68

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

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

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.

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

70

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

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

77

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

Sustainability Management

Organizational Profile

Priority Theme

1 2 3 4Social Activities

Governance and Internal Control

Management Control

Third-party Opinion

Index

78

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.