Recent Developments on Sustainability Priority Themes
T&D Insurance Group will work to solve social issues surrounding each of the four
sustainability priority themes.
Priority Theme 1 Promote Healthy and Abundant Lives for People- We are committed to providing optimal, high-quality products and services
that address social issues and meet diverse customer needs to promotehealthy and abundant lives.
Provision of Products and Services Best Suited to Customer Needs➣ Taiyo Life has further enhanced its products and services by launching Simplified
Cancer Diagnosis Insurance and adding it to existing covered contracts of Decease
Preventive Examination cash back service. Taiyo Life will maintain its commitment
to "helping as many customers as possible live healthy and long lives" bymeeting a wide range of customer needs.
➣ Daido Life has introduced insurance products to support the health andproductivity management of SMEs, such as Kaisha Minnade KENCO+, and a Web
Community “Dodai?” to provide opportunities for corporate managers to share
their opinions and concerns. Daido Life will continue its commitment to“becomingareliablepartnerforSMEstodelivervaluebeyondexpectations” by solving social issues faced by SMEs.
➣ T&D Financial Life is committed to “making the future lives of customers
richer and safer” by providing products and services that satisfy asset
management needs in the era of a 100-year lifespan.
➣ Pet & Family Insurance is committed to “creating abundant and peaceful lives
for people and pets” by providing products and services that protect the healthof pets.

Priority Theme 2 Provide Workplace Environments that Enable Diverse Human
Resources to Participate Actively- T&D Insurance Group will promote business activities that respect the humanrights of all stakeholders and work to create an environment in which a diverse
workforce can thrive.
Response to Human Rights Issues➣ We implement “human rights due diligence” to appropriately respond tovarious human rights issues (e.g. long working hours, harassment, and humanrights violations in overseas workplaces). In fiscal 2023, the Group referred tomajor international norms related to human rights and obtained the knowledgeof experts to identify and assess “potential effects on and risks related torespecting human rights” in terms of its business activities.

Investment in Human Capital and Enhancement of Information Disclosure➣ In accordance with the Basic Group Policy on Human Resources, which defines
the personnel management policy of the Group, T&D Insurance Group works toengage and develop employees, promote workplace diversity, and create acomfortable working environment.
➣ T&D Insurance Group conducts and publishes the outcome of employee
engagement score to assess how motivated and engaged employees feel atwork, how proud they feel about being a part of their company, how responsible
they feel for their company, how satisfied they feel about their own achievements,and how they work on their own initiatives.
➣A stock delivering scheme was introduced with the aim of further raising
employees' awareness of company performance and share price appreciation,
thereby motivating them to contribute to the enhancement of medium- to longterm corporate value. This in turn is expected lead to the further the Group'scorporate value.
➣ T&D Insurance Group actively discloses information on Group companies,including their human capital data.
Working Environment Improvement➣ T&D Insurance Group has established a framework for employees to work indiverse ways by creating a favorable environment for employees to work fromhome and making shared offices available for more employees in more places.

Priority Theme 3 Contribute to Global Environment Conservation and Climate
Change Mitigation and Adaptation- T&D Insurance Group believes that it should play a very important role inprotecting the global environment and combating global warming. The Grouphas developed T&D Insurance Group Environmental Policy (https://www.tdholdings.co.jp/en/csr/csr-policy/environment.html)

todemonstrateits

commitment to environmental protection and set specific goals for greaterachievements.
Efforts to Achieve Net Zero➣To contribute to climate change mitigation and adaptation, the T&D InsuranceGroup has set a long-term goal of reducing its CO2 emissions to net zero. In April
2022, the Group joined “RE100,” a global initiative committed to matching 100%of the electricity used across business operations with electricity produced fromrenewable sources, and has been making active use of renewable energy
resources to “cover 60% of all electricity consumption with renewables by fiscal2030.” In April 2023, 100% of the electricity used at the headquarters buildingsof T&D Holdings, Taiyo Life, and Daido Life was produced from renewable energy.

We will continue to proactively convert our electricity consumption to renewables.

➣These initiatives toward decarbonization have enabled the Group to make progressin reducing CO2 emissions at a pace that exceeds its targets. We have reviewed
our CO2 emission reduction targets as follows, to contribute to the realization ofa net-zero society as a Group and to express our commitment.
Subject

Before revision

After revision

Own emissions

・FY2025：Reduction of 40%

・ FY2025 ： Reduction of（Scope1 and 2）（compared to FY2013）40%（compared to FY2013）
・ FY2030 ： Reduction of・FY2050：Net zero70％
（compared to FY2013）
・FY2040：Net zero

Investees and・FY2030：Reduction of 40%

・ FY2030 ： Reduction ofborrowers（compared to FY2020）

50%(Scope3/category15）*Subjects are stocks,（compared to FY2020）

corporate bonds, and*Subjects are stocks,

financing of domestic listed

corporate bonds, andcompanies.

financing of domestic listed

・FY2050：Net zerocompanies.

・FY2050：Net zero
Advanced Information Disclosure Based on TCFD Recommendations➣ T&D Insurance Group joined the Task Force on Climate-related Financial
Disclosures (TCFD) in June 2017 and has since been striving to disclose
information based on TCFD recommendations. In order to understand theimpact of climate change on the Group and the prospects for the continuity of its
business under such impact, the Group has performed a scenario analysis toassess the impact of rising mean temperature on the Group. For “transition risks,”
we quantitatively analyzed the impact of the transition to a low-carbon,
decarbonized society on our investment and financing portfolios. For "physicalrisks," we quantitatively analyzed the impact on insurance income andexpenditures by conducting future estimates of the number of victims due toflooding and the number of heat stroke patients hospitalized and fatalities. Basedon the results of our analysis, we will continue to enhance our information
disclosure in accordance with TCFD recommendations.

Biodiversity Conservation, Etc.
➣ T&D Insurance Group will explore opportunities to join or undertake newinternational initiatives and information disclosure standard, and develop detailed
action plans in order to disclose information on its zero carbon initiatives, reduce
its CO2 emissions, and contribute to biodiversity conservation. Taiyo Life has
established "Taiyo Seimei no Mori" (the Forests of Taiyo Life) in two locations inJapan and is promoting forest conservation activities by volunteers including
employees. In fiscal 2023, the "Taiyo Seimei Kutsuki no Mori (Kutsuki Forest ofTaiyo Life)" was certified as a 30by30 "Natural Symbiosis Site" (an area where
biodiversity is being conserved through private sector initiatives, etc.).

Priority Theme 4

Invest to Help Build a Sustainable Society- As a responsible institutional investor, T&D Insurance Group contributes tosolving environmental, social, and governance (ESG) issues throughinvestment and financing activities.
ESG Integration➣ In

accordance

withT&D

Insurance

GroupESG

Investment（ https://www.td-holdings.co.jp/en/csr/csr-policy/esg.html ） ,Policy
T&D

Insurance Group will strive to increase long-term investment returns and fulfill its
mission as an institutional investor to create a sustainable society by taking into
account not only financial information relating to borrowers and investees but also
assessment results relating to ESG and other non-financial factors when financing
and investing in stocks, bonds, securities, real estate, and other assets.
➣ In light of the mission and public nature of the life insurance business, the Grouphas introduced a negative screening methodology to exclude companies andbusinesses that are undesirable from an ESG perspective from the scope ofinvestment and financing.
Specifically, the policy prohibits, in principle, investments in and financing tospecific weapons manufacturing companies (companies that manufacture cluster
bombs, biological and chemical weapons, anti-personnel mines, nuclear
weapons, etc.) and palm oil companies. In addition, the company has a policy of
not making new investments or financing in coal-fired power generation, coalmining, and oil sands businesses, which have a significant impact on climatechange.

ESG Thematic Investment and Financing➣ T&D Insurance Group takes ESG issues into account in making investment andfinancing decisions and focuses its loans and investments on thematic assets tocontribute to creating a sustainable society. The Group will assess the profitability
and risk of each investment project to build up surplus funds.
ESG thematic investment andfinancing balance (100 million yen)

9,600
8,400
6,400

Major projects
Investment in “green bonds” that contribute to solving
environmental issues－To cover the cost of renewable energy generation
projects and energy efficiency projects conducted by
local governments and operating companies
Investment in “sustainability bonds” issued by theuniversity corporations－ To cover the cost of infrastructure and campus
development projects to realize the vision of the newnational university corporation

FY2021

FY2022

FY2023

Investment in “social bonds” that contribute to supporting
developing countries, etc.
－To cover the cost of education and employment support
in developing countries, and for initiatives to resolve
and support issues such as gender equality

Dialogue (Engagement) with Investees and Borrowers➣ Based on the Principles for Responsible Institutional Investors (Japan’sStewardship Code), T&D Insurance Group is committed to supporting themedium- to long-term business growth of investees and borrowers throughconstructive dialogue (engagement) with them.
Efforts to Help Investees and Borrowers Achieve Net Zero CO2 Emissions➣ Aiming to contribute to the reduction of CO2 emissions of society as a whole, wehave set targets to reduce the CO2 emissions of investees and borrowers tonet zero by fiscal 2050 and by 50% (from the fiscal 2020 level) by fiscal
2030 (as mentioned above, the interim target level was raised from 40% to50%).
➣CO2 emissions based on our investment and financing portfolio amounted to1,989,000 tons at March 31, 2023. On a per-unit basis, which is how our interim
targets toward net zero are defined, emissions were 7,600 tons per million yen,a 33.3% reduction from the fiscal 2020 level.
➣ The T&D Insurance Group will continue to support the transition of its investment
and loan recipients to decarbonization through dialogue, and will continue ourefforts to support financing for investment in ESG bonds such as green bonds andtransition finance.