Corporate Responsibility Report 2014
Third-party Opinion
Professor, Faculty of Economics
Takasaki City University of Economics

For constant evolution of CSR
I wish to express my respect for the T&D Life Group’s continuous and sincere efforts to help solve various issues through
CSR. I consider it admirable that the Group has identified key focus areas, namely, respect for human rights and preservationof the global environment, and has been involved in a wide range of activities including forest conservation activities andefforts to support the active participation of women and the achievement of work-life balance. I also highly praise the social
contribution activities conducted by the Group’s social welfare organizations and activities for supporting people withdisabilities, activities that have a long history. Having said this, I wish to raise the following two topics.
1. Efforts to address social issues undertaken via the Group’s main businessAs stated in the Top Message at the beginning, life insurance companies
have a unique position in society in the sense that the very essence of
their business is tied to social issues. In particular, Japan is facing various
challenges that have surfaced in connection with the emergence of anaging society with fewer children. Such challenges include health risks,
the potential needs for nursing care and the business continuity risks
to small and medium-size enterprises that are heavily reliant on theirindividual owners. In response, the Group has been providing various
solutions through multiple channels, including the household market,
small and medium enterprise market, and financial institutions and otheragencies market. This is commendable. Many of the products introducedon page 31 respond to social needs; reading about them, I got a real
sense of the enthusiasm the Group brings to solving social issues. In thecase of life insurance companies, long-term business continuity itself is an
important responsibility. In this respect, I understand why many pages ofthis report are dedicated to explaining ERM and risk management of theGroup as a whole.
On the other hand, society does not appear to be moving toward any
resolution of these demographics-related issues. As the proportion ofolder people increases, economic disparities are worsening and thenumber of socially vulnerable people appears to be growing. However,as stated under the heading “Fairness in Offering Insurance Products
to the Broader Public” on page 31, life insurance companies are unable
to accept everyone who wishes to purchase policies regardless of
their circumstances. In this sense, these companies are faced with theextremely difficult dilemma of wanting to provide solutions to those
who truly need security while having to maintain an appropriate balance
between fairness and the principle of mutual aid. Solving social issues
through business activities requires untiring efforts, however, and I hope
to see the Group’s responses to these challenges continue to evolve.

Unique strengths of the T&D Life Group
T&D Life Group Corporate Responsibility Report 2014 Data Edition

Takeshi Mizuguchi

ProfileGraduated from College of Policy and Planning Sciences, Third Cluster of Colleges, Tsukuba University in 1984.
After working at Nichimen Corporation and Eiwa Audit Corporation, he became an instructor in the Faculty of
Economics at Takasaki City University of Economics, and assumed his present position in 2008. His primary areas ofresearch include environmental accounting and socially responsible investment. He has also served as Chair of theJapanese Institute of Certified Public Accountants’ Technical Committee on Sustainability Information Disclosure,and as a member on the Central Environment Council’s Special Committee on the Environment and Finance. At
present, he serves as the joint representative director of the Japan Sustainable Investment Forum. His principal
books include Responsible Investment (Iwanami Shoten), Accounting and Investment for Social Change (Iwanami
Shoten), The Environment and Financial/Investment Trends (author/editor, Chuo Keizai-sha), and Environmental
Management and Accounting (co-author, Yuhikaku Publishing).

2. Actions as a responsible institutional investor
I highly commend the fact that the T&D Life Group as a whole signed on
to the Principles for Financial Action for the 21st Century in fiscal 2014. In
addition, Taiyo Life, Daido Life and T&D Asset Management expressed theircommitment to honor the Principles for Responsible Institutional Investors(Japan’s Stewardship Code). This is a very significant step forward.
While Japan’s Stewardship Code promotes the sustainable growth ofcompanies through constructive engagement with investee companies,
the most important element is the contents of such engagement. If the
dialogues lean toward short-term views, the judgment of the participants
could be called into question. Just as the T&D Life Group puts its activities
to address social issues at the center of its business, investors should
ask investee companies to fulfill their social responsibilities in a similarmanner, which will lead to a long-term investment return for investors.
Companies that can respond to social issues can undoubtedly grow in asustainable manner over the long-term.
Furthermore, such dialogues generate bonus effects. For example, theprogression of global warming has been increasing the risks to human lifeand health by causing more frequent abnormal weather conditions andpromoting the spread of infectious diseases. Asking investee companies
to take actions on such issues means helping to reduce those risks,through which the Group will be able to reduce the payment of insurance
benefits and increase profits over the long-term. Policyholders should
be happy to avoid events that trigger the payment of insurance benefits
rather than receiving the payment. Although this type of benefit is largely
invisible to policyholders, I believe the objective of the Stewardship Codeis to encourage institutional investors to guide their investee companies
to produce these kinds of genuine benefits. Stewardship is about taking
actions for the benefit of beneficiaries (policyholders).

1-2-3 Kaigan, Minato-ku, Tokyo 105-0022, Japan
http://www.td-holdings.co.jp/en/ E-mail: csr@td-holdings.co.jp

FOR ALL THE LIFE ON EARTH

Data Edition

We are considerate of biodiversity

We practice Green Purchasing.

T&D Life GroupSpecial Features

Contents

Outline of the
T&D Life Group

1. T&D Life Group’s Corporate Responsibility.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 11
2. Outline of the Organization.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 13
3. Outline of Businesses.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 15
4. Business Overview.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 16

Management

1. Corporate Governance .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 17
2. Corporate Management .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 20
3. Risk Management.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 20
4. Compliance.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 22
5. Communication.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 23
6. Socially Responsible Investment and Principles for Financial Action
towards a Sustainable Society.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 25

Social Aspects

1. Together with Our Customers.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 27
2. Together with Our Employees.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 35
3. Growing with Society.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 38
4. For Global Environment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 42
Independent Assurance Report.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 44
GRI Sustainability Reporting Guidelines version 3.1 Content Index.. . . . . . . . . . . . . . P. 45
Third-party Opinion.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Back cover

About Corporate Responsibility Report 2014

Numbers at the top right of each section (e.g. 3.1 ) indicate the corresponding
number of the G3.1 GRI Guidelines, which can be found at the end of this report.

3.1

Report Publication Information
Published in

November 2014 (Previous Issue: November 2013; Next Issue: Scheduled for October 2015)

Scope of report

All companies and foundations in the T&D Life Group

3.2

3.3

3.6

3.7

*Contents of this report are selected taken into account the importance of each item, and we indicate the scope of each item as necessary.

Period covered

April 2013 to March 2014 (annual)*Also includes reports on some significant activities and events having occurred in and after April 2014.

For further information, please contact the following organization

3.4

CSR Group, Group Planning Department, T&D Holdings, Inc. 1-2-3 Kaigan, Minato-ku, Tokyo 105-0022, Japan E-mail: csr@td-holdings.co.jp

3.13

Third-party Opinion

Professor Takeshi Mizuguchi of Takasaki City University of Economics, an expert in environmental accounting and socially responsible investment who has
extensive knowledge regarding CSR, provides a third-party opinion and advice on this report.

3.5

Editorial Policy
This report was prepared with the aim of providing stakeholders with aclear picture about the concept and approach to corporate responsibility
adopted by the T&D Life Group.
In order to help stakeholders better understand the activities of the Group,
we have created two versions of our Corporate Responsibility Report 2014,
as we did for the 2013 report: Focus Edition and Data Edition. Focus Edition,
focusing on issues and activities of particular interest to stakeholders aswell as on information and messages that the Group would particularly
like to communicate, is designed to include photos and illustrations toenhance approachability and readability. The Data Edition comprehensively

1

T&D Life Group Corporate Responsibility Report 2014

reports on the Group’s activities related to management, society, and theenvironment, in accordance with the GRI Guidelines as much as possible.
Outline of Focus Edition❍ Value Creation Process of the T&D Life Group❍ Special Feature: Unique strengths of the T&D Life Group❍ Major Contribution Activities for Local Communities and Society❍ Compliance and Communication❍ Promotion of the Group’s CSR Activities and Status of Activities❍ Message from President❍ Third-party Opinion/Response to Third-party Opinion

Item

Indicator

Pages in this report

Aspect: Indigenous Rights
HR9
ADD Total number of incidents of violations involving rights of indigenous people and actions taken.
HR10
CORE Percentage and total number of operations that have been subject to human rights reviews and/or impact assessments.
HR11
CORE Number of grievances related to human rights filed, addressed, and resolved through formal grievance mechanisms.
Society
Disclosure on Management Approach
Society
Aspect: Local Communities
SO1
CORE Percentage of operations with implemented local community engagement, impact assessments, and development programs.
SO9
CORE Operations with significant potential or actual negative impacts on local communities.
and mitigation measures implemented in operations with significant potential or actual negative impacts on local
SO10
CORE Prevention
communities.
Aspect: Corruption
SO2
CORE Percentage and total number of business units analyzed for risks related to corruption.
SO3
CORE Percentage of employees trained in organization’s anti-corruption policies and procedures.
SO4
CORE Actions taken in response to incidents of corruption.
Aspect: Public Policy
SO5
CORE Public policy positions and participation in public policy development and lobbying.
SO6
ADD Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country.
Aspect: Anti-Competitive Behavior
SO7
ADD Total number of legal actions for anticompetitive behavior, anti-trust, and monopoly practices and their outcomes.
Aspect: Compliance
SO8CORE Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with laws and regulations.
Product Responsibility
Disclosure on Management Approach
Product Responsibility
Aspect: Customer Health and Safetycycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of
PR1
CORE Lifesignificant products and services categories subject to such procedures.
number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of
PR2
ADD Total
products and services during their life cycle, by type of outcomes.
Aspect: Product and Service Labelingof product and service information required by procedures, and percentage of significant products and services subject to
PR3
CORE Typesuch information requirements.
number of incidents of non-compliance with regulations and voluntary codes concerning product and service
PR4
ADD Total
information and labeling, by type of outcomes.
PR5
ADD Practices related to customer satisfaction, including results of surveys measuring customer satisfaction.
Aspect: Marketing Communications
for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising,
PR6
CORE Programs
promotion, and sponsorship.
number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications,
PR7
ADD Total
including advertising, promotion, and sponsorship by type of outcomes.
Aspect: Customer Privacy
PR8
ADD Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.
Aspect: Compliancevalue of significant fines for noncompliance with laws and regulations concerning the provision and use of products
PR9
CORE Monetaryand services.
Financial Services Sector Specific Disclosure on Management Approach
FS1
CORE Policies with specific environmental and social components applied to business lines.
FS2
CORE Procedures for assessing and screening environmental and social risks in business lines.
for monitoring clients’ implementation of and compliance with environmental and social requirements included in
FS3
CORE Processes
agreements or transactions.
for improving staff competency to implement the environmental and social policies and procedures as applied to
FS4
CORE Processes
business lines.
FS5
CORE Interactions with clients/investees/business partners regarding environmental and social risks and opportunities.
FS6
CORE Percentage of the portfolio for business lines by specific region, size (e.g. micro/SME/large) and by sector.
FS7
CORE Monetary value of products and services designed to deliver a specific social benefit for each business line broken down by purpose.
value of products and services designed to deliver a specific environmental benefit for each business line broken
FS8
CORE Monetary
down by purpose.
FS9
CORE Coverage and frequency of audits to assess implementation of environmental and social policies and risk assessment procedures.
and number of companies held in the institution’s portfolio with which the reporting organization has interacted
FS10
CORE Percentage
on environmental or social issues.
FS11
CORE Percentage of assets subject to positive and negative environmental or social screening.
polic(ies) applied to environmental or social issues for shares over which the reporting organization holds the right to
FS12
CORE Voting
voting shares or advises on voting.
FS13
CORE Access points in low-populated or economically disadvantaged areas by type.
FS14
CORE Initiatives to improve access to financial services for disadvantaged people.
FS15
CORE Policies for the fair design and sale of financial products and services.
FS16
CORE Initiatives to enhance financial literacy by type of beneficiary.

Not applicable23
11, 38–42

21
23
Not applicable

Outline of the T&D Life Group

Major Data for the T&D Group.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 3
Unique Strengths of the T&D Life Group.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 9

ADD: “Additional indicator,” meaning an indicator for a new theme or a theme important to certain organizations.

Not applicableNot applicable11, 27–34

Management

Special Features

CORE: “Core indicator,” meaning an indicator that most stakeholders are interested in.

7, 27–34
Not applicableNot applicable
5, 7, 24, 28–31
32
Not applicableNot applicable

Social Aspects

Message from President.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 2—: No information in this report. However, this report does not cover all the activities of the Group.

Not applicable11, 22, 42
21
22–24, 34–36, 44
24–25, 27
15–16
15–16, 3144
19
26
Not applicable33
31–32
24, 41

T&D Life Group Corporate Responsibility Report 2014 48

AppendixContents/About Corporate Responsibility Report 2014.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 1

Message from President

1.1

1.2

Solving social issues through business activities
is our responsibility
Ten years have passed since the T&D Life Group companies
were unified as one life insurance group under the umbrellaof T&D Holdings. Over the decade, we have been confronted
with very difficult situations, such as the global economic
turmoils and the Great East Japan Earthquake. At suchdifficult times, however, our Group has worked together toaddress the challenges, with individual group companies
using their ingenuity and learning from each other.
The most remarkable characteristic of the T&D Life Groupis that its three core life insurance companies, Taiyo Life,
Daido Life and T&D Financial Life, are providing unique life
insurance products via different channels in completely
different markets, namely, the household market, small andmedium enterprise market, and financial institutions andother agencies market.
Guided by the Group’s corporate philosophy: “With our ‘Try
& Discover’ motto for creating value, we aim to be a groupthat contributes to all people and societies,” each of the T&D
Life Group companies deploys its own businesses under
the common Group management vision. While we sharethe same corporate philosophy and vision as a major life
insurance Group, our individual member companies havecontinued to demonstrate a high level of uniqueness andexpertise. As a result, we have built a strong foundation forsteady growth of the T&D Life Group.
In the past 10 years since we gathered under T&D Holdings
until now, each of the Group companies has provided
products and services rich in their originality. Also, by
promoting various unique CSR activities, we have responded
to a wide range of stakeholders’ expectations and thereby
earned stakeholders’ trust while contributing to solvingsocial issues. Working in such a broad domain is a uniquestrength of the T&D Life Group.
Japan is now facing various challenges that havesurfaced from the emergence of aging society with fewer
children. Those issues involve the slowdown of economic
growth, change of views on life and work style, and theadvancement of medical care. Confronting these issues,contemplating solutions and making such solutions available
to a wide range of stakeholders, including customers: these
are the actions we are taking toward the realization of ourGroup management philosophy.
In 2014, the T&D Life Group companies signed on to the
Principles for Financial Action for the 21st Century andexpressed their intention to promote actions for creating asustainable society through their own businesses.
The T&D Life Group intends to help solve various emerging
social issues that affect individuals, households andenterprises by providing, via our Group companies, uniquelife insurance products and services. At the same time, forcommunity issues and environmental protection, we will
fulfill our responsibility through a wide range of businessactivities initiated at the company level.
Such measures, as noted above, are executed by individualcompanies within the Group, including the holding
company, as well as by the executives and employees
working at those companies. In order to promote CSR
activities on a group-wide basis, we established theGroup CSR Committee in 2011. The committee confirms
the progress of activities at the end of each fiscal year
and formulates the action policy of the Group for thefollowing year. By executing measures and checking theirprogress, we can ensure that the whole Group is thoroughly
implementing the PDCA cycle. We are managing our CSR
activities to ensure that each of our Group companies as wellas our executives and employees take effective steps toward
solving social issues.
We wish to grow as a Group that can contribute topeople and communities by fulfilling our corporate social
responsibility through our own unique efforts that the T&D
Life Group can make toward solving various issues.

Kenji Nakagome
Representative Director and President
T&D Holdings, Inc.

T&D Life Group Corporate Responsibility Report 20142

Major Data for the T&D Life Group

Input
Capital and resources invested for value generation
T&D Holdings, Inc. Shareholders

2.6

Total number of issued shares (unit: 1,000 shares) 681,480
Proportion of Shares Held (as of March 31, 2014)
Financial
institutions

Shareholder category

Financial productdealers

Other
corporations

Foreigncorporations, etc.

Individuals andothersTotal

No. of shares held (1,000 shares)

190,308

10,291

147,188

280,82152,868681,480

Proportion of shares held (%)

27.93

1.51

21.60

41.21

7.76

100.00* Figures for the proportion of shares held are rounded off to two decimal places.

Principal Shareholders (as of March 31, 2014)
No. of shares held
(1,000 shares)

Name

Percentage of shares held vsoutstanding shares (%)

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

36,926

5.42

Japan Trustee Services Bank, Ltd. (Trust Account)

34,828

5.11

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

21,049

3.09

The Bank of New York Mellon SA/NV 10

12,417

1.82

RBC IST OMNIBUS 15.315 PCT NON LENDING ACCOUNT

11,881

1.74

The Bank of New York, Non-Treaty JASDEC Account

11,242

1.65

The Chase Manhattan Bank, N.A. London S.L. Omnibus Account

9,488

1.39

Japan Trustee Services Bank, Ltd. (Trust Account 1G)

8,425

1.24

Komatsu Ltd.

8,167

1.20

Japan Trustee Services Bank, Ltd. (Trust Account 5G)

7,869

1.15

162,296

23.82

Total
* In addition to above, the T&D Life Group holds 9,212,000 treasury shares (1.35%).

Group Environmental Performance Targets and Results
Scope of the environmental impact data is defined on page 4, “Environmental Performance Data and Scope of Group-wide Targets.”
FY 2013 data ( ) meet the International Standard on Assurance Engagements (ISAE) 3000 and 3410 (International Federation of Accountants) as certified
by Ernst & Young Sustainability Co., Ltd.

Electricity Consumption

EN4 EN5 EN7Baseline: FY 2009 value (Electric consumption per unit of floor space)<Target>Five-year average of FY 2013 to FY 2017 at least 10% below baseline value(123 kWh/m2)
Electricity consumption(1,000 kWh)
Total floor space(1,000 m2)
Per unit of floor space(kWh/m2)
Compared to baseline(FY 2009)

Average value at theend of FY 2013

Baseline

FY 2013

68,16353,89853,898

554

531

531

123

101

101

–22

—

82.5%

82.5%

–17.5

* Making steady progress toward the target as of the end of FY 2013 (17.5% reduction).
* Electricity consumption target is set only for the Group’s core companies.
* Scope of electric consumption and floor space: Floor space owned, leased and used by theholding company and core Group companies, excluding the area used by tenants.
* The average floor space of the fiscal year shall be used in cases where the total floor spacechanges over the course of the year.

3

T&D Life Group Corporate Responsibility Report 2014

Office Paper Consumption

EN1

Baseline: Five-year average until FY 2008
<Long-term Target>
Cut five-year average from FY 2009 to FY 2013 by 5% compared to the baseline
value (234 t).
FY 2011

FY 2012FY 2013

Latest 5-year
average

184 t

162 t

163 t

183 t

* Both FY 2013 actual and the latest 5-year average achieved FY 2013 target (196 t) and long-termtarget (222 t).

Green Purchasing Ratio<Target>Keep the green purchasing ratio for office supplies and stationary at minimum of 80%.
FY 2011

FY 2012FY 2013Compared totarget

95.9%

95.7%

95.4%

+15.4%

Special Features
2 (including one female)Outside directors’role

They are involved in the deliberation of
agenda at the Board meetings based upon
their specialist knowledge in their capacities
as a lawyer and a university professor.

Number of Audit &Supervisory Board Members 4
Audit & supervisoryboard members
Male
FemaleOutside audit &supervisory board
members
Outside audit &supervisory board
members’ role

related businesses
Investment-related
businesses
Administration-related
businesses
Total

11
10
1

Outside directors

4

875

(277)

20,982 (2,178)

No. of employees

826

(191)

471

(31)

802

(160)

19,868 (1,697)

No. of employees hired
FY 2012FY 2013

19,863

19,45518,806

3,767

4,139

Male

4,197

3,991

3,852

182

101

111

Female15,666

15,464

14,954

3,585

4,038

3,691

12,79012,79912,436

3,610

4,022

3,650

477

419

376

53

36

26

12,313

12,38012,060

3,557

3,986

3,624

3,802

534

453

369

0

0

0

6,539

6,203

6,001

157

117

152

Male (Managers)

3,720(2,097)

3,572(2,059)3,476(2,064)

129

65

85

Female (Managers)

2,819
(258)

2,631
(261)

2,525
(265)

28

52

67

* Managers include section heads at head offices, deputy office heads and assistants to directors and other executives.

FY 2011
FY 2012FY 2013
Electricity consumption 109,570 MWh 106,440 MWh 99,302 MWh
Water consumption
79,500 m378,600 m3
73,900 m3(Utility + Reclaimed water)
Reclaimed water
24.3%
24.7%
25.0%
usage rate

Group environmental performance data
CO2 *Electricity

*2

*2

EN4

EN8

EN10

* Scope of the environmental performance data is defined in“Environmental Performance Data and Scope of Group-wide
Targets” below.
* MWh=1,000 kWh* FY 2013 data ( ) meet the International Standard on Assurance
Engagements (ISAE) 3000 and 3410 (International Federation of
Accountants) as certified by Ernst & Young Sustainability Co., Ltd.

Environmental Performance Data and Scope of Group-wide Targets

1

(36)

FY 2011

Environmental Performance Data (Electricity and water consumption)

Electricity consumption
99,302 MWh
Water consumption
73,900 m3

460

20,497 (1,951)

No. of employees
March 31, 2012 March 31, 2013 March 31, 2014

FemaleNumber of customer
service staff
Administrative staff

The outside audit & supervisory board
members offer advice during deliberationof agenda items at meetings of the Boardof Directors, etc. based upon their specialist
knowledge in their capacity as lawyers.

(34)

l Number of employees and number of people hired by the Group’s three life
insurance companies

Male

2

501

* The number of employees shows the number of employed staff excluding executive officers.
The number of part-time workers is shown in parentheses as an annual average, which is notincluded in the number of employees.

Sales representatives

4
0

LA13

Number of l Number of employees (T&D Holdings, consolidated)
Business sector
March 31, 2012 March 31, 2013 March 31, 2014
employees Insurance and insurance- 19,606 (1,867) 19,211 (1,724) 18,595 (1,506)

19,868President

LA1

Outline of the T&D Life Group

Chairman of theboard of directors
Directors
Male
Female2.8

Management

Number of Directors 11

Number of Employees

3.6

3.7

Social Aspects

Board of Directors and 4.3 4.6
Audit & Supervisory Board Members

3.9 3.11

Group-wide targets

Water

Waste

*3

*3

*3

*3

Electricity

Office paper

Green purchasing ratio

T&D Holdings

All sites
Headquarters

Appendix

Taiyo Life, Daido Life, T&D Financial Life

T&D Asset Management
T&D Information Systems= data covered*1 In accordance with the Greenhouse Gas Emission Volume Calculation, Reporting, and Disclosing System, the figures were calculated by multiplying the measured energy input by the predeterminedcoefficient.
*2 Electricity consumption values for Taiyo Life and Daido Life were calculated in accordance with the law on the rationalization of energy consumption. Therefore, the electricity consumption and CO2
emissions include the consumption and emission by third-party tenants in the buildings owned by those companies.
*3 The scope is limited to key locations only (Shiodome Shiba-Rikyu Building, Daido Life Osaka Head Office Building and Taiyo Life Urawa Building).
Water and waste from the Shiodome Shiba-Rikyu Building include water used and waste generated by restaurants, retail stores and other establishments that are not operated by the Group.

T&D Life Group Corporate Responsibility Report 2014

4

Business Activities & Output
Business Activities and Major Products
A Unique Business Model Established in Three Markets

Household market

Small and medium
enterprise (SME) market

Channel: In-house sales representatives
Products:	Comprehensive coverage
centered on death protection
and medical/nursing careproducts.

Channel: In-house sales representatives
	Agents (tax accountants, etc.)
Products:	Term life insurance (covering
death), disability income
insurance, etc.

2.2

OTC sales at financial
institutions and otheragents market
Channel:	Independent insurance agents	(Financial institutions,insurance shop agencies)
Products:	Single premium products andincome protection insurance,
etc.

Customer Service Improvement Activities
Collecting customer feedback andidentifying social issues and needs

Generating new
ideas by analysis andinternal sharingn Informal meetings with customers
n Website n Survey
n Information gatheringn Visits by sales representativesn Call center

2.7

4.16

PR5

Implementation of ideas
and providing customers
with satisfying products
and services

Enhancement of Corporate Value with ERM*1

PurposeTo promote stable and sustainable enhancement of the Group’s corporate value through ERM*1(integrated management of profit, risk and capital)

Promote management toward theimprovement of “Capital efficiency”
on top of “Capital adequacy”

Stable and continuous
enhancement of
the Group’s corporate value

Capital adequacy (Soundness)l Securing the appropriate level of capitall Proper management of risks

Capital efficiency (Profitability)
l Improving ROEV (Growth rate of EV* )2

Capital adequacy

EV*2 growthl Proper management of capital*1 ERM stands for Enterprise Risk Management and refers to a strategic corporate management approach that seeks to increase corporate value and maximize profit through the integrated management of profit,
risk and capital.
*2 EV, Embedded Value, is one of the indicators of corporate value of life insurance companies.

5

T&D Life Group Corporate Responsibility Report 2014

Special Features

OutcomeT&D Life Group’s Financial Results
Financial Performance of the Group

2.8

EC1

Year ended March 2012

Year ended March 2013

Year ended March 2014

2,104.1

2,418.9

2,085.7

1,691.2

1,940.9

1,609.7

Ordinary profit

120.8

151.6

186.2

Net income

26.7

63.7

(Billion yen)

Ordinary revenues
Income from insurance premiums

Outline of the T&D Life Group

Consolidated operating results

78.9

Consolidated balance sheet data

(Billion yen)

Total assets

12,861.0

13,668.7

13,804.2

Net assets

685.5

919.7

1,020.3

Consolidated net income per share

39.41

94.52

117.42

Consolidated net assets per share

1,013.54

1,360.15

1,513.46

22.50

22.50

Per share information

(Yen)

Annual dividend per share (T&D Holdings)

25.00(Billion yen)

Policy amount in force

58,414.6

59,221.2

59,506.8

New policy amount

6,349.6

6,722.4

6,167.0

Core profit (loss)

144.9

182.4

210.2

4.1

8.0

8.2

Return on equity (consolidated) (%)

Management

Management indicators * Management indicators other than ROE are the aggregate of non-consolidated business results of Taiyo Life, Daido Life and T&D Financial Life. Amounts of policies in force and new policies are the total ofindividual insurance and individual annuities.
* Core profit is a performance indicator used by life insurance companies. It shows basic profit and loss status during the period, consisting of the insurance-related component i.e. income from insurance premiums
minus payments of insurance benefits and business expenses, and the investment-related component, mainly income from interest and dividends. It is similar to the operating profits of general businesscompanies and net business profits of banks.

1,609.7 billion yen(Billion yen)
2,000
1,691.2(Consolidated)

1,609.7

40
1,000
0

Year
ended
Mar. 2013

0

Year
ended
Mar. 2014

210.2 billion yen
150

50

Year
ended
Mar. 2012

Year
ended
Mar. 2013

0

Year
ended
Mar. 2014

As ofMar. 31,2012

EC1(Billion yen)

Net asset value of noncovered business*3
Value of new business

210.2
182.4
144.9

50

Group MCEV*1 1,970.1 billion yen

MCEV of covered business*2(Billion yen)
200

100

26.7

Corporate Value (MCEV*1)

Group MCEV*1

59.5

59.2

(Three life insurancecompanies combined)

55

20
Year
ended
Mar. 201259.5 trillion yen(Trillion yen)
60
58.4

78.9
63.7

60

1,000

Core Profite(Three life insurancecompanies combined)

78.9 billion yen(Billion yen)80

1,940.9

Policy Amount in Force

Social Aspects(Consolidated)

Net Income

As of Mar. 31
2012

As of Mar. 31
2013

As of Mar. 31
2014

Change fromprevious year

1,543.0

1,664.4

1,970.1

305.7

1,516.7

1,638.0

1,943.4

305.3

26.3

26.4

26.7

0.3

68.3

61.6

89.1

27.5

*1 MCEV stands for Market Consistent Embedded Value, and is one of the indicators of corporate value of life insurancecompanies.
*2 MCEV of the Group’s life insurance business*3 Net asset value of the Group’s businesses other than life insurance, calculated based on Japanese GAAP

Please visit the T&D Holdings website for details.
(URL: http://www.td-holdings.co.jp/en/ir/finance/data/)

As ofMar. 31,
2013

As of
Mar. 31,
2014

0

Year
ended
Mar. 2012

Year
ended
Mar. 2013

Year
ended
Mar. 2014

Shareholder Returns

EC1

Annual cash dividend
per share 25.00 yenn History of Annual
Cash Dividendper Share* In order to improve shareholderinterest, the Group has beenacquiring its own sharesamounting to approximately
5 billion yen in FY 2011,
3 billion yen in FY 2013, and10 billion yen in the first half of
FY 2014 in addition to payment
of dividends.

(Yen)
30
22.50

22.50

25.00

Appendix

Income from
Insurance Premiums

20
10
0

Year
Year
Year
ended
ended
ended
Mar. 2012 Mar. 2013 Mar. 2014

T&D Life Group Corporate Responsibility Report 20146

Outcome
T&D Life Group’s Financial Results
Solvency Margin Ratio

EC1

Consolidated 1,115.0%(Unit: %)As of Mar. 31, 2012

As of Mar. 31, 2013

As of Mar. 31, 2014

Taiyo Life (non-consolidated)

747.3

823.4

981.3

Daido Life (non-consolidated)

851.9

1,043.2

1,156.4
1,051.2

T&D Financial Life (non-consolidated)

553.7

648.4

Pet and Family Small-amount Short-term Insurance (non-consolidated)

979.8

543.5

305.9

T&D Holdings (consolidated)

810.6

943.8

1,115.0

Credit Ratingsn Definitions of Ratings(As of July 23, 2014)

Rating Agency

Taiyo Life

Daido Life

T&D
Financial LifeJapan Credit Rating Agency (JCR)

A+

A+

A+

Rating and Investment Information (R&I)

A+

A+

A+

Standard & Poor’s (S&P)

A

A

Fitch Ratings (Fitch)❍ Japan Credit Rating Agency (JCR) <Insurance Claims Payment Ability Ratings>
Rating A: Strong ability to honor financial commitments on obligations.
❍ Rating and Investment Information (R&I) <Insurance Claims Payment Ability>
Rating A: Strong ability to pay insurance claims and excellence in some evaluation factors.
❍ Standard & Poor’s (S&P) <Insurer Financial Strength Ratings>
Rating A: The insurance company has strong ability to honor commitments on obligations but issomewhat more likely to be affected by adverse business conditions than insurers withhigher ratings AAA and AA.
❍ Fitch Ratings <Insurer Financial Strength Ratings>
Rating A: High level of payment ability. Unlikely to suspend or stop payments and has strong
ability to fulfill its obligations to insurance policyholders and other contract obligations
without delay. However, it may face a stronger possibility of being affected by changes
in business or economic conditions than insurers with higher ratings.
❍ Moody’s Japan <Insurer Financial Ratings>
Rating A: Upper middle rank for debt with low credit risk

A+

Moody’s Japan (Moody’s)

A2

Disclaimer: The above ratings represent the opinions of credit rating agencies and do not guarantee
any actual payment of insurance claims. These ratings are based on numerical figuresand other data as of a certain date and may change in the future. The rating agencies
listed above are independent third-party organizations and the definitions of ratings arethose made public by each rating agency. The plus (+) and minus (−) signs or figures(2), etc. following the ratings show relative standings within the major rating categories.
All ratings were obtained through formal requests to the rating agencies by the Group’s
three life insurance companies.

Customer Feedbackn Breakdown of Customer Complaints

PR1* In our definition, “complaint” refers to an expression of customer dissatisfaction in regard to the company’s operation.

Taiyo Life

(Units: no. of complaints received; proportion: %)Complaints on
New contracts
Payment of premiums
Procedures after making a contract
Insurance claims and benefits
Others

FY 2011
No. of complaints
3,273
1,062
1,333
2,694
3,573

Total

%
27.4
8.9
11.2
22.6
29.9

11,935100.0

FY 2012
No. of complaints
3,196
716
1,033
2,291
2,287

%
33.6
7.5
10.8
24.1
24.0

9,523

100.0

Daido Life

FY 2013
No. of complaints
2,813
631
1,396
2,304
1,735

%
31.7
7.1
15.7
26.0
19.5

8,879

100.0

(Units: no. of complaints received; proportion: %)Complaints on
Purchase of life insurance policy
Payment of premiums
Procedures after making a contract
Payment of insurance claims and benefits
Other

FY 2011
No. of complaints
1,762
1,321
3,922
2,256
1,939

Total

11,200Complaints on

FY 2011
No. of complaints

15.7
11.8
35.0
20.1
17.3

FY 2012
No. of complaints
1,660
1,141
3,571
2,165
2,113

100.0

10,650

%

15.6
10.7
33.5
20.3
19.9

FY 2013
No. of complaints
1,698
1,143
4,077
2,149
2,598

100.0

11,665%

T&D Financial Life

%
14.6
9.8
35.0
18.4
22.3
100.0

(Units: no. of complaints received; proportion: %)New contracts
Payment of premiums, etc.
Procedures after making a contract
Insurance claims and benefits
Others
Total

7

PR5

T&D Life Group Corporate Responsibility Report 2014

155
90
611
285
449
1,590

FY 2012
No. of complaints

%

9.7
5.7
38.4
17.9
28.2
100.0

187
40
533
222
324
1,306

FY 2013
No. of complaints

%

14.3
3.1
40.8
17.0
24.8
100.0

152
32
415
516
205
1,320

%

11.5
2.4
31.4
39.1
15.5
100.0

Special Features

Insurance Payout Amount

Total

Insurance claim

Benefit(hospitalization, surgery, etc.)

Annuity

Total

Group’s three life
insurance companies

382.2 billion yen

192.4 billion yen

460.4 billion yen

1,035.1 billion yen

LA2

LA6

Workplace Data (Group’s three life insurance companies combined)l Workplace Data
Employment rate for persons with disabilities (%)

LA4

LA13

l TurnoverFY 2011

FY 2012FY 2013

1.96

2.04

2.15

Turnover (number)

FY 2011

FY 2012FY 2013

388

419

365

No. of employees taking maternity leave

191

213

236

Voluntarily turnover

242

301

206

No. of employees taking childcare leave

235

247

273

Male

206

221

199

Male

76

51

71

81

116

57

Female

159

196

202

6

5

11

Male

1

0

0

Female5511No. of employees taking nursing-care leave

Average number of paid vacation days taken*

11.1

10.3

10.3

Rate of unionization (%)*

80.5

80.5

81.4

Voluntarily turnoverFemaleVoluntarily turnover

182

198

166

161

185

149

Management

1,035.1 billion yen

FY 2013

Outline of the T&D Life GroupEC1* Number of administrative staff at the Group’s three life insurance companies who left.
* The number of turnover includes those who left the company upon reaching the compulsory
retirement age, took up an executive position or passed away, etc.

* Average number and rate of administrative staff at the Group’s three life insurance companies.

Environmental Performance Data (CO2 emissions)

For the scope of the Group’s environmental
performance data, please refer to“Environmental Performance Data and Scopeof Group-wide Targets” on page 4.

FY 2013

FY 2011

FY 2012

Indirect CO2 emissions(GHG Protocol Scope 2)

44,366 t

54,184 t

57,520 t

Direct CO2 emissions(GHG Protocol Scope 1)

2,517 t2,598 t2,388 t46,883 t

56,782 t

59,908 t

Total

Social Aspects

Total 59,908 t

EN16 EN18* FY 2013 data ( ) meet the International Standard on Assurance Engagements (ISAE) 3000 and 3410 (International Federation of Accountants) as
certified by Ernst & Young Sustainability Co., Ltd.

Final disposed amount
211 t
For the scope of the Group’s environmental
performance data, please refer to“Environmental Performance Data and Scopeof Group-wide Targets” on page 4.

(1) Paper waste

3.11

EN22

FY 2011

FY 2012FY 2013

Final disposed amount

56 t

71 t

141 t

Recycled amount

389 t

344 t

516 t

Total amount generated

445 t

415 t

658 t

(2) Wastes other than paper

FY 2011

FY 2012FY 2013

Final disposed amount

48 t

51 t

69 t

Recycled amount

99 t

100 t

136 t

Total amount generated

147 t

151 t

205 t

(3) Recycling rate

FY 2011

FY 2012FY 2013Paper waste

87.4%

82.9%

78.5%

Wastes other than paper

67.3%

66.2%

66.2%

Appendix

Environmental Performance Data (Waste generation)* Waste from the Taiyo Life Urawa Building has been included in the measurement since FY 2013.
* FY 2013 data ( ) meet the International Standard on Assurance Engagements (ISAE) 3000 and 3410 (International Federation of Accountants) as
certified by Ernst & Young Sustainability Co., Ltd.

T&D Life Group Corporate Responsibility Report 20148

Unique Strengths of the T&D Life GroupOur modern society is confronted with a range of issues. The T&D Life Group is sincerely facing up to these issues and conducting
a wide range of business activities, including provision of better products and services, that can help deal with them.

Toward a society where people
can live with total peace of mind
Social structure change� Population projection in Japan(1,000 people)
90,00080,000Social issues

60,000According to the government statistics, we predict that the social
structure will change from the conventional form of aworking-age population supporting older generations to one in

Actual

50,00030,000addition, while advances in medical care have extended average

20,000lifespans, we must prepare for the growth in medical costs and10,000nursing care needs.

Child population(Age 0 to 14)

0
1950

2.7

Projection

Aged population(Age 65 and older)

40,000which senior citizens will need to do more to help themselves. In

Efforts by the T&D Life Group

Working-age population(Age 15 to 64)

70,000

1960

1970

1980

1990

2000

2010

2020

2030

2040

2050

2060
(Year)

Source: “Population Projections for Japan (Projection in January 2012),” National Instituteof Population and Social Security Research

Each of the core life insurance companies of T&D Life Group provides a variety of products that limit risks and provide peace of mind to a wide rangeof customers through its own sales channels.

Taiyo Life

� Status of new policyholders by gender% based on the number of policies

Focusing on the household market, Taiyo Life provides
comprehensive protection-oriented insurance products covering
medical care, nursing care and death. In-house sales
representatives, who are themselves primarily responsible formanaging their own households, visit each customer at home andpropose the most suitable insurance products for the householdfrom the point of view of the homemaker. This approach has been
appreciated by many customers, particularly primary homemakers
who are responsible for the family budget.

Daido Life
Recognizing that, in line with the population aging, the retirement
age of small- and medium-sized business owners is generally
extended and that risks including becoming incapacitated are
thereby increasing, Daido Life is continuing its efforts to improve
its product lineup. Among its products, J-Type, designed to protect
companies in the event that the manager becomes serious disease(cancer, acute myocardial infarction or cerebral stroke), has provenparticularly popular among customers, making it a major product,second only to term life insurance.

T&D Financial Life
T&D Financial Life provides products to meet a wide range ofneeds, such as preparation for post-retirement life and protectionof surviving family members, through financial institutions andinsurance shop agents. The number of agencies is steadily
increasing, standing at 119 as of March of 2014.

Male
35.7%

Male
50.7%

64.3%

Source: Calculated internally based on the “Life Insurance Fact Book/Annual Statistics FY 2013”
published by the Life Insurance Association of Japan� J-Type new policy(Benefit paid for critical illness)

� J-Type policy in force(Benefit paid for critical illness)(100 million yen)(100 million yen)

5,000

4,728

4,364

3,000

11,92912,00010,000

4,000
2,813

7,752

8,000
6,000
3,654

2,000

4,000

1,000
0

2,000
FY 2011

FY 2012FY 2013

0 End of FY 2011 End of FY 2012 End of FY 2013

� Number of T&D Financial Life’s agencies
Numberof agency
150

OthersInsurance shop agents (including franchise agents)
Securities firms
Local banks
Credit unions
Major banks/Trust banks in Japan
119
1
107
1
85

100
68
14

0

T&D Life Group Corporate Responsibility Report 201449.3%

Female50

9Industry total Female

Taiyo Life

2
5

70
14

1
5

17
15

22

5

15

5

69

62

56

42

39

15

1
5

8

8

8

7

7

End of March2010

End of March2011

End of March2012

End of March2013

End of March
2014

Special Features� Trend of greenhouse gas emissions (FY 1990-2012)
SF6: Sulfur hexafluoride
N2O: Dinitrogen oxide

Outline of the T&D Life Group
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
(FY)
Source: National Institute for Environmental Studies,
Greenhouse Gas Inventory Office

The T&D Life Group has been promoting environmental activities
through its daily operations by reducing consumption of power
and office paper, and improving its green purchasing ratio. In July
2014, T&D Holdings and all of its direct subsidiaries signed on to

Daily
environmental
activities

Forestconservation
activities

the Principles for Financial Action for the 21st Century.

Toward a society where everybody
has an active role to play

Signing on to
the Principles for
Financial Action
for the 21stCentury

Management

Efforts by the T&D Life Group

1999

0

1998

800

1997

build a sustainable society.

1996

of the most critical issues that must be addressed in order to1995

two facts make the preservation of the global environment one

1,000

1994

has increased by around 1.14°C over the past 100 years. These1993

by 6.5% in Japan. Meanwhile, the average temperature in Japan

HFCs: Hydrofluorocarbons
CO2: Carbon dioxide

1,200

1992

Protocol, total greenhouse gas emissions in fiscal 2012 increased1991

As compared to the base year values set under the Kyoto

PFCs: Perfluorocarbons
CH4: Methane

1,400

1990

Social issues

Greenhouse gas emissions (million tons of CO2 equivalent)Protection of the global environment

Base year of
the Kyoto Protocol

Toward a sustainable society� Trial calculation of the increase in the female labor force
population through the elimination of the M-shaped curve(%)
100

Respect for human rights

90

70Social issues

60

The number of women who wish to work but are not employed is50

approximately 3.45 million, which is nearly threefold that of men. These figures40

are particularly notable for women in their 30s and 40s. In terms of30

opportunities for women to make active contributions, the ratio of female

20

administrative and managerial workers, such as section managers or above in10

the private sector and managerial positions in the public sector is lower than0

Age Age Age Age Age Age Age Age Age Age Age
15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65
andSource: “White Paper on Gender Equality 2010,” Cabinet Officeabove

The three life insurance companies of the T&D Life Group havebeen working to create workplaces that provide opportunities forall employees to pursue job satisfaction and demonstrate their full� Key measures of the Group and threelife insurance companies
Promoting work-life balance

G Started “all lights out” at night in the head office building
T Introduced the support program for returning

to work after childcare leave

2008

system with no core hours

2011
and return towork systems(Up to three years old)
G Introduced short working hours(Up to enrollment inelementary school)

corporate environment that allows women to pursue their career

2013
D Integrated and reorganized job groups

2011

without interruption by raising awareness via Group-wide seminars

G Established a working groupand providing career development opportunities through human2007

from home”

T Introduced a flextime

D Introduced family transfer

G Extended childcare leave

reduced work hours. In particular, the Group aims at creating a

active participation across the entire Group.

2014

G Promoted the use of childcare leave by men (Paid childcare leave available for two weeks)

introducing programs to support work-life balance and promoting

D Daido Life
F T&D Financial Life

D Introduced “working

2006

capabilities by revising their personnel and compensation systems,

resource exchanges, and promotes work-life balance and women’s

G T&D Life GroupT Taiyo Lifefor promoting theactive participation of womenTerminated the job grade system andreorganized into “nationally hired” and“locally hired” based on the possibilityof relocation only

T Revised the personnel system for the clerical track

2006
F

Introduced the area career track and the job category switch system

Integrated job groups
Integrated the job groups of the career track and the clerical track

Promoting the active
participation of women

T&D Life Group Corporate Responsibility Report 2014 10

Appendix

the international standards.

Efforts by the T&D Life Group

1) Labor force participation rate (actual)2) Labor force participation rate
(if M-shaped curve is eliminated)

Social Aspects

80Outline of the T&D Life Group
1. T&D Life Group’s Corporate Responsibility
1–1

The T&D Life Group and its Stakeholders

4.14

Customers
Shareholders/
Investors
Providing appropriate
returns on
investments
Regional
Communities/
Society

Providingbetter products
and services

Sales
AgentsPartnering formutual cooperationand prosperity
Business
Partners

T&D Life Group
Activities contributing toFair dealings
society as a community
memberEffective and highly transparent corporate governanceThorough compliance
Proactive communication
Government
Employees
Entities
Playing a publicrole in society

1–2

Environment
Protecting the environment,
everyone’s home

Providing workplaces thatmake work meaningful
and pleasurable

Basic Concept of our Corporate Responsibilities

4.8

T&D Life 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.

Group Management Vision
From the perspectives of customers
We aim to be the top insurance company in terms of customer satisfaction by providing the best products and services.
From the perspectives of shareholders, investors and financial market
We aim to be a major life insurance group with a strong market presence by increasing our corporate value in a steady and sustainable manner bytaking on new challenges toward growth.

Group Fundamental Strategies
1. To provide products and services tailored to customer needs accurately and quickly in a kind and polite manner.
2. To maintain and develop the Group management to maximize the individual strengths of each Group company within the Group.
3. To establish an integrated management system of profit, risk, and capital for stable and sustainable EV growth.
4. To achieve the mid- and long-term growth of the Group by expanding the life insurance business and entering into new business areas
through alliances and M&As.
5. To fulfill our public mission as a life insurance business and our corporate social responsibilities for the broader society including customers
and shareholders.

Group CSR Charter

FS1

The T&D Life Group is firmly committed to fulfilling the public mission of life insurance and other businesses and to undertaking its corporate social
responsibilities based on its management philosophy and by achieving sustainable growth along with society.
1. Providing Better Products and Services
The T&D Life Group will offer well-suited and high-quality products andservices that meet customer needs.
2. Strict Compliancel The T&D Life Group will strictly observe laws, regulations and rules, andact with integrity.
l The T&D Life Group will maintain and promote fair and free competition.
l The T&D Life Group will stand firmly against antisocial forces andgroups that may threaten the order or safety of civil society.
3. Respect for Human Rightsl The T&D Life Group will respect human rights, and make efforts toenlighten all its employees on human rights.
l The T&D Life Group will respect the individuality of all its employees, ensurea safe and rewarding work environment, and develop its human resources.

11 T&D Life Group Corporate Responsibility Report 2014l The T&D Life Group will respect privacy, and will strictly control andprotect personal information.
4. Communication
The T&D Life Group will widely disclose its management information in an
appropriate and timely manner to the public as well as to its customers andshareholders, and will actively strive to maintain a dialog with all its stakeholders.
5. Contribution to Communities and Societies
The T&D Life Group will implement social action programs as a good
corporate citizen, and will make contributions to the sound developmentof regional communities and society.
6. Global Environmental Protection
The T&D Life Group will carry out its activities with full awareness of theimportance of environmental concerns, and with sufficient consideration
given to global environmental protection.

Special Features

Prioritizing CSR Issues

3.5

Degree of significance

Degree of Impacts &expectations

Management[Internal relevance] T&D Holdings’s concerns(from business management perspectives)

At the T&D Life Group, which implements CSR activities in accordance with its CSR Charter, the Group CSR Committee determines priority
areas for each year based on materiality analysis in consideration of potential impacts of the activities on business. In identifying material areas
and their priority, a materiality matrix is created, from the perspectives of stakeholders represented in the questionnaire surveys conducted bymajor SRI rating agencies and from our business management perspectives identified by our Group through, for instance, employee surveys.
In the matrix for fiscal 2013, among those issues specified in the CSR Charter, “respect for human rights” and “global environmental protection”
emerged as high priority themes to be focused on as part of the Group’s efforts for the year.

[External relevance] Stakeholders’ perspectives

1–4

Outline of the T&D Life Group

1–3

Promotion Structure for the Group-wide Corporate Responsibility

4.9

The T&D Life Group has established a Group CSR Committee consisting mainly of directors in charge of CSR at each Group company. The CSR
promotion system has been reinforced to facilitate coordinated efforts by way of deliberation by the Group CSR Committee of Group-wide
CSR policies and initiatives, while still allowing for independent activities at each Group company.

l Director in charge of CSR at T&D Holdings
Sounosuke Usui, Representative Director and Vice
President
100% attendance at Board of Directors Meetings infiscal 2013
100% attendance at Group CSR Committee Meetingsin fiscal 2013

Social Aspects

n Organization
Organization
Structure
Structure
Board of Directors
Group Compliance Committee
President
Executive Committee
Group ERM Committee
Group Risk Management
Committee

Group Management Committee

Departments

Group CSR Committee
Group Information Technology
and Administration Committee

Appendixl Group CSR Committee
In order to enhance coordination of CSR activities
among Group companies and promote a unified
approach, the Group CSR Committee has been placed
directly under the Group Management Committee.
The Group CSR Committee is chaired by the presidentof T&D Holdings (representative director, chairman of
the Board of Directors Meeting), and vice-chaired by
the executive officer in charge of business planning
units. In fiscal 2013, the committee met three times.
Information shared and all issues discussed have beenreported to the Group Management Committee.

l Department in charge of CSR at T&D HoldingsGroup Planning Department (CSR Group), T&D Holdings

T&D Life Group Corporate Responsibility Report 2014 12

2. Outline of the Organization
2–1

Outline of the T&D Life Group’s Business

2.2

2.3

2.7

4.11

The T&D Life Group is a corporate group mainly comprising three life insurance companies (Taiyo Life, Daido Life, and T&D Financial Life)
under a group holding company, T&D Holdings. Taiyo Life, Daido Life and T&D Financial Life focus on the household market, the small to
medium enterprise market, and OTC life insurance sales through financial institution agents, respectively. These group companies support ourcustomers’ daily lives and business activities by fully utilizing their respective strengths and unique business models.
Group Structure

Strengthening the insurance business through synergy
T&D Asset Management

T&D Information Systems

T&D Customer Services

T&D Confirm

Pet and Family Small-amount Short-term Insurance

Other Group companies

Small and medium enterprise(SME) market

Household market

2–2

OTC sales at financial institutions
and other agents market

T&D Life Group Companies and Foundations

2.5

3.6

3.7

<Group companies> The T&D Life Group consists of T&D Holdings, 15 consolidated subsidiaries and 2 affiliated companies that are engaged inlife insurance and other businesses as described below.
(l : Consolidated subsidiaries ◆: Equity method affiliate companies)

T&D Holdings, Inc. http://www.td-holdings.co.jp/en/
Insurance andInsurancerelated
Businesses(7 companies)

Investmentrelated
Businesses(6 companies)

Insurance

Taiyo Life Insurance Company
Daido Life Insurance Company
T&D Financial Life Insurance Company
Pet and Family Small-amount Short-term Insurance Company

http://www.taiyo-seimei.co.jp/
http://www.daido-life.co.jp/
http://www.tdf-life.co.jp/
http://www.petfamilyins.co.jp/

Insurance-related

T&D Confirm Ltd.
Toyo Insurance Agency Co., Ltd.
Daido Management Service Co., Ltd.

http://www.sonpo.co.jp/toyohkdaiko/
http://www.dms-hp.co.jp/

Investment Management
and Advisory

T&D Asset Management Co., Ltd.

http://www.tdasset.co.jp/en/
http://www.taiyo-life-lease.co.jp/

Other Investmentrelated

T&D Lease Co., Ltd.
T&D Asset Management Cayman Inc.
Taiyo Credit Guarantee Co., Ltd.
Alternative Investment Capital Ltd.
AIC Private Equity Fund General Partner, Ltd.

General Affairs and General Affairs-related
Administrative
Administrative
Support-related
Support andBusinesses
Calculation-related(4 companies)
Foundations

http://www.taiyo-sinyo-hosyo.co.jp/
http://www.aicapital.co.jp/english/

T&D Customer Services Co., Ltd.
T&D Information Systems, Ltd.
Nihon System Shuno, Inc.
Zenkoku Business Center Co., Ltd.

The Taiyo Life Welfare Foundation
Daido Life Welfare Foundation
The Daido Life Foundation

13 T&D Life Group Corporate Responsibility Report 2014

http://www.td-system.co.jp/
http://www.nss-jp.com/
http://www.zbc-jp.com/

http://www.taiyolife-zaidan.or.jp/
http://www.daido-life-welfare.or.jp/
http://www.daido-life-fd.or.jp/

3.6

EC1

T&D Holdings is an insurance holding company that exerts management control over life insurance subsidiaries under the Insurance BusinessAct of Japan. Its three life insurance companies operate the Group’s core business of providing life insurance using their own productstrategies and sales strategies.
Thus, the T&D Life Group has three reporting segments: Taiyo Life Insurance Company, Daido Life Insurance Company and T&D Financial Life
Insurance Company.
l Fiscal 2013 Ordinary Revenues and Profit/Loss of Each Reporting Segment(Unit: 100 million yen)

Adjustment

Amount in
the consolidated
financialstatement

Reporting segment
Item

Other

Taiyo Life

Daido Life

T&D Financial Life

8,561

8,929

4,686

22,177281

22,459–1,601

20,857

11

3

0

15

431

446

–446

—

Total

8,572

8,933

4,686

22,192713

22,905–2,04820,857

Segment profit (loss)

722

913

209

1,844

189

2,034

–172

1,862

Ordinary revenues
Amount of internal transfer
between segments

Total

Total

* Amount of ordinary revenues is used in place of sales.
* Deferred amounts are as follows:(1) A djustment amount (160.1 billion yen) of ordinary revenues is the amount transferred from the reversal of policy reserves of 151.4 billion yen and reversal of reserves
for outstanding claims of 6.1 billion yen in the ordinary revenues to provision for policy and other reserves and provision for reserves for outstanding claims in the
consolidated profit and loss statement.
(2) Adjustment amount (17.2 billion yen) of segment profit (loss) is mostly inter-company elimination of dividend income received from the Group companies.
* Segment profit (loss) is adjusted to ordinary profit in the consolidated profit and loss statement.

2–4

Corporate Profile (as of March 31, 2014)

T&D Holdings, Inc.
Established
Head office location
Capital stock
No. of employees
Independent auditor
Description of business

2.1

2.4

Outline of the T&D Life Group

2.8

Management

Reporting Segments Shown in Consolidated Financial Statements

2.8

Daido Life Insurance Company
April 2004
1-2-3 Kaigan, Minato-ku, Tokyo 105-0022,
Japan
207.1 billion yen
93
Ernst & Young ShinNihon LLC
Holding company for the T&D Life Group
as well as for a small-amount short-term
insurance company, conducting thefollowing:l Management control of life insurance
subsidiaries and affiliates under the
Insurance Business Act and other laws
and regulationsl Other businesses associated with theabove

Established
Head office location

Capital stock
No. of employees

July 1947 (Founded July 1902)
1-2-1 Edobori, Nishi-ku, Osaka 550-0002,
Japan
1-2-3 Kaigan, Minato-ku, Tokyo 105-0022,
Japan
110 billion yen
Sales: 3,833
Administrative: 3,192
Total: 7,025

Social Aspects

2–3

Special Features

Outline of the T&D Life GroupT&D Financial Life Insurance Company
Established
Head office location
Capital stock
No. of employees

July 1947 (Founded April 1895)
1-2-3 Kaigan, Minato-ku, Tokyo 105-0022,
Japan
56 billion yen
227

Established
Head office location
Capital stock
No. of employees

February 1948 (Founded May 1893)
1-2-3 Kaigan, Minato-ku, Tokyo 105-0022,
Japan
62.5 billion yen
Sales: 8,603
Customer service: 369
Administrative: 2,582
Total: 11,554

Industry association to which the threelife insurance companies belong

4.13

The Life Insurance Association of Japan

T&D Life Group Corporate Responsibility Report 2014 14

Appendix

Taiyo Life Insurance Company

3. Outline of Businesses
n Life Insurance

3–1

Taiyo Life Insurance Companyl Supporting Households through Comprehensive Life Security
In the household market, Taiyo Life offers trustworthy services and pricecompetitive products that respond to the changing needs of individual
families to provide peace of mind to its key customers, homemakers whoare in charge of family budgets. Specifically, in-house sales representatives,
who are themselves housewives, visit customers at home and learn about
their individual needs. They are then able to propose products that will
provide the necessary security for the family from the point of view of thehomemaker. Aiming to become a trusted lifelong partner of individual
customers, we are continuing our efforts to offer optimally customized
products and services, taking a customer-oriented approach with a focus on
face-to-face consultation.

2.2

2.3

2.7

FS6

FS7

Taiyo Life’s Business ModelHouseholds

Face-to-face consultation
Protection-oriented products covering medical care,nursing care and death security that meet customer needs
Focus on major metropolitan areas and major regional cities
8,603 in-house sales representatives

As of March 2014

3–2

Daido Life Insurance Companyl Supporting SMEs, which Form the Backbone of the Japanese Economy
Daido Life positions, as its core business, the sale of partner-specificinsurance products through its partner organizations in the SME market,
and has developed an effective marketing system that links market, sales
channels and products organically. Daido Life develops insurance products
specially designed for each partner organization and the partner-specificproducts so developed are proposed to member enterprises of thepartner organizations as a benefit program for owners and employees of
those enterprises. These products are also introduced by tax accountants
and certified public accountants belonging to the partner organizations totheir corporate clients as a part of their management advice. In fiscal 2013,
over 90 percent of our new contracts were made with corporate clientsand our market share in individual term insurance was the largest in Japan,
16.1% as of March 31, 2013, in terms of policy amounts in force. We willcontinue developing and offering the insurance products that meet theneeds of corporate owners in the SME segment.

3–3

T&D Financial Life Insurance Companyl Supporting Customers to Lead a Comfortable Retirement Life andfor Lower Household Budget
T&D Financial Life specializes in OTC life insurance, offering products
including single premium insurance and income protection insurance
that are sold mainly through financial institution agents. We maintain ourmanagement policy to: strengthen our compliance and internal control
system to fully protect our customers’ interests; to develop and offer new
product packages that are highly appreciated by customers, thereby
achieving continuous growth; and to increase the amount of insurance
policies in force and improve profitability while maintaining sufficientfinancial soundness, we are working to develop new products that canoffer differentiated benefit packages and the broaden product line up to
meet diversifying customer needs, and to provide quality services throughour “operators,” who handle customer inquiries and benefit applications.
Committed to maintaining a customer-oriented perspective, we willcontinue working hard to improve customer satisfaction.
15 T&D Life Group Corporate Responsibility Report 2014

2.2

2.3

2.7

FS6

FS7

Daido Life’s Business Model
SMEs
Contracts with approx. 360,000 companies

Products for corporate risk management(protection against death and disability)
Collaboration with partner organizations in the SME market
Corporate organizations(NFCTA/TPA, etc.)

Tax accountant/
CPA organizations(TKC National Federation/
local branches of TPAs)

3,833 in-house sales
representatives
1,183 non-life
insurance agents
12,122 tax accountant
and CPA sales agents

As of March 2014

2.2

2.3

2.7

FS6

FS7

T&D Financial Life’s Business Model
Customers

Products for a comfortable retirement life
& for lower household budget
Product offering through financial institutions,insurance shop agents, etc.
91 banks (including credit unions)
5 securities firms
22 insurance shop agents
1 other

As of March 2014

Special Features

Outline of the T&D Life Groupn Asset Management
2.2

2.3

2.7

FS6

FS7

T&D Asset Management is engaged in asset management for the T&D Life Group. Aiming to become one of the most trusted companies inthis sector in Japan, and upholding the slogan “Make a Difference,” the company is working to offer unique, valued services in a variety of
categories, including investment trust and investment advisory. We are making efforts to strengthen our own asset management capabilities
while seeking effective alliances with leading overseas asset management institutions, thereby providing competitive products and services
that respond to investors’ needs in a timely manner.

n Pet Insurance

3–5

Pet and Family Small-amount Short-term Insurance Company

2.2

2.3

2.7

FS6

FS7

Pet and Family Small-amount Short-term Insurance Company is an insurance company specializing in pet insurance that compensates for acertain percentage of the costs incurred when a pet, a member of the family, receives treatment at an animal hospital. With the acceleration ofJapan’s declining birthrate and aging population, and the rise in the number of single-member households, the number of pets is increasing
and the attitude of pet owners is changing as they see their pets as family members. Pet insurance market is expected to continue growing
and, in such an environment, Pet and Family Small-amount Short-term Insurance Company will strive to enhance its products and services
more than ever so that pets and pet owners can enjoy healthy and affluent lives with peace of mind.

4. Business Overview
4–1

Fiscal 2013 (Ended March 2014)

Outline of the T&D Life GroupT&D Asset Management Co., Ltd.

Management

3–4

EC1

Please see page 6, “T&D Life Group’s Financial Results,” for the consolidated financial results of T&D Holdings and the financial results for theGroup’s three life insurance companies in aggregate.

4–2

l Basic Profit Distribution Policy
T&D Holdings has a policy of maintaining the soundness of its own
operations and those of the Group companies, securing a certain
level of retained earnings required by the Group, enhancing
shareholder value, and continuing a stable profit distribution. The
annual cash dividend for fiscal year ended March 2014 is set at
25.00 yen per share, an increase of 2.5 yen per share.

Awards Received during the Reporting Period

2.10

l UCDA Award 2013* (“Easy-to-Understand” Award for Life Insurance Notification Form Category) Hosted by Universal
Communication Design Association: Taiyo Life
Taiyo Life is working to make contract procedures partially paperless and cashless in an effort to simplify and expedite the procedures. One
recent example is the introduction of a digital pen system to capture the handwriting of policy purchasers entering their medical history on
the portable devices carried by sales representatives and instantly convert it into digital data. The handy system helps prevent erroneous
entries and omissions, thereby shortening lead time up to the start of the policy period. In recognition of this, the company was awarded
the “Easy-to-Understand” Award in the Life Insurance Notification Form Category.
* The UCDA Award aims to provide a third-party evaluation to communication tools, including brochures, created by corporations, focusing on the quality of being“easy to look, easy to understand and to be infectious.” The UCDA expects that the evaluation results will serve as an indicator for improved communication qualityand development of design technology, thereby contributing to increased benefit to both enterprises and consumers.

T&D Life Group Corporate Responsibility Report 2014 16

Appendixl Corporate Value (MCEV)The T&D Life Group has been disclosing its embedded value,
one of the indicators for assessing the corporate value of life
insurance companies, since the year ended March 2004. The
Group’s embedded value (Group MCEV) at the end of March 2014
reached 1,970.1 billion yen, which is 305.7 billion yen more than theprevious fiscal year.

Social Aspects

In addition, please visit the “Management Review” section of the Annual Report for a business overview.
(URL: http://www.td-holdings.co.jp/en/ir/annual/)

Management
1. Corporate Governance
1–1

Basic Concept of Corporate Governance

4.10

a system for supervising Group management by thoroughlymanaging revenues and risks for the entire Group. Meanwhile, thesubsidiaries, which have their own business strategies, develop
marketing strategies leveraging their strengths, and conductbusiness operations autonomously, thereby increasing the Group’s
corporate value.
In this way, the Group is committed to management thatclarifies the respective roles and responsibilities of T&D
Holdings and its subsidiaries.

The basic concept of corporate governance at the T&D LifeGroup is to pursue an efficient and transparent business
management structure capable of implementing flexible andunited group management.
Based on this concept, T&D Holdings determines the Group’sbusiness strategies, appropriately allocates management resources
and sets capital policies. In addition, T&D Holdings appropriately
identifies the business risks of its five subsidiaries (Taiyo Life,
Daido Life, T&D Financial Life, T&D Asset Management, andPet and Family Small-amount Short-term Insurance) to create

1–2

4.1

Outline of Corporate Governance Structure

2.3

4.1

Shareholders’ Meeting
Audit & Supervisory Board Member
Audit & Supervisory Board
Board of Directors

Audit & Supervisory Board Member’s OfficeGroup Compliance Committee
President

Executive Committee

Group Management Committee

Group ERM Committee

Group CSR Committee

Group Risk Management Committee

Group Information Technology and
Administration Committee

Group Planning
Department

Group Finance &Accounting Department

Public Relations
Department

General Affairs
Department

Risk Management
Department

Internal Auditing
Department

Business planning
New business development
Internal control
IR
CSR
ERM

Financial strategies
Capital policies
Budgeting andbudget control

Public relations

General affairs
Stock administration
Human resourcesmanagement
Secretary

Risk management
Compliance
Legal affairs

Internal auditing

Deliberation &reportingTaiyo Life

Daido Life

T&D Financial Life

Guidance &adviceT&D Asset Management
Other Group companies

17 T&D Life Group Corporate Responsibility Report 2014

Pet and Family Small-amount Short-term Insurance

Special Features
President

Directors

11

Male

10

Female1

Outside directors

2 (including one female)Outside directors’ role

They are involved in the deliberationof agenda at the Board meetings
based upon their specialist knowledge
in their capacities as a lawyer and auniversity professor.

l Selection of Director and Audit & Supervisory
4.7
Board Member Candidates
We select candidates for directors and audit & supervisory board
members primarily based upon the following criteria. Candidates
for director positions are required to have sufficient knowledge
and experience to oversee the management of T&D Holdings ina proper, fair and efficient manner, and to have earned the trustof society. Audit & supervisory board member candidates are
required to have sufficient knowledge and experience to conduct
audits of insurance holding company in a proper, fair and efficientmanner and to have earned the trust of society.
l Executive Committee and Group
4.2
Management Committee
T&D Holdings has established an Executive Committee and a GroupManagement Committee. The Executive Committee is composedof the president, executive vice president and executive officers,
and primarily discusses important business and management issues
related to T&D Holdings and the Group.
The Group Management Committee consists of the President, theexecutive officers in charge of the business planning units andbusiness management units, and the Presidents of the Group’s threelife insurance companies, who are also members of the Group’s
Board of Directors. The Group Management Committee discusses
strategically important issues affecting the Group as a whole.

lA udit & Supervisory Board
4.6
T&D Holdings has established an Audit & Supervisory Board.
The audit & supervisory board members monitor the operating
performance of directors and executive officers by means ofattending important meetings, such as those of the Board of
Directors, Executive Committee, Group Management Committee,
Group Compliance Committee, Group Risk Management
Committee and Group CSR Committee, as well as by other means.
An outside audit & supervisory board members are appointed as
independent auditors, who do not present any risk of conflict ofinterest with general shareholders.
The Audit & Supervisory Board receives reports from individual
auditors on important audit issues, and discusses or makes
decisions on them.
Audit & supervisory board
members

4

Male

4

Female0Outside audit &supervisory board
members2

Outside audit &supervisory board
members’ role

The outside audit & supervisoryboard members offer advice during
deliberation of agenda items at
meetings of the Board of Directors, etc.
based upon their specialist knowledge
in their capacity as lawyers.

l Director and Audit & Supervisory Board Member
4.5
Compensations
The upper limit of annual compensation for directors was decided
at the 8th annual shareholders’ meeting held on June 27, 2012.
The upper limit of the total amount of bonuses paid to directors
each year is decided by the Board of Directors. In addition to thecompensation described above, the upper limit of compensation
via a stock option program is decided each year. The amounts ofmonthly compensation and bonuses paid to individual directors
are determined based on the corporate performance as well as on
the performance of department in charge, in accordance with theassessment criteria determined by the Board of Directors.
Compensation for audit & supervisory board members consistsof monthly compensation only. The upper limit of annualcompensation was decided at the 8th annual shareholders
meeting held on June 27, 2012. Actual compensation is determinedthrough discussion by the audit & supervisory board members
within the predetermined upper limit.
l Executive Officer System
4.2
To strengthen corporate governance, T&D Holdings and its
subsidiaries have adopted the executive officer system in order toclearly separate supervisory and executive responsibilities.

T&D Life Group Corporate Responsibility Report 2014 18

Management

Chairman of the board of
directors

4.10

Social Aspectsl Board of Directors
4.2
4.3
4.5
4.7
The Board of Directors at T&D Holdings makes decisions onimportant issues regarding its own operations, and as the holding
company, on business strategies and allocation of management
resources with regard to the entire Group. It also oversees theperformance of directors and executive officers.
Director candidates are appointed through assessments of their
qualifications by the Board of Directors. Outside directors areappointed as independent directors, who do not present any riskof conflict of interest with general shareholders. As an incentive
measure to enhance corporate value, a stock option program wasintroduced for directors, excluding external directors.

4.1

Outline of the T&D Life Group

Corporate Governance Framework

Appendix

1–3

1–4

Committeesl Group Compliance Committee
Positioned directly under the Board of Directors, this committee
is charged with enhancing the compliance of both T&D Holdings
and the entire T&D Life Group.
The committee chairman is the representative director andpresident, and the vice chairman is the executive officer* in chargeof the Risk Management Department.
In fiscal 2013, the committee held four meetings and reported all
the information shared and the issues deliberated and discussed to
the Board of Directors.
l Group ERM Committee
Positioned under the Executive Committee, this committee ischarged with pursuing the steady and continuous growth of theGroup’s corporate value through the promotion and improvementof Enterprise Risk Management (ERM), a practice that integrates the
management of profit, risk and capital on an economic value basis.
The committee chairman is the executive officer* in charge ofthe Group Planning Department and the vice chairmen are theexecutive officers* in charge of the Group Finance & Accounting
Department and the Risk Management Department.
In fiscal 2013, the committee held 13 meetings and reported theresults of deliberations to the Executive Committee, the GroupManagement Committee and the Board of Directors.

1–5*1 The T&D Life Group’s Internal Auditing Department underwent an
external review of internal audit quality in July 2011. In the review, wewere evaluated as “Generally Conforms,” indicating the best in the threelevel rating for conformity with IIA International Standards.
*2 IIA International Standards refer to the International Professional
Practices Framework established by The Institute of Internal Auditors, aninternational guidance body for internal auditing professionals.

Internal Controll Internal Control System
In light of the social and public nature of the Group’s core
insurance business, the T&D Life Group believes it important toproperly control the execution of its business operations andminimize the management impact of unforeseeable events
arising out of its operations in order to secure the soundness andappropriateness of the management and respond to the trust
and mandate of society. Based on this idea, T&D Holdings and thesubsidiaries have decided, through Board of Directors’ resolutions
by the respective companies, to establish and improve an internal
control system, as stipulated under the Companies Act.
19 T&D Life Group Corporate Responsibility Report 2014

4.9

l Group Risk Management Committee
Positioned directly under the Executive Committee, the Group
Risk Management Committee manages and controls risks that T&D
Holdings and the T&D Life Group are exposed to, and ensures athorough risk management.
The committee chairman is the executive officer* in charge of the
Risk Management Department.
In fiscal 2013, the committee held 16 meetings and reported the resultsof deliberations to the Executive Committee and the Board of Directors.
l Group CSR Committee
Please see “Promotion Structure for the Group-wide Corporate
Responsibility” on page 12.
l Group Information Technology and Administration Committee
Positioned directly under the Group Management Committee, thiscommittee responds to Group-wide issues involving information
technology and administrative matters.
The committee chairman is the executive officer* in charge of theGroup Planning Department and the vice chairman is the director
and president of T&D Information Systems, Ltd.
In fiscal 2013, the committee held six meetings and reported theitems of deliberation to the Group Management Committee.
* As of the end of August 2014, these executive officer positions were filled
by directors.

T&D Life Group Internal Audit System

At the T&D Life Group, each of T&D Holdings and its subsidiaries
has a separate internal audit unit operating independently fromother business units.
These internal audit units conduct audits of the operating units,
specifically by examining and assessing the appropriateness andeffectiveness of the internal management, identifying and raising
issues, and providing the necessary advice for improvements to
help the effective achievement of management objectives.
Meanwhile, the Internal Auditing Department of T&D Holdings
grasps the status of the internal management system of the entire
Group through auditing and monitoring of the internal audits
implemented by subsidiaries, and provides guidance and advices
as necessary to strengthen the Group’s internal audit systems.

1–6

4.1

4.6

Audit

Outline of the Group’s Internal Audit System

Board of Directors

Audit & supervisory board members
President

Submission of
agenda/report

FS9

ReportReportInternal Auditing Department

Operating units

Audit & monitoring
Guidance &adviceTaiyo Life

Daido Life

T&D
Financial Life

T&D Asset
Management

Pet and Family
Small-amount
Short-term Insurance

Internal audit units of each company

Operating units of each company
Other Group companies

4.6

4.10

lR
 esponse to the Internal Control and Reporting System
In accordance with the internal control and reporting system
based upon the Financial Instruments and Exchange Act, theGroup established a proper internal control system to ensure
the appropriateness of accounting and financial reportingin the form of financial reports and so forth, and the top
management himself assesses and reports its appropriatenessand effectiveness, which are then verified through external
auditing typically performed by certified public accountants, as
required under the regulatory system.

2. Corporate Management
Promotion of ERM Approach

4.11

PLAN

DO

Formulating
management
plan

Implementing
plannedinitiatives

CapitalSoundness(Capital adequacy)

Integrated
management
Risk

Profitability(Capital efficiency)

Profits

ACT

CHECK

Reviewing
management
plan

Monitoring
progressof planl 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 LifeGroup promotes the integrated risk management approach toachieve 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 associatedwith its operations, including unquantifiable risks.

3. Risk Management
Basic Concept for Risk Management

At the T&D Life Group, T&D Holdings has formulated a Group Risk
Management Policy setting forth the Group’s basic approach torisk management and, based on this policy, the three life insurancecompanies and other Group members have developed theirrisk management system that covers their affiliates as well. T&D
Holdings has established a Group Risk Management Committee
and manages risks within the Group. The Committee receives
regular and ad hoc reports on risks assessed using uniform

4.9

4.11

economic value-based risk management indicators, from the threelife insurance companies 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 reportson these risks to the Board of Directors and provides guidance andadvice to the Group companies as necessary, thereby ensuringthat appropriate risk control is implemented at each company andstrengthening risk management system for the entire Group.
Appendix

3–1

Outline of the T&D Life Groupn PDCA Cycle

Management

ERM stands for Enterprise Risk Management and refers to a
strategic method of corporate management that seeks tomaximize corporate value and profits while ensuring thesoundness of business through integrated management of profit,
risk and capital.
As opposed to conventional approaches designed primarily to
avoid risks (losses), ERM takes a strategic stance with respect torisks, viewing them as a factor to be actively taken on in order toincrease return (profit) and, as such, not something that shouldnecessarily be reduced or eliminated. Using this new method,businesses can quantify profit, risk and capital on a uniform
evaluation standard, helping manage these elements in an
integral fashion and incorporate them into management decisionmaking, thereby allowing pursuit of growth in profitability while
maintaining sound management of business operations.
The T&D Life Group has established the Group ERM Committee
to implement ERM as a Group-wide initiative. With theCommittee providing leadership in promoting ERM throughout
the Group, we will enhance the Group’s corporate value ina stable and continuous manner while maintaining a soundbusiness foundation.
More specifically, we have built a system based on a PDCA cycle
to promote ERM under which the Group’s management plan isformulated (Plan) so as to meet the risk appetite set out in termsof soundness and profitability based on the assessment of profit,
risk and capital on an economic value basis; a range of initiatives
developed under the plan are implemented (Do); the progress of
implementation of the plan is monitored (Check); and the plan isreviewed and revised as necessary (Act).

4.9

Social Aspects

2–1

Special Features

Management

T&D Life Group Corporate Responsibility Report 2014 20

3–2

Risk Management System

In light of the social and public nature of the life insurance
business, the T&D Life Group views risk management as a key
priority in order to ensure sound and appropriate business
management. Under overall control by the holding company,
T&D Holdings, each Group company implements necessary
risk management suited to its business model based on theprinciple of self-responsiblity.

4.9

4.11

SO2

FS2

Outline ofManagement
Systemn Outline
ofthe
theGroup’sGroup’sRisk
Risk
Management
SystemBoard of Directors

Executive Committee

Audit & Supervisory Board Members
Audit & Supervisory Board
Group Risk Management Committee

Guidance& advices

Deliberation& reporting

Taiyo Life

Daido LifeInternal audit

Risk Management Department

T&D
Financial
Life

Pet and Family
T&D
Small-amount
Asset
Short-termManagement Insurance

Other Group companies

3–3

Risk Classification and Responses

The T&D Life Group classifies major management risks asshown on the right hand side. Risk management policies
have been established for each of these risks, and efforts
are made to prevent these risks from occurring or toconfine them within certain acceptable levels.

4.9

4.11

EC2

FS2

Insurance
Underwriting Risk

Investment Risk

Liquidity Risk

Operational Risk*

Reputation Risk

Affiliate-related Risk

* Operational risks above are divided into sub-categories, i.e. administrative risk, systemrisk, legal risk, labor and personnel risk, and hazard risk, and are managed separately.

Please visit the T&D Holdings website for details of risk classification and measures taken.
(URL: http://www.td-holdings.co.jp/en/company/group/governance/risk/)

3–4

Risk Awareness and Assessment (Risk Profile)

In order to respond to risks that are becoming more diverse andcomplex, the T&D Life Group is comprehensively organizing risks
surrounding its business using the risk profile*. By exhaustively
sorting out all risks by category, the Group identifies and assesses
those risks and comprehensively examines the criticality, potential
impact and status of control for each risk. Through such a
process, identified risks and necessary actions are prioritized andincorporated into management plans as necessary. In principle,

3–5

Risk Review (EC Index)

To determine risk appetite and tolerance, other than thestatutory solvency margin ratio, the T&D Life Group uses the
Economic Capital (EC) index, a risk management indicator basedon economic value. The EC index is calculated by dividing
Economic Capital—which is the economic value-based riskvolume computed by an internal model on the basis of insurance
underwriting risk, investment risk, operational risk, etc. —by the
net asset value (surplus). We implement economic value-based

21 T&D Life Group Corporate Responsibility Report 2014

4.9

4.11

FS2

the Group reviews the risk profile quarterly to capture andadequately understand the emergence of new critical risks andmajor changes in known risks. The results of the quarterly review
are reported to the Group Risk Management Committee and theBoard of Directors.
* Risk profile is a general risk management tool to characterize risks fromvarious factors such as nature, magnitude of disasters, etc.

4.9

4.11

risk management by controlling EC within a certain range of
surplus. The EC index and the statutory solvency margin ratio aremonitored on a monthly basis and reported to the Group Risk
Management Committee and the Board of Directors every monthlike other risk reviews. The EC index is publicly disclosed in theform of Enterprise Strategic Risk (ESR), an inverse number of the EC,
which measures capital adequacy relative to the amount of risks.

Optimization of Risk Portfolio (Risk measurement by internal models
and complemental efforts by stress test, etc.)

The T&D Life 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

3–7

4.9

4.11

stress tests for unquantifiable risks. To complement the risk
quantification model, stress tests are conducted with multiple
scenarios reflecting long-term macro and micro projections.

Crisis Management

4.11

The T&D Life 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 or similar emergency events, theRules place top priority on securing the lives and safety of our staff,
and then on continuity or early restart of insurance claims andbenefit payment operations to support affected people and areas,
with the recognition that such efforts are our social mission. To

make this possible, the Rules set forth basic policies for developing
systems that enable the Group to respond promptly and takeappropriate actions.
The Group has also implemented a number of measures toimprove the effectiveness of crisis management. These include
introducing a system for confirming the safety of our executives
and employees individually and Group-wide emergency drills as apreparation for a possible large-scale disaster.

Outline of the T&D Life Group

3–6

Special Features

Management

4–1

Basic Concept of Compliance

4.11

The T&D Life Group defines compliance as a key theme of corporate management, publicly stating that we will strictly observe laws,
regulations and rules, and act with integrity, as provided in the T&D Life Group CSR Charter.
Based on the understanding that compliance is a vital concept indispensable to carry out corporate responsibility activities, the Group
promotes compliance by ensuring that all Group executives and employees thoroughly understand the T&D Life Group Compliance Code of
Conduct and act accordingly.

The T&D Life Group Compliance Code of Conduct (excerpt)

4.8Management

4. Compliance

FS1

Responsibility and Duty of Management
The T&D Life Group management shall act while
recognizing the observance of the code of conduct astheir responsibility and duty and strive to disseminate
the code of conduct among Group companies andplay a leading role in promoting the observance ofthe code.

Group Compliance Promotion Structure

T&D Holdings has established a compliance promotion structure based on
the T&D Life 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
Management Department, which has overall responsibility for promoting
compliance. In coordination with the compliance units of the Group’s threelife insurance companies and other Group members, this Department
performs regular monitoring and provides guidance and advices.
The Group’s three life insurance companies and other Group members also
have a compliance promotion system mainly consisting of a compliancecommittee and a compliance control department.

4.11

FS4

Outline ofCompliance
Promotion
Structuren Outline
ofthe
theGroupGroup
Compliance
Promotion
Structure

Board of Directors

Audit & Supervisory Board Members
Audit & Supervisory Board

Appendix

4–2

5. Prohibition of Insider Trading
6. Handling of Antisocial Forces
7. Limitations on BusinessEntertainment
8. Distinction between Private andPublic Matters
9. Respect for Human Rights

Group Compliance Committee
Risk Management Department
Guidance& advices

Deliberation& reporting
Taiyo Life

Daido Life

T&D
Financial
Life

Pet and Family
T&D
Small-amount
Asset
Short-termManagement Insurance

Internal audit

1. Strict Compliance with Laws,
Regulations, and Rules
2. Maintenance and Promotion of Fair
and Free Competition
3. Proper Information Disclosure &Accountability
4. Proper Information Management

Social Aspects

This Compliance Code of Conduct serves as a basic policy guideline for all employees and directors of the T&D Life Group tofollow in order to ensure that their business activities are conducted in a fair and adequate manner in line with laws, regulations,and rules. The code sets specific principles and standards to be observed by employees and directors to practice compliance intheir daily business operations.

Other Group companies

T&D Life Group Corporate Responsibility Report 2014 22

4–3

Compliance Promotion Activitiesl Compliance Program
Each member company in the T&D Life Group takes measuresto raise awareness of compliance in a way appropriate for therespective 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 insurance companies aswell as other Group members have put in place their complianceprograms as detailed and actionable plans aiming at having
all executives and employees act in compliance with laws and

4–4

SO3

FS4

regulations, and compliance training is provided to reinforce
compliance in the course of business operations.
l Compliance Manual
The T&D Life Group has prepared separate compliance manuals
for different parties such as sales representatives, administrative
personnel, agents and others which serve as a daily business
operation manual and are also utilized as a textbook forcompliance training.

Prevention of Bribery and Corruption

The T&D Life Group Compliance Code of Conduct specifies “strict
compliance with laws, regulations and rules,” and “restrictions on
business entertainment” as items to comply with. With respect tothe restrictions on business entertainment, the code states, “Wewill not offer or receive entertainments or gifts in relation to ourworks in excess of accepted business and social norms.” Throughcompliance programs and the compliance manual, the Group
ensures that all Group executives and employees thoroughly

4–5

4.11

4.11

SO3

FS4

understand the importance of preventing bribery and corruption
as well as measures to prevent money laundering and corruption
including embezzlement and diversion of funds. The Group’s
reward and punishment rules stipulate bribery and corruption
as subject to the highest level of disciplinary actions in view ofthe malicious intent and potential impact involved. All acts ofwrongdoing (including potential wrongdoing) including bribery
and corruption are reported to the Board of Directors.

Whistleblower System

4.4

4.11

HR11

At the T&D Life 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 Life Group Helpline was established for use by all executives and employees in the Group. Operated
by external counselors, the Helpline provides a venue for reporting violations or potential violations of the compliance code and internal rules(including but not limited to incidents of bribery and corruption).
l Implementation of the Whistleblower System
As a rule, our executives and employees who report information
through the T&D Life Group Helpline shall not suffer negative
consequences for having done so. To ensure the effectivenessof the system, the Group has made it possible for executives
and employees to report information to a contracted third-party
company by phone, via website, and through other channels, andto do so anonymously as well.

l Number of Calls Received by the T&D Life Group Helpline
FY 2011

FY 2012FY 2013

182

157

143

* Numbers shown above include inquiries about the system and reports
on issues that reporters may find difficult to discuss with superiors suchas harassment-related issues. Reports from whistleblowers are properly
treated and reported to Group management by the third-party service
provider in accordance with the legally prescribed procedures.

5. Communication
5–1

Basic Conceptl Management Reflecting Stakeholders’ Opinions
At the T&D Life Group, proactive communication with stakeholders
is set out in the T&D Life Group CSR Charter.
(See p. 11, “4. Communication”)
By taking every possible opportunity to interact, the Group’s threelife insurance companies collect the opinions of policyholders,sales agents and other stakeholders and reflect them in theirrespective business management.
l Proactive Information Disclosure
The T&D Life Group pursues proactive communication activities
and works to make a comprehensible information disclosure tocustomers, shareholders, investors, and all other stakeholders.
To maintain and even heighten the trustworthiness in the eyesof society, T&D Holdings and the Group’s three life insurancecompanies have formulated Disclosure Rules*. In keeping with the
23 T&D Life Group Corporate Responsibility Report 2014

4.16
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 theevent of emergency.
Each Group company issues disclosure brochures on its
management policies, business performance and other matters,
and posts product and service information, company news andother information on their website.
T&D Holdings informs its shareholders, numbering 265,627 asof March 31, 2014, of the status of Group operations and othermatters twice a year, in June and December, through shareholder
news bulletins.
* Based on its Disclosure Rules, T&D Holdings has prepared and makes
available a Basic Disclosure Policy.

5–2

Third-party Participation in Management

4.14

Special Features

Management

4.16

Service Supervision Committee .... T&D Financial Life
<External members>	Attorneys, consumer affairs experts
and media representatives<Main issues considered>	Protection of policyholders’ interests
by ensuring appropriate payment
structure for insurance claims andbenefits as well as comprehensive
deliberation on activities for
improving customer satisfaction

5–3“Fureai Club” Taiyo Life

4.16

PR5

FS5

FS16

Taiyo Life holds regular meetings with policyholders called “Taiyo Life Fureai Club” in order to have them gain a deeper understanding about
Taiyo Life and life insurance, as well as to ask them for their opinions and requests regarding our products and services.
In fiscal 2013, the meetings were held at 144 branches and 104 other venues in August and September and attended by 1,219 clients. Taiyo
Life made presentations on its business and services and received 468 opinions from the participants concerning a broad range of its business
operations. The feedback from policyholders were shared within the Group as valuable information and utilized to achieve improvements invarious business practices.

5–4

Business Partner Meetings Daido Life

4.16

FS5

Daido Life has built partnerships with SME industry associations as well as the professional organizations of tax accountants and certified
public accountants, aiming at offering life insurance products to association members and the clients of organization members. These partnerorganizations and agents are key stakeholders of Daido Life. Daido Life holds regular meetings with its partners to report the latest businessdevelopments and to hear their views on Daido Life’s business operations.

5–5

Employee Survey on CSR

3.5

4.16

FS4

T&D Holdings values communications within the Group and strives to fulfill its social missions and corporate social responsibilities by growing
together with each of its employees, who it considers to be important stakeholders. The T&D Life Group CR Report serves as a mirror of theGroup and is utilized to improve CSR awareness.
In order to enhance the Group’s CSR activities, a copy of the T&D Life Group’s Corporate Responsibility Report (Focus Edition) is distributed to
all the Group executives and employees, and a post-reading survey is conducted.
[Respondents to the survey] T&D Life Group’s executives and employees * Conducted anonymously.
[For overall report]
Appreciated articles

0

5

10

15

(%)
25

20

Special Feature 1: Business Activity Report

21.0%

Stakeholder, Corporate Philosophy,
Management Vision, Overview

18.5%

Special Feature 2: To Be Deserving of Trust
Digest (Social Contribution,
Environment Protection,
WLB, Efforts for Diversity)
Front CoverOpinions and requests received
The “Business Activity Report” was the most appreciated. Many of thereaders might have been interested in the articles about our efforts tograsp social issues and solve such issues through our business operations
including provision of better products and services, and consequently to
be a firm enjoying broad public trust.

16.3%
12.4%
10.0%

Message from President

9.6%

Third-Party Opinion
Response to Third-Party Opinion

6.4%

CSR Management

5.9%

Social Aspects

Advisory Council for Insurance Payment .... Daido Life
<External members>	Attorneys and consumer affairs experts<Main issues considered>	Deliberation on payment complaint
responses and dispute settlements;
re-examination of non-payment
claims; improvement of clarity ofnotices and documentation provided
to the customers

Management

Consumer Feedback Utilization Committee .... Taiyo Life
<External members>	Attorneys and consumer affairs experts<Main issues considered>	Feedback from customers; progressof the initiatives for reflecting
customer feedback to improve
operations

Response to the opinions and requests
For this year’s Focus Edition, activity reports were introduced as special
features by linking them to social issues. Meanwhile, “providing better
products and services” was once again covered as a special feature.
“Providing insurance products needed by a greater number of people”
was selected as one of the themes.

T&D Life Group Corporate Responsibility Report 2014 24

Appendix

Payment Assessment Special Committee .... Taiyo Life
<External members>	Physicians, attorneys, academic
experts, consumer affairs experts, etc.
<Main issues considered>	Assessment of insurance claims andbenefits, payment administration;
improvement of insurance claim
documents; appropriateness ininsurance claim payment operations

Outline of the T&D Life GroupThe Group’s three life insurance companies work toward appropriate and transparent business management through the participation ofoutside experts in some internal committees dealing with key management issues.

5–6

IR Activities

4.16

FS5

T&D Holdings proactively engages in IR activities based on the principles of timeliness, fairness, and accuracy in information disclosure,and works to make continuous and comprehensible information disclosure on the Group’s management and financial situations. Morespecifically, we hold business results briefings, teleconferences, in-person visits to domestic and overseas investors and actively engage inexchanging opinions with securities analysts. Valuable feedback from investors received through IR activities is regularly communicated to the
management team.

5–7

Shareholder Meetings

4.4

4.16

T&D Holdings views shareholder meetings as important opportunities for communicating with its shareholders and endeavors to make these
events sufficiently accessible and open to all shareholders.
Prior to the annual meeting, we post a convocation notice complete with an English translation on our website as well as sending the notice
to individual shareholders at an appropriately early date to allow them time to prepare. In addition, we have introduced an online electronic
voting system to improve shareholder convenience. At the shareholder meetings, the president reports on agenda items using charts andimages displayed on a large screen. In the Q&A session that follows, directors respond to questions and opinions from the floor respectfully
and appropriately, with the intention of enhancing shareholders’ understanding of our business.

6. S ocially Responsible Investment and Principles for Financial Action
towards a Sustainable Society
6–1

Principles for Financial Action towards a Sustainable Society(Principles for Financial Action for the 21st Century)

T&D Holdings and all of its direct subsidiaries(5 companies) endorse the Principles for Financial
Action towards a Sustainable Society (Principles
for Financial Action for the 21st Century)*,
and have signed on to this voluntary initiative
organized by Japanese financial institutions. The
T&D Life Group will continue promoting efforts
toward solving social issues through its main
business as well as its overall business activities.
* Principles for Financial Action towards a
Sustainable Society (Principles for Financial Action
for the 21st Century)
This set of principles was drawn up as guidelines foraction by financial institutions seeking to fulfill theirroles and responsibilities in shaping a sustainable
society. The seven principles have been formulatedby the Drafting Committee for Environmental
Finance Principles, in which a wide range of financial
institutions have participated with the Japanese
Ministry of the Environment serving as secretariat.

6–2

4.12

1. We will recognize our roles and responsibilities, taking into account the precautionary
approach, and promote those actions that contribute towards shaping a sustainable society.
2. We will contribute to the formation of a sustainable global society through thedevelopment and provision of financial products and services leading to thedevelopment and increased competitiveness of “industries contributing to a sustainable
society” as represented by the environmental technologies and services sector.
3. From the perspective of regional development and improvement in sustainability
performance, we assist the environmental programmes of small and medium
enterprises. We will also back activities that will raise environmental awareness amongst
citizens and support disaster readiness and community activities.
4. In the formation of a sustainable society we will recognize the importance ofcooperation with diverse stakeholders and will not only participate in its activities but
will endeavor to take a proactive role.
5. We will not be limited to complying with environmental laws and regulations but willtake active steps to reduce our own environmental footprint through resource andenergy savings as well as encouraging our suppliers to do likewise.
6. We will recognize activities that will further profile sustainability as a business issue andwill endeavor to disclose information on our activities.
7. In order to implement the above actions we will aim to raise the awareness ofenvironmental and societal issues of our own board and support them to take an activerole through their normal duties.

The Principles for Responsible Institutional Investors(the Japanese Version of the Stewardship Code)

4.12

The Group’s three companies, Taiyo Life, Daido Life and T&D Asset Management, endorsed and expressed their commitment to the Principles
for Responsible Institutional Investors (the Japanese Version of the Stewardship Code) in May 2014.

25 T&D Life Group Corporate Responsibility Report 2014

6–3

Signing Principles for Responsible Investment (PRI)

4.9

4.12

Special Features

Management

FS12l Taiyo Life
In order to further fulfill its social responsibility as an institutional
investor, Taiyo Life determined that it was essential to exert more
influence for the betterment of society and the global environment
through investment and lending activities to a greater extent thanever and contribute to realization of a sustainable society. In March
2007, Taiyo Life became the first Japanese life insurance company
to sign the Principles for Responsible Investment (PRI*1), a global
investor initiative in partnership with the UNEP Finance Initiative(UNEP FI*2) and the UN Global Compact. Before signing the PRI,

Taiyo Life had taken into account profitability, safety, and public
nature in making investment of insurance premiums received fromthe customers, and also, when necessary, took actions to suspendor refrain from business transaction with companies involved inscandals or social problems. After signing the PRI, the company
has developed its asset management process based on the PRI,
and has promoted asset management taking into account theenvironmental (E), social (S), and corporate governance (G) issues.
The latest information on our activities concerning PRI is posted on
the Taiyo Life website*3.

n The Principles for Responsible Investment (PRI) and Taiyo Life’s Main Activities
The Principles for Responsible Investment(PRI)

Outline of the T&D Life Group

Taiyo Life and T&D Asset Management have signed up to the PRI.

2) We will be active owners and incorporate ESG
issues into our ownership policies and practices

l T he company has specified the PRI concept in the voting guidelines, and plays a role as a responsible shareholder.
l T aiyo Life discloses, on the company website, its basic policy on voting for domestic shares.

3) We will seek appropriate disclosure on ESG
issues by the entities in which we investl In order to check the latest situation of investees and borrowers in terms of ESG, the company collects andcarefully reviews the CSR reports (or environmental reports) published by them, and requests the appropriate
disclosure of ESG-related issues.

4) We will promote acceptance andimplementation of the Principles within
the investment industryl T he company promotes the PRI by explaining to corporate pension insurance clients and others about its asset
management policies and the activities associated with the PRI.

5) We will work together to enhance oureffectiveness in implementing the Principlesl To promote the PRI and conduct related activities more effectively, the company holds meetings with othersignatory companies on a regular basis to discuss specific promotion measures.

6) We will each report on our activities andprogress towards implementing thePrinciples

l T aiyo Life reports the status of its PRI-related activities on the website and in the corporate communication reports.
l T he company promotes employees’ awareness about the PRI by means of internal seminars, in-house magazinesand e-learning.

l T&D Asset Management
T&D Asset Management, in favor of the concept of the Principles for Responsible Investment (PRI), signed them in March 2012. By doing so, thecompany is committed to incorporate the ESG (Environmental, Social and Governance) factors in its investment process unless contrary to its
fiduciary responsibility. T&D Asset Management believes that companies that carry out ESG-conscious business activities are widely respectedby society and can achieve a sustainable growth, and it is aiming to improve its long-term investment performance by incorporating the ESG
factors into corporate evaluation.

Social Aspects

1) We will incorporate ESG issues into
investment analysis and decision-making
processes

Management

Main Activities
l T he company has adopted the guidelines for investment and lending in due consideration of environmental,social and corporate governance aspects, and has incorporated ESG issues into investment analysis anddecision-making processes.
l T he company has reflected the PRI concept in its internal rules and regulations for asset management.

6–4

Inclusion in SRI Indexes

T&D Holdings is included in various SRI (socially
responsible investment) indexes. SRI is a method ofchoosing investment targets not simply based on
financial considerations but also on assessments ofcompanies’ corporate responsibility performance including
contributions to the global environment and society.
We aspire to be a corporate group trusted by global
long-term investors.

T&D Holdings is a member of the following SRI indexes(as of the end of September 2014)
FTSE4Good Index Series (UK), MSCI Global Sustainability Indexes (US) andMorningstar Socially Responsible Investment Index (Japan)

T&D Life Group Corporate Responsibility Report 2014 26

Appendix*1 The Principles for Responsible Investment (PRI) is an international network of investors working together to put the six Principles for Responsible Investment into
practice and encourage institutional investors to promote investment activities in consideration of ESG (environment, society and corporate governance) issues.
More than 1,200 financial institutions around the world and 29 in Japan, including the two companies in our Group, have signed on to the PRI (as of July 2014).
*2 The UNEP Finance Initiative (UNEP FI) is an international financial network consisting of more than 230 financial institutions from around the world. Since its
establishment in 1992, the UNEP FI has been pursuing sustainable development to promote the co-existence of economic development and environmental
protection. It has been propelling actions for promoting environmental consideration in relation to the various tasks and services performed by financial institutions.
*3 For more details about Taiyo Life’s Principles for Responsible Investment (PRI) Activities, please visit its official website at
http: //www.taiyo-seimei.co.jp/summary/pri.html (in Japanese)

Social Aspects
1. Together with Our Customers
n Customer-oriented Business Management

1–1

Basic Concept

PR1

l Obtaining Customer Feedback through Daily Business
Activities
In the course of daily business activities, the Group’s three life
insurance companies receive feedback from their customers.
We set up many points of contact with customers, such as sales
representatives, agents, call centers (Customer Service Centers),
the Internet and so forth, to continually enhance the system forgathering customer feedback. We also conduct regular, as wellas ad-hoc, surveys to straightforwardly ask customers about theirsatisfaction level.

1–2

FS5

lS
 ystem to Reflect Customer Feedback in Operations
The Group’s three life insurance companies have set up dedicateddepartments and committees with external members in charge ofcustomer satisfaction management. We developed a total system
ensuring customer satisfaction at all stages of interaction withcustomers, from making contracts to payment of insurance claims
and benefits, based upon the clearly stated policy for customer
satisfaction and specific guidelines for the handling of customer
complaints. All the feedback from customers is input into a centrally
managed database, and it is shared by the relevant units for thedevelopment and quality improvement of products and services, aswell as for the improvement of business practices.

Examples of Improvements Based on Customer Feedback

4.17

PR1

Taiyo Life
Customer’s opinions

How we respondedl I would like the upper limit of the policy
renewable age to be extended longer. As
I’ve grown older, it is more likely that I will be
injured and hospitalized.

l The upper limit of the policy renewable age for Himawari Kenko Plans and Himawari Kenko Plans
Lady that reach maturity in October 2013 and thereafter has been extended from 80 years old
to 85 years old and the upper limit of the maturity age from 85 years old to 90 years old.
For the medical insurance products renewed in November 2013, namely, Hoken Kumikyoku Best
Kisei Kanwa and Taiyo-seimei no Yasashii Hoken, the upper limit of the maturity age is set at 90
years old after renewal of the policy term.
These changes enable policyholders, who would have otherwise had to relinquish their policy
due to their age, to instead maintain it.

l The description on the claim procedure forthe hospitalization benefit is difficult tounderstand and fonts used are too small.
Please improve the description so that theelderly can read and understand it.

l We introduced a “benefit claim confirmation sheet” for claiming insurance benefits whichclearly explain the procedures for elderly customers, and have used it for explanations tocustomers since October 2013. The benefit claim confirmation sheet explains the flow of
benefit claims from document submission to payment using simple terms rendered in large
fonts. It is designed so that customers can make sure that all the required documents areprepared and necessary information is provided.

Daido Life
Customer’s opinions

How we respondedl Please simplify the insurance application
procedure.

l Paperless procedure using “Ace With” on tablet devices
Daido Life has introduced “Ace With,” a tablet device, to enable paperless application to reduce
the applicants’ burdens in filling in the application form and affixing their seal as well as toshorten the time required for applications.

l I wish to receive notifications of policy details
in our book-closing month. (Request bycorporate policyholders)l Sending the notification of policy details in the month following the registered bookclosing month for each corporate policyholder
To improve convenience of corporate policyholders, Daido Life has integrated the notificationof policy details with the book entry guidance service for corporate policyholders, andchanged the timing of sending the notification to the middle of the month following theregistered book-closing month.

T&D Financial Life
Customer’s opinions

How we respondedl Annuity claim procedure and how to fill in theapplication form are not easy to understand.

l Revision of annuity claim forms
In the filing of annuity claims, the wording of the selection method for the number of annuity
payments has been replaced with easier-to-understand expressions as this has been thesubject of many questions and inquiries. T&D Financial Life is making efforts to improvecustomer satisfaction for instance by implementing outbound calls to customers to notify thecommencement of annuity payments.

l I want to be able to easily change my annuity
type when I file an annuity claim.

l Simplifying the procedure for changing policy contents (change of annuity type)A claim form for changing annuity type is now included with annuity claim forms sent tocustomers who have selected an annuity type at the time of making the contract. These claim
forms now feature a reduced number of items to be filled out by customers thereby reducing
the burden on policyholders.

27 T&D Life Group Corporate Responsibility Report 2014

Special Featuresn Activities to Respond to the Customer Feedback

1–3

Measures Taken by Taiyo Life

4.16

PR1

PR5

(Policyholder
Meetings)

Customersurveys
Website• Sales representative• Customer service
staff• Administrative staﬀ

Aggregationand centralized
managementof information

Payment
Consultation
Center
Sharing of
information

Instructions

Branchoffices
Reports

Head offices• Customer
Consultation Center• Payment
Consultation Center• Departments anddivisions concerned

Relateddepartments

Measures toprevent recurrence,
improve services, etc.

Instructions

Reports

Opinions,
recommendationsl Acquiring a Third-party Opinion on ISO 10002 Compliance
In March 2008, Taiyo Life declared the introduction of ISO 10002, an international standard for quality management, customer satisfaction andguidelines 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 February 2014, we obtained a third-party opinion on ISO 10002 thatrecognized our complaint management system as complying with ISO 10002 and functioning effectively.
We have been working to improve our business processes based on ISO 10002 and educate employees through training programs.
lB reakdown of Customer Feedback Received
Type of feedback

Management

Fureai Club

Branch offices(Units: no. of responses; proportion: %)FY 2011
No. received

FY 2012%

No. received

FY 2013%

No. received%

Complaint*

11,935

33.1

9,523

28.7

8,879

28.1

Comment, request & inquiry

2,302

6.4

2,412

7.3

2,788

8.8

Appreciation & praise

21,83760.5

21,25664.0

19,983

63.1

Total

36,074100.0

33,191100.0

31,650100.0Social Aspects• Visits tocustomers• Visits bycustomers

Preparation of
measures toprevent recurrence,
improve services, etc.

Management

Face-to-facemeetings

Customer
Consultation
CenterCustomer
Service Center(call center)

Reports

Customer Feedback
Implementation
Committee

By telephonecalls

Responding tocontacted customers

Customer Feedback
Information System

Channel for collecting customer feedback

Analysis andstudy of customer
feedback

Departmentsin charge

Customer Feedback
Council[Workflow for reflecting customer feedback in operations]

Outline of the T&D Life Groupl System for Reflecting the Customer Feedback in Operations

Appendix* “Complaint” refers to an expression of dissatisfaction by customers.

T&D Life Group Corporate Responsibility Report 2014 28

1–4

Measures Taken by Daido Life

4.16

PR1

PR5

lS
 ystem for Reflecting Customer Feedback in Business Operations

Listening tocustomer voices

Customers
Opinions, requests,
complaints, etc.
Customer contact points
BranchofficeCall center

WebsiteCustomer surveys

Informal meetings
with customers

Improving businessprocess based on
customer voices

Gathering and analyzing
customer feedback
Department in charge of gatheringand analyzing customer feedback

Operational departments

Studying and analyzing improvement measures, reporting to management
Improvement of products
and services

More reliable and satisfying
customer service

Enhancing customer satisfactionlC ustomer Survey
Daido Life conducts a number of customer surveys in a bid to identify
hidden issues related to its business that are difficult to uncover bypassively receiving customer opinions and requests. Major examples
include questionnaires filled out by new policyholders upon completing
new application procedures, with a focus on the attitudes of sales
representatives and on understandability of application forms and otherdocuments, as well as customer satisfaction surveys to identify the levelof satisfaction of business owners/managers about our products, services
and after-sale services.

Overall Satisfaction with Daido Life (Corporate customers)
Dissatisfied
0.6%

Very dissatisfied
0.4%
Very satisfied
11.6%

Somewhatdissatisfied
1.7%
Not
particularly
satisfied
18.3%

Somewhatsatisfied
31.9%

A total of 78.9% of respondents
answered that they were “Verysatisfied,” “Satisfied,” or“Somewhat satisfied.”[Outline of customer satisfaction survey]
Survey period: August 2013 to March 2014
Respondents: All corporate policyholders of
Daido Life
Valid responses received: 3,367
No. of questions: Maximum 29 questions

Satisfied
35.4%

lR esponse to Customer Complaints
We define “complaint” as customer dissatisfaction expressed regarding the company’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 as valuable
information to be used for improving our business processes.
lC ustomer Complaints by TypeComplaints about(Units: no. of complaints received; proportion: %)FY 2011
No. of complaints

FY 2012%

No. of complaints

FY 2013%

No. of complaints%

Purchase of life insurance policy

1,762

15.7

1,660

15.6

1,698

14.6

Payment of premiums

1,321

11.8

1,141

10.7

1,143

9.8

Procedures after making a contract

3,922

35.0

3,571

33.5

4,077

35.0

Payment of insurance claims and benefits

2,256

20.1

2,165

20.3

2,149

18.4

Other

1,939

17.3

2,113

19.9

2,598

22.3

Total

11,200100.0

10,650100.0

11,665

100.0

29 T&D Life Group Corporate Responsibility Report 2014

1–5

Measures Taken by T&D Financial Life

4.16

PR1

Special Features

Social Aspects

PR5

Confirmation of nature of complaints,
coordinated efforts to resolve complaints
Instruction forimprovement

Complaint Recurrence
Prevention Committee

ReportReportFinancial
institution
agent

Departments
and divisions
concerned
ServiceSupervisory
CommitteelC
 ustomer Survey
T&D Financial Life conducts a customer satisfaction survey to proactively reflect customer feedback in its operations. This survey includes
questions about the quality of call handling by the Customer Service Center staff and understandability of application forms and documents
involved in various procedures.
Results of customer surveys are available on our website.
Summary of Survey Findings
Q. How did you feel about the application
form you filled out for the procedures?
1.4%
1.0%

4.1%

29.4%

64.1%

Q. How did you feel about the quality ofcall handling by our Customer Service
Center staff?
0.1%
0.7%

Regarding application forms, 93.5%
of respondents said that they were
“Easy to understand” or “Fairly easy tounderstand.” Regarding the mannerin which our Customer Service Center
staff handle calls, 88.1% of
respondents reported that they were
“Polite and easy to understand” orprovided “Satisfactory support.”

Easy to understandFairly easy to understandSome difficulties in understanding
Hard to understandNo answer

1.1%
8.2
%
21.2%

66.9%

1.8%

[Outline of Survey]
Methodology:

The survey was sent to the customers, together
with documents for procedures, who purchased
insurance policies through financial institution
agents and requested for insurance
conservation procedures.
Survey period:
January 6, 2014 to February 17, 2014
(Responses received by the end of March 2014
were processed.)
No. of surveys sent: 2,953
Valid responses:
1,084
Response rate:
36.7%

Polite and easy to understandSatisfactory support
Some difficult explanation to understandUnpleasant response
Have never phoned them
OthersNo answerlP rovision of Information on the Internet
T&D Financial Life discloses a summary of customer feedback information such as inquiries, FAQs, complaints, comments and requests on
the website.
lC ustomer Complaints by TypeComplaints about

Management

Company
attorneySocial Aspects

Inquiry

ComplianceDepartment(Units: no. of complaints received; proportion: %)FY 2011
No. of complaints

FY 2012%

No. of complaints

FY 2013%

No. of complaints%

New contracts

155

9.7

187

14.3

152

11.5

Payment of premiums, etc.

90

5.7

40

3.1

32

2.4

Procedures after making a contract

611

38.4

533

40.8

415

31.4

Insurance claims and benefits

285

17.9

222

17.0

516

39.1

Others

449

28.2

324

24.8

205

15.5

Total

1,590

100.0

1,306

100.0

1,320

100.0

* “Complaints” refers to customers’ complaints and dissatisfaction about products and services, and expressions of dissatisfaction.

T&D Life Group Corporate Responsibility Report 2014 30

Appendix

Report,instructions

Customer Service Division(Customer Consultants)

AnswerRequest for advice,inquiries

Customer Service Center(call center)

CustomerComplaint,
requestfor advice,inquiries

Outline of the T&D Life GrouplS
 ystem for Rapidly Responding to Customer Voices

n Providing Wholehearted Reassurance

1–6

Supports to Areas Struck by the Great East Japan Earthquake

EC8

Shortly after the Great East Japan Earthquake, the T&D Life Group began offering support toward recovery in the disaster-hit areas. The Group
promptly dispatched its executives and employees to the affected areas, where they participated in volunteer activities such as removing
rubble, bringing in relief goods, and rebuilding individual homes and temples/shrines. In fiscal 2013, the third fiscal year after the disaster, theGroup provided a broad range of support including making donations.

1–7

Fairness in Offering Insurance Products to the Broader PublicLife insurance is a mutual aid system in which costs paid to insured
deaths, hospitalizations, nursing care, etc. are covered by premiums
statistically calculated by mortality and accident rates according
to the law of large numbers. Life insurance companies maintainthe fairness of life insurance system by adding some conditions
such as additional premiums, or in the worst cases by not offering
products, for those whose expected mortality rates or insurance

1–8

l Insurance program that offers a variety of options to be selected andcombined flexibly to build plans that meet the needs of individual customers• Hoken Kumikyoku Bestl Medical insurance for people with past hospitalization or surgery
history, or who are currently under medical treatment• Nonparticipating nonselective medical insurance: Taiyo-seimei no
Yasashii Hoken• Nonparticipating semi-selective medical insurance: Kisei Kanwa

Daido Lifel A range of term life insurance plans designed to support smoothbusiness succession in the event of death of the business owner[High-protection and low-premium]• R-Type, Z-Type, D-Type[Protection and wealth-building]• L-Type, L-Type (for life security), Low SV-L-Type, Shin-Teizo 50
l Critical illness insurance plan for business owner with living benefit
that covers cancer, acute myocardial infarction, and cerebral stroke• J-Typel Disability insurance plan for business owners with life benefit thatcovers severely incapacitating disability that prevents them fromworking• T-Typel Comprehensive medical insurance plan offering broad-coveragehospitalization benefits that can be used for working capital during
the temporary absence of the insured business owner• M-Typel Savings-type single premium whole life insurance plan designed tosupport smooth inheritance of property to family• Life Gift, Life Gift α

FS15

accident rates exceed certain limits, rather than accepting them
unconditionally. Having said so, the Group’s three life insurancecompanies and other Group members respect customers’ humanrights and their needs for insurance, and develop and offer many
unique insurance products which meet a wide variety of customer
needs, health conditions, gender, enrollment age and otherspecific circumstances.

Providing Products and Services that Meet Social Needs

Taiyo Life

PR1

PR5

FS7

l Consulting service based on a tool kit for calculation of standard
amount of protection requirement
We calculate the amount of funds to be required by the insured in
the event of death, physical disability or serious disease of businessowners and directors of small and medium sized enterprises, which wecall “standard protection amount.” The calculations are based on two
different perspectives: preparation for funds for business continuity(“business protection funds”) and preparation for funds for family(“funds for retirement benefits for directors”).
Based upon the standard protection amount so calculated, we offer
advice and consultation that best meets the needs of each insured
enterprise as a part of their risk management.

T&D Financial Lifel Whole life insurance plan that adds a prescribed amount to theaccumulated policy value annually throughout the lifetime of theinsured, as a preparation for post-retirement expenditures• Shougai Premium Series (two plans)l Whole life insurance plan that people up to the age of 95 can purchasesimply by submitting a job notification• Non-participating whole life insurance (increasing death benefit type I):
Minna Ni Yasashii Shushinhoken
l Income guarantee insurance plan that offers a monthly annuity
payment to survivor families for a predetermined period in the eventof death or disability of the insured• Non-participating income protection insurance (no surrender value
type I): Kakei Ni Yasashii Shunyuhoshou

Pet and Family Small-amount Short-term Insurancel Insurance offering protection against illness or injury of pets, as afamily member• Pet medical insurance: Genki Number One
The information concerning insurance products on this page isprovided for the purpose of describing corporate responsibility
activities in the T&D Life Group, but not for insurance productoffering. For more details about individual products, please see theproduct pamphlets and so on.

31 T&D Life Group Corporate Responsibility Report 2014

1–9

Establishment of Solicitation Policy

PR6

Special Features

Social Aspects

FS15

Solicitation Policies (Taiyo Life)

Protection of Personal Information

PR1

1–11

Efforts to Offer Customer-Oriented Services

From contract making and after-sales service to payment
of insurance claims and benefits, the three life insurancecompanies endeavor to provide services with an emphasis onunderstandability on the part of customers as an approach to earntrust from customers.

◆ Awards for Customer Services(See page 16 for more details.)

2.10✩ UCDA Award 2013, “Easy-to-Understand for Provided
Information” Award for Life Insurance Notification Form
Category<At the Time of Making a Contract>
Major Documentsl Clearly worded “Product Pamphlet”
l “Insurance Specification Documents” (contract summary) describing
insurance plans tailored to individual needs of customers
l “Notifications of Important Matters,” as a reminder, and“Warning Information,” for calling the customer’s attention toparticularly important pointsl “Policy Leaflet and Policy Provisions” describing the various
procedures when making a contract, and the structure of
the productl “Confirmation of Intent” as a final step to ensure that thecustomer’s needs are met by the insurance product offered

Management

The Group’s three life insurance companies and other Group members have formulated Personal Information
Protection Declarations (Privacy Policies) and publicly disclose them on their websites. In addition, T&D Information
Systems, a Group company that supports the information system of the T&D Life Group, handles various data,
including personal information, appropriately and keep them in strict confidence.
In May 2005, T&D Information Systems obtained Privacy Mark certification, which is given to the enterprises thattake appropriate measures to protect personal information. In addition, the company acquired a certification for
ISO27001, an international standard for information security management systems. The information service firm has
continued to renew both of these certifications as part of its efforts to maintain a high level of information security.

PR6<After-sales Services>
The Group’s three life insurance companies work to ensure
customer satisfaction by providing various kinds of information
after contracts. We also work to enhance our services so that thepolicyholders can make insurance and benefit claims more easily.

Major Information Provision Services
l Notification of policy detailsl Distribution of service guidebooksl Notification of account transfer paymentl Accounting method guidance servicel Confirming policy details by visiting customers

Social Aspects

1–10l We will comply with the applicable laws, rules and regulations in solicitation
activities.
l We will endeavor to carry out appropriate solicitation activities in considerationof the customer’s circumstances.
l We will give due consideration to the time and the place for solicitation activities.
l We will explain the important issues appropriately.
l We will make efforts to enhance employee education and training program.
l We will safeguard customer information strictly in confidence.
l We will make continuous efforts to establish an internal structure ensuring
appropriate solicitaion activities.

Examples of Measures to Facilitate Making Insurance
and Benefit Claimsl Distribution of booklets and leaflets that comprehensively
describe insurance and benefit claims procedures as well as
payable case examples
l Reimbursement of expenses for obtaining a medical
certificate in the event that the related insurance claim iscompletely rejected despite that insurance and benefit claims
were made with the prescribed medical certificate
l Waiving the requirement of submitting medical certificates forclaims in cases in which certain criteria are met
l Improvement of explanation and advice at Customer Service
Center (call center) and branch officesl Introduction of designated proxy application option to allow the
pre-registered proxy to file insurance claims in the event that thepolicyholder is unable to file the claim for a certain reasonl Periodic follow-up of customers who take a long time tosubmit claim documents despite having declared an intention
to make insurance claims

T&D Life Group Corporate Responsibility Report 2014 32

Appendix

The following are the Taiyo Life’s basic solicitation policies for offering
financial products, including life insurances, to customers. We always
endeavor to develop and offer products in a proper and appropriatemanner in due consideration of customers’ desires, circumstances andprivacy in order to provide customers with proper services throughconsultation.

Outline of the T&D Life GroupThe Group’s three life insurance companies and other Group members have established individual Solicitation Policies for offering life
insurance and other products. Under these policies, each Group company strives to develop and offer appropriate products that meetcustomers’ needs and circumstances.

1–12Working toward Better After-sales Service

PR1

The Group’s three life insurance companies have each set up various systems aiming at providing quality after-sales services. At the Customer
Service Center, professionally trained staff handles inquiries and insurance claims from customers nationwide over the telephone in aconsiderate, polite, prompt, and accurate manner. Also, all our branch counter staff and sales representatives, fully aware of the importance of
post-contract support, attend to individual customers, offering best possible service to each of them.
At Taiyo Life, customer service staff calls on customers regularly after contract. As of the end of fiscal 2013, 369 customer service staff members
are offering a range of customer support services, such as changing registered personal information, e.g. addresses, arranging necessary
procedures for making insurance claims, introducing new products and services, and receiving diverse requests from customers.
Daido Life dispatches sales representatives and agents to individual customers to conduct after-sale activities, particularly to ask customers
to confirm the current insurance policy through explanation of the policy details and the amount of standard protection, as well as tometiculously provide advice and plans to help customers address a range of risks facing their business, including introduction of risk
management measures.

1–13

Other Services

PR1

As shown below, the Group’s three life insurance companies offer diverse services to meet the requests of customers.
lT
 &D Club Off
T&D Club Off provides a range of services for promoting health and off-time activities to the policyholders of the three life insurance companies and Pet andFamily Small-amount Short-term Insurance.

n Examples of Services
l Domestic accommodations l Online reservations for overseas hotels l Business hotel desk l Golf desk l Leisure facilitiesl Complimentary telephone counseling service on childcare, nursing care, taxation, pensions, asset management, post-retirement life, etc.
l Services for supporting daily living, full of many useful serviceslC ustomer Service Center Open on Saturdays and Sundays Taiyo Life
In order to provide services to customers who are busy on weekdays, Taiyo Life’s Customer Service Center or call center, operates on Saturdays and Sundays
from 9:00 to 17:00 as well. (Sunday operation started on March 25, 2012.)lE stablishing Support Center Taiyo Life
Taiyo Life established its Support Center in December 2011. Using the videophone functions built into the portable terminals carried by sales representatives,
the Support Center responds in real time to inquiries concerning specific details and other matters originating from customers. The Support Center is inoperation from 9:00 to 21:00, seven days a week.

lU seful Services for SMEs Daido Life
Daido Life provides various services to policyholders to support their business management and health promotion.

n Examples of Services
l Providing reports on management strategies, industry trends and other useful business informationl Providing a standard form of company regulationsl Complimentary assessment on possibility to receive public subsidies and supportsl Complimentary assessment of employment regulation l Providing information on public supportsl Health counseling and second-opinion servicel Health screening referral service* For more details, please contact the customer service center of Daido Life.

lS
 ervices through the Internet

FS14

The Group’s three life insurance companies and other Group members provide various kinds of information on their websites. To improve the convenience ofcustomers, we also offer online services for payment, inquiries and change of registered information. At Pet and Family Small-amount Short-term Insurance,
customers can purchase pet insurance on the company’s website.

n Examples of Services
Taiyo Lifel Change of information related to contract, such as change of address,
request for adding designated proxy application option, change ofpasswordl Request for application forms for change of account, change of first/
family name, loan repaymentl Services to raise convenience of policyholders, such as fund transfer forpolicyholder loans, withdrawal of accumulated dividends and deferredfunds
l Reissue of insurance certificates, annuity payment certificates, deferredinsurance fund payment certificates and life insurance premium
payment certificatesl Inquiries about insurance policy details
Daido Lifel Change in contract and insurance claim such as change of address,
account, etc.

33 T&D Life Group Corporate Responsibility Report 2014l Web-ATM for making loans to policyholders, withdrawal ofaccumulated dividends, etc.
l Inquiries about insurance policy details, inquiries about accounts
for automatic withdrawal of insurance premiums, and guidance on
insurance premiums accounting method
T&D Financial Lifel Inquiries about summary and details of policy such as coveragedetails and change in accumulated fundsl Transfer of accumulated funds, set up transfer ratio in case ofcontracts with periodic increase of amountl Requests for various forms for procedures, change of address, reissueof certificates for life insurance premium payment, etc.
* For more details, please contact the respective customer service
centers of the Group’s three life insurance companies.

Special Features

Social Aspects

n Professional Training for High Quality Service
PR1

FS4

Group’s three life insurance companies are working to enhance the skills of their customer service staff to increase customer satisfaction
focusing on basic and specialist knowledge about life insurance as well as compliance.
The three life insurance companies have diverse staff members such as sales representatives, customer service staff, agents and wholesalers whoare engaged in duties to provide the most suitable services to customers depending upon each individual business model. We have developed
human capital training programs for such diverse staff, and always work to provide them with the best educational and training opportunities.

Education Program for New Employees Taiyo Life

1–17

FS4

Education Programs for New Sales Representatives

Acquiring basic
knowledge on
general topics

Training Stage 1

Training Stage 2

Training Stage 3

First to third month

Fourth to sixth month

Seventh to twelfth month

Deepening understandingof basic product knowledge
and improving sales skills
necessary for offering
optimal insurance plans tocustomers

Enhancing sales skills andacquiring knowledge about
after-sale services, including
insurance payoutprocedures

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

Preregistration
training

Registration

Pre-exam
training

Acquiring basic
knowledge for
insurance sales,
includingknowledge
about products
and contract
proceduresCompulsory:
3rd Grade Certified Skilled Worker
of Financial Planning

E-DFP (Executive Daido Financial Planner) Program Daido Life

Sales representatives must get a firm grasp ofcustomer needs, which are diversifying andbecoming more sophisticated, and practicehigh-quality consulting-oriented sales. For
this reason, Daido Life has set up its own
E-DFP (Executive Daido Financial Planner)
system whose purpose is enabling its sales
representatives to obtain a wide range ofprofessional knowledge including taxation,
finance, and financial products. The E-DFP
qualification is awarded to those who pass
the six college course examinations and are
certified as a second-grade or higher-skilled
financial planner (including AFP and CFP).

PR1

LA11

PR1

FS4

Program (As of March 2014)n E-DFP
E-DFP
Program (As of March 2014)

Professional
Course Exam

Advanced Professional
Course Exam

College Course Exam (6 courses)

Life Consultant

SeniorLife Consultant

Total Life Consultant

Industry-wide
education andexam

FP skill
certification exam

3rd Grade Certified Skilled
Worker of Financial Planning

Sales Agent Training Program Daido Life

Acquisition of
E-DFP qualification(717 staff members)

2nd Grade Certified Skilled Worker
of Financial Planning or above

1,813 staff members (including CFPs and AFPs)

LA11

PR1

FS4

At Daido Life, the head office and branches closely work together to provide high-quality support for sales agents, by assisting them to beable to respond to customers’ diversified needs.
As a part of the efforts, the company develops programs to offer practical training, using its own e-learning materials and practical guides tohelp sales agents acquire broad knowledge on the compliance and insurance business.

1–18

Wholesaler Activities T&D Financial Life

Social Aspects

1–16

LA11

n Education Programs for New Sales Representatives

Examination on general education

Taiyo Life has a system in place to train sales
representatives to develop their capabilities
to design and offer optimal insurance
plans that meet each customer’s needs
depending on a variety of factors, including
family structure, occupation, income, planfor children’s education, insurance alreadypurchased and so on, aiming to increaseeach 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.

Application

1–15

Outline of the T&D Life Group

LA11

Management

Development of Service Staff Skills

LA11

PR1

FS4

T&D Financial Life carries out elaborate support activities for the sales agents, e.g., banks and other financial institutions, through its staff(wholesalers) assigned to assist sales agents in order to enable them to make the best proposals to customers. In addition, in order to win
the trust of customers and sales agents, the company provides practical training to wholesalers, covering a broad range of knowledge about
insurance and other financial products, overall asset management, related laws and regulations as well as presentation skills for accurately
explaining features of our products to customers and sales agents.
T&D Life Group Corporate Responsibility Report 2014 34

Appendix

1–14

2. Together with Our Employees
2–1

Basic Concept

As stated in “3. Respect for Human Rights” of the Group CSR Charter, “T&D Life Group will respect the individuality of all its employees,
ensure a safe and rewarding work environment, and develop its human resources.” The T&D Life Group believes that creating a comfortable
work environment where employees are able to work to meet the social needs is an important corporate responsibility that goes beyond
respecting human rights and leads to the growth of the company and vitalization of society.

n Utilization and Development of Human Resources

2–2

Human Resources Development Policy

FS4

Since its establishment, the T&D Group has been promoting the “creation of a corporate culture that encourages demonstration of diverse
talents” under the Group policy of pursuing the improvement of corporate value by allowing each Group company to pursue its own uniqueand specialized business strategies. Under these shared goals, each Group company has formulated its training programs to develop andenhance the skills and capabilities of employees.

2–3

Employee Education and Training

LA11

FS4

The Group’s three life insurance companies provide employees with education and training through on-the-job training, group training,and supporting self-educational efforts. The Group encourages personal career improvement efforts of individual employees by actively
supporting their efforts to earn professional qualifications and offering a broad array of courses through correspondence study, e-learning andso forth.

2–4

Initiatives to Offer Employees Opportunities for Growth

LA11

FS4

The T&D Life Group carries out a systematic job rotation so that employees can enhance their ability to work with a broad company-wide
perspective by experiencing various jobs within the organization. Young employees acquire basic knowledge and improve their skills throughexperiencing different positions, for example, by changing workplace from the Head Office to branches or changing jobs from sales toadministrative works, or vice versa, for a certain interval after joining the company. At the managerial level, employees who have served as
Head Office division managers are to serve as branch general managers, or branch managerial staff are transferred to Head Office positions
in a job rotation in order to strengthen their managerial skills. In addition, the Group’s three life insurance companies furnish employees with
opportunities to actively develop their own skills and offer support for their career development.
Taiyo Life, Daido Life, T&D Financial Life

Taiyo Lifel In-house Recruiting
Under this system, employees can take up various challenges, such as
application for positions of their choice and MBA programs.
l Personnel Exchange within Group
Personnel exchange is promoted among Group companies forfacilitating the sharing of the well-developed skills and useful knowhow possessed by each Group company.

l Working Experience at Different Workplace
Taiyo Life has developed a personnel program to offer employees anopportunity to work at different branches or at the head office, forassisting employees to gain a wider range of business experience,increase operational efficiency and facilitate in-house communication.

Phase I: (2008–2012)

Phase II: (2013– )Temporary transfer or transfer
to other Group company for
1 to 2 years

Newly added short-term training
program for a maximum
period of 1 month

Participants in 5 years
from 2008 to 2012

Participants in fiscal 2013
(including long-termtransfer programs)

50 employees(47 men, 3 women)

17 employees(3 men, 14 women)

35 T&D Life Group Corporate Responsibility Report 2014

Daido Lifel Overseas Training Program
Daido Life offers employees opportunities for overseas trainee oroverseas internship with the aim of fostering future leaders who are able
to flexibly respond to the changing business environments as a resultof globalization, as well as helping them develop strong leadership andlanguage skills.

Special Features

Social Aspects

n Diversity Initiatives
Employment of People with Disabilities and Seniors

As of the end of March 2014, a total of 322 employees with disabilities, including 39 new recruits for fiscal 2013, worked in the Group’s threelife insurance companies, accounting for 2.15 percent of the total number of employees. We will continue working to create a workplaceenvironment that encourages and supports people with disabilities to work comfortably and promote employment of the disabled.
The Group’s three life insurance companies have introduced a reemployment program for employees reaching the mandatory retirement age.
Under this program, individuals can be re-hired up to the age of 65. In addition, Taiyo Life and Daido Life hold life plan seminars for employees
of a certain age before their retirement. The seminars offer them opportunities to think about their future styles of working and living.

Human Rights Education

HR3

FS4

The T&D Life Group holds human rights education sessions for all employees more than twice a year on various issues, such as discrimination
due to social class or disability and sexual harassment, to deepen employees’ understanding of the importance of respecting human rights.

Initiatives to Support Women’s Careers

LA11

To create a corporate environment where employees feel motivated and enthusiastic about their work, the T&D Life Group takes a variety ofmeasures. Our Group works together to promote a women’s empowerment initiative under which motivated and talented female employees
are promoted to management positions and, career path seminars are organized, to name but a few.
l Hosting Joint Seminars by Group Companies on Promoting
Active Participation of Women
In fiscal 2013, women’s seminars were held for middle-level female
employees (118 employees) at the three head offices in Tokyo,
Osaka and Saitama on the subject of demonstrating leadershipand raising awareness for taking on managerial positions. In
addition, seminars for managerial employees were held withthe theme of “Promoting the active participation of women as amanagement strategy.”l Personnel Exchange within the Group for Locally Attached
Female Employees
In fiscal 2013, short-term personnel exchange program of one tofour weeks were launched to enable employees to experience
working at another Group company, and 13 early- to mid-career
female employees participated in the program.
Taiyo Lifel Training for manager candidates
A management development program is in place under which grouptraining is provided to competent manager candidates selected fromamong mid-career employees at offices across the country. Candidacy
for the program is not restricted to any career category (clerical versus
career-track) or gender.
l Training for female managers
In order to enhance the capabilities of female managers, Taiyo Life
implements management training for female junior managers, andprovides networking opportunities for female managers to promote
their mutual education.
l Promoting diversity
Diversity Promotion Project Team conducts company-wide activities
aimed at expanding the roles and responsibilities of female employees.

Daido Lifel Enhancement of the Challenge Career System
An in-house short-term internship program has been established andoffered to locally hired employees, who are generally not subject torelocation. In addition, Daido Life supports career development andnew skill development of female employees by gradually expanding thescope of programs, such as inter-company transfer and the free agent(FA) application system, that have traditionally been available only tonationally hired employees.
l Abolishment of job posting scheme and introduction of new
personnel system
The personnel system has been revised to abolish the administrative
three-grade job posting scheme (career-track, area career-track, clerical)
and replace it with a system consisting of two categories: the “nationally
hired” (subject to nationwide transfer) and the “locally hired” (notsubject to nationwide transfer). Under the new system, employees,
regardless of employment category, can be promoted to managerial
positions up to division manager or branch general manager level, andcan take on a new challenge in a wider scope of responsibilities such as
sales, administrative operations.

Management

2–7

Social Aspects

2–6

Outline of the T&D Life Group

LA11 LA13

T&D Financial Lifel Training on supporting the active participation of women
In order for female employees to gain a clear image of the leadershipthey should pursue and to acquire the skills required for such leaders,the company is offering periodic collective training on various
themes, including “Communication with the people around you,”“Demonstrating leadership” and “Guidance and cultivating subordinates
and juniors.”

T&D Life Group Corporate Responsibility Report 2014 36

Appendix

2–5

n Worker-friendly Work Environment

2–8Work-life Balance Initiatives

LA3

LA15

Individual companies belonging to the T&D Life Group have been enhancing various efforts aimed at enabling employees to demonstrate
their capabilities and improve their performance at work while at the same time fulfilling their responsibilities at home, such as childcare,nursing care and household, by improving the childcare leave system and reducing overtime. In order to promote the active participation of
women, the Group as a whole is promoting work-life balance initiatives with an awareness of the need to create workplaces where womencan continue working for a long time while experiencing life events such as marriage and childbirth.
Taiyo Life
Taiyo Life is supporting various work styles by promoting a flexible
work-hour system and making continuous efforts toward reducing total
work hours, expanding eligibility for and upgrading the flextime system,
and introducing a short working hour system for employees engaged inchildcare and nursing care.

Daido Life
Daido Life is supporting diverse work styles suited for different life
stages of individual employees by introducing a “home groundsystem” under which employees aged 55 and older can select work
location, a “stay-home work system” for head office employees, and a“course change system” to enable employees to change their statusfrom “nationally hired” to “locally hired” for a certain period of time forchildcare and nursing care.

T&D Financial Life
Aiming at fostering a corporate culture that enhances the job
satisfaction of employees, T&D Financial Life has been making efforts toprovide a workplace that allows employees to realize work-life balance.
Specific measures taken include introduction of a short working hoursystem, promotion of the use of the flextime system, reduction in
overtime working hours through establishment of no overtime day, etc.

l Three Life Insurance Companies’ Administrative Employees
Taking Childbirth and Childcare Leave
FY 2011

FY 2012

No. of employees taking maternity leave

78

105

98

No. of employees taking childcare leave

152

154

169

Male

76

51

71

Female

76

103

98

138

125

155

Male

75

52

71

Female

63

73

84

95.2

89.9

97.5

Male

100.0

100.0

100.0

Female

90.0

83.9

95.5

No. of employees returning to work
after childcare leave

Proportion of employees returning towork after childcare leave (%)

2–9

FY 2013l Supporting Parents Raising the Next Generation ofChildrenSince the enforcement of the Act on Advancement of Measures to Support
Raising Next-Generation Children in April 2005, the T&D Life Group has
formulated a unified action plan every two years to enhance the childcare
support system and promote work-life balance. Regarding support for thedevelopment of young people, the Group’s three life insurance companies
received certification as meeting the criteria of the Act on Advancementof Measures to Support Raising Next-Generation Children for four
consecutive biennial periods starting from the first period from April 1,
2007 to March 31, 2009. For the fourth period, T&D Asset Management
obtained the certification for the first time in addition to the three life
insurance companies. Additionally, in April
2008, T&D Information Systems became thefirst 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 three consecutive
periods in May 2012.

l The Fifth Action Plan (April 2013 to March 2015)
Five companies, namely, T&D Holdings, the three life insurancecompanies and T&D Asset Management, set a unified goal and promoteactions as a Group.

Target 1

In order to foster a caring workplace culture that supports
childbirth and childcare, ensure that all employees are awareof company programs and systems based on the Child Careand Family Care Leave Act and other relevant laws.

Target 2

Encourage the practice of reducing total working hours
through continuation of no-overtime days, etc.

Target 3

Implement educational measures for employees to foster aworkplace where all employees, both men and women, canfeel motivated and enthusiastic about their work.

Dialogue and Consultations with Labor Unions

4.4

Each of the three life insurance companies in the T&D Life Group has an independent labor union, and the companies and labor unions work
together to maintain a sound labor-management relationship based on the spirit of trusting each other. 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
companies and the labor unions can be built only through straightforward discussions based upon their respective viewpoints, and that kindof relationship will motivate employees and bolster the competitiveness of the companies.

37 T&D Life Group Corporate Responsibility Report 2014

2–10

Initiatives Reflecting Employee Feedback

Special Features

Social Aspects

4.4

LA8
l Initiatives by Human Resources Department
The T&D Life Group has a clinic at headquarters, 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 takecare 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.

LA9lH
 ealth Insurance Societies
The Group’s three life insurance companies have their own
independent health insurance societies, which work to prevent
lifestyle diseases, promote good health and engage in otheractivities to help society members manage their health. The
societies cover medical costs for the members and theirdependents; conduct campaigns to raise awareness aboutproper use of health insurance; pay subsidies for annual physicalexaminations such as complete medical check-ups and promote
cancer screening. Since fiscal 2008, the companies’ healthinsurance societies have also been implementing specified
medical check-ups and health care guidance with the aim ofpreventing lifestyle diseases.

3. Growing with Society
3–1

Basic Concept

EC8With a strong awareness of the public and social nature of its core business of life insurance, the T&D Life Group implements a variety of
initiatives aimed at contributing to society 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. Our efforts focus primarily on “improving health, medicalcare and welfare,” “developing a sound society, including sound growth of young people responsible for the next generation” and “protecting
the global environment,” the themes considered highly relevant in view of our commitment to fulfilling our public mission and meeting oursocial responsibilities with the ultimate aim of achieving sustained growth in step with society.
* With regard to protecting the global environment, we have established the T&D Life Group Environmental Policy, based on which a range of measures have been taken to reduce
our environmental impact.

n Improving Health, Medical Care and Welfare

3–2

Management

Health Promotion for Employees

Blood Donation Drive

Social Aspects

2–11

Outline of the T&D Life GroupThe Group’s three life insurance companies conduct employee awareness surveys addressing issues like job satisfaction, working conditions
and the personnel evaluation system, and have implemented various measures based on the survey results. We obtain the views from
employees as reference information for management, which include opinions about the current personnel system and the operation of thesystem, as well as the employee satisfaction, a critical element leading to a greater customer satisfaction.

EC8

3–3

Supporting the Japan Down Syndrome Society Taiyo Life

EC8

Taiyo Life and Friends of Taiyo Life Goodwill Circles support the Japan Down Syndrome Society.
<Main Activities>l The company supports activities as a co-sponsor.
l The company provides its meeting rooms for seminars as well as council and board meetings held by the Society.
l Executives and employees from branches and Head Office departments take part in the Society’s activities as volunteers.

T&D Life Group Corporate Responsibility Report 2014 38

Appendix

The T&D Life Group cooperates with blood drives hosted by the Japanese Red Cross Tokyo Metropolitan Blood Center.
In this semiannual joint group project, a blood donation clinic is set up for two days at the Shiodome Head Office Building and executives
and employees are encouraged to donate blood. In fiscal 2013, a total of 386 directors and employees of the Group donated blood during
the drive.

3–4

The Taiyo Life Welfare Foundation

EC8<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>l Project grants: Grants to the projects by volunteer groups and NPOs working to contribute to the welfare of the elderly and the disabledliving at home.
l Research grants: Grants for study and research regarding lifestyle diseases and the health care and welfare of the elderly.
<Cumulative Grants from Establishment to FY 2013> 1,741 grants, 1,142 million yen
l Main Activities in FY 2013
Aiming to fulfill its key founding objective of contributing to improved social welfare, the foundation continued offering grants toprojects undertaken by volunteer groups working resolutely to enhance the welfare of local communities, and to projects to support
reconstruction of the areas affected by the Great East Japan Earthquake. The foundation also awards research grants to study andresearch programs seeking to improve the welfare of the elderly and so on. In fiscal 2013, a total of 60 grants (worth 22.36 million yen)were offered to 55 volunteer/NPO projects (19.96 million yen) and 5 study/research projects (2.4 million yen).

3–5

Daido Life Welfare Foundation

EC8<Purpose of Establishment>
The foundation was established in 1974 by Daido Life with the aim of contributing to public health and welfare by providing grants toprograms designed to address health problems arising from the deterioration of environment and various issues associated with the sharp
increase in the number of elderly people.
<Main Activities>l Regional health and welfare research grants & volunteer activity grants• Regional health and welfare research grants: Support research programs conducted by people involved in public health promotion andwelfare activities to address issues faced by local communities in the areas of health, medical care and social welfare• Company worker volunteer activity grants: Support volunteer activities conducted by people who use their days off to work towardenhancing the welfare of senior citizens and disabled people, or fostering the healthy mental development of children through social
interchange• Senior volunteer activity grants: Support volunteer activities conducted by people aged 60 and over to enhance the welfare of seniorcitizens or disabled people, or foster the healthy mental development of children through social interchange<Cumulative Grants from Establishment to FY 2013> 3,375 grants, 1,542 million yen
l Publication of environment and health brochures
Publish the “Environment and Health” series brochures, which contain articles written by experts in a compact and reader-friendly styleon various issues of particularly high public interest in areas of the environment, health and welfare. Since its launch in 1975, 69 brochures
have been published.
In response to growing public interest in these themes, new and part of past publications were digitized and made publicly available on
the foundation’s website.
l Home care/nursing consultation and workshop
A video mostly depicting scenes from the home care/nursing workshop is available on DVD and can be borrowed free of charge.

39 T&D Life Group Corporate Responsibility Report 2014

Special Features

Social Aspects

n Developing a Sound Society, including Fostering of Young People
Nationwide Clean Campaign Taiyo LifeAs a part of its activities for contribution to the local community, Taiyo Life began an annual cleaning of the vicinity of its Head Office in 1982.
In 2004, it renamed this activity the “Nationwide Clean Campaign,” and its branches nationwide, from Hokkaido in the north to Okinawa inthe south, began clean-up campaigns in the surrounding community. In fiscal 2013, the Campaign attracted 8,612 participants (executives,
employees, and their families) from the Head Office, affiliated firms, and branches.
The Head Office, based in the Shiodome district in Tokyo, organized a joint street cleanup campaign in cooperation with the Minato Ecoconscious Consortium (mecc) based in Minato Ward in Tokyo, of which Taiyo Life is a member. Employee volunteers from Group companies(Daido Life, T&D Financial Life, T&D Asset Management, T&D Holdings) and Taiyo Life’s affiliates as well as from the mecc member companies
participated in the event.

3–7

Sponsorship to the Japan Junior High School Rugby Football Tournament Taiyo Life EC8Since fiscal 2011, Taiyo Life has been a special sponsor of the Japan Junior High School Rugby Football Tournament hosted by the Japan
Rugby Football Union (JRFU). Taiyo Life chose this sponsorship in sympathy with the basic spirit of Rugby, “all for one, one for all” which iscommon to the basic principal of life insurance. In full endorsement of the objective of the tournament, which can be summarized as “helping
young rugby players and other youth to develop the quality and skills necessary for shaping a sound society,” we are supporting the sounddevelopment of young people through promoting junior high school rugby in cooperation with the JRFU.

3–8

Supporting the National Sports Festival for People with Disabilities Daido LifeEC8

In 1992, when the company celebrated its 90th anniversary, the first National Sports Games for the Mentally Handicapped (Yuaipic)* was heldin Japan, and Daido Life has been a special supporter of this annual event since then. It is the largest sports event for people with disabilities
in Japan, aiming at helping the disabled experience the joy of playing sport, raising public awareness about their lives, and promoting greatersocial participation. Every year, Daido Life sets up a company booth in the Fureai Hiroba (Get-Together Plaza), a venue for interacting withparticipating athletes, where many executives and employees of Daido Life work as volunteers to support this event. Joined by Taiyo Life in
2000, the Group’s volunteer activities to support the Games have been expanding since then.

Outline of the T&D Life GroupEC8Management

3–6

3–9

Endowed Open Courses at Universities Daido Life

EC8

Daido Life began supporting open lectures at universities in fiscal 2002 as part of the company’s centenary celebrations. The lectures areorganized to provide owners and managers of small- to medium-size enterprises with opportunities to acquire knowledge and skills relevant
to business management, by exploring a variety of themes selected for each university using theoretical and practical approaches.
In fiscal 2013, the open lectures were held at 5 universities. Over the past 12 years, over 9,800 people have attended the lectures, which havebeen favorably received by the participants.

Social Aspects* The National Sports Games for the Mentally Handicapped merged with the National Sports Games for the Physically Disabled in 2001, and has been held
as the National Sports Games for the Disabled since then.

Appendix

In fiscal 2013, open courses were held at:
Fukushima University, Meiji University, Kwansei Gakuin University, Kansai University, Fukuoka University

T&D Life Group Corporate Responsibility Report 2014 40

3–10

Friends of Taiyo Life Goodwill Circles

EC8

The Friends of Taiyo Life Goodwill Circles (“Friends”), which was established in December 2005 and is composed of executives and employees
from Taiyo Life and its affiliates, has 8,829 members as of March 31, 2014. In order to support social contribution activities, the members
contribute every month odd amounts under 100 yen, or any amount from 100 yen to 1,000 yen, integral multiple of 100 yen, from their takehome salary.
At present, the Friends mainly provides supports for local community-based social contribution activities driven by branches nationwide andHead Office departments, environmental conservation activities in cooperation with NPOs and the like, and educational support. Details of
the activities are posted in Taiyo Life’s in-house journal, through which the company is calling for a broader participation by executives andemployees in the activities.
<Main Activities in FY 2013>lC
 ontribution to local communities: Participation in a concert hosted by a childcare facility for kids with special needs in Setagaya Ward in Tokyo; andcollection and donation of pull tabs, aluminum cans and PET bottle caps.
l E ducational support: Donation of school bags to children in Afghanistan through JOICFP (a Japan-based international NGO)

3–11

Daido Life Employees’ Community Contribution ClubEC8

The Daido Life Employees’ Community Contribution Club, which was established in 1992 as an independent organization for corporate
citizenship activities and is composed of Daido Life’s executives and employees, works to promote and support fund-raising activities andvolunteer activities.
In addition, since 1994, the Club has been implementing a program of “One-day Outing Volunteer Activity for the Physically Disabled.”
Under this program, employees take a volunteer work leave to help the people with physical disabilities, who are rarely able to go outside
in everyday life, so that they can take part in an outing. The program offers participants opportunities to deepen their understanding of
disabilities by directly interacting with disabled people while talking and dining together, assisting wheelchair users, providing walking
assistance and so forth.
<Main Activities in FY 2013>l F und raising and donation: Proceeds from donations from executives and employees and revenues from the charity calendar exhibitions were used as
funds to make contributions to organizations that support social charitable activities and facilities for the disabled.
lU
 sed stamps and pre-paid cards collection drive: Used stamps and pre-paid cards collected by Head Office departments, branches nationwide, andaffiliates were put to good use in supporting overseas medical cooperation and in giving wells as gifts to the areas in Asia suffering from water shortages
through organizations supporting social contribution activities. In addition, by collecting PET bottle caps, the Club also assisted the Ecocap Movement
to fund vaccines for the children in the developing world while contributing to the global environment.
lV olunteer activities: In addition to participating as volunteers in the “National Sports Festival for the Disabled” and conducting “One-day Outing
Volunteer Activity for the Physically Disabled,” the Club also participated in clean-up activities in the areas surrounding the Osaka Head Office and theTokyo Head Office.

3–12

Hosting Internship Program Daido Life

EC8

FS16

Daido Life provides college students with internship opportunities in order for them to understand the life insurance business, both forgeneral business operations and specialized operations such as actuary and asset management. Through the internship program, where theparticipants can practice working experience in the workplace related to their university major and career interest, they will be motivated towork and deepen their understanding of the required knowledge and skills and a typical workplace environment, and utilize them as a basis
for designing a specific career plan and for considering their aptitude.

3–13

Providing Asset Management Services to Universities T&D Asset Management EC8

FS16

Believing that the essence of its corporate responsibility lies in broadly contributing to society through its core business of asset management,
T&D Asset Management provides asset management services to universities to help them establish governance over their asset management
and strengthen their financial foundations so that they can engage in high-quality education and research.

41 T&D Life Group Corporate Responsibility Report 2014

3–14

The Daido Life Foundation

Special Features

Social Aspects

EC8

3–15

Disaster Relief Fund Donations

Management<Main Activities>l Presentation of Daido Life Foundation Awards for Area Studies
To encourage the area studies globally, the Foundation gives “Daido Life Foundation Awards for Area Studies” and “Daido LifeFoundation Encouragement Awards for Area Studies” to researchers who have achieved superior results in area studies.
Daido Life Foundation Area Studies Special Awards are presented to individuals who have made a distinguished contribution to
deepening international mutual understanding.
l Translation and publication activities
With the aim of helping Japanese people deepen their understanding of the history, cultures and customs of other Asian countries andfacilitate friendship between them, the foundation undertakes translation of literature published in the region; 62 contemporary Asian
works including novels, poems, essays, etc. from 12 countries were translated into Japanese and donated to universities and public
libraries across Japan. With a view to increasing readers of and interest in these works, the foundation has digitized these publications,
including new and past projects, since fiscal 2012 and has made them available for free in an electronic form via the foundation’s
website. On the other side, Japanese literature and biographies of Japanese figures are translated into various Asian languages in a bid tohelp people in the region to develop a better understanding of Japan and its culture. A total of 33 Japanese works have been translated
into local languages for publication in 8 countries and donated to local universities and libraries.
l Educational support activities
The foundation offers support to improve educational environments in Southeast Asian countries by sponsoring school construction
projects (20 schools constructed in five countries as of September 2014) and donating books and school supplies in the hope to raiseawareness of the importance of school-based education in local communities. In commendation of its efforts and contributions to
education over the years, the foundation was conferred a Third Order of Labor Merit by the government of Laos in February 2013.

Outline of the T&D Life Group<Purpose of Establishment>
The Daido Life Foundation was established in 1985 in celebration of the company’s 80th anniversary. The objective of the foundation isto promote international mutual understanding through cultural exchanges with or grants to other countries, thereby contributing to theinternationalization of Japan.

EC8

The T&D Life Group and the Group companies make contributions to disaster relief funds when major disasters occur.

4. For Global Environment
Basic Concept

4.8

EN26

FS1

In April 2006, the T&D Life Group formulated the T&D Life Group Environmental Policy, to clarify the Group’s stance on the environment and to publicize
the policy among executives and employees and has promoted various activities to reduce our environmental impacts based on the policy.
In addition, based on the above environmental 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 in 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 productbrochures and policy documents.

Social Aspects

4–1

T&D Life Group Environmental Policy

1. Environmental Conservation Efforts through Business Activities
We will contribute to the protection of the global environment inall 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 ourenvironmental performance.

All members of the T&D Life Group are notified of this environmental policy, which is also publicly disclosed.

T&D Life Group Corporate Responsibility Report 2014 42

Appendix

The T&D Life 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 Life Group CSR Charter. The Group will achievesustainable growth 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.

4–2

Environmental Initiativesl Reduction of CO2 Emissions
Because at least 90% of the CO2 emissions are from electricity at
the T&D Life Group, we are therefore taking actions to set targets
for electricity use and cutting energy consumption.
l Energy-Saving Efforts
Each year the T&D Life Group participates in a “Cool Biz” campaign
from May to October (setting thermostats at 28°C) and a “WarmBiz” campaign from November to March (maintaining a room
temperature of 20°C).
Also, 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.
l “Lights Down” Campaign
As an activity to raise the environmental awareness of each of theGroup’s executives and employees, the T&D Life Group has been
conducting a campaign in which it calls for a simultaneous switchoff of all the lights in offices twice a year, in July and December.
This was done in support of the “Reduce CO2: ‘Lights Down’
Campaign” initiated by the Ministry of the Environment to ask
lighted-up facilities and individual homes to turn off lights in orderto help combat global warming.

4–3

EN7

EN18

l Efforts for Achieving the Group-wide Targets
n Electricity Consumption
In addition to the energy-saving activities described in thepreceding sections, we implement a multitude of measures
to reduce electricity consumption. These efforts range fromintroducing a power demand monitoring system for controllingpeak-time use in each building and setting a “no overtime day,”encouraging employees to put their computers into standby
mode when they are away from their desk, reducing elevator
use in some buildings, to turning off printers and multifunction
machines when leaving offices.
n Office Paper Use
To decrease the use of office paper, we ensured efficient paperuse, such as 2-in-1 and two-sided printing and test printing
before printing a large quantity.
n Green Purchasing Ratio
When procuring office supplies and stationery, we promote
green purchasing by giving priority to products that arecompliant with the Act on Promoting Green Purchasing and Eco
Mark products.

Forest Conservation and Afforestation Taiyo LifeEN13l Forest Conservation and Afforestation Activities
Life insurance companies use vast amounts of paper including office paper, life insurance pamphlets, policy provisions and others in
the course of its business operations. To restore forest resources and preserve greenery, Taiyo Life conducts afforestation projects. It hasestablished “Forest of Taiyo Life” in Nasu-Shiobara (Tochigi Prefecture) and Takashima (Shiga Prefecture).
The first Forest of Taiyo Life was established in March 2006 in Nasu-shiobara as a contract-based project under the Forestry Agency’s“Corporate Forest” program. In cooperation with the Enna District Forest Office and others, this year we organized forest improvement
activities in July, September and November, implementing forest thinning, creation of the Ikoi No Hiroba Park, and improvement of forest
roads (total participants for the year: approx. 200). Our second corporate forest (Kutsuki Forest of Taiyo Life) was established in Takashima
in November 2007. For this forest, we collaborated with local NPO the Asosatoyama Center in conducting forest improvement activities,
including improving forest roads and biotopes, in June, September and December, and in hosting the “Acorn Project” in October andNovember. For the latter, local elementary students grow broad-leaf seedlings from acorns and then plant them in the forest at the time of
their graduation (total participants for the year: approx. 300).
ForestForest of Taiyo Life (Tochigi Prefecture)

Kutsuki Forest of Taiyo Life (Shiga Prefecture)

Date of contract

March 2006

November 2007

Area

Approx. 4.8 ha

Approx. 12.7 ha

CO2 absorption

19 t (Estimate by Forestry Agency)

81 t (Estimate by Takashima City)l Forest Conservation Initiative: Use of Timber from Forest-Thinning
As an initiative for reducing waste of resources while promoting sustainable forest conservation, Taiyo Life is doing the following activities inorder to achieve the “use it wisely” component of the “plant it, raise it, harvest it, use it wisely” cycle for forests.
“Chopsticks Project” launched to promote use of disposable
chopsticks made from domestic timber derived from forest
thinning and wood scraps
Our employees and executives used a total of 461,685 pairs ofchopsticks during the period from September 2006 to March 2014.

Active Use of “3.9 Paper”*
Chopstick paper cases for “Wood Thoughtfulness Chopsticks” etc.
Active use of paper made from timber from forest-thinning
Taiyo Life Communication Report* “3.9 Paper” is a project launched to promote the use of domestic timber from forest thinning. Under this project, the costs of transporting timber from the forest to
the wood chip mill are borne by users of the paper.

43 T&D Life Group Corporate Responsibility Report 2014

4–4

Environmental Communications and Educational Activities

Special Features

Social Aspects

FS4

Environment-related Funds T&D Asset Management

FS8l China Environment-related Investment Funds (Green China)
Via Green China, its Chinese environment-related investment fund, T&D Asset Management invests in companies that demonstratesuperiority in terms of resources and environment-related competitiveness such as efficient use of energy and water, reducing environmental
pollution, and participation in afforestation activities in the greater China area. Net Asset Value of the fund as of the end of March 2014 wasapproximately 156 million yen.
l Green Infrastructure Fund 1303 (Green Infrastructure Fund)Via its Green Infrastructure Fund 1303 (the Green Infrastructure Fund) with prohibition of resale to others than qualified institutional investors, T&D
Asset Management invests in companies that generate, supply and sell electricity from renewable sources, etc. Net Asset Value of the fund as ofthe end of March 2014 was approximately 1,060 million yen.
Information given on this page in relation to the funds is intended to provide an introduction to CSR activities of the T&D Life Group. It is notprovided for the purpose of soliciting investment in the funds. For details on the Chinese environment-related investment fund Green China,
please see the investment trust prospectus and so on available on the T&D Asset Management website.

The Third-party Assurance of Environmental Performance Datan Independent Assurance ReportSocial Aspects

The T&D Life Group obtained the third-party assurance
from Ernst & Young Sustainability Co., Ltd. on theEnvironmental Performance Data and the Group
Environmental Performance Targets and Results forfiscal 2013 shown on pages 3, 4 and 8 of this report inaccordance with the International Standard on Assurance
Engagements (ISAE) 3000 and 3410 (International
Federation of Accountants).

3.13

Appendix

4–6

Management

4–5

Outline of the T&D Life GroupT&D Holdings endorses the activities of Associates of the Earth, a Japanese environmental NGO that produces the Japanese edition of “Our
Planet” and “TUNZA,” both published by the United Nations Environment Programme (UNEP). These two publications are distributed to allcompanies in the T&D Life Group as well as to local elementary schools, junior and senior high schools, public libraries and others to raiseawareness of environmental issues.

T&D Life Group Corporate Responsibility Report 2014 44

T&D Life Group Corporate Responsibility Report 2014

GRI Sustainability Reporting Guidelines version 3.1 Content Index
Item

Indicator

1. Strategy and Analysis
Statement from the most senior decision maker of the organization (e.g., CEO, chair, or equivalent senior position) about the
1.1
relevance of sustainability to the organization and its strategy.
1.2
Description of key impacts, risks, and opportunities.

3.12

Pages in this report22

2. Organizational Profile
2.1

Name of the organization.

2.2

Primary brands, products, and/or services.

5, 13, 15, 16

2.3

Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures.

13, 15–17

2.4

Location of organization’s headquarters.

2.5

Number of countries where the organization operates, and names of countries with either major operations or that are
specifically relevant to the sustainability issues covered in the report.

2.6

Nature of ownership and legal form.

2.7

Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries).

2.8

2.9
2.10

Scale of the reporting organization, including:• Number of employees• Number of operations• Net sales (for private sector organizations) or net revenues (for public sector organizations)• Total capitalization broken down in terms of debt and equity (for private sector organizations)• Quantity of products or services provided
Significant changes during the reporting period regarding size, structure, or ownership including:• The location of, or changes in operations, including facility openings, closings, and expansions• Changes in the share capital structure and other capital formation, maintenance, and alteration operations (for private sector
organizations).
Awards received in the reporting period.

3. Report Parameters
Report Profile
3.1
Reporting period (e.g., fiscal/calendar year) for information provided.
3.2
Date of most recent previous report (if any).
3.3
Reporting cycle (annual, biennial, etc.)
3.4
Contact point for questions regarding the report or its contents.
Report Scope and Boundary
Process for defining report content, including:• Determining materiality
3.5• Prioritizing topics within the report• Identifying stakeholders the organization expects to use the report
3.6
Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers).
3.7
State any specific limitations on the scope or boundary of the report.
Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly
3.8
affect comparability from period to period and/or between organizations.
Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations
3.9
applied to the compilation of the Indicators and other information in the report.
Explanationof the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement
3.10(e.g., mergers/acquisitions, change of base years/periods, nature of business, measurement methods).
3.11
Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.
GRI Content Index
3.12
Table identifying the location of the Standard Disclosures in the report.
Assurance
Policy and current practice with regard to seeking external assurance for the report. If not included in the assurance report
3.13
accompanying the sustainability report, explain the scope and basis of any external assurance provided. Also explain therelationship between the reporting organization and the assurance provider(s).
4. Governance, Commitments, and Engagement
Governance
Governance structure of the organization, including committees under the highest governance body responsible for specific4.1
tasks, such as setting strategy or organizational oversight.
Indicate whether the Chair of the highest governance body is also an executive officer (and, if so, their function within the
4.2
organization’s management and the reasons for this arrangement).
For organizations that have a unitary board structure, state the number and gender of members of the highest governance4.3
body that are independent and/or non-executive members.
4.4
Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.
Linkage between compensation for members of the highest governance body, senior managers, and executives (including
4.5
departure arrangements), and the organization’s performance (including social and environmental performance).
4.6
Processes in place for the highest governance body to ensure conflicts of interest are avoided.
Process for determining the composition, qualifications and expertise of the members of the highest governance body and its
4.7
committees, including any consideration of gender and other indicators of diversity.
Internallydeveloped statements of mission or values, codes of conduct, and principles relevant to economic, environmental,
4.8
and social performance and the status of their implementation.
Procedures of the highest governance body for overseeing the organization’s identification and management of economic,
4.9
environmental, and social performance, including relevant risks and opportunities, and adherence or compliance withinternationally agreed standards, codes of conduct, and principles.

45 T&D Life Group Corporate Responsibility Report 2014

14

14
13
Activities in Japan only
3
5, 9, 13, 15–16

4, 6, 14

Not applicable
16, 321
1
1
1

1, 12, 24
1, 4, 13–14
1, 4, 13
Not applicable4
Not applicable
4, 8
45–48

1, 44

17–19
18
4, 18
23, 25, 37–38
18
4, 18–19
18
11, 22, 42
12, 19–22, 26

Special Features—: No information in this report. However, this report does not cover all the activities of the Group.
CORE: “Core indicator,” meaning an indicator that most stakeholders are interested in.
ADD: “Additional indicator,” meaning an indicator for a new theme or a theme important to certain organizations.

Pages in this report

5. Management Approach and Performance Indicators
Economic
Disclosure on Management Approach
Economic

17–19
13, 20–23
25–26

14

11, 24
5, 23–25, 28–30
27

6–8, 14, 16
21
Not applicableNot applicableNot applicableNot applicable31, 38–42
3–4, 11, 42–44

3
3–4
3

Social Aspects

economic value generated and distributed, including revenues, operating costs, employee compensation, donations and
CORE Direct
other community investments, retained earnings, and payments to capital providers and governments.
EC2
CORE Financial implications and other risks and opportunities for the organization’s activities due to climate change.
EC3
CORE Coverage of the organization’s defined benefit plan obligations.
EC4
CORE Significant financial assistance received from government.
Aspect: Market Presence
EC5
ADD Range of ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation.
EC6
CORE Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation.
for local hiring and proportion of senior management hired from the local community at locations of significant
EC7
CORE Procedures
operation.
Aspect: Indirect Economic Impacts
and impact of infrastructure investments and services provided primarily for public benefit through commercial,
EC8CORE Development
in-kind, or pro bono engagement.
EC9
ADD Understanding and describing significant indirect economic impacts, including the extent of impacts.
Environmental
Disclosure on Management Approach
Environmental
Aspect: Materials
EN1
CORE Materials used by weight or volume.
EN2
CORE Percentage of materials used that are recycled input materials.
Aspect: Energy
EN3
CORE Direct energy consumption by primary energy source.
EN4
CORE Indirect energy consumption by primary source.
EN5
ADD Energy saved due to conservation and efficiency improvements.
to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements
EN6
ADD Initiatives
as a result of these initiatives.
EN7
ADD Initiatives to reduce indirect energy consumption and reductions achieved.
Aspect: Water
EN8
CORE Total water withdrawal by source.
EN9
ADD Water sources significantly affected by withdrawal of water.
EN10
ADD Percentage and total volume of water recycled and reused.
Aspect: Biodiversity
and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value
EN11
CORE Location
outside protected areas.
of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high
EN12CORE Description
biodiversity value outside protected areas.
EN13
ADD Habitats protected or restored.
EN14
ADD Strategies, current actions, and future plans for managing impacts on biodiversity.
of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of
EN15
ADD Number
extinction risk.
Aspect: Emissions, Effluents, and Waste
EN16
CORE Total direct and indirect greenhouse gas emissions by weight.
EN17
CORE Other relevant indirect greenhouse gas emissions by weight.
EN18
ADD Initiatives to reduce greenhouse gas emissions and reductions achieved.
EN19
CORE Emissions of ozone-depleting substances by weight.
EN20
CORE NO, SO, and other significant air emissions by type and weight.

Management

6, 11, 20

Aspect: Economic Performance

EC1

Outline of the T&D Life Group

Indicator

Processes for evaluating the highest governance body’s own performance, particularly with respect to economic,
4.10
environmental, and social performance.
Commitments to External Initiatives
4.11
Explanation of whether and how the precautionary approach or principle is addressed by the organization.
Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization
4.12
subscribes or endorses.
Memberships in associations (such as industry associations) and/or national/international advocacy organizations in which theorganization:• Has positions in governance bodies
4.13• Participates in projects or committees• Provides substantive funding beyond routine membership dues
• Views membership as strategic
Stakeholder Engagement
4.14
List of stakeholder groups engaged by the organization.
4.15
Basis for identification and selection of stakeholders with whom to engage.
4.16
Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group.
Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to
4.17
those key topics and concerns, including through its reporting.

Not applicable3, 43
4
Not applicable4
Not applicableNot applicable43
Not applicable88, 43
Not applicableNot applicable

T&D Life Group Corporate Responsibility Report 2014 46

AppendixItem

T&D Life Group Corporate Responsibility Report 2014

GRI Sustainability Reporting Guidelines version 3.1 Content Index

Item
EN21
EN22
EN23

Indicator

CORE Total water discharge by quality and destination.
CORE Total weight of waste by type and disposal method.
CORE Total number and volume of significant spills.
of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention
EN24
ADD Weight
Annex I, II, III, and VIII, and percentage of transported waste shipped internationally.
size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting
EN25
ADD Identity,organization’s discharges of water and runoff.
Aspect: Products and Services
EN26
CORE Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation.
EN27
CORE Percentage of products sold and their packaging materials that are reclaimed by category.
Aspect: Compliancevalue of significant fines and total number of non-monetary sanctions for noncompliance with environmental laws
EN28
CORE Monetaryand regulations.
Aspect: Transport
environmental impacts of transporting products and other goods and materials used for the organization’s
EN29
ADD Significant
operations, and transporting members of the workforce.
Aspect: Overall
EN30
ADD Total environmental protection expenditures and investments by type.
SocialLabor Practices and Decent Work
Disclosure on Management Approach
Labor Practices and Decent Work
Aspect: Employment
LA1
CORE Total workforce by employment type, employment contract, and region broken down by gender.
LA2
CORE Total number and rate of new employee hires and employee turnover by age group, gender, and region.
LA3
ADD Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations.
LA15
CORE Return to work and retention rates after parental leave, by gender.
Aspect: Labor/Management Relations
LA4
CORE Percentage of employees covered by collective bargaining agreements.
LA5
CORE Minimum notice period(s) regarding operational changes, including whether it is specified in collective agreements.
Aspect: Occupational Health and Safetyof total workforce represented in formal joint management-worker health and safety committees that help monitor
LA6
ADD Percentage
and advise on occupational health and safety programs.
LA7
CORE Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region and gender.
training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or
LA8
CORE Education,community members regarding serious diseases.
LA9
ADD Health and safety topics covered in formal agreements with trade unions.
Aspect: Training and Education
LA10
CORE Average hours of training per year per employee by gender and by employee category.
for skills management and lifelong learning that support the continued employability of employees and assist them
LA11
ADD Programsin managing career endings.
LA12
ADD Percentage of employees receiving regular performance and career development reviews by gender.
Aspect: Diversity and Equal Opportunityof governance bodies and breakdown of employees per employee category according to gender, age group,
LA13
CORE Composition
minority group membership, and other indicators of diversity.
LA14
CORE Ratio of basic salary of men to women by employee category.
Human Rights
Disclosure on Management Approach
Human Rights
Aspect: Investment and Procurement Practices
and total number of significant investment agreements and contracts that include clauses incorporating human
HR1
CORE Percentage
rights concerns, or that have undergone human rights screening.
of significant suppliers, contractors, and other business partners that have undergone human rights screening and
HR2
CORE Percentage
actions taken.
hours of employee training on policies and procedures concerning aspects of human rights that are relevant to
HR3
ADD Total
operations, including the percentage of employees trained.
Aspect: Non-Discrimination
HR4
CORE Total number of incidents of discrimination and corrective actions taken.
Aspect: Freedom of Association and Collective Bargaining
and significant suppliers identified in which the right to exercise freedom of association and collective bargaining
HR5
CORE Operations
may be at significant risk, and actions taken to support these rights.
Aspect: Child Laborand significant suppliers identified as having significant risk of incidents of child labor, and measures taken to
HR6
CORE Operations
contribute to the elimination of child labor.
Aspect: Forced and Compulsory Laborand significant suppliers identified as having significant risk of incidents of forced or compulsory labor, and
HR7
CORE Operations
measures to contribute to the elimination of all forms of forced or compulsory labor.
Aspect: Security Practicesof security personnel trained in the organization’s policies or procedures concerning aspects of human rights thatHR8
ADD Percentage
are relevant to operations.

47 T&D Life Group Corporate Responsibility Report 2014

Pages in this report
Not applicable8
Not applicableNot applicableNot applicable42
Not applicableNot applicable-

11, 35–38

4
8
37
37
8
8
38
38
34–36
4, 8, 36
11, 35–36

Not applicableNot applicable36
Not applicableNot applicableNot applicableNot applicableNot applicableSpecial Features

Contents

Outline of the
T&D Life Group

1. T&D Life Group’s Corporate Responsibility.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 11
2. Outline of the Organization.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 13
3. Outline of Businesses.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 15
4. Business Overview.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 16

Management

1. Corporate Governance .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 17
2. Corporate Management .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 20
3. Risk Management.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 20
4. Compliance.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 22
5. Communication.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 23
6. Socially Responsible Investment and Principles for Financial Action
towards a Sustainable Society.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 25

Social Aspects

1. Together with Our Customers.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 27
2. Together with Our Employees.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 35
3. Growing with Society.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 38
4. For Global Environment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 42
Independent Assurance Report.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 44
GRI Sustainability Reporting Guidelines version 3.1 Content Index.. . . . . . . . . . . . . . P. 45
Third-party Opinion.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Back cover

About Corporate Responsibility Report 2014

Numbers at the top right of each section (e.g. 3.1 ) indicate the corresponding
number of the G3.1 GRI Guidelines, which can be found at the end of this report.

3.1

Report Publication Information
Published in

November 2014 (Previous Issue: November 2013; Next Issue: Scheduled for October 2015)

Scope of report

All companies and foundations in the T&D Life Group

3.2

3.3

3.6

3.7

*Contents of this report are selected taken into account the importance of each item, and we indicate the scope of each item as necessary.

Period covered

April 2013 to March 2014 (annual)*Also includes reports on some significant activities and events having occurred in and after April 2014.

For further information, please contact the following organization

3.4

CSR Group, Group Planning Department, T&D Holdings, Inc. 1-2-3 Kaigan, Minato-ku, Tokyo 105-0022, Japan E-mail: csr@td-holdings.co.jp

3.13

Third-party Opinion

Professor Takeshi Mizuguchi of Takasaki City University of Economics, an expert in environmental accounting and socially responsible investment who has
extensive knowledge regarding CSR, provides a third-party opinion and advice on this report.

3.5

Editorial Policy
This report was prepared with the aim of providing stakeholders with aclear picture about the concept and approach to corporate responsibility
adopted by the T&D Life Group.
In order to help stakeholders better understand the activities of the Group,
we have created two versions of our Corporate Responsibility Report 2014,
as we did for the 2013 report: Focus Edition and Data Edition. Focus Edition,
focusing on issues and activities of particular interest to stakeholders aswell as on information and messages that the Group would particularly
like to communicate, is designed to include photos and illustrations toenhance approachability and readability. The Data Edition comprehensively

1

T&D Life Group Corporate Responsibility Report 2014

reports on the Group’s activities related to management, society, and theenvironment, in accordance with the GRI Guidelines as much as possible.
Outline of Focus Edition❍ Value Creation Process of the T&D Life Group❍ Special Feature: Unique strengths of the T&D Life Group❍ Major Contribution Activities for Local Communities and Society❍ Compliance and Communication❍ Promotion of the Group’s CSR Activities and Status of Activities❍ Message from President❍ Third-party Opinion/Response to Third-party Opinion

Item

Indicator

Pages in this report

Aspect: Indigenous Rights
HR9
ADD Total number of incidents of violations involving rights of indigenous people and actions taken.
HR10
CORE Percentage and total number of operations that have been subject to human rights reviews and/or impact assessments.
HR11
CORE Number of grievances related to human rights filed, addressed, and resolved through formal grievance mechanisms.
Society
Disclosure on Management Approach
Society
Aspect: Local Communities
SO1
CORE Percentage of operations with implemented local community engagement, impact assessments, and development programs.
SO9
CORE Operations with significant potential or actual negative impacts on local communities.
and mitigation measures implemented in operations with significant potential or actual negative impacts on local
SO10
CORE Prevention
communities.
Aspect: Corruption
SO2
CORE Percentage and total number of business units analyzed for risks related to corruption.
SO3
CORE Percentage of employees trained in organization’s anti-corruption policies and procedures.
SO4
CORE Actions taken in response to incidents of corruption.
Aspect: Public Policy
SO5
CORE Public policy positions and participation in public policy development and lobbying.
SO6
ADD Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country.
Aspect: Anti-Competitive Behavior
SO7
ADD Total number of legal actions for anticompetitive behavior, anti-trust, and monopoly practices and their outcomes.
Aspect: Compliance
SO8CORE Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with laws and regulations.
Product Responsibility
Disclosure on Management Approach
Product Responsibility
Aspect: Customer Health and Safetycycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of
PR1
CORE Lifesignificant products and services categories subject to such procedures.
number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of
PR2
ADD Total
products and services during their life cycle, by type of outcomes.
Aspect: Product and Service Labelingof product and service information required by procedures, and percentage of significant products and services subject to
PR3
CORE Typesuch information requirements.
number of incidents of non-compliance with regulations and voluntary codes concerning product and service
PR4
ADD Total
information and labeling, by type of outcomes.
PR5
ADD Practices related to customer satisfaction, including results of surveys measuring customer satisfaction.
Aspect: Marketing Communications
for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising,
PR6
CORE Programs
promotion, and sponsorship.
number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications,
PR7
ADD Total
including advertising, promotion, and sponsorship by type of outcomes.
Aspect: Customer Privacy
PR8
ADD Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.
Aspect: Compliancevalue of significant fines for noncompliance with laws and regulations concerning the provision and use of products
PR9
CORE Monetaryand services.
Financial Services Sector Specific Disclosure on Management Approach
FS1
CORE Policies with specific environmental and social components applied to business lines.
FS2
CORE Procedures for assessing and screening environmental and social risks in business lines.
for monitoring clients’ implementation of and compliance with environmental and social requirements included in
FS3
CORE Processes
agreements or transactions.
for improving staff competency to implement the environmental and social policies and procedures as applied to
FS4
CORE Processes
business lines.
FS5
CORE Interactions with clients/investees/business partners regarding environmental and social risks and opportunities.
FS6
CORE Percentage of the portfolio for business lines by specific region, size (e.g. micro/SME/large) and by sector.
FS7
CORE Monetary value of products and services designed to deliver a specific social benefit for each business line broken down by purpose.
value of products and services designed to deliver a specific environmental benefit for each business line broken
FS8
CORE Monetary
down by purpose.
FS9
CORE Coverage and frequency of audits to assess implementation of environmental and social policies and risk assessment procedures.
and number of companies held in the institution’s portfolio with which the reporting organization has interacted
FS10
CORE Percentage
on environmental or social issues.
FS11
CORE Percentage of assets subject to positive and negative environmental or social screening.
polic(ies) applied to environmental or social issues for shares over which the reporting organization holds the right to
FS12
CORE Voting
voting shares or advises on voting.
FS13
CORE Access points in low-populated or economically disadvantaged areas by type.
FS14
CORE Initiatives to improve access to financial services for disadvantaged people.
FS15
CORE Policies for the fair design and sale of financial products and services.
FS16
CORE Initiatives to enhance financial literacy by type of beneficiary.

Not applicable23
11, 38–42

21
23
Not applicable

Outline of the T&D Life Group

Major Data for the T&D Group.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 3
Unique Strengths of the T&D Life Group.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 9

ADD: “Additional indicator,” meaning an indicator for a new theme or a theme important to certain organizations.

Not applicableNot applicable11, 27–34

Management

Special Features

CORE: “Core indicator,” meaning an indicator that most stakeholders are interested in.

7, 27–34
Not applicableNot applicable
5, 7, 24, 28–31
32
Not applicableNot applicable

Social Aspects

Message from President.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 2—: No information in this report. However, this report does not cover all the activities of the Group.

Not applicable11, 22, 42
21
22–24, 34–36, 44
24–25, 27
15–16
15–16, 3144
19
26
Not applicable33
31–32
24, 41

T&D Life Group Corporate Responsibility Report 2014 48

AppendixContents/About Corporate Responsibility Report 2014.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 1

Corporate Responsibility Report 2014
Third-party Opinion
Professor, Faculty of Economics
Takasaki City University of Economics

For constant evolution of CSR
I wish to express my respect for the T&D Life Group’s continuous and sincere efforts to help solve various issues through
CSR. I consider it admirable that the Group has identified key focus areas, namely, respect for human rights and preservationof the global environment, and has been involved in a wide range of activities including forest conservation activities andefforts to support the active participation of women and the achievement of work-life balance. I also highly praise the social
contribution activities conducted by the Group’s social welfare organizations and activities for supporting people withdisabilities, activities that have a long history. Having said this, I wish to raise the following two topics.
1. Efforts to address social issues undertaken via the Group’s main businessAs stated in the Top Message at the beginning, life insurance companies
have a unique position in society in the sense that the very essence of
their business is tied to social issues. In particular, Japan is facing various
challenges that have surfaced in connection with the emergence of anaging society with fewer children. Such challenges include health risks,
the potential needs for nursing care and the business continuity risks
to small and medium-size enterprises that are heavily reliant on theirindividual owners. In response, the Group has been providing various
solutions through multiple channels, including the household market,
small and medium enterprise market, and financial institutions and otheragencies market. This is commendable. Many of the products introducedon page 31 respond to social needs; reading about them, I got a real
sense of the enthusiasm the Group brings to solving social issues. In thecase of life insurance companies, long-term business continuity itself is an
important responsibility. In this respect, I understand why many pages ofthis report are dedicated to explaining ERM and risk management of theGroup as a whole.
On the other hand, society does not appear to be moving toward any
resolution of these demographics-related issues. As the proportion ofolder people increases, economic disparities are worsening and thenumber of socially vulnerable people appears to be growing. However,as stated under the heading “Fairness in Offering Insurance Products
to the Broader Public” on page 31, life insurance companies are unable
to accept everyone who wishes to purchase policies regardless of
their circumstances. In this sense, these companies are faced with theextremely difficult dilemma of wanting to provide solutions to those
who truly need security while having to maintain an appropriate balance
between fairness and the principle of mutual aid. Solving social issues
through business activities requires untiring efforts, however, and I hope
to see the Group’s responses to these challenges continue to evolve.

Unique strengths of the T&D Life Group
T&D Life Group Corporate Responsibility Report 2014 Data Edition

Takeshi Mizuguchi

ProfileGraduated from College of Policy and Planning Sciences, Third Cluster of Colleges, Tsukuba University in 1984.
After working at Nichimen Corporation and Eiwa Audit Corporation, he became an instructor in the Faculty of
Economics at Takasaki City University of Economics, and assumed his present position in 2008. His primary areas ofresearch include environmental accounting and socially responsible investment. He has also served as Chair of theJapanese Institute of Certified Public Accountants’ Technical Committee on Sustainability Information Disclosure,and as a member on the Central Environment Council’s Special Committee on the Environment and Finance. At
present, he serves as the joint representative director of the Japan Sustainable Investment Forum. His principal
books include Responsible Investment (Iwanami Shoten), Accounting and Investment for Social Change (Iwanami
Shoten), The Environment and Financial/Investment Trends (author/editor, Chuo Keizai-sha), and Environmental
Management and Accounting (co-author, Yuhikaku Publishing).

2. Actions as a responsible institutional investor
I highly commend the fact that the T&D Life Group as a whole signed on
to the Principles for Financial Action for the 21st Century in fiscal 2014. In
addition, Taiyo Life, Daido Life and T&D Asset Management expressed theircommitment to honor the Principles for Responsible Institutional Investors(Japan’s Stewardship Code). This is a very significant step forward.
While Japan’s Stewardship Code promotes the sustainable growth ofcompanies through constructive engagement with investee companies,
the most important element is the contents of such engagement. If the
dialogues lean toward short-term views, the judgment of the participants
could be called into question. Just as the T&D Life Group puts its activities
to address social issues at the center of its business, investors should
ask investee companies to fulfill their social responsibilities in a similarmanner, which will lead to a long-term investment return for investors.
Companies that can respond to social issues can undoubtedly grow in asustainable manner over the long-term.
Furthermore, such dialogues generate bonus effects. For example, theprogression of global warming has been increasing the risks to human lifeand health by causing more frequent abnormal weather conditions andpromoting the spread of infectious diseases. Asking investee companies
to take actions on such issues means helping to reduce those risks,through which the Group will be able to reduce the payment of insurance
benefits and increase profits over the long-term. Policyholders should
be happy to avoid events that trigger the payment of insurance benefits
rather than receiving the payment. Although this type of benefit is largely
invisible to policyholders, I believe the objective of the Stewardship Codeis to encourage institutional investors to guide their investee companies
to produce these kinds of genuine benefits. Stewardship is about taking
actions for the benefit of beneficiaries (policyholders).

1-2-3 Kaigan, Minato-ku, Tokyo 105-0022, Japan
http://www.td-holdings.co.jp/en/ E-mail: csr@td-holdings.co.jp

FOR ALL THE LIFE ON EARTH

Data Edition

We are considerate of biodiversity

We practice Green Purchasing.

T&D Life Group