Corporate Responsibility Report 2018

CREATE VALUE FOR PEOPLE AND SOCIETIES.

I

Message from the President/Organizational Profile.............1II

CSR Management................................................................8

III Priority Areas		 (1) Providing Better Products and Services........................26
IV Priority Areas		 (2) Respect for Human Rights............................................40V		

Priority Areas(3) Global Environmental Protection...................................51

VI Social Activities .................................................................58
VII Responsible Institutional Investor..................................... 63
VIII Governance and Internal Control .......................................69
IX Management Control ........................................................77•

Third-party Opinion ............................................................82•

Index: GRI Standards..........................................................83

About Corporate Responsibility Report 2018
Report Publication Information
Published in
November 2018102-50102-51

102-52(Previous Issue: November 2017; Next Issue: Scheduled for November 2019)

Scope of report All companies and foundations in the T&D Life Group* Contents of this report are selected taking into account the importance of each item, and we indicate the scope of each item as necessary.

Period covered

April 2017 to March 2018 (annual)* Also includes reports on some significant activities and events having occurred in and after April 2018.

Contact Information

102-53

Group CSR Division, Group Planning Department, T&D Holdings, Inc.
7-1, Nihonbashi 2-chome, Chuo-ku, Tokyo 103-6031, Japan
E-mail: csr@td-holdings.co.jp

Regarding Third-party Opinion
As a counselor of the Japan Research Institute, Mr. Eiichiro Adachi possesses extensive knowledge about CSR and was asked tooffer his opinion and advice about the contents of CR Report 2018 from the standpoint of a third party.
Editorial Policy
The T&D Life Group has prepared this report to provide a wide range of stakeholders with a picture of the Group’s concepts ofand approach to CSR, as well as its CSR initiatives. In fiscal 2018, the Group is disclosing information in the form of two different reports in order to let a wider range of stakeholders get to know the Group’s initiatives. In addition to CR Report 2018, weare releasing a digest edition of CR Report 2018. In the digest edition, we present the Group’s thinking about CSR and the main
CSR initiatives taken by the Group in a clear, well-organized format.
It is an approachable, easy-to-read report with only a small number of pages and many photographs and illustrations.
CR Report 2018 conforms to the GRI standards, and reports on the wide-ranging management, social, and environmental initiatives the Group is advancing.

Overview of the Digest Edition of CR Report 2018
• Message from the President• Profile• How We Define CSR• Priority Areas (1) Providing Better Products and Services• Priority Areas (2) Respect for Human Rights• Priority Areas (3) Global Environmental Protection

Message from the President/Organizational Profile
102-14

Priority Areas(1) Providing Better
Products and Services

Aiming to be a corporategroup that contributes toall people and societies

CSR Management

Message from the President

Top Message/
Organizational ProfileI

Priority Areas(2) Respect for Human
RightsPriority Areas(3) Global Environmental
Protection

Hirohisa Uehara
Representative Director and President,
T&D Holdings, Inc.

Social Activities

The T&D Life Group (the Group) is mainly composed of three life insurance companies: Taiyo Life Insurance
Financial Life). Their core businesses are life insurance. Since they all joined hands under the holding company T&D
Holdings, Inc. in April 2004, the Group has contributed to all people and societies and achieved sustained growth byconfronting changing social issues and providing insurance products and services that society requires.

“Contributing to all people and societies” is the fundamental philosophy of the Group, which is mainly involved in
the life insurance business with a spirit of mutual assistance. We believe our primary mission is to confront social
issues and to contribute to the development of a sustainable society through our business. This mission has been
the Group’s corporate philosophy of “With our ‘Try & Discover’ motto for creating value, we aim to be a group that
contributes to all people and societies,” we leverage our strengths to create both “value for society” and “value forthe enterprise” to become a corporate group that contributes to all people and societies.

Management
Control

passed on through the DNA of the Group companies, which have a long history in the life insurance business. Under

Governance andInternal Control

The Group that contributes to all people and societies

Responsible
Institutional Investor

Company (Taiyo Life), Daido Life Insurance Company (Daido Life), and T&D Financial Life Insurance Company (T&D

Third-party
OpinionIndex
1

The Group that grows with society
We view the period of the Medium-Term Management Plan starting in April 2016 as the first stage in our vision for
the next 10 years: a three-year period for expanding our growth areas. Our goal in this plan is to contribute to solutions to social issues through the life insurance business in pursuing maximization of “satisfaction of all stakeholders.” We are striving to achieve that goal.
An enterprise is a member of society. It evolves its relationship with society through interaction. The evolution ofrelationships between enterprises and society has resulted in a new way of evaluating corporate value. We believethat enterprises can grow sustainably if they contribute to the development of society through their business. Thatis, they can live up to social expectations and are needed by society, while generating reasonable profit throughtheir business.

The Group where individuals can flourish
The Group’s corporate philosophy of “contributing to all people and societies” can be achieved through the abilitiesof the Group’s individual executives and employees. We think it is important that we disseminate the philosophy of“sharing the value with society” in all processes, ranging from management’s decision-making to day-to-day operations. The Group has established the Group CSR Committee, which is chaired by the President of T&D Holdings
and composed of the directors and general managers in charge of CSR at Group companies. Through this committee, we disseminate the philosophy of “sharing the value with society” and assist individual Group companies andindividual executives and employees of the Group in their “Try & Discover” efforts through cooperation. This committee checks and verifies the Group’s activities regularly. It also reflects the results in the following plans for business activities, to create sustainable value and develop the Group’s CSR activities.

The Group that can keep up with the world
Expected roles of enterprises for attaining “Sustainable Development Goals (SDGs)” adopted by the United Nations(UN) are significant, and their efforts for contributing to the development of a sustainable society through businessactivities are attracting attention. The Group endorses the philosophy of “UN Global Compact (UNGC),” a cooperative framework between the UN and enterprises to realize sustainable growth advocated by the UN, and has signed
a memorandum declaring its support. In addition, Taiyo Life, Daido Life, and T&D Asset Management, which are
institutional investors, have signed the Principles for Responsible Investment (PRI), which were suggested by the
UN for the purpose of encouraging institutional investors to fulfill their social responsibilities.
The Group will confront social issues as a global citizen and aim to actualize a sustainable world.
April 2019 will mark the 15th anniversary of the establishment of T&D Holdings and the start of the new MediumTerm Management Plan. We will work anew to follow the Group’s corporate philosophy. Each executive andemployee will join hands to perform the unwavering practice of “Try & Discover” and to be a life insurance groupthat shares its values with society and grows sustainably.
We would appreciate our stakeholders’ continued support and understanding.

2Top Message/
Organizational Profile

1. Organizational Profile

CSR Management

1–1 Outline of the T&D Life Group’s Business

102-2

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. The three companies of Taiyo Life, with its strength in the household market; Daido Life, with its strength in the small and medium enterprise (SME) market; and T&D Financial Life, with its
strength in the independent insurance agent market (financial institutions and insurance shops) work to fully exploit the strengths

Priority Areas(1) Providing Better
Products and Services

and uniqueness of their respective business models, in support of their customers’ lives and businesses.

• Group Structure

T&D Holdings is the cornerstone of the T&D Life Group,

Products for securing a
comfortable retirement life forlower household budgets(wealth accumulation products
and protection-type products)

Products for corporate risk
management (protection
against death and disability)
Small and Medium
Enterprises Market

Household Market

Independent Insurance Agent Market(financial institutions, insurance shop agents)

Priority Areas(3) Global Environmental
Protection

Protection-oriented products
covering medical care, nursing
care and death security thatmeet customer needs

Priority Areas(2) Respect for Human
Rightswhich consists of 19 subsidiaries and affiliated companies.

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

Asset Management Market

Pet Insurance Market

Main Group Companies Other Than Above

Investment-related Businesses

Administration-related Businesses• T&D Confirm Ltd.
• Toyo Insurance Agency Co., Ltd.
• Daido Management Service Co., Ltd.

• T&D Lease Co., Ltd.
• Taiyo Credit Guarantee Co., Ltd.
• Alternative Investment Capital, Ltd.

• T&D Customer Services Co., Ltd.
• T&D Information System Ltd.
• Nihon System Shuno, Inc.
• Zenkoku Business Center Co., Ltd.
• Thuriya Ace Technology Company Limited

Ordinary profit

Profit*No. of employees¥1,928.3¥156.4¥77.5

19,757billionbillionbillionThird-party
OpinionOrdinary revenues

Management
Control

As of June 30, 2018

Governance andInternal Control

Insurance-related Businesses

Responsible
Institutional Investor

Providing competitive products
and services in a timely mannerSocial Activities

Pet & Family Small-amount
Short-term Insurance Company

Index* Profit attributable to owners of parent

Figures for revenues and profits are from fiscal 2017 and the number of employees is as of March 31, 20183

1–2 T&D Life Group Companies and Foundations

102-2

102-4

102-6

102-45● Organizational Structure
The T&D Life Group consists of T&D Holdings, 16 consolidated subsidiaries and 3 affiliated companies that are engaged in life
insurance and other businesses as described below.
(◎: Consolidated subsidiaries ◇: Equity method affiliate companies)
T&D Holdings, Inc.

Insurance &Insurancerelated
Businesses

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

Insurance

Administrationrelated
Businesses

Foundations

http://www.taiyo-seimei.co.jp/◎ Daido Life Insurance Company

https://www.daido-life.co.jp/◎ T&D Financial Life Insurance Company

https://www.tdf-life.co.jp/◎ Pet and Family Small-amount Short-term
Insurance Company

https://www.petfamilyins.co.jp/◎ T&D Confirm Ltd.
Insurance-related

Investmentrelated
Businesses◎ Taiyo Life Insurance Company

Investment
Management
and Advisory, etc.

◎ Toyo Insurance Agency Co., Ltd.

https://www.sonpo.co.jp/toyohkdaiko/◎ Daido Management Service Co., Ltd.

https://www.dms-hp.co.jp/◎ T&D Asset Management Co., Ltd.

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

Other
Investment-related◎ T&D Lease Co., Ltd.

http://www.td-lease.co.jp/◎ Taiyo Credit Guarantee Co., Ltd.

http://www.taiyo-sinyo-hosyo.co.jp/◇ Alternative Investment Capital, Ltd.

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

Administrationrelated◎ T&D Customer Services Co., Ltd.

General Affairs
andCalculation-related◎ T&D Information System Ltd.

http://www.td-system.co.jp/◎ Nihon System Shuno, Inc.

https://www.nss-jp.com/◎ Zenkoku Business Center Co., Ltd.

http://www.zbc-jp.com/◇ Thuriya Ace Technology Company Limited

The Taiyo Life Welfare Foundation

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

Daido Life Welfare Foundation

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

The Daido Life Foundation

http://www.daido-life-fd.or.jp/*1 Includes main Group companies and foundations as of June 30, 2018.
*2 Thuriya ACE Technology Company Limited is an affiliate company for designing and developing information technology systems in Myanmar.

4

102-1

102-3

102-13

Top Message/
Organizational Profile

1–3 Corporate Profile (as of March 31, 2018)

CSR Management《T&D Holdings, Inc.》
April 2004

Head office location

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

Capital stock

207.1 billion yen

No. of employees

98

independent accounting auditor

Ernst & Young ShinNihon LLC

Description of businessInsurance holding company for the T&D Life Group as well as small-amount short-term
insurance holding company, conducting the following:• Management control of life insurance subsidiaries and affiliates under the Insurance
Business Act and other laws and regulations• Other businesses associated with the above

February 1948 (Founded May 1893)

Head office location

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

Capital stock

62.5 billion yen

No. of employees

Sales:
Administrative:
Total:

8,942
2,407
11,349《Daido Life Insurance Company》

Head office locations

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

Sales:
Administrative:
Total:

3,714
3,089
6,803

July 1947 (Founded April 1895)

Head office location

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

Capital stock

56 billion yen

No. of employees

242

The Life Insurance Association of Japan

3,714 in-house sales representatives
1,285 non-life insurance agents

Professional organizations of tax
accountants (TKC National Federation/
local branches of CPTA Associations)

12,613 tax accounting agencies《T&D Financial Life’s Business Model》

Independent insurance agents(financial institutions and insurance shops)
Products for securing a comfortable retirement life
for lower household budgets
Products offered through independent insurance agents(financial institutions, insurance shop agents)
100 financial institutions
42 insurance shop agents (including franchises)

Third-party
Opinion◇ Industry Association to which theThree Life Insurance Companies Belong:

Corporate organizations(NFCTA/TPA, etc.)

Management
Control

Established

Products for corporate risk management(protection against death and disability)
Collaboration with tie-up groups in the SME market

Governance andInternal Control《T&D Financial Life Insurance Company》

SMEs

Responsible
Institutional Investor

No. of employees

Face-to-face consultations
Focus on major metropolitan areas and major local cities
8,942 in-house sales representatives

Social Activities

July 1947 (Founded July 1902)

110 billion yen

Protection-oriented products covering medical care,nursing care and death security that meet customer needs《Daido Life’s Business Model》

Established

Capital stock

Households

Priority Areas(3) Global Environmental
Protection

Established

Priority Areas(2) Respect for Human
Rights《Taiyo Life’s Business Model》《Taiyo Life Insurance Company》

Priority Areas(1) Providing Better
Products and Services

Established

Index
5

《T&D Asset Management Co., Ltd.》《T&D Asset Management’s Business Model》

Investors

Established

December 1980

Head office location

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

Capital stock

1.1 billion yen

No. of employees

148

Providing competitive products and services in a timely manner
259 funds
62 investment management contracts《Pet & Family Small-amount Short-term
Insurance’s Business Model》《Pet & Family Small-amount Short-term Insurance Company》

Owners of pets

Established

August 2003

Head office location

34-3, Hongo 3-chome, Bunkyo-ku, Tokyo
113-0033, Japan

Capital stock

1.5 billion yen

No. of employees

55

Products that cover a certain portion of the cost ofveterinary care for pet illness and injury
Selling through agents (pet shops, etc.)
378 agents 719 pet shops

Pet & Family Small-amount
Short-term Insurance Company

1–4 Number of Employees

102-8

401-1

● Number of Employees (T&D Holdings, Consolidated)
Business sector

March 31, 2016

March 31, 2017

March 31, 2018

18,423(1,252)

18,573 (1,107)

18,546 (1,095)

Investment-related businesses

466

(29)

441

(25)

442

(23)

Administration-related businesses

790

(161)

802

(161)

769

(85)

19,679(1,442)

Insurance & insurance-related businesses

Total

19,816 (1,293)

19,757 (1,203)* 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 not included in the number of employees.
* The figures for part-time workers differ from the Financial Report due to the rounding process.

● Number of Employees and Number of People Hired by the Group’s Three Life Insurance Companies
No. of employees

No. of employees hired

March 31,2016

March 31,2017

March 31,2018

FY2015FY2016FY2017

18,40918,543

18,394

3,935

3,887

3,913

Male

3,622

3,564

3,539

148

149

186

Female14,787

14,97914,855

3,787

3,738

3,727

12,49812,745

12,656

3,701

3,679

3,671

Male

324

313

320

37

57

70

No. of employees

Sales representatives

Female12,174

12,432

12,336

3,664

3,622

3,601

Administrative

5,911

5,798

5,738

234

208

242

Male
(Managers)

3,298(2,062)

3,251(1,959)3,219(2,138)

111

92

116

Female(Managers)

2,613
(319)

2,547
(345)

2,519
(345)

123

116

126

* Managers include head office deputy division managers, assistant officers, and other officers.
* The number of administrative personnel at the end of March 2016 includes customer service staff of Taiyo Life.
For details of Group performance, solvency margin ratio, credit ratings, etc., please refer to the CSR library on our website.
WEB http://www.td-holdings.co.jp/en/csr/library.html

6102-41

Top Message/
Organizational Profile

1–5 Dialogue and Consultations with Labor Unions

CSR Management

Each of the three life insurance companies in the T&D Life Group has an independent labor union, and on this basis and having
established tie-ups with cooperative groups, 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, one that is based on thespirit of trusting each other, can be built only through straightforward discussions based on their respective viewpoints, and thatkind of relationship will motivate employees and bolster the competitiveness of the companies.

Priority Areas(1) Providing Better
Products and Services● Labor Unionization of the Administrative Personnel of the Three Life Insurance Companies
FY2015FY2016FY2017

81.9

79.6

80.0

Labor unionization rate (%)

2. Supply Chain
102-9

T&D Holdings defines its supply chain as shown in the table below, and works toward widespread CSR through that supply chain.
Activities
Media

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

Sales agents

Sales agents

Buildings

Construction, maintenance, administration of office buildings

Energy consumed

Petroleum refining and distribution, electric power providers

Waste

Waste disposal companies

Business trips

Airplane, rail, bus, taxi, accommodation

CommutingRail, bus

Contracting work
Office buildings

ICT systems, consulting, auditing

Delivery

Delivery company

Investment

Social Activities

Movement of
employees

Priority Areas(3) Global Environmental
Protection

Sales of products
and services

Supply chain

Priority Areas(2) Respect for Human
Rights

2–1 Definition of Supply Chain

Investees

414-1● Management of Outsourcing of Business Operations
The T&D Life Group outsources some business operations to third parties. In order to maintain our management soundness andstrengthen our management control capability, we have prepared the adequate management system for outsourcing, specificallyby formulating the methodology to select outsourcing partners and supervise them.
T&D Holdings has formulated a Pre-checklist to Scrutinize Outsourcing Partners as a part of the Guidelines for Outsourcing andOutsourcing. The Group examines the risk-related issues, and assesses the suitability of each outsourcing partner with coveredin the note respect to the issues including social aspects* such as human rights, labor conditions, and environmental initiatives.
* Social aspects refer to the occurrence of human rights violation, labor problems such as forced labor, excessive work hours, and health and safety, as wellas measures to prevent and mitigate environmental pollution and climate change.

Governance andInternal Control

Detailed Rules on Risk Evaluation for Outsourcing, based on the Procedural Guidelines for Implementation and Management of

Responsible
Institutional Investor

2–2 Cooperation with Suppliers

After the commencement of outsourcing, the Group checks the outsourcing partner more than once a year, monitors the perfor● Initiatives for Green Purchasing and Procurement
The T&D Life Group takes various initiatives to protect the global environment, based on the ‘T&D Life Group CSR Charter’
Purchasing Standards to be applied when the Group procures or purchases the goods or services needed for its business operations. The Group promotes green purchasing and green procurement, giving priority to the purchase of goods or services that
help reduce its environmental impact.

Third-party
Opinionand the ‘T&D Life Group Environmental Policy.’ As one facet of these efforts, the Group has formulated its Group-wide GreenManagement
Control

mance of the outsourced operations, and, if necessary, asks for improvements.

Index

Green purchasing mainly targets office furniture, equipment and consumable supplies, while green procurement targets printing of product brochures and policy documents and procurement of real estate facilities and system equipment. Results of these
activities are reported to the Group CSR Committee and its upper organization, the Board of Directors, every six months.
7

II

CSR Management

T&D Life Group CSR Philosophy

We will contribute to people and societies bycreating value through our activities toaddress social issues.
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 CSR Charter(Preamble)
The T&D Life Group is firmly committed to fulfilling the
public mission of life insurance and other businesses andto undertaking its corporate social responsibilities basedon its management philosophy and by achieving
sustainable growth along with society.

Our Priority Areas

Providing Better
Products and Services

Respect for Human
RightsGlobalEnvironmental Protection

We have selected three priority areas from among those areas material
to an expansive range of stakeholders and those areas material
to our corporate philosophy and growth. We are
implementing activities targeting eachpriority area.

8Top Message/
Organizational Profile

1. CSR Basic Policy
102-16【Structure of CSR Basic Policies】
T&D Life Group’s Corporate Philosophy

Priority Areas(2) Respect for Human
RightsT&D Life Group
Compliance Code of
Conduct

T&D Life Group Environmental Policy【Other Related Basic Policies】

etc.

● 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.

Priority Areas(3) Global Environmental
Protection• The T&D Life Group’s Basic Policies Related to Customer-oriented
Business Operations• Basic Policy on Corporate Governance• Group Risk Management Policy

Priority Areas(1) Providing Better
Products and Services

The T&D Life Group has embraced the following corporate philosophy as the starting point for the Group and the bedrock of all of its business activities: “With our ‘Try & Discover’ motto for creating value, we aim to be a group that contributes to all people and societies.”
The T&D Life Group is centered on the life insurance business, which attaches fundamental importance to the principle of mutual
assistance. Therefore, we believe that contributing to people and society as a whole through our businesses constitutes our fundamental guiding principle as a business enterprise and the very rationale for our existence.

T&D Life Group CSR Charter

CSR Management

1–1 Philosophy and Policy of the T&D Life Group

Social Activities● T&D Life Group CSR Charter
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.

2. Strict Compliance• The T&D Life Group will strictly observe laws, regulations and rules, and act with sincerity and integrity according to highethical standards.
• The T&D Life Group will maintain and promote fair and free competition.
• The T&D Life Group will stand firmly against antisocial forces and groups that may threaten the order or safety of civil society.

6. Global Environmental Protection
The T&D Life Group will carry out its activities with full awareness of the importance of consideration for environmental issues,
and will strive to protect the global environment.

Third-party
Opinion

5. Contribution to Local Communities and Societies
The T&D Life Group will implement social activities as a good corporate citizen, and will contribute to the sound developmentof local communities and society.

Management
Control

4. Communication
The T&D Life Group will provide proper information concerning its products and services and disclose corporate informationin an appropriate and timely manner to the general public as well as to its customers and shareholders, and will actively strive
to maintain a dialogue with all its stakeholders.

Governance andInternal Control

3. Respect for Human Rights• The T&D Life Group will respect the human rights of all people, and make efforts to enlighten all its employees on human rights.
• The T&D Life Group will respect the individuality and diversity of all its employees, ensure a healthy and safe work environment, and develop its human resources.
• The T&D Life Group will respect privacy, and will strictly control and protect personal information.

Responsible
Institutional Investor

1. Providing Better Products and Services
The T&D Life Group will offer high-quality, optimal products and services that meet customer needs, and will contribute to thesustainable growth of society and to the solution of social issues.

Index

7. Establishment of Effective Governance and Thorough Implementation
To ensure that its actions are in compliance with this charter, the T&D Life Group will develop an effective governance structure and strive to cooperate with a wide range of stakeholders, including its customers, shareholders, employees, sales
agents, business partners, and local communities.
9● The T&D Life Group Compliance Code of Conduct
With our “Try & Discover” motto for creating value, we aim to be a group that contributes to all people and society. Guided bythis corporate philosophy, the T&D Life Group has established the T&D Life Group Compliance Code of Conduct to conduct
fair and adequate business activities with integrity and sincerity for all stakeholders, including customers.
In the course of conducting business activities, the Group’s corporate officers and employees must conduct business fairlyin accordance with the T&D Life Group Compliance Code of Conduct by correctly understanding laws, regulations and otherrules pertaining to business activities and ensuring strict compliance with them.
Moreover, the T&D Life Group will endeavor to foster a corporate culture that respects the purpose and spirit of this code of
conduct.
1. Rigorously Enforcing Compliance(1) Ensuring Compliance
We shall adhere to not only the laws and regulations of countries around the world, but also international rules, social
norms and internal rules. Moreover, we shall seek to understand the underlying spirit of those rules, and act accordinglywith integrity.
(2) Maintaining and Promoting Fair and Free Competition
We shall not engage in any unfair competitive practices, including conduct that would put our customers at a disadvantage through cartels or other forms of collusion with competitors in connection with the products and services we provide, and conduct that would put our business counterparts at a disadvantage using our bargaining power.
(3) Prevention of Conflicts of Interest
We shall always consider separating our professional and private lives in the course of conducting our duties. We
shall not engage in conduct that promotes our own self-interest or the interests of third parties at the expense of theCompany’s interests.
(4) Prohibition of Insider Trading
As members of a publicly listed corporate group, we shall not use the non-public material information of the Company,or such information obtained in the course of performing our duties, for asset management purposes for the Company,
or for personal use, nor shall we use such information for private economic gain.
(5) Protection of Intellectual Property Rights
We shall respect the copyrights, patents and other intellectual property rights of third parties, and shall not infringe upon
those rights in the course of our business activities.
2. Addressing Society(1) Responding to Antisocial Powers
We shall reject and stringently respond to any antisocial powers that threaten the order and safety of civil society.
(2) Prevention of Corruption through Restrictions on Business Entertainment and Other Activities
We shall work to prevent corruption in our relationships with business counterparts, civil servants and other parties byrefraining from providing or receiving any business entertainment within reasonable bounds under normal social conventions, as well as refraining from giving or receiving gifts, in connection with our business activities worldwide.
(3) Political Activities and Funding
We shall comply with laws and regulations and maintain an impartial stance when conducting political activities.
3. Adequacy and Transparency in Management(1) Adequate Disclosure and Explanation of Information
We shall accurately disclose and explain the details of the products and services we provide and the Group’s management information to stakeholders, including customers and shareholders and other investors.
(2) Adequate Information Management
We shall handle the information we obtain from customers, including personal information, properly in accordance withlaws, regulations and other rules. Moreover, we shall adequately manage information that the Group has not published.
Corporate officers and employees shall not disclose this information to others even after they retire from the Company.
4. Respect for Human Rights and Consideration for the Environment(1) Respect for Human Rights
We shall support the protection of internationally declared human rights and show respect for those human rights.
Moreover, we shall endeavor to maintain a sound workplace environment that is free of discrimination and harassment
by protecting workers by upholding legal and regulatory compliance.
(2) Consideration for the Environment
We shall consider the global environment in the course of conducting business activities.
《Duties of Managers》
Recognizing their duty to implement the spirit of the T&D Life Group Compliance Code of Conduct, the T&D Life Group’s
managers shall endeavor to set a good example through their own conduct, and strive to make the code of conduct known
throughout the Group and provide guidance to ensure Group-wide compliance.
10

Top Message/
Organizational Profile● T&D Life Group Environmental Policy

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.

5. Continuous Improvement in Environmental Initiatives
By setting environmental objectives and reviewing them regularly, we will endeavor to continuously improve our environmental performance.
All members of the T&D Life Group are notified of this environmental policy, which is also publicly disclosed.

T&D Holdings has committed to all the provisions of the Corporate Governance Code that has applied to listed companies sinceJune 2015 for the purpose of ensuring the T&D Life Group’s sustained growth and the enhancement of its corporate value overthe medium to long term. T&D Holdings has also disclosed a Basic Policy on Corporate Governance on its website setting forth
the Group’s initiatives and policies as they pertain to the salient principles and rules in the Corporate Governance Code.
 asic Policy on Corporate Governance
B(URL: http://www.td-holdings.co.jp/en/company/governance/pdf/e_governance_policy.pdf)

WEB or reference: Information related to the Corporate Governance CodeF
(URL: https://www.jpx.co.jp/english/equities/listing/cg/) (Website of the Tokyo Stock Exchange)● The UN Global Compact
The T&D Life Group has become a participant of the United

102-12

Responsible
Institutional Investor

1–2 Principles That the T&D Life Group Endorses and Supports

Social Activities

WEB

Priority Areas(3) Global Environmental
Protection● Basic Policy on Corporate Governance

Priority Areas(2) Respect for Human
Rights

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.

Priority Areas(1) Providing Better
Products and Services

1. Environmental Conservation Efforts through Business Activities
We will contribute to the protection of the global environment in all of our business activities.

CSR Management

The T&D Life Group will carry out business activities with full awareness of the importance of environmental concerns andwill give sufficient consideration to global environmental protection based on the T&D Life Group CSR Charter. The Group willachieve sustainable growth along with the society while fulfilling the public mission of life insurance and other businesses, andundertaking its corporate social responsibilities.
The Group established the following environmental policy and is committed to complying with it in all of its business activities.

Nations (UN) Global Compact (UNGC), a cooperative framework
advocated by the UN.
The UNGC proposes ten principles applying to the four areas ofthe protection of human rights, the elimination of unfair labor
practices, the protection of the environment and the prevention
manner. The T&D Life Group endorses the UNGC’s philosophy,
and T&D Holdings, representing the Group, has signed a memorandum declaring its support for the ten principles.

Management
Controlof corruption, and encourages companies to act in a responsible

Governance andInternal Control

between the UN and corporations to realize sustainable growth

Third-party
OpinionIndex
11

《UNGC’s Ten Principles》
Human rights

Labor

Environment

Anti-Corruption

Principle 1

Businesses should support and respect the protection of internationally proclaimed human rights;

Principle 2

and make sure that they are not complicit in human rights abuses.

Principle 3

Businesses should uphold the freedom of association and the effective recognition of theright to collective bargaining;

Principle 4

the elimination of all forms of forced and compulsory labor;

Principle 5

the effective abolition of child labor;

Principle 6

and the elimination of discrimination in respect of employment and occupation.

Principle 7

Businesses should support a precautionary approach to environmental challenges;

Principle 8

undertake initiatives to promote greater environmental responsibility;

Principle 9

and encourage the development and diffusion of environmentally friendly technologies.

Principle 10 Businesses should work against corruption in all its forms, including extortion and bribery.

● Principles for Responsible Investment (PRI)
In the T&D Life Group, Taiyo Life, Daido Life and T&D Asset Management have endorsed
and signed the Principles for Responsible Investment (PRI)*. PRI are guidelines thatencourage global financial institutions and institutional investors to promote investment
activities in consideration of Environmental, Social and Governance (ESG) issues.
* The UN Principles for Responsible Investment (PRI) were formulated by the UNEP Finance Initiative and the UN Global Compact as a set of principles thatwould facilitate the reflection of the ESG viewpoint in the decision-making processes of financial investors.

《The Six Principles of the PRI》
Principle 1: We will incorporate ESG issues into our investment analysis and decision-making processes.
Principle 2: We will be active owners and incorporate ESG problems into our ownership policies for stocks and practices.
Principle 3: We will seek adequate disclosure on ESG problems by the entities in which we invest.
Principle 4: We will promote acceptance and implementation of the Principles within the investment industry.
Principle 5: We will work together to enhance our effectiveness in implementing the Principles.
Principle 6: We will each report on our activities and progress towards implementing the Principles.

● Principles for Financial Action towards a Sustainable Society (Principles for Financial Action for the 21st Century)
T&D Holdings and its direct subsidiaries endorse the Principles for Financial Action
towards a Sustainable Society (Principles for Financial Action for the 21st Century)*,
and have become signatories to this voluntary initiative organized by Japanese financial
institutions.
* The Principles for Financial Action for the 21st Century were formulated as guidelines for financial institutions that wish to fulfill their social responsibilities and play a role in the formation of a sustainable society.
The principles were formulated by the Ministry of the Environment’s Drafting Committee for Environmental
Finance Principles, in which financial institutions from wide-ranging areas within the sector voluntarily
participated.

12

Top Message/
Organizational Profile《Principles for Financial Action for the 21st Century》

CSR Management

1. We will recognize our roles and responsibilities, taking into account the precautionary approach, and promote thoseactions that contribute towards shaping a sustainable society.
2. We will contribute to the formation of a sustainable global society through the development and provision of financial
products and services leading to the development and increased competitiveness of “industries contributing to a sustainable society” as represented by the environmental technologies and services sector.
mental 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 of cooperation with diverse stakeholders andwill 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 will take active steps to reduce ourown environmental footprint through resource and energy savings as well as encouraging our suppliers to do likewise.
mation on our activities.
7. In order to implement the above actions we will aim to raise the awareness of environmental and societal issues of ourown board and support them to take an active role through their normal duties.

Priority Areas(2) Respect for Human
Rights6. We will recognize activities that will further profile sustainability as a business issue and will endeavor to disclose infor-

Priority Areas(1) Providing Better
Products and Services

3. From the perspective of regional development and improvement in sustainability performance, we assist the environ-

Priority Areas(3) Global Environmental
Protection
Social Activities
Responsible
Institutional Investor
Governance andInternal Control
Management
Control
Third-party
OpinionIndex
13

2. Value Creation Process (conceptual diagram)Business Model of T&D Life GroupC ompre he nsi v e L if e

Opportunities
Increase in the senior population
Diversification of comprehensive
coverage needs

Technology innovation• Increase in sophistication of
IT such as big data and FinTech

Key Management
Resources• Advance in medical technology

Household market

Social environment• Further decline in birthrate,
aging population,and population decline• Increasing need to makeself-provision for pension,
medical care,and nursing careFinancial capitalLife insurance
businesses
that are highly
unique andspecialized in theirrespective fields

SME (small and medium enterprise)marketHuman capital

Independent insurance agent market(financial institutions and insurance shops)

Risks
As the environment changes
dramatically, competition within
the industry is expected to groweven more intenseIntellectual capital
Asset management, etc.
Peripheralbusinesses
related tolife insurance

Economic andfinancial environment• Continued low interest-rate environment• Increasing risk of future interest-rate hikeIndustry andregulatory environment

Asset management market

Social andrelationship capital• Possible introduction of financial
soundness indicators based on
economic value• Revision ofstandard life table

14

Foundations supporting
the management

Promotion of ERM
through PDCA cycle

Top Message/
Organizational Profile
CSR Management

Providing products and services in
response to changes in society
and customer needs

Responsible investment and lending that
contribute to global environmental
protection and sustainable development oflocal communities/society• Creating value throughinsurance products
and services• Creating value by
generating employment
and job satisfaction

Employees

Social Activities

Asset management

Shareholders/Investors

Sales Agents

Pet insurance market

and Other Group
Companies
Business Partners

Governance andInternal Control

Pet insurance
Pet & Family Small-amount
Short-term Insurance Company

Responsible
Institutional Investor• Creating value throughglobal environmental
protection andcontribution to local
communities and societies• Sustainable increase of
corporate value

Priority Areas(3) Global Environmental
Protection

Insurance underwriting

Customers

Priority Areas(2) Respect for Human
RightsBusiness Activities

Priority Areas(1) Providing Better
Products and Services

Insur an ce G r oup

Management
Control

Local Communities/Society

Third-party
Opinion

Effective governance structure

Index
15

3. History of Group CSR Activities
The Group companies previously engaged in CSR initiatives independently. The efforts have since evolved to become Group CSR
with all the companies joining hands. We have progressed to a stage where value is created and shared with society.
Group companies signed Principles for
Financial Action for the 21st Century.

T&D Holdings Founded

T&D Life Group signed
UN Global Compact.

T&D Asset Management signed
Principles for Responsible
Investment (PRI).

Started issuing
CSR reports

Enforced T&D LifeGroup CSR Charter

Taiyo Life signed
Principles for
Responsible
Investment (PRI).

Established GroupCSR Committee

2004

2016

2011
2007
Determined Group CSR priority areas• Respect for human rights• Global environmental protection

2005

CSR activities of Group companies• Nationwide Clean Campaign• Forest conservation activities• Supporting sports for people with disabilities• Blood drives
etc.

2018

2015
2014
2012

2006

Daido Life signed Principles for
Responsible Investment (PRI).

Group companies jointly conductedsupport activities for recovery efforts
from the Great East Japan Earthquake.

Stage I

Stage II
(Promotion of Group CSR)

Updated Group CSR priority areas• Providing better products and services• Respect for human rights• Global environmental protection
ESG investment
T&D Life Group started investing inJapanese Equity ESG Fund.

Existing CSR initiatives+
Creation of shared value

Toward collaboration in the Group(Promotion of CSR in each Group company)

Revised T&D Life GroupCSR Charter

Toward Stage III

External evaluation
Evaluation by SRI and ESG assessment organizations
The Group makes efforts to disclose understandable and transparent information on its initiatives for addressing CSR and ESG issues.
The Group is included in major SRI and ESG indexes after being highly evaluated by assessment organizations in and outside Japan.
* SRI (socially responsible investment) and ESG (environmental, social, and governance) investment is an approach to select targets not only on the basis offinancial data, but also on initiatives for environmental and social issues, governance, and other considerations.

InternationalJapan(as of July 1, 2018)MSCI ESG Research logo disclaimer:
THE INCLUSION OF T&D Holdings, IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT ORPROMOTION OF T&D Holdings, Inc. BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS ORSERVICE MARKS OF MSCI OR ITS AFFILIATES.

【Major awards, commendations (FY2017)】
The Group’s efforts for addressing CSR and ESG issues have been highly evaluated by society, and the Group has received
various awards and commendations.
Award/Commendation (host/sponsor)

16

Ministry of Health, Labour and Welfare
Good Career Company Awards 2017:
Grand Prix

Ministry of Internal Affairs and Communications
Telework Pioneer 100:
Minister for Internal Affairs andCommunications Award

Ministry of Health, Labour and Welfare
Smart Life Project Awards (Let’s extend
healthy life expectancy!): Director-General of
Health Service Bureau Excellence Award

Ministry of Education, Culture, Sports, Science and Technology
Commendation for Lifelong Learning Support Activities
for the Disabled by the Minister of Education,
Culture, Sports, Science and Technology

Ministry of Economy, Trade and Industry
Certified Health and Productivity
Management Organization White 500

Ministry of Health, Labour and Welfare
Commendation for Enterprises and Workplaces
with Pleasant Working Environments andHigh Productivity: Award for Splendid Efforts

103-2

103-3

Top Message/
Organizational Profile

4. CSR Promotion Framework

CSR Management

4–1 Promotion Framework of CSR
The T&D Life Group has established the 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 GroupCSR Committee of Group-wide CSR policies and initiatives, while still allowing for independent activities at each Group company.

To further strengthen Group cooperation in CSR activities, the Group CSR Committee was established directly under the Board of
Directors with the goal of advancing efforts across the Group as a whole. The committee serves as the cornerstone for promoting the Group’s CSR activities. It formulates basic policies for the Group’s CSR activities and selects important focus areas, alongwith drawing up annual plans and regularly confirming the implementation status of those plans. The Group CSR Committee ischaired by the president of T&D Holdings (representative director and chairperson of the Board of Directors) and vice-chaired byPriority Areas(1) Providing Better
Products and Services● Group CSR Committee

the executive officer in charge of group planning units. In fiscal 2016, the committee met four times. All the information shared
Moreover, the Group CSR Committee Secretariat comprises the CSR departments of T&D Holdings and the Group companies.
The secretariat promotes CSR activities by sharing information on the CSR activities of each Company, in conjunction with assisting with the management and activities of the Group CSR Committee.
● Director in Charge of CSR at T&D Holdings………………… Hirohisa Uehara, Representative Director andExecutive Vice President (fiscal 2017)
Senior Managing Executive Officer Mitsuhiro Nagata)
100% attendance at Board of Directors in fiscal 2017100% attendance at Group CSR Committee in fiscal 2017
● Department in Charge of CSR at T&D Holdings…………… Group CSR Division, Group Planning Department● Departments in Charge of CSR at Group Companies……… Established departments in charge of CSR at Group companies

Priority Areas(3) Global Environmental
Protection(From fiscal 2018, Director andPriority Areas(2) Respect for Human
Rightsand the issues deliberated and discussed are reported to the Board of Directors.

Social Activities(planning departments, public relations departments)《CSR Promotion System in the T&D Life Group (as of July, 2018)》

T&D HoldingsGroup CSR Committee
Committee Chairperson (President)
President

Executive
Committee

Department in Charge of
Promoting CSR GroupCSR Division, Group
Planning Department(Committee Secretariat*)

Departments

Department in
Charge of CSR

Department in
Charge of CSR

Department in
Charge of CSR

Department in
Charge of CSR

Department in
Charge of CSR(Committee Secretariat*)(Committee Secretariat*)(Committee Secretariat*)(Committee Secretariat*)

Each division

Each division

Each division

Each division

Each division

Third-party
Opinion(Committee Secretariat*)

Management
Control

Each Group company

Governance andInternal Control

Group Management
Committee

Responsible
Institutional Investor

Board of Directors

Index

Pet & Family Small-amount
Short-term Insurance Company* Committee Secretariat = Group CSR Committee Secretariat

17

4–2 Management Approach
T&D Holdings is promoting activities for each of the core subjects and themes of ISO 26000, through the meeting structure
shown in the table below.
Core Subjects and Themes of ISO 26000

Meeting Structure (Chairperson)

Organizational
governance

Executive Committee (President of T&D Holdings)
Organizational governanceGroup Management Committee (President of T&D Holdings)
Due diligence, human rights risk situations, avoidance Group Compliance Committee
Human rights
of complicity, discrimination and vulnerable groups(President of T&D Holdings)
Employment and employment relationships, conditions of work and social protection, social dialogue,
Human Resources Strategy Council (Executive
Labor practices
health and safety at work, human development andofficer in charge of personnel at T&D Holdings)
training in the workplace
Prevention of pollution, sustainable resource use, climate change mitigation and adaptation, protection of Group CSR Committee
The environment
the environment, biodiversity and restoration of natu- (President of T&D Holdings)
ral habitats
Anti-corruption, responsible political involvement, fair Group Compliance Committee
competition, respect for property rights(President of T&D Holdings)
Fair operating
practicesGroup Risk Management Committee (Executive officer in
Social responsibility in the value chain
charge of risk management at T&D Holdings)
Consumer service, support, and complaint and disCustomer service department and product development
pute resolution, education and awarenessdepartment of each major group company
Consumer issues
Group Risk Management Committee (Executive officer inConsumer data protection and privacy
charge of risk management at T&D Holdings)
Community
Group CSR Committee
involvement and Community involvement(President of T&D Holdings)
development

The activities of the core subjects and themes of ISO 26000, other than Group CSR committees, are described below.
● Executive Committee and Group Management Committee
T&D Holdings has established an Executive Committee and a Group Management Committee. The Executive Committee is composed of 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, executive officers
in charge of the business planning units and business management units, and the presidents of the Group’s three life insurancecompanies, who are also members of the Group’s Board of Directors. The Group Management Committee discusses the Group’s
strategy and important matters associated with it.
● Group Compliance Committee
This committee was established under the Board of Directors to strengthen the Group’s compliance structure. Its chairperson is
the president. The vice chairperson is the executive officer in charge of the Risk Management Department (responsible for compliance). In addition to promoting, monitoring and improving the Group’s compliance structure, the committee investigates, plans,and discusses fair business performance, human rights violations, and other such issues. The committee verifies the compliancestatus of the T&D Life Group Compliance Code of Conduct and the effectiveness of the compliance structure through periodic
monitoring of the Group’s compliance practices and deliberations on them. The committee held four meetings in fiscal 2017 andreported issues covered and information shared to the Board of Directors.
● Human Resources Strategy Council
T&D Holdings and the three life insurance companies share information about labor-related matters regarding the administrative
personnel employed by the Group. The Group has established the Human Resources Strategy Committee in order to cooperate in conducting surveys, formulating plans and holding consultations regarding important matters of policy to which the Groupshould respond.
The chairperson of the committee is the T&D Holdings executive officer responsible for human resources, and the committee
members are the heads of the human resource departments of the three life insurance companies. The committee meets every
month. The Human Resources Strategy Council is promoting efforts to create a corporate culture that diverse human resources
will find engaging to work in and that enables them to reach their full potential. The council does this by conducting surveys, formulating plans and holding consultations regarding policies and management methods concerned with the Group’s labor-related
matters. These include promoting the active participation of women and other forms of diversity, developing human resources,
promoting a good work-life balance, and ensuring the health and protecting the safety of employees.
● Group Risk Management Committee
Positioned directly under the Executive Committee, the Group Risk Management Committee manages and controls risks that
the T&D Life Group is exposed to and ensures thorough risk management. The committee chairperson is the executive officer incharge of the Risk Management Department. The committee also engages in conducting surveys, formulating plans and holding
consultations as regards risks associated with third-party service provider business operations.
In fiscal 2017, the committee held 16 meetings and reported the results of deliberations to the Executive Committee and theBoard of Directors.
18

Top Message/
Organizational Profile

5. CSR Priority Areas
102-46102-47

CSR Management

5–1 CSR Priority Areas (FY2016 to FY2018)

103-1

The T&D Life Group has identified CSR priority areas that have a large impact on stakeholders and that the T&D Life Groupshould prioritize in order to enhance its corporate value in a steady and sustainable manner. The CSR priority areas are selectedfrom among various fields of CSR activity related to the Group’s business activities, as outlined below. In fiscal 2018, as in fiscal
2017, the Group selected “Providing Better Products and Services,” “Respect for Human Rights” and “Global Environmental

7-1. Global environmental protection

Priority Areas(2) Respect for Human
Rights

Impact on stakeholders

3-2. Respect forhuman rights
4. Providing better
products and services

Priority Areas(1) Providing Better
Products and Services

Protection” as its priority areas, and is conducting Group-wide CSR activities with a special emphasis on them.

Priority Areas
Providing Better Products and Services

Respect for Human Rights

Priority Areas(3) Global Environmental
Protection

Impact on the Group’s steady and sustainable growth of corporate value

Global Environmental Protection
Social Activities《Categorize Fields of Activity》
Referencing the ISO 26000 standard and the GRI standards, the Group has categorized its CSR activities into 15 areas (page 20).

*1 Assessed based on findings from stakeholder dialogues, criteria of SRI assessment organizations, and the status of other companies’ CSR efforts.
*2 Assessed based on relevance to T&D Life Group’s corporate philosophy, management vision and Group CSR Charter, and the nature of the Group’s
CSR activities.

Third-party
Opinion《Verifying the Adequacy of Priority Areas》• After answering questions from a third-party organization regarding the priority area selection process and receiving a verification check of the evidence, the Group received a report on the results of that review.
• The Group CSR Committee (chaired by the president of T&D Holdings) then deliberated on and approved the selection of priority areas, which were reported to the Board of Directors.

Management
Control《Evaluate and Select Priority Areas》
The three areas were also assessed qualitatively, in terms of public interest and strength of demand in each area, in terms of theGroup’s corporate philosophy, management vision, and achievement of the Group CSR Charter, and in terms of contribution toSDGs, before being selected as priority areas.

Governance andInternal Control《Prioritizing Each Field》
The three fields were selected as priorities based on a quantitative assessment of both their impact on stakeholders*1 and theirimpact on the T&D Life Group’s steady and sustainable growth of corporate value*2.

Responsible
Institutional Investor● Process for Selecting Priority Areas

Index● Progress Management and Verification of Initiatives• The Group CSR Committee formulates an annual plan for priority area activities, and regularly checks progress with its implementation. Those developments are regularly reported to the Board of Directors.

19

● Categorize Fields of Activity
Category of priority aspects
1. Economy(allocation of value)

ISO 26000 core subjects
Organizational governance—Materiality of GRI standards

Impact—T&D Life Group

Economic performance

T&D Life Group

Anti-corruption
2-1. ComplianceFair operating practices

Anti-competitive behavior

T&D Life Group

Compliance2-2. Compliance

Human rights

Human Rights Assessment

T&D Life Group andsupply chain

2-3. Compliance

Consumer issues

Customer Privacy

T&D Life Group andcustomers

3-1. Human rights

Human rights

Human Rights Assessment

T&D Life Group andsupply chain

Employment
3-2. Respect for human rights

Labor practices

Occupational health and Safety
Training and Education

T&D Life Group

Diversity and Equal Opportunity
4. Better products and services Consumer issues

Providing Better Products andServices*

T&D Life Group andcustomers

5. CSR procurement

Fair operating practices

Supplier social assessment

Supply chain

6. Contribution to local
communities and societies

Community involvementand development

Local communities

Local communities

6-1. Contribution to healthCommunity involvementand development

Health promotion of communityand employees*

Local communities

Labor practices

T&D Life GroupRaw materials
Energy7-1. Protection of the global
environment

The Environment

Water
Atmospheric emissions

T&D Life Group and theglobal environment

Wastewater and waste
Compliance7-2. Protection of the global
environment

The Environment

Biodiversity

Global environment

8. Financial: Environmental
investing and lending:ownership

CSR in financial products

Responsibility as institutional
investors*

Recipients of investment
and lending

9. Measures against
demographic change
and aging
10. Not applicable due tonature of industry

Labor practices
Community involvementand development
Other

Measures against demographic
change and aging*
Other items (topics)* Materiality item identified by the T&D Life Group which is thought to have no correlation with any GRI standard.

20

T&D Life Group
Customers andlocal communities—

Top Message/
Organizational Profile

5–2 Contribution to SDGs

CSR Management

At the United Nations Sustainable Development Summit 2015, “Transforming Our World: the 2030 Agenda for Sustainable
Development” was adopted unanimously. The agenda sets forth Sustainable Development Goals (SDGs), consisting of 17 goals
and 169 targets, for the realization of sustainable development at the global level through the cooperation of the global community, including national governments, ordinary citizens and private-sector corporations.
The SDGs are aimed at realizing a sustainable world through initiatives that address issues in a wide range of fields. They arein line with the Group’s corporate philosophy of “aiming to be a group that contributes to all people and societies.” The Group
achieving SDGs through Group CSR initiatives, taking advantage of the features and strengths of the business.

The Group’s CSR Priority Areas and Contribution to SDGs
Corresponding CSR Priority Areasof the GroupThe Group’s Strategies, Policies, and Initiatives

5.

• Respect for human rights

Encouraging women to take active roles;
Improving work-life balance

7.	Affordable andclean energy• Global environmental protection

Energy and resource saving initiatives;
Investing and lending to renewable energy

8.	Decent work andeconomic growth• Providing better products and services• Respect for human rights

Providing products and services that respond tosociety’s needs

10. Reduced inequalities• Providing better products and services• Respect for human rights

Providing services designed for the elderly;
Creating a work environment where people canwork irrespective of age, gender, or disability

13. Climate action• Global environmental protection

Implementing social activities and conducting
investment and lending that leads to the protectionof the global environment

15. Life on land

• Global environmental protection

Implementing forest conservation activities andother activities to maintain biodiversity

Gender equality

Responsible
Institutional Investor

Providing products and services that address various social issues associated with Japan’s declining
birthrate and aging population;
Promoting health and productivity management

Social Activities• Providing better products and services

Priority Areas(3) Global Environmental
Protection

3.	Good health andwell-being

Priority Areas(2) Respect for Human
RightsSustainable Development
Goals (SDGs)

Priority Areas(1) Providing Better
Products and Services

will incorporate contributions to SDGs into the process for selecting Group CSR priority areas and make efforts to contribute toGovernance andInternal Control
Management
Control
Third-party
OpinionIndex
21

The following shows how the areas of the T&D Life Group CSR Charter, under which the Group as a whole carries out initiatives,
and the initiative items of the T&D Life Group Medium-Term Management Plan (FY2016–18) are connected to the 17 Sustainable
Development Goals.
Gender equality

9

10

11

12

13

14

15

16

Partnerships for the
goals
Peace, justice andstrong institutions

Quality education

8

Life on land

Good health andwell-being

7

Life below water

Zero hunger

6

Climate action

5

Responsible consumption and production
Sustainable cities
and communities

4

Reduced inequalities

3

Industry, innovationand infrastructure
Decent work andeconomic growth
Affordable and clean
energyClean water andsanitation2

No poverty

17 Sustainable Development Goals

1

Connection between SDGs and the T&D Life Group CSR Charter
T&D Life Group CSR Charter
The T&D Life Group will offer high-quality, optimal prod1 Providing Betteructs and services that meet customer needs, and will
Products and Services
contribute to the sustainable growth of society and to(Priority Areas)
the solution of social issues.

●

●

●

●

The T&D Life Group will strictly observe laws, regulations and rules, and act with sincerity and integrity
according to high ethical standards.
2 Strict Compliance●

The T&D Life Group will maintain and promote fair andfree competition.

●

The T&D Life Group will stand firmly against antisocial
forces and groups that may threaten the order or safetyof civil society.
The T&D Life Group will respect human rights, and proactively make efforts to enlighten all its employees onhuman rights.
3 Respect for
Human Rights(Priority Areas)

●
●

●

●

●

The T&D Life Group will respect the individuality anddiversity of all its employees, ensure a healthy and safe
work environment, and develop its human resources.

●

●

●

●

The T&D Life Group will respect privacy, and will strictly
control and protect personal information.

4 Communication

The T&D Life Group will provide proper information concerning its products and services and disclose corporate
information in an appropriate and timely manner to thegeneral public as well as to its customers and shareholders, and will actively strive to maintain a dialogue
with all its stakeholders.

5. Contribution to
Local 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 development of local communities.

●

●

●

●

The T&D Life Group will carry out its activities with full
6 Global Environmental
awareness of the importance of consideration for enviProtectionronmental issues, and will strive to protect the global(Priority Areas)
environment.

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

To ensure that its actions are in compliance with this
7. Establishment ofcharter, the T&D Life Group will develop an effective
Effective Governance governance structure and strive to cooperate with aand Thoroughwide range of stakeholders, including its customers,
Implementation
shareholders, employees, sales agents, business partners, and local communities.

Connection between SDGs and the T&D Life Group Medium-Term Management Plan
T&D Life Group Medium-Term Management Plan (FY2016–18)

Internal
growth[ Marketing strategy ]Aim to expand growth areas and promote the following
initiatives as common initiatives for the Group① Strengthen initiatives for the senior market② Work together as a group to strategically strengthen
Strategy
T&D Financial Lifefor domestic life
[ Asset management strategy ]insurance
By strategically utilizing ERM, increase the sophisticabusinesstion of asset management such as diversifying revenue
sources while implementing ALM in principle

●

●

●

●

[ IT strategy ]Enhance competitiveness by pursuing Group synergies

22

Investment, M&As, alliances, etc.
• Domestic life insurance business• Domestic peripheral businesses• Overseas investment, etc.

●●

Strategy
for domestic periph- Asset management business, pet insurance businesseralbusinesses
External
growth

●

●

●

●

●

●

●

17

103-2

103-3

Top Message/
Organizational Profile

6. Progress of CSR Activities

CSR Management

6–1 FY2017 Group CSR Activities Progress Report
The T&D Life Group has established the Group CSR Committee, chaired by the president of T&D Holdings and consisting mainlyof directors in charge of CSR at each Group company. Under this committee, we are pushing ahead with unified Group-wide
CSR activities.
The Group CSR Committee serves as the cornerstone for promoting the Group’s CSR activities. It formulates basic policies for
implementation status of those plans. Also in fiscal 2017, we promoted the Group’s CSR activities in the three priority areas,
namely, providing better products and services, respect for human rights, and global environmental protection.
FY2017 Group CSR Activities Progress Report (Partial Account of the Activities)• Continue to leverage Group synergies and develop
the next generation of human resources by
expanding personnel exchanges[Diversity Promotion Initiatives]• Creating a work environment where diverse people
can play active roles• Establishing a safe and worker-friendly work
environment• Creating an organization where everyone isrespected and accepted and everyone can comfortably exert his or her ability• The number of employees with disabilities was 367 (accounting for2.42% of the total workforce). Workplace tours were held before andafter recruitment. The employees with disabilities were provided withspecialized computers after they were hired. Special arrangements werealso made for their commuting needs.
• Held human rights education sessions for all employees more than twicea year on various human rights issues, such as discrimination due tosocial class or disability, harassment, and LGBT orientation• The Group began treating same-sex partners as spouses in its vacation/
welfare systems to create a comfortable environment for LGBT employees and others with diverse values.

• Continue to promote work style reforms to ensure
all Group executives and employees can grow

[Health promotion initiatives]• Conducted health promotion measures for executives and employees• Conducted joint Group stress checks• By promoting “Taiyo’s GENKI Project” at Taiyo Life and the “DAIDO KokoKara” program at Daido Life, the two companies are implementing various initiatives for promoting employee health• Promote health and productivity management

Reduction in power consumption
Period:FY2013–FY2017 (Baseline year: FY2009)
Scope:	Buildings owned, leased and used by T&D
Holdings and core Group companies
Target:	More than 10% reduction in
power consumption per floor space• Implemented a multitude of measures, including lights-out before business hours and during lunch breaks, and turning off office appliances,
as well as setting a “no overtime day” and implementing Cool Biz andWarm Biz campaigns, plus continuing to implement the “Lights Down”
Campaign• Achieved a reduction significantly exceeding the target of 10%, byattaining a five-year average of 80.9% from FY2013 to FY2017 compared
to baseline• Set a target in 10 years from FY2018 to promotefurther reduction in power consumption

Reduction in office paper use
Period:FY2014–FY2018
Baseline:	Average of office paper usage between
FY2009 and FY2013
Scope:	Paper used at T&D Holdings and head
offices of core Group companies
Target:9% reduction from baseline• Promoted reduction in office paper use primarily by introducing paperless meetings, reducing meeting materials, utilizing 2-in-1 and two-sided
printing and enforcing stricter control over use of copies• Made a steady progress by achieving 76.6% of the baseline year on
average of 4 years from FY2014 to FY2017• Continue to implement the measures shown on
the left to reduce office paper use

Green purchasing ratio
Target:	A green purchasing ratio for stationery
and other office supplies of 80% or more
Scope:
T&D Holdings and core Group companies• Established Group-wide Green Purchasing Standards andpromoted preferential purchasing of green products• Continued to achieve target in FY2017:
Green purchasing ratio of 95.7%.
• Continue to implement initiatives that give priority
to purchasing eco-friendly products.

• Issued the CR Report and enhanced disclosure on website• Distributed CSR information to all executives and employees throughGroup newsletters (issued four times per year)• Expand disclosure of information in the CR Report,
and enhance communication of Group CSR-related
information, including initiatives and results• Continue initiatives to raise CSR awareness in theGroup through education and training (seminars,
e-learning, etc.) on CSR information● Global Environmental Protection● Communication• Communicated Group CSR-related information• Raised CSR awareness within the Group● Contribution to Local Communities and Societies• Taiyo Life implemented the “Nationwide Clean Campaign”• Head office divisions (Tokyo) of each Group company held biannual blood
drives (A total of 314 people showed up to make blood donations in fiscal 2017)• Continue to participate in clean campaigns as
a Group• Continue to hold biannual Group-wide blood drives

Index• Clean-up campaigns(local community clean-up activities)• Group-wide blood drives

Third-party
Opinion• Promoted intra-Group personnel exchange• Supported employees’ career development by conducting in-house open
recruitment of employees seeking specific positions, MBAs, or being dispatched to companies outside of the GroupManagement
Control[Human resource development initiatives]• Leveraged Group synergies and developed the next
generation of human resources by expanding personnel exchanges● Respect for Human Rights

Governance andInternal Control• Continuing to contribute to solutions to social
issues and developing and offering high-quality,
optimal insurance products and services that meetcustomer needs

Responsible
Institutional Investor• Over 370,000 subscribers of Himawari Dementia Treatment Insurance• Launch of Centurion Pensions• Introduction of a paperless benefit claim procedure• Implementation of Taiyo’s GENKI Project• DAIDO KENCO ACTION (KENCO SUPPORT PROGRAM)• Launch of HAL Plus Rider• Launch of non-participating nursing-care term insurance• Launch of Fivetenworld

The Group fulfills its responsibility to society throughits life insurance business, by contributing to solutions to social issues and developing and offeringhigh-quality, optimal products and services that meetcustomer needs.

Social Activities

Check/Act
Activities planned for FY2018

Priority Areas(3) Global Environmental
ProtectionDo
FY2017 results/performance

Priority Areas(2) Respect for Human
RightsPlan
Initiatives● Providing Better Products and Services

Priority Areas(1) Providing Better
Products and Services

the Group’s CSR activities and selects important focus areas, along with drawing up annual plans and regularly confirming the23

7. Stakeholder Engagement102-40102-42102-43102-44

7–1 Communication● The T&D Life Group and Its Stakeholders

Customers
Shareholders/
Investors

Partnering for mutual
cooperation andprosperity

Providing applicablereturns on investments

Local
Communities/
Society
Activities as a memberof society

Sales
AgentsProviding better
products and services

Business
Partners

Effective and highly
transparent corporate
governanceFair dealings

Thorough compliance
Proactive communication

Governmental
Entities
Playing a publicrole in society

Employees

Environment
Protecting the environment,
everyone’s home

Providing workplaces thatmake work meaningful
and pleasurable● Management Reflecting Stakeholders’ Opinions
The T&D Life Group proactively engages in dialogue with stakeholders as set out in the T&D Life Group CSR Charter (see “4.
Communication”). By taking every possible opportunity to interact, the Group’s three life insurance companies collect theopinions of policyholders, sales agents and other stakeholders and reflect them in their respective business management.
● Proactive Information Disclosure
The T&D Life Group pursues proactive communication activities and works to make comprehensible information disclosures tocustomers, shareholders, investors, and all other stakeholders. To maintain and even heighten our trustworthiness in the eyes ofsociety, T&D Holdings and the Group’s three life insurance companies have formulated Disclosure Rules*. In keeping with theserules, we are striving to secure the transparency of management and to practice Group-wide and well-managed information disclosure in a timely, fair and accurate manner especially in the event of an emergency.
* Based on its Disclosure Rules, T&D Holdings has prepared and makes available its Disclosure Policy.

24Top Message/
Organizational Profile《Dialogues with Main Stakeholders》

Shareholders andinvestors

In addition to shareholders’ meetings, we hold information meetings, teleconferences, and in-person
visits for institutional investors. T&D Holdings informs its shareholders, numbering 229,448 as of March
31, 2018, of the status of Group operations and other matters twice a year, in June and December,through shareholder newsletters.

The Group has set up many points of contact with its customers, including sales representatives,
agents, call centers and the Internet, as well as a new policy procedures survey that focuses on theattitudes of sales representatives and the understandability of application forms and other documents
and customer satisfaction surveys, giving the Group access to a wide range of customer feedback. A
committee has also been established to improve customer satisfaction, and the Group incorporates
the opinions of outside committee members, including attorneys and experts in consumer issues, in
its mana gement.

Employees

Participation in the UN Global Compact, the Principles for Financial Action for the 21st Century,and the Japan Association for the United Nations Environment Programme (UNEP), support
for the Japan Down Syndrome Society, working with the Japan Philanthropic Association,
implementing Forests of Taiyo Life activities

Social Activities

The Group participates in the UN Global Compact, the Principles for Financial Action for the 21stCentury, and other initiatives. It also exchanges views in a wide range of areas through study groups
and dialogues with the participating companies. Furthermore, the Group has opportunities to understand stakeholders’ expectations toward enterprises and to explore possibilities of the Group’s contribution through support of and participation in the activities of NPOs active in each field.

Priority Areas(3) Global Environmental
Protection

Protecting
the environmentand contributing tolocal communities

Education and training are provided through on-the-job training and group training, and through support
for self-education efforts. The Group also conducts human rights awareness training that addresses
discrimination, harassment and other issues as a way of deepening employees’ understanding of theimportance of respecting human rights. Awareness surveys are conducted to collect information on
employee opinions and requests regarding job satisfaction and enhancing motivation. Through dialogues with its labor unions, the Group has an opportunity to discuss a wide range of subjects, includingGroup management and policies, wages, working hours, leave, human resource systems and benefits.

Priority Areas(2) Respect for Human
Rights

Education and training, human rights training, employee awareness surveys, dialogues andconsultations with labor unions, an internal reporting system, etc.

Priority Areas(1) Providing Better
Products and Services

Customer feedback, customer surveys, Fureai Club (policyholder meetings), business reporting
meetings, Service Quality Improvement Committee, Service Supervision Committee, etc.
Customers

CSR Management

Shareholders’ meetings, financial results briefings, in-person visits to shareholders andinstitutional investors, publication of shareholder newsletters, etc.

Responsible
Institutional Investor
Governance andInternal Control
Management
Control
Third-party
Opinion
Index
25

III

Priority Areas (1) Providing Better Products and Services

1. Basic Concept
1–1 Basic Concept
The T&D Life Group has positioned “Providing Better Products and Services” as the first principle of the T&D Life Group CSR
Charter. The Group clearly states its commitment to fulfilling its responsibilities to society through the life insurance business byoffering well-suited, high-quality products and services that meet customer needs.
The T&D Life Group believes that our most basic responsibility to society is to provide products and services that respond to theneeds of society and the Group’s customers that are changing in a variety of ways with the acceleration of Japan’s declining birthrate and aging population.

2. Offering Products and Services That Address Social Needs
2–1 Initiatives by Taiyo Life
《Product Development which Preempts the Changes of the Times》
Japan’s rapidly aging society, the so-called “era of the 100-year life” is about to get fully
underway. Taiyo Life is striving to provide high-quality products and services so that
customers in the senior market can enjoy greater peace of mind.
Staying ahead of the curve, the company launched Himawari Dementia Treatment
Insurance in March 2016. The product garnered support of numerous customers in thesecond year of release, on the back of growing public interest in dementia. The numberof insurance policies sold exceeded 370,000.*
Himawari Dementia Treatment Insurance covers prescribed conditions due to dementia. It is the first product in the life insurance industry that can be available to anyone,
including those with health concerns.
In October 2017, the company released a new product, Centurion Pensions, which leads to healthy lives
in the era of the centenarian age. Pension benefits and nursing-care benefits can be combined. In addition to lifelong pension benefits, if an insured person requires long-term care, he or she can receive bigger pensions.
* Total policies sold for Himawari Dementia Treatment Insurance and Dementia Treatment Insurance (as of the end of June 2018)《To Deliver Peace of Mind to Families》
Taiyo Life offers Kaketsuke-Tai Service. Administrative personnel with specialized knowledge make personal visits to customers and their families. They provide support with relevant procedures so that thecustomers, especially seniors, can complete procedures for receiving benefits at ease and conveniently.
Kaketsuke-Tai Service realizes a paperless system for requesting benefits. Customers can complete theprocedure only by confirming the content of relevant claims inputted by the administrative personnel andsigning on dedicated mobile terminals. After the service was made available in April 2016, it was usedover 45,000 times as of the end of March 2018.
Furthermore, the company proactively recommends the family members of a senior customer to bepresent when he or she concludes a contract to prevent misunderstanding. In addition, the Family
Registration Program has been adopted in case it is impossible to contact a customer due to various reasons, such as dementia and hospitalization. The system encourages prior registration of contact information of customers’ family members.
《Initiatives in Taiyo’s GENKI Project》
Looking ahead to era of the 100-year life, Taiyo Life has engaged in Taiyo’s GENKI
Project, which is an effort that began in June 2016 to make employees, customers, andsociety healthy. The aim is to address the social issue of longer healthy life spans, thatis, living a long healthy life.
As for specific approaches, the company has provided a smartphone app supportiveof preventing dementia for customers. It also worked to learn “Universal Manners” sothat its employees are more capable of offering assistance by taking the circumstancesof each customer into account.
These activities have earned a fine reputation from outside assessment organizations. The company has been awarded numerous prizes for these efforts, including the“Award for Consumer-Oriented Activities” granted at the 3rd ACAP Commendation
for Consumer-Oriented Activities hosted by the Association of Consumer Affairs
Professionals (ACAP) in fiscal 2017.
26

103-2

103-3

Top Message/
Organizational Profile

2–2 Initiatives by Daido Life

CSR Management《Initiatives to Disseminate Health-oriented Management*—DAIDO KENCO ACTION》
Daido Life assists SMEs in implementing health-oriented management. The aims are to contribute to creatinga society where SMEs and their employees can actively perform and to solving issues faced by Japan’s rapidly aging society.
The company will endeavor to establish a system through which health-oriented management can become prevalent and take root in as many SMEs as possible all across Japan. For that, it will widen the circle of collaboration withcompanies and organizations that provide support in practice of health-oriented management.

Sharing the declaration of health andproductivity management within the Company

01

Declaration of healthand productivity
management

Acquiring points throughhealth actions
Health-related products
and services at
a preferential price05

Introduction of healthcheckup institution andreservation by proxy02

PromotinghealthcheckupIncentive

History management ofhealth checkup results
Stress check

Social Activities《Launch of “HAL Plus Rider”》
Daido Life launched “HAL Plus Rider” for covering treatment of certain intractable diseases with therobot suit, Lower-Limb Model HAL for Medical Use (“HAL for Medical Use”), developed and supplied by
CYBERDYNE, INC. in July 2017.
This rider can be added to the Daido Life’s M-type product (a non-participating comprehensive medical insurance). It has gained an excellent reputation from many customers for its advanced industry-first* coverage.
The number of contracts concluded for adding the rider exceeded 260,000 (as of the end of March 2018).
The company will contribute to creating a society where people are healthy and affluent by promoting
the dissemination and penetration of treatment for intractable disease using HAL for Medical Use.

Kaigo
ReliefThird-party
OpinionKaigo
Concierge

Management
Control

ShunyuReliefGovernance andInternal Control《Launch of Non-Participating Nursing-Care Term Insurance》
The needs of company owners for nursing-care benefits are increasing following a growing trend in thenumber of people requiring long-term care in the public long-term care insurance system.
Furthermore, there are increasing needs these days in the corporate market for wealth accumulation
through use of life insurance for various purposes, such as business funds and retirement allowances.
To satisfy these needs, the company released non-participating nursing-care term insurance in October
2017. This is an insurance product designed for corporations and has both nursing-care and death benefits
and wealth accumulation functions.

Responsible
Institutional Investor* According to research by Daito Life

Index

《Comprehensive Support of Nursing-Care Burden》
There are growing needs for nursing-care benefits as people age. In an
attempt to meet the needs, the company has sold Shunyu Relief, aninsurance policy to protect against loss of income when long-term care isrequired by SME owners and individual business owners, and Kaigo Relief,
an insurance policy to prepare for nursing-care costs.
The company has also introduced Kaigo Concierge, a comprehensive support service for nursing care. This includes offering consultation on general
nursing-care issues, and referrals to nursing-care facilities by professional
workers specializing in nursing care, such as care managers.
By offering Shunyu Relief, Kaigo Relief and Kaigo Concierge integrally, the company comprehensively offers assistance in lifting not only financial burdens but also physical and psychological burdens imposed upon customers by nursing care. In addition, the company
started providing Dementia Plus in April 2017. This is a service that meets a wide rangeof requests, such as nursing care for patients with dementia and prevention of dementia.

Priority Areas(3) Global Environmental
Protection

04
03—Providing the Daido Life KENCO SUPPORT PROGRAM,
Health promoted
Onset
Automatic recording
solutionsrisk analysis
Kenco Mirai Yohoand visualization ofa Tool for Implementing Health-oriented Management—
daily activity volume
Administrator menu
Dietary management and
The company has developed the Daido Life KENCO SUPPORT
advice from nutritionist
PROGRAM in cooperation with a multitude of companies, inparticular Value HR Co., Ltd., that possess specialized technology and know-how.
The Daido Life KENCO SUPPORT PROGRAM is comprehensive and targeted at SMEs. This program consistently supports implementation of the PDCA cycle necessary for health-oriented management. This includes assistance in encouraging employees to go
through medical examinations for companies, risk analysis of development of lifestyle disease, etc. for individual SME owners andemployees, and provision of health promotion solutions and incentives that promote continuous health improvement efforts.

Priority Areas(2) Respect for Human
Rights—Collaboration with Companies and Organizations Promoting theDissemination of Health-oriented Management—
The company will endeavor to establish a system throughwhich health-oriented management can become prevalentand take root in as many SMEs as possible all across Japan.
For that, it will widen the circle of collaboration with companies and organizations that assist SMEs in implementing
health-oriented management.

Priority Areas(1) Providing Better
Products and Services*	Health-oriented management means that companies consider health management of employees from a business-management perspective and strategically practice management and the establishment of employees’ health.
	Health-oriented management is a registered trademark of the Workshop for the Management of Health on Company and Employee, a specified nonprofit organization.

27

2–3 Initiatives by T&D Financial Life
《Products Responding to the Diversifying Needs of Customers》
To respond to diversifying customer needs, T&D Financial Life enriches
its product lineup and provides products in a timely manner throughbanks and other financial institutions as well as insurance shops. For
senior customers, it provides asset formation products to support a
comfortable retirement life by preparing for post-retirement expenditures and the need for protection for bereaved families. For the working and childrearing generation, it offers protection-oriented products

Singlepremium
whole life
insuranceat an affordable price.
In May 2017, the company released single-premium whole life insurances, Shogai Premium World 4 and Shogai Premium Japan 4. Bothproducts inherit the feature of existing products which allows customers to simultaneously put in place both the funds they will use in theirSingle-premium
individual annuitie

lifetimes and the funds they will leave behind, while expanding the eli-

Level-premiumincome protectiontype insurance

gible age range, offering a broader response to customer needs.
Furthermore, the company released Fivetenworld, a single-premium
individual annuity, in December 2017. This is a foreign currency-liked
annuity product with the duration of the policy being set at 5 years or
10 years. The product satisfies the needs for increasing funds throughthe function that settles the amount of profit when the target value
set in advance is reached. In addition, the needs for transferring andleaving behind and preparing funds can be fulfilled by adding the riders that cover advancement, and yen-based death benefits and nursing-care benefits.
Moreover, in April 2018, the company revised Kakei Ni Yasashii Shunyuhosho, a level-premium income protection insurance.
Through the revision, it has further enriched benefits related to specified diseases.
《Initiatives for Improving Customer Service Quality》
T&D Financial Life is discussing and pushing ahead with a variety of efforts to further improve services for senior customers andcustomers with disabilities. The company redesigned its website in April 2017 to make it easier to read and use. Since September
2017, the company has accepted the signature of parties other than an insured person’s family members (such as home caregivers, facility committee members, and district welfare commissioners) on behalf of the insured if there is no specifiable family member at the time of signing. In addition, employees have been allowed to sign on behalf of a relevant insured person.
Furthermore, the company has placed a call button for hard-of-hearing customers and an ear mark that indicates the availabilityof written conversation at the general reception desk of its headquarters building. At the reception desks of each shop, the staff
strive to have easy-to-understand communication with customers with disabilities using written-conversation boards and communication boards.
《Initiatives for Improvement in Response to Customer Feedback》
In response to feedback from customers, particularly elderly ones,
T&D Financial Life in October 2017 expanded the scope of death-benefits beneficiaries of single-premium products from relatives byblood within the third degree to relatives within the third degree.
Furthermore, the company has created a new guidebook for conveying information on its services and various systems to elderly customers in an easily understandable manner. This includes the introductionof the Secondary Contact Information Registration System, a systemof registering the contact information of the family members of a customer in advance, in case it becomes difficult to have contact with thecustomer due to a natural disaster, etc. The guidebook is sent to customers along with the Notification of Policy Details.
Through these activities, the company is aiming to constantly improve
its services.

28

2018 年（平成 30 年）

T&Dフィナンシャル生命
からのお知らせ金融機関・来店型保険ショップ等を通じてご 加入のお客さま

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Top Message/
Organizational Profile

2–4 Initiatives by T&D Asset Management

Environment
SocialPriority Areas(1) Providing Better
Products and Services

Governance

2–5 Initiatives with Pet & Family Small-amount Short-term Insurance

Priority Areas(2) Respect for Human
Rights《Insurance Protection for Precious Family Members》
As more pet owners recognize their pets as family members, interest in pet healthcare and its associated costs is increasing. This is attributable to social issues, suchas the advancement in the declining birthrate and aging population and the increase in
one-person households.
Pet & Family Small-amount Short-term Insurance took these circumstances into consideration and has made efforts to address the needs for pet healthcare costs. Thus,
the company provides Genki Number One and Genki Number One Slim, products thatcompensate for a portion of the costs of treatments for pets at veterinary clinics due
to illness or injury. These products help to ensure that pet owners can obtain veterinary
treatment for their pets with peace of mind.

Social Activities

103-2

Priority Areas(3) Global Environmental
Protection《Providing Information on Pets’ Lives》
Since July 2017, Pet & Family Small-amount Short-term Insurance has posted on its
website information for enriching pets’ lives. The website also features special contents titled “Pet News Storage” that introduce questions closely related to pets’ lives
in an easily understandable fashion. It is regularly conveying information on various subjects related to pets in an attempt todeepen understanding of pets, which are precious family members.

2–6 Best Senior Service

CSR Management《Products that Contribute to the Formation of a Sustainable Society》
T&D Asset Management manages the T&D Japanese Equity ESG Research Fund. The
fund selectively invests in companies with an outstanding ESG (Environmental, Socialand Governance) performance based on ESG research which seeks to generate investment returns that outperform the medium- to long-term market average while contributing to the formation of a sustainable society by investing in companies which contributeto the reduction of environmental impact and the achievement of a sound society.
In fiscal 2017, the company made contributions to the solutions for social issues byinvesting in companies that are proactively devoted to solving problems toward the realization of a healthy society. Besides, it started pursuing a strategy of health-related social
contribution stocks that aims to acquire high investment income in the long term.

103-3

Third-party
OpinionIndex③ Initiatives for Securing Peace of Mind at the Time of Contract Conclusion and Renewal
The company proactively recommends the family members of a senior customer to be present when he or she enters into a contract. In addition, the person in charge at the headquarters reconfirms the intention of the contract and declaration (for some products) by using the videophone function of the terminal that each sales representative carries.
Furthermore, the company has adopted the Family Registration Program in the event contact with policyholders become impossible when large-scale disasters occur. The system is to register the contact information of the family members of customers inadvance, and registration is recommended. The family members whose contact information has been registered are entitled toinquire about coverage and the procedure for putting in claims on behalf of the policyholder.

Management
Control② Development of New Products for Senior Customers
In March 2016, Taiyo Life launched Himawari Dementia Treatment Insurance, the life insurance industry’s first product to offer
coverage for predetermined states caused by dementia, available for seniors with health concerns. In addition to dementia, theproduct provides coverage for the diseases and illnesses to which seniors are particularly vulnerable, making it popular among
elderly customers. The cumulative number of policies sold exceeded 370,000 as of June 2018.

Governance andInternal Control《Main Initiatives of Taiyo Life》① Home Visit Service
The company launched the Senior Anshin Support Activities in July 2014 as a visiting service activity designed for customers whoare seniors. Its staff visit them at least once a year. Confirmation of insurance contract coverage, and examination of whether
claims have been fully submitted, are carried out in a careful and easily understandable manner. This service enables each of thesenior customers to enjoy peace of mind.

Responsible
Institutional Investor

Based on the social situation that the aging of society is progressing, we are carrying out Group-wide efforts to improve the convenience and satisfaction of our elderly customers. At Taiyo Life and Daido Life, this initiative was named the Best Senior Service,and through this initiative, we are developing a variety of service improvements.

29

④ Kaketsuke-Tai Service
The Kaketsuke-Tai Service is provided by Taiyo Life’s administrative personnel with specialized knowledge. They personally visit
customers and their families to lighten the burdens of dealing with benefits claims and to provide meticulous support unique toadministrative personnel. This service is very popular among many customers including senior customers. More than 45,000 customers had utilized this service (as of the end of March 2018) since its launch in April 2016. In addition, the company introduced
a paperless procedure to claim benefits, making it possible for customers to check the content of their claims and complete theprocedure by merely signing on the dedicated mobile terminal.
《Major Initiatives by Daido Life》① Initiatives for Enhancing Sense of Ease during and after Enrollment<Recommendation on Presence of Family Members>
The company recommends that family members of customers 70 years of age or older be present during the enrollment process. This is to ensure a full understanding of the content of insurance policies that customers are going to enroll in with a senseof ease. The company explains the content of the insurance coverage and important items that need extra attention in detail bothto the customers and their families. It also carries forward the procedures by ensuring that the content is in line with the customers’ intentions.
<Designated Proxy Application Rider>
The Designated Proxy Application Rider is introduced to customers for insurance policies in which the insured is the beneficiaryof insurance claims, etc. In cases where it becomes difficult for the insured to file an insurance claim due to sickness, accidents,
or other reasons, a representative who is designated in advance (a preregistered proxy) can file a claim.
Furthermore, the company expanded the range of the Designated Proxy Application Option in April 2018 so that non-relatives
can file claims.
<Family Registration Program>
We propose that our individual customers register their family members in the Family Registration Program, under which a family member registered in advance may make an inquiry about policy details or request dispatch of claim forms when the policyholder is unable to do so. Furthermore, we also send out a copy of the Daido Life Guide sent to policyholders to their families aswell if the policyholders request it.
② Initiatives for Receiving Insurance Claims, etc. Reliably and Promptly
The company regularly checks if there are no unclaimed insurance claims, etc. for individual customers who are over a certain age
so they can receive insurance claims reliably and promptly.
③ Improvement of Treatment of Customers and Hospitality
In order to provide courteous and careful service in response to customers’ situations, we formulated and use a service manual
taking into account the general characteristics of our senior customers, such as changes in physical abilities and psychologicalaspects, as well as visual aides. Through these means, we are striving to provide an environment in which our customers cancomplete necessary procedures with peace of mind.
《Major Initiatives by T&D Financial Life》① Measures at the Time of Enrollment
When concluding a contract with customers who are 70 years of age or older, the company takes measures to confirm they havethe intention of buying the insurance policy. These measures include recommending the customers’ family members be present
at the time of signing and setting a period for customers to fully examine the policy. Also, when developing information materials,
the company pays attention to their font size and color so they are easy to see, read, and understand. In addition, it encloses a
confirmation letter at the time of sending out insurance certificates and asks customers to reconfirm whether there are any mistakes in the contract’s content and description in the certificate.
② Measures during Enrollment
The company recommends the registration of the Secondary Contact to deal with cases where information concerning various
procedure does not reach a contractor or where it becomes difficult to communicate with policyholders due to disasters, etc. The
contract can thus reach policyholders promptly by contacting registered family members. In addition, the company implements
the policy inspection system via telephone for policyholders of a certain age and older so that the company will not miss changeof-contact information, claims for insurance, etc.
Furthermore, the company does not use automatic voice guidance at the call center, which is the point of contact with customers. Instead, customers are directly connected to the operators. This way, they can contact us with peace of mind.
③ Measures during Procedures
The company is working to improve convenience for customers to enable them to easily go through the procedures. It revises claim
documents and uses colors for them as well as omitting the submission of an insurance certificate and a seal registration certificate.
30102-43

103-2

103-3

Top Message/
Organizational Profile

3. Providing Wholehearted Reassurance

CSR Management

3–1 Fairness in Offering Insurance Products to the Broader PublicLife insurance is a mutual aid system in which insurance premiums collected from a large number of policyholders are used tofund insurance payments and benefits in the event of someone’s death or hospitalization. Life insurance companies use the lawof large numbers to calculate fair premiums based on statistical data such as mortality rates and insurance accident rates presented in life insurance tables, which are calculated separately for each age and gender. Life insurance companies maintain theing coverage, for those who do not meet the companies’ predetermined standards due to health conditions or other factors. The
Group’s three life insurance companies and other Group members respect customers’ human rights, and develop and offer many
unique insurance products which meet a wide variety of customer needs, health conditions, gender, enrollment age and otherspecific circumstances at a fair premium.

The 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 applicable productsthat meet customers’ needs and circumstances.
《Solicitation Policy (In the Case of Taiyo Life)》• We will make efforts to enhance employee education and ourtraining program.
• We will safeguard customer information strictly in confidence.
• We will make continuous efforts to establish an internal structure ensuring adequate solicitation activities.

Social Activities• We will comply with the applicable laws, rules and regulations
in solicitation activities.
• We will endeavor to carry out adequate solicitation activities inconsideration of the customer’s circumstances.
• We will give due consideration to the time and the place forsolicitation activities.
• We will explain the important issues properly.

Priority Areas(3) Global Environmental
Protection

The following are Taiyo Life’s basic solicitation policies for offering financial products, including life insurance, to customers. We
always endeavor to develop and offer products in a proper and appropriate manner in due consideration of customers’ desires, circumstances and privacy in order to provide customers with proper services through consultation.

Priority Areas(2) Respect for Human
Rights

3–2 Establishment of Solicitation Policies

Priority Areas(1) Providing Better
Products and Services

fairness of the life insurance system by adding some conditions such as additional premiums, or in the worst cases by not offer-

Responsible
Institutional Investor
Governance andInternal Control
Management
Control
Third-party
OpinionIndex
31

3–3 Efforts to Offer Customer-oriented Services
From contract procedures and after-sales service to payment of insurance claims and benefits, the three life insurance companies
endeavor to provide services with an emphasis on understandability as an approach to earn trust from customers.
● Awards for Customer Service《Taiyo Life》《Received the 2017 UCDA “Supreme Excellence” Award》
The company’s “Filing for Insurance Benefits and Insurance Claims/Procedure Guidebook” was highly recognized by the
UCDA 2017 for its user-friendly style that includes the steps of filing a claim and specific examples of insurance benefits andinsurance claims. The company received the 2017 UCDA “Supreme Excellence” Award for its attitude of adequately, promptly
and fully paying insurance claims and insurance benefits.
《Obtained the UCDA “Easy-to-read Design” Certification》
The company revised the design of the documents of benefits claims by simplifying the description of how to fill in the formand expanding the entry column to make it easier for customers to complete the paper work. This effort of making userfriendly documents for insurance claims and insurance benefits without imposing any burdens has been recognized, as we
obtained the UCDA Easy-to-read Design” certification.
《Obtained Universal Manners Award 2017’s “Universal Manners Award” and “Jury Prize”》
The Universal Manners Award 2017 recognizes companies and organizations that promote pleasant experiences to diverse
group of people including the elderly and people with disabilities. The company received the “Universal Manners Award(Innovation Division)” as a firm that promotes new perspectives and unique and innovative initiatives as the rapidly aging society takes shape. Furthermore, among the 19 organizations that won the award, the company received the “Jury Prize,” which
was given to three organizations selected by the judges from their perspectives as outstanding examples.
《Daido Life》《Received the UCDA Award 2017’s “Award for Easy-to-Understand Information”》
The company’s Notice of Premium Account Transfer, Guidance on Premium Payment, and Guidance on Insurance Benefit
Procedure received the “Award for Easy-to-Understand Information,” which is one of the merit prizes at the UCDA Award2017. This was highly appreciated since the information necessary for customers is arranged in an easy-to-understand manner.
《Obtained the “Tsutawaru Design” certification from the UCDA》
Daido Life has obtained the “Tsutawaru Design” certification from the UCDA for its main forms and screens. For non-paper
media, namely for its terminal-based new policy application procedure screen, Daido Life received this certification in 2015 forthe first time in the life insurance industry.
(UCDA Certified Documents)
Specification [policy overview], new policy application procedure screen, notification of policy details, premium account transfer
notification, premium payment information, benefits payment claim documents, claim leaflet, and pension payment claim form
《Universal Manners Award 2017: Received Universal Manners Award and Web Voting Grand Prix》
In the Universal Manners Award 2017 which recognizes the companies and groups in an endeavor to promote initiatives
friendly to diversified people including the elderly and the handicapped, the company received the Universal Manners Awardin the Inclusion Sector. The award is given to the company with effective approaches toward reflecting the voices of customers such as the elderly and the handicapped from the planning phase. In addition, the company received the Web Voting
Grand Prix. The award is given to the company which has earned recognition from the public through internet voting for universal manners initiatives.

32

Top Message/
Organizational Profile● Initiatives by the Three Life Insurance Companies

CSR Management《At the Time of Making a Contract》
Major Documents• Clearly worded “Product Pamphlet”• “Insurance Specification Documents” (contract summary) describing insurance plans tailored to individual needs of customers• “Notifications of Important Matters,” as a reminder, and “Warning Information,” for calling the customer’s attention to particularly important points• “Confirmation of Intent” as a final step to ensure that the customer’s needs are met by the insurance product offered• “Overview Materials,” which provides a concise overview of the product as well as information about fees, etc.
《After-sales Services》

Priority Areas(1) Providing Better
Products and Services• “Policy Leaflet and Policy Provisions” describing the various procedures when making a contract, and the structure of the productWe work to ensure customer satisfaction by providing various kinds of information after contracts.
[Major Information Provision Services]• Notification of policy details (from the three life insurance companies)• Distribution of service guidebooks (Taiyo Life) (T&D Financial Life)• Distribution of Security Guide (Taiyo Life)• Notification of account transfer payment (from the three life insurance companies)• Confirming policy details by visiting customers (Taiyo Life) (Daido Life)[Examples of Measures to Facilitate Making Insurance and Benefit Claims]• Handling of Direct Payment Service to Medical Institutions of advanced medical care benefits (Daido Life) (T&D Financial Life)* Through this service, the company pays insurance benefits directly to medical institutions for expensive and advanced medical treatment such as
proton-beam therapy and heavy-particle radiotherapy to ease the temporary burden on its customers. These benefits help customers receive treatment with ease of mind.

Priority Areas(3) Global Environmental
Protection• Accounting method guidance service for corporate clients (Daido Life)

Priority Areas(2) Respect for Human
RightsWe also work to enhance our services so that the policyholders can make insurance and benefit claims more easily.

Social Activities• Distribution of booklets and leaflets that comprehensively describe insurance and benefit claims procedures as well as payable case examples (Taiyo Life) (Daido Life)• Reimbursement of expenses for obtaining a medical certificate in the event that the related insurance claim is completely
rejected despite that insurance and benefit claims (from the three life insurance companies)• If a claim satisfies certain requirements, submission of medical certificate can be omitted or a copy of a medical certificate

ance companies)• Introduction of designated proxy application option to allow the pre-registered proxy to file insurance claims in the event thatthe policyholder is unable to file the claim for a certain reason (from the three life insurance companies)• Periodic follow-up of customers who take a long time to submit claim documents despite having declared an intention tobehalf of the customer, as well as obtaining medical certificates needed for benefit claims (Taiyo Life)• Made it possible to designate a signing proxy other than a family member in the event that a customer has physical difficultyin signing, filling out or affixing their seal to claim forms due to illness or suchlike (Daido Life) (T&D Financial Life)

Governance andInternal Control

make insurance claims (from the three life insurance companies)• Services include confirmation of senior customer intent to file a claim, after which office staff may fill out claim forms on

Responsible
Institutional Investor

can be accepted (from the three life insurance companies)• Improvement of explanation and advice at Customer Service Center (call center) and branch offices (from the three life insur-

Management
Control
Third-party
OpinionIndex
33

3–4 Working toward Better After-sales Service
The Group’s three life insurance companies have each set up various systems aiming at providing quality after-sales services.
At Customer Service Centers, professionally trained staff handles inquiries and insurance claims from customers nationwide
over the telephone in a considerate, polite, prompt, and accurate manner. Also, all our branch office staff and sales representatives, fully aware of the importance of post-contract support, attend to individual customers, offering the best possible service toeach of them. At Taiyo Life, employees visit homes of senior customers at least once a year and check the coverage and missing claims. Some senior customers are difficult for sales representatives to visit regularly due to geographical factors such as alack of local branches and sales locations. In this case, the company conducts confirmation activities that combine outbound callswith face-to-face distribution of brochures created for the purpose of checking unclaimed cases by a delivery person. Daido Lifeis conducting activities to confirm policy details where sales representatives and insurance agents visit customers to confirm thecurrent policy details and necessary amount of benefits. In addition, the company is making efforts to provide detailed services
such as suggesting customers to also take measures against a range of risks (risk management).

3–5 Other Services
As shown below, the Group’s three life insurance companies offer diverse services to meet the requests of customers.
● T&D Club Off
T&D Club Off offers a range of services for daily lives and enhancing off-time activities to the policyholders of the three life insurance companies and Pet & Family Small-amount Short-term Insurance. T&D Club Off members can use over 200,000 facilities
and services such as hotels inside and outside Japan, leisure facilities, sports clubs, medical check-ups, and car rental at special
discount rates.
《Example》• Domestic hotels, Japanese inns, and overseas hotels: about 20,000 locations• Amusement and theme parks/ About 700 locations• Housework services, pet sitting, and phone consultations on pensions and legal issue* For more details about these services, please visit each company’s website.

● Other Services
We offer a wide range of services. Our private nursing-home referral service (from Taiyo Life) introduces over 300 facilities nationwide in collaboration with other industries. The “best doctors service” (from Taiyo Life) introduces good and reliable doctors andhospitals for when policyholders have serious illnesses. The adult guardianship system introduction service (from Taiyo Life) introduces experts in the adult guardianship system that supports people whose judgment has deteriorated.
● Customer Service Center Open for Inquiries on Saturdays and Sundays
In order to provide services to customers who are busy on weekdays, Taiyo Life’s Customer Service Center, or call center, is open
and handles inquiries on Saturdays and Sundays from 9:00 to 17:00 as well.
● Services Useful for SMEs
Daido Life provides various services to help policyholders with business support and health support.
《Examples of Services》[Business Support]• Services that comprehensively support the practice of health-oriented management at SMEs
• Support for a stress check system, from initial preparation to post-deployment follow-up• Specialist support for use of M&A by SMEs
• Providing reports on management strategy, industry trends, and other useful business information• Providing a standard form of company regulations• Complimentary assessment for receiving public subsidies• Complimentary assessment of employment regulation• Providing information on public support[Health Support]• Nursing care professionals provide one-stop support in resolving a variety of concerns and problems regarding nursing care
• Health counseling and second opinion service• Health screening referral service* For more details, please contact the Customer Service Center of Daido Life.
34

Top Message/
Organizational Profile● Service on the Internet
The Group firms, including the three life insurance companies provide various kinds of information on their websites. As part of

CSR Management

our efforts to improve customers’ convenience, we also offer online services for payment procedures, inquiries and change ofregistered information. At Pet & Family Small-amount Short-term Insurance, customers can also purchase pet insurance on thecompany’s website.
《Examples of Internet Services》
Taiyo Life
option, change of password• Request for application forms for change of account, change of first/family name, loan repayment• Used for making loans to policyholders or for the withdrawal of accumulated dividends or various types of deferred funds• Reissue of insurance certificates, annuity payment certificates, deferred fund payment certificates and life insurance premium payment certificates
Daido Life
• Change in contract and insurance claim such as change of address, account, etc.
• Web-ATM for making loans to policyholders, withdrawal of accumulated dividends, etc.
• Inquiries about insurance policy details, inquiries about accounts for automatic withdrawal of insurance premiums, various
inquiries about guidance (guidance on insurance premiums accounting method, etc.)• Inquiries about summary and details of policies such as coverage details and change in accumulated funds• Transfer of accumulated funds, set up transfer ratio in case of contracts with periodic increase of amount• Requests for various forms for procedures (change of address, reissue of 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.

3–6 In Order to Provide Better Services

Priority Areas(3) Global Environmental
Protection

T&D Financial Life

Priority Areas(2) Respect for Human
Rights• Inquiries about insurance policy details

Priority Areas(1) Providing Better
Products and Services• Change of information related to contract, such as change of address, request for adding designated proxy application

Social Activities

The Group’s three life insurance companies are working to enhance the skills of their customer service staff based on a basic
knowledge of life insurance, specialist knowledge and compliance essential to increase customer satisfaction. The three life
insurance companies have diverse staff members such as sales representatives, customer service staff, agents and wholesalers
who are engaged in duties to provide the most suitable services to customers depending upon each individual business model.
cational and training opportunities.
[Education Program for New Employees (Taiyo Life)]
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 already purchased and so on, aiming to increase each customer’s satisfaction. Our sales perproducts as well as tax affairs and financial planning expertise.
《Education Programs for New Sales Representatives (New-employee Education Programs and Financial Planner
Education Programs)》

Training Stage 3

1st~3rd month

4th~6th month7th~12th month13th~36th month

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

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

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

The period needed toachieve an even higher levelof knowledge and expertiseand build upon what waslearnt over the previous
year, in order to propose theoptimum insurance
protection to each customer

FP 3rd Grade

FP 2nd Grade

Index

Training Stage 2

Third-party
OpinionAcquisition of basic
knowledge for
insurance sales,
including knowledge
about products andcontract procedures

2nd~3rd yearof training

Training Stage 1

Management
Control

Preregistration
training

Registration

Attendance contract

Training andacquisition of basic
knowledge for
examination on
general education

Examination on general education

Pre-examination
training

Governance andInternal Control

sonnel undertake internal training programs and work to obtain external qualifications to gain specialist knowledge on insurance

Responsible
Institutional Investor

We have developed human capital training programs for such diverse staff, and always work to provide them with the best edu-

35

[E-DFP Program (Daido Life)]
Sales representatives must get a firm grasp of customer needs, which are diversifying and becoming more sophisticated, andpractice high-quality, consulting-oriented sales. For this reason, Daido Life has set up its own E-DFP (Executive Daido Financial
Planner) program with the purpose of enabling its sales representatives to obtain a wide range of professional knowledge including taxation, finance, and financial products. The E-DFP qualification is awarded to those who have passed all six life insurance
college course examinations and are ranked as a 2nd Grade Certified Skilled Worker of Financial Planning or above, including
AFPs and CFPs.
《E-DFP Program (As of March 2018)》

Professional
Course Exam

Advanced Professional
Course Exam

College Course Exam
(6 courses)

Life Consultant

SeniorLife Consultant

Total Life Consultant

Industry-wide
education and exam

FP skill
certification exam

3rd Grade Certified Skilled
Worker of Financial Planning

Acquisitionof E-DFP
qualification(812 staff
members)

2nd Grade Certified Skilled Worker ofFinancial Planning or above

1,857 staff members (including CFPs and AFPs)

3–7 Cooperation with Sales Agents and Cooperating Organizations[Sales Agent Training Program]
At Daido Life, the head office and branches work together closely to provide high-quality support for sales agents by assistingthem in responding to customers’ diversified needs. As a part of these efforts, the company develops programs to offer practical training, using its own e-learning materials and practical guides to help sales agents acquire broad knowledge on the compliance and insurance business.
[Business Partner Meetings]
Daido Life has entered into partnerships with SME industry associations as well as the professional organizations of tax accountants and others, and has built a sales structure aimed at offering applicable life insurance products tailored to the needs of various member companies, members who are tax accountants, and others. Because these partner organizations and agents are
key stakeholders of Daido Life, the Company holds regular meetings with its partners to report the latest business developments
and to hear their views on Daido Life’s business operations.
[Wholesaler Activities]
T&D Financial Life carries out elaborate support activities for its sales agents, such as 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, to
win the trust of customers and sales agents, the company provides practical training to wholesalers, to deepen knowledge about
insurance and other financial products and enhance sales skills, overall asset management, related laws and regulations as wellas improve presentation skills for accurately explaining features of our products to customers and sales agents.

36

102-44

103-2

103-3

Top Message/
Organizational Profile

4. Improving Customer Satisfaction

CSR Management

4–1 Initiatives to Respond to Customer Feedback● System for Reflecting Customer Feedback in Operations (Illustration is an example from Daido Life)
Customers

CustomerFeedback Council*2

Complaints, opinions,requests, appreciation, etc.

CallcenterWebsiteVarious customer surveys[Complaints/Consultation Web]

Idea
Post

Smile
Post

Informalmeetings
with customers[Voices of Appreciation]

CS Promotion Division

Operational departments
Fiduciary Duty Promotion Committee*1[ Deliberate across divisions, including the Sales Division, Policy Division, Internal Control Division ]Report and proposals《Examples of Reflecting Customer Feedback in Operations》

Index● Customer Information Meetings
Taiyo Life holds regular meetings with policyholders called the “Customer Information Meetings” in order to help them gain adeeper 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 2017, meetings were held at 132 venues in September. 1,325 customers attended, and Taiyo Life madepresentations on its management policy, results for fiscal 2016, “Taiyo’s GENKI Project,” Kaketsuke-Tai Service, and new products.
592 opinions were received from the participants concerning a broad range of its business operations. The feedback from policyholders was shared within the Group as valuable information and utilized to achieve improvements in various business practices.

Third-party
Opinion[Taiyo Life]Management
Control*1 Fiduciary Duty Promotion Committee
We established the Fiduciary Duty Promotion Committee to further promote customer-centric corporate activities raised in the basics of the corporation. In
addition to continuously reviewing all processes from insurance solicitation to payments from the perspective of customers, the Fiduciary Duty Promotion
Committee makes reports and proposals for improvements to the Board of Directors and the Executive Committee.
*2 Customer Feedback Council
The company has established the “Customer Feedback Council” in order to utilize of the insights of outside experts in sound business operations fromthe perspective of customers. The Customer Feedback Council monitors the situation with business operations related to improving customer service andreviews the adequacy and effectiveness of the content of deliberations by the Fiduciary Duty Promotion Committee.

Governance andInternal Control

Board of Directors/Executive Committee

Responsible
Institutional Investor

Improve operations
from the perspectiveof customers

BranchofficeOpinions that were given
by experts fromthe customers’ pointsof view

Social Activities

Gathering andanalyzing customer
feedback

Collection by employees

Surveys (tacit opinions)

Priority Areas(3) Global Environmental
Protection

Customer contact points

Priority Areas(2) Respect for Human
Rights● System to Reflect Customer Feedback in Operations
The Group’s three life insurance companies have set up dedicated departments and committees with external members incharge of customer satisfaction management. We developed a total system ensuring customer satisfaction at all stages of interaction with customers, from making contracts to payment of insurance claims and benefits, based upon a clearly stated policy forcustomer satisfaction and specific guidelines for the handling of customer complaints. All the feedback collected from customers is input into a centrally managed database and shared by the relevant units for the development and quality improvement of
products and services, as well as for the improvement of business practices.

Priority Areas(1) Providing Better
Products and Services● Customer Feedback Collected from Daily Sales Activities
The three life insurance companies collect a variety of customer feedback through daily sales activities to respond to the changing needs of society through the provision of better products and services. We have set up a number of points of contact withcustomers, such as sales representatives, sales agents, call centers (customer service centers), and the Internet to collect asmuch customer feedback as possible. In addition, we are implementing initiatives to more proactively check customer satisfaction, such as conducting regular and irregular questionnaires.

37

● Acquiring a Third-party Opinion on ISO 10002 Compliance
In March 2008, Taiyo Life declared the introduction of ISO 10002, an international standard for handling complaints as regards
quality management, customer satisfaction and guidelines for complaints handling in organizations, and since then has been committed to continually enhancing customer-oriented service and operations by utilizing customer feedback (including complaints).
In March 2018, following on from March 2017, we obtained a third-party opinion on ISO 10002 compliance that recognized ourcomplaint management system as complying with ISO 10002 and functioning effectively. We have been working to improve ourbusiness processes based on ISO 10002 and educate employees through training programs.
● Customer Complaints by Type
(Units: no. of complaints received; proportion: %)Type of feedback

FY2014FY2015FY2016FY2017

No. received%

No. received%

No. received%

No. received

%

2,637

34.3

1,918

31.1

1,784

28.2

1,448

30.6

New contracts
Payment of premiums
Conservation work

473

6.1

395

6.4

436

6.9

312

6.6

1,202

15.6

920

14.9

988

15.6

906

19.1

Insurance claims and benefits

1,681

21.9

1,258

20.4

1,641

25.9

950

20.1

Others

1,673

21.8

1,658

26.9

1,469

23.2

1,104

23.3

Total

7,666

100.0

6,149

100.0

6,318

100.0

4,720

100.0

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

[Daido Life]● Customer Surveys
Conducting surveys is useful in identifying hidden issues related
to Daido Life’s business that are difficult to uncover by passively
receiving customer opinions and requests.
Major examples include the new policy procedures survey filled

Customer Satisfaction Level(Corporate and Individual Business Owners)
Very satisfied

out by new policyholders after the completion of the contract proSatisfied

cedures, with a focus on the attitudes of sales representatives
and the understandability of application forms and other documents, as well as customer satisfaction surveys filled out by busi-

Fairly satisfied

ness owners/managers that inquire about the level of satisfaction
provided by our products, services and after-sale services.

We define “complaint” as an expression of dissatisfaction by acustomer regarding the company’s operations. Upon receiving

35.5%

31.9%

FY2013

30.0%

35.7%

41.4%

38.9%

FY2015FY2017

Satisfaction Level for Each Casecomplaints, we immediately respond in a sincere manner, set-

At the time of enrollment

After enrollment

At the time of payment

89.9%(+5.0pt)

85.2%(+7.4pt)

87.5%(+0.5pt)ting out to resolve such issues. At the same time we take thesecomplaints as valuable information to be used for improving our* The figures in the brackets is the comparison with fiscal 2015

business processes.
● Customer Complaints by Type

38

12.4%

9.4%

11.6%

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

● Response to Customer Complaints

Type of feedback

87.0%

80.8%

79.0%

(Units: no. of complaints received; proportion: %)FY2014FY2015FY2016FY2017

No. received%

No. received%

No. received%

No. received%

Purchase of life insurance policy

1,698

14.1

1,539

13.2

1,414

12.9

1,382

13.0

Payment of premiums

1,036

8.6

838

7.2

856

7.8

846

8.0

Procedures after making a contract

4,803

39.8

4,754

40.7

4,100

37.3

4,020

37.9

Payment of insurance claims and benefits

2,134

17.7

2,030

17.4

2,644

24.0

2,255

21.3

Other

2,412

20.0

2,517

21.6

1,985

18.0

2,094

19.8

Total

12,083100.0

11,678100.0

10,999100.0

10,597100.0

Top Message/
Organizational Profile[T&D Financial Life]

CSR Management● Customer Survey
T&D Financial Life conducts a customer satisfaction survey to proactively reflect customer feedback in customer service andoperational quality improvements. 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.

Easy tounderstand
57.5%

Polite andeasy tounderstand
60.5%

Polite and easy to understandSatisfactory support
Some difficult explanation
to understandUnpleasant response
Have never phoned them
OthersNo answer

Outline of survey
Methodology

60.5%
19.0%
1.4%
0.2%
14.0%
1.1%
3.8%

Survey period: The survey, together with documents forprocedures, was sent to customers whopurchased insurance policies through financial
institution agents and requested insurance
conservation procedures.
: January 17, 2018 to April 13, 2018
(Responses received by the end of April 27,
2018 were processed.)

No. of Surveys sent : 2,029
Valid responses: 622

Response rate

: 30.7%● Provision of Information on the Internet
T&D Financial Life discloses a summary of information regarding customer feedback, such as frequently made complaints, com-

Priority Areas(3) Global Environmental
Protection

Easy to understand
57.5%
Fairly easy to understand
33.4%
Some difficulties in understanding
6.7%
Hard to understand1.8%
No answer
0.6%

Satisfactory
support19.0%

Regarding application forms, 90.9% of respondents said that they were “Easy to understand”
or“ Fairly easy to understand.” Regarding themanner in which our Customer Service Center
staff handle calls, 79.5% of respondents reported
that they were “Polite and easy to understand”
or provided“ Satisfactory support.”

Priority Areas(2) Respect for Human
RightsFairlyeasy tounderstand
33.4%

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

Priority Areas(1) Providing Better
Products and Services

Q.
How did you feel about theapplication form you filled
out for the procedures?

● Customer Complaints by TypeType of feedback(Units: no. of complaints received; proportion: %)FY2014
No. received
243

FY2015%16.0

No. received
220

FY2016%19.0

No. received
152

FY2017%

No. received

11.5

159

%
13.0

Payment of premiums

65

4.3

50

4.3

61

4.6

75

6.2

Procedures after making a contract

534

35.2

385

33.3

441

33.4

481

39.5

Insurance claims and benefits

412

27.1

305

26.4

426

32.2

275

22.6

Others

264

17.4

197

17.0

242

18.3

229

18.8

Total

1,518

100.0

1,157

100.0

1,322

100.0

1,219

100.0

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

Responsible
Institutional Investor

New contracts

Social Activities

ments and requests, on its website.

Management
Control
Third-party
OpinionIndex
39

IV Priority Areas (2) Respect for Human Rights
1. Basic Concept

418-1

1–1 Basic Concept
In “3. Respect for Human Rights,” in the T&D Life Group CSR Charter, the Group clearly sets out its commitment to:• respect the human rights of all people, and make efforts to enlighten all its employees on human rights;• respect the individuality and diversity of all its employees, ensure a healthy and safe work environment, and develop its humanresources; and,• respect privacy, and strictly control and protect personal information.
We believe that supporting and showing respect for the protection of internationally declared human rights, and promoting thecreation of a comfortable working environment where employees are able to respond to the needs of society will lead to thegrowth of the company and the vitalization of society, and are important corporate responsibilities which the Company must fulfill.

2. Utilization and Development of Human Resources

103-2

103-3

404-2

2–1 Human Resources Development Policy
Since its foundation, the T&D Life Group has been promoting the nurturing of a corporate culture where diverse human resources
can feel job satisfaction and reach their potential. Under our Group policy, in which each affiliate aims to improve its corporate
value by leveraging the uniqueness and specialization of its respective business strategy, each of the Group’s affiliates formulates
its own education and training plan and strives to develop and enhance the skills of its employees.

2–2 Initiatives to Provide Opportunities for Growth
The three life insurance companies conduct education and training, primarily through OJT (on-the-job training), group training, andsupport for personal development. These companies encourage autonomous career development by each employee, by actively
helping them to acquire qualifications and offering a diverse curriculum, including correspondence education and e-learning.
In addition, systematic rotation is implemented to provide employees with a variety of business experience, allowing them to be
more capable of carrying out work from a broad, company-wide perspective. Young employees are assigned to different parts of theorganization and different job areas for a certain period after joining the company. By moving between the head office and branches,
as well as sales and administration, these employees work to acquire basic knowledge and hone their skills. Similarly, with regard
to management staff, employees who have experience as head office division managers are put in to positions such as branch general managers, while branch managerial staff are assigned to the head office, with the aim of improving their managerial capabilities.
Taiyo Life, Daido Life, T&D Financial Life
The three life insurance companies support employee career formation, by providing opportunities to actively pursue skill
development.
● In-house Recruiting
Under this system, employees can take up various challenges, such as application for dispatch to companies outside of theGroup, positions of their choice and MBA programs.
● Personnel Exchange within the Group
Personnel exchange is promoted among Group companies for facilitating the sharing of the well-developed skills and usefulknowhow possessed by each Group company.
Phase I (2008–2012): Temporary transfer or transfer to other Group company for 1 to 2 years• Number of participants 50 employees (47 men, 3 women)
Phase II (2013–): Short-term training program for a maximum period of 1 month was introduced• Number of participants in fiscal 2013 (including long-term transfer programs) 17 employees (3 men, 14 women)• Number of participants in fiscal 2014 28 employees (8 men, 20 women)• Number of participants in fiscal 2015 39 employees (18 men, 21 women)• Number of participants in fiscal 2016 (including long-term) 41 employees (21 men, 20 women)• Number of participants in fiscal 2017 (including long-term) 42 employees (15 men, 27 women)● Working Group Comprising Young and Mid-Career Employees from Group Companies
In fiscal 2011, we started the Working Group for the Active Participation of Women, an initiative to plan and propose groupwide measures to promote active participation of women. In fiscal 2016, this initiative was renamed the Working Group on
Work Style Reform, and comprises both men and women. In fiscal 2017, the group conducted surveys and research on thetheme of Balancing Childcare and Career, and proposed various childcare support measures. One of these proposals was toexpand the system for short working hours (eligible scope of children’s age has been raised to grade 6). The proposal was
put into practice in fiscal 2018, and the system is already being used by a number of employees.
40Top Message/
Organizational Profile● Overseas Job Assignments and Overseas MBA● Challenge Navi

Daido Life

103-2

103-3

The Group’s three life insurance companies have introduced a reemployment system for employees who are reaching the mandatory retirement age. Also, in order to promote work style reform, we are working to give older people the opportunity to actively
participate, and each Group company has introduced various systems according to its particular situation.
Also, Taiyo Life and Daido Life hold life planning seminars for employees before they reach the mandatory retirement age, to give

Third-party
OpinionDaido Life
Effective April 1, 2017, the system was revised to employ all applicants up to a maximum age 65.
To put in place a work environment in which employees can more easily achieve their life plans, Daido Life has introduced aHome Base system for personnel employed on a nationwide basis who are 55 or older that encourages assignment to positions at offices in the same location as their homes.

Management
Control

Taiyo LifeIn response to changes in lifestyles, on April 1, 2017, the company introduced a mandatory retirement age of 65 for administrative personnel, as well as a continuing employment system that allows persons to keep working up to the age of 70.
At the same time, the company abolished the mandatory retirement at the age of 57 for managerial personnel. It also introduced a system that allows for the promotion of employees up to the age of 65 to the position of manager, subject to company approval. Through such efforts, the company is developing an environment where people can approach work with acompetitive and high ambitious spirit regardless of age.

Governance andInternal Control

them an opportunity to think about the way they want to work and live in the future.

Responsible
Institutional Investor

2–3 Promoting the Active Participation of the Elderly

Social Activities【Received the Grand Prize (Minister of Health, Labour and Welfare Award) at the 2017 Good Career Company Awards】
Daido Life received the award in recognition of its efforts to support employees’ career formation; which include the visualization of individual careers through Challenge Navi as mentioned above, the scheme which enables employees to consult with senior staff in other divisions, and the detailed collection of various career information through individual interviews
which is used in personnel assignment and training.

Priority Areas(3) Global Environmental
Protection● Awards

Priority Areas(2) Respect for Human
RightsDaido Life
Challenge Navi is Daido Life’s in-house human resources development website. The past experience, strengths and special skills of employees are available through the website’s My Profile function on a company-wide basis. In
addition to offering a detailed picture of individual careers, this website haslaunched a system (D-Career) that enables employees to consult senior staff
in other divisions regarding their jobs.
The company has also introduced a talent management system, which identifies the various strengths, characteristics and career consciousness of employees through individual interviews with all employees conducted by managersof the human resource department. This information is centrally aggregated and analyzed, and used in personnel assignments
and training in order to provide opportunities where all employees can make the most of the individual capabilities.

Priority Areas(1) Providing Better
Products and Services

Daido Life
In order to nurture global talent through diverse experiences, Daido Life offers all employees the opportunity to build theircareers as the Career Challenge System through internships at overseas companies and MBA studies overseas.

CSR Management

Taiyo Life
Taiyo Life looking ahead to future overseas business strategies, we are dispatching young employees to a number of companies
for approximately three months in order to develop personnel capable of successfully working on a global level. In addition, it
dispatches a number of employees to the operational companies overseas to acquire high-level asset management knowledge.

Index
41

3. Diversity Promotion Initiatives

103-2

103-3

3–1 Employment of Persons with Disabilities
As of the end of March 2018, a total of 367 employees with disabilities, including 53 new recruits for fiscal 2017, worked at thethree life insurance companies, which account for 2.42% of the total number of employees.
We have put in place several measures designed to create a comfortable workplace for employees with disabilities. As a pre-hireinitiative, we encourage the attendance of a placement support worker at job interviews, so that job candidates can go throughthe screening process without worry. We also hold workplace tours for candidates to prevent assignment mismatches. After hiring, we strive to provide company-wide support, through measures such as preparing a comfortable working environment byintroducing specialized computers and other equipment, and taking commuting routes into consideration. In addition, job coaches
who specialize in support for employees with disabilities are dispatched to the company, and a placement support worker holds
interviews together with the employee and his or her supervisor, and offers advice.
We will continue working to create a workplace environment that encourages and supports persons with disabilities in working
comfortably, and to expand employment opportunities for persons with various disabilities.
● Employment of People with Disabilities at the Three Life Insurance Companies

Employment rate of people with disabilities (%)

FY2015FY2016FY2017

2.27

2.22

2.42

Daido LifeIn line with efforts to create a workplace where diverse human resources can play active roles, the company continues toprepare a safe and comfortable working environment for persons with disabilities. In addition to employing persons with disabilities at the head office and branches, in February 2018, the company established the ACT* administrative team which iscomposed of mentally and intellectually challenged employees.
Dedicated managers who have received advance training on basic knowledge regarding disabilities, as well as the necessary
considerations and methods of guidance, are assigned to ACT, which is mainly responsible for data entry and other operations entrusted by other divisions. Before assuming their positions, these dedicated managers receive training on knowledge
regarding various disabilities and methods of management and guidance, in order to ensure a comfortable working environment for employees with disabilities.
* ACT is both an acronym for Advance Challenged Team, and a reference to persons with disabilities acting, or taking part, in society.

3–2 Human Rights Education

412-2

The T&D Life Group holds human rights education sessions for all employees more than twice a year on various issues, suchas discrimination due to social class or disability, harassment and LGBT orientation, to deepen employees’ understanding of theimportance of respecting human rights.
Taiyo Life
With the aim of deepening an understanding of human rights issues and cultivating a spirit of respect for human rights, the company has created a Human
Rights Education Program, which holds courses for all employees on the topic
of human rights.
In fiscal 2017, the company held in-house study sessions for administrative personnel on various human rights issues, such as international human rights standards and harassment. Worksite study sessions for branch employees wereconducted by outside instructors and branch office managers.
Training was also held for persons in management positions on the themes
such as cultivation of a harassment-free workplace.

42

Top Message/
Organizational Profile
CSR Management

Daido LifeThe company holds workplace training on human rights awareness twice per year for all employees, with the aim of enhancing awareness of human rights.
In fiscal 2017, training was held on the topics of Preventing Verbal Sexual Harassment and Comfortable Working Environments
for Persons with Disabilities. Each worksite assembled to consider human rights in both the workplace and daily life, andengaged in a vigorous exchange of opinions.
In addition, in order to take measures against harassment, the company also held e-learning training, group training via teleconference, and DVD training for all managers, branch sales managers, and newly appointed managers.

Priority Areas(1) Providing Better
Products and Services
Priority Areas(2) Respect for Human
RightsT&D Financial LifeThe company holds human rights training to allow all employees to deepen their knowledge and understanding of humanrights, and to proactively confront human rights issues. This training also seeks to assist each and every employee in maintaining mental health, and to cultivate a healthy, harassment-free workplace environment by providing employees with a better understanding of mental health and harassment (sexual harassment and power harassment).
In fiscal 2017, the company held human rights training for all employees on topics such as responding to LGBT issues in theworkplace and harassment. Training on cultivating a harassment-free workplace environment was also conducted for all personnel promoted to management positions, as part of the training for newly appointed managers.

3–3 Initiatives to Support Active Participation of Women

Priority Areas(3) Global Environmental
Protection

The T&D Life Group has promoted efforts to create a corporate culture that diverse human resources will find engaging to workin and that enables them to reach their full potential. Particularly given that women represent the majority of the Group’s employees, enabling them to further reach their potential is an important driver of sustainable growth in corporate value, and the T&D
Life Group recognizes that their active participation is a crucial management priority. With this in mind, the Group’s three life insurance companies are working to revise their respective personnel and compensation systems, as well as introducing various support systems to enhance the work-life balance.
By fostering Group-wide collaboration to reduce total working hours and encourage male employees to take childcare leave, weSocial Activities

are promoting the creation of workplace environments where everybody is motivated to play an active role.
To steadily advance these measures to promote the active participation of female employees, the Group’s three life insurancecompanies formulated their action plans based on their respective business models.
● Action Plan: Promote Active Roles for Women at the Three Life Insurance Companies

Responsible
Institutional Investor

The T&D Life Group has disclosed action plans for promoting the active participation of women and targets forpromoting female employees to management positions. The ratio of female managers has been steadily increasing.
Action Plan

Targets set for promoting
female employees tomanagement positions(Achievement deadline)

Ratio of female
managers

Systematically cultivate
and promote motivatedand talented
female employees

Promote diverse work
styles and support
new challenges

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

More thanMore thanMore than(March 2021)(April 2020)(April 2019)

20%

15%

Governance andInternal Control[Initiatives]
Implement systematic cultivation andpromotion of female employees tomanagement positions
Enhance career development andwork-life balance support measures
Transform the mindset of managers

15%

Management
Control

Double the 7% level in 2013

Ratio of female managers(Total of the three companies)

14.5%

14.9%

15.8%

Third-party
Opinion

13.0%
11.7%

April 2015

April 2016

April 2017

April 2018

20
15
10 43

Index

April 2014

Taiyo Life
• Appointment of A Female Director
The company’s first female executive officer appointed in April 2017 has been appointed as a director in June 2018.
• Education for Managers
Management training is conducted when employees are promoted to management positions, as well as regularly thereafter, so that managers will be able to smoothly carry out their duties.
• Nurturing Candidates for Management Positions
The company systematically nurtures potential management personnel by providing group training in management skills
for outstanding mid-career employees across the country, regardless of job category or gender. Employees can alsoacquire a variety of work experience, through opportunities such as exchanges between Group companies.
• Preparing an Environment to Enable Flexible Work Styles
In June 2017, the company expanded its flextime system to include employees on short working hours. It is working tocreate an environment where employees whose time is limited by childcare or nursing care can choose more flexible work
styles and develop their careers.

Daido Life
• Expansion of Active Opportunities
Daido Life strives to support career formation of female staff and to raise awareness among management, including the
expansion of opportunities to promote active roles through challenging new roles or more important roles. Daido Life
newly appointed a female executive officer in April 2018.
• Career Challenge System and Training to Nurture Female Managers
In addition to various training programs to nurture female managers, the company provides opportunities for growth byenabling employees to gain a wide range of business experience, beyond the work they have previously engaged. These
include in-house internships that allow locally based employees who have few transfer opportunities to leave their workplace for short periods to try a different job, free-agent style applications for in-house jobs, and work assignments at outside companies.
• The “Challenge Women’s Workshop”
Daido Life created a four-month workshop attended only by female employees. Under the guidance of an outside instructor, participants worked on boosting their business skills (logical thinking and communication abilities), then used thoseskills in group study and research into efforts to promote the active participation of women.

T&D Financial Life
• Training to Support Women’s Active Participation
Group training is held regularly on topics such as Communicating with the People around You, Demonstrating Leadership,
and Guiding and Nurturing Subordinates and Juniors, with the aim of allowing female employees to envision the type ofleader they should become, and to acquire the skills necessary to do so.

【Ranked 8th in the Nikkei DUAL Survey of Companies that Facilitate Childcare by Working Couples in 2017】
Daido Life was ranked 8th out of 7,800 companies in the Survey of Companies that Facilitate Childcare by Working Couples
in 2017 conducted by the Nikkei DUAL website, which provides useful information for working mothers and fathers. Thishigh ranking recognizes the company’s efforts to promote work-life balance, including various support systems such as achildcare leave system that exceeds legal requirements, introduction of a home-based work system, and encouragement
to use paid leave.

44Top Message/
Organizational Profile

3–4 LGBT-friendly

CSR Management【Welcomed by the Group】
The T&D Life Group’s CSR Charter calls for “Respect for Human Rights,” and the Group is striving to develop a workplace environment where each employee can fully demonstrate their abilities. Regarding the LGBT community (a sexual minority) from the perspective of diversity, Group companies are advancing initiatives such as implementing training and establishing consultation desks.
In addition, from December 2016 to January 2017, the Group held seminars regarding LGBT issues for executives, department
panies by an outside lecturer, and attendees became more aware of the importance of engaging in LGBT initiatives as a company. In addition, working-level training sessions primarily targeting Group company human resources division managers andother human resources staff were held.
Daido LifeIn April 2018, Daido Life began treating same-sex partners as spouses under the company’s leave and benefit program.

【Customer-oriented】
The T&D Life Group’s three life insurance companies have also started to allow policyholders to designate same-sex partners as
beneficiaries of insurance benefits, just like for a spouse, by submitting documents showing that the two people are in a partner-

Example of Daido Life
Daido Life is expanding the areas in which same-sex partners living together are accorded the same treatment as spouses,
including procedures for new policies, payments, and policy changes.
Response
Possible to designate as beneficiary for death benefits
Possible to sign on behalf of a partner for procedures such as new policies,
payments when the partner is unable to do so for him/herself
Possible to designate as a preregistered proxy

November 2015
Social Activities

Possible to designate as registered family in the Family Registration Program

Date

Priority Areas(3) Global Environmental
Protection

ship, such as a partnership certificate issued by a local government.

Priority Areas(2) Respect for Human
Rights<Major Applicable Systems>• Leave, short working hours • Recreation facilities • Family transfer system • Company housing/transfer allowance• Daido Life Mutual Aid Fund (congratulations and condolence allowance system)

Priority Areas(1) Providing Better
Products and Services

general managers, and managerial staff. Approximately 1,700 people attended a lecture on the topic of LGBT compliance in com-

December 2016
April 2018

Responsible
Institutional Investor
Governance andInternal Control
Management
Control
Third-party
OpinionIndex
45

4. Worker-friendly Work Environment
4–1 Work-Life Balance Initiatives

401-1

103-2

103-3

401-3

405-1

The T&D Life Group companies are strengthening various initiatives, including enhancement of childcare leave and other systems, as well as reduction of total working hours. Accordingly, employees can make full use of their skills and increase their performance at work, while fulfilling their responsibilities at home, such as housework, childcare, and nursing care. Furthermore, we
believe that in order to promote the active participation of women, it is essential to create a workplace where women can continue working long term, while experiencing life events such as marriage and childbirth. As part of these efforts, the Group as awhole is striving to realize work-life balance by encouraging men to participate in childrearing, and the percentage of male employees taking childcare leave has reached 100% at Taiyo Life and Daido Life.
Taiyo LifeThe company is continuing its efforts to reduce total working hours and encourage the use of paid leave. At the same time,
it is making a flexible work system available. This allows employees to take half days for child care giving or nursing-careleave, and expands eligibility for the flextime system to include employees on short working hours. In addition, because thenumber of employees who face the necessity of taking nursing-care leave is expected to increase along with the progressof demographic aging, the company has developed a nursing-care support system which includes the care leave of up to 3
years that exceeds laws and ordinances.

Daido Life
Efforts are being made that are aimed at reducing working hours, such as “Challenge 19,” (setting a target of 7 pm for leaving the office, with the implementation of automatic computer shut down). In addition, the company is promoting work
styles that allow employees to balance their job and life at home, such as a campaign to slim down work. In 2017, the company received the Minister for Internal Affairs and Communications Award as one of the Top 100 Telework Pioneers for initiatives such as its home-based work system.

T&D Financial LifeThe company continues to implement measures to reduce overtime work hours, such as introducing a short working hoursystem, encouraging use of the flextime system, establishing a “No Overtime Day” and a “Go Home Early Day,” and automatically shutting down computers. Though these efforts, the company seeks to create a workplace where employees canachieve work-life balance, with the aim of fostering a corporate culture where employees feel job satisfaction.
● Acquisition of Maternity and Childcare Leave
FY2014FY2015FY2016FY2017

No. of employees taking maternity leave

234

290

328

333

Number of employees eligible to take childcare leave

410

432

462

455

Men

176

142

134

122

Women

234

290

328

333

366

406

450

444

Men

153

140

133

121

Women

213

266

317

323

No. of employees taking childcare leave* The acquisition of maternity and childcare leave at the three life insurance companies.
* The number of administrative personnel at the three life insurance companies who have returned to work after taking childcare leave is as follows.
Fiscal 2014 220 (97.8%) (Men 143 (100%), Women 77 (93.9%))
Fiscal 2015 230 (97.5%) (Men 142 (99.3%), Women 88 (94.6%))
Fiscal 2016 221 (98.7%) (Men 129 (100%), Women 92 (96.8%))
Fiscal 2017 196 (98.0%) (Men 126 (100%), Women 70 (94.6%))● Acquisition of Nursing-Care Leave
No. of employees taking nursing care leave

46

FY2014FY2015FY2016FY2017
20

6

8

12

Men

0

0

0

1

Women

6

8

12

19

Top Message/
Organizational Profile● Number of Administrative Personnel Taking Paid Leave
FY2014FY2015FY2016FY2017

11.0

11.8

12.4

13.2

CSR Management

Average number of paid leave days taken* Number of administrative personnel of the three life insurance companies taking paid leave● Number of Employees Hired/Number of Employee Turnover
Number hired
Number of administrative
personnel hired /turnover

Men

234

Under 30
30-50

4.10%

242

170

2.98%

30

0.53%

Fiscal 2015

Fiscal 2016

Fiscal 2017

Numberofpersons

Percentage
compared tonumber of
employees
at fiscal
year end

Numberofpersons

Turnoverrate

Numberofpersons

Turnoverrate

Numberofpersons

Turnover
rate

4.17%

242

4.22%

334

5.85%

371

6.40%

271

4.72%

185

3.19%

186

3.24%

54

6.86%

69

9.73%

67

9.82%

22

0.38%

36

0.63%

116

3.10%

88

2.39%

72

2.01%

Over 50

34

0.60%

35

0.60%

20

0.35%

164

13.96%

214

15.21%

132

8.97%

Total

111

1.94%

119

2.05%

116

2.02%

194

5.88%

154

4.74%

125

3.88%

Under 30

79

1.38%

83

1.43%

84

1.46%

20

5.46%

25

7.44%

20

6.08%

30-50

6

0.11%

8

0.14%

17

0.30%

43

1.98%

40

1.89%

32

1.56%

Over 50

26

0.46%

28

0.48%

15

0.26%

131

17.17%

89

11.10%

73

8.65%

Total

123

2.15%

123

2.12%

126

2.20%

140

5.81%

217

8.52%

146

5.80%

Under 30

91

1.59%

102

1.76%

102

1.78%

34

8.08%

44

11.80%

47

13.31%

30-50

24

0.42%

14

0.24%

19

0.33%

73

4.63%

48

3.06%

40

2.60%

Over 50

8

0.14%

7

0.12%

5

0.09%

33

8.01%

125

20.66%

59

9.41%* The number of administrative personnel hired and leaving employment at the three life insurance companies. All percentages are based on the number of
employees at the end of fiscal 2017.
* The number of persons leaving employment includes those who have reached mandatory retirement age, those who have left to assume posts as officers, and those who have died.
* Over 50 includes Fixed-term contract (shokutaku) employees.
* Customer service staff has been included in the number of administrative personnel since fiscal 2016, thus the total number hired has increased by 34 people.

み

す

サ

ポー

ト して いますThird-party
Opinionまてト して い

子育

ポー

ん

ん

て
子育

サ

Management
Control

チナくプラる

Governance andInternal Controlチ
プラ ナくるみ

Responsible
Institutional Investor

T&D Life Group companies have been certified as being companies that support the raising of children

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

Priority Areas(3) Global Environmental
Protection

Women

Total

Numberofpersons

Percentage
compared tonumber of
employees
at fiscal
year end

Number TurnoverFiscal 2017

Priority Areas(2) Respect for Human
RightsTotal(men andwomen)

Numberofpersons

Percentage
compared tonumber of
employees
at fiscal
year end

Fiscal 2016

Priority Areas(1) Providing Better
Products and Services

Fiscal 2015

Index
47

● Workforce Composition【Information Regarding Employees and Other Workers】
Category

Social insurance

Welfare system

Paid leave

SalaryAdministrative personnel
In-house sales representatives
Contract employees

○
○
○

○
△
△

○
○
○

Fixed
Fixed + proportionate
Fixed

Fixed-term contract

○

△

○

Fixed

Part-time

○

△

○

Fixed

Employment type/ contract
Full-time,indefinite-term
Full-time,
fixed-termPart-time,
fixed-term* Exceptions are marked with a △.

【Employee Composition by Age Group】
Number of employees

Total(men and women)

Men

Women

Number of employees
March 31, 2016

March 31, 2017

March 31, 2018

18,409
2,214
9,162
7,033
3,622
382
2,272
968
14,787
1,832
6,890
6,065

18,543
2,322
9,087
7,134
3,564
353
2,209
1,002
14,979
1,969
6,878
6,132

18,394
2,442
8,871
7,081
3,539
347
2,146
1,046
14,855
2,095
6,725
6,035

Total
Under 30
30-50Over 50
Total
Under 30
30-50Over 50
Total
Under 30
30-50Over 50* Number of employees at the three life insurance companies (including in-house sales representatives)【Officer Composition by Age Group】(as of July , 2018)
Men
Outside officers
Women
Outside officers

Under 30

30-50Over 50

Total

0
0
0
0

3
2
0
0

68
12
4
2

71
14
4
2

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

4–2 Initiatives Reflecting Employee Feedback
The 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 views from employees as reference information for management, which include opinions about the current personnel system and its operation, as well as employee satisfaction, a critical element leading to greater customer satisfaction.
【Employee Awareness Surveys】
Daido LifeThe company regularly conducts an employee awareness surveys to clarify conditions and problems regarding jobs, workplaces, supervisors, the company, and other matters, with the aim of utilizing the results in future human resources strategies for creating a positive cycle of improving employee satisfaction and enhancing corporate competitiveness.
This survey, which originally included only administrative personnel, was expanded in fiscal 2017 to include contract employees and re-employed personnel, with a view toward becoming a company where diverse human resources can play evenmore active roles.

48

Top Message/
Organizational Profile

4–3 CSR Questionnaires for Employees

CSR Management

T&D Holdings attaches importance to communication within the Group, and seeks to grow together with every employee, eachof whom it sees as an important stakeholder, in the course of fulfilling the Group’s public mission and social responsibilities.
Within the Group, the T&D Life Group’s CR Report serves as a mirror that reflects the Group’s situation. Therefore, the report isput to good use in improving our awareness about CSR. In addition, a questionnaire of Group executives and employees was conducted after they had read the report, with the aim of enhancing the Group’s CSR initiatives.

Priority Areas(1) Providing Better
Products and Services【Questionnaire respondents】
T&D Life Group corporate officers and employees* Questionnaires are completed anonymously.
● About the Entire Report《Commendable sections》① Providing Better Products and Services................... 39.0%② Global Environmental Protection.............................. 15.7%

Priority Areas(2) Respect for Human
Rights③ Respect for Human Rights......................................... 9.7%
④ Organizational Profile................................................. 9.4%
⑤ T&D Life Group CSR Philosophy................................ 7.4%
⑥ Responsible Institutional Investor.............................. 3.1%
⑦ Others...................................................................... 12.5%《Comments and requests received》
Understanding of the Group’s CSR initiatives has improved further. Group executives and employees would like to see more
complete reporting on matters such as overall Group management (business overview and future vision of Group companies),soundness of Group management (compliance, risk management), economic aspects (e.g., financial results, ratings, explanationof business strategies), and environmental initiatives (e.g., forest conservation, purchase of environmentally friendly products).
We will consider enhancing content in these areas.
《How we responded to their opinions and requests》

Priority Areas(3) Global Environmental
Protection

The report was roughly the same as that of the previous year, in terms of comprehensibility and amount of information.

Social Activities

To further enhance CSR awareness among corporate officers and employees, CR Report 2018 has been created to make theGroup’s approach to CSR and its initiatives easier to understand, with key editorial policies including “present CSR in the report
so that it feels like a more familiar, everyday activity” and “make the report easier to read.”

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103-3

5–1 Health and Productivity Management Initiatives (1)T&D Life Group companies aim to realize workplaces where all employees can work enthusiastically with a sound mind and body

Responsible
Institutional Investor

5. Health Promotion for Employees

under the principles of health and productivity management.
Industry’s Certified Health and Productivity Management Organization Recognition Program for the second consecutive year. Thisis established by the Ministry with the aim of disseminating Health and Productivity Management that encourages organizations
to engage in initiatives to promote the health of their employees.

Management
Control
Third-party
OpinionTaiyo LifeThe company promotes Taiyo’s GENKI Project, an initiative aimed at energizing and promoting the health of employees, customers and society. This project provides various forms of support to encourage employees to be healthy, with the aim ofpreventing lifestyle diseases. In addition to conducting in-house anti-smoking campaigns, the company also cooperates with
Kaminoyama City in Yamagata Prefecture to offer Kurort Health Walking and Smart Life Stay, accommodation packages thatincorporate the government’s specified health guidance, through the Kaminoyama Onsen Kurort (health resorts) Program.
The company’s health and productivity management initiatives have also included an increase in the subsidy for cancer screening since 2017, and MCI screening is performed along with regular health checkups to diagnose the risk of future dementia.

Governance andInternal Control

Taiyo Life and Daido Life were among the “White 500” organizations recognized under the Ministry of Economy, Trade and

Index
49

Daido LifeThe company introduced the KENCO SUPPORT PROGRAM for executives and employees in an effort to promote employee
health and improve health literacy. The program provides wearable devices that measure personal status during everyday
activities, such as heart rate and number of steps taken, and organizes talks on the company-wide non-smoking policy andother health topics. The company is strengthening its existing efforts to reduce working hours, prevent disease, and promotemental health. In addition, by expanding these initiatives on a company-wide basis, under the title, “DAIDO KOKO-KARA,”
the company fosters a corporate culture as a company that practices health and productivity management.

T&D Financial Life
T&D Financial Life has implemented an in-house non-smoking policy and subsidizes the costs of engaging in sports throughin-house club and other activities. The aim is to promote employee health. The company carries out a variety of initiatives toimprove employee health, including subsidizing the cost of physical examinations for executives and employees aged 30 andover as a disease-prevention measure.

【Certified Health and Productivity Management Organization – White 500】
Both Taiyo Life and Daido Life were recognized, for a second consecutive year, as CertifiedHealth and Productivity Management Organizations (White 500) in the large enterprise category
under the Ministry of Economy, Trade and Industry’s (METI) Certified Health and Productivity
Management Organization Recognition Program, which METI established with the aim of honoring organizations that engage in initiatives to improve the health of their employees.
The two initiatives of “Taiyo’s GENKI Project” at Taiyo Life and “DAIDO KOKO-KARA” at Daido
Life are being carried out to improve the health of employees, and both aim to realize workplaces
where all employees can be both physically and mentally healthy and work in a spirited manner.

5–2 Health and Productivity Management Initiatives (2)● Initiatives by the Human Resources Department
The T&D Life Group has a clinic at its head office, and promotes the health of its employees through periodic health committee
meetings at each branch office in collaboration with industry physicians and the labor union. The Group companies also take careof the mental health of their employees and, by contracting external physicians, provide a system for consultation and medical
service that employees can utilize free from anxiety.
● Stress Check Program
All employees at T&D Life Group companies were invited to undergo a stress check as part of the program’s goal of preventing
mental health disorders. The Group encourages self-care among its employees, and has also put in place a system for employees
under particularly high stress to receive in-person advice from a physician, and when necessary, to introduce such employees tospecialists the Group has contracted with on a part-time basis. Each company also conducts group analysis, which is beneficial
in improving the workplace environment.
● In-House Non-Smoking Initiatives
In the interests of strengthening measures to prevent second-hand smoke and promoting mental and physical health, in July
2018, the T&D Life Group implemented an in-house non-smoking policy (eliminating smoking areas on company premises andprohibiting smoking during work hours) at all Group companies.
● Health Insurance Association
The three life insurance companies have their own independent health insurance association, which work to prevent lifestyle diseases and otherwise promote the health of association members. In addition to covering medical costs, such as due to illness or
injury in members and their dependents, the societies conduct campaigns to raise awareness regarding the use of health insurance, subsidize the cost of health check-ups including annual physical examinations, and promote cancer screening. Since fiscal
2008, the societies have also carried out specified medical check-ups and healthcare guidance aimed at preventing lifestyle diseases. In fiscal 2015, the health insurance societies began activities such as providing health guidance to insured members as partof their Data Health Plans. A Data Health Plan is an efficient and effective approach to health maintenance based on the PDCA
cycle and analysis of data such as medical information (receipts for health insurance claims) and information about health examination results.

50

Priority Areas (3) Global Environmental Protection

1. Basic Concept

103-2

103-3

Top Message/
Organizational ProfileV

CSR Management

1–1 Basic Concept
The T&D Life Group formulated the T&D Life Group Environmental Policy* to clarify the Group’s stance on the environment andto publicize the policy among executives and employees and has promoted various activities to reduce our environmental impacts
based on the policy. The T&D Life Group has announced that its policy is to carry out business activities with full awareness of theimportance of environmental concerns and will give sufficient consideration to global environmental protection. In addition, based
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
product brochures and policy documents.
* The T&D Life Group Environmental Policy is available at http://www.td-holdings.co.jp/en/csr/csr-policy/environment.html

103-2

103-3

2–1 Promotion Framework (Environmental Management)
T&D Holdings
External institutions

Priority Areas(3) Global Environmental
Protection

Board of Directors
Internal control evaluation
Confirm accuracy of data

Group CSR Committee*

1

Priority Areas(2) Respect for Human
Rights

2. Promotion Framework

Priority Areas(1) Providing Better
Products and Serviceson the above environmental policy, the Group has set out its Green Purchasing Standards and Detailed Rules and gives priority

Group Secretariat*2

Social Activities

Group companies
Company A Secretariat*2

Company B Secretariat*2

Company C Secretariat*2

Departments

Departments

Departments

Departments

Departments

Responsible
Institutional Investor

Departments*1 The Group CSR Committee is chaired by the Representative Director and President, and vice-chaired by the Director andSenior Managing Executive Officer (Executive Officer in charge of CSR)
*2 Secretariat = Group CSR Committee Secretariat

301-1

302-1

302-3

303-1

303-3

305-1

305-2

305-3

306-2

3–1 Environmental Initiatives

Governance andInternal Control

3. Environmental Impact-reduction Initiatives● Reduction of CO2 Emissions
and are taking actions to cut our energy consumption.
● Power-saving Efforts
ers at 28°C) and a “Warm Biz” campaign from November to March (setting a room temperature at 20°C). In addition, as a power-saving measure to prevent global warming, the Group turns off or reduces the lighting in offices, meeting rooms, hallways andother areas when they are not in use.

Third-party
OpinionEach year the T&D Life Group participates in a “Cool Biz” campaign from May to September (setting thermostats of air condition-

Management
Control

As more than 90% of the CO2 emissions derive from electricity use at the T&D Life Group, we have set targets for electricity use

Index
51

● “Lights Down” Campaign
As an initiative to raise the environmental awareness of each of the Group’s executives and employees, the T&D Life Group has
been conducting a campaign in which it calls for a simultaneous switch-off of all the lights in offices twice a year. In fiscal 2017,
this initiative was conducted in July and December. This initiative is being implemented in support of the “Reduce CO2: ‘Lights
Down’ Campaign” initiated by the Ministry of the Environment to address for lit up facilities and individual homes to turn off lights
in order to help combat global warming.
● Efforts for Achieving Group-wide Targets
The T&D Life Group has set Group-wide targets related to environmental protection, and is working to achieve these targets inthe course of its daily business activities.
The Group’s three targets are to reduce electricity consumption, reduce office paper consumption and improve the green purchasing ratio.
《Electricity Consumption》Targets and Results Page 54
In addition to the power-saving activities, we implement a multitude of measures to reduce electricity consumption. These efforts
range from introducing a power demand monitoring system for controlling peaktime 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 and turn off
printers and multifunction machines when leaving offices.
《Office Paper Consumption》Targets and Results Page 54
We are striving to reduce the paper consumption in offices by promoting paperless meetings, two-sided and 2-in-1 printing, test
printing and confirmations before printing a large quantity and rigorously insisting on printing only after confirming printing settings.
《Green Purchasing Ratio》Targets and Results Page 54
When procuring office supplies and stationery, we promote green purchasing by giving priority to products that are compliant
with the Act on Promoting Green Purchasing and to Eco Mark products. In addition to establishing Green Purchasing Standards
and working to prioritize purchasing of products that meet those standards, initiatives include setting up a system that requires
approval when ordering office supplies online that are not environmentally compliant.
● Promotion of Paperless Operations
At the T&D Holdings headquarters in Nihombashi, Tokyo, the conference room has been fitted with OA equipment to allow paperless meetings of the Board of Directors and the Executive Committee. The Company is working to promote a shift to a paperlessformat for other meetings as well, by distributing mobile computers, installing wireless LANs, and providing displays on meeting room tables.
● Green Procurement Initiatives (Total Costs and Quantities of Procurement Intended for Environmental Protection)
In addition to green purchasing initiatives, which mainly target office supplies and other consumables, Green Procurement
Standards that reduce environmental impact have been established for the printing of product brochures, policy documents andriders; procurement of lighting, air conditioning and other equipment for real estate; and for system equipment and office automation equipment. The Group gives priority to procurement of items that meet these standards. The results of these efforts topromote environmentally friendly procurement are not only collated in terms of amounts spent and quantities, but specific measures are also studied, shared among the Group companies and used to benefit environmental protection initiatives.
《Green Procurement Results》
Portion known to apply/ not apply to standard, in figures
Standard applicableStandard non-applicablePortion for which applicability/
non-applicability is unknown
Quantity or
number ofordersTotalnumberTotal amount(million yen)

0.2

1,340

424

490

0.4

1,252

336

337

0.6

1,158

404

266

24,3981,441

NumberAmount(million yen)

FY2015

236

320

621

103

483

FY2016

220

242

542

94

FY2017

271

314

550

89

NumberAmount(million yen)Amount(million yen)

Total

Printing of product brochures, riders

System equipment and office automation equipment
FY20155,373

476

18,797699

228

FY2016

4,623

345

16,354

359

13

10

20,990714

FY2017

3,125

116

9,433

283

31

0.9

12,589401

Real estate equipment
FY2015

12

986

0

0

5,271

5,097

5,283

6,082

FY2016

29

1,696

0

0

4,500

4,419

4,529

6,115

FY2017

36

1,265

0

0

5,146

2,876

5,182

4,142

The total of T&D Holdings, Taiyo Life, Daido Life, T&D Financial Life, and T&D Asset Management.
52

Top Message/
Organizational Profile

3–2 Environmental Performance Data

CSR Management

The T&D Life Group discloses its measurements of CO2 emissions, electricity consumption, water consumption, and waste generated and recycling rate. (The applicable scope and calculation methods of this data are described on page 55 in “3–4 Scope andCalculation Methods of Environmental Performance Data and Group-wide Targets and Results.”)● CO2 Emissions★ indicates limited verification has been carried out by a third party. (page 56 “3–5 Independent Assurance Report”)

FY2014FY2015FY2016

Scope 1 (Direct emissions)

2,358 t2,315 t1,997 t1,893 tScope 2 (Indirect emissions)

55,677 t

55,344 t

49,393 t*

48,453 t

Scope 3 (Others)

FY2017★

6,412 t6,461 t6,477 t3,751 t3,772 t3,836 t3,853 tCategory 5 (Waste generated by business activities)

82 t

82 t

49 t

56 t

Category 6 (Business trips)
Total

2,524 t2,558 t2,576 t2,568 t64,392 t

64,071 t

57,851 t*

56,823 t● Electricity Consumption★ indicates limited verification has been carried out by a third party. (page 56 “3–5 Independent Assurance Report”)

Electricity consumption
Total floor space (including portion for tenant use)

(m2)

FY2014FY2015FY2016FY2017

95,866 MWh

96,348 MWh

97,705 MWh

96,486 MWh★

867,125

845,490875,271878,751● Water Consumption★ indicates limited verification has been carried out by a third party. (page 56 “3–5 Independent Assurance Report”)

Water consumption (Utility + reclaimed water)
Reclaimed water usage rate

FY2014FY2015FY2016FY2017★

71,100 m3

64,300 m3

35,000 m3

31,800 m3

23.7%

18.2%

2.4%

2.5%

Data coverage: fraction of Group employees included in the target employee set (45.80%)

Priority Areas(3) Global Environmental
Protection

Data coverage: fraction of Group employees included in the target employee set (98.05%)

Priority Areas(2) Respect for Human
RightsData coverage: fraction of Group employees included in the target employee set (98.05%)* Taiyo Life Insurance Company, our directly owned subsidiary, changed its electric power provider and amended its CO2 coefficient. Accordingly, the indirect emissions (Scope2) have been decreased to 6,138t in fiscal 2016.

Priority Areas(1) Providing Better
Products and Services

6,357 tCategory 3 (Fuel- and energy-related activities)

Social Activities● Waste Generated & Recycling Rate
★ indicates limited verification has been carried out by a third party. (page 56 “3–5 Independent Assurance Report”)① Paper waste

FY2014FY2015FY2016

Total amount

549 t

554 t

369 t

421 t

Recycling rate

78.2%

85.4%

79.0%

80.7%

② Non-paper waste

FY2014FY2015FY2016FY2017★

FY2017★

193 t

183 t

137 t

102 t

66.7%

68.2%

70.9%

64.5%

Data coverage: fraction of Group employees included in the target employee set (45.80%)

Responsible
Institutional Investor

Total amount
Recycling rate

Governance andInternal Control
Management
Control
Third-party
OpinionIndex
53

3–3 Group-wide Targets and Results
The T&D Life Group has set Group-wide targets for electricity consumption, office paper consumption, and the green purchasing ratio, and is working to mitigate its environmental impact. (The applicable scope and calculation methods of this data aredescribed on page 55 in “3–4 Scope and Calculation Methods of Environmental Performance Data and Group-wide Targets andResults.”)●Electricity Consumption
Baseline: FY2009 value (Electricity consumption per unit of floor space) (119 kWh/m2)
Target:Five-year average of FY2013 to FY2017 at least 10% below baseline value.
★ indicates limited verification has been carried out by a third party. (page 56 “3–5 Independent Assurance Report”)

Baseline

FY2013

FY2014FY2015FY2016*FY2017*

Total floor space

72,163,000kWh606,000 m2

57,873,000
kWh583,000 m2

56,340,000
kWh578,000 m2

56,573,000kWh605,000 m2

58,508,000
kWh589,000 m2

58,733,000kWh★
610,000 m2

Per unit of floor space

119 kWh/m2

99 kWh/m2

97 kWh/m2

93 kWh/m2

99 kWh/m2

96 kWh/m2

—

83.3%

81.9%

78.5%

83.4%

Electricity
consumption

Compared tobaseline

Progress made(Average value of
FY2013–FY2017)57,605,000
kWh593,000 m2

97 kWh/m2
81.6%
80.9% (18.4% reduction fromthe baseline value)

The average floor space of the fiscal year shall be used in cases where the total floor space changes during the year.
* Some figures for the previous year adjusted to reflect additional values.
Data coverage: fraction of Group employees included in the target employee set (98.05%)

New target of electricity consumption (FY2018 to FY2027)
Baseline:

FY2016 value (electricity consumption per unit of floor space)

Target:At least 10% below baseline value in FY2027

Coverage: Buildings rented or used by the Group companies. Tenant usage volume is included for the owned buildings and excluded for the rented buildings.
* The reduction target is based on the premise that the CO2 reduction target (emissions coefficient) of the Federation of Electric Power Companies
of Japan is achieved. It is equivalent to the reduction target (services/commercial buildings sectors) based on the scientific ground, combined withthe relevant portion.

● Office Paper Consumption
Baseline: Five-year average from FY2009 to FY2013 (183.6 t)
Target:Cut five-year average from FY2014 to FY2018 by 9% compared to the baseline value.
★ indicates limited verification has been carried out by a third party. (page 56 “3–5 Independent Assurance Report”)

FY2013

FY2014FY2015FY2016FY2017★

Progress made (Average value of FY2014–FY2017)163.2 t160.2 t151.8 t123.1 t127.2 t76.6% (23.4% reduction from the baseline value)

Total amount of office paper purchased.
Data coverage: fraction of Group employees included in the target employee set (85.75%)● Green Purchasing Ratio
Target:Keep the green purchasing ratio for office stationery and supplies at a minimum of 80%.
FY2015FY2016FY2017

95.9%

96.0%

95.7% (Target exceeded by 15.9%)

Applies to purchases through online purchasing systems.
Data coverage: fraction of Group employees included in the target employee set (85.75%)

54

Top Message/
Organizational Profile

3–4 Scope and Calculation Methods of Environmental Performance Data and Group-wide Targets and Results

T&D Holdings
Taiyo Life
Daido Life
T&D Financial Life
T&D Asset Management
T&D Information Systems

Category

Note: The data for 2013–2015 includes the data for the Shiodome Shiba-Rikyu Building (formerly the head office).

● Calculation Methods of Environmental Performance Data and Group-wide Targets and Results
Disclosure item
Environmental performance data
Scope 1 (Direct emissions)Group-wide

Scope 3(Others)

Total
Electricity consumption

Group-wide
Waste generated
Recycling rate

Calculated by multiplying the number of Group personnel at the end of the fiscal
year by the predetermined coefficient.
The total emissions from the sum of Scope 1 (Direct emissions), Scope 2 (Indirectemissions), and Scope 3 (Others).
The annual amount of office-use electricity purchased from each energy-supplying
company is calculated in accordance with the law on the rationalization of energy
consumption.
The reportable item according to the environmental reporting guidelines of the
Ministry of the Environment comprises the amount used on the invoices received
from the water supply authorities.
Measured based on the Waste Disposal & Public Cleansing Law and other laws concerned with waste disposal and cleaning.
Calculated according to the invoices received from waste disposal companies.
The recycled amount is calculated according to the invoices received from waste
disposal companies, and the recycling rate is calculated by dividing the recycled
amount by the waste generated.

Group-wide targets and results

Office paper use

The calculation excludes the amount used by tenants of the Group’s buildings, andis calculated using the annual amount of office-use electricity purchased in accordance with the relevant energy-saving laws.
A reportable item according to the environmental reporting guidelines of the Ministryof the Environment, and is calculated from the purchasing system data.

Index

Electricity consumption

Third-party
OpinionWaste generated &recycling rate

Calculated by multiplying the waste generated by the predetermined coefficient.

Management
Control

Water consumption

The figures were calculated by multiplying the measured input of electric power,
steam, and hot and cold water by the predetermined coefficient.

Governance andInternal Control

Category 3(Fuel- and energyrelated activities)
Category 5(Waste generated
by business activities)
Category 6(Business trips)

Responsible
Institutional Investor

CO2emissions

The figures were calculated by multiplying the measured energy input by the predetermined coefficient in accordance with the Greenhouse Gas Emission Volume
Calculation, Reporting, and Disclosing System.
(The measured energy input comprises the measured gas, heavy oil, and kerosene.)
As above. (The measured energy input comprises the measured electric power,
steam, and hot and cold water.)
Basic Guidelines Ver. 2.2 regarding the measurement of greenhouse gas emissions
generated by the supply chain.
They are measured on the basis of directives from the Ministry of the Environment
and the Ministry of Economy, Trade and Industry.

Social Activities

Scope 2 (Indirect emissions)

Calculation method

Priority Areas(3) Global Environmental
Protection

Tokyo Nihombashi Tower
Daido Life Osaka Head Office Building
Taiyo Life Urawa Building
Hamamatsucho Building
Mita Bellju Building

Environmental performance data
Water consumption/Waste generated & recycling rate
Water consumption and waste generation by the T&D Life Group
Water consumption and waste generation by the T&D Life Group
Water consumption and waste generation by the T&D Life Group
Water consumption and waste generation by the T&D Life Group
Water consumption and waste generation by the T&D Life Group

Priority Areas(2) Respect for Human
RightsEach business site: Refers to the head office, administrative centers, branches and sales offices (including sites occupied as tenants).
* From fiscal 2015, scope for calculating electricity usage was expanded from each site in owned buildings to owned buildings and buildings occupied as tenants.

Priority Areas(1) Providing Better
Products and Services

Environmental performance data
Group-wide targets and results
Electricity consumption
CO2 emissions
Office paper consumption
Electricity consumption
Green purchasing ratio
Each business site
Each business site
Each business site
Each business site
Each business site + own building
Each business site(excluding sales offices(tenant lease)and branch offices)
Each business site
Each business site + own building
Each business site*(excluding sales offices(tenant lease)and branch offices)
Each business site
Each business site
Each business site
Each business site
Each business site
Each business site
Each business site——

Category

CSR Management● Scope of Environmental Performance Data and Group-wide Targets and Results

55

3–5 Independent Assurance Report102-56

The T&D Life Group obtained third-party assurance from Ernst & Young ShinNihon LLC for fiscal 2017 data presented in section “3–2 Environmental Performance Data” on page 53 and section “3–3 Group-wide Targets and Results” on page 54 in accordance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised) and 3410 (International Auditing andAssurance Standards Board).

56

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Top Message/
Organizational Profile

4. Forest Conservation Activities

CSR Management

4–1 Forest Conservation Activities Taiyo Life

Social Activities“Taiyo Seimei Kutsuki no Mori”(Kutsuki Forest of Taiyo Life) (Shiga Prefecture)
November 2007
Approx. 12.7 ha
81 t (Estimate by Takashima City)

Priority Areas(3) Global Environmental
Protection

Date of Establishment
Area
CO2 Absorption“Taiyo Seimei no Mori”(the Forests of Taiyo Life) (Tochigi Prefecture)
March 2006
Approx. 4.8 ha
19 t (Estimate by the Forestry Agency)

Priority Areas(2) Respect for Human
RightsName of Forest

Priority Areas(1) Providing Better
Products and Services● Forest Conservation 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 has established “Taiyo Seimei no Mori” (the Forests of Taiyo Life) in
Nasushiobara (Tochigi Prefecture) and Takashima (Shiga Prefecture). “Taiyo Seimeino Mori” (the Forests of Taiyo Life) was established in March 2006 in Nasushiobara
as a project under the Forestry Agency’s “Corporate Forest” program. In cooperation with the Enna District Forest Office and others, we conducted forest improvement activities including forest thinning and the maintenance of walking trails in Julyand November 2017. In addition, in May, we invited members of the Japan Down
Syndrome Society and their families to take part in a forest studies class experience(total number of participants for the year: approx. 168). Our second corporate forest “Taiyo Seimei Kutsuki no Mori” (Kutsuki Forest of Taiyo Life) was establishedin Takashima, Shiga Prefecture in November 2007. For this forest, we collaborated
with the Asosatoyama Center, a local NPO, in conducting forest improvement activities, including the improvement of forest roads and the clearing out of fallen leaves
in red pine forests, in September and December 2017. We also conducted Kurort
Health Walking using the Kutsuki Forest course in September 2017, and hosted the“Dongri Project” (Acorn Project) in December 2017, whereby local elementary students grew broad-leaf seedlings from acorns and then planted them in the forest at
the time of graduation (total number of participants for the year: approximately 230).

● 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 conducting the following activities to achieve the “use it wisely” component of the “plant it, raise it, harvest it, use it wisely” cycle for forests.

* “3.9 Paper” is a project launched to promote the use of domestic timber from forest thinning. Under this project, the costs of the transportation of timber from the forest to the wood chip mill are borne by the users of the paper in printing.

5–1 Environmental Communications and Educational Activities

Third-party
OpinionIndex

T&D Holdings endorses the activities of the Japan UNEP Association which produces
the Japanese edition of OurPlanet, published by the United Nations Environment
Programme (UNEP). This publication is distributed to all companies in the T&D LifeGroup as well as to local elementary and junior and senior high schools, public libraries, and other parties to raise awareness of environmental issues.

Management
Control

5. Environmental Communications and Educational Activities

Governance andInternal Control

Active Use of “3.9 Paper”*
Another initiative designed to promote use of timber from forest thinning is the use of “3.9 Paper” in paper wrappers for“Wood Thoughtfulness Chopsticks.”

Responsible
Institutional Investor“Chopsticks Project” launched to promote the use of disposable chopsticks made from domestic timber derived
from forest thinning and wood scraps
Our employees and executives made use of 470,185 pairs of chopsticks in aggregate from September 2006 to March 2018.
To promote forest development by encouraging use of timber from forest thinning, Taiyo Life has created its own disposable
chopsticks from Yoshino Japanese cedar derived from forest thinning. The chopsticks are distributed for a charge to those whorequest them, and efforts are made to use them at meals during internal meetings and so on.

57

VI Social Activities

103-2

103-3

413-1

1. Basic Concept
1–1 Basic Concept
As a Group engaged in the life insurance business with its highly public and social nature, the T&D Life Group implements a variety of initiatives for social activities and conserving the environment. In addition, the Group supports the volunteer activities of its
employees and gets involved in social programs by partnering with the foundations. As a life insurance group, our ultimate aim isto achieve sustained growth in step with society in view of our commitment to fulfilling our public mission and meeting our social
responsibilities. To that end, our efforts focus primarily on “improving health, medical care and welfare,” “developing a soundsociety” and “protecting the global environment.”* The protection of the global environment is described in “VII. Priority Areas (3) Global Environmental Protection” on page 51.

2. Improving Health and Welfare (Health, Medical Care, Welfare, etc.)
2–1 Blood Drives
The T&D Life Group cooperates with blood drives hosted by theJapanese Red Cross Tokyo Metropolitan Blood Center. The head officedivisions (Tokyo) of each company held biannual blood drives in thesummer and the winter, and executives and employees are encouraged to donate blood. In fiscal 2017, a total of 326 people in the Group
donated blood during the drive.

2–2 Friends of Taiyo Life Goodwill Circles
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 8,342 members as of March 31, 2018. In order to support social contribution
activities on a monthly basis, the members contribute from their take-home salary. At present, the Friends mainly provides supports
for local community-based social contribution activities driven by branches nationwide and head office departments, environmental
conservation activities in cooperation with NPOs and 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 broader participation by executives and employees in the activities.
《Major Activities in FY2017》• Donated to and sponsored Japan Congress of Down Syndrome 2017 of the Japan Down syndrome Society• Collected and donated plastic bottle caps, used postage stamps, and other items

2–3 Daido Life Employees’ Community Contribution ClubThe Daido Life Employees’ Community Contribution Club, which was established in 1992 as an independent organization forcorporate citizenship activities and is composed of Daido Life’s executives and employees, works to promote and support fundraising activities and volunteer activities. In addition, since 1994, the club has been implementing the One-day Outing Volunteer
Activity for the Physically Disabled. Under this program, employees take volunteer work leave to help 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.
《Major Activities in FY2017》• Fundraising and donations: Proceeds from donations from executives and employees and revenues from the charity calendar exhibitions were used as funds tomake contributions to organizations that support social charitable activities andfacilities for the disabled. These included facilities affected by the 2011 Great East
Japan Earthquake and 2016 Kumamoto Earthquakes.
• Collection of used postage stamps and other items: The items collected fromheadquarters divisions, branches nationwide, and affiliates benefit international
medical cooperation through donations to organizations that support social contribution activities. We have also cooperated
with the Ecocap Movement that is involved in efforts to improve the global environment and vaccination programs for children
around the world by providing funds from the collection of plastic bottle caps.
• Volunteering: We provided operational and other support for the One-day Outing Volunteer Activity for the Physically Disabled
and for a music concert by persons with disabilities.
58

Top Message/
Organizational Profile

2–4 Supporting the Japan Down Syndrome Society Taiyo Life

2–5 The Daido Life Welfare Foundation

Social Activities
Responsible
Institutional Investor● Publication of the “Environment and Health” Series Brochures
Published the “Environment and Health” series brochures, which contain articles written by experts in a compact and readerfriendly style on various issues of particularly high public interest in areas of the environment, health and welfare. Since its launch
in 1975, 72 brochures have been published. To ensure that these brochures are accessible to many people publications in recent
years were digitized and made public on the foundation’s website.
● Home Care/Nursing Consultation and Workshop
A video mostly depicting scenes from the home care/nursing consultation and workshop is available as a DVD and can be borrowed free of charge.

Priority Areas(3) Global Environmental
Protection《Main Activities》● Subsidies for Regional Health and Welfare Research and Volunteering• Subsidy for regional health and welfare research: We subsidize research relating tocommunity health, medical care, and welfare by public health and welfare professionals closely tied to local regions.
•
Subsidy volunteer activities for seniors: We subsidize “volunteer activities forexchange that promote the welfare of seniors and persons with disabilities, andthe sound psychological development of children” conducted by a group of volunteers aged 60 and older.
• Subsidy for volunteer activities by business people: We subsidize “volunteer activities for exchange that promote the welfare of seniors and persons with disabilities,
and the sound psychological development of children.” These activities are conducted by business people, who normally work in corporate or other settings, on their days off.
《Cumulative Grants from Establishment to FY2017》3,844 grants; 1,623.57 million yen

Priority Areas(2) Respect for Human
Rights《Purpose of Establishment》
Daido Life established the foundation in 1974. The foundation aims to contribute to public health and welfare by providing grants
to programs designed to address health problems arising from the deterioration of environmental living conditions, together withvarious issues associated with the sharp increase in the number of elderly people.

Priority Areas(1) Providing Better
Products and Services《Main Activities》• Support activities as a supporting member of the association• Provide Taiyo Life conference rooms for use as venues for seminars held by the
association and for meetings of its Board of Trustees and Board of Directors• Participation of the corporate officers and employees of branches and head office
departments as volunteers at association activities

CSR Management

Taiyo Life and the Friends of Taiyo Life Goodwill Circles (“Friends”) support theJapan Down Syndrome Society.

2–6 The Taiyo Life Welfare Foundation* 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.

Third-party
OpinionIndex● Main Activities in FY2017
In fiscal 2017, aiming to fulfill its key founding objective of contributing to improved social welfare, the foundation continued
offering grants to projects undertaken by volunteer groups working resolutely to enhance the welfare of local communities. The
foundation also awards research grants to study and research programs seeking to improve the welfare of the elderly and so on.
In fiscal 2017, a total of 80 grants (worth 22.90 million yen) were offered to 74 volunteer/NPO projects (20.00 million yen) and 6
study/research projects (2.90 million yen).

Management
Control《Main Activities》• Project grants:	Grants to the projects by volunteer groups and NPOs working to contribute to the welfare of the elderly, thedisabled living at home, and those with dementia.
• Research grants:	Grants for study and research regarding healthcare and medical care for the elderly and lifestyle diseases andwelfare of the elderly.
《Cumulative Grants from Establishment to FY2017》2,030 grants; 1,231.73 million yen

Governance andInternal Control《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.

59

3. Developing a Sound Society (Education, Sports, Local Community Contribution, etc.)
3–1 Nationwide Clean Campaign Taiyo Life
Taiyo Life is active in cleanup efforts nationwide, an activity that contributes to the
local community. We have cleaned up the areas around our headquarters each year
since 1982. Since 2004, we have conducted cleanups around our branches nationwide as part of the “Nationwide Clean Campaign,” from as far north as Hokkaido
to as far south as Okinawa. In fiscal 2017, a total of 5,863 people (including employees’ family members) participated nationwide. Employees are united in their commitment to contribute to society, conducting the cleanups as a way to thank our
local communities for their long-standing support.

3–2 Sponsorship of the Japan Junior High School Rugby Football Tournament Taiyo Life
Since fiscal 2011, Taiyo Life has been a special sponsor of the Japan Junior HighSchool Rugby Football Tournament (Taiyo Life Cup) hosted by the Japan Rugby
Football Union (JRFU). Taiyo Life chose this sponsorship in sympathy with thebasic spirit of Rugby,“ all for one, one for all” which is common to the basic principal of life insurance. At the same time, Taiyo Life agrees with the objective of thetournament, which can be summarized as “helping young rugby players and otheryouth to develop the quality and skills necessary for shaping a sound society.”
Accordingly, we are extending our support for the sound development of young
people through promoting junior high school rugby in cooperation with the JRFU.

3–3 Supporting Sports for People with Disabilities

Daido LifeThe first National Sports Games for the Mentally Handicapped (Yuaipic)* was heldin 1992, when Daido Life celebrated its 90th anniversary. Since then, Daido Life has
been a special sponsor of the National Sports Festival for People with Disabilities
every year. It is the largest sports event for people with disabilities in Japan, aiming at helping the disabled experience the joy of playing sports, raising public awareness about their lives, and promoting greater social participation. Every year, Daido
Life sets up a company booth in the Fureai Hiroba (Get-Together Plaza), a venue forinteracting with participating athletes. The executives and employees of Daido Life,
Taiyo Life, and other affiliated organizations work as volunteers to support this event.
We have been official partners of the Japanese Para-Sports Association since January 2015 and of the Japan Para Archery Federation
since January 2018. As a partner, we have worked to develop sports for persons with disabilities and to spread awareness.
* 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 Festival for People with Disabilities since then.

3–4 Official Partner Agreement Concluded with Japan Deaf Football Association (JDFA)
T&D Financial Life Insurance
T&D Financial Life Insurance signed an official partner agreement with the Japan Deaf Football
Association on June 1, 2018.
As an official partner, T&D Financial Life will contribute to and support the development andspread of deaf soccer and futsal in the future. Specifically it will support the activities of JDFA,
which include the development of the Japan national deaf soccer and futsal teams, and thepromotion of sports for persons with disabilities.

60

Top Message/
Organizational Profile

3–5 Endowed Open Courses at Universities Daido Life

CSR Management

Daido Life As an expression of gratitude to its many supporters, Daido Life beganannually endowing open courses at universities in fiscal 2002 as part of the company’s centenary celebrations. These courses offer a lineup of topics that include
a mixture of theory and practice, and provide managers of small- to medium-sizedbusinesses with opportunities for acquiring knowledge and skills relevant to management and business. The courses have been very well received by those who
In fiscal 2017, courses were held at eight universities, including Japan Women’s
University, of which Asako Hirooka (a Meiji-era businesswoman who was one of
the founders of Daido Life) was involved in the founding.

3–6 The Daido Life Foundation
The Daido Life Foundation was established in 1985 in celebration of the company’s 80th anniversary. The objective of the foundation is to promote international mutual understanding through cultural exchanges with or grants to other countries, thereby contributing to the internationalization of Japan.
《Main Activities》● Presentation of Daido Life Foundation Awards for Area Studies
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.
● Translation and Publication Activities
The foundation aims to help Japanese people deepen their understanding of the history, cultures and customs of other Asian countries and facilitate friendship between

Priority Areas(3) Global Environmental
Protection

To encourage area studies globally, the foundation gives Daido Life Foundation Awards for Area Studies and Daido Life Foundation

Priority Areas(2) Respect for Human
Rights《Purpose of Establishment》

Priority Areas(1) Providing Better
Products and Services

have attended them, with over 13,000 people participating over the past 16 years.

Social Activities

them. The foundation undertakes translation of literature published in the region; 70
contemporary Asian works including novels, poems, and essays from 12 countries
have been translated into Japanese and donated to universities and public libraries
across Japan. With a view to increasing readers of and interest in these works, thefoundation has digitized these publications since fiscal 2012 and has made them
literature and biographies of Japanese figures are translated into various Asian languages in a bid to help people in the region to develop a better understanding of Japan and its culture. A total of 42 Japanese works
have been translated into local languages for publication in 8 countries and donated to local universities and libraries.
● Educational Support Activities
The foundation offers support to improve educational environments in Southeast Asian countries by sponsoring school construcimportance 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.

3–7 Hosting Internship Program Daido Life
to understand the life insurance business, both for general business operations andspecialized operations such as actuary, asset management, and the payment of
insurance claims. The students can practice working experience in the workplacedesign a specific career plan and consider their aptitude. Through the program,they will be motivated to work and deepen their understanding of the required

Third-party
Opinionrelated to their university major and career interest, and utilize the experience toManagement
Control

Daido Life provides college students with internship opportunities in order for themGovernance andInternal Control

tion projects (20 schools constructed in 5 countries) and donating books and school supplies in the hope to raise awareness of the

Responsible
Institutional Investor

available for free in an electronic format on their website. On the other side, Japaneseknowledge and skills and a typical workplace environment.
Index
61

3–8 Support for Areas Affected by Disasters
When a major disaster occurs, the T&D Life Group and its Group companies provide support that includes making contributions
to disaster relief funds and cooperating with recovery work.
Shortly after the Great East Japan Earthquake, the Group promptly dispatched its executives and employees to the affectedareas. There, they participated in volunteer activities such as removing rubble, bringing in relief goods, and rebuilding individual
homes and temples/shrines.
In subsequent years, the Group has been continuing to provide a broad range of support, including making donations.
We also donated contributions for the relief of victims of the torrential rains in July 2018.

3–9 Daido Life Survey Daido Life
From October 2015, Daido Life has been conducting the Daido Life Survey, a monthly survey for managers of small and medium
enterprises (SMEs) nationwide. The survey aims to collect the direct opinions of the managers of SMEs on such matters as business confidence and management issues of SMEs, in order to help them by providing corporate management tips.
Daido Life strives to provide useful and timely information, including on topics in which all managers are highly interested,
together with tips about corporate management. The survey takes advantage of its uniqueness of “monthly” implementation
focusing on the small businesses that comprise most SMEs.

62

103-2103-3

1–1 Signing of the Principles for Responsible Investment (PRI)Top Message/
Organizational Profile

VII Responsible Institutional Investor

The status of each Group company’s PRI initiatives is reported in PRI Transparency Report.
WEB https://www.unpri.org/signatories/transparency-reports-2018/3350.article

Priority Areas(3) Global Environmental
Protection

T&D Asset Management Co., Ltd.
T&D Asset Management, to fulfill its responsibilities of being entrusted as an institutional investor that manages investments,
endorses the concept of the PRI, and signed them in March 2012. In accordance with these principles, T&D Asset Management
tackles ESG issues in a manner consistent with meeting the long-term interests of customers, fully grasping the status ofinvestee companies. Accordingly, the company is also committed to pursuing the sustained growth of these companies, particularly through holding constructive dialogues with them and through the exercise of voting rights, with the aim of increasing the
medium- and long-term investment returns on the funds entrusted to it by customers.

Priority Areas(2) Respect for Human
RightsDaido Life Insurance Company
Daido Life supports the objectives of the PRI and became a signatory institution to them in November 2016. The company has
long carried out initiatives that contribute to solutions to social issues through business activities, and by promoting financing andinvestment that takes into account environmental, social and governance (ESG) issues in the area of asset management as well,
it is contributing to the formation of a sustainable society.

Priority Areas(1) Providing Better
Products and Services

Taiyo Life Insurance Company
In order to further fulfill its social responsibility as an institutional investor, Taiyo Life determined that it was essential to exert its
influence for the betterment of society and the global environment through investment and lending activities to a greater extent,
and to contribute to the realization of a sustainable society.
In line with this thinking, in March 2007, Taiyo Life became the first Japanese life insurance company to sign the PRI.
Based on these principles, Taiyo Life gives due consideration to ESG issues, namely, environmental (E), social (S), and governance(G) issues, and promotes asset management to achieve a sustainable society.

CSR Management

Carrying out responsible investment that helps to build a sustainable society is one of
the most fundamental roles of the Group, the main business of which is the life insurance business. Daido Life, Taiyo Life, and T&D Asset Management have signed thePrinciples for Responsible Investment (PRI)*, which is supported by the United Nations.

Social Activities* The Principles for Responsible Investment (PRI) are a code of conduct for the global financial industry that was proclaimed by Kofi Annan, the secretary-general of the United Nations in 2006. A commitment to these principles has been signed by over 1,700 financial institutions worldwide, and by 62 in Japan(as of July 2018).

【Principles for Responsible Investment (PRI) Initiatives】

Principle 1: We will incorporate ESG issues into investment analysis and decision-making processes• We reflect the PRI approach in our stance on asset management
Taking ESG issues into account is one of Taiyo Life’s stances on asset management, as is clearly stated in our rules for
asset management.

Management
Control
Third-party
OpinionIndex<Our Stance on Asset Management>
1. Under the principle of self-responsibility in management, we will strive to enhance and strengthen such organizations as our internal control organization by utilizing the function of mutual checks, our risk management organization based on the financial environment, etc., and our asset management organization.
2. Based on the nature of the life insurance industry, we aim to promote the interests of policyholders and others,
taking social and public aspects into greater account. Such aspects include strictly refraining from speculative
trading, as well as unsound investments and loans.
3. When making investment and financing decisions, we also account for the impact of our actions on domestic andinternational financial and capital markets. In addition, when investing or financing overseas, we take the local
financial and economic impacts into account, as well.

Governance andInternal Control

Taking ESG issues into consideration for investing and financing decisions, including stocks, bonds, and othersecurities, as well as real estate and lending
When investing and financing, including bonds and other securities, real estate, and lending, we incorporate corporate
assessments related to ESG into our conventional investment and financing decisions. In this manner, we strive to improve
the long-term outcomes of our investments, while at the same time fulfilling our mission based on the Principles for
Responsible Investment (PRI).

Responsible
Institutional Investor

Example from Taiyo Life63

4. We also strive to instruct our subsidiaries and other entities with special relationships specified by the Cabinet
Office Ordinance (“subsidiaries and others”) to take social and public aspects into account in their asset management actions.
5. We strive to contribute to the continuous development of society and the financial markets, taking into accountissues regarding the environment, social responsibility, and corporate governance.
6. As a responsible institutional investor, we strive to properly fulfill our duty of stewardship, through means suchas constructive dialogue with investment targets.

We also make the following responses from the standpoint of ESG.
When selecting loan recipients, we refrain from financing companies that violate laws, regulations, public order, or social
mores, as well as industries with concerns regarding social aspects.
In real estate transactions, we prohibit transactions that raise concerns regarding the destruction of nature or unrestrained
land development, and prohibit leasing to entities that violate laws, regulations, public order, or social mores.
We follow ordinances for the elimination of organized crime when making loans or creating tenant agreements for real estate.
We include language regarding the PRI in private equity investment agreements.
Principle 2: We will responsibly fulfill our role as active shareholders
Incorporating the Principles into our standards for exercising voting rights
We clearly state our approach to PRI in our standards for exercising voting rights by signing the PRI.
In this manner, we exercise voting rights based on social and public aspects, as well as our fiduciary responsibility to ourcustomers, shareholders, and other stakeholders. In addition, we take the ESG perspective into greater account when
exercising voting rights. In this process, we establish internal decision-making processes and a system for reporting tomanagement, and disclose the status of exercising voting rights on the Company website.
Principle 3: We will seek adequate disclosure regarding ESG issues by the entities in which we invest
Adequate disclosure of ESG issues
We strive to practice regular constructive purposeful dialogue (engagement) with our investment targets. In this regard,
we also work to promote an understanding of our response to ESG issues, from the perspective of contributing to the realization of a sustainable society. At the same time, we seek adequate disclosure, while confirming the response to ESG
issues by these companies.
Principle 4: We will promote acceptance and implementation of the Principles within the asset management industry
Explanation of PRI activities to corporate pension plan and other contract partners
Taiyo Life includes information regarding PRI activities in its disclosure materials regarding corporate pension plans. In addition, as necessary, we explain details regarding our statement of accounts, asset management policy, PRI activity status,
and the like to corporate pension plan and other contract partners.
Principle 5: We will work together to enhance our effectiveness in implementing the Principles
Information exchange and collaboration with PRI signatory institutions
We regularly participate in meetings with PRI signatory institutions and related entities, in order to improve acceptanceand implementation of the PRI, and promote our PRI activities more effectively and concretely. We also share best practices and global trends regarding the responsibility to take ESG issues into account in the investment and financing decision-making process. Furthermore, we discuss specific measures to promote the acceptance and implementation of the
PRI, while taking into consideration circumstances unique to Japan.
Principle 6: We will report on our activities and progress towards implementation of the Principles
Reporting on the status of our PRI activities on our website and elsewhere
We internally and externally disclose details regarding our PRI initiatives, including the history of our signing, on our website, in our disclosure materials, and elsewhere. In terms of the PRI framework, we also report on the status of our PRI
activities for the fiscal year to the PRI Secretariat. This report includes the status regarding building an organization for PRI
activities, as well as incorporating ESG standards in the investment stage.
Promoting an understanding of the PRI internally
Practicing asset management based on the PRI approach requires that everyone involved in asset management understand this approach. Accordingly, we use e-learning and other means to actively learn about the PRI approach, global
trends, and the like.

64Top Message/
Organizational Profile

1–2 Examples of ESG Investment

CSR Management

Taiyo Life, Daido Life, and T&D Asset Management practice the following types of ESG investment.
• Investment in and finance of renewable energy projects and energy efficiency projects
We invest in Green Bonds, which financially support various projects by local governments and incorporated administrative
agencies. These projects include working on “Creating Smart Energy Cities” and “Adapting to the Effects of Climate Change,”and promoting the convenience of urban rail, which is expected to be effective in improving the environment, including reducworking to create solar power generation, which provides clean energy.
• Finance of the “Seawater Desalinization Project,” which can contribute to the resolution of water shortages in Australia
We financed a seawater desalinization project aimed at supplying drinking water in a public-private initiative by a state government in Australia. This financing is an initiative to contribute to the creation of social infrastructure in a region suffering fromwater shortages.

and Caribbean countries“EYE (Education, Youth, and Employment) Bonds” are issued with the objective of raising capital to supplement projects by theInter-American Development Bank’s EYE Bond program. Through investment in EYE Bonds, we are helping to realize a sustainable society through support for education, youth protection, and employment in the region.
• Investment in “Social Bonds” which contribute to supporting infrastructure development and job creation, etc. in
We invested in “Social Bonds” issued by JICA, a government agency that provides Official Development Assistance (ODA)
such as funding for economic and social development in developing regions. The financing is used in projects such as infrastructure creation, job creation support, and the like, mainly in developing regions.
• Investment in the “Fund Supporting Good Health,” “Japan Healthy Society Support Fund,” and “Healthy Society
Contribution Fund,” which support projects that contribute to the promotion of human health
We invested in the Fund Supporting Good Health and the Japan Healthy Society Support Fund, with the aim of responding toPriority Areas(3) Global Environmental
Protection

developing regions

Priority Areas(2) Respect for Human
Rights• Investment in “EYE Bonds,” which contribute to education, youth support, and employment support in Latin American

Priority Areas(1) Providing Better
Products and Services

ing CO2 emissions. We also contribute to the promotion of measures against global warming, by investing in funds for projects

Social Activities

the social issue of extending healthy life span. The former is for listed corporations in Japan that conduct businesses such as
pharmaceuticals, healthcare, sports clubs, and health foods that contribute to the promotion of human health, while the latter
supports projects that contribute to the promotion of human health.
• Investment in companies that contribute to the creation of a sustainable society
nies with an outstanding ESG (Environmental, Social, and Governance) performance, through stock selection based on ESG
research. T&D Asset Management established and manages the fund (management began in July 2015).

1–3 The Principles for Responsible Institutional Investors (Japan’s Stewardship Code)Responsible
Institutional Investor

Taiyo Life and Daido Life invest in the “T&D Japan Equities ESG Research Fund.” The fund selectively invests in compa-

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

Daido Life Insurance Company

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

T&D Asset Management Co., Ltd.

http://www.tdasset.co.jp/company/principles/stewardship/

Third-party
Opinionhttps://www.taiyo-seimei.co.jp/company/activity/ssc.html
Management
Control

Taiyo Life Insurance Company

Governance andInternal Control

to the Principles for Responsible Institutional Investors (Japan’s Stewardship Code) in May 2014.

* Since T&D Financial Life does not directly invest in listed stocks, and is not planning to do so in the future, it is not expressing support for the Stewardship Code.
Index
65

● Policy on Exercising Voting Rights
Taiyo Life, Daido Life
Taiyo Life and Daido Life strive to make voting decisions based not only on formal determination criteria such as financial information, but also on non-financial information such as ESG. They also promote the sustainable growth of investment targets bypracticing regular constructive purposeful dialogue (engagement). Based on this fundamental approach, they exercise their voting rights rigorously, in accordance with criteria established to ensure that voting rights are exercised properly. These criteria arerevised continuously in accordance with the economic environment and social conditions. In accordance with the revisions toJapan’s Stewardship Code on May 29, 2017, we created an in-house committee on exercising voting rights in June 2017. As of
April 2018, the committee also includes outside members. Through these initiatives, we are strengthening our governance andconflict of interest management structures relating to stewardship activities as a whole, including the exercise of voting rights.
《Main Focal Points for Carefully Examining Proposals, Engaging in Dialogues and Making Voting Decisions》▶ Has the investee company decided to pay no dividends despite having ample funds for dividend payments? Is the dividend
payout ratio extremely low (or high)?
▶ Does the investee company face problems in connection with any activities against public order and common decency (willful
tax evasion, collusion, bribery, etc.) and/or antisocial activities such as environmental destruction (actions deemed questionable in light of ESG problems)?
▶ From the standpoint of requesting investee companies to ensure corporate governance is functioning effectively in management, does the investee company present problems in terms of any of the following:• Level of ROE• Number and independence of outside directors• Attendance rate of corporate officers at meetings of the Board of Directors and the Audit & Supervisory Board• Length of service of Audit & Supervisory Board members• Eligible recipients of retirement benefit payments• Eligible recipients of stock options
T&D Asset Management
T&D Asset Management believes that exercising voting rights is an effective means for shareholders to increase the corporate
value of investee companies by giving the shareholders a say in corporate governance, which has a pivotal impact on corporate
management. Based on this belief, T&D Asset Management has clearly codified guidelines in its internal rules for expressing its
voting intentions on proposals put forward to the Ordinary Shareholders’ Meeting. This is to fulfill the company’s fiduciary responsibility as an asset management institution. Moreover, T&D Asset Management carefully examines all proposals put forward
based on the Guidelines for Exercising Voting Rights.
《Main Approaches to Individual Proposals》【Selection of Directors and Audit & Supervisory Board Members】As a rule, the re-appointment of members of the Boardof Directors or Audit & Supervisory Board shall be opposed if it is determined that there are concerns regarding adverse effects
on share value, due to factors such as poor performance over the past several terms, including the present term, or illegal corporate activities.
As a rule, outside directors or Audit & Supervisory Board members shall be opposed in cases in which their independence in the exercise of the expected management oversight functions cannot be ensured. If it is determined that the organization does not enable outside directors to fulfill their roles fully, then the re-appointment of the representative director shall be determined separately.
【Compensation of Directors and the Audit & Supervisory Board Members/Retirement Benefits】Although we are generally in favor of introducing a performance-linked compensation system, issues regarding the manner of determining the amount ofcompensation shall be determined separately. The payment of retirement benefits without an explicit process for determining theamount and performance-linked compensation/retirement benefit payments of outside directors shall be determined separately.
【Stock Options】We are generally in favor, if they provide long-term incentives and contribute to an increase of corporate value.
【Capital Policies】Dividends shall be determined separately in cases where they are significantly out of balance with corporate
revenues, or if the dividend payout ratio is below a specific threshold.
【Anti-takeover Measures】As a rule, we oppose anti-takeover measures.

66

Top Message/
Organizational Profile● Status of Exercising Voting Rights (Including Status of Dialogues)

CSR Management

Taiyo Life, Daido Life
Taiyo Life and Daido Life exercised their voting rights on proposals at Shareholders’ Meetings held between July 2017 and June
2018. Such exercise was conducted after holding dialogues with investment targets as necessary, in accordance with the criteria for determining the exercise of voting rights.
《Status of Dialogue》
Taiyo Life and Daido Life emphasize dialogue with investee companies. Through proactive dialogue with investee companies,
uously taking steps to help increase shareholder value.
▶ Examples of companies with whom Taiyo Life and Daido Life engaged in dialogue• Companies whose ROE fell below a certain threshold• Companies issuing dividends despite having reported a net loss
• Companies not paying dividends despite having adequate resources

Priority Areas(1) Providing Better
Products and Services

Taiyo Life and Daido Life work to verify the circumstances faced by management and share an awareness of issues while contin-• Companies with substantial doubts regarding the independence of candidates for independent outside director• Companies whose audit & supervisory board members to be re-appointed had served long terms• Companies paying retirement benefits for directors and audit & supervisory board members without disclosing individual amounts• Companies paying incentive compensation to outside directors and Audit & Supervisory Board members who should bemonitoring the status of management• Companies that have been involved in misconduct or other such incidents

Taiyo Life and Daido Life reject proposals in cases where problems are not rectified despite constructive dialogue, cases where
shareholder value is highly likely to be impaired and in certain other circumstances.
The results of voting rights of shares listed on domestic markets exercised at general meetings of shareholders held by domestically listed companies between July 2017 and June 2018 are as follows.
Taiyo Life
Approve

RejectAbstainCarte
blancheTotal
agendaitems

Approve

RejectAbstainCarte
blancheTotal
agenda
items

—

223

344

7

2

—

353

49

—

1

—

50

83

1

—

—

84

Director appointment*1

68

1

1

—

70

96

2

1

—

99

Corporate auditor appointment*

48

—

1

—

49

80

1

—

—

81

Partial change to Articles of Incorporation

17

1

—

—

18

23

—

—

—

23

Payment of retirement bonus

2

—

1

—

3

8

—

—

—

8

Change to officer compensation

16

1

—

—

17

14

—

—

—

14

Issue of stock acquisition rights

4

1

—

—

5

16

2

—

—

18

Appointment of accounting auditors

1

—

—

—

1

1

—

—

—

1

Reconstruction related*

1

—

—

—

1

—

—

—

—

—

8

—

1

—

9

23

1

1

—

25

—

—

—

—

—

2

1

—

—

3

—

8

—

—

8

—

29

—

—

29

214

12

5

—

231

344

36

2

—

382

1

2

Other company proposals*

3

Of which, antitakeover measures
Shareholder proposals
Total

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

Management
Control5

Governance andInternal Control

4

Responsible
Institutional Investor

214

Surplus appropriation

Company proposals

Social Activities

Type

Daido Life

Priority Areas(3) Global Environmental
Protection《Status of Exercising Voting Rights》

Priority Areas(2) Respect for Human
Rights• Companies that proposed the introduction/continuance of anti-takeover measures● Self-evaluation
Index

Between July 2017 and June 2018, Taiyo Life and Daido Life performed self-evaluations of the status of implementation of eachof the Principles in this code. The evaluations of both companies determined that activities were carried out steadily, in accordance with the policies on the Principles.
67

T&D Asset Management《Status of Dialogues》
T&D Asset Management uses opportunities such as individual and small meetings with companies to hold constructive dialogues
that promote sustainable growth from such perspectives as business strategy, capital efficiency, shareholder return, and ESG.
In the period between July 2017 and June 2018, meetings were held with 324 companies. Examples of the resulting dialogues
are presented below.
① It encouraged an operating company that had continuously run deficits in its overseas businesses to provide concrete explanations to its investors regarding its future vision for its overseas businesses and its investment plan. This fiscal year, thecompany announced numerical targets for its overseas businesses, coinciding with the release of its new medium-term management plan. However, because the investment amount and strategy necessary to achieve the targets were unclear, T&D
Asset Management plans to continue dialogue on this matter.
② It held dialogues regarding medium- to long-term capital policies with an operating company with chronically low ROE due
to large internal reserves, despite maintaining a high operating profit margin. The company responded that although there
was the possibility that it could make a major capital expenditure in the future, in its next medium-term management plan, it
intended to disclose a capital policy that takes into account the adequacy of the level of cash on hand. T&D Asset Management
plans to continue its dialogue with the aim of increasing ROE.
③ It proposed to an operating company that it incorporate ESG-related indicators other than performance into its KPIs, withregard to standards for calculating executive compensation. The company responded that it was working to visualize theresults of ESG-related initiatives, and would actively study the use of such indicators as KPIs in its standards for determining
compensation, going forward.
《Status of Exercising Voting Rights》
T&D Asset Management has created an internal Voting Rights Exercising Committee to review matters regarding the exercise of voting rights and to make decisions on necessary matters. The committee is chaired by the Chief Investment Officer,
and its membership consists of members in charge of the Investment Management Department and the Legal & ComplianceDepartment. The committee convenes as needed. The chairman determines guidelines for exercising voting rights after discussions by the committee members. A representative from the committee secretariat draws up proposals for exercising voting
rights based on these guidelines, and the person in charge of investment makes the final determination.
Under these procedures, T&D Asset Management voted against 902 proposals submitted by the companies (11.3% of the total)
between July 2017 and June 2018. In addition, examples of the status of exercising voting rights are provided below.
① In proposals for the selection of directors, it opposed the re-appointment of a representative director if it determined that thestock value was continuously harmed from the perspective of performance or capital efficiency, and future improvement could
not be expected.
② In proposals for selection of outside directors or outside audit & supervisory board members, it opposed candidates for whom
it determined that independence could not be ensured. As a specific example, it opposed candidates from major shareholders and major business partners.
③ It generally opposed proposals relating to the continuation or introduction of anti-takeover measures.

68103-2103-3

1. Corporate Governance102-18405-1

Top Message/
Organizational Profile

VIII Governance and Internal Control

CSR Management

1–1 Basic Concept of Corporate GovernanceThe basic concept of corporate governance at the T&D Life Group is to pursue an efficient and transparent business management structure capable of implementing flexible and united Group management. Based on this concept, T&D Holdings determines the Group’s business strategies, adequately allocates management resources and sets capital policies. In addition, T&D
Holdings properly identifies the business risks of its five direct subsidiaries centered on the three life insurance companies ofterm Insurance, to create a system for supervising Group management by thoroughly managing revenues and risks for the entire
Group. Meanwhile, the subsidiaries, which have their own business strategies, develop marketing strategies leveraging theirstrengths and conduct business operations autonomously, thereby increasing the Group’s corporate value. In this way, the Groupis committed to management that clarifies the respective roles and responsibilities of T&D Holdings and its direct subsidiaries.
For details about corporate governance, please refer to the Report Regarding Corporate Governance that T&D Holdings submitted to the Tokyo Stock
Exchange. (Japanese)
http://www.td-holdings.co.jp/en/company/governance/

1–2 Outline of Corporate Governance Framework
T&D Holdings shall make decisions on important business matters and oversee the execution of business through its Board of
Directors. The Company is a “Company with Board of Auditors.” Accordingly, the Company shall audit the performance of direc-

Priority Areas(2) Respect for Human
RightsWEB

Priority Areas(1) Providing Better
Products and Services

Taiyo Life, Daido Life, and T&D Financial Life, together with T&D Asset Management and Pet and Family Small-amount Short-

tors’ duties through its Audit & Supervisory Board and Audit & Supervisory Board members, which are independent of the Board
clarifying oversight and execution responsibilities, the governance function of the Board of Directors is reinforced. Furthermore,
the Company has established a Nomination and Compensation Committee as an advisory body to the Board of Directors. The
Committee discusses the fairness and validness of the appointment and compensation of directors and Audit & Supervisory
Board members, among other related issues, ensures the transparency of management, and enhances accountability.
● Corporate Governance Framework (April 2018)

Priority Areas(3) Global Environmental
Protectionof Directors. In addition, a system of executive officers has been instituted to further strengthen business execution, and by

Social Activities

Shareholders’ Meeting
Appointment
Dismissal

Opinions
submitted

Appointment
Dismissal

ReportingBoard of Directors
Auditing

Group Compliance Committee

Audit & Supervisory
Board Members
Audit & Supervisory Board

ReportingAssess the relevance ofthe financial audit

Group Management Committee
Group Information Technology Committee

Group Risk Management Committee

Internal
auditing

Internal Auditing
Department

Third-party
OpinionEach division
Group Planning Department, Business Development Department,Group Finance & Accounting Department, Public Relations Department,
General Affairs Department, Risk Management Department

External
auditing

Management
ControlGroup ERM Committee

Governance andInternal Control

Cooperating

President

Independent Accounting Auditors

Audit & Supervisory
Board Member’s OfficeGroup CSR Committee

Executive Committee

Responsible
Institutional Investor

Reporting

Nomination and Compensation Committee

Appointment
Dismissal

Index
69

1–3 Corporate Governance Framework● Shareholders’ Meeting
The Shareholders’ Meeting is the highest decision-making entity of T&D Holdings. At the meeting, reports are made on theGroup’s business and consolidated/non-consolidated financial statements for the fiscal year. Resolutions are made on important
issues, which are stipulated in laws and ordinances and the Articles of Incorporation, such as the appropriation of retained earnings and election of officers. The Ordinary Shareholders’ Meeting is held in June once in every year.
● Board of Directors
Roles and Responsibilities
The Board of Directors of T&D Holdings shall make decisions on important business matters and oversee the execution of businessin accordance with laws and ordinances, the Articles of Incorporation, and the Company’s relevant rules.
The Company’s Board of Directors has entrusted all authority related to the execution of business, other than matters stipulated in
the preceding paragraph, to the representative director and president. Furthermore, the representative director and president delegates authority related to the execution of business to executive officers in charge of business operations for the purpose of separating oversight functions and business execution functions. This framework is designed to facilitate decision-making for businessexecution matters.
Composition
The number of directors shall be no more than 12, as stipulated by the Articles of Incorporation. The Board of Directors shall bemade up of individuals representing a balance of knowledge, experience, and skills. They shall have diverse backgrounds as befitting the expansive range of business domains in the life insurance business, which is the core business of the T&D Life Group.
The Company shall appoint two or more directors who concurrently serve at the Company and its directly owned subsidiaries,
including the presidents of the three life insurance companies. This shall be done from the standpoint of facilitating adequate
communication and prompt decision-making within the Group, along with bolstering Group-wide governance.
Furthermore, the Company shall appoint three outside directors with extensive experience and knowledge in their capacity as
outside corporate managers, legal experts, and so forth. The opinions of outside directors are properly reflected to the Group’s
management policies and development of internal controls and other systems as well as to the oversight of the execution of business. Outside directors shall be designated as independent officers having no conflicts of interest with general shareholders, and
who fulfill the standards of independence set by the Company and the Tokyo Stock Exchange.
The board met 21 times in fiscal 2017.
Chairperson of theBoard of Directors

President

Directors

12

Men

11

Women

1

Outside directors

3 (including one woman)

Activities of outside
directors(Fiscal 2017)

Outside directors make necessary statements as appropriate based on their global perspectives
and advanced knowledge in the Board of Directors meetings. Outside directors comprise a groupof corporate managers with experience in corporate management, as well as expertise cultivatedas university professors with experience in corporate legal departments, expertise as attorneys,
or experience as partners in foreign-owned consulting firms.
Additionally, as the chair or members of the Nomination and Compensation Committee, which isan advisory body to the Board of Directors, they present valuable views relating to the selection of
the Representative Director and President, and the selection and compensation of directors andAudit & Supervisory Board members of the Company and our main subsidiaries.
Activities also include regular exchanges of views with the representative director, the independent accounting auditor, the heads of the divisions under their supervision, the directors andexecutive officers of major subsidiaries, and outside officers of major subsidiaries, and visits tobusiness offices of major subsidiaries.

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

70

① Functioning ② Composition ③ Operation④ Provision of information to outside directors and audit & supervisory board members⑤ Overall evaluation

3. Overall Evaluation

We have determined that the Company’s Board of Directors has generally fulfilled its roles and duties
effectively overall. This was achieved by such means as enhancing initiatives prior to Board discussions,improving its operation, and promoting greater diversity of its composition.

4. S
 tatus of Improvementof Issues from Previous
Evaluation

The issues recognized in the fiscal 2016 evaluation were generally improved. The issues include revision of methods for deliberation/preparation of materials at the Board, improvement of executive training, and diversification of its composition.

5. Issues from Current
Evaluation and Future
Initiatives

We continue to recognize the need for a framework to improve the Board’s effectiveness. For example, we are working to deal with discussions in the limited timeframe of the Board’s meetings, given theneed for discussions beyond the meetings. We are also working to further improve the meeting materials and content of reports.
Based on the evaluation of effectiveness and other information, we will work to further improve theBoard’s supervisory function and decision-making process.

4

Men

4

Women

0

Outside Audit &Supervisory Board
members2
Made necessary statements as appropriate at meetings of Board of Directors and Audit & Supervisory
Board, based on expertise as attorney.
In addition to the above, activities include regular exchanges of views with the representative director,
the independent accounting auditor, the heads of the divisions under their supervision, the directors andexecutive officers of major subsidiaries, and outside officers of major subsidiaries. Business offices ofmajor subsidiaries were visited.

Process
Director and Audit & Supervisory Board member candidates are reviewed by the Nomination and Compensation Committee andappointed by the Board of Directors. Audit & Supervisory Board member candidates are approved by the Audit & Supervisory Board.

Index

Director Compensation
The total compensation of directors (excluding outside directors and other part-time directors) consists of monthly compensation and bonuses that vary according to their roles and performance, and trust-type stock compensation* (although non-residents
of Japan are ineligible). The goal is to raise awareness of contributions to the improvement of medium- and long-term performance and the increase of corporate value. The total compensation of part-time directors, including outside directors, consistsof monthly compensation.

Third-party
Opinion● Director and Audit & Supervisory Board Member Compensation

Management
Control

Criteria
We select directors and Audit & Supervisory Board members primarily based on the following criteria. Candidates for director positions are required to have sufficient knowledge and experience to oversee the management of T&D Holdings in a proper, fair andefficient manner, and to have earned the trust of society. In addition to the requirements set forth above, outside directors and outside Audit & Supervisory Board members must satisfy the independence criteria established by the Company and the Tokyo Stock
Exchange, and must be recognized as being free from the risk of any conflicts with the common interests of shareholders.

Governance andInternal Control● Selection of Director and Audit & Supervisory Board Member Candidates

Responsible
Institutional Investor

Activities of Outside Audit& Supervisory Board
members(Fiscal 2017)

Social Activities

Audit & Supervisory
Board members

Priority Areas(3) Global Environmental
Protection● Audit & Supervisory Board
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 of attending important meetings, such as those of the Board of Directors,
Executive Committee, Group Management Committee, Group Compliance Committee, Group Risk Management Committee andGroup CSR Committee, as well as by other means. Outside Audit & Supervisory Board members are appointed as independent
auditors who meet the criteria for independence set by the Company and the Tokyo Stock Exchange, and do not present any risk of
conflict of interest with general shareholders. The Audit & Supervisory Board receives reports from individual Audit & Supervisory
Board member on important audit issues, and discusses or makes decisions on them.
The board met 16 times in fiscal 2017.

Priority Areas(2) Respect for Human
Rights

2. Areas Evaluated (5)Priority Areas(1) Providing Better
Products and Services

The Company conducted an analysis and evaluation of the Board of Directors based on self-evaluations(questionnaires), interviews of members of the Board of Directors and Audit & Supervisory Board members and other means. These efforts related to the effectiveness of the Board of Directors as a wholein fiscal 2017.

CSR Management

1. Scope

Top Message/
Organizational Profile《Summary of Evaluation of Effectiveness of Board of Directors as a Whole in Fiscal 2017》71

A maximum yearly total compensation amount for members of the Board of Directors was adopted at the 13th Shareholders’Meeting, held on June 28, 2017, of no more than ¥500 million per year, and ¥40 million for outside directors. Of this, the Board
determined a maximum annual bonus amount for members.
Separate from the total compensation mentioned above for Board of Directors members, a maximum amount for trust-type stockcompensation (corresponding to three fiscal terms) was adopted by the 14th Shareholders’ Meeting held on June 27, 2018. The
monthly compensation and bonuses of each Director are determined after an individual assessment based on company performance and assessment of the division of which the director is in charge, in accordance with the assessment criteria determined by
the Board of Directors. Discussion by the Nomination and Compensation Committee is another determinant.
The shares and monies of trust-type stock compensation shall be issued and provided to directors (excluding outside directors andother part-time directors and those who are not residents of Japan) based on points allotted in accordance with position.
Moreover, directors (excluding outside directors and other part-time directors) shall purchase shares in the Company valued at a specified amount or greater from their monthly compensation through Director/Audit & Supervisory Board member share ownership.
* With trust-type stock compensation, payment may be restricted if it is determined that the director or other officer has committed seriously inappropriate
actions that damage the Company during his or her term of appointment.

Audit & Supervisory Board Member Compensation
Compensation for Audit & Supervisory Board members consists of monthly compensation only. The upper limit of annual compensation was set at ¥130 million as resolved at the 8th Shareholders’ Meeting held on June 27, 2012. Actual compensation isdetermined through discussion by the Audit & Supervisory Board members within the predetermined upper limit.
● Executive Committee and Group Management Committee
Please see “Executive Committee and Group Management Committee” under “4–2 Management Approach” on page 18.
● Executive Officer System
T&D Holdings has introduced an executive officer system for the purpose of bolstering its business execution capabilities. By
sharply delineating responsibilities for oversight and execution, the Company shall strengthen the governance function of theBoard of Directors.

1–4 Participation in Management by Outside Experts
The Group’s three life insurance companies work toward ensuring adequate and transparent business management through theparticipation of outside experts in some internal committees dealing with key management issues.
● Service Quality Improvement Committee (Taiyo Life)
Physicians, attorneys, person with relevant knowledge and experience, and experts on consumer issues<Outside members><Main topics of deliberation>	Status of building framework for management of payments of insurance and other benefits, adequacy of examinations of payments of insurance and other benefits, ease of understanding insurance claim procedures, adequacy of insurance and other benefit-payment processes, status ofcustomer feedback, and initiatives to improve operations utilizing customer feedback● Customer Feedback Council (Daido Life)<Outside members>
Physicians, attorneys, and experts on consumer issues<Main topics of deliberation>	Validation of adequacy and effectiveness of initiatives and operations to improve customer service. Further utilization of product and service development from the customer’s perspective● Stewardship Committee (Daido Life)<Outside members>
Attorneys and experts in stewardship activities<Main topics of deliberation>	Enhancement of governance of voting process (e.g. prevention of conflicts of interest) and further
enhancement of stewardship activities as a whole● Advisory Council for Insurance Payment (Daido Life)<Outside members>
Attorneys and experts on consumer issues<Main topics of deliberation>	Responses to dispute handling and complaints relating to payments, adequacy of validation steps
and results for cases where payments were deemed inappropriate. Ease of understanding guidance and materials sent to customers● Service Supervision Committee (T&D Financial Life)<Outside members>
Attorneys, experts on consumer issues, and members of the media<Main topics of deliberation>	Holistic deliberation on initiatives aimed at improving customer satisfaction, including ensuring anadequate framework relating to payment of insurance and other benefits, with the goal of promoting the protection of legitimate interests of policyholders and others
72Top Message/
Organizational Profile

1–5 Committees

CSR Management● Nomination and Compensation Committee
The Company has established a Nomination and Compensation Committee as an advisory body to the Board of Directors. The
Committee discusses the fairness and validness of the appointment and compensation of directors and Audit & Supervisory
Board members, among other related issues, ensures the transparency of management, and enhances accountability. The committee chairperson of the Nomination and Compensation Committee is one of the outside directors and the committee members
In fiscal 2017, the committee held seven meetings and reported the results of the deliberations to the Board of Directors.
《Details of Major Deliberations and Reports by Nomination and Compensation Committee (Fiscal 2017)》
Details of Major Deliberations and Reports
1st meeting• Selection of directors, audit & supervisory board members, and substitute audit & supervisoryboard member• Revision of compensation framework for outside directors• Succession planning

4th meeting• Appointment of new Representative Director and President

5th meeting• Revision of Articles of Incorporation relating to reducing term of directors

6th meeting• Selection of executive officers

7th meeting• Investigation of new stock compensation system for directors and others● Group Compliance Committee
Please see “Group Compliance Committee” under “4–2 Management Approach” on page 18.
● Group CSR Committee
Please see “Group CSR Committee” under “4–1 Promotion Framework of CSR” on page 17.

Priority Areas(3) Global Environmental
Protection• Fiscal 2016 director evaluations

3rd meeting

Priority Areas(2) Respect for Human
Rights

2nd meeting

Priority Areas(1) Providing Better
Products and Services

comprise the president and outside directors.

Social Activities● Group Risk Management Committee
Please see “Group Risk Management Committee” under “4–2 Management Approach” on page 18.
● Group ERM Committee
Positioned under the Executive Committee, this committee is charged with pursuing the steady and continuous growth of thegrates the management of profit, risk and capital on an economic value basis.
The committee chairperson is the executive officer in charge of the Group Planning Department and the vice chairpersons are theexecutive officers in charge of the Group Finance & Accounting Department and the Risk Management Department.
In fiscal 2017, the committee held 14 meetings and reported the results of deliberations to the Executive Committee, the GroupManagement Committee and the Board of Directors.

This committee was created to be subordinate to the Group Management Committee, with the objective of responding to IT andadministrative issues across the group. It met six times in fiscal 2017. The committee’s chair is the executive officer in charge ofthe Group Planning Department. The vice chair is the president of T&D Information Systems. The results of deliberations werereported to the Executive Committee, Group Management Committee, and Board of Directors. Starting in fiscal 2018, the com● Group Business Investment Committee (Fiscal 2017)
This committee was created under the Group Management Committee. Its objective is to achieve highly efficient and effective
business operations through the centralized promotion and management of the Group’s business investments. It met 16 times inof deliberations were reported to the Executive Committee, Group Management Committee, and Board of Directors. As of fiscal
2018, the committee was reorganized into the Group Business Investment Liaison Meeting.

Third-party
Opinionfiscal 2017. The committee is chaired by the executive officer in charge of the Business Development Department. The results

Management
Controlmittee was reorganized into the Group Information Technology Committee, placed below the Group Management Committee.

Governance andInternal Control● Group Information Technology & Administration Committee (Fiscal 2017)

Responsible
Institutional Investor

Group’s corporate value through the promotion and improvement of Enterprise Risk Management (ERM), a practice that inte-

Index
73

1–6 Internal Audit System
At the T&D Life Group, T&D Holdings and each of its subsidiaries have separate internal audit units operating inde-

Outline of the Group’s Internal Audit System: Internal Audit

pendently from other business units. These internal audit
units conduct audits of the operating units, specifically byexamining and evaluating the appropriateness and effectiveness of the internal management. Based on the evalu-

Audit & Supervisory
Board Members

Board of Directors
Submission of
agenda/Report

President

ation results, the internal audit units provide the objective

ReportReportadvice to help the effective achievement of management

Internal Auditing Department

objectives. Meanwhile, the Internal Auditing Department of

Operating units

Audit & monitoring/
Guidance & advice

T&D Holdings grasps the status of the internal management
system of the entire Group through auditing and monitoringof the internal audits implemented by its subsidiaries. The
Internal Auditing Department also provides guidance andadvice as necessary to strengthen the internal audit systems

Taiyo
Life

Daido
Life

T&D
Financial Life

T&D Asset
Management

Pet and Family
Small-amount
Short-term Insurance

Internal audit units of each companyof the entire Group.
Operating units of each company
Other Group companies

1–7 Internal Control● Creation of an Internal Control System
The Group’s core business of life insurance has a social and public nature. In light of this, the T&D Life Group considers it vital toproperly control its business execution and minimize the impact on management from unforeseen events occurring in the processof Group operations, to ensure the soundness and adequacy of its operations and respond to its social responsibilities.
In accordance with this consideration, T&D Holdings and its directly owned subsidiaries implement internal control systems pursuant to Article 362, Paragraph 4, Item 6 of the Companies Act. Moreover, the boards of directors of each company continuously
work to improve and strengthen their internal control systems, including periodically monitoring the preparedness and operational
status of these systems, confirming their adequacy, and making revisions as necessary.
● Response to the Internal Control Reporting System
With regard to the internal control reporting system pursuant to the Financial Instruments and Exchange Act, the Group builds
internal controls necessary for ensuring the trustworthiness of securities reports and other financial reports. Managers personallyevaluate and report on its effectiveness. Following these process, a certified public accountant or other outside Accounting auditor audits the suitability of this assessment.

2. Disclosure of Information to Shareholders and Investors
2–1 Shareholder Return Policy
T&D Holdings’ basic policy is to provide stable returns to shareholders as part of enhancing shareholder value, while retaining
sufficient internal reserves to ensure the management soundness of T&D Holdings and its Group companies. On this basis, T&D
Holdings will return profits to shareholders by paying stable cash dividends and conducting flexible share buybacks.

74Top Message/
Organizational Profile

2–2 Information Disclosure

CSR Management

T&D works proactively to disclose information to all stakeholders so that they can understand the current situation and futurebusiness development of the T&D Life Group.
● Annual Reports
Annual reports are issued to investors, shareholders, and other stakeholders. They are integrated publications that aim to provide fuller and more comprehensive disclosure of non-financial information. They communicate the various activities of the
T&D Life Group in a systematic manner.

● Shareholder Newsletters
The newsletters that we have sent out to our shareholders reporting our business performance and circumstances along withvarious topics have been posted on our website.

WEB or more details about these reports, please visit “IR Library” under “Investor Relations” on our website.
F
http://www.td-holdings.co.jp/en/ir/document/

Priority Areas(2) Respect for Human
Rights● Annual Securities Report
Annual securities reports and suchlike made and submitted based on the provisions of the Financial Instruments and Exchange
Act have been posted on our website.

Priority Areas(1) Providing Better
Products and Services● Disclosure Documents
The disclosure documents of each company that have been produced in accordance with the Insurance Business Act of Japan
have been posted on our website.

2–3 IR Activities
to make continuous and comprehensible information disclosure on the T&D Life Group’s management environment, businessstrategies and financial situations. More specifically, we hold business results briefings, teleconferences, in-person meetings
for institutional investors, presentations for individual investors and actively engage in exchanging opinions with securities analysts. Valuable feedback from investors received through IR activities is regularly communicated to the management team.

Priority Areas(3) Global Environmental
Protection

T&D Holdings proactively engages in IR activities based on the principles of timeliness, fairness, and accuracy. It also works● Details of Activities
Social Activities

Main Activities《Presentations for Individual Investors》
We held briefing sessions for individual investors where the director in charge of IR, other officers and managers acted as presenters.

《IR Information Posted on Our Website》
On our website, we have posted IR information for individual investors, financial information, timely disclosure materials otherthan financial information, IR presentation materials, and video and audio materials of IR presentations and teleconferences.

T&D Holdings views Shareholders’ Meetings as important opportunities for communicating with its shareholders and endeavors
to make these events sufficiently accessible and open to all shareholders. Prior to the Shareholders’ Meeting, we strive to send

Management
Control

2–4 Shareholders’ Meeting

Governance andInternal Control《Presentations for Overseas Investors》
In Europe, the US and Asia, the president and the director in charge of IR made individual visits to overseas institutional investors, and also conducted individual meetings such as conferences for overseas institutional investors organized by securities companies.

Responsible
Institutional Investor《Presentations for Institutional Investors and Securities Analysts》
We held conference calls chaired by the director in charge of IR for each quarterly earnings announcement and IR meetings by
the president for each interim and yearly earnings report. The president and the director in charge of IR also held individual meetings with institutional investors and securities analysts.

out the convocation notice as early as possible, posting it on our website before sending it out, and we prepare and disclose an
we have introduced an online electronic voting system to improve shareholder convenience. At the Shareholders’ Meetings, alarge screen is used to report on agenda items, displaying charts and images. In the Q&A session that follows, the directors

Third-party
OpinionEnglish translation on our website so that shareholders can sufficiently examine the items for resolution in advance. In addition,

Index

respond to questions and opinions from the floor respectfully and accurately, with the intention of enhancing shareholders’ understanding of our business.

75

2–5 Shareholders

102-5● Proportion of Shares Held (as of March 31, 2018)
Shareholder category
No. of shares held
(1,000 shares)
Proportion of shares held(%)

Governments
Financialand local
institutions
public bodies

Financial
product
dealers

Other
Foreigncorporations corporations

Individuals
and others

Total

1

195,056

9,905

119,764

261,168

69,103655,000

0.00

29.79

1.51

18.28

39.87

10.55

100.00● Principal Shareholders (as of March 31, 2018)
Name of shareholders
Japan Trustee Services Bank, Ltd. (Trust Account)

Number of shares held
(1,000 shares)

Percentage of total
shares outstanding (%)

38,220

6.14
5.95

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

37,020Japan Trustee Services Bank, Ltd. (Trust Account 9)

14,045

2.26

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

12,906

2.07

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

11,656

1.87
1.68

Japan Trustee Services Bank, Ltd. (Trust Account 7)

10,463

STATE STREET BANK WEST CLIENT – TREATY 505234

9,839

1.58

STATE STREET BANK AND TRUST COMPANY

8,693

1.40

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

8,661

1.39

Japan Trustee Services Bank, Ltd. (Trust Account 2)
Total

8,511

1.37

160,018

25.72

Notes: 1. The Company holds 32,802 thousand shares of treasury stock, but this is excluded from the list of principal shareholders above. The percentage
of total shares outstanding is also calculated minus treasury shares.
2. The Bank of Tokyo-Mitsubishi UFJ, Ltd. was renamed MUFG Bank, Ltd. on April 1, 2018.

76

1. ERM

102-11Top Message/
Organizational Profile

IX Management Control

CSR Management

1–1 Promotion of ERM Approach

DO

Formulating
management plan

Priority Areas(3) Global Environmental
Protection

PLAN

Implementing
planned initiatives

Soundness(Capital efficiency)

Profitability(Capital adequacy)

CapitalIntegrated
management

ACTION

Profits

CHECK

Monitoring progress ofplanned initiatives

102-11

103-2

103-3

205-2

2–1 Basic Concept for Risk Management

Third-party
OpinionIndex

At the T&D Life Group, T&D Holdings has formulated a Group Risk Management Policy setting forth the Group’s basic approach
to risk management and, based on this policy, the three life insurance companies 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 reports, regularly and as required, on risks assessed using uniform economic value-based risk management indicators,
from the three life 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 reports on these risks to the Board of Directors and provides guidance and advice to the Group companies as necessary, thereby ensuring that proper risk control is implemented at eachcompany and strengthening the risk management system for the entire Group.

Management
Control

2. Risk Management

Governance andInternal Control● 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 Life Group promotes the integrated risk management approach to achieve the management objectives by quantifying the risks affecting theGroup by type of risks and assessing the impacts when making losses, and also by controlling all the risks associated with its
operations, including unquantifiable risks.

Responsible
Institutional Investor

Reviewing
management plan

Social Activities

Risk

Priority Areas(2) Respect for Human
Rights● PDCA Cycle

Priority Areas(1) Providing Better
Products and Services

ERM stands for Enterprise Risk Management and refers to a strategic method of corporate management that seeks to maximize
corporate value and profits while ensuring the soundness of 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 to increase 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 decision-making,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 the committee providing leadership in promoting ERM throughout the Group, we will enhance the Group’s corporate value in a stable andcontinuous manner while maintaining a sound business 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 terms of 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 is reviewed and revised as necessary (Act).

77

2–2 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

Outline of the Group’s Risk Management Systema key priority issue in order to ensure sound and adequate
business management. Under overall control by the holding
company, T&D Holdings, each Group company implements
the necessary risk management suited to their respective
business model based on the principle of self-responsibility.

Audit & Supervisory Board Members

Board of Directors

Audit & Supervisory Board

Executive Committee

Group Risk Management Committee

Risk Management Department
Guidance& advice

Deliberation& reporting
Taiyo
Life

Daido
Life

Internal
audit
Pet and

FamilyT&D
T&D Asset Small-amountFinancial Life Management Short-term
Insurance

Other Group companies

2–3 Risk Classification and Responses
The T&D Life Group classifies major management risks as shown below. Risk management policies have been established foreach of these risks, and efforts are made to prevent these risks from occurring or to confine them within certain acceptable levels.
Insurance Underwriting Risk

Investment Risk

Liquidity Risk

Operational Risk*

Reputation Risk

Affiliate-related Risk

* Operational risks are classified into sub-categories, i.e. administrative risk, system risk, legal risk, labor and personnel risk, and hazard risk, and are managed separately.
Please visit the T&D Holdings website for details of risk classification and measures taken.
WEB

http://www.td-holdings.co.jp/en/company/governance/risk.html

2–4 Risk Awareness and Assessment (risk profile)

205-1

The T&D Life Group uses a risk profile* to comprehensively categorize risks surrounding the Group, in order to respond toincreasingly diverse and complex risks. We comprehensively identify risks by category, ascertain and assess them, and use themto prioritize initiatives in light of comprehensive factors including severity, impact, and the degree to which they are under control. The risks are reflected in management planning as necessary. As a rule, we review our risk profiles twice a year in order toaccurately recognize and ascertain emerging severe risks, as well as major changes to previously recognized risks. We report ourfindings to the Group Risk Management Committee and Board of Directors.
* Risk profile is a general risk management tool to characterize risks from various factors such as nature and magnitude.
* The T&D Life Group’s risk profile includes responding to issues surrounding sustainability, including the environment, society (human rights, labor practices and corruption prevention) and governance.

2–5 Risk Review (ESR)The T&D Life Group has specified a statutory solvency margin ratio, as well as an economic solvency ratio (ESR), which is arisk-management index based on economic value. These are concrete quantitative indicators of risk appetite and tolerance. ESR
is calculated as net assets (surplus) based on economic value, divided by economic capital (EC), which is the risk level based on
economic value, calculated using an internal model including insurance underwriting risk, asset management risk, and operationalrisk. We manage risk on the basis of economic value through such means as controlling EC to stay within a certain range of thesurplus. ESR is managed on a monthly basis. The statutory solvency margin ratio is managed on a quarterly basis. As with otherrisk reviews, these are reported to the Group Risk Management Committee and Board of Directors.

78

Top Message/
Organizational Profile

2–6 Optimization of the Risk Portfolio (Risk Measurement by Internal Models and Complemental Efforts by Stress Test)

CSR Management

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

2–7 Cyber Security Initiatives

103-2

103-3

418-1

assets in compliance with laws and regulations. This specifically involves protecting information assets from increasingly sophisticated cyber threats. To fulfill our social responsibilities as a company engaged in the life insurance business, we have madeengagement in cyber security mandatory for all executives and employees.
In particular, in order to provide even safer services to customers, we utilize security tools to conduct round-the-clock monitoring of cyber threats that target financial institutions, which have increased in recent years in both frequency and sophistication.
We have also established the cross-organization Group Computer Security Incident Response Team (CSIRT) along with compaaddition, we conduct Group- and company-level drills and participate in industry-wide drills and training. Issues identified throughthese drills are reflected in our response procedures and manuals to strengthen our real-world responsiveness.
Along with conducting multi-layered security measures (entrance, exit, and internal), we regularly receive diagnostic security evaluations from independent institutions and promptly implement the necessary measures.
All of the Group’s corporate officers receive training with outside experts on the most recent trends in cyber security to raise

Priority Areas(2) Respect for Human
Rightsny-level CSIRT teams, which collect information, conduct analysis and implement measures in connection with cyber attacks. In

Priority Areas(1) Providing Better
Products and Services

The T&D Life Group recognizes that one of the important tasks of management is properly protecting and managing information

their risk awareness. Executives and employees also receive training on information security and cyber security (group training,
The Internal Auditing Department validates whether these frameworks are functioning effectively, and the results are reported
to the Board of Directors.
● Protection of Personal Information
T&D Holdings and its three life insurance companies and other Group members have formulated
Personal Information Protection Declarations (privacy policies), which they publicly disclose on their

Priority Areas(3) Global Environmental
Protection

e-learning) and drills are continually conducted on handling suspicious email in order to further raise security literacy.

Social Activities

websites. In addition, T&D Information System, a Group company that supports the information system of the T&D Life Group, properly handles various data, including personal information, and keeps it
strictly confidential. In May 2005, T&D Information System obtained Privacy Mark certification, which
is given to the enterprises that take adequate measures to protect personal information. In addition, in
March 2007, the company acquired a certification for ISO 27001, an international standard for informaThe information service firm has continued to renew both of these certifications as part of its efforts tomaintain a high level of information security.

2–8 Crisis Management

Responsible
Institutional Investor

tion security management systems, and in March 2015, it moved to the new standard.

The T&D Life Group has formulated the Rules on the Group’s Crisis Management, which address basic matters related to theon securing the lives and safety of our staff, and then on continuity or early restart of insurance claims and benefit 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 take appropriate actions.

Governance andInternal Control

Group’s response to crisis situations. In case of major natural disasters or similar emergency events, the rules place top priority

The Group has also implemented a number of measures to improve the effectiveness of crisis management. These include intropreparation for a possible largescale disaster.

Management
Controlducing a system for confirming the safety of our executives and employees individually and Group-wide emergency drills as a

Third-party
OpinionIndex
79

3. Compliance

103-2

103-3

205-2

3–1 Our Concept of Compliance
The T&D Life Group positions legal compliance as a key management issue. The CSR policy, “We will strictly observe laws, regulations and rules. and act in a sincere and serious manner with high ethical standards,” is stated in the T&D Life Group CSR
Charter. We work to make all Group executives and employees thoroughly aware of the T&D Life Group Compliance Code of
Conduct, and promote compliance based on the recognition that compliance is the core of promoting CSR and an essential element of it.

3–2 Group Compliance Promotion Structure
T&D Holdings has established a compliance promo-

Outline of the Group Compliance Promotion Structuretion structure based on the T&D Life Group Basic Policy
for Strengthening the Compliance Structure. The Group
Compliance Committee was established to oversee andimprove the Group’s compliance arrangements. T&D

Board of Directors

Holdings also has a Risk Management Department, which

Audit & Supervisory Board Members
Audit & Supervisory Board

Group Compliance Committee

has overall responsibility for promoting compliance. In coordination with the compliance units of the Group’s three life

Risk Management Department

insurance companies and other Group members, this depart-

Deliberation& reporting

ment performs regular monitoring and provides guidance
and advice. The Group’s three life insurance companies andother Group members also have a compliance promotion
system mainly consisting of a compliance committee and acompliance control department.

Taiyo
Life

Daido
Life

Guidance& advice

Internal
audit
Pet and

FamilyT&D
T&D Asset Small-amountFinancial Life Management Short-term
Insurance

Other Group companies

3–3 Compliance Promotion Activities● Compliance Programs
Each Group company in the T&D Life Group takes measures to raise awareness of compliance in a way suitable for the respective companies in terms of size and business characteristics, based on the Group’s basic compliance policies. For example, T&D
Holdings and the Group’s three life insurance companies as well as other Group members have put in place their compliance programs as detailed and actionable plans aiming at having all executives and employees act in compliance with laws and regulations, and compliance training is provided to reinforce compliance in the course of business operations.
● Compliance Manual
Each company in the T&D Life Group creates compliance manuals for each category targeted, including sales representatives,
administrative personnel, and agents. These guidelines serve as a reference for day-to-day operations. At the same time, they areused as teaching material for compliance training.

80Top Message/
Organizational Profile

3–4 Preventing Bribery and Corruption

CSR Management

The T&D Life Group states the following in the T&D Life Group Compliance Code of Conduct: “We shall work to prevent corruption in our relationships with business counterparts, civil servants, and other parties by refraining from providing or receiving any business entertainment within reasonable bounds under normal social conventions, as well as refraining from giving or
receiving gifts, in connection with our business activities worldwide.” (See p. 10.) In addition to preventing bribery, we are ensuring thorough awareness by all executives and employees toward preventing corruption. This includes measures against money
laundering and prevention of misappropriation and diversion of funds, using such means as a compliance program and compliciplinary action. All scandals (including concerns over possible scandals), including bribery and corruption, are reported to theBoard of Directors.
When making a new business investment, checks from the perspective of preventing bribery and corruption are added to therisk assessment and subjected to appropriate review. As of fiscal 2017, no scandals or legal disputes relating to bribery or corruption had occurred.

[Risks Related to Bribery and Corruption]
In today’s world, bribery and corruption impede the development and economic growth of the country or region in which
they occur. Bribery and corruption not only have an undue negative impact on poor regions, they also give rise to serious
legal and reputational risks for companies. Many of the acts that involve corruption, such as bribery, are not only illegal

Priority Areas(2) Respect for Human
Rights《Extract from a Compliance Manual》

Priority Areas(1) Providing Better
Products and Services

ance manuals. Bribery and corruption are also stipulated as extremely malicious and severely impacting criminal statutes for dis-in the place where a company performs them, but there is an increasing number of cases where these acts are also illeinvolved with corruption by the final judgment of the court concerned, there are many cases in which the reputation of
the company has been damaged merely because it was suspected of corruption. A company must also pay attention to
the fact that they not only take responsibility for their own actions but also for the actions of any agents that are conducting business on their behalf in other countries.

Priority Areas(3) Global Environmental
Protection

gal by the laws of the home country of the company. As regards reputational risks, even if a company is judged to not be

Social Activities

3–5 Tax Policy
Strict compliance with laws and regulations is clearly stated by the T&D Life Group in its T&D Life Group CSR Charter and T&D
Life Group Compliance Code of Conduct. Regarding tax affairs, on the basis of these CSR policies, we comply with laws and regulations and act in good faith to make adequate tax filings and payments.

At the T&D Life Group, each of the Group’s three life insurance companies and other Group members used to operate theirown whistleblower systems. In April 2005, however, the T&D Life Group Helpline was established for use by all executives andemployees in the Group. Compli ance-related reports are submitted by phone or online through an external independent company
are violations or suspected violations of internal rules, or that damage the credibility or prestige of the Group.
● T&D Life Group Helpline
The T&D Life Group Helpline has rules in place that prohibit any disadvantageous treatment of whistleblowers who use the helpline. We strive to build an effective system for internal reporting by enabling whistleblowers to make reports by phone or online
reports are reported to the Audit & Supervisory Board members and executive management.
● Number of Calls Received by the T&D Life Group Helpline
188

FY2016186

FY2017

269

Third-party
Opinion

FY2015

Management
Controlthrough an external reporting company, and making reports anonymously. The content and results of surveys of whistleblower

Governance andInternal Control

to help preserve anonymity. The helpline provides a venue for reporting actions that are problematic as regards compliance, that

Responsible
Institutional Investor

3–6 Whistleblower System

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

81Third-party Opinion
I submit this Third-party Opinion based on the CR Report 2018 regarding the CSR initiatives and related information disclosureof the T&D Life Group.

1. Contributions to Achieving SDGs
It has been over three years since “Transforming our world: the 2030 Agenda for Sustainable Development” was adopted as
the outcome document of the United Nations Sustainable Development Summit 2015. The 17 Sustainable Development Goals(SDGs) and 169 targets at the heart of the agenda have been gaining recognition recently in Japan, thanks to efforts such as thegovernment’s “Japan SDGs Award,” its selection of SDGs “Future Cities,” and the inclusion of the SDGs in the Basic Policy
on Economic and Fiscal Management and Reform 2018 and the Investments for the Future Strategy 2018. The industrial sector has also shown a surge of interest in contributing to the achievement of the SDGs. Notably, the Japan Business Federation(Keidanren) revised its Charter of Corporate Behavior as a key element in delivering on the SDGs through the realization of Society
5.0. I read with interest the section on “Contribution to SDGs,” beginning on page 21 of the CR Report 2018. I was particularly
impressed with the careful analysis of the relationship between the fields covered by the “T&D Life Group CSR Charter,” the initiatives of the “T&D Life Group Medium-Term Management Plan FY 2016-2018,” and the 17 SDGs.
In addition to linking T&D Life Group’s current policies and action to the 17 SDGs, I would like to see it take part in helping achieve
the SDGs in the future, as a starting point for coming up with new initiatives. Taking on that challenge would give the Group
opportunities for innovation in insurance products and asset management, and give clues on ways to enhance the information
provided to customers.

2. Role as Universal Owner and Integration of Priority Areas
The T&D Life Group has always recognized the need to have a better effect on society and the environment and to contribute to
the realization of a sustainable society through its investment and lending activities. The fact that Taiyo Life was the first Japaneselife insurance company to sign the Principles for Responsible Investment (PRI) in March 2007 illustrates the Group’s commitment.
The role of institutional investors as universal owners has come into sharper focus in recent years. “Universal owners” refers toinvestors who have vast sums under management and engage in diversified investment in a wide range of assets and securities
from a medium- to long-term perspective. Public pension funds are a typical example. These investors are not only interested in
the financial results and stock prices of individual companies, but are also deeply concerned with whether the economy is growing sustainably and whether the market is functioning soundly. This is because they cannot concentrate their investments on specific stocks and are therefore aware of the importance of investment performance over a span of two to three decades. In otherwords, any factors that drive down overall macroeconomic productivity or damage assets under management across a period of 20
to 30 years are of the utmost concern for universal owners. They have a clear motivation to prevent the emergence of such factors.
This document is reminder that it is only rational for life insurance companies to work to minimize negative externalities (environmental and social problems, etc.), and to promote sustainable and stable growth of the market as a whole. It has often been
pointed out that the physical damage caused by climate change threatens the business model of non-life insurance. However,the fact that climate change has a negative effect on human health has also become clear in recent years. The World HealthOrganization (WHO) estimates that between 2030 and 2050 there will be a risk that approximately 250,000 people a year could
die as a result of malnutrition, infectious diseases, diarrhea, heat stress, and cardiovascular or respiratory illnesses brought on by
climate change. This also puts climate change in the category of life-threatening human rights issues. There is already a steadystream of lawsuits being launched in the U.S. based on health problems caused by climate change. It goes without saying that if
people’s health deteriorates, the life insurance business model would also come under threat.
I realize that “Global Environmental Protection,” “Respect for Human Rights,” and “Providing Better Products and Services”
are closely linked. I expect the T&D Life Group to enhance its awareness as a universal owner, and to promote divestment andengagement to reduce and avoid negative economic externalities, including climate change.
Eiichiro Adachi Counselor, The Japan Research Institute, Limited
Graduated from the Faculty of Economics at Hitotsubashi University in 1986. Joined The Japan Research Institute,
Limited (JRI) in 1990, where he served in the management strategy research and technology research divisions
before assuming his current post. He currently oversees operation of industrial research and corporate evaluation from the perspective of corporate social responsibility at JRI’s ESG Research Center. In 2003 and 2004, heworked on the 15th Corporate White Paper published by the Japan Association of Corporate Executives. Then,he was a member of the Association’s Socially Responsible Management Promotion Committee working group.
From March 2005 to May 2009, he was involved in formulating ISO 26000, the international standard for social
responsibility for organizations, as a national expert in the ISO 26000 Working Group. He currently serves as amember of Mitsubishi Corporation’s Sustainability Advisory Committee and as a member of the Advisory Boardof The Research Institute for Local Public Transport. He is the author/co-author of titles including An Illustrated
Guide to Environmental Issues for Corporations (Toyo Keizai Inc., 1999), Business Growth Through Global Warming(Toyo Keizai Inc., 2007), Introduction to CSR for Employees (Dai-ichi Hoki, 2008), Introduction to Environmental
Management (Nikkei Publishing Inc., 2009), Introduction to Natural Capital (NTT Publishing, 2015), An ESG Reader
for Investors and Corporations (Nikkei Business Publications, 2016), The Complications of Corporate Governance
Reform (Kinzai, 2017), and The Business Person’s Guide to SDGs (Nikkei Business Publications, 2018).
82

GRI Standards

102-54

Publication Location(Titles of items on the report/web)

Disclosed Items

102-55Omission

Top Message/
Organizational Profile

Index GRI Standards
GRI 102:
GENERALDISCLOSURES2016

CSR Management

GENERAL DISCLOSURES
1. Organizational profile

102-3

Location of headquarters

I Message from the President/Organizational Profile▶1. Organizational Profile▶1–3 Corporate Profile (as of March
31, 2018)

102-4

Location of operations

I Message from the President/Organizational Profile▶1. Organizational Profile▶1–2 T&D Life Group Companies
and Foundations

102-5

Ownership and legal form

VIII Governance and Internal Control▶2. Disclosure ofInformation to Shareholders and Investors▶2–5 Shareholders

102-6Markets served

I Message from the President/Organizational Profile▶1. Organizational Profile▶1–2 T&D Life Group Companies
and Foundations

102-7

Scale of the organization

Annual Report 2017 (Integrated Edition)

102-8

Information on employees and otherworkers

I Message from the President/Organizational Profile▶1. Organizational Profile▶1–4 Number of Employees

102-9

Supply chain

I Message from the President/Organizational Profile▶2. Supply Chain▶2–1 Definition of Supply Chain

102-10Significant changes to the organization
N/A
and its supply chain

102-11

Precautionary Principle or approach

IX Management Control▶1. ERM▶2. Risk Management102-12External initiatives

II CSR Management▶1. CSR Basic Policy▶1–2 Principles That
the T&D Life Group Endorses and Supports

102-13

Membership of associations

I Message from the President/Organizational Profile▶1. Organizational Profile▶1–3 Corporate Profile (as of March
31, 2018)

102-14

Statement from senior decision-maker

I Message from the President/Organizational Profile▶Message
from the President

3. Ethics and integrity
102-16

Values, principles, standards, andnorms of behavior

II CSR Management▶1. CSR Basic Policy▶1–1 Philosophy and Policy of the T&D Life Group

Responsible
Institutional Investor

2. Strategy

Social Activities

Activities, brands, products, andservices

Priority Areas(3) Global Environmental
Protection

102-2

I Message from the President/Organizational Profile▶1. Organizational Profile▶1–1 Outline of the T&D LifeGroup’s Business
I Message from the President/Organizational Profile▶1. Organizational Profile▶1–2 T&D Life Group Companies
and Foundations

Priority Areas(2) Respect for Human
RightsI Message from the President/Organizational Profile▶1. Organizational Profile▶1–3 Corporate Profile (as of March
31, 2018)

Priority Areas(1) Providing Better
Products and Services

Name of the organization

102-1

4. Governance
Governance structure

VIII Governance and Internal Control▶1. Corporate Governance

5. Stakeholder engagement
II CSR Management▶7. Stakeholder Engagement102-41

Collective bargaining agreements

I Message from the President/Organizational Profile▶1. Organizational Profile▶1–5 Dialogue and Consultations
with Labor Unions

102-42

Identifying and selecting stakeholders

II CSR Management▶7. Stakeholder Engagement102-43

Approach to stakeholder engagement

II CSR Management▶7. Stakeholder Engagement
III Priority Areas (1) Providing Better Products and Services▶3. Providing Wholehearted Reassurance

Key topics and concerns raised

II CSR Management▶7. Stakeholder Engagement
III Priority Areas (1) Providing Better Products and Services▶4. Improving Customer Satisfaction
WEB CSR Library▶Other Initiatives▶Activities to Respond to
the Customer Feedback

102-44

Third-party
Opinion

List of stakeholder groups

Management
Control

102-40Governance andInternal Control

102-18

Index
83

GRI Standards

Publication Location(Titles of items on the report/web)

Disclosed Items

Omission

GENERAL DISCLOSURESGRI 102:
GENERALDISCLOSURES
2016

6. Reporting practice102-45

Entities included in the consolidated
financial statements

I Message from the President/Organizational Profile▶1. Organizational Profile▶1–2 T&D Life Group Companies
and Foundations

102-46

Defining report content and topic
Boundaries

II CSR Management▶5. CSR Priority Areas▶5–1 CSR Priority Areas (FY2016 to FY2018)

102-47

List of material topics

II CSR Management▶5. CSR Priority Areas▶5–1 CSR Priority Areas (FY2016 to FY2018)

102-48

Restatements of information

N/A

102-49Changes in reporting

N/A

102-50

Reporting period

About Corporate Responsibility Report 2018102-51

Date of most recent report

About Corporate Responsibility Report 2018102-52

Reporting cycle

About Corporate Responsibility Report 2018102-53

Contact point for questions regarding
the report

About Corporate Responsibility Report 2018102-54Claims of reporting in accordance withGRI Content Index
the GRI Standards

102-55

GRI content index

GRI Content Index

102-56External assurance

V Priority Areas (3) Global Environmental Protection▶3. Environmental Impact-reduction Initiatives▶3–5 Independent Assurance Report

Explanation of the material topic andits Boundary

II CSR Management▶5. CSR Priority Areas▶5–1 CSR Priority Areas (FY2016 to FY2018)Material Topics
Economic Performance
GRI 103:
Management
Approach 2016

103-1
103-2
103-3

GRI 201:
Economic
Performance 2016

The management approach and its
components
VIII Governance and Internal Control
Evaluation of the management approach

201-1

Direct economic value generated anddistributed

WEB CSR Library▶Organization Profile▶Financial Highlights
WEB CSR Library▶Other Initiatives▶Donations and Community
Investments

103-1

Explanation of the material topic andits Boundary

II CSR Management▶5. CSR Priority Areas▶5–1 CSR Priority Areas (FY2016 to FY2018)

Anti-corruption
GRI 103:
Management
Approach 2016

103-2
103-3
GRI 205:
Anti-corruption
2016

84

II CSR Management▶4. CSR Promotion Framework
The management approach and its
IX Management Control▶2. Risk Management
components▶3. Compliance
Evaluation of the management approach IX Management Control▶3. Compliance▶3–6 Whistleblower
System

205-1

Operations assessed for risks related to IX Management Control▶2. Risk Management
corruption▶2–4 Risk Recognition and Assessment (risk profile)“Total number andpercentage of operations
assessed for risks related
to corruption” are notdisclosed, as risks aremanaged by category.

205-2

Communication and training about
IX Management Control▶2. Risk Management
anti-corruption policies and procedures▶3. Compliance

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

205-3

Confirmed incidents of corruption andactions taken

N/APublication Location(Titles of items on the report/web)

Disclosed Items

Omission

Top Message/
Organizational Profile

GRI Standards

CSR Management

Material Topics
Anti-competitive Behavior
GRI 103:
Management
Approach 2016

103-1

103-2

GRI 206:
Anti-competitive
Behavior 2016

II CSR Management▶5. CSR Priority Areas▶5–1 CSR Priority Areas (FY2016 to FY2018)

II CSR Management▶4. CSR Promotion Framework
The management approach and its
IX Management Control▶2. Risk Management
components▶3. Compliance
Evaluation of the management approach IX Management Control▶3. Compliance▶3–6 Whistleblower
System206-1

Legal actions for anti-competitive
behavior, anti-trust, and monopoly
practices

N/A

103-1

Explanation of the material topic andits Boundary

II CSR Management▶5. CSR Priority Areas▶5–1 CSR Priority Areas (FY2016 to FY2018)

103-2

II CSR Management▶4. CSR Promotion Framework
The management approach and its▶6. Progress of CSR Activities
components
V Priority Areas (3) Global Environmental Protection
Evaluation of the management approach▶1. Basic Concept and 2. Promotion Framework

Priority Areas(1) Providing Better
Products and Services

103-3

Explanation of the material topic andits Boundary

Materials

103-3
GRI 301:
Materials 2016

301-1

Materials used by weight or volume

V Priority Areas (3) Global Environmental Protection▶3. Environmental Impact-reduction Initiatives

103-1

Explanation of the material topic andits Boundary

II CSR Management▶5. CSR Priority Areas▶5–1 CSR Priority Areas (FY2016 to FY2018)

103-2

II CSR Management▶4. CSR Promotion Framework
The management approach and its▶6. Progress of CSR Activities
components
V Priority Areas (3) Global Environmental Protection
Evaluation of the management approach▶1. Basic Concept and 2. Promotion Framework

Priority Areas(2) Respect for Human
RightsGRI 103:
Management
Approach 2016

Energy103-3
GRI 302:
Energy 2016

Energy consumption within theorganization

V Priority Areas (3) Global Environmental Protection▶3. Environmental Impact-reduction Initiatives

302-3

Energy intensity

V Priority Areas (3) Global Environmental Protection▶3. Environmental Impact-reduction Initiatives

103-1

Explanation of the material topic andits Boundary

II CSR Management▶5. CSR Priority Areas▶5–1 CSR Priority Areas (FY2016 to FY2018)

Social Activities

302-1

Priority Areas(3) Global Environmental
Protection

GRI 103:
Management
Approach 2016

Water
GRI 103:
Management
Approach 2016

103-3

The management approach and its
II CSR Management▶4. CSR Promotion Framework
components
V Priority Areas (3) Global Environmental Protection
Evaluation of the management approach ▶1. Basic Concept and 2. Promotion Framework

GRI 303:
Water 2016
Water withdrawal by source

V Priority Areas (3) Global Environmental Protection▶3. Environmental Impact-reduction Initiatives

303-3

Water recycled and reused

V Priority Areas (3) Global Environmental Protection▶3. Environmental Impact-reduction Initiatives

103-1

Explanation of the material topic andits Boundary

II CSR Management▶5. CSR Priority Areas▶5–1 CSR Priority Areas (FY2016 to FY2018)

Biodiversity
GRI 103:
Management
Approach 2016

Habitats protected or restored

V Priority Areas (3) Global Environmental Protection▶4. Forest Conservation Activities

103-1

Explanation of the material topic andits Boundary

II CSR Management▶5. CSR Priority Areas▶5–1 CSR Priority Areas (FY2016 to FY2018)

Emissions
GRI 103:
Management
Approach 2016

103-2

Index

103-3

The management approach and its
II CSR Management▶4. CSR Promotion Framework
components
V Priority Areas (3) Global Environmental Protection
Evaluation of the management approach ▶1. Basic Concept and 2. Promotion Framework

Third-party
Opinion

304-3

Management
Control

GRI 304:
Biodiversity 2016

103-3

The management approach and its
components
II CSR Managementt▶4. CSR Promotion Framework
Evaluation of the management approach

103-2

Governance andInternal Control

303-1

Water is withdrawn from“water supplies of thelocal governments orother public and private
water facilities.”

Responsible
Institutional Investor

103-2

85

GRI Standards

Publication Location(Titles of items on the report/web)

Disclosed Items

Omission

Material Topics
GRI 305:
Emissions 2016

305-1

Direct (Scope 1) GHG emissions

V Priority Areas (3) Global Environmental Protection▶3. Environmental Impact-reduction Initiatives

305-2

Energy indirect (Scope 2) GHG
emissions

V Priority Areas (3) Global Environmental Protection▶3. Environmental Impact-reduction Initiatives

305-3

Other indirect (Scope 3) GHG emissions

V Priority Areas (3) Global Environmental Protection▶3. Environmental Impact-reduction Initiatives

103-1

Explanation of the material topic andits Boundary

II CSR Management▶5. CSR Priority Areas▶5–1 CSR Priority Areas (FY2016 to FY2018)

Effluents and Waste
GRI 103:
Management
Approach 2016

103-2
103-3

GRI 306:
Effluents andWaste 2016306-2

The management approach and its
II CSR Management▶4. CSR Promotion Framework
components
V Priority Areas (3) Global Environmental Protection
Evaluation of the management approach ▶1. Basic Concept and 2. Promotion Framework

Waste by type and disposal method

V Priority Areas (3) Global Environmental Protection▶3. Environmental Impact-reduction Initiatives

Explanation of the material topic andits Boundary

II CSR Management▶5. CSR Priority Areas▶5–1 CSR Priority Areas (FY2016 to FY2018)

All waste is “non-hazardous waste” and disposedof in accordance with the“disposal methods of thelocal governments.”

Environmental Compliance
GRI 103:
Management
Approach 2016

103-1

103-2
103-3
GRI 307:
Environmental
Compliance 2016

II CSR Management▶4. CSR Promotion Framework
The management approach and its
V Priority Areas (3) Global Environmental Protection
components▶1. Basic Concept and 2. Promotion Framework
Evaluation of the management approach IX Management Control▶3. Compliance▶3–6 Whistleblower System

307-1

Non-compliance with environmental
laws and regulations

N/A

103-1

Explanation of the material topic andits Boundary

II CSR Management▶5. CSR Priority Areas▶5–1 CSR Priority Areas (FY2016 to FY2018)

Employment
GRI 103:
Management
Approach 2016

103-2
103-3
GRI 401:
Employment 2016
401-1

401-3

II CSR Management▶4. CSR Promotion Framework
The management approach and its
IV Priority Areas (2) Respect for Human Rights
components▶4. Worker-friendly Work Environment
Evaluation of the management approach IX Management Control▶3. Compliance▶3–6 Whistleblower System
New employee hires and employee
turnover

Parental leave

I Message from the President/Organizational Profile▶1. Organizational Profile▶1–4 Number of Employees
IV Priority Areas (2) Respect for Human Rights▶4. Worker-friendly Work Environment▶4–1 Work-Life
Balance Initiatives
IV Priority Areas (2) Respect for Human Rights▶4. Worker-friendly Work Environment▶4–1 Work-Life
Balance Initiatives

Matters required forreporting include items
awaiting the collectionof information. The items
will be disclosed withina few years.

Occupational Health and Safety
GRI 103:
Management
Approach 2016

103-1

103-2
103-3
GRI 403:
Occupational
Health and Safety
2016

86

403-2

Explanation of the material topic andits Boundary

II CSR Management▶5. CSR Priority Areas▶5–1 CSR Priority Areas (FY2016 to FY2018)

II CSR Management▶4. CSR Promotion Framework
The management approach and its
IV Priority Areas (2) Respect for Human Rights
components▶5. Health Promotion for Employees
Evaluation of the management approach IX Management Control▶3. Compliance▶3–6 Whistleblower System
Types of injury and rates of injury,
occupational diseases, lost days,
and absenteeism, and number ofwork-related fatalities

WEB CSR Library▶Initiatives to address the working environment▶Occurrence of Occupational Accidents

Managed based on thenumber of occupational
accidents.

Disclosed Items

Publication Location(Titles of items on the report/web)

Omission

Top Message/
Organizational Profile

GRI Standards

CSR Management

Material Topics
Training and Education
GRI 103:
Management
Approach 2016

103-1

Explanation of the material topic andits Boundary

103-2

II CSR Management▶4. CSR Promotion Framework▶6. Progress of CSR Activities
The management approach and its
IV Priority Areas (2) Respect for Human Rights▶2. Utilization
components
and Development of Human Resources
Evaluation of the management approach
IX Management Control▶3. Compliance▶3–6 Whistleblower
SystemGRI 404:
Training and
Education 2016
Average hours of training per year per
employee

404-2

Programs for upgrading employee skills IV Priority Areas (2) Respect for Human Rights
and transition assistance programs▶2. Utilization and Development of Human Resources

WEB CSR Library▶Initiatives to address the working environment▶Education and Training

Diversity and Equal Opportunity
103-1

Explanation of the material topic andits Boundary

103-2

II CSR Management▶4. CSR Promotion Framework▶6. Progress of CSR Activities
The management approach and its
IV Priority Areas (2) Respect for Human Rights▶3. Diversity
components
Promotion Initiatives
Evaluation of the management approach
IX Management Control▶3. Compliance▶3–6 Whistleblower
System103-3

Diversity of governance bodies andemployees

VIII Governance and Internal Control▶1. Corporate Governance
IV Priority Areas (2) Respect for Human Rights▶4. Workerfriendly Work Environment▶4–1 Work-Life Balance Initiatives

103-1

Explanation of the material topic andits Boundary

II CSR Management▶5. CSR Priority Areas▶5–1 CSR Priority Areas (FY2016 to FY2018)

103-2

II CSR Management▶4. CSR Promotion Framework
The management approach and its▶6. Progress of CSR Activities
components
IX Management Control▶3. Compliance▶3–6 Whistleblower
Evaluation of the management approach
SystemSocial Activities

GRI 405:
Diversity and Equal 405-1
Opportunity 2016

II CSR Management▶5. CSR Priority Areas▶5–1 CSR Priority Areas (FY2016 to FY2018)

Priority Areas(3) Global Environmental
Protection

GRI 103:
Management
Approach 2016

Priority Areas(2) Respect for Human
Rights404-1

There are no differencesby gender in the indicators. Due to the difficulty of
categorizing “occupational
training/education andtraining” from a large number of training programs,
indicators by employee category are not disclosed.

Priority Areas(1) Providing Better
Products and Services

103-3

II CSR Management▶5. CSR Priority Areas▶5–1 CSR Priority Areas (FY2016 to FY2018)

Human Rights Assessment
GRI 103:
Management
Approach 2016

GRI 412:
Human Rights
Assessment 2016

Employee training on human rights poli- IV Priority Areas (2) Respect for Human Rights▶3. Diversity
cies or procedures
Promotion Initiatives▶3–2 Human Rights Education

103-1

Explanation of the material topic andits Boundary

Local Communities
GRI 103:
Management
Approach 2016

103-2

The management approach and its
II CSR Management▶4. CSR Promotion Framework
components
VI Social Activities
Evaluation of the management approach

GRI 413:
Local Communities
2016
Operations with local community
engagement, impact assessments, and VI Social Activities
development programs

Third-party
Opinion

413-1

Index

The Group has a single
segment. Accordingly,“percentage of operations with implemented
local community engagement,impact assessments
and development programs (using such items
as the ones indicatedbelow)” is not disclosed.

Management
Control

103-3

II CSR Management▶5. CSR Priority Areas▶5–1 CSR Priority Areas (FY2016 to FY2018)

Governance andInternal Control

412-2

Human rights training is
conducted for all employees. “Total hours of
employee training” arenot disclosed.

Responsible
Institutional Investor

103-3

87

GRI Standards

Publication Location(Titles of items on the report/web)

Disclosed Items

Omission

Material Topics
Supplier Social Assessment
GRI 103:
Management
Approach 2016

103-1
103-2
103-3

GRI 414:
Supplier Social
Assessment 2016

Explanation of the material topic andits Boundary

II CSR Management▶5. CSR Priority Areas▶5–1 CSR Priority Areas (FY2016 to FY2018)

The management approach and its
II CSR Management▶4. CSR Promotion Framework
components
IX Management Control▶3. Compliance▶3–6 Whistleblower
Evaluation of the management approach System

414-1

New suppliers that were screenedusing social criteria

I Message from the President/Organizational Profile▶2. Supply Chain▶2–2 Cooperation with Suppliers

103-1

Explanation of the material topic andits Boundary

II CSR Management▶5. CSR Priority Areas▶5–1 CSR Priority Areas (FY2016 to FY2018)

Customer Privacy
GRI 103:
Management
Approach 2016

103-2
103-3
GRI 418:
Customer Privacy
2016

418-1

II CSR Management▶4. CSR Promotion Framework
The management approach and its
IX Management Control▶2. Risk Management
components▶2–7 Cybersecurity Initiatives
Evaluation of the management approach IX Management Control▶3. Compliance▶3–6 Whistleblower
SystemSubstantiated complaints concerning breaches of customer privacy andlosses of customer data

IV Priority Areas (2) Respect for Human Rights▶1. Basic Concept
IX Management Control▶2. Risk Management▶2–7 Cybersecurity Initiatives

Explanation of the material topic andits Boundary

II CSR Management▶5. CSR Priority Areas▶5–1 CSR Priority Areas (FY2016 to FY2018)

Socioeconomic Compliance
GRI 103:
Management
Approach 2016

103-1

103-2
103-3
GRI 419:
Socioeconomic
Compliance 2016

419-1

II CSR Management▶4. CSR Promotion Framework
The management approach and its
IX Management Control▶2. Risk Management
components▶3. Compliance
Evaluation of the management approach IX Management Control▶3. Compliance▶3–6 Whistleblower
SystemNon-compliance with laws and regulaN/A
tions in the social and economic area

Better Products and Services
GRI 103:
Management
Approach 2016

103-1

103-2
103-3

Explanation of the material topic andits Boundary

II CSR Management▶5. CSR Priority Areas▶5–1 CSR Priority Areas (FY2016 to FY2018)

II CSR Management▶4. CSR Promotion Framework
III Priority Areas (1) Providing Better Products and Services▶1. Basic Concept
The management approach and its▶2. Offering Products and Services That Address Social Needs
components▶3. Providing Wholehearted Reassurance
Evaluation of the management approach▶4. Improving Customer Satisfaction
WEB CSR Library▶Other Initiatives▶Activities to Respond to
the Customer Feedback

Health Promotion of Community and Employees
GRI 103:
Management
Approach 2016

103-1

103-2
103-3

88

Explanation of the material topic andits Boundary

II CSR Management▶5. CSR Priority Areas▶5–1 CSR Priority Areas (FY2016 to FY2018)

II CSR Management▶4. CSR Promotion Framework
III Priority Areas (1) Providing Better Products and Services
The management approach and its▶2. Offering Products and Services That Address Social Needs
components
IV Priority Areas (2) Respect for Human Rights▶5. Health
Evaluation of the management approach Promotion for Employees
IX Management Control▶3. Compliance▶3–6 Whistleblower
SystemWhile the total number
is known, the information is not disclosed due
to company policy.

Disclosed Items

Publication Location(Titles of items on the report/web)

Omission

Top Message/
Organizational Profile

GRI Standards

CSR Management

Material Topics
Responsibility as Institutional Investors
GRI 103:
Management
Approach 2016

103-1
103-2

II CSR Management▶5. CSR Priority Areas▶5–1 CSR Priority Areas (FY2016 to FY2018)

The management approach and its
II CSR Management▶4. CSR Promotion Framework
components
VII Responsible Institutional Investor
Evaluation of the management approach

Measures against Demographic Change and Aging
GRI 103:
Management
Approach 2016

103-1

103-2

II CSR Management▶5. CSR Priority Areas▶5–1 CSR Priority Areas (FY2016 to FY2018)

II CSR Management▶4. CSR Promotion Framework
III Priority Areas (1) Providing Better Products and Services▶2. Offering Products and Services That Address Social Needs
The management approach and its▶2-6 Best Senior Service
components
IV Priority Areas (2) Respect for Human Rights▶2. Utilization
Evaluation of the management approach and Development of Human Resources▶2–3 Promoting the
Active Participation of the Elderly
IX Management Control▶3. Compliance▶3–6 Whistleblower
SystemPriority Areas(2) Respect for Human
Rights103-3

Explanation of the material topic andits Boundary

Priority Areas(1) Providing Better
Products and Services

103-3

Explanation of the material topic andits Boundary

Priority Areas(3) Global Environmental
Protection
Social Activities
Responsible
Institutional Investor
Governance andInternal Control
Management
Control
Third-party
OpinionIndex
89