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Introduction

Strategies to Realize the Group’s Corporate Philosophy

Sustainability Management

ERM

Corporate GovernanceSupplementary Materials and Corporate Data

Sustainability Management

Growth strategy of the applicable Group Long-Term Vision
Strengthening of core business

Upgrading capital management

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30

31

Diversification and optimization ofbusiness portfolio
Promoting integrated
Group management

SDGs management andcreation of value

Sustainability Management

Sustainability Priority Theme and Selection Process
Special Feature

Recommendations from Sustainability Advisory Committee

34

Priority Theme (1) Promote Healthy and Abundant Lives for All People

43

Special Feature

38	Priority Theme (2) Provide Workplace Environments that
Enable All People to Participate Actively
47

48

52

Group Employee Dialogue

Strengthening IR Activities within the Group

Priority Theme (3) Help Mitigate and Adapt to Climate Change

Priority Theme (4) Invest to Help Build a Sustainable Society

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Introduction

Strategies to Realize the Group’s Corporate Philosophy

Sustainability Management

ERM

Corporate GovernanceSupplementary Materials and Corporate Data

Sustainability Management

Creating both economic value and social value
Contributing to a sustainable society through thecreation of shared value

Creation of shared value

Achieving ournon-financial KPIs

The Group’s core business is the life insurance business, andwe mainly focus on having sustainable business that provides

customers with safety and peace of mind through our products

and services. At the same time, as an institutional investor, we areclosely connected to economic development and the realizationof a sustainable society, and we have a responsibility to contrib-

Basic approachute to society through our business.

Through life insurance business, the Group’s

In 2021, T&D Insurance Group developed a Group Long-Term Vi-

core business, we will create shared value andsion towards FY2025 under the Management Vision: “Sow happi-

sow happiness in the world by addressing theness, make change with boldness.” The Group Long-Term Vision

sustainability priority themes (materiality).

identifies SDGs management and creation of value as one of thechallenges to the Group’s Growth Strategy and priority themes
and sets new non-financial KPIs to quantitatively measure thecreated social value.

The Group believes that its efforts to promote SDGs management

and solve social issues will lead the Group to achieve its goals ofcreation of shared value and sowing happiness in the world.

We, T&D Insurance Group, will take steady steps to become aPriority
theme (1)Promote healthy and abundant
lives for all people

Priority
theme (2)Provide workplace environments that enable
all people to participate actively

Priority
theme (3)Help mitigate and adapt toclimate change

Priority
theme (4)Invest to help build a sustainable society

We will contribute to solving social issues by
providing optimal, high-quality products andservices that meet the needs of our customers.

We will promote business activities that respect
the human rights of all stakeholders, including ourbusiness partners and employees.

sustainable insurance group that grows along with society.

Through our business activities, we will contribute toclimate change mitigation and adaptation, and work tocreate a net-zero society and conserve biodiversity.

As a responsible institutional investor, we will contributeto environmental, social, and corporate governance (ESG)
issues through our investment and financing activities.

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Introduction

Strategies to Realize the Group’s Corporate Philosophy

Importance to society (Economic, environmental and social impact)

Sustainability Priority Themeand Selection Process

Sustainability Management

From the various sustainability fields that relate to businessactivities, the T&D Insurance Group has identified the priorities ofsocial issues that are of high importance to society and have sig-

nificant relevance to the Group’s business, and has identified four
sustainability priority themes that we will focus on as follows.

ERM

Corporate Governance

Employment and job satisfaction[Priority theme 2]
Provide workplace environments thatenable all people to participate actively
Sustainable global environmentMore efficient resource and energy use

Sustainable global environment[Priority theme 3]
Help mitigate and adapt to climate change

A resilient and vibrant society
Strong but friendly community
development

Supplementary Materials and Corporate Data

Healthy and abundant lives[Priority theme 1]
Promote healthy and abundant lives for all
peopleA resilient and vibrant society[Priority theme 4]
Invest to help build a sustainable society

Respect for human rights
Other social human rights

A resilient and vibrant society
A resilient and vibrant society

Revitalization of partnerships,
collaboration withstakeholders

Support for basic education

Basic living infrastructure

Sustainable global environment
A resilient and vibrant society
Support for construction of industrial infrastructure

Environmental protection of land and sea

Governance and internal
control of trusted corporategroupsBuilding a fair business foundation

Relevance to the Group’s business and initiatives (importance to the Group)

Process for Selecting Priority Themes
We considered various social issues to be targeted, based on(3) Identify the shared value to be realized by the initiatives and the corresponding sustainability themes

the relationship with policies and actions defined in the T&D

insurance business, as well as how we can help develop aand the shared value of their impact. In order to create shared(5) Select sustainability priority themes

the perspectives of the areas of the issues to be addressed andcan have an impact on the creation of shared value by address-(1) Identify important social issues

what society expects of us as a Group engaged mainly in thesustainable society.

After examining the SDG goals and targets, our Group CSR

Charter, changes in the social environment, trends in technological innovation, and other sources, we identified 40(important) target-related social issues relevant to our policies,
products, services, and business model.

(2) I dentify initiatives that address the importantsocial issues

We identified the initiatives that have been implemented toincrease social value with respect to the important social issues
through our business activities and our critical business andsustainability management platforms.

We identified initiatives that address important social issues

value, we set themes that promote Group sustainability fromthe ways of addressing them.

Insurance Group CSR Charter

We set priority themes for promoting Group sustainability that
ing important social issues.

(4) Prioritize shared values and sustainability themes(6) Verify the adequacy of sustainability priority themes

ability theme based on both a) importance to society, and b)tion process of priority themes with a qualified third party,

We evaluated the importance of each shared value and sustainrelevance to the Group’s business (influence on social issues).

We then clarified the priority of the initiatives for the Group to• We engaged in dialogue and exchanged views on the selecthen confirmed the adequacy of social issues to be targeted
and the validity of our priority evaluation.

pursue.

• In addition, we received approval from the Group SDGs Com-

society and its contribution to the SDGs

Executive Management Board) and Board of Directors.

a) Importance to society: Evaluation based on its impact onb) Relevance to the Group’s business: Evaluation based on

mittee and reported to the Executive Committee (now the30

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Introduction

Strategies to Realize the Group’s Corporate Philosophy

Sustainability Management

ERM

Corporate GovernanceSupplementary Materials and Corporate Data

Recommendations from Sustainability Advisory Committee

The Sustainability Advisory Committee, which was established in FY2021, receives commentary from outside experts on the latest international trends aswell as a variety of recommendations based on their expertise. The Group reflects these recommendations in its initiatives on sustainability issues, and will
promote the SDGs management and creation of value outlined in the Group Long-Term Vision.

From left

Mr. Kenji Fuma

Neural, Inc.
CEO / Specially Appointed
Professor, Shinshu University

Masahiko Moriyama

T&D Holdings, Inc.
Representative Director andSenior Managing Executive Officer

Mr. Takejiro Sueyoshi
UNEP Finance Initiative
Special Advisor

Hirohisa Uehara

T&D Holdings, Inc.
Representative Director andPresident

Ms. Mari Yoshitaka
Mitsubishi UFJ Research andConsulting Co., Ltd.
Fellow (sustainability)

Yasuhiro Mori
T&D Holdings, Inc.
Executive Officer

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Introduction

Strategies to Realize the Group’s Corporate Philosophy

Sustainability Management

ERM

Recommendations from Sustainability Advisory Committee

Recommendations on
overall sustainability
A global policy debate is underway that views
climate change not only as a means and cost of reducing CO2 emissions, but also as a human rights
issue that affects human life, health, and living
areas. Furthermore, the younger generations are
calling for climate justice, and they are speaking
out from the perspective of creating an equal
society with an eye to human rights, race, andpoverty issues. The age where their values influence society is right before us, which will bring a
big impact on business moving forward.

Recommendation 1

Toward de-carbonization(1) The Group Long-Term Vision indicates a CO2 emissions
reduction target with a deadline of FY2025 (40% reduction
from FY2013), but there is no mention of net-zero emissions.
That the T&D Insurance Group has not yet adopted the2050 globally-championed Net Zero goal is a lag behind theglobal trend. The global trend is already changing from “lowcarbon” to “de-carbonization.” In view of the recent severityof climate change, we presume that the target date will be
moved earlier than 2050.
(2) In the financial industry, there is a trend toward a shift to a
net-zero investment and financing portfolio by 2050. Since
the T&D Insurance Group has made the effort to sign the
Principles for Responsible Investment (PRI), it should consider a proactive course of action, such as committing to net
zero CO2 emissions and interim targets for its investees andborrowers, and release them.

Response

While we had set a target to reduce CO2 emissions (Scope 1
and 2) by 40% by FY2025 compared to FY2013 in the non-financial KPIs in our Group Long-Term Vision, established in 2021,
the Committee commented on the fact that no net-zero targets
or targets for investees and borrowers had been established. In
response to this, on September 30, 2021, an additional target
was set to achieve net zero in FY2050, including own investment and loan recipients (Scope 3, Category 15). In addition, aninterim target was set on April 11, 2022 for own investees andborrowers.
Reference: T&D Insurance Group CO2 emissions reduction target
Subject

Own emissions(Scope 1 and 2)
Investees and borrowers(Scope 3, category 15)

TargetFY2025: 40% reduction(compared to FY2013)
FY2050: Net zero

FY2030: 40% reduction(compared to FY2020)*Subjects are stocks, corporate bonds, and loans ofdomestic listed companies.

FY2050: Net zero

Corporate GovernanceSupplementary Materials and Corporate Data

Recommendation 2

Sustainability Statement(1) It is necessary to discuss one’s values in the preparation ofa statement. The company should determine where in theworld the problems related to its business are and how it
can contribute to the world through its business, and thencommunicate its stance to the world. Japanese companies’
lack of issue awareness regarding why they are tacklingthese issues is a weakness. To simply list responses without
an underlying message would result in a disconnect between stance and evaluation. The company should clarify
what its purpose of existence is, and communicate products
and investment policies based on that purpose.
(2) Any sustainability initiatives to be described in the statement should be noted with an awareness of their connection to the sustainability priority themes. In addition,
because prime market listing standards require Task Forceon Climate-related Financial Disclosures (TCFD) or equivalent disclosure of climate change measures, the T&D
Insurance Group, as a prime listed company, should prepare
its statement with TCFD in mind.

Response

In response to the opinions of the committee, we started
writing a statement in September 2021. We exchanged opinions with the committee midway through this process, and thestatement was completed and disclosed on May 23, 2022.
We have established four sustainability priority themes,
which reflect the Group’s basic approach to sustainability andthe issues to be addressed in the future, and have communicated to our stakeholders the direction and specifics of theGroup’s initiatives. We report on related results and progress
via media such as our website and the Sustainability Report.
In May 2023, we updated our statement in light of changing
social attitudes and initiatives to date.

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Introduction

Strategies to Realize the Group’s Corporate Philosophy

Sustainability Management

ERM

Recommendations from Sustainability Advisory Committee
Recommendation 3

ESG investment(1) The T&D Insurance Group invests in a variety of bonds,
but it would be better to link its position as an institutional
investor with its position as an insurance company, and to
make investments that can explain what the bond means
to the T&D Insurance Group. Take, for example, the large
number of female customers that Taiyo Life has. In thiscontext, it would mean investing in gender bonds that
support women’s advancement in society and help reduce
gender disparities.
(2) When it comes to engagement, it is important to continue
doing business with companies that are committed to Net
Zero. In order for our business partners to build a net-zero
portfolio, it is important for us to have a basic attitude
toward our own net-zero portfolio. It may be a good idea toconsider showing, as an indicator, the actual amount of
ESG investments and financing from the perspective of theoverall portfolio.

Response

The Group has already been considering the effect of its
investment activities as an institutional investor on realizing
a sustainable society, and has invested with consideration toenvironment, society, and corporate governance. In responseto the committee’s recommendation, in FY2023, we will set up
focus areas for ESG investments and financing based on thebusiness characteristics of the Group and the concept of ourSustainability Statement. Aiming to make further contributions to solving social issues in focus areas, we will strengthen
our investments, financing, and engagement activities. In
particular, we will aim to expand information disclosure andimprove the contribution of our investment and financing
activities to sustainability issues, etc. by quantitatively understanding their social outcomes (positive impact).

Recommendation 4

Support to small to medium enterprises(1) Observing the actions of the Japanese government, wefeel that rapid changes are coming to Japan, and we fearthat some people may not be able to keep up with thesechanges. Communicating global trends in sustainability
to SMEs will further strengthen the relationship of trust
between the T&D Insurance Group and its customers. While
the Corporate Governance Code only covers listed companies, the mandatory disclosure on sustainability will havea knock-on effect on SMEs that make up the supply chain.
This means that SMEs also have to understand and address
global trends. One of the future material issues is that
the T&D Insurance Group, which has access to SMEs, will
support the industry.
(2) Whether or not policyholders will be able to continue toenroll insurance in the event of future financial
hardship could be viewed as a risk as an insurance company. Furthermore, in order for SMEs to survive, it is necessary to consider whether we can contribute in a different
way than insurance and investment, such as engagement
and consulting.

Response

Group company Daido Life has been engaged in various
initiatives to support SMEs in resolving their business issues,
namely: KENCO SUPPORT PROGRAM, which supports SMEs
in their Kenkokeiei® (Health and Productivity Management);
Sustainability Management Support Program to encourage
SMEs’ efforts to tackle the SDGs; starting to provide “Dodai ?”an online service for managers of SMEs to gather and work on
resolving social issues together.
In March 2023, Daido Life formulated and announced their
Sustainability Promotion Plan aiming to become a company
that contributes to a society where the wellbeing of SME workers and their families is realized. Based on this plan, we will
work with SMEs to solve social issues and realize a sustainable
society through the continuous development of SMEs.

Corporate GovernanceSupplementary Materials and Corporate Data

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Introduction

Strategies to Realize the Group’s Corporate Philosophy

Sustainability Management

ERM

Corporate GovernanceSupplementary Materials and Corporate Data

Priority Theme (1)Priority Theme (1)Promote Healthy and Abundant
Lives for All People
Main related SDG targets

For the T&D Insurance Group, whose core business is life
insurance, our most fundamental corporate social

responsibility is to contribute to the realization ofhealthy and abundant lives for all people. By providing
high-quality products and services that are optimal forcustomers’ needs, we will contribute to the sustainablegrowth of society and the resolution of social issues

through our insurance business, and create happiness inthe world.

Our Target

Customer satisfaction at the FY2020 level or above** We will strive to achieve each theme from a comprehensive perspective, not limited tothe stated targets.

The Initiatives of Taiyo Life

Providing products and services which preempt thechanges of the times
In order to enable all people to enjoy long and healthy lives inthe era of the 100-year life, Taiyo Life aims to be a company that
supports customers’ long and healthy lives through the bestproducts and services.
To ensure that customers can enjoy their elderly years withpeace of mind, we sell Himawari Dementia Prevention Insurance and Cancer and Critical Illness Prevention Insurance,
which support customers’ efforts to prevent dementia andserious illnesses.
As part of efforts to support customers’ well-being, we
provide information on services related to early detection andprevention of diseases and health promotion, such as MCI
Screening Plus, which determines the risk of mild cognitive
impairment through a blood test, AminoIndex® Risk Screening,and HPV Test Papix for cervical cancer, among others. Other
services include the Kaketsuke-Tai Service, in which our office
workers with specialized knowledge visit customers and theirfamilies to assist them with benefit claim procedures.
Taiyo Life provides greater peace of mind to its customers by
integrating its products and services.

Best Senior Service◉ Senior Visit Service	We visit senior customers once a year to confirm policy content and check that no claims
have been missed.
◉ Kaketsuke-Tai Service	At the customer’s request, our office workers
visit the customer’s home to assist with benefits claims.

Dedicated online service for customers
Taiyo Life My Page

◉ Procedures that can be completed on My Page (sample)	Users can carry out procedures without having to come to offices,such as confirmation of policy content, address change, namechange, change of death insurance recipient, and claiming benefits.

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The Initiatives of Daido Life

Initiatives to spread Kenkokeiei®
(Health and Productivity Management)
Daido Life supports the implementation of Kenkokeiei® (Healthand Productivity Management) by SMEs, aiming to contributeto the creation of a society in which SMEs and their employees
can thrive and play an active role, and to help solve the issues
faced by Japan’s aging society.
In January 2022, we launched Kaisha Minnade KENCO+, ahealth-promoting insurance that integrates the KENCO SUPPORT PROGRAM and coverage to realize disease prevention
through health management while preparing for unexpected
retirement. The product covers a wide range of risks, including
death, severe disability, physical disability and serious illness,
and also provides a discount on the following year’s main
policy premium if the policyholder takes an average of at least
8,000 steps per day every year.

Dodai ? — A web service, which enables business owners tocommunicate with each other
Dodai?, an online service for managers of SMEs to get together
and work together to solve social issues was launched in March
2022. Daido Life, which has supported SMEs through its coverage until now, has given form to its desire to shape the future
together with SMEs moving forward.
Over

40,000 people!

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Introduction

Strategies to Realize the Group’s Corporate Philosophy

Sustainability Management

ERM

Corporate GovernanceSupplementary Materials and Corporate Data

Priority Theme (1)The Initiatives of T&D Financial Life

Providing asset formation products that consider socialand environmental changes
T&D Financial Life offers asset formation products, mainly forsenior customers, to support a comfortable post-retirement
life through the preparation of post-retirement expenditures
and the need for protection of bereaved family members andother needs.
In June 2021, we launched Hybrid Asset Life. This productintegrates investment trusts and life insurance to provide a
yen-denominated, single-payment variable whole life insurance policy that supports self-directed asset formation in theera of the 100-year life. To help customers enjoy life more, wehave developed products that allow them to continue to invest
mainly in long-term diversified investments, while also providing for planned asset withdrawals, as well as preparing fordementia, and inheritance for themselves and their families.
In April 2023, Fivetenworld 3, a renewed version of Fivetenworld 2, a single-premium individual annuity that utilizes
overseas interest rates and foreign exchange, was launched.
The product is now available in two plans, the yen plan and theforeign currency plan, to meet the needs of customers.

The Initiatives of T&D Asset Management

Contributing to the promotion of a healthy society
through investment
T&D Asset Management’s active management of Japaneseequities emphasizes analysis of non-financial information in
addition to financial information. The T&D Japanese Equity
ESG Research Fund, a private investment trust that selectively
invests in companies that excel from an environmental, socialand governance perspective, has set “health, safety and security” as one of the material issues when evaluating investee
companies. It actively invests in companies that contribute tosolving social issues related to people’s health.
In addition, our analysts encourage corporate actions tosolve social issues by holding dialogues with investee companies in line with material issues, thereby contributing to building a society that realizes healthy and abundant lives.

The Initiatives of Pet & Family Insurance

For the benefit of precious families

Pet owners are becoming increasingly concerned about pet
medical care and its costs as they shift to recognizing their pets
as members of the family. To ensure that pet owners and theirpets can receive treatment with peace of mind, we offer products such as Genki Number One Smart, which compensates acertain percentage of the cost of veterinary hospital treatment
for pets suffering from illness or injury.
Providing information on pet life
In addition, “Pet News Storage” is offered on the website,which regularly communicates on various themes, presenting
information to enhance life with pets and familiar questionsin an understandable manner. The number of articles reached
335 in March 2023.

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Introduction

Strategies to Realize the Group’s Corporate Philosophy

Sustainability Management

ERM

Corporate GovernanceSupplementary Materials and Corporate Data

Priority Theme (1)Initiatives to respond to customer feedback

Initiatives to Customer satisfaction
The T&D Insurance Group has established the “T&D InsuranceGroup Basic Policy on Customer-oriented Business Operations” in order to conduct sincere, honest, fair, and appropriate
corporate activities that lead to the benefit of customers, with“customer-oriented” as the Group’s common value.
Based on this policy, each Group company strives toprovide customers with greater satisfaction by providing better
products and services based on its own business model and byimproving the quality of its operations.
In addition, based on the results of customer satisfaction surveys and our response to changes in the social environment,
we are constantly striving to provide more convenient services
and improve our operations, aiming to become a group thatcan be trusted with confidence into the future.

Customer feedback collected through daily sales activities
In order to respond to social needs that change by providing
better products and services, the three life insurance companies have established numerous points of contact withcustomers, including sales representatives, sales agents, callcenters, and the internet, to collect as much customer feedback as possible. In addition, we conduct customer satisfaction
surveys to gauge satisfaction with our products, services, andafter-sales services.

System to reflect customer feedback in management
By establishing a department dedicated to overseeing customer-oriented business operations and a committee withthe participation of external members, we have established asystem to ensure customer satisfaction at all stages from policy
making to payment, based on a customer-oriented business
operation policy and specific targets set for complaint improvement, and other matters. In addition, customer feedback is
centrally managed in a database and shared with relevant departments for use in product and service development, quality
improvement, and business improvement.

System to reﬂect customer feedback in management (The system chart is an example from Daido Life)
Customers

Customer Feedback
Council*�

Complaint, opinion, request,
appreciation feedback

Evaluation of the three life insurance companies’ customer-oriented business
operations policy (FY2022)

Taiyo Life

91.6％

(Overall satisfaction)

Daido Life

T&D Financial Life

(Overall satisfaction)(Satisfaction at
the contract
signing stage)

79.0％

76.7％

* Taiyo Life:	Four levels - “satisfied,” “mostly satisfied,” “somewhat unsatisfied,” and “unsatisfied.”
Aggregate the total of “satisfied” and “mostly satisfied.”
Daido Life:	Seven levels - “highly satisfied,” “satisfied,” “mostly satisfied,” “neutral,” “somewhat unsatisfied,”“unsatisfied,” and “highly unsatisfied.”
Aggregate the total of “highly satisfied,” “satisfied” and “mostly satisfied.”
TDF Life:	Five levels - “satisfied,” “mostly satisfied,” “average,” “somewhat unsatisfied,” and “unsatisfied.”
Aggregate the total of “satisfied” and “mostly satisfied.”

Customer consultation desks

Survey (potential feedback)BranchVarious customer surveys

CallcenterWeb
site

Consolidate andanalyze customer
feedback

Compliance Promotion Department

Promotion of business
improvement from thecustomer’s viewpoint

Operational departmentsCollected by employees

Proposal
system fornew measures,
etc.

Smile
post

Customersocialgathering

Opinions received
from experts fromthe customer’s
point of view

Compliance Committee*�

(Deliberated across divisions, such as the Sales Division, Policy Division, Internal Control Division)
Report, recommendation
Board of Directors, Executive Management Board*�: Compliance Committee
The Compliance Committee has been established to develop and establish a compliance promotion system on a company-wide basis and to further promotecustomer-oriented corporate activities as stated in the basics of the corporation. The committee continuously reviews all processes from insurance solicitation
to payment from the customer's perspective, and reports and proposes improvements to the Board of Directors and the Executive Management Board.
*�: Customer Feedback Council
The Customer Feedback Council was established to utilize the knowledge of outside experts in sound business operations from the customer's perspective. The
Council veriﬁes the appropriateness and eﬀectiveness of business operations related to the improvement of customer service and the deliberations of theCompliance Committee.

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Introduction

Strategies to Realize the Group’s Corporate Philosophy

Sustainability Management

ERM

Corporate GovernanceSupplementary Materials and Corporate Data

Priority Theme (1)Initiatives to Digital transformation (DX)In order to create value for each and every customer experience through the Group’s DX initiatives, the T&D InsuranceGroup is working to evolve the value it provides in both theinsurance and non-insurance fields by improving customer
understanding and UX.
More specifically, we are working to expand our customer
contact points and improve customer service by the promotion of hybrid sales that combines face-to-face and digitalsales, expanding the number of customers to whom we candeliver our products and services.
Furthermore, we are also using AI to strengthen our consulting capabilities, and will strive to propose products andservices that are optimal for each customer.
Also, Daido Life started providing “Dodai ?”, an online
service for managers, in March 2022. We will provide various
solutions such as promoting Kenkokeiei® (Health and Produc-

Initiatives in the insurance field

Initiatives in the non-insurance fieldPromotion of hybrid-style sales thatleverages data
Expansion of products handled byremote application

Reduce the burden of insurance enrollment through the use of medical data
Integrated provision of coverage andvarious services
Improving customer service by enhancing internet services

tivity Management) and supporting the resolution of management issues through “Dodai ?”. In addition, by expanding
various functions, we will grow into a service platform that isessential for the management of SMEs and contribute to theirsustainable development.
To achieve the further growth of the Group, we will take on thechallenge of evolving the value provided to customers throughbold transformations utilizing data and digital technologies.

Promotion of health management
through expansion of Kenkokeiei®
(Health and Productivity Management) Practice Program, KSP, etc.

Evolving value provided tocustomers throughaggressive investment
in growthHelping SMEs solve management
issues through Dodai ?

Promotion of annual sleep diagnosis
exercise

Pet & Family Insurance
Efforts to spread and establish DX and foster a culture of DX

Promotion of
information
sharing

Developing
DX talent• At the Group DX Promotion Committee, share information on DX promotion
measures within the Group, external IT services being utilized, and otherpositive initiatives, and promote the creation of synergies through standardization and joint initiatives.
• Promoting the improvement of literacy among all employees by encouraging
the acquisition of IT passports•In order to develop human resources to lead DX, promote acquisition of skills
in customer understanding, experience design, AI utilization, etc.

Utilization of IT,
technologies,etc.

•Development of next-generation sales terminals to improve proposal capabilities and work styles•C ontinue to promote zero seals, paperless operations, RPA, and the use of
low-code development tools to improve operational efficiency.

•U tilize the Ministry of Economy, Trade and Industry’s DX promotion framework, including the DX certification system, for Group DX promotion (renewalof DX certification is scheduled for FY2023)

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Introduction

Strategies to Realize the Group’s Corporate Philosophy

Sustainability Management

ERM

Corporate GovernanceSupplementary Materials and Corporate Data

Priority Theme (2)Priority Theme (2)Provide Workplace
Environments that Enable All
People to Participate Actively
Main related SDG targets

To respect the human rights of all people, respect thepersonality and diversity of our employees, we ensure ahealthy and safe working environment, and develop ourhuman resources.

Message from executive officer in charge of human resources— Promoting Try & Discover and aiming to be a group where diverse
human resources can play an active role —Yasuro Tamura, Senior Managing Executive Officer

The Group’s approach to human resources
We believe that the human resources who work with us are themost important driving force behind our business activities torealize the T&D Insurance Group’s Corporate Philosophy. The
Basic Group Policy on Human Resources has been establishedas the basic policy for human resources management in theGroup. The Group’s core business is the domestic life insurance
business, in pursuit of our market-specialized strategy. Human
resources active in a wide range of fields collaborate to create

Relevancy to the Group Long-Term Vision
In order to realize the Group Long-Term Vision, it is essential to link it with a human resources strategy that will serve as the driving
force behind the vision. We will invest extensively in human resources so that each employee can maximize his or her potential
and continue to evolve in line with the T&D Insurance Group’s management vision of “sow happiness, make change with boldness.” In addition, we are creating an environment in which diverse human resources can play an active role, thereby improving
the wellbeing of our employees. Each initiative will be measured annually for effectiveness using the Employee Engagement
Score*, leading to more effective human resource strategies and making the Group a place of which each and every employee canbe proud to be a part.
*	45 questions are set across nine
categories, including “philosophy/vision,”“attachment/trust,” “self-initiative,”“growth,” and “challenge.”	Evaluation ranges from a minimum of 1.0
to a maximum 5.0 in a five-option multiple
choice format.

Employee engagement score at the FY2020 levelor above** We will strive to achieve each theme from a comprehensive perspective, not limited tothe stated targets.

Strengthening ofcore businessGroup Long-Term Vision

Diversification andoptimization ofbusiness portfolio

Upgrading capitalmanagement

Promoting integrated
Group management

SDGs management
and creation of value

Measuring effectiveness through employee engagement scores (set as a non-financial KPI)

Human resources strategy

Our Target

new value, including the closed book business, asset management business, and pet insurance business, which havestrong affinities with the life insurance business. The Group willsecure and develop human resources with advanced expertise, knowledge, and skills in a wide range of fields, and create
opportunities for them to play an active role, thereby leading to
the sustainable growth of the Group.

Strategy 1

Developing human resources active ineach business area
Planned humanresource
development in eachGroup company

Securing specialized humanresources
Human resource development andreskilling
Developing DX talent

Strategy 2

Expanding the range of Groupmanagement personnel
Fostering a sense ofgroup unity(Mobility of humanresources within
the Group)

Basic Group Policy on Human Resources

Strategy 3

Creating an environment
in which diverse humanresources can thrive
Creating a rewarding
work environment

Clarify the Group’s shared approach and direction with respect to the vision, fostering a corporate culture, health management, recruitment,
training, placement, and opportunities, etc.

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Priority Theme (2)Strategy 1

39

Developing human resources active in each business area

We are implementing various initiatives to develop human resources who will be active in a wide range of business areas.
Quantitative data related to Strategy 1
Item

Training hours per person*1

FY2021

6.6 hours

FY2022

7.5 hours

Total human resource development and training costs*1

309 million yen

365 million yen

Value of new business per employee*3

9.3 million yen

9.1 million yen

Ratio of Group adjusted profit to personnel costs*2

Employee engagement score (Category: self-initiative)*4

28.1%
3.89

61.7%

Subject: *1 Employees working at the three life insurance companies (administrative personnel as well as sales representatives, etc.)*2 Group adjusted profit / Personnel expenses of the three life insurance companies (administrative personnel as well as sales representatives, etc.) x 100*3 Value of new business / Number of employees working at the three life insurance companies (administrative personnel as well as sales representatives, etc.)*4 Administrative personnel of the three life insurance companies and HD

1.1 Planned human resource development in each Group company

3.91

Each Group company provides education and training through on-the-job training (educationing, and online teaching materials. In addition, we systematically transfer (rotate) personnel so

self-directed career development of each and every employee by providing a diverse curriculum

duties from a broad company-wide perspective.

through actual work), group training, and support for personal development. We support thethat includes proactive support for obtaining qualifications, as well as distance education, e-learn1.2 Securing specialized human resources

Recognizing the importance of enhancing the expertise of employees in each of its businesses, theGroup engages in a variety of human resource development programs. Furthermore, in order tothat employees can gain a variety of work experiences and enhance their ability to perform their— Diversification of routes to secure highly specialized human resources —Diversification of business portfolio
Closed book business/DX strategy/cultivation of new domains, etc.

diversify and optimize our business portfolio, we are developing a closed book business that has
affinity with our core business and a new business domain that utilizes digital tools, among oth-ers. In these business domains, we are focusing on securing highly specialized human resources

with a high level of expertise that can be used both internally and externally. The routes to secur-

ing highly specialized human resources are diversifying, and in addition to training by each Group
company, we are flexibly recruiting specialists directly from the external labor market.

Secondments fromeach Group
company

Direct recruitment
from the external
labor market

Receiving secondments from outside
the Group

Use of outsourcing(freelancers, etc.)

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Priority Theme (2)1.3 Human resource development and reskilling

In accordance with the Basic Group Policy on Human Resources, the Group develops self-directeddevelopment of each employee by providing online materials for learning cutting-edge knowledge

Each Group company promotes self-directed learning by disclosing internally the knowledge,

for employees to take up the challenge of assignment to business schools, MBAs, overseas job

human resources who understand the direction of the Group and can deliver the expected results.
skills, and abilities required in each division. In addition, we support the self-directed career

Plan

Each company’s
development plan

Disclosing internally thenecessary knowledge,
skills, and capabilities
for each company anddivision

1.4

and skills as reskilling support, proactive support for certification acquisition, and encouragement
assignment, and overseas language study.

Providing opportunities

Reskilling (Introduction of
online materials)
Overseas language study
Overseas job assignment

Assignment to business schools
Assignment to MBAs

Providingopportunities for
employees toengage inself-directed
learning

External seminars

Developing DX talent

In April 2022, the Group newly established the DX Promotion Division in the T&D Holdings Group
Planning Department, and is promoting DX throughout the Group. In order to develop humanresources who can use DX in each business domain, each Group company is working to improving

Ideal vision

Developing
self-directed
human resources
who can act
proactively anddeliver expected
results

DX literacy among all executives and employees by encouraging the acquisition of IT passports
and using online materials.

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ERM

Sustainability Management

Corporate GovernanceSupplementary Materials and Corporate Data

Priority Theme (2)Strategy 2

Expanding the range of Group management personnel

To respond to the highly uncertain business environment, we are pursuing business synergies among each Group company, based on the recognition that we need to maximize the use of management
resources within the Group. We are implementing various initiatives to further raise the Group awareness of employees, which is the foundation for realizing this goal.
Quantitative data related to Strategy 2
Item

Number of people experiencing work at
T&D Holdings (cumulative total):
Number of Group personnel exchanges

FY2021417

FY2022429(As of April 1, 2022)(As of April 1, 2023)

1,101

982

―*

Number of participants in Group collaborative training

Employee engagement score(Category: philosophy/vision)

3.97

Subject: Administrative personnel of the three life insurance companies and HD* Not conducted to prevent COVID-19

40

4.00

2.1 Mobility of human resources within the GroupIn order to develop human resources with a high awareness of Group management, the following initiatives are being implemented to deepen the sense of belonging to the Group and understanding of
the T&D Insurance Group’s Corporate Philosophy among personnel from each Group company, transcending the boundaries of the companies to which they belong.
Initiative
Planned personnel rotation
Group personnel exchanges
Open recruiting within theGroupGroup collaborative training
IR activities within the Group

Content

Experience in T&D Holdings operations, which is responsible for determining matters such as group strategy, proper allocation of Group management resources, andformulating capital strategies, is closely related to the development of human resources with Group awareness. To this end, we implement planned personnel rotations (transfers) from each Group company to T&D Holdings.
We dispatch young business persons to companies within the Group for about one week for the purpose of sharing excellent approaches (skills and know-how) of eachGroup company and building human networks among each Group company.

In order to foster human resources who can act proactively and think about their own careers, we have implemented an open recruitment system within the Group
that enables employees to take on the challenges of the positions of their choice in the various departments of T&D Holdings.

Group companies are collaborating to conduct training and seminars on common issues, which had been conducted independently by each Group company. (Management, human rights, active participation of women, market evaluation by analysts, etc.)
The Group holds intra-Group IR activities for Group executives and employees to deepen their understanding of the Group’s direction and market discipline, and topromote a sense of unity among Group companies in order to promote the Group Long-Term Vision and disseminate the Group’s Corporate philosophy.

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Introduction

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Sustainability Management

ERM

Corporate GovernanceSupplementary Materials and Corporate Data

Priority Theme (2)Strategy 3

Creating an environment in which diverse human resources can thrive
Quantitative data related to Strategy 3

Ratio of female managers*1

Item

FY2021

Gender pay gap*2

FY2022

Percentage of male employees taking childcare leave/Average number of days taken*2

Average number of days of paid leave taken*

1*1: Administrative personnel of the three life insurance companies*2 Employees working at the three life insurance companies (administrative personnel as well as sales representatives, etc.)*3: Administrative personnel of the three life insurance companies and HD

21.9％(As of April 1, 2022)(As of April 1, 2023)

2.54%

2.48%

41.2%

Ratio of employees with disabilities*2

Employee engagement score (overall)*3

19.1％

42.0%

100%, 5.8 days

100%, 12.6 days

3.77

3.75

16.5 days

16.7 days

3.1 Promotion of health and productivity management
Based on the belief that the mental and physical health of our employees and their families is the foundation for the realization of the T&D Insurance Group’s Corporate Philosophy and the continued pursuit of the Group’s growth, we are working to create an environment where employees can engage in their work with peace ofmind and work with vitality. In recognition of our efforts to date, three of the Group’s life insurance companies have been certified as one of the White 500 Corporations
for Excellent Health Management*. (Taiyo Life and Daido Life have been certified for seven years running)* The Ministry of Economy, Trade and Industry (METI) has awarded top-ranked corporations with the White 500 Corporations for Excellent Health Management status, based on its Certified Health and Productivity Management Organization
Recognition Program, which was established for the health promotion of employees.

3.2 Promotion of women’s activities
The Group recognizes that the further utilization of women’s abilities is indispensable for the sustainable enhancement of corporate value, and that the active participation of women is a key management issue for the Group. In addition to creating an environment in which women can play an active role, the Group is working
together to provide training for female Group employees, and the three Group life insurance companies are systematically developing human resources for managerial
appointments.
Our target is to achieve a 30% ratio of female managers by 2030.

3.3 Diversifying work styles
Taiyo Life and Daido Life have introduced retirement age of 65 against a backdrop of an extension of healthy life expectancy and diversified lifestyles. Furthermore, we are working to expand
employment opportunities for a diverse range of employees with disabilities by improving theworkplace environment to make it easier for employees with disabilities to work. In addition, we
Our target is to achieve 100% ratio of male employees taking child care leave.

Group collaborative women’s career
design seminar

have enhanced systems such as childcare leave to enable employees to fully exercise their abilities
while fulfilling family responsibilities such as childcare and nursing care, and introduced a homebased work system and satellite office work systems to enable diverse work styles.

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Corporate GovernanceSupplementary Materials and Corporate Data

Group Employee Dialogue
At T&D Insurance Group, we are committed to promoting

through effective utilization of LINE accounts. In this context, I

point. My duties mainly involve selecting and monitoring

we spoke to key individuals active across our various Groupfunctionality of our user portal, service expansion, and the shift

investment instructions and allocation of investment funds

the mobility of talent within the Group. For this dialogue,companies, irrespective of the companies at which they
originally worked. The discussion centered around thedifferences in each company’s culture and what needs to bedone to further advance our integrated Group management.

also handle the planning of LINE content, improvements to thetoward paperless operations via systematization, etc..

Koike I am currently on a temporary transfer to All Right fromT&D Financial Life. All Right opened in October 2022, with theobjective of creating a new customer base using digital tools.

Initially, we aim to collaborate with companies in the health andhealthcare sectors to provide services. In line with this, I am re-―― Could you please tell us about your work
responsibilities?

Ishikawa I work on contract maintenance at Pet & Family In-

sponsible for identifying suitable partner companies and working
on plans and proposals targeted toward them.

surance. Our pet insurance policies are renewed annually, andHiratsuka I am part of the Investment Management Depart-these contracts and administrative duties such as addressdelegated by Taiyo Life and Daido Life. My role is to create

my primary responsibilities involve tasks related to continuingchanges. Additionally, we are pushing our DX strategy forward

Moderator: Yukako Fukui
T&D Holdings,
IR Department
Deputy Manager(Original company: Taiyo Life)
Joined: 2015

ment at T&D Asset Management, where we manage assets

synergies across the Group from an asset management stand-outsourced investment managers, as well as consideration of
based on the external environment and performance.

Fujita I am stationed in the Business Development De-

partment of both T&D United Capital and T&D Holdings. My
primary responsibilities include advancing our closed bookbusiness centered around Fortitude, a reinsurance holding

company, as well as considering new partnerships and M&A
opportunities. The closed book business, a new initiative

launched in 2020, involves acquiring and consolidating blocks
of in-force policies that various insurance companies havediscontinued (closed book), with the aim of enhancing theirvalue to generate revenue. In the European and U.S. insurance
markets, there is a rising demand to segregate old insurance

A Diverse Workforce Engages in Challenges andDiscoveries to Achieve Sustained Growth
Akira Koike

All Right,
Corporate Department and Sales & Marketing Department
Deputy Manager(Original company: T&D Financial Life)
Joined: 2017 (Mid-career entry)

Yuko Ishikawa

Pet & Family Insurance,
Contract Maintenance
Department
Manager(Proper Employee)
Joined: 201143

Yuki Hiratsuka

T&D Asset Management,
Investment Management
Department
Manager(Original company: Taiyo Life)
Joined: 2015

Keiichi Fujita

T&D United Capital,
Business Development Department
T&D Holdings, Business Development
Department
Manager(Originally from: Daido Life)
Joined: 2003

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Corporate GovernanceSupplementary Materials and Corporate Data

Group Employee Dialogue
but in Japan as well. The satisfaction of tackling new chal-lenges is evident, and this sector now accounts for 20% of the――What are your thoughts after transferring to a different
company within the Group?

realize that it’s becoming an increasingly important part ofis crucial when starting new initiatives. Our company hasGroup’s adjusted profit in recent years. This fact makes me

elevating our corporate value. Given the high level of investor

attention, I also believe there’s a need for greater clarity in how

am actively making use of our external network to identify

investment opportunities based on the Group’s future growthscenario and business portfolio management, while also strategizing about which companies to engage with and taking steps
to execute these investments.

―― Could you discuss the connection between the gratification you get from your work and the improvementof corporate value?

Hiratsuka In my experience with integrated Group management at T&D Asset Management, I’ve not only enhanced mymanagement skills, but also expanded the scope of my responsibilities. This has enabled me to feel my own personal growthand made my job more rewarding. I believe I’m contributing

sell pre-determined products based on well-established man-of utilizing digital technology, I share similarities with Mr. Koike

a new business venture. We are using digital tools to create new

we employ outside specialized human resources with abun-

rewarding. Incidentally, the name “All Right” was chosen throughdiscussions among the four of us from the start. As the traditional
insurance market contracts due to a declining population, there’s

challenges when it comes to utilizing digital tools. At All Right,
dant skills and experience in areas such as social media man-agement and data analytics. We conduct our operations whileavailing ourselves of their expertise as needed.

a growing need to take on challenges in new areas. I believe that

Hiratsuka Being in charge of new responsibilities, I feel I am

unexplored areas, and not letting ourselves be constrained bypanding as I get involved in intricate analyses and decision-making

embracing new approaches and tools to discover potential inconventional ideas and methods, will enhance corporate value.

Ishikawa At Pet & Family Insurance, we are advancing DX bymaking features like user profile pages easily accessible via theLINE app. We are adapting existing mechanisms and workflows
to align with customer needs, striving to improve customer
convenience and communication.

Additionally, we are pushing for paperless operations andtangible effects of going paperless makes my job more andness opportunities not just in the U.S. and European markets,

pate the trends of the times and customer needs.

ing, the satisfaction of seeing our ideas materialize is extremely

ment and improved returns on investment.

growth business for the Group. We’re seeing expanding busi-

of All Right, and I felt we could exchange ideas on how to antici-

Koike As Ms. Ishikawa pointed out, we both face similar

makes for a daily process of trial and error. Although challeng-other efforts as part of our business innovation initiatives.

Fujita The closed book business is positioned as a newperspectives, which I find very enlightening. Moreover, in terms

customer points of contact, all conceived of from scratch, whichto enhancing the corporate value of the Group from an oper-

ational perspective through advancements in asset manage-

the Group and individuals with a variety of professional expe-

riences. This allows for the exchange of views from multiple

uals and rules. By contrast, my current job at All Right involves
an area of focus. Regarding new partnerships and M&As, I

employees who were transferred from other companies within

we communicate this aspect.

Koike In my previous role as a banker, my job was mainly tocontracts to improve operational efficiencies, making thisIshikawa I believe that embracing change and acting quickly

Seeing the number of LINE users increase and witnessing themore satisfying.

learning first and foremost. I feel that my horizons have been ex-

related to investments and asset allocations in the management

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Group Employee Dialogue
more on a bottom-up culture that values individual capabilities.

Right is a new venture. We aim to create new value by leveraging

same purpose, I’ve noticed stark differences in focus and layout

Ishikawa To be frank, before becoming a manager, I was

Fujita For instance, even with documents that share thebetween Taiyo Life and Daido Life. I’ve been reminded of thefact that it’s not a matter of which is correct, but about learning
the organizational level, I believe it’s necessary not only forsessions and be exposed to a variety of opinions, I not only

opportunities for departments with similar functions to collab-

revelation from my experience in moving within the Group isthat even though we are part of the same Group, the corporate

culture can differ considerably from one company to another interms of mindset and work methodologies.

orate on common challenges.

Hiratsuka I agree. Even if we articulate these differences

post-transfer, they may not resonate with those who haven’t

experienced it themselves. As Mr. Fujita mentioned, I believe

from. Additionally, the closed book business receives a highdegree of attention from various stakeholders, including shareholders and investors, which I find to be a stimulating environment that allows me to elevate my work perspective.

mission of the T&D Insurance Group, everyone has come toon a personal level.

Ishikawa At Pet & Family Insurance, we have been learning
various methods and know-how from those who transferredfrom Taiyo Life and Daido Life, which has been instrumental instreamlining our operations. However, after hearing everyone’s

thoughts, I believe that new insights could be gained if we wereto look at our company from an external viewpoint or gain

outside experience. So I’d welcome opportunities for our staff
to be transferred to other companies within the Group.

―― What differences have you felt among the Group
companies?

Koike At All Right, I’m the only one who has come from T&D

seems to emphasize a top-down approach that leverages the

Daido Life. I believe a large part of the cultural differences stems

Hiratsuka Though this might be a generalization, Taiyo Life
strength of the organization, while Daido Life seems to focus

I wish I had been more conscious of the importance ofintegrated Group management even before stepping into amanagerial role.

Fujita Last year, I participated in the IR activities within theand receiving candid answers to my questions, served as an

and deepen collaboration across the Group and beyond.

understand the importance of integrated Group management

makes me rediscover aspects about the company I originatedcould be beneficial for our own initiatives.

Fujita I think the environment at Holdings is extremely

consist of individuals from a diverse range of backgrounds,

tives and approaches to the table. In fact, this experience often

found it incredibly educational, but also felt that these insights

Group for the first time. Hearing first-hand from the management

conducive to that effort. As we all work toward achieving theincluding mid-career hires. Everyone brings different perspec-with individuals from other Group companies during training

it’s crucial to figure out how departments can work together

Fujita I was transferred from Daido Life. T&D United Capitaland the Business Development Department at T&D Holdings

thought to the other companies within the Group. However, af-

ter becoming a manager and having the opportunity to interact

individuals to bring back ideas, but also for there to be morecorrelation with traditional assets like stocks and bonds. Anothersolely focused on the task at hand and didn’t give muchfrom each other, which makes the integration of the Groupeven more meaningful. To deepen mutual understanding atof alternative investments, which are considered to have a low

the unique knowledge and experience of each Group company.

Financial Life, and I work alongside transfers from Taiyo Life andfrom the distinct business models of each Group company. All

about the current conditions and challenges facing the Group,

excellent opportunity for me to reevaluate my own work in thecontext of integrated Group management. During these activities,
I also sensed differing viewpoints among participants from vari-

ous Group companies. I believe that if Group companies were to45

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Corporate GovernanceSupplementary Materials and Corporate Data

Group Employee Dialogue
come together for discussions, it would enhance mutual under-

Ishikawa I feel that our Group is one where everyone’s

give each customer one-on-one attention.

of their position in the company. This creates a culture whereof the Group’s medium- to long-term investment revenue, I

should be leveraged as one of our strengths.

advanced asset management, as well as in strengthening andstanding and potentially give rise to new opportunities.

opinions are heard and fed back into management, regardlessis to get to know your colleagues across the Group. However,change is driven by fresh ideas from everyone, and I think that

Hiratsuka The first step in integrated Group management

I rarely interact with people from other Group companies andam largely uninformed about the kind of work they do.

A quick fix I’ve considered is making effective use of our Group―― Finally, could you share your future aspirations?

Group company, why not have more articles that focus on

ophy being pursued through integrated Group management, I

newsletters. While they currently feature key topics from eachthe challenges faced by various departments or head office

departments, similar to what each company’s in-house mag-of people who work in other Group companies and what they
are working on through newsletters or other methods.

―― What do you think are the strengths of the T&D Insurance Group?

Hiratsuka Our Group’s insurance companies target bothhouseholds and businesses, which I believe places us in a uniqueposition to be highly responsive to societal changes. Because weare not a massive Group, I feel there’s this strong sense of urgency
that we must adapt to market changes to survive.

Fujita Among life insurance companies in Japan, our Groupwas one of the first to engage in the closed book business. I see

this as a major strength that we should continue to capitalize on.

Koike I think one of the Group’s strengths is that eachGroup company operates under a different business model. In
this context, All Right is venturing into new business areas.

The closed book business is a new area in which

strategy, I want to focus on developing our organizational

growth.

a wide range of services through the use of digital tools andstyles that exist. I believe it is essential to learn about the kind

Fujitaaspire for both the company and myself to achieve significant

Koike During my assignment at All Right, I’ve had the op-

which has made me aware of the diverse cultures and work

expanding our investment advisory business.

global expansion is highly anticipated. In addition to speed-

Koike

portunity to work with people from various Group companies,

want to be actively involved in the government’s initiatives for

Ishikawa By aligning my actions with the vision and philos-

azine does? This could inform the entire Group about eachcompany’s efforts to improve corporate value.

Hiratsuka In addition to contributing to the improvement

I acknowledge that it’s All Right’s responsibility

within the Group to explore new markets. I want us to provide

ing up our initiatives as a part of the Group’s overall growth

structure and nurturing the necessary human capital. I also

aim to identify partners who can collaborate with our Groupto create new growth opportunities and thereby contribute toincreasing the Group’s corporate value.

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Sustainability Management

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Corporate GovernanceSupplementary Materials and Corporate Data

Strengthening IR Activities within the Group
Group IR

Since FY 2022, we have been strengthening IR activities within the Group with the aim of sharing the Group’s direction as well as promoting stronger market discipline and other such matters. For theGroup’s current IR activities, we have also devised ways to make IR more familiar and approachable to Group employees, such as by using the nickname “Group IR” reflecting the fact that the term “IR”
sounds like the phrase there is love in Japanese.

This initiative was awarded the “‘Most Liked!’ IR Award” at the 2022 IR Award selected by the Japan Investor Relations Association.

Activity 1Group internal IR Meetings

Activity 3

Briefing for all group executives and employees

Top Company management executives explain the Group’s chal-

Through the use of video and e-learning, we conduct briefings (de-meetings for investors and analysts.

and also revitalize the employee stock ownership plan.

lenges and policies using the same materials as the IR information

livered via video) for all employees, including sales representatives,
Results for FY2022

Activity 2

Participants

Small meetings

16,759* Based on survey collections

Our management team held dialogue-based small meetings withmanagers from the Group head office and branches. Management

communicated the purpose and significance of the Group’s listing on
the stock exchange, the Group’s challenges from a market perspec-

Briefing materials (front cover)tive, and the concept of the Group Long-Term Vision (Try & Discover2025). Meanwhile, participants raised a variety of opinions, including
issues faced by the Group from a front-line perspective and their
expectations for the Group Long-Term Vision, which led to lively
discussions at the meeting.

Results for FY2022
Participants

986

Events held
Scenes from a small meeting

Activity 4

Publication of “Group IR Newsletter” utilizing
the Group’s common comprehensive information
portal site

The Group has a common comprehensive information portal site,“T&D TALK,” which can be accessed by all group executives andemployees and members of the authorized alumni associations. We
publish the Group IR Newsletter on our site, proactively presenting
content that had been communicated externally.

92

Participant opinions
Fostering Group awareness and a deeper understanding of
the Group’s policies・H earing the explanation of the Group’s overall direction, I
was able to reaffirm my membership in the Group and the
direction in which we are headed.
・T here were concrete explanations of the business of theGroup as a whole and the direction in which the Groupis moving forward, which I had only vaguely understoodpreviously. My engagement with belonging to the Groupgrew as a result.
Increased awareness of stock price (stock ownership plan)• Although I had felt the disparity in stock price trends withother companies in the industry for some time, I became
more aware of stock prices after the explanation with specificindicators and numerical values.
• Even though I was vaguely aware of the stock price after thecompany was incorporated, I felt that I should reflect on thefact that I had stopped thinking about it there. I became very
aware that I myself was involved in the accomplishment oftasks to increase the Group’s corporate value.

Internal Group exchange• After meetings with participants from other companies in
the Group, I am able to communicate with them more than
before, for example, exchanging information.
• Next time, it would be better to set up a situation where interactive communication is possible, so that the participants canfeel a greater sense of unity.
• Perhaps it would be a good idea to have the program focus on
mid-career and young professionals, who will be the future
leaders.

Direction of FY2023 initiatives
・I n FY2023, the second year of Group IR, we will continue toshare the content of external briefings and investor/analyst
opinions within the Group, as well as hold small meetings
that emphasize more two-way communication.
・H D directors and executive officers and small meeting attendees will exchange opinions on the progress of the Group
Long-Term Vision, future issues, and what the T&D InsuranceGroup should do to become a stronger group in the future.

“T&D TALK” screen image

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Sustainability Management

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Corporate GovernanceSupplementary Materials and Corporate Data

Priority Theme (3)Priority Theme (3)Help Mitigate and Adapt to
Climate Change
Main related SDG targets

Basic Concept

A globally shared long-term target was established by the Parisstand that they must act in consideration of the protection of

the Parties to the United Nations Framework Convention on

growth along with society while fulfilling the public mission of

Agreement, adopted at the 21st Session of the Conference of
Climate Change in December 2015, to keep the rise in global

average temperature fully below 2ºC in comparison to before

the Industrial Revolution and pursue efforts to limit this rise to
1.5ºC. Achieving net zero emissions and carbon neutrality by

2050 is required to realize this target. To transition to a low carbon/decarbonized society and adapt to climate change, it will
be necessary to transform the industrial structure on a large-

scale and modify our behavioral patterns. The T&D InsuranceGroup also remains cognizant of the fact that we must do our
We will contribute to climate change mitigation andpart as a member of society.

The T&D Insurance Group formulated the T&D Insurance

adaptation and work to create a net zero society andGroup Environmental Policy* to clarify the Group’s stance onties as a provider of insurance products and services towith full awareness of the importance of environmental con-conserve biodiversity through our own business activicustomers.

the environment. The Policy is to carry out business activities
cerns, and to ensure that executives and employees under-

the global environment. The Group will achieve sustainable

life insurance and other businesses, and undertaking its cor-porate social responsibilities. In addition, based on the above
Policy, the Group has set out its Green Purchasing Standards

and Detailed Rules and gives priority to the purchase of products and services that help reduce its environmental impact

when procuring a diverse group of goods ranging from officefurniture, equipment and consumable supplies to real estate

facilities and system equipment as well as in printing productbrochures and policy documents. While climate change on a

global scale is a risk for the continuity of the Group’s businessactivities, the Group considers it an opportunity to undertakenew activities.

* For more information, please see our website.

https://www.td-holdings.co.jp/en/csr/csr-policy/environment.html

Disclosure of Climate-related Financial Information Based on
the TCFD Recommendations
The Task Force on Climate-related Financial Disclosures (TCFD),

addressed on a global scale. The effects of climate change haveits recommendations for clarified, comparable, and consistenteconomic behaviors and society worldwide. The T&D Insurance

established by the Financial Stability Board (FSB), formulated
information disclosure regarding the risks and opportunities

Our Target◉ Reduce our CO2 emissions by 40% by fiscal 2025

◉ Reduce our CO2 emissions to net zero by fiscal 2050

posed by climate change. These recommendations wereannounced in June 2017. Climate change is an issue to be48

significant impacts on the lives of people, through changes inGroup has expressed its support for the TCFD recommenda-

tions, and is actively committed to disclosing climate-related
financial information in an easy-to-understand manner.

Try＆Discover

Introduction

Strategies to Realize the Group’s Corporate Philosophy

Sustainability Management

ERM

Corporate GovernanceSupplementary Materials and Corporate Data

Priority Theme (3)Disclosure of climate-related financial information
The Board of Directors has established theGovernanceGroup SDGs Committee as its subsidiary

Sustainability Promotion Framework

Board of Directors

body, with the task of reviewing and delib-

erating its policies related to SDGs and CSR,
along with measures concerning the global

President

environment and social issues.

Furthermore, the Climate Change Risk Subcommittee is estab-lished as a subordinate body of this committee. The subcommittee researches and examines the status of climate change risks

and necessary responses, and assists the Group SDGs Committee in formulating policies and examining initiatives related toclimate change.

Group SDGs Committee
Department in charge of Promoting Sustainability
Sustainability Promotion Department(Committee secretariat)
Executive Management
Board

Group Strategy
Board
Departments

Sustainability Advisory Committee

Climate Change Risk Subcommittee
ESG Investment Subcommittee

Social Impact Examination Committee

We conduct scenario analysis based on multiple scenarios to examine the impact on our Group caused by climate change risk (physical risks*1 and transition risks*2).
Strategies*1 Business risks associated with natural disasters caused by extreme weather such as typhoons and floods, and those associated with phenomena such as an increase in the average temperature and a rise in the sea level*2 Business risks arising from the actions of government, corporations, and consumers in the process of carrying out the transition to a low carbon/decarbonized society (through a significant reduction of greenhouse gas emissions)◉ Scenario analysis: Impact on the Group and the Response Measures
ImpactPhysicalrisks

Transition
risks

Impact on underwriting profitability due to anincrease in the number of heat stroke patientstransported to hospitals and the number offatalities due to higher average temperatures,
as well as an increase in the number of disastervictims due to the severity of natural disasters

Impact on asset management income resulting
from the financial impact on the Group’s investment and financing recipients caused by stricter
regulations on greenhouse gas emissions, theintroduction of carbon taxes, replacement withnew technologies compatible with decarbonization, changes in consumer values and behavior
patterns, and other factors

Response

Appropriate review of premium
rates to ensure that there is no
significant negative impact onunderwriting profitability
Promote efforts to promote thedecarbonization of investment
and financing recipients
through engagement, and promote investment and financing
activities in businesses that
contribute to the realization ofa decarbonized society.

◉ Scenario analysis: Business Opportunities for the Group

Changes in the morbidity rate and average life expectancy associated with the progress of global warming are expected
to give rise to needs for protection (involving death, annuities, and medical care) against emerging new risks. There areopportunities to expand net sales of the insurance business, by expanding and providing a wider scope of protection inorder to meet such emerging needs.

As the reduction of GHG emissions progresses, the Group, as an institutional investor, has opportunities to enhancethe value of investment assets and expand investment returns stably over the long term, by investing and lending to

expanding clean energy development and energy conservation businesses, and by owning and managing real estate(such as office buildings) with superior environmental performance.

The Group also has opportunities to expand its business domains and earnings as a business operator, rather than as

an institutional investor, by developing or entering into new business domains related to the mitigation of and adaptation to climate change.

49

Try＆Discover

Introduction

Strategies to Realize the Group’s Corporate Philosophy

Sustainability Management

ERM

Corporate GovernanceSupplementary Materials and Corporate Data

Priority Theme (3)◉ Advancing climate change risk analysis: quantitative analysis of the impact on the GroupIn collaboration with KPMG Consulting Co., Ltd. and the Japan Weather Association, we conducted a quantitative analysis of the impact of climate change on the Group as an effort to advance climatechange risk analysis.
Analysis method• The Japan Weather Association has developed the high-resolution regional climate scenario dataset, a 1-km mesh high-resolution version of projected climate change data for physical risk analysis.

• For the Group, models were developed for “estimating the number of disaster victims due to flooding” and “estimating the number of heat stroke patients transported to hospitals and deaths” under the scenarios of 2°C (RCP 2.6 scenario) and 4°C (RCP 8.5 scenario) increase in the future average temperature in Japan due to climate change, respectively. Estimated using five different climate prediction models.

• A physical risk analysis was conducted by dividing the future period up to 2100 into the “first half of the future period: 2026-2050” and the “second half of the future period: 2051-2100.”
Analysis results
Disaster victims
Heat stroke
patients
Persons transported to hospital/deaths

・Variation exists in future rainfall increases by region (decreases in some areas).
・In addition, the percentage of powerful typhoons will increase, but the number of typhoons themselves will decrease.
⇒ In both scenarios, the number of disaster victims could spike in extreme rainfall cases, but the overall period would stay at the same level.
• I n both scenarios, there is not that big of a change in the first half of the future period.
• In the second half of the future period, there will be an increase in extremely hot days and tropical nights. Notably, under the RCP 8.5 scenario, the number of extremely hot days
increases by more than one month from the current level.
⇒ In both scenarios, the number of heat stroke patients transported to hospital and deaths increase in the second half of the future period.

Impact on the Company

Impact amount: RCP 8.5 scenario• Based on estimates derived from the analysis results, the RCP8.5 scenario, which(¥ billions)has a larger impact, results in an increase in insurance claims and benefits of�.�

“0.51 to 1.63 billion yen” (a level equivalent to approximately 0.1% to 0.3% of theGroup’s insurance claims and benefits paid) in the second half of future period

�.�

compared to the base period (2006 to 2025).

* The graph on the right shows the average of the five models (Increase of 1.07 billion yen in the second half of the future
period)

�.�

�.�

Total

�.���

�.���

�.���

�.���

�.���

�.���
�.���
�.���

����～����

Heat stroke hospitalizations

�.���
�.���

����～����

�.���
�.���

����～����

Heat stroke deaths

Disaster deaths50

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Introduction

Strategies to Realize the Group’s Corporate Philosophy

ERM

Sustainability Management

Corporate GovernanceSupplementary Materials and Corporate Data

Priority Theme (3)Riskmanagement

The Group registers climate change-re-Management of climate change-related risks

risks to be managed, and scrutinizes,

Physicalrisks

lated risks on the risk profile as critical
identifies, and assesses these risks.

The Group establishes its environmental
Metrics andtargetsprotection-related targets and is working

Transition
risks• The Group considers to mitigate deterioration of underwriting profitability through reinsurance and other means,along with large-scale disaster risks (insurance underwriting risks).
•T he Group monitors existing products and implements countermeasures, including product revisions, as necessary.

• The Group engages in investments and borrowings, taking into account climate change-related risks based on the
Principles for Responsible Investment (PRI).
・Engagement to facilitate investees and borrowers’ decarbonization efforts◉ Roadmap to achieving net zeroon initiatives to achieve them in its daily����business activities. The four targets are “toreduce CO2 emissions,” “to reduce electric-

annually, and disclosed in various reports and websites.

As for CO2 emissions, Scope 1 (direct emissions from the Com-pany), Scope 2 (indirect emissions via the purchase of energy

including electric power), and Scope 3 (indirect emissions via

other corporate activities including procurement of materials,
transport, and disposal) are measured and disclosed on acontinuous basis.

We have set reduction targets for our own emissions (Scope 1

and 2) and for our investees and borrowers (Scope 3: Category15), aiming to achieve net zero emissions by 2050.

Targets

Progress toward the achievement of these targets is measured

Scope�

(category ��)
Promotion ofrenewableenergy����
Reduction of ��%

Scope � + �

ity consumption,” “to reduce office paper

consumption,” and “to improve the green purchasing ratio.”����(compared to FY����)����Net zero
Settingtargets

Own emissions(Scope 1 and 2)
Investees andborrowers (Scope
3: category 15)

����
Net
zero

Reduction of ��%

Net
zero

��% renewable energy���%renewableenergy(compared to FY����)◉ CO2 emissions reduction target
Subject����◉ Promotion of renewable energy introduction
Targets

FY2025: 40% reduction (compared to FY2013)
FY2050: Net zero
FY2030: 40% reduction (compared to FY2020)*Subjects are stocks, corporate bonds, andfinancing of domestic listed companies.
FY2050: Net zero

We are a member of RE100, a global initiative that aims to use
renewable energy sources to cover all electricity consumed inbusiness activities.

We have set an interim goal of sourcing 60% of our electricity

from renewable energy by fiscal 2030, and are actively promoting
the use of renewable energy.

51Try＆Discover

Introduction

Strategies to Realize the Group’s Corporate Philosophy

Sustainability Management

ERM

Corporate GovernanceSupplementary Materials and Corporate Data

Priority Theme (4)Priority Theme (4)Invest to Help Build a
Sustainable Society
Main related SDG targets

Basic Concept

With the main business of the Group being life insurance business, contributing to realizing a sustainable society through investment is

one of the most fundamental roles of the Group. As an institutional investor managing long-term funds, we acknowledge the importanceof securing stable earnings, contributing to the realization of a sustainable society, and growing sustainably together with society.

ESG Investment Policy

In accordance with our basic concept, we have established the T&D Insurance Group ESG Investment Policy, which expresses ourstance on ESG investment.

T&D Insurance Group ESG Investment Policy (overview)

By conducting asset management with consideration to ESG issues, we will aim to secure stable earnings, contribute to the realization of a sustainable society, and grow sustainably together with society.
As a responsible institutional investor, we will secure stable long-term investment income and contribute to therealization of a sustainable society through investment
activities undertaken in consideration of the environ-ment, society, and corporate governance, with the aim ofgrowing sustainably in partnership with society.

1.

Conducting investments and financing with consideration
to ESG issues

3.

Collaboration on ESG investment and financing andsupport for sound market development

2.

Implementing constructive dialogue on ESG issues withinvestees

4.

Enriching information disclosure related to ESG investment
and financing initiatives

Signing of the Principles for Responsible Investment (PRI)

Taiyo Life, Daido Life, and T&D Asset Management have endorsed and signed the United
Nations-backed Principles for Responsible Investment (PRI).
The six principles outlined by the PRI (overview)Principle

We will incorporate ESG issues into investment analysis
and decision-making processes

Principle

We will promote acceptance and implementation of the
Principles within the investment industry

Principle

We will be active owners and incorporate ESG issues
into our ownership policies and practices

Principle

We will work together to enhance our effectiveness in
implementing the Principles

Principle

We will seek appropriate disclosure on ESG issues by
the entities in which we invest

Principle

We will each report on our activities and progress
towards implementing the Principles

1

Our Target◉ Reduce the CO2 emissions of investees and borrowers by 40% by fiscal 2030

◉ Reduce the CO2 emissions of investees and borrowers to net zero by fiscal 2050

2
3

4
5
6

52

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Introduction

Strategies to Realize the Group’s Corporate Philosophy

Sustainability Management

ERM

Corporate GovernanceSupplementary Materials and Corporate Data

Priority Theme (4)Various ESG investment initiatives

In order to promote asset management that considers ESG issues, the Group has introduced various investment methods according to the characteristics of the assets under management.
Integration
Negative Screening
Thematic investment andfinancing

Dialogue with investment andfinancing recipients

ESG-themed investment and financing

Incorporate the analysis and evaluation of non-financial information, such as ESG, in addition to financial information when investing and financing securities such as stocks andbonds, and real estate, etc.

Prohibit investments and financing to companies that manufacture inhumane weapons,
etc., and new investments and financing to coal-fired power generation projects, coal mining
projects, etc.

���.�billion yen

���.�
billion yen

���.�
billion yen

Build up investments and financing in assets with themes that can contribute to the realization of a sustainable society to 840 billion yen as of the end of FY2022.

Conduct dialogue on ESG issues such as decarbonization, diversity, and biodiversity in orderto enhance corporate value and promote sustainable growth of investment and financing
recipients

FY����

FY����

FY����

Initiatives toward net zero CO2 emissions for investment and financing companies
FY203040%
reduction

Net zero targets*

Net zero
initiatives

FY2022 results*(compared to
FY2020)

Dialogue
Provision offunds

FY2050net-zeroCall for the top 50 CO2 emitters to set decarbonization targets and roadmaps for reductions
Supporting the financing of companies addressing climate change issues through green bonds,
transition finance, and other thematic investment and financing initiatives that use funds forinvestments aimed at decarbonization.

Investment and financing portfolio CO2 emissions: Approximately 1,980,000 tons
CO2 emissions per investment and financing balance: 0.76 tons/million yen* Taiyo Life and Daido Life’s holdings include stocks, bonds, and loans issued by domestic listed companies(33% reduction compared to FY2020)53