TNFD REPORT

2024

Editorial Policy for This Report
Tokio Marine Holdings TNFD Report 2024 aims to communicate to all stakeholders Tokio Marine Group’s initiatives forcontributing to the preservation of natural capital and biodiversity.
The Group CEO explains the preservation of natural capital and biodiversity are material issues and outlines our commitment
to contribute to achieving “nature positive”. This report introduces the Group’s initiatives structured around the fourrecommendation pillars of governance, strategy, risk and impact management, and metrics and targets of the TNFD disclosure
framework. It also describes the initiatives Tokio Marine Group will promote as our future plan for contributing to achieving"nature positive” by 2030.
The Special Feature introduces Tokio Marine Group’s Green Gift Project and Mangrove-based value co-creation, which are oursignature initiatives, and explains our history and achievements so far.
The report also incorporates a glossary and the TNFD guidance table in the Appendix as reference for our readers in our effort
to provide easy-to-understand disclosure.

Publication information• Reporting period: Fiscal 2022 and Fiscal 2023
• Reporting organizations: Tokio Marine Holdings and its major subsidiaries (consolidated Group companies and others,
including Tokio Marine & Nichido) (hereafter collectively referred to as Tokio Marine Group)• Subject of analysis:
Analysis of insurance underwriting portfolio: Tokio Marine & Nichido’s corporate customer insurance contracts
Analysis of investment and financing portfolio: Japan listed stocks and bonds held by Tokio Marine & Nichido
Analysis of Tokio Marine Group’s business locations (including the value chain): business locations of Japan consolidated
Group companies and some insurance agents of Tokio Marine & Nichido• Reference guidelines: Recommendations of the TNFD• Cover photo: Mangrove forests in Ranong province, Thailand (provided by Organization for Industrial, Spiritual and Cultural
Advancement-International (OISCA))• Publish date:Japanese original published in March 2024
English version published in June 2024

INDEXCEO Message……………………………………………………………………… 4

Nature-related Financial Disclosures
based on Recommendations of the TNFD ……………………………………… 5❶ Corporate Philosophy, Sustainability Charter, and Natural Capitaland Biodiversity-related Policies 5❷ Materiality and Conservation of Natural Capital and Biodiversity 6❸ Tokio Marine Group’s Approach to Conserving Natural Capital and Biodiversity 6❹ Status of Response to Recommendations of the TNFD 7

Governance…………………………………………………………………………… 8❶ Supervisory and Execution Structure 9❷ Compensation for Directors and Executive Officers 10❸ Stakeholder Engagement Policies 10

Metrics and Targets ………………………………………………………………… 26❶ Insurance Products and Services 27❷ Investment and Financing 28❸ Business Operations 28

Future Plan ……………………………………………………………………………… 29
Contributing to Achieving "Nature Positive" by 2030 29

Special Feature ………………………………………………………………………… 30
Value Co-creation through Mangrove Planting: Insurance for the Future of the Earth 30《A. Mangrove Planting Project, a Commemorative Projectto Celebrate the 120th Anniversary》 30《B. Launching the Green Gift Project at the 10th Anniversary of
the Mangrove Planting Project》30

Strategies ……………………………………………………………………………… 11《C. Status of Mangrove Planting》31❶ Approach to Natural Capital and Biodiversity 12《D. Benefits of Mangrove Planting for the Environment and Local Life》31❷ Recognition of Nature-Related Dependencies and Impacts 12《A. Insurance Underwriting and Investment and Financing》 12《B. Business Operations (including the Value Chain)》 15❸ Nature-Related Risks and Opportunities and Response Strategies 16《A. Risks, Opportunities and Strategies》16《B. Policies Concerning Insurance Underwriting and Investment and Financing》 23

Risk and Impact Management…………………………………………………… 24《E. Economic Value and Impact on Local Communities from Mangrove Planting》 33

Appendix ………………………………………………………………………………… 35❶ Glossary 35❷ Information about Dependencies and Impacts on Nature in Our Insurance

Underwriting and Investment and Financing 37❸ Other Initiatives of Tokio Marine Group 38❹ TNFD Guidance Table 41

CEO Message
Nature-related Financial Disclosures
based on Recommendations of the TNFD

1

Governance32
CEO Message

2

Strategies

3

Risk and Impact
Management

4

Future Plan
Special Feature
Appendix

Metrics and Targets

4

Protecting customers and local communities in times of need has been TokioIn December 2022, the Kunming-Montreal Global Biodiversity Framework (GBF) was

3 Marine Group’s unwavering purpose4since our founding in 1879. In keeping with the

adopted at the 15th Conference of the Parties to the United Nations Convention on

purpose, we have been committed to resolving ever-changing societal challenges.

Biological Diversity (COP15). GBF articulates the “2050 Vision” for realizing a world

All employees have been striving together under the shared belief that the more weliving in harmony with nature by 2050 and sets out targets for 2030 that must be

4 expand our business, the more we can make the world a better place. As a result,attained to realize the Vision. Meanwhile, in Japan, the National Biodiversity Strategy

we intend to achieve sustained profit growth and continue to provide value to2023–2030, which was approved by the Cabinet in March 2023, clarifies the role ofall stakeholders. We aspire to remain a presence that support people in taking on

financial institutions in achieving “nature positive” by 2030. As a TNFD Early Adopter,challenges, even in an environment with an uncertain future, and help society grow

Tokio Marine Group aims to achieve “nature positive” by 2030 through its businesswhile we ourselves continue to take up the challenge of solving social issues.

activities and generate a virtuous cycle of creating a society that coexists withnature in 2050 and attaining sustainable growth (raising corporate value).

To date, we have identified climate change as a top-priority issue and implemented
wide range of initiatives to address this issue. In addition to these climate actions, itMoreover, we will also work to create value through constructive dialogue basedis crucial to achieve “nature positive”* to halt and reverse nature loss and preserveon trust and collaboration with a variety of stakeholders, including international

biodiversity to enhance the resilience of our planet. Corporate business activities

organizations, governments, industry, academic institutions, and civil society.

have the potential to worsen local natural environments through the destruction ofSatoru Komiya
President and Group CEO
Tokio Marine Holdings, Inc.

nature. One such example is deforestation, which leads to decline in flood control

The following pages explain our initiatives based on the Task Force on Nature-

capacity, thereby increasing the risk of flooding in the area that could ultimately

related Financial Disclosures (TNFD) recommendations announced in September

cause the loss of biodiversity and directly impact the business of insurance

2023. They include the dependencies and impacts of our business (insurancecompanies.

underwriting and investment and financing) on natural capital and biodiversity;
strategies to understand the relationship between the bases of our businessWe believe that we can contribute in creating a society that coexists with nature by

operations (including our value chain) and protected areas and to make appropriate

developing and providing insurance products and services that play an important

responses accordingly; and our measures to achieve “nature positive” by 2030 androle in solving nature-related issues. Acting on this conviction, Tokio Marine Group

create a society that coexists with nature in 2050 through our business activities.

positions the preservation of natural capital and biodiversity as a key issue that wemust confront and work as one team to find solutions.

* Halting and reversing the loss of biodiversity and putting nature on a recovery track

TCFD Report 2024

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CEO Message
Nature-related Financial Disclosures
based on Recommendations of the TNFD

1

Governance

2

2

3

3

4

Nature-related Financial Disclosures Based on Recommendations of the TNFD
Tokio Marine Group has been promoting preservation of natural capital and biodiversity throughenvironmental protection activities that include mangrove planting.

4

Under these circumstances, the Kunming-Montreal Global Biodiversity Framework (GBF) was adopted

Risk and Impact
Management

3

Strategies

4

Metrics and Targets

Future Plan
Special Feature
Appendix

4

In 2021, we formulated the Tokio Marine Group Basic Policy on Environment to protect the global
environment and create environmental value through business activities as a Group; the Tokio Marine
Group Basic Policy on Human Rights that advocates respect for the human rights of all people; and the
Tokio Marine Group Policy to Address Environmental and Social Risks for our insurance underwriting andat COP15 in December 2022. GBF sets out the 2050 Vision for realizing a world that coexists with natureinvestment and financing. In March 2023, we established the Tokio Marine Group Responsible Procurement

by 2050 as well as the 2030 targets that must be attained to achieve the Vision. Companies, including

Guidelines as we work closely with our business partners in the value chain on climate action, disaster

financial institutions, are expected to contribute to solving nature-related issues through their businessresilience, reducing environmental impacts, effective utilization of resources and preserving natural capital

activities. They are also required to evaluate and disclose the dependencies and impacts of their businessand biodiversity.

activities on biodiversity as well as related risks and opportunities. Recommendations of the TNFD, which
are aligned with the GBF goals and targets, were announced in September 2023.

Tokio Marine Group's Natural Capital & Biodiversity-related Policies

Building on our initiatives to the present, Tokio Marine Group will continue to promote the preservationof natural capital and biodiversity while taking into account GBF goals and targets. We will also work todisclose nature-related financial information based on Recommendations of the TNFD.
❶ Corporate Philosophy, Sustainability Charter, and Natural Capital and Biodiversity-related
Policies
As its Corporate Philosophy states, Tokio Marine Group continually strives to raise corporate value withcustomer trust as the foundation for all its activities. Furthermore, we have established the Sustainability
Charter , under which we are committed to fulfilling our Corporate Social Responsibility (CSR) by

implementing its Corporate Philosophy to achieve sustainable growth together with the developmentof society in accordance with the following six principles: providing products and services to meet thesociety's needs for safety and security; respect for human rights and dignity; protection of the global

Corporate Philosophy
With customer trust as the foundation for all its activities,
Tokio Marine Group continually strives to raise corporate value.

Basic Policy on
Human Rights

Sustainability Charter・R espect human rights ofall people.

Policy to address
Environmental andSocial Risks・E nvironmental and social risks
identified and assessed
・Sector specific policies• Products ad Services• Respect for Human
Rights and Dignity• Protection of the Global
Environment• Contribution to Local
Communities andSocieties• Compliance• Communication

Basic Policyon the Environment• To protect the environment andcreate environmental value
through every aspect of ourcorporate activities.

Responsible Procurement
Guidelines• Human rights and labor• Environmental protection,
etc.

environment; contribution to local communities and societies; enforcing compliance; and promoting
communication with all our stakeholders. Therefore, solving nature-related issues represents the actual
application of Tokio Marine Holdings’ Corporate Philosophy.
TCFD Report 2024

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CEO Message

1

Nature-related Financial Disclosures
based on Recommendations of the TNFD

2

Governance

Strategies

3

2

3

Risk and Impact
Management

4

Future Plan
Special Feature
Appendix

Metrics and Targets

4❷ Materiality and Conservation of Natural Capital and Biodiversity

from stakeholders, specialists and outside experts while referencing principal frameworks related toBased on the strong belief that “it is our duty to pass on a bright future to the next generation,” wedomestic and international social issues such as the SDGs, ISO 26000 and New Industry Vision.

(materiality) that we must address based on the value we provide to each type of stakeholder and theAmong the eight material issues, “taking climate action,” “improving disaster resilience” and “protecting thesocial issues that affect our insurance business. We determined these material issues by seeking advice

natural environment” are directly linked to mitigation and adaptation of climate change and conserving

have clearly positioned “future generations”3as a stakeholder. In 2021, we clarified4eight material issues

4natural capital and biodiversity (achieving “Nature Positive” by 2030/creating a society in harmony withnature in 2050).

●❶

stakeholder 5

For future generations[Value provided]• Hand down a sustainable
environment and society tofuture generations by engaging
in climate change countermeasures and the preservation of
biodiversity• Support the challenges of
future generations by providing
education and enlightenment tochildren●❻stakeholder 1

For customers

Take
climate action

Protect thenaturalenvironment●❸

Supportpeople’shealthy andenriching lives●❼
Provideeducation tochildrenstakeholder 4[Value provided]• Continually increase shareholder
returns• Enhance the Group’s value andearn the trust of shareholders andinvestors through timely andproper disclosure along withconstructive dialogue●❹
Promote andsupportdiversity andinclusionbusiness activities.

❸ Tokio Marine Group’s Approach to Conserving Natural Capital and Biodiversity
and reversing the loss of biodiversity, to protect the Earth’s environment. Driven by this recognition,
Tokio Marine Group positions the preservation of natural capital and biodiversity as an important issue●❺

Facilitate andfoster innovation
through
digitalization

Disclose highly
transparent
and timely
information

Tokio Marine Group is working to resolve societal challenges in these materiality domains through all

Aside from taking climate action, it is also essential to achieve "nature positive", which involves halting

Improvedisasterresilience●❽

For shareholders
and investors●❷[Value provided]• Contribute to making customers’
lives healthy and enriching
through products that provide
security and assistance with
future-oriented challenges

to confront. We also endorse the goals and objectives set forth in such international frameworks as
stakeholder 2

the United Nations Convention on Biological Diversity, the Convention on Wetlands of International

For society

Importance especially as Waterfowl Habitat (Ramsar Convention), the Convention on International[Value provided]• Contribute to building asustainable society that canovercome any challenge andensure the safety and security of
all its members

Trade in Endangered Species of Wild Fauna and Flora (Washington Convention) as well as the Japanese
government’s National Biodiversity Strategy and Action Plan 2023–2030. Accordingly, we seek tocontribute to the attainment of these goals and objectives through its business activities.

stakeholder 3

For employees

Through its business activities, Tokio Marine Group strives to create a virtuous cycle of preserving natural[Value provided]• Help employees reach theirhighest potential throughengagement and opportunities
for them to thrive

capital and biodiversity and achieving corporate growth (raising corporate value). A summary of ourinitiatives is as follows.

TCFD Report 2024

6

CEO Message
Nature-related Financial Disclosures
based on Recommendations of the TNFD

1

Governance22Strategies

3

3

Risk and Impact
Management

4

Metrics and Targets

Future Plan
Special Feature
Appendix

4

TNFD disclosure recommendations

Analysis and evaluation of the impacts of our business activities and their dependencies
on natural capital and biodiversity, as well as nature-related risks and opportunities

Governance

Strategies

Risk & Impact Management

Metrics and targets

Insurance products
and services

Green Gift Project/Mangrove Planting Project, soil decontamination costs insurance, soil
environmental assessment, soil pollution countermeasures and consulting, TNFD
support services, nature positive management support services, etc.

Disclose the organisation’s
governance of naturerelated
dependencies, impacts, risks
and opportunities.

Investments andfinancing

Describe the processes
used by the organisation to
identify, assess, prioritiseand monitor nature-related
dependencies, impacts, risks
and opportunities.

Disclose the metrics andtargets used to assess andmanage material naturerelated dependencies,
impacts, risks andopportunities.

Investment in a forestry fund, investment in an agriculture strategic investment fund, etc.

Disclose the effects of naturerelated dependencies, impacts,
risks and opportunities on theorganisation’s business model,
strategy and financial planningwhere such information ismaterial.

Direct operations

Reduction of water usage, paper usage, waste emission, etc.

A. Describe the board’s
oversight of nature-related
dependencies, impacts, risks
and opportunities.

A(i) Describe the organisation’s
processes for identifying,assessing and prioritising
nature-related dependencies,
impacts, risks and opportunities in its direct operations.

A. Disclose the metrics used by
the organisation to assess andmanage material naturerelated risks and opportunities
in line with its strategy and risk
management process .

OthersProtection and restoration of eelgrass beds, Collaborative Afforestation Project in Kochi
Prefecture, Restoration Projects of the Coastal Forests of Tohoku Region, restoration ofenhalus acoroides (tape seagrass), other forest maintenance, nature-related education
and awareness-raising activities, participation in natural capital and biodiversity-related
initiatives, nature-related information disclosure

A. Describe the nature-related
dependencies, impacts, risks
and opportunities theorganisation has identified
over the short, medium andlong term.

B. Describe management’s rolein assessing and managing
nature-related dependencies,
impacts, risks andopportunities .

B. Describe the effectnature-related dependencies,
impacts, risks and opportunities have had on the organisation’s business model, value
chain, strategy and financial
planning, as well as any transition plans or analysis in place.

A(ii) Describe theorganisation’s processes for
identifying, assessing andprioritising nature-related
dependencies, impacts, risks
and opportunities in its
upstream and downstream
value chain(s)B. Disclose the metrics used by
the organisation to assess andmanage dependencies andimpacts on nature .

C. Describe the organisation’s
human rights policies andengagement activities, andoversight by the board andmanagement, with respect toIndigenous Peoples, Local
Communities, affected andother stakeholders, in theorganisation’s assessment of,and response to, nature-related
dependencies, impacts, risks
and opportunities.

C. Describe the resilience ofthe organisation’s strategy tonature-related risks andopportunities, taking into
consideration different
scenarios.

B. Describe the organisation’s
processes for managing
nature-related dependencies,
impacts, risks andopportunities

C. Describe the targets andgoals used by the organisation
to manage nature-related
dependencies, impacts, risks
and opportunities and its
performance against these.

D. Disclose the locations ofassets and/or activities in theorganisation’s direct operations
and, where possible, upstream
and downstream value chain(s)that meet the criteria forpriority locations.

C. Describe how processes for
identifying, assessing,prioritising and monitoring
nature-related risks areintegrated into and inform theorganisation’s overall risk
management processes.

Analysis/evaluation

3

4

4

Initiatives for natural capital and biodiversity are closely associated with the human rights issues of related
local communities and indigenous peoples. Tokio Marine Group also desires to help resolve these issues
through its business activities.
❹ Status of Response to Recommendations of the TNFD
Tokio Marine Group has been promoting initiatives such as the Green Gift Project and Mangrove
Planting Project implemented by Tokio Marine & Nichido, as well as PHLY 80K Trees undertaken by U.S.based Philadelphia Insurance Companies (PHLY). In response to heightened expectations for corporate
efforts to preserve natural capital and biodiversity, in January 2022, we joined the Taskforce on Naturerelated Financial Disclosures (TNFD) Forum and have been preparing to disclose nature-related financial
information based on Recommendations of the TNFD. In January 2024, we registered as a TNFD Early
Adopter to report our initiatives based on Recommendations of the TNFD. Accordingly, we began
disclosing our nature-related financial information based on Recommendations of the TNFD for the firsttime. We will continuously enhance the content of our disclosure in the future.

TNFD specificrecommendations, which
are not included in the TCFD
Recommendations

Source：This figure is made by Tokio Marine Holdings based on Recommendations of the TNFD

TCFD Report 2024

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GovernanceCEO Message
Nature-related Financial Disclosures
based on Recommendations of the TNFD

1

Governance

2

2

3

3

4

Strategies

3

Risk and Impact
Management

4

Metrics and Targets

Future Plan
Special Feature
Appendix

4

Governance❶ Supervisory and Execution Structure

Various initiatives concerning nature-related issues are reported to the Board of Directors after being

Directors and the Management Meeting for discussion and takes the role of reporting the progress tothese bodies.

discussed at the executive level at the Sustainability Committee and the Management Meeting. In our

4governance structure, each relevant execution body spearheads the promotion of these initiatives under[Sustainability Committee]

the supervision of the Board of Directors. Key supervisory and execution bodies concerning nature-related

We established the Sustainability Committee in April 2021 to accelerate the promotion and execution

issues and their roles are as follows.

of our sustainability strategy, including response to nature-related issues, across the entire Group.
Chaired by the CSUO and comprising such members as the CEO, chief officers and management of[Board of Directors]

overseas Group companies, the Sustainability Committee deliberates on details of our sustainability

The Board of Directors recognizes responding to nature-related issues as a material management

initiatives and policies on a global basis and monitors the progress of each initiative. The committee

matter and assumes the role of supervising our overall initiatives for promoting sustainability. The

met four times each in fiscal 2022 and fiscal 2023 to promote and execute the sustainability strategy,

Board deliberates the sustainability policies of the entire Group, including responses to nature-formulate and reflect on mid- to long-term targets (KPIs) and annual plans related to sustainability

related issues, as well as evaluates and determines the mid-term and annual plans. The Board receives

and deliberate on other items. In response to the release of the TNFD recommendations in September

reports from the Sustainability Committee more than once every six months to monitor sustainability

2023, we established the TNFD Task Force immediately under the Sustainability Committee ininitiatives and provides instructions as necessary. In addition, the Board of Directors holds

December 2023 and embarked on initiatives concerning nature-related financial disclosures based on

deliberation on corporate strategy on the themes of the management environment and management

the TNFD recommendations.

issues, including nature-related issues, to fully utilize the knowledge of outside directors and outside
Audit & Supervisory Board members.
Corporate Governance, Integrated Annual Report 2023 (P. 106)

[Division Dedicated to Promoting Sustainability]
The Sustainability Division of the Corporate Planning Department is a division dedicated to thepromotion of the Group’s sustainability, including response to nature-related issues. This division[Group Chief Sustainability Officer (CSUO)]

is responsible for operating the Sustainability Committee and consistently promotes the Group’s

We established the position of CSUO in April 2021 to accelerate the promotion of sustainability

sustainability initiatives while communicating relevant strategies to Group companies, sharing

strategy, including response to nature-related issues, across the entire Group. The CSUO oversees

information and undertaking education and support activities.

the promotion and execution of the sustainability strategy, presents related policies to the Board of

TCFD Report 2024

9

CEO Message
Nature-related Financial Disclosures
based on Recommendations of the TNFD

1

Governance22Strategies

3❷ Compensation for Directors and Executive Officers

3

Risk and Impact
Management

4

Future Plan
Special Feature
Appendix

Metrics and Targets

4
Tokio Marine Holdings’ Organizational Structure for Promoting Sustainability

From fiscal 2022, we have incorporated indicators concerning our sustainability strategy, including

3

4

Board of Directors

response to nature-related issues, into the performance-linked compensation for Directors and Executive
Officers. We use the progress toward our vision as an indicator, and after the first assessment at the4

Four times annually❸ Stakeholder Engagement Policies
Recognizing that protecting the environment and creating environmental value are important

CEO

Management Meeting

Sustainability Committee, deliberation and final decision is made at the Compensation Committee.

Sustainability Committee

CSUO(comprised of the CEO and chief officers)(Note 1)

responsibilities for future generations, Tokio Marine Group has formulated the Basic Policy on
Environment, which demonstrates our commitment to realizing a safe, secure and sustainable society

Secretarial Office(Note 2)through every aspect of our corporate activities. Accordingly, based on dialogue, cooperation andWorking Groups

collaboration with various stakeholders, we are working to take climate action, conserve biodiversity,
sustainably improve the environment, prevent, and reduce pollution. We have also formulated the Basic
Policy on Human Rights to promote respect for human rights throughout our business activities, including(Note 3)

Products andservices

Operations

our entire value chain, as respect for human rights of all people is the foundation for implementing our

Task Forces

SocialCommunications
contributions

Businessstrategies

TCFD

TNFD

Diversity
Council

Departments

Corporate Philosophy.
In addition to our Basic Policy on Environment and Basic Policy on Human Rights, we have formulated
the Policy to Address Environmental and Social Risks to identify risks that have a negative impact on theenvironment and society. This policy also stipulates that we undertake transactions with external partners
based on factors such as their consideration of the environment and society.
These policies are presented on our corporate website and in our Sustainability Report and we also
distribute a summary of key points of our approach to Group employees as an effort to ingrain thesepolicies throughout the Group.

Group companies in thedomestic non-life
insurance businessGroup companies
in the domestic
life insurance businessGroup companies in thedomestic financial andother businesses

Group companies
in the international
insurance business(Note 1) Secretarial Office (Sustainability Division, Corporate Planning Department):
Operates the committee (as well as the working groups and task forces) and promotes the overall sustainability strategies.
(Note 2) Working Groups:
Formulate and execute annual plans for respective issues, with the participation of relevant departments of Tokio Marine Holdings andmembers of Group companies.
Formulate plans and coordinate actions regarding measures to address material issues.
(Note 3) Task forces:F orm project teams to handle tasks that require intensive response over a short term.

TCFD Report 2024

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Strategies

CEO Message
Nature-related Financial Disclosures
based on Recommendations of the TNFD

1

Governance

2

2

3

3

4

3

Strategies

Risk and Impact
Management

4

Future Plan
Special Feature
Appendix

Metrics and Targets

4

Strategies❶ Approach to Natural Capital and Biodiversity

Tokio Marine Group undertakes business activities globally, mainly in the insurance industry. These
activities can be divided into three major categories, namely insurance underwriting, investment and4financing and business operations (including the value chain), and all have direct or indirect dependencies*1 Listed companies with 1,000 or more employees*2 See “Reference: Method for Analyzing Dependencies and Impacts on Nature in Our Insurance Underwriting and Investment and Financing
Portfolios and Related Terminology” on page 14.
*3 Consumer Discretionary: Automobile Manufacturers, Auto Parts and Equipment, Household Appliances, etc.
*4 Industrials: Trading Companies and Distributors, Industrial Machinery, Construction Machinery and Heavy Trucks, Air Freight and Logistics,
Aerospace and Defense, etc.

and impacts on nature. Accordingly, we are analyzing our dependencies and impacts on nature in each of

Identifying Key Sectors

the three categories.

Dependencies on nature❷ Recognition of Nature-Related Dependencies and Impacts

High《A. Insurance Underwriting and Investment and Financing》
Identifying Nature-Related Key Sectors in Insurance Underwriting and Investment and Financing

nature-related risks and opportunities.
In fiscal 2023, we analyzed insurance underwriting (insurance policies with companies*1) and investment
and financing (domestic listed equities and domestic bonds) portfolios of Tokio Marine & Nichido,

and managing nature-related issues recommended by the TNFD, and was conducted using the twoaxes of “transaction volume in insurance underwriting and investment and financing portfolios” and“dependencies/impacts” as defined in the ENCORE analysis*2 tool. Consequently, we identified “Consumer
Discretionary*3” and “Industrials*4” as our priority sectors, as shown in the charts on the right.

Real EstateConsumer Discretionary

Utilities

Industrials

Consumer Discretionary

EnergyIndustrials

Utilities

EnergyHealth Care

Consumer Staples

Information Technology

Information Technology
Telecommunication Services Telecommunication Services

which is responsible for most of the corporate transactions in the Group. The analysis was based on the
LEAP (Locate, Evaluate, Assess and Prepare) approach, which is an integrated approach for assessing

Materials
Real Estate

Impactalmost all sectors. We thus need to identify priority sectors in our portfolios to appropriately respond toHigh

Materials

Consumer Staples

Dependencies

Tokio Marine Group underwrites insurance and provides investment and financing for companies in

Impacts on nature

Financials

Health Care
Telecommunication Services

Telecommunication Services

Financials

Low

High

Low

Transaction volume=Insurance underwriting

High

Transaction volume=Investment and financing*The median line on the horizontal axis is based on 10% of the total transaction volume

TCFD Report 2024

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CEO Message
Nature-related Financial Disclosures
based on Recommendations of the TNFD

1

2

Governance

Strategies

3

2

3

Risk and Impact
Management

4

Metrics and Targets

Future Plan
Special Feature
Appendix4

Dependencies and Impacts in Nature-Related Key Sectors
We analyzed our nature-related dependencies and impacts in the identified key sectors for our insurance

4 and impacts areunderwriting and investment and financing 3
portfolios and found that our dependencies
high on the following ecosystem services and impact drivers of natural capital, respectively.

In the Industrials category, we have high dependencies on the ecosystem services of flood and storm
protection and climate regulation, while we cause high impacts on natural capital through GHG emissions,soil pollutants, water pollutants, non-GHG air pollution and light and noise pollution.

4

In the Consumer Discretionary category, our dependencies are high on the ecosystem services of flood

We will perform a more in-depth analysis of our dependencies and impacts on nature, mainly in the key

and storm protection, groundwater, surface water, water flow regulation and mediation of sensory

sectors we have identified. We will apply the knowledge thus gained to engagements with Tokio Marine &impacts. Meanwhile, we have high impacts on natural capital through greenhouse gas (GHG) emissions,

Nichido’s insurance customers and investment and financing recipients to contribute to the achievement

soil pollutants, water pollutants, water use, solid waste, non-GHG air pollution and light and noiseof their "nature positive" status.

pollution.
■Dependencies on nature
Ecosystem Services

Flood & Storm
Regulation

Ground Water

GHG Emissions

Soil Pollutants Water Pollutants

Surface Water

Water
Mediation of
FlowRegulation Sensory Impacts

ClimateRegulation

Water Quality

Dilution by
Atmosphere &Ecosystems

Mass
Stabilization &Erosion Control

Non-GHG Air
Pollutants

Light and Noise
Terrestrial
Pollution
Ecosystem Use

MarineEcosystem Use

Filtration

Ventilation

Consumer Discretionary
Industrials■Impacts on nature
Impact Drivers

Water Use

Solid Waste

Low

High

Consumer Discretionary
Industrials*Ecosystem services & impact drivers without “dependence” and “impact” are not shown.

TCFD Report 2024

13

CEO Message
Nature-related Financial Disclosures
based on Recommendations of the TNFD

1

Governance

2

2

3

Strategies

3

Risk and Impact
Management

4

Future Plan
Special Feature
Appendix

Metrics and Targets

4

Reference: Method for Analyzing Dependencies and Impacts on Nature in Our Insurance Underwriting and Investment and Financing Portfolios and Related Terminology

3

4

We use the ENCORE (Exploring Natural Capital Opportunities, Risks and Exposure) tool recommended
by the TNFD for analyzing dependencies and impacts on nature in our insurance underwriting andinvestment and financing portfolios. The tool evaluates to what extent production processes in 11 sectors

4(and 139 sub-industries) depend on natural capital through ecosystem services and the degree of impact

EnergyMaterials

Industrials

Consumer
Discretionary

Consumer
Staples

Financials

Information
Technology

Telecommunication Services

Utilities

Real Estate

Sectors in the
ENCORE tool

they cause on natural capital through impact drivers. The charts on this page show the 11 sectors specifiedHealth Carein the ENCORE tool and provide descriptions of ecosystem services and impact drivers.
Ecosystem Services
Animal-based energy

Energy of cattle, horses, donkeys, used for draught, haulage, and riding

Impact Drivers
Noise and light pollution

Examples include noise levels and duration, light intensity and duration at affected locations

Freshwater ecosystem use

Examples include area of wetlands, ponds, lakes, streams, rivers, peatlands necessary to provide ecosystemservices such as water purification and fish breeding; areas of infrastructure required to utilize rivers andlakes such as bridges, dams, and sea walls

Bio-remediation

Natural process by which microorganisms and plants degrade or reduce pollutants

Buffering and attenuation of mass flows

Buffering and attenuation of mass flows that allow for the transport and storage of sediments by rivers, lakes, and seas

Disease control

Regulation of epidemics in animals, plants, and humans by ecosystems

Terrestrial ecosystem use

Examples include area of agricultural land, area of plantation by type, area of open-pit mines by type

Fibers and other materials

Materials derived from plants and animals used directly or processed for timber and fibers

Marine ecosystem use

Examples include area of aquaculture sites by type, areas of seabed mining sites by type

Filtration

Filtration, sequestration, storage, and accumulation of pollutants by animals, plants, and algae

Flood and storm protection

Protection from floods and storms by vegetation

GHG emissions

Examples include carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), sulfur hexafluoride (SF6),hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), etc.

Genetic materials

DNA of the entire biota, including plants, animals, and algae

Non-GHG air pollution

Climate regulation

Long-term storage of carbon dioxide in soils and oceans, and regulation of temperature, humidity, and windspeed by vegetation

Examples include particulate matter (PM2.5) and course particulate matter (PM10), Volatile Organic Compounds(VOCs), nitrogen oxides (NO and NO2, commonly referred to as NOx), Sulfur Dioxide (SO2), Carbon Monoxide(CO), etc.

Groundwater

Water stored underground in aquifers made of permeable rock, soil, and sand

Other resource use

Examples include volume of mineral extracted, volume of wild-caught fish by species, number of wild-caught
mammals by species

Mass stabilization and erosion control

Stabilization of coastlines and dunes, prevention of erosion, avalanches, and landslides by vegetation

Soil pollutants

Examples include volume of waste released into the soil that remains for a certain period of time

Maintain nursery habitat

Maintenance of habitats that significantly contribute to the reproduction of specific species

Pest control

Pest control and invasive alien species management through direct introduction of predators and natural biocides

Solid Waste

Examples include volume of waste by category (non-hazardous, hazardous, radioactive), by constituent material(lead, plastic), or by disposal method (landfill, incineration, recycling, specialized disposal)

Pollination

Pollination provided mainly by animals, water, and wind

Soil quality

Soil quality brought about by weathering processes and decomposition/consolidation processes

Water pollutants

Examples include volume of nutrients (e.g., nitrates and phosphates) and other substances (e.g., heavy metals
and chemicals) released into bodies of water

Surface water

Water supplied through freshwater resources via precipitation and natural water flow from water sources

Water use

Examples include volume of groundwater and surface water utilized

Water flow regulation

System that enables the water cycle through the Earth's atmosphere, land, and oceans

Mediation of sensory impacts

Mitigation of the impacts on human health and the environment caused by noise and light pollution throughvegetation

Ventilation

Ventilation by nature or planting essential for a healthy indoor air environment

Water quality

Water quality maintained by the preservation of the chemical state and the provision of living conditions fororganisms

Dilution

Dilution of gas, liquid, and solid waste of human origin by water and air

TCFD Report 2024

14

CEO Message
Nature-related Financial Disclosures
based on Recommendations of the TNFD

1

Governance2

Strategies

3

2

3

Risk and Impact
Management

4

Metrics and Targets

Future Plan
Special Feature
Appendix

4

Examples of Risks and Opportunities in Key Sectors

customers and society together with insurance agents, our major business partners in the value chain.

The chart below shows the nature-related risks and opportunities we anticipate for the key sectors

Most of our business offices (including the value chain) are general business offices. Their dependencies

4 in-depth analysis
identified by the analysis using the ENCORE 3
tool. Going ahead, we will perform a more

and impacts on nature are not necessarily high compared to factories and other facilities, but as with any

based on these risks and opportunities and use the results in our efforts concerning insurance products

general office, they use electricity and other energy, paper and water and discharge waste. As such, Tokioand services as well as investment and financing.

Marine Group has set a target of reducing its GHG emissions by 60% in fiscal 2030 from the fiscal 2015

4

Examples of Risks and Opportunities in the Consumer Discretionary/Industrials Sector

Transition risks

Physical
risks

Risks

level. At the same time, we have been working to reduce its environmental impact, including the use of
paper and water and waste discharge.

Opportunities

Analysis and Assessment of our Business Operations• Leakage of hazardous substances due to natural
disasters or equipment failure (soil contamination,
groundwater contamination)• Disruption of business activities due to the increase intyphoons, floods, and droughts• Development and implementation of technologies
aimed at preventing soil and water contamination• Review and diversification of supply chains• Increased risk of regulated substances being mixed into
products or violations of labeling regulations• Enhancement of product value and increase in profits
through the use of environmental certifications• Increase in research and development costs for thedevelopment of environmentally friendly technologies• Enhancement of competitiveness throughtechnological development aimed at improving
recyclability• Cost reduction through improved resource efficiency

nature conservation areas and wildlife protection areas) and key biodiversity areas (KBA), we conducted• Customer attrition, reputation damage, and divestment
from investors and financial institutions when seen as
having a passive approach• Enhancement of products, corporate value, andreputation through sustainable procurement andreduction of environmental impact• Expansion of sustainable finance for technologicaldevelopment aimed at achieving a circular economy

they are located within protected areas or KBAs.

As Tokio Marine Group conducts business activities in various countries and regions, our Group business
operations and bases of business partners in our value chain could possibly cause negative impacts
on natural capital and biodiversity. In fiscal 2023, in order to understand the relationships between ourbusiness operations including business partners' and biodiversity protected areas (such as natural parks,
analysis and assessment on business operations of our consolidated subsidiaries in Japan, including Tokio
Marine & Nichido, and business operations of the company’s certain insurance agents* and checked if

As a result, among the 1,154 business offices analyzed (489 business offices of Group companies in Japanand 665 business offices of Tokio Marine & Nichido’s certain insurance agents), 57 business offices are《B. Business Operations (Including the Value Chain)》located in protected areas, while 29 are in KBAs. Since general office buildings serve as our sales offices,

Recognition of Environmental Impact from our Business Operations (Including the Value Chain)

we did not detect any notably negative impacts on nature among them. Nonetheless, for these particular

and Reduction Measuresbusiness offices, we are making efforts to avoid any additional impact on natural capital and biodiversity

Tokio Marine Group is an insurance group operating globally. We do not purchase raw materials or carrythan the existing state. Our plan under consideration includes conducting surveys on the surroundingout manufacturing activities at factories because insurance is an intangible product. We do, however,environment and educating and raising awareness of Group employees.

have many business offices both in Japan and overseas. We provide insurance products and services to* Excellent agents of Tokio Marine & Nichido, designated as “TOP QUALITY” agents, and Tokio Marine & Nichido Partners, wholly owned
insurance agents of Tokio Marine & Nichido

TCFD Report 2024

15

2

Governance3

2
The number of business offices located in protected areas and key biodiversity areas

The number of sites analyzed

Natural parks

Protected areas*1

4

Nature conservation Wildlife protection
areas
areas

Risk and Impact
Management

4

Future Plan
Special Feature
Appendix

Metrics and Targets

4

Assessment result of our business operations in Japan (including the value chain)

3

3

Risks•Opportunities

Key Biodiversity
Areas(KBA) *2

Group companies in Japan

489

4
1

0

25

9

TMNF’s insurance agents

665

2

0

29

20

Total

1,154

3

0

54

29

*1 A protected area is a natural park or conservation area designated based on a basic land use plan, or a wildlife protection area designatedby the Minister of the Environment or a prefectural governor.
*2 KBA is an important area that is key to biodiversity conservation, and includes areas that are not included in existing protected areas. An
area that has been selected as an area where endangered species on the Red List live, or an area that satisfies one or more of the fivecriteria of inhabiting only a geographically limited range.
[Date source]• P rotected areas: Processed and used “National Land Numerical Information (Protection and Conservation Data)” (Ministry of Land,
Infrastructure, Transport and Tourism) (https://nlftp.mlit.go.jp/ksj/)• KBA: Using Conservation International Japan's KBA survey results (https://kba.conservation.or.jp/)

Physical risks

1

Nature-related Financial Disclosures
based on Recommendations of the TNFD

Strategies• Growing frequency and severity of typhoons,floods, and bushfires due to climate change.
• Occurrence and expansion of damage due to the
reduction in soil water retention capacity andcoastal erosion.

Chronic•O ccurrence and expansion of damage due to therise in average temperature, changes in weather
patterns such as droughts and heatwaves, and sea
level rise.

Technology

Markets❸ Nature-Related Risks and Opportunities and Response Strategies《A. Risks, Opportunities and Strategies》
In formulating a strategy, it is essential to recognize risks that form the basis of the strategy. There are

Reputation

two types of nature-related risks. One is physical risks, which result from the degradation of nature andwhich are risks to an organization stemming from a misalignment of economic actors with actions aimed
at protecting, restoring or reducing negative impacts on nature.
Nature-related opportunities are generated by creating positive impacts on nature or mitigating negative
impacts on nature. The chart on the right shows examples of events for each risk and opportunity basedon the TNFD recommendations and examples of risks and opportunities to the Group’s business activities.

Opportunities

consequential loss of ecosystem services that economic activity depends upon. Another is transition risks,

Examples of events

Acute

Policies andregulations

Transition risks

CEO Message• Strengthening of nature-related regulations andstandards and increase in nature-related
litigations.

• Decrease in insurance profits (impact on claims
payments, etc.)• Impact on business continuity caused by disasters
to sales operations and other facilities.

Time
frame
Short
term

Mediumto longterm• Decrease in corporate value of investee companies
and the value of assets held due to increased costs Medium
for policy and regulatory compliance andto longdeterioration of business performance.
term• Impact on liability insurance payments.

•P rogress in technological innovation toward thetransition to a decarbonized society in harmony
with nature and improvement in resilience.

• Decrease in insurance profits due to inadequate
Mediummeasures to the transition to a decarbonized
to longsociety inharmony with nature and improving
term
resilience among customers.
• Decrease in corporate value of investee companies• Changes in demand and supply of goods andand the value of assets held due to inadequate
services, and transition to a decarbonized society
responses to the transition to a decarbonized society
in harmony with nature.
Shortin harmony with nature and to improving resilience.
• Deterioration of business performance andterm• Decline in revenue due to the inability to capturechanges in business models for customers,
investees, and business partners due to shortages technological innovation, technologicaldevelopment, and customer needs
or depletion of raw materials and price surges.
• Changing customer and societal awareness of•R eputational damage due to our initiatives being
initiatives to transition to a decarbonized society
deemed insufficient or inappropriate
in harmony with nature and to improve resilience.

• Recovery of business performance and changes
in business models for customers, investees, andbusiness partners due to shortages or depletion
Resourceof raw materials and price surges.
efficiency,
energy sources, • Changing product and service demand andproducts andsocietal awareness towards the transition to aservices,
decarbonized/environmentally symbiotic society,markets andand towards improving resilience.

resilience

Examples of risks
to the Group’s business activities

Short
term

• Increase in demand for nature-related goods andservices.
• Increase in insurance profit opportunities andinvestment and financing opportunities due totransition, rise in insurance demands to improve
Short
resilience, and funding requirements accompanying term
the transition.
• Improvement in customer evaluations from ourinitiatives to transition to a decarbonized society inharmony with nature and improvement of resilience.

Note: Short term: less than 3 years, Medium term: 3–10 years, Long term: 10 years or more
* Please refer to our TCFD Report for climate-specific risks and opportunities.

TCFD Report 2024

16

CEO Message
Nature-related Financial Disclosures
based on Recommendations of the TNFD

1

Governance2

2
3

A-1. Initiatives as an Insurance Company (Insurance Products and Services)

Risk and Impact
Management

4

Metrics and Targets

Future Plan
Special Feature
Appendix

4
recommendations and LEAP approach, for the clarification of the relationships between business activities

Tokio Marine Group supports customers’ efforts to realize a decarbonized society and a society in harmony

3 products and services.
with nature through the provision of insurance

3

Strategies

4and natural capital/biodiversity; evaluation of business activities’ dependencies and impacts on nature;
nature-related risks and opportunities; and development of draft disclosures.
E xamples of insurance products and services provided in relation to initiatives for realizing a society in

As for a decarbonized society, we provide insurance to assist renewable energy operators and insurance

4

harmony with nature

covering flood disaster risks. We also provide risk advisory services to clean energy developers. In
addition, through the GX Advisory Task Force jointly formed with MUFG Bank, Ltd., we assist companies in

Moreover, Tokio Marine & Nichido has been striving for the transition to a circular economy. The concept

formulating and implementing carbon-neutral business strategies.

regards products and raw materials that are otherwise discarded as new resources, which are reused
without generating waste. As a global non-life insurance company, it exercises its strength of being able to

Toward a society in harmony with nature, we are developing and providing services that will help

collect various accident-related information and works together with partner companies to create systems

resolve customers’ nature-related issues. Tokio Marine & Nichido offers several products, such as soil

designed for a circular economy. The following sections highlight the company’s specific efforts in thisdecontamination costs insurance, to compensate for the costs of cleaning up soil pollution exceedingarea.

the Ministry of the Environment’s standards. Another example is aquaculture insurance for fish farming
being promoted by the Japanese government to counter a decline in marine resources, such as salmon,

Reducing Food Loss and Waste (FLW)

tuna and mackerel, and ensure their stable supplies. In addition, Tokio Marine dR conducts soil pollution

Tokio Marine & Nichido has formed the Osaka Food Loss and Waste Reduction Consortium jointly withrisk surveys, and when pollution is confirmed in a soil environment survey, provides a total, related

Loss Zero Co., Ltd. and Maguchi Group Co., Ltd. to collect data related to FLW and develop insurance

consulting service, from creating a work plan if decontamination is needed to negotiating with the local

policies to compensate for the costs of food recycling. As another example of proactive efforts toward

governments, communicating with neighborhood residents and executing decontamination work.

the realization of a circular economy, Tokio Marine Asia and TM Claims Service Asia offer cargo insurance
that provides compensation for food products that are still edible but have lost commercial value due toWith regard to an anticipated rise in needs among companies to receive support in responding to thedamage to outer packaging in transit, provided that they will be donated.

TNFD recommendations, Tokio Marine & Nichido is working to offer specific corporate support services
by utilizing an initial TNFD recommendations response support tool available through the task force

Recycling Clothing and Plastic Drink Bottles

established jointly with MUFG Bank, Ltd.

With the aim of promoting the transition to a circular economy through insurance, Tokio Marine & Nichido
and JEPLAN Inc. will develop and promote insurance products that compensate for the logistics costs

Tokio Marine dR has also started providing a service to support nature-positive business management.

of collecting these items to promote the recycling of clothing and plastic bottles that were previously

In this service, members with nature-related business backgrounds offer support, based on the TNFD

disposed of.
TCFD Report 2024

17

CEO Message
Nature-related Financial Disclosures
based on Recommendations of the TNFD

1

Governance22Strategies

3

3

Risk and Impact
Management

4

Future Plan
Special Feature
Appendix

Metrics and Targets

4

Promoting Recovery and Reuse of Automotive Parts

Sustainability-themed investment and financing include investment in green bonds, sustainability bonds

Tokio Marine & Nichido collects a number of end-of-life vehicles as it pays insurance claims for total loss

and transition bonds. Additionally, Tokio Marine & Nichido executed its first green loan and invested in

4
3 launched collaborative efforts to establish
damage in auto accidents. The company has
a scheme to

Japan’s first blue bonds in fiscal 2022. The use of funds obtained through these blue bonds is limited tocollect acrylic resin from vehicle taillights and visors for recycling and reuse through the resale of end-of-

the prevention of marine pollution and businesses related to sustainable fishery resources. In February

life vehicles it has collected or through a network of appropriate auto dismantlers based on the Act on2024, the company also invested in the GX Economy Transition Bonds (climate transition bonds), issued

Recycling End-of-Life Automobiles.

for the first time by the Japanese government, as an effort to make impacts in a new field.

4

Tokio Marine Group will endeavor to realize a decarbonized society and a society in harmony with nature

In fiscal 2022, Tokio Marine & Nichido established a team to carry out impact investment that generates

by contributing to the transition to a circular economy through the development and provision of new

both social and economic value and has made investment commitments to renewable energy andtypes of insurance products and services designed to promote the recycling of various materials weother funds conducive to counter climate change. Following the field of climate action, the company

collect as a non-life insurance company.

continued its endeavor in fiscal 2023 to make impacts in new fields that will help conserve natural capital.
Accordingly, it made investment commitments in a forestry fund and agriculture strategic investment

A-2. Initiatives as an Institutional Investor (Investment and Financing)fund as well as a real estate climate impact fund that focuses on climate action.

Recognizing that loss of natural capital and climate change are issues that are closely linked, Tokio
Marine Group engages in ESG investment and financing, which gives appropriate consideration to the● Investment in a Forestry Fundenvironment, social and governance (ESG) factors encompassing these two issues while supporting the

In fiscal 2023, we signed through Tokio Marine & Nichido anconservation of natural capital and transition to a decarbonized society.

agreement to invest in the Manulife Forest Climate Fund, whichinvests globally, including in the United States and Australia.

Specific efforts include constructive and purposeful dialogue with investment and financing recipients,
which encompasses ESG issues; ESG integration where both financial and non-financial data are used inThis fund manages forests mainly to acquire carbon credits thatthe investment decision-making process; and addressing specific sectors based on climate change as well

are receiving growing expectations for their role in reducing GHG

as environmental and social risks. We have also been promoting efforts to become nature positive in 2030

emissions. It plans to acquire international certification to promote sustainable forest management, suchand carbon neutral in 2050 in our investment and financing portfolios.

as the Sustainable Forest Initiative (SFI) and Forest Stewardship Council (FSC) certification, for the forests it
manages. Through the investment, Tokio Marine & Nichido financially aids forest management to enable

Additionally, Group insurance companies in Japan have been taking the lead in generating sustainability

longer intervals of logging and improved forest management, including tree planting, and support

outcomes for resolving environmental and social issues through sustainability- themed investment andconservation of natural capital and achievement of carbon neutrality.

financing as well as impact investment.
TCFD Report 2024

18

CEO Message
Nature-related Financial Disclosures
based on Recommendations of the TNFD

1

Governance22Strategies

3

3

Risk and Impact
Management

4

Metrics and Targets

Future Plan
Special Feature
Appendix

4● Investment in an Agriculture Strategic Investment Fund

more than 10 companies, mostly companies in which it has made equity investments, in the public

In fiscal 2023, we also signed through Tokio Marine & Nichido an agreement to invest in the Macquarie

utilities, manufacturing, materials and transportation sectors about their efforts toward achieving "nature

4agriculture-related
Agriculture Fund Crop Australia 2, a fund3to invest in Australian farmland andbusinesses.

positive". The topic of nature-positive has become recognized as an important issue very recently, causing
a varying degree of progress in their efforts. Dialogue is thus held using a phased approach to verify and4This fund mainly invests in companies that own and operate farmland in Australia and promotes
environmentally friendly operations, such as the use of renewable energy, the reduced use of pesticides
and fertilizers by introducing the latest technology and afforestation in abandoned farmland. Throughthe investment, Tokio Marine & Nichido provides financial support to sustainable agricultural operations
for the ultimate goal of reducing GHG emissions and conserving biodiversity while also supporting the
agriculture sector to address climate change and nature-related issues for achieving carbon neutrality.
Through these two initiatives, Tokio Marine Group will contribute to becoming nature positive and carbon
neutral.
A-3. Initiatives as an Asset Manager

encourage actions defined in the following Engagement Items.

Nature-related Engagement Items (by approach stage)

1. Confirmation of the recognition level of TNFD and current situations of initiatives▼
2. Recognition of business dependencies from and impacts on nature recommended by TNFD▼
3. Determination of the scope and schedule of nature-related disclosures▼
4. Natural capital initiatives which conserve or improve natural conditions of “sites in harmony
with nature” (The Ministry of the Environment-certified biodiversity conservation areas
promoted by private sector initiatives, etc.)▼
5. Visualization of the company-owned natural capital value, recognition of the relationshipwith and the contribution to the business and disclosures

Established under the IFRS Foundation, the International Sustainability Standards Board (ISSB) has worked

The public utilities (electricity and gas) sector has relatively high dependencies and impacts on nature,steadily on the formulation of IFRS Sustainability Disclosure Standards and issued two standards so far,and most of the dialogue counterparts have already begun responding to TNFD disclosures, initiating thenamely IFRS S1 (General Requirements for Disclosure of Sustainability-related Financial Information) andprocess of setting up a related governance system and required organization and preparing for disclosures

IFRS S2 (Climate-related Disclosures). Following these two, the ISSB has selected a nature-related domain

in their integrated and other reports. Due to the nature of their businesses, many have advanced their(conservation of biodiversity and ecosystems) as one candidate theme for its next set of standards.

efforts regarding mountain forests they own (e.g., watershed protection forests), sea areas in proximity

We expect that the new standards will use the TNFD recommendations, the final version of which wasto their facilities and non-energy businesses incidental to their core business (such as real estate

released in September 2023, as a reference. This move will attach greater importance to the nature-related

development). Some have already received, or are applying for, government certification for their sites as

information for selecting and monitoring investment recipients.

“sites in harmony with nature.” In many cases, TMAM has made engagements with its counterparts in this
sector at the level of Engagement Item 4 or 5. Such dialogue has prompted one company to proactively

Against this background, Tokio Marine Asset Management (TMAM) holds engagement dialogue withconsider disclosing the visualized value (monetary value) of ecosystem services of natural capital it owns
TCFD Report 2024

19

CEO Message
Nature-related Financial Disclosures
based on Recommendations of the TNFD

1

Governance22Strategies

3

3

Risk and Impact
Management

4

Metrics and Targets

Future Plan
Special Feature
Appendix4by using a model issued by the Ministry of the Environment on the valuation of ecosystem services related

issue that needs to be tackled by the whole world. Because climate change and biodiversity affect eachto corporate biodiversity conservation activities.

other and are interdependent, Tokio Marine Group recognizes that a comprehensive approach to diverse

3

4

issues in the global environment is to promote both climate action and the conservation of biodiversity

In the manufacturing and materials sectors, many counterparts were still in the process of considering

simultaneously. Accordingly, we have been active in holding dialogue with international organizations,

Engagement Item 2 or 3. As such, the main objective of dialogue has been to encourage acceleration of

governments, industry, academia, NPOs and NGOs.

4

their efforts in these areas. Nonetheless, several companies have already received certification as “sites inharmony with nature” or have been considering applying for one. Of these companies, one counterpart

Tokio Marine Group has been reinforcing its activities through various initiatives related to natural capital

has already received the certification for its base and has been conducting a life cycle assessment (LCA)

and biodiversity in Japan and overseas and working to contribute to the conservation of these two asof its own biodiversity. The company has agreed on the need to clarify the positioning of nature-positivea member of the United Nations Global Compact; United Nations Environment Programme Financeinitiatives in its business strategy and monetize its natural capital.

Initiative (UNEP FI) / Principles for Sustainable Insurance (PSI); Taskforce on Nature-related Financial
Disclosures (TNFD) Forum / TNFD Consultation Group of

One counterpart in the transportation sector is leading others in terms of response to TNFD disclosures,Japan; 30 by 30 Alliance for Biodiversity by the Ministry ofallowing discussion on measures and disclosure schedules within the scopes of Engagement Items

the Environment; Ministry of the Environment Principles for

4 and 5. Specifically, dialogue has been geared toward making an estimate and disclosure of plastic

Financial Action for the 21st Century; Keidanren Committee

footprint, one of the core disclosure metrics used in the TNFD, in its entire supply chain and receiving theon Nature Conservation and as a Promotion Partner for thecertification as a “site in harmony with nature on the sea,” the registration of which is still scarce. TMAM will

Keidanren Initiative for Biodiversity Conservation.

encourage early accomplishments in subsequent engagements.
More specifically, as a member of the UNEP FI and the UN-supported Principles for Responsible Investment
TMAM has joined not only the 30 by 30 Alliance for Biodiversity led by the Ministry of the Environment but(PRI), Tokio Marine Group signed the COP15 Statement from the Private Financial Sector developed byalso the Support Certificate Model Trial Working Group, a group to design a system for certifying “sites in

the UNEP FI and PRI in December 2021 and made a commitment to contribute to the conservation ofharmony with nature,” which is expected to be legislated. Utilizing the knowledge and information gained

biodiversity through its business activities. Tokio Marine Group joined the TNFD Forum in January 2022

through participation in these rulemaking efforts, we will continue our engagement activities aimed atand, as its member, registered as an Early Adopter in January 2024. In Japan, we have been working as aachieving "nature positive" and preserving and improving companies’ natural capital value.

member of the Ministry of the Environment Principles for Financial Action for the 21st Century to generate
positive impacts and mitigate negative impacts on the environment, society and economy. In April

A-4. Initiatives as a Global Company

2022, we joined the ministry’s 30 by 30 Alliance for Biodiversity to promote our efforts concerning the

As with climate change, the conservation of natural capital and biodiversity represents an important social

conservation of biodiversity.
TCFD Report 2024

20

CEO Message
Nature-related Financial Disclosures
based on Recommendations of the TNFD

1

Governance2

Strategies

3

2

Climate Change, Natural Capital and Biodiversity Initiatives Joined by Tokio Marine Group
Category

Name of initiative

Efforts of Tokio Marine Group3

4

United Nations Global Compact
Tokio Marine Group endorses the UNGC’s Ten Principles and promotes
Human rights,
labor, the(UNGC) / Global Compact Network efforts on human rights, labor, the environment and anti-corruption.
environment andJapananti-corruption

Sustainablefinance andinsurance

Sustainable
investment

Climate change
and naturerelated disasters

United Nations Environment
Programme Finance Initiative(UNEP FI) / Principles for
Sustainable Insurance (PSI)

3

Category

Principles for Responsible
Investment (PRI)

Name of initiative

Efforts of Tokio Marine Group

CDP
Tokio Marine Holdings supports companies’ climate change-related surveys
Climate change
as a CDP Signatory.
and naturerelated disclosure Financial Stability Board (FSB) Task Tokio Marine Holdings contributes to the formulation of the TCFD
Force on Climate-related Financial recommendations.
Disclosures (TCFD)
TCFD Consortium

Tokio Marine Holdings promotes efforts for sustainable finance andTokio Marine & Nichido, Tokio Marine & Nichido Life, Nisshin Fire, E. design
Insurance, Tokio Marine Millea SAST Insurance and Tokio Marine AssetManagement promote efforts for the formation of a sustainable society as asignatory.

4

Future Plan
Special Feature
Appendix

Metrics and Targets

44insurance as a signatory.

Ministry of the Environment
Principles for Financial Action
toward a Sustainable Society(Principles for Financial Action forthe 21st Century)

Risk and Impact
Management

Taskforce on Nature-related
Tokio Marine Holdings joined the TNFD Forum in January 2022 and became
Financial Disclosures (TNFD)
registered as a TNFD Early Adopter in January 2024.
Forum
TNFD Consultation Group of Japan
Ministry of the Environment EcoFirst System

Tokio Marine & Nichido has been continuously certified as an Eco-First
company since 2008.

Tokio Marine & Nichido and Tokio Marine Asset Management promote
efforts on responsible investment.

Ministry of the Environment’s
COOL CHOICE

Tokio Marine & Nichido encourages “smart choices” to help promotedecarbonization.

Japan Sustainable Investment
Forum (JSIF)

Tokio Marine & Nichido and Tokio Marine Asset Management contribute tosurveys and research on sustainable investment.

Partnership for Carbon
Accounting Financials (PCAF)

Tokio Marine & Nichido contributes to the discussion on the measurement
and analysis of GHG emissions.

Ministry of the Environment’s “Fun Tokio Marine & Nichido proactively promotes efforts toward a low-carbon
to Share” Climate Change
society.
Campaign

The United Nations Office for
Tokio Marine & Nichido promotes efforts on disaster prevention andDisaster Risk Reduction (UNDRR) mitigation.
— Private Sector Alliance forDisaster Resilient Societies (ARISE)The Geneva Association

Tokio Marine Holdings leads surveys and research on climate change andnatural disaster risks as an executive committee member and a JointChairman of the Climate Change and Emerging Environmental Topics
Working Group.

ClimateWise

Tokio Marine Kiln and Tokio Marine HCC promote climate action according
to the seven ClimateWise Principles.

Asia-Pacific Financial Forum (APFF) Tokio Marine & Nichido leads the discussion on disaster risk financing andinsurance and dissemination of climate change-related disclosure
conducive to the promotion of sustainable financing.
Insurance Development Forum(IDF)

Tokio Marine Group participates in relevant discussions as a member of the
IDF’s Operating Committee and Steering Committee.

Environmental
value creation

Ministry of the Environment’s“Decokatsu” national movement
to create new, enriching lifestyles
leading to decarbonization

Tokio Marine & Nichido supports the activity in terms of products, services
and related efforts as a member of the Decokatsu Support Team (PublicPrivate Partnership Council).

Green Purchasing Network

Tokio Marine & Nichido promotes green purchasing.

30 by 30 Alliance for Biodiversity
by the Ministry of theEnvironment

Tokio Marine & Nichido joined the 30 by 30 Alliance in April 2022 to achieve
the “30 by 30” targets.

GX League

Tokio Marine & Nichido joined the GX League in May 2023 and conducts
activities as a leader of the GX Management Promotion Working Group.

Keidanren Committee on Nature
Conservation

Tokio Marine & Nichido participates as a Permanent Committee Company.

Keidanren Initiative for
Biodiversity Conservation

Tokio Marine & Nichido endorsed the Keidanren Initiative for Biodiversity
Conservation and became a Promotion Partner in January 2010.

Note: For details of each initiative, please refer to Tokio Marine Holdings Sustainability Report 2023 (P. 37–40) andTokio Marine Holdings TCFD Report 2023 (P. 20–21).

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Future Plan
Special Feature
Appendix4A-5. Initiatives as a Good Corporate Citizen

Even though Tokio Marine & Nichido’s Mangrove Planting Project has an aspect of climate action and

In order to accomplish our goal of protecting customers and society in times of need, Tokio Marine Group

improved disaster resilience, it can also be viewed as a corporate citizenship activity related to the

4 activities with the
3 and promotes corporate citizenshipcooperates and works with our stakeholders

preservation of natural capital and biodiversity. The project has now expanded to other Group companies.

participation of all employees around the world. Motivated employees work with sincerity and empathy,

Tokio Marine & Nichido has publicized its Mangrove-based Value Co-creation 100-Year Declaration, which

continue to find new ways to address nature-related issues and spread those mindsets and actions to theseeks to create value through natural blessings brought about by mangroves together with tree-planting

entire organization and Group. This in turn fosters a corporate culture of tackling nature-related issues as

NGOs, and we intend to carry on the project in the future as well.

4

a natural course of action, and by doing so, creates a positive cycle between solving nature-related issues
and facilitating corporate growth (enhancing corporate value) that will contribute to achieving "nature

In 2022, we launched activities to protect and restore eelgrass beds. We will promote these activities along

positive" by 2030 and realizing a society in harmony with nature in 2050.

with the Mangrove Planting Project as an effort to protect the global environment.

Corporate Citizenship Activities with the Participation of All Group Employees

Green Lessons and Disaster Prevention Lessons: Raising Environmental Awareness and Disaster

Tokio Marine Group is implementing different corporate citizenship activities around the world that

Preparedness

emphasize voluntary participation by employees and tie-ups and collaboration with NPOs, NGOs andTokio Marine Group has positioned future generations as a stakeholder and identified “Providing

other groups. Each Group company strives to support the proactive involvement of employees in ongoingeducation to children” as one of our materials issues. As part of this initiative, we visit elementary schools

corporate citizenship activities in a number of ways, such as introducing corporate citizenship activities

and special needs schools to provide Green Lessons and Disaster Prevention Lessons with employees ofin which employees can participate and setting up leave systems for volunteer activities. In fiscal 2022,

Group companies serving as lecturers.

the total corporate citizenship activity participation rate among Group employees (total number ofparticipants in corporate citizenship activities against the number of employees) was 102.4%, thereby

Under the theme of mangrove planting activities, our Green Lessons provide an opportunity for children

achieving our target of 100%.

to think about the prevention of global warming, biodiversity and ecosystem-based disaster risk reduction(Eco-DRR). As of March 31, 2024, these lessons were attended by a total of more than 60,000 children.

Planting Mangroves and Protecting and Restoring Eelgrass Beds as Corporate Citizenship Activities
As mangrove forests have an effect of preserving natural capital and biodiversity, Tokio Marine & Nichido

Likewise, our Disaster Prevention Lessons encourage children to explore the mechanisms that cause

has engaged in the Mangrove Planting Project since 1999 under the concept of “insurance for the futureearthquakes and tsunamis as well as flood and landslide disasters, how to protect themselves in disasters,of the Earth.” As of March 31, 2023, approximately 12,261 hectares of mangrove forest have been planted

what preparations should be made in advance and what it will be like to live in a temporary shelter. As ofthrough this project in nine countries in the Asia-Pacific region.

March 31, 2024, the total number of participants exceeded 95,000.

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Appendix

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Tokio Marine Group will continue to provide educational and awareness-raising opportunities for future

Policies concerning specific sectors

generations.

1.Inhumane weapons We will not undertake business transactions (insurance underwriting, investment and financing) with the
Biological weapons inhumane weapons sector, which manufactures inhumane weapons, as these pose major humanitarian
Chemical weapons concerns.
Cluster munitions
Anti-personnel
landmines

3

4

4

2.Coal-fired power
generation

Compared to other power generation, coal-fired power generation emits more GHG and also produces toxic
substances such as sulfur oxides and nitrogen oxides.
Given the high risk of contributing to environmental impacts such as climate change and air pollution, we will
not undertake new business transactions (insurance underwriting, investment and financing) for coal-fired
power plants*1, regardless of whether they are new projects or not.

3.Thermal coalmining

In light of the negative impacts on climate change, ecosystems and human rights, we will not undertake new
business transactions (insurance underwriting, investment and financing) for thermal coal mining projects*1,
regardless of whether they are new projects or not.

《B. Policies Concerning Insurance Underwriting and Investment and Financing》
As responsible insurance underwriting and investment and financing activities, Tokio Marine Group pays

4.Oil sands

attention to the risks of negatively impacting the environment and society and undertakes transactions(insurance underwriting, investments and financing) based on the customer’s consideration for thenature-related risks on natural capital and biodiversity.

We recognize that oil sands mining has the potential to emit large amounts of GHG compared toconventional oil and gas extraction. We also recognize the risks of infringing indigenous peoples’ rights andnegatively impacting the surrounding wildlife and ecosystems.
In light of the negative impacts on climate change, ecosystems and human rights, we will not undertake new
business transactions (insurance underwriting, investment and financing) for oil sands mining projects.

environment and society. In this judging process, we comprehensively evaluate not just climate changerisks but also risks to indigenous peoples’ rights and workers' occupational health and safety as well as

As with coal-fired power generation, the development of coal mines for power generation projects may resultin increased GHG emissions through combustion at thermal power plants in the future. We also recognize therisks to the workers' occupational health and safety and the impacts of hazardous waste on local biodiversity.

5. Arctic oil andgas

Oil and gas extraction projects in the Arctic Circle (all areas north of latitude 66°33, including the Arctic
National Wildlife Refuge) entail significant risks of altering the habitats and ecosystems of rare species andmarine life. We are also aware of the negative impacts on the livelihoods and cultures of indigenous peoples.
In light of the negative impacts on ecosystems and biodiversity, as well as on the indigenous peoples’ rights,
we will not undertake new business transactions (insurance underwriting, investment and financing) for oil
and gas extraction projects*2 in the Arctic Circle.

*1 Exceptions for projects with innovative technologies and approaches, such as CCS/CCUS (carbon dioxide capture and storage / carbon
dioxide capture, utilization and storage) and mixed combustion, may be granted after careful consideration, aiming to achieve the goals of
the Paris Agreement*2 Exemptions for projects with decarbonization plans that are aligned with the Paris Agreement

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Appendix

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Risk and Impact Management
Managing Climate- and Nature-Related Risks Based on Enterprise Risk Management (ERM)• Quantitative Risk Management

In conducting ERM, Tokio Marine Group comprehensively identifies and assesses climate- and nature-

For material risks, we measure risk amounts and implement stress tests from the standpoint of quantitative

related risks, using both qualitative and quantitative approaches.

risk management and perform a multifaceted review of the adequacy of capital relative to the risks held.

In the insurance business, which gains profit through risk-taking, risk assessment is the foundation

We calculate risk amounts posed by natural disasters using a risk model (for Japan, a risk model weof our business. The Group has been working for many years to increase the level of sophistication ofdeveloped in-house based on engineering theory and the latest knowledge of natural disasters, and for

its risk assessment for material risks (including those due to natural disasters) both quantitatively andoverseas, models provided by outside vendors for insurance companies) and also ensure that the recent

qualitatively. Specific initiatives are as follows.

disaster occurrences are properly reflected in these models. We independently analyze changing trends

43. Business and Other Risks, Section 2 Business Overview, Part 1 Corporate Information, Fiscal 2022 Annualof past tropical cyclones (typhoons in Japan and hurricanes in the United States) and torrential rains andFinancial Report (P. 21) (in Japanese)incorporate the up-to-date trends as necessary in order to properly assess current weather phenomena.

• Qualitative Risk Management

Furthermore, within material risks, we conduct stress tests based on scenarios in which extreme economic

We identify all forms of risks comprehensively, including emerging risks resulting from environmental

losses are expected. As for risks involving major wind and flooding disasters, for example, these scenarioschanges, and define risks that will have an extremely large impact on our financial soundness andassume typhoons and flooding on a much larger scale than Typhoon Jebi in 2018 and Typhoon Hagibis

business continuity as “material risks.” The risk of major wind and flooding disasters (including climate

in 2019 that hit the Greater Tokyo Area and caused extensive damage. We update scenarios continuously

change physical risks), which we believe could become more frequent and severe due to the effects

while taking into account stress tests released by the regulatory authorities of each country, the latestof climate change, represent one such material risk. For these defined material risks, we also formulateknowledge (including that of climate change) and the most recent cases.

control measures prior to risk emergence and response measures for after risks occur. Additionally, we
specify global warming (climate change physical risks) and inappropriate response to a decarbonized* Please refer to Tokio Marine Holdings TCFD Report 2023 for other climate-specific risk assessment efforts.

society (climate change transition risks) as emerging risks and plan to add nature-related risks to thiscategory in fiscal 2024.

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Metrics and Targets

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Metrics and Targets❶ Insurance Products and Services[Eco-Friendly Insurance Products Engaging Customers: Green Gift Project]• Results of Tokio Marine & Nichido’s Green Gift Project

GBF2,8,10,15 *Unit

FY2020

FY2021

FY2022

Number of web-based contracts

Million

11.75

12.2

12.18

Percentage of web-based contracts
Super Insurance
Auto insurance

％
％

86.8
75.9

88.2
77.4

90.1
81.0

Reduction of paper usage

Million

2,870

2,740

3,072

Area of mangrove forest planted(total since FY1999)

Million

11,618

11,935

12,261

12.18 million, representing a reduction in paper usage of approximately 3,072 tons.

Annual CO2 fixation throughmangrove planting

t-CO2

120,000

110,000

100,000* This initiative has relevance to the following targets of the 23 targets of the Kunming-Montreal Global Biodiversity Framework (GBF).
Target 2: Restore ecosystems; Target 8: Tackle climate change; Target 10: Sustainable management of agriculture, fisheries and forestry;
Target 15: Assess and disclose impacts of companies

Activities to protect and restore
eelgrass beds－－

Conducted
In Tokyo Bay

336

406

476

Tokio Marine & Nichido has been carrying out the Green Gift Project based on the concept of engaging

4

customers in eco activities. Under this project, when a customer chooses web-based insurance contracts(clauses) on its website rather than a paper-based contract in brochure form, the company donates funds
corresponding to a portion of the paper reduction costs to NPOs and NGOs involved in environmental
protection activities. Such funds are then used for mangrove planting overseas and environmental
protection activities in Japan, including activities to protect the sea and forests (protection and restorationof eelgrass beds, Collaborative Afforestation Project in Kochi Prefecture and restoration projects of thecoastal forests of Tohoku Region damaged in the Great East Japan Earthquake.
In fiscal 2022, the number of contracts taking advantage of the web policy option was approximately• Targets Related to Tokio Marine & Nichido’s Green Gift Project
Percentage of web-based contracts: 80% or higher
Total area of mangrove forest planted (from fiscal 2019 to fiscal 2023): 1,150 hectares

Annual CO2 absorption throughcollaborative afforestation in Kochi
Pref.

t-CO2

Tokio Marine & Nichido publicized its 100-Year Mangrove Plantation Declaration in 2007 and Mangrovebased Value Co-creation 100-Year Declaration in 2019 and is committed to being involved in mangrove
planting and value co-creation for 100 years. Under these declarations, the company has worked toincrease the percentage of web-based insurance contracts to about 80% or higher and plant 1,150
hectares of mangrove forest over the five years from fiscal 2019 to 2023 and has achieved these targets.

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Metrics and Targets

4❷ Investment and Financing• CO2 Emissions of Tokio Marine Group (Tokio Marine Holdings and Major Subsidiaries)[Investment and Financing Related to Climate Change, Natural Capital and Biodiversity]

3

4

GBF10,15 *

1

Unit

FY2020

FY2021

FY2022

Scope 1 (Direct: Gas, heavy oil,gasoline, etc.)Ton

13,16313,022

13,362

Scope 2 (Indirect: Electricity, chilled/
hot water, etc.)

Ton

53,97747,43541,190

Scope 3 (Other indirect emissions:Category 1, 3, 5, 6)*3

Ton

22,75423,02625,649Total

Ton

89,894

83,48380,201

Growth in funding needs for the restoration of natural capital or decarbonization will lead to an expansionof business opportunities for Tokio Marine Group as an institutional investor. Through the execution ofsustainability-themed investment and financing as well as impact investment in various fields, we will4

utilize such new business opportunities and, at the same time, contribute to the preservation of natural
capital and mitigation of climate change.
Investment examples

2
Amount of investment/financing* as of March 31, 2023

Sustainability-themed investment and financing
G reen bonds, social bonds, sustainability bonds, transition
bonds, blue bonds, green loans¥109 billion

Impact investment
Renewable energy fund, forestry fund, agriculture
strategic investment fund, real estate climate impact fund

¥13 billion

In fiscal 2022, Tokio Marine Group’s CO2 emissions were 80,201 tons, a reduction of 34% from 122,280 tons
emitted in the base year (fiscal 2015).
• Paper and Water Usage and Waste Generation of Tokio Marine Group (Tokio Marine Holdings and Major
Subsidiaries)
Unit

FY2020

FY2021

FY2022Paper usage

Ton

6,105

5,655

5,171

Water usage

kℓ

642

1,736

1,947

Waste generation

Ton

1,975

1,837

1,911

❸ Business Operations
Targets Related to Operations• Reduce CO2 emissions (Scopes 1, 2 and 3 (Categories 1, 3, 5 and 6)) by 60% in fiscal 2030 (vs fiscal 2015)• Promote 3Rs (reduce, reuse and recycle)*1 This initiative has relevance to the following targets of the 23 targets of the GBF.
Target 10: Sustainable management of agriculture, fisheries and forestry; Target 15: Assess and disclose impacts of companies*2 Sustainability-themed investment and financing show the total balance of investment and financing of Tokio Marine & Nichido, Tokio
Marine & Nichido Life and Nisshin Fire, while impact investment is a cumulative total committed by Tokio Marine & Nichido.
*3 Category 1: Purchased goods and services (paper usage); Category 3: Fuel- and energy-related activities not included in Scopes 1 and 2(Electricity, steam and chilled/hot water usage); Category 5: Waste generated in operations (Waste generation); Category 6: Business travel(by air)

Even though the figures varied significantly due to the COVID-19 pandemic from fiscal 2020 to fiscal 2022,
Tokio Marine Group always endeavors to reduce its paper and water usage and waste generation whilesetting respective targets.
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Appendix

Metrics and Targets

4• As an asset manager, we will carry out an analysis of dependencies and impacts on nature in our

3 by 2030
Contributing to Achieving "nature positive"

4

As an insurance company, institutional investor, asset manager, global insurance group and good

portfolio of assets under management and publicize the results in fiscal 2024. We will also continue ourongoing engagements with investment recipients and joint research on biodiversity. Over the medium tolong term, we intend to establish a fund related to biodiversity or natural capital.

corporate citizen, Tokio Marine Group will endeavor to contribute to achieving "nature positive" by 2030

4and create a positive cycle between solving nature-related issues and facilitating sustainable corporate• As a global insurance group, we will promote efforts through nature-related initiatives, including the

growth.

UNEP FI/PSI, TNFD Forum/TNFD Consultation Group of Japan, 30 by 30 Alliance for Biodiversity and
Keidanren Committee on Nature Conservation.

• First, based on the TNFD recommendations released in September 2023, the entire Tokio Marine Groupwill reexamine policies concerning natural capital and biodiversity and enhance our efforts to protect the• Finally, as a good corporate citizen, we will encourage Group employees and everyone concerned to

global environment and create environmental value through business activities.

participate in nature-related corporate citizenship activities and will foster a corporate culture of tackling
nature-related issues as a natural course of action.

• Next, as an insurance company, our plan for fiscal 2024 will be to consider in-depth analysis andengagement in our key sectors based on the results of the analysis we have conducted to date about

Tokio Marine Group: Roadmap for responding to nature-related issues

dependencies and impacts on nature in our insurance underwriting portfolio. A Group risk consulting
company in our group, which is assisting companies in responding to the TNFD recommendations,will further communicate to its corporate customers about the need to preserve natural capital andbiodiversity through business activities and to disclose nature-related financial information in accordance2030 targets

with the TNFD recommendations.

• Contributing to realizing a "nature positive" society• As an institutional investor (asset owner), we also plan to consider in-depth analysis and engagement in

Fiscal 2024

our key sectors in fiscal 2024 based on the results of our current analysis about dependencies and impacts• Implementing a deep analysis on material sectors• Considering an engagement

on nature in our investment and financing portfolios. Additionally, we will continue our ongoing efforts
to preserve natural capital through sustainability-themed investment and financing as well as impact
investment.

Fiscal 2023
• E valuating nature-capital-related dependencies and impacts of insurance and investment portfolios• Specifying material sectors
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Special Feature
Value Co-creation through Mangrove Planting: Insurance for the Future of the Earth《B. Launching the Green Gift Project at the 10th Anniversary of the Mangrove Planting Project》

Tokio Marine Group began planting mangroves in 1999 as a commemorative project to celebrate the

The Mangrove Planting Project was a corporate citizen activity of Tokio Marine & Nichido for 10 years

120th anniversary. Aiming to align our environmental protection activities with customers’ desire tosince it began in 1999. In 2009, the project was expanded into the customer-participating, environment-

protect the environment, in 2009, we expanded this project to the broader Green Gift Project. This has

conscious Green Gift Project, based on the concept of engaging customers in eco activities.

4

become a symbolic initiative of Tokio Marine Group and contributes to our efforts in achieving "nature
positive".

Under this project, when a customer chooses web-based insurance contracts (clauses, etc.) on its website
rather than a paper-based contract in a brochure form, the company donates to environmental NPOs and《A. Mangrove Planting Project, a Commemorative Project to Celebrate the 120th Anniversary》

NGOs funds corresponding to a portion of the expense saved due to a reduction in paper usage. Such

Tokio Marine & Nichido, the main insurance company of Tokio Marine Group, started planting mangroves

funds are then used to support mangrove-planting activities overseas and environmental protectionin 1999 as a commemorative project celebrating its 120th anniversary, with the original idea coming

activities in Japan, including activities to protect the sea and forests, such as the protection and restorationfrom employees who voiced their desire to launch a long-lasting initiative in the environmental field.

of eelgrass beds, collaborative afforestation efforts in Kochi Prefecture and the Restoration Project of the

Designating mangrove planting as “insurance for the future of the Earth,” the company continues its

Coastal Forests of Tohoku Region.

planting activities in nine Asia-Pacific countries in partnership with NGOs specializing in tree planting,national and municipal governments in the regions where mangroves are planted, local community

Customers’ selection of the web policy option leads to the conservation of paper resources. Additionally,

residents, research institutes and other organizations.

it allows the company to reduce every environmental footprint created by manufacturing paper andtransporting it to the company, mailing policies and disposing of policies after expiry. In fiscal 2022,

During the 24-year period to March 31, 2023,
the company planted a total of 12,261 hectares❶of mangrove forest through this project. This is❷ Good for the Earth 1❸ Good for the Earth 2

Conservation of
paper resources

Support domestic andinternational environmental
protection activities❹

Customers’ selection of
the web policy option

Then

Central park in New York City.

Moreoverequivalent to approximately 36 times the area of
Make the future
planet happy

A mangrove forest in the Philippines

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the number of contracts taking advantage of the web policy option was approximately 12.18 million,

Tokio Marine & Nichido remains committed to systematically promoting mangrove tree planting torepresenting a reduction in paper usage of approximately 3,072 tons.

protect the abundance of nature.

3

4Moreover, this project aligns customers’ desire to protect the environment with initiatives by NPOs and

The mangrove-planting initiative has earned extensive acclaim and Tokio Marine & Nichido was presented

NGOs. By promoting mangrove planting and other initiatives, we are creating value, such as the alleviation

with the Minister of the Environment Award for Global Warming Prevention Activities (Internationalof climate change (CO2 absorption and fixation), the protection of biodiversity, the reduction in disaster

Contribution Category) in 2013. In 2019, which marked the 20th anniversary of this project, Tokio Marine

damage and the stabilization of coastlines in addition to the growth of economies and the increase of& Nichido announced the Mangrove-based Value Co-creation 100-Year Declaration under which it will

employment in and around forested areas. In this way, we are contributing to building a safe, secure andcreate value in partnership with various stakeholders, including NGOs, government agencies in tree-

resilient society.

planting regions, local community residents, employees, agents and customers. At the same time, the4company also registered this initiative as a project of the United Nations Communities of Ocean Action for《C. Status of Mangrove Planting》

supporting the implementation of SDG 14 and reports progress to the United Nations annually.

Since 1999, Tokio Marine & Nichido has been conducting its Mangrove Planting Project primarily inSoutheast Asia. During the 24-year period to fiscal 2022, we planted a total of 12,261 hectares of new《D. Benefits of Mangrove Planting for the Environment and Local Life》

forest in nine countries: Indonesia, Thailand, the Philippines, Vietnam, Myanmar, Fiji, India, Bangladesh and“Mangrove” is a generic term for flora that thrives in brackish waters (where seawater and fresh water

Malaysia. We have consigned the work to evaluate the status of mangrove growth and CO2 absorption andmeet) along tropical and subtropical coastlines and river mouths in Asia, Africa and South America.

fixation in planted areas to the Central Research Institute of Electric Power Industry (CRIEPI) and have been

Mangroves are sometimes referred to as “forests in the sea” and are effective in mitigating global warming

receiving reports from the institute.

as they absorb and fixate large volumes of CO2, a major cause of global warming. They also serve as
natural levees to protect people’s lives and local ecosystems from tidal waves, tsunamis and other natural

The project is conducted in partnership with the NGOs Action for Mangrove Reforestation (ACTMANG),

disasters.

Organization for Industrial, Spiritual and Cultural Advancement-International (OISCA) and International
Society for Mangrove Ecosystems (ISME) and through collaboration with local governments andMangroves protected the lives of many people as well as buildings and structures when the tsunami that

communities. Under this initiative, Tokio Marine & Nichido formulated a five-year plan using the afforested

occurred in the Indian Ocean hit in December 2004 and the typhoon that wreaked havoc in the Philippinesarea as a key performance indicator and monitors progress on a semi-annual basis. In the current five-year

in November 2013 (named Yolanda in the Philippines and Haiyan in English). At present, mangroves areplan (Phase V from fiscal 2019 to fiscal 2023), the company has set the target of planting a total of 1,150

being planted in the Demak area of Indonesia and Gujarat State in India, which are susceptible to coastal

hectares of new forest and has so far planted a total of 1,303 hectares over the four years from fiscal 2019

erosion and flooding, with the main objective being to protect people’s lives and keep buildings andto fiscal 2022. Despite the impact of COVID-19, which has caused a delay in the plan in certain regions,structures intact.
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Indian Ocean tsunami following earthquake off the island of Sumatra in December 2004

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Tokio Marine & Nichido considers mangroves as “insurance for the future of the Earth” because theyprotect the planet and people’s lives and bring benefits. The company is committed to being involved in
the Mangrove Planting Project for 100 years jointly with NPOs, NGOs and local government agencies andresidents. The project has been up and running for 24 years to date and the mangrove forests continue togrow, and the company has been putting more effort into activities that protect and nurture mangrove4

forests.
Benefits of mangroves

Mangrove planting area in Ranong, Thailand, the area
behind which was protected from tsunami damage

Tale Nok near Ranong, Thailand, which did not havemangroves, was damaged by the tsunami.

Mangrove forests also serve as “cradles of life,” as the roots of mangrove trees create a rich ecosystem ofliving creatures such as small fish, shellfish, crabs and shrimps that feed off mangrove leaves and berries
while attracting monkeys and birds, which in turn feed on them. Mangrove trees also help ensure agentle tide and waves at high tide and maintain water temperature. Fish and shellfish caught in the sea
and in rivers near mangrove forests in Quảng Ninh Province in Vietnam and Ranong Province in Thailand
are the staple diet of the local people and a source of income, thus contributing to sustainable regional

Fish catches are more abundant thanks to the mangroves.
(Ranong Province, Thailand)

The young leaves of the grey mangrove are used as feed
for farm animals. (Gujarat State, India)

development. In addition, the mangroves themselves are being used in a variety of different ways. Alongwith the seeds and fruits being used to make soup and sweets, the leaves become feed for farm animals
and the trunks and branches are used as materials for the pillars and roofs of people’s homes, thereby
providing excellent support to the lives of the people.

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4《E. Economic Value and Impact on Local Communities from Mangrove Planting》• Disaster damage mitigation

Mangrove planting has generated diverse benefits, such as mitigating global warming, preserving

Mangroves protect at least 1.94 million people from storms, tidal waves, coastal erosion, saltwater

3 of local economies, communities 4and human resources.
biodiversity and contributing to the development

intrusion, water pollution and other dangers.

However, articulating the specific economic value created by this project had proved difficult. In recent
years, however, there have been advances in the methods used by specialists to assess the value of the• Climate change mitigation

blessings of nature, such as biodiversity and ecosystem services. At the same time, companies’ initiatives

Mangroves and their soil have fixed a total of roughly 1.25 million tons of CO 2, contributing to theto assess the value of projects to create social value have been attracting attention. In step with thismitigation of global warming.

4

trend, Tokio Marine & Nichido commissioned Mitsubishi Research Institute, Inc. to undertake a survey andmake assessments based on internationally recognized methods, including the Millennium Ecosystem

By ascertaining the numerical value of the outcomes of the mangrove-planting activities, we were able

Assessment and Economics of Ecosystems and Biodiversity (TEEB), which were developed throughto reaffirm our awareness of the positive social impact of this initiative. Going forward, we will utilize theinternational initiatives related to ecosystems and biodiversity. The results of provisional calculations

results of this value assessment to improve our Mangrove Planting Project and continue to undertakeshow that the total economic value created by the Mangrove Planting Project from April 1999, when thethese activities together with our stakeholders as we aim to further create value.

company started planting, to March 2019 totaled 118.5 billion yen.
• Improvement of the lives of local residents
Some 1.41 million people live in and around areas where mangroves were planted, and approximately
140,000 people rely on resources obtained from mangrove fisheries as their major source of income andemployment.
Mangrove planting also positively impacted the employment of about 300,000 people in production
activities other than mangrove fisheries. Additionally, approximately 600,000 people are employed inmangrove fishery-related jobs, including the production of fishing gear, shipbuilding and the maintenance

12,2619(cumulative total at the end of March 2023)of ships.

TCFD Report 2024

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CEO Message
Nature-related Financial Disclosures
based on Recommendations of the TNFD

1

Governance2
Reference
1999

2

Strategies

3

3

Risk and Impact
Management

4

Future Plan
Special Feature
Appendix

Metrics and Targets

4

4
3 Group’s Mangrove-planting Activities
History of Tokio Marine
Launches the Mangrove Planting Project as a commemorative project to celebrate the 120th anniversary

4(and begins planting mangroves based on five-year plans).
2007

Announces its Mangrove Planting 100-Year Declaration.

2009

Takes the opportunity of the 10th anniversary of the Mangrove Planting Project to expand it into the Green Gift Project.
Starts its Collaborative Afforestation Efforts in Kochi Prefecture: Tokio Marine & Nichido’s Forest for the Future, a commemorative project to celebrate its 130th anniversary.

2013

Wins the Minister of the Environment Award for Global Warming Prevention Activities (International Contribution Category).

2015“Tokio Marine: Protecting Natural Resources and Building Local Resilience to Natural Disasters” in the “Business Case for Responsible Corporate Adaptation: Strengthening
Private Sector and Community Resilience. A Caring for Climate Report” was published by the United Nations Global Compact, the secretariat of the United Nations Framework
Convention on Climate Change and the United Nations Environment Programme.

2016

Announces the economic value of the ecosystem services provided through the Mangrove Planting Project.

2017

The cumulative total area of planted mangrove forest exceeds 10,000 hectares.

2019

Takes the opportunity of the 140th anniversary of its founding and the 20th anniversary of the Mangrove Planting Project to announce the Mangrove-based Value Co-creation
100-Year Declaration (revised from the Mangrove Planting 100-Year Declaration announced in 2007).
Registers this initiative as a United Nations Communities of Ocean Action for supporting the implementation of SDG 14.
Publishes the economic value of the ecosystem services provided through the Mangrove Planting Project.

2020

Wins the Special Award at the 5th Sustainable Finance Awards hosted by the Research Institute for Environmental Finance.

TCFD Report 2024

34

CEO Message
Nature-related Financial Disclosures
based on Recommendations of the TNFD

1

Governance

2

2

3

3

4

Risk and Impact
Management

3

Strategies

4

Metrics and Targets

Future Plan
Special Feature
Appendix

4

Appendix❶ Glossary
Page

Term

4

Definition/Description

TNFD

TNFD stands for the Taskforce on Nature-related Financial Disclosures, an initiative aiming tobuild an international framework which enables companies and financial institutions toevaluate their dependenccis of and impacts on nature, appropriately assess risks andoppourtunities, and prepare for disclosures.

2

Natural Capital

Natural capital is the stock of forest, soil, water, air, bioresources and others created by nature.
These are regarded as one of material capitals which sustain people's everday lives andcompanies' management infrastructure.

2

Biological Diversity(Biodiversity)

Biodiversity is the rich individuality and connections of living organisms. The Convention on
Biological Diversity defines diversity at three levels; ecosystem, species and genetic diversity.

2

Nature Positive

Nature positive is to halt and reverse biodiversity loss to put nature on a path to recovery forthe benefit of people and planet.

Nature-related issues

Organitations have dependencis of and impact on nature, and these cause risks andopportunities. These four concepts are called "nature-related issues".

Kunming-Montreal Global
Biodiversity Framework (GBF)

A new post-2020 international framework with 3 goals and 23 targets, replacing the Aichi
biodiversity Targets for 2020. Its vision is a world of living in haramony with nature where “By2050, biodiversity is valued, conserved, restored and wisely used, maintaining ecosystemservices, sustaining a healthy planet and delivering benefits essential for all people.”

1

4

4

Conference of the Parties of
the United Nations
Convention of BIological
Diversity (COP15)

COP15 was convened at Montreal in 2022 and adopted the Kunming-Montreal Global
Biovidersity Framework consisting global targets to be achieved by 2030.

4The United Nations Convention on Biological Diversity(CBD)

The main objectives are (1) the conservation of biological diversity, (2) The sustainable use of
the components of biological diversity and (3) the fair and equitable sharing of the bnefits
arising out of the utilization of genetic resources. It was adopted at the Nairobi Conference for
adoption of the agreed text of the CBD on May 22, 1992 and entered into force on December
29, 1993.

4

The Government of Japan's basic plan for the conservation and sustainable use of biodiversity,
The National Biodiversity Strat- corresponding to the Kunming-Montreal Global Biodiversity Framework. Strategies to protect
and utilize biodiversity and natural capital, foundations of the Earth's sustainability and theegy of Japan 2030-2050
basis of people's security, aiming to realize "nature positive" in 2030.

4Society in harmony withnature by 2050

4

A society where biodiversity is valued, conserved, restored and wisely used, maintaining
ecosustem services, sustaining a healthy planet and deliversing benefits essential for all people.

Page

Term

Definition/Description

Dependencies

Dependencies are aspects of environmental assets and ecosystem services that a person or an
organization relies on to function. A company’s business model, for example, may be
dependent on the ecosystem services of water flow, water quality regulation and theregulation of hazards like fires and floods; provision of suitable habitat for pollinators, who inturn provide a service directly to economies; and carbon sequestration. (Ref. TNFD Glossary
Version 1.0)

4

Impacts

Changes in the state of nature (quality or quantity), which may result in changes to the capacityof nature to provide social and economic functions. Impacts can be positive or negative. They
can be the result of an organization’s or another party’s actions and can be direct, indirect or
cumulative. A single impact driver may be associated with multiple impacts. (Ref. TNFD
Glossary Version 1.0)

6

The Convention on Wetlands
Ramsar Convention

Convention on Wetlands of International Importance especially as Waterfowl Habitat, adopted
at the international conference held in Ramsar, Iran in 1971.

6

Washington Convention

Convention on International Trade in Endangered Species of Wild Fauna and Flora, adopted at
Washington D.C. in the United States in 1973.

7

TNFD Forum

TNFD (Taskforce on Nature-related Financial Disclosures) is a global initiative for building anature-related risk management and disclosure framework established in June 2021. TNFD
Forum supports discussions at TNFD as a stakeholder with consultative knowledge.

7

TNFD Early Adopter

Companies have declared that they will disclose information in accordance with therecommendations of the TNFD in 2024 (or earlier) or 2025.

12

LEAP Approarch"An integrated approach developed by the TNFD for assessing and managing nature-related
issues. LEAP stands for Locate, Evaluate, Assess, and Prepare, which are initials of the steps in
the approach.
-Locate the interface with nature in geographic locations, sectors and value chains-Evaluate dependencies and impacts on nature-Assess nature-related risks and opportunities-Prepare to respond to nature-related risks and opportunities"

13

Ecosystem services

The contributions of ecosystems to the benefits that are used in economic and other humanactivity. They are categorized as "Provisioning services", "Regulating services", "Cultural services"and "Supporting services".

4

TCFD Report 2024

35

CEO Message
Nature-related Financial Disclosures
based on Recommendations of the TNFD

1

Governance

Term

Definition/Description

3

3

3

2
Page

2

Strategies

4

Physical Risks

Transition Risks

Risks to an organization that arises from a misalignment of economic actors with actions aimed
at protecting, restoring, and/or reducing negative impacts on nature. These risks can be causedby, for example, changes in regulation and policy, legal precedent, technology, investor
sentiment and/or consumer preferences. They may also arise from activities aimed at restoring
nature are no longer align with, for example, revised policies.

15

Sustainable Finance

Sustainable Finance is a mechanism that encourages the society to transit to new industrial andsocial structures and realizes a sustainable society under the circumstances that constructing asustainable society has become a huge issue as shown in the adoption of the Sustainable
Development Goals (SDGs), the Paris Agreement and others important milestones.

15

Natural Parks

Natural parks are areas with excellent natural scenery that require the protection of excellent
natural scenery and promotion of proper use of these areas.

15

4

Metrics and Targets

Future Plan
Special Feature
Appendix

4
Page

Risks resulting from the degradation of nature (such as changes in ecosystem equilibria,
including soil quality and species composition) and consequential loss of ecosystem services
on which economic activity depends. These risks are chronic (e.g. gradual decline of species
diversity of pollinators resulting in reduced crop yields or water shortage) or acute (e.g. natural
disasters or oil spills).

Risk and Impact
Management

Term

Definition/Description

19

ISSB

Acronym for International Sustainability Standards Board

19

IFRS S1IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information

19

IFRS S2IFRS S2 Climate-related Disclosures

19

Site in harmony with nature"Site in harmony with nature'' is the government-designated area whose biodiversity isconserved through private sector initiatives and others". A certified area is registered in theinternational database as "OECM (Other Effective area-based Conservation Measures)'',excluding the area overlapping with the protected area.

20

LCA (Life Cycle Assessment)

LCA is a methodology for assessing environmental impacts associated with the life cycles of
products or services.

22

Nature Conservation Areas

Nature Conservation Area are areas of land in harmony with a good natural environment which
require natural environmental conservation. These areas include a widerness area under Article 14,
a nature conservation area under Article 22, and prefecture nature conservation area under Article
45 (1) of Nature Conservation Act.

Eco-DRR (Ecosystem-based
Diaster Risk Reduction)

Eco-DRR is an initiative for resolving multi-local community issues including disasterprevention and reduction and biodiversity conservation through conserving and restoring
ecosystems. These efforts include the conservation and restoration of wetlands for flood
mitigation, forests management for the purpose of preventing landslides, conserving
headwaters and protecting coastal disaster and river floods prevention forests.

15

Wildlife Protection Areas

Wildlife protection areas are the minister of the Environment or prefectural governordesignated areas of lands from the viewpoint of wildlife protections.

23

Arctic National Wildlife Refuge(ANWR)ANWR is a large national wildlife refuge area from North Slope to Brooks Range in northeastern
Alaska, United States, a habitat for rare wildlife.

15

Key Biodiversity Areas

Key Biodiversity areas are the most important places for species and habitats, key areas forconserving biodiversity, selected by applying the international standards.
33

Millenium Ecosystem
Assessment

The Millennium Ecosystem Assessment is a comprehensive assessment on the ecosystems
participated by 1,360 experts from 95 countries and executed from 2001 until 2005. Based on
the assessment results, consideration of the value of ecosystem services, establishment ofprotected areas, integration of decision-making among different organizations, improvementof public relations, restoration of dagraded ecosystems and others are proposed.

33

The Economics of Ecosystems
and Biodiversity (TEEB)TEEB is a global initiative focused on “making nature’s value visible”. Its principal objective is to
mainstream the value of biodiversity and ecosystem services into decision-making and actions,advocated by European Commission and Germany. It aims to achieve its objective by following
a structured approach to valuation that helps decision-makers recognize the value provided byecosystems and biodiversity, demonstrate the value in economic terms and capture the value
in decision-making.

39

Biodiversity Credits

Biodiversity credits are a mechanism to promote investments in projects that contribute toconserving biodiversity.

15

4

15

17

Circular Economy

Circular economy is an economy that creates added value through servicizing and others while
reducing resource inputs and consumptions, and effectively utilizing stocks, in addition to the
traditional 3R (Reduce, Reuse, Recycle) efforts. It aims to maximize the value of resources andproducts, minimize resource consumption, and prevent waste generation, etc.

18

GX Economy Transition bonds(climate transition bonds)

Japanese goverment bonds which are issued under the Act on Promotion of a Smooth Transition
to a Decarbonized Growth-Oriented Economic Structure. The formal name is " bonds for
Promoting a Smooth Transition to a Decarbonized Growth-Oriented Economic Structure".

19

IFRS Foundation

IFRS Foundation established International Sustainability Standards Board and is leading theformulation of globally-consistent sustainability reporting frameworks.

TCFD Report 2024

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CEO Message

1

Nature-related Financial Disclosures
based on Recommendations of the TNFD

2

Governance3

Strategies

3

2

Risk and Impact
Management

4

Metrics and Targets

Future Plan
Special Feature
Appendix4❷ Information about Dependencies and Impacts on Nature in Our Insurance Underwriting and Investment and Financing

Ecosystem
Services

Surface
water

4

3

■Nature Dependencies Heatmap
Flood andGroundwater
storm
protectionMassstabilizationand erosion
control

Climateregulation

Water flow
regulation

Water
qualityMediationof sensory
impacts

Dilution

Filtration

Bioremediation

Water use

Non-GHG air
pollutants

Terrestrial
ecosystem
use

Noise andlight
pollutionFreshwater
ecosystem
use

Marineecosystem
use

Other
resourceuse

Fibers andothermaterials

Ventilation

Genetic
materials

Soil quality

Pest control

Maintainnursery
habitats

Pollination

Animal-based Buffering andattenuationenergyof mass flows

Diseasecontrol

4

EnergyMaterials
Industrials
Consumer Discretionary
Consumer Staples
Health Care
Financials
Information Technology
Telecommunication
Services
Utilities
Real Estate■Nature Impacts Heatmap
Impact Drivers

GHG
emissions

Solid waste

Water
pollutants

Soilpollutants

Low

High

EnergyMaterials
Industrials
Consumer Discretionary
Consumer Staples
Health Care
Financials
Information Technology
Telecommunication
Services
Utilities
Real Estate

TCFD Report 2024

37

CEO Message

1

Nature-related Financial Disclosures
based on Recommendations of the TNFD

2

Governance2

Strategies

3❸ Other Initiatives of Tokio Marine Group《A. Green Gift Project (Activities to Protect the Sea): Protecting and Restoring Eelgrass Beds》

4 beds. Eelgrass
3 activities to protect and restore eelgrass
In October 2022, Tokio Marine & Nichido launched

3

Risk and Impact
Management

4

Future Plan
Special Feature
Appendix

Metrics and Targets

4《B. Green Gift Project (Activities to Protect Forests): Collaborative Afforestation Efforts in Kochi
Prefecture: Tokio Marine & Nichido’s Forest for the Future》
In May 2009, Tokio Marine & Nichido concluded a five-year partners agreement with Kochi Prefecture, Aki

is expected to generate a positive effect of absorbing and fixating CO2 from the atmosphere, as it absorbs

City and the Eastern Kochi Forestry Association to promote afforestation in Aki City under the prefecture’s

CO2 through photosynthesis and sinks to the sea floor when it dies, becoming part of the sediment andCollaborative Afforestation Project with Environmentally Advanced Corporations (the five-year agreement

retaining carbon for a long time in deep waters. Eelgrass beds also serve as sites for fish to lay eggs and for

was renewed in May 2019).

4

young fish to grow and are expected to have additional effects, such as the purification of water and theprotection of biodiversity.

The forest covered under the agreement has been named “Tokio Marine & Nichido’s Forest for the Future.”
Every year, we conduct a volunteer tour for Group employees and agents including their families to

In November 2022, about 100 members, including Group employees, agents and their families,

experience tree thinning and socially interact with local residents. By March 2023, we have held 14 suchparticipated in a volunteer activity to scatter eelgrass seeds in the Minato Mirai District in Yokohama.

tours, in which a total of some 610 members participated. Participants felt that it was a project that taught
them the importance of maintaining and protecting forests and the effort that goes into doing so, andIn fiscal 2023, we began to support organizations protecting and restoring eelgrass beds in Fukuoka

that they wanted to expand the initiative with every opportunity as their own responsibility.

(Hakata Bay) and Osaka (Osaka Bay). Approximately 70, 100 and 50 people, including Group employees,
agents and their families, participated in the Yokohama, Fukuoka and Osaka events to protect and restore
eelgrass beds, respectively.

TCFD Report 2024

38

CEO Message
Nature-related Financial Disclosures
based on Recommendations of the TNFD

1
2

Governance23Strategies

3

Risk and Impact
Management

4

Metrics and Targets

Future Plan
Special Feature
Appendix

4《C. Green Gift Project (Activities to Protect Forests): Restoration Projects of the Coastal Forests of《D. Restoration of Enhalus (Tape Seagrass) Beds》

Tohoku Region》

Since 2023, Tokio Marine Asset Management (TMAM) has engaged in activities to promote the reduction

4 Project to restore
Tokio Marine & Nichido supports activities 3of the NPOs OISCA and Watari Greenbelt

of greenhouse gases and protect biodiversity by restoring Enhalus (tape seagrass) beds in the Nosoko area

coastal forests damaged in the Great East Japan Earthquake in Natori City and Watari-cho, respectively,of Ishigaki City, Okinawa Prefecture. The project is carried out in collaboration with Eco Tour Fukumimi,in Miyagi Prefecture. In Natori City, the Organization for Industrial, Spiritual and Cultural Advancement-

which organizes nature conservation activities in the area, and Ishigaki Municipal Nosoko Elementary

International (OISCA) has been leading the Restoration Project of the Coastal Forests of Tohoku Region.

School.

4

In the project, the company has been participating in activities to restore coastal pine tree forests in thecity and to facilitate regional revitalization through the recovery of agricultural land and the creation of

To advance this initiative, in 2024, TMAM will begin joint research on the creation of biodiversity credits

job opportunities in disaster areas. Under its policy of never forgetting the event and continuing to dowith sustainacraft, Inc., which has been quantifying biodiversity using advanced estimation technologies.

whatever it can, even in small ways, the company launched an employee volunteer program in fiscal 2016.

Working together with the company, TMAM will apply environmental DNA* and other methods to

The company has organized six tours to date, and a total of approximately 60 people have participated,

estimate the baseline, which is the key to the creation of biodiversity credits, and to measure biodiversity

including Group employees, agents and their families.

indicators to quantify the effects of the activities to protect tape seagrass beds.

The NPO Watari Greenbelt Project has been engaging in an initiative to restore tide-control forests along

This will make it possible to not only reduce greenhouse gas emissions

the coastal areas and promote the recovery and new community development of Watari-cho, Watari-gun,through the restoration of tape seagrass beds but also visualize andMiyagi Prefecture. Since fiscal 2013, Tokio Marine & Nichido has been soliciting and sending employee

monetize the benefits of biodiversity conservation. These efforts arevolunteers on tours to assist the initiative. During each tour, they visit the coastal areas devastated by

expected to lead to a re-evaluation of global warming mitigation andthe tsunami, remove weeds in tree-planting areas and assist in the cultivation of saplings that will bebiodiversity conservation activities of nature-derived initiatives. They

planted along the coast. The company has to date conducted 25 such tours, with the participation ofwill also positively impact nature as mandated by the TNFD. In January

approximately 400 employees, including Group employees, agents and their families.

2024, the initiative to restore tape seagrass beds and create blue
carbon credits won the award for excellence at the 2023 Sustainable
Finance Awards hosted by the Research Institute for Environmental
Finance (RIEF).
* A method of tracking species by using biological DNA present in the environment,such as in the sea, river or soil, as a marker

TCFD Report 2024

39

CEO Message
Nature-related Financial Disclosures
based on Recommendations of the TNFD

1
2

Governance2

Strategies

3

3

Risk and Impact
Management

4

Metrics and Targets

Future Plan
Special Feature
Appendix

4«E. PHLY 80K Trees Initiative》«F. Mangrove Planting Activities in Thailand and Malaysia》

Philadelphia Insurance Companies (PHLY) continues to partner with the Arbor Day Foundation throughThe mangrove-planting activities started by Tokio Marine & Nichido in 1999 in Japan have been expanded

3 established in 2015. Throughout the4United States, record
the “80K Trees” tree planting program which wasto Group companies in Southeast Asia.

wildfires, storms and other natural disasters have destroyed millions of trees in forests in recent years.
According to the U.S. Forest Service, there has been an annual reduction of about 175,000 acres (approx.

Tokio Marine Life Insurance (Thailand) and Tokio Marine Insurance Malaysia began their own mangrove-70,820 hectares) of treed areas in cities and communities in the United States. The loss is equivalent toplanting initiatives in 2020 and 2023, respectively. Through these activities, the two companies contribute

some 36 million trees annually. PHLY is on a mission to invest in forests and ecosystems to provide greaterto protecting local natural resources and biodiversity as members of their respective communities.

4

security to communities and has been participating in two activities, namely the 80K Trees initiative andcommunity planting programs.

«G. Recycling Activities of Employees of Safety National in the United States》
At Safety National Casualty Corporation (SNCC) in the United States, employees hold an annual event

In 2022, PHLY planted trees through the 80K initiative in Montana and Florida, thereby contributing tocollecting various items for recycling. Items collected include electric appliances and holiday lighting

the restoration of areas affected by disasters and wildfires and the improvement of living habitats andproducts, which are sustainably disposed of or reused.

biodiversity. Community planting programs on Arbor Day were launched in 2021 in response to safety
precautions related to the pandemic and have been impacting areas in need of tree canopy, clean
air and improved walkability. In 2022, the planting events were held in Philadelphia (Pennsylvania),
Sacramento (California) and Chicago (Illinois), in which about 70 PHLY employees participated in planting
approximately 350 trees. Over the next 40 years, the trees planted during these events are estimated toreduce 1.36 tons of air pollutants, avoid 762,428 gallons (approx. 2,886 kiloliters) of rainwater runoff andsequester 217 metric tons of CO2 emissions in their communities. PHLY and the Arbor Day Foundation
helped the planting of approximately 500,000 trees over the seven years from 2015. This, in turn, has
restored 864 acres (approx. 350 hectares) of forests, avoided 52,000,796 gallons (approx. 196,844 kiloliters)of rainwater runoff, sequestered 369,076 metric tons of CO2 and removed 1,895 tons of air pollutants.

TCFD Report 2024

40

CEO Message
Nature-related Financial Disclosures
based on Recommendations of the TNFD

1

2

Governance

Strategies

3

2

3

Risk and Impact
Management

4

Future Plan
Special Feature
Appendix

Metrics and Targets

4❹TNFD Guidance Table
Governance3

Disclose the organisation’s governance of nature-related
dependencies, impacts, risks and opportunities.

4

Strategy

4

Risk & impact management

Metrics and targets

Disclose the effects of nature-related dependencies, impacts, risks
and opportunities on the organisation’s business model, strategy
and financial planning where such information is material.

Describe the processes used by the organisation to identify,
assess, prioritise and monitor nature-related dependencies,
impacts, risks and opportunities.

Disclose the metrics and targets used to assess and manage
material nature-related dependencies, impacts, risks andopportunities.

Disclosure
recommendations items

Disclosure
recommendations items

Disclosure
recommendations items

Corresponding section
on this report

Disclosure
recommendations items

Corresponding section
on this report

Corresponding section
on this report

Corresponding section
on this report

A.Describe the board’s
oversight of nature-related
dependencies, impacts,
risks and opportunities.

1. Governance(1) Oversight and execution
system of nature-related
issuesA. D escribe the nature-related
dependencies, impacts,
risks and opportunities theorganisation has identified
over the short, medium andlong term.

2. Strategy

A(i) Describe the organisation’s 3. Risk & impact management
processes for identifying,assessing and prioritising
nature-related
dependencies, impacts, risks
and opportunities in its
direct operations.

A. Disclose the metrics used by 4. Metrics and targets
the organisation to assess
and manage material
nature-related risks andopportunities in line with its
strategy and risk
management process.

B.Describe management’s role 1. Governancein assessing and managing (1) O
 versight and execution
nature-related
system of nature-related
dependencies, impacts, risks
issuesand opportunities.

B.Describe the effect naturerelated dependencies,
impacts, risks andopportunities have had on
the organisation’s businessmodel, value chain, strategy
and financial planning, as
well as any transition plansor analysis in place.

2. StrategyA(ii) Describe theorganisation’s processes for
identifying, assessing andprioritising nature-related
dependencies, impacts, risks
and opportunities in its
upstream and downstream
value chain(s)3. Risk & impact management

B.Disclose the metrics used by 4. Metrics and targets
the organisation to assess
and manage dependencies
and impacts on nature.

C.D escribe the organisation’s 1. Governancehuman rights policies and(3) S takeholder engagement
engagement activities, andpolicies
oversight by the board andmanagement, with respect
to Indigenous Peoples,
Local Communities, affected
and other stakeholders, inthe organisation’s
assessment of, and response
to, nature-related
dependencies, impacts, risks
and opportunities.

C. Describe the resilience ofthe organisation’s strategy
to nature-related risks andopportunities, taking into
consideration different
scenarios.

2. Strategy

B. Describe the organisation’s 3. Risk & impact management
processes for managing
nature-related
dependencies, impacts, risks
and opportunities

C. Describe the targets and4. Metrics and targets
goals used by theorganisation to manage
nature-related
dependencies, impacts, risks
and opportunities and its
performance against these.

D.D isclose the locations ofassets and/or activities in
the organisation’s direct
operations and, where
possible, upstream anddownstream value chain(s)that meet the criteria forpriority locations.

2. Strategy

C. Describe how processes for 3. Risk & impact management
identifying, assessing,prioritising and monitoring
nature-related risks areintegrated into and informthe organisation’s overallrisk management processes.

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