2T&D Insurance Group Sustainability Report 2023

Message from thePresident

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 “CategoryII-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 atdecarbonization. However, we now recognize the need to acceleratethese efforts upon incorporating biodiversity conservation perspectives as well.

3T&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 theT&D Insurance Group

Converted 100% of electricity used at ourhead office building to renewable energy• Established T&D Insurance Group Sustainability Statement• Joined RE1002023
UN Global
Compact signed
Group CSR Committee
established•G PIF begins ESG investment• TCFD recommendations

Principles for
Financial Action forthe 21st Century202020192017UN 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 HumanRights 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 arestriving 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.