Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

Index

T&D Insurance Group Sustainability Report 2023

Sustainability Management

1. T&D Insurance Group Vision
T&D Insurance Group’s Corporate Philosophy

With our “Try & Discover” motto for creating value, we aim to be a group that contributes
to all people and societies.
Ensuring the Group’s sustained growth by practicing our corporate philosophy

Creation ofshared value• The Group must confront continually changing issues of people and society (social issues) as
business opportunities.
• Through its businesses, the Group creates value for society and value for the enterprise from theperspective of resolving social issues.

Enterprise that can grow over the medium tolong term

Goal of the T&D Insurance Group• Contribute to the development of society through ourbusiness, and through this business make a fair profit.
Enterprise that creates social and economic value

Be an insurance group that shares value
with society and grows sustainably.

6Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

Index

T&D Insurance Group Sustainability Report 2023

7

2. Philosophy and Policy of T&D Insurance GroupT&D Insurance Group CSR Charter

2. Philosophy and Policy of T&D Insurance Group

2-23

The T&D Insurance Group has embraced the following corporate philosophy as the starting point for
the Group and the bedrock of all of its business activities: “With our ‘Try & Discover’ motto for creating
value, we aim to be a group that contributes to all people and societies.”
The T&D Insurance Group is centered on the life insurance business, which attaches fundamental
importance to the principle of mutual assistance. This is why our fundamental guiding principle as a business enterprise, and the very rationale for our existence, is to contribute to people and society throughour businesses with the aim of achieving a sustainable society.

【Structure of Sustainability Basic Policies】
T&D Insurance Group’s Corporate Philosophy

T&D Insurance Group CSR Charter
T&D Insurance GroupESG Investment Policy

T&D Insurance Group
Compliance Code of
Conduct

T&D Insurance Group
Human Rights Policy

1. Providing Better Products and Services
The T&D Insurance Group will offer high-quality, optimal products and services that meetcustomer needs, and will contribute to the sustainable growth of society and the solution ofsocial issues.
2. Strict Compliance• The T&D Insurance Group will strictly observe laws, regulations and rules, and act withsincerity and integrity according to high ethical standards.
• The T&D Insurance Group will maintain and promote fair and free competition.
• The T&D Insurance Group will stand firmly against antisocial forces and groups that may
threaten the order or safety of civil society.
3. Respect for Human Rights• The T&D Insurance Group will respect the human rights of all people, and make efforts toenlighten all its employees on human rights.
• The T&D Insurance Group will respect the individuality and diversity of all its employees,
ensure a healthy and safe work environment, and develop its human resources.
• The T&D Insurance Group will respect privacy, and will strictly control and protect personal information.
4. Communication
The T&D Insurance Group will provide appropriate information concerning its products andservices and disclose corporate information in an appropriate and timely manner to thegeneral public as well as to its customers and shareholders, and will actively strive to maintain a dialogue with all its stakeholders.

T&D Insurance Group
Environmental Policy【Other Related Basic Policies】• T&D Insurance Group Basic Policy Related to Customer-oriented
Business Operations• Basic Policy on Corporate Governance• Basic Group Policy on Human Resources• Group Risk Management Policy• T&D Insurance Group Basic Tax Policy

The T&D Insurance Group is firmly committed to fulfilling the public mission of life insurance
and other businesses and to undertaking its corporate social responsibilities based on theGroup’s Corporate Philosophy and by achieving sustainable growth along with society.

etc.

* All of these basic policies have been established by the T&D Holdings Board of
Directors as in-house regulations.

T&D Insurance Group’s Corporate Philosophy
With our “Try & Discover” motto for creating value, we aim to be a group that contributes toall people and societies.

5. Contribution to Communities and Society
The T&D Insurance Group will implement social activities as a good corporate citizen, andwill contribute to the sound development of regional communities and society.
6. Global Environmental Protection
The T&D Insurance Group will carry out its activities with full awareness of the importanceof consideration for environmental issues, and will strive to protect the global environment.
7. Establishment of Effective Governance and Thorough Implementation
To ensure that its actions are in compliance with this charter, the T&D Insurance Groupwill develop an effective governance structure and strive to cooperate with a wide rangeof stakeholders, including its customers, shareholders, employees, sales agents, business
partners, and communities.

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

T&D Insurance Group Sustainability Report 2023

Index

8

2. Philosophy and Policy of T&D Insurance GroupT&D Insurance Group ESG Investment Policy
In accordance with the Group’s corporate philosophy, the Group has established the T&D InsuranceGroup ESG Investment Policy, which expresses the Group’s stance towards ESG investment.
For more information, please see “T&D Insurance Group ESG Investment Policy” on P.80.

T&D Insurance Group Human Rights Policy
Based on T&D Insurance Group’s corporate philosophy and the T&D Insurance Group CSR Charter,
the T&D Insurance Group has established its Human Rights Policy as a standard for all executives
and employees of the T&D Insurance Group to comply with.
For more information, please see “T&D Insurance Group Human Rights Policy” on P.23.

T&D Insurance Group Environmental Policy
The T&D Insurance Group will carry out business activities with full awareness of the importance of environmental concerns and will give sufficient consideration to global environmental
protection based on the T&D Insurance Group CSR Charter. The Group will achieve sustainablegrowth along with the society while fulfilling the public mission of life insurance and other businesses, and undertaking its corporate social responsibilities.
The Group established the following environmental policy and is committed to complying with
it in all of its business activities.
1. Environmental Conservation Efforts through Business Activities
We will contribute to the protection of the global environment in all of our business activities.
2. Reduction in Environmental Impact
Recognizing the environmental burden of resource or energy consumption and waste emissions, we will work toward reducing environmental impact by conserving energy or resources, recycling resources, and promoting green purchasing.
3. Compliance with Environmental Laws
We will observe all environmental laws and regulations.
4. Promotion of Environmental Awareness-Raising Activities
We will raise environmental awareness among all Group members through awareness-raising activities to promote environmental protection initiatives.
5. Continuous Improvement in Environmental Initiatives
By setting environmental objectives and reviewing them regularly, we will endeavor to continuously improve our environmental performance.
All members of the T&D Insurance Group are notified of this environmental policy, which is also
publicly disclosed.

The T&D Insurance Group Compliance Code of Conduct
Guided by its corporate philosophy of “aiming to be a group that contributes to all people and societies through the creation of value,” the T&D Insurance Group has established the T&D InsuranceGroup Compliance Code of Conduct to conduct fair and adequate business activities with integrity
and sincerity for all stakeholders, including customers.
For more information, please see our website.
WEB

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

Basic Policy on Corporate GovernanceT&D Holdings has committed to all the provisions of the Corporate Governance Code that hasapplied to listed companies since June 2015 for the purpose of ensuring the T&D InsuranceGroup’s sustained growth and the enhancement of its corporate value over the medium to longterm. T&D Holdings has also disclosed a Basic Policy on Corporate Governance on its website
setting forth the Group’s initiatives and policies as they pertain to the salient principles and rulesin the Corporate Governance Code.
For more information, please see our website.
WEB

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

Reference: Information on Japan’s Corporate Governance Code (Tokyo Stock Exchange website)WEB

https://www.jpx.co.jp/english/equities/listing/cg/

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

Index

T&D Insurance Group Sustainability Report 2023

3. The T&D Insurance Group’s Value Creation Process
T&D Insurance Group’s Corporate Philosophy —T&D Insurance Group’s reason for existence—With our “Try & Discover” motto for creating value,
we aim to be a group that contributes to all people and societies.
Value Creation Process
MATERIALITY

BUSINESS MODEL
Competitive advantage

Business Modelwith High
Uniqueness andSpecialization

P.32

Provideworkplaceenvironments thatenable all people
to participate
actively

Help mitigate
and adapt toclimatechangeInvest to help
build asustainable
society

P.68

P.79

Promotehealthy andabundant lives
for all people

P.54

OUTCOME

Integrated Report P.15*

Financial Value
Social Value

INPUT
Financial CapitallisIntegrated Report P.28*

genin
Strength

it aes

Non-financial Capital

ca p

su

Integrated Report P.54*

al

ci
so
of

Social issues*For more information, please see Integrated Report 2023.
PDF

https://www.td-holdings.co.jp/en/ir/document/pdf/ir2023e.pdf• Declining birthrate and an aging
population• Diversity & Inclusion• Increased climate change risks
etc.

ion
lut
o
s
Re

9

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

Index

T&D Insurance Group Sustainability Report 2023

10

4. Priority Themes for Promoting Sustainability(2) Identify initiatives that address the important social issues

Priority Themes for Promoting. Sustainability

4
4-1

3-1

3-2

3-3

(3) Identify the shared value to be realized by the initiatives and the corresponding sustainability themes

Sustainability Initiatives

Sustainability Priority Themes
Among the various sustainability fields that relate to its business activities, the T&D Insurance Grouphas identified social issues that are highly important to society and highly relevant to the Group’s operations. Based on this, we established the following four sustainability priority themes.

Importance to society (economic, environmental, and social impact)

Sustainable global environmentMore efficient resource and energy use

A resilient and vibrant society
Strong but friendly
community development

Employment and job satisfaction[Priority theme 2]
Provide workplace environments thatenable all people to participate actively

Healthy and abundant lives[Priority theme 1]
Promote healthy and abundant lives for
all people

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

A 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
Basic living infrastructure

A resilient and vibrant society

A resilient and vibrant society

Revitalization of partnerships,
collaboration with stakeholders

We identified initiatives that address important social issues and the shared value of their impact. In
order to create shared value, we set themes that promote Group sustainability from the perspectivesof the areas of the issues to be addressed and the ways of addressing them.
For more details on (2) and (3), please see “Initiatives for Solving Social Issues and Creating Shared
Value” on P.11.

(4) Prioritize shared values and sustainability themes
We evaluated the importance of each shared value and sustainability theme based on both a) importance to society, and b) relevance to the Group’s business and initiatives (influence on social issues).
We then clarified the priority of the initiatives for the Group to pursue.
a) Importance to society: Evaluation based on its impact on the economy, environment, and society
and its contribution to the SDGsb) Relevance to the Group’s business and initiatives: Evaluation based on the relationship with policies and actions defined in the T&D Insurance Group CSR Charter

Support for basic education

Sustainable global environment
Environmental protection of land and sea

Support for construction ofindustrial infrastructure

Governance and internal control
of trusted corporate groups
Building a fair business foundation

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

Process for Selecting Priority Themes(1) Identify important social issues
We considered various social issues to be targeted, based on what society expects of us as a Group
engaged mainly in the insurance business, as well as how we can help develop a sustainable 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.
For more information, please see our website.
WEB

We identified the initiatives that have been implemented to increase social value with respect to theimportant social issues through our business activities and our critical business and sustainability
management platforms.

https://www.td-holdings.co.jp/en/csr/effort/casestudy.html(5) Select sustainability priority themes
We set priority themes for promoting Group sustainability that can have an impact on the creation ofshared value by addressing important social issues.

(6) Verify the adequacy of key social issues and sustainability priority themes• We engaged in dialogue and exchanged views on the selection process of priority themes with aqualified third party, then confirmed the adequacy of social issues to be targeted and the validity ofour priority evaluation.
• In addition, we received approval from the Group SDGs Committee and reported to the Executive
Committee (now the Executive Management Board) and Board of Directors.

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

Index

11

T&D Insurance Group Sustainability Report 2023

4. Priority Themes for Promoting Sustainability

Initiatives for Solving Social Issues and Creating Shared ValueThe T&D Insurance Group is committed to creating shared value and contributing to solving social issues through the Group’s broad range of business activities.
Priority Themes for Promoting Group Sustainability
Our priority themes for promoting Group sustainability, where they are described, and the corresponding GRI topics are shown below.
Shared value and sustainability theme
Healthy and abundant lives[Priority theme 1]

Promote healthy and abundant lives for all
people(insurance products and services)
The provision of products and services that contribute to dealing
with various risks faced by our customers, which are the result ofsocietal changes such as the acceleration of Japan’s declining birthrate and aging population, is an opportunity for the Group to bothgrow and contribute to the health promotion of our customers.

Employment and job satisfaction[Priority theme 2]

Provide workplace environments that enable
all people to participate actively(workplaces and personnel)
We believe that creating a healthy and safe working environmentthat responds to the needs of society is necessary to achieve a sustainable society and simultaneously serves as an opportunity tofurther vitalize the Company, so we are promoting various initiatives accordingly.

Important social issue

Impact of initiatives to respond to social issues• Reduce economic and social risks in an
aging society• Help people maintain good health• Encourage all people to engage in socialand economic activities

By providing insurance that supports the prevention ofdementia as well as insurance that offers coverage fora wide range of conditions requiring long-term care, wewill mitigate the financial and social risks faced by anaging society.

Priority Theme 1 1. Provision of
Products and Services which Meet the
Needs of Society• Promote use of insurance and financial
services for all

By integrating Internet-based insurance enrollment with
face-to-face support service, responding to the insurance enrollment needs of foreign workers, and offering
protection-oriented products at an affordable price, wewill promote easier access to insurance products.

Priority Theme 1 1. Provision of
Products and Services which Meet the
Needs of Society• Support the resolution of SME management issues• Support the spread of SME health andproductivity management

By providing products and services in response to SME
needs, we will contribute to the establishment andgrowth of SMEs as well as the health promotion of
their employees.

Priority Theme 1 1. Provision of
Products and Services which Meet the
Needs of Society
1-2 The Initiatives of Daido Life

• Support human resources and skills
development

By implementing initiatives to support human resources and skills development, we will enhance employee
skills, encourage career development, and increase theappetite of employees for growth.

Priority Theme 2Management

1. Human Capital•R espect worker personalities anddiversity•P romote the advancement of women

By actively promoting both respect for worker personalities and diversity as well as the advancement of
women, we will nurture a corporate culture where adiverse workforce can feel job satisfaction and reachits potential.

Priority Theme 2
Initiatives

2. Diversity Promotion•C reate healthy and safe workplaceenvironments•P romote decent work

By creating a healthy and safe working environment,
we will reduce the mental and financial impact on
employees while helping them to demonstrate theirabilities and enhance their performance.

Priority Theme 2Work Environment

3. Worker-friendly

Priority Theme 2
for Employees

4. Health Promotion

Sustainable global environment[Priority theme 3]

Help mitigate and adapt to climate change(climate change)
While climate change on a global scale is a risk for the continuityof the Group’s business activities as both a provider of insurance
products and services and an institutional investor, climate change
is also an opportunity to undertake new activities.

A resilient and vibrant society[Priority theme 4]

Invest to help build a sustainable society• Increase use of renewable energy• Strengthen resilience to climate change• Improve energy efficiency• Promote investments in sustainable
development• Promote investments in clean energy(investment and lending)
By considering the environment, society, and corporate governance when conducting investment activities as an institutional investor engaged in long-term fund management, we will contributeto the achievement of a sustainable society.

•P romote initiatives aimed at addressing
the sustainability issues of investment
and loan receiving companies

By increasing use of renewable energy, improving
energy efficiency, etc., we will considerably reduce CO2
emissions caused by our business activities.
We will analyze the impact of physical and transition
risks related to climate change on our activities as bothan insurance-product provider and institutional investor,
and we will strive to reduce these risks and increase
our opportunities.

Description location

Measures against demographic change and aging

Priority Theme 3 2. Disclosure of
Climate-related Financial Information
Based on the TCFD Recommendations
Priority Theme 3 3. Environmental
Impact-reduction Initiatives

Priority Theme 4
By conducting investing and lending activities from along-term perspective that considers ESG factors, wewill mitigate ESG risks and contribute to the sustainable growth of investment and loan recipients as an
institutional investor.

GRI topics

Better products andservices203: Indirect Economic
Impacts

401: Employment
404: Training and
Education
405: D iversity and Equal
Opportunity

403: O ccupational Healthand Safety

302: Energy
305: Emissions
201: Economic
Performance

1. Basic Concept

Priority Theme 4 2. Our Initiatives as a
Responsible Institutional Investor

Responsibilities as an
institutional investor

Priority Theme 4 3. Addressing theIssue of Climate Change

203: Indirect Economic
Impacts

Priority Theme 4 4. Initiatives to Conformto the Principles for Responsible Institutional
Investors (Japan’s Stewardship Code)Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

Index

12

T&D Insurance Group Sustainability Report 2023

4. Priority Themes for Promoting Sustainability

Foundational Themes for Promoting Group Sustainability
The relationships between sustainability themes that are foundational for promoting our priority themes and social issues, where they are described, and the corresponding GRI topics are shown below.
Shared value and sustainability theme

Important social issue• Eradicate corruption and bribery• Ensure fair and free competition• Manage and protect personal information

Governance and internal control oftrusted corporate groups• Information security• Building a fair business foundation• Tax approach focused on tax compliance• Provide proper information on products
and services

Respect for human rights• Other social human rights

Sustainable global environment(biodiversity, resources, forests, and pollution
prevention)• Efficiently using resources and energy

Sustainable global environment(biodiversity, resources, forests, and pollution
prevention)• Environmental protection of land and sea

Resilient and vibrant society(community contribution activities)• Stop discrimination against women andviolence•P revent harassment•E nhance efficiency of resource use• Increase reuse and recycling activities•P rotect marine resources and prevent
marine pollution•C onserve terrestrial biodiversity• Conserve forests

Impact of initiatives to respond to social issues
By strengthening our governance and internal control
related to responsible business practices to prevent
corruption, we will prevent impacts on the Group itself
as well as social and economic systems.
By strengthening our information security systems,
we will prevent impacts due to the leakage of personal
information.
Regarding taxes regarded by the UN as playing anessential role in terms of achieving the Sustainable
Development Goals, we will implement suitable tax
payment and information disclosure in line with relevant laws and ordinances.
To avoid possible impacts of customers not being able
to obtain accurate or sufficient information, we will
promote the provision of suitable product and service
information while also strengthening our initiatives to
respond to customer feedback.

• Improve nutrition in poor households• Basic living infrastructure• Take measures to combat infectious andcontagious diseases

205 : Anti-corruption
Management Control

3. ComplianceManagement Control 2. Risk
Management 2-8 Cyber Security Initiatives
Management Control 2. Risk
Management 2-9 Protection of Customer
PrivacyManagement Control
and Management

4. Tax Approach

Priority Theme 1 2. Providing
Wholehearted Reassurance• Collaborate with stakeholders

206 : Anti-competitive
Behavior
419: Socioeconomic
Compliance
418: Customer Privacy

207: Tax

417: M arketing andLabeling

By preventing discrimination and harassment based on
gender, disabilities, race, and sexual orientation, we will
prevent related impacts on human rights.

Sustainability Management 11. Initiatives
on Respect for Human Rights

412: H uman Rights
Assessment

By pursuing office paper and other initiatives toenhance the efficiency of resource use and increase
reuse and recycling activities, we will reduce environmental impacts, such as natural resource depletion,
environmental problems, and pressure on waste
disposal sites.

Priority Theme 3 3. Environmental
Impact-reduction Initiatives

301: Materials

By promoting the recycling of plastic bottles, we will
prevent ocean pollution.

Priority Theme 3
Activities

By promoting tree planting, we will contribute to thepreservation of biodiversity.

V Priority Theme 3 5. Environmental
Communications and Educational Activitie

306: Waste

Social Activities 3. Developing aSound Society (Education, Sports, Local
Community Contribution, etc.)

Measures against demographic change and aging

By conducting social contribution activities, we will contribute to improving the social environment in terms ofaging, health, education, poverty, and the environment.

Priority Theme 1
Satisfaction

4. Forest Conservation

Social Activities 2. Improving Health andWelfare (Health, Medical Care, Welfare, etc.)• Support use of health services

Revitalization of partnerships / Collaboration withstakeholders

GRI topics

3. Improving Customer• Provide equal access to education• Support for basic education

Description location

By engaging with stakeholders, we will enhance ourorganizational transparency to gain their trust, which isessential for our long-term growth.

Sustainability Management
Stakeholder Engagement

303: Water and Effluents

304: Biodiversity

Promoting community andemployee health413: Local Communities

9.

Governance and Internal Control 2.
Disclosure of Information to Shareholders
and Investors

414: S upplier Social
Assessment

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

Index

13

T&D Insurance Group Sustainability Report 2023

5. Contribution to SDGs

5

. Contribution to SDGs

At the United Nations Sustainable Development Summit 2015, “Transforming Our World: the 2030
Agenda for Sustainable Development” was adopted unanimously. The agenda sets forth Sustainable
Development Goals (SDGs), consisting of 17 goals and 169 targets, for the realization of sustainable development at the global level through the cooperation of the global community, including national governments, ordinary citizens and private-sector corporations. The SDGs are aimed at realizing a sustainable
world through initiatives that address issues in a wide range of fields. They are in line with the Group’s
corporate philosophy of “aiming to be a group that contributes to all people and societies through thecreation of value.” The Group will continue to incorporate contributions to SDGs into the process forselecting sustainability priority themes and make efforts to contribute to achieving SDGs through our
initiatives to promote sustainability, taking advantage of the features and strengths of the business.

5-1

Sustainability Priority Themes and SDGs

1. Promote healthy
and abundant
lives for all people

Main related SDG targets

SDG Compass Comparison Table
Item
Exectivesummary
Step 1
Understanding
the SDGs

Defining
priorities
Initiatives

We will contribute to the sustainablegrowth of society and to the solutionof social issues through the insurance
business by offering high-quality, optimal products and services that meetcustomer needs.

2. Provide workplaceenvironments thatenable all people
to participate
actively

To respect the human rights of all
people and respect the personality anddiversity of our employees, we ensurea healthy and safe working environmentand develop our human resources.

3. Help mitigate
and adapt toclimate change

We will contribute to climate change
mitigation and adaptation and work tocreate a net zero society and conserve
biodiversity through our own businessactivities as a provider of insurance
products and services to customers.

4. Invest to help
build a sustainable society

The SDG Compass serves as a guideline for how companies align their SDGs with their business strategies and measure and manage their contributions. The Compass was created jointly by the Global
Reporting Initiative (GRI), United Nations Global Compact (UNGC), and World Business Council For
Sustainable Development (WBCSD) in 2016. The five steps in the SDG Compass and the status of theGroup’s efforts are described below.

Step 2

Sustainability Priority Themes and the SDGs
Sustainability priority
themesSDG Compass Comparison Table

5-2

As a responsible institutional investor, we will secure stable long-term
investment income and contribute to
the realization of a sustainable society
through investment activities undertaken in consideration of the environment,
society, and corporate governance,with the aim of growing sustainably inpartnership with society.

Step 3
Setting goals

Step 4Integrating

SDG Compass contents

Relevant material (P indicates the page of this report)

Why do the SDGs matter for business? P.2: Message from the President
What is the SDG Compass?
P.13: 5-2 SDG Compass Comparison Table
What are the SDGs?
Understanding the business case
The baseline responsibilities forbusiness

P.13: 5. Contribution to SDGs

Map the value chain to identify impact
areas
Select indicators and collect data
Define priorities

P.10: 4. Priority Themes for Promoting Sustainability

Define scope of goals and select KPIs
Define baseline and select goal typeSet level of ambition
Announce commitment to SDGs

P.58: P riority theme 2 (Targets set for promoting female
employees to management positions)P.75: P riority theme 3 (Group-wide Targets and Results)

Anchoring sustainability goals within
the business
Embed sustainability across allfunctions
Engage in partnerships

P.10: 4. Priority Themes for Promoting Sustainability• Initiatives for solving social issues and creating
shared value
P.9: 3
 . The T&D Insurance Group’s Value Creation
Process• Publication of Sustainability Report (this report)• Website

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

Step 5
Reporting &communicating

Effective reporting and communication
Communicating on SDG performance• Integrated Reports
https://www.td-holdings.co.jp/en/ir/document/annual.html

For details on the SDGs and the T&D Insurance Group’s initiatives, please see our website.
WEB

https://www.td-holdings.co.jp/en/csr/effort/casestudy.html

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

Index

14

T&D Insurance Group Sustainability Report 2023

6. Status of Sustainability Promotion

Plan

Initiatives

6. Status of Sustainability Promotion
FY2022

3-3

The T&D Insurance Group has established the Group SDGs Committee, chaired by the president of T&D
Holdings and consisting mainly of officers in charge of sustainability/CSR at each Group company. Under
this Committee, we are pushing ahead with unified Groupwide activities.
The Group SDGs Committee serves as the cornerstone for promoting sustainability. It formulates basic policies for the Group’s sustainability promotion activities and selects priority areas, along with drawing up annual plans and regularly confirming the implementation status of those plans. Since fiscal 2019,
we have set four sustainability priority themes under which we are working to promote sustainability.

FY2022 Group Sustainability Promotion Progress Report (Partial Account of Activities)
Initiatives

Do

FY2022 results/performance

Check/Act

Activities planned for FY2023

Priority Theme 1: Promote healthy and abundant lives for all people• Provided the Preventive Insurance Series Himawari Dementia Prevention Insurance andCancer/Critical Illness Prevention Insurance toprevent diseases with insurance• Provided children’s medical insurance, which enables the policyholder to differ from the insured
person• Providing insurance products and • Provided Kaisha Minnade KENCO+, a new healthpromotion-type full range of protection that proservices that meet the needs ofmotes health-oriented management by SMEs
society• Support for maintaining good health • Provided Hybrid Asset Life single-premium variable whole life insurance• Deployed Taiyo’s GENKI Project to encourage
good health• Commenced Dodai?, a web service for working
on resolving social issues with SMEs
• Bolstered product lineups to respond to diversifying customer needs• C ontinue contributing toresolving social issues anddeveloping and providing
high-quality, optimal insurance products and services that meet customer
needs• C ontinue to provide services to support initiatives
aimed at maintaining thehealth of our customers
and society as a whole

Priority Theme 2: Provide workplace environments that enable all people to participate actively• Implemented Group-internal human resource
training and exchange, the in-house open
• C reating a flexible and vibrantrecruitment of employees seeking specificworkplace where diverse humanpositions, and a support system for studying inresources can demonstrate their
Japan and overseas
abilities with a motivation to workand grow• Set a target ratio of female managers and encouraged the promotion of women(work style reforms, promotion ofactive roles for women, promotion • Extended the retirement age to 65, introducedof a diverse workforce)an employment system enabling people to work
until they are 70, and held life planning seminars• Creating a healthy and safe working
environment• Helped SME owners confirm employee safety
in the event of a large-scale disaster

Check/Act

Activities planned for FY2023

Priority Theme 3: Help mitigate and adapt to climate change

Status Report on the Promotion of Group Sustainability

Plan

Do

FY2022 results/performance• Continue to advance thecreation of a flexible andvibrant workplace where
diverse human resources
can demonstrate theirabilities with a motivation
to work and grow

[Reduction in CO2 Emissions]
Period: FY2021–FY2025• Reduced CO2 emissions by setting targets for
Scope:	Buildings owned or leased
reducing electricity consumption, controllingand used by Group compaenergy consumption, and advancing the intronies
duction of renewable energy
Baseline:	C O 2 emissions in FY2013 • FY2022 results: 0.0435 t/m2, 64.6% of baseline(value per unit of floor space)(35.4% reduction from baseline)
Target:	At least 40% reduction frombaseline by FY2025• Reduced CO 2 emissions
by continuing to promote
initiatives to reduce electricity consumption andpromote the introductionof renewable energy[Reduction in power consumption]
Period:	FY2018–FY2027
Scope:	Buildings owned or leased
and used by Group companies
Baseline:	Power consumed in FY2016
Target:	More than 10% reductionin power consumption per
floor space

Implemented a multitude of measures, including
enforcing lights-out before business hours andduring lunch breaks, turning off office appliances, setting a "no overtime day," and investing inenergy conservation when newly constructing
or renewing the facilities of real estate holdings(including investment buildings)• FY2022 results: 98.8 kWh/m2, 89.0% of base­line (11.0% reduction from baseline)• R educe CO 2 emissions
by continuing to promote
efforts to reduce power
consumption through themeasures listed on theleft[Reduction in office paper use]
• Reduced usage by promoting paperless meetPeriod: FY2019–FY2023
ings, reducing storage documents, adding PC
sub-monitors, installing PC connection monitors
Scope:	Paper used at head offices
to meeting tables, managing the number ofof Group companies
copies, promoting digitization of insurance poliBaseline:	Average of office paper usage
cy provisions, etc.
between FY2014 and FY2018
Target:	12% reduction from baseline • Reduced by 25.0% from baseline in FY2022• Initiate a new five-yeartarget from FY2019 to further reduce paper usage

Priority Theme 4: Invest to help build a sustainable society• Invested in and provided loans for projects• Contributing to the realization of a
aimed at contributing to the resolution of varsustainable society through ESG
ious ESG issues, including green bonds andinvestments that take into accountsocial bonds
environmental, social, and corpo• Implemented initiatives aimed at engaging inrate governance issues
dialogues with investment and loan recipients• E xercising voting rights as a reto help them achieve net zero emissions as wellsponsible institutional investor andas green finance (investment in and loans forpromoting dialogues with investees
projects in the environmental field)• C o n t i n u e c o n d u c t i n ginvestment, lending, andengagement activities
based on the T&D Insurance Group ESG Investment Policy as well as the
Principles for Responsible
Institutional Investors (Japan’s Stewardship Code)Communication• Issued a sustainability report and expanded theinformation disclosed on the website• Disseminating information related
to the promotion of Group sustain- • Disseminated sustainability/CSR-related inforability
mation within the Group through Group newsletters and training including e-learning• Expand report disclosure
information and the dissemination of sustainability-related information• C ontinue measures toraise the sustainability
awareness of executives
and employees througheducation and training

Contribution to local communities and society• Group joint blood donations• Charity calendar exhibitions• Held blood donation twice a year in cooperation
with the head offices of each Group company• Held a charity calendar exhibition with the cooperation of our business partners and donated theproceeds to facilities for people with disabilities• C ontinue the efforts tocontribute to society listedon the left

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

Index

15

T&D Insurance Group Sustainability Report 2023

7. Sustainability Promotion Framework (FY2022)

Sustainability Promotion Framework. (FY2022)

7

Sustainability Advisory Committee

2-9
2-13

2-12
2-14

The T&D Insurance Group has established the Group SDGs Committee, which consists mainly of officers
in charge of sustainability/CSR (planning and CSR) at each Group company.
Our sustainability promotion framework has been reinforced to facilitate coordinated efforts by way
of deliberation by the Group SDGs Committee of Group-wide sustainability policies and initiatives, while
encouraging each Group company to actively pursue sustainability promotion efforts in its respective
operations.

Group SDGs Committee
The SDGs express the goals of promoting sustainability in a way that is easy to understand. To further
strengthen Group cooperation in promoting sustainability, the Group SDGs Committee was establisheddirectly under the Board of Directors with the goal of advancing efforts across the Group as a whole. The
Committee serves as the cornerstone for promoting sustainability at the Group. It formulates basic policies for the Group’s SDGs and CSR activities and selects priority themes along with drawing up annual
plans and regularly confirming the implementation status of those plans. The Group SDGs Committee
is chaired by the president of T&D Holdings (representative director and chairperson of the Board of
Directors) and vice-chaired by the executive officer in charge of the Sustainability Promotion Department.
In fiscal 2022, the Committee met four times. All the information shared and the issues deliberated
and discussed are reported to the Board of Directors. In addition, in fiscal 2020 we established the
Climate Change Risk Subcommittee and the ESG Investment Subcommittee as subordinate bodies of
the Group SDGs Committee to proactively address the increasingly important issue of climate change.
The subcommittees are chaired by the General Manager of the Sustainability Promotion Department
of T&D Holdings, who is in charge of promoting Group sustainability, and consist of the heads of theplanning, risk management, and asset management departments at each Group company, as well as
the persons in charge of handling these issues (section managers). In addition, we have established theSDGs Promotion Working Group, which comprises the departments in charge of sustainability/CSR of
T&D Holdings and each Group company. The Working Group advances each Group company’s sustainability promotion activities by sharing information on sustainability promotion at each Group company, in
conjunction with assisting with the management and activities of the Group SDGs Committee.
The Group SDGs Committee mainly reviews sustainability report changes compared to the previous
fiscal year and approves information to be disclosed for the current fiscal year. In addition, the Group
SDGs Committee is instrumental in terms of obtaining external assurance for major indicators related topriority sustainability themes, obtaining third-party opinions related to sustainability reports, engaging in
dialogues with experts regarding sustainability issues, and taking other steps to increase the reliability ofsustainability reports.

This Committee was established in fiscal 2021 to improve the Group’s sustainability initiatives by incorporating the perspectives of external experts and the latest trends.
• Executive officer in charge of sustainability at T&D Holdings............................................................. Executive officer: Shuichi Nakamura (fiscal 2022)
100% attendance at Group SDGs Committee meetings infiscal 2022
• Department in charge of promoting sustainability at T&D Holdings............................................................. Sustainability Promotion Department, T&D Holdings• Departments in charge of sustainability/CSR at each Group company............................................................. Established departments in charge of sustainability/CSR
at each Group company (planning and public relations
departments)

Sustainability Promotion System in the T&D Insurance Group (as of July, 2023)
T&D Holdings

Board of Directors
Group SDGs Committee
PresidentGroup Strategy Board

Department in charge of Promoting Sustainability
Sustainability Promotion Department(Committee secretariat)
Sustainability Advisory Committee

Executive Management Board

Climate Change Risk Subcommittee
ESG Investment Subcommittee

Departments

Social Impact Subcommittee
SDGs Promotion Working Group

Group Companies
Departments in chargeof Sustainability/CSR

Departments in chargeof Sustainability/CSR

Departments in chargeof Sustainability/CSR

Departments in chargeof Sustainability/CSR

Departments in chargeof Sustainability/CSR

Departments in chargeof Sustainability/CSR

Each division

Each division

Each division

Each division

Each division

Each division
Pet & Family InsuranceSustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

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T&D Insurance Group Sustainability Report 2023

16

Sustainability Advisory Committee

Sustainability Advisory Committee
The Sustainability Advisory Committee, which was established in FY2021, receives commentary from outside experts on
the latest international trends as well as a variety of recommendations based on their expertise. The Group reflects theserecommendations 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

Kenji Fuma

Masahiko Moriyama

Takejiro Sueyoshi

Hirohisa Uehara

Mari Yoshitaka

Yasuhiro Mori

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

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

UNEP Finance Initiative
Special Advisor

T&D Holdings, Inc.
Representative Director andPresident

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

T&D Holdings, Inc.
Executive Officer

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

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T&D Insurance Group Sustainability Report 2023

17

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, and poverty issues. The age where their values influence society
is right before us, which will bring a big impact on
business moving forward.

Recommendation 1

Recommendation 2

Toward decarbonization

Sustainability Statement(1) The Group Long-Term Vision indicates a CO2 emissions reduction(1) It is necessary to discuss one’s values in the preparation of astatement. The company should determine where in the world
the problems related to its business are and how it can contribute to the world through its business, and then communicate its
stance to the world. Japanese companies’ lack of issue awareness regarding why they are tackling these 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.

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 the 2050 globally-championed Net Zero goal is a lag behind the global trend. The global
trend is already changing from “low carbon” to “decarbonization.”
In view of the recent severity of climate change, we presume thatthe 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 InsuranceGroup 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 and borrowers, and release them.

Response(2) 
Any sustainability initiatives to be described in the statement
should be noted with an awareness of their connection to thesustainability priority themes. In addition, because prime market
listing standards require Task Force on 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.

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 com-

Response

mented on the fact that no net-zero targets or targets for investees andIn response to the opinions of the committee, we started writing a state-borrowers had been established. In response to this, on September 30,

ment in September 2021. We exchanged opinions with the committee

2021, an additional target was set to achieve net zero in FY2050, includ-

midway through this process, and the statement was completed and dis-ing own investment and borrowers (Scope 3, Category 15). In addition, an

closed on May 23, 2022.

interim target was set on April 11, 2022 for own investees and borrowers.

We have established four sustainability priority themes, which reflect
the Group’s basic approach to sustainability and the issues to be addressedin the future, and have communicated to our stakeholders the direction

Reference: T&D Insurance Group CO2 emissions reduction target

and specifics of the Group’s initiatives. We report on related results andSubject

Targetprogress via media such as our website and the Sustainability Report.

Own emissions(Scope 1 and 2)

FY2025: 40% reduction (compared to FY2013)
FY2050: Net zero

attitudes and initiatives to date.

Investees and borrowers(Scope 3, category 15)* Subjects are stocks, corporate bonds, and loans ofdomestic listed companies.

FY2030: 40% reduction (compared to FY2020)
FY2050: Net zero

In May 2023, we updated our statement in light of changing social

Sustainability Management

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Priority Theme

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Governance and Internal Control

T&D Insurance Group Sustainability Report 2023

Management Control

Third-party Opinion

Index

18

Sustainability Advisory Committee

Recommendation 3

Recommendation 4

ESG investment

Support to small to medium enterprises(1) The T&D Insurance Group invests in a variety of bonds, but itwould be better to link its position as an institutional investor with
its position as an insurance company, and to make investmentsthat can explain what the bond means to the T&D InsuranceGroup. Take, for example, the large number of female customers
that Taiyo Life has. In this context, it would mean investing in gender bonds that support women’s advancement in society and help
reduce gender disparities.

(1) Observing the actions of the Japanese government, we feel that
rapid changes are coming to Japan, and we fear that some people
may not be able to keep up with these changes. Communicating
global trends in sustainability to SMEs will further strengthen therelationship 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
have a 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 InsuranceGroup, which has access to SMEs, will support the industry.

(2) When it comes to engagement, it is important to continue doing business with companies that are committed to Net Zero. Inorder for our business partners to build a net-zero portfolio, it isimportant for us to have a basic attitude toward our own net-zero
portfolio. It may be a good idea to consider showing, as an indicator, the actual amount of ESG investments and financing from theperspective of the overall portfolio.

(2) Whether or not policyholders will be able to continue to enroll
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 contributein a different way than insurance and investment, such as engagement and consulting.

Response

Response

The Group has already been considering the effect of its investment

Group company Daido Life has been engaged in various initiatives toactivities as an institutional investor on realizing a sustainable society,support SMEs in resolving their business issues, namely: “KENCO

and has invested with consideration to environment, society, and cor-

SUPPORT PROGRAM,” which supports SMEs in their Kenkokeiei®*

porate governance. In response to the committee’s recommendation, in(Health and Productivity Management);Sustainability Management

FY2023, we will set up focus areas for ESG investments and financing

Support Program to encourage SMEs’ efforts to tackle the SDGs; start-

based on the business characteristics of the Group and the concept ofing to provide “Dodai ?”an online service for managers of SMEs to gath-our Sustainability Statement. Aiming to make further contributions to

er and work on resolving social issues together.

solving social issues in focus areas, we will strengthen our investments,

In March 2023, Daido Life formulated and announced theirfinancing, and engagement activities. In particular, we will aim to expand

Sustainability Promotion Plan aiming to become a company that contrib-

information disclosure and improve the contribution of our investment

utes to a society where the wellbeing of SME workers and their families

and financing activities to sustainability issues, etc. by quantitatively un-

is realized. Based on this plan, we will work with SMEs to solve social

derstanding their social outcomes (positive impact).

issues and realize a sustainable society through the continuous development of SMEs.
* The Japanese term for “Health and Productivity Management” refers to a corporate
management style of paying additional attention to employees’ health and strategically
implementing policies aimed at employees’ health management and maintenance, and isa registered trademark of Non-Profit Organization Kenkokeiei.

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

T&D Insurance Group Sustainability Report 2023

Index

19

8. Committees that Respond to Sustainability Issues

Committees that Respond to. Sustainability Issues

8

Executive Management Board and Group Strategy Board

2-9

2-12

2-13

For details, see Corporate Governance Framework: Executive Management Board and Group Strategy
Board on P.94.

Group Compliance Committee
T&D Holdings is promoting activities for each of the core subjects and themes of ISO 26000 through themeeting bodies shown in the table below.
Meeting Body
Executive Management
Board
Group Strategy Board

Group SDGs Committee(number of meetings held in
fiscal 2022: 4)

Group Compliance
Committee(number of meetings held in
fiscal 2022: 5)

Group HR Committee(number of meetings held in
fiscal 2022: 12)

Group Risk Management
Committee(number of meetings held in
fiscal 2022: 17)

Customer service department and product development department of eachmajor group company

Chairperson
President of T&D
Holdings

President of T&D
Holdings

President of T&D
Holdings

Executive officer incharge of personnel
at T&D Holdings

Executive officer incharge of the Risk
Management
Department at T&D
Holdings－

Core Subjects and Themes of ISO 26000
Organizational
governance

Organizational governance

Environment

Prevention of pollution, sustainable resource use, climate change
mitigation and adaptation, protectionof the environment, biodiversity andrestoration of natural habitats

Community
involvement anddevelopment

Community involvement

Human rights

Due diligence, human rights risk
situations, avoidance of complicity,
discrimination and vulnerable groups

Fair operating
practices

Anti-corruption, responsible political involvement, fair competition,
respect for property rights

Labor practices

Employment and employment
relationships, conditions of work andsocial protection, social dialogues,
health and safety at work, humanresource development and training in
the workplace

Fair operating
practices

Corporate social responsibility in thevalue chain

Consumer issues

Consumer data protection andprivacyConsumer issues

Consumer service, support, andcomplaint and dispute resolution,
education and awareness-raising

The activities of committees other than the Group SDGs Committee related to the core subjects and themes of ISO 26000 are described
below.

This committee was established under the Board of Directors to strengthen the T&D Insurance Group’s compliance structure. Its chairperson is the president, and its vice chairperson is the executive officer in charge of
the Risk Management Department (responsible for compliance). In addition to promoting, monitoring, andimproving the Group’s compliance structure, the committee investigates, plans, and discusses fair businessperformance, violations of laws and ordinances during the execution of duties, and other such issues. The
committee verifies the compliance status of the T&D Insurance Group Compliance Code of Conduct and theeffectiveness of the compliance structure through periodic monitoring of the Group’s compliance promotion
situation in terms of fair operating practices and deliberations on them. The committee also reports any
issues it deliberates on or considers as well as information it shares to the Board of Directors.

Group HR Committee
T&D Holdings and the three life insurance companies share information about labor-related matters regarding
the administrative personnel employed by the Group. The Group has established the Group HR Committee
to cooperatively conduct surveys, formulate plans, and hold consultations regarding important matters ofpolicy to which the Group should respond. The chairperson of the committee is the T&D Holdings executive officer responsible for human resources, and the committee members are the heads of the humanresource departments of the three life insurance companies. The committee meets every month. The GroupHR Committee is promoting efforts to create a corporate culture that diverse human resources will find engaging to work in and that enables them to reach their full potential. The council does this by conducting surveys, formulating plans, and holding consultations regarding policies and management methods concernedwith the Group’s labor-related matters. These include both monitoring the situation of compliance with labor
regulations as well as promoting the active participation of women and other forms of diversity, developing
human resources, promoting a good work-life balance, and ensuring the health and safety of employees.

Group Risk Management Committee
Positioned directly under the Executive Management Board, the Group Risk Management Committee
manages and controls risks that the T&D Insurance Group is exposed to and ensures thorough risk management. The committee chairperson is the executive officer in charge of the Risk Management Department.
The committee also engages in conducting surveys, formulating plans, and holding consultations regarding
the risks associated with outsourcing management of our business partners. The committee also reports
the results of its deliberations to the Executive Management Board and the Board of Directors.

Customer service department and product development department of each major group company
The customer service department and product development department of each Group company, including the three life insurance companies, constantly work on customer service, support, complaint anddispute resolution, and education and awareness-raising.

Sustainability Management

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Priority Theme

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Governance and Internal Control

Management Control

Third-party Opinion

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T&D Insurance Group Sustainability Report 2023

20

9. Stakeholder Engagement

Proactive Information Disclosure

9. Stakeholder Engagement

2-28

2-29

3-3

The T&D Insurance Group and Its Stakeholders

The T&D Insurance Group pursues proactive communication activities and works to make comprehensible information disclosures to customers, shareholders, investors, and all other stakeholders. To maintainand even heighten our trustworthiness in the eyes of society, T&D Holdings, Taiyo Life, Daido Life, T&D
Financial Life, and Pet & Family Insurance have formulated Disclosure Rules*. In keeping with these rules,
we are striving to secure the transparency of management and to practice Group-wide and well-managed
information disclosure in a timely, fair and accurate manner especially in the event of an emergency.
* Based on its Disclosure Rules, T&D Holdings has prepared and makes available its Disclosure Policy.

Dialogues with Main Stakeholders

Customers
Shareholders/
Investors

Providing better
products and services

Activities as a memberof society

Sales
AgentsShareholders
and investors

Partnering for mutual
cooperation andprosperity

Providing applicablereturns on investments

Local
Communities/
Society

Shareholders’ meetings, financial results briefings, individual meetings for institutional
investors, and publication of shareholder newsletters

Business
Partners
Effective and highly
transparent corporate
governance

Customer feedback, customer surveys, customer information meetings, business reporting
meetings, Service Quality Improvement Committee, Service Supervision Committee, etc.

Customers

Fair dealings

Thorough compliance
Governmental
Entities
Playing a publicrole in society

Employees

Protecting the environment,
everyone’s home

The Group has set up many points of contact with its customers, including sales representatives,
agents, call centers and the Internet, as well as a new policy procedures survey that focuses on
the attitudes of sales representatives and the understandability of application forms and otherdocuments and customer satisfaction surveys, giving the Group access to a wide range of customer feedback. A committee has also been established to improve customer satisfaction, and
the Group incorporates the opinions of outside committee members, including attorneys andexperts in consumer issues, in its management.
Education and training, human rights training, employee awareness surveys, dialogues
and consultations with labor unions, an internal reporting system, etc.

Proactive communication

Environment

In addition to shareholders’ meetings, we hold information meetings, teleconferences, and individual meetings for institutional investors. T&D Holdings informs its shareholders, numbering
209,198 as of March 31, 2023, of the status of Group operations and other matters twice a year,
in June and December, through shareholder newsletters.

Employees

Providing workplaces thatmake work meaningful
and pleasurable

Management Reflecting Stakeholders’ Opinions
The T&D Insurance Group proactively engages in dialogue with stakeholders as set out in the T&D
Insurance Group CSR Charter (see “4. Communication”). By taking every possible opportunity to interact, the Group’s three life insurance companies collect the opinions of policyholders, sales agents andother stakeholders and reflect them in their respective business management.

Protecting
the environment andcontributing
to localcommunities

Education and training are provided through on-the-job training and group training, and throughsupport for self-education efforts. The Group also conducts human rights awareness training that
addresses discrimination, harassment and other issues as a way of deepening employees’ understanding of the importance of respecting human rights. Awareness surveys are conducted tocollect information on employee opinions and requests regarding job satisfaction and enhancing
motivation. Through dialogues with its labor unions, the Group has an opportunity to discuss awide range of subjects, including management policies, wages, working hours, leave, humanresource systems and benefits.
Participation in the UN Global Compact, Principles for Financial Action for the 21st Century,and the Japan Association for the United Nations Environment Programme (UNEP), support for the Japan Down Syndrome Society, implementing Forests of Taiyo Life activities,
supporting activities by The Nature Conservation Society of Japan, etc.
The Group participates in the UN Global Compact, Principles for Financial Action for the 21st Century,and other initiatives. It also exchanges views in a wide range of areas through study groups anddialogues with the participating companies. Furthermore, the Group has opportunities to understandstakeholders’ expectations toward enterprises and to explore possibilities of the Group’s contribution through support of and participation in the activities of NPOs active in each field.

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

T&D Insurance Group Sustainability Report 2023

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21

10. Principles That the T&D Insurance Group Endorses and Supports

Principles That the T&D Insurance Group. Endorses and Supports

10

The UN Global Compact
The T&D Insurance Group has become a participant of the United Nations (UN)Global Compact (UNGC), a cooperative framework between the UN and corporations to realize sustainable growth advocated by the UN. The UNGC proposesten principles applying to the four areas of the protection of human rights, theelimination of unfair labor practices, the protection of the environment and theprevention of corruption, and encourages companies to act in a responsible
manner. The T&D Insurance Group endorses the UNGC’s philosophy, and T&D
Holdings, representing the Group, has signed a memorandum declaring its
support for the ten principles.

Anti-Corruption* The UN Principles for Responsible Investment (PRI) were formulated by the UNEP Finance Initiative and the UN Global Compact as a setof principles that would facilitate the reflection of the ESG viewpoint in the decision-making processes of financial investors.

The Six Principles of the PRI
Principle 1: We will incorporate ESG issues into investment analysis and decision-making
processes.
Principle 2: We will be active owners and incorporate ESG issues into our ownership policies
and practices.

Principle 1

Businesses should support and respect the protection of internationally proclaimed human rights.

Principle 4: We will promote acceptance and implementation of the Principles within the investment industry.

Principle 2

Businesses should make sure that they are not complicit in human rights
abuses.

Principle 5: We will work together to enhance our effectiveness in implementing the Principles.

Principle 3

Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining.

Principle 4

Businesses should uphold the elimination of all forms of forced and compulsory labour.

Principle 5

Businesses should uphold the effective abolition of child labour.

Principle 6

Businesses should uphold the elimination of discrimination in respect of
employment and occupation.

Principle 7

Businesses should support a precautionary approach to environmental
challenges.

Principle 8

Businesses should undertake initiatives to promote greater environmental
responsibility.

Principle 9

Businesses should encourage the development and diffusion of environmentally friendly technologies.

Principle 10

Businesses should work against corruption in all its forms, including extortionand bribery.

Human rights

Environment

In the T&D Insurance Group, Taiyo Life, Daido Life and T&D
Asset Management have endorsed and signed the Principles
for Responsible Investment (PRI)*. PRI are guidelines that encourage global financial institutions and institutional investors topromote investment activities in consideration of Environmental,
Social and Governance (ESG) issues.

Principle 3: We will seek appropriate disclosure on ESG issues by the entities in which weinvest.

UNGC’s Ten Principles

LabourPrinciples for Responsible Investment (PRI)

Principle 6: We will each report on our activities and progress towards implementing thePrinciples.

Principles for Financial Action towards a Sustainable Society(Principles for Financial Action for the 21st Century)
T&D Holdings, Taiyo Life, Daido Life, T&D Financial Life, T&D AssetManagement, and Pet & Family Insurance endorse the Principles for
Financial Action towards a Sustainable Society (Principles for Financial
Action for the 21st Century)*, and have become signatories to thisvoluntary initiative organized by Japanese financial institutions.
*
Principles for Financial Action for the 21st Century were formulated as guidelines forfinancial institutions that wish to fulfill their social responsibilities and play a role in theformation of a sustainable society. The principles were formulated by the Ministry of theEnvironment’s Drafting Committee for Environmental Finance Principles, in which financial
institutions from wide-ranging areas within the sector voluntarily participated.

Sustainability Management

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Governance and Internal Control

Management Control

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T&D Insurance Group Sustainability Report 2023

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10. Principles That the T&D Insurance Group Endorses and Supports

Principles for Financial Action for the 21st Century[Principle 1] Basic stance
Recognizing the responsibilities and roles that financial institutions themselves play in creating asustainable society, we will take the initiative in implementing the best possible activities throughour respective businesses, with the aim of creating positive environmental, social, and economic
impact and mitigating negative impact.
[Principle 2] Contribute to a sustainable global society
We will lead the formation of a sustainable global society by developing and providing financial
products and services that contribute to the creation and development of industries and businesses
through innovation for the steady and just transition of society.
[Principle 3] Contribute to the formation of sustainable local communities
We will lead the formation of sustainable local communities by supporting solutions to environmental, social, and economic challenges based on local characteristics and by improving local inclusiveness and resilience.
[Principle 4] Human capital development
Recognizing the importance of human capital in financial institutions, we will develop human resources capable of thinking and acting independently on environmental and social issues.
[Principle 5] Collaboration with diverse stakeholders
Recognizing the importance of collaboration among financial institutions and other diverse stakeholders in creating a sustainable society, we will not only participate in such efforts, but will also
play a proactive role.
[Principle 6] Build sustainable supply chains
We will proactively address environmental issues such as climate change and biodiversity, as wellas human rights and other social issues, and build sustainable supply chains through constructive
engagement with our business partners and other stakeholders, including those to whom we makeinvestments and loans.
[Principle 7] Information disclosure
Recognizing that activities to enhance social sustainability are a managerial challenge, we will disclose information on our initiatives to a wide range of stakeholders and make constant improvements, based on domestic and international trends and disclosure frameworks.

Task Force on Climate-related Financial Disclosures (TCFD)
T&D Insurance Group has stated its endorsementof the recommendations of the Task Force on
Climate-related Financial Disclosures (TCFD)*, andwe are keen to take action on disclosure of clear
climate-related financial information.
* Task Force on Climate-related Financial Disclosures (TCFD): a task force established in December 2015 by the Financial Stability Board(FSB). It formulated its recommendations for clarified, comparable, and consistent information disclosure regarding the risks and opportunities posed by climate change. These recommendations were announced in June 2017.

RE100
The T&D Insurance Group has joined RE100*, an international initiative that aims to procure 100% of the electricity used in business activities from renewable energy sources. To realize a decarbonized society, the Group
has set a goal of achieving net-zero CO2 emissions by
FY2050. To achieve this goal, the Group has set a new interim target of “60% of electricity consumption
to be derived from renewable energy sources by FY2030.” Taking advantage of its membership in RE100,
the Group will actively promote the transition to renewable sources for the electricity it uses.
* RE100 (Renewable Energy 100%) is an initiative bringing together companies aiming to procure 100% of the electricity used in businessfrom renewable energy. Led by international non-profit the Climate Group in partnership with CDP.

Climate Action 100+
Taiyo Life, Daido Life, and T&D Asset Management are participating in Climate Action 100+, a global investor-led initiative calling forcompanies with high greenhouse gas emissions to respond to climate change through cooperative engagement.

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

Index

23

T&D Insurance Group Sustainability Report 2023

11. Initiatives on Respect for Human Rights(1) Identification of human rights risks

11. Initiatives on Respect for Human Rights

2-16
2-25

The Group refers to major international norms related to human rights and obtains the knowledge ofexperts as we identify and assess potential effects on and risks related to respecting human rights
in terms of our business activities.

2-24
3-3

T&D Insurance Group Human Rights Policy

The Company
Forced labor andhuman trafficking

4Child labor

Inhumane treatment (including harassment)

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

3

Access to remedies

Working hours

Freedom of association and theright to collective bargaining
Employee labor-related problems(wages, treatment of immigrant workers, and privacy)
Human rights issues of local communities(health of surrounding residents, land problems, etc.)

2

0

0

1.4

2.8

4.2

Formulation of the process• Establish the items for confirmation in human rights due diligence.
• Establish particularly important human rights risks as items for priority confirmation.

STEP 3

Human rights assessment• Assess the effects of items for confirmation on formulated important human rights risks.
• Investigate the status of occurrence of human rights issues within the Group.

STEP 4

Implementation of human rights risk mitigation measures and countermeasures• If human rights issues are identified by human rights due diligence, the Group will formulate andexecute prevention/mitigation measures and remedial measures for the relevant human rights risks.

* Recently, STEP 2 Formulation of the process and STEP 3 Human rights assessment have been implemented as human rights due diligence covering the period up to March 31, 2023.

7

T&D Insurance Group human rights risk map (business partners and investment and loan recipients)
5

Responsible mineral procurement
and other high-risk situations

Health of surrounding residents(including access to water)

Investment and loan recipientsChild laborChild labor

4

Severity

STEP 2

5.6

Possibility of occurrence

Based on the T&D Insurance Group Human Rights Policy, the Group implements human rights due diligence to identify any negative effects that its business activities have or could potentially have on humanrights and to prevent or mitigate such effects.

STEP 1Discrimination

Access to financial services

Business partners

Commitment• The Group has established the T&D Insurance Group Human Rights Policy, which clearly states that
the Group respects internationally recognized human rights norms and implements human rights
due diligence.

Rights to privacy (customers)

1

Human rights due diligence

Initiatives on Respect for Human Rights: Overall process

Access to remedies

Providing responsible financial services
Occupational health and safety

For more information, please see our website.
WEB

Customers

5

Severity

The T&D Insurance Group CSR Charter calls for “Respect for Human Rights,” and the Group promotes
business activities that respect the human rights of all executives and employees of the Group and all
stakeholders.
As a concrete action, we established the “T&D Insurance Group Human Rights Policy,” which expresses the Group’s views on respect for human rights. The Policy was formulated in accordance with
the Guiding Principles on Business and Human Rights, a standard of conduct for all nations and companies developed by the United Nations Human Rights Council.
The Group respects human rights and does not permit discrimination on the basis of race, skin color,
gender, sexual orientation, gender identity, language, religion, politics, beliefs, nationality, social origin,wealth (or lack thereof), birthplace, disabilities, or any other characteristic for any reason. In addition,
we do not tolerate any form of harassment, and we strive to ensure a safe and comfortable workplaceenvironment that is free of harassment.

T&D Insurance Group human rights risk map (the Company and customers)

Forced labor and human trafficking
Occupational health and safety

Large-scale resident relocation(including lives and livelihoods)

Discrimination
Discrimination
Freedom of association and theright to collective bargaining

Human rights issues that occur inother high-risk situations in the
supply chain(responsible mineral procurement, etc.)2

Human rights violations by security personnel, etc.
and violations of the human rights of human rights activists

10

Occupational health and safety

Access to remedies

3

Human rights issues of local communities in the supply chain(land, access to water, rights of indigenous people, etc.)

0

1.4

Access to remedies

Forced labor and human trafficking

2.8

Freedom of association and theright to collective bargaining
Land problems and rights ofindigenous people
Employee labor-related problems (inhumane treatment(including harassment), working hours, wages,
treatment of immigrant workers, and privacy)
Employee labor-related problems (inhumane treatment(including harassment), working hours, wages,
treatment of immigrant workers, and privacy)

4.2

5.6

7

Possibility of occurrence* Here, access to remedies refers not to risks resulting from the occurrence of issues but rather to risks resulting from the inability to rectify
or remedy negative effects due to a lack of access. Because the properties of such risks differ from those of other issues, we assessthem by using the method below.
Severity:
Because the severity due to the inability to access remedial measures is the same as the severity of each human rights issue that caused
the need for such measures, to calculate the severity, we weight the field severity of every issue according to its possibility of occurrence
and then find the total.
Possibility of occurrence:
The value found by assessing and weighting the Group’s situation in terms of (1) the Company’s workers, (2) customers, (3) business partners’ workers, (4) investment and loan recipients’ workers, and (5) local communities (local communities in each area).

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

Index

T&D Insurance Group Sustainability Report 2023

11. Initiatives on Respect for Human Rights(2) Implementation of human rights due
diligence and confirmation results

Human rights management structure(human rights due diligence)

1

2

Harassment occurrence situation (fiscal 2022)
Number of confirmed targets

The number of cases of harassment in fiscal
Number of harassment-related
112
2022 is shown on the right.
consultations received*
The Group handles reports and consulNumber of incidents certified
9
as harassment
tations related to harassment via the T&D* Total from all reception desks
Insurance Group Helpline—which was established as an internal reporting system—as well
as Harassment Consultation Desks established at the three life insurance companies, etc.
In response to reports from and consultation with employees regarding harassment and various
other human rights problems, we strive to provide remedies to victims and prevent recurrence. If we
identify an act that is in violation of laws and ordinances or internal rules as a result of our survey, we
might deal with the problem based on employment regulations.
* For details on our whistleblower system, see Whistleblower System on P.106.

Items for priority confirmation:
Excessive working hours
The occurrence of more than 80 hours of
non-statutory work per month is on a decreasing trend, and no major human rights

Over 80 hours per month of non-statutory
work (total number of people)
Non-statutory
work of over 80
hours per monthFiscal 2020

Fiscal 2021

Fiscal 2022

27
people20
people18
people* T&D Holdings and seven directly owned subsidiaries

12. External Evaluation

issues are occurring. To prevent excessive working hours, the Group promotes initiatives in line withthe situation of each company.

T&D Holdings Board of Directors
The Group exercised human rights due diligenceat the Company, its directly owned subsidiaries,
and its consolidated subsidiaries covering the peGroup SDGs Committee
riod up to March 31, 2023.
During our due diligence, we comprehensiveSecretariat (HD Sustainability Promotion Department):
Report results to the Committee*
ly confirmed human rights problems, including
the development situation of our human rights
Sustainability and planning departments of each company:
Direct the exercise of due diligence and tabulate results*
awareness-raising promotion system, the situation of any actions taken to prevent discrimination
Relevant departments at each company: Exercise due diligenceagainst workers in the workplace, and the confirmation situation of any human rights problems*1 Due diligence results are also coordinated with the Group
Compliance Committeethat should be considered in the supply chain or*2 The results of each company’s due diligence are reported
to the board of directors of each company as appropriate
for investment and loan recipients. This time weprioritized the confirmation of the Company’s harassment and excessive working hours as particularly important human rights risks.
As a result of this human rights due diligence, we have confirmed that no serious human rights
issues requiring correction have arisen in the Group’s business activities. In addition, we also confirmed that problems have generally not arisen regarding the status of consideration for human rights
in our business activities in Myanmar.

Items for priority confirmation:
Harassment

24

Main initiatives to limit excessive working hours• Implementing measures that include No Overtime Day/Go Home Early Day, automaticallyshutting down computers used for work, and a work interval system• End-of-month overtime simulations to alert both employees who are likely to work excessive
hours and their supervisors• Ensuring that human resource divisions and other divisions understand whether there are any
employee-related, systemic, or other issues, analyzing such issues, and pursuing initiatives
as necessary
Going forward, we will continue to exercise human rights due diligence in order to verify the status of
the Group’s response to human rights issues, confirm whether there are any issues, and report theresults to the Group SDGs Committee on an annual basis. The contents of reports to the committee
will be reported to the Board of Directors of T&D Holdings and used to facilitate collaboration with
the Group Compliance Committee. If human rights issues are identified during human rights due
diligence, we will take measures to resolve them.

(3) Human rights education sessions
The T&D Insurance Group holds human rights education sessions for all employees more than twicea year on various issues, such as discrimination due to social class or disability, harassment, andLGBT orientation, to deepen employees’ understanding of human rights.
* For details on human rights education sessions, see Human Rights Education on P.57.

12. External Evaluation
Inclusion in ESG Indexes
Evaluation by ESG assessment organizations
The Group makes efforts to disclose understandable and transparent information on its initiatives foraddressing sustainability and ESG issues. The Group is included in major ESG indexes after being highly
evaluated by ESG assessment organizations and index builders in and outside Japan.
* ESG (environment, social, and governance) investment is an approach to select targets not only on the basis of financial data, but also on
initiatives for environmental and social issues, governance, and other considerations.

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

Index

T&D Insurance Group Sustainability Report 2023

12. External Evaluation

International Index
The FTSE4Good Index Series is an internationally trusted major ESG investment
index launched in 2001 by FTSE International, a wholly owned subsidiary of the
London Stock Exchange Group. Our Group was added to the index in 2009.
The MSCI ESG Leaders Indexes is an international stock index built and calculated by a financial services company headquartered in New York, and constituted
by companies with excellent ESG performance. Our Group was added to theindexes in 2023.
MSCI ESG Research logo disclaimer: THE INCLUSION OF T&D Holdings, IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR
INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF T&D Holdings, Inc. BY MSCI OR ANY OF ITS AFFILIATES.
THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF
MSCI OR ITS AFFILIATESJapan Index
It is an index newly developed by FTSE in 2017 that consists of selected
Japanese companies with excellent environmental, social, and governance(ESG) performance. Our Group has been included in the index since it was firstdeveloped.
It is an index newly developed by FTSE in 2022 that consists of selected
Japanese companies with relatively excellent environmental, social, and governance (ESG) performance in each sector. Our Group has been included in theindex since it was first developed.
It is an index newly developed by MSCI in 2017 that consists of selected stocks
with relatively high environmental, social, and governance (ESG) ratings. Our
Group has been included in the index since it was first developed.
It is an index newly developed by MSCI in 2017 that consists of selected stocks
with excellent gender diversity in their industries. Our Group has been includedin the index since it was first developed.
As of July 1, 2023

25

13. Support Measures for Young People

13. Support Measures for Young People
Supporting the studies of ambitious and capable students (donations to the Japan Student
Services Organization)
T&D Holdings made donations to the Japan Student Services Organization (JASSO) to help ensure thatthe young people who represent Japan’s future do not give up on continuing their education for financial
reasons, such as damage to the housing of students or those who financially support them due to natural disasters, etc.
JASSO provides equal educational opportunities to all students. It also offers comprehensive support for all kinds of student support projects in order to contribute to encouraging international student
exchanges and enhancing support for students with disabilities, etc. at universities and other forms ofhigher education.

Special sponsorship of the Nikkei Social Business Contest(contributing to social business)
The T&D Insurance Group is a special sponsor of the Nikkei Social
Business Contest held by Nikkei Inc. The contest aims to promote thehealthy growth and greater awareness of social business and to increase
the number of players who are willing to engage in it. Through our sponsorship of this contest, we hope to support the next generation of leaders
who are willing to take on social issues and create value for society inorder to contribute to the development of a sustainable society together.

Supporting young entrepreneurs and contributing to social business(sponsorship of musbun, Inc.)

Fiscal 2022

For the purpose of supporting young entrepreneurs and social business,
the Group has begun sponsorship of musbun, Inc., which won the student category prize in the FY2021 (5th) Nikkei Social Business Contest.
This company supports the matching of students who wish to get involved in welfare activities with welfare providers who want to increase
their points of contact with students.

• Ministry of Economy, Trade and Industry / Listed as a Health and Productivity Management Organization- White 500

Sponsorship of the FDSF Global Conference 2023 (Aiming to Create a Sustainable Future)

Major Awards, Commendations
The Group’s efforts for addressing CSR and ESG issues have been highly evaluated by society, and theGroup has received various awards and commendations.

•
Research Institute for Environmental Finance / Received Excellence Award at the 8th Sustainable
Finance Awards• HDI-Japan / Received the highest rank of “3 Stars” in HDI-Japan’s 2022 “Quality Rating” benchmark forthe telephone support desk (point of contact for customers and agents)• Japan Institute of Information Technology / Received IT Award (Customer/Business Function Area) at the2022 (40th) IT Awards• Japan Investor Relations Association / Received the Empathy! award at the 2022 IR Awards

The Group endorses the activities of the Future Design Initiative by
Science and Finance (FDSF), and we therefore decided to sponsor FDSF
Global Conference 2023, which is aimed at creating a place for stakeholders to meet and deepen their mutual understanding in order to seamlessly pursue initiatives aimed at creating economic and social value throughsustainable finance and contribute to updating society.