T&D Life Group Corporate Responsibility Report 2012 Data Edition

T&D Life Group

T&D Life Group

Corporate Responsibility
Data Edition
Report 2012
About the Special Topics and the Data Edition (this Document)of the T&D Life Group Corporate Responsibility Report 2012
The T&D Life Group Corporate Responsibility Report 2012 discloses information in two styles: the Special Topics andthe Data Edition.
Contents

Special Topics● Discloses information,in an easily readable andintelligible way, that theGroup would especiallylike to convey to ourstakeholders

Group Profile................................................................ 1
Group CSR Framework ............................................. 3
Providing Better Products and Services............. 5
Respect for Human Rights ...................................... 7
Global Environmental Protection......................... 9Contribution to Communities and Societies....11
Message from President ........................................12
FY2011 Group CSR Activity Report ....................13

Data Edition● Covers and reports the detailsof the T&D Life Group’s
activities● Presents a report in accordancewith the GRI Guidelines

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

CHALLENGE
Change forthe future.
Change by Japan.

T&D Holdings is participating in
the Challenge 25 Campaign, anational movement to mitigate
global warming.

FOR ALL THE LIFE ON EARTH
We are considerate of biodiversity

This report was printed on SatoyamaMonogatari paper, which contributes to preservationof biodiversity, with 100% vegetable oil (non-VOC) ink. The printing was done by thecomputer-to-plate (CTP) process, which makes no use of film, and a waterless method that
does not generate any hazardous waste liquid.

The T&D Life Group practices
green purchasing.

1. T&D Life Group’s Corporate Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 2
Outline of the
T&D Life Group

2. Outline of the Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 4
3. Outline of Businesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 7
4. Business Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 8
1. Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 10
2. Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 12

Management

3. Risk Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 14
4. Toward Openness in Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 15
1. Together with Our Customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 18

Social Aspects

2. Together with Our Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 27
3. Growing with Society . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 30

Environmental Aspects

1. Together with the Global Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 33
Third-party Opinion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 37
Establishing Connections, Fostering Communication in the Group . . . . . . . . . . P. 38
G3.1 GRI Content Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P. 39

1. T&D Life Group’s Corporate Responsibility
1–1

Message from Top Management

1.1

Creating New Value in the Midst of Change Based on theGroup’s Breadth and Depth

their respective strengths.
Companies wishing to remain going concerns must always be
thinking about what should be done to achieve growth five or ten
years down the road, and they must adapt to an ever-changing
society. Problems deriving from an aging population and declining
birthrate as well as changes in employment patterns are becoming
increasingly apparent in Japan. We must wholeheartedly face up
to the changes in society, transform issues such as the provision of
products/services and the utilization of diverse human resources
into opportunities for creating new value, and exploit our Group’s
breadth and depth to meet the expectations of our stakeholders.
Operating on the principle of mutual aid, insurance is inherently
a business with an extremely strong public/social nature, and
our Group boasted a corporate culture of acting to fulfill its social
responsibilities long before the term “CSR” ever caught on. Conscious
and very much proud of that fact, the T&D Life Group will continue
its unshakable adherence to the “Try & Discover” approach as it lends
an ear to the voices of all its stakeholders and transforms together
with society.

The T&D Life Group, centered on a collection of companies having
more than a century of experience in the life insurance business,has always acted in the belief that fulfilling its social responsibilities
through its principal business is of the utmost importance.
“Social responsibilities” in this context refers to those responsibilities
we bear with respect to customers, shareholders, local communities,
employees and all other stakeholders connected with the conductof our business. As a corporate group hoping to grow perpetuallyalongside society, we absolutely must be motivated by a selfawareness of our social responsibilities to demonstrate the corporate
behavior needed by, and worthy of the trust of, all stakeholders.
Our Group shares the Corporate Philosophy, Management Vision,
Fundamental Strategies, and CSR Charter. Group companies arepresently leveraging their own unique features and distinctive
business models to expand their businesses. At the same timethese shared beliefs underlie all of their business activities,
linking these companies by strong bonds of trust that allow for
mutual cooperation. We are convinced that we can become aneven stronger Group by recognizing our mutual values, sharing
information, improving by learning from each other and occasionallycompeting while Group companies take maximum advantage of

1–2

1.2

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

The T&D Life Group and its Stakeholders

Outline of the T&D Life Group

Contents/About Corporate Responsibility Report 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . P. 1

Management

Outline of the T&D Life Group

Social Aspects

Contents

4.14

Customers

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

About Corporate Responsibility Report 2012

3.1

Report Publication Information
Published in

November 2012 (Previous Issue: December 2011; Next Issue: Scheduled for November 2013)

Scope of report

All companies and foundations in the T&D Life Group

3.2

3.3

3.6

Providing appropriate
returns on
investments
Regional
Communities/
Society

3.7

April 2011 to March 2012 (annual)*Also includes reports on some significant activities and events having occurred in and after April 2012.

For further information, please contact the following organization

Partnering formutual cooperationand prosperity
Business
Partners

T&D Life Group
Activities contributing toFair dealings
society as a community
memberEffective and highly transparent corporate governanceThorough compliance
Proactive communication
Government
Employees
Entities*Contents of this report are selected taken into account the importance of each item, and we indicate the scope of each item as necessary.

Period covered

Sales
AgentsProviding
excellent products
and services

Environmental Aspects

Shareholders/
Investors

Playing a publicrole in society

3.4

Environment
Protecting the environment,
everyone’s home

Providing workplaces thatmake work meaningful
and pleasurable

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

Mr. Takaji Hishiyama, principal of the Center for Corporate Behavior, who has expert knowledge and good insight into corporate ethics, corporate
responsibility and socially responsible investments, continues to provide a third-party opinion and advice regarding the contents of this report.

Editorial Policy
This report was prepared with the aim of providing stakeholders with aclear picture about the concept and approach to corporate responsibility
adopted by the T&D Life Group.
In order to help stakeholders better understand the activities of the Group,
we have created two versions of our CR report 2012, as we did for the 2011
report: Special Topics and a Data Edition. Special Topics, focusing on issues

1 T&D Life Group Corporate Responsibility Report 2012

1–3

Promotion Structure for the Group-wide Corporate Responsibility

The T&D Life Group has established the Group CSR
Committee, chaired by the president of T&D Holdings,

3.5

Organization
Structureand consisting mainly of directors in charge of CSR

4.9

Board of Directors
Group Compliance Committee
President

in each group company. The CSR promotion system
and activities of particular interest to stakeholders as well as on informationand messages that the Group would particularly like to communicate, isdesigned to include photos and illustrations to enhance approachability
and readability. The Data Edition comprehensively reports on the Group’s
activities related to management, society, and the environment, in
accordance with the GRI Guidelines as much as possible.

has been reinforced to facilitate coordinated efforts
across the Group through discussions at the Group

Executive Committee

Group Management Committee

Group Risk Control Committee

Group CSR Committee

Group Investment Committee

Group Information Technology
and Administration Committee

CSR Committee over Group-wide CSR policies andinitiatives, while allowing for independent activities at
each group company.

Departments

T&D Life Group Corporate Responsibility Report 2012 2

Appendix

3.13

Third-party Opinion

2. Outline of the Organization
Basic Concept of our Corporate Responsibilities

the environment. Through all these policies, the Group actively
promotes CSR activities.

2–1

Outline of the T&D Life Group’s Business

2.2

2.3

2.7

4.11

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

With our “Try & Discover” motto for creating value, we aim
to be a group that contributes to all people and societies.

Management

T&D Life Group’s Corporate Philosophy 4.8
Group StructureGroup Management Vision
From the perspectives of customers
Aiming to be top insurance company in terms of customer
satisfaction by providing the best products and services.
From the perspectives of shareholders, investors andfinancial market
Aiming to be a major life insurance group with a strong
presence in the market by stable and sustainable increasein the corporate value through new challenges for growth.

T&D Asset Management

T&D Information Systems

T&D Customer Services

T&D Confirm

Pet and Family Small-amount Short-term Insurance

Other Group companies

Household market

Small to medium
enterprise (SME) market

OTC sales at financial
institutions market

Group Fundamental Strategies

2–2

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

4.8

FS1

The T&D Life Group is firmly committed to fulfilling the public mission of life insurance and other businesses and to undertaking its
corporate social responsibilities based on its management philosophy and by achieving sustainable growth along with society.
1. Providing Better Products and Services
The T&D Life Group will offer well-suited and high-quality
products and services that meet customer needs.
2. Strict Compliance● The T&D Life Group will strictly observe laws, regulations andrules, and act with integrity.
● The T&D Life Group will maintain and promote fair and freecompetition.
● The T&D Life Group will stand firmly against antisocial forcesand groups that may threaten the order or safety of civil society.
3. Respect for Human Rights● The T&D Life Group will respect human rights, and makeefforts to enlighten all its employees on human rights.
● The T&D Life Group will respect the individuality of all its
employees, ensure a safe and rewarding work environment,
and develop its human resources.
● The T&D Life Group will respect privacy, and will strictly
control and protect personal information.

3 T&D Life Group Corporate Responsibility Report 2012

2.5

3.6

3.7

<Group companies> As of March 31, 2012, the T&D Life Group consists of T&D Holdings, 16 consolidated subsidiaries and two affiliatedcompanies, which carry out life insurance and other businesses as mentioned below.
(● : Consolidated subsidiaries ◆: Equity method affiliate companies)

T&D Holdings, Inc. http://www.td-holdings.co.jp/en/

5. To fulfill our public mission as a life insurance business and our corporate social responsibilities for the broader society
including customers and shareholders.

Group CSR Charter

T&D Life Group Companies and Foundations

Social Aspects

Strengthening the insurance business through synergy

4. Communication
The T&D Life Group will widely disclose its management
information in an appropriate and timely manner to the public
as well as to its customers and shareholders, and will actively
strive to maintain a dialog with all its stakeholders.
5. Contribution to Communities and Societies
The T&D Life Group will implement social action programs asa good corporate citizen, and will make contributions to thesound development of regional communities and society.
6. Global Environmental Protection
The T&D Life Group will carry out its activities with full awarenessof the importance of environmental concerns, and with sufficientconsideration given to global environmental protection.

Insurance andInsurancerelated
Businesses(7 companies)

Investmentrelated
Businesses(7 companies)

Insurance

Taiyo Life Insurance Company
http://www.taiyo-seimei.co.jp/
Daido Life Insurance Company
http://www.daido-life.co.jp/
T&D Financial Life Insurance Company
http://www.tdf-life.co.jp/
Pet and Family Small-amount Short-term Insurance Company http://www.petfamilyins.co.jp/

Insurance-related

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

Investment Management
and Advisory

T&D Asset Management Co., Ltd.
T&D Asset Management (U.S.A.) Inc.

OthersT&D Lease Co., Ltd.
http://www.taiyo-life-lease.co.jp/
T&D Asset Management Cayman Inc.
Taiyo Credit Guarantee Co., Ltd.
http://www.taiyo-sinyo-hosyo.co.jp/
Alternative Investment Capital Ltd.
http://www.aicapital.co.jp/english/
AIC Private Equity Fund General Partner, Ltd.

Administration- Administration-related
relatedGeneral Affairs andBusinesses
Calculation-related(4 companies)

Foundations

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

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

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

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

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

T&D Life Group Corporate Responsibility Report 2012 4

Environmental Aspects

The T&D Life Group’s basic concept of corporate responsibility
is to contribute to all people and societies as a whole mainly
through its life insurance business in order to be considered atrustworthy life insurance group by its various stakeholders, withthe aim of achieving sustainable growth together with society.
This concept is set forth in the Group’s Corporate Philosophy
and Management Vision (on the right), andthe Group has drawn
up the T&D Life Group Fundamental Strategies (below), which
formulates principles aimed at materializing the stated concept.
To achieve these management objectives, a set of principles
and policies relating to corporate responsibility have been
established, specifically: the T&D Life Group CSR Charter (below),which comprises the basic policies to further promote its CSR
activities; the T&D Life Group Compliance Code of Conduct (p.12),
which comprises the basic policies for complying with laws andregulations; the T&D Life Group Basic Policy for Strengthening
the Compliance Structure; the T&D Life Group Environmental
Policy (p.33), which has been established based on the T&D LifeGroup CSR Charter and comprises the basic policies for protecting

4.8

Appendix

1–4

Outline of the T&D Life Group

Outline of the T&D Life Group

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

2.1

2.4

2.8

2–5

Performance of the Group Companies

Daido Life Insurance Company
April 2004
1-2-3 Kaigan, Minato-ku, Tokyo 105-0022,
Japan
207.1 billion yen
99
Ernst & Young ShinNihon LLC
Holding company for the T&D Life Group
as well as for a small-amount short-term
insurance company, conducting thefollowing:● Management control of life insurance
subsidiaries and affiliates under the
Insurance Business Act and other laws
and regulations● Other businesses associated with theabove

Established
Head office location

Capital stock
No. of employees

Year ended March 2010

July 1947 (Founded July 1902)
1-2-1 Edobori, Nishi-ku, Osaka 550-0002,
Japan
1-2-3 Kaigan, Minato-ku, Tokyo 105-0022,
Japan
110 billion yen
Sales: 3,904
Administrative: 3,408
Total: 7,312

EC1Year ended March 2012
(Billion yen)

Ordinary revenues

2,348.9

1,993.0

2,104.1

Ordinary profit

80.5

94.9

120.8

Net income

24.2

23.8

26.7

Total assets

12,878.7

12,740.7

12,861.0

Net assets

630.4

622.0

685.5

Consolidated balance sheet data

(Billion yen)

Per share information

(Yen)
1

2

Consolidated net income per share

82.95* * 35.06

39.41

T&D Financial Life Insurance Company

Consolidated net assets per share

1,845.79*1 *2 910.52

1,013.54

Established
Head office location

Non-consolidated annual dividend per share

45.00

45.00

*1 22.50

Capital stock
No. of employees

July 1947 (Founded April 1895)
1-2-3 Kaigan, Minato-ku, Tokyo 105-0022,
Japan
56 billion yen
298Management indicators(Billion yen)

Policy amount in force

57,700.0

58,040.8

58,414.6

New policy amount

6,329.9

6,348.2

6,349.6

Core profit (loss)

131.0

107.7

144.9

Consolidated return on equity (ROE) (%)

Established
Head office location

EEV

Capital stock
No. of employees

Year ended March 2011

Consolidated operating results

Taiyo Life Insurance Company
February 1948 (Founded May 1893)
1-2-3 Kaigan, Minato-ku, Tokyo 105-0022,
Japan
62.5 billion yen
Sales: 8,886
Customer service: 534
Administrative: 2,833
Total: 12,253

2.8

Industry association to which the threelife insurance companies belong

4.13

The Life Insurance Association of Japan

5.3

3.8

4.1

1,374.9

1,369.1

1,475.6* Management indicators other than ROE and EEV are based on aggregate non-consolidated business results of Taiyo Life, Daido Life and T&D Financial Life. Amounts of policies in force andnew policies are the totals of individual insurance and individual annuities.
*1 The company has implemented a 2-for-1 split on its common stock, effective on October 1, 2011.
*2 Net income per share and net assets per share are calculated on the assumption that the above share split was implemented at the beginning of fiscal 2011.

2–6

Outline of the T&D Life Group

Description of Companies (as of March 31, 2012)

T&D Holdings, Inc. Shareholders

Social Aspects

2–3Management

Outline of the T&D Life Group

2.6

Proportion of Shares Held (as of March 31, 2012)

Awards Received during the Reporting Period

2.10● UCDA Award 2012* (Insurance Solicitation Brochure Division, Medical Insurance Solicitation Brochure Category) May 2012,
hosted by Universal Communication Design Association
Taiyo Life’s brochure for “Taiyo Life’s yasashiihoken (medical insurance plan that requires no prior notification of health conditions/history)”
won a special prize in the Insurance Solicitation Brochure Division, Medical Insurance Solicitation Brochure Category.
* The UCDA Award aims to provide a third-party evaluation to communication tools, including brochures, created by corporations targeting general consumers,
focusing on the quality of being “easy to look, easy to understand and to be infectious.” The UCDA expects that the evaluation results will serve as an indicator for
improved communication quality and development of design technology, thereby contributing to increased benefit to both enterprises and consumers.

Other
corporations

Foreigncorporations, etc.

Individuals andothersTotal

No. of shares held (1,000 shares)

204,750

20,883

156,319

242,156

57,370681,480

Proportion of shares held (%)

30.04

3.06

22.94

35.53

8.42

100.00Principal Shareholders (as of March 31, 2012)
Name

No. of shares held
(1,000 shares)

Percentage of shares held
vs outstanding shares (%)

Japan Trustee Services Bank, Ltd. (Trust Account)

42,258

6.20

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

38,171

5.60

The Bank of New York, Treaty Jasdec Account23,055

3.38

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

21,0493.09

RBC DEXIA Investor Services Trust, London - Client Account

16,583

2.43

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

16,407

2.41

OM04 SSB Client Omnibus

9,864

1.45

NIPPONKOA Insurance Company, Ltd.

9,638

1.41

SSBT OD05 OMNIBUS ACCOUNT – TREATY CLIENTS

8,246

1.21

Komatsu Ltd.
Total

5 T&D Life Group Corporate Responsibility Report 2012

Financial
product dealers

8,167

1.20

193,443

28.39

T&D Life Group Corporate Responsibility Report 2012 6

Environmental Aspects

2–4

Financial
institutions

Appendix

Shareholder category

2.2● Supporting Households through Comprehensive Life Security
In the household market, Taiyo Life is engaged in the sale ofcomprehensive protection-oriented insurance products covering death,
medical care, and nursing care, through its in-house sales representative
channel. Our in-house sales representatives call on individual customers
to directly ascertain their needs, make suggestions or providing advice
for arranging plans that best meet their needs. Customer service staff callon customers on a regular basis to introduce new products and services,
assist them with documentation and other necessary procedures aswell as receiving and responding to their requests. Aiming to becomea trusted and needed lifelong partner for individual customers, we
are working to enhance our sales force to offer optimally customized
products and services, taking a customer-oriented approach with a focus
on face-to-face consultation.

Taiyo Life’s Business Model

3–2

2.3

2.7

Protection-oriented products covering medical care,nursing care and death that meet customer needs

As of March 2012

● Supporting SMEs, which Form the Backbone of the Japanese Economy
Daido Life positions, as its core business, the sale of partner-specificinsurance products through its partner organizations in the SME market,
and has developed an effective marketing system that links market, sales
channels and products organically. Daido Life develops insurance products
specially designed for each partner organization and the partner-specificproducts so developed are proposed to member enterprises of the partnerorganizations as a benefit program for owners and employees of thoseenterprises. These products are also introduced by tax accountants andcertified public accountants belonging to the partner organizations to theircorporate clients as a part of their management advice. In fiscal 2011, over
90 percent of our new contracts were made with corporate clients and ourmarket share in individual term insurance was the largest in Japan, 18.7%
as of March 31, 2011, in terms of policy amounts in force. We will continue
developing and offering the insurance products that meet the needs ofcorporate owners in the SME segment.

Daido Life’s Business Model● Supporting Customers to Lead a Comfortable Second Life
T&D Financial Life specializes in OTC life insurance sales mainly throughfinancial institution agents, offering products including single premium
whole life insurance. The company’s basic business policies are: tostrengthen our compliance and internal control system to fully protect ourcustomers’ interests; to develop and sell new product packages offeringplans that can differentiate the company from its competitors, thereby
achieving sustainable growth; and to increase the amount of insurance
policies in force and improve profitability while maintaining sufficientfinancial soundness. In accordance with these management policies, we
are working to develop new products in a timely manner that can offer
bespoke plans to meet diverse individual customer needs and provide
quality service, using our “communicators” (call-center agents) who handle
inquiries and applications for benefits from customers. Keeping customeroriented perspectives in mind, we will continue working hard to improvecustomer satisfaction.

7 T&D Life Group Corporate Responsibility Report 2012

2.7

FS6

FS7

Relationships with partner organizations in the SME market

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

2.3

2.7

FS6

FS7

Pet and Family Small-amount Short-term Insurance Company

2.2

2.3

2.7

FS6

FS7

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

4–1

Products for corporate risk management(protection against death and serious illness)(NFCTA/TPA, etc.)

2.2

4. Business Overview

SMEs
Contracts with approx. 360,000 companies

Corporate organizations

T&D Asset Management Co., Ltd.

■ Pet Insurance

3–5

Focus on major metropolitan areas
and major regional cities
8,886 in-house sales representatives

2.3

3–4

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

Face-to-face consultation

2.2

T&D Financial Life Insurance Company

FS7

Households

Daido Life Insurance Company

3–3

FS6

Approx. 3,900
in-house sales representatives
Approx. 1,200
non-life insurance agencies
Approx. 12,000
tax accounting and CPA firms

Fiscal 2011 (Ended March 2012)• Total policy amount in force for the Group’s three life insurancecompanies (individual insurance and individual annuities)
The three companies posted a total of 6,349.6 billion yen for new
insurance policies, up 0.02 percent year on year, while recording
4,261.6 billion yen for surrendered and lapsed policies, down
5.2 percent year on year, bringing the total amount of policies
in force to 58,414.6 billion yen as of the fiscal year end, up 0.6
percent over the previous year.
• Financial results of T&D Holdings (consolidated)
Ordinary revenues stood at 2,104.1 billion yen, up 5.6 percent
year on year, of which income from insurance premiums, etc.

EC1
was 1,691.2 billion yen, up 14.7 percent year on year. Ordinary
profit and net income stood at 120.8 billion yen, up 27.3
percent, and 26.7 billion yen, up 12.1 percent, from the previous
year, respectively. Core profit, a performance indicator for themainstay life insurance business, stood at a combined 144.9
billion yen (up 34.5% year on year) for the Group’s three life
insurance companies.
* For financial results for the latest accounting period, please visit the T&D
Holdings website: http://www.td-holdings.co.jp/en/

As of March 2012

Policy Amount in Force
2.2

2.3

2.7

FS6

FS7

T&D Financial Life’s Business ModelNet Income (Loss)(Three life insurance companies combined)(Trillion yen)
57.7
58.0
58.4
60

(Consolidated)(Billion yen)
40
30

55

Social Aspects

Taiyo Life Insurance Company

24.2

23.8

Year ended
Mar. 2010

Year ended
Mar. 2011

26.7

20
50

Customers

0
OTC life insurance sales at financial institutions
Sales through banks, securities companies, etc.
72 banks(including credit unions)
5 securities companies
1 other

100
As ofMar. 31, 2010

As ofMar. 31, 2012

Income from Insurance Premiums, etc.
(Consolidated)(Billion yen)
2,000
1,898.3

1,691.2
1,474.2

1,500
As of March 2012

As ofMar. 31, 2011

0Core Profit (Loss)(Three life insurance companies combined)(Billion yen)
200
150

131.0

100

1,000

Year ended
Mar. 2012

Appendix

3–1■ Asset Management

Environmental Aspects■ Life Insurance

Outline of the T&D Life Group

3. Outline of Businesses

Management

Outline of the T&D Life Group

144.9
107.7

50
0
Year ended
Mar. 2010

Year ended
Mar. 2011

Year ended
Mar. 2012

Year ended
Mar. 2010

Year ended
Mar. 2011

Year ended
Mar. 2012

T&D Life Group Corporate Responsibility Report 2012 8

1. Corporate GovernanceCorporate Value (EEV)

EC1■ Corporate Value of the T&D Life GroupThe T&D Life Group has disclosed its embedded value (EV), one of theindicators for assessing the corporate value of life insurance companies,
and in fiscal 2006, the Group adopted European Embedded Value (EEV)
based on the EEV Principles, which has mainly been prevailing among
European insurance companies. In the calculation of EEV, we use a market
risk-free rate for discount rates and investment yields, which solves someof the problems inherent to the traditional EV approach, and thereby
improves the transparency of disclosed information.

As of Mar. 31
2011(Billion yen)

As of Mar. 31
2012

ChangeEEV

1,369.1

1,475.6

106.5

Adjusted net worth

861.4

1,036.6

175.1

Value of in-force business

507.6

438.6

(68.6)

Value of new business

54.7

62.3

7.6

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

Basic Profit Distribution Policy
(Yen)
50

1–2
45

45

40

* The company has
implemented a 2-for-1 split on
its common stock, effective on
October 1, 2011.

22.50
20
0
Year ended
Mar. 2010

Year ended
Mar. 2011

Solvency Margin Ratio

Year ended
Mar. 2012

EC1(Unit: %)As of Mar. 31, 2011

* The solvency margin ratio is an indicator used by regulatory authorities tojudge whether an insurance company has sufficient financial capability to
pay insurance claims in the event of unforeseeable risks. A solvency margin
ratio of 200 percent and above demonstrates that the insurance company
meets the criteria for financial soundness.
(The ratios shown in the right table are calculated using the new standard.)

As of Mar. 31, 2012

Taiyo Life

670.8

747.3

Daido Life

720.6

851.9

T&D Financial Life

571.1

553.7

Pet and Family Small-amount Short-term Insurance

2,166.1

979.8

—

810.6

T&D Holdings (consolidated)

Credit Ratings

Taiyo Life

Daido Life

Standard & Poor’s (S&P)

A−

A−

Japan Credit Rating Agency (JCR)

A+

A+

A+

Rating and Investment Information (R&I)

A+

A+

A+

Fitch Ratings
Moody’s Investors Service

T&D Financial LifeA+
A2Disclaimer: The above ratings represent the opinions of credit rating agencies and do not guarantee any actual payment of insurance claims. These ratings are based on numerical figures and other data as of a certain date andmay change in the future. The rating agencies listed above are independent third-party organizations and the definition of ratings is made public by each rating agency. The plus (+) and minus (−) signs or figures (2), etc.
following the ratings show relative standings within the major rating categories. All ratings were obtained through formal requests to the rating agencies by the Group’s three life insurance companies.

■ Definition of Ratings
Standard & Poor’s (S&P) <Insurer Financial Strength Ratings>
Rating A: Has strong ability to honor commitments on obligations but is somewhat
more likely to be affected by adverse business conditions than insurers withhigher ratings AAA and AA.
Japan Credit Rating Agency (JCR) <Insurance Claims Payment Ability Ratings>
Rating A: Strong ability to honor financial commitments on obligations.
Rating and Investment Information (R&I)<Insurance Claims Payment Ability Ratings>
Rating A: Strong ability to pay insurance claims and excellence in some evaluation factors.

9 T&D Life Group Corporate Responsibility Report 2012a system for supervising Group management by thoroughlymanaging revenues and risks for the entire Group. Meanwhile, thesubsidiaries, which have their own business strategies, develop
marketing strategies leveraging their strengths, and conductbusiness operations autonomously, thereby increasing the Group’s
corporate value.
In this way, the Group is committed to management that clarifies
the respective roles and responsibilities of T&D Holdings and its
subsidiaries.

Corporate Governance Framework● Board of Directors
4.5
4.7
4.2
4.3
The Board of Directors at T&D Holdings makes decisions onimportant issues regarding its own operations, and as the holding
company, on business strategies and allocation of management
resources with regard to the entire Group. It also oversees theperformance of directors and executive officers.
Director candidates are appointed through assessments of their
qualifications by the Board of Directors. External directors areappointed as independent directors, who do not present any
risk of creating a conflict of interest with general shareholders. As
part of revision of the director remuneration system, provision ofretirement benefits for directors was abolished, for which approval
was obtained at the general shareholders’ meeting held on June27, 2012. In relation to this abolishment, a stock option program
was introduced for directors, excluding external directors.
Chairman of the Board of
Directors

Fitch Ratings <Insurer Financial Strength Ratings>
Rating A: High level of payment ability. Unlikely to suspend or stop payments
and has strong ability to fulfill its obligations to insurance policyholders
and other contract obligations without delay. However, it may facea stronger possibility of being affected by changes in business or
economic conditions than insurers with higher ratings.
Moody’s Investors Service <Insurer Financial Ratings>
Rating A: Rating for insurance companies with solid financial soundness. However,some factors may affect the company’s ability to pay claims at somepoint in the future.

President

Directors

10

External director

1

The three life insurance companies in the T&D Life Group have obtained credit ratings regarding solvency for paying insurance claims. The Group has received
high evaluation marks from major rating agencies, as shown below.
(As of September 10, 2012)
Rating Agency

4.10

External director’s role

The Board’s external director provides
specialist knowledge as a university
professor and offers comments
regarding deliberation of the agenda
as necessary at the Board of Directors’
meetings.

4.2● Executive Officer System
To improve corporate governance, T&D Holdings and its
subsidiaries have adopted the executive officer system in order toclearly separate supervisory and executive responsibilities.

4.1

4.10

● Board of Corporate Auditors
4.6
T&D Holdings has established a Board of Corporate Auditors.
The auditors monitor the operating performance of directors andexecutive officers by means of attending important meetings, suchas those of the Board of Directors, Executive Committee, GroupManagement Committee, Group Compliance Committee, Group
Risk Control Committee and Group CSR Committee, as well as byother means.
External corporate auditors are appointed as independent auditors,
who do not present any risk of creating a conflict of interest withgeneral shareholders.
The Board of Corporate Auditors receives reports from individual
auditors on important audit issues, and discusses and makes
decisions on the issues.
Auditors

4

External corporate
auditors

2

External corporate
auditors’ role

At meetings of the Board of Directors
and the like, from professional
standpoints as lawyers or university
professors, the external corporate
auditors offer necessary comments
regarding deliberation of the agenda
as necessary.

4.2● Executive Committee and GroupManagement Committee
T&D Holdings has established an Executive Committee and aGroup Management Committee. The Executive Committee at T&D
Holdings is composed of the President and the executive officers,
and it primarily discusses important business and management
issues related to T&D Holdings and the Group.
The Group Management Committee consists of the President, theexecutive officers in charge of the business planning units andbusiness management units, and the Presidents of the Group’s threelife insurance companies, who are also members of the Group’s
Board of Directors. The Group Management Committee discusses
strategically important issues affecting the Group as a whole.

T&D Life Group Corporate Responsibility Report 2012 10Social Aspects■ Annual Cash
Dividend per ShareThe Group’s solvency margin ratio,* remains at an adequate level.

4–5

The 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 groupmanagement.
Based on this concept, T&D Holdings determines the Group’sbusiness strategies, appropriately allocates management resources
and sets capital policies. In addition, T&D Holdings appropriately
identifies the business risks of its five subsidiaries (Taiyo Life,
Daido Life, T&D Financial Life, T&D Asset Management, andPet and Family Small-amount Short-term Insurance) to create

4.1

EC1

T&D Holdings has a policy of maintaining the soundness of its own
operations and those of the Group companies, securing retained earnings
required by the Group, enhancing shareholder value, and continuing astable profit distribution. The annual cash dividend for fiscal 2011 was set
at 22.5 yen per share, same as the previous year taking into account the 2
for 1 stock split.

4–4

Basic Concept of Corporate Governance

Environmental Aspects

4–3

1–1

Appendix

4–2

Outline of the T&D Life GroupManagement

Management

Outline of the T&D Life Group4.1

Corporate auditors
Board of Corporate Auditors
Board of Directors
Auditors’ Office
President

Executive Committee

Group Management Committee
Group CSR Committee

Group Investment Committee

Group Information Technology
and Administration Committee

2–1

Group Planning
Department

Group Finance &Accounting Department

Public Relations
Department

General Affairs
Department

Risk Control
Department

Internal Auditing
Department

Business planning
New business development
Internal control
IR
Corporate responsibility

Implementation offinancial strategies
Capital policies
Budget preparationand management

Public relations

General affairs
Corporate stock-related
general affairs
Human resources
Secretarial services

Risk management
Compliance
Legal affairs

Internal audit

Taiyo Life

Daido Life

T&D Financial Life

Guidance &advice4.10● The Internal Control Reporting System
Meanwhile, an internal control reporting system was introducedin accordance with enforcement of the Financial Instruments
and Exchange Act. This system puts in place the internal controls
necessary for ensuring the appropriateness of securities reports
and other financial reports. Furthermore, once executive managers
have themselves assessed and reported on the validity of thosereports, the appropriateness of the assessment is then audited bycertified public accountants or other outside auditors.

Basic Concept of Compliance

Pet and Family Small-amount
Short-term Insurance

4.11

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

The T&D Life Group Compliance Code of Conduct

T&D Asset Management

4.6

2. ComplianceGroup Risk Control Committee

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

Shareholders’ MeetingGroup Compliance Committee

1–5

Outline of the T&D Life Group

Outline of Corporate Governance Structure

4.8

4.11

Social Aspects

1–3Management

Management

FS1

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

Other Group companies

complying with laws and rules in their daily business operations.
Anyone not following the Compliance Code of Conduct of the T&D Life Group may be disciplined for noncompliance with laws orWithin the T&D Life Group, T&D Holdings and its subsidiaries haverespective internal audit units.
The internal audit units conduct audits of the operating units,
examining and assessing the appropriateness and effectiveness of
the internal management and compliance system, and identifying
and raising issues related to them, in order to effectively achieve
management objectives. The internal audit units also give advice on
possible improvements on the issues identified.
By auditing and monitoring the performance of internal audits bysubsidiaries, the Internal Audit Department of T&D Holdings grasps
the status of the internal management system of the entire Groupand provides guidance and advice as necessary to strengthen theGroup’s internal audit systems.
*1 The T&D Life Group’s Internal Auditing Department underwent an
external review of internal audit quality in July 2011. In the review, we were
evaluated as “Generally Conforms,” indicating the best in the three-level
rating for conformity with IIA Standards.
*2 IIA Standards refer to the International Professional Practices Framework
established by The Institute of Internal Auditors, an international guidance
body for internal auditing professionals.

11 T&D Life Group Corporate Responsibility Report 2012

4.6

Outline of the Group’s
Internal Audit System

Audit

Board of Directors

Corporate auditors
President

Submission of
agenda/report

FS9

ReportReportInternal Auditing Department

Operating units

Audit & monitoring
Guidance &adviceTaiyo Life

Daido Life

T&D
Financial Life

T&D Asset
Management

Internal audit units of each company

Operating units of each company
Other Group companies

Pet and Family
Small-amount
Short-term Insurance

1. Strict Compliance with Laws, Regulations, and Rules
We will comply with social rules, including such laws as the
Insurance Business Law as well as our own in-house rules. Beingaware of the background of these norms, we will conduct
ourselves in an honest manner.

5. Prohibition of Insider Trading
We will not use important confidential information that wehave obtained in the course of our business for the purpose of
making corporate or private investments or for other personaleconomic activities.

2. Maintenance and Promotion of Fair and Free Competition
Regarding the products and services that we provide tocustomers, we will not conduct any illegal acts in competingwith other companies, including colluding on bidding.

6. Response to Antisocial Powers
We will reject and stringently respond to any antisocial powers andorganizations that threaten the order and safety of a civil society.

3. Proper Information Disclosure
We will properly disclose and explain information on our
products and services as well as information about the
management of the Company and Group companies.
4. Proper Information Management
We will properly handle customer information that we haveobtained in the course of our business, including their personal
information, in accordance with laws and regulations. We will
properly manage information about the Company and Group
companies that has not been disclosed to the public. We will notallow this information to be leaked to third parties after leaving
the Company or Group companies.

7. Limitations on Business Entertainment
We will not give or receive gifts and will neither make nor accept
offers of entertainment beyond the extent of social norms.
8. Distinction between Private and Public Matters
In conducting business, we will draw a clear line between our
private and public lives.
9. Respect for Human Rights
We will respect human rights and do our utmost to prevent
discrimination and harassment.
Responsibility and Duty of Management
The T&D Life Group management will act while recognizing
the observance of the code of conduct as their responsibility
and duty and strive to disseminate the code of conduct among
Group companies and play a leading role in promoting theobservance of the code.

T&D Life Group Corporate Responsibility Report 2012 12

Appendix

T&D Life Group Internal Audit System

Environmental Aspects

in-house rules.

1–4

● Compliance Program
Each member company in the T&D Life Group takes measuresfor legal and other compliance which are appropriate for therespective companies in terms of size and characteristics, based on
the Group’s basic compliance policies, in order to raise awarenessof compliance. For example, T&D Holdings and the Group’s threelife insurance companies and other Group members have createdcompliance programs as detailed and actionable plans aiming at
having all executives and employees act in compliance with laws
and regulations, and compliance training is carried out to reinforce
compliance in the course of our business.

2–4

Whistleblower System

At the T&D Life Group, each of the Group’s three life insurancecompanies and other Group members used to operate their own
whistleblower systems. In April 2005, however, the T&D Life Group
Helpline was established for use by all executives and employees
in the Group.
Since the Helpline was introduced, it has become better known
within the Group and has contributed to promoting compliance.
In some cases, operating the Helpline has led to improvements inhuman relations and communications at the workplaces.

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

Corporate Auditors

Board of Directors

Board of Corporate Auditors
Group Compliance Committee

3–2

Risk Control Department
Guidance& advice

Deliberation& reporting

Taiyo Life

Daido Life

T&D
Financial
Life

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

Other Group companies

4.11

SO3

Basic Concept for Risk Management

4.9
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 reportson these risks to the Board of Directors and provides guidance andadvice to the Group companies as necessary, thereby ensuringthat appropriate risk control is implemented at each company andstrengthening risk management system for the entire Group.

Risk Management System

4.9

SO2

Outline of the Group’s Risk Management System

In light of the social and public nature of the life
insurance business, the T&D Life Group positions
risk management as a key management priority inorder to ensure soundness and appropriateness inthe management. Under the management control
by the holding company, T&D Holdings, each Group
company takes responsibility for implementing
appropriate risk management based on the principleof self-responsibility.

Corporate auditors

Board of Directors

Board of Corporate Auditors
Group Risk Control Committee

Executive Committee

Risk Control Department

FS4

Taiyo Life

Daido Life

T&D
Financial
Life

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

Other Group companies

3–3

Risk Classification and Responses

4.9

4.11

EC2

FS2

The T&D Life Group classifies major management risks as shown below. Risk management policies have been established for each of theserisks, and efforts are made to prevent these risks from occurring or to control them within certain acceptable levels.

4.11● Implementation of the Whistleblower System
As a rule, our executives and employees who report information
through the T&D Life Group Helpline will not suffer negative
consequences for having done so. To ensure the effectiveness ofthe system, the Group has made it possible to report information
to a contracted third-party company by phone, via website, andthrough other channels, and to do so anonymously. The Groupwill continue its efforts to promote compliance through thiswhistleblower system.

Guidance& advice

Deliberation& reporting● Compliance Manual
The T&D Life Group has prepared separate compliance manuals forsales representatives, administrative personnel, agents and others
respectively, which serve as a daily business operation manual andalso as a compliance training manual.
● Compliance Card
In order to help ensure strict compliance, employees of the Group’s
three life insurance companies carry with them a Compliance Cardsummarizing key issues of compliance.

FS2

Insurance
Underwriting Risk

Investment Risk

Liquidity Risk

Administrative Risk

System Risk

Legal Risk

Labor and
Personnel Risk

Hazard Risk

Rumor Risk

Affiliate Risk

* Among the above classification, risks in five categories (administrative, system, legal, labor and personnel, and hazard) are addressed as
Operational Risks collectively.
Please visit the T&D Holdings website for details of risk classification and measures taken.
(URL:http://www.td-holdings.co.jp/company/group/governance/risk/index.html)

3–4

Crisis Management

4.11

The T&D Life Group has formulated the Rules on the Group’s Crisis Management, which address basic matters related to the Group’s response to crisis situations.
In case of major natural disasters or similar emergency events, the Rules place top priority on 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.
The Group has also implemented a number of measures to improve the effectiveness of crisis management. These include introducing a system for
confirming the safety of our executives and employees individually and Group-wide emergency drills as a preparation for a possible large-scale disaster.

13 T&D Life Group Corporate Responsibility Report 2012

Social Aspects

Compliance Promotion Activities

Outline of the Group Compliance
Promotion Structure

3–1

Environmental Aspects

2–3

FS4

T&D Life Group Corporate Responsibility Report 2012 14

Appendix

T&D Holdings has established a compliance promotion structure
based on the T&D Life Group Basic Policy for Strengthening theCompliance Structure.
The Group Compliance Committee oversees and improves theGroup’s compliance arrangements. This committee, headed by
the President and comprised of all executive officers, examines
compliance-related matters and reports findings to the Boardof Directors, presenting a detailed report if necessary, to ensure
thorough compliance.
T&D Holdings also has a Risk Control Department, which has
overall responsibility for promoting compliance. In coordination
with the compliance units of the Group’s three life insurancecompanies and other Group members, this department performs
regular monitoring and provides the Group companies withguidance and advice.
The Group’s three life insurance companies and other Group
members also have compliance promotion systems consisting of
the compliance committees and the departments in charge ofcompliance.

4.11

Internal audit

Group Compliance Promotion StructureInternal audit

2–2

Outline of the T&D Life Group

3. Risk Management

Management

Management

● Proactive Information Disclosure
The T&D Life Group pursues proactive communication activities
and works to provide straightforward information to customers,
shareholders, investors, and all other stakeholders.
To maintain and even heighten the trustworthiness in the eyesof society, T&D Holdings and the Group’s three life insurancecompanies have formulated Disclosure Rules.* In keeping

4–2

External Participation in Managementwith the Rules, we are striving to secure the transparency ofmanagement and to practice group-wide and well-managed
information disclosure in a timely, fair and accurate mannerespecially in the event of emergency.
Each Group company issues disclosure brochures on its
management policies, business performance and other matters,
and posts product and service information, company news andother information on their website.
T&D Holdings informs its shareholders, numbering 286,483 asof March 31, 2012, of the status of Group operations and othermatters twice a year, in June and December, through shareholder
news bulletins.
* Based on its Disclosure Rules, T&D Holdings has prepared and makes
available a Basic Disclosure Policy.

4.14

4.16

Consumer Feedback Utilization Committee .... Taiyo Life
<External members>
Attorneys, secretary generals of
consumer groups<Main issues considered> Feedback from customers; progressof the initiatives for reflecting
customer feedback to improve
operations

Advisory Council for Insurance Payment .... Daido Life
<External members>
Attorneys and consumer affairs
experts<Main issues considered> Deliberation on payment complaint
responses and dispute settlements;
re-examination of non-payment
claims; improvement of clarity ofnotices and documentation provided
to the customers
Service Supervision Committee .... T&D Financial Life
<External members>
Attorneys, consumer affairs experts
and media representatives<Main issues considered> Protection of policyholders’ interests
by ensuring appropriate payment
structure for insurance claims andbenefits as well as comprehensive
deliberation on activities for
improving customer satisfaction

Communication with Policyholders

4–5

Business Partner Meetings

4.16

15 T&D Life Group Corporate Responsibility Report 2012

PR5

FS5

FS16

4.16

FS5

4.4

4.16

T&D Holdings views shareholders’ meetings as important opportunities for communicating with shareholders, and endeavors to holdaccessible and open shareholders’ meetings in accordance with our basic policies.
When a shareholders’ meeting is held, to allow shareholders enough time to study the agenda, we send a notice of AGM as early as possible,
and we also post the notice and a complete English translation on our website. In addition, we have introduced electronic voting over theInternet to improve shareholders’ convenience. At the shareholders meetings, presentations, clarified with a lot of charts and illustrations, by
President are displayed on a large screen to help shareholders better understand the company’s operations. These meetings are attended bymany shareholders and active question and answer sessions follow.

4–7

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

Taiyo Life endorses the Principles for Financial
Action towards a Sustainable Society (Principles
for Financial Action for the 21st Century)*1, andin November 2011, the company signed on tothis initiative organized by Japanese financial
institutions. Taiyo Life will continue promoting
efforts towards creation of a sustainable society
through its life insurance business.

*1 This set of principles (see the right column) was
drawn up as guidelinesfor action by financial
institutionsseeking to fulfill theirrolesand responsibilities

been formulated by the Drafting Committee forEnvironmental Finance Principles, in which financial

T&D Holdings proactively engages in IR activities based on the principles of timeliness, fairness, and accuracy in information disclosure, andworks to provide continuous, straightforward information disclosure on the Group’s management and financial situations. More specifically,
we hold business results briefings and teleconferences, visit domestic and overseas institutional investors and actively engage in exchanging
opinions with securities analysts. Feedback from investors and analysts received through IR activities is regularly communicated to the
management team to improve management performance.

Daido Life

Shareholders’ Meetingsin light of their business context.The principles have

IR Activities

4.16

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

in shaping a sustainable society to the extent possible

4–3

Taiyo Life

Taiyo Life holds regular meetings with policyholders called “Taiyo Life Fureai Club” in order to have them gain a deeper understanding about
Taiyo Life and life insurance, as well as to ask them for their opinions and requests regarding our products and services. In fiscal 2011, themeetings were held at 73 branches and 39 other venues during five month from August to December and attended by 609 clients.
Taiyo Life made presentations on its business and services and received 137 opinions from the participants concerning a broad range of its
business operations. The feedback from policyholders were shared by the whole company as valuable information and utilized to achieve
improvements in various business practices.

4–6

The Group’s three life insurance companies work toward appropriate and transparent business management through the participation ofoutside experts in some internal committees dealing with key management issues.
Payment Assessment Special Committee .... Taiyo Life
<External members>
Physicians, attorneys, academic
experts, consumer affairs experts, etc.
<Main issues considered> Assessment of insurance claims andbenefits, payment administration;
improvement of insurance claim
documents; appropriateness ininsurance claim payment operations

4–4

institutions from wide-ranging areas within the
sector have voluntarily participated. The process of
the initiative is supported by the Japanese Ministry ofEnvironment serving as a secretariat.

Social Aspects● Management Reflecting Stakeholders’ Opinions
At the T&D Life Group, proactive communication with stakeholders
is set out in the T&D Life Group CSR Charter. (See p.3,
“4. Communication”)
The Group’s three life insurance companies set up opportunities
for direct dialogue with and participation in management by
the policyholders, agents and other stakeholders to reflect theiropinions in the management of the companies.

4.16

4.12

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

T&D Life Group Corporate Responsibility Report 2012 16

Environmental Aspects

Basic Concept

Appendix

4–1

Outline of the T&D Life Group

4. Toward Openness in Management

Management

Management

1. Together with Our Customers
Signing Principles for Responsible Investment (PRI)

4.9

4.12

FS12

1–1

T&D Asset Management signed PRI in March 2012 following Taiyo Life.
● Taiyo Life
In order to further fulfill its social responsibility as an institutional
investor, Taiyo Life determined that it was essential to exert
more influence on society and the global environment throughinvestment and lending activities to a greater extent than everand contribute to realization of a sustainable society. In March
2007, Taiyo Life became the first Japanese life insurance company
to sign the Principles for Responsible Investment (PRI),*1 a global
investor initiative in partnership with the UNEP Finance Initiative(UNEP FI)*2 and the UN Global Compact. Before signing the PRI,
Taiyo Life had taken into account profitability, safety, and public■ Customer-oriented Business Management

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

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

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

FS5● Reflecting Customer Feedback in Operations
The Group’s three life insurance companies have set up a department
and a committee including external members in charge of customer
satisfaction management. We are working on developing a total
system ensuring customer satisfaction at all stages of interaction withcustomers, from making contracts to payment of insurance claims andbenefits, based upon the clearly stated policy for customer satisfaction
and specific guidelines for the handling of customer complaints. All
feedback from customers is integrated into a centralized database,and it is shared by the relevant units for the development and quality
improvement of products and services, as well as for the improvementof business practices.

Main Activities

1) We will incorporate ESG issues into
investment analysis and decision-making
processes● The company has adopted the guidelines for investment and lending in due consideration ofenvironmental, social, and corporate governance aspects, and has incorporated ESG issues into asset
management processes.
● The company has reflected the PRI concept in its internal rules and regulations for asset management.

2) We will be active owners and incorporate
ESG issues into our ownership policies andpractices● The company has specified the PRI concept in the voting guidelines, and plays a role as a responsible
shareholder.
● Taiyo Life discloses, on the company website, its basic policy on voting for domestic shares.

3) We will seek appropriate disclosure on ESG
issues by the entities in which we invest● In order to check the latest situation of investees and borrowers in terms of ESG, the company collects
and carefully reviews the CSR reports (environmental reports) published by them.

4) We will promote acceptance andimplementation of the Principles within theinvestment industry● To promote the PRI, the company explains to corporate pension insurance clients and others about its
asset management policies and activities associated with the PRI.

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

6) We will each report on our activities andprogress towards implementing thePrinciples● Taiyo Life reports the status of its activities on its website and in its corporate communication reports.
● The company promotes employees’ awareness about the PRI by means of internal seminars, in-housemagazines and e-learning.

● T&D Asset Management
T&D Asset Management, agreeing with the ideas of the United Nations’ Principles for Responsible Investment (PRI), signed them in March
2012. By doing so, the company pledges to reflect the ESG (Environmental, Social and Governance) factors in its investment process unlesscontrary to its fiduciary responsibility. T&D Asset Management believes that companies that carry out ESG-conscious business activities arewidely respected by society and can achieve a sustainable growth, and it is aiming to improve its long-term investment performance throughincorporating the ESG factors into corporate evaluation.
*1 The PRI, comprised of six principles, are a code of conduct to encourage institutional investors and the like to take ESG (environmental, social, and corporate governance)
issues into account in their investment behavior.
*2 The UNEP FI is a broad, close-nit partnership comprised of approximately 190 financial institutions from all over the world. In aiming for balance between economic
development and environmental protection, it carries out information exchange and coordination activities with a large number of financial institutions.
*3 For details about Taiyo Life’s Principles for Responsible Investment (PRI) Activities, please visit its official website at http: //www.taiyo-seimei.co.jp/summary/pri.html

1–2

Examples of Improvements Based on Customer Feedback

4.17

PR1

Taiyo Life
Customer’s opinions● As I come home late from work, it is difficult to
use the customer service center on weekdays. I
hope that the call center would be available on
Sundays as well.
● When I filed a maturity claim,I noticed that I
had lost the insurance policy. I was asked tosubmit a copy of certificate of my registeredseal as a substitute for the missing policy. This
made the whole process really bothersome
to me.

How we responded● Our customer service center started operations on Sundays as well from March 25, 2012, andoffers services to perform various procedures seven days a week.

Social Aspects

The Principles for Responsible Investment (PRI)

PR1● We have changed the rule for handling maturity claims to forgo collecting insurance certificates,
deferred insurance fund payment certificates, and annuity payment certificates. Accordingly, theimpression of officially registered seals and submission of a copy of registered seal certificates,
which we previously asked for in case that these certificates were missing, were also abolished.
Note: We provide customers filing a maturity claim with a statement to the effect that the related certificatesare no longer effective, which is to be destroyed by the customers who do retain the certificate at thetime when they confirm payment of claimed insurance.

Daido Life
Customer’s opinions

How we responded● I have to report asset capitalization figures infiling my company’s financial statements. How
can I obtain the current amount information,necessary for the reporting?

● Providing the “cumulative capitalization figures” in the accounting assistance services
In order to increase information accessibility and readability for customers, we have reformed
the related document format design and included the information of “cumulative capitalization
figures” in the new format.

● One of my employees will resign at the endof this month. I need to surrender the related
insurance policy on that date, which is usually
the busiest time in my company. Could I makea request for surrender in advance?

● Starting to accept advance surrender requests
We have started offering service to accept advance request for policy surrender, with thesurrender date (our business day) specified within one month from the date of request.

Environmental Aspects

4–8

Outline of the T&D Life Group

Social Aspects

Management

Management

T&D Financial Life
Customer’s opinions

Inclusion in SRI Indexes

T&D Holdings is included in various SRI (socially
responsible investment) indexes. SRI is a method ofchoosing investment targets not simply based on
financial considerations but also on assessments ofcompanies’ corporate responsibility performance including
contributions to the global environment and society.
We aspire to be a corporate group trusted by global
long-term investors.
17 T&D Life Group Corporate Responsibility Report 2012

T&D Holdings is a member of the following SRI Indexes(as of the end of March 2012)● FTSE4Good Global Index
The FTSE4Good Global Index is a global SRI index ofcompanies meeting environmental, social and otherglobally recognized standards. It has been designed by
FTSE, a company jointly owned by the Financial Times andthe London Stock Exchange.

How we responded● It is bothersome to prepare a notification
form for each policy modification or new
application.

● We have altered the notification form to a new version with the customer information retainedby the company pre-printed, with an aim to prevent faulty documentation, such as incomplete
forms, as well as to decrease the paperwork of customers by reducing the number of items
requiring their entry.

● I thought that there is no limit on the numberof benefit payments for operation.

● There may be a limit on the number of benefit payments for some types of operations. Regarding
such information, we have improved the format of the notice sent to customers to provide details
on the latest payment as well as previous payments more clearly.

T&D Life Group Corporate Responsibility Report 2012 18

Appendix

4–9

■ Activities to Respond to the Customer Feedback
Measures Taken by Taiyo Life

PR1

PR5

● System for Reflecting the Customer Feedback in Operations

Branchoffices
Reports

Relateddepartments

Measures toprevent recurrence,
improve services, etc.

● Renewing and Maintaining ISO10002 Certification
Taiyo Life is committed to enhancing customer satisfaction by
utilizing customer feedback to improve business process andservices. As apart of this effort, we obtained ISO10002 certification,
which is for quality management, customer satisfaction andguidelines for handling of complaints within organizations, on
March 31, 2008, becoming Japan’s first to be accredited for theentire company organization under the international standards, tothe best of our knowledge.
Since then, we have implemented annual programs organized topromote better understanding of the ISO10002 standards and theadequate activities across the entire company, including training
for managers, internal audits and improvement of operations while

Instructions● Breakdown of Customer Feedback Received

Opinions,
recommendations(Units: no. of responses; proportion: %)FY 2009

FY 2010

FY 2011

BranchofficesCall center

WebsiteManagement

Customer surveys

Informal meetings
with customers

Gathering and analyzing
customer feedback

Reports

undergoing annual surveillance assessments and triennial renewal
assessments.
In February 2011, we went through the first triennial renewal
assessment and received the review results stating that ouractivities were satisfactorily in conformity with the ISO10002
requirements, which supported approved renewal of our ISO
certification. For the first annual surveillance assessment after the
renewal conducted in January 2012, we received favorable results
again which said that we were meeting the requirements.
We will make sincere and persistent efforts to provide enhanced
customer-oriented services, thereby increasing customer trust andsatisfaction.

Customer contact

Department in charge of gatheringand analyzing customer feedback

Operational departments

Studying and analyzing improvement measures, reporting to management
Improved products
and services

Social Aspects

Customer Feedback
Council

Instructions

Opinions, requests,
complaints, etc

More reliable and satisfying
customer service

Enhancing customer satisfaction● Customer Survey
Daido Life conducts a number of customer surveys,
including those regarding our products, services andafter-sales services, in a bid to identify hidden issues
related to our business that are difficult to capture
by merely hearing opinions and requests from ourcustomers passively.

Survey of Customer Satisfaction (Comprehensive Analysis)
Very dissatisfied 0.6%
Dissatisfied 0.9％
Somewhatdissatisfied
2.0%
Can’t
say either
23.0％
Generallysatisfied
28.5％

Very satisfied
9.2％
A total of 73.5% of
the respondents
answered that they
were “Very satisfied,”“Satisfied,” or“Generally satisfied.”

Satisfied
35.8％[Outline of Survey]
Survey period:
November and December 2011
Respondents:
Corporate policyholders(random sampling)
Number of selected respondents: 15,000
Valid responses received: 3,504
No. of questions:
30 questions (at a maximum)● Response to Customer Complaints
In our definition, “complaint” means customer dissatisfaction expressed regarding the company’s operations. Upon receiving complaints,
we immediately respond in a sincere manner, setting out to resolve such issues. At the same time we take these complaints as valuable
information to be used for improving our business processes.

Type of feedback
No. received%

No. received%

No. received%

Complaint*

14,05930.7

14,73035.4

11,935

33.1

Comment, request & inquiry

2,324

5.1

2,114

5.1

2,302

6.4

Appreciation & praise

29,43764.2

24,78559.5

21,837

60.5

Total

45,820100.041,629100.0

36,074

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

19 T&D Life Group Corporate Responsibility Report 2012

Environmental Aspects

Sharing of
information

Head officestCustomer
Consultation CentertPayment
Consultation CentertDepartments anddivisions concerned

PR5■ Customer Feedback (Analysis of Customer Complaints)(Units: no. of complaints; proportion: %)FY 2011
Type of feedback
No. received%

Purchase of life insurance policy

1,760

15.7

Payment of premiums

1,320

11.8

Procedures after making a contract

3,919

35.0

Payment of insurance claims and benefits

2,253

20.1

Other

1,947

17.4

Complaints in total

11,199

100.0

T&D Life Group Corporate Responsibility Report 2012 20

Appendix

WebsiteAggregationand centralized
managementof information

Payment
Consultation
CenterImproving businessprocess

CustomersurveystSales representativetCustomer service
stafftAdministrative staff

Preparation of
measures toprevent recurrence,
improve services, etc.

Reports

Management

Policyholder
Meetings

Customer
Consultation
CenterBranch offices

PR1

Customer

Customer Feedback
Implementation
Committeet7JTJUTUP
customerst7JTJUTCZ
customers

Response to customer

Customer Feedback
Information System

Face-to-facemeetings

Analysis andstudy of customer
feedback

Departmentsin charge

Channel for collecting customer feedback
Customer
Service Center(call center)

Measures Taken by Daido Life

● System for Reflecting Customer Feedback in Operations[Workflow for reflecting customer feedback in operations]

By telephone
calls

1–4

Collecting customer
feedback

1–3

Outline of the T&D Life Group

Social Aspects

PR1

PR5

1–6

● System for Rapidly Responding to Customer Feedback

Steady progress has been made in confirming the safety of customers in the areas afflicted by the Great East Japan Earthquake (Iwate, Miyagi
and Fukushima prefectures), and we had nearly completed confirmation of the well-being of our customers by March 2012. We will strive tocontinue being of help to customers in the afflicted areas through our insurance business.

Inquiry

ComplianceDepartment

Company
attorney

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

Complaint Recurrence
Prevention Committee

ReportReportFinancial
institution
agent

Departments
and divisions
concerned
ServiceSupervision
Committee● Customer Survey
T&D Financial Life conducts customer satisfaction survey to proactively reflect customer feedback in its operations. This survey includes questions
about the quality of call handling by the Customer Service Center staff, handling of various procedures by the Company, and so forth.
For more details about the survey, please refer to our website.
Summary of Survey Findings
Q. How did you feel about theapplication form you filled out forthe procedures?
2.2%

About application forms,
96.9% of the respondents
answered that they were
“Easy to understand” or “Fairly
easy to understand.” Aboutcall handling by our Customer
Service Center staff, 88.7% of
the respondents answeredthat they were “Polite andkind” or “Satisfactory.”

29.4%
67.5%

Easy to understandFairly easy to understandSome difficulties in understanding
Hard to understandNo answer[Outline of Survey]
Methodology:

The survey was sent to the customers, together
with documents for procedures, who purchased
insurance policies through financial institution
agents and requested for insurance
conservation procedures.
Survey period:
November 1, 2011 to February 28, 2012
(Responses received by March 31, 2012 were
processed)
No. of surveys sent: 2,309
Valid responses:
926
Response rate:
40.1%

1.0%
2.1%

6.7%
1.2%
0.3%
19.8%

68.9%

Polite and kind
Satisfactory support
Some difficult explanation to understandImpersonal and unfriendly
Have never phoned them
OthersNo answer● Provision of Information on the Internet
T&D Financial Life discloses a summary of customer feedback information such as inquiries, FAQs, complaints, comments and requests on
the website● Customer Feedback (Analysis of Customer Complaints)
Item
New contracts

Life insurance is a mutual aid system in which costs paid to insured
deaths, hospitalizations, nursing care, etc. are covered by premiums
statistically calculated by mortality and accident rates according to
the law of large numbers.
For this reason, life insurance companies are unable to accept
every person who wishes to purchase policies regardless of
their circumstances. In order to maintain the viability of the life
insurance system, some people whose expected mortality rates

1–8

PR1

FS15

or insurance accident rates exceed certain limits are unfortunately
either rejected or accepted only under certain conditions such as
application of additional premiums and so on.
The Group’s three life insurance companies and other Group
members respect customers’ human rights, develop and offer
many unique insurance products which meet a wide variety ofcustomer needs, health conditions, gender, enrollment age andother specific circumstances.

Providing Products and Services that Meet Social Needs

PR5

FS7

The Group’s three life insurance companies and other Group members offer high added-value products in response to the issues and needs
occasioned by the changing social structure, such as the rapid aging of the population and a low birthrate.

Taiyo Life

Daido Life

● Insurance program that offers a variety of options to be selected andcombined flexibly to build plans that meet the needs of individual
customers• Hoken Kumikyoku Best● Medical insurance for people with past hospitalization or surgery
history, or who are currently under medical treatment• Nonparticipating nonselective medical insurance: Taiyo-seimei no
Yasashii Hoken• Nonparticipating semi-selective medical insurance: Kisei Kanwa● Making procedures and consultations “easy, convenient and quick”
by introducing new portable terminals (Taiyo Life)In March 2012 we began to digitize our policy application procedures
using new portable terminals carried by sales personnel. We hope
thereby to make policy application procedures paperless and initial
insurance premium payments cashless, and to reduce the time between
the start of application procedures and the start of insurance protection.
We are also working to ensure high-quality service by utilizing thevideophone functions of these portable terminals to connect customers
at home with our specialists at our head office by videophone to respondto the inquiries from customers in real time.

● Expanded-coverage term insurance providing insurance claims not
only in case of death but also in need of extensive nursing care
• Nonparticipating age-specific maturity term life insurance (for life
security)● Critical illness insurance plan with living benefit that covers cancer,
acute myocardial infarction, and cerebral stroke. Designed toprovide corporations with a strong protection against such risks of
employees.
• Nonparticipating critical illness insurance: J-Type● Corporation-specific medical insurance plan that offers protection
for ensuring business continuity in the event of hospitalization of thecompany owner• Nonparticipating comprehensive medical insurance● Company-wide activities to check up on customer needs• Life insurance policies are long-term by nature, and customers’ needs
may change after purchasing of policies. Since 2011 Daido Life has
been making annual company-wide confirmation of the compatibilityof customers’ current needs with their coverage by briefing
policyholders on their current coverage and offering advice on the
coverage needed.

(Units: no. of complaints)

T&D Financial Life

No. of complaints
FY 2011155

Payment of premiums, etc.

90

Procedures after making a contract

611

Insurance claims and benefits

285

Others

449

Total

1,590

21 T&D Life Group Corporate Responsibility Report 2012

Fairness in offering Insurance Products to the Broader Public

Product/Service Examples

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

0.4%
0.5%

1–7

Environmental Aspects

Report,instructions

Customer Service Division(Customer Consultants)

AnswerRequest for advice,inquiries

Customer Service Center(call center)

CustomerComplaint,
requestfor advice,inquiries

Confirmation of the safety of customers after the Great East Japan Earthquake nearly
100% completed (all three life insurance companies)

Social Aspects

Measures Taken by T&D Financial Life

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

● Whole life insurance plan offering interest return from the selected
foreign currency fund, which will be added to the policy value every
year throughout the insured’s lifetime• Nonparticipating variable whole life insurance (foreign exchange
linked, currency selected, type I): Lifetime Premium World● Whole life insurance plan offering interest return from the fundmanaged in the Japanese yen market, which will be added in a fixedamount to the policy value every year throughout the insured’s lifetime• Nonparticipating whole life insurance (deposit interest rate selected,
type I): Lifetime Premium JapanPet and Family Small-amount Short-term Insurance● Insurance offering protection against illness or injury of pets, asfamily members• Pet medical insurance: Genki Number One

The information concerning insurance products on this page is provided
for the purpose of describing corporate responsibility activities in the
T&D Life Group, not for that of insurance product offering. For moredetails about products, please see the product pamphlets and so on.

T&D Life Group Corporate Responsibility Report 2012 22

Appendix

1–5

Outline of the T&D Life Group■ Providing Wholehearted ReassuranceManagement

Social Aspects

PR6

FS15

The Group’s three life insurance companies and other Group members have established individual Sales Policies for selling life insurance and otherproducts. Under these rules, each Group company strives to develop and offer appropriate products that meet customers’ needs and circumstances.
Sales Policies (Taiyo Life)The following are the Taiyo Life’s basic sales policies for offering financial
products including life insurances to customers. We always endeavor
to develop and sell right products in an appropriate manner in due
consideration of customers’ desires, circumstances and privacy, and provide
suitable services through consultation sales activities.

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

Protection of Personal Information

PR1

1–12

Working toward Better After-sales Service

PR1

The Group’s three life insurance companies have each set up various systems aiming at providing quality after-sales services. At the Customer
Service Center, professionally trained staff handles inquiries and insurance claims from customers nationwide over the telephone in aconsiderate, polite, prompt, and accurate manner. Also, all our branch counter staff and sales representatives, fully aware of the importance of
post-contract support, attend to individual customers, offering best possible service to each of them.
At Taiyo Life, customer service staff calls on customers regularly after contract. As of the end of fiscal 2011, 534 customer service staff members
are offering a range of customer support services, such as changing registered personal information (e.g. addresses), arranging necessary
procedures for making insurance claims, introducing new products and services, and receiving diverse requests from customers.

1–13

Other Services

Outline of the T&D Life Group

Establishment of Sales Policies

PR1

As shown below, the Group’s three life insurance companies offer a diversity of services to meet the requests of customers.
● T&D Club Off
T&D Club Off provides a range of services for health promotion and leisure to the policyholders of the three life insurance companies and Pet and Family Smallamount Short-term Insurance.

■ Examples of Services

The Group’s three life insurance companies and other Group members have formulated
Personal Information Protection Declarations (Privacy Policies) and publicly announced
them on their websites. In addition, T&D Information Systems, a Group company that
supports the information management system of the T&D Life Group, handles various
data, including personal information, appropriately under strict control. In May 2005, T&D
Information Systems obtained a Privacy Mark certification, which is awarded to companies
that demonstrate excellent personal information protection. The company also obtained
ISO27001 Information Security Management System certification in March 2007.

● Domestic accommodations ● Online reservations for overseas hotels ● Business hotel desk ● Golf desk ● Leisure facilities● Complimentary telephone advisory service on childcare, nursing care, taxation, pensions, asset management, post-retirement life, etc.
● Services for supporting daily living, full of many useful services

Please visit each company’s website formore details of the services.

Privacy Mark● Customer Service Center Open on Saturdays and Sundays Taiyo Life

Social Aspects

1–9Management

Social Aspects

In order to provide services to customers who are busy on weekdays, Taiyo Life’s Customer Service Center or call center, operates on Saturdays and Sundays
from 9:00 to 17:00 as well. (Sunday operation started on March 25, 2012.)● Useful Services for SMEs Daido Life
Daido Life provides various services to corporate policyholders to support their business management and promotion of health.

PR6

From contract making and after-sales service to payment of insurance claims and benefits, the three life insurance companies endeavor toprovide services with an emphasis on understandability on the part of customers as an approach to earn trust from customers.

<At the Time of Making a Contract>
Major Documents<After-sales Services>● Clearly worded “Product Pamphlet”● “Product Summary Sheet” (contract summary) tailored to thelife plan of each individual customer● “Notifications of Important Matters”, as a reminder, for callingthe customer’s attention to particularly important points● “Policy Leaflet and Policy Provisions” describing the various
procedures when making a contract, and the structure of the
product● “Confirmation of Intent” as a final step to ensure that thecustomer’s needs are met by the insurance product offered◆ Awards for Customer Services(See page 5 for more details.)

2.10✩ UCDA Award 2012, Insurance Solicitation Brochure
Division, Medical Insurance Solicitation Brochure Category,Special Prize (Taiyo Life)

23 T&D Life Group Corporate Responsibility Report 2012

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

Major Information Provision Services● Notification of policy details● Notification of account transfer payment● Accounting method guidance service

Examples of Measures to Facilitate Making Insurance
and Benefit Claims● Distribution of booklets and leaflets that comprehensively
describe insurance and benefit claims procedures as wellas payable case examples.
● Reimbursement of costs for obtaining medical certificate if
the claim requiring the medical certificate is rejected● Enhancement of Customer Service Center, or call-center,functions● Recommendation for adding designated proxy application
option■ Examples of Services● Providing reports on management strategies, industry trends and other useful business information● Providing a standard form of company regulations● Complimentary assessment of employment regulation● Providing information on public subsidies and supports ● Health counseling and second-opinion service* For more details, please contact the customer service center of Daido Life.

● Services through the Internet

FS14

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

■ Examples of Internet Services
Taiyo Life
● Change of information related to contract for change of address,
request for adding designated proxy application option, change of PIN● Sending application forms on request for change of account, changeof first/family name● Convenient service for fund transfer of policyholder loans,
withdrawal of accumulated dividends and deferred funds● Reissue of insurance certificates, such as annuity payment
certificates, deferred insurance fund payment certificates, life
insurance premium payment certificates● Inquiries about insurance policy details

Daido Life
● Change in contract and insurance claim such as change of address,
account, etc.
● Web-ATM for making loans to policyholders, withdrawal ofaccumulated dividends, etc.
● Inquiries about insurance policy details, inquiries about accounts
for automatic withdrawal of insurance premiums, and advice on
insurance premiums accounting method
T&D Financial Life
● Inquiries about outline and details of policy such as coverage details
and change in accumulated funds● Transfer of accumulated funds, set up transfer ratio, in case ofcontracts with periodic increase of amount● Requests for various forms for procedures, change of address, reissueof life insurance premium payment certificates, etc.
* For more details, please contact the respective customer service
centers of the Group’s three life insurance companies.

T&D Life Group Corporate Responsibility Report 2012 24

Environmental Aspects

Efforts to Offer Customer-Oriented Services

Appendix

1–11

LA11

PR1

FS4

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

1–15

Education Program for New Employees (eCompass)

Taiyo Life

LA11

PR1

1–16

E-DFP (Executive Daido Financial Planner) Program

LA11

PR1

FS4

Sales representatives must get a firm grasp of customer needs, which are diversifying and becoming more sophisticated, and practicehigh-quality consulting-oriented sales. For this reason, Daido Life has set up its own E-DFP (Executive Daido Financial Planner) system
whose purpose is enabling its sales representatives to obtain a wide range of professional knowledge including taxation, finance, andfinancial products.
E-DFP Program

FS4

Taiyo Life has a system in place to train sales representatives to develop their capabilities to design and offer optimal insurance plans thatmeet each customer with different needs depending on a variety of factors, including family structure, occupation, income, plan for children’s
education, insurance already purchased and so on, aiming to increase each customer’s satisfaction. Our sales personnel undertake internal
training programs and work to obtain external qualifications to gain specialist knowledge on insurance products as well as tax affairs andfinancial planning expertise.

Daido Life

Education systemcommon to life
insurance industry
offered by the Life
Insurance Associationof JapanProfessional
Course Exam

Advanced Professional
Course Exam

College Course ExamLife Consultant

SeniorLife Consultant

Total Life Consultant

Acquisition of
E-DFP qualification

Social Aspects

Development of Service Staff Skills

Education Programs for New Sales Representatives
FP skill
certification exam

L General Education
Programs for New
Sales Representatives
L Cultivation of
attitude to work anda sense of
responsibility
L Basic knowledge
necessary for sales
activities

10 daysof training

Stage 1
(prior toregistration)

L Acquiring basic sales
methodologies

4 daysof training

Registration

Application

Basic
training

Examination on general education

Training for New Sales Representatives
Training Stage 1

Training Stage 2

Training Stage 3

Training Stage 4First to third month

Fourth to sixth month

Seventh totwelfth month

Second to third year

Acquiring basic
knowledge of insurance
sales, including
knowledge about
products and tax affairs,
and improving
consultation ability tooffer optimal insurance
plans to customers

Acquiring knowledge ofafter-sales service, andcomprehensive risk
management including
life insurance andnon-life insurance

For 3 months including

13 days of training

Developing an ability
to propose appropriate
life planning solutions
depending uponoccupation, age,composition of family,
etc.

Improving sales
capabilities in each sales
process to overcome
weakness

Compulsory: 3rd Grade
Certified Skilled Worker
of Financial Planning

Self-development:
Affiliated Financial
Planner and 2nd Grade
Certified Skilled Worker
of Financial Planning

For 3 months including

For 6 months including

For 2 years including

6 days of training

6 days of training

8 days of training

2nd Grade Certified Skilled Worker
of Financial Planning or above

Sales Agent Training Program

Daido Life

LA11

PR1

FS4

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

1–18

Wholesaler Activities

T&D Financial Life

LA11

PR1

FS4

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

Appendix

Continuous Educational Program

1–17

3rd Grade Certified Skilled
Worker of Financial Planning

Environmental Aspects

1–14

Outline of the T&D Life Group■ Professional training for higher quality service

Management

Social Aspects

25 T&D Life Group Corporate Responsibility Report 2012

T&D Life Group Corporate Responsibility Report 2012 26

■ Use and Development of Human Resources

Human resources development at the T&D Life Group focuses on “development of future leaders” and “creation of corporate culture that encourages
demonstration of diverse talents,” as stated in its Medium-Term Management Plan. Under these shared goals, each Group company has formulated its training
programs to develop and enhance the skills and capabilities of employees.

2–2

Employee Education and Training

LA11

FS4

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

2–3

Initiatives to Offer Employees Opportunities for Growth

LA11

FS4

The T&D Life Group carries out a systematic job rotation so that employees can enhance their ability to work with a broad perspective of the entire company
by experiencing various jobs within the organization. Young employees are rotated through different positions, for example moving between the Head Officeand branches for a certain period after they start working, or moving from sales to administrative jobs, or vice versa, in order to acquire basic knowledge
and improve their skills. At the managerial level, employees who have served as Head Office division managers are to serve as branch managers, or branchmanagerial staff are rotated to Head Office positions in order to strengthen their managerial skills.
In addition, the Group’s three life insurance companies furnish employees with opportunities to actively develop their own skills and offer support for their
preparation of career plans.
Taiyo Life, Daido Life, T&D Financial Life● In-house Recruiting System
Under this system, employees can take up various challenges, such as
application for positions of their choice and MBA programs.
● Personnel Exchanges
Personnel exchange among the Group’s three life insurancecompanies allows employees to get involved in work other thanthat in their regular position. We expect this interchange not only tostimulate communication within the Group but also to heighten thecompetitiveness of the entire Group through sharing the strengths ofeach member company.

Taiyo Life
● Working Experience at Different Workplace
Taiyo Life has developed a personnel program to offer employees anopportunity to work at different branches or at the head office, with aview to assisting employees to gain a wider range of insurance businessexperience, increasing operational efficiency and facilitating in-housecommunication.
Daido Life
● Overseas Training Program
Daido Life organizes overseas training programs mainly for young
employees, seeking to foster future leaders that are capable of flexibly
responding to constantly changing business environments resulting
from economic globalization, as well as to help them develop strong
leadership and language skills. This project annually invites applications
and sends selected applicants abroad to participate in overseas trainee
or internship programs hosted by local companies.

■ Diversity Initiatives

2–4

Employment of People with Disabilities

LA13

As of the end of March 2012, a total of 307 employees with disabilities, including 54 new recruits for fiscal 2011, worked in the Group’s three life insurancecompanies, accounting for 1.95 percent of the total number of employees. We will continue working to create a workplace environment that encourages andsupports people with disabilities to work comfortably.

2–5

Reemployment of Seniors

LA11

The Group’s three life insurance companies have introduced a reemployment program for employees reaching the mandatory retirement age. Under thisprogram, individuals meeting certain criteria can be re-hired up to the age of 65. In addition, Taiyo Life and Daido Life hold life plan seminars for employees ofa certain age before their retirement. The seminars offer them opportunities to think about their future styles of working and living.

2–6

Initiatives to Support Women’s Careers

Because it is committed to enabling work with high levels of motivation andenthusiasm by all employees, the Group actively makes full use of all personnel
capabilities and determines postings regardless of gender.
The Group is building workplaces where women can fully utilize their skills
and engage in an extensive range of activities. Specific steps taken to this end
include the promotion of talented female employees to management positions,provision for a change of job status from clerical work to career track andorganization of seminars to encourage female workers to build their careers.

● Group Joint Seminars
On December 14, 2011, the T&D Life Group held a joint Group seminarfor women, attended by 190 female executives and employees as well
as mid-career professionals from the three life insurance companies,
aimed at helping female employees take on challenges and boost
their careers. Session 1 of the seminar featured a lecture entitled“Relish Challenges without Self-Imposed Restrictions” given by Mikie

2–7

Yumoto, the life insurance industry’s first female executive. Session 2
saw discussions held in groups of two or three on “Tasks We Can Start
Tomorrow to Achieve Results and Grow,” followed by presentations
offering up recommendations based on these discussions to subordinates
and junior colleagues. On February 8, 2012, a joint Group seminar fordivision managers was held with participation by 223 management
personnel, primarily executives and line division-manager level staff fromT&D Holdings, the three core life insurance companies and T&D AssetManagement, at which Ms. Yumoto gave a talk on the topic of “Diversity
Management as a Strategic Issue—Creating an Environment Giving
Women More Active Roles.”● Diversity Promotion Project Team

Taiyo LifeIn September 2012 Taiyo Life set up the Diversity Promotion Project Team,
which promotes activities aimed at giving women more active roles,
defining it as part of its primary mission.

Human Rights Education

HR3

FS4

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

■ Data on T&D Life Group Employees

2–8

Employee Statistics

LA1● Group’s Three Life Insurance Companies
No. of people hiredMarch31, 2011

March
31, 2012

FY 2010

20,451

19,863

4,097

No. of employees

March 31, 2011

March 31, 2012

20,340(1,999)19,606(1,867)

Investment-related
businesses

514

(41)

501

(34)

Administration-related
businesses

878

(311)

875

(277)

21,732(2,351)

20,982(2,178)FY 2011
3,767

4,342

4,197

204

182

Female16,10915,666

3,893

3,585

13,056

12,790

3,842

3,610

Male

528

477

52

53

Female12,52812,313

3,790

3,557

Administrative staff

6,781

6,539

255

157

Male
(Managers)

3,814(1,946)3,720(1,877)152

129

Female(Managers)

2,967
(152)

2,819
(161)

103

28

Career track/area career-track employees, others

4,569

4,418

205

141

Clerical employees

2,212

2,121

50

16

Customer service staff

614

534

0

0

2–9

Insurance and insurancerelated businesses

Total* The number of employees shows the number of employed staff
excluding executive officers. The number of part-time workers is shownin parentheses as an annual average, which is not included in thenumber of employees.

Workplace Data (Group’s Three Life Insurance Companies)
FY 2010

FY 2011

Employment rate for persons with disabilities (%)

1.76

1.96

No. of employees taking maternity leave

149

191

No. of employees taking childcare leave

191

235

Male

75

76

Female

116

159

5

6

Male

0

1

Female

5

5

11.5

11.1

Average number of paid vacation days taken

LA13

No. of employees

Business division

Male
Sales representatives

LA2● T&D Holdings Consolidated

No. of employees

No. of employees taking nursing-care leave

27 T&D Life Group Corporate Responsibility Report 2012

LA11

Social Aspects

FS4

3.11

LA1

LA2

Environmental Aspects

Basic Concept of Human Resources Development Policy

LA13

T&D Life Group Corporate Responsibility Report 2012 28

Appendix

2–1

Outline of the T&D Life Group

2. Together with Our Employees

Management

Social Aspects

Dialogue and Consultations with Labor Unions

4.4

Each of the three life insurance companies in the T&D Life Group has an independent labor union, and the companies and labor unions work
together to maintain a sound labor-management relationship based on the spirit of trusting each other. The companies have proactively
discussed with the unions on a wide range of issues including business management, corporate policies, wages, working hours, holidays,
personnel management systems, fringe benefits and so forth. We believe that a truly meaningful cooperative relationship between
companies and the labor unions can be built only through straightforward discussions based upon their respective viewpoints, and that kindof relationship will motivate employees and bolster the competitiveness of the companies.

2–12

Initiatives Reflecting Employee Feedback

4.4

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 the views from
employees as reference information for management, which include opinions about the current personnel system and the operation of thesystem, as well as the employee satisfaction, a critical element leading to a greater customer satisfaction.

2–13

Health Care for Employees

LA8● Initiatives by Human Resources Department
The T&D Life Group is also concerned about management of themental health of its employees. It has concluded contracts withphysicians specializing in mental health and made arrangements
for employees to get consultation and treatment without worry.
In addition, the Group’s three life insurance companies implement
the following measures.
Taiyo LifeTo prevent their subordinate staff from experiencing mental disorders
and to build a vibrant workplace, all the managers are encouraged totake the Certification Test for Mental Health Management sponsoredby the Osaka Chamber of Commerce and Industry.
Daido LifeFor newly appointed supervisors and managers, mental healthtraining is conducted by outside lecturers and through e-learning.
T&D Financial Life
Training sessions are organized for all managers to learn aboutmeasures for mental health care required for managers.

29 T&D Life Group Corporate Responsibility Report 2012

LA9
● Health Insurance Societies
The Group’s three life insurance companies have their own
independent health insurance societies, which work to prevent
lifestyle diseases, promote good health and engage in otheractivities to help society members manage their health. The
societies cover medical costs for the members and theirdependents; conduct public relations campaigns to raiseawareness about proper use of health insurance; pay subsidies forannual physical examinations such as complete medical check-ups
and promote cancer screening. Since fiscal 2008, the companies’
health insurance societies have also been implementing specified
medical check-ups and health care guidance with the aim ofpreventing lifestyle diseases.

EC8

The T&D Life Group has formulated the T&D Life Group CSR Charter based on 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.” The Group regards not only contribution throughour main business but also through extra activities of contribution to communities and society as naturally being a duty that an enterprisemust discharge as a member of society. Based on this stance, the Group actively engages in a wide range of activities of social contribution
through T&D Holdings, each Group company, and foundations as well as volunteer works by executives and employees.

■ Activities for Local Communities and Society

3–2

Blood Donation Drive

EC8

The T&D Life Group cooperates with blood drives hosted by the Japanese Red Cross Tokyo Metropolitan Blood Center.
In this semiannual joint group project, a blood donation clinic is set up for two days at the Shiodome Head Office Building and executives andemployees are encouraged to donate blood. In fiscal 2011, a total of 397 people in the Group contributed their blood to the drive.

3–3

Disaster Relief Fund Donations

EC8

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

3–4

Nationwide Clean Campaign

Taiyo LifeEC8

As a part of its activities for contribution to the community, Taiyo Life began cleaning of the vicinity of its Head Office in 1982. In 2004, it
renamed this activity the “Nationwide Clean Campaign,” and its branches nationwide, from Hokkaido in the north to Okinawa in the south,
began clean-up campaigns in the surrounding community. In fiscal 2011, the Campaign attracted 9,692 participants (executives, employees,
and their families) from the Head Office, affiliated firms, and branches.
The Head Office, based in Shiodome district in Tokyo, organized a joint street cleanup campaign in cooperation with the Minato Ecoconscious Consortium (mecc) based in Minato Ward in Tokyo. Employee volunteers from Group companies (Daido Life, T&D Financial Life, T&D
Asset Management, T&D Holdings) and Taiyo Life’s affiliates as well as from mecc member companies participated in the event.

3–5

Supporting the National Sports Games for the Disabled

Daido LifeEC8

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

Social Aspects

certification for their third-stage action plans as meeting thecriteria of the Act on Advancement of Measures to Support Raising
Next-Generation Children, following the first in April 2007 andsecond in May 2009.
Additionally, in April 2008, T&D Information Systems became thefirst company with less than 300 employees in the information
services sector in Saitama Prefecture to acquire the same
certification. The company received a third-stage certification
under the same initiative in May 2012.

Basic Concept

Environmental Aspects

The T&D Life Group promotes work-life balance as part ofits efforts to create a rewarding workplace that encourages
individual employees to demonstrate their capabilities to thefullest. We offer e-learning training on this theme on a continuingbasis to explain about the goals the Group aims to achievethrough this initiative, encouraging employees to reevaluate theirworkplaces and work style.
Regarding support for the development of the next generation,in May 2011 the Group’s three life insurance companies received

2–11

3–1

Work-life Balance Initiatives* The National Sports Games for the Mentally Handicapped merged with the National Sports Games for the Physically Disabled in 2001, and has been held
as the National Sports Games for the Disabled since then.

3–6

Providing Asset Management Services to Universities

T&D Asset Management

EC8

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

T&D Life Group Corporate Responsibility Report 2012 30

Appendix

2–10

Outline of the T&D Life Group

3. Growing with Society■ Worker-friendly Work Environment

Management

Social Aspects

■ Activities of Foundation

Taiyo Life and Friends of Taiyo Life Goodwill Circles support the Japan Down Syndrome Society and participate in some activities inpartnership with them.
<Main Activities>● The company supports activities as a co-sponsor.
● The company provides meeting rooms in its buildings for seminars, council and board meetings held by the Society.
● Executives and employees from branches and Head Office departments take part in the Society’s activities as volunteers.
<Main Volunteer Participation Achievements in FY 2011>● A total of 11 employees participated as instructors in the Bicycle Riding Course for Children and Adults with Down Syndrome, which was held in Imabari
City, Ehime Prefecture.

3–8

Open Endowed Lectures at Universities

Daido Life

EC8

Daido Life began supporting open lectures at universities in fiscal 2002 as part of the company’s centenary celebrations. The lectures areorganized to provide owners and managers of small- to medium-size enterprises with opportunities to acquire knowledge and skills relevant
to business management, by exploring a variety of themes selected for each university using theoretical and practical approaches.
In fiscal 2011, the open lectures were held at five universities. Over the past decade, approximately 8,100 people have attended the lectures,
which have been favorably received by the participants.
<In fiscal 2011, open lectures were held at:>
Fukushima University, Meiji University, Kwansei Gakuin University, Kansai University, Fukuoka University

Friends of Taiyo Life Goodwill Circles

EC8

The Friends of Taiyo Life Goodwill Circles (“Friends”), which was established in December 2005 and is composed of executives and employees fromthe company and its affiliates, has 9,274 members as of March 31, 2012. In order to support social charitable activities, the members contribute every
month odd amounts under 100 yen, or any amount from 100 yen to 1,000 yen, integral multiple of 100 yen, from their take-home salary.
At present, the Friends mainly provides supports for community-based social charitable activities by branches nationwide and Head Office
departments; environmental conservation activities in cooperation with NPOs and the like; and educational activities. The details of theactivities are published in Taiyo Life’s in-house magazine titled the Friends News, and the company is calling for broader participation by
executives and employees.
<Main Activities in FY 2011>● Contributions to local communities: Participation in a concert hosted by a childcare facility for kids with special needs in Setagaya Ward in Tokyo;
collection and donation of pull tabs, aluminum cans, and PET bottle caps; and branch counter displays of pictures and handicrafts made bypolicyholders and local residents.
● Educational support: Donations of school bags to children in Afghanistan through JOICFP (an international cooperation NGO)

3–10

Daido Life Employees’ Community Contribution ClubEC8

The Daido Life Employees’ Community Contribution Club, which was established in 1992 as an independent organization for corporate citizenshipactivities and is composed of its executives and employees, works to promote and support fund-raising activities and volunteer activities.
In addition, since 1994, we have been implementing a program of “One-day Outing Volunteer Activity for the Physically Disabled.” Under thisprogram, employees take a volunteer work leave to help people with physical disabilities who have few opportunities to go outside take partin 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, or engaging together in other activities.

The Taiyo Life Welfare Foundation

EC8<Purpose of Establishment>
Established in 1984 to commemorate the 90th anniversary of the founding of Taiyo Life. This foundation works to improve social welfare in
Japan by sponsoring the projects to enhance welfare of the elderly and the disabled.
* In December 2009, the name of the foundation was changed from Taiyo Life Himawari Foundation to the Taiyo Life Welfare Foundation.

<Main Activities>● Project grants: Grants to the projects by volunteer groups and NPOs working to contribute to the welfare of the elderly and the disabledliving at home.
● Research grants: Grants for research and surveys regarding lifestyle diseases and the health and welfare of the elderly.
<Cumulative Grants from Establishment to FY 2011> 1,606 grants, 1,097.62 million yen● Main Activities in FY 2011
In addition to project grants and research grants, the foundation organized a special grant scheme aimed at supporting reconstruction
efforts in the wake of the Great East Japan Earthquake. Under the scheme, priority was placed on providing donations to facilities andorganizations that were affected by the disaster and to those carrying out activities in the afflicted areas. A total of 5.2 million yen was
donated in 13 grants under this special scheme. As a part of its efforts to help disaster victims, the foundation also contributed 1 million
yen to the special funds for charitable contributions for the Great East Japan Earthquake & Tsunami organized by the Japan Associationof Charitable Organizations (JACO).

3–12■ Employees’ Voluntary Initiatives

3–9

3–11

Daido Life Welfare Foundation

EC8<Purpose of Establishment>
Established in 1974. Upholding its “people first” principle, this foundation aims to contribute to the enhanced health and welfare of people
by providing grants to programs designed to address health problems arising from deterioration of living environments and various issues
associated with the sharp increase in elderly population.
<Main Activities>● Regional health and welfare research grants & volunteer activity grants• Regional health and welfare research grants: Support research programs conducted by people involved in public health promotion andwelfare activities to address issues faced by local communities in the areas of insurance, medical care and social welfare• Company worker volunteer activity grants: Support volunteer activities conducted by people who use their days off to work towardenhancing the welfare of senior citizens or disabled people, or fostering the healthy mental development of children through social
interchange• Senior volunteer activity grants: Support volunteer activities conducted by people aged 60 and over to enhance the welfare of seniorcitizens or disabled people, or foster the healthy mental development of children through social interchange<Cumulative Grants from Establishment to FY 2011> 3,152 grants, 1,495.88 million yen● Home nursing consultation and practical training session
Host home nursing training session jointly with the Osaka Center of the Japanese Red Cross Society where participants can learn abouthome nursing for the elderly and sick and receive practical training.
Since 1980, about 4,700 people in total have taken the course.
● Publication of health brochures
Publish the “Environment and Health” series brochures, which contain articles written by experts in a compact and reader-friendly styleon various issues of particularly high public interest in areas of the environment, health and welfare. Since its launch in 1975, 67 brochures
have been published.

<Main Activities in FY 2011>● Fund raising and donation: Proceeds from donations from executives and employees and revenues from the charity calendar exhibitions were used as
funds to make contributions to organizations that support social charitable activities and facilities for the disabled.
● Used stamps and pre-paid cards collection drive: Used stamps and pre-paid cards collected by Head Office departments, branches nationwide, and affiliates
were put to good use in supporting overseas medical cooperation and in giving wells as gifts to the areas in Asia suffering from water shortages throughorganizations supporting social contribution activities. In addition, by collecting PET bottle caps, the Daido Life Employees’ Community Contribution Club
also assisted the ECOCAP Movement, which works to improve the global environment and to send vaccines to the children of the world.
● Volunteer activities: In addition to participating as volunteers in the “National Sports Festival for the Disabled” and conducting “One-day Outing
Volunteer Activity for the Physically Disabled,” the Club also participated in clean-up activities in the areas surrounding the Osaka Head Office and theTokyo Head Office.

31 T&D Life Group Corporate Responsibility Report 2012Management

EC8

Social Aspects

Taiyo Life

Environmental Aspects

Supporting the Japan Down Syndrome Society

Appendix

3–7

Outline of the T&D Life Group

Social Aspects

T&D Life Group Corporate Responsibility Report 2012 32

<Main Activities>● Daido Life Foundation Awards for Area Studies
The foundation organizes an award project to support area studies conducted globally. “Daido Life Foundation Awards for Area Studies”
and “Daido Life Foundation Encouragement Awards for Area Studies” are presented to researchers who have achieved superior results inarea studies of various parts of the world. In addition, “Daido Life Foundation Area Studies Special Awards” are presented to individuals for
distinguished contributions to enhancing international understanding and friendship.
● Translation and publication activities
In an effort to promote friendly relationships between Japan and other Asian countries, the foundation translates contemporary Asian
literature into Japanese, with the aim of deepening the understanding of Japanese people toward Asian countries. A total of 58 works
from 12 countries have been translated and donated to universities and public libraries across Japan. At the same time, Japanese
literature and biographies of Japanese people are translated and published in various Asian languages in a bid to help people in
the region develop a better understanding about Japan and its culture. A total of 29 Japanese works have been translated into local
languages for publication in eight countries, and donated to local universities and libraries.
● Educational support activities
The foundation provides scholarships and donates books and school supplies to the students from socially disadvantaged backgrounds
in the Southeast Asia as a part of its educational support initiatives to develop young people who will work toward enhancing
international mutual understanding.
<Activities since FY 2009: School Building Project>
As a part of the commemorative activities related to the centennial of its founding, the Foundation has built 16 schools in five Southeast
Asian countries—Myanmar, Thailand, Cambodia, Laos, and Vietnam. Following the completion of this commemoration project, an
additional school building plan was organized to be launched in fiscal 2009 in Laos, where the education infrastructure is inadequate,
with a view to further advancing international mutual understanding. The first and second schools were completed under the project inFebruary 2011 and July 2012, respectively.

1. Together with the Global Environment
1–1

Basic Concept

4.8

EN26

1–3

Forest Conservation and Afforestation

EN18● “Lights Down” Campaign
As an activity to raise the environmental awareness of each of theGroup’s executives and employees, the T&D Life Group has been
conducting a campaign in which it calls for a simultaneous lightswitch-off in offices twice a year, in July and December. This wasdone in support of the “Reduce CO2: ‘Lights Down’ Campaign”
resting on partnership between the Ministry of the Environment
and the “Candle Night” movement organized by a private-sector
group. The Campaign exhorts business to turn off both indoor andoutdoor lights to call more attention to environmental problems,from a standpoint of preventing global warming.

Taiyo Life

● Forest Conservation and Afforestation Activities
Life insurance companies use vast amounts of paper including office paper, life insurance pamphlets, policy provision and others in the courseof its business operations. To restore forest resources and preserve greenery, Taiyo Life conducts afforestation projects. It has established“Forest of Taiyo Life” in Nasu-Shiobara (Tochigi Prefecture) and Takashima (Shiga Prefecture).
● Forest Conservation Initiative Based on Promoting the Use of Timber from Forest-Thinning
As an initiative for reducing waste of resources while promoting sustainable forest conservation, Taiyo Life is doing the following activities inorder to achieve the “use it wisely” component of the “plant it, raise it, harvest it, use it wisely” cycle for forests.*1“Chopsticks Project” to promote use of disposable
chopsticks, made from domestic timber from forest thinningand wood scraps, by employees during lunchtime, etc.
Started with a recommendation by the environmental NPO Ecology Online.
Our employees and executives have used 446,685 pairs of chopsticks intotal from September 2006 to March 2012 including a gift pack of 5 pairspresented to our customers.

Active Use of “3.9 Paper”*2
Chopstick paper cases for “Wood Thoughtfulness Chopsticks” etc.

Active use of paper made from timber from forest-thinning
Taiyo Life Communication Report*1 In Japan, 40 percent of forests are man-made, planted to supply lumber. If the “plant it, raise it, harvest it, use it wisely” approach fails to work properly and forests are not

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

33 T&D Life Group Corporate Responsibility Report 2012

● Energy-Saving Efforts
Each year the T&D Life Group participates in a “Cool Biz” campaign
from June to September (setting thermostats at 28ºC) and a“Warm Biz” campaign from November to March (maintaining aroom temperature of 20ºC) to do its part in preventing global
warming. Also, as power-saving measures, the Group reduces
illumination during work hours in offices and meeting rooms,
hallways, and other areas within the buildings.

EN7

FS1

In April 2006, the T&D Life Group formulated the T&D Life Group Environmental Policy, to clarify the Group’s stance on the environment and to
publicize the policy among executives and employees. The Group also promotes various activities to reduce our environmental impacts.
In addition, based on the above environmental policy, the Group has set out its Green Purchasing Standards and Rules, and gives priority
to purchasing environment-friendly products, mainly for office furniture, equipment, and consumable supplies (specifically, paper, officemachines, stationery, air conditioners, refrigerators, lighting fixtures, television sets, heaters, automobiles, etc.), thereby encouraging proenvironmental behavior within the supply chain.

1. Environmental Conservation Efforts through Business Activities
We will contribute to the protection of the global environment in allof our business activities.
2. Reduction in Environmental Impact
Recognizing the environmental burden of resource or energy
consumption and waste emissions, we will work toward reducing
environmental impact by conserving energy or resources, recycling
resources, and promoting green purchasing.
3. Compliance with Environmental Laws
We will observe all environmental laws and regulations.

Major Initiatives of the Group

conserved, they will not function effectively to absorb CO2 or prevent natural disasters.
*2 3.9 Paper was developed as a structure for promoting use of domestic lumber and timber from forest-thinning. When 3.9 papers are used, printed material users
themselves, but not forest managers, bear the transport costs of timbers from forest-thinning to the wood chip company.

1–4

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

1–2

Social Aspects

EC8

Environmental Communications and Educational Activities

FS4

Environmental Aspects

The Daido Life Foundation

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

Appendix

3–13

Management

Social Aspects/Environmental Aspects

4. Promotion of Environmental Awareness-Raising Activities
We will raise environmental awareness among all Group members
through awareness-raising activities to promote environmental
protection initiatives.
5. Continuous Improvement in Environmental Initiatives
By setting environmental objectives and reviewing them regularly,
we will endeavor to continuously improve our environmental
performance.
All members of the T&D Life Group are notified of this environmental
policy, which is also publicly disclosed.

T&D Life Group Corporate Responsibility Report 2012 34

■ Group Environmental Performance Data

■ Environmental Targets and Achievements

The Group’s CO2 emissions and electricity consumption significantly declined compared to the previous fiscal year.
For the scope of the Group’s environmental impact data, please refer to “1-12 Environmental Impact Data and Scope of Group-wide Targets”
on page 36 of this report.

Targets have been achieved in all three areas of “electricity consumption,” “office paper consumption” and “green purchasing ratio.”
For the scope of the targets shared within the Group, please refer to “1-12 Environmental Impact Data and Scope of Group-wide Targets” (below).

3.9

Indirect CO2 emissions(GHG Protocol Scope 2)
Direct CO2 emissions(GHG Protocol Scope 1)
Total

1–6

54,921 t

44,366 t

3,063 t80.8%

2,517 t57,984 t• CO2 emissions are calculated in accordance withthe provisions of the Ordinance on calculation ofgreenhouse gas (GHG) emissions due to businessactivities of specified businesses.

Year-onyear change

FY 201182.2%

46,883 t

80.9%

Electricity Consumption

Electricity consumption

EN18

3.9

EN4

FY 2011130,174 MWh

109,570 MWh

1–7

Water Consumption and Reclaimed Water Usage Rate

EN8

EN10

FY 2011

Reclaimed water usage rate

24.3%

EN22
Paper waste

FY 2010

FY 2011

Final disposed amount

94 t

56 t

Recycled amount

401 t

389 t

Year-on-year change

Total amount generated

495 t

445 t

90%

FY 2011

100
80

48 t

Recycled amount

72 t

99 t

Year-on-year change

Total amount generated

155 t

147 t

95%

Paper waste
Waste other than paper

81%

87%

46%

67%

35 T&D Life Group Corporate Responsibility Report 2012

Versus FY 2011
target (% change)

234 t

222 t

184 t

−17.1%

150
121

2,117

FY 2009

FY 2010

Versus
FY 2011target80.1%(–19.9%)150
0

FY 2011<FY 2011 Results>
We achieved the target by restricting a number of pages to be copied,
reducing meeting materials in hard copy, promoting 2-in-1 printing (printing
two pages of information on one page), and promoting duplex printing.
<Future Efforts>
We will continue to consistently implement the aforementioned measures.

Green Purchasing Ratio
FY 2011 results

80% or above

95.9%

From FY 2009, the scope of applicable entities has
been expanded.

<FY 2011 Results>
In fiscal 2010, the Group launched a system that requires internal approval for the purchase of products
other than eco-friendly products like stationery and office supplies. As a result of implementation of thissystem, the target was well-exceeded in fiscal 2011.
<Future Efforts>
We will continue implementing the aforementioned measures consistently.

Environmental Impact Data and Scope of Group-wide Targets

80
67

CO2

Electricity

Since FY 2009

Since FY 2009

Water

60

530
106 43

200
0

46

495

445

94

56

424

401

389

146

155

147

83
63

FY 2009

FY 2010

40

3.11

Waste

Electricity

Office paper

Green purchasing ratio

Taiyo Life, Daido Life, T&D Financial Life
Since FY 2009

Head Office
Major offices at headquarters*1
T&D Asset Management

Since FY 2009
Up to FY 2008

Up to FY 2008

*2

*3
Since FY 2009 H2

Since FY 2009 H2

T&D Information Systems

20

83

48

72

99

FY 2011

3.7

Group-wide targets

All departments at headquarters

600

3.6

T&D Holdings
All companies

81

400

FY 2011

FY 2011 target 155
151

152

Group environmental impact data

(%)

800

83 t

FY 2010

FY 2011 results

Recycling rate (paper waste)
Recycling rate (waste other than paper)

87

Final disposed amount(3) Recycling rate

FY 2011 target

Target1–12(t)

FY 2010

2,619

160

Waste other than paper

Final disposed amount
Recycled amount

1,000(2) Waste other than paper

Baseline

1–11

Waste Generation and Recycling(1) Paper waste

2,648

165

Versus
FY 2011target80.1%(–19.9%)FY 2011 target
2,642

79,500 m3

Water consumption (Utility + Reclaimed water)

1–8

Total

170

EN1

<Long-term Target>
Reduce the five-year average (fiscal 2009–2013) by 5% against the baseline* MWh=1,000 kWh(kWh/m2)

Office Paper Consumption

Baseline: Five-year average until FY 2008

84.2%

Consumption by unit of floor space

Total(1,000 kWh)<Long-term Target>
2,900
Total: Reduce the five-year average (fiscal 2008–2012) by more than 2% against the baseline
Per unit of floor space (exclusively owned area): Not to exceed the baseline
2,800<FY 2011 Results>
In our main office building, the Shiodome Shiba-Rikyu Building, as a whole, our
2,700electricity consumption in fiscal 2011 was below the reduction target by 19.9% throughour efforts, by addressing the electricity shortage that occurred in the wake of the
2,600
Great East Japan Earthquake, and strengthening energy-saving efforts carried out in
day-to-day operations, including turning off the lights during lunch hour, setting PCs
2,500
to standby mode when away from desks, stricter air conditioning control after regular0business hours and turning off copiers and printers when not in use.
<Future Efforts>
We will continue to implement the above measures to further enhance energy conservation.

1–10

Year-onyear change

FY 2010Baseline: FY 2006 H2 + FY 2007 H1

EN60

Environmental Aspects

FY 2010EN16EN5Management

CO2 Emissions

EN4= data covered (unchanged)*1 Major offices*2 Waste
Up to FY 2008 = the data covered up to FY 2008
Since FY 2009 = the data covered in FY 2009 and subsequent period(1) Shiodome Shiba-Rikyu Building
Covered• Waste from the Shiodome Shiba-Rikyu Building means the waste generated from
Covered(2) Daido Life Osaka Head Office Building
the whole building, including restaurants, retail stores, and other establishments(3) Taiyo Life Urawa Building
Not coveredthat are not operated by the Group.
• In accordance with the revised Act on the Rational Use of Energy, the data
calculation methods for CO2 emissions and electricity consumption have changed since fiscal 2009.
• Tokyo Daido Life Building is not included in the major offices, as the building has been demolished under a redevelopment project.

*3 Setting ofelectricity target
CoveredNot covered
Not covered

T&D Life Group Corporate Responsibility Report 2012 36

Appendix

1–5Electricity Consumption

Social Aspects

1–9Outline of the T&D Life Group

Environmental Aspects

I appreciate being given the opportunity to provide my observations and suggestions on the T&D Life Group Corporate Responsibility Report 2012
(Data Edition). These comments may include excessive expectations, but I hope they will serve to further enhance the report in the future.

1. Confirming shared concepts and philosophy
I appreciate that the report begins by clarifying the T&D Life Group’s key
concepts and views that underpin the Group management—specifically,shared philosophy and vision, strength based on organizational “breadthand depth,” and the basic stance of fulfilling CSR through core businesses
and acting toward this goal. These have been stated in previous CR reports,and still now such repetition is irrefutably important and effective indeeply instilling the fundamental ideas within the Group as well as widely
disseminating them among stakeholders.
2. Recognizing employee contributions
Despite the occurrence of massive disasters and their adverse impact on
the economy, the Group saw favorable business performance over the
past year. This is, I believe, attributable to individual employees’ persistentefforts that contributed to elevating the Group’s reputation. Supportedby their dedicated efforts, the Group accomplished considerable resultsin diverse activity areas ranging from introducing innovative products,
services and ICTs to meet customer needs, to conducting a variety of
training and personnel programs and environmental initiatives, particularly
those intended to reduce CO2 emissions, electricity consumption and office
paper and supplies use. I perceive that these environmental efforts resulted
in substantial contributions to the Group’s energy conservation and cost
reduction.
3. Summarizing the disaster response
In response to the Great East Japan Earthquake, the insurance sector
promptly took action to offer the highest levels of support to people
that were affected. Due to sincere industry-wide efforts, the security of
approximately 2.93 million policyholders was confirmed (confirmation
rate: 99.97%), a total of 155.7 billion yen was paid to 20,437 insurance
claims and the premium payment grace period was extended for 230,517
policies, according to Social Responsibility Report 2012 of the Life Insurance
Association of Japan. The T&D Life Group was also part of this industrial
action and publicized detailed stories on its group-wide efforts in the 2011
CR report. Given the scale of the disaster that has imparted unprecedented,
prolonged damage to people’s lives, a final summary report on theGroup’s related activities might well be included in this report, as I believe
this remains a historic topic of much public interest and it would be an
opportunity for the Group to provide readers with valuable advice together
with useful information preparing for a possible emergency.
4. Working for sophistication of risk management
Governments worldwide have recently begun to take a vigorous stancetoward stricter financial risk management. In Japan , the Financial
Services Agency is promoting corporate-wide centralized enterprise risk
management, and is checking on corporate risk governance, recent trends
and issues regarding risk appetite, and managerial status of risk and core
capitals. Outside Japan, the EU will launch the Solvency II Directive inJanuary 2014, and the US government plans to introduce their own risk
and solvency self-assessment scheme promoted by the International
Association of Insurance Supervisors. In response to this global movement
toward enhanced financial soundness, I understand the T&D Life Groupis also working to develop a multifaceted risk management system that
accommodates risk appetite, and integrated management of assets andliabilities, and so on. Such efforts of the Group toward sophisticated risk
management would be worthwhile topic to be described in the CR report.

37 T&D Life Group Corporate Responsibility Report 2012

5. Utilizing financial functions to fulfill social responsibility
The financial services sector, given its inherent public nature, is expectedto address societal issues and contribute to solve them through applying
its core functions, namely using investment and loan programs and otherfinancial tools toward the greater sustainable society. As these expectations
have been intensifying globally, major financial institutions have begun tosign a series of relevant initiatives including the Principles for Responsible
Investment, the Principles for Financial Action towards a Sustainable Society(Principles for Financial Action for the 21st Century), and Principles for
Sustainable Insurance (backed by the UNEP Financial Initiative and launched
in June 2012 by a group of the world’s leading insurers), thereby publicizing
and solidifying their commitment to CSR. I would like to read more in the
CR report how the T&D Life Group is utilizing its financial functions in thisrespect to fulfill CSR.
6. Exhibiting Board members’ leadership in the CSR
Governance has recently become a focal issue for effective corporate
management. The Board of Directors is expected to demonstrate adequate
leadership in these fields of CSR, compliance and risk management as well.
I hope this responsibility be explicitly defined and presented in the figures(on pages 13 and 14 of the T&D Life Group CR Report) and an arrow be
added to exhibit the Board’s responsibility for leading sections under its
supervision.
7. Disclosure of challenges for the future
The relationship between enterprises and stakeholders has been moving
closer and becoming more dynamic. In the past, “Trust us,” was all thatcompanies had to tell the parties concerned. Then, companies would
begin to take a few steps closer by saying “We will tell you,” or even “We
will show you”; however, such actions are no longer sufficient these days.
Now companies are expected to more actively communicate with a rangeof stakeholders, telling “we would like to involve you”, from employees,
customers, shareholders and investors to business partners and students, inorder to help them develop a better understanding of the companies, andcorporate reports are among the key tools used for that purpose. Hopefully,
the CR report features intended efforts or aims the Group is advancing
towards further growth by responding to changing times. Enriched reports
can inspire interest in the reported entity, thereby helping to increase thenumber of its supporters.
8. In conclusion
We are in a time of dynamic change. In the General Principles Concerning
Measures for the Aging Society (formulated by Cabinet Office), the Japanese
government suggests that it is necessary to re-create social systems thatwill meet the needs of a society with an average life expectancy of 90 years.
Japan faces, in addition to a super-aging population, shrinking market as well
as swollen national debt and vulnerable social security systems. Reflecting
such a situation, the life insurance industry should and will play a more
important role in building a sustainable society. It will be expected for theindustry to foster stable social security by offering proper life insurance
merchandise to the public, which will supplement the weak function of
governmental welfare systems and bring in greater security for the society. I
hope that the T&D Life Group develops and offers appropriate products andservices that will help address these social needs. While, there is another factthat populations and markets are expanding in emerging economies. Notingthat societal changes provide opportunities for growth, I would like to see
the Group continue growing by enhancing its breath and depth.

FS4

In order to improve the report and enhance the Group’s
corporate responsibility activities, we provide the report(Special Topics version) to all individual executives andemployees in the Group, and conduct a post-reading
questionnaire. As a part of such efforts, we have madedonations to environmental volunteer groups, to an amountthat matches the number of full response to the questionnaire,
starting in fiscal 2009. In fiscal 2011, the charitable contribution
was offered to Satoyama Hozen Saisei Network, anenvironmental NPO working on the conservation and revival of
local woodlands.

Outline of the T&D Life Group

4.16

Management

Enhancing “Breadth and Depth”
for further Growth

T&D Holdings places as much importance on fosteringcommunication within the Group as with our external
stakeholders. Viewing each one of the Group employees
as a vital stakeholder, we encourage them to work both fortheir own individual growth and for the growth of the Group,
aiming to fulfill our public mission and social responsibility.
While the primary purpose of the T&D Life Group Corporate
Responsibility Report is to help our external stakeholders
gain a better understanding of the Group, the report is also
intended as a tool for employees to learn and think more
about their own groups, as well as to raise awareness ofcorporate responsibility.

3.5[Questionnaire Outline](1) Respondents:(3) Breakdown of respondents:
Gender

T&D Life Group executives andemployees

Age(number of responses)
3,000* Conducted as an anonymous questionnaire(2) Survey response:
No. ofrespondents

Response
rate

8,061

32.2%

Male
33%
Female67%* Survey period: from November 2011
to January 2012

2,354

2,500
2,000

1,802

1,500

1,575

1,309

1,000
500
0

Social Aspects

Principal, Center for Corporate Behavior

Establishing Connections,
Fostering Communication in the Group

691
141
–10s

93
20s

30s

40s

50s

60s

70s

* Since this survey was conducted anonymously and answers regarding age and gender were voluntary,tabulated figures do not match the total number of responses.

[About the Report as a whole](1) Contents

Sections favorably received(2) Volume of information
1%

2%

3%
15%

36%

41%

82%

80%
Inner area: 2010

Easy to understand

Inner area: 2010

Too much

Outer area: 2011

Average

Outer area: 2011

Appropriate

Hard to understand

1,168(2) T&D Life Group

1,593(3) Message from the President

1,480(4) Coping with the Great
East Japan Earthquake(Taiyo Life/Group companies)(5) Coping with the Great East
Japan Earthquake (Daido Life)

57%
63%

(number of responses)
1,000 2,000 3,000 4,000 5,000(1) Cover

18%
2%

0

Not enough

3,757
4,292

(6) Establishment of Group CSR
Committee and CSR Charter

1,060(7) Corporate Responsibility
Digest1,167(8) Messages from
Employees(9) Third-Party Opinion(10) Nothing in particular

Environmental Aspects

Mr. Takaji Hishiyama

ProﬁleMr. Hishiyama has been engaged in a variety of tasks inside and outside Japan as a senior
executive before leaving Mitsubishi Oil Co., Ltd. (currently JX Nippon Oil & Energy Corporation).
After studying at the Center for Business Ethics at Bentley University in the US as a Visiting
Executive Scholar, he established the Center for Corporate Behavior in Japan. He is now
engaged in consultancy work for corporations and in operating three related non-profit
organizations as director as well as teaching at universities as an adjunct instructor, in orderto fulfill his mission of disseminating business ethics, corporate responsibility, and socially
responsible investment. He has authored a number of books and articles in these fields, andrecently collaborated on “ISO26000: A Practical Guide” (Chuokeizai-sha, Inc. 2011).

2,154
1,004
586

Comments and requests received

Our response

Compared to the previous year, a larger percentage of
respondents answered that the volume of information
is “Too much” or “More than enough.”

The Special Topics version of the 2012 report has been designed toinclude many photos and illustrations while selecting fewer topics,
aiming to improve readability and accessibility of the report.

T&D Life Group Corporate Responsibility Report 2012 38

AppendixThird-Party Opinion

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

3. Report Parameters
Report Profile
3.1
Reporting period (e.g., fiscal/calendar year) for information provided.
3.2
Date of most recent previous report (if any).
3.3
Reporting cycle (annual, biennial, etc.)
3.4
Contact point for questions regarding the report or its contents.
Report Scope and Boundary
Process for defining report content, including:• Determining materiality
3.5• Prioritizing topics within the report• Identifying stakeholders the organization expects to use the report
3.6
Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers).
3.7
State any specific limitations on the scope or boundary of the report.
Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly
3.8
affect comparability from period to period and/or between organizations.
Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations
3.9
applied to the compilation of the Indicators and other information in the report.
Explanationof the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement
3.10(e.g., mergers/acquisitions, change of base years/periods, nature of business, measurement methods).
3.11
Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.
GRI Content Index
3.12
Table identifying the location of the Standard Disclosures in the report.
Assurance
Policy and current practice with regard to seeking external assurance for the report. If not included in the assurance report
3.13
accompanying the sustainability report, explain the scope and basis of any external assurance provided. Also explain therelationship between the reporting organization and the assurance provider(s).
4. Governance, Commitments, and Engagement
Governance
Governance structure of the organization, including committees under the highest governance body responsible for specific4.1
tasks, such as setting strategy or organizational oversight.
Indicate whether the Chair of the highest governance body is also an executive officer (and, if so, their function within the
4.2
organization’s management and the reasons for this arrangement).
For organizations that have a unitary board structure, state the number and gender of members of the highest governance4.3
body that are independent and/or non-executive members.
4.4
Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.
Linkage between compensation for members of the highest governance body, senior managers, and executives (including
4.5
departure arrangements), and the organization’s performance (including social and environmental performance).
4.6
Processes in place for the highest governance body to ensure conflicts of interest are avoided.
Process for determining the composition, qualifications and expertise of the members of the highest governance body and its
4.7
committees, including any consideration of gender and other indicators of diversity.
Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental,
4.8
and social performance and the status of their implementation.
Procedures of the highest governance body for overseeing the organization’s identification and management of economic,
4.9
environmental, and social performance, including relevant risks and opportunities, and adherence or compliance withinternationally agreed standards, codes of conduct, and principles.
Processes for evaluating the highest governance body’s own performance, particularly with respect to economic,
4.10
environmental, and social performance.

39 T&D Life Group Corporate Responsibility Report 20122
2

54, 7–84, 7–85
4
Activities in Japan only
64, 7–85, 6

Not applicable
5

1
1
1
1

1, 38
1, 4, 36
1, 4, 36
Not applicable35
28, 36
39–42

1

10–11
10
10
16, 2910
10–12
103, 12, 33
2, 14, 17
10, 12

Item

Indicator

Pages in this report

Commitments to External Initiatives
4.11
Explanation of whether and how the precautionary approach or principle is addressed by the organization.
Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization
4.12
subscribes or endorses.
Memberships in associations (such as industry associations) and/or national/international advocacy organizations in which theorganization:• Has positions in governance bodies
4.13• Participates in projects or committees• Provides substantive funding beyond routine membership dues
• Views membership as strategic
Stakeholder Engagement
4.14
List of stakeholder groups engaged by the organization.
4.15
Basis for identification and selection of stakeholders with whom to engage.
4.16
Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group.
Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to
4.17
those key topics and concerns, including through its reporting.
5. Management Approach and Performance Indicators
Economic
Disclosure on Management Approach
Economic
Aspect: Economic Performance
economic value generated and distributed, including revenues, operating costs, employee compensation, donations and
EC1
CORE Direct
other community investments, retained earnings, and payments to capital providers and governments.
EC2
CORE Financial implications and other risks and opportunities for the organization’s activities due to climate change.
EC3
CORE Coverage of the organization’s defined benefit plan obligations.
EC4
CORE Significant financial assistance received from government.
Aspect: Market Presence
EC5
ADD Range of ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation.
EC6
CORE Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation.
for local hiring and proportion of senior management hired from the local community at locations of significant
EC7
CORE Procedures
operation.
Aspect: Indirect Economic Impacts
and impact of infrastructure investments and services provided primarily for public benefit through commercial,
EC8CORE Development
in-kind, or pro bono engagement.
EC9
ADD Understanding and describing significant indirect economic impacts, including the extent of impacts.
Environmental
Disclosure on Management Approach
Environmental
Aspect: Materials
EN1
CORE Materials used by weight or volume.
EN2
CORE Percentage of materials used that are recycled input materials.
Aspect: Energy
EN3
CORE Direct energy consumption by primary energy source.
EN4
CORE Indirect energy consumption by primary source.
EN5
ADD Energy saved due to conservation and efficiency improvements.
Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements
EN6
ADD asa result of these initiatives.
EN7
ADD Initiatives to reduce indirect energy consumption and reductions achieved.
Aspect: Water
EN8
CORE Total water withdrawal by source.
EN9
ADD Water sources significantly affected by withdrawal of water.
EN10
ADD Percentage and total volume of water recycled and reused.
Aspect: Biodiversity
and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value
EN11
CORE Location
outside protected areas.
of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high
EN12CORE Description
biodiversity value outside protected areas.
EN13
ADD Habitats protected or restored.
EN14
ADD Strategies, current actions, and future plans for managing impacts on biodiversity.
of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of
EN15
ADD Number
extinction risk.
Aspect: Emissions, Effluents, and Waste
EN16
CORE Total direct and indirect greenhouse gas emissions by weight.
EN17
CORE Other relevant indirect greenhouse gas emissions by weight.
EN18
ADD Initiatives to reduce greenhouse gas emissions and reductions achieved.
EN19
CORE Emissions of ozone-depleting substances by weight.
EN20
CORE NO, SO, and other significant air emissions by type and weight.
EN21
CORE Total water discharge by quality and destination.
EN22
CORE Total weight of waste by type and disposal method.

4, 12–14
16–17

5Management

2. Organizational Profile
2.1
Name of the organization.
2.2
Primary brands, products, and/or services.
2.3
Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures.
2.4
Location of organization’s headquarters.
Number of countries where the organization operates, and names of countries with either major operations or that are
2.5
specifically relevant to the sustainability issues covered in the report.
2.6
Nature of ownership and legal form.
2.7
Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries).
Scale of the reporting organization, including:• Number of employees• Number of operations
2.8• Net sales (for private sector organizations) or net revenues (for public sector organizations)• Total capitalization broken down in terms of debt and equity (for private sector organizations)• Quantity of products or services provided
Significant changes during the reporting period regarding size, structure, or ownership including:• The location of, or changes in operations, including facility openings, closings, and expansions
2.9• Changes in the share capital structure and other capital formation, maintenance, and alteration operations (for private sector
organizations).
2.10
Awards received in the reporting period.

Pages in this report

2, 15–
15–16, 38
18

3, 8–96, 8–914
Not applicableNot applicableNot applicable

Social Aspects

Indicator

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

-

30–33
3, 33–36

36
35–36
36
36
34

Environmental Aspects

Item

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

35
Not applicable35
Not applicableNot applicableNot applicableNot applicable35
34–35
Not applicableNot applicableNot applicable
35

T&D Life Group Corporate Responsibility Report 2012 40

Appendix

G3.1 GRI Content Index 3.12

Outline of the T&D Life Group—: No information in this report. However, this report does not cover all the activities of the Group.

T&D Life Group Corporate Responsibility Report 2012

CORE: “Core indicator,” meaning an indicator that most stakeholders are interested in.
ADD: “Additional indicator,” meaning an indicator for a new theme or a theme important to certain organizations.

41 T&D Life Group Corporate Responsibility Report 2012

Not applicableNot applicableNot applicable33
Not applicableNot applicable-3, 27–29

28
28
29
29
25–28
27–28

3,28

Not applicableNot applicable28
Not applicableNot applicableNot applicableNot applicableNot applicable

Item

Indicator

Pages in this report

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

Not applicable
3, 30–33-

Management

Pages in this report

14
13
Not applicableNot applicableNot applicable
3, 18–26

Social Aspects

Indicator

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

18–26
Not applicableNot applicable
16, 19–22
23
Not applicableNot applicableNot applicable

Environmental Aspects

Item
EN23

Outline of the T&D Life Group—: No information in this report. However, this report does not cover all the activities of the Group.

G3.1 GRI Content Index

3, 12, 33
1413, 25–28, 34, 38
16, 18
7–8
7–8, 221117
Not applicable
24
22–23
16

T&D Life Group Corporate Responsibility Report 2012 42

Appendix

T&D Life Group Corporate Responsibility Report 2012