRI
assessment results in 2019
• Joining of initiatives

March 2020

• Policies on ESG investment in FY2020• Revision of “standards for exercising voting
rights”• Responsible Investment Report 2019
• Results of engagement activities survey

April 2020
(Non-face-toface mtg.)• Exercise of voting rights on importantresolutions*

June 2020(Non-face-toface mtg.)• Revision of policies on stewardship activities• Formulation of Basic Policy on ESG Investment• Policies on Stewardship Activities in FY2020• Exercise of voting rights for companies that werecauses of scandal or important resolutions

4 times/
4 times

4 times/
4 times

4 times/
4 times

4 times/
4 times* Verified there were no problems with exercise of judgment at department
responsible for managing conflicts of interest

５. Our Framework for Responsible Investment

10

Our Recent Progress for Responsible Investment
 Dai-ichi Life has been developing a framework for promoting responsible investment since signing the PRI. Such efforts
have been recognized and resulted in receiving the Minister of the Environment Award at the Ordinary General Meeting of
the Principles for Financial Action for the 21st Century in March 2018.
 In February 2020, our pioneering efforts for ESG investment have been recognized and resulted in receiving the Gold Award(Minister of the Environment Award) in the investor category of the ESG Finance Awards Japan, which was set up by the
Ministry of the Environment to encourage widespread adoption and growth of ESG finance.
 We are proactively participating in international initiatives and are quickly incorporating global trends.
(List of initiatives on p. 15)

Ministry of the Environment’s ESG Finance Awards Japan,
Gold Award (Minister of the Environment Award) in the Investor Category (February 2020)
Reason for receiving the award•

Dai-ichi Life has embraced climate change as a crucial theme and has worked proactively on priorities
such as investments and financing for renewable energy projects and green bonds. Dai-ichi Life has
put in place a systematic integrated assessment method for climate-related information, through suchmeans as establishing credit rankings based on impact analyses of carbon tax and stranded assets.

•

In addition to the foregoing measures, the selection committee highly recognized Dai-ichi Life’s
activities that have contributed to the widespread adoption of ESG finance in the industry to date.
Source: Ministry of the Environment https://www.env.go.jp/press/files/jp/113491.pdf

President and Representative Minister of theEnvironment Koizumi
Director Inagaki

2015

2016

2017

Formulating our policies on ESG investment
Responsible Investment Center
SignedPRI

Responsible Investment Committee

Responsible Investment Meeting

2018
環境大臣賞

2019

2020
環境大臣賞

６. Highlights

11

Highlights - As a Responsible Institutional Investor Other

Balance of assets

Open foreign
bonds

Operating assets

5%

Shares, etc.

3%6%Cash and cash
equivalents, call,
etc.

4%

10%

About ¥

36 trillion

8%

Loan amount
Hedgedforeignbonds

ESG-themed investment

billion* As of
August 2020

SDGs bond, etc.

SDGs business

About ¥
billion

About ¥
billion230

Impact investment

About ¥

6.8 billion(16 cases)

16%

48%

Public &corporate bonds* End of FY2019

Engagements

660

Investment
About ¥
amountCompositionof assets

280

Regional development

140

About ¥
billionNumber of companies
engaged in dialogues

239

Rate of interviews with
officers

About

companies

58%* FY2019

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

About

89%

FY2018About

66%(based on gained market value)* FY2019

６. Highlights

Highlights- Responsible Investment Taking into Account the COVID-19 Pandemic -12

 We make ESG investments that support the COVID-19 response, including investing in bonds based on the growing
momentum of the issuance of social bonds (COVID-19 bonds) and supplying risk money through impact investments.
 We, as an institutional investor, actively express our opinions in joint statements regarding stewardship activities. We
also flexibly apply standards on exercising voting rights for investees that have faced sudden changes in their socialand economic environments, and support the efforts of investees through engagement activities.
 Funding for projects highly oriented toward the pandemic response

Funding for healthand medical projects•••

Health bonds (ADB)
Sustainable development bonds (IBRD)
Vaccine bonds (IFFIm)* More information on each investment on p. 25©ADB

 Support healthcare innovations and their implementation in society through impact
investment

Investment inhealthcare venturecompanies• Impact investment in Modulus Discovery, Inc.
Venture company engaged in small molecule drug development based on computational
chemistry. Applies computational chemistry to drug discovery, which leads to shortening
development timelines and significantly reducing development costs through fewer
experiments as well as enables development of breakthrough drugs

 Issued message with around 70 institutional investors worldwide to encourage actions
by pharmaceutical companies

Joint statementswith other investors•

 Issued opinion as an institutional investor through the Institutional Investors Collective
Engagement Forum••

Stewardship activities
based on social andeconomic environment

Ensure safety of employees of pharmaceutical companies, develop international cooperative
framework for tackling COVID-19

Requested corporate management to carry out governance with an eye on post-pandemic globalchangesExpressed opinion and measures of investors to place highest priority on safety of employees
engaged in operations related to financial results, audit, and general meetings of shareholders

 Suspend for the time being the application of performance standards forexercising voting rights• Voting right standards are not applied if conflict with performance standards newly arises owing
to COVID-19 (see p. 57)

 The COVID-19 response as a key theme of dialogue• Focused discussions on business model sustainability (see p. 54)

６. Highlights

13

Highlights - Climate Change Initiatives as an Asset Owner  We implement initiatives to increase resilience to climate risks, including incorporating climate risks,such as introduction of a carbon tax and stranded assets, into the evaluation criteria for our portfolio
companies.
 In addition, we engage with our portfolio companies to support their efforts to solve climate change
issues. We also actively pursue climate-related opportunities, such as expanding our investments andfinancing of renewable energy power generation projects and green bonds.

Create positive impact by investing and financing renewable energy
power generation
Ban investment and financing of coal-fired power generation andcoal mining operations (no exposure)
Measure portfolios’ carbon footprints to consider building portfoliosthat take account of climate change impacts
Engage with companies to encourage positive action on climatechangeIncrease
resilience toclimatechange risks
andopportunities(promote TCFD-based information disclosure and TCFD endorsement, actively participate incollaborative engagements such as Climate Action 100+)

Initiatives by institutional investors to engage in constructive
dialogue with companies that have high greenhouse gas
emissions, including discussing efforts to reduce emissions anddisclose its information.

Collaborative
engagement for
tackling global issues* Regarding Dai-ichi Life HD’s TCFD initiatives, see the Annual Report 2020. https://www.dai-ichi-life-hd.com/en/investor/library/annual_report/2020/pdf/index_001.pdf

６. Highlights

14

Highlights - 2019 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）

* 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

６. Highlights

15

Highlights - Participating in initiativesClimate change-related

Participating since 2011
Involved withestablishment

Participating since Nov. 2015

First by Japaneselife insurancecompany

Formulated in October 2011,
these action guidelines forfinancial institutions aredesigned to encourage
actions for creating asustainable society.

Participating since Sep. 2019

Participating since Sep. 2018

First by Japaneselife insurancecompany

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

Participating since Nov. 2019
Involved withestablishment

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

Participating since Sep. 2018

First by Japaneselife insurancecompany

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.

First by Japaneselife insurancecompany

Participating since Aug. 2019
First by Japaneselife insurancecompany

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.

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 such information.

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

Participating since Mar. 2020

Participating since May 2020

Participating since Jul. 2020

First by Japaneselife insurancecompany

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.

6. Highlights

16

Highlights: Awareness-raising Activities
 We contribute to the development of the ESG investment market, actively raising its awareness throughparticipation in meetings and other activities, with the aim of realizing a sustainable society andincreasing the profitability of ESG investments.
 Participation in government
councils and study groups
Hosted by the Ministry of the Environment
Positive Impact Finance Task Force(April 2020 to present)
Hosted by the Ministry of Economy, Trade andIndustry
Study Group on Environmental Innovation Finance(February 2020 to present)
Co-hosted by the Financial Services Agency and
GSG-NAB Japan
Impact Investing Roundtable(June 2020 to present) Talks at seminars and holding of roundtables
Japan Climate Action Summit 2019 (JCI)(Held October 31, 2019)
Roundtable on Advancing International Collaboration on
Responsible Business Conduct for Sustainable Supply Chains in
Asia (OECD/ILO)(Held November 19, 2019)
COVID-19 and ESG Investment: How Will ESG Investment
Change? How Can ESG Investment Contribute to the PostCOVID-19 World? (PRI Japan)(Held August 4, 2020)2021 Access to Medicine Methodology Training(Held February 6, 2020)

Dai-ichi Life hosted training for Japanesepharmaceutical companies conducted by theAccess to Medicine Foundation of which we
became a signatory investor in 2018.

I have had the privilege of speaking at more seminars and other engagements, thanks
to the many people involved in ESG investments who have praised Dai-ichi Life’s ESG
investments and stewardship activities. As a life insurance company serving Japanesecustomers, we have a responsibility to continue living up to the trust backed by ourlong history.
We will not restrict our initiatives to our company, but share them with the entire
Japanese society and move forward together. As an institutional investor, we intend tofulfill our role of building a future society where the next generation can live withpeace of mind.
With COVID-19, perhaps more people have a renewed interest in sustainability. We
will work to further strengthen the resilience attained by the Japanese society living
alongside nature, and translate these efforts into building a world-renownedsustainable society.

Miyuki Zeniya
Executive Sustainable Finance Specialist

17

Table of Contents

7. ESG Investment Report

1. Message from the
President---2

2. Our Role as
Responsible
Investor---3

3. Basic Policy on ESG
Investment---4

4. Our Approach for
Responsible
Investment

---7




5. Our Framework for
Responsible
Investment

---8






6. Highlights

---11






Looking back on past efforts andactions
2020 effort policies
ESG-themed investment
Examples of efforts for ESG
integration

8. Report on Stewardship
Activities




---18

Basic approach and processes
Looking back on past efforts andactivities
Examples of engagements
Policies for FY2020
Voting Policy and Voting records
Self-evaluation and evaluation byothersMessage from the General
Manager of the Responsible
Investment Dept.
Reference (Glossary)---397. ESG Investment Report18

Our History for ESG Investment and 2019 Review
 Since 2015 when we signed PRI, we have been making extended efforts to continuously improve ESG
investments
 In FY2019, we proactively made ESG-themed investments and financing, adding “climate change” as our
focal issue. We also enhanced the sophistication of ESG integration, including incorporating climatechange factors into our research process.
FY

FY2010FY2013

FY2014FY2015FY2016FY2017FY2018FY2019Investments and financing for SDGs businesses related to renewable energy power plants, etc.

ESGthemed
investment

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

Promote investments
and financing for
tackling climate change

Impact investment
Investments and financing contributing to regional
development and revitalization

Incorporate climatechange elements

Japanese equities ESG managed in-house

Foreign equities ESG managed in-house

ESG
integrat
ion

Incorporate ESG factors
into research process

Incorporate climatechange elements

ESG engagement

Establish focal themes
for climate change
engagement

Negative screening

Expand target weapons

Promote ESG
investment

Publish Responsible
Investment Report7. ESG Investment Report

19

FY2020 Policy on ESG Investment
ESG-themed investment

ESG integration

Create positive impact on society
through investments and financingthat contribute to solving social issues

Swiftly develop readiness to
respond to market changes

 Actively promote investments that
contribute to solving social issues
Promote active investments in COVID-19 and otherpandemic responses as well as recent social issues,
including plastic waste, while maintaining Dai-ichi
Life’s ESG investment focal themes of quality of life
(QOL) improvement, mitigation of climate change,
and regional development and revitalization

QOL
improvement

Mitigation ofclimatechange Strengthen ESG analyses by appointing ESG
analysts

Carry out cross-asset ESG analyses
by newly appointing ESG analysts

Increase the sophistication of ESG
analyses, including deepening
climate change analyses

Regional
development/
revitalization



Actively adopt new investment products andmethods in addition to investing in impact
investments, SDGs bonds, and SDGs businessesIn particular, proactively promote transition financethat supports decarbonization efforts

 Expand assets covered by ESG integration


Introduce ESG index into benchmarks for foreign
equity investments and implement ESG integration for
all foreign equities

For bonds, consider employing positive screening
investment methods used for equity investments



Begin measuring CO2 emissions for Dai-ichi Life’s
entire investment portfolio

7. 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

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

21

Table of Contents

7. ESG Investment Report

1. Message from the
President---2

2. Our Role as
Responsible
Investor---3

3. Basic Policy on ESG
Investment---4

4. Our Approach for
Responsible
Investment

---7




5. Our Framework for
Responsible
Investment

---8






6. Highlights

---11






Looking back on past efforts andactions
2020 effort policies
ESG-themed investment
Examples of efforts for ESG
integration

8. Report on Stewardship
Activities




---18

Basic approach and processes
Looking back on past efforts andactivities
Examples of engagements
Policies for FY2020
Voting Policy and Voting records
Self-evaluation and evaluation byothersMessage from the General
Manager of the Responsible
Investment Dept.
Reference (Glossary)---397. ESG Investment Report (ESG-themed investment)

22

ESG-themed investment* As of the end of August 2020

 ESG-themed investment has accumulated the assets and reached to ca. ¥660 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¥660 billion

 Breakdown
2,500
2,000
1,500

＜Investment and Financing
for SDGs Bonds, etc.＞

About¥230 billion

Funding for international institutions andcompanies that promote business
contributing to achieving SDGs

1,000
500
0

2015
3,000
2,500
2,000
1,500

2016

2017

2018

2019

2020

About
¥280 billion＜Investment and Financing
for SDGs Businesses＞
Funding for business (social
infrastructure development, environment
preservation, etc.) contributing toachieving SDGs

Renewableenergybusiness:
About ¥170
billion

1,000

2015

Signed
PRI

2016

2017

2018

2019

2020

500
0
2015

2016

2017

2018

2019

2020

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

7. ESG Investment Report

23

Investments and Financing for SDGs Bonds, etc.
Cumulative investment amount:
About ¥230 billion* As of the end of August 2020

Funding for international organizations and companies promoting
businesses that contribute to achieving SDGs
(Green, social, sustainability bonds, etc.)
World Bank Group
Inclusive Business Bond (IFC)• Support for companies that actively integrate low income
communities into their value chain

EuropeMicrofinance Bond (EBRD)• Financial support to SMEs and microenterprises in developing countries
Health Bond (EBRD)• Support for improving medical services in
East/Central European countries

Green Bond (IBRD)• Support for businesses for climate change mitigation andadaptation activities
Vaccine Bond (IFFIm)• Support for development of new vaccines

Environmental Sustainability Bond (EBRD)• Support for renewable energy projects inEast/Central European countries

Sustainable Development Bond (IBRD)• Support for addressing food loss and waste issues
Sustainable Development Bond (IBRD)• Support for addressing marine pollution caused by plastic
waste

Asia-Pacific
Health Bond (ADB)• Support for health projects in the AsiaPacific
Gender Bond (ADB)• Promote women’s empowerment in the
Asia-PacificSustainable Development Bond (IBRD)• Support for tackling COVID-19
Vaccine Bond (IFFIm)• Support for development of COVID-19 vaccines

Health Bond (ADB)• Support the COVID-19 response

Japan
Tokyo Green Bond (Tokyo Metropolitan

AfricaGovernment)• Support for Tokyo to become a smart city
Feed Africa Bond (AfDB)• Support for agriculture and agricultural businesses in Africa
Light Up and Power Africa Bond (AfDB)• Support for electricity and energy infrastructure developmentin Africa

Latin America/Caribbean
EYE Bond (IDB)• EYE (Education, Youth,
Employment) supports* Listed are bonds issued by multilateral development banks, the government, etc.

7. ESG Investment Report (ESG-themed investment)

Investments and Financing for SDGs Bonds, etc.
Project summary

Plastic waste reduction bond
(Henkel)• World’s first corporate bond that limits allocation to
reducing plastic waste• Support plastic waste reduction efforts through joint
investment with Dai-ichi Frontier Life

Investment
amountInvestment
period¥5.3
billion

7/2020Invested a total of ¥7.4 billion
with Dai-ichi Frontier Life

Sustainability-linked loan
(Indorama)• Dai-ichi Life became first Japanese life insurer toextend loan to a sustainability-linked loan
• Support a company’s efforts for reducing plastic waste¥1.1
billion3/2020¥5.4
billion

10/2019¥2.0
billion5/2020* Sustainability-linked loans have interest rates that change
based on the achievement of sustainability performance targets
which are set in advance.

Socially Responsible Mekong Region
Development Bond
(Export-Import Bank of India)••

First social bond issued by the Export-Import Bankof India
Support infrastructure development projects in Asian
countries in the Mekong region

Microfinance and Gender Loan
(Crédit Agricole CIB, Tokyo Branch)•

Support provision of financial services to women andlow-income groups in rural areas of developing
countries* Major projects
since October 201924

7. ESG Investment Report (ESG-themed investment)

25

ESG Investment to Support the COVID-19 Response Invested in health bonds issued by the Asian Development Bank (ADB):
Support ADB’s health and medical projects in response to COVID-19••

Investme
nt period:
4/2020Investment amount: CA$130 million (approx. ¥10 billion)
Support ADB’s efforts in the health and medical sectors, including
responding to COVID-19 through financing ADB’s health and medical
projects©ADB

 Invested in sustainable development bonds issued by theInternational Bank for Reconstruction and Development (IBRD)
Support IBRD’s health and medical projects in response to COVID-19••

Investme
nt period:
4/2020Investment amount: AU$150 million (approx. ¥10.4 billion)
Support IBRD’s health and medical projects, including responding to
the COVID-19 pandemic through provision of funds to IBRD

©World Bank

 Invested in vaccine bonds issued by the International Finance Facility
for Immunisation (IFFIm)Support development of COVID-19 vaccines••

Investme
nt period:
6/2020Investment amount: NOK1.5 billion (approx. ¥15.8 billion)
Support the COVID-19 vaccine development project implemented by
the Coalition for Epidemic Preparedness Innovations (CEPI)©IFFIm

7. ESG Investment Report (ESG-themed investment)

26

Investments in SDGs businesses
Cumulative investment amount:
About ¥280 billion* As of the end of August 2020

Funding for businesses contributing to achievement of SDGs
(social infrastructure development, environment preservation, etc.)

Japan

EuropeNorth America

Germany: Offshore wind
power generation(December 2016)

Renewable
Energy¥29.2
billion

Other
¥11.6
billionUnited Kingdom: Highspeed railway(December 2017)

Renewable
Energy¥107.6billion

Other
¥39.8
billion
Asia-Pacific

AfricaOther¥15.7
billionCôte d’Ivoire: Infrastructure
financing for government(June 2019)
Togo: Infrastructure financing
for government(December 2019)

Akita: Offshore wind
(February 2020)

Renewable
Energy¥7 billion

Renewable
Energy¥14.4 billion

South America

Hokkaido: Seven airport
concession (February 2020)

Other
¥38.7
billionTurkey: Hospitaldevelopment/operation(July 2017)

Renewable
Energy¥12.6
billionOther¥4.5
billion

Peru: Railway development(March 2019)7. ESG Investment Report (ESG-themed investment)

Investments and Financing for Renewable Energy* As of the end of August 2020
Power Generation Businesses
Cumulative investment amount:
About ¥170 billion
Renewable energy division

Project finance forsolar power generation
business

Project finance forwind power generation
business

Project finance forbiomass power
generation
business

Investment
amount

Focal
theme

About ¥89 billion

ClimatechangeDomestic:
About¥72 billion

Overseas:
About¥17 billion

About ¥54 billion
Domestic:
About¥14 billion

Overseas:
About¥40 billion

About ¥27 billion
Domestic:
About¥21 billion

Overseas:About¥6 billion

ClimatechangeClimatechange27

7. ESG Investment Report (ESG-themed investment)

28

Impact Investment* As of the end of August 2020

Cumulative investment amount:
About ¥6.8 billion (16 cases)
Company

Improving
Qualityof LifeClimatechangeOther

Business summary

Investments intended to both generate investment returnand create social impacts (structural change of society, etc.)
Investment
amountCompany

Business summary

Investment
amountResearch on digital therapeutics for
nicotine addiction, etc.

¥1,000
millionDevelopment of eyewear forpatients with low vision, etc.

¥300
millionResearch and development ofdigital therapeutics for insomnia¥100
millionDevelopment of cognitive testingthat measures cognitive functions
by eye tracking, etc.

¥800
millionDevelopment of avatar robot that is
expected to be able to substitutehuman labor in dangerous
environments¥300
millionDevelopment of diagnostic systems
for early detection of breast cancer¥200
millionDevelopment of a drug
development platform that uses AI¥100
million

Provision of ICT solutions towardrealizing smart nursery schools¥300
millionDevelopment of new drugs using
advanced computational technology¥200
millionDevelopment and provision of IT
and programming education
services for junior high and highschool students¥200
millionWorld’s first anti-smoking social
impact bond for Toyonaka City’s
anti-smoking project for which
CureApp is the implementer¥12
millionDevelopment of new-generation
biomaterials that replace materials
made from fossil fuels¥1,000
million

Venture fund specializing in theenvironment and energy sectors¥1,000
millionDevelopment of wind power
generator capable of generating
electricity even in typhoons¥200
millionMicrofinance business in developing
countries¥1,000
million

Provision of financing-type crowd
funding service¥100
million* The list above does not include impact investments by listed stocks.

7. ESG Investment Report (ESG-themed investment)

Impact Investment
Project summary

UniFa Co., Ltd.
• Venture company that offers solutions
utilizing ICT, etc. for realizing smart
nursery schools which are friendly tonursery school workers

Life is Tech, Inc.
• Venture company that develops and offers
IT and programming education services forjunior high and high school students

Social impact bond
• World’s first anti-smoking social impact
bond for the Toyonaka Sotsuen Project, ananti-smoking project of the Toyonaka City,
Osaka Prefecture

Modulus Discovery, Inc.
• Venture company engaged in small molecule
drug development based on computational
chemistry• Applies computational chemistry to drug
discovery, which leads to shortening
development timelines and reducing
development costs through fewer
experiments

29* Major projects since September 2019Social impacts

Investme
nt amount

Investme
nt period

Help resolve theproblem of longnursery school
waiting lists
by improving theworking environmentof nursery schools¥300
million09/2019

Help eliminate IT
talent shortage
through providing
programming
education¥200
million

11/2019

Extend healthy
lifespansthrough supports toquit smoking¥12
million

11/2019

Help realize
accessible
healthcare for all
through shortening
drug development
timelines and cost
reductions¥200
million5/20207. ESG Investment Report (ESG-themed investment)

30（Reference）Aim of impact investment

Establishing innovation

Impactinvestment

Obtaining
investment
incomeFinTechEnvironment /renewable energy
Health care
Medical services /biotechnology

InsTechNew insurance
products/servic
esCreatingsocialimpacts

Raising
corporate
values(Viewpoints for project selection)(1) Management has a clear vision for solving social issues.

(2) Feasibility of social impact

Businessinnovativeness×

Market share(Impact assessment methodology)
Agree on setting “impact assessment KPIs” with management
before investment, and conduct regular monitoring* Regularly monitored

Investment
destinationcompanies

7. ESG Investment Report (ESG-themed investment)

31

Investment for Regional Development and Revitalization
 Concession Project for Seven Hokkaido
Airports••

Japan’s largest airport concession project for integrating
the operation of seven airports in Hokkaido which had
been run by separate entities.
The concession will realize efficient management of
airports to contribute to fulfilling their maximum role asbasic transportation infrastructure in Hokkaido and torevitalizing local economies.
Wakkanai
AirportAsahikawa
Airport Community development utilizing Dai-ichi Life
Grounds (facility for employees)••

Community development utilizing Dai-ichi Life Grounds in
Setagaya City, a welfare property for employees owned by thecompany since 1954.
Based on the concept of improving the quality of life (QOL) of
local residents, we plan to build various facilities on thepremises, such as housing that provides services for seniors,
student housing, and clinics. We will work with diverse
partners to contribute to revitalizing the community.
Community development for increasing
the QOL of local residents

Memanbetsu
AirportNew Chitose
AirportKushiro Airport
ObihiroAirportHakodate
AirportConcession refers to a facility to which a private entity has the operating rights
while public entities retain ownership of fee-collecting public facilities, including
highways, airports, and water and sewage services.

7. ESG Investment Report (ESG-themed investment)

32

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 forAdvanced Biosciences(IAB), Keio University

Examples of investments in university-launched venture companies
and university venture capital

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

Tokyo University of
Science* Venture company launchedby Kobe University
Investment: September 2019

* Venture company launchedby Nagoya University
Investment: July 2020

Concluded
March 2019
* VC launched by Kyoto University
Investment: November 2017

Tohoku University

Concluded
August 2019

* VC launched by Tokyo University
Investment: March 2018
* VC launched by Keio University
Investment: June 2016
* VC launched by Tokyo University of Science
Investment: September 2019

33

Table of Contents

7. ESG Investment Report

1. Message from the
President---2

2. Our Role as
Responsible
Investor---3

3. Basic Policy on ESG
Investment---4

4. Our Approach for
Responsible
Investment

---7




5. Our Framework for
Responsible
Investment

---8






6. Highlights

---11






Looking back on past efforts andactions
2020 effort policies
ESG-themed investment
Examples of efforts for ESG
integration

8. Report on Stewardship
Activities




---18

Basic approach and processes
Looking back on past efforts andactivities
Examples of engagements
Policies for FY2020
Voting Policy and Voting records
Self-evaluation and evaluation byothersMessage from the General
Manager of the Responsible
Investment Dept.
Reference (Glossary)---397. ESG Investment Report (examples of efforts for ESG integration)

34

Strengthening of ESG Research Functions
Incorporate ESG research and engagement results in investment decisions(1) Cross-asset research by (2) Engagement results
ESG analyst
shared by Responsible
Investment Dept.
Cross-asset study andanalysis related to
ESG issues
Environment

2020–
Present

ESG
analystSociety

Governance

EquityanalystInformation
sharing

Results ofengagement withinvestee
Information
sharing

In FY2020, focused analyses werecarried out on climate change aswell as plastic waste•(3) Reflected ininternal ranking by
equity/credit
analysts(4) Used bydepartments
handling
investments tomake investment
decision

Establish internalranking
considering ESG
analysts’ ESG
analysis results
and engagement
results

Decide tosell/purchas
e based oninternal
ranking

CreditanalystAnalysis by ESG analyst (scoring)
Extract sectors and companies with high relevance to focal themes
Carry out quantitative and qualitative evaluations and assign a score
to each company<Scoring>

Quantitative evaluation

Qualitative evaluation

Evaluation based on
quantitative indicators, incl.
preliminary calculation offinancial impacts

Governance and strategy evaluation
Evaluation of future revenue
opportunities

7. ESG Investment Report (examples of efforts for ESG integration)

35

Positive Screening (Japanese Equities)
 In addition to the usual screening of Japanese equity ESG funds from a governance perspective,
we have sought to further increase the sophistication of ESG integration by incorporating climatechange factors into the fund construction method, including conducting climate change screenings
since January 2020.
[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
Added climate
Management brandchange factors(6) S&P Carbon Efficient Index

Screening in terms of G (governance)and climate change (E)Investment
target universe

Extract high rank brands basedon internal ranking considering
ESG(Make adjustments to neutralize the risk factors
in industries, etc.)

Portfolio

Replace brands and adjust weights
based on internal ranking changes, etc.

7. ESG Investment Report (examples of efforts for ESG integration)

36

Positive Screening (Foreign Equities)
 Since 2019, Dai-ichi Life has introduced investment methods to reflect ESG scores to a part of theforeign equity portfolio managed in-house.
 Since September 2020, the company has introduced an ESG index as a benchmark for foreign
equity investments, and began reflecting ESG factors in all of its foreign equity investments
managed in-house.

Constituents of MSCI-ACWI(MSCI All Country World
Index)ESG index

Exclude companies such as those with arecord of serious misconduct or involved in
the manufacture of controversial weapons

universe
Determineweighting

MSCI ACWIESG Universal
Index

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

37

Negative Screening
 More weapons have been included in the company’s negative screen list since FY2019 (related to the
manufacturing of specific arms, including biological weapons, chemical weapons, and anti-personnel
mines), taking into account the characteristics of the life insurance business and the sustainability ofsociety.
 Our negative screen list will continuously be reviewed based on domestic and global social situations,among other factors.

Target of negative screening
Fields to be screened

Targeted assets

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

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

 Coal-fired power generation and coal mining
operations in and outside Japan

 Project finance

Process of negative screening
Investigating
candidates fornegative screening

Determining fields
and companies
subject to negative
screening

Excluding fromthe investment
targets

Regularverification ofholdings

38

Table of Contents

7. ESG Investment Report

1. Message from the
President---2

2. Our Role as
Responsible
Investor---3

3. Basic Policy on ESG
Investment---4

4. Our Approach for
Responsible
Investment

---7




5. Our Framework for
Responsible
Investment

---8






6. Highlights

---11






Looking back on past efforts andactions
2020 effort policies
ESG-themed investment
Examples of efforts for ESG
integration

8. Report on Stewardship
Activities




---18

Basic approach and processes
Looking back on past efforts andactivities
Examples of engagements
Policies for FY2020
Voting Policy and Voting records
Self-evaluation and evaluation byothersMessage from the General
Manager of the Responsible
Investment Dept.
Reference (Glossary)---398. Report on Stewardship Activities (basic approach and processes)

39

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, andhelp increase corporate value in the mid- to long-term.
 We are actively pursuing more sophisticated efforts, based on both Japan’s Stewardship Code and Corporate Governance
Code, in order to provide our own unique added values as a listed institutional investor.

Increase corporate
value in the mid- tolong-term

Growthstrategies
Governance

Financialstrategies

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

Corporate
Governance
Code
More sophisticatedgovernance system

Stewardship
CodeMore sophisticatedstewardship activities

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

40

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

Reflect oninternal ranking

Improveinvestment
returns

Decide oninvestment
P.34

P.34

Vote
*Deliberations by the Responsible
Investment Committee(non-face-to-face meeting)Carefully review theagenda items basedon the engagements

Follow up on
progress of issues
Monitor progress of issues
and provide information tocompanies

Selectengagement
partner
Select partner based on
importance andengagement theme

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

Analyze
companies
Analyze financial/nonfinancial information
based on disclosed
information

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

41

Following Up Progress of Engagement Issues
 We regularly follow up on the progress of the issues based on engagements, and help solve the issues of investee
companies by providing relevant information, etc.

Tracking 4-step milestones
1

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

2

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

3

Address issue: The company begins addressing the issue

4

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

Help solve
issuesthrough
information
provision, etc.

Examples of issues of each theme
Environmental/social issues

Management
strategies

 Independent outside
directors

 Identifying and disclosing
ESG issues

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

 Board of directors

 Climate change Formulating and disclosing KPI

 Cross shareholdings

 COVID-19

 Reconstructing business Formulating and disclosing policies
on utilizing treasury shares

Governance Nomination/remuneration  Plastic waste Diversity and human rights

 Improving businessperformance

Financialstrategies

 Improving total return ratio Formulating and disclosing capital
policies

8. Report on Stewardship Activities (looking back on past efforts and activities)

42

Past Stewardship Activities
 We continuously raised the level of our stewardship activities focusing on engagements, strengthening our mechanisms todiversify engagement methods and themes, along with enhancing information disclosures on voting activity to improvetransparency.
 We focus on engagements themed on management/financial strategies as well as ESG. In FY2019, we selected climatechange as a focal theme and promoted companies’ responses to climate change.
FY2014Engagementcompanies

Engagement
themesDisclosure of
voting records

Announced commitment to Stewardship Code

Number of persons
conducting
engagement(Number ofdedicated persons)

FY2015FY201614 people(0 person)

17 people(2 people)

17 people(3 people)

110
companies

233
companies

277
companies

FY2017FY2018FY201920 people(7 people)

20 people(7 people)

251 companies

239 companies

19 people(6 people)
Established Responsible
Investment Center

271 companies

Commence bonds
engagements

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

About 100
companies(Send letters)

Collaborative
engagements(LIAJ)

Environmental/social issues

About 110 companies(Send letters /engagements)
Full-scalelaunchESG

Corporate governance

About 140 companies(Send letters /engagements)

Strengthen
climate change
engagements

Management strategies
Financial strategies
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

8. Report on Stewardship Activities (looking back on past efforts and activities)

43

Review of Stewardship Activities in (Period:
FY2019July 2019–June 2020)
 In FY2019, we selected companies for which our focal engagement theme of climate change may become an
important management issue, taking into account the importance of their holding amounts, their top shareholders,among other factors, and conducted engagements with a total of 239 companies. However, the number ofengagement partners was around 10 less than the initial plan due to the impact of the COVID-19 pandemic.
 As a result of fully commencing ESG engagements in FY2018, the ratio of new issues set related to environmental
and social issues increased to 40% of the total.

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

Holding amounts /top shareholders

ＮＥＷ

Climatechange:41 companies

Companies for which climate change may become an
important management issue<Annual changes by new issue theme>
100%

43%
Growthstrategies:
37 companies

Companies in the growth stage(Support the growth of companies through engagements
regarding growth strategies)

Main themes:
161
companies

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

80%

60%

40%

20%

0%

239 companies

Engagements with 239 companies
Covered over 60% of the market capitalization of the portfolio

2015

2016

Financial strategies
Management strategies

2017

2018

2019

Governance
Environmental/social issues

8. Report on Stewardship Activities (looking back on past efforts and activities)

44

Medium-term Engagement Outcomes We are making progress on solving the issues we raised with companies in the order of governance, financial strategies, andmanagement strategies.
 About 90% of the governance issues identified in FY2015 have been solved with the support of the external environment.
 Since FY2018, we have also been fully engaged in dialogues on environmental and social issues. Some progress has been
observed, mainly in climate change measures. We will continue to follow up the status as needed.

<Status of the issues raised in each fiscal year as of the end of June 2020>

100%

Environment/social issues

100%

100%

100%

80%

80%

80%

④

80%

Management
strategies

Financialstrategies

Governance

③

60%
70%

60%

60%

40%

40%

40%

20%

20%

20%

20%

0%

0%

0%

0%

60%

90%

②

40%

30%

60%

①

2015 2016 2017 2018 20192015 2016 2017 2018 20192015 2016 2017 2018 2019

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

45

Table of Contents

7. ESG Investment Report

1. Message from the
President---2

2. Our Role as
Responsible
Investor---3

3. Basic Policy on ESG
Investment---4

4. Our Approach for
Responsible
Investment

---7




5. Our Framework for
Responsible
Investment

---8






6. Highlights

---11






Looking back on past efforts andactions
2020 effort policies
ESG-themed investment
Examples of efforts for ESG
integration

8. Report on Stewardship
Activities




---18

Basic approach and processes
Looking back on past efforts andactivities
Examples of engagements
Policies for FY2020
Voting Policy and voting records
Self-evaluation and evaluation byothersMessage from the General
Manager of the Responsible
Investment Dept.
Reference (Glossary)---398. Report on Stewardship Activities (examples of engagements)

46

Leading Examples of Engagements
Governance

Environment/
societyCompany A
Land
transport

Management
strategies

Financialstrategies

Governance

Environment/
societyCompany B
Electricalequipment

Management
strategies

Financialstrategies

Issue

Independence of outside directors

Goal

Ensure independence of outside
directors

Overview of engagement

Number of engagements: 3(2015/2018/2019)
Expressed concerns over the
independence of an outside
director whose tenure is very
long, and exchanged opinions
about the type of independence
necessary of outside directors

In 2020, the company
decided on theretirement of theoutside director andappointed a new outside
director who has
independenceIssue of parent-subsidiary listings

Goal

Ensure governance transparencyof listed subsidiaries

Number of engagements: 2(2018/2019)
Shared the need to ensure thegovernance transparency oflisted subsidiaries andstrengthen their businesses,
and exchanged opinions about
where the listed subsidiaries fit
in the business strategy

Positive

Company’s response

Issue

Overview of engagement

Reaction

Reaction

Positive

Company’s response

In 2020, the company
decided to sell someshares of listed
subsidiaries anddeconsolidate

1
Raise
issue

2
Recognize
issue

Voting record

3Address
issue

4
Solve
issue

Policies for the future

Voted in favor of
the proposal toappoint a director
to replace theretiring outside
director

Continue
engagements withthe company about
the ideal officer
composition andimproving theeffectiveness of theboard of directors

1
Raise
issue

3
Addressissue

2
Recognize
issue

Voting record

－

4
Solve
issue

Policies for the future

Ongoing
engagements withthe company tocontinue to improve
the governance ofGroup companies
and strengthen
their businesses

8. Report on Stewardship Activities (examples of engagements)

47

Leading Examples of Engagements
Governance

Issue
Goal

Environment/
societyCompany C
Wholesale
Management
strategies

Financialstrategies

Governance

Environment/
societyCompany D
FoodManagement
strategies

Financialstrategies

Strengthening climate change
measures
TCFD-compatible disclosure
enhancements and target setting

Overview of engagement

Number of engagements : 2(2017/2019)
Shared view on climatechange-related management
risks, and exchanged opinions
about the possibility of
disclosure enhancements andquantitative target setting inalignment with TCFD

1
Raise
issue

Goal

Respond appropriately to food loss
issue

Reaction

Positive

Company’s response

In the new mediumterm management plan
released in 2020, thecompany identified foodloss as a key ESG issue
and set concrete
quantitative targets

2
Recognize
issue

Voting record

In the new mediumterm management plan
released in 2020, thecompany for the firsttime demonstrated an
intention to achieve net
zero emissions in the
future and set concrete
quantitative targets

Food loss issue

Number of engagements: 2(2018/2019)
Shared awareness of issues
related to food loss, andexchanged opinions about thestatus of concrete initiatives
and target setting

Positive

Company’s response

Issue

Overview of engagement

Reaction

4
Solve
issue

Policies for the future

Regularly follow up on
the progress of theannounced targets,and continue
engagements withthe company about
concrete initiatives
and challenges forachieving the targets

－

1
Raise
issue

3
Addressissue

2
Recognize
issue

Voting record－

3Address
issue

4
Solve
issue

Policies for the future

Follow up on climate,plastic waste, andother ESG issues,and continue
engagements withthe company about
the progress andchallenges forachieving the targets

8. Report on Stewardship Activities (examples of engagements)

48

Leading Examples of Engagements
Governance

Issue
Goal

Environment/
societyCompany E
Transport
equipment

Management
strategies

Financialstrategies

Governance

Environment/
societyCompany F
Transport
Equipment

Management
strategies

Financialstrategies

Strengthening climate change
measures
TCFD-compatible disclosure
enhancements and target setting

Overview of engagement

Number of engagements: 1(2019)
Shared view on climatechange-related management
risks, and exchanged opinions
about enhancing information
disclosures, including
formulation of concrete
strategies and scenario
analyses

1
Raise
issue

Goal

Improve capital efficiency/
ROE target setting

Reaction

Positive

Company’s response

In the 2020 securities
report, the company set
forth an intention toemphasize capitalefficiency, including
setting new ROE targets

2
Recognize
issue

Voting record

While the company
perceives the risks withgreater alarm, it has notenhanced its
information disclosures
including concrete
strategies and scenario
analyses

Low-level capital efficiency

Number of engagements: 3(2015/2017/2019)
Shared opinion as an
institutional investor on thecauses of the stagnation in stock
prices, and maderecommendations on theimportance of increasing capitalefficiency and on concrete
improvement measures

Negative

Company’s response

Issue

Overview of engagement

Reaction

4
Solve
issue

Policies for the future

Continue
engagements withthe company aboutbusiness strategies
and information
disclosures taking into
account increasingclimate change risks

－

1
Raise
issue

3
Addressissue

2
Recognize
issue

Voting record－

3Address
issue

4
Solve
issue

Policies for the future

The company is in the
middle of improving
its capital efficiency,
and we will continue
our engagements withthe company about
concrete improvement
measures8. Report on Stewardship Activities (examples of engagements)

49

Leading Examples of Engagements
Governance

Environment/
societyCompany G
ApparellManagement
strategies

Financialstrategies

Governance

Environment/
societyCompany H

Information
Communications

Management
strategies

Financialstrategies

Issue

Low-level capital efficiency

Goal

Improve capital efficiency/ROE
target setting

Overview of engagement

Number of engagements: 1(2019)
Shared opinion as an
institutional investor on thecompany’s weak performance,and exchanged opinions about
the importance of increasing
capital efficiency and ROE
target setting

2
Recognize
issue

3
Address
issue

4
Solve
issue

Voting record

The company again did
not set ROE targets inthe new medium-term
management plan
released in 2020, andits weak performancecontinued

Voted against the
proposal toappoint a director(representative
director) at theordinary general
meeting ofshareholders

Sold the company’s
shares as there wasno prospect of thecompany improving
its efforts

1
Raise
issue

3
Address
issue

Low-level shareholder return ratio

Goal

Set and disclose shareholder returntargets/increase level of returns

Number of engagements: 3(2016/2018/2019)
Shared our view on seeking
appropriate shareholder returns
if the capital level is sufficient,and exchanged opinions about
setting and disclosing mid- tolong-term shareholder returntargets and raising the level ofreturns

Negative

1
Raise
issue

Company’s response

Issue

Overview of engagement

Reaction

Reaction

Positive

Company’s response

In 2020, the company
announced its firstdividend payment andshare repurchase since
its listing, and set
concrete shareholder
return targets

Policies for the future

2
Recognize
issue

Voting record

－

4
Solve
issue

Policies for the future

Continue
engagements with thecompany about futurebusiness strategies
and the necessarylevel of capital8. Report on Stewardship Activities (examples of engagements)

50

Leading Examples of Engagements
Governance

Issue

Low-level capital efficiency

Goal

Improve capital efficiency/ROE
target setting
Overview of engagement

Environment/
societyCompany I
PharamaceuticalsManagement
strategies

Financialstrategies

Governance

Environment/
societyCompany J
Finance
Management
strategies

Financialstrategies

Conflicted with voting policy
but voted in favor inconsideration of engagement

Conducted engagement as the company
has ongoing deficits, which conflicts with
our voting policy (performance criteria).
Visited the research facility to confirm
the company’s high level of technologicalcapabilities, and confirmed future
management strategies and measures
for improving performance

Voting record

Voted in favor of the
proposal to appoint directors
at the ordinary general
meeting of shareholders,taking into account thecompany’s mid- to long-term
growth potential and costfirst business model

Issue

Low-level shareholder return ratio

Goal

Set and disclose shareholder returntargets/increase level of returns
Overview of engagement

Conducted engagement as the company
has sufficient capital level but a low level ofshareholder returns, which conflicts with
our voting policy (appropriation of surplus).
Confirmed the company’s approach forshareholder returns, the level of capitalrequired in light of its business format, andmid- to long-term investment plan

Voting record

Voted in favor of the
proposal on appropriation of
surplus at the ordinary
general meeting ofshareholders, taking into
account the company’snecessary level of capital andinvestment strategy needed
for future growth

Policies for the future

Regularly follow up on the
progress of the mid- tolong-term growth strategy
and continue
engagements with thecompany about thechallenges and solutions
for improving performance

Policies for the future

Continue engagementswith the company about
an appropriate approachfor shareholder returns,
taking into account thecompany’s mid- to longterm investment strategy

8. Report on Stewardship Activities (examples of engagements)

51

Participation in Collaborative Engagements through theLife Insurance Association of JapanAs an effort to strengthen our independent engagement activities and enhance their effectiveness, we continuously participate incollaborative engagements conducted by the Working Group for Stewardship Activities of the Life Insurance Association of Japan(LIAJ).

In FY2019, we carried out engagements with the themes of “enhancing shareholder returns,” “enhancing ESG information
disclosures,” as well as the new theme of “enhancing climate change information disclosures” with 142 companies in total(cumulative total 149 companies), based on the recognition of issues shared by the participating companies.



We will also strengthen efforts for other collaborative engagement initiatives in which we participate.

FY2019 Engagement themes

FY2018 Results of efforts<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％
27％

Dividend payment
ratio under 30％

33%

N/a companies
6%

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

Enhancing ESG information disclosures
New
Enhancingshareholder
returns

Enhancing ESG
information
disclosures

Enhancingclimate change
info disclosures

67 listedcompanies

65 listedcompanies

17 listedcompanies

Published
Annual Report
6%
Progress in disclosure
observed
14%

Progress in disclosure
not observed
80%

Enhanced ESG information
disclosures
Total 20％

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”

52

Table of Contents

7. ESG Investment Report

1. Message from the
President---2

2. Our Role as
Responsible
Investor---3

3. Basic Policy on ESG
Investment---4

4. Our Approach for
Responsible
Investment

---7




5. Our Framework for
Responsible
Investment

---8






6. Highlights

---11






Looking back on past efforts andactions
2020 effort policies
ESG-themed investment
Examples of efforts for ESG
integration

8. Report on Stewardship
Activities




---18

Basic approach and processes
Looking back on past efforts andactivities
Examples of engagements
Policies for FY2020
Voting Policy and voting records
Self-evaluation and evaluation byothersMessage from the General
Manager of the Responsible
Investment Dept.
Reference (Glossary)---398. Report on Stewardship Activities (policies for FY2020)

53

Policies for Stewardship Activities in FY2020(Period: July 2020–June 2021)
Engagement
Conduct ESG engagements to support the efforts and behavioral changes of companies
based on sudden changes in the social and business environment

 Response to the COVID-19 pandemicConfirm efforts to ensure safety and healththroughout the supply chain of suppliers,
etc. and to reform employee workstyles, aswell as management policies (adapting toDX) for changing to a sustainable businessmodel in the mid- to long-term

 Diversification of engagement methodsParticipate in domestic and overseas collaborative
engagements to solve common issues facing investors andimprove the market environment in order to exercise greater
influence than is possible by the company alone

Make active use of non-face-to-face engagement methods,
including videoconferencing, teleconferencing, and sending
letters

 Strengthen engagements on climatechange and plastic wasteConfirm investee companies’ intentions,with focal themes being responding toclimate change along with the new themeof addressing plastic waste, including
disclosures based on TCFD
recommendations

 Enhance disclosures of reasons behindvoting decisions
Disclose our voting approach in an easy tounderstand manner, including further
elaborating on the reasons for individual
decisions, and further promote constructive
engagements

8. Report on Stewardship Activities (policies for FY2020)

54

Focal Themes of Engagements in FY2020
Focal themes of engagements
1. Response to COVID-19
Change to a sustainable business model, taking into accountthe spread of infectious diseases

2. Response to climate change(Reference) Efforts of Dai-ichi Life HD
 Promote digitalization through InsTech
initiatives, special handling of COVID-19compatible insurance Support TCFD, joined RE100

Build and disclose governance structures based on TCFD
recommendations

3. Response to plastic waste
ESG

Strengthen measures to realize a resource recycling society

4．Development of governance structures
Increase governance sophistication based on the Corporate
Governance Code

5．Identification of materiality andinclusion in management strategies
Identification of important issues (materiality) for business model
sustainability and reflect them in management strategies (risks andgrowth opportunities)
Management
strategies

6．Strategic investments for sustainablegrowthStrategic investment policy for growth(M&A, capital investment, R&D investment, HR investment, etc.)

Financialstrategies

7．Mid- to long-term financial strategies
Appropriate balance of growth investment, shareholder returns, andretained earnings

 Became the world’s first(institutional investor) to invest in
plastic waste reduction bonds
 As a listed company, we make continuous
revisions to our governance framework with the
Corporate Governance Code as the starting point Prepare an Annual Report that discloses thecompany’s value creation process Selected 11 important issues after
exchanging opinions with management
and the Corporate Planning Dept. andholding engagements with external
experts

 Promote overseas expansion of the life
insurance business and InsTech initiatives
 Prepared financial strategies that set thefollowing targets[Capital efficiency] Avg. 8% ROEV growth[Capital achievement rate] 170–200% ESR[Shareholder returns] 40% of total return ratio

8. Report on Stewardship Activities (policies for FY2020)

55

Companies for Engagement in FY2020
 In FY2020, we select and carry out engagement with companies for which our focal engagement themes(COVID-19, climate change, plastic waste, etc.) may become an important management issue, taking into
account the importance of their holding amounts, their top shareholders, among other factors.

Total brands held: About 1,500*(including general and special accounts)

Focal
themesCOVID-19:
60 companies
Climate change:
40 companies
Plastic waste:
40 companies

Growth strategies:
50 companies

Holding amounts /top shareholders

Companies for which the COVID-19
pandemic, climate change, and plastic waste
may become an important management
issue

Companies in the growth stage(Support the growth of companies throughengagements regarding growth strategies)

Main themes:
130 companies

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

270 companies
selected* Some overlaps

Covers about 70% of the market
capitalization of the portfolio* Due to changes in the management method of passive products in special
accounts, the number of brands held is less compared to that of the last fiscal year.

56

Table of Contents

7. ESG Investment Report

1. Message from the
President---2

2. Our Role as
Responsible
Investor---3

3. Basic Policy on ESG
Investment---4

4. Our Approach for
Responsible
Investment

---7




5. Our Framework for
Responsible
Investment

---8






6. Highlights

---11






Looking back on past efforts andactions
2020 effort policies
ESG-themed investment
Examples of efforts for ESG
integration

8. Report on Stewardship
Activities




---18

Basic approach and processes
Looking back on past efforts andactivities
Examples of engagements
Policies for FY2020
Voting policy and voting records
Self-evaluation and evaluation byothersMessage from the General
Manager of the Responsible
Investment Dept.
Reference (Glossary)---398. Report on Stewardship Activities (voting policy and voting records)

57

Voting Policy (main points)

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

Agenda item
Appointing
directors/auditors

Policy as of April 2020

Applicable persons
Representative
director

When ongoing engagements do not show improvements inthe ESG issues (issues/focal themes) of each investee

Representative
director

Deficit for three straight fiscal years, under 3% ROE for fivestraight fiscal years (if served continuously as representative
director during the applicable period)

Director-

Revisions to be made in April 2021 and beyond

All listedcompanies

Under 5% ROE for five straightfiscal years(expand applicable people toreappointed directors)

In view of COVID-19’s impacts, suspend
application in principle for the time being

Absence of independent outside director

One independent outside director

To be applied
from April 2021-

Absence of independent
outside director

To be applied
from April 2021

Representative
director

Applies to

All listedcompanies

Companies listed
on TSE First
SectionTo be applied
One ind.
outside dir. from April 2022

Companies
listedother than TSEFirst Section

Representative
director of listed
subsidiary-

Independent officer(director/auditor)

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

Companies listed
on TSE First
SectionOutsidedirector/auditor

Under 75% attendance rate at board of directors and board ofauditors meetings

Companies listed
on TSE First
SectionGranting stock based compensation and stock options toauditors, etc. (including members of Audit & Supervisory
Committee)

All listedcompanies

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

All listedcompanies

Appropriation of surplus (representative
director is reappointed as director if there is
no applicable agenda item)

Under 20% total return ratio for three cumulative fiscal years
and the most recent fiscal year

All listedcompanies

Introducing and updating takeover defense
measures(One of the following applies) Under 5% ROE for threestraight fiscal years; less than two independent outside
directors; economic compensation provided

Providing retirement allowances

Provision of retirement allowances to auditors, etc. (including
members of Audit & Supervisory Committee)

Officer compensation, stock based
compensation, issuing and granting stock
options

Independent outside director: under 1/3, or 1 person(One of the following applies) Under 5% ROE for threestraight fiscal years; independent outside director:
under 1/3, or 1 person

To be applied
from April 2022

To be applied
from April 2022

* See materials on our website for more information on our voting policy. http://www.dai-ichi-life.co.jp/dsr/investment/ssc2.html

All listedcompanies

All listedcompanies
Companies listed
on TSE First
Section8. Report on Stewardship Activities (voting policy and voting records)

58

Voting Records (July 2019–June 2020)

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 officers, etc.) dated April 1, 2020, which has
also increased the overall ratio of our votes against proposals.
We voted in favor of seven agenda items proposed by shareholders that we deemed contribute to increasing 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>

17.2% voted against

5.7％ voted against

14.6％ voted in favor

4.7％ voted in favor（＋8.8％）（+3.1％）（＋4.4％）（＋1.4％）

1,269 votes in favor 4,806 votes in favor
289 votes against
263 votes against

6 votes in favor
35 votes against

7 votes in favor
143 votes against* Tally results based on agenda items of parent company (an agenda item is counted as one agenda item even if it
includes several proposals to appoint directors, etc.).
For a detailed tally and individual voting records, see materials on our website.
https://www.dai-ichi-life.co.jp/dsr/investment/ssc2.html(Year on year)

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

59

Voting Records (July 2019–June 2020)■ Agenda items related to corporate organizations[Selecting/dismissing directors]
8.2％ voted against (+5.2%)

1,327 votes in favor
119 votes against[Selecting/dismissing auditors]
7.4％ voted against(-1.2%)

1,349 votes in favor
108 votes against[Selecting/dismissing independent auditor]
0.0％ voted against (0.0%)

36 votes in favor■ Agenda items related to officer compensation[Officer compensation] 3.7％ voted against (0.0%)525 votes in favor■ Agenda items related to capital policies(except those for Articles of Incorporation)[Appropriating surplus]
1.3％ voted against (+0.9%)

1,056 votes in favor
14 votes against[Related to organization restructuring]
0.0％ voted against (0.0%)

17 votes in favor[Introducing, updating, and abolishingtakeover defense measures]
19.7％ voted against (-0.9%)

57 votes in favor
14 votes against[Agenda items related to other capital
policies]
0.0％ voted against (-2.2%)

45 votes in favor

20 votes against[Retirement allowances for retired officers]
12.3％ voted against (-1.6%)

100 votes in favor
14 votes against■ Agenda items related to Articles ofIncorporation
0.0％ voted against (0.0%)294 votes in favor(Year on year)

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

60

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.

Principle ３
Monitor investee
companies

 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 FY2017 to FY2019.
 In the case of around 60% of the companies with which we conducted engagements in FY2019, wesought to share issues with the management of the companies, including through interviews with
their officers.
 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 ４
Engagements withcompanies

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

61

Our Compliance with Japan’s Stewardship Code (self-evaluation)
Principle

Status of efforts

Self-evaluation

Principle ５
Voting In FY2019, the Responsible Investment Dept. exercised all voting rights for 1,532 listedcompanies in Japan (we did not use any services of voting advisory companies).
 We revised our voting policy and announced the details in March 2020 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. For voting from January 2019, we began disclosing the reasonsfor voting against individual proposals. For voting from April 2020, we disclose the reasons for any
agenda item we deem especially require 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.

Principle ６
Report periodically 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.

Principle ７
Acquire competency

 We established the Responsible Investment Center in April 2017 (renamed Responsible
Investment Dept. in April 2020) to consolidate personnel and functions 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 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.

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

62

Engagement Partner Survey Results (evaluation by others) We conducted an anonymous survey that was sent to our engagement partners and others. The results showed that ourpartners highly appreciate our engagement and the content of our Responsible Investment Report.
 At the same time, we have found that feedback regarding engagement with Dai-ichi Life is often not shared outside of thedepartments in charge of the respective companies, and that we need to make further efforts to ensure that feedback reaches
management.
 We will take stock of the opinions received in the survey for further improving our engagement activities.
Did the Dai-ichi Life person in chargeof engagement fully understand yourcompany’s situation?

Was Dai-ichi Life’s engagement
helpful?

Was the Responsible Investment
Report useful?

Not really

Not fully / not at

Not really

4%

all

1%

2%

To someUnderstoodto someUnderstoodextentVery much

extent

38%

58%

fully

39%

59%

Please tell us to whom you sent (or plan to send) your inhouse feedback on engagement with Dai-ichi Life.

Officer in charge of business planning,56

finance, IR, etc.
Dept. in charge of business planning,37

finance, IR, etc.
Have not sent feedback

7

extentVery much

44%

55%

Examples of measures taken
based on the opinions received◆Engagement
・Improved sending agenda to engagement partners in advance・Cross-check content of engagement of engagement personnel

14

Board of directors

To some* Multiple
answers allowed Responsible Investment Report・Created glossary
・Included more engagement examples

Message from the General Manager of the Responsible Investment Dept.

63

Toward engagement framed by a close understanding of investee companies
Thank you for your continued understanding and cooperation with Dai-ichi Life’s stewardship activities.
The company has been fully engaged in stewardship activities ever since Japan’s Stewardship Code was established in FY2014, andhas conducted engagement activities with over 200 companies annually for six years through FY2019.
We have expanded engagement themes from governance, management strategies, and financial strategies to ESG areas, as well assought to enhance our activities under each theme. In particular, in FY2020, we added plastic waste, along with climate change, as
important themes to align with the sustainability considerations of the revised Stewardship Code. In addition, we are pursuing newthemes, including social initiatives, such as infectious disease countermeasures for company customers, employees, and suppliers in

response to the COVID-19 pandemic, as well as growth, business, and DX strategies for the with- and post-COVID-19 worlds.
Dai-ichi Life gives particular emphasis to engagement among the stewardship activities. This is because we are certain that direct
engagements with companies will contribute to increasing corporate value in the mid- to long-term. We, as a life insurance company,
approach the issues facing investee companies from a mid- to long-term perspective to encourage gradual corporate transformationand growth. We believe doing so will increase the corporate value of wide-ranging investees and improve investment returns, and byextension, lead to Japan’s economic growth.
As a listed company, Dai-ichi Life Holdings manages businesses while being
conscious of various stakeholders, including shareholders. From our own
experience, we understand and have a sensitivity to the management concerns andissues facing companies.
Dai-ichi Life will continue to actively pursue more sophisticated stewardship
activities, so that we can implement engagement that leverages our characteristics,
cuts across boundaries to understand the individual issues facing investee
companies, and helps overcome the issues.

September 2020

Hiroko Ishii, General Manager
Responsible Investment Dept.

64

Table of Contents

7. ESG Investment Report

1. Message from the
President---2

2. Our Role as
Responsible
Investor---3

3. Basic Policy on ESG
Investment---4

4. Our Approach for
Responsible
Investment

---7




5. Our Framework for
Responsible
Investment

---8






6. Highlights

---11






Looking back on past efforts andactions
2020 effort policies
ESG-themed investment
Examples of efforts for ESG
integration

8. Report on Stewardship
Activities




---18

Basic approach and processes
Looking back on past efforts andactivities
Examples of engagements
Policies for FY2020
Voting Policy and voting records
Self-evaluation and evaluation byothersMessage from the General
Manager of the Responsible
Investment Dept.
Reference (Glossary)

---39

65

(Reference) Glossary* In alphabetical order
Term

Explanation

Term

Explanation

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

ESG integration

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

Collaborative
engagement

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

ESG vendor

Data analytics company providing ESG
research and ratings

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.

ESR

Acronym for Economic Solvency Ratio. One of
the soundness indicators used by insurancecompanies indicating whether there issufficient capital relative to risk.

Engagement

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

FinTech

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

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.

Green bond

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

66(Reference) Glossary* In alphabetical order
Term

Explanation

Term

Explanation

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)

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

KPI

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

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.

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

Project finance

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

Negative screening

Exclusion of specific industries and companies
from the investment portfolio

QOL

Acronym for Quality Of Life

67

(Reference) Glossary* In alphabetical order
Term

Explanation

Term

Explanation

RE100

An environmental initiative launched for
reducing the environmental footprint causedby the business activities of companies. It
aims to source 100% of the energy needed forbusiness operations from renewable energies.

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

Resilience

An ability to adapt flexibly to thecircumstances, including strong externalpressureSocial bond

Bond issued to raise funds needed for solvingsocial issues

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.

Stewardship
activities

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

ROEV

Acronym for Return On Embedded Value. An
indicator measuring the growth potential of
corporate value, considering the increase inembedded value (an indicator of the corporate
value of life insurance companies) as profit
taking into account the nature of life insurance
accounting.

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.

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.

TCFD

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.

68(Reference) Glossary* In alphabetical order
Term

Explanation

Term

Explanation

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

Universal owner

An institutional investor with a relatively large
asset portfolio who makes diversified
investments in a wide range of assets andsecurities from a mid- to long-term
perspective

A foreign bond that does not use a mechanism
Unhedged foreign
to avoid foreign exchange fluctuation risksbond(hedging)

Universe

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

69

The Dai-ichi Life Insurance Company, Limited
13-1,YURAKUCHO 1-CHOME,CHIYODA-KU,TOKYO,
100-8411 JAPANTEL: +81-3-3216-1211
MOBILE: +81-50-3846-7754