CREATE VALUE FOR PEOPLE AND SOCIETIES.

Sustainability Report2023

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.
T&D Insurance Group’s Management Vision

Sow happiness,make change with boldness

Contents
Message from the President............................................................ 2
T&D Insurance Group Sustainability Statement............................ 4

Sustainability Report 2023

Published in
Scope of report

Priority Theme 1......................................................................... 32
Promote Healthy and Abundant Lives for All People
Priority Theme 2......................................................................... 54
Provide Workplace Environments that Enable All People toParticipate Actively
Priority Theme 3......................................................................... 68
Help Mitigate and Adapt to Climate Change
Priority Theme 4......................................................................... 79
Invest to Help Build a Sustainable Society
Social Activities.......................................................................... 88
Governance and Internal Control............................................. 92
Management Control............................................................... 102
Third-party Opinion...................................................................... 108
Index.............................................................................................. 109

2-3

November 30, 2023 (Previous Issue: November 30, 2022; Next Issue: Scheduled for November 2024)
All companies and foundations in the T&D Insurance Group* Contents of this report are selected taking into account the importance of each item, and we indicate the scope of each
item as necessary.
Please refer to “Scope and Calculation Methods of Environmental Performance Data and Group-wide Targets andResults” on P.76 for the scope of environmental performance data and Group-wide targets and results.

Sustainability Management........................................................ 6
Organizational Profile................................................................ 26

2-2

Report Publication Information

Period covered

April 2022 to March 2023 (annual)* Also includes reports on some significant activities and events having occurred in and after April 2023.

2-3

Contact Information
Sustainability Promotion Department, T&D Holdings, Inc.
7-1, Nihonbashi 2-chome, Chuo-ku, Tokyo 103-6031, Japan

E-mail: csr@td-holdings.co.jp

Regarding Third-party Opinion
As representative director of the Kamakura Sustainability Institute, Ms. Ai Aonuma has extensive knowledge onsustainability. She was asked to offer her opinion and advice on the contents of the Sustainability Report 2023 froma third-party standpoint.

Editorial Policy
The T&D Insurance Group has prepared this report to provide a wide range of stakeholders with a picture of theGroup’s approach to sustainability, in addition to its sustainability initiatives. For fiscal 2023, the Group has created
two different reports in order that a wider range of stakeholders can learn about the Group’s initiatives. In addition to the Sustainability Report 2023, we have released a digest edition of the Sustainability Report 2023. The
Sustainability Report 2023 comprehensively covers the management, social, and environmental initiatives being
promoted by the Group in conformity with GRI standards (For details, please refer to the “Index”). Further, in thedigest edition, we present the Group’s approach to sustainability and the main sustainability initiatives taken by theGroup in an easy-to-understand format. The report is written in a more casual, easy-to-read manner with a reduced
number of pages and many photographs and illustrations.

Overview of the Digest Edition of Sustainability Report 2023
T&D Insurance Group’s Corporate Philosophy/T&D Insurance Group’s Management Vision/Group Structure
Message from the President
the T&D Insurance GroupT&D Insurance Group Sustainability Statement/CSR & Sustainability Trajectory of

Sustainability Advisory Committee

Priority Theme 1 Promote Healthy and Abundant Lives for All People
Priority Theme 2 Provide Workplace Environments that Enable All People to Participate Actively
Group Employee Dialogue

Priority Theme 3 Help Mitigate and Adapt to Climate Change

Priority Theme 4 Invest to Help Build a Sustainable Society

Social Activities

External evaluation/Principles That the T&D Insurance Group Endorses and Supports

2

T&D Insurance Group Sustainability Report 2023

Message from the
President

Addressing Social Issues
through Our Business andCreating Shared Value to“Sow Happiness in the World”

2-22—SDGs Management and Creation of Value—
Hirohisa Uehara
Representative Director and President of T&D Holdings, Inc.

 roup Long-Term Vision: SDGs Management
Gand the Creation of Value
Under the banner of the Group Long-Term Vision “Try & Discover2025 – In Pursuit of the Happiness of All Stakeholders,” which
demonstrates our medium-to long-term goals and strategic policies to achieve them, we defined the T&D Insurance Group’s
Management Vision as “Sow happiness, make change with boldness,” and we set five primary themes to work on in order to achieve
this vision. Among them, we highlight SDGs management and creation of value. We have established quantitative non-financial KPIs tomeasure the creation of social value, and we are actively pursuing
the creation of shared value that achieves a balance between economic and social value.
As a Group whose core business is life insurance, we are committed to sustainable business practices that offer long-term peaceof mind and safety to our customers through our products and services. This is the essence of our operations. Additionally, our asset

management operations as an institutional investor are closely tiedto economic development and the achievement of a sustainable society, making it a business that has a significant public relevance.
The Group recognizes that it bears a responsibility to contribute tosociety through these operations.

 ddressing Climate Change: The Significance ofA
the Life Insurance Business
In May 2023, the classification of COVID-19 shifted from “Category
II-equivalent” to“Category V,” marking a significant milestone forboth social life and economic activity. Throughout this period, eachlife insurance company within the Group has broadened its assurance provisions related to COVID-19 for customers in an effort
to make contributions through our core business. We have also
made payments, including benefits, to those who were unable toreceive essential hospital treatment and instead recuperated athome or other accommodations, treating these cases the same

as hospitalized patients. While the Group champions to “promotehealthy and abundant lives for all people” through the delivery of life
insurance products and services as one of its sustainability priority
themes, through recent initiatives, we have fulfilled our societal duty
by providing protection for unforeseen circumstances, which is at
the heart of life insurance.
The progression of climate change and the loss of biodiversity
have been identified as factors that could increase the risk of global
outbreaks or pandemics such as that of COVID-19. Should anotherpandemic arise in the future, the Group acknowledges the potential
financial impact that may result from increased payments of hospitalization benefits. Traditionally, the Group has determined to help
mitigate and adapt to climate change as one of its sustainability priority themes, and we have forged ahead with initiatives aimed at
decarbonization. However, we now recognize the need to acceleratethese efforts upon incorporating biodiversity conservation perspectives as well.

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T&D Insurance Group Sustainability Report 2023

Message from the President
In pursuit of this goal, the Group is committed to achieving
net-zero emissions by 2050, with a focus on reducing CO2 emissions produced by both the Group and those we invest in and finance. With regard to our own emissions, we have joined the international initiative RE100, which involves aiming to source 100% of
the electricity used in business activities from renewable energy.
Given the nature of our business as a Group whose core business islife insurance, the majority of our CO2 emissions stem from power
consumption. We are further promoting the use of power derived
from renewable sources and are fast-tracking reductions in CO2emissions, with a particular focus on fiscal 2025, the final fiscal yearof the Group Long-Term Vision.

Moreover, as a responsible institutional investor, we have set
interim goals to be achieved by FY2030 concerning the reductionof CO2 emissions from our investment and financing recipients, andwe are actively engaged in making this reduction a reality. To achievethese goals, we will encourage our investment and financing recipient companies to advance their decarbonization efforts through engagement, as well as provide support via initiatives such as green
bonds and transition financing.
In addition to focusing on decarbonization, we want to have apositive impact on society through our business activities. To thisend, in 2023, we established the Social Impact Study Subcommittee
to begin specific considerations. The life insurance business, which

CSR & Sustainability Trajectory of the
T&D Insurance Group

Converted 100% of electricity used at ourhead office building to renewable energy• Established T&D Insurance Group Sustainability Statement• Joined RE100

2023
UN Global
Compact signed
Group CSR Committee
established•G PIF begins ESG investment• TCFD recommendations

Principles for
Financial Action forthe 21st Century

2020
2019
2017

UN Principles
for Responsible
Investment (PRI)
signed/Taiyo Life

2016
2015
2014

T&D Holdings
established

2012
2011

CSR reportissued

2007
2006

2005
2004

Group CSR
Charter enforced• Formulated the Group
Long-Term Vision• Established the GroupESG Investment PolicyGroup CSR Committee
renamed to the Group
SDGs Committee• Paris Agreement
adopted• SDGs agreement

UN Principles for
Responsible Investment(PRI) signed/T&D AssetManagement

2022
2021

UN Principles for
Responsible Investment(PRI) signed/Daido Life•E
 stablishment of Climate Change
Risk Subcommittee•E stablishment of Group Human
Rights Policy

is the Group’s core business, is one with significant public relevancethat embodies the principle of mutual assistance. Through our business, we will exert a positive influence on the world and contributeto the achievement of a sustainable society.

Human Capital Management Initiatives
One of the Group’s sustainability priority themes is to “provide workplace environments that enable all people to participate actively,” andwe are taking steps to enhance our human capital. Under our humanresources development policy of nurturing autonomous individuals
who think for themselves, take proactive action, and achieve theexpected results, we are promoting the development of a leadershipbase to drive the Group’s growth, as well as providing educational
opportunities for growth and supporting active roles for female employees. We will adopt a multi-dimensional, ongoing approach to create an environment where all employees, regardless of gender, canwork comfortably and with enthusiasm. This includes efforts suchas promoting diversity, practicing health management, and enhancing work-life balance. In the life insurance business, which is theGroup’s core business, improving individual employee engagement
directly leads to improving the Group’s performance. We will continue to enhance our human capital management to achieve growth for
executives and employees as well as the Group.
In addition, in an effort to respect human rights, we have established the T&D Insurance Group Human Rights Policy and conduct human rights due diligence every year. Specifically, to maintainand improve a workplace environment where employees can fully
utilize their abilities, we have identified long working hours and harassment as key areas for human rights due diligence, and we are
striving to identify and correct human rights issues.

The T&D Insurance Group Vision
We believe that our commitment to SDGs management and addressing social issues will lead to us creating shared value and sowing happiness in the world. We, the T&D Insurance Group, aim to be
an insurance group that grows sustainably alongside society, andwe will continue to advance toward this goal step by step.

4

T&D Insurance Group Sustainability Report 2023

T&D Insurance Group
Sustainability Statement
We have established and published the T&D Insurance Group Sustainability Statement,
which expresses our stance on sustainability issues.

1 Basic Concepts

Group’s Management Vision/Group Long-Term Vision

With life insurance as its core business, T&D Insurance Group puts sustainability at the heartof its business, providing products and services that deliver safety and security to customers.
In addition, as an institutional investor, the Group is engaged in asset management, which ishighly public in nature and closely linked to economic development and sustainable society
building. The Group believes that it has a responsibility to contribute to society through thesebusinesses.
In May 2021, T&D Insurance Group developed a Group Long-Term Vision towards fiscal
2025 under the Management Vision: “Sow happiness, make change with boldness.” The
Group Long-Term Vision identifies SDGs management and creation of value as one of thechallenges to the Group’s Growth Strategy and priority themes and sets new non-financial
KPIs to quantitatively measure the created social value. The Group believes that its efforts topromote SDGs management and solve social issues will lead the Group to achieve its goalsof creation of shared value and sowing happiness in the world.
We, T&D Insurance Group, will take steady steps to become a sustainable insurancegroup that grows along with society.

(Customer satisfaction/Employee
engagement score*/CO2 emissions)* The name was changed from "Employee satisfaction" to "Employee engagement score" in the fiscal year ending March 31, 2024.

5

T&D Insurance Group Sustainability Report 2023

T&D Insurance Group Sustainability Statement

2 Sustainability Priority Themes
T&D Insurance Group has highlighted challenges in the area of sustainability related to its businesses as issues of importance to society and of relevance to its businesses, selected from the 17
goals and 169 targets of the SDGs, and framed these social issues under the four sustainability priority themes as follows. The Group Long-Term Vision “Try & Discover 2025” also articulates how
to tackle these themes in business activities.

Priority Theme 1 Promote Healthy and Abundant Lives for All People

Priority Theme 3 Help Mitigate and Adapt to Climate Change

We will contribute to the sustainable growth of society and to the solution of social issues

We will contribute to climate change mitigation and adaptation and work to create a net

through the insurance business by offering high-quality, optimal products and services thatzero society and conserve biodiversity through our own business activities as a provider ofmeet customer needs.

insurance products and services to customers.

Our Target

Our Target• Increase customer satisfaction year-on-year* until fiscal 2025
For details, please see

P.32• Reduce our CO2 emissions by 40% by fiscal 2025•R educe our CO2 emissions to net zeroby fiscal 2050
For details, please see

P.68

Priority Theme 2 P rovide Workplace Environments that Enable All People toParticipate Actively

Priority Theme 4 Invest to Help Build a Sustainable Society

To respect the human rights of all people, respect the personality and diversity of our employ-

As a responsible institutional investor, we will secure stable long-term investment income

ees, we ensure a healthy and safe working environment, and develop our human resources.

and contribute to the realization of a sustainable society through investment activities under-

Our Target

taken in consideration of the environment, society, and corporate governance, with the aim• Increase employee engagement score year-on-year* until fiscal 2025
For details, please see

P.54

of growing sustainably in partnership with society.
Our Target• Reduce the CO2 emissions of investees andborrowers by 40% by fiscal 2030
• Reduce the CO2 emissions of investees andborrowers to net zero by fiscal 2050
For details, please see

P.79* Irrespective of the targets described here, we will aim to achieve each theme in a comprehensive sense.

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

Index

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

Index

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

Organizational Profile

Priority Theme

1 2 3 4Social Activities

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

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

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

Index

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

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

22

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.

Sustainability Management

Organizational Profile

Priority Theme

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Governance and Internal Control

Management Control

Third-party Opinion

Index

26

T&D Insurance Group Sustainability Report 2023

Organizational Profile

1. Organizational Profile
1-1

Outline of the T&D Insurance Group’s Business

2-6

The T&D Insurance Group is a unique grouping consisting of a core set of domestic life insurance businesses pursuing market-specific strategies together with other businesses with an affinity to the life insurance market,
including a closed book business, an asset management business, and a pet insurance business, all under T&D Holdings, a holding company. This organization allows Group companies to work to fully exploit the strengths
and uniqueness of their respective business models, in support of their customers’ lives and businesses.

Group Structure as of July 31, 2023

Household Market

Small and Medium Enterprises Market

A holding company consisting of 26
subsidiaries and affiliated companies
that serves as the cornerstone of the
T&D Insurance Group

Investment Business

Ordinary
revenues

Ordinaryloss¥ 3,214.1¥ 74.1billionbillionIndependent Insurance Agent Market

Building a Client BaseUsing Digital Tools

Net less*

Adjusted
profit*Number of
employees¥ 132.1¥ 90.220,016billionbillion* Net loss attributable to owners of
the parent* Group Adjusted profit is calculated
by reflecting the adjustment of
temporary valuation gains or losses
resulting from market fluctuations on
accounting etc., to profit attributableto owners of parent.

Pet & Family Insurance
Asset Management Business

Pet Insurance Business

Main Group Companies Other Than Above
Insurance & Insurance-related Businesses

Investment-related Businesses

Administration-related Businesses

T&D Risk Solutions Co., Ltd.

T&D Lease Co., Ltd.

T&D Information System Ltd.

T&D Confirm Ltd.

Taiyo Credit Guarantee Co., Ltd.

Nihon System Shuno, Inc.

Toyo Insurance Agency Co., Ltd.

Alternative Investment Capital, Ltd.

Zenkoku Business Center Co., Ltd.

Daido Management Service Co., Ltd.

T&D United Capital North
America Inc.

Thuriya Ace Technology Company
LimitedTaiyo Life Aging Society Institute
Capital Taiyo Life Insurance Limited
FGH Parent, L.P.

Figures for revenues and losses are from fiscal 2022 and the number of employees is as of March 31, 2023

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

Index

27

T&D Insurance Group Sustainability Report 2023

1. Organizational Profile

1-2

T&D Insurance Group Companies and Foundations

2-1

Organizational Structure
The T&D Insurance Group consists of T&D Holdings, 21 consolidated subsidiaries and 5 affiliated companies that are engaged in life insurance and other businesses as described below.
( : Consolidated subsidiaries: Equity method affiliate companies)
T&D Holdings, Inc.

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

Insurance

Taiyo Life Insurance Company

https://www.taiyo-seimei.co.jp/

Daido Life Insurance Company

https://www.daido-life.co.jp/

T&D Financial Life Insurance Company

https://www.tdf-life.co.jp/

Pet & Family Insurance Co., Ltd.

https://www.petfamilyins.co.jp/

Capital Taiyo Life Insurance Limited
Insurance & Insurance-related
Businesses

Insurance-related

Investment Management and Advisory, etc.

Investment-related Businesses

Administration-related Businesses

FGH Parent, L.P.

https://fortitude-re.com/

All Right Co., Ltd.

https://www.all-right.co.jp/

T&D Risk Solutions Co., Ltd.

https://www.tdrs.co.jp/en/

T&D Confirm Ltd.
Toyo Insurance Agency Co., Ltd.

https://www.sonpo.co.jp/toyohkdaiko/

Daido Management Service Co., Ltd.

https://www.dms-hp.co.jp/

Taiyo Life Aging Society Institutehttps://www.taiyo-institute.co.jp/

T&D Asset Management Co., Ltd.

https://www.tdasset.co.jp/en/

T&D United Capital Co., Ltd.

https://www.tduc.co.jp/en/

T&D United Capital North America Inc.
Other Investment-related

Administration-related Businesses

T&D Lease Co., Ltd.

http://www.td-lease.co.jp/index.html

Taiyo Credit Guarantee Co., Ltd.

https://www.taiyo-sinyo-hosyo.co.jp/

Alternative Investment Capital, Ltd.

https://www.aicapital.co.jp/en/

T&D Information System Ltd.

https://www.td-system.co.jp/

Nihon System Shuno, Inc.

https://www.nss-jp.com/

Zenkoku Business Center Co., Ltd.

https://www.zbc-jp.com/

Thuriya Ace Technology Company Limited
Foundations* Includes main Group companies and foundations as of July 31, 2023.
* Capital Taiyo Life Insurance Limited and Thuriya Ace Technology Company Limited are located in Yangon, Myanmar.
* FGH Parent, L.P. is located in the British overseas territory of Bermuda.
* T&D United Capital North America Inc. is located in New York state, United States.

The Taiyo Life Welfare Foundation

http://www.taiyolife-zaidan.or.jp/

Daido Life Welfare Foundation

https://www.daido-life-welfare.or.jp/

The Daido Life Foundation

https://daido-life-fd.or.jp/english/

2-2

2-6

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

Index

28

T&D Insurance Group Sustainability Report 2023

1. Organizational Profile

1-3

Corporate Profile (as of March 31, 2023)

2-1

2-28

T&D Holdings, Inc.
Established

April 2004

Head officelocation

7-1, Nihonbashi 2-chome, Chuo-ku, Tokyo 103-6031, Japan

Capital stock¥207.1 billion

Number of
employees

123

Independentaccounting
auditorErnst & Young ShinNihon LLC

Descriptionof businessInsurance holding company for the T&D Insurance Group conducting the following:• Management control of life insurance subsidiaries and affiliates under the Insurance Business Act and other laws and regulations• Other businesses associated with the above

Taiyo Life Insurance Company

Daido Life Insurance Company

T&D Financial Life Insurance Company

EstablishedFebruary 1948 (Founded May 1893)

Established

July 1947 (Founded July 1902)

Established

July 1947 (Founded April 1895)

Head officelocation

7-1, Nihonbashi 2-chome, Chuo-ku, Tokyo 103-6031,
Japan

Head officelocation

2-1, Edobori 1-chome, Nishi-ku, Osaka 550-0002, Japan
7-1, Nihonbashi 2-chome, Chuo-ku, Tokyo 103-6031, Japan

Head officelocation

1-1, Shibaura 1-chome, Minato-ku, Tokyo
105-0023, Japan

Capital stock¥62.5 billion

Capital stock¥110 billion

Capital stock¥56 billion

Number of
employees

Sales: 9,016
Administrative: 2,337
Total: 11,353

Number of
employees

Sales: 3,577
Administrative: 3,203
Total: 6,780

Number of
employees

263<Taiyo Life’s Business Model><Daido Life’s Business Model><T&D Financial Life’s Business Model>

Households

SMEs

Independent insurance agentsProtection-oriented products covering medical care,nursing care and death security that meet customer needs

Products for corporate risk management(protection against death and disability)

Asset formation and protection-oriented productsthat support affluence and peace of mind

Collaboration with tie-up groups in the SME market

Products offered through independent
insurance agents (financial institutions, insurance shops)

Developing hybrid-style sales that combine
face-to-face and non-face-to-face sales
9,016 in-house sales representatives

Corporate organizations(NFCTA/TPA, etc.)

3,577 in-house sales representatives
1,261 non-life insurance agents

Number of sales agents: 198

13,987 tax(TKC National Federation/local branches of CPTA Associations) accounting agencies
Professional organizations of tax accountants

Industry Association to which the Three Life Insurance Companies Belong: The Life Insurance Association of JapanThe Life Insurance Association of Japan operates with the aim of promoting the sound development and maintaining the reliability of the life insurance industry in Japan and thereby contributing to the improvement of the
lives of the Japanese people.

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

T&D Insurance Group Sustainability Report 2023

Management Control

Third-party Opinion

Index

29
1. Organizational Profile

T&D Asset Management Co., Ltd.

Pet & Family Insurance Co., Ltd.

Established

December 1980

Established

August 2003

Head officelocation

Mita Bellju Building, 36-7, Shiba 5-chome,
Minato-ku, Tokyo 108-0014, Japan

Head officelocation

27-3, Higashiueno 4-chome,
Taito-ku, Tokyo 110-0015, Japan

Capital stock¥1.1 billion

Capital stock¥3.6 billion

Number of
employees

142

Number of
employees

82<T&D Asset Management’s Business Model><Pet & Family Insurance’s Business Model>

Investors

Owners of pets

Providing competitive products and services in a timely manner

Products that cover the cost of veterinary care for pet illness and injury

Number of investment trusts: 254
Number of discretionary investment and advisory contracts: 48

Selling through agents (pet shops, etc.)
290 agents

Pet & Family Insurance

T&D United Capital Co., Ltd.

All Right Co., Ltd.

Established

June 2019

Established

September 2022

Head officelocation

7-1, Nihonbashi 2-chome, Chuo-ku, Tokyo 103-6031,
Japan

Head officelocation

KABUTO ONE 9F WeWork, 7-1, Kabutocho,
Nihonbashi, Chuo-ku, Tokyo 103-0026, Japan

Capital stock¥5.5 billion

Capital stock¥750 million

Number of
employees

42

Number of
employees

18

Descriptionof business

Principal investment and investment management
aimed at diversification and optimization of theGroup’s business portfolio• Closed book business• Other business

Descriptionof business• Providing services in the healthcare and wellnessfield• Planning, development, and sales of service content and products

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

Index

30

T&D Insurance Group Sustainability Report 2023

1. Organizational Profile

1-4

Number of Employees

2-7

Number of Employees (T&D Holdings, Consolidated)
March 31, 2021
Business sector
Insurance & insurance-related businesses

March 31, 2022

(Number of temporary
employees)

March 31, 2023

(Number of temporary
employees)(Number of temporary
employees)

18,354(923)

18,411(882)

18,794(909)

Investment-related businesses

472

(15)

451

(16)

483

(20)

Administration-related businesses

789

(57)

783

(62)

739

(58)
(987)

Total

19,615(995)

19,645(960)

20,016

Male

3,847

(10)

3,829

(9)

3,799

(10)

Female15,768(985)

15,816(951)

16,217(977)

Of which Japan

19,600(995)

19,628(960)

19,982(987)

Of which Asia-Pacific

15

(0)

17

(0)

22

(0)

Of which Europe & North America

0

(0)

0

(0)

12

(0)

* The number of employees shows the number of employed staff excluding executive officers. The number of temporary employees is shown in parentheses as an annual average, which is not included in the number of employees.
* The figures for temporary employees differ from the Financial Report due to the rounding process.

Number of Employees and Number of People Hired by the Group’s Three Life Insurance Companies
Number of employees
Number of employees

Number of employees hired

March 31, 2021

March 31, 2022

March 31, 2023

FY2020

FY2021

FY2022
3,232

17,945

17,963

18,396

3,464

3,090

Male

3,379

3,356

3,352

158

142

167

Female14,566

14,607

15,044

3,306

2,948

3,065

Sales representatives

12,23912,233

12,593

3,181

2,820

2,941

Male

293

290

274

45

38

34

Female11,946

11,943

12,319

3,136

2,782

2,907

Administrative

5,706

5,730

5,803

283

270

291

Male
(Managers)

3,086(2,085)

3,066(2,117)

3,078(2,155)

113

104

133

Female(Managers)

2,620
(454)

2,664
(499)

2,725
(603)

170

166

158

* Managers include head office deputy division managers, assistant officers, and other officers.

2-8

401-1

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

1. Organizational Profile

1-5

Dialogue and Consultations with Labor Unions

2-30

Each of the three life insurance companies in the T&D Insurance Group has an independent labor unionand a collective agreement. On this basis, the companies have proactively discussed with the unions
on a wide range of issues including business management, corporate policies, wages, working hours,
holidays, personnel management systems, fringe benefits and so forth. We believe that a truly meaningful cooperative relationship between employees and company, that is based on the spirit of trustingeach other, can be built only through straightforward discussions based on their respective viewpoints,
and that kind of relationship will motivate employees and bolster the competitiveness of the company.

Labor Unionization of the Administrative Personnel of the Three Life Insurance Companies

Labor unionization rate

FY2020

FY2021

FY2022

80.5%

80.6%

81.9%

2-2

Cooperation with Suppliers31
2. Supply Chain

414-1

Management of Outsourcing of Business Operations
The T&D Insurance Group outsources some business operations to third parties. In order to maintainour management soundness and strengthen our management control capability, we have prepared theadequate management system for outsourcing, specifically by formulating the methodology to selectoutsourcing partners and supervise them. T&D Holdings has formulated an Outsourcing Checklist as apart of the Guidelines for Outsourcing and Detailed Rules on Risk Evaluation for Outsourcing, based on
the Procedural Guidelines for Implementation and Management of Outsourcing. The Group examines
the risk-related issues, and assesses the suitability of each outsourcing partner with covered in the note
respect to the issues including social aspects* such as human rights, labor conditions, and environmental initiatives.
* Social aspects refer to the occurrence of human rights violation, labor problems such as forced labor, excessive work hours, and healthand safety, as well as measures to prevent and mitigate environmental pollution and climate change.

After the commencement of outsourcing, the Group checks the outsourcing partner more than once a
year, monitors the performance of the outsourced operations, and, if necessary, asks for improvements.

2. Supply Chain
2-1

Definition of Supply Chain

2-6

T&D Holdings defines its supply chain as shown in the table below, and works toward widespread sustainability and CSR throughout that supply chain.
Activities
Sales of products andservices

Media
Sales agents

Sales agentsContracting work
Office buildings

ICT systems, consulting, auditing
Buildings

Construction, maintenance, administration of office buildings

Energy consumed

Petroleum refining and distribution, electric power providers

Waste

Waste disposal companies

DeliveryMovement of
employees
Investment

Supply chain
Manufacturing of media to be used in the sales of products
and services

Delivery company
Business trips

Airplane, rail, bus, taxi, accommodation

CommutingRail, bus
Investees

Initiatives for Green Purchasing and Procurement
The T&D Insurance Group takes various initiatives to protect the global environment, based on the ‘T&D
Insurance Group CSR Charter’ and the ‘T&D Insurance Group Environmental Policy.’ As one facet ofthese efforts, the Group has formulated its Groupwide Green Purchasing Standards to be applied when
the Group procures or purchases the goods or services needed for its business operations. The Group
promotes green purchasing and green procurement, giving priority to the purchase of goods or services
that help reduce its environmental impact. Green purchasing mainly targets office furniture, equipment
and consumable supplies, while green procurement targets printing of product brochures and policy
documents and procurement of real estate facilities and system equipment. Results of these activities
are reported to the Group SDGs Committee and its upper organization, the Board of Directors, every
six months.

32

T&D Insurance Group Sustainability Report 2023

Priority Theme 1

Promote Healthy and Abundant Lives for All People
With the main business of the T&D Insurance Group being the life insurance business, contributing to promote healthy and abundant lives for all people is one of our most basic responsibility to society. We havepositioned “Providing Better Products and Services” as the first principle of the T&D Insurance Group CSR
Charter. The Group clearly states its commitment to fulfilling its responsibilities to society through theinsurance business by offering well-suited, high-quality products and services that meet customer needs.
The provision of products and services that contribute to solving various risks faced by our customers,
which occur due to societal changes such as the acceleration of Japan’s declining birthrate and aging
population, is both the Group’s mission and an opportunity for growth.

Connected social issues and group initiatives to solve themSocial Issues

Primary Stakeholders

Initiatives

Reduce economic and social risks inan aging society

Customers,
local communities

Provide insurance to support the prevention of dementia and insurance that covers a wide range of conditions
requiring long-term care

Help people maintain good health

Customers, investors,
local communities

Help spread and promote “Health and Productivity Management” and enhance welfare systems among SMEs
Invest in funds that support businesses that contribute to improving people’s health

Promote the use of insurance andfinancial services for all

Customers

Integrate internet-based insurance enrollment with face-to-face customer services

Encourage all people to engage insocial and economic activities

Customers,
local communities

Deliver asset formation products for seniors to enjoy their lives post retirement

Increase customer satisfaction
year-on-year until fiscal 2025

Initiative results and plans

PolicyResults for FY2022

Planned for FY2023

To contribute to the sustainablegrowth of society and to thesolution of social issues throughthe insurance business by offeringhigh-quality, optimal products andservices that meet customer needs

Launched Preventive Insurance Series to support initiatives aimed at customer prevention throughinsurance

 ontinue to provide products and services that meet the needsCof societySuitably fleshed out our product lineup for Sma-Hoken (Internet channel) and Remote Application as well

 ffer insurance products which even customers concernedO
about their health status can apply forProvided Kaisha Minnade KENCO+, a new full range of health-promotion-type protection for promoting
SME health and productivity management
Provided Hybrid Tsumitate Life, asset formation insurance on a new axis that is closely attuned to thediversifying needs of the era of the 100-year life
Deploying the Taiyo’s GENKI Project to encourage good healthLaunched the Dodai? web service for working on resolving social issues in collaboration with SMEs
Bolstered product lineups to respond to diversifying customer needs, etc.

 ffer insurance products which meet the asset managementOand asset administration needs of the 100-year-life era xpand lineup of products offering a full range of protection toEmeet the needs of SME owners, modernize coverage, develop
the insurance solicitation environment, and improve the sales
tools, etc.

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

Index

33

T&D Insurance Group Sustainability Report 2023

1. Provision of Products and Services which Meet the Needs of Society

Provision of Products and Services which. Meet the Needs of Society

1
1-1

3-3

203-2

The Initiatives of Taiyo Life

Taiyo Life is a life insurance company that provides comprehensive products to the household market, including death benefits and medical/nursing care. Our management vision is to provide high-quality products andservices to become a company that is needed and loved by customers,
and, in this spirit, we provide various products and services to respond todiverse customer needs. In particular, to respond to diversifying customer
needs and lifestyle changes—in addition to our in-house sales representative channel—we have launched fully-online insurance (Sma-Hoken) to
respond to the needs of customers who want to handle procedures ina non-face-to-face way. In addition, we introduced Remote Application,
which combines Sma-Hoken with consulting and application procedure
support provided by in-house sales representatives. We also utilize digital
information via infomercials, Internet ads, and similar kinds of promotion,
and we provide hybrid sales service that combines face-to-face and nonface-to-face approaches.
In June 2016, in anticipation of the era of the 100-year life, we launched Taiyo’s GENKI Project torespond to the social issue of longer healthy lifespans, that is, living a long, healthy life. We also promotevarious measures to help ensure that our employees are healthy so that they can support the health ofcustomers and contribute to achieving a healthier society.
In this way, we are contributing to the realization of a sustainable society, which is the aim of theSDGs, through a variety of actions that consider the concepts of CSR, ESG, etc., such as the provision of
products and services that contribute to enhancing the health and welfare of all people.
Product Development which Preempts the Changes of the Times
To help everyone live long and healthy lives in the eraof the 100-year life, we are developing a Preventive
TV commercial
Insurance Series that supports customers’ prevention efforts through insurance. In October 2018,
we launched our Himawari Dementia Prevention
Insurance as the first of these products to help deal
with dementia—a social issue—and enable customers to live their old age with peace of mind.
At the end of April 2023, sales of our dementiarelated products exceeded 900,000 policies, whichshows that these products are well-received by many people, particularly by our senior customers.
Furthermore, in June 2021, we launched Cancer and Critical Illness Prevention Insurance, the second in our series of prevention insurance plans.
This product covers certain conditions, including cancer, strokes, and acute myocardial infarctions,and has been well received by a wide range of customers of all ages, including the middle age generation.
One feature of prevention insurance is that, by adding special survival benefit provisions, customers
can receive preventive benefits every two years starting one year after the policy begins. These preventive benefits include the use of the Company’s disease prevention services, including MCI Screening
Plus—which can be used to judge the risk of MCIs (mild cognitive impairments) by using a simple blood
test—as well as AminoIndex® Risk Screening—which can evaluate the possibility of currently having
cancer as well as the risk of future strokes, myocardial infarctions, and diabetes.
Launched in October 2018

Himawari Dementia Prevention Insurance
Benefits

1

Benefits

2

Application with a simple declaration is possible even if there are health concerns
Coverage of dementia using double
insurance claims(dementia diagnosis insurance claims anddementia treatment insurance claims)*

Benefits3

Coverage of hospitalization, surgery, and the like due to certain diseases and the like which are common in seniors* When enrolling in both “relaxed-underwriting type dementia diagnosis insurance” and “relaxed-underwriting type dementia
treatment insurance”
Benefits

4

Special survival benefits (preventive benefits) that can be utilized for dementia prevention and various other purposes[Preventive Benefits]
Policy date

1 year after

3 years after

5 years after

7 years after

9 years after

10 years after

Insurance
claims atmaturity

The insurance period and the insurance premium payment period (in the case of 10 years)
Policy date

10 years after

Our dementia prevention service can be used both early (during the first year) andrepetitively (every two years)!

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

34

1. Provision of Products and Services which Meet the Needs of Society

Launched in June 2021

Launched in May 2022

Cancer and Critical Illness Prevention Insurance
Benefits

1

Relaxed underwriting-type advanced
medical insurance

Broad coverage of cancer and certain critical illnesses

CancerAcute myocardial infarction

StrokeDiabetesInsurance claims are paid
“when surgery is undergone”!

Insurance claims are paid
“when surgery is undergone”!

Benefits are paid if the insured
person has proliferative
vitreoretinopathy surgery!

Chronic renal
failureCirrhosis of
the liverHypertensive
diseaseAortic aneurysm andaortic dissection

Chronic
respiratory failure

Chronic
pancreatitis

Stomach cancer
Colorectal cancer
Lung cancer
Breast cancer
Prostate cancer
and other cancers

Other disorder of organs* Payment is subject tocertain conditions.

Benefits2(implanting an artificial cardiac pacemaker, colostomy, and the like)

Even in the case of early-stage, 10% of the insurance claim amount (wide-area
benefits for cancer and critical illnesses) is paid.

Simplified death insurance

In May 2022, we launched relaxed underwriting-type advanced medical insurance and Simplified death
insurance that customers who are worried about their health can apply for as well. Relaxed underwriting-type advanced medical insurance covers advanced medical treatment for which all the technicalfees must normally be paid by the customer due to such treatment not being covered by public medical
insurance systems, and this includes expensive cancer treatment such as heavy-particle radiotherapy.
In addition, with our Simplified death insurance, death benefits can be prepared with nothing more thana simple notification.
We are also striving to suitably flesh out our product lineup for Sma-Hoken (Internet channel) andRemote Application, and, in November
2022, we launched our children’s medical
insurance, which enables policies for which
the policyholder and insured member are different people. With this product, fully-online
insurance can be used to provide coverage
not only for policyholders but also for theirchildren who are 12 years old or younger.

(2) Hospitalization due to a stroke(1) Early-stage cancer• Non-invasive cancer• Cancer in situ, etc.

(3) Hospitalization due to an acute myocardial infarction

Launched in May 2023

(4) Ongoing insulin treatment for diabetes for at least 180 daysin response to a doctor’s instructions* Payment is subject to certain conditions.

Benefits

3

Special survival benefits (preventive benefits) can be utilized for disease prevention services[Preventive Benefits]
Policy date

1 year after

3 years after

5 years after

7 years after

9 years after

10 years after

Insurance
claims atmaturity

The insurance period and the insurance premium payment period (in the case of 10 years)
Policy date

10 years after

Simplified cancer diagnosis insurance

Simplified cancer treatment insurance

In May 2023, we launched Simplified cancer diagnosis insurance and Simplified cancer treatment insurance, which can be applied for even by persons for whom it is generally difficult to apply for cancer
coverage, such as individuals who had cancer in the past. With Simplified cancer diagnosis insurance, alump-sum payment is provided to pay for treatment costs, living expenses, etc. incurred after being diagnosed with cancer. Meanwhile, with Simplified cancer diagnosis insurance, benefits can be received forevery month that certain kinds of treatment are undergone. This means that it is now possible to provide
cancer coverage even to customers worried about their health.

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

35

1. Provision of Products and Services which Meet the Needs of Society

Delivering Peace of Mind to Families
Taiyo Life is continuously working on various reforms and improvements to deliver trustworthy and reliable services to customers over the long term, from enrollment and the policy period up until a policy
pays out.
We proactively recommend that the family members of a senior customer be present when he or
she concludes a contract to prevent misunderstandings. Also, our in-house sales representatives makeuse of the videophone function of our Taiyo Life Concierge service for mobile devices to contact customers directly and reconfirm the intention of the contract, application details, the notification details in thecase of relaxed-underwriting type products, and more through our senior support desk. We have also
introduced the Family Registration Program, which allows the prior registration of contact informationof customers’ family members as preparation in case it ever becomes difficult to communicate with thepolicyholder due to the onset of dementia or hospitalization.
We are also implementing our Senior Visit Service, which involves visiting senior customers at least
once a year during the enrollment period to confirm contract details and encourage customers to claim
their benefits. By using our dedicated customer service web portal Taiyo Life My Page, customers cancomplete procedures without having to visit the Company, including address changes and other insurance maintenance procedures, use of loans and other funds, hospitalization benefit, etc. claim procedures, and more. It is also possible to complete various procedures and benefit, etc. payments online. In
October 2021, we became the first major insurance company in Japan to expand Taiyo Life My Page so
it can be used by insured members as well, and, even if the policyholder and insured member differ, it
is now possible to carry out benefit claim procedures on My Page. In April 2022, we started providing a
new Taiyo Life My Page service—the web insurance certificate - digital certificate—that enables not only
policyholders but also insured members and registered family members to confirm policy details, andthe total number of applications was past 80,000 as of March 2023. In February 2023, we also made itServices provided by Taiyo Life My Page (excerpt)• Address changes

Digital certificate features• Family Registration Program registration and detail inquiries• Name changes•D eath insurance benefit, etc. beneficiary/preregisteredproxy changes

Simple andconvenient!

All you have to do is click the linkto the information you want to know
on your smartphone or computer
screen. You can easily confirm yourpolicy details on your My Page.

Secureand safe

Registering family members helps
to ensure that procedures for insurance claims, etc. will all be handledsmoothly even if something badhappens.

Environmentallyfriendly!

Because digital certificates are fully
paperless, they help contribute topreserving the global environmentand realizing a sustainable society.

• Addition of designated proxy application riders• Insurance certificate reissuance•R eissuance of certificates for life insurance premium
deduction• Repayment of policyholder loans• Repayment of premium transfer loans• Claim procedures for benefits, etc.
• Information on premium payment proceduresNEW•C onfirmation of policy details and viewing of web insurance
certificates— digital certificates —• Account applications and changes

possible to complete account application and changing procedures, and—asof the end of fiscal 2022—the number of Taiyo Life My Page members was
up to 1.22 million increased by 537,000 members from the end of fiscal 2021.
When a payment is to be made, office workers with specialized knowledge visit customers and/or their families directly to help them with the procedures for claiming benefits as part of our Kaketsuke-Tai Service. This service, which makes use of the Taiyo Life Concierge service to reduce paper
consumption when performing procedures to claim benefits, etc., allows
benefit payments to be made in as little as ten minutes*. In addition, we are
striving to further expand this service. For example, in October 2020, it went
fully paperless due to claims for death benefits going paperless.
Furthermore, concerning dementia, we are engaging in initiatives
to follow up on customers who made claims for benefits, etc.
but could not receive payment at the time of the claims because
they did not satisfy the payment criteria in order to ensure that all
claims are properly paid in the future.
* This differs depending on the claim details, status of reception, and other factors.

Prevention Initiatives
Our goal at Taiyo Life is to help create a society where everyone can live long, healthy lives in the era of
the 100-year life. To accomplish this goal, we are working on initiatives that not only support customers interms of detecting and improving dementia and critical illnesses at an early stage, but also help prevent
disease and improve customers’ health.
For customers eligible for the payment of special survival benefits (preventive benefits) through ourHimawari Dementia Prevention Insurance, we recommend dementia prevention services such as MCI
Screening Plus, which determines the risk of mild cognitive impairments (MCIs) through a simple blood
test, and the Kurort Health Walking Experience Tour, which can prevent disease and improve health,among others. In addition, in March 2021, we entered into a business agreement with Ajinomoto, H.U.

Kurort® Health Walking Experience Tour

Enjoy the fields andmountains of Japan duringsome laid-back walking,and refresh yourself
mentally and physically!

Sustainability Management

Organizational Profile

Priority Theme

T&D Insurance Group Sustainability Report 2023

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

Index

36

1. Provision of Products and Services which Meet the Needs of Society

Frontier, and H.U. Wellness, and began offering AminoIndex® Risk Screening, which can simultaneously
evaluate the possibility of an individual currently having cancer and whether they are at risk of future
strokes, myocardial infarctions, or diabetes.
Starting in August 2022, we also made it possible for customers to undergo MCI Screening Plusand AminoIndex® Risk Screening examinations as part of mobile medical services, thereby increasing
opportunities for such testing and contributing to the health promotion of our customers.
Moreover, we have started providing the Taiyo Life Health Promotion App based on the concept of
improving health in a fun way using an app, which can support the health promotion of customers froma variety of perspectives, including walking and sleeping. This app has functions that give advice basedon the number of steps walked and hours of sleep every day regarding possible illnesses and conditions
that can be prevented and for health promotion, so that customers can confirm their own state of health.

Signs of MCIs (mild cognitive impairments),
which are an early stage of dementia,
can be checked for by using a blood test
Test advantages

The tests are done by medical institutions throughout Japan, and you will
receive your results two or three weeks after your blood is taken

1

2

3

Early detection enables
steps to be taken toprevent dementia

Simple blood tests

Reliable tests done by
medical institutions

AminoIndex®
Risk Screening

Taiyo Life
Health Promotion App

Comprehensive, all-in-one
evaluations using nothing
but a 5-ml blood sample!

Present

Possibility of having

cancerFutureStrokeMyocardial
infarction
Diabetes
Risk of the above

AminoIndex®

AminoIndex®

Cancer Risk
Screening

Lifestyle Disease Risk
Screening(AICS®)(AICS®)

Taiyo Life has changed the way life insurance solicitation isdone. For example, we introduced the Taiyo Life Concierge mobile terminal for the in-house sales representatives in August
2018, enhanced its functions utilizing the latest IT, equipped itwith consulting and presentation functions which listen to therequests of the customers and propose the optimal plan on thespot, and made it fully paperless in all processes from concluding
the policy to receipt of payment.
In October 2019, we launched SmaHoken, which enables customers to complete application procedures online.
Sma-Hoken, our completely new fully-online insurance system with extensive
after-sales services, combines an online
insurance quoting and application processthat can be used any place and time a customer desires with attentive visiting service from our personable staff. Furthermore, in January 2021 we introduced Remote Application (non-face-to-face solicitation), which combines Sma-Hoken with sales-representative consultations and application procedure
support. Through this Remote Application service, proposals to a greater number of customers, including
customers requiring non-face-to-face services as well as distant customers for whom direct face-toface applications are difficult, etc., are now possible, and these customers can now easily complete
policy procedures from their own smartphones or computers anytime and anywhere. We will continue
to promote hybrid sales that combine face-to-face and non-face-to-face services as we promote DX invarious fields based primarily on three pillars—developing next-generation sales devices, utilizing AI, andimplementing business reforms—thereby increasing our productivity, expanding our points of contact
with customers, and improving our services. We will also endeavor to grow in line with our management
plan goal of becoming a company that helps customers live healthy and long lives by providing the bestproducts and services.

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

Index

37

T&D Insurance Group Sustainability Report 2023

1. Provision of Products and Services which Meet the Needs of Society

1-2

Main product lineup

The Initiatives of Daido Life

Proposal of a full range of protection
There are many cases in which SMEs rely on the reputation and technical capabilities of the businessowners themselves for their viability. For this reason, continuation of the business sometimes becomesdifficult in the case that the business owner dies or becomes unable to work due to a major illness or injury, etc. In preparation for this kind of situation, Daido Life calculates the funds necessary to protect thecompany and family (“standard coverage” and “living support funds”) to propose reasonable integrated
coverage for the corporation and individuals (a full-range of protection).
L-type , J-type , and T-type Products
With the arrival of the era of the 100-year life and facing a serious lack of successors, a phenomenon including the aging of SME owners and the lengthening of their working careers is advancing.
Meanwhile, structural changes in society and industry are presenting SMEs with more diverse management challenges and risks. These changes in the environment have brought about changes in theinsurance needs of SMEs, in particular a growing need for products with coverage that can be flexibly
configured according to business conditions and other factors. In response to this situation, we launched
How it works (conceptual image)Made-to-orderbalance between

Made-to-order

Insurance
amountAdjusted by surrender
value suppression rate

Death or severe
disability claim

Premium andSurrender value

Surrender value
Enrollment

Made-to-order Insurance period

Insurance period
expiresProtect individuals

Provision of protection that widely covers the human risks faced by SMEs

Protect corporations

Daido Life is a life insurance company that specializes in the SMEs market. It provides products andservices that take into account changes in the environment surrounding SMEs and has signed up some
370,000 corporate clients. In recent years, changes in the environment surrounding SMEs and the diversification of their needs has been progressing, including longer working lives for business owners due
to medical technology advances and other changes, responses to inheritance and business succession,
growing interest in social issues, in particular health-oriented management and the SDGs, etc. In thecontext of these changes in the environment, the Company is working on “evolution of the provision ofcoverage” to protect SMEs and “being a partner in the resolution of issues” to support the resolution of
the various issues faced by SMEs.

Insurance to prepare
for death

Insurance to prepare
for critical illnesses

J-typeJ-type αR-typeL-type αStage-limited cancer J-type

Insurance to prepare
for serious

Insurance to prepare
for hospitalization

T-typeT-type α

Lump-sum payment
M-typePreparation for
old age andasset formation

physical disability

and/or surgery

Kaisha Minnade KENCO+
Insurance to prepare
for loss of income

Insurance to prepare
for nursing care costs

Asset succession
and inheritance
preparation

Shunyu Relief

Kaigo Relief αLife Gift α

Funds for which
preparation isnecessary incorporations“Standard coverage”

Risks facedby corporations
Death retirement benefits
and condolence money

Survivor retirement
benefits

Risks faced
by individuals

Individual annuity
Whole life insurance* In the case that preparation by corporations isdifficult, preparation byindividuals is necessary

Funds for which
preparation byindividuals isnecessary “Living
support funds”

the industry’s first “made-to-order” insurance products to provide SME owners with long-term coverage against death, critical illness (cancer, acute myocardial infarction, and strokes), and severe physicaldisability. Specifically, in July 2019, we began offering L-type [non-participating age-specific maturity
term life insurance (specified surrender value suppression rate type)], J-type [non-participating critical
illness insurance (specified surrender value suppression rate type)], and T-type [non-participating disability protection insurance (physical disability certificate-linked/specified surrender value suppression
rate type)]. These products cater to the diverse needs of customers by allowing them to freely configure
not only the insurance amount and period, but even the balance between premium and surrender value.
Lump-sum payment M-type products
On June 1, 2023, we started selling lump-sum payment M-type [non-participating hospitalization lumpsum payment insurance (no surrender value)], which covers both corporate working capital in cases
where managers are absent due to disease or injury as well as the costs of hospitalization by using a
lump-sum payment.
This insurance can also be freely combined with riders as necessary to cover surgery, radiation therapy, anticancer drug treatment, etc.

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

38

1. Provision of Products and Services which Meet the Needs of Society

Kaigo Relief products
As a result of the aging society, there has been an increase in the number of people requiring longterm care in the public long-term care insurance system, as well as the number of elderly people withdementia. Accordingly, the needs for nursing-care benefits of SME owners and individual businessowners are also on the rise. To satisfy these needs, in April 2019, Daido Life launched Kaigo Relief[non-participating whole life nursing care insurance (no surrender value type during premium payment
period)] to provide wide coverage when long-term care is required, such as for dementia. This productensures substantial coverage for times when long-term care is required, while realizing inexpensive
insurance premiums by eliminating the surrender value during the premium payment period. By offering
this product and the ancillary Kaigo Concierge service integrally, Daido Life is providing comprehensive
support to relieve the financial, as well as psychological, burdens associated with nursing care.
Comprehensive support through Kaigo Relief
Product

Kaigo Relief(For financial burdens)L ifelong nursing-care benefits with inexpensive
insurance premiumsC overage from the public long-term care insurance system“Care Level 1”
High level of benefits of up to ¥100 million
 ultiple persons can be designated as beneficiaries,
Min accordance with needs

Service+ Kaigo Concierge

Kaigo Concierge(For psychological burdens)Care manager referrals
Nursing-care facility referrals and visit arrangementsP rovision of dementia-related services and information
through Dementia Plus + pplication support for certification for long-term careAcertifications, etc.

* In addition to Kaigo Relief , the company also provides Shunyu Relief [non-participating nursing care income protection insurance(no surrender value type)] to protect against loss of income when long-term care is required.

HALFIT Service
Since April 2020, free access to up to three sessions of the Neuro HALFIT ® exercise program, whichuses the wearable Hybrid Assistive Limb (HAL)® of CYBERDYNE, Inc., has been offered. This service,delivered as an ancillary service of Kaigo Relief , etc., is intended to help prevent disease advancement
and increase the independence of people who require relatively light levels of care while insuring themagainst financial risk in the event long-term care is needed.

About Neuro HALFIT ®
The Hybrid Assistive Limb® is theworld’s first technology capableof reading signals from the human body to achieve movement inline with the wearer’s intentions.
Using the Hybrid Assistive Limb®
enables even individuals for whom
it is difficult to stand up or walk to
move without too much trouble.
Neuro HALFIT ® is a program that
supports day-to-day independence
by facilitating repeated voluntary
movements synchronized with theuser’s movement intentions.

A look at the different types of HAL® programs

HAL lumbar type

HAL lower limb type

HAL Single Joint Type
Provided by ©CYBERDYNE, Inc.

Policy Conversion System (Switch)
To respond more flexibly to changes in needs after enrollment, in June 2023, we introduced the Policy
Conversion System (Switch), which allows products in the same benefit field with different coverage periods to be switched (converted) between one another. The system applies not only to traditional death
benefits, disability benefits, and health promotion but also to medical benefits. This has further improved
the flexibility of policies, such as by enabling simple procedures for reviewing or updating coverage inline with business conditions.
Example of switch (conversion) from “long-term coverage-type” to “renewal-type”
Long-term coverage-type (with surrender value)

Renewal-type

SwitchInsurance claim
Surrender value
Receive surrender value

Insurance claim

Renew

Renew every
5 or 10 years(until age 80)

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

39

1. Provision of Products and Services which Meet the Needs of Society

Initiatives to improve the convenience of insurance procedures
Procedures that Connect
To improve the convenience of customer procedures and respond to the “new normal” of coexistence with the COVID-19, we have introduced Procedures that Connect under which customers
can carry out procedures related to insurance enrollment, insurance claims, benefit claims, andcancellation requests with their own smartphone and PC as well as Remote Examinations offering
examinations by doctors over the videophone.
In addition, to make non-face-to-face procedures quick and simple for as many customers as
possible, we expanded our Procedures that Connect starting in June 2023 to include policyholder
loans and repayment.
We are continuing to try to make all insurance procedures non-face-to-face, so that customers
can choose between the security of face-to-face procedures and the convenience of non-face-toface procedures according to their needs.
Enrollment procedures

Customers

Claim procedure

Anytime, anywhere

Speedy payment

Procedures tailored to the circumstances of thecustomers, free from restraints on time or place,are possible

Speedy payment because there is no time lag for
posting the documents

Easy to understand in audio and video
The important matters that we definitely wantcustomers to confirm are explained
understandably with audio and video
Peace of mind due to the support of the operator
If the customer has any questions, the operator
provides support by sharing the procedures screen

Proceduresthat Connect

Timely guidance
Guidance to the status of the procedures through email
and short message service when the claim applicationis received and the procedures are completed
Smooth procedures
The procedures are completed smoothly due tothe multiple-choice input screen and automatic
checking of the input content

Procedural system for foreign employees
In order to respond to the wishes of SME owners to care for all employees regardless of nationality, Daido Life has developed a procedural application system that enables applications in foreign
languages for life insurance as welfare benefits and is intended for foreign employees (insured
members) who have difficulty understanding Japanese. This system is used by many employees.
(Explanatory materials in foreign languages, explanatory materials of important topics in foreign
languages, telephone-based interpreter contact points, etc.)
Target languages
Eight languages: Chinese, Vietnamese, Filipino, Portuguese, Nepalese, Korean, English, andSpanish (Languages of the top eight countries, in terms of the number of foreign workers)

Initiatives toward support for the resolution of the management issues of SMEs
Initiatives to Promote Health and Productivity Management*
Daido Life assists SMEs in implementing Health and Productivity Management. The
aims are to contribute to creating a society where SMEs and their employees canbe active and vigorous and to solving issues faced by Japan’s rapidly aging society.
* The Japanese term for “Health and Productivity Management” refers to a corporate management style ofpaying additional attention to employees’ health and strategically implementing policies aimed at employees’
health management and maintenance, and is a registered trademark of Non-Profit Organization Kenkokeiei.

KENCO SUPPORT PROGRAM
Since April 2017 Daido Life has been providing the Daido Life KENCO SUPPORT PROGRAM in cooperation witha multitude of companies, in particular Value HR Co., Ltd., that possess specialized technology and know-how.
It is a comprehensive program targeted at SMEs that supports continuous implementation of the PDCA
cycle necessary for health-oriented• Communicating manager
messages regarding healthmanagement. This includes assistingand productivity management• Introduction of healthcompanies in encouraging employees• Points program offers points
checkup institution and
Declaration of healthfor health actions
reservation by proxy
and productivity
to go through health checkups, risk
management• History management of• Providing preferential
Encouraging
analysis of development of lifestylepricing for healthemployees to go health checkup results
Incentive
related products andthrough medical • Stress checkservices
examinations
disease, etc. for individual SME owners and employees, visualization of the
Health promoted
Analysis and• Visualization of• “Health Future Forecast” predicts
solutions
understanding ofdaily activity
company’s overall health status, andthe risk of developing lifestylehealth risks
related diseases in the future• Dietary management andprovision of health promotion soluadvice from nutritionist• “Health and Productivity Management
Report”
capturesthe health status of thetions and incentives that promote con• Online medical/
company as a whole and supports
employment
employee health and productivity promotion
tinuous health improvement efforts.
consultations
and improvement

Kaisha Minnade KENCO+
In order to realize “prevention of illness using health-oriented management” and “preparation for unexpected
retirements,” we launched a health-promoting insurance integrating the KENCO SUPPORT PROGRAM with protection in January 2022.
This product widely protects against a variety of risks
such as death, severe disability, physical disability, critical illness, etc.; moreover, it has introduced a mechanism which
discounts the basic policy insurance premiums the following year in the case that the customer’s “average number ofsteps per day is 8,000 steps or more every year.” We establish
an “opportunity to start health-oriented management” by getting all of the owners, executives, and employees of SMEs toenroll in insurance together.

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

Index

40

T&D Insurance Group Sustainability Report 2023

1. Provision of Products and Services which Meet the Needs of Society

Support for Inheritance and Business Succession
We support SME owners worried about whether they can smoothly hand on their business to a successor through a variety of initiatives aimed at resolving issues. More specifically, for customers who haveissues regarding business succession, expert consultants who have financial planning (FP) knowledge(FP and inheritance consultants) give advice about methods of transferring the company’s own sharesand risk management based on financial analysis. In addition, we cooperate with partner companies toprovide our M&A Support Service and Corporate Value Calculation Service to calculate the corporate
value free of charge as information to be used for judging the direction of corporate management going
forward, and we also offer a successor development program at Daido Management Academy. In recent
years, we have also formed a business alliance with the Resona Group in the inheritance and businesssuccession field, and we are providing solutions possessed by the insurance and banking fields in linewith issues faced by customers.

SME customers
Business agreement
in inheritance andbusiness succession
Real estateBusiness
succession
consultingLife
insurance

Trusts

Deceased
estatesettlement

M&A
support(purchase and sale andeffective utilization)(wills and successionof the company’s
own shares)* We are handling real estate and trusts anddeceased estate settlement operations based on
business matching contracts and fiduciary agent
contracts with Resona Bank.

A place of learning for SMEs
Starting in 2002—our 100th year in business—we started endowing annual open courses at universities,
etc. throughout Japan as a way to enable participating SME owners to acquire knowledge and skills
related to management and business. So far, we have held a total of 137 courses and welcomed approximately 16,000 participants.
In 2022—our 120th year in business—we renewed these courses to make them a place of learning
for anyone who works at an SME as well as anyone aiming to participate in an SME. We also expanded
the individuals targeted by the courses to include SME successors/employees as well as individuals whowant to start their own business.
In fiscal 2022, we started holding collaborative courses
with the University of Tokyo Hospital as well as online courses for Meiji University, Japan Women’s University, and theHito wo Taisetsu ni Suru Keiei Gakkai (Institute of Business
Administration with Taking Good Care of People), and we
started supporting entrepreneurial activities by students ofOsaka University.

Commencement of Dodai?, a site for business owners
sharing their views with each otherIn March 2022 we commenced the web service Dodai? forthe owners of SMEs to meet and tackle the resolution of social issues together. Through this service, Daido Life, which
has supported SMEs through protection until now, will put
into practice the idea of “creating the future together withSMEs” going forward.
Dodai? offers three functions:“Consult” (a community where the business owners canshare ideas and worries with each other)“Learn” (introduction of real examples close to home for thebusiness owners)“Try” (guidance to the service lineup of the Company usefulfor the management)
We are aiming for a service that can connect the ownersof all SMEs throughout Japan and that can be used free ofcharge regardless of whether the companies have a policy
with Daido Life.

MascotDodai-kun

Daido Life website
Daido Life Survey(Japanese only)

Daido Life Survey
Since October 2015, Daido Life has been conducting the
Daido Life Survey, a monthly survey that collects the opinions of SME managers on such matters as business confidence and management issues. So far, Daido Life sales
representatives have visited a total of approximately 10,000
SMEs across the country to hear the “unfiltered opinions”
of their owners. Survey reports are sent to customers acrossJapan and also made available to the general public.
Joint research with universities
To pursue initiatives aimed at resolving social issues incollaboration with SMEs, we conducted joint researchwith the Research Institute for Economics and Business
Administration, Kobe University, and Toyo University basedon the following themes: sustainability management of
SMEs and obtaining suggestions from German SMEs.
The research report materials we published in March2023 as well as photos of the symposium we held to announce our research results are available on our website.

Daido Life website
Joint research aimed
at transforming SME
management(Japanese only)Sustainability Management

Organizational Profile

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Governance and Internal Control

Management Control

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1. Provision of Products and Services which Meet the Needs of Society

The DAIDO Sustainability INITIATIVEIn recent years, interest in sustainability has been growing in society, including the 2050 Carbon
Neutrality Declaration by the government, and initiatives for the SDGs (Sustainable Development Goals)
are becoming large management issues for not only major companies but also SMEs.
Given the above changes in the environment, we are providing a program that helps our customers
deepen their understanding of the SDGs. This program also encourages the practice of sustainability management by creating points of contact between companies with an interest in the SDGs andcompanies possessing technologies and services that contribute to the resolution of social issues andsupporting the introduction of services and cooperation among companies.

Various other health/management support services
To help SMEs resolve management issues, Daido Life provides various support services. One such service is the Safety Confirmation System introduced by Daido Life in April 2019 in order to respond to thewishes of SME owners to confirm the safety status of employees accurately and promptly in the event oflarge-scale disasters. This service is equipped with all of the functions necessary for safety confirmation
at SMEs in the event of a disaster.

Disaster occurrence

1
Customers
I want to
start doing
something

I havean interest in
sustainability
management

Examples of specific initiatives
for sustainability management
Daido LifeI amsearching
for a partner

Company withan interest in
the SDGs

Supportcompany

We want
to support
sustainability
management with ourown technologies
and know-how

Automatictransmission function

When an earthquake of intensity 5+ on theJapanese intensity scale occurs, or whena special warning is issued for heavy rain,etc., a safety confirmation message is sentout to employees automatically.

2(Employees)(Managers)

Safety status response

Response result confirmation

Automatic
tracking function

Automatic repeated transmissions when
there is no reply from an employee until
they can be contacted.

3

Automatic
tabulation function

An employee safety status list can beviewed along with automatically tabulated
results, enabling accurate secondarycommunications and instructions.

To respond to a wide range of customer requests, we provide the services below.

SeminarsArrangement for one-on-one meetings

Events

Dedicated information site

Company
possessing
technologies
and services

Daido Life’s health/management support services

Health support: more leisure time

Management support

Supporting truly healthy daily living

Providing services that are useful for corporate management

T&D Club Off

Management aiming for the long-term continuityof the business through the resolution of a variety
Sustainability management =of environmental and social problems (initiatives
for the SDGs)

Health Screening Referral Service

Online Public Support Service
Online Employment Regulation Diagnosis Service
DAIDO Business Reports

Health Hotline 24

Internal Rule Template Providing Service

Second Opinion Service

Accounting Method Guidance Service

Stress Check Service

Company Stock Evaluation Estimation Service
Corporate Value Calculation Service

Simultaneous Cancer Treatment and
Job Support Service
Kaigo Concierge

M&A Support Service
Daido Management Academy
Targeted Attack Email Response Training Service

Daido Premier Concierge
Welby My-Karte

SME-Oriented Information Security Service
Overseas Expansion Support Service

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

TOPIC

42

1. Provision of Products and Services which Meet the Needs of Society

Daido Life’s Initiatives

Formulating a Sustainability Promotion Plan
– Contributing to the realization of a society that achieves the well-being of
SME employees and their families –In March 2023, Daido Life—which has developed up until now alongside SMEs—formulated its Sustainability
Promotion Plan as the foundation of the Company’s sustainability management to both fulfill its social
responsibilities and clearly spell out the fact that the Company will pursue initiatives in collaboration with
SMEs to help resolve social issues.
Under this plan, we will aim to contribute to the realization of a society that achieves the well-being of
SME employees and their families, and—to accomplish this—we have specified two layers and six initiative
areas, we have clearly spelled out action plans specific to each of these initiative areas, and—regarding
areas in which the Company will fulfill its own responsibilities—we have also specified KPIs as goals toachieve by 2025 or 2030.

II
Initiative areas
to tackle incollaboration
with SMEs(expected roles)

Expectations from society

I

Four sustainabili-

Sustainable
company vision(2040)Be an advanced sustainability-management company that contributes tothe realization of a society that achieves the well-being of SME employees
and their families

ty priority themes(materiality)* Group-wide

Support the enrichment of the lives of SME employees and their families

Initiative areas totackle in collaboration
with SMEs(expected roles)

Financial security

Mental and physical healthFulfilling jobs and lives

Connections with societyI(6) Promote sustainability management• Expand contents that support the promotion of SME sustainability management.
• Visualize SME sustainability management through joint research with
universities, etc.

• Improve job satisfaction throughnew training structures and various
human resource systems.
• Enhance the PDCA cycle for healthand productivity management.
• Systematize diverse work styles
and opportunities.

(2) Human rights• Promote initiatives aimed atensuring that the Company aswell as its affiliated companies
and outsourcing partners respecthuman rights.

1. Promote healthy
and abundant lives
for all people

Initiative areas(1) Human
resources

Promote overall SME sustainability management

Pursue humanresource managementthat emphasizes
independence as well as
the demonstration of theindividuality of diverse
human resources

Human rights

Respect thehuman rights ofall stakeholders
involved in ourbusiness

Climate change

Ensure that theCompany and its
business partners
respond to climatechange(3) Respond to climate change• Formulate plans for introducing
renewable energy and achieve
related goals.
• Reduce the Company’s CO2
emissions by reducing the energy
necessary to renew owned realestate facilities, visualizing theemissions of each site, etc.

(4) ESG investment• Reduce the CO2 emissions ofinvestment and financing recipients
through investment and lending
aimed at decarbonization as well as
constructive engagement.

Contribute to thedevelopment of asustainable society
through ESG
investment* Conduct suitable reviews as the social situation changes in the future (examples: biodiversity, TNFD actions, etc.)

2. Provide workplaceenvironments thatenable all people
to participate
actively
3. Help mitigate andadapt to climatechange
4. Invest to help
build a sustainable
society(2) Humanrights(3) Respondto climatechange(4) ESG
investment

KPI

Job
satisfaction

1) Employee satisfaction of at least 4.00 points by fiscal 2025

Health2) Presenteeism of at least 80% by fiscal 2025*1

Diversity

Human resources

Areas in which theCompany fulfills
responsibilities on
its own(social responsibilities)• Contribute to the well-being of SME employees, including health promotion andthe provision of places of learning.

KPIs (areas in which the Company fulfills responsibilities on its own)

Two layers and six initiative areas

II

(5) S
 upport the enrichment of lives(1) Human resources

Areas inwhich theCompany fulfills
responsibilities
on its own(socialresponsibilities)

Sustainability Promotion Plan
The Company’s strengths andunique characteristics

Action plan leading up to 2025

3) Ratio of female managers of at least 25% by fiscal 2025
4) 100% paternity leave usage rate by fiscal 2025

Humanrights5) 100% human rights due diligence*2 implementation rate byfiscal 2025 (including business partners)

Renewableenergy6) Transition to renewable energy to cover at least 60% of
the Company’s used power by fiscal 2030

CO2
emissions7) 40% reduction in CO2 emissions by fiscal 2025 compared tofiscal 20138) 4
 0% reduction in the CO2 emissions of investment andfinancing recipients*3 by fiscal 2030 compared to fiscal 2020

*1 Evaluated based on a questionnaire (Single-Item Presenteeism Question (SPQ)) concerning one’s personal work in the last fourweeks, with 100% assumed to be the quality of one’s work assuming no illnesses or injuries*2 A continuous process used to identify and deal with the effects of companies on human rights*3 Japanese listed company stocks, bonds, and loans

Sustainability Management

Organizational Profile

Priority Theme

T&D Insurance Group Sustainability Report 2023

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

Index

43

1. Provision of Products and Services which Meet the Needs of Society

1-3

Initiatives of T&D Financial Life

T&D Financial Life has set out the management vision of “carefully giving attention to our customers andpartners to become a chosen company: T&D Financial Life will partner with its sales agents to deliver
future abundance and peace of mind in the lives of our customers.” It is working on bolstering its product lineup, timely provision, and the improvement of customer service to meet diversifying customers
needs by “carefully giving attention” to banks and other financial institutions as well as insurance shops
and other sales agents where customers can drop in for consultations, which are its customers andpartners in all situations, including product development, service provision, and sales and administration.
Provision of asset formation products taking into account changes in the social and economic environment
Mainly for senior customers, it provides asset formation products forsupporting a comfortable post-retirement life through the preparation of
post-retirement expenditures and the need for protection of bereaved family members and other needs.
In July 2019, we launched Shogai Premium World 5. This product isthe latest renewal of our Shogai Premium World series of single-premium
whole life insurance which utilizes overseas interest and foreign exchange
to enable customers to leave money for their family members while receiving money to use for themselves. We have revised the content of the
product so that it can meet the broader needs of customers. It inherits fromits predecessor products the characteristic that the customers can enroll in
the insurance without paying any foreign exchange fees, but it eliminates any initial fees previously borneby customers, and also adds a function minimally guaranteeing in yen the death benefits of the samevalue as a single premium for a certain period and other functions.
In September 2020, we launched Shogai Premium Japan 5. This product is the latest renewal of our
Shogai Premium Japan series of yen-denominated whole life insurance which enables customers toleave money for their family members while receiving money to use for themselves. In response to arising awareness of nursing care and dementia coverage, we have newly established a Nursing Care and
Dementia Prepayment Rider, which, in addition to the prior Nursing Care and Dementia Annuity Payment
Transfer Rider, offers advance payment of death benefits in the case that “Care Level 4” or above of the
public long-term care insurance system has been authorized or a diagnosis of certain types of dementia
has been confirmed. In addition to eliminating any initial fees previously borne by customers, we havemade reforms such as introducing a discount system for high costs.
We launched Hybrid Asset Life in June 2021. This product is yen-denominated, single-premium variable whole life insurance that supports asset formation through self-provision in the era of the 100-year
life by combining an investment trust with life insurance. We developed the product to help individuals
enjoy life to the fullest by drawing down assets in a planned manner and to prepare them and theirfamilies for nursing care, dementia and inheritance while continuing to invest, with a focus on long-term
diversified investment.

In December 2021, we launched Hybrid Anshin Life. This product inherits the product features ofHybrid Asset Life which we commenced sales of in June, but newly adds a guaranteed minimum death
benefit rider, and as a service for long lifespans is a product specialized in asset succession and asset
management functions.
In April 2022, we launched Hybrid Tsumitate Life. This product is asset formation insurance on a newaxis that is closely attuned to the diversifying needs of the era of the 100-year life, and it incorporates
product schemes on a new axis based on the market research questionnaire conducted during its development. This product can be used to manage funds through steady accumulation every month, whileaiming for temporal diversification when forming assets, and it also adds spot increase amount anddollar-cost average plus rider functions, which enable customers to effectively utilize the surplus funds
on hand, resulting in a product for which stabler and more efficient asset formation can be expected.
In addition, in April 2023, we launched Fiveten World 3. This product is the result of renewing Fiveten
World 2’s single-premium individual annuities utilizing overseas interest and foreign exchange. For thisproduct, we have established the new Yen Currency Plan, which is aimed at steadily increasing funds inyen to prepare for future nursing care and dementia, and customers can now choose one of two plans
depending on their needs: the Yen Currency Plan and Foreign Currency Plan.
Protection-oriented products taking into account changes in the social and economic environment
For customers in the working and childrearing generation, it offers protection-oriented products at anaffordable price. It commenced sales of Kakei Ni Yasashii Shunyuhosho as a product which can “secure
the monthly income of the family left behind” and “secure income when contracting the three majordiseases” based on the concept “strong support for saving money in the household budget with inexpensive insurance premiums” in August 2012 and it renewed this product in June 2014 so that it has now
become income protection insurance which is able to meet the needs of a broader range of customers.
In April 2020, we launched Kakei Ni Yasashii Shushin Iryo. This product is a medical insurance productupdated from a prior product that enables customers to fully prepare necessary insurance coverage foreverything from one-day hospitalization to long-term hospitalization, lifestyle diseases, and advanced
medical care.

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

44

1. Provision of Products and Services which Meet the Needs of Society

In February 2021, we launched Hataraku Anata Ni Yasashii Hoken 2.
This product is a product that eliminates the death benefit and provides
protection against loss of income and increase in expenses due to illness and injury. Customers may choose from two courses: the “annuity
course,” which provides for a continuous loss of income due to the threemajor diseases or injury, and the “lump-sum payment course,” which provides for a temporary increase in expenses for treatment costs and othercosts, due to the three major diseases.
Initiatives to make improvements in response to customer feedback
T&D Financial Life is working to make administration and system improvements that contribute to customer-oriented business operations.
Such measures include collecting customer feedback, conducting interviews with solicitation agents,
studying the market environment, including various financial products, legal aspects, industry trends,
and the like.
In fiscal 2022, regarding various procedures for which our Call Center receives a lot of inquiries, weposted inquiry methods other than the telephone on the top page of our website. We also posted thesurrender claim form for target-value attainment policies, regarding which we receive an especially large
number of inquiries, on our website so that customers can file claims without having to inquire with
our Call Center. In addition, in response to feedback indicating that designation of the survivor benefit
beneficiaries within the previous scope is impossible as a consequence of the falling birthrate and aging
population, we expanded the scope of survivor benefit beneficiaries for single-premium products toinclude “relatives of the policyholder (blood relatives within six degrees of kinship and relatives by marriage within three degrees of kinship) and their spouses.”
Initiatives to enhance customer service
T&D Financial Life is considering and pushing ahead with various efforts to further improve customer
satisfaction.
In January 2023, to further increase the convenience of our Internet services for policyholders, we
opened an official LINE account and linked LINE and Internet service IDs to eliminate the need to entera password or other details, thereby making it easier to log in and use our services.
We also added a product-video 2D code to the system diagram for our foreign-currency linked product Notification of Policy Details to make this easier to understand.

1-4

Initiatives by T&D Asset Management

Contributing to the Promotion of a Healthy Society through Investment
To ensure the long-term growth of the assets entrusted to the company by our customers, the active
management of Japanese equities by T&D Asset Management emphasizes the analysis of not just financial information but also non-financial information such as ESG (environmental, social and governance)
factors. In particular, the “T&D Japanese Equity ESG Research Fund,” which is private placement fundand makes selective investments in companies that excel from an ESG viewpoint, has set “health,safety and security” as a materiality when evaluating investee companies, and actively invests in companies that contribute to solving social issues related to people’s health. Furthermore, when T&D AssetManagement analysts conduct materiality-driven dialogues with investee companies, they encourage
the companies to take action to resolve social issues and contribute to building a society where people
can live healthy and prosperous lives.

1-5

Initiatives with Pet & Family Insurance

Insurance Protection for Precious Family Members
More pet owners recognize their pets as family
members, and therefore interest in pet healthcare
and its associated costs is growing. With our Pet& Family Insurance, we have taken these circumstances into consideration and have worked toaddress needs concerning pet healthcare costs.
We provide Genki Number One Smart, Genki
Number One Slim, and Genki Number One Best,products that compensate for a portion of thecost of treatments for pets at veterinary clinics
due to illness or injury. These products, which were launched on the transfer market starting in October
2022, help to ensure that pet owners can receive veterinary treatment for their pets with peace of mind.
Providing Information on Pets’ Lives
Pet & Family Insurance has posted on its website information for enriching pets’ lives. The website also
features special contents titled “Pet News Storage” that introduce questions closely related to pets’
lives in an easily understandable fashion. It is regularly conveying information on various subjects related
to pets in an attempt to deepen understanding of pets, which are precious family members. In March
2023, the number of articles topped 335.

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

T&D Insurance Group Sustainability Report 2023

Third-party Opinion

Index

45

1. Provision of Products and Services which Meet the Needs of Society

1-6Best Senior Service

3-3

Based on the social situation that the aging of society is progressing, we are carrying out Group-wide
efforts to improve the convenience and satisfaction of our elderly customers. The Group’s three life
insurance companies have named these initiatives the Best Senior Service (BSS), and, through these
initiatives, we are developing a variety of service improvements.

Major Initiatives by Taiyo Life
(1) Home Visit Service
Taiyo Life launched the Senior Anshin Support Activities in July 2014 as a visiting service activity
designed for customers who are seniors. Its staff visit them at least once a year. Confirmation of insurance contract coverage, and examination of whether claims have been fully submitted, are carriedout in a careful and easily understandable manner. This service enables each of the senior customers
to live with peace of mind.
(2) Initiatives for Securing Peace of Mind at the Time of Contract Conclusion and during the Insurance Period
Taiyo Life proactively recommends the family members of a senior customer to be present when heor she enters into a contract. In addition, the person in charge at the headquarters reconfirms theintention of the contract and declaration (for some products) by using the videophone function of
the terminal that each sales representative carries. Furthermore, Taiyo Life has adopted the Family
Registration Program in the event contact with policyholders become impossible when large-scaledisasters occur. The family members whose contact information has been registered are entitled, on
behalf of the policyholder, to inquire about coverage and the procedure for claiming benefits, and depending upon the circumstances of the policyholder, may also obtain application forms (some forms
excluded). Starting in April 2022, we made it so that even family members who are registered for the
Family Registration Program and are living separately can use digital certificates to view coveragedetails, thereby establishing a system that makes it easy for family members to share information
with each other.
(3) Kaketsuke-Tai Service
The Kaketsuke-Tai Service is provided by Taiyo Life’s administrative personnel with specialized
knowledge. They visit customers and their families to lighten the burdens of dealing with benefitsclaims and to provide meticulous support unique to administrative personnel. This service is very
popular among many customers including senior customers. More than 177,000 home visits had
been made through this service (as of the end of March 2023) since its launch in April 2016. In
addition, the company introduced a paperless procedure to claim benefits, making it possible forcustomers to check the content of their claims and complete the procedure by merely signing on
the Taiyo Life Concierge.

Major Initiatives by Daido Life
(1) Initiatives for Enhancing Sense of Ease during and after Enrollment<Presence of family members during procedures>
Daido Life recommends that family members of customers 70 years of age or older be present during
the enrollment process. This is to ensure a full understanding of the content of insurance policies
that customers are going to enroll in with a sense of ease. The company explains the content of theinsurance coverage and important items that need extra attention in detail both to the customers andtheir families. It also carries forward the procedures by ensuring that the content is in line with thecustomers’ intentions.
<Designated Proxy Application Rider>
The Designated Proxy Application Rider is introduced to customers for insurance policies in which
the insured is the beneficiary of insurance claims, etc. In cases where it becomes difficult for the
insured to file an insurance claim due to sickness, accidents, or other reasons, a representative who
is designated in advance (a preregistered proxy) can file a claim.
<Family Registration Program>
We propose that our individual customers register their family members in the Family Registration
Program, under which a family member registered in advance may make an inquiry about policy details on behalf of the policyholder. We also send out a copy of the Daido Life Guide to the registeredfamily members if the policyholders request it.
(2) Initiatives for Receiving Insurance Claims, etc. Reliably and Promptly
Daido Life regularly checks if there are no unclaimed insurance claims, etc. for individual customers
who are over a certain age so they can receive insurance claims reliably and promptly.
(3) Improvement of Treatment of Customers and Hospitality
In order to provide courteous and careful service in response to customers’ situations, we formulated
and use a service manual taking into account the general characteristics of our senior customers,such as changes in physical abilities and psychological aspects, as well as visual aides. Through thesemeans, we are striving to provide an environment in which our customers can complete necessary
procedures with peace of mind.

Major Initiatives by T&D Financial Life
(1) Measures at the Time of Enrollment
During the enrollment process for customers who are 70 years of age or older, the company takes
measures to confirm they have the intention of buying the insurance policy by recommending thata family member accompanies the customer, providing sufficient time for the customer to fully consider the features of a product, and similar. In addition, the company has employed universal color
designs in the solicitation materials for customers with partial color-blindness, and universal design
fonts that reduce reading mistakes. This helps customers to accurately understand the contents,
systems, and important matters regarding recommended products. The Shogai Premium World 5 andShogai Premium Japan 5 pamphlets have earned the “easy to look at” design certification from theUCDA. Furthermore, the company has prepared auxiliary solicitation materials that complement our
pamphlets to clearly describe the risks and actual yields of foreign currency-linked single-premium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

1. Provision of Products and Services which Meet the Needs of Society

whole life insurance with foreign exchange risks, as well as videos to introduce and explain our single-premium products, which are posted on our website.

(2) Measures during Enrollment
We introduced the new Family Registration Program, which is a system that enables family members
registered in advance by a policyholder (registered family) to act as a proxy to verify policy details,
obtain various claim forms, and carry out certain claim procedures on behalf of the policyholder. In
addition, the company implements its policy inspection system over the telephone for policyholders
of a certain age and older to verify changes in contact information and identify unnoticed cases of
eligibility for benefit claims, among other matters.
For customers whose postal items have not arrived, the Company looks up addresses and recommends making a bank deposit when the insurance premiums have not been paid, and for customers who have not claimed their hospitalization benefits, the Company implements a text message
distribution service through short message service (SMS).
The Call Center, which serves as the point of contact with customers, has introduced an automatic voice response system in order to answer inquiries from its customers quickly.
In addition, our Kaigo Concierge ancillary service can now be used by a wider range of people incases where there is an application by a policyholder who has added the Long-term Care Dementia
Pension Payment Transfer Rider, Long-term Care Pension Payment Transfer Rider, or Long-term Care
Dementia Prepayment Rider, an insured member, a related spouse, or a family member within two
degrees of kinship.

(3) Measures during Procedures
T&D Financial Life is working to improve convenience for customers to enable them to easily go
through the procedures. It is taking steps to expand the procedures that can be completed by telephone, revise claim documents and use colors for them, and omit the submission of insurance certificates and seal registration certificates, and so on.

2. Providing Wholehearted Reassurance46

2. Providing Wholehearted Reassurance

to health conditions or other factors. The Group’s three life insurance companies and other Group members respect customers’ human rights, and develop and offer many unique insurance products whichmeet a wide variety of customer needs, health conditions, gender, enrollment age and other specificcircumstances at a fair premium.

2-2

Establishment of Solicitation Policies

The Group’s three life insurance companies, T&D Asset Management, and Pet & Family Insurance haveestablished individual solicitation policies for offering life insurance and other products to customers.
Under these policies, each company strives to develop and offer applicable products that meet customers’ needs and circumstances.
Solicitation Policy (In the Case of Taiyo Life)The following are Taiyo Life’s basic solicitation policies for offering financial products, including life insurance, to customers. We always endeavor to develop and offer products in a proper and appropriate mannerin due consideration of customers’ desires, circumstances and privacy in order to provide customers withproper services through consultation.
• We will comply with the applicable laws, rules andregulations in solicitation activities.
• We will endeavor to carry out adequate solicitation activities in consideration of the customer’s
circumstances.
• We will give due consideration to the time and theplace for solicitation activities.
• We will explain the important issues properly.

2-3• We will make efforts to enhance employee
education and our training program.
• We will safeguard customer information
strictly in confidence.
• We will make continuous efforts to establish
an internal structure ensuring adequate solicitation activities.

Efforts to Offer Customer-oriented Services

From contract procedures and after-sales service to payment of insurance claims and benefits, the threelife insurance companies endeavor to provide services with an emphasis on understandability as an
approach to earn trust from customers.
417-1

Awards for Customer Service

Taiyo Life

2-1

Fairness in Offering Insurance Products to the Broader PublicLife insurance is a mutual aid system in which insurance premiums collected from a large number ofpolicyholders are used to fund insurance payments and benefits in the event of someone’s death or
hospitalization. Life insurance companies use the law of large numbers to calculate fair premiums basedon statistical data such as mortality rates and insurance accident rates presented in life insurance tables,
which are calculated separately for each age and gender. Life insurance companies maintain the fairnessof the life insurance system by adding some conditions such as additional premiums, or in the worst
cases by not offering coverage, for those who do not meet the companies’ predetermined standards due

Received an Another Voice Award at the 2022 UCDA Awards
Taiyo Life received an Another Voice Award at the 2022 UCDA Awards, at which the Universal
Communication Design Association (UCDA) commends outstanding communication design.
Award
Another VoiceAward

Explanation
Awarded for something highly
evaluated by consumers

What was Subject to Evaluation
Web (1) Taiyo Life My Page
Web (2) My Page benefit claim procedureSustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

T&D Insurance Group Sustainability Report 2023

Management Control

Third-party Opinion

Index

47

2. Providing Wholehearted Reassurance

Daido Life
Received the highest rank of “3 Stars” for HDI-Japan’s “Quality Rating” for the third consecutive year
Daido Life’s call center (point of contact for customers) and support desk (point of contact for sales
agents) both received the highest rank of 3 Stars in HDI-Japan’s 2022 Quality Rating for the thirdyear in a row.
Received an Another Voice Award and Special Award at the 2022 UCDA Awards•	“Policy Leaflet and Policy Provisions” describing the various procedures when making a contract, andthe structure of the product•	“Understanding/Confirmation of Intent” as a final step to ensure that the customer’s needs are met by
the insurance product offered•	“Overview Materials” which provide a concise overview of the product as well as information about
fees and other matters•	“Important Information Sheet” enabling easy comparisons among diverse products transcending theboundaries of each business category, including the description of products and the like, the anticipated purchasing demographic, risks and fund management performance, costs, cashing and surrenderconditions, the possibility of conflicts of interest, and the overview of taxation.

Daido Life received the following awards in the UCDA Award 2022, at which the Universal
Communication Design Association (UCDA) commends outstanding communication design.
Award

Explanation

What was Subject to Evaluation

Another Voice
Award

Awarded for something highly
evaluated by consumers

Kaisha Minnade KENCO+
Product Pamphlet

Special Award

Awarded for something thathas a unique perspective or
distinct evaluation results

Procedures that Connect (non-face-to-faceprocedures on the web)
(1) Insurance enrollment procedure screens(2) Insurance claim, benefit claim, and cancellation request procedure screens

Received an IT Award (Customer and Business Function Category) at the fiscal 2022 IT Awards
Daido Life received the following award at the fiscal 2022 IT Awards, which are held by the Japan
Institute of Information Technology to recognize companies and other organizations for their outstanding efforts and results in terms of utilizing IT to achieve business innovations.
Award

Explanation

IT Award(Customer andBusiness Function
Category)Awarded for initiatives
involving the utilization of IT toachieve innovations related torelationships with customers

What was Subject to Evaluation
Procedures that Connect

Initiatives by the Three Life Insurance Companies
At the Time of Making a Contract
We work to enhance the understandability of various documents regarding policy procedures.
[Major Documents (including Electronic Forms)]• Clearly worded “Product Pamphlet”•	“Contract Summary” and “Proposals” describing insurance plans tailored to individual needs ofcustomers•	“Warning Information (notifications of important matters when making a contract)” for calling thecustomer’s attention to particularly important points

After-sales Services
We work to ensure customer satisfaction by providing various kinds of information after contracts. We also
work to enhance our services so that the policyholders can make insurance and benefit claims more easily.
[Major Information Provision Services]•	Notification of policy details (from the three life insurance companies)•	Distribution of service guidebooks (Taiyo Life) (T&D Financial Life)•	Distribution of Security Guide (Taiyo Life)•	Notification of account transfer payment (from the three life insurance companies)•	Accounting method guidance service for corporate clients (Daido Life)•	Confirming policy details by visiting customers (Taiyo Life) (Daido Life)•	Confirmation of policy details by using My Page (Taiyo Life) (Daido Life)[Examples of Measures to Facilitate Making Insurance and Benefit Claims]•	Handling of Direct Payment Service* to Medical Institutions of advanced medical care benefits (Daido
Life) (T&D Financial Life)* Through this service, the insurance company pays benefits directly to medical institutions for expensive and advanced medical
treatment such as proton-beam therapy and heavy-particle radiotherapy to ease the temporary burden on its customers. Thesebenefits help customers receive treatment with ease of mind.

•	Distribution of booklets and leaflets that comprehensively describe insurance and benefit claims procedures as well as payable case examples (Taiyo Life) (Daido Life)•	Reimbursement of expenses for obtaining a medical certificate in the event that the related insurance
claim is completely rejected despite that insurance and benefit claims (from the three life insurancecompanies)•	If a claim satisfies certain requirements, submission of medical certificate can be omitted or a copy ofa medical certificate can be accepted (from the three life insurance companies)•	Handling of Invoice-less Payment for paying maturity insurance claims and annuities without submitting claim forms in the case that certain conditions apply (Daido Life)•	Improvement of explanation and advice at Customer Service Center (call center) and branch offices(from the three life insurance companies)•	Introduction of designated proxy application option to allow the pre-registered proxy to file insurance
claims in the event that the policyholder is unable to file the claim for a certain reason (from the threelife insurance companies)•	Provision of insurance claim information and handling of annuity payments without requiring the submission of a life certificate based on the changed Individual Number Card information, etc. of customers who registered or agreed in advance (Daido Life)

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

48

2. Providing Wholehearted Reassurance•	Periodic follow-up of customers who take a long time to submit claim documents despite having
declared an intention to make insurance claims (from the three life insurance companies)•	Services include confirmation of customer intent to file a claim, after which office staff may fill out
claim forms on behalf of the customer, as well as obtaining medical certificates needed for benefit
claims (from the three life insurance companies)•	Implementation of support services that cover everything from the arrangement to the submission of
documents necessary to apply for a physical disability certificate and are provided to customers who
cannot go to municipal offices, etc. due to disabilities (Daido Life)•	Made it possible to designate a signing proxy other than a family member in the event that a customer
has physical difficulty in signing, filling out or affixing their seal to claim forms due to illness or suchlike(from the three life insurance companies)•	Benefit claim procedures via My Page (Taiyo Life) (Daido Life)

2-4

Working Toward Better After-sales Service

The Group’s three life insurance companies have each set up various systems aiming at providing quality after-sales services. At Customer Service Centers, professionally trained staff handles inquiries andinsurance claims from customers nationwide over the telephone in a considerate, polite, prompt, andaccurate manner. Also, all our branch office staff and sales representatives, fully aware of the importanceof post-contract support, attend to individual customers, offering the best possible service to each ofthem. At Taiyo Life, employees visit homes of senior customers at least once a year and check the coverage and missing claims. In the case of senior customers who lack local branches and sales locations intheir neighborhoods, Taiyo Life conducts confirmation activities that combine outbound calls with faceto-face distribution of brochures created for the purpose of, for example, checking unclaimed cases bycourier. Daido Life is conducting activities to confirm policy details where sales representatives and sales
agents regularly give advice on and confirm the policy details and necessary amount of benefits withcustomers. In addition, the company is making efforts to provide detailed services such as suggesting tocustomers that they also take measures against a range of risks and have services useful for the solutionof management issues.

2-5

Other Services

As shown below, the Group’s three life insurance companies offer diverse services to meet the requests
of customers.
T&D Club Off
T&D Club Off offers a range of services to the policyholders of the three life insurance companies
and Pet & Family Insurance that are useful in daily life and enhancing free time activities. T&D ClubOff members can take advantage of a varied selection of over 200,000 facilities and services, such as
hotels inside and outside Japan, leisure facilities, sports clubs, medical check-ups, and car rental, at
special discount rates.

Main Service Details• Domestic hotels, Japanese inns about 20,000 locations• Amusement and theme parks/ About 1,000 locations• Housework services, pet sitting, and phone consultations on health and legal issue
For more details about these services, please visit each company’s website.

Customer Service Center Open for Inquiries on Saturdays and Sundays
In order to provide services to customers who are busy on weekdays but would like to use such services, Taiyo Life’s Customer Service Center, or call center, is open and handles inquiries on Saturdays andSundays from 9:00 to 17:00 as well.
Dedicated Pet Consultation Center “Wan Nyan”
Through Pet & Family Insurance, we have established a pet consultation service that is only available toinsurance policyholders and insured members (pet owners). The service handles inquiries or requests
for information on everyday issues that arise when owning a pet. It is available 24 hours a day online.
Advisors with specialized qualifications respond to a variety of concerns.
Service on the Internet
The Group firms, including the three life insurance companies provide various kinds of information on
their websites. As part of our efforts to improve customers’ convenience, we also offer online services
for payment procedures, inquiries and change of registered information. At Pet & Family Insurance, customers can also purchase pet insurance on the company’s website.
Examples of Internet Services
Taiyo Life
• Inquiries about insurance policy details, Himawari Tsushin (general notice of policy terms), and life
insurance premium deduction certificates (inquiries, downloads)• Claims for hospitalization benefits, etc., change of name and cancellation of foreign currency denominated products (handled by financial institution agents)• Use and withdrawal of funds (loans to policyholders, accumulated dividends, various types of deferredfunds, etc.)• Change of information related to contract, such as change of address, request for adding designatedproxy application option, change of password• Sending application document (for loan repayment)• Reissue of insurance certificates, annuity payment certificates and deferred fund payment certificates• Procedures to change the beneficiaries of death insurance/preregistered proxies of death insurance
benefits• Procedures to apply for or change premium account transfers

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

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49

T&D Insurance Group Sustainability Report 2023

2. Providing Wholehearted Reassurance

Daido Life
• Change of information related to contracts and insurance claims such as changes of address, changesof account, making loans to policyholders or repaying such loans, demands for insurance claims andbenefits, and surrender requests• Life insurance premium payment certificate (reissuance and electronic issuance)• Web-ATM for withdrawing accumulated dividends or deposited money• Inquiries about insurance policy details, inquiries about accounts for automatic withdrawal of insurance
premiums, various inquiries about guidance (guidance on insurance premiums accounting method, etc.)
T&D Financial Life
• Inquiries about summary and details of policies such as coverage details and change in accumulated
funds• Change of information related to insurance contracts and claim procedures (change of address, reissueof certificates for life insurance premium deduction and other matters)• Sending out various forms for procedures (transfer of ownership, changing first or last name, reissue of
insurance policy, etc.)• Transfer of accumulated funds, set up transfer ratio in case of contracts with periodic increase of amount• Increases as necessary (some variable insurance)• Registration and changes to Family Registration Program• Credit card payment changes* For details on the various health/management support services provided by Daido Life for SMEs, see P.41.

Education Programs for New Sales Representatives(New-employee Education Programs and Financial Planner Education Programs)
Pre-examination
training

Training andacquisition of basic
knowledge for
examination on
general education

Preregistration
training

Acquisition of basic
knowledge for
insurance sales,
including knowledge
about products andcontract procedures

Registration

Other Services
We offer a wide range of services. Our private nursing-home referral service (from Taiyo Life) introduces
over 340 facilities nationwide in collaboration with other industries. The best doctors service (from Taiyo
Life) introduces trustworthy doctors and hospitals for when policyholders have serious illnesses. The
adult guardianship system introduction service (from Taiyo Life and T&D Financial Life) introduces experts in the adult guardianship system, which supports people whose judgment ability has deteriorated.
The M3 Patient Support Program (from T&D Financial Life) is a health consultation and support service.

Education Program for New Employees (Taiyo Life)
Taiyo Life has a system in place to train sales representatives to develop their capabilities to design andoffer optimal insurance plans that meet each customer’s needs depending on a variety of factors, including family structure, occupation, income, plan for children’s education, insurance already purchased andso on, aiming to increase each customer’s satisfaction. Our sales personnel undertake internal training
programs and work to obtain external qualifications to gain specialist knowledge on insurance products
as well as tax affairs and financial planning expertise.

Examination on general education

For more details, please contact the Customer Service Center of each insurance company

In Order to Provide Better Services

The Group’s three life insurance companies are working to enhance the skills of their customer service
staff based on a basic knowledge of life insurance, specialist knowledge and compliance essential toincrease customer satisfaction. The Group’s three life insurance companies have diverse staff members,
including sales representatives and customer service staff, who are engaged in duties to provide themost suitable services to customers depending upon each individual business model. We have developed human capital training programs for such diverse staff, and we always work to provide them withthe best educational and training opportunities.

Attendance contract

Pet & Family Insurance• Online application for Genki Number One Slim pet insurance• Inquiries on contents of insurance policies• Changes and procedures related to contracts (pet naming and correction, changes to address/telephone number, changing first or last name of policyholder, changing credit card information, etc.)• Reception of demands for insurance claims• Renewal procedures (reducing value of enrollment plan, changing number of insurance premium payments (changing between yearly and monthly payments), changing enrollment type (dog’s weight))

2-6Training Stage 1

Training Stage 2

Training Stage 3

1st~3rd month

4th~6th month7th~12th month

Deepening understandingof basic productknowledge and improving
sales skills necessary foroffering optimal
insurance plans tocustomers

Enhancing sales skills
and acquiring knowledge
about after-sale services,
including insurance
payout procedures

Developing capabilities
necessary for offering
insurance plans that best
meet detailed needs ofindividual customers withdifferent life plans

FP 3rd Grade

Implementation of Education and Training for In-house Sales Representatives (Daido Life)
Training program in the development period
Daido Life is endeavoring to develop in-house sales representatives (sales staff) with a high level ofknowledge and ethics so that they can comply with laws and regulations and other rules while meetingthe variety of needs of the customers.
The Company positions the three years after joining the company as the “development period” and is
implementing education and training based on D-STANDARD, the Company’s original early training program.

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

T&D Insurance Group Sustainability Report 2023

Governance and Internal Control

Management Control

Third-party Opinion

Index

50

2. Providing Wholehearted Reassurance

In addition to the industry-wide basic education,* the education and training is mainly comprised ofbasic knowledge and sales techniques so that the sales staff can give understandable explanations tocustomers and practice appropriate sales and service activities.
* In addition to basic training and practical training, it implements professional courses, advanced professional courses, and education
based on the continuing education system.

Commissioning
periodExamination on
general education

Basic
training

Training
first stage

Practical
training

Training
second stage

Main examination(first stage andsecond stage)

Regularmembersof staff

Advanced
professionalcourses

Professionalcourses

Implementation of regularly-scheduled training and a full rangeof group training based on the training program

Joining the company

Promotion

3 years

E-DFP Program (Daido Life)
Sales representatives must get a firm grasp of customer needs, which are diversifying and becoming
more sophisticated, and practice high-quality, consulting-oriented sales. For this reason, Daido Life has
set up its own E-DFP (Executive Daido Financial Planner) program with the purpose of enabling its sales
representatives to obtain a wide range of professional knowledge including taxation, finance, and financial products. The E-DFP qualification is awarded to those who have passed all six life insurance college
course examinations and are ranked as a 2nd Grade Certified Skilled Worker of Financial Planning or
above, including AFPs and CFPs.
E-DFP Program (As of March 2023)

Industry-wide
education and exam

FP skill
certification exam

Professional
Course Exam

Advanced Professional
Course Exam

College Course Exam
(6 courses)

Life Consultant

SeniorLife Consultant

Total Life Consultant

3rd Grade Certified Skilled
Worker of Financial Planning

2nd Grade Certified Skilled Worker ofFinancial Planning or above

1,857 staff members (including CFPs and AFPs)

Cooperation with Sales Agents and Cooperating Organizations

Building a Sales Structure Through Collaboration with Partner Organizations (Daido Life)
Daido Life has formed partnerships with SME industry associations as well as the professional organizations of tax accountants, and has built a sales structure aimed at offering applicable life insurance products tailored to the needs of various member companies and the clients of those member tax accountants. Because these partner organizations, tax accountants, and other agents are key stakeholders of
Daido Life, the Company holds regular business meetings with its partners to report the latest businessdevelopments and to hear their views on Daido Life’s business operations.
Sales Agent Support (Daido Life)At Daido Life, the head office and branches work together closely to provide high-quality support forsales agents by assisting them in responding to customers’ diversified needs. As a part of these efforts,
the Company develops programs to offer practical training by using its own e-learning materials, etc. tohelp sales agents acquire broad knowledge on the compliance and insurance business.

Education based on the continuing education system
Presentation
on joining
the company

2-7

Acquisitionof E-DFP
qualification(863 staff
members)

Wholesaler Activities (T&D Financial Life)
T&D Financial Life carries out elaborate support activities for its sales agents, such as financial institutions, through its sales staff assigned to assist sales agents in order to enable them to make the best
proposals to customers. In addition, to win the trust of customers and sales agents, T&D Financial Life
provides practical training to sales staff, to deepen knowledge about insurance and other financial products and enhance sales skills, overall asset management, related laws and regulations as well as improve
presentation skills for accurately explaining features of our products to customers and sales agents.
Proposal of Welfare Systems to Companies and Organizations (Taiyo Life)
Taiyo Life is engaged in proposal activities for group insurance in order to enhance the welfare systems
of companies and organizations. Due to changes in the environment such as the arrival of the era of
the 100-year life and the progress of work style reform, the needs with respect to the welfare systems
of companies are also diversifying. In that context, in order to alleviate the burden of nursing care, theCompany is handling products tailored to the era, including Group Life Nursing-Care Insurance, which
initiates payments when the parents of employees enter long-term care, the Monthly Fee Support Plan,a group annuity system which offers lifetime annuity support for the fees charged by homes for theelderly and other expenses.
In April 2022, based on the fact that the average number of days of hospitalization is decreasing due
to medical technology advances and other factors as well as the fact that outpatient surgeries are increasing, the Company developed and introduced Group Hospitalization Lump-Sum Payment Insurance.

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

51

3. Improving Customer Satisfaction

3. Improving Customer Satisfaction
3-1

3-2
417-1

T&D Insurance Group Basic Policy Related to Customer-oriented
Business Operations

The T&D Insurance Group takes “customer-oriented” as a shared Group-wide value and has established the“T&D Insurance Group Basic Policy Related to Customer-oriented Business Operations” in order to conduct fair and adequate business activities with integrity and sincerity that lead to profits for our customers.
In addition, we are working on fostering a corporate culture which respects the intent and spirit ofthis policy.
T&D Insurance Group Basic Policy Related to Customer-oriented Business Operations
1. Providing better products and services
We provides optimal and high-quality products and services tailored to customers’ situations and needs.
2. “Customer-oriented” proposals and sales(1) We make proposals of suitable “customer-oriented” products taking into account customers’situations and intentions.
(2) When selling the products, we work on more understandable information provision to ensure that
our customers can correctly understand the important information pertaining to the products.
3. Improvement of the quality of business operations
In order to build enduring relationships of trust with our customers, we work on improving the qualityof business operations, including readiness for after-sales services and development of the administration and systems.
4. Appropriate management of conflict-of-interest transactions
In order to ensure that the interests of our customers are not unjustly prejudiced, we have formulated
and announced a policy for appropriately managing transactions which could constitute conflicts ofinterest, and we are appropriately ascertaining and managing transactions which could constituteconflicts of interest.
5. Development of human resources who practice “customer-oriented” actions and other activities(1) We thoroughly instill “customer-oriented” attitudes in our corporate officers and employees, andin order to build enduring relationships of trust with our customers, we develop human resources
who have high ethics and are also equipped with specialized knowledge.
(2) We are working to build a framework which encourages actions based on this policy.
6. Promotion framework
In order to promote “customer-oriented” corporate activities based on this policy, the group companies operating the financial businesses separately formulate policies pertaining to the initiatives of
their own company, regularly report the status of their initiatives based on the policies to the Board of
Directors and other bodies, and announce the content of the reports. In addition, we regularly carryout confirmations of whether revisions of this policy or the policies of each company are necessary.
* The Group’s Basic Policy Related to Customer-oriented Business Operations complies with all the Principles for Customer-Oriented
Business Conduct published by the Financial Services Agency (FSA).
* The policies on implementing initiatives and specific content of the initiatives of the group companies can be seen at the Company’s
website. (Japanese)WEB

https://www.td-holdings.co.jp/information/business_operations.html

Initiatives to Respond to Customer Feedback

2-29

To respond to the changing needs of society through the provision of better products and services, ourthree life insurance companies have set up a number of points of contact with customers, such as sales
representatives, sales agents, call centers (customer service centers), and the Internet to collect asmuch customer feedback as possible. In addition, the company is conducting customer satisfaction surveys to inquire about the level of satisfaction provided by our products, services and after-sale services.
System to Reflect Customer Feedback in Operations
The Group’s three life insurance companies have set up dedicated departments and committees that
include external members to oversee our customer-oriented business operations. We have built a comprehensive system ensuring customer satisfaction at all stages of interaction with customers, frommaking contracts to payment of insurance claims and benefits, based on our customer-oriented business
operation policy and specific guidelines for the amelioration of customer complaints. All the feedback
collected from customers is input into a centrally managed database and shared by the relevant units
for the development and quality improvement of products and services, as well as for the improvementof business practices.
System for Reflecting Customer Feedback in Operations (Illustration is an example from Daido Life)
Customers

CustomerFeedback Council*2

Complaints, opinions,requests, appreciation, etc.

Customer contact points
CallcenterWebsiteBranchofficeSurveys (tacit opinions)
Various customer surveys

Gathering andanalyzing customer
feedback

Compliance Promotion Department

Improve operations
from the perspectiveof customers

Operational departmentsCollection by employees
System for
proposingnew measuresand the like

Smile
Post

Customer
information
meetings

Opinions that were given
by experts fromthe customers’ pointsof view

Compliance Committee*1[ Deliberate across divisions, including the Sales Division, Policy Division, Internal Control Division ]Report and proposals

Board of Directors/Executive Management Board*1 C
 ompliance Committee
We established the Compliance Committee with the objectives of developing and establishing a compliance promotion framework on acompany-wide basis and further promoting our corporate motto of “customer-oriented corporate activities.” In addition to continuously
reviewing all processes from insurance solicitation to payments from the perspective of customers, the Compliance Committee makes
reports and proposals for promotion of improvements to the Board of Directors and the Executive Management Board.
*2 Customer Feedback Council
The company has established the “Customer Feedback Council” in order to utilize the insights of outside experts in sound business operations from the perspective of customers. The Customer Feedback Council monitors the situation with business operations related to
improving customer service and reviews the adequacy and effectiveness of the content of deliberations by the Compliance Committee.

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

Index

52

T&D Insurance Group Sustainability Report 2023

3. Improving Customer Satisfaction

Examples of Reflecting Customer Feedback in Operations

Daido Life

Taiyo Life
Customer Information Meetings
Taiyo Life holds regular meetings with policyholders, called Customer Information Meetings, in order tohelp them gain a deeper understanding about Taiyo Life and life insurance, as well as to ask them fortheir opinions and requests regarding our products and services. At Customer Information Meetings, thecompany explains its management policy and yearly performance, information regarding the services it
offers to customers, new products, and similar. The valuable opinions we have received from participating customers are used to improve our business practices and customer services.

Customer Satisfaction Surveys
To help identify hidden issues related to Daido
Life’s business that are difficult to uncover bypassively receiving customer opinions andrequests, we conduct customer satisfaction
surveys filled out by business owners/managers that inquire about the level of satisfaction provided by our products, services, andafter-sales services.

Acquiring a Third-party Opinion on ISO 10002 Compliance
In March 2008, Taiyo Life declared the introduction of ISO 10002, an international standard for handlingcomplaints as regards quality management, customer satisfaction and guidelines for complaints handling in organizations, and since then has been committed to continually enhancing customer-oriented
service and operations by utilizing customer feedback (including complaints). In March 2023, following
on from March 2022, we obtained a third-party opinion on ISO 10002 compliance that recognized ourcomplaint management system as complying with ISO 10002 and functioning effectively. We have beenworking to improve our business processes based on ISO 10002 and educate employees through training programs.
Customer Complaints* by Type

(Units: no. of complaints received; proportion: %)FY2019Type of feedback

No.
received

FY2020%No.
received

FY2021%

No.
received

FY2022%

No.
received

31.3

1,907

31.7

2,170

32.6

1,919

20.8

406

6.2

355

5.9

381

5.7

375

4.0

Conservation work

1,211

18.5

1,203

20.0

1,246

18.7

1,067

11.6

Insurance claims andbenefits

1,272

19.4

1,060

17.6

1,508

22.6

3,947

42.8

Payment of premiums

Others

1,616

24.6

1,498

24.9

1,355

20.3

1,918

20.8

Total

6,557

100.0

6,023

100.0

6,660

100.0

9,226

100.0

* “Complaints” refers to an expression of dissatisfaction by customers.
For details on examples of improvements Taiyo Life has made by utilizing customer feedback, please see Taiyo Life’s website. (Japanese)WEB

https://www.taiyo-seimei.co.jp/company/activity/voice/voice_casestudy.html

82.3%

81.1%

Very satisfied 9.0%

9.3%

9.2%

Satisfied 28.0%

28.5%

27.9%

24.8%

Fairly satisfied 43.0%

44.5%

44.0%

44.2%

FY2019FY2020

FY2021

FY2022

80.0%

10.0%

Satisfaction Level for Each CaseAt the time ofenrollment

After
enrollment

At the time ofclaim payment

86.1%(+0.5pt)

76.4%(-2.9pt)

83.7%(-1.9pt)* The figures in the brackets is the comparison with fiscal 2021

(Units: no. of complaints received; proportion: %)FY2019Type of feedback

79.0%* The customer satisfaction level is a total of the top three items (Very satisfied,Satisfied, Fairly satisfied) out of seven levels: Very satisfied, Satisfied, Fairly
satisfied, Cannot decide, Somewhat dissatisfied, Dissatisfied, and Very
dissatisfied.

Customer Complaints by Type

%

2,052

New contracts

Response to Customer Complaints
We define “complaint” as an expression of
dissatisfaction by a customer regarding thecompany’s operations. Upon receiving complaints, we immediately respond in a sincere
manner, setting out to resolve such issues. At
the same time we take these complaints asvaluable information to be used for improving
our business processes.

Customer Satisfaction Level(Corporate and Individual Business Owners)

No.
received

FY2020%No.
received

FY2021%

No.
received

FY2022%

No.
received%

Purchase of life insurance policy

919

11.8

809

13.1

802

13.4

774

12.3

Payment of premiums

639

8.2

429

6.9

454

7.6

355

5.6

Procedures after making
a contract

2,685

34.4

2,200

35.6

2,015

33.8

1,815

28.9

Payment of insurance
claims and benefits

1,475

18.9

980

15.9

1,087

18.2

1,556

24.8

Others

2,091

26.8

1,763

28.5

1,607

26.9

1,785

28.4

Total

7,809

100.0

6,181

100.0

5,965

100.0

6,285

100.0

* As percentages are rounded to the second decimal place, totals will not necessarily add to 100.
For details on initiatives pursued by Daido Life to make business improvements based on customer feedback, please see Daido Life’s
website. (Japanese)WEB

https://www.daido-life.co.jp/company/satisfied/voice.html

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

Index

53

T&D Insurance Group Sustainability Report 2023

3. Improving Customer Satisfaction

T&D Financial Life

Provision of Information on the Internet

Customer Survey
T&D Financial Life conducts a customer satisfaction survey to proactively reflect customer feedback incustomer service and operational quality improvements. This survey includes questions about the quality
of T&D Financial Life’s customer support such as the understandability of application forms and documents involved in various procedures and the quality of call handling by the Customer Service Center
staff. Results of customer surveys are available on our website.

T&D Financial Life discloses a summary of information regarding customer feedback, such as frequently
made complaints, comments and requests, on its website.

Q.
How did you feel about completing theapplication forms and the explanationof the required documents?

Fairly easy tounderstand
17.8%

Q.
How did you feel about the quality ofcall handling by our Customer Service
Center staff?

Easy tounderstand
62.9%

Fairly easy tounderstand
11.0%

Easy tounderstand
66.4%

Easy to understand …………………62.9％

Easy to understand ……………… 66.4%

Fairly easy to understand

………

17.8％

Fairly easy to understand ……… 11.0%…………………………………………

16.5％

Average ………………………………………… 19.8％

1.5％

Fairly hard to understand ………… 1.1％

Hard to understand …………………… 1.3％

Hard to understand …………………… 1.7％

Average

Fairly hard to understand…………

With respect to the application forms,
80.7% of respondents said that they
were “Easy to understand” or “Fairly
easy to understand.” With respect tothe manner in which our Customer
Service Center staff handle calls,
77.4% of respondents reported thatthey were “Easy to understand” or“Fairly easy to understand.”

Outline of survey
Methodology: The survey, together with documents forprocedures, was sent to customers whopurchased insurance policies through financial
institution agents and requested insurance
conservation procedures.

Survey period: June 2022 to March 2023

No. of Surveys sent : 9,421
Valid responses: 545

Response rate

: 5.8%

Customer Complaints* by Type

(Units: no. of complaints received; proportion: %)FY2019Type of feedback

No.
received

FY2020%No.
received

FY2021%

No.
received

FY2022%

No.
received%

New contracts

295

24.0

209

23.6

284

32.8

315

36.5

Payment of premiums

95

7.7

60

6.8

69

8.0

45

5.2

Procedures after making
a contract

500

40.6

371

41.9

310

35.8

328

38.0

Insurance claims andbenefits

156

12.7

146

16.5

118

13.6

105

12.2

Others

185

15.0

100

11.3

86

9.9

70

8.1

Total

1,231

100.0

886

100.0

867

100.0

863

100.0

* “Complaints” refers to customers’ complaints and dissatisfaction about products and services, and expressions of dissatisfaction.
For details on major initiatives pursued by T&D Financial Life in fiscal 2022 to make improvements based on customer feedback, please see
T&D Financial Life’s website. (Japanese)WEB

https://www.tdf-life.co.jp/company/solvency/2022.html

54

T&D Insurance Group Sustainability Report 2023

Priority Theme 2

Provide Workplace Environments that
Enable All People to Participate Actively
3-3

We believe that in order to provide workplace environments that enable all people to participate actively, it is necessary
to respect the individuality and diversity of all people, while realizing a healthy and safe work environment. In the T&D Insurance Group’s CSR Charter and Human Rights Policy, we clearly state our respect for the human rights of all people andthe individuality and diversity of all employees, as well as our commitment to nurturing human resources and creating aworkplace environment that guarantees health and safety for all. Inadequate actions regarding respect for human rights inrelation to business may result in the risk of losing the trust of society. We believe that in order to realize a sustainable society, it is necessary to support and show respect for the protection of human rights, and to promote the creation of a healthyand safe working environment where employees are able to respond to the needs of society. We also believe that suchmeasures will serve as opportunities to further vitalize the Company, and are promoting various initiatives accordingly.

Connected social issues and group initiatives to solve themPrimary Stakeholders

Initiatives

Respect worker personalities anddiversity
Support human resources andskills development

Social Issues

Employees

Education and training centered on on-the-job training, group training, support for personal development, andreskilling/relearning
Promotion of employment for persons with disabilities, implementation of training on LGBT (sexual minorities),and establishment of a consultation desk for each kind of harassment to respect and promote diversity

Promote the advancement of women
Create healthy and safe workplaceenvironments

Employees

Establishment and implementation of action plans for encouraging the active participation of women and targets
for promoting female employees to management positions
Establishment of systems for returning to the workplace from childrearing, including returning to work afterchildcare leave

Increase employee
engagement score
year-on-year until fiscal 2025

Initiative results and plans
PolicyResults for FY2022

Planned for FY2023

To respect the human rights of all
people, respect the personality anddiversity of our employees, ensure ahealthy and safe working environment,
and develop our human resources

Revised personnel and compensation systems so that diverse human resources can participate actively

We will continue to create a flexible and dynamic workplace where diverse personnel can demonstrate theirabilities with job satisfaction and a desire to grow nhanced various support systems to enhance the work-life balance, including balancing work with childcareEand nursing care
Encouraged male employees to take childcare leave he three life insurance companies were recognized as Certified Health and Productivity Management
T
Organizations “White 500”
 romoted an internal structure enabling diverse work styles, including the utilization of a home-based workPsystem and a satellite office work system, etc.

Sustainability Management

Organizational Profile

Priority Theme

T&D Insurance Group Sustainability Report 2023

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

Index

55

1. Human Capital Management

1. Human Capital Management

1-1

3-3

404-2

Human Resources Development Policy

At the T&D Insurance Group, we believe that our human resources, working side-by-side, are the mostimportant driving force behind our business activities to fulfill the T&D Insurance Group’s corporate
philosophy. Since its foundation, the Group has promoted the nurturing of a corporate culture where adiverse workforce can feel job satisfaction and reach its potential and has established the Basic Group
Policy on Human Resources which aims to clarify the basic policy for human resource management
within the Group. Under this policy, in which T&D Holdings and each Group company aim to improvetheir corporate value by leveraging the unique and specialized nature of their respective business strategies, each company formulates its own education and training plan and strives to develop and enhance
the skills of its employees.

1-2

Initiatives to Provide Opportunities for Growth

The three life insurance companies conduct education and training, primarily through OJT (on-the-job
training), group training, support for personal development, and reskilling/relearning. Each Group company encourages autonomous career development by each employee, by actively helping them to acquire
qualifications and offering a diverse curriculum, including correspondence education, online courses, ande-learning, according to their educational plans.
Taiyo Life, Daido Life, T&D Financial Life
The three life insurance companies support employee career formation, by providing opportunities
to actively pursue skill development.
In-house Recruiting
Under this system, employees can take up various challenges, such as application for dispatch
to companies outside of the Group, positions of their choice, MBA programs, and application for
dispatch to business schools.
Personnel Exchange within the Group
Personnel exchange is promoted among Group companies for facilitating the sharing of the welldeveloped skills and useful knowhow possessed by each Group company.
Phase I (2008–2012): Temporary transfer or transfer to other Group company for 1 to 2 years
Phase II (2013–): Short-term training program for a maximum period of 1 month was introduced• Number of participants in fiscal 2018: 37 employees• Number of participants in fiscal 2019: 42 employees• Not held in fiscal 2020 and 2021 to prevent the spread of COVID-19• Number of participants in fiscal 2022: 40 employees

Global Human Resources Development
Taiyo Life
Taiyo Life is dispatching employees overseas in order to develop personnel capable of successfully
working on a global level. In addition, it dispatches a number of employees to the asset management companies overseas to acquire high-level asset management knowledge.
Daido Life
In order to nurture global talent through diverse experiences, Daido Life offers employees the opportunity to undertake internships at overseas companies and MBA studies overseas.
Provision of Reskilling and Relearning Opportunities
Taiyo Life, Daido Life, T&D Financial Life, T&D Asset Management
We provide time- and location-independent online learning materials to encourage the acquisition ofknowledge and skills by employees who wish to develop themselves.
Management Training
Taiyo LifeFor managers and managerial candidates, in-house training is offered throughout the year to impartmanagement knowledge and skills for managerial positions, and some are sent to business schools
for further training. In addition, training on 1-on-1 meeting techniques is provided to managers to
support the growth of their staff. From fiscal 2020, Taiyo Life has been bolstering educational opportunities and strengthening initiatives for manager development.
Daido LifeAt both the head office and branches, newly appointed managers are given training with the goalof improving managerial capabilities, and a select number of newly appointed managers are sent
outside the company to graduate schools and business schools for further training. Furthermore, tohelp employees recognize their own unconscious biases and to assist in their autonomous careerdevelopment, they are provided with skills training through guided learning, including training on
ways to reduce biases related to age and gender.
T&D Financial Life
Training for newly appointed key managers is conducted to help them acquire the foundational
management skills required for key management positions and reinforce their understanding ofrisk management, compliance, accounting operations, personnel evaluations, work management,
and more. Furthermore, training for newly appointed managers is provided to reinforce their understanding of the role of managers, personnel evaluations, and work management.

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

Index

56

T&D Insurance Group Sustainability Report 2023

1. Human Capital Management

Daido Life
Job Definition Documents (Provision of Job & Skill Maps)
The Company has prepared “job definition documents” that describe the knowledge, experience, andso on, required for every job of the Company, and are
documenting the development status of individuals(the acquisition of the necessary skills) in relation totheir roles. Based on this information, employees canclarify the position and career plan they are aiming for,and take specific actions such as skill development
and self-improvement.
Daido Life was recognized in the “2017 Good Career Company Awards as the winner of theGrand Prize (MHLW Minister’s Award)” for its initiatives supporting employees’ self-determined
career formation and visualization of individual careers using Challenge Navi, our intranet portal for
all things related to human resources development.
Building a New Training System
To help each employee realize his or her career goals based on his or her own experiences and values, the Company is working to create a personalized learning environment that supports diverse
and autonomous learning, including the expansion of training programs, both selective and open
to all, that allow students to independently acquire knowledge and gain experience. Moreover, thecompany and its managers offer assistance to each employee taking up the challenge of achieving
an autonomous career path.

1-3

Systematic Personnel Rotation

T&D Insurance Group implements systematic rotation taking into account the career aspirations, ability,
and suitability of each individual with respect to human resources deployment needs under the businessstrategies of the T&D Insurance Group and each Group company, to ensure that each employee canmake maximum use of the skills they possess. Young employees are assigned to different parts of theorganization and different job areas for a certain period after joining the company. By moving between
the head office and branches, as well as sales and administration, these employees work to acquirebasic knowledge and hone their skills. Similarly, with regard to management staff, employees who haveexperience as head office division managers are put into positions such as branch general managers,
while branch managerial staff are assigned to the head office, with the aim of improving their managerial
capabilities. In addition, employees are assigned to highly specialized departments in accordance with
their own characteristics, experience, and career aspirations, and they are developed into staff possessing specialized knowledge based on their operational experience and the development plans createdfor each division. With the objective of the development and expansion of the population of the humanresources responsible for managing the T&D Insurance Group, in which a variety of companies exist,
rotation from each company within the Group to T&D Holdings and personnel exchanges and dispatcheswithin the Group are implemented, encouraging greater mobility of human resources within the Group.

1-4

2. Diversity Promotion Initiatives

Promoting the Active Participation of the Elderly

3-3

The Group’s three life insurance companies have introduced a reemployment system for employees who
are reaching the mandatory retirement age. Also, in order to promote work style reform, we are working
to give older people the opportunity to actively participate, and each Group company has introduced
various systems according to its particular situation. Also, Taiyo Life holds life planning seminars for employees before they reach the mandatory retirement age, to give them an opportunity to think about theway they want to work and live in the future.
Taiyo LifeIn responding to changing lifestyles and other factors, on April 1, 2017, Taiyo Life introduced a mandatory retirement age of 65 for administrative personnel, as well as a continuing employment system that
extends employment up to the age of 70. At the same time, it abolished the mandatory retirement ageof 57 for managerial personnel and rolled out a scheme under which company-approved employees
can be appointed to the position of manager until the age of 65. In April 2020, Taiyo Life overhauled its
performance evaluation standards so that it could better manage the mandatory retirement plan (65years of age), let employees of all ages, including senior employees, demonstrate their capabilities
more than ever before, and establish an environment in which employees can thrive in managerial positions. It also introduced a performance-based personnel system with the aim of developing an environment in which employees can work with a competitive spirit and be highly motivated regardless of age.
Daido Life
From April 1, 2022, the mandatory retirement age was extended to 65 years old and a reemployment system enabling employees to work up to 70 years old was newly established. In order tomeet the needs of diverse work styles, employees 61 years old or older are provided the option ofworking on alternate days in addition to the option of full-time work. To put in place a work environment in which employees can more easily achieve their life plans, Daido Life has introduced a Home
Base system for personnel employed on a nationwide basis who are 55 years old or older thatencourages assignment to positions at offices in the location they hope for, such as their homes.

2. Diversity Promotion Initiatives
2-1

3-3

Employment of Persons with Disabilities

As of the end of March 2023, a total of 493 employees with disabilities, including 30 new recruits forfiscal 2022, worked at the three life insurance companies, which account for 2.48% of the total numberof employees. We have put in place several measures designed to create a comfortable workplace for
employees with disabilities. As a pre-hire initiative, we encourage the attendance of a placement support
worker at job interviews, so that job candidates can go through the screening process without worry.

Sustainability Management

Organizational Profile

Priority Theme

T&D Insurance Group Sustainability Report 2023

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

Index

57

2. Diversity Promotion Initiatives

We also hold workplace tours for candidates to prevent assignment mismatches. After hiring, we strive
to provide company-wide support, through measures such as preparing a comfortable working environment by introducing specialized computers and other equipment, and taking commuting routes into
consideration. In addition, job coaches who specialize in support for employees with disabilities are dispatched to the company, and a placement support worker holds interviews together with the employee
and his or her supervisor, and offers advice. We will continue working to create a workplace environmentthat encourages and supports persons with disabilities in working comfortably, and to expand employment opportunities for persons with various disabilities.
Employment of People with Disabilities at the Three Life Insurance Companies
indicates limited verification has been carried out by a third party. (P.77 “3–5 Independent Assurance Report”)

Employment rate of people
with disabilities

FY2020

FY2021

FY2022

2.60%

2.54%

2.48%

* The organizations covered by the calculation of the employment rate of people with disabilities are Taiyo Life, Daido Life, and T&D Financial Life.
* The employment rate of people with disabilities is calculated based on the Act to Facilitate the Employment of Persons with Disabilities, etc.

Daido Life
With the aim of creating workplaces in which a highly diverse workforce can thrive, Daido Life continues to establish safe and comfortable working environments for people with disabilities. As partof this initiative, in February 2018 the Company set up ACT* at its head office. This administrative
services team of employees with disabilities currently has 16 members (as of March 2023).
* ACT is both an acronym for Advance Challenged Team, and a reference to persons with disabilities acting, or taking part, in society.
The company has distributed communication boards and tablets installed with “UDTalk,” an app that converts voice to text in realtime, to the head office and branches where employees with hearing disabilities work.

2-2

Human Rights Education

412-2

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 and LGBT
orientation, to deepen employees’ understanding of the importance of respecting human rights.
Taiyo Life
With the aim of deepening an understanding of humanrights issues and cultivating a spirit of respect for human rights, the company has created a Human Rights
Education Program, which holds courses for all employees on the topic of human rights. In fiscal 2022, thecompany held four in-house study sessions for administrative personnel on various human rights issues, suchas international human rights standards and harassment. Worksite study sessions for branch employees
were conducted by outside instructors.

Training was also held for persons in management positions on the theme of cultivation ofharassment-free workplace and administrative personnel also received harassment training (viae-learning).

Daido Life
With the aim of raising awareness about human rights issues, Daido Life has all employees, including dispatch workers, receive training on human rights awareness.
In fiscal 2022, manager training, video viewing training, and workplace training sessions were
held on the theme of harassment prevention. The sessions focused on the key topics of: (1) preventing harassment, and (2) workstyle reforms and creating workplace environments in which adiverse workforce can thrive. Furthermore, training utilizing a suitability test which can assess thedegree of risk that a manager will engage in power harassment was held for persons in management positions in the head office and branches. A human rights awareness survey was also administered with the aim of confirming and raising awareness of human rights.
In addition, the company participated in lectures on human rights awareness outside the company and engaged in awareness activities on various human rights issues, and similar activities,
and the company accepts in-house proposals for a human rights slogan and carries out initiatives
to deepen employees’ knowledge of human rights through awarding prizes and displaying posters
at the company.

T&D Financial LifeThe company holds human rights training to allow all employees to deepen their knowledge andunderstanding of human rights, and to proactively confront human rights issues. This training alsoseeks to assist each and every employee in maintaining mental health, and to cultivate a healthy,
harassment-free workplace environment by providing employees with a better understanding of
mental health and harassment (sexual harassment and power harassment). In fiscal 2022, the company held human rights training for all employees on topics such as responding to LGBT issues in
the workplace and harassment. Training on cultivating a harassment-free workplace environment
was also conducted for all personnel promoted to management positions.

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

T&D Insurance Group Sustainability Report 2023

Management Control

Third-party Opinion

Index

58

2. Diversity Promotion Initiatives

2-3

Initiatives to Support Active Participation of Women

The T&D Insurance Group has accelerated efforts to create a corporate culture where a diverse workforce can feel job satisfaction and reach their potential. The Group recognizes that enabling women tofurther reach their potential is an important driver of sustainable growth in corporate value, and that theiractive participation is a crucial management priority for the Group. With this in mind, the Group’s threelife insurance companies are working to revise their respective personnel and compensation systems, aswell as introducing various support systems to enhance employees’ work-life balance, including balancing work with childcare and nursing care. In addition, by fostering a Group-wide collaboration to reduce
total working hours and encourage male employees to take childcare leave, we are making an effort tocreate rewarding workplace environments where everyone is motivated to play an active role. To steadily
advance these initiatives and promote the active participation of female employees, the Group’s threelife insurance companies have each formulated action plans based on their respective business models.
Action Plan: Promote Active Roles for Women at the Three Life Insurance Companies
T&D Insurance Group has disclosed action plans for promoting the active participation of women and targets forpromoting female employees to management positions. The ratio of female managers has been steadily increasing.
Action Plan
[Initiatives]
Implement systematic cultivation andpromotion of female employees tomanagement positions
Enhance career development andwork-life balance support measures
Transform the mindset of managers
Targets set for promoting
female employees tomanagement positions(Achievement deadline)

Create an environment
where diverse humanresources candemonstrate their abilities
and play an active role

Promote diverse work
styles and support
new challenges

30% or more (by April 2030)

Ratio of female
managers

Ratio of female managers (Total of the three companies)

16.2%

April 2019

Become a company wherefemale workers canwork free from anxiety andreach their full potential

17.0%

April 2020

17.9%

April 2021

19.1%

April 2022

21.9%

April 2023

Taiyo Life
• Appointment of A Female Director
The company’s first female executive officer appointed in April 2017 has been appointed as a director in June 2018.
• Establishment of Diversity Promotion Division
In April 2023, the Company established a new Diversity Promotion Division in the Personnel
Department and strengthened our system to support women’s career development in various ways.
• Education for Female Managers
Group training is conducted on a continuous basis, not just when employees are promoted to

management positions, providing opportunities for female managers to proactively draw their career paths and acquire the necessary knowledge and skills.
• Nurturing Female Candidates for Management Positions
To encourage women to think about pursuing management positions at an early stage, it conducts
selective group training to deepen self-understanding, promote clarity of career vision, and create
opportunities for female management candidates to interact with each other.
• Preparing an Environment to Enable Flexible Work Styles
To support balancing work with nursing care and injury or illness, in addition to the traditional system of taking time off to focus on nursing care and treatment, in April 2020 Taiyo Life introduced a
new system that lets employees work only three or four days a week if they need to take time off
to provide nursing care or undergo treatment, and added cancer treatment to the scope of hospitalleave. Moreover, in January 2021 the company made it possible for workers to take time off in unitsof 10 minutes to look after their child if they have fallen ill or for nursing care and from April 2022
use of hospital leave in units of 10 minutes also became possible.
Daido Life• Greater Opportunities for Participation
Daido Life is working to support the career formation of female employees and improve managers’
capabilities in supporting them. For example, it has put in place a comfortable workplace environment
by implementing numerous support measures that aim to boost career mindsets and expand horizons. It is also working to expand career options by introducing a “Dokodemo Honsya” remote work
initiative that allows employees to work on the head office tasks even if they live in a rural area. Also,in April 2021, Daido Life appointed a new female executive officer, and in June 2021, it promoted its
first female executive officer (appointed in April 2018) to Director and Managing Executive Officer.
• Career Challenge System
The company provides opportunities for growth by enabling employees to gain a wide range ofbusiness experience, beyond the work they have previously engaged. These include in-house internships that allow locally based employees who have few transfer opportunities to leave theirworkplace for short periods to try a different job, free-agent style applications for in-house jobs, andwork assignments at outside companies in Japan.
• Development of Female Managers
For the purpose of nurturing female managers and enhancing awareness about furthering theircareers, Daido Life is endeavoring to improve the managerial capabilities of female managers withthe use of a mentor system whereby officers or general managers offer their support to newly
appointed female managers, in addition to dispatching female managers to universities and otherinstitutions. And in an effort to expand opportunities for female employees to take on new responsibilities and bigger roles, the company has an all-star program that runs over a number of years,
which aims to systematically nurture candidates for general/branch manager positions.
T&D Financial Life
• Training to Support Women’s Active Participation
Group training is held regularly on topics such as Communicating with the People around You,
Demonstrating Leadership, and Guiding and Nurturing Subordinates and Juniors, with the aim ofallowing female employees to envision the type of leader they should become, and to acquire theskills necessary to do so.

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

Index

59

T&D Insurance Group Sustainability Report 2023

2. Diversity Promotion Initiatives

2-4LGBT-friendly

Welcomed by the Group
Underpinned by its basic approach to respecting human rights expressed in the T&D Insurance Group’s
Human Rights Policy, the Group strives to develop a workplace environment in which each and every employee can fully realize their own potential. From the viewpoint of diversity, each Group company is addressing LGBT (sexual minorities) issues by running training sessions and setting up consultation desks.
Daido LifeIn April 2018, Daido Life began treating same-sex partners as spouses under the company’s leaveand benefit program.
Major Applicable Systems• Leave, short working hours • Recreation facilities• Family transfer system • Company housing/transfer allowance• Daido Life Mutual Aid Fund (congratulations and condolence allowance system), etc.

Customer-oriented
The T&D Insurance Group’s three life insurance companies have also started to allow policyholders todesignate same-sex partners as beneficiaries of insurance benefits, just like for a spouse, by submitting
documents showing that the two people are in a partnership, such as a partnership certificate issued bya local government.
Daido Life
Daido Life is expanding the areas in which same-sex partners living together are accorded the same
treatment as spouses, including procedures for new policies, payments, and policy changes.
Response

Date

Possible to designate as beneficiary for death benefits
Possible to designate as registered family in the Family
Registration Program
Possible to sign on behalf of a partner for procedures such as
new policies, payments when the partner is unable to do sofor him/herself
Possible to designate as a preregistered proxy

November 2015

December 2016
April 2018

3. Worker-friendly Work Environment

3. Worker-friendly Work Environment
3-1

Work-Life Balance Initiatives

401-1

401-2

401-3

403-1

403-2

403-3

403-4

403-5

403-6

403-7

405-1

The T&D Insurance Group companies are strengthening various initiatives, including enhancement ofchildcare leave and other systems, reduction of total working hours, and introduction of the home-based
work system and satellite office work system to enable diverse work styles. Accordingly, employees canmake full use of their skills and increase their performance at work, while fulfilling their responsibilities
at home, such as housework, childcare, and nursing care. Furthermore, we believe that in order topromote the active participation of women, it is essential to create a workplace where women can continue working long term, while experiencing life events such as marriage and childbirth. As part of these
efforts, the Group as a whole is striving to realize work-life balance by encouraging men to participate
in childrearing, and the percentage of male employees taking childcare leave has reached 100% at thethree life insurance companies.

Taiyo Life
Taiyo Life is taking steps to reduce overall working hours and encourage its employees to takepaid leave. A number of flexible working options are on offer; for example, the company rolled out
a system that allows workers to take time off in units of 10 minutes to look after their child if they
have fallen ill or for nursing care, while the scope of Taiyo Life’s shorter working hours system was
expanded to include employees with children up until the end of elementary school. Also, Taiyo
Life’s flextime system can now be utilized by employees working shorter hours. The company also
has other systems in place that go above and beyond what is required by law. For instance, a nursing care leave system that can be utilized for up to three years, a childcare leave system available
to employees with children no older than three years, and paternity leave for male employees of
one month or more. Also, in April 2020 Taiyo Life introduced a new system that lets employees
work only three or four days a week if they need to take time off to provide nursing care or undergo
cancer treatment. Support for employees balancing work with nursing care or medical treatment isalso being expanded with cancer treatment being added to the scope of hospital leave, which waspreviously limited to pregnant employees, employees that had recently given birth, or employees
undergoing infertility treatment. Moreover, in January 2021 the company made it possible for workers to take time off in units of 10 minutes to look after their child if they have fallen ill or for nursing
care and from April 2022 use of hospital leave in units of 10 minutes also became possible.
Daido Life
Efforts are being made to reduce working hours, such as the implementation of automatic computer

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

Index

60

T&D Insurance Group Sustainability Report 2023

3. Worker-friendly Work Environment

shutdown. In addition, the company is promoting work styles that allow employees to balance theirjobs with life at home, such as encouraging employees to take paid leave and make use of thehome-based work system. In 2017, the company was recognized by the Ministry of Internal Affairs
and Communications (MIC) for initiatives such as its home-based work system, receiving the MIC
Award as one of the Top 100 Telework Pioneers. Later, in February 2019, Daido Life was awarded the
Excellence Award at the Telework Promotion Awards held by the Japan Telework Association, and in
November 2019, the company took home the Shiny Telework Prize Excellence Award implemented
and selected by the Ministry of Health, Labour and Welfare. Further, in January 2021, the company
introduced an hourly leave system for paid leave and caring for sick family members/nursing careleave which enables employees to take leave in units of one hour. Also, in April 2021, the company
launched its Work Experience Challenge system with the goal of supporting the development ofeach employee by providing them the opportunity to undertake work experience outside the company, and further, has been promoting initiatives for new working styles, such as the introduction ofprivate shared offices which provides locations for employees to work outside of the office.
T&D Financial LifeThe company is promoting initiatives to reduce working hours by implementing a “No OvertimeDay” and a “Leave Work Early Day,” automatically shutting down computers used for work, andother measures, initiatives encouraging employees to take paid leave such as making it mandatory
to take planned annual leave of five consecutive business days + three business days, and homebased work (telework) systems to realize more flexible work styles. In addition, it is advancing
initiatives for the realization of work-life balance, such as the introduction of the system for shortworking hours which employees can utilize during the raising of children, nursing care, and convalescence from illness, recommending that employees take children’s birthday leave (until the childstarts elementary school), and the introduction of a childcare leave system enhanced above thestatutory requirements.

Acquisition of Nursing-Care Leave

FY2021

FY2022

Number of employees taking maternity leave

372

415

458

Number of employees eligible to take childcare leave

456

497

538

Men

84

82

80

Women

372

415

458

415

463

485

Men

84

82

80

Women

331

381

405

Number of employees taking childcare leave* The acquisition of maternity and childcare leave at the three life insurance companies.
* The number of administrative personnel at the three life insurance companies who have returned to work after taking childcare leave is
as follows.
Fiscal 2020 172 (96.6%) (Men 84 (100%), Women 88 (93.6%))
Fiscal 2021 146 (95.4%) (Men 74 (100%), Women 72 (91.1%))
Fiscal 2022 162 (100%) (Men 78 (100%), Women 84 (100%))

FY2021

FY2022

3

3

1

Men

1

0

0

Women

2

3

1

FY2020

FY2021

FY2022

16.1

16.5

16.7

* Number of administrative personnel of the three life insurance companies taking nursing care leave.

Average Number of Paid Leave Days Taken by Administrative Personnel

Average number of paid leave days taken* Average number of paid leave days taken by administrative personnel of the three life insurance companies.

Number of Employees Hired/Number of Employee Turnover
Number hired
Number ofadministrative
personnel
hired/turnover

Total
Total
Under 30
(men andwomen) 30-50
Over 50

Acquisition of Maternity and Childcare Leave
FY2020

FY2020
Number of employees taking nursing care leave

Men

Women

FY2020

FY2021

Number TurnoverFY2022*

FY2020Percentage
Percentage
Percentage
compared tocompared tocompared to
NumberNumberNumbernumber of
number of
number ofofofof
employees
employees
employees
persons
persons
persons
at fiscal
at fiscal
at fiscal
year end
year end
year end

FY2021

FY2022*

Percentage
Percentage
Percentage
compared tocompared tocompared to
NumberNumberNumbernumber of
number of
number ofofofof
employees
employees
employees
persons
persons
persons
at fiscal
at fiscal
at fiscal
year end
year end
year end

283

4.94%

270

4.71%

291

5.02%

258

4.50%

273

4.77%

261

258

4.50%

234

4.08%

241

4.15%

70

7.22%

77

7.58%

78

4.50%
7.28%

20

0.35%

34

0.59%

47

0.81%

66

2.18%

65

2.22%

101

3.55%

5

0.09%

2

0.04%

3

0.05%

122

7.02%

131

7.36%

82

4.35%

Total

113

1.97%

104

1.82%

133

2.29%

140

4.51%

138

4.50%

120

3.90%

Under 30

99

1.73%

94

1.64%

114

1.97%

24

5.80%

38

9.09%

27

6.17%

30-50

10

0.18%

10

0.18%

19

0.33%

34

2.01%

30

1.84%

56

3.56%
3.47%

Over 50

4

0.07%

0

—

0

—

82

8.25%

70

6.90%

37

Total

170

2.97%

166

2.90%

158

2.72%

118

4.49%

135

5.07%

141

5.18%

Under 30

159

2.77%

140

2.44%

127

2.19%

46

8.27%

39

6.52%

51

8.05%

30-50

10

0.18%

24

0.42%

28

0.48%

32

2.40%

35

2.69%

45

3.54%

Over 50

1

0.02%

2

0.04%

3

0.05%

40

5.38%

61

7.96%

45

5.50%

* The number of administrative personnel hired and leaving employment at the three life insurance companies in fiscal 2022. All percentages are based on the number of employees at the end of fiscal 2022.
* The number of persons leaving employment includes those who have reached mandatory retirement age, those who have left to assume
posts as officers, and those who have died.
* Over 50 includes Fixed-term contract (shokutaku) employees.

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

Index

61

T&D Insurance Group Sustainability Report 2023

3. Worker-friendly Work Environment

Measures to Support Raising the Next Generation

Employee Composition by Age Group

Since the enforcement of the Act on Advancement of Measures to Support Raising Next-Generation
Children in April 2005, the Group has formulated a unified action plan every two years to enhance thechildcare support system and promote work-life balance. Regarding support for the development ofyoung people, the Group’s three life insurance companies received certification as meeting the criteriaof the Act on Advancement of Measures to Support Raising Next-Generation Children (Kurumin certification) for five consecutive biennial periods starting from the first period from April 1, 2005 to March
31, 2007. T&D Asset Management has obtained the Kurumin certification for four consecutive biennial
periods starting from the fourth period from April 1, 2011 to March 31, 2013. Additionally, in April 2008,
T&D Information System became the first company with 300 or fewer employees in the information
services sector in Saitama Prefecture to acquire the same certification. The company received certification under the same initiative for four consecutive periods. Moreover, the Platinum Kurumin System
was initiated on April 1, 2015. This certification is awarded only to Kurumin-certified companies that havesatisfied certain requirements by undertaking even more advanced activities. All three of the Group’s life
insurance companies obtained the “Platinum Kurumin” mark in recognition of their proactive initiatives
as enterprises that support child raising activities. T&D Information System and T&D Asset Management
also obtained the “Platinum Kurumin” in August 2018 and June 2019, respectively.
T&D Insurance Group companies have been certified as being companies that support the raising of children

Number of employees

Total(men and women)

Men

Women

Number of employees
March 31, 2021

March 31, 2022

March 31, 2023

Total

17,945

17,963

18,396

Under 30

2,880

2,967

3,146

30-50

8,000

7,854

8,012

Over 50

7,065

7,142

7,238

Total

3,379

3,356

3,352

438

438

454

1,779

1,723

1,660

Under 30
30-50Over 50

1,162

1,195

1,238

Total

14,566

14,607

15,044

Under 30

2,442

2,529

2,692

30-50

6,221

6,131

6,352

Over 50

5,903

5,947

6,000

* Number of employees at the three life insurance companies (including in-house sales representatives)

Officer Composition by Age Group (as of July, 2023)
Under 30

チ
プ ラ ナくるみチ
プ ラ ナくる
み

チナく
プラ
る

Men

み
ん

ん

ん

Outside officers
ま

サ

す

ポー

ト して いますサてト して い

子育

ポー

て
子育

て
子育

サ

Women
ポー

ト して いますOutside officers
T&D Information System

Workforce Composition
Information Regarding Employees and Other Workers
Category
Employment type/ contract
Full-time,indefinite-term

Socialinsurance

WelfaresystemPaid leave

SalaryAdministrative
personnel

Fixed

In-house sales
representatives

Fixed +
proportionate

Contract employees

FixedFull-time,
fixed-term

Fixed-term contract

Fixed

Part-time,
fixed-termPart-time

Fixed* Exceptions are marked with a.

50 or over

Total

0

30-49

3

66

69

0

1

13

14

0

1

5

6

0

1

2

3

* Outside officers refers to outside Audit & Supervisory Board members and outside directors* Number of officers including executive officers at T&D Holdings and the three life insurance companies

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

Index

62

T&D Insurance Group Sustainability Report 2023

3. Worker-friendly Work Environment

3-2Initiatives Reflecting Employee Feedback

2-29

Each T&D insurance group company conducts an employee engagement score survey every year toassess how motivated and engaged employees feel at work and how proud and aware they feel about
being part of the company, and how voluntarily they are performing their duties. In addition, the Group
Long-Term Vision uses the engagement score as a non-financial KPI to measure the effectiveness ofvarious measures.
Employee Engagement Score
One of the most crucial driving forces that will allow each T&D Insurance Group company to maintainstable and sustainable growth is human resources. Improving satisfaction and motivation levels among
employees is indispensable for the realization of the Group’s various measures. In particular, in today’s
world that is said to be in the era of VUCA, which stands for volatility, uncertainty, complexity, and ambiguity, the autonomous actions of employees are even more necessary, and taking into account thepresent situation that the independent actions of employees based on the creation of job satisfaction has
become even more important than before, we implemented a survey of the employees of the directly
owned subsidiaries, including the three life insurance companies, which focused on employee engagement, one of the non-financial KPIs.

3-3

Employee Questionnaire on Sustainability and CSR

2-29

T&D Insurance Group stresses the importance of communication within the Group and hopes to be able
to grow with every employee—the key stakeholders of the Group—to fulfil the Group’s public mission
and social responsibilities. The T&D Insurance Group Sustainability Report helps raise awareness aboutsustainability and CSR throughout the Group as a mirror for self-reflection. Also, with the objective of enhancing the Group’s initiatives on sustainability and CSR, the Group’s corporate officers and employees
were requested to answer a questionnaire after they had finished reading the report.
[Questionnaire Respondents]
T&D Insurance Group corporate officers and employees* Questionnaires are completed anonymously.

About the Entire Report
Commendable Sections(1) Promote healthy and abundant lives for all people.............. 23.5%(2) Provide workplace environments that enable
all people to participate actively............................................21.9%(3) Social activities.................................................................... 16.8%(4) Help mitigate and adapt to climate change......................... 13.6%(5) Dialogue between expert and executive vice president...... 12.9%(6) Message from the President............................................... 12.7%(7) Employee dialogue...............................................................10.9%

4. Health Promotion for Employees

Opinions and Requests Received
Questionnaire respondents rated the report’s comprehensibility, amount of information, as well as theirlevel of understanding of the Group’s sustainability and CSR initiatives, to be roughly the same as theprevious year. They would like to see the following topics be further expanded upon and improved going forward: initiatives for employees (initiatives aimed at improving HR systems and workplace environments and the like); overall Group management (business outline and future vision of each Group
company and the like.); and initiatives for the global environment (forest conservation, environmentallyfriendly product purchasing, and the like). In response to the comments and requests, the Group will
make an effort to improve the content of these topics going forward.
Reflecting Opinions and Requests
To further raise the awareness of corporate officers and employees regarding sustainability and CSR
issues, we will make efforts to clearly demonstrate the Group’s approach and policies on implementing
initiatives and edit the report to make it easier to read so that readers could become more familiar withsustainability and CSR.

4. Health Promotion for Employees
4-1

3-3

403-1

403-2

403-3

403-4

403-5

403-6

403-7

Health and Productivity Management Initiatives (1)The T&D Insurance Group companies believe that the mental and physical health of the employees andtheir families is important in order to realize the Group Corporate Philosophy and continue the growth of
the Group, so they aim to realize workplaces where all employees can participate in the operations withpeace of mind and work enthusiastically.

Taiyo Life
Taiyo Life promotes Taiyo’s GENKI Project*, an initiative for energizing employees, customers, and society. This project provides various forms of support to encourage employees to maintain their health withthe aim of preventing lifestyle diseases. The company cooperates with Kaminoyama City in Yamagata
Prefecture to offer Kurort Health Walking and Smart Life Stay (accommodation packages that incorporate
the Japanese government’s new health guidance) through the Kaminoyama Onsen Kurort (health resorts)
Program. The company’s health and productivity management initiatives have also included an increasein the subsidy for cancer screening since 2017, and MCI screening is performed to determine the futurerisk of dementia. In addition, beginning in fiscal 2021, Taiyo Life’s health and productivity management
initiatives also include AminoIndex ® Risk Screening, which can assess the current likelihood of cancer andthe future risk of strokes, myocardial infarction, or diabetes, all at once. Taiyo Life concluded cooperative
agreements on health promotion with Gifu City, Gifu Prefecture in February 2020, and with Seki City, Gifu
Prefecture in January 2021. It aims to support people’s health and well-being in regional communities
through Kurort Health Walking, buoyed by the active participation of Taiyo Life employees.
* Taiyo’s GENKI Project is being promoted with the President at the helm and all executive officers as members.

Sustainability Management

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Governance and Internal Control

Management Control

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4. Health Promotion for Employees

Daido Life
Daido Life’s “DAIDO COCO-KARA” is a variety of actively promoted initiatives for improving the health of
employees under the “COCO-KARA Declaration,” a declaration of health and productivity management anda commitment from top management. These include initiatives to reduce working hours by automaticallyshutting down computers used for work, as well as planned yearly leave and leave taken in conjunction
with weekends or national holidays, early regular preventive health check-ups for all employees, establishment of consultation desks to discuss second opinions and cancer, the arrangement of wearable devices(some of which are subsidized by the company), the holding of walking campaigns, talks on health topics,
the prohibition of smoking during working hours, and the introduction of measures to help employees quit
smoking (the online quit-smoking program). In addition, since fiscal 2020, Daido Life has been monitoringand disclosing “presenteeism” (University of Tokyo version of the one-item scale) as an indicator to confirm
whether its health and productivity management initiatives are leading to improved productivity.

T&D Financial LifeAs part of its pledge to proactively promote the creation of workplace environments where employees canparticipate actively and enthusiastically in good health, T&D Financial Life has formulated the T&D Financial
Life Health Declaration. In line with the Declaration, the company has implemented measures to improve
employees’ health, including initiatives to reduce working hours by implementing a “No Overtime Day”
and a “Leave Work Early Day,” automatically shutting down computers used for work, and other measures,promoting home-based work (telework), fully implementing regular health check-ups, conducting stresschecks aimed at preventing mental health issues, acquiring Mental Health Management certification for
its management staff, establishing the T&D Medical Hotline, which employees can call to consult about
mental and physical health problems, abolishing in-house smoking areas, prohibiting smoking during working hours, and subsidizing the costs of engaging in sports through in-house club activities and the like. It
is also engaged in specified medical check-ups and the provision of health guidance based on Data HealthPlans in collaboration with the Health Insurance Association.

Taiyo Life, Daido Life, and T&D Financial Life have been listed in the White 500 as organizations having outstanding health and productivity management, based on the Certified Health and Productivity
Management Organization Recognition Program set up by Ministry of Economy, Trade and Industry forthe purpose of increasing the uptake of health and productivity management, which encourages healthpromotion among employees (Taiyo Life and Daido Life have been listed for seven years straight).
Certified Health and Productivity Management Organization – White 500
The three initiatives of “Taiyo’s GENKI Project” at Taiyo Life,“DAIDO COCO-KARA” at Daido Life, and “T&D Financial Life
Health Declaration” at T&D Financial Life are being carried out
to improve the health of employees through various measures,and they aim to realize workplaces where all employees can be both physically and mentally healthy andwork in a spirited manner. The three life insurance companies were recognized as Certified Health andProductivity Management Organizations “White 500” in the large enterprise category under the Ministryof Economy, Trade and Industry’s (METI) Certified Health and Productivity Management Organization
Recognition Program, which METI established with the aim of honoring organizations that engage in initiatives to improve the health of their employees.

4-2

Health and Productivity Management Initiatives (2)Initiatives by the Human Resources Department
The T&D Insurance Group has a clinic at its head office, and promotes the health of its employees
through periodic health committee meetings at each branch office in collaboration with industry physicians and the labor union. The Group companies also take care of the mental health of their employees
and, by contracting external physicians, provide a system for consultation and medical service that employees can utilize free from anxiety.
Stress Check Program
All employees at T&D Insurance Group companies were invited to undergo a stress check as part of the
program’s goal of preventing mental health disorders. The Group encourages self-care among its employees, and has also put in place a system for employees under particularly high stress to receive in-person
advice from a physician, and when necessary, to introduce such employees to specialists the Group has
contracted with on a part-time basis. Each company also conducts group analysis, which is beneficial in
improving the workplace environment.
In-House Non-Smoking Initiatives
In the interests of strengthening measures to prevent second-hand smoke and promoting mental andphysical health, in July 2018, the T&D Insurance Group implemented an in-house non-smoking policy(eliminating smoking areas on company premises and prohibiting smoking during work hours) at all
Group companies.
Health Insurance Association
The three life insurance companies have their own independent health insurance association, which
work to prevent lifestyle diseases and otherwise promote the health of association members. In addition to covering medical costs, such as due to illness or injury in members and their dependents, thesocieties conduct campaigns to raise awareness regarding the use of health insurance, subsidize thecost of health check-ups including annual physical examinations, and promote cancer screening. Since
fiscal 2008, the societies have also carried out specified medical check-ups and healthcare guidance
aimed at preventing lifestyle diseases. In fiscal 2015, the health insurance societies began activities
such as providing health guidance to insured members as part of their Data Health Plans. A Data HealthPlan is an efficient and effective approach to health maintenance based on the PDCA cycle and analysisof data such as medical information (receipts for health insurance claims) and information about healthexamination results.

Sustainability Management

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T&D Insurance Group Sustainability Report 2023

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

these contracts and administrative duties such as address

Hiratsuka

the mobility of talent within the Group. For this dialogue,changes. Additionally, we are pushing our DX strategy forward

at T&D Asset Management, where we manage assets delegat-

we spoke to key individuals active across our various Groupthrough effective utilization of LINE accounts. In this context, I

ed by Taiyo Life and Daido Life. My role is to create synergies

companies, irrespective of the companies at which theyalso handle the planning of LINE content, improvements to theacross the Group from an asset management standpoint. My

originally worked. The discussion centered around the dif-functionality of our user portal, service expansion, and the shift

duties mainly involve selecting and monitoring outsourced in-ferences in each company’s culture and what needs to be

toward paperless operations via systematization, etc..

vestment managers, as well as consideration of investment

done to further advance our integrated Group management.

Koike

instructions and allocation of investment funds based on the

I am currently on a temporary transfer to All Right fromI am part of the Investment Management Department

T&D Financial Life. All Right opened in October 2022, with theexternal environment and performance.

objective of creating a new customer base using digital tools.

FujitaInitially, we aim to collaborate with companies in the health andof both T&D United Capital and T&D Holdings. My primary re-

I work on contract maintenance at Pet & Family

healthcare sectors to provide services. In line with this, I am re-sponsibilities include advancing our closed book businessInsurance. Our pet insurance policies are renewed annually, andsponsible for identifying suitable partner companies and work-

centered around Fortitude, a reinsurance holding company, as

my primary responsibilities involve tasks related to continuing

ing on plans and proposals targeted toward them.

well as considering new partnerships and M&A opportunities.

— Could you please tell us about your work responsibilities?
Ishikawa

I am stationed in the Business Development Department

A Diverse Workforce Engages in Challenges andDiscoveries to Achieve Sustained Growth
Yukako Fukui

Akira Koike

Yuko Ishikawa

Yuki Hiratsuka

Keiichi Fujita

T&D Holdings,
IR Division
Deputy Manager(Original company: Taiyo Life)
Joined: 2015

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

Pet & Family Insurance,
Contract Maintenance Department
Manager(Proper Employee)
Joined: 2011

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

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

Moderator

Sustainability Management

Organizational Profile

Priority Theme

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Governance and Internal Control

Management Control

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Index

T&D Insurance Group Sustainability Report 2023

Group Employee Dialogue

perspective through advancements in asset management andtangible effects of going paperless makes my job more andimproved returns on investment.

more satisfying.

Fujita The closed book business is positioned as a new
growth business for the Group. We’re seeing expanding business opportunities not just in the U.S. and European markets,— What are your thoughts after transferring to a different
company within the Group?

but in Japan as well. The satisfaction of tackling new challenges
is evident, and this sector now accounts for 20% of the Group’s

Ishikawa

adjusted profit in recent years. This fact makes me realize thatis crucial when starting new initiatives. Our company has em-

it’s becoming an increasingly important part of elevating our cor-ployees who were transferred from other companies within the

porate value. Given the high level of investor attention, I alsoGroup and individuals with a variety of professional experienc-

believe there’s a need for greater clarity in how we communi-

es. This allows for the exchange of views from multiple per-cate this aspect.

spectives, which I find very enlightening. Moreover, in terms of

The closed book business, a new initiative launched in 2020,

Koike

In my previous role as a banker, my job was mainly toutilizing digital technology, I share similarities with Mr. Koike of

involves acquiring and consolidating blocks of in-force policies

sell pre-determined products based on well-established manu-

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

that various insurance companies have discontinued (closed

als and rules. By contrast, my current job at All Right involves

pate the trends of the times and customer needs.

book), with the aim of enhancing their value to generate rev-

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

Koike As Ms. Ishikawa pointed out, we both face similar chal-enue. In the European and U.S. insurance markets, there is a

new customer points of contact, all conceived of from scratch,lenges when it comes to utilizing digital tools. At All Right, werising demand to segregate old insurance contracts to improve

which makes for a daily process of trial and error. Although chal-

employ outside specialized human resources with abundant

operational efficiencies, making this an area of focus. Regarding

lenging, the satisfaction of seeing our ideas materialize is ex-

skills and experience in areas such as social media manage-

new partnerships and M&As, I am actively making use of ourtremely rewarding. Incidentally, the name “All Right” was cho-ment and data analytics. We conduct our operations while avail-external network to identify investment opportunities based

sen through discussions among the four of us from the start.

ing ourselves of their expertise as needed.

on the Group’s future growth scenario and business portfolio

As the traditional insurance market contracts due to a declining

Hiratsuka

management, while also strategizing about which companies

population, there’s a growing need to take on challenges in

to engage with and taking steps to execute these investments.

new areas. I believe that embracing new approaches and tools
to discover potential in unexplored areas, and not letting our-— Could you discuss the connection between the gratifi-

selves be constrained by conventional ideas and methods, will

cation you get from your work and the improvement ofenhance corporate value.

corporate value?

Ishikawa At Pet & Family Insurance, we are advancing DX bymaking features like user profile pages easily accessible via the

Hiratsuka

In my experience with integrated Group manage-LINE app. We are adapting existing mechanisms and workflows

ment at T&D Asset Management, I’ve not only enhanced myto align with customer needs, striving to improve customer

management skills, but also expanded the scope of my respon-

convenience and communication.

sibilities. This has enabled me to feel my own personal growth

Additionally, we are pushing for paperless operations andand made my job more rewarding. I believe I’m contributing toother efforts as part of our business innovation initiatives.

enhancing the corporate value of the Group from an operational

Seeing the number of LINE users increase and witnessing the

I believe that embracing change and acting quickly

Being in charge of new responsibilities, I feel I am

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Index

T&D Insurance Group Sustainability Report 2023

Group Employee Dialogue— What differences have you felt among the Group companies?

Financial Life, and I work alongside transfers from Taiyo Lifeand Daido Life. I believe a large part of the cultural differences

Hiratsuka Though this might be a generalization, Taiyo Life

stems from the distinct business models of each Group com-seems to emphasize a top-down approach that leverages thepany. All Right is a new venture. We aim to create new value

strength of the organization, while Daido Life seems to focus

by leveraging the unique knowledge and experience of eachmore on a bottom-up culture that values individual capabilities.

Group company.

FujitaFor instance, even with documents that share the

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

same purpose, I’ve noticed stark differences in focus and lay-ly focused on the task at hand and didn’t give much thought toout between Taiyo Life and Daido Life. I’ve been reminded of

the other companies within the Group. However, after becom-

the fact that it’s not a matter of which is correct, but about

ing a manager and having the opportunity to interact with indi-learning from each other, which makes the integration of theviduals from other Group companies during training sessions

Group even more meaningful. To deepen mutual understanding

and be exposed to a variety of opinions, I not only found it in-learning first and foremost. I feel that my horizons have beenat the organizational level, I believe it’s necessary not only forcredibly educational, but also felt that these insights could be

expanding as I get involved in intricate analyses and decision-individuals to bring back ideas, but also for there to be more

beneficial for our own initiatives.

making related to investments and asset allocations in theopportunities for departments with similar functions to collab-

management of alternative investments, which are consideredorate on common challenges.

tegrated Group management even before stepping into a man-to have a low correlation with traditional assets like stocks andHiratsuka

agerial role.

bonds.

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

FujitaI agree. Even if we articulate these differences

I wish I had been more conscious of the importance of in-

Last year, I participated in the IR activities within the

Another revelation from my experience in moving within theexperienced it themselves. As Mr. Fujita mentioned, I believe

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

Group is that even though we are part of the same Group, theit’s crucial to figure out how departments can work together

ment about the current conditions and challenges facing thecorporate culture can differ considerably from one company toand deepen collaboration across the Group and beyond.

Group, and receiving candid answers to my questions, served

another in terms of mindset and work methodologies.

Fujitaas an excellent opportunity for me to reevaluate my own work

FujitaI think the environment at Holdings is extremely con-

I was transferred from Daido Life. T&D United Capital

ducive to that effort. As we all work toward achieving theand the Business Development Department at T&D Holdings

mission of the T&D Insurance Group, everyone has come toconsist of individuals from a diverse range of backgrounds,

understand the importance of integrated Group management

including mid-career hires. Everyone brings different perspec-

on a personal level.

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

Ishikawa At Pet & Family Insurance, we have been learning

makes me rediscover aspects about the company I originatedvarious methods and know-how from those who transferredfrom. Additionally, the closed book business receives a highfrom Taiyo Life and Daido Life, which has been instrumental indegree of attention from various stakeholders, including share-streamlining our operations. However, after hearing everyone’s

holders and investors, which I find to be a stimulating environ-thoughts, I believe that new insights could be gained if we werement that allows me to elevate my work perspective.

to look at our company from an external viewpoint or gain outside experience. So I’d welcome opportunities for our staff to betransferred to other companies within the Group.
Koike At All Right, I’m the only one who has come from T&D

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Governance and Internal Control

Management Control

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T&D Insurance Group Sustainability Report 2023

Group Employee Dialogue

in the context of integrated Group management. During these

Koike

activities, I also sensed differing viewpoints among participants

company operates under a different business model. In thiscustomer one-on-one attention.

from various Group companies. I believe that if Group companies

context, All Right is venturing into new business areas.

Hiratsuka

were to come together for discussions, it would enhance mutual

Ishikawa

I feel that our Group is one where everyone’s opin-

the Group’s medium- to long-term investment revenue, I wantunderstanding and potentially give rise to new opportunities.

ions are heard and fed back into management, regardless of

to be actively involved in the government’s initiatives for ad-

Hiratsuka The first step in integrated Group management istheir position in the company. This creates a culture where

vanced asset management, as well as in strengthening and ex-

to get to know your colleagues across the Group. However, Ichange is driven by fresh ideas from everyone, and I think that

panding our investment advisory business.

rarely interact with people from other Group companies and am

should be leveraged as one of our strengths.

Fujita The closed book business is a new area in which glob-

I think one of the Group’s strengths is that each Grouplargely uninformed about the kind of work they do. A quick fix
I’ve considered is making effective use of our Group newslet-

range of services through the use of digital tools and give each
In addition to contributing to the improvement ofal expansion is highly anticipated. In addition to speeding up— Finally, could you share your future aspirations?

ters. While they currently feature key topics from each Group

our initiatives as a part of the Group’s overall growth strategy,
I want to focus on developing our organizational structure andcompany, why not have more articles that focus on the chal-

Ishikawa

By aligning my actions with the vision and philosophy

nurturing the necessary human capital. I also aim to identify

lenges faced by various departments or head office depart-being pursued through integrated Group management, I aspirepartners who can collaborate with our Group to create newments, similar to what each company’s in-house magazine

for both the company and myself to achieve significant growth.

growth opportunities and thereby contribute to increasing the

does? This could inform the entire Group about each company’s

Koike

Group’s corporate value.

efforts to improve corporate value.

the Group to explore new markets. I want us to provide a wide

Koike

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

portunity to work with people from various Group companies,
which has made me aware of the diverse cultures and work
styles that exist. I believe it is essential to learn about the kindof people who work in other Group companies and what they
are working on through newsletters or other methods.
— What do you think are the strengths of the T&D InsuranceGroup?
Hiratsuka

Our Group’s insurance companies target bothhouseholds and businesses, which I believe places us in a uniqueposition to be highly responsive to societal changes. Because weare not a massive Group, I feel there’s this strong sense of urgency that we must adapt to market changes to survive.
Fujita Among life insurance companies in Japan, our Groupwas one of the first to engage in the closed book business. I
see this as a major strength that we should continue to capitalize on.

I acknowledge that it’s All Right’s responsibility within

67

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T&D Insurance Group Sustainability Report 2023

Priority Theme 3

Help Mitigate and Adapt to Climate Change
3-3

A globally shared long-term target was established by the Paris Agreement, adopted at the 21st Session of the Conference of the Parties to the United Nations Framework Convention on Climate Change in December 2015, to keep the rise in global average temperature fully below 2ºC in comparison to before
the Industrial Revolution and pursue efforts to limit this rise to 1.5ºC. Achieving net zero emissions and carbon neutrality by 2050 is required to realize thistarget. To transition to a low carbon/decarbonized society and adapt to climate change, it will be necessary to transform the industrial structure on a largescale and modify our behavioral patterns. The T&D Insurance Group also remains cognizant of the fact that we must do our part as a member of society.
The T&D Insurance Group formulated the T&D Insurance Group Environmental Policy* to clarify the Group’s stance on the environment. The Policy is tocarry out business activities with full awareness of the importance of environmental concerns, and to ensure that executives and employees understandthat they must act in consideration of the protection of the global environment. The Group will achieve sustainable growth along with society while fulfilling the public mission of life insurance and other businesses, and undertaking its corporate social responsibilities. In addition, based on the above Policy,
the Group has set out its Green Purchasing Standards and Detailed Rules and gives priority to the purchase of products and services that help reduce its
environmental impact when procuring a diverse group of goods ranging from office furniture, equipment and consumable supplies to real estate facilities
and system equipment as well as in printing product brochures and policy documents. While climate change on a global scale is a risk for the continuityof the Group’s business activities, the Group considers it an opportunity to undertake new activities.
* For more information, please see our website.
WEB https://www.td-holdings.co.jp/en/csr/csr-policy/environment.html

Connected social issues and group initiatives to solve themPrimary Stakeholders

Initiatives

Strengthen resilience to climate change

Social Issues

Local communities

Set common Group goals and reduce CO2 emissions, electricity usage, and office paper consumption

Improve energy efficiency

Local communities

Various initiatives to save electricity, utilization of power demand monitoring systems, energy-saving
through implementing “no overtime days”

Local communities

Promotion of “green purchasing” that contributes to protecting the environment, promotion of
reduction and recycling of waste

Enhance efficiency of resource use

Reduce our CO2 emissions
by 40% by fiscal 2025
Reduce our CO2 emissions to
net zero by fiscal 2050

Initiative results and plans

PolicyResults for FY2022

Planned for FY2023

To contribute to climate change mitigation andadaptation through our own business activities
as a provider of insurance products and services
to customers and through our actions as an
institutional investor

 articipated in the RE100 international initiative, which aims for 100% of electricity used toP
be derived from renewable energy

Further reduce CO2 emissions by promoting the introduction ofrenewable energy witched to renewable energy sources for 100% of the electricity used at the T&D
S
Holdings, Taiyo Life, and Daido Life head office buildings

 ontinue promoting the further enhancement of complianceCwith the Task Force on Climate-related Financial Disclosure, etc.

 onducted a quantitative scenario analysis of “physical risks” to enhance our complianceCwith the Task Force on Climate-related Financial Disclosure, etc.

Sustainability Management

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T&D Insurance Group Sustainability Report 2023

1. Promotion Framework

T&D holdings

Executive Management Board

Group SDGs Committee*1
Department in charge of
Promoting Sustainability
Sustainability Promotion Department(Committee secretariat)*2

2. Disclosure of Climate-related Financial Information Based on the TCFD Recommendations

Governance

Promotion Framework (Environmental Management)
Board of Directors

69

Disclosure of climate-related financial information

1. Promotion Framework
1-1

Index

External institutions
Confirm the adequacy
and accuracy ofinternal control andevaluation data

Sustainability Advisory Committee
Climate Change Risk Subcommittee

Group companies
Departments in charge of
Sustainability/CSR

Departments in charge of
Sustainability/CSR

Departments in charge of
Sustainability/CSR

Each division

Each division

Each division*1 The chairman of the Group SDGs Committee is the Representative Director and President. The vice chairman is the executive officer
in charge of the Sustainability Promotion Department.
*2 The committee secretariat = Group SDGs Committee secretariat.

Disclosure of Climate-related Financial Information

2. Based on the TCFD Recommendations

3-3

201-2

The Task Force on Climate-related Financial Disclosures (TCFD), established by the Financial Stability
Board (FSB), formulated its recommendations for clarified, comparable, and consistent information disclosure regarding the risks and opportunities posed by climate change. These recommendations wereannounced in June 2017. Climate change is an issue to be addressed on a global scale. The effects ofclimate change have significant impacts on the lives of people, through changes in economic behaviors
and society worldwide. The T&D Insurance Group has expressed its support for the TCFD recommendations, and is actively committed to disclosing climate-related financial information in an easy-to-understand manner.

Oversight by the Board of Directors• The Board of Directors has established the Group SDGs Committee as its subsidiary body, with thetask of reviewing and deliberating its policies related to SDGs and CSR, along with measures concerning the global environment and social issues.
• The Group SDGs Committee is chaired by the Representative Director and President, who concurrently
serves as chairperson of the Board of Directors, and consists of the directors and general managers
in charge of Sustainability/CSR and investment management departments at Group companies. The
Committee formulates basic policies regarding the global environment and social issues such as SDGs,
and the targets and initiatives for climate change action. It is supervised by the Board of Directors,
monitoring of the status of the initiatives is implemented every six months, and a report is made to theBoard of Directors.
• To promote the initiatives of the Group SDGs Committee, we have established the Climate Change Risk
Subcommittee, SDGs Promotion Working Group, ESG Investment Subcommittee, and Sustainability
Advisory Committee as subsidiary bodies to the Group SDGs Committee.
• The Climate Change Risk Subcommittee and SDGs Promotion Working Group research and consider the situation of climate change risks and various sustainability issues as well as the necessary
response, report to and deliberate with the Group SDGs Committee, and support the Group SDGs
Committee in terms of its formulation of policies and consideration of initiatives related to sustainability issues. The ESG Investment Subcommittee enhances the sharing of information within the Grouprelated to ESG investments aimed at simultaneously improving profitability and resolving social issues,
thereby supporting the steady implementation of ESG investments by the Group as a whole as well as
its sustainable growth. In addition, the Sustainability Advisory Committee takes advantage of participation by outside experts to incorporate the perspectives of such experts as well as information on thelatest trends in order to enhance the Group’s sustainability-related efforts.
Role of Management• The Company has established the Executive Management Board as a body for deliberating on andpassing resolutions related to matters that are important in terms of the management of both theCompany and the Group, and, in parallel, the Group Strategy Board has been established to deliberate
on matters related to the Group Growth Strategy and other relevant and important matters from theperspective of the Group as a whole in order to achieve sustainable improvement in the Group’s corporate value.
• The Sustainability Promotion Department has been established to specialize in promoting the sustainability of the Group as a whole, including our response to climate change, and this department formulates our basic policies related to various sustainability issues, promotes specific related measures,and monitors the progress. The Sustainability Promotion Department also serves as the secretariat of
the Group SDGs Committee, and the Executive Management Board and the Board of Directors receive
detailed reports on all basic policies and measures related to the global environment and social issues
that are deliberated on by the Group SDGs Committee.

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2. Disclosure of Climate-related Financial Information Based on the TCFD Recommendations

Strategies• The following scenario analysis was carried out in order to assess the impact of climate change risks (physical risks*1 and transition risks*2) on the Group.
*1 Business risks associated with natural disasters caused by extreme weather such as typhoons and floods, and those associated with phenomena such as an increase in the average temperature and a rise in the sea level*2 Business risks arising from the actions of government, corporations, and consumers in the process of carrying out the transition to a low carbon/decarbonized society (through a significant reduction of greenhouse gas emissions)

Scenario analysis: What the World Looks Like Under Each Scenario

The world under the 1.5°C scenario

The world under the 4°C scenario

Premise
Strict measures are taken against global warming. By the end of the century, the average annual temperature
will increase by between 1.0°C and 1.8°C.

PremiseNo measures are taken against global warming beyond the current status quo. By the end of the century, theaverage annual temperature will increase by between 3.3°C and 5.7°C.

Overview• Due to the rise in average temperatures, natural disasters become more frequent and intense. (However, theimpact is kept below a certain level.)• Strict measures to combat global warming increase business costs for each company.
• Technology innovation progresses (and new players emerge) in support of low or net-zero carbon emissions.
• Reallocation of investment away from companies that are unable to support low or net-zero carbon emissions.

Overview• Due to the large rise in average temperatures, the impact of frequent and intense natural disasters becomessignificant.
• Sea level rise, storm surge, flooding, and heavy rainfall have a significant impact on coastal areas. (A review oflifestyle and BCP is also necessary. The companies face increased business costs.)• Reallocation of investment away from companies that are vulnerable to natural disasters.

Reference scenario• Physical risk scenarios based on RCP2.6• Transition risk scenarios based on the Disorderly and Orderly categories of NGFS

Reference scenario• Physical risk scenarios based on RCP8.5• Transition risk scenarios based on the Hot House World category of NGFS

Physical effects caused by a rise in average temperature (1.5°C scenario < 4°C scenario)[Acute]• Natural disasters such as typhoons and floods become more frequent and intense.
• The number of injuries and fatalities due to natural disasters increases due to an increase in extreme weather events such as typhoons and floods.
[Chronic]• Rainfall and weather patterns change, and average temperatures and sea levels rise.
• Increasing average temperatures lead to an increase in the number of heat stress deaths and heat stroke patients.
• The risk of contracting an infectious disease increases due to the expansion of the habitats of disease vectors.

Impact of the transition to a society with low or net-zero carbon emissions (1.5°C scenario)[Policies, laws, and regulations]• Tighter regulations on greenhouse gas (GHG) emissions and the introduction of a carbon tax. Expanded disclosure requirements (increased business costs for companies).
[Technology development]• Progress in reducing the carbon footprint of existing technologies and the introduction of new technologies such as renewable energy, storage batteries, and electric vehicles.
• While some companies emerge and grow by seizing new business opportunities, others have been unable to respond to low or net-zero carbon emissions measures and fail.
[Changes in investor behavior]• Reduced investment and lending to companies that cannot comply with regulations, companies that cannot exit from existing GHG emissions businesses, and companies that have recorded fossil fuels as stranded assets.
Expanded investment and financing to companies that contribute to low or net-zero carbon emissions.

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

71

2. Disclosure of Climate-related Financial Information Based on the TCFD Recommendations

Scenario analysis: Impact on the Group and the Response Measures

Impact on underwriting
profitability
BCP response

Physical risks

Impact on asset management income

Transition risks

1.5°C scenario

4°C scenarioMore sophisticated climate change risk analysis: Quantitative analysis of effects on the Group• The number of heat stress deaths and heat stroke
patients increases.
• Both of these increases will be gradual over a long period of time, which will limit their impact on underwriting
profitability.
• This will be addressed by conducting an appropriate
review of premium rates.

• Significantly higher average temperatures will lead tolarger increases in heat stress deaths and heat stroke
patients than under the 1.5°C scenario.
• Both of these increases will be gradual over a long
period of time, but will be larger than under the 1.5°C
scenario.
• We will address this by conducting a more detailed
review of premium rates to avoid a significant negative impact on underwriting profitability.

We collaborated with KPMG Consulting Co., Ltd. and the Japan Weather Association (called the JWA
below) to conduct a quantitative analysis of effects on the Group in order to increase the sophisticationof our climate change risk analysis.

• A business continuity plan has been established at another site in case a major disaster causes a disruption
to the functions of critical sites.

• To address the increasing intensity of natural
disasters, we will use hazard maps and similar tools
to assess the risk level of our business sites, relocate
important sites, establish backup sites, and implement remote decentralization measures using IT as
appropriate• In the medium-term time horizon, up to the middle ofthis century, some industries of the investees of theGroup will be significantly affected due to tighter regulations on GHG emissions, the introduction of a carbon
tax, the replacement of old technologies with new low
or netzero carbon technologies, changes in consumer
values and behaviors, etc.
• To avoid damage to asset management income from theimpact on the investees and borrowers of the Group,
we will work as appropriate in accordance with the
Principles for Responsible Investment (PRI) through thepromotion of investment and financing activities to businesses and companies that contribute to the transition
to a society with low or net-zero carbon emissions, forexample renewable energy businesses, and throughengagement with existing investees.

• The medium-term impact on the investees and borrowers of the Group will be smaller, since there will
be no sudden changes in the environment expected in
the 1.5°C scenario.
• However, in the long-term time horizon up to the endof the century, it is assumed that the increase in average temperatures and the intensification of natural
disasters will have a significant negative physicalimpact on the business activities of each investee
and borrower.
• In order to avoid damage to our asset management
income, we will avoid or withdraw investment andfinancing to firms with significant physical risks.

Reference data: Physical risk scenarios: RCP2.6 and RCP8.5, Transition risk scenarios: NGFS and Bank of England

Scenario analysis: Business Opportunities for the Group• Changes in the morbidity rate and average life expectancy associated with the progress of global
warming are expected to give rise to needs for protection (involving death, annuities, and medicalcare) against emerging risks. There are opportunities to expand net sales of the insurance business, byexpanding and providing a wider scope of protection in order to meet such emerging needs.
• As the reduction of GHG emissions progresses, the Group, as an institutional investor, has opportunities
to enhance the value of investment assets and expand investment returns stably over the long term, byinvesting and lending to expanding clean energy development and energy conservation businesses, andby owning and managing real estate (such as office buildings) with superior environmental performance.
• The Group also has opportunities to expand its business domains and earnings as a business operator,
rather than as an institutional investor, by developing or entering into new business domains related tothe mitigation of and adaptation to climate change.

Analysis method• The JWA developed a high-resolution climate scenario dataset by setting up a 1-km mesh for climate-change
prediction data in order to analyze physical risks.
• Next, two models were developed for the Group—one for estimating the number of victims of flooding andanother for estimating the number of people hospitalized/fatalities due to heat exhaustion—assuming thatJapan’s future average temperature increases by either 2°C (the RCP2.6 scenario) or 4°C (the RCP8.5 scenario)
due to climate change. Five climate prediction models were utilized for our estimates.
• We divided the future period up through 2100 into two periods, the near future period from 2026 to 2050 andthe distant future period from 2051 to 2100, and then conducted a physical risk analysis.

Analysis results
Disaster victims• There is variation between regions in terms of future increases in rainfall (with rainfall decreasing insome regions).
• In addition, although there will be an increased rate of powerful typhoons, the number of typhoons is
expected to decrease.
In both scenarios, although there is a possibility of a sudden spike in the number of disaster victims in the case of extremely heavy rainfall, the number during the entire period is about the same.
Number of people hospitalized/fatalities due to heat exhaustion• Regardless of the scenario, there is not that much of a change during the near future period.
• During the distant future period, the number of extremely hot days and tropical nights will increase. In
particular, in the RCP8.5 scenario, the number of extremely hot days is expected to increase by morethan a month compared to the present.
In both scenarios, the number of people hospitalized/fatalities due to heat exhaustion is expected to increase during the distant future period.
Effects on the Company• According to our calculations based on our analysis results, in the case of the RCP8.5 scenario—which
has a greater effect—compared to the base period (2006 to 2025), both insurance claims and benefits
will increase in the distant future period by ¥510 million to ¥1.63 billion (equivalent to approximately
0.1% to 0.3% of the Group’s paid out insurance claims and benefits).
* The graph below shows the average of all five models. (Increase of ¥1.07 billion in the distant future period)

Monetary effect: RCP8.5 scenario(¥100 million)

20

17.71

15

16.01

9.48

10

7.01

5
0

8.35
5.84

0.39

0.78

2006 to 2025

0.20

0.94

2026 to 2050

Total
Heat exhaustion fatalities

1.55
0.14

2051 to 2100

Persons hospitalized due toheat exhaustion
Disaster fatalities

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

72

2. Disclosure of Climate-related Financial Information Based on the TCFD Recommendations

Risk management
Risk Identification and Assessment Process• The Group exhaustively classifies the risks it faces through use of a risk profile, with a view toward
dealing with increasingly diverse and complex risks. Risks are listed exhaustively by risk category. The
Group then identifies and assesses these risks, and prioritizes initiatives by considering factors suchas each risk’s significance, potential impact, and current status of control, which are then reflected inmanagement plans, as necessary. The Group registers climate change-related risks on the risk profile
as critical risks to be managed, and scrutinizes, identifies, and assesses these risks. Climate change-related risks are identified and assessed as insurance underwriting risk, asset management risk, operational risk, reputational risk, and risks that may have broad-based impacts on overall management.

• As for CO2 emissions, Scope 1 (direct emissions from the Company), Scope 2 (indirect emissions via
the purchase of energy including electric power), and Scope 3 (indirect emissions via other corporate
activities including procurement of materials, transport, and disposal) are measured and disclosed ona continuous basis.
• We have set reduction targets for our own emissions (Scope 1 and 2) and for our investees and borrowers (Scope 3: Category 15), aiming to achieve net zero emissions by 2050.
Roadmap to achieving net zero
2020

2021

• The Group establishes its environmental protection-related targets and is working on initiatives toachieve them in its daily business activities. The four targets are “to reduce CO2 emissions,” “to reduce
electricity consumption,” “to reduce office paper consumption,” and “to improve the green purchasing
ratio.” Progress toward the achievement of these targets is measured annually, and disclosed in various
reports and websites.

Targets

Metrics and targets

Scope3(category 15)

2030

Reduction of 40%

Scope 1 + 2

Risk Management Process• In order to identify and grasp newly emerging risks, as well as changes in risks that have already been
identified, a review of the risk profile is carried out twice per year, and reported to the Group Risk
Management Committee and the Board of Directors.
• In the process of identifying and assessing risks on a company-wide basis through a risk profile, theclimate change-related risks are managed using the perspectives shown below.
Management of climate change-related risks
1) Physical risks• The Group considers to mitigate deterioration of underwriting profitability through reinsurance andother means, along with large-scale disaster risks (insurance underwriting risks).
• The Group monitors existing products and implements countermeasures, including product revisions, as necessary.
2) Transition risks• The Group engages in investments and borrowings, taking into account climate change-related risks
based on the Principles for Responsible Investment (PRI).
• The Group monitors trends in economic policies, laws, and regulations, and share the information
across the Group, through the Group SDGs Committee and the Group Management Promotion
Committee. Measures are taken to ensure that the Group responds to such trends in a sufficiently
effective manner at the level expected of a listed company.

2025(compared to FY2013)

2050
Net zero
Settingtargets

Promotion ofrenewable energy

Reduction of 40%(compared to FY2020)

60% renewable energy

2050
Net
zero

Net
zero

100%
renewableenergyCO2 emissions reduction target
Subject

Targets

Own emissions(Scope 1 and 2)

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

Investees and borrowers(Scope 3: category 15)

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

FY2050: Net zero

Promotion of renewable energy introduction• We are a member of RE100, a global initiative that aims to use renewable energy sources to cover all
electricity consumed in business activities.
• We have set an interim goal of sourcing 60% of our electricity from renewable energy by fiscal 2030,
and are actively promoting the use of renewable energy.

Sustainability Management

Organizational Profile

Priority Theme

T&D Insurance Group Sustainability Report 2023

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

Index

73

3. Environmental Impact-reduction Initiatives

Environmental

3. Impact-reduction Initiatives
3-1

3-3

301-1

302-1

302-3

305-1

305-2

305-3

306-1

306-2

306-3

Environmental Initiatives

Efforts for Achieving Group-wide Targets
The T&D Insurance Group has set Group-wide targets related to environmental protection, and is working to achieve these targets in the course of its daily business activities.
The Group’s four targets are to reduce CO2 emissions, reduce electricity consumption, reduce office
paper consumption, and improve the green purchasing ratio.
<CO2 emissions> Targets and Results P.75
Over 90% of the Group’s CO2 emissions (Scope 1 + 2) arise from electricity use. For that reason, we areendeavoring to reduce CO2 emissions by setting targets for reducing electricity consumption in order tocurb energy usage and advancing the introduction of renewable energy.
<Electricity consumption> Targets and Results P.75
In addition to the power-saving activities, we are endeavoring to implement a multitude of measures toreduce electricity consumption, such as introducing a power demand monitoring system for controllingpeak-time use in each building and setting no overtime days. Furthermore, we encourage employees to
put their computers into standby mode when they are away from their desk and turn off printers andmultifunction machines when leaving offices.
<Office Paper Consumption> Targets and Results P.75
We are striving to reduce the paper consumption in offices by promoting paperless meetings, two-sided
and 2-in-1 printing, test printing and confirmations before printing a large quantity and rigorously insisting
on printing only after confirming printing settings.
<Green Purchasing Ratio> Targets and Results P.75
When procuring office supplies and stationery, we promote green purchasing by giving priority to products that are compliant with the Act on Promoting Green Purchasing and to Eco Mark products. In addition to establishing Green Purchasing Standards and working to prioritize purchasing of products thatmeet those standards, initiatives include setting up a system that requires approval when ordering officesupplies online that are not environmentally compliant.
Power-saving Efforts
Each year the T&D Insurance Group participates in a “Cool Biz” campaign from May to October (setting
thermostats of air conditioners at 28°C) and a “Warm Biz” campaign from November to March (setting

a room temperature at 20°C). In addition, as a power-saving measure to prevent global warming, theGroup turns off or reduces the lighting in offices, meeting rooms, hallways and other areas when they
are not in use.
“Lights Down” Campaign
As an initiative to raise the environmental awareness of each of the Group’s executives and employees,
the T&D Insurance Group has been conducting a campaign in which it calls for a simultaneous switch-offof all the lights in offices twice a year. In fiscal 2022, this initiative was conducted in July and December.
Going forward, we will continue our initiative of a simultaneous switch-off of all the lights which cancontribute to the prevention of global warming.
Promotion of Paperless Operations
The Group has established an efficient and effective office environment by distributing mobile computers, installing wireless LANs, and providing displays on meeting room tables. In principle, meetings are
now paperless, including the meetings of the Board of Directors and the Executive Management Board.
Green Procurement Initiatives(Total Costs and Quantities of Procurement Intended for Environmental Protection)
In addition to green purchasing initiatives, which mainly target office supplies and other consumables,
Green Procurement Standards that reduce environmental impact have been established for the printingof product brochures, policy documents and riders; procurement of lighting, air conditioning and otherequipment for real estate; and for system equipment and office automation equipment. The Group gives
priority to procurement of items that meet these standards. The results of these efforts to promote
environmentally friendly procurement are not only collated in terms of amounts spent and quantities,
but specific measures are also studied, shared among the Group companies and used to benefit environmental protection initiatives.

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

Index

74

T&D Insurance Group Sustainability Report 2023

3. Environmental Impact-reduction Initiatives

Green Procurement Results

CO2 Emissions

Portion known to apply/ not apply to standard,in figuresindicates limited verification has been carried out by a third party. (P.77 “3–5 Independent Assurance Report”)

Portion for whichapplicability/
non-applicability is
unknownStandard applicable
NumberCategory

Total

Standard non-applicable Quantity or
Amountnumber ofAmountAmount(¥ millions)
Numberorders(¥ millions)(¥ millions)

NumberAmount(¥ millions)

402

328

563

97

51

0.0

1,016

425

FY2021

1,007

396

55

34

1

0.0

1,063

430

FY2022

423

297

327

119

98

4.2

848

420

4,372

457

12,001

112

26

0.4

16,399570

FY2021

9,846

702

31,519

319

20

212

41,385

1,021

FY2022

1,393

181

2,947

251

40

68

4,380

500

Real estate equipment
FY2020

39

1,018

0

0

2,995

5,889

3,034

6,908

FY2021

99

2,628

0

0

3,281

3,706

3,380

6,335

FY2022

131

2,575

0

0

4,449

13,446

4,580

16,022

1,697 tScope 2 (Indirect emissions)

43,335 t

42,153 t

39,864 t

Scope 3 (Others)

34,367 t

31,085 t

58,464 t

184 t

177 t

183 t

Category 2 (Capital goods)

16,630 t

13,246 t

40,412 tCategory 3(Fuel- and energy-related activities)

8,116 t8,202 t8,151 tCategory 5(Waste generated in operations)

33 t

31 t

37 t

Category 6 (Business travel)

2,550 t2,554 t2,602 tCategory 7 (Employee commuting)

6,854 t6,875 t7,079 t79,584 t

75,072 t

100,025 t

Category 1(Purchased goods and services)

Total* Regarding the CO2 emissions in FY2020, due to an adjustment of the figures subject to the calculation, Scope 2 increased by 102 t andCategory 3 of Scope 3 increased by 332 t.
Data coverage: fraction of Group employees included in the target employee set 100%

Electricity Consumption
indicates limited verification has been carried out by a third party. (P.77 “3–5 Independent Assurance Report”)

The total of Taiyo Life, Daido Life, T&D Financial Life, and T&D Asset Management

Electricity consumption

3-2

Environmental Performance Data

FY2022

1,835 tSystem equipment and office automation equipment
FY2020

FY2021

1,882 tPrinting of product brochures, riders
FY2020

FY2020

Scope 1 (Direct emissions)

303-1

303-2

303-3

The T&D Insurance Group discloses its measurements of CO2 emissions, electricity consumption, water
consumption, and waste generated and recycling rate. (The applicable scope and calculation methodsof this data are described on P.76 in “3–4 Scope and Calculation Methods of Environmental Performance
Data and Group-wide Targets and Results.”)(Of which, the renewable energy purchaseamount)Total floor space(including portion for tenant use)

FY2020

FY2021

FY2022

96,711 MkWh

96,000 MkWh

94,365 MkWh

801 MkWh

4,948 MkWh

8,937 MkWh

941,227 m2

949,935 m2

954,207 m2

Data coverage: fraction of Group employees included in the target employee set 100%

Water Consumption
indicates limited verification has been carried out by a third party. (P.77 “3–5 Independent Assurance Report”)

FY2020

FY2021

FY2022

Water consumption(Utility + reclaimed water)

44,200 m3

42,000 m345,200 m3

Reclaimed water usage rate

1.2%

3.2%

2.7%

* Water usage from our Group’s business operations is limited to water withdrawal and effluent discharge (wastewater, etc.) at offices
within Japan. Of the withdrawn water, tap water is withdrawn by using public utilities (with the amount of withdrawn water rigorously
measures), while reclaimed water is withdrawn by using recycled water and rainwater. Effluent is discharged into publicly managed
drainage channels in accordance with effluent standards.
* Since the Group’s water usage is limited to water withdrawal and effluent discharge at offices within Japan, no water is withdrawn fromwater stressed areas.
Data coverage: Fraction of Group employees included in the target employee set 44.91%

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

Index

75

T&D Insurance Group Sustainability Report 2023

3. Environmental Impact-reduction Initiatives

Waste Generated & Recycling Rate
FY2020

FY2021

Total amount

249 t

238 t

279 t

Recycling rate

71.8%

66.6%

71.9%

Electricity Consumption
Baseline: Electricity consumption in FY2016 (value per unit of floor space) =111kWh/m2
Target: Reduction by at least 10% from baseline by FY2027
Scope:	Buildings owned or leased and used by Group companies. Owned buildings include tenant
usage; only the leased area is applied for leased buildings.
indicates limited verification has been carried out by a third party. (P.77 “3–5 Independent Assurance Report”)

indicates limited verification has been carried out by a third party. (P.77 “3–5 Independent Assurance Report”)

1) Paper waste2) Non-paper waste

FY2022

FY2020

FY2021

FY2022

Total amount

76 t

67 t

35 t

Recycling rate

61.1%

66.7%

29.1%

* The Group is aiming to reduce its environmental burden by making efforts to reduce waste and by recycling office paper, beverage cans,and plastic bottles. We will continue working toward this endeavor by thoroughly ensuring that recycling is carried out.
* The Group’s waste does not contain any hazardous waste (the special management industrial waste designated by the Bureau ofEnvironment, Tokyo Metropolitan Government).
* Starting in FY2022, because the cardboard category was changed from non-paper waste to paper waste, the amount of non-paper waste
and recycling rate decreased.
Data coverage: fraction of Group employees included in the target employee set 44.91%

3-3Group-wide Targets and Results

The T&D Insurance Group is working on reducing its environmental impact by setting Group-wide targets
for CO2 emissions, electricity consumption, office paper consumption, and the Green Purchasing Ratio.
(The applicable scope and calculation methods of this data are described on P.76 in “3–4 Scope andCalculation Methods of Environmental Performance Data and Group-wide Targets and Results.”)
CO2 Emissions
Baseline: CO2 emissions in 2013 (value per unit of floor space) = 0.0674 t/m2
Target: Reduction by at least 40% from baseline by FY2025
Scope:	Buildings owned or leased and used by Group companies. Owned buildings include tenant
usage; only the leased area is applied for leased buildings.
indicates limited verification has been carried out by a third party. (P.77 “3–5 Independent Assurance Report”)

Baseline (FY2013)

FY2020

FY2021

FY2022CO2 emissions (Scope 1 + 2)

59,908 t

44,817 t

43,612 t

41,199 t

Total floor space

888,529 m2

950,959 m2

938,081 m2

946,852 m2

Per unit of floor space

0.0674 t/m

0.0471 t/m

0.0465 t/m

0.0435 t/m2

69.0% (-31.0%)

64.6% (-35.4%)

Compared to baseline

—

2

2

69.9% (-30.1%)

2* The CO2 emissions in FY2020 increased by 102 t due to an adjustment of the figures subject to the calculation.
Data coverage: Fraction of Group employees included in the target employee set 100%

Baseline (FY2016)

FY2020

FY2021

FY2022

Electricity consumption

97,223 MkWh

95,813 MkWh

95,139 MkWh

93,548 MkWh

Total floor space

875,682 m2

950,959 m2

938,081 m2

946,852 m2

Per unit of floor space

111.0 kWh/m2

100.8 kWh/m2

101.4 kWh/m2

98.8 kWh/m2

—

90.7%

91.3%

89.0% (-11.0%)

Compared to baseline* As nearly all of the Group’s CO2 emissions (Scope 1 + 2) are derived from the usage of purchased electricity, we have set targets for
reducing electricity use and controlling energy consumption, with the aim of reducing our CO2 emissions.
* The reduction target is based on the premise that the CO2 reduction target of the Federation of Electric Power Companies of Japan isachieved. It is equivalent to the reduction target (services/commercial buildings sectors) based on the scientific ground, combined withthe relevant portion.
* Starting from FY2019, the figures include Pet & Family Insurance
Data coverage: fraction of Group employees included in the target employee set 100%

Office Paper Consumption
Baseline: Five-year average from FY2014 to FY2018 (142.20 t)
Target: Cut five-year average from FY2019 to FY2023 by 12% compared to the baseline value.
indicates limited verification has been carried out by a third party. (P.77 “3–5 Independent Assurance Report”)

FY2019FY2020

FY2021129.43ｔ100.70ｔ96.70ｔFY2022
99.83ｔProgress made (average from
FY2019 to FY2022)
106.67ｔ(25.0% reduction from baseline)* Starting in FY2019, the figures include Pet & Family Insurance* Total amount of office paper purchased
Data coverage: Fraction of Group employees included in the target employee set 89.21%

Green Purchasing Ratio
Target: Keep the green purchasing ratio for office stationery and supplies at a minimum of 80%.
FY2020

FY2021

FY2022

91.9%

92.6%

93.1% (Target exceeded by 13.1%)* Applies to purchases through online purchasing systems.
Data coverage: Fraction of Group employees included in the target employee set 89.08%

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

76

3. Environmental Impact-reduction Initiatives

3-4

Scope and Calculation Methods of Environmental Performance
Data and Group-wide Targets and Results

Calculation Methods of Environmental Performance Data and Group-wide Targets and Results
Disclosure item
Environmental performance data

Scope of Environmental Performance Data and Group-wide Targets and Results
Disclosure item

Environmental
performancedataGroup-widetargets andresults

Calculation scope

CO2emissions

Scope 1 (Direct emissions)
Scope 2 (Indirect emissions)

T&D Group (since FY2018);
Major Group companies (FY2017 and earlier)

Scope 3(Others)

Scope 1 (Direct emissions)

Scope
T&D Group (since FY2018);
Major Group companies (FY2017 and earlier)Category 1(Purchased goods and services)

Major Group business sites and Pet & Family Insurance,
excluding sales offices and branches of Taiyo Life andDaido Life

Category 2(Capital goods)

T&D Group

Category 3(Fuel- and energy-related activities)

T&D Group

Category 5(Waste generated in operations)

Major Group buildings

Category 6(Business travel)

T&D Group

Category 7(Employee commuting)

T&D Group

Electricity consumption (Total floor space),
renewable energy purchase amountT&D Group (since FY2018);
Major Group companies (FY2017 and earlier)

Water Consumption

Major Group buildings

Scope 2 (Indirect emissions)Group-wide

CO2emissions

Scope 3(Others)

Category 1(Purchased goods and services)
Category 2(Capital goods)
Category 3(Fuel- and energy-related activities)
Category 5(Waste generated in operations)Category 6(Business travel)
Category 7(Employee commuting)

Total

Waste Generated & Recycling Rate

Major Group buildings

CO2 Emissions, Electricity Consumption

T&D Holdings, Core Group companies, and Pet & Family
Insurance

Office paper use

Major Group business sites and Pet & Family Insurance,
excluding sales offices and branches of Taiyo Life andDaido Life

Renewable energy purchase amountGreen Purchasing Ratio

Major Group buildings

Water consumption

Electricity consumption

Main Group companies, business sites, and buildings included in the scope of calculation

Group-wide

T&D Group• T &D Holdings, Taiyo Life, Daido Life, T&D Financial Life, T&D Asset Management,
T&D Information System• Buildings owned by Taiyo Life and Daido Life (including tenant leases)• Pet & Family Insurance, T&D Confirm, Toyo Insurance Agency, Daido Management Service, T&D Lease, Taiyo Credit
Guarantee, T&D Customer Services, Nihon System Shuno,
Zenkoku Business Center

Major Group
companies• T&D Holdings, Taiyo Life, Daido Life, T&D Financial Life, T&D Asset Management,
T&D Information System• Buildings owned by Taiyo Life and Daido Life (including tenant leases)

Core Group
companies• Taiyo Life, Daido Life, T&D Financial Life, T&D Asset Management

Major Groupbusiness sites• Each business site of T&D Holdings, Taiyo Life, Daido Life, T&D Financial Life and T&D Asset Management (excluding
tenant leases of buildings owned by Taiyo Life and Daido Life)

Electricity consumption

Major Groupbuildings• Tokyo Nihombashi Tower, Daido Life Osaka Head Office Building, Taiyo Life Nihonbashi Building, Taiyo Life Urawa
Building, Hamamatsucho Building, Mita Bellju Building

Office paper use

Waste generated& recycling rate

Waste generated
Recycling rate

Calculation method
The figures were calculated by multiplying the measured energy input by thepredetermined coefficient in accordance with the Greenhouse Gas Emission Volume
Calculation, Reporting, and Disclosing System.
(The measured energy input comprises the measured gas, heavy oil, and kerosene.)
As above. (The measured energy input comprises the measured electric power,
steam, and hot and cold water.)Calculations are based on the Basic Guidelines (Ministry of the Environment and theMinistry of Economy, Trade and Industry) regarding the measurement of greenhousegas emissions generated by the supply chain.
Calculated by multiplying the office paper use by the predetermined coefficient.
Calculated by multiplying the expenditure for purchased capital goods, excluding
land, by the predetermined coefficient.
The figures were calculated by multiplying the measured input of electric power,
steam, and hot and cold water by the predetermined coefficient.
Calculated by multiplying the waste generated by the predetermined coefficient.
Calculated by multiplying the number of Group personnel at the end of the fiscal
year by the predetermined coefficient.
Calculated by multiplying the number of Group personnel by employment type andurban development level at the end of the fiscal year, by the predetermined coefficient.
The total emissions from the sum of Scope 1 (Direct emissions), Scope 2 (Indirectemissions), and Scope 3 (Others).
The annual amount of office-use electricity purchased from each energy-supplying
company is calculated in accordance with the Act on Rationalizing Energy Use andShifting to Non-fossil Energy.
The total amount of purchased electricity derived from renewable energy sources
provided by electricity utilities in accordance with the Act on Special Measures
Concerning Promotion of Utilization of Electricity from Renewable Energy Sources.
The reportable item according to the environmental reporting guidelines of the
Ministry of the Environment comprises the amount used on the invoices received
from the water supply authorities.
Measured based on the Waste Disposal & Public Cleansing Law and other laws
concerned with waste disposal and cleaning.
Calculated according to the invoices received from waste disposal companies.
The recycled amount is calculated according to the invoices received from waste
disposal companies, and the recycling rate is calculated by dividing the recycled
amount by the waste generated.

Group-wide targets and results

CO2 emissions

The figures were calculated by multiplying the measured energy input by thepredetermined coefficient in accordance with the Greenhouse Gas Emission Volume
Calculation, Reporting, and Disclosing System.
(The measured energy input comprises the measured gas, heavy oil, kerosene,
electric power, steam, and hot and cold water.)Calculated from annual electricity purchased by the office in accordance with the
Act on the Rational Use of Energy.
A reportable item according to the environmental reporting guidelines of the
Ministry of the Environment, and is calculated from the purchasing system data.

Sustainability Management

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Governance and Internal Control

Management Control

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Index

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3. Environmental Impact-reduction Initiatives

3-5

Independent Assurance Report

The T&D Insurance Group obtained third-party assurance from Ernst & Young
ShinNihon LLC for fiscal 2022 data presented in section “2-1 Employment of
Persons with Disabilities” on P.57, section “3–2 Environmental Performance Data”
on P.74, and section “3–3 Group-wide Targets and Results” on P.75 in accordancewith the International Standard on Assurance Engagements (ISAE) 3000 (Revised)and 3410 (International Auditing and Assurance Standards Board).

2-5

306-2

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T&D Insurance Group Sustainability Report 2023

4. Forest Conservation Activities

Environmental Communications and4. Forest Conservation Activities
4-1

304-3

Forest Conservation Activities Taiyo Life

“Taiyo Seimei no Mori”(the Forests of Taiyo Life)(Tochigi Prefecture)“Taiyo Seimei Kutsuki no Mori”(Kutsuki Forest of Taiyo Life)(Shiga Prefecture)

Date of Establishment

March 2006

November 2007

Area

Approx. 4.8 ha

Approx. 12.7 ha

19 t(Estimate by the Forestry Agency)

87 t(Estimate by Takashima City)

CO2 Absorption

5. Educational Activitie
5-1

Taiyo Life conducts forest conservation activities. It has established Taiyo Seimei no Mori (the Forests of
Taiyo Life) in Nasushiobara City (Tochigi Prefecture) and Takashima City (Shiga Prefecture).
The first Taiyo Seimei no Mori was established in March 2006 in Nasushiobara City, Tochigi
Prefecture, as a project under the Forestry Agency’s Corporate Forest program. In cooperation with the
Enna District Forest Office and others, we continuously conduct forest maintenance activities suchas thinning trees and maintaining walking trails, inaddition to inviting members of the Japan Down
Syndrome Society and their families to take part inforest studies classes.
Taiyo Seimei Kutsuki no Mori (Kutsuki Forestof Taiyo Life) was established in Takashima City,
Shiga Prefecture, in November 2007. In collaboration with the Asosatoyama Center, a local
NPO, we carry out forest maintenance activities,
including maintaining forest roads and clearing
fallen leaves from Japanese red pine forests. We
also collaborate with local elementary schools tohost the Donguri Project (Acorn Project), wherein elementary school students grow broad-leaf
seedlings from acorns and then plant them in theforest upon their graduation.
Given the results of activities such as theabove, we participated in the Ministry of theEnvironment’s 30 by 30 Alliance for Biodiversity in
September 2022.

Name of Forest

5. Environmental Communications and Educational Activitie

304-3

Environmental Communications and Educational Activities

T&D Holdings endorses the activities of the Japan UNEP Association which produces the Japaneseedition of UNEP FORUM — Environmental Magazine Tying UNEP to Enterprises — published by theUnited Nations Environment Programme (UNEP). This publication is distributed to all companies in the
T&D Insurance Group as well as to local elementary and junior and senior high schools, public libraries,
and other parties to raise awareness of environmental issues.

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T&D Insurance Group Sustainability Report 2023

Priority Theme 4

Invest to Help Build a Sustainable Society
2-24

3-3

With the main business of the Group being life insurance business, contributing to realizing a sustainable society
through investment is one of the most fundamental roles of the Group. The sustainable and stable growth of society is essential in securing long-term stable profit through investment.
Recognizing that the investment behavior of institutional investors, who manage long-term funds, plays a majorrole in solving various social issues and realizing a sustainable society, theT&D Insurance Group will secure stablelong-term investment income and contribute to the sustainable and stable growth of society through investment
activities undertaken in consideration of the environment, society and corporate governance.

Connected social issues and group initiatives to solve themSocial Issues

Promote investments insustainable development

Primary Stakeholders

Investees and borrowers/
local communities

Initiatives
Performing various ESG investments in accordance with the Principles for Responsible
Investment (PRI), and engaging in dialogue with and exercising appropriate voting rights withinvestees and borrowers based on the Principles for Responsible Institutional Investors

Reduce the CO2 emissions of investees
and borrowers by 40% by fiscal 2030
Reduce the CO2 emissions of investees
and borrowers to net zero by fiscal 2050

Initiative results and plans
PolicyResults for FY2022

Planned for FY2023

To secure stable long-term investment
income and contribute to the realization of a sustainable society throughinvestment activities undertaken inconsideration of the environment, society and corporate governance, withthe aim of growing sustainably in partnership with society ased on the T&D Insurance Group ESG Investment Policy, our investment and financing decisions
B
incorporated analyses and assessments related not only to the financial information of potential
investees and borrowers, but also to non-financial information such as ESG.
Invested in and financed projects with themes that contribute to solving various ESG issues,
including green bonds and social bonds
Continued to engage in dialogue with investees and borrowers and engage in green finance(investment in and financing of projects in the environmental field) to achieve net zero CO2emissions by investees and borrowers

 ontinue to make various ESG investments that contribute toC
the resolution of social issues and the realization of a sustainable
societyIn addition to responding to climate change, promote investment,
financing, and engagement in response to various social issues
and themes such as human capital and biodiversity.

Sustainability Management

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T&D Insurance Group Sustainability Report 2023

1. Basic Concept

1. Basic Concept
1-1

T&D Insurance Group ESG Investment Policy

2. Our Initiatives as a Responsible Institutional Investor

2. Our Initiatives as a Responsible Institutional Investor
2-23

The Corporate Philosophy of the T&D Insurance Group is “With ‘Try & Discover’ motto for creating value,
we aim to be a group that contributes to all people and societies.” In our asset management, we aim
to secure stable earnings over the long term and contribute to the realization of a sustainable society.
Believing that, as a responsible institutional investor, it is important to make investments with consideration for the environment, society, and corporate governance, we defined and published the Group’s
stance towards ESG investment in the “T&D Insurance Group ESG Investment Policy.”

T&D Insurance Group ESG Investment Policy
The T&D Insurance Group strives to grow continuously together with society while contributing to ensuring stable, long-term profitability and the formation of a sustainable society through promoting investment
and financing that considers ESG issues, namely, environmental (E), social (S), and governance (G) issues,in line with the Group’s management philosophy.
1. Investment and financing activities that consider ESG issues
We incorporate ESG issues into the asset management process and make investment and financing
decisions that promote our asset management to achieve a sustainable society.
2. Constructive dialogue on ESG issues with investees
We undertake appropriate stewardship activities that integrate ESG factors, with the aim of improving
the corporate value of investee companies and contributing to resolving social issues.
3. Cooperation in ESG investment and financing and support for the development of a sound market
Through cooperation with Group companies in ESG investment and financing activities and sharing information with industry organizations, we strive to sophisticate the asset management process of ESG
investment and financing, and support the sound development of its market.
4. Enhancement of disclosure regarding ESG investment and financing initiatives
We will appropriately disclose the status of our ESG investment and financing activities.

80

2-1

Signing of the Principles for Responsible Investment (PRI)

Taiyo Life, Daido Life, and T&D Asset Management have signed thePrinciples for Responsible Investment (PRI)*, which is supported by
the United Nations.
Taiyo Life
In order to further fulfill its social responsibility as an institutional investor, Taiyo Life determined that itwas essential to exert its influence for the betterment of society and the global environment throughinvestment and lending activities to a greater extent, and to contribute to the realization of a sustainable
society. In line with this thinking, in March 2007, Taiyo Life became the first Japanese life insurancecompany to sign the PRI. Based on these principles, Taiyo Life gives due consideration to environmental,social and governance (ESG) issues, and promotes asset management to achieve a sustainable society.
Daido Life
Daido Life supports the objectives of the PRI and became a signatory institution to them in November
2016. Based on these objectives, Daido Life is contributing to the formation of a sustainable society
through promoting investing and lending that considers ESG issues. Specifically, we are promoting
lending and investment that aims to supply funds to companies and businesses that contribute tosolving climate change and the development of social infrastructure. We are also carrying out initiatives
regarding asset management that incorporates ESG factors such as company analyses of investment
and lending processes.
T&D Asset Management
T&D Asset Management, to fulfill its responsibilities of being entrusted as an institutional investor thatmanages investments, endorses the concept of the PRI, and signed them in March 2012. In accordancewith these principles, T&D Asset Management tackles ESG issues in a manner consistent with meetingthe long-term interests of customers, fully grasping the status of investee companies. Accordingly, thecompany is also committed to pursuing the sustained growth of these companies, particularly throughholding constructive dialogues with them and through the exercise of voting rights, with the aim ofincreasing the medium- and long-term investment returns on the funds entrusted to it by customers.
The status of each Group company’s PRI initiatives is reported in PRI Transparency Report. Enter the name of the company of interest into
the search box at the following link:WEB

https://www.unpri.org/searchresults?qkeyword=&PageSize=10&parametrics=* The Principles for Responsible Investment (PRI) are a code of conduct for the global financial industry that was proclaimed by Kofi Annan,
the secretary-general of the United Nations in 2006. A commitment to these principles has been signed by over 5,000 financial institutions
worldwide, and by 124 in Japan (as of August 2023).

Sustainability Management

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T&D Insurance Group Sustainability Report 2023

2. Our Initiatives as a Responsible Institutional Investor

Principles for Responsible Investment (PRI) Initiatives
The efforts of Taiyo Life and Daido Life to promote asset management that takes ESG issues into
consideration are organized around the individual PRI principles as follows.
Principle 1: We will incorporate ESG issues into investment analysis anddecision-making processes.
We reflect the PRI approach in our stance on asset management
Taking ESG issues into account is one of Taiyo Life and Daido Life’s stances on asset management,
as is clearly stated in our rules for asset management.
In making investment decisions, ESG factors are incorporated into the analysis and decision-making process of all assets under management, taking into account the characteristics ofeach asset under management.
Principle 2: We will be active owners and incorporate ESG issues into our ownershippolicies and practices.
Exercise of voting rights based on the PRI approach
We have established standards for exercising voting rights based on the PRI approach. In addition
to our fiduciary responsibility to our customers, shareholders, and other stakeholders, we take
ESG perspectives into consideration while appropriately exercising voting rights for all shares wehold, and disclose the status of voting rights on our website.
Principle 3: We will seek appropriate disclosure on ESG issues by the entities in which
we invest.
Adequate disclosure of ESG issues
We strive to practice regular constructive purposeful dialogue (engagement) with our investment
targets. Through dialog with investee companies, we request the disclosure of financial information, such as corporate performance, as well as non-financial information, such as ESG issues.
Principle 4: We will promote acceptance and implementation of the Principles within
the investment industry.
Explanation and dissemination of PRI to external business partners
We are promoting the dissemination of responsible investment principles by explaining the statusof PRI activities to corporate pension plan and other contract partners and encouraging externalmanagement contractors to incorporate ESG elements in their asset management.
Principle 5: We will work together to enhance our effectiveness in implementing
the Principles.
Information exchange and collaboration with PRI signatory institutions
We regularly participate in meetings with PRI signatory institutions and related entities and actively exchange opinions with other PRI signatory institutions. We also participate in various initiatives
in Japan and overseas, and strive to improve the level of our efforts and the effectiveness of ouractivities through collaborative engagement.

Principle 6: We will each report on our activities and progress towards implementing
the Principles.
Appropriate reporting on the status of our PRI activities
We internally and externally disclose details regarding our PRI initiatives on our website, in our
disclosure materials, and elsewhere. In terms of the PRI framework, we also report on the statusof our PRI activities for the fiscal year to the PRI Secretariat. In addition, we conduct e-learningand other activities for those in charge of asset management so that everyone involved in asset
management can deeply understand the concept of PRI.

2-2

Specific ESG Investment Initiatives

203-2

To promote asset management that considers ESG issues, the T&D Insurance Group has introduced
various ESG investment methods depending on the characteristics of the assets held.
Specifically, we have introduced, depending on the characteristics of the assets, the integration of
non-financial information such as ESG in investment decisions, as well as a negative screening methodthat excludes companies and businesses from investment and lending if they are unfavorable from theviewpoint of ESG, and we are expanding investments and financing in themes that contribute to solving
ESG issues (ESG-themed investment and financing). We also support the medium- to long-term business growth of investees and borrowers through constructive dialogue (engagement) with them on the
ESG issues they face.
Utilization of ESG issues in the asset management process (integration)
Taiyo Life and Daido Life 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 making investment and financing decisions for all assets under management.
Integration of ESG assessments into investment and financing decisions
When investing and financing stocks, bonds and other securities as well as real estate and loans, we assess, for example, that organization’s initiatives relating to ESG and incorporate that into our investment
and financing decisions.

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Governance and Internal Control

Management Control

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T&D Insurance Group Sustainability Report 2023

2. Our Initiatives as a Responsible Institutional Investor

Environmentally and socially conscious real estate investment
We are making an effort to take the environment and local communities into consideration when investing in real estate. While paying consideration to the beautification of cityscapes and harmony with thesurrounding area, we are establishing public open spaces as places for relaxation and refreshment, andwe continue to implement energy-saving initiatives, such as installing highly energy-efficient equipment(air conditioners, etc.) in our properties as needed.
In addition, in consideration of social issues such as the increase in the number of people requiringlong-term care and support in an aging society, we are working to attract private assisted living facilities
that utilize our own real estate properties.

Arctic (areas north of 66°33’N) where the impacts on climate change and the ecosystem are high, or inoil sands extraction projects, which pose a greater environmental burden during extraction and refining
compared to traditional petroleum.
ESG-themed investment and financing
The three life insurance companies (Taiyo Life, Daido Life and T&D Financial Life) take ESG issues into
account in making investment and financing decisions and focus their loans and investments on themesthat contribute to creating a sustainable society.
• Investments in “green bonds,” which help resolve environmental issues
We invest in green bonds issued by various issuers, including local governments and operating companies, with the goal of funding renewable energy generation projects and energy efficiency projects.
Specifically, we invested in green bonds, which financially support environmental projects such as
climate change adaptation, creating smart energy cities, and clean transportation.

”Icoi Lounge” on the 2nd floor of Daido Life Sapporo Building

Lien Reve Gyosen Park (private assisted living facility)

As a place to gather and relax for citizens, a spacious lounge with trees
has been established on the second floor of the building. In the event of adisaster, it will accept people who are unable to return home.

A full range of shared facilities enrich the lives of residents,
including a spacious dining room that doubles as a space forexercise and rehabilitation and a community interaction space.

Negative Screening
We have introduced a negative screening method that excludes companies and businesses from investment and lending if they are unfavorable from the viewpoint of ESG.
The current targets of negative screening are as follows. Going forward, we will continue adding andreviewing targets based on international concerns and trends related to the environment and society.

• Initiatives for “transition finance,” which contributes to the realization of a decarbonized society
As part of our efforts to realize a decarbonized society, we engage in “transition finance,” which provides financial support for reducing the environmental footprint of business activities with high environmental loads, and for decarbonizing them entirely.
Specifically, we have invested in transition bonds issued by Japanese business companies toachieve their carbon neutrality plans.
• Investments in and financing of renewable energy projects and energy efficiency projects
We provide funds for investment in large-scale wind and solar power generation projects that can contribute to global environmental protection and energy conservation and provide loans (project finance)
for energy efficiency projects.
Through these initiatives, we are working to combat global warming and contributing to improved
energy self-sufficiency.

Exclusion of manufacturers of inhumane weapons
Given the humanitarian concerns, we prohibit investment and financing in companies that manufacture
inhumane weapons (cluster bombs, biological and chemical weapons, anti-personnel mines, etc.).
Attitude towards investment and financing for businesses with large environmental impact
Because the consumption of fossil fuels is one of the major factors driving environmental problems suchas climate change and air pollution, it is the Group’s policy not to make any new investments or loans
to coal-fired power generation projects or coal mining projects. However, we may consider investments
and loans in cases where the environmental impact of the project will be reduced, for example throughthe development and application of new technologies for carbon capture and storage (CCS) or carbon
capture, utilization and storage (CCUS).
It is also our policy not to make any new investments or loans in oil and gas extraction projects in the

ESG-themed investment and financing(billions of yen)

1,000.0

840.0

800.0
600.0

530.0

640.0

400.0
200.0
Hamasato Wind Farm
Photo courtesy of Eurus Energy Holdings Corporation

0

FY2020

FY2021

FY2022

Sustainability Management

Organizational Profile

Priority Theme

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Governance and Internal Control

Management Control

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Index

T&D Insurance Group Sustainability Report 2023

2. Our Initiatives as a Responsible Institutional Investor• Investment in “social bonds,” which provide support to developing countries and support for
COVID-19 countermeasures
We invest in social bonds to support the education and employment in developing countries, solve
global social issues such as gender equality, and support measures against new coronavirus infections.
Specifically, we financed COVID-19 vaccine loans, and invested in education bonds, JICA genderbonds, and JICA peace building bonds.
• Investment in theme bonds aimed at resolving various social issues in Japan and overseas
In addition to the activities outlined above, we also engage in investments and financing aimed at resolving various social issues in Japan and overseas. These include:– Investments in Nutrition Bonds
We invested in Nutrition Bonds issued by the Development Bank of Latin America, which are used tofinance projects aimed at achieving sustainable growth and regional integration in Central and SouthAmerica, and in the Caribbean; these projects include subsidy programs for children, pregnant women,
and persons with disabilities to purchase basic food supplies.
– 
Investments in Sustainable Development Bonds, which support development projects indeveloping countries
We invested in Sustainable Development Bonds issued by the World Bank, which are used to provide
financial support for development projects in developing countries in wide-ranging fields, including: agriculture and food security; education; energy; finance; trade and industry; health preservation; administration, infrastructure, and governance; water and public health; the environment; and gender equality.
• Initiatives for “impact investing,” which seeks to create positive social and environmental impacts
We engage in “impact investing,” which seeks not only togenerate returns on investments, but also to create positive impacts on social and environmental issues.
– Investment in impact funds
We invest in impact funds that aim to achieve both investment returns and social impact., including an infrastructure
fund that aims to reduce total CO2 emissions through investment in renewable energy power generation projects;
a private equity fund that invests in companies engaged
in education, healthcare, food, agriculture, climate, environmental conservation, and other fields to solve social issues;
and a bond funds which seek to create impact through investment in global green social bonds, etc.

83

3. Addressing the Issue of Climate Change

In 2022, Daido Life received the 8th Sustainable Finance Excellence Award (sponsored by the
Research Institute for Environmental Finance) in recognition of its investment in the impact bond fund“BlueOrchard Impact Bond Fund – Blue I.”– Sustainability-linked investment and financing initiatives
We also engage in sustainability-linked investments and financing, which have variable investment andfinancing conditions. These conditions depend on the level of achievement of ESG-related management indicators and goals, which are set in advance by investees and borrowers.
Specifically, we have provided operating companies with loans whose interest rate and other conditions varies according to the extent to which they achieve their CO2 emissions reduction goals, and wehave invested in sustainability-linked bonds.
• Investment in the “Fund Supporting Good Health” and “Japan Healthy Society Support Fund,”which support projects that promote human health
We invested in the Fund Supporting Good Health and the Japan Healthy Society Support Fund, with theaim of responding to the social issue of extending people’s healthy life spans. The former is for listed
corporations in Japan involved in businesses such as pharmaceuticals, healthcare, sports clubs, andhealth foods that contribute to the promotion of human health, while the latter supports projects that
contribute to the promotion of human health.
• Investment in companies that contribute to the creation of a sustainable society
Taiyo Life and Daido Life invest in the “T&D Japan Equities ESG Research Fund” (a privately placed
investment trust). The fund selectively invests in companies with an outstanding ESG performance,
through stock selection based on ESG research. T&D Asset Management established and manages
the fund (management began in July 2015).

3. Addressing the Issue of Climate Change
The BlueOrchard Impact Bond Fund - Blue I invests insocial bonds and other instruments that use loans tocreate jobs at SMEs in areas with limited access tofinancial services.
Photo courtesy of Blue Orchard

CO2 emission reduction targets for investees and borrowers
As a responsible institutional investor, the T&D
Insurance Group has set emission reduction targets for CO2 emissions from its own investees
and borrowers (Scope 3, Category 15) as shownon the right.

T&D Insurance Group CO2 emissions reduction target
FY203040% reduction(compared to FY2020)

FY2050Net zero* Covers stocks, bonds, and loans held by Taiyo Life and Daido Life
that were issued by listed companies in Japan
Reduction targets are set on a per-unit basis (CO2 emissions perunit of investment)

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T&D Insurance Group Sustainability Report 2023

3. Addressing the Issue of Climate Change

Efforts to Achieve Targets
Taiyo Life and Daido Life engage continuously with investees and borrowers on the theme of climatechange to reduce CO2 emissions and achieve net zero, and provide financial support to investees andborrowers who are tackling climate change issue through initiatives for financing projects that use thefunds for investments in decarbonization.
Dialogue with investees and borrowers
We are requesting that our investees and borrowers with the highest CO2 emissions improve theirinformation disclosure, including publishing emission reduction targets and roadmaps for achieving thetargets. In addition, we support the long-term efforts of investees and borrowers by exchanging opinions
and sharing knowledge on how to reduce emissions.
Financial contributions through ESG-themed investment and financing
As an institutional investor who manages long-term funds, the Group believes that it is possible toprovide stable funding to investees and borrowers who promote long-term solutions to climate change
and other issues. We support companies tackling climate change issues from a financial standpoint byactively investing in “green bonds,” “transition finance,” and similar instruments that use the funds forinvestments aimed at decarbonization.
Although investment in and financing of companies with high CO2 emissions may temporarily cause
an increase in CO2 emissions from the investees and borrowers, in the long term, we believe that wecan promote corporate efforts toward decarbonization and contribute to the achievement of the net zerotarget of society as a whole. We will continue to engage in ESG-themed investments and loans while
taking into account the schedule for achieving net zero for investees and borrowers and the effects andeffectiveness of our investments.
CO2 emissions of investees and borrowers
At the end of FY2022, CO2 emissions based on our investee and borrower portfolio (covering stocks,
bonds, and loans held by Taiyo Life and Daido Life that were issued by listed companies in Japan)
amounted to 1,989,000 tons. On a per-unit basis, which is how our interim targets toward net zero aredefined, emissions were 0.76 tons per million yen, a 33.3% reduction from FY2020.
We will continue to make steady efforts to achieve our targets, and we will also consider expanding
the number of assets subject to emission measurement, with a view to extending our response to climate change issues to our entire portfolio.

4. Initiatives to Conform to the Principles for Responsible Institutional Investors (Japan’s Stewardship Code)Initiatives to Conform to the Principles for Responsible

4. Institutional Investors (Japan’s Stewardship Code)

2-29

Three of the Group’s companies, Taiyo Life, Daido Life, and T&D Asset Management endorsed and expressed their commitment to the Principles for Responsible Institutional Investors (Japan’s StewardshipCode) in May 2014. Details regarding the policies of each company with respect to the Principles, policy
on exercising voting rights, status of exercising voting rights, and self-evaluations are published on thecompanies’ respective websites (Japanese).

Taiyo Life Insurance Company

https://www.taiyo-seimei.co.jp/company/activity/ssc.html

Daido Life Insurance Company

https://www.daido-life.co.jp/company/csr/investor/ssc/

T&D Asset Management Co., Ltd.

https://www.tdasset.co.jp/company/principles/stewardship/* Since T&D Financial Life does not directly invest in listed stocks, the company does not express support for the Stewardship Code.

Policy on Exercising Voting Rights
Taiyo Life, Daido Life
Taiyo Life and Daido Life strive to make voting decisions based not only on formal determination criteriasuch as financial information, but also on non-financial information such as ESG. They also promote
the sustainable growth of investment targets by practicing regular constructive purposeful dialogue(engagement). Based on this fundamental approach, they exercise their voting rights rigorously, in
accordance with criteria (revised continuously in accordance with the economic environment and social conditions) established to ensure that voting rights are exercised properly. In order to strengthen
our governance and conflict of interest management structures relating to stewardship activities asa whole, including the exercise of voting rights, we created a committee on exercising voting rights,
which includes outside members.
Main Focal Points for Carefully Examining Proposals, Engaging in Dialogues and Making Voting
Decisions
Are dividends to shareholders insufficient or excessive?
Does the investee company face problems in connection with any activities against public order andcommon decency (willful tax evasion, collusion, bribery, etc.) and/or antisocial activities such as environmental destruction (actions deemed questionable in light of ESG problems)?

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

Index

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T&D Insurance Group Sustainability Report 2023

4. Initiatives to Conform to the Principles for Responsible Institutional Investors (Japan’s Stewardship Code) rom the standpoint of requesting investee companies to ensure corporate governance is functionF
ing effectively in management, does the investee company present problems in terms of any of thefollowing:• Level of ROE• Number and independence of outside directors•
Attendance rate of corporate officers at meetings of the Board of Directors and the Audit &Supervisory Board• Length of service of Audit & Supervisory Board members• Eligible recipients of retirement benefit payments• Eligible recipients and levels of incentive compensation
T&D Asset Management
T&D Asset Management believes that exercising voting rights is an effective means for shareholders toincrease the corporate value of investee companies, by influencing the corporate management of thoseinvestee companies. We have established Guidelines for Exercising Voting Rights, which aim to prioritize
shareholder profits; for assets under both active and passive management, we carefully examine every
proposal put forward at Ordinary Shareholders’ Meetings of investee companies, and exercise our voting
rights accordingly.

Status of Exercising Voting Rights
Taiyo Life, Daido Life
Taiyo Life and Daido Life exercised their voting rights on proposals at Shareholders’ Meetings held between July 2022 and June 2023. Such exercise was conducted after holding dialogues with investment
targets as necessary, in accordance with the criteria for determining the exercise of voting rights.
Status of Exercising Voting Rights
Taiyo Life and Daido Life reject proposals in cases where problems are not rectified despite constructive
dialogue, cases where shareholder value is highly likely to be impaired and in certain other circumstances. The results of voting rights of shares listed on domestic markets exercised at Shareholders’ Meetings
held by domestically listed companies between July 2022 and June 2023 are as follows.
Taiyo LifeType

Abstain

Total
Carte
agendablanche
items

154

3

0

0

157

267

4

0

0

Surplus appropriation

36

0

0

0

36

61

0

0

0

61

Director appointment*1

64

1

0

0

65

82

1

0

0

83

Main Approaches to Individual Proposals
We carefully examine individual proposals according to our Guidelines for Exercising Voting Rights, fromthe perspective of improving corporate value and encouraging sustainable growth. To ensure our assessments of proposals do not rely solely on numbers, we endeavor to understand the actual circumstancesat the company in question through dialogue and other means.
The Guidelines for the Exercise of Voting Rights set forth criteria mainly from the following
perspectives.

Corporate auditor
appointment*1

31

0

0

0

31

71

1

0

0

72

Partial change to
Articles of Incorporation

10

0

0

0

10

18

0

0

0

18

Payment of
retirement bonus

0

1

0

0

1

1

0

0

0

1

Change to officer
compensation

8

1

0

0

9

25

0

0

0

25

[Capital Policies]
Balance between company earnings relative to dividend levels and medium- to long-term funding needs

Issue of stockacquisition rights

0

0

0

0

0

3

0

0

0

3

Appointment ofaccounting auditors

0

0

0

0

0

3

0

0

0

3

Reconstruction related*2

2

0

0

0

2

0

0

0

0

0

Other company
proposals*3

3

0

0

0

3

3

2

0

0

5

1

0

0

0

1

0

2

0

0

2

0

12

0

0

12

0

38

0

0

38

154

15

0

0

169

267

42

0

0

309

[Appointment of Executives]
Whether there is any misconduct by officers or employees or illegal corporate activities
Ratio and diversity of independent outside directors on the Board of Directors
Poor business performance, capital efficiency

Company proposals

Approve Reject

Daido Life

Total
Carte
Abstainagenda Approve Reject
blancheitems

Of which,
antitakeover measures

271[Executive Compensation]
Balance with company earnings
Function of stock options and stock compensation system as long-term incentives (in the case of outside
directors, strength of incentive elements)

Shareholder proposals[Shareholder Proposals]
Does it contribute to enhancing shareholder value?

*1 Regarding appointments of multiple candidates, if even one candidate was voted against, it is counted as “Reject.”*2 Includes mergers, business transfers, share exchanges, stock transfers, and company splits.
*3 Includes share buybacks, decrease in legal reserve, increase through third-party allotment, decrease in capital, reverse stock split, officer
bonuses, antitakeover measures, and income statement approval.

Total

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

Index

86

T&D Insurance Group Sustainability Report 2023

4. Initiatives to Conform to the Principles for Responsible Institutional Investors (Japan’s Stewardship Code)Status of Dialogue
Taiyo Life and Daido Life make efforts to share awareness with investment targets through constructive,
purposeful dialogue based on issues concerning sustainability. Through such efforts, the companies
seek to stimulate the improvement of corporate value and sustainable growth from the mid- to long-term
perspective in investment targets such as domestically listed companies and corporate bond-issuingentities. Between July 2022 and June 2023, Taiyo Life and Daido Life engaged in dialogue with 188
companies and 107 companies respectively.
Furthermore, in exercising voting rights, Taiyo Life and Daido Life emphasize dialogue with investment targets and endeavor, through proactive dialogue with those investment targets, to verify the
management situation and share the awareness of issues, as well as to continuously conduct initiatives
which contribute to the improvement of shareholder value.
Examples of companies with whom Taiyo Life and Daido Life engaged in dialogue:• Companies whose ROE fell below a certain threshold• Companies issuing dividends despite having reported a net loss
• Companies not paying adequate shareholder dividends despite having adequate resources• Companies at which the number of outside directors fell below a certain number• Companies with substantial doubts regarding the independence of candidates for independent outside director• Companies at which the number of directors increased, and the reason for such was unclear• Companies that proposed the introduction/continuance of anti-takeover measures• Companies paying retirement bonuses to outside directors and Audit & Supervisory Board members
whose task is to monitor the status of management• Companies that introduced or increased executive compensation such as granting stock acquisitionrights or restricted shares• Companies paying incentive compensation to outside directors and Audit & Supervisory Board members whose task is to monitor the status of management• Companies that have been involved in misconduct or other such incidents
Self-evaluation
Between July 2022 and June 2023, Taiyo Life and Daido Life performed self-evaluations of the status of
implementation of each of the Principles in this code. The evaluations of both companies determined that
activities were carried out steadily, in accordance with the policies on the Principles.

T&D Asset Management
Status of Exercising Voting Rights
T&D Asset Management has established the Stewardship Activity Committee to deliberate and makedecisions on matters related to the exercising of voting rights.
The Stewardship Activity Committee deliberates and makes decisions on matters related to the exercising of voting rights, including the company’s Guidelines for Exercising Voting Rights. The Guidelines
for Exercising Voting Rights are designed to go beyond simply providing guidance for formal assessments; instead, they are intended to contribute to the sustainable growth of investee companies.
Proposals for instructions regarding the exercising of voting rights are drafted based on the
Guidelines for Exercising Voting Rights; taking feedback from the Stewardship Activity Committee into
consideration, the Committee chairman then makes a final decision on these proposals.
The results of voting rights of shares listed on domestic markets exercised at Shareholders’ Meetings
held by domestically listed companies between July 2022 and June 2023 are as follows.
Approve
Company proposals

RejectAbstainCarte
blancheTotal agenda
items

6,993

738

0

0

7,731

Appointment and dismissal of
directors*

5,507

621

0

0

6,128

Appointment and dismissal of
corporate auditors*

620

72

0

0

692

Appointment and dismissal of
accounting auditors

13

0

0

0

13

Officer compensation

204

15

0

0

219

9

6

0

0

15
457

Payment of retirement bonus toretired officers
Surplus appropriation

453

4

0

0

Reorganization-related

7

0

0

0

7

Adoption, renewal, and discontinuation of anti-takeovermeasures

1

9

0

0

10

Other proposals relating tocapital policies

14

0

0

0

14

Proposals relating to Articles ofIncorporation

164

11

0

0

175

Other proposals

1

0

0

0

1

Shareholder proposals

10

167

0

0

177

7,003

905

0

0

7,908

Total

* Figures for the appointment and dismissal of directors and the appointment and dismissal of corporate auditors are compiled from individual items within each proposal.

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

4. Initiatives to Conform to the Principles for Responsible Institutional Investors (Japan’s Stewardship Code)Status of Dialogues
T&D Asset Management uses individual and small meetings with companies as opportunities to holdconstructive dialogues that promote sustainable growth from such perspectives as business strategy,
capital efficiency, environmental and social issues, and governance. In the period between July 2022 andJune 2023, meetings were held with 144 companies. Examples of these dialogues are presented below.
(1) Capital efficiency perspective: dialogue with a machinery manufacturer
We reviewed company-internal discussions on improving shareholder returns and discussed future
policies. Despite the fact that the company simultaneously revised upward its earnings and dividend
forecasts for the fiscal year, the dividend payout ratio remained below the target of 25% in the medium-term management plan. The company replied, “While we are always seeking to raise the dividend
payout ratio, we prioritize the balance between annual dividend hikes and growth investments.” We
therefore proposed that the company formulate a medium- to long-term cash allocation plan thatconsiders raising the dividend payout ratio.
(2) Governance perspective: dialogue with a company that sells previously owned homes
We sought clarification of the company’s relationship with its largest shareholder, with whom it has
a capital/business alliance, and its policy for dealing with minority shareholders. In addition, because
one outside director had been in office for a long time and was of questionable independence, we
reviewed and discussed the roles required of outside directors. We were able to confirm that, atthe time of the alliance, the company had maintained its management independence as a conditionof the alliance. We also confirmed that, when making decisions regarding the adoption of products
from the company that is the largest shareholder, these decisions are made from the perspectiveof customers and economic rationality. Finally, we confirmed that the company has a policy thatemphasizes the protection of minority shareholder interests. Meanwhile, in the case of the outside
director who had been in office for a long time, the company described the director as highly effective
and willing to express opinions without hesitation to the representative director. However, since thedirector’s independence was an issue, we proposed measures such as increasing the number ofoutside directors.
(3) Environmental and social issues perspective: dialogue with an electric power company
We held a dialogue on a roadmap for the realization of a decarbonized society. The company aims toachieve net zero CO2 emissions by 2050, but hydroelectric power, which currently accounts for thelargest share of its renewable energy, requires the construction of dams, so there is limited room for
expansion in the future. Its main methods for reducing CO2 emissions will be reducing and improving
the efficiency of thermal power generation, expanding wind power generation, implementing hydrogen power generation, and capturing, reusing, and storing emitted CO2. Although there appear to be
many issues with renewable energy such as production locations and power transmission, we willcontinue to monitor the progress of the roadmap.

87

5. Publication of Responsible Investment Report

Self-evaluation
Between July 2022 and June 2023, T&D Asset Management carried out a self-evaluation of the statusof implementation of each of the Principles in this code. It determined that activities were steadily being
carried out in accordance with its basic policy for each Principle.

5. Publication of Responsible Investment Report
Taiyo Life and Daido Life publish the Responsible Investment Report to give stakeholders a deeper understanding of their stance and efforts toward responsible investment.
The Responsible Investment Report summarizes our basic stance on responsible investment initiatives through our ESG investment and financing activities and stewardship activities, and presents thedetails of our activities to date.
The Taiyo Life and Daido Life Responsible Investment Report is available on the Taiyo Life and Daido Life websites. (Japanese)
Taiyo Life
PDF

https://www.taiyo-seimei.co.jp/company/activity/download/pri/index/responsible_investment_report_2023.pdf

Daido Life
PDF

https://www.daido-life.co.jp/company/csr/pdf/ri-report2023.pdf

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

Social Activities

413-1

2-2

1. Basic Concept
1-1

Basic Concept

As a Group engaged in the life insurance business with its highly public and social nature, the T&D
Insurance Group implements a variety of initiatives for social activities and conserving the environment.
In addition, the Group supports the volunteer activities of its employees and gets involved in social
programs by partnering with the foundations. As a life insurance group, our ultimate aim is to achievesustained growth in step with society in view of our commitment to fulfilling our public mission andmeeting our social responsibilities. To that end, our efforts focus primarily on “improving health, medicalcare and welfare” and “developing a sound society.”

Improving Health and Welfare

2. (Health, Medical Care, Welfare, etc.)
2-1Blood Donation Drives

The T&D Insurance Group cooperates with theJapanese Red Cross Tokyo Metropolitan Blood
Center to sponsor blood donation drives. We holdbiannual blood donation drives in the summer andthe winter at Tokyo Nihonbashi Tower, and executives and employees are encouraged to donate
blood. In fiscal 2022, a total of 260 people in theGroup donated blood during the drive.

88

The Friends of Taiyo Life Goodwill Circles (“Friends”), which was established in December 2005 and iscomposed of executives and employees from Taiyo Life and its affiliates, has 8,573 members as of March
31, 2023. In order to support social contribution activities on a monthly basis, the members contributeany fractions less than one hundred yen from their take-home salary. At present, the Friends mainly
provides supports for local community-based social contribution activities driven by branches nationwide
and head office departments, environmental conservation activities in cooperation with NPOs and thelike, and educational support. Details of the activities are posted in Taiyo Life’s in-house journal, throughwhich the company is calling for broader participation by executives and employees in the activities.
Major Activities in FY2022• Environmental conservation activities in Taiyo Seimei no Mori (the Forests of Taiyo Life) as well as the collection and donation of CDs/DVDs, used books, school backpacks (randoseru), musical instruments, etc.

2-3
3-3

Friends of Taiyo Life Goodwill Circles

Daido Life Employees’ Community Contribution Club

Established in 1992 to commemorate the Daido Life’s 90th year in business, the Daido Life Employees’
Community Contribution Club is a voluntary activity organization composed of Daido Life’s executives andemployees; it works to promote and support fund-raising activities and volunteer activities by members.
The club has also held a One-day Outing Volunteer Activity for the Physically Disabled since 1994, which
is run by executives and employees. (The activity was cancelled in 2022 due to the COVID-19 pandemic.)
The club provides participants with opportunities to deepen their understanding of disabilities by directlyinteracting with disabled people, including assisting wheelchair users or providing walking assistance.
Major Activities in FY2022• Fundraising and donations: Donations from executives and employees as well as revenues from charity calendar exhibitions
were used to make contributions to facilities for the disabled aswell as disability advocacy groups.
• Volunteer activities: The club provided operational and other support for a music concert played by persons with disabilities.
• Other activities: Used postage stamps and other items collected from branches nationwide were
donated to organizations that support social contribution activities, for the benefit of international
medical cooperation.

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

89

2.Improving Health and Welfare (Health, Medical Care, Welfare, etc.)

2-4Supporting the Japan Down Syndrome Society Taiyo Life

Taiyo Life and members of Taiyo Life Goodwill Circles support the activities of the Japan Down Syndrome
Society by interacting with it.
Main Activities• Support activities as a supporting member of theassociation.
• Provide Taiyo Life conference rooms for use as venues forseminars held by the association and for meetings of its
Board of Trustees and Board of Directors.
• Participation of the corporate officers and employees ofbranches and head office departments as volunteers at
association activities.

2-5

The Daido Life Welfare Foundation

Purpose of Establishment
Established by Daido Life in 1974, the foundation aims to contribute to the promotion of public healthand welfare. It provides grants to research on health problems arising from worsening living conditionsand various issues associated with the sharp increase in the elderly population.
Main Activities
Subsidies for Regional Health and Welfare Research and Volunteering•Subsidies for regional health and welfare
research: The foundation subsidizes research related to community health, medical care, and welfare, which is carried out
by public health and welfare professionals
who have close ties to local communities.
• Subsidies for volunteer activities by
seniors: The foundation subsidizes volunteer exchange activities that promote the development of healthy minds in children and the welfare of
the elderly and persons with disabilities, which are conducted by groups of people aged 60 and older.
• Subsidies for volunteer activities by business people: The foundation subsidizes volunteer exchange
activities that promote the development of healthy minds in children and the welfare of the elderly
and persons with disabilities, which are conducted by groups of people working at a company or otherorganization on their days off.
[Cumulative Grants from Establishment in 1971 to FY2022] 4,528 grants; ¥1,725.57 million

Publication of the “Environment and Health” Series Brochures
The foundation publishes the “Environment and Health” series of compact brochures, which containarticles written by experts on the environmental, health, and welfare issues of high public interest; a totalof 75 brochures have been published thus far. To ensure that these brochures are accessible to as many
people as possible, recent editions have been digitized and made publicly available on the foundation’s
website free of charge.
Home Care/Nursing Consultation and Workshop
The foundation has made DVDs depicting scenes from practical workshops available for rent free ofcharge.

2-6

The Taiyo Life Welfare Foundation

Purpose of Establishment
Established in 1984 to commemorate the 90th anniversary of the founding of Taiyo Life. This foundation
works to improve social welfare in Japan by sponsoring the projects to enhance welfare of the elderly
and the disabled.
* In December 2009, when the foundation was authorized as a public interest corporation, the name of the foundation was changed from
Taiyo Life Himawari Foundation to the Taiyo Life Welfare Foundation.

Main Activities• Project grants: Grants to the projects by NPOs working to contribute to the welfare of the elderly, thedisabled living at home, and those with dementia.
• Research grants: Grants for study and research regarding healthcare and medical care for the elderly
and lifestyle diseases and welfare of the elderly.
[Cumulative Grants from Establishment to FY2022] 2,428 grants; ¥1,353.21 million
Main Activities in FY2022
In order to fulfill its mission of improving social welfare, in fiscal 2022, the foundation continued providing
grants to projects undertaken by NPOs working resolutely to enhance the welfare of local communities;
it also subsidized study and research programs related to the welfare of the elderly. In fiscal 2022, thefoundation offered grants worth ¥16.75 million to 58 volunteer/NPO projects, and grants worth ¥2.67 million to 6 research projects; in total, the foundation provided 64 grants worth a combined ¥19.42 million.

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

90

3.Developing a Sound Society (Education, Sports, Local Community Contribution, etc.)* In 2001, the National Sports Games for People with Intellectual Disabilities was integrated with the National Sports Games for People with Physical Disabilities to become
the National Sports Festival for People with Disabilities.

Developing a Sound Society (Education, Sports,

3. Local Community Contribution, etc.)
3-1

3-3

Nationwide Clean Campaign Taiyo Life

Taiyo Life is active in cleanup efforts nationwide, an activity
that contributes to the local community. We have cleaned up
the areas around our headquarters each year since 1982. Since
2004, we have conducted cleanups around our branches nationwide as part of the “Nationwide Clean Campaign,” from as
far north as Hokkaido to as far south as Okinawa. Our employees are united in their commitment to contributing to society
and conduct the cleanups as a way to thank local communities
for their long-standing support.

3-2

3-4

Sponsorship of the Japan Junior High School Rugby Football
Tournament Taiyo Life

Since fiscal 2011, Taiyo Life has been a special sponsor of theJapan Junior High School Rugby Football Tournament (Taiyo
Life Cup) hosted by the Japan Rugby Football Union (JRFU).
Taiyo Life chose this sponsorship in sympathy with the basic
spirit of Rugby, “one for all, all for one” which is common to
the basic principle of life insurance. At the same time, Taiyo
Life agrees with the objective of the tournament, which can besummarized as “helping young rugby players and other youth
to develop the quality and skills necessary for shaping a sound society.” Accordingly, we are extending
our support for the sound development of young people through the promotion of junior high school
rugby competitions in Japan in cooperation with the JRFU.

3-3

Supporting Sports for People with Disabilities

Every year, Daido Life sets up a company booth in the
Omotenashi Hiroba (Hospitality Plaza), a venue for interactingwith participating athletes, where people with disabilities can enjoy sports experiences and free games; executives and employees from Daido Life, Taiyo Life, and other affiliated organizations
work as volunteers to support this event. In 2022, the 22nd National Sports Festival for People with
Disabilities was held in Tochigi Prefecture.
We have also been an official partner of the Japanese Para Sports Association since January 2015. In
our capacity as a partner, we work to further popularize and develop sports for persons with disabilities.

Daido Life

The inaugural National Sports Games for People with Intellectual Disabilities* was held in 1992, when
Daido Life celebrated its 90th anniversary, and the company has been a special sponsor of the NationalSports Festival for People with Disabilities every year since.

Official Partner Agreement Concluded with Japan Deaf Football
Association (JDFA) T&D Financial Life Insurance

T&D Financial Life Insurance signed an official partner agreement with the Japan Deaf Football Association in June 2018. As
an official partner, T&D Financial Life will contribute to the development and spread of deaf soccer and futsal, by supporting theactivities of the Japan national deaf soccer and futsal teams, andpromoting sports for persons with disabilities.

3-5

The Sustainability Together Movement

Starting in fiscal 2017, Daido Life has implemented the Sustainability Together Movement as partof its company-wide regional and social contribution activities. In fiscal 2022, under the themeof “Contribution to SDGs,” divisions at head office and branches throughout Japan worked on
various activities such as promoting 3R (reduction, reuse, and recycling), donating to developing countries, and conducting community-based
cleaning activities.

Daido Life

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

91

3.Developing a Sound Society (Education, Sports, Local Community Contribution, etc.)

3-6

Litter cleanup activities using Pirika,
the anti-litter social media app

The T&D Insurance Group promotes cleaning activities
as part of its initiatives aimed at resolving social issues.
In July 2023 we started using Pirika, the anti-litter social
media app, to revitalize and quantify our litter cleanup
activities. Pirika won the Grand Prize at the sixth Nikkei
Social Business Contest, which we co-sponsored.

3-7

NMWA Japan Committee SponsorshipAs part of our efforts to promote diversity and inclusion (D&I), theT&D Insurance Group sponsored the NMWA Japan Committee*
dedicated to “championing women through the arts.”* The Japan Committee assists displays of works by Japanese artists at the exhibitions of women artists held at the National Museum of
Women in the Arts (NMWA) in Washington, DC, USA.

3-8

Hosting Internship Program

Daido Life

Daido Life provides college students with internship opportunities so that they can deepen their understanding of
the life insurance business as well as the risk measuresnecessary for SMEs. In fiscal 2022, the program was held
both in person and remotely and attracted many participants from across Japan. The introduction of the “elective program” enabled participants to experience different
types of work and helped create even more opportunities
to communicate with many Daido Life employees. The
program gives students the chance to visualize themselves at work, to consider whether they are suited
to working in the life insurance business, and thus to map out future career paths.

3-9

The Daido Life Foundation

Purpose of Establishment
Established by Daido Life in 1985, the foundation seeks to promote international mutual understanding
through cultural exchanges with or grants to other countries and thus contribute to the internationalization of Japan.
Main Activities
Presentation of Daido Life Foundation Awards for Area Studies
The foundation seeks to encourage academic research related to various regions around the world;to this end, it presents Daido Life Foundation Awards for Area Studies and Daido Life Foundation
Encouragement Awards for Area Studies to researchers who have achieved superior results in areastudies. Daido Life Foundation Area Studies Special Awards are presented to individuals who have madedistinguished contributions to deepening international mutual understanding.
Translation and Publication Activities
In order to help Japanese people deepen their understanding of the history, culture, and customs of other Asian countries, the foundation undertakes translations of modern literature published in the region; thus far, a
total of 80 works from 14 countries have been translated into Japanese forpublication and donated to universities and public libraries across Japan.
Since fiscal 2012, the foundation has digitized these publications andmade them available on their website free of charge, with a view to increasing readership of these works.
The foundation also translates Japanese literature into various other Asian languages, in a bid to help
people in the region to develop a better understanding of Japan. A total of 48 Japanese works have beentranslated for publication in 8 countries and donated to local universities and libraries.
Educational Support Activities
The foundation provides support for improving educational awareness in Southeast Asian countries; it has
sponsored 20 school construction projects in 5 countries and donated books and school supplies as partof its efforts to establish learning environments. In recognition of its contributions to education over many
years, the foundation was awarded the Third Order of Labor Merit by the government of Laos in 2013.

3-10 Support for Areas Affected by Disasters
When a major disaster occurs, the T&D Insurance Group and its Group companies provide support that
includes making contributions to disaster relief funds and cooperating with recovery work.
Shortly after the Great East Japan Earthquake, the Group promptly dispatched its executives andemployees to the affected areas. There, they participated in volunteer activities such as removing rubble,
bringing in relief goods, and rebuilding individual homes and temples/shrines.

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

Index

92

T&D Insurance Group Sustainability Report 2023

Governance and Internal Control

1. Corporate Governance
1-1

2-9

405-1

Basic Concept of Corporate GovernanceThe basic concept of corporate governance at the T&D Insurance Group is to pursue an efficient and transparent business management structure capable of implementing flexible and united Group management.
Based on this concept, T&D Holdings determines the Group’s business strategies, adequately allocatesGroup management resources, and sets capital policies. In addition, T&D Holdings properly identifies thebusiness risks of its seven direct subsidiaries centered on the three life insurance companies, together
with T&D United Capital, T&D Asset Management, Pet & Family Insurance, and All Right, to create a system for supervising Group management by thoroughly managing revenues and risks for the entire Group.
Meanwhile, the subsidiaries, which have their own business strategies, develop marketing strategies
leveraging their strengths and conduct business operations to fully demonstrate their autonomy andexpertise, thereby increasing the Group’s corporate value. In this way, the Group is committed to management that clarifies the respective roles and responsibilities of T&D Holdings and its direct subsidiaries.
For details about corporate governance, please see the Report Regarding Corporate Governance that T&D Holdings submitted to the Tokyo
Stock Exchange.
WEB

https://www.td-holdings.co.jp/en/company/governance/

and appropriateness of the appointment, dismissal, succession planning, and compensation of directors
and executive officers, thereby strengthening the corporate governance framework of T&D Holdings andthe Group by ensuring the transparency of management and enhancing accountability. In addition, an
Executive Management Board has been established to deliberate and resolve important matters related
to the management of T&D Holdings and the management control of the Group. In parallel, the Group
Strategy Board has been established to deliberate matters related to the Group’s growth strategy andother relevant and important matters from the perspective of the Group as a whole, in order to achievea sustainable improvement in the Group’s corporate value.

Corporate Governance Framework (April 2023)
Shareholders’ Meeting
Appointment
Dismissal

Nomination and Compensation Committee

ReportingOpinions
submitted

Appointment
Dismissal

Appointment
Dismissal

ReportingBoard of Directors
Auditing

Group Compliance Committee

Audit andSupervisory Committee

ReportingAssess the relevance ofthe financial audit

Audit and Supervisory
Committee OfficeGroup ERM Committee

ReportingPresident

Cooperating

Instruction
Reporting

1-2

Outline of Corporate Governance Framework

T&D Holdings shall make decisions on important business matters and oversee the execution ofbusiness through its Board of Directors. The Company has adopted a “company with an Audit andSupervisory Committee” system, and the Company shall audit and oversee the performance of directors’ duties through its Audit and Supervisory Committee, which is independent of the Board of
Directors. In addition, an executive officer system has been instituted to further strengthen business execution, and by clarifying oversight and execution responsibilities, the governance function of the Boardof Directors is reinforced. Furthermore, T&D Holdings has established a Nomination and Compensation
Committee as an advisory body to the Board of Directors. The Committee deliberates on the fairness

Instruction

Executive Management Board
Group Risk Management Committee

Group Strategy Board

External
auditing

Group Management Promotion Committee
Group DX Promotion CommitteeGroup
FinancialBusiness
Planning
Strategy Development
Department Department Department

Accounting
Department

Sustainability
PublicGeneralRisk
Promotion
RelationsAffairs
Management
Department Department Department Department

Each department

Internal
auditing

Internal
Auditing
Department

Independent Accounting Auditors

Group SDGs Committee

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

T&D Insurance Group Sustainability Report 2023

Third-party Opinion

Index

93
1. Corporate Governance

1-3

Corporate Governance Framework

2-10

2-11

2-15

Shareholders’ Meeting
The Shareholders’ Meeting is the highest decision-making entity of T&D Holdings. At the meeting, reports are made on the Group’s business and consolidated/non-consolidated financial statements for the
fiscal year. Resolutions are also made on important issues, which are stipulated in laws and ordinances
and the Articles of Incorporation, such as the appropriation of retained earnings and election of directors.
The Ordinary Shareholders’ Meeting is held in June once in every year.
Board of Directors(Roles and Responsibilities)
The Board of Directors of T&D Holdings shall make decisions on important business matters and oversee
the execution of business in accordance with laws and ordinances, the Articles of Incorporation, and theCompany’s relevant rules. In addition, as a company with an Audit and Supervisory Committee, some
important business execution decisions are delegated from the Board of Directors to the directors by
resolution of the Board of Directors pursuant to the provisions of the Articles of Incorporation. By doing
so, the Company aims to separate management and oversight from business execution in order tofurther strengthen the management function (deciding on management policies and overall strategy)
and oversight function of the Board of Directors and promote greater agility and efficiency in businessexecution. The Board of Directors met 16 times in fiscal year 2022.
(Composition)
The number of directors (excluding directors serving as Audit and Supervisory Committee members)
shall be no more than 9, and the number of directors serving as Audit and Supervisory Committee
members shall be no more than 5, as stipulated by the Articles of Incorporation. The Board of Directors
shall be made up of individuals representing a balance of knowledge, experience, and skills. They shallhave diverse backgrounds as befitting the expansive range of business domains in the life insurance
business, which is the core business of the T&D Insurance Group. In addition, T&D Holdings shall appoint two or more directors (excluding directors serving as Audit and Supervisory Committee members)
who concurrently serve at T&D Holdings and its directly owned subsidiaries. This shall be done from thestandpoint of facilitating adequate communication and prompt decision-making within the Group, alongwith bolstering Group-wide governance.
Furthermore, the Company shall appoint five outside directors with extensive experience and knowledge in their capacity as outside corporate managers, legal experts, accounting professionals, and soforth. The opinions of outside directors are properly reflected in the Group’s management policies anddevelopment of internal controls and other systems, as well as in the oversight of business execution.

Chairperson of theBoard of Directors

President

Directors

12

Men

11

Women

1

Outsidedirectors

5 (including one woman)

Activities ofoutside directors(Fiscal 2022)

For its outside directors, the Company appoints attorneys who are familiar withcorporate legal affairs, corporate managers with experience, such as partners
in foreign-owned consulting firms, and individuals with experience in corporate management, such as through service as a certified public accountant or
representative of a financial holding company. These directors express theiropinions as necessary at the Board of Directors meetings, while drawing on
their expertise and wealth of knowledge and experience. Additionally, as thechairperson or members of the Nomination and Compensation Committee,
which is an advisory body to the Board of Directors, they deliberate on mattersthat include the selection, appointment, dismissal (including successor planning), and compensation of executives of T&D Holdings and its directly owned
subsidiaries and then report their opinions to the Board of Directors. Activities
also include regular exchanges of views with the representative directors, theaccounting auditors, the heads of the departments under their supervision, andthe representative director and president of major subsidiaries.

(Effectiveness Evaluation)
The Company conducts an overall evaluation of the Board of Directors once a year based on the
self-evaluations of directors. In order to secure the Board’s effectiveness (including the voluntary
Nomination and Compensation Committee), the Company evaluates if the Board is functioning properly
to achieve results and how the Board is contributing to the improvement of corporate value in themedium- to long-term.

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

T&D Insurance Group Sustainability Report 2023

Third-party Opinion

Index

94
1. Corporate Governance

Summary of Evaluation of Effectiveness of the Board of Directors as a Whole in Fiscal 2022
Scope

For fiscal 2022, we conducted a survey (self-evaluations, etc.) and interviews
among the directors to analyze and evaluate the effectiveness of the entire Boardof Directors, including the voluntary Nomination and Compensation Committee.

Evaluation Method

In the survey, we verified the effectiveness of the Board of Directors throughmultiple-choice answers and written opinions on evaluation items related tothe composition, operation, discussion, and oversight functions of the Board of
Directors. The interviews confirmed the basis for the judgments of the evaluations given in the questionnaire and the issues of the Board of Directors.

Overview of Evaluation
Results

As a result of the analysis and evaluation, the following matters and other matterswere confirmed, and the Company has determined that the Board of Directors
has generally fulfilled the expected roles and is functioning effectively.
•The number of directors and the ratio of outside directors on the Board of
Directors are generally appropriate.
•F rom the perspective of Group management, there has been further progress indiscussions on business portfolios and capital costs.
• There has been progress in terms of the governance and oversight ofsubsidiaries.
• The quality of discussions of the Board of Directors has improved, including
more time being devoted to important agenda items.
•P rogress is being made on sharing the details of dialogue with investors internally and responding to issues.

Status of Responses
to Previous Issues

We recognize that steady improvements have been made by addressing theissues identified in the fiscal 2021 evaluation, such as enriching and deepening
discussions on Group management strategies, further promoting integrated
Group management, and improving the structure and creation of materials forbetter discussions by the Board of Directors.

Newly RecognizedIssuesIn addition, in terms of challenges facing the Board of Directors, we have identified the need for a more diverse Board of Directors in line with the management
strategy, a focus on ROE management with consideration for capital costs andcapital profitability, and stronger efforts toward advancing Group personnel matters that contribute to human capital improvement.

Initiatives in Response
to Current Issues

We will continue to work toward further enhancing the effectiveness of the Boardof Directors by addressing the issues identified in this effectiveness evaluation.

Audit and Supervisory Committee(Roles and Responsibilities)
The Audit and Supervisory Committee, as an independent body entrusted by shareholders, has roles
and responsibilities related to auditing and overseeing the performance of the duties of directors inaccordance with laws and ordinances, the Articles of Incorporation, and the Company’s relevant rules.
In accordance with its audit plans, the Audit and Supervisory Committee exchanges opinions with theaccounting auditors and Internal Auditing Department, inspects and examines important documents,
and conducts audits aimed at verifying the Company’s internal management system. In addition, theAudit and Supervisory Committee members attend important meetings of T&D Holdings, including themeetings of the Board of Directors, and audit the directors’ performance of their duties. In fiscal 2022,
the Audit and Supervisory Committee met 18 times.

Audit & Supervisory
Committee members

5

Men

4

Women

1

Outside Audit &Supervisory
Committee members

3 (including one woman)

Activities of Outside
Audit and Supervisory
Committee members(Fiscal 2022)

Outside directors serving as Audit and Supervisory Committee members makenecessary statements as appropriate at meetings of the Board of Directors andthe Audit and Supervisory Committee based on their wealth of experience andinsight as individuals with experience in corporate management, accounting
experts, and legal experts. In addition, through activities that include regularexchanges of views with the representative directors, the accounting auditors,
the heads of the departments under their supervision, and the representative
director and president of major subsidiaries, such outside directors strive to gain
an understanding of the Company’s business execution situation.

Selection of Directors(Process)
Candidates for directors are reviewed by the Nomination and Compensation Committee and appointed
by the Board of Directors. Candidates for directors who are Audit and Supervisory Committee members
are subject to approval by the Audit and Supervisory Committee.
(Criteria)
Directors are primarily required to have sufficient knowledge and experience to oversee the management of T&D Holdings in a proper, fair, and efficient manner, and to have earned the trust of society. In
addition to the requirements set forth above, outside directors must satisfy the independence criteria
established by the Company and the Tokyo Stock Exchange and must be recognized as being free fromthe risk of any conflicts with the common interests of shareholders.
Executive Management Board and Group Strategy Board
T&D Holdings has established an Executive Management Board and Group Strategy Board. The Executive
Management Board is composed of the chairman, president, executive vice president, and executive
officers, and it primarily discusses and resolves important matters related to the management of theCompany and Group. Meanwhile, the Group Strategy Board consists of the president, executive officers
in charge of the business planning units and financial strategy units, and the presidents of Taiyo Life andDaido Life, who are also members of the Company’s Board of Directors. The Group Strategy Board discusses matters related to the Group growth strategy and other important matters associated with them.
Executive Officer System
T&D Holdings has introduced an executive officer system for the purpose of bolstering its businessexecution capabilities. By sharply delineating responsibilities for oversight and execution, the Company
shall strengthen the governance function of the Board of Directors.

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

Index

95

T&D Insurance Group Sustainability Report 2023

1. Corporate Governance

1-4

Participation in Management by Outside Experts

2-17

T&D Holdings and the Group’s three life insurance companies work toward ensuring adequate andtransparent business management through the participation of outside experts in some internal committees dealing with key management issues. In addition, the results of discussions by each committee, etc. are shared with the Board of Directors of each company and then used to gain an understanding of sustainability-related impacts, risks, and opportunities while also improving the collective
knowledge, skills, and experience of our highest governance entity related to sustainable development.
Sustainability Advisory Committee (T&D Holdings)<Outside members>Experts with knowledge of ESG in general<Main topics of deliberation>	Incorporating the perspectives of external experts and the latest trends toimprove the Group’s sustainability initiatives
Service Quality Improvement Committee (Taiyo Life)<Outside members>	Physicians, attorneys, person with relevant knowledge and experience,and experts in consumer issues<Main topics of deliberation>	Status of building framework for management of payments of insurance
and other benefits, adequacy of examinations of payments of insurance
and other benefits, ease of understanding insurance claim procedures,
adequacy of insurance and other benefit-payment processes, status ofcustomer feedback, and initiatives to improve operations utilizing customer feedback
Customer Feedback Council (Daido Life)<Outside members>	Physicians, attorneys, persons with relevant knowledge and experience,and experts in consumer issues<Main topics of deliberation>	Status of operations and adequacy and effectiveness of initiatives to improve customer service
Stewardship Committee (Daido Life)<Outside members>	Attorneys and experts in stewardship activities<Main topics of deliberation>	Enhancement of governance of voting process (e.g. prevention of conflicts of interest) and further enhancement of stewardship activities as awhole
Advisory Council for Insurance Payment (Daido Life)<Outside members>	Attorneys and experts in consumer issues<Main topics of deliberation>	Adequacy of insurance and other benefit-payment processes, adequacyof examinations of payments, status of customer feedback, and initiatives
improve operations
Service Supervision Committee (T&D Financial Life)<Outside members>	Attorneys, experts in consumer issues, and members of the media<Main topics of deliberation>	Initiatives aimed at ensuring an adequate framework relating to payment
of insurance and other benefits, protecting legitimate interests of policyholders and others, and improving customer satisfaction

Payment Assessment Committee (T&D Financial Life)<Outside members>	Attorneys<Main topics of deliberation>	Fair and accurate payment assessment for decision-making on payment
of insurance claims, etc.

1-5Nomination and Compensation Committee

2-10

2-18

2-20

In January 2015, T&D Holdings established a Nomination and Compensation Committee as a voluntary
advisory body to the Board of Directors. The committee scrutinizes the fairness and appropriatenessof director appointments and dismissals (including succession plans) and executive compensation toensure the transparency of management and improve accountability, thereby reinforcing the corporate
governance framework of the Company and the Group as a whole. The Nomination and Compensation
Committee scrutinizes the fairness and appropriateness of appointments and dismissals of ourCompany’s and direct subsidiaries’ directors, including succession planning, as well as their executive
compensation. The committee then reports its opinions to the Board of Directors. The Nomination andCompensation Committee is comprised of the Director and President of our Company and the outside
directors. To ensure independence and neutrality, a majority of its members are chosen from among
the outside directors. Moreover, the chairperson of the committee is selected from among the outside
directors by mutual vote of the committee members.

Main topics discussed by the Nomination and Compensation Committee (Fiscal 2022)

Nominations,etc.

• Succession plan(presidents and outside officers of the Company and its directly owned
subsidiaries)• Composition of our Board of Directors• Selection of directors not serving as Audit and Supervisory Committee members, directors serving as Audit and Supervisory Committee members, and candidates for directors
who are substitute Audit and Supervisory Committee members• Selection of outside directors to serve on the Nomination and Compensation Committee• Selection of the chairperson of the Nomination and Compensation Committee• Selection, appointment, and other matters of director candidates and Audit & Supervisory
Board member candidates at directly owned subsidiaries• Appointment of executive officers for both the company and direct subsidiaries

Compensation,etc.

• Evaluation results for directors not serving as Audit and Supervisory Committee members and executive officers for fiscal 2021
• Results of fiscal 2021 evaluations of representative directors of directly owned
subsidiaries• Executive treatment of the Company and its directly owned subsidiaries

Committee Member Attendance Record (Fiscal 2022)
Name

Position

Holding and Attendance
Situation

Naoki Ohgo (Chair)Outside Director

100% (14/14 meetings)

Kensaku Watanabe

Outside Director

92.9% (13/14 meetings)

Atsuko Taishido

Outside Director

100% (7/7 meetings)

Hirohisa Uehara

Representative Director
and President

100% (14/14 meetings)

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

Index

96

T&D Insurance Group Sustainability Report 2023

1. Corporate Governance

1-6

to the Representative Director and President, the Audit and Supervisory Committee, and the Board ofInternal Audit System

Group Internal Auditing
Internal auditing is the task of evaluating the appropriateness and effectiveness of the internal management of the operating units and providing advice and recommendations with the aim of contributing to
the effective achievement of the organization’s management targets.
In the Group Basic Policy on Internal Audits formulated by the Board of Directors, T&D Holdings has
established a basic policy to ensure the effectiveness of the Group’s internal audit system. In accordancewith this policy, T&D Holdings and its directly owned subsidiaries have established internal audit units thatare independent from other operating units. As of the end of fiscal 2022, the number of employees in the internal audit units was 5 at T&D Holdings and 66 in total for the Group, including directly owned subsidiaries.
Functions and Roles
The Internal Auditing Department of T&D Holdings, in addition to conducting internal audits of eachdivision of the Company, grasps the status of the internal management system of the Group as a wholethrough monitoring of the internal audits implemented by its directly owned subsidiaries and othermeans. The Internal Auditing Department also provides guidance and advice as necessary to strengthen
the internal audit system of the Group as a whole.
In addition, the Company’s Internal Auditing Department verifies and evaluates the appropriatenessand effectiveness of the Group’s internal management system through internal audits, monitoring, andother means based on the internal audit plans resolved in the Board of Directors and reports the results

Outline of the Group’s Internal Audit System

Board of Directors: Internal Audit

Audit and Supervisory Committee

President
Operating units

Daido Life

1-7

Internal Control

Internal Control System
The T&D Insurance Group believes that it is important to work for the sustainable growth and improvement of the medium- to long-term corporate value of the Group predicated on protecting insurance
policyholders and the like by securing the soundness and compliance structure of the Group as a wholebased on the Companies Act, the Group’s Corporate Philosophy, and other factors.
With this in mind, T&D Holdings and its directly owned subsidiaries have established internal control
systems as required under Japan’s Companies Act. Moreover, the boards of directors of each company
continuously work to improve and strengthen their internal control systems, including by periodicallymonitoring the preparedness and operational status of these systems to confirm their adequacy andmaking revisions as necessary.
Response to the Internal Control Reporting System
With regard to the internal control reporting system pursuant to the Financial Instruments and ExchangeAct, the Group builds internal controls necessary for ensuring the trustworthiness of securities reports
and other financial reports. Managers personally evaluate and report on its effectiveness. Following thisprocess, a certified public accountant who is an outside Accounting auditor and a system auditor audit
the suitability of this assessment.

Internal Auditing Department
Audit & monitoring/
Guidance & advice

Taiyo Life

Directors. It periodically reports the status of the Group’s internal audits and other matters to the Audit
and Supervisory Committee and makes reports regarding the matters about which it has received directions from the Audit and Supervisory Committee and other matters. In addition, formulation of the internal
audit plans and the personnel reassignment, evaluation, and other matters of the General Manager of theInternal Auditing Department are deemed to be matters which require the prior consent of the Audit andSupervisory Committee.

T&D
Financial Life

T&D United
CapitalT&D Asset Pet & FamilyManagement Insurance

Internal audit units of each company

Operating units of each company

1-8

All Right

2-18

2-19

2-20

Executive Compensation, etc.
1. Policies Concerning the Determination of Executive Compensation
In its Basic Policy on Corporate Governance, T&D Holdings has established the policies regarding executive compensation enumerated below. The Policy may be amended or repealed by the Board of Directors
of T&D Holdings at its discretion.
For more information, please see our website.
WEB

Other Group companies

Executive Compensation

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

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

Index

97

T&D Insurance Group Sustainability Report 2023

1. Corporate Governance2. Composition of Executive Compensation, etc.
T&D Holdings has designed its compensation system and compensation amounts to function as asound incentive for the Group to enhance its performance and corporate value over the medium- to longterm. The total compensation of directors (excluding outside directors and other part-time directors anddirectors serving as Audit and Supervisory Committee members) shall consist of monthly compensation
and bonuses that vary according to their roles and performance, and trust-type stock compensation
which delivers Company shares and utilizes a trust structure (non-residents of Japan are ineligible). The
Company regards corporate performance-linked compensation as not suitable for part-time directors,
including outside directors, who are independent from the execution of business, and directors serving
as Audit and Supervisory Committee members. Therefore, a fixed amount of compensation is paid.
Compensation
type

Payment
periodMonthly
compensation

Monthly

Bonus

Trust-type stockcompensation

YearlyAt thetime ofretirement

How the amount of executive compensation, etc. is calculated for each individual officer

Payment
methodThe Board of Directors has adopted a resolution that monthly
compensation and bonuses shall be set based on the amounts
calculated from the compensation table determined by the
Board of Directors and each officer’s individual evaluation within the limit established by the resolution of the Shareholders’Meeting and then finalized by our Company President after
deliberations among representative directors.*1
Monetary
Individual evaluations for each officer shall be conducted
payment
based on the evaluation of corporate performance and theevaluation of the division the officer is in charge of in accordance with the evaluation criteria established by the Boardof Directors. The Nomination and Compensation Committee
will then deliberate on the results and report its opinion to
the Board of Directors. Based on these results, the Board of
Directors will determine the individual evaluation results.
Trust-type stock compensation shall be granted to directors(excluding outside directors and other part-time directors,
directors serving as Audit and Supervisory Committee
members, and non-residents of Japan) in accordance withthe compensation table determined by the Board of Directors
based on points allotted in accordance with position.
At the time of retirement from the Company, officers
receive shares and monetary payments in accordance withthe accumulated points.
The system also has malus and clawback provisions.*2

70%
stock
30%
monetary
payment*1 To further improve the fairness, appropriateness, and management transparency when deciding how the amount of executive compensation, etc. is calculated for each individual officer, the Company revised the above policy on May 31, 2023. As a result, ever since June29, 2023, decisions related to paid monthly compensation and bonuses as well as individual evaluations have been handled as follows:
the Nomination and Compensation Committee deliberates on the matter and reports its opinion to the Board of Directors, and then the
Board of Directors passes a resolution.
*2 Malus and clawback provisions
The trust-type stock compensation system stipulates that if a grantee engages in an act of misconduct (e.g., significant neglect of
duties, violation of laws and regulations, leakage of confidential information, etc.) as determined by the Company prior to the date ofdetermination of beneficiary rights, the grantee shall not receive the Company’s shares or the proceeds of the sale of such shares. If the
grantee engages in misconduct after the date of determination of beneficiary rights, moreover, the system stipulates that the Company
can seek a reimbursement amount, obtained by multiplying the calculated number of basic shares by the calculated stock price.

3. How to calculate the evaluation of corporate performance and the evaluation of the division
the officer is in charge of
The weightings of the evaluation of corporate performance and the evaluation of the division the officer isin charge of are set according to the responsibilities of each officer in accordance with the criteria established by the Board of Directors and used to compute a weighted average. In the case of representative
directors, the evaluation of corporate performance shall be weighted 100%.

Calculation methods
Corporate performance
evaluation(see 4. for the key
performance indicators)• In order to clearly evaluate the degree of achievement toward corporate
performance, multiple key performance indicators determined based on theGroup’s medium- to long-term management strategies shall be used, alongwith an evaluation of corporate performance indicator, namely total shareholder return.
•K ey performance indicators are calculated by multiplying coefficients according to their achievement rates in each item.

Evaluation of division in
charge• Points are calculated for the division the officer is in charge of based on theexecution plan achievement status of each division, among other factors.

4. Key Performance Indicators for Corporate Performance Evaluations(Performance-Linked Indicators) <FY2022>
Key performance indicators for evaluating the corporate performance are shown below.
Regarding the financial performance indicators, the single fiscal year target achievement ratios andprogress toward achievement of the fiscal 2025 targets are evaluated based on the Group Long-Term
Vision formulated in fiscal 2021.
Single fiscal year evaluation topics
Evaluate the achievement ratios for the single fiscal year targets toward achievement of the fiscal
2025 targets.
Fiscal 2025 targets
Group adjusted profit¥130.0 billion

Value of new business¥200.0 billion
Single fiscal year
targets

ActualAchievement ratio

Group adjusted profit¥105.6 billion¥90.2 billion

85.4%

Value of new business¥168.4 billion¥167.0 billion

99.2%

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

Index

98

T&D Insurance Group Sustainability Report 2023

1. Corporate GovernanceMedium- to long-term evaluation topics
Evaluate progress toward the achievement of the fiscal 2025 targets as an evaluation criterion.
Fiscal 2025 targets
Adjusted ROE

8.0%

ROEV

7.5%

• The actual adjusted ROE is 7.6%.
• The actual ROEV is 2.9%.
Market evaluation topics
Evaluation criteria and other criteria
Total shareholder
return (TSR)• Total shareholder return (TSR) is calculated based on actual results, thedegree of deviation from a benchmark of listed life insurance companies,
and other factors.

• The actual total shareholder return is 112.0% over five years.
(Note) The total shareholder return is calculated as follows.

• Five years: (Share price at the end of FY2022 + Cumulative total dividends per share from FY2018
to FY2022) / Share price at the end of FY2017
ESG evaluation topics
In addition to the above financial performance indicators, the following non-financial performanceindicators are evaluated.
Evaluation criteria and other criteria

6. Payment Ratio of Compensation by TypeWith regard to the composition of compensation for the Company’s officers, the ratio between
performance-linked compensation (monthly compensation and bonuses) and trust-type stock compensation has been set to ensure that it functions as a sound incentive for improving medium- to longterm performance and increasing corporate value. Monthly compensation, which is performance-linked
compensation, shall vary within a range between approximately 57% and 74% of the total compensation, commensurate with the duties of each position, while bonuses shall vary within a range between
approximately 14% and 21%, and trust-type stock compensation shall vary within a range between
approximately 10% and 22%.
Monthly compensation shall be a variable amount within the range between approximately 95% and105% of the standard evaluation, depending on the individual evaluations of each officer. Bonuses shallbe a variable amount within the range between approximately 60% and 140% of the standard evaluation, depending on the individual evaluations of each officer.

Compensation composition ratios
Performance-linked compensation
Monthly compensation approximately
57% and 74%

Customer satisfaction
level
Employee satisfactionlevel

5. Reflecting Corporate Performance Evaluations in Executive Compensation for Direct
Subsidiaries
We conduct corporate performance evaluations with the primary aim of ascertaining whether theCompany and its directly owned subsidiaries are managing their operations in line with the Group’s
strategic goals. The objective is to contribute to the stable and sustainable improvement of the corporate
value of the Group as a whole. The method we use for calculating individual executive compensation
amounts for the directors of our directly owned subsidiaries is consistent with these corporate performance evaluations for each such subsidiary, as determined by our Board of Directors.

• Evaluate the status of achievement with the level in the previous fiscal
year as the evaluation criterion.

Reduction of CO2
emissions• An actual customer satisfaction level and employee satisfaction level higher than the levels in theprevious fiscal year were achieved.
• A reduction in the actual CO2 emissions of 6.5% from the level in the previous fiscal year wasachieved.

Bonus approximately
14% and 21%

Stock compensation
Trust-type stock compensation
approximately
10% and 22%

7. Reasons for the Board of Directors’ determination that the details of individual compensationof directors for the current fiscal year are in line with the Policy
The Board of Directors confirms that the individual compensation details were calculated based on thecompensation table determined by the Board of Directors and the individual evaluation of each director
as deliberated by the Nomination and Compensation Committee, and judges that this calculation is inline with the Policy.

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

T&D Insurance Group Sustainability Report 2023

Management Control

Third-party Opinion

Index

99
1. Corporate Governance

8. Disclosure of Total Amount of Compensation by Officer Category and Type of Compensation(million yen)Monthly
compensation

Reserve for bonus

Category

Trust-type stockcompensation(the Board Incentive
Plan Trust)

Total amount ofcompensation

Numberof persons
paid

AmountNumberof persons
paid

AmountNumberof persons
paid

AmountNumberof persons
paid

AmountDirectors not serving as Audit
and Supervisory Committee
members(excluding outside directors)

6

123

3

40

3

42

6

207

Directors serving as Audit
and Supervisory Committee
members(excluding outside directors)

4

79

0

—

0

—

4

79

Outside directors not serving
as Audit and Supervisory
Committee members

3

22

0

—

0

—

3

22

Outside directors serving
as Audit and Supervisory
Committee members

4

37

0

—

0

—

4

37

Total

17

263

3

40

3

42

17

346

• The monthly compensation and bonus reserves of directors not serving as Audit and Supervisory
Committee members (excluding outside directors and other part-time directors) constitute performance-linked compensation, and the trust-type stock compensation constitutes non-monetary compensation. The total amount of performance-linked compensation, etc. for directors not serving as Audit
and Supervisory Committee members (excluding outside directors and other part-time directors) (fourpeople) is ¥145 million, and the total amount of non-monetary compensation is ¥42 million.
• Regarding the number of individuals who have received compensation and the total amounts, thesefigures include one director not serving as an Audit and Supervisory Committee member, who retired
at the conclusion of the 18th Ordinary General Meeting of Shareholders on June 28, 2022. They also
include three directors serving as Audit and Supervisory Committee members who resigned on June
28, 2022, and one director not serving as an Audit and Supervisory Committee member who resigned
on September 15, 2022. As of the end of fiscal 2022, we had seven directors not serving as Audit andSupervisory Committee members and five who were.
• The amount of trust-type stock compensation represents the cost accrued for the points granted
during fiscal 2022 based on the relevant system.
• Since there is no person with total consolidated compensation of ¥100 million or more, individual compensation amounts are not shown.

9. Resolutions of the General Meeting of Shareholders
Maximum amount of compensation for directors
In a resolution at the 16th Ordinary General Meeting of Shareholders held on June 25, 2020, the maximum amount of compensation for directors not serving as Audit and Supervisory Committee members
was set to ¥450 million per year, of which ¥40 million per year was for outside directors (at the conclusionof the Shareholders’ Meeting, there were 9 directors not serving as Audit and Supervisory Committee
members (including 2 outside directors)). This amount includes bonuses, and the total amount of bonuses per year has been determined by the Board of Directors. Apart from the compensation limit for directors not serving as Audit and Supervisory Committee members, another resolution at the 16th Ordinary
General Meeting of Shareholders held on June 25, 2020 set the maximum aggregate amount of trust
fund to be contributed for the trust-type stock compensation to ¥500 million for three consecutive fiscal
years. The total number of points to be granted to directors each fiscal year was limited to 215,000 points(one point is equivalent to one share in the Company). (At the conclusion of the Shareholders’ Meeting,there were 4 directors not serving as Audit and Supervisory Committee members eligible for trust-type
stock compensation.) At the 16th Ordinary General Meeting of Shareholders held on June 25, 2020, themaximum amount of compensation for directors serving as Audit and Supervisory Committee members
was set to ¥150 million per year (at the conclusion of the Shareholders’ Meeting, there were 5 directors
serving as Audit and Supervisory Committee members (including 3 outside directors)). Compensation is
set in consultation between the directors serving as Audit and Supervisory Committee members within
this limit.

1-9

Succession Plan

Succession Plan Formulation and Implementation
With an eye on the sustained growth and medium- to long-term value enhancement of our Group as wellas ensuring the stable continuation of business, our Board of Directors oversees the formulation andexecution of succession plans for the presidents of the Company and the three life insurance companies
that constitute our Group’s core business.
Our Nomination and Compensation Committee, for which the majority of the members are outside directors, plays an active role in the creation and execution of these plans, ensuring objectivity, timeliness,and transparency in the succession nomination process.
Development of Successor Candidates and Future Group Management Talent
In a concerted effort to systematically nurture successor candidates for the presidencies of the Company
and the three life insurance companies as well as future Group management talent for the Group, weundertake various initiatives that include rotation of executives and employees within the Group, dispatching individuals to external executive training programs, and conducting interviews with our outside
directors.

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

100

2. Disclosure of Information to Shareholders and Investors

Disclosure of Information to Shareholders and. Investors2
2-1

Shareholder Return Policy

T&D Holdings’ policy is to provide stable returns to shareholders as part of enhancing shareholder value,
while retaining sufficient internal reserves to ensure the management soundness of T&D Holdings and
its Group companies.

2-2

Information Disclosure

T&D Holdings works proactively to disclose information to all stakeholders so that they can understandthe current situation and future business development of the T&D Insurance Group.
Integrated Report
The Integrated Report is an annual report issued to investors, shareholders, and other stakeholders. It
provides a summary of financial, corporate, ESG, and other key information to enable our shareholders
and investors to understand the T&D Insurance Group.
Disclosure Documents
The disclosure documents of each company that have been produced in accordance with the Insurance
Business Act of Japan have been posted on our website.
Shareholder Newsletters
The newsletters that we have sent out to our shareholders reporting our business performance andcircumstances along with various topics have been posted on our website.

2-3

IR Activities

2-29

T&D Holdings proactively engages in IR activities based on the principles of timeliness, fairness, andaccuracy. It also works to make continuous and comprehensible information disclosure on the T&D
Insurance Group’s management environment, business strategies and financial situations. More specifically, we hold business results briefings, teleconferences, individual meetings for institutional investors,presentations for individual investors and actively engage in exchanging opinions with securities analysts. Valuable feedback from investors received through IR activities is regularly communicated to the
management team.
Main activities
Presentations for Individual Investors
We held briefing sessions for individual investors where the director in charge of IR, other officers andmanagers acted as presenters.
Presentations for Institutional Investors and Securities Analysts
We held conference calls chaired by the director in charge of IR for each quarterly earnings announcement and IR meetings by the president for each interim and yearly earnings report. The president and the
director in charge of IR also held individual meetings with institutional investors and securities analysts.
Presentations for Overseas Investors
For overseas institutional investors, mainly in Europe, United States, and Asia, the president and the
director in charge of IR conducted individual meetings and also participated in conferences for overseas
institutional investors held by securities companies.
IR Information Posted on Our Website
On our website, we have posted IR information for individual investors, financial information, timely
disclosure materials other than financial information, IR presentation materials, and video and audio
materials of IR presentations and teleconferences.

Annual Securities Report
Annual securities reports and suchlike made and submitted based on the provisions of the Financial
Instruments and Exchange Act have been posted on our website.

Group-internal IR activities (Group IR)
We promote Group-internal IR activities to share information on our Group’s direction and enhance market discipline. We mainly hold small meetings involving the management of the Company and Groupmanagers as well as briefing sessions for employees that utilize videos and e-learning.

For more details about these reports, please see “IR Library” under “Investor Relations” on our website.

For more details, please see “For Individual Investors,” “IR Library,” and “IR Events” under “Investor Relations” on our website.

WEB

https://www.td-holdings.co.jp/en/ir/document/

WEB

https://www.td-holdings.co.jp/ir/individual/ (Japanese only)
https://www.td-holdings.co.jp/en/ir/document/
https://www.td-holdings.co.jp/en/ir/event/Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

Index

101

T&D Insurance Group Sustainability Report 2023

2. Disclosure of Information to Shareholders and Investors

2-4

Principal Shareholders (as of March 31, 2023)

Shareholders’ Meeting

T&D Holdings views the Shareholders’ Meetings as important opportunities for communicating with its
shareholders and endeavors to make these events sufficiently accessible and open to all shareholders.
Prior to each Shareholders’ Meeting, we strive to send out related materials as soon as possible, including sending out the convocation notice as early as possible (in early June), posting it on our website
before sending it out (in late May), and preparing and disclosing an English translation on our website
so that shareholders can sufficiently examine the items for resolution in advance. Furthermore, in accordance with the revised Companies Act (enforced on September 1, 2022), we comply with the electronic
provision system for Shareholders’ Meeting materials since fiscal 2023. In addition, we have introduced
an online electronic voting system to improve shareholder convenience.
At the Shareholders’ Meetings, a large screen is used to report on agenda items, displaying charts
and images. In the Q&A session that follows, the directors respond to questions and opinions fromthe floor respectfully and accurately, with the intention of enhancing shareholders’ understanding ofour business. Furthermore, in fiscal 2023 as well, we broadcast the Shareholders’ Meeting live on theInternet (which we started doing in fiscal 2021) so that distant shareholders could conveniently observe
the proceedings from their homes and other places.

2-5

Shareholders

2-1

Proportion of Shares Held (as of March 31, 2023)

Number of shares
held(1,000 shares)

Percentage of
total shares
outstanding(%)

The Master Trust Bank of Japan Ltd. (Trust Account)

84,605

15.43

Custody Bank of Japan, Ltd. (Trust Account)

35,201

6.42

JP MORGAN CHASE BANK 385632

21,1383.85

SSBTC CLIENT OMNIBUS ACCOUNT

12,643

2.31

STATE STREET BANK WEST CLIENT – TREATY 505234

9,787

1.78

JPMorgan Securities Japan Co., Ltd.

7,791

1.42

GOLDMAN, SACHS & CO. REG

7,222

1.32

JP MORGAN CHASE BANK 385781

6,757

1.23

AIG General Insurance Company, Ltd.

6,000

1.09

STATE STREET BANK AND TRUST COMPANY 505103

5,829

1.06

196,973

35.91

Name of shareholders

Total

Note: The Company holds 40,543 thousand shares of treasury stock, but this is excluded from the list of principal shareholders above. The
percentage of total shares outstanding is also calculated minus treasury shares.

Shareholder category

Financial
institutions

Financial
product
dealers

Number of shares held
(1,000 shares)

155,879

28,07897,364229,432

78,243

589,000

Proportion of shares
held (%)

26.47

4.77

16.53

38.95

13.28

100.00

Other
Foreign
Individuals
corporations corporations and others

Total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

102

Management Control

1. ERM
1-1

Promotion of ERM Approach

ERM stands for Enterprise Risk Management and refers to a strategic method of corporate management that seeks to maximize corporate value and profits while ensuring the soundness of businessthrough integrated management of capital, profit and risk.
As opposed to conventional approaches designed primarily to avoid risks (losses), ERM takes a strategic stance with respect to risks, viewing them as a factor to be actively taken on in order to increase
return (profit) and, as such, not something that should necessarily be reduced or eliminated. Using thisnew method, businesses can quantify capital, profit and risk on a uniform evaluation standard, helping
manage these elements in an integral fashion and incorporate them into management decision-making,thereby allowing pursuit of growth in profitability while maintaining sound management of business
operations.

PDCA Cycle

PLAN

DO

Formulating
management plan

The T&D Insurance Group has established the Group ERM Committee to implement ERM as aGroup-wide initiative. With the committee providing leadership in promoting ERM throughout the Group,
we will enhance the Group’s corporate value in a stable and continuous manner while maintaining asound business foundation.
More specifically, we have built a system based on a PDCA cycle to promote ERM under which theGroup’s management plan is formulated (Plan) so as to meet the risk appetite set out in terms of soundness and profitability based on the assessment of capital, profit and risk on an economic value basis; arange of initiatives developed under the plan are implemented (Do); the progress of implementation of
the plan is monitored (Check); and the plan is reviewed and revised as necessary (Act).
Integrated Risk Management Activities
In order to promote ERM, it is critical to have a proper understanding of types and magnitude of risks.
The T&D Insurance Group promotes the integrated risk management approach to achieve the management objectives by quantifying the risks affecting the Group by type of risks and assessing the impacts
when making losses, and also by controlling all the risks associated with its operations, including unquantifiable risks.

2. Risk Management

Implementing
planned initiatives

2-1Soundness(Capital efficiency)

Profitability(Capital adequacy)

CapitalIntegrated
management
Risk

ACTION
Reviewing
management plan

3-3

Profits

CHECK

Monitoring progress ofplanned initiatives

Basic Concept for Risk Management

At the T&D Insurance Group, T&D Holdings has formulated a Group Risk Management Policy setting
forth the Group’s basic approach to risk management and, based on this Policy, the directly owned
subsidiaries and other Group members have developed their risk management system that covers theiraffiliates as well.

T&D Holdings has established a Group Risk Management Committee and manages risks
within the Group. The Committee receives reports, regularly and as required, on risks assessedusing uniform risk management indicators, from the directly owned subsidiaries and other Group
members, in order to identify and manage the various types of risks faced by Group companies.
Based on the report received, T&D Holdings reports on these risks to the Board of Directors andprovides guidance and advice to the Group companies as necessary, thereby ensuring that properrisk control is implemented at each company and strengthening the risk management system forthe entire Group.

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

103
2. Risk Management

2-2

Risk Management System

2-4

Given the social publicness and other characteristics of the life insurance business, the T&D InsuranceGroup considers the accurate understanding and management of risks to be a high-priority management
issue for ensuring management soundness and suitability. At the same time, general management ishandled by T&D Holdings—the Group holding company—while each Group company is responsible forsuitably managing risk in line with its business characteristics and risk profile.

Outline of the Group’s Risk Management System

Audit and Supervisory Committee

Executive Management Board

Group Risk Management Committee

Daido
Life

T&D
Financial Life

Guidance& advice
T&D United
CapitalInternal
audit

T&D Asset Pet & FamilyManagement Insurance

AllRight

Other Group companies

2-3

Risk Review (ESR)The T&D Insurance Group has specified a statutory solvency margin ratio, as well as an economic solvency ratio (ESR), which is a risk-management index based on economic value. These are concrete
quantitative indicators of risk appetite and tolerance. ESR is calculated as net assets (surplus) basedon economic value, divided by economic capital (EC), which is the risk level based on economic value,calculated using an internal model including insurance underwriting risk, asset management risk, andoperational risk. We manage risk on the basis of economic value through such means as controlling EC
to stay within a certain range of the surplus. ESR is managed on a monthly basis. The statutory solvency
margin ratio is managed on a quarterly basis. As with other risk reviews, these are reported to the Group
Risk Management Committee and Board of Directors.

Risk Classification and Responses

The T&D Insurance Group classifies various management risks such as financial market disruptions,catastrophes, pandemics, climate change, and cyber attacks as indicated below. We have establishedrisk management policies for each risk category and strive to prevent the occurrence of risks or control
them within certain tolerances.
Insurance Underwriting Risk

Investment Risk

Liquidity Risk

Operational Risk*

Reputation Risk

Affiliate-related Risk

* Operational risks are classified into sub-categories, i.e. administrative risk, system risk, legal risk, labor and personnel risk, and hazard
risk, and are managed separately.
Please see our website for more information on our risk classifications and responses.
WEB

The T&D Insurance Group uses a risk profile* to comprehensively categorize risks surrounding theGroup, in order to respond to increasingly diverse and complex risks. We comprehensively identify risks
by category, ascertain and assess them, and use them to prioritize initiatives in light of comprehensive
factors including severity, impact, and the degree to which they are under control. The risks are reflected
in management planning as necessary. As a rule, we review our risk profiles twice a year in order to accurately recognize and ascertain emerging severe risks, as well as major changes to previously recognizedrisks. We report our findings to the Group Risk Management Committee and Board of Directors.

2-5

Risk Management Department

Taiyo
Life

205-1

* Risk profile is a general risk management tool to characterize risks from various factors such as nature and magnitude.
* The T&D Insurance Group’s risk profile includes responding to issues surrounding sustainability, including the environment (climatechange risk), society (human rights, labor practices and corruption prevention) and governance.

Board of Directors

Deliberation& reporting

Risk Awareness and Assessment (risk profile)https://www.td-holdings.co.jp/en/company/governance/risk.html

2-6

Optimization of the Risk Portfolio (Risk Measurement by Internal
Models and Complemental Efforts by Stress Test)

The T&D Insurance Group optimizes its risk portfolio by measuring quantifiable risks using internal models as well as by drawing up risk profiles, including qualitative aspects of risks and performing stresstests for risks. To complement the risk quantification model, stress tests are conducted with multiple
scenarios reflecting long-term macro- and micro-economic projections.

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

Index

104

T&D Insurance Group Sustainability Report 2023

2. Risk Management

2-7

Handing Emerging Risks

We recognize geopolitical risks—including COVID-19 and other pandemics as well as acts of terrorism—
and risks that result in significant changes in net income, net assets, etc. when international accounting
standards are applied as emerging risks. Emerging risks are risks that could have a major effect on corporate income and corporate value depending on environmental changes and other factors but are alsodifficult to quantitatively understand, so we organize a risk profile to account for them.
Of the emerging risks we face, we have conducted stress tests using forward-looking stress scenarios (scenarios under which pandemic mortality and attack rates increase as well as increased payments
and decreased stock prices and interest rates due to terrorist attacks using chemical weapons) to analyze
geopolitical risks that include COVID-19, other pandemics, and acts of terrorism, and we have verified
our Group’s ability to handle such risks while also confirming that there are no problems in terms of oursoundness. Regarding risks that result in significant changes in net income, net assets, etc. when international accounting standards are applied, we have done various trial calculations assuming the applicationof such standards to confirm the effects on our net income, net assets, and other financial figures.

2-8

Cyber Security Initiatives

3-3

Recognizing that it is an important management issue to properly manage information assets and protect information assets from increasingly sophisticated cyber attacks, and committed to complying withthe relevant laws and regulations while fulfilling our CSR (Corporate Social Responsibility) as a company that runs a life insurance business, the T&D Insurance Group has established a Group Information
Security Policy and Rules on the Group’s Cyber Security Management, which all executives and employees are obligated to follow.
T&D Information System—the Group’s information system development, maintenance, and operation subsidiary—acquired ISO 27001 certification, an international standard for information security management systems, for its host computer operation services in March of 2007 and for its server operation
services in March of 2011. The information service firm has continued to renew this certification for eachof the above services as part of its efforts to maintain a high level of information security.
The Group’s Cyber Security System
We are aware that cyber attacks and similar threats can cause system outages, compromise businessperformance, and expose critical information.
In particular, in order to increase the security of the services we provide our customers, we use
security tools to constantly monitor the threat of cyber attacks targeting financial institutions, whichhave become increasingly sophisticated in recent years, and we have established a Group-wide CSIRT(Computer Security Incident Response Team) tasked with cyber attack information gathering, analysis, and response, as well as individual CSIRTs at each company. In addition to conducting training at
each Group company, we regularly participate in cross-industry training and exercises, and, when we

discover issues, we incorporate them into the relevant procedures and manuals (Information Security
Management Rules and Information Security Handbook), thereby reinforcing our ability to put knowledge
into practice.
The Group has implemented multi-layered security measures (entrance, exit, and internal measures),and we regularly receive security assessments from third-party organizations and promptly implement
the necessary measures.
We bring in outside experts to educate group management on the latest trends in cyber security, andare working to raise awareness of cyber security risks and improve security literacy through continuous
training on information security and cyber security for executives and employees (group training, e-learning, etc.) as well as training on suspicious emails.
The Internal Auditing Department verifies whether these systems are functioning effectively andreports the results to the Board of Directors.
Protection of Personal Information
T&D Holdings and its three life insurance companies and other Group members
have formulated Personal Information Protection Declarations (privacy policies),
which they publicly disclose on their websites.
T&D Information System, a Group company that supports the information system of the T&D Insurance Group, properly handles various data, including personal information, and keeps it strictly confidential. In May 2005, T&D Information
System obtained Privacy Mark certification, which is given to the enterprises thattake adequate measures to protect personal information.
Please see our website for our Privacy Policy.
WEB

2-9

https://www.td-holdings.co.jp/en/information/privacy.html

Protection of Customer Privacy

2-25

3-3

418-1

The T&D Insurance Group considers as complaints any customer request that, at the time of its receipt, expressed dissatisfaction, and makes efforts to respond appropriately when such complaints arereceived.
Note that, in fiscal 2022, we received 145 complaints related to the handling of personal information.

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

Index

105

T&D Insurance Group Sustainability Report 2023

2. Risk Management

2-10 Crisis Management
The T&D Insurance Group has formulated the Rules on the Group’s Crisis Management, which address
basic matters related to the Group’s response to crisis situations. In case of major natural disasters orsimilar emergency events, the rules set forth basic policies for developing systems that enable continuity or early restart of insurance claims and benefit payment operations, recognizing that doing so is
our important social mission, and for placing top priority on securing the lives and safety of our staff andsupporting affected people and areas. The Group has implemented a number of measures to improvethe effectiveness of crisis management. These include introducing a system for confirming the safetyof our executives and employees individually and Group-wide emergency drills as a preparation for a
possible largescale disaster.
In response to the COVID-19 pandemic, we prioritized the safety of our customers and employees
by implementing a variety of measures to prevent the spread of the virus while also taking appropriate
steps, such as continuing to carry out operations that included ensuring the payment of insurance claims
and benefits and maintaining call centers. The COVID-19’s category has been reduced to Class V underthe Act on the Prevention of Infectious Diseases and Medical Care for Patients with Infectious Diseases,
but—if the disease starts to rapidly spread or some other crisis occurs in the future—we will strive to
respond as necessary in line with government policies, etc.

3. ComplianceManagement Department, which has overall responsibility for promoting compliance. In coordination
with the compliance units of the Group’s three life insurance companies and other Group members, thisdepartment performs regular monitoring and provides guidance and advice. The Group’s three life insurance companies and other Group members also have a compliance promotion system mainly consistingof a compliance committee and a compliance control department.

Outline of the Group Compliance Promotion Structure

Board of Directors

Audit and Supervisory Committee
Group Compliance Committee
Risk Management Department

Deliberation& reporting
Taiyo
Life

Daido
Life

Guidance& advice

T&D
T&D United T&D Asset Pet & Family
Financial LifeManagement Insurance
CapitalInternal
audit
AllRight

Other Group companies

3. Compliance
3-1

2-24

3-3

205-2

Our Concept of Compliance

The T&D Insurance Group positions legal compliance as a key management issue. The CSR policy, “Wewill strictly observe laws, regulations and rules, and act with sincerity and integrity according to highethical standards,” is stated in the T&D Insurance Group CSR Charter. We work to make all Group executives and employees thoroughly aware of the T&D Insurance Group Compliance Code of Conduct,
and promote compliance based on the recognition that compliance is the core of promoting CSR and an
essential element of it.

3-2

Group Compliance Promotion Structure

T&D Holdings has established a compliance promotion structure based on the T&D Insurance Group
Basic Policy for Strengthening the Compliance Structure. The Group Compliance Committee was established to oversee and improve the Group’s compliance arrangements. T&D Holdings also has a Risk

3-3

Compliance Promotion Activities

Compliance Programs
Each Group company in the T&D Insurance Group takes measures to raise awareness of compliancein a way suitable for the respective companies in terms of size and business characteristics, based on
the Group’s basic compliance policies. For example, T&D Holdings and the Group’s three life insurancecompanies as well as other Group members have put in place their compliance programs as detailed andactionable plans aiming at having all executives and employees act in compliance with laws and regulations, and compliance training is provided to reinforce compliance in the course of business operations.
Compliance Manual
Each company in the T&D Insurance Group creates compliance manuals for each category targeted,including sales representatives, administrative personnel, and agents. These guidelines serve as a reference for day-to-day operations. At the same time, they are used as teaching material for compliancetraining, and we strive to ensure thorough awareness of them. In addition, if an act that possibly violates
our compliance or internal rules is discovered through the internal reporting system, etc., the proceduresin the compliance manuals must be followed to apply feedback to fact checking, research, and reportingat each Group company’s compliance division and elsewhere.

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

Index

106

T&D Insurance Group Sustainability Report 2023

3. Compliance

Compliance Training
The Group and our Group companies provide annual education and training to executives and employees
in line with our compliance program plan, and we strive to raise awareness of compliance while also
making everyone aware of laws, ordinances, and internal rules related to doing business and ensuringthat such rules are followed. Our compliance training includes explanations of risks related to bribery andcorruption as well as details on prohibited acts.

3-4

Preventing Bribery and Corruption

The T&D Insurance Group states the following in the T&D Insurance Group Compliance Code of
Conduct: “We shall work to prevent corruption in our relationships with business counterparts, civil
servants, and other parties by refraining from providing or receiving any business entertainment withinreasonable bounds under normal social conventions, as well as refraining from giving or receiving gifts,
in connection with our business activities worldwide.” In addition to preventing bribery, we are ensuring
thorough awareness by all executives and employees toward preventing corruption. This includes measures against money laundering and prevention of misappropriation and diversion of funds, using suchmeans as a compliance program and compliance manuals. Bribery and corruption are also stipulated
as extremely malicious and severely impacting criminal statutes for disciplinary action. All scandals(including concerns over possible scandals), including bribery and corruption, are reported to the Boardof Directors.
When making a new business investment, checks from the perspective of preventing bribery andcorruption are added to the risk assessment and subjected to appropriate review. As of fiscal 2022, no
scandals or legal disputes relating to bribery or corruption had occurred.

3-5[Risks Related to Bribery and Corruption]
In today’s world, bribery and corruption impede the development and economic growth of thecountry or region in which they occur. Bribery and corruption not only have an undue negative
impact on poor regions, they also give rise to serious legal and reputational risks for companies.
Many of the acts that involve corruption, such as bribery, are not only illegal in the place where acompany performs them, but there is an increasing number of cases where these acts are also illegal by the laws of the home country of the company. As regards reputational risks, even if a company is judged to not be involved with corruption by the final judgment of the court concerned,
there are many cases in which the reputation of the company has been damaged merely because
it was suspected of corruption. A company must also pay attention to the fact that they not only
take responsibility for their own actions but also for the actions of any agents that are conducting
business on their behalf in other countries.

2-16

2-25

2-26

207-2

At the T&D Insurance Group, each of the Group’s three life insurance companies and other Group members used to operate their own whistleblower systems. In April 2005, however, the T&D Insurance Group
Helpline was established for use by all executives and employees in the Group.
The T&D Insurance Group Helpline accepts, through an external company, reports of complianceissues, violations of internal rules (including suspected violations), and actions that may damage thecredibility or reputation of the Group.
T&D Insurance Group Helpline
We have established rules to ensure that whistleblowers are not treated unfavorably after they make areport to the T&D Insurance Group Helpline, and we are working to build an effective system that allows
reporting by phone, the web, etc. through an external reporting company and that also accepts reports
anonymously. (Reports can be accepted 24 hours a day, except by phone.) Reports are investigated inaccordance with internal rules, and then the reports and the results of the investigations into them arereported to the Audit and Supervisory Committee members and to management.

Flow After Receiving a Report
Whistleblower(1)Report

External
reporting desk(2)Contact

Group-internalmanagement(3)Request forinvestigation

T&D Holdings
Risk Management
Department• Phone• Letter• Web

Extract from a Compliance Manual

Whistleblower System(5)Verificationof investigation
results(6)Use of investigation results, etc.
as feedback(4)Investigation
results

Investigation andresponse

Relevant
company
compliancedivisions, etc.

Number of Calls Received by the T&D Insurance Group Helpline
FY2020320

FY2021309

FY2022354* The numbers of reports above include inquiries about the system, as well as reports of workplace issues that are difficult to consult
superiors over, such as complaints or dissatisfaction.

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

T&D Insurance Group Sustainability Report 2023

Third-party Opinion

Index

107

4. Tax Approach and Management

4. Tax Approach and Management

4-1

3-3
207-3

207-1
207-4

207-2

Tax Policy

With the aim of strengthening its corporate governance on taxation (tax governance), the T&D InsuranceGroup has established the T&D Insurance Group Basic Tax Policy, which sets out its approach to taxation(the organization’s tax principles, approach to tax planning, and engagement with tax authorities) througha resolution of the Board of Directors. The T&D Insurance Group Basic Tax Policy is administered by theaccounting unit of each Group company, the tax handling situation is confirmed annually, and any serious
issues, etc. that are discovered are reported to the Board of Directors.
In addition, the T&D Insurance Group clearly states its commitment to strict compliance with applicable laws and regulations in the T&D Insurance Group CSR Charter and the T&D Insurance Group
Compliance Code of Conduct. We ensure tax compliance according to the T&D Insurance Group BasicTax Policy in accordance with these CSR policies. The whistleblower system for compliance applies also
to tax compliance.

T&D Insurance Group Basic Tax Policy
T&D Insurance Group (the “Group”) establishes the following basic tax policy, ensures proper handlingof tax matters, and fulfills its corporate social responsibility.

2. Appropriate Tax Burden
The Group strives to realize an appropriate tax burden through the elimination of double taxation
based on the use of tax treaties and the appropriate use of various tax systems.
The Group will not interpret the laws and regulations in a way that deviates from the purport thereof or conduct tax planning that is solely intended for tax avoidance.
3. Responding to Transfer Pricing Taxation
The Group will conduct international transactions between Group companies at arm’s length
prices in accordance with the OECD Transfer Pricing Guidelines and will pay appropriate taxes
based on appropriate income reflecting the economic activities conducted in the relevant country or region.
4. Establishment of Tax Payment System
The Group will establish a system to properly conduct tax operations applicable in each country
or region.
T&D Holdings is working to strengthen its tax governance system in cooperation withdomestic and overseas Group companies.
5. Relationships with Tax Authorities
The Group strives to build sound relationships with tax authorities by responding to them sincerely and providing timely and appropriate explanations that are based on facts.
Please see our website for the amount of taxes paid by country.
WEB

1. Basic Idea
Based on the Group’s management philosophy, the Group aims to contribute to people andsociety through its business activities in order to realize a sustainable society.
In addition, for the purpose of conducting corporate activities that are sincere, fair andappropriate for all stakeholders, the Group stipulates compliance with laws and regulations in
its Compliance Code of Conduct.
Also, the Group will strive to further improve governance and compliance, and in order toensure proper handling of tax matters, the Group will deal with them in a sincere and responsible manner in line with the tax laws and regulations of each country or region and the purport
thereof when conducting its business.

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

サステナビリティ経営

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

Third-Party Opinion
It was extremely fascinating to read this report—which started with President Uehara’s powerful
message concerning the Group’s efforts to resolve social issues through its business and sow
happiness in the world by creating shared value—and covered the Group’s progress on various
activities. I fully expect even more effective efforts by the Group and have provided my third-party
opinion below.

1 Promoting SDGs management and creation of value
The Group’s Sustainability Advisory Committee was established in fiscal 2021. The Group receives
expert proposals from and engages in dialogues with this committee, thereby demonstrating theGroup’s actions and commitment, and the committee seems highly effective in terms of working
towards SDGs management and creation of value, a goal set forth under the Group Long-Term
Vision (Try & Discover 2025).
The specific proposals from these experts on working towards decarbonization, the Sustainability
Statement, ESG investment, and support for SMEs are also addressed by follow-up topics,
which shows that the Group takes proposals from the committee seriously and acts accordingly.
Going forward, I expect the Group to make specific progress and further expand its information
disclosure.

2 Initiatives on respect for human rights
This year, the Group published information on identified human rights risks, and, under its items
for priority confirmation, it disclosed research results concerning harassment and excessive
working hours.
In terms of the Group’s future initiatives, I expect the Group to delve deeper into its report that it
has confirmed that no serious human rights issues requiring correction have arisen in the Group’sbusiness activities, such as by describing the specific kinds of human rights due diligence theGroup implements and disclosing the methods and specific results. Regarding step 4: humanrights risk mitigation measures and remedial measures, I also expect the Group to make progresson specific actions to mitigate risks in particular.
In addition, the current trend is for people around the world to demand that the influence ofhuman rights due diligence extend over the entire value chain, including business partners, customers, and investment and loan recipients. As a leader in Japan’s insurance industry, I expect theGroup to expand the range of such activities, thereby increasing value.

3 Climate change measures
I feel like the Group has taken a major step forward by disclosing climate-related financial information based on the TCFD recommendations, publishing the future-prediction-based resultsof quantitatively analyzing the effects of physical risks on underwriting profitability, publishing
information on the CO2 emissions of investment and loan recipients, and disclosing the following
information: CO2 emissions of 1.989 million tons as of the end of fiscal 2022 based on the investment and loan recipient portfolio and achieving a 33.3% reduction compared to 2020.
I suspect that the above is a result of the Group, which is an institutional investor, requesting thatits investment and loan recipients implement comprehensive information disclosure, including
publishing emission reduction goals and a roadmap for achieving them, in the interest of addressing climate change to achieve net zero emissions, while also engaging in constructive dialogues
with such recipients.
Currently, the Group’s investment and loan recipients subject to disclosure consist of stocks,
bonds, and loans issued by Japanese listed companies and included in the assets owned by Taiyo
Life or Daido Life, but I feel like—if the Group starts disclosing information on a wider range ofinitiatives covering not only Japanese listed companies but also other investment and loan recipients throughout the Group’s portfolio as a whole—the Group will gain the deeper understandingof its stakeholders.
Starting at the end of March 2023, it became a requirement to disclose information on human capital, resulting in a need to promote human capital management. The subject of Group
Employee Dialogue, which are actively being held in new areas, also came up in this report. The
Group has established a goal of reaching a 30% ratio of female managers by 2030, but the Groupis also tackling a wide range of other items, including human resource development, engagement, fluidity, diversity, health and safety, labor practices, compliance, and ethics. Thanks to theGroup’s comprehensive medium- to long-term vision and goal setting, I expect it to achieve evenmore successful participation by wonderful human resources.

Ai Aonuma Representative Director, Kamakura Sustainability Institute (KSI)
In 2011, after working for an SRI investment advisory company, Ai Aonuma
began working in the area of social audits and labor environment improvement
work. Later, she joined the sustainability department of a major apparel company, where she was in charge of sustainable supply chains. In 2018, she established KSI. Presently, she is engaged in social audits in Japan and overseas
in various industries while also providing sustainability consulting. She also
serves as a board member of WaterAid Japan.

108

サステナビリティ経営

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

GRI Standards/
Other Sources

Disclosed Items

Management Control

Third-party Opinion

Index

T&D Insurance Group Sustainability Report 2023

109

Index GRI Standards
GRI Content Index
Statement of Use

T&D Holdings, Inc. reports in accordance with the GRI Standards for theperiod April 1, 2022 through March 31, 2023.

GRI 1 used

GRI 1: Foundation 2021

Applicable GRI Sector Standards

N/A

GRI Standards/
Other Sources

Publication Location(Titles of sustainability report/web)

Disclosed Items

Omission

GENERAL DISCLOSURESGRI 2:
GENERALDISCLOSURES
2021

1. The organization and its reporting practices

2-1 Organizational details

Organizational Profile 1. Organizational Profile
1-2 T&D Insurance Group Companies andFoundations
Organizational Profile 1. Organizational Profile
1-3 Corporate Profile (as of March 31, 2023)
Governance and Internal Control 2. Disclosure ofInformation to Shareholders and Investors
2-5 Shareholders

Sustainability Report 2023 Report Publication
Information Scope of report2-2 Entities included in
Organizational Profile 1. Organizational Profile
the organization’ssustainability reporting 1-2 T&D Insurance Group Companies andFoundations
Sustainability Report 2023
2-3 Reporting period,
Report Publication Information
frequency and contact
Sustainability Report 2023
point
Contact Information
2-4 Restatements of
information

N/A

2-5 External assurance

Priority Theme 3 Help Mitigate and Adapt to
Climate Change
3.Environmental Impact-reduction Initiatives
3-5 Independent Assurance Report

2. Activities and workers
Organizational Profile 1. Organizational Profile
1-1 Outline of the T&D Insurance Group’s Business
Organizational Profile 1. Organizational Profile
2-6 Activities, value chain
1-2 T&D Insurance Group Companies andand other business
Foundations
relationships
Organizational Profile 2. Supply Chain
2-1 Definition of Supply Chain
2-7 Employees

Organizational Profile 1. Organizational Profile
1-4 Number of Employees

2-8 Workers who are not
employees

Organizational Profile 1. Organizational Profile
1-4 Number of Employees

The number ofagency workers
managed by theGroup is included in
the number of temporary employees
in “1-4 Number of
Employees”.

Publication Location(Titles of sustainability report/web)

GENERAL DISCLOSURESGRI 2:
GENERALDISCLOSURES
2021

3. Governance
Sustainability Management
7. Sustainability Promotion Framework (FY2022)
Sustainability Management 8. Committees that
Respond to Sustainability Issues
Governance and Internal Control
2-9 Governance structure
1. Corporate Governanceand composition
WEB Corporate Governance
Basic Approachto Corporate Governance Corporate Governance
Report (https://www.td-holdings.co.jp/en/company/
governance/)

2-10 N omination andselection of thehighest governancebody

Governance and Internal Control
1. Corporate Governance 1-3 Corporate
Governance Framework Selection of Directors
Governance and Internal Control
1. Corporate Governance 1-5 Nomination andCompensation Committee
Shareholders’ Meeting(https://www.td-holdings.co.jp/en/ir/stock/meeting/)

2-11 C hair of the highest
governance body

Governance and Internal Control
1. Corporate Governance 1-3 Corporate
Governance Framework Board of Directors
Governance and Internal Control
1. Corporate Governance 1-3 Corporate
Governance Framework Audit and Supervisory
Committee

2-12 Role of the highest
governance body inoverseeing themanagement of
impacts

Sustainability Management
7. Sustainability Promotion Framework (FY2022)
Sustainability Management
8. Committees that Respond to Sustainability
Issues2-13 Delegation of
responsibility for
managing impacts

Sustainability Management
7. Sustainability Promotion Framework (FY2022)
Sustainability Management 8. Committees that
Respond to Sustainability Issues

2-14 Role of the highest
governance bodyin sustainability
reporting

Sustainability Management
7. Sustainability Promotion Framework (FY2022)
Group SDGs Committee

2-15 Conflicts of interest

WEB Corporate Governance
Basic Approachto Corporate Governance Corporate Governance
Report (https://www.td-holdings.co.jp/en/company/
governance/)

2-16 Communication ofcritical concerns

Sustainability Management
11. Initiatives on Respect for Human Rights
Management Control 3. Compliance
3-5 Whistleblower System

Omissionサステナビリティ経営

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

GRI Standards/
Other Sources

Disclosed Items

Management Control

Third-party Opinion

Index

T&D Insurance Group Sustainability Report 2023

GRI Standards/
Other Sources

Publication Location(Titles of sustainability report/web)

Disclosed Items

Omission

GENERAL DISCLOSURES

GENERAL DISCLOSURESGRI 2:
GENERALDISCLOSURES
2021

GRI 2:
GENERALDISCLOSURES
2021

3. Governance
Governance and Internal Control 1. Corporate
2-17 Collective knowledge
Governance 1-4 Participation in Management byof the highest
Outside Experts
governance body

Publication Location(Titles of sustainability report/web)

4. Strategy, policies and practices
Sustainability Management
9. Stakeholder Engagement
Dialogues with Main Stakeholders
Protecting the environment and contributing to local
communities
Organizational Profile 1. Organizational Profile
1-3 Corporate Profile (as of March 31, 2023)
Industry Association to which the Three Life
Insurance Companies Belong

2-18 Evaluation of theperformance of thehighest governancebody

Governance and Internal Control 1. Corporate
Governance 1-5 Nomination and Compensation
Committee
Governance and Internal Control 1. Corporate
Governance 1-8 Executive Compensation

2-28 Membershipassociations

2-19 Remuneration
policies

Governance and Internal Control 1. Corporate
Governance 1-8 Executive Compensation

5. Stakeholder engagement

Governance and Internal Control 1. Corporate
Governance 1-5 Nomination and Compensation
2-20 Process to determine
Committee
remuneration
Governance and Internal Control 1. Corporate
Governance 1-8 Executive Compensation
2-21 Annual totalcompensation ratio—

This disclosure is in
the process of being
considered for possible disclosure.

2-29 Approach to
stakeholder
engagement

4. Strategy, policies and practices
2-22 Statement onsustainable
development
strategy

Message from the President

Sustainability Management
2. Philosophy and Policy of T&D Insurance Group
Priority Theme 4 Invest to Help Build a Sustainable
Society 1. Basic Concept 1-1 T&D InsuranceGroup ESG Investment Policy
2-23 Policy commitments WEB T&D Insurance Group Human Rights Policy(https://www.td-holdings.co.jp/en/csr/csr-policy/human-right-policy.html)
WEB The T&D Insurance Group Compliance Code of
Conduct (https://www.td-holdings.co.jp/en/csr/csr-policy/csr-compliance.html)
2-24 Embedding policy
commitments

Sustainability Management 11. Initiatives on
Respect for Human Rights
Priority Theme 4 Invest to Help Build a Sustainable
Society
Management Control 3. Compliance2-25 Processes toremediate negative
impacts

Sustainability Management
11. Initiatives on Respect for Human Rights
Management Control 2. Risk Management
2-9 Protection of Customer Privacy
Management Control 3. Compliance
3-5 Whistleblower System

2-26 Mechanisms forseeking advice andraising concerns

Management Control
3. Compliance 3-5 Whistleblower System

2-27 Compliance with
N/A
laws and regulations

Sustainability Management
9. Stakeholder Engagement
Priority Theme 1 Promote Healthy and Abundant
Lives for All People
3. Improving Customer Satisfaction
3-2 Initiatives to Respond to Customer Feedback
Priority Theme 2 Provide Workplace Environmentsthat Enable All People to Participate Actively
3. Worker-friendly Work Environment
3-2 Initiatives Reflecting Employee Feedback & 3-3
Employee Questionnaire on Sustainability and CSR
Priority Theme 4 Invest to Help Build a Sustainable
Society 4. Initiatives to Conform to the Principles
for Responsible Institutional Investors (Japan’s
Stewardship Code)Governance and Internal Control 2. Disclosure ofInformation to Shareholders and Investors
2-3 IR Activities

2-30 C ollective bargaining
agreements

Organizational Profile 1. Organizational Profile
1-5 Dialogue and Consultations with Labor Unions

3-1 Process to determinematerial topics

Sustainability Management
4. Priority Themes for Promoting Sustainability

3-2 List of material topics

Sustainability Management
4. Priority Themes for Promoting Sustainability

Material Topics
GRI 3:
Material Topics
2021

Economic Performance
GRI 3:
Material Topics
2021

GRI 201:
Economic
Performance2016

3-3 Management ofmaterial topics

Sustainability Management
4. Priority Themes for Promoting Sustainability
Sustainability Management
6. Status of Sustainability Promotion
Sustainability Management
9. Stakeholder Engagement
Priority Theme 3 Help Mitigate and Adapt to
Climate Change
2. Disclosure of Climate-related Financial
Information Based on the TCFD Recommendations

201-1 Direct economic
value generated anddistributed

Sustainability Library
Organizational Profile Financial Highlights
WEB Sustainability Library
Other Initiatives Corporate Philanthropic
Contributions
WEB

110

Omissionサステナビリティ経営

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

GRI Standards/
Other Sources

Disclosed Items

Management Control

Third-party Opinion

Index

T&D Insurance Group Sustainability Report 2023

GRI Standards/
Other Sources

Publication Location(Titles of sustainability report/web)

Disclosed Items

Omission

Material Topics

Material Topics

Economic Performance

Anti-competitive Behavior

GRI 201:
Economic
Performance2016

GRI 206:
Anticompetitive
Behavior 2016201-2 Financial
Priority Theme 3 Help Mitigate and Adapt to
implications andClimate Change
other risks and2. Disclosure of Climate-related Financial
opportunities due toInformation Based on the TCFD Recommendations
climate change

Indirect Economic Impacts
GRI 3:
Material Topics
2021
3-3 Management ofmaterial topics

GRI 203:
Indirect
Economic
Impacts 2016

203-2 Significant indirect
economic impacts

3-3 Management ofmaterial topics

GRI 205:
Anti-corruption 205-1 Operations
assessed for risks
2016
related to corruption
205-2 Communication andtraining aboutanti-corruption
policies andprocedures

GRI 3:
Material Topics
2021

GRI 207:
Tax 2019 Topic
management
disclosures

Priority Theme 1 Promote Healthy and Abundant
Lives for All People
1. Provision of Products and Services which Meetthe Needs of Society
Priority Theme 4 Invest to Help Build a Sustainable
Society
2. Our Initiatives as a Responsible Institutional
Investor
2-2 Specific ESG Investment Initiatives

GRI 207:
Tax 2019 Topic
disclosures
GRI 3:
Material Topics
2021

Sustainability Management
4. Priority Themes for Promoting Sustainability
Sustainability Management
9. Stakeholder Engagement
Management Control 2. Risk Management
Management Control 3. ComplianceManagement Control 2. Risk Management
2-4 Risk Awareness and Assessment (risk profile)“Total number
and percentage of
operations assessed
for risks related tocorruption” are notdisclosed, as risks aremanaged by category.

GRI 301:
Materials 2016

Management Control

Matters required
for reporting include
items awaiting thecollection of information. The items will
be disclosed within a
few years.

GRI 3:
Material Topics
2021

3. Compliance

Anti-competitive Behavior

3-3 Management ofmaterial topics

Sustainability Management
4. Priority Themes for Promoting Sustainability
Sustainability Management
9. Stakeholder Engagement
Management Control 2. Risk Management
Management Control 3. Compliance

3-3 Management ofmaterial topics

Sustainability Management
4. Priority Themes for Promoting Sustainability
Sustainability Management
9. Stakeholder Engagement
Management Control
4. Tax Approach and Management

207-1 Approach to tax

Management Control
4. Tax Approach and Management

207-2 Tax governance,
control, and risk
management

Management Control 3. Compliance
3-5 Whistleblower System
Management Control
4. Tax Approach and Management

207-3 Stakeholder
engagement andmanagement of concerns related to tax

Management Control
4. Tax Approach and Management

207-4 Country-by-country
reportingManagement Control
4. Tax Approach and Management

Materials

3-3 Management ofmaterial topics

Sustainability Management 4. Priority Themes for
Promoting Sustainability
Sustainability Management 6. Status of
Sustainability Promotion
Priority Theme 3 Help Mitigate and Adapt to
Climate Change
3. Environmental Impact-reduction Initiatives

301-1 M aterials used byweight or volume

Priority Theme 3 Help Mitigate and Adapt to
Climate Change
3. Environmental Impact-reduction Initiatives

3-3 Management ofmaterial topics

Sustainability Management
4. Priority Themes for Promoting Sustainability
Sustainability Management
6. Status of Sustainability Promotion
Sustainability Management
9. Stakeholder Engagement
Priority Theme 3 Help Mitigate and Adapt to
Climate Change

Energy205-3 Confirmed incidents
N/Aof corruption andactions taken
GRI 3:
Material Topics
2021

206-1 L egal actions foranti-competitive
behavior, anti-trust, N/A
and monopoly
practices

Tax
Sustainability Management
4. Priority Themes for Promoting Sustainability
Sustainability Management
6. Status of Sustainability Promotion
Sustainability Management
9. Stakeholder Engagement
Priority Theme 1 Promote Healthy and Abundant
Lives for All People
1. Provision of Products and Services which Meetthe Needs of Society
Priority Theme 4 Invest to Help Build a Sustainable
SocietyAnti-corruption
GRI 3:
Material Topics
2021

Publication Location(Titles of sustainability report/web)

GRI 302:
Energy 2016

Priority Theme 3 Help Mitigate and Adapt to302-1 Energy
consumption within Climate Change
3. Environmental Impact-reduction Initiatives
the organization
302-3 E nergy intensity

Priority Theme 3 Help Mitigate and Adapt to
Climate Change
3. Environmental Impact-reduction Initiatives

111

Omissionサステナビリティ経営

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

GRI Standards/
Other Sources

Disclosed Items

Management Control

Third-party Opinion

Index

T&D Insurance Group Sustainability Report 2023

GRI Standards/
Other Sources

Disclosed Items

Publication Location(Titles of sustainability report/web)

Material Topics

GRI 303:
Water andEffluents 2018
Topic
management
disclosures

GRI 303:
Water andEffluents 2018
Topic
disclosures

GRI 304:
Biodiversity
2016

Omission

Waste

3-3 Management ofmaterial topics

Sustainability Management
4. Priority Themes for Promoting Sustainability
Priority Theme 3 Help Mitigate and Adapt to
Climate Change
3. Environmental Impact-reduction Initiatives

GRI 3:
Material Topics
2021

303-1 Interactions withwater as a sharedresource

Priority Theme 3 Help Mitigate and Adapt to
Climate Change
3. Environmental Impact-reduction Initiatives
3-2 Environmental Performance Data

303-2 Management ofwater
discharge-related
impacts

Priority Theme 3 Help Mitigate and Adapt to
Climate Change
3. Environmental Impact-reduction Initiatives
3-2 Environmental Performance Data

GRI 306:
Waste 2020
Topicmanagement
disclosures

303-3 Water withdrawal

Priority Theme 3 Help Mitigate and Adapt to
Climate Change
3. Environmental Impact-reduction Initiatives
3-2 Environmental Performance Data

Biodiversity
GRI 3:
Material Topics
2021

Publication Location(Titles of sustainability report/web)

Material Topics

Water and EffluentsGRI 3:
Material Topics
2021

Omission112

3-3 Management ofmaterial topics

Sustainability Management
4. Priority Themes for Promoting Sustainability

304-3 Habitats protectedor restored

Priority Theme 3 Help Mitigate and Adapt to
Climate Change
4. Forest Conservation Activities
Priority Theme 3 Help Mitigate and Adapt to
Climate Change
5. Environmental Communications and Educational
Activitie

Emissions
GRI 3:
Material Topics
2021
3-3 Management ofmaterial topics

Sustainability Management
4. Priority Themes for Promoting Sustainability
Sustainability Management
6. Status of Sustainability Promotion
Sustainability Management
9. Stakeholder Engagement
Priority Theme 3 Help Mitigate and Adapt to
Climate Change

GRI 305:
Emissions 2016 305-1 Direct (Scope 1)
GHG emissions

Priority Theme 3 Help Mitigate and Adapt to
Climate Change
3. Environmental Impact-reduction Initiatives

305-2 Energy indirect(Scope 2) GHG
emissions

Priority Theme 3 Help Mitigate and Adapt to
Climate Change
3. Environmental Impact-reduction Initiatives

305-3 Other indirect(Scope 3) GHG
emissions

Priority Theme 3 Help Mitigate and Adapt to
Climate Change
3. Environmental Impact-reduction Initiatives

GRI 306:
Waste 2020
Topicdisclosures

3-3 Management ofmaterial topics

Sustainability Management
4. Priority Themes for Promoting Sustainability
Priority Theme 3 Help Mitigate and Adapt to
Climate Change
3. Environmental Impact-reduction Initiatives

306-1 Waste generationand significant
waste-related
impacts

Priority Theme 3 Help Mitigate and Adapt to
Climate Change
3. Environmental Impact-reduction Initiatives

306-2 Management ofsignificant
waste-related
impacts

Priority Theme 3 Help Mitigate and Adapt to
Climate Change
3. Environmental Impact-reduction Initiatives
Priority Theme 3 Help Mitigate and Adapt to
Climate Change
3. Environmental Impact-reduction Initiatives
3-5 Independent Assurance Report306-3 Waste generated

Priority Theme 3 Help Mitigate and Adapt to
Climate Change
3. Environmental Impact-reduction Initiatives

All waste is“non-hazardous
waste" and disposal
depends on ”local
government disposal
methods.

Environmental Compliance
GRI 3:
Material Topics
2021

3-3 Management ofmaterial topics

GRI 307:
Environmental
Compliance2016

307-1 Non-compliancewith
N/A
environmental laws
and regulations

Sustainability Management
4. Priority Themes for Promoting Sustainability

Employment
GRI 3:
Material Topics
2021

GRI 401:
Employment
2016

3-3 Management ofmaterial topics

Sustainability Management
4. Priority Themes for Promoting Sustainability
Sustainability Management
9. Stakeholder Engagement
Priority Theme 2 Provide Workplace Environmentsthat Enable All People to Participate Actively

Organizational Profile 1. Organizational Profile
1-4 Number of Employees
401-1 New employee
Priority Theme 2 Provide Workplace Environments
hires and employeethat Enable All People to Participate Actively
turnover3. Worker-friendly Work Environment
3-1 Work-Life Balance Initiatives
401-2 B
 enefits provided
Priority Theme 2 Provide Workplace Environments
to full-time
employees that are that Enable All People to Participate Actively
3. Worker-friendly Work Environment
not provided to
3-1 Work-Life Balance Initiatives
temporary or
part-time employees

401-3 Parental leave

Priority Theme 2 Provide Workplace Environmentsthat Enable All People to Participate Actively
3. Worker-friendly Work Environment
3-1 Work-Life Balance Initiatives

Matters required forreporting include
items awaiting thecollection of information. The items will
be disclosed withina few years.

サステナビリティ経営

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

GRI Standards/
Other Sources

Disclosed Items

Management Control

Third-party Opinion

Index

T&D Insurance Group Sustainability Report 2023

GRI Standards/
Other Sources

Publication Location(Titles of sustainability report/web)

Disclosed Items

Omission

Material Topics
GRI 3:
Material Topics
2021
3-3 Management ofmaterial topics

GRI 403:
Occupational
Health and
Safety 2018
Topic
disclosures

Omission

Material Topics

Occupational Health and Safety

GRI 403:
Occupational
Health and
Safety 2018
Topic
management
disclosures

Publication Location(Titles of sustainability report/web)

113

Training and Education
GRI 404:
Training and
Education 2016 404-1 Average hours of
training per year per
employee

Sustainability Management
4. Priority Themes for Promoting Sustainability
Sustainability Management
6. Status of Sustainability Promotion
Sustainability Management
9. Stakeholder Engagement
Priority Theme 2 Provide Workplace Environmentsthat Enable All People to Participate Actively
4. Health Promotion for Employees

404-2 Programs forPriority Theme 2 Provide Workplace Environments
upgradingemployee skills and that Enable All People to Participate Activelytransition assistance 1. Human Capital Management
programs

403-1 O ccupational healthand safety management system403-2 H azard identification,risk assessment, andincident investigation
403-3 O ccupational healthservices403-4 Worker participation,
Priority Theme 2 Provide Workplace Environments
consultation, andthat Enable All People to Participate Actively
communication on
3. Worker-friendly Work Environment
occupational health
3-1 Work-Life Balance Initiatives
and safety
Priority Theme 2 Provide Workplace Environments
403-5 Worker training onthat Enable All People to Participate Actively
occupational health
4. Health Promotion for Employees
and safety403-6 P
 romotion of worker
health403-7 P revention and mitigation of occupational health and safety
impacts directly
linked by business
relationships

403-9 Work-related
injuries

Sustainability Library
Initiatives to address the working environment
Occurrence of Occupational Accidents

WEB

Training and Education
GRI 3:
Material Topics
2021
3-3 Management ofmaterial topics

Sustainability Management
4. Priority Themes for Promoting Sustainability
Sustainability Management
6. Status of Sustainability Promotion
Sustainability Management
9. Stakeholder Engagement
Priority Theme 2 Provide Workplace Environmentsthat Enable All People to Participate Actively
1. Human Capital Management

Sustainability Library
Initiatives to address the working environment
Education and Training

WEB

There are no differences by gender in
the indicators. Due tothe difficulty of categorizing “occupational
training/education”
from a large numberof training programs,
indicators by employee category are notdisclosed.

Diversity and Equal Opportunity
GRI 3:
Material Topics
2021

GRI 405:
Diversityand Equal
Opportunity
2016

3-3 Management ofmaterial topics

Sustainability Management
4. Priority Themes for Promoting Sustainability
Sustainability Management
6. Status of Sustainability Promotion
Sustainability Management
9. Stakeholder Engagement
Priority Theme 2 Provide Workplace Environmentsthat Enable All People to Participate Actively
2. Diversity Promotion Initiatives

405-1 Diversity of
governance bodies
and employees

Governance and Internal Control
1. Corporate Governance
Priority Theme 2 Provide Workplace Environmentsthat Enable All People to Participate Actively
3. Worker-friendly Work Environment
3-1. Work-Life Balance Initiatives

Human Rights Assessment
GRI 3:
Material Topics
2021
Managed based on
the number of occupational accidents.

GRI 412:
Human Rights
Assessment
2016

3-3 Management ofmaterial topics

Sustainability Management
4. Priority Themes for Promoting Sustainability
Sustainability Management
9. Stakeholder Engagement
Sustainability Management
11. Initiatives on Respect for Human Rights

412-2 Employee
training on humanrights policies orprocedures

Priority Theme 2 Provide Workplace Environmentsthat Enable All People to Participate Actively
2. Diversity Promotion Initiatives
2-2. Human Rights Education

Local Communities
GRI 3:
Material Topics
2021

3-3 Management ofmaterial topics

Sustainability Management
4. Priority Themes for Promoting Sustainability
Sustainability Management
6. Status of Sustainability Promotion
Sustainability Management
9. Stakeholder Engagement

Human rights training is conducted forall employees. “Total
hours of employee
training” are notdisclosed.

サステナビリティ経営

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

GRI Standards/
Other Sources

Disclosed Items

Management Control

Third-party Opinion

Index

T&D Insurance Group Sustainability Report 2023

GRI Standards/
Other Sources

Publication Location(Titles of sustainability report/web)

Disclosed Items

Omission

Material Topics

Material Topics

Local Communities
GRI 413:
Local
Communities
2016413-1 Operations withlocal community
engagement,
impact assessments,
and development
programs

Better Products and Services*

Social Activities

The Group has asingle segment.
Accordingly,“percentage of
operations with implemented local community engagement,
impact assessments
and development
programs” is notdisclosed.

GRI 3:
Material Topics
2021
3-3 Management ofmaterial topics

Supplier Social Assessment
GRI 3:
Material Topics
2021

3-3 Management ofmaterial topics

GRI 414:414-1 New suppliers that
Supplier Social
were screened
Assessment
using social criteria
2016

GRI 417:
Marketing andLabeling 2016

3-3 Management ofmaterial topics

Health Promotion of Community and Employees*

Organizational Profile 2. Supply Chain
2-2 Cooperation with Suppliers

GRI 3:
Material Topics
2021

Sustainability Management
4. Priority Themes for Promoting Sustainability

3-3 Management ofmaterial topics

418-1 Substantiatedcomplaints
concerning
breaches of customer privacy and lossesof customer data

Sustainability Management
4. Priority Themes for Promoting Sustainability
Sustainability Management
9. Stakeholder Engagement
Management Control 2. Risk Management
2-8 Cyber Security Initiatives
Management Control 2. Risk Management
2-9 Protection of Customer Privacy

3-3 Management ofmaterial topics

GRI 3:
Material Topics
2021
3-3 Management ofmaterial topics

Sustainability Management
4. Priority Themes for Promoting Sustainability
Sustainability Management
6. Status of Sustainability Promotion
Sustainability Management
9. Stakeholder Engagement
Priority Theme 4 Invest to Help Build a Sustainable
Society

Measures against Demographic Change and Aging*
Management Control 2. Risk Management
2-9 Protection of Customer Privacy

Socioeconomic Compliance
GRI 3:
Material Topics
2021

Sustainability Management
4. Priority Themes for Promoting Sustainability
Sustainability Management
6. Status of Sustainability Promotion
Sustainability Management
9. Stakeholder Engagement
Priority Theme 1 Promote Healthy and Abundant
Lives for All People
1. Provision of Products and Services which Meetthe Needs of Society
Priority Theme 2 Provide Workplace Environmentsthat Enable All People to Participate Actively
4. Health Promotion for Employees
Social Activities 2. Improving Health and Welfare(Health, Medical Care, Welfare, etc.)

Responsibility as Institutional Investors*

Customer Privacy

GRI 418:
CustomerPrivacy 2016

3-3 Management ofmaterial topics

Priority Theme 1 Promote Healthy and Abundant
Lives for All People
417-1 Requirements for
2. Providing Wholehearted Reassurance
product and service
Priority Theme 1 Promote Healthy and Abundant
information andLives for All People
labeling
3. Improving Customer Satisfaction

GRI 3:
Material Topics
2021

Sustainability Management
4. Priority Themes for Promoting Sustainability
Sustainability Management
6. Status of Sustainability Promotion
Sustainability Management
9. Stakeholder Engagement
Priority Theme 1 Promote Healthy and Abundant
Lives for All People
1. Provision of Products and Services which Meetthe Needs of Society
WEB Sustainability Library
Other Initiatives
Activities to Respond to the Customer Feedback

Sustainability Management
4. Priority Themes for Promoting Sustainability
Sustainability Management
9. Stakeholder Engagement

Marketing and Labeling
GRI 3:
Material Topics
2021

Publication Location(Titles of sustainability report/web)

Sustainability Management
4. Priority Themes for Promoting Sustainability
Management Control 2. Risk Management
Management Control 3. Compliance

GRI 419:419-1 Non-compliance
Socioeconomic
with laws and regu- N/ACompliancelations in the social
2016
and economic area

GRI 3:
Material Topics
2021

3-3 Management ofmaterial topics

Sustainability Management
4. Priority Themes for Promoting Sustainability
Sustainability Management
9. Stakeholder Engagement
Priority Theme 1 Promote Healthy and Abundant
Lives for All People
1. Provision of Products and Services which Meetthe Needs of Society 1-6 Best Senior Service
Social Activities 3. Developing a Sound Society(Education, Sports, Local Community Contribution, etc.)
Priority Theme 2 Provide Workplace Environmentsthat Enable All People to Participate Actively
1. Human Capital Management 1-4 Promoting the
Active Participation of the Elderly* Material items not included in GRI Itemized Standard disclosures

114

Omission