C R E A T E V A L UE F OR P E OP L E A ND S OC I E T I E S .

Sustainability Report 2021

T&D Insurance Group’s Corporate Philosophy

With our “Try & Discover”
motto for creating value,
we aim to be a group that
contributes to all people and societies.
T&D Insurance Group’s Management Vision

Sow happiness,make change with boldness

Contents
Message from the President………………………………………………………… 2

VII Social Activities……………………………………………………………………… 88

Response to COVID-19……………………………………………………………………… 6

VIII Governance and Internal Control…………………………………… 93

I Organizational Profile…………………………………………………………………… 8

IX Management Control…………………………………………………………… 104

II Sustainability Management…………………………………………………… 13

Third-party Opinion……………………………………………………………………… 110

III Priority Theme 1………………………………………………………………………… 37
Promote Healthy and Abundant Lives for All People

Index…………………………………………………………………………………………………… 111

IV Priority Theme 2………………………………………………………………………… 56
Provide Workplace Environments that Enable
All People to Participate Actively
V Priority Theme 3…………………………………………………………………………… 68
Help Mitigate and Adapt to Climate Change
VI Priority Theme 4………………………………………………………………………… 80
Invest to Help Build a Sustainable Society
Sustainability Report 2021
102-50

Report Publication Information
Published in
Scope of report102-51

102-52

November 2021 (Previous Issue: November 2020; Next Issue: Scheduled for November 2022)
All companies and foundations in the T&D Insurance Group* Contents of this report are selected taking into account the importance of each item, and we indicate the scope of each item as necessary.

Period covered

April 2020 to March 2021 (annual)* Also includes reports on some significant activities and events having occurred in and after April 2021.

102-53

Contact Information
Sustainability Promotion Division, Social Communication Department, T&D Holdings, Inc.
7-1, Nihonbashi 2-chome, Chuo-ku, Tokyo 103-6031, Japan
E-mail: csr@td-holdings.co.jp
Regarding Third-party Opinion

As a senior counselor of the Japan Research Institute, Mr. Eiichiro Adachi possesses extensive knowledge about sustainability/CSR and was asked
to offer his opinion and advice about the contents of Sustainability Report 2021 from the standpoint of a third party.

Editorial Policy
The T&D Insurance Group has prepared this report to provide a wide range of stakeholders with a picture of the Group’s concepts of and approachto sustainability, as well as its sustainability initiatives. In fiscal 2021, the Group is disclosing information in the form of two different reports inorder to let a wider range of stakeholders get to know the Group’s initiatives. In addition to Sustainability Report 2021, we are releasing a digest
edition of Sustainability Report 2021. In the digest edition, we present the Group’s thinking about sustainability and the main sustainability initiatives taken by the Group in an easy-to-understand format. It is an approachable, easy-to-read report with only a small number of pages and many
photographs and illustrations. Sustainability Report 2021 conforms to the GRI standards, and reports on the wide-ranging management, social, andenvironmental initiatives the Group is advancing.

Overview of the Digest Edition of Sustainability Report 2021
Message from the President   Organizational Profile

Priority Theme 1 Promote Healthy and Abundant Lives for All People
Priority Theme 2 Provide Workplace Environments that Enable All People to Participate Actively
Priority Theme 3 Help Mitigate and Adapt to Climate Change
Priority Theme 4 Invest to Help Build a Sustainable Society
Social Activities   Response to COVID-19   

External evaluation1

Message from the President

102-14

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

Sowing happiness in the world throughthe “creation of shared value” that encompasses
both economic value and social value—SDGs Management and Creation of Value—

Responding to the COVID-19 Pandemic
The global COVID-19 pandemic, which began at the end of 2019, is still not under control as of 2021, and many people
around the world are still suffering adverse impacts of various kinds. Once again, I would like to express my condolences
to the victims of COVID-19, and my sympathies to the many people who have been affected. I would also like to express
my deep gratitude to the medical workers and those in related fields who are struggling to treat and prevent the disease
and maintain the social systems.

2

The social challenges posed by COVID-19 are wide-ranging, and the economic impact of responding to the preventionof its spread has been enormous. The most vulnerable in society have suffered the greatest impact. The SDGs slogan“Leave no one behind” reminds us that it is precisely in times of global crisis like the current pandemic that enhancing thestability and sustainability of society takes on its greatest importance.
The T&D Insurance Group, whose core business is life insurance, views the economic and health impact of COVID-19 asa challenge that it must address, and each Group company is working to provide products and services that respond to it.
Through our life insurance and related businesses, we will aim for sustainable growth through the creation of shared valuethat encompasses both the values to society (social value) and the values to the company (economic value).

 ormulation of the Group Long-Term Vision / SDGs Management andF
Creation of Value
Corporate Philosophy of the T&D Insurance Group is “With our ‘Try & Discover’ motto for creating value, we aim to be agroup that contributes to all people and societies.”
In order to put this Corporate Philosophy into practice, we set management targets and formulated necessary strategies
in our previous medium-term management plans in anticipation of future changes in the business environment. However,in order to further promote integrated Group management at this time of heightened uncertainty, I believe that it will be
more important than ever before to clarify our vision, which represents how we want to be as a Group that is not affectedby changes in the environment, to think about what is necessary in light of that vision, and to be flexible and speedy in our
thinking and actions to put it into practice.

CSR & Sustainability Trajectory of
the T&D Insurance Group• Formulated the Group Long-Term Vision• Established the Group ESG Investment Policy• GPIF begins ESG investment• TCFD recommendations
UN Global
Compact signed

2021
2020

Principles for
Financial Action
for the 21stCentury

Group CSR Committee
established

2019
2017
2016

UN Principles
for Responsible
Investment (PRI)
signed/Taiyo LifeT&D Holdings
established

2014
2012
2011

CSR reportissued

2007
2006

2005
2004

2015

Group CSR
Charter enforced

Group CSR Committee
renamed to the Group
SDGs Committee•P aris Agreement
adopted• SDGs agreement

UN Principles for
Responsible Investment(PRI) signed/T&D AssetManagement• Establishment of Climate
Change Risk Subcommittee• Establishment of Group Human
Rights Policy

UN Principles for
Responsible Investment(PRI) signed/Daido Life3

Message from the President

Therefore, we have formulated the Group Long-Term Vision “Try & Discover 2025” -In Pursuit of the Happiness of All
Stakeholders-, which outlines the Group’s medium- to long-term goals and strategic policies to achieve them. In the Group
Long-Term Vision, we have redefined the T&D Insurance Group’s Management Vision as “Sow happiness, make changewith boldness.” We have also set five critical issues to work on for the growth of the Group.
I believe that “sowing happiness,” as stated in our Management Vision, is the ultimate goal of creating shared value,
which our Group aims to achieve. To this end, we have set one of our critical issues as “SDGs management and creationof value,” and have also established new “non-financial KPIs” to quantitatively measure the creation of social value. Bysteadily working on the five critical issues for the growth of the Group, we will work to realize the vision of “sowing happiness in the world.”

Thoughts to Share with the World / Initiatives to Address Social Issues
There are many common social challenges around the world in addition to COVID-19. With regard to climate change inparticular, there are serious issues facing the world, including Japan, such as the increasing frequency of large typhoons,
torrential rains, heat waves, wildfires, and other natural disasters, as well as concerns about the impact on water resources and food. Furthermore, in addition to the numerous existing human rights issues in Japan and abroad, new humanrights issues are emerging. In addition, there are many other social issues shared worldwide, including increasing socialand economic inequality, new types of inequality and changes in employment caused by technological innovation, anda variety of difficulties associated with the declining birthrates and aging populations facing many developed countries.
In 2015, the Group endorsed the guiding principles of the United Nations Global Compact, which is a framework for cooperation between the United Nations (UN) and corporations to achieve the sustainable growth advocated by the UN. As therepresentative of the Group, T&D Holdings signed a letter addressed to the UN Secretary-General in support of the ten
principles related to the four areas of human rights, labor, the environment, and anti-corruption. We are also committed todemonstrate responsible business practices as a Group.
Regarding climate change, the Japanese government declared its goal of carbon neutrality in October 2020 and set new
CO2 reduction targets in April 2021. In response, efforts to transition to a society with low or net-zero carbon emissions
are accelerating rapidly in Japan. There is also no denying that climate change could threaten the business model of thelife insurance industry itself if it changes disease incidence rates and life expectancy. Against this backdrop, the Groupestablished the Climate Change Risk Subcommittee in 2020, and is working towards the goals of net zero carbon andcarbon neutrality by reducing greenhouse gas emissions generated by its broad range of business activities. We arealso studying and implementing ways to mitigate and adapt to climate change as an institutional investor. As part ofthese efforts, we moved up the deadline for achieving the Group’s CO2 reduction targets from 2030 to 2025 and set
this as one of the “non-financial KPIs” in the Group Long-Term Vision. We are also actively engaged in ESG investment
activities. We have expressed our support for the recommendations of the Task Force on Climate-related Financial
Disclosures (TCFD) established by the Financial Stability Board (FSB), and are actively working on the disclosure ofclimate-related financial information.

4

With regard to respect for human rights, the Group CSR Charter declares our respect for the human rights of all people.
We always respect the individuality and diversity of all employees, while working to create a healthy and safe working environment. We have also established the “T&D Insurance Group Human Rights Policy,” which expresses the Group’s views
on respect for human rights. The Policy was formulated in accordance with the Guiding Principles on Business and Human
Rights, a standard of conduct for all nations and companies developed by the United Nations Human Rights Council. In accordance with this Policy, we conduct human rights due diligence on a regular basis to verify that there are no problems with theGroup’s human rights practices. Women constitute the majority of the Group’s employees, and as part of this commitment,leveraging the capabilities of women is a key management issue for continuous enhancement of our corporate value. Our
initiative to support the active participation of women takes a multi-faceted, continuous approach that includes reforming our
personnel and compensation systems, encouraging work-life balance, and supporting personal skills development.

Responsibilities of the T&D Insurance Group / The World We Seek
The Group, whose core business is the life insurance business, provides safety and security to our customers through our
products and services in our main business. Furthermore, the asset management business, in which we are engaged as an
institutional investor, has a significant public relevance and close connections to economic development and the realizationof a sustainable society. We believe that the Group has a responsibility to contribute to society through these businesses.
The Group will fulfill its corporate social responsibility by working on its newly formulated Long-Term Vision to createshared value and “sow happiness in the world.” I believe that addressing social issues is not only a contribution to society, but also an opportunity to develop as a company and discover new business opportunities. We at the T&D InsuranceGroup will continue our step-by-step journey to continuously share values with society, with the aim of being an insurancegroup that grows sustainably in partnership with society.

5Response to COVID-19
The life insurance and other financial businesses run by the T&D
Insurance Group have a social mission that is closely linked to thestability and improvement of people’s lives, economic development,
and the realization of a sustainable society. The Group is engaged ina variety of initiatives in response to COVID-19, and will work as one
with the hope the situation is resolved as soon as possible.

Support for Customers
As the COVID-19 pandemic continues, we are offering products that address the COVIDrelated needs of our individual and SME customers. Furthermore, in order to provide our customers with peace of mind, we continue to have a system in place to provide stable financial
services that are indispensable to them, including the payment of claims and benefits in ourlife insurance business, and respond to the individual needs and situation of our customers.

Providing protectionsFirst to provide Infectious disease plus hospitalization insurance (lump-sum payment type), which covers COVID-19 (Taiyo Life)
Provision of free- of-charge COVID-19 mutual support insurance in collaboration with justInCase (Daido Life)

Providing services
Extension of the grace period for payment of premiums and the period for policy renewal procedures
Simple and rapid payment of claims, benefits, and policy loans
Payment of hospitalization benefits based on certain conditions even in cases where treatment was received at home or inother facilities due to circumstances of medical institutions
Payment of accidental death benefits in the event of death due to COVID-19

Support for Employees
From the perspective of preventing the spread of COVID-19, we are working to improve
our internal environment, for example by introducing online tools, and expanding the implementation of remote work. In addition, we are committed to maintaining a worry-free work
environment for our employees, for example by encouraging non-face-to-face solicitation outof concern for customer safety.

Improvement of internal environment
Promotion of teleworking by implementing remote work and using satellite offices (under a declared state of emergency,
the work attendance rate is limited to 30%)
Promotion of staggered working hours
Use of remote conferencing tools

Measures at the sales site
Introduce systems and tools to enable non-face-to-face solicitation
Visit only those customers who have requested a visit or who have accepted an appointment and agreed to be visited6T&D Insurance Group’s Initiatives and Sustainability Priority Themes

Launch of Infectious disease plus
hospitalization insurance (Lump-sum payment type)

Priority Theme 1

Promote Healthy and Abundant Lives for All People

Taiyo Life launched Infectious disease plus hospitalization insurance (Lump-sum payment type)in September 2020, in response to the spread of COVID-19. We have received strong response;a wide range of age groups, mainly younger and middle age generation, have taken out the insurance policy and many of them have bought our insurance product for the first time. Moreover,the number of sales exceeded 100,000 in April 2021, the fastest among products launched in
the past decade. As variants such as the Delta strain are still spreading, its sales have beensteadily increasing, surpassing 150,000 at the end of August 2021.
Taiyo Life will continue to aim to realize a society where everyone can safely live a longer
and healthier life, by anticipating customers’ needs and the times in tandem with changes ina social environment and remaining close to customers.

Initiatives for ESG investment and financing— Initiatives for investment that responds to COVID-19 —Marketing Planning Department
Marketing Planning Division
ManagerFrom
Taiyo Life
Work Site

Hiroaki Takeda

Priority Theme 4

Invest to Help Build a Sustainable Society

The Group manages premiums entrusted by customers, funds with a significant public relevance. As a responsible institutional investor, it has been engaged in asset management, while being fully conscious of Environmental,
Social and Governance (ESG) issues including response to COVID-19 to realize a sustainable society.

Investment Planning Department
Investment Planning Division

Wang Yanfang

Daido Life makes investments and loans that reflect ESG factors in the management of all
assets it owns. One of them is a social bond investment. Social bonds are bonds issued
to finance projects like social infrastructure development and support for employment andeducation. We launched the initiatives in 2016 when the first Japanese social bond was issued, and in fiscal 2020 were also engaged in investments in bonds whose proceeds areearmarked for measures for the globally expanding COVID-19 pandemic.
From
We recognize that many issues must be dealt with globally, including not only
Daido Life
those linked to the pandemic but also the reduction of greenhouse gas emissions.
Work Site
Going forward, Daido Life will continue to work on initiatives for ESG investments
and fulfill its obligations as a responsible institutional investor.

Taiyo Life became the first Japanese life insurance company to sign the PRI in March 2007,
and has promoted ESG investment and financing as a responsible institutional investor.
In fiscal 2020, we invested in COVID-19 vaccine bonds issued by the Central American
Bank for Economic Integration, helping developing countries purchase COVID-19 vaccines.
Through investment in the bonds, we were able to support the purchase of COVID-19 vaccines in the Central America amid concerns that developing countries have great difficulty insecuring vaccines in a timely manner. We believe that the effort was significant, given supporting a social (S) activity under the coronavirus epidemic.
Taiyo Life will continue to be actively engaged in ESG investment and financing that contribute to the solution of social issues, while achieving a certain profitability.

Securities Investment Department
Bond Investment Division
Deputy Manager

From
Taiyo Life
Work Site

Hirofumi Takagi

7Organizational
ProfileSustainability
Management

Priority Theme

1

2

3

Social Activities

Governance andInternal Control

4Management
Control

Third-party
OpinionIndex

I Organizational Profile
1. Organizational Profile
1–1

Outline of the T&D Insurance Group’s Business

102-2

The T&D Insurance Group is a unique grouping consisting of a core set of domestic life insurance businesses pursuing market-specific strategies together with other businesses with an affinity to the life insurance market, including a closed bookbusiness, an asset management business, and a pet insurance business, all under T&D Holdings, a holding company. This organization allows Group companies to work to fully exploit the strengths and uniqueness of their respective business models, in
support of their customers’ lives and businesses.

Group Structure as of July 1, 2021

Household Market

Small and Medium Enterprises Market

T&D Holdings is a holding company andthe cornerstone of the T&D InsuranceGroup, which consists of 25 subsidiaries
and affiliated companies.

Closed book business
Asset management business

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

Pet & Family Insurance
Asset Management Market

Pet Insurance Market

Main Group Companies Other Than Above

Insurance & Insurance-related Businesses

Investment-related Businesses

Administration-related Businesses• T&D Confirm Ltd.

• T&D Lease Co., Ltd.

• T&D Customer Services Co., Ltd.

• Toyo Insurance Agency Co., Ltd.

• Taiyo Credit Guarantee Co., Ltd.

• T&D Information System Ltd.

• Daido Management Service Co., Ltd.

• Alternative Investment Capital, Ltd.

• Nihon System Shuno, Inc.

• Taiyo Life Aging Society Institute• T&D United Capital North America Inc. • Zenkoku Business Center Co., Ltd.

• Capital Taiyo Life Insurance Limited• Thuriya Ace Technology Company Limited• Fortitude Group Holdings, LLC• Fortitude Reinsurance Company Ltd.

Ordinary revenues

Ordinary profit

Profit*No. of employees¥2,413.9¥228.1¥162.3

19,615billionbillionbillion* Profit attributable to owners of parent
8

Figures for revenues and profits are from fiscal 2020 and the number of employees is as of March 31, 2021

Organizational
Profile

1–2

Sustainability
Management

Priority Theme

1

2

3

Social Activities

4

Governance andInternal Control

Management
Control

T&D Insurance Group Companies and Foundations

102-2

Third-party
Opinion

102-4

Index

102-6

102-45

Organizational Structure
The T&D Insurance Group consists of T&D Holdings, 19 consolidated subsidiaries and 6 affiliated companies that are engaged inlife insurance and other businesses as described below.
( : Consolidated subsidiaries: Equity method affiliate companies)

T&D Holdings, Inc.

Insurance
Insurance &Insurancerelated
Businesses

https://www.td-holdings.co.jp/en/
Taiyo Life Insurance Company

https://www.taiyo-seimei.co.jp/

Daido Life Insurance Company

https://www.daido-life.co.jp/

T&D Financial Life Insurance Company

https://www.tdf-life.co.jp/

Pet and Family Insurance Company

https://www.petfamilyins.co.jp/

Capital Taiyo Life Insurance Limited
Fortitude Group Holdings, LLC
Fortitude Reinsurance Company Ltd.

https://fortitude-re.com/

T&D Confirm Ltd.
Insurance-related

Investment
Management
and Advisory, etc.
Investmentrelated
Businesses

Other
Investment-related

Administrationrelated
Administrationrelated
Businesses

General Affairs
andCalculation-related

Toyo Insurance Agency Co., Ltd.

https://www.sonpo.co.jp/toyohkdaiko/

Daido Management Service Co., Ltd.

https://www.dms-hp.co.jp/

Taiyo Life Aging Society Institutehttps://www.taiyo-institute.co.jp/company/

T&D Asset Management Co., Ltd.

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

T&D United Capital Co., Ltd.

https://www.tduc.co.jp/en/

T&D United Capital North America Inc.
T&D Lease Co., Ltd.

http://www.td-lease.co.jp/index.html

Taiyo Credit Guarantee Co., Ltd.

https://www.taiyo-sinyo-hosyo.co.jp/

Alternative Investment Capital, Ltd.

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

T&D Customer Services Co., Ltd.
T&D Information System Ltd.

https://www.td-system.co.jp/

Nihon System Shuno, Inc.

https://www.nss-jp.com/

Zenkoku Business Center Co., Ltd.

https://www.zbc-jp.com/

Thuriya Ace Technology Company Limited
Foundations

The Taiyo Life Welfare Foundation

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

Daido Life Welfare Foundation

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

The Daido Life Foundation

https://daido-life-fd.or.jp/english/*1 Includes main Group companies and foundations as of July 1, 2021.
*2 Thuriya ACE Technology Company Limited is an affiliate company for designing and developing information technology systems in Myanmar.
*3 Fortitude Reinsurance Company, Ltd. is a wholly owned subsidiary of Fortitude Group Holdings, LLC.

9

Organizational
Profile

1–3

Sustainability
Management

Priority Theme

1

2

3

Social Activities

4

Governance andInternal Control

Management
Control

Third-party
OpinionCorporate Profile (as of March 31, 2021)

102-1

Index

102-3

102-13

T&D Holdings, Inc.
Established

April 2004

Head office location

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

Capital stock

207.1 billion yen

No. of employees

118

independent accounting auditor

Ernst & Young ShinNihon LLC

Description of businessInsurance holding company for the T&D Insurance Group conducting the following:• Management control of life insurance subsidiaries and affiliates under the Insurance
Business Act and other laws and regulations• Other businesses associated with the above

Taiyo Life Insurance Company
EstablishedFebruary 1948 (Founded May 1893)

Head office location

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

Capital stock

62.5 billion yen

No. of employees

Sales:
Administrative:
Total:

8,473
2,312
10,785

Households
Protection-oriented products covering medical care,nursing care and death security that meet customer needs
Face-to-face consultations
Focus on major metropolitan areas and major local cities
8,473 in-house sales representatives

Daido Life Insurance Company
Established

July 1947 (Founded July 1902)

Head office locations

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

Capital stock

110 billion yen

No. of employees

Sales:
Administrative:
Total:

3,766
3,146
6,912

T&D Financial Life Insurance Company
Established

July 1947 (Founded April 1895)

Head office location

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

Capital stock

56 billion yen

No. of employees275	Industry Association to which the Three Life Insurance
Companies Belong: The Life Insurance Association of Japan

10

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

3,766 in-house sales representatives
1,278 non-life insurance agents

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

13,371 tax accounting agencies

Independent insurance agents(financial institutions and insurance shops)
Products for securing a comfortable retirement life andfor lower household budgets
Products offered through independent insurance agents(financial institutions, insurance shops)
Number of sales agents: 159

Organizational
ProfileSustainability
Management

Priority Theme

1

2

3

Social Activities

4

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

T&D Asset Management Co., Ltd.
Investors

Established

December 1980

Head office location

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

Capital stock

1.1 billion yen

No. of employees

160

Providing competitive products and services in a timely manner
Number of investment trusts: 254
Number of discretionary investment and advisory contracts: 49

Pet & Family Insurance Company
Owners of pets

Established

August 2003

Head office location

27-3, Higashiueno 4-chome,
Taito-ku, Tokyo 110-0015, Japan

Capital stock

2.8 billion yen

No. of employees

85

Products that cover the cost of veterinary carefor pet illness and injury
Selling through agents (pet shops, etc.)
348 agents 605 pet shops

Pet & Family Insurance

T&D United Capital Co., Ltd.
Established

June 2019

Head office location

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

Capital stock

5.5 billion yen

No. of employees

34

Description ofbusiness

Investment business aimed at building an effective and efficient investment system across the Group• Closed book business• Asset management business

1–4

Number of Employees

102-8

401-1

Number of Employees (T&D Holdings, Consolidated)
Business sector
Insurance & insurance-related businesses

March 31, 2019

March 31, 2020

March 31, 2021

18,275(960)

17,827(945)

18,354(878)

Investment-related businesses

435

(19)

450

(15)

472

(15)

Administration-related businesses

779

(61)

781

(55)

789

(61)

19,058 (1,015)

19,615

(954)

Total

19,489 (1,040)* The number of employees shows the number of employed staff excluding executive officers. The number of part-time workers is shown in parentheses as an annual average, which
is not included in the number of employees.
* The figures for part-time workers differ from the Financial Report due to the rounding process.

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

No. of employees hired

March 31, 2019 March 31, 2020 March 31, 2021
No. of employees

17,97917,525

17,972FY2018FY2019FY2020

3,773

3,377

3,464

Male

3,514

3,445

3,395

190

159

158

Female14,465

14,08014,577

3,583

3,218

3,306

Sales representatives

12,226

11,817

12,239

3,468

3,100

3,181

Male

341

312

293

80

56

45
3,136

Female11,885

11,505

11,946

3,388

3,044

Administrative

5,753

5,708

5,733

305

277

283

Male
(Managers)

3,173(2,069)3,133(2,108)3,102(2,085)

110

103

113

Female(Managers)

2,580
(387)

2,575
(432)

2,631
(454)

195

174

170

* Managers include head office deputy division managers, assistant officers, and other officers.
11Organizational
Profile1–5

Sustainability
Management

Priority Theme

1

2

3

Social Activities

4

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

Dialogue and Consultations with Labor Unions

102-41Each of the three life insurance companies in the T&D Insurance Group has an independent labor union and a collective agreement. On this basis, 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 employees and company, that is based on the spirit oftrusting each other, can be built only through straightforward discussions based on their respective viewpoints, and that kind of
relationship will motivate employees and bolster the competitiveness of the company.
Labor Unionization of the Administrative Personnel of the Three Life Insurance Companies
FY2018FY2019FY2020

80.2

79.9

80.5

Labor unionization rate (%)

2. Supply Chain
2–1

Definition of Supply Chain

102-9

T&D Holdings defines its supply chain as shown in the table below, and works toward widespread sustainability and CSR throughout that supply chain.
Activities
Sales of products
and services

Media

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

Sales agents

Sales agentsContracting work
Office buildings

ICT systems, consulting, auditing
Buildings

Construction, maintenance, administration of office buildings

Energy consumed

Petroleum refining and distribution, electric power providers

Waste

Waste disposal companies

Delivery

Delivery company

Movement of
employees

Business trips

Airplane, rail, bus, taxi, accommodation

CommutingRail, bus

Investment

2–2

Supply chain

Cooperation with Suppliers

Investees

414-1

Management of Outsourcing of Business Operations
The T&D Insurance Group outsources some business operations to third parties. In order to maintain our management soundness and strengthen our management control capability, we have prepared the adequate management system for outsourcing,
specifically by formulating the methodology to select outsourcing partners and supervise them. T&D Holdings has formulated an
Outsourcing Checklist as a part of the Guidelines for Outsourcing and Detailed Rules on Risk Evaluation for Outsourcing, basedon the Procedural Guidelines for Implementation and Management of Outsourcing. The Group examines the risk-related issues,
and assesses the suitability of each outsourcing partner with covered in the note respect to the issues including social aspects*
such as human rights, labor conditions, and environmental initiatives.
* Social aspects refer to the occurrence of human rights violation, labor problems such as forced labor, excessive work hours, and health and safety, as well as measures to preventand mitigate environmental pollution and climate change.

After the commencement of outsourcing, the Group checks the outsourcing partner more than once a year, monitors the performance of the outsourced operations, and, if necessary, asks for improvements.
Initiatives for Green Purchasing and Procurement
The T&D Insurance Group takes various initiatives to protect the global environment, based on the ’T&D Insurance Group CSR
Charter’ and the ’T&D Insurance Group Environmental Policy.’ As one facet of these efforts, the Group has formulated its
Groupwide Green Purchasing Standards to be applied when the Group procures or purchases the goods or services needed for its
business operations. The Group promotes green purchasing and green procurement, giving priority to the purchase of goods orservices that help reduce its environmental impact. Green purchasing mainly targets office furniture, equipment and consumablesupplies, while green procurement targets printing of product brochures and policy documents and procurement of real estate
facilities and system equipment. Results of these activities are reported to the Group SDGs Committee and its upper organization, the Board of Directors, every six months.
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II Sustainability Management
1. T&D Insurance Group Vision

T&D Insurance Group’s Corporate Philosophy

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

Ensuring the Group’s sustained growth bypracticing our corporate philosophy• The Group must confront continually changing issues ofCreation ofshared value

people and society (social issues) as business opportunities.
• Through its businesses, the Group creates value for society
and value for the enterprise from the perspective of resolving social issues.

Enterprise that can growover the medium to long term

Goal of the T&D Insurance Group•C ontribute to the development of society through our business, and throughthis business make a fair profit.

• Be an insurance group that sharesvalue with society and grows
sustainably.

–> Enterprise that creates socialand economic value

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2. Philosophy and Policy of T&D Insurance GroupThe T&D Insurance Group has embraced the following
corporate philosophy as the starting point for the Groupand the bedrock of all of its business activities: “With
our ’Try & Discover’ motto for creating value, we aim to
be a group that contributes to all people and societies.”
The T&D Insurance Group is centered on the life insurance business, which attaches fundamental importanceto the principle of mutual assistance. This is why ourfundamental guiding principle as a business enterprise,
and the very rationale for our existence, is to contributeto people and society through our businesses with theaim of achieving a sustainable society.

102-16【Structure of Sustainability Basic Policies】
T&D Insurance Group’s Corporate Philosophy

T&D Insurance Group CSR Charter
T&D Insurance GroupESG Investment Policy

T&D Insurance Group
Compliance Code of
Conduct

T&D Insurance Group
Human Rights Policy
T&D Insurance Group
Environmental Policy【Other Related Basic Policies】• The T&D Insurance Group’s Basic Policies Related to Customer-oriented
Business Operations• Basic Policy on Corporate Governance• Group Risk Management Policy
etc.

T&D Insurance Group’s Corporate Philosophy
With our “Try & Discover” motto for creating value, we aim to be a group that contributes to all people and societies.
T&D Insurance Group CSR Charter
The T&D Insurance 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 Insurance Group will offer high-quality, optimal products and services that meet customer needs, and will contribute to thesustainable growth of society and to the solution of social issues.
2. Strict Compliance• The T&D Insurance Group will strictly observe laws, regulations and rules, and act with sincerity and integrity according to highethical standards.
• The T&D Insurance Group will maintain and promote fair and free competition.
• The T&D Insurance Group will stand firmly against antisocial forces and groups that may threaten the order or safety of civil society.
3. Respect for Human Rights• The T&D Insurance Group will respect the human rights of all people, and make efforts to enlighten all its employees on human rights.
• The T&D Insurance Group will respect the individuality and diversity of all its employees, ensure a healthy and safe work environment, and develop its human resources.
• The T&D Insurance Group will respect privacy, and will strictly control and protect personal information.
4. Communication
The T&D Insurance Group will provide proper information concerning its products and services and disclose corporate information in
an appropriate and timely manner to the general public as well as to its customers and shareholders, and will actively strive to maintaina dialogue with all its stakeholders.
5. Contribution to Local Communities and Societies
The T&D Insurance Group will implement social activities as a good corporate citizen, and will contribute to the sound developmentof local communities and society.
6. Global Environmental Protection
The T&D Insurance Group will carry out its activities with full awareness of the importance of consideration for environmental issues,
and will strive to protect the global environment.
7. Establishment of Effective Governance and Thorough Implementation
To ensure that its actions are in compliance with this charter, the T&D Insurance Group will develop an effective governance structureand strive to cooperate with a wide range of stakeholders, including its customers, shareholders, employees, sales agents, business
partners, and local communities.

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T&D Insurance Group ESG Investment Policy
In accordance with the Group’s corporate philosophy, the Group has established the T&D Insurance Group ESG Investment
Policy, which expresses the Group’s stance towards ESG investment.
For more information, please see “T&D Insurance Group ESG Investment Policy” on page 83.

T&D Insurance Group Human Rights Policy
Based on T&D Insurance Group’s corporate philosophy and the T&D Insurance Group CSR Charter, the T&D Insurance Group has
established its Human Rights Policy as a standard for all executives and employees of the T&D Insurance Group to comply with.
For more information, please see “T&D Insurance Group Human Rights Policy” on page 35.

T&D Insurance Group Environmental Policy
The T&D Insurance Group will carry out business activities with full awareness of the importance of environmental concerns andwill give sufficient consideration to global environmental protection based on the T&D Insurance Group CSR Charter. The Groupwill achieve sustainable growth along with the society while fulfilling the public mission of life insurance and other businesses,
and undertaking its corporate social responsibilities.
The Group established the following environmental policy and is committed to complying with it in all of its business activities.
1. Environmental Conservation Efforts through Business Activities
We will contribute to the protection of the global environment in all of our business activities.
2. Reduction in Environmental Impact
Recognizing the environmental burden of resource or energy consumption and waste emissions, we will work toward
reducing environmental impact by conserving energy or resources, recycling resources, and promoting green purchasing.
3. Compliance with Environmental Laws
We will observe all environmental laws and regulations.
4. Promotion of Environmental Awareness-Raising Activities
We will raise environmental awareness among all Group members through awareness-raising activities to promote environmental protection initiatives.
5. Continuous Improvement in Environmental Initiatives
By setting environmental objectives and reviewing them regularly, we will endeavor to continuously improve our environmental performance.
All members of the T&D Insurance Group are notified of this environmental policy, which is also publicly disclosed.
The T&D Insurance Group Compliance Code of Conduct
Guided by its corporate philosophy of “aiming to be a group that contributes to all people and societies through the creation ofvalue,” the T&D Insurance Group has established the T&D Insurance Group Compliance Code of Conduct to conduct fair andadequate business activities with integrity and sincerity for all stakeholders, including customers.
For more information, please see our website.
WEB https://www.td-holdings.co.jp/en/csr/csr-policy/csr-compliance.html

Basic Policy on Corporate GovernanceT&D Holdings has committed to all the provisions of the Corporate Governance Code that has applied to listed companies sinceJune 2015 for the purpose of ensuring the T&D Insurance Group’s sustained growth and the enhancement of its corporate value
over the medium to long term. T&D Holdings has also disclosed a Basic Policy on Corporate Governance on its website setting
forth the Group’s initiatives and policies as they pertain to the salient principles and rules in the Corporate Governance Code.
For more information, please see our website.
WEB https://www.td-holdings.co.jp/en/csr/csr-policy/corporate.html
Reference: Information on Japan’s Corporate Governance Code (Tokyo Stock Exchange website)
WEB https://www.jpx.co.jp/english/equities/listing/cg/

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3. T&D Insurance Group’s Value Creation Process (Conceptual Diagram)[Identifying important social issues]
We identify the social issues to be addressed throughour businesses by examining the SDGs, social changes,
technology innovation, our Group business models,and other sources.

Continually changing issues faced bypeople and society
Social issues

Identify the social issues
to be addressed throughour businesses

SDGs

Competitive advantage sources

Financial
CapitalShareholders

17 goals
169 targets

Changes in the social environment
IssuesRisk awareness

Further decline in birthrate, •Now, in the era of the 100-year
aging population, andlife, more people have suffered
population decline
from chronic diseases and•Increasing needs to makeself-provision for pension, medicalcare, and nursing care
•Increasing social inequality•Increasingly diverse households

dementia because of an aging
population, increasing economic
burdens on each household andsociety every year.

Technology innovation•Against a backdrop of diversified
lifestyles, insurance products thatsatisfy various needs of customers
are required and responses totechnology innovation are also
important since there are a wide
range of routes of taking out
insurance depending on thepreferences of customers.

•Advances in IT technology•Advances in medical technology

Human rights issue•Emergence of new human rights
issues•Social and economic disparities
have been widening due to the
COVID-19 pandemic. Emergenceof new human rights issues.

Increased climate change risks
Issues•The number of injuries andfatalities due to natural disasters
increases due to an increase in
extreme weather events such as
typhoons and floods.

Transition to a society with •Business costs increase due totighter regulations on greenhouse
low or net-zero carbongas (GHG) emissions and theemissionsintroduction of a carbon tax.

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Diverse humanresources

Intellectual
CapitalDevelopment ofa wide array of
products andmanagement know-how

Social and
Relationship
CapitalRisk awareness

Rise in average temperature •Various illness risks increase, suchas those of heat strokes, heat
death, and respiratory diseases
due to an increase in heat stressdriven by rising temperatures.
Increase in andintensification of natural
disasters

Human
CapitalStrong bond withcustomers andpartner companies

NaturalCapitalProtection of the
global environment

Further advancement of capital and risk management

Robust financial baseFinancialvalue

Business Partners

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Index[Efforts to address important social issues][Creating shared value]

We have based our business strategies on actions that contribute to solving important social issues
and create value for society. We will work to create social and financial value through our activities inour core businesses, the business areas into which we are expanding, and our sustainability
management business platform.

We have established sustainability priority themes thatcreate shared value. By continuously executing theactivities and assessing their results, we aim to createshared value.

Business activities based on our business strategies (long-term vision)

Creation of social value
Sustainability priority themes andcreation of social value

Society
Customers

Promote healthy and abundant lives for all people

Healthy and abundant lives(person/household)

Creation ofsharedvalue

Socialvalue

Provide workplace environments that enable all
people to participate actively

Employment and job satisfaction(workplace)

Help mitigate and adapt to climate change

Sustainable global environment(global environment)Group Growth Strategy

I

Strengthening of Core Business

II

Diversification and Optimization of Business Portfolio

III

Further Advancement of ERM (Upgrading Capital Management)

IV

Promoting Integrated Group Management

V

SDGs Management and Creation of Value

Employees

Invest to help build a sustainable society

A strong and vibrant society(society/community)

Creation of financial value
Group adjusted profit

Pet & Family Insurance¥130.0billionValue of new business¥200.0billionFiscal 2025 targets

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Three-way Conversation (Vice President × Experts)

Mitsubishi UFJ Research andConsulting Co., Ltd.
Principal Sustainability Strategist

Special Advisor to the
UNEP Finance Initiatives

T&D Holdings, Inc.
Representative Director andExecutive Vice President

Ms. Mari Yoshitaka

Mr. Takejiro Sueyoshi

Kanaya Morinaka

Aspiring to be the Insurance Group
that grows together with society
by contributing to theresolution of issues.
Recent Environmental Changes

Nature-related Financial Disclosures (TNFD) was officiallylaunched in June 2021, and when I talk to investors in

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Sueyoshi The biggest challenge facing the society as aEurope and the United States, I really feel that the issue

whole, the nation as a whole, and the planet as a wholeof resources is also getting a lot of attention.

today is that the earth is headed for ruin. I think that’s

Japan is also moving forward with sustainable finance,

the truth of the matter. As many scholars and intellec-

green innovation, and green growth strategies, but I amtuals have said, the next decade is the time to beat theworried that there is not enough sense of crisis. On theodds. It is important not to tackle sustainability in a pretty

other hand, the expansion of ESG investment in Japanway, but to make sure that human beings, society, andis very strong, and the issuance of ESG bonds such as

biodiversity are truly protected. I think that the situation

green bonds and sustainability bonds has been increasing

is becoming very critical, and that is what is starting toin recent years. I believe that financial institutions overall

move the world now.

are beginning to feel a sense of mission to support the

Yoshitaka At this year’s COP26 (November 1 to 12,

critical situation of the planet Earth.

2021), attention is also focused on the fact that coun-

Human rights issues are also becoming very serious.

tries will raise their greenhouse gas emission reduction

Another day, I talked with a person from Japanese SMEs,

targets. Speaking of climate change, in Japan, we often

and I was very surprised because when he had a businessfocus only on CO2 emissions. However, the Taskforce on

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his track record in signing contracts with disabled people

and debating the issue without any of this perspective will

and female managers. This kind of thing will become theend up in a blame game. Japan will finally be left behind innorm in Japan soon, I predict.

the global competition under such a situation.

Sueyoshi The world is beginning to engage in new

Your Group, in particular, is a company that is con-competitive principles to escape from this global crisis.

cerned with the life, health and happiness of each andThose who are trying to tackle the global crisis head on,

every one, so it is an extremely critical topic for you toare serious about changing the way we do business. And

consider how to maintain and protect the honesty of eachthey believe without a doubt, that the only way for theirindividual and consideration for the weak of society.

company to survive is to take action as soon as possible.

Morinaka You are right. We are a group setting life

If Japanese companies are mistaken about that, I think

insurance business at its core, which is founded on theJapan will be completely beaten.

spirit of mutual aid. We have always valued fairness andMorinaka I found the phrase “the entire planet ishonesty through our main business, but going forward,

headed for ruin” very inspiring. Not only with the new

we would like to extend this value to areas beyond ourcoronavirus (COVID-19) pandemic, but also with themain business and contribute.

floods and the heat wave in Canada, I realize that theentire world is facing a crisis.
Against this backdrop, the Group has formulated the
new Group Long-Term Vision.
This year we have also established the T&D Insurance

For example, the Group has been hiring employeeswith disabilities, mainly physical disabilities, but we havealso created a team of people with mental disabilities.
Such employees are not assigned to a different company,
and they do various tasks within the same company.

Group ESG Investment Policy. Not only are we stopping

They all work with such enthusiasm and tell me that

financing coal-fired thermal power but we are putting

they are happy to be working for this company. It has

an effort on project financing, such as financing tech-

been more than two years since we started the initiative,

nological development of environmental improvements.

and we hope to continue this kind of effort for a long time

We must work to change the global environment by all

to come.

means possible.

Sueyoshi That’s why the history of T&D Insurance

Sueyoshi Mr. Morinaka, I think your understanding isGroup has continued since 1893. I sincerely hope thatabsolutely correct. However, I dare to say that the various

through the implementation of the Group Long-Termissues you have just mentioned are all tied together at

Vision, you will tackle these issues from the perspective

the core. Ending up dealing with individual problems doesof fairness, honesty and the socially vulnerable, and bring

not lead to a fundamental solution.

about a new wave to Japan.

Yoshitaka When the environment is destroyed, theYoshitaka The other day, I had the opportunity to listen

vulnerable are the ones most affected. That’s why deal-

to the opinions of Generation Z. A high school student

ing with human rights issues and responding to climate

said, “We think climate change is dangerous now, butchange are what Western investors are demanding most

why are the adults so slow to take action?” And a juniorof their management. Not everyone can take the samehigh school student said, “I really can’t sleep because I’m

action, so those who can must help those who cannot.

worried about my future.”

Whenever investors evaluate a company, they focus on

When today’s teenagers pass another 30 years, they

the social issues they are interested in. SDGs is a recent

will be the generation in need of insurance the most. The

example. The SDGs itself is not new at all, but it is anchallenge for adults is to always deliver an easy-to-under-organized version of the obvious issues that we havestand message about the importance of insurance to thealready been recognized.

next generation.

Sueyoshi Now that you mentioned the issue of the

Sueyoshi People in their teens and twenties today will

weak in society, when I listen to these discussions over-become the core of society over the next few decades.

seas, I hear some words that we lack in Japan. The mostAs they gain power, I believe that the senior generation,

powerful words are fairness, honesty, and justice. And ofincluding companies that are not able to change will becourse, human rights are included in that. Whenever Japandriven away.

discusses global warming or any other issue, it always

Morinaka We talked about fairness. No matter how

starts by imposing a burden on each other. The question

profitable a company is now, if it is not fair and honest, it

is naturally how to create a fair, honest, and just society,may be rejected by Generation Z when they grow up, and19

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Three-way Conversation (Vice President × Experts)

may not survive. This sense of crisis has been instilled

for example, strengthening core businesses needs to be

into us. That is why we have formulated the Group Long-an ongoing issue, not limited to the period of the Group

Term Vision, with the hope of becoming a group under-

Long-Term Vision.

standable to such people.

With regards to human due diligence, it would also bebetter to establish policies and further clarify what to do.

Group Long-Term Vision“Try & Discover 2025”

Morinaka Thank you very much. In our basic policy of
the SDGs, the ultimate goal is to bring happiness to theworld by creating social value, and to make the world
a better place by generating happiness. In that sense, I

Morinaka Conventional medium-term management plans

would like to think first of all about making the world awere determined based on past experience and anticipation

better place through our main business or even throughof future changes in the environment. Nevertheless, in thisnon-main business.

era of high uncertainty, or when we look five years into the
future amidst changing global trends, including ESG, wehave formulated the long-term vision based on the conceptof backcasting to determine what kind of a group we want tobecome. In addition to how to boost profits, we have createdEstablishing Sustainability Priority
Themes for the Realization ofCreation of Shared Valuea vision that wishes for the happiness of all stakeholders.
Sueyoshi What’s important now is how we are going

Sueyoshi The four priority themes are divided into twoto spend the next five to ten years. Just as we have a tar-categories: life insurance company functions and the role

get of net zero by 2050 for climate change, there should

as an institutional investor. Perhaps products for custom-

be a final goal to be reached, and I believe that the road-ers as a life insurance company fall under priority theme

map leading to the goal, or the five or ten years leading to

1, while the role as an institutional investor comes under

the goal, is important. I feel it may be better if you could

priority theme 4. If we think about this, we can tie priority

elaborate a little more on the positioning of the Group
Long-Term Vision and the longer final goal that it is a partof: what part this first-five-years will play out of what kindof a longer final goal.
Furthermore, I think the idea of placing SDGs at thebase is good, but as I understand it, the most importantpart of the SDGs is to basically rethink the way we dobusiness now. That means, for example, changing corporate management to solve problems.
As I mentioned earlier, each individual problem has asingle root. In terms of companies, I think, the way the
corporate management is run has caused problems. So
it would be better if you could be a little more specificabout what you are going to change.
The businesses of your Group play an important rolein two ways: as a life insurance company and as an institutional investor. I think it would be easier for the reader(e.g., customers) to understand if the two activities wereexplained separately and further detailed. Especially forthe general public, it is not always easy to see what you
do as investors, so I think it is important to give them anorientation of your activities as an investor.
Yoshitaka I think it will be easier to understand if youorganize the time axis of each approach. I understand thismay be a matter of how the information is worded but

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themes 1 and 4 together. Also, I understand that prior-is included in their ESG investment portfolio. As for priority

ity theme 2, “All people,” is basically talking about thetheme 3, climate change, responsibility differs depending

employees of your Group. Regarding priority theme 3,

on whether it is a corporate activity through products or

climate change, I think this is a response as the Group’s

contribution as an investor, so that should be sorted out.

comprehensive role to society as a whole, so I feel thatthe order could be switched.
Also, priority theme 3 should not be limited to theAlso, since employee satisfaction is an important ESG
evaluation category, it would be worthwhile to underline
the details. Sorry, but you do have an employee satisfac-

five-year planning period of the Group Long-Term Vision,tion indicator, don’t you?

but should also indicate the long-term goal of net zero.

Morinaka We sure do. We survey our employees every year.

Whatever the company, region, or country, the ultimate

Yoshitaka However, “providing workplace environments

goal of net zero must be clearly stated.

that enable all people to participate actively” is vague andYoshitaka In preparation for COP26, a new frame-

confusing. So if the stakeholder under this theme refers towork called the Glasgow Financial Alliance for Net Zeroemployees, then it should be written as such, and if it refers(GFANZ) was announced in April of this year. It is now

to the customers, which are management/employees of

becoming the consensus of all financial players to aim

SMEs, then a separate priority theme should be established.

for net zero by 2050. So, I think it would be easier for us

Sueyoshi Additionally, when “all stakeholders” cher-to understand if you first set a target for when to reachry-pick investment targets and various factors, they

net zero and then specifically state how much you will

will definitely have a measure of whether the country,

reduce by 2025.

region, people and company are serious about the future

As Mr. Sueyoshi touched on, I believe that you will beof young people. I believe that your Group is definitely arequired to take more responsibility as institutional inves-company that is thinking about the future of the earth andtors than ever before. However, if individual investors par-the potential of next generation. How do you cultivate aticipate in ESG and sustainability investment in the future,

feeling of trust that you are the kind of a group who think

I think they will also focus on whether or not your Groupand act on everything based on this? I think that is vital.

For T&D Insurance Group
Yoshitaka I was touched by your Group’s attitude to beclose to each and every one. I believe that sustainability
should be a partner to help the weak and SMEs. I heardthat your Group provides products in various languages
for foreign employees of SMEs. I hope that you will continue to work with each and every one, including those ofSMEs, to promote sustainability.
Sueyoshi The phrase “For the happiness of all stakeholders” in the Group Long-Term Vision was surprisingin a good way because of the very soft expression you
have chosen.
As Mr. Morinaka mentioned earlier, I think it is reallynecessary now to value the perspective of the vulnerable
in society. There would be nothing more rewarding thanto see all of you, with the great history since the Meiji era,
further engage in creating an inclusive world, including
those who are socially vulnerable.
Morinaka This has been such a fruitful meeting. I havereally learned a lot from both of you. Thank you very muchfor your time today.

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4. Priority Themes for Promoting Sustainability
4–1

Index

102-46

103-1

Sustainability Priority Themes (FY2021)

Among the various sustainability fields that relate to its business activities, the T&D Insurance Group has identified social issues
that are highly important to society and highly relevant to the Group’s operations. Based on this, we established the following
four sustainability priority themes.

Importance to society (society’s expectations of the Group)

Sustainable global environmentMore efficient resource and energy use

A resilient and vibrant society
Strong but friendly
community development

Employment and job satisfaction[Priority theme 2]
Provide workplace environments thatenable all people to participate actively

Healthy and abundant lives[Priority theme 1]
Promote healthy and abundant lives for
all people

Sustainable global environment[Priority theme 3]
Help mitigate and adapt to climate change

A resilient and vibrant society[Priority theme 4]
Invest to help build a sustainable society

Respect for human rights
Other social human rights

A resilient and vibrant society
Basic living infrastructure

A resilient and vibrant society

A resilient and vibrant society

Revitalization of partnerships,
collaboration with stakeholders

Support for basic education

Sustainable global environment
Environmental protection of land and sea

Support for construction ofindustrial infrastructure

Governance and internal control
of trusted corporate groups
Building a fair business foundation

Relevance to the Group’s business and initiatives (importance to the Group)

Process for Selecting Priority Themes(1) Identify important social issues
We considered various social issues to be targeted, based on what society expects of us as a Group engaged mainly in theinsurance business, as well as how we can help develop a sustainable society.
After examining the SDG goals and targets, our Group CSR Charter, changes in the social environment, trends in technologicalinnovation, and other sources, we identified 40 (important) target-related social issues relevant to our policies, products, services, and business model.
For more information, please see our website.
WEB https://www.td-holdings.co.jp/en/csr/effort/casestudy.html(2) Identify initiatives that address the important social issues
We identified the initiatives that have been implemented to increase social value with respect to the important social issues
through our business activities and our critical business and sustainability management platforms.
(3) Identify the shared value to be realized by the initiatives and the corresponding sustainability themes
We identified initiatives that address important social issues and the shared value of their impact. In order to create sharedvalue, we set themes that promote Group sustainability from the perspectives of the areas of the issues to be addressed andthe ways of addressing them.
For more details on (2) and (3), please see “Initiatives for solving social issues and creating shared value” on page 23.

(4) Prioritize shared values and sustainability themes
We evaluated the importance of each shared value and sustainability theme based on both a) importance to society, and b) relevance to the Group’s business (influence on social issues). We then clarified the priority of the initiatives for the Group to pursue.
a) Importance to society: Evaluation based on its impact on society and its contribution to the SDGsb) Relevance to the Group’s business: Evaluation based on the relationship with policies and actions defined in the T&D
Insurance Group CSR Charter(5) Select sustainability priority themes
We set priority themes for promoting Group sustainability that can have an impact on the creation of shared value by addressing important social issues.
(6) Verify the adequacy of sustainability priority themes• We engaged in dialogue and exchanged views on the selection process of priority themes with a qualified third party, thenconfirmed the adequacy of social issues to be targeted and the validity of our priority evaluation.
• In addition, we received approval from the Group SDGs Committee and reported to the Executive Committee (now the Executive
Management Board) and Board of Directors.
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Initiatives for Solving Social Issues and Creating Shared ValueThe T&D Insurance Group is committed to creating shared value and contributing to solving social issues through the Group’s
broad range of business activities.
Social Issues and T&D Insurance Group Initiatives

Important social issue

T&D Insurance Group initiative
B : Sustainability promotion in business activities
P : Insurance business products and services
I : ESG investment
C : Social contribution

2. R educe economic and social
risks in an aging society

P : Insurance to support the prevention of dementia, insurance to protect a wide range of conditions
requiring long-term careP : Pension products to address the 100-year-life era, insurance for long-term care and dementia
C : Research grants for various health problems and the issues accompanied by rapid increase in theelderly population

7. H
 elp people maintain
good healthI : Investment in funds that support businesses that contribute to improving people’s healthC : Foundation grants to welfare projects for the elderly and disabled

22. P
 romote use of insurance andfinancial services for all

P : Protection-oriented products at an affordable price, income protection insurance that can add
specific disease insurance
P : Integration of Internet-based insurance enrollment with face-to-face support service
P : Support for foreign employees who have difficulties understanding Japanese during the application process in order to meet the insurance needs of foreign workers in SMEs

24. E ncourage all people toengage in social andeconomic activities

C : Engagement and support with the Down Syndrome Association and volunteer activities tosupport people with disabilities
P : Delivering asset-formation products for comfortable postretirement life for seniors

19. S
 upport establishment andgrowth of SMEs
20. P
 romote decent work
21. C
 reate healthy and safe
workplace environments
23. P
 rovide financial services to
SMEs

P : Supporting the spread and promotion of health-oriented management® and the enhancement of
the welfare system at SMEs
P : New power bidding support service to support the efficient management of SMEs
P : Helping SME owners confirm employee safety in the event of a large-scale disasterg) Respect worker personalities
and diversityh) Support human resources andskills development

B : E ducation and training centered on on-the-job training, group training, and self-development
supportB : Introduction of a re-employment system and implementation of life plan seminars for employees
who are reaching the mandatory retirement age
B : P romotion of employment for persons with disabilities, implementation of training on LGBT(sexual minorities), and establishment of a consultation desk to promote diversity

11. Promote the advancement of
women
21. Create healthy and safe workplace environments

B : E stablishment and implementation of action plans for promoting the active participation of(workplace)
women and targets for promoting female employees to management positions
B : Implementation of a mentor system in which executives and managers support newly appointed
female managers
B : E stablishment of systems for return to the workplace, including formulating a program for returning to work after childcare leave

17. Increase use of renewableenergy18. Promote investments inclean energy
29. Strengthen resilience toclimate change

B : S et Group-wide targets to reduce CO2 emissions, reduce electricity consumption, reduce office
paper consumption, and improve the green purchasing ratio.
B : Conduct “Cool Biz” in summer and “Warm Biz” in winterB : Energy conservation through a “Lights Down” campaign, power demand monitoring system, and“no overtime day”

34. Promote investments insustainable development

I : Investment in “green bonds” and funds targeting renewable energy power generation, energy
efficiency, and domestic clean energy power generation projects
I : Investment and management of ESG-related funds that make selective investments from theperspective of ESG
I : Investment in the “Fund Supporting Good Health,” “Japan Healthy Society Support Fund,” and“Healthy Society Contribution Fund,” which support projects that contribute to the promotion ofhuman healthI : Exercise of voting rights and dialogue with investees based on the Principles of Responsible
Institutional Investors

Shared value and sustainability
theme (major activities)

Healthy andabundant lives[Priority theme 1]
Promote healthy
and abundant lives for all
people(person/household)

Employment andjob satisfaction[Priority theme 2]
Provide workplace environmentsthat enable all people to participate actively

Sustainable global environment[Priority theme 3]
Help mitigate and adapt toclimate change(global environment)
A resilient andvibrant society[Priority theme 4]
Invest to help build a sustainable society(society/community)23

Organizational
Profile24

Sustainability
Management

Priority Theme

1

2

3

4

Social Activities

Governance andInternal Control

Management
Control

Third-party
Opinion

Index

Important social issue

T&D Insurance Group initiative
B: Sustainability promotion in business activities
P : Insurance business products and services
I : ESG investment
C : Social contribution

Shared value and sustainability
theme (major activities)

16. Improve energy efficiency
27. Enhance efficiency of
resource use
28. Increase reuse andrecycling activities

B : Installed OA equipment in the meeting rooms to reduce the amount of office paper used, andrealize paperless meetings, including the Board of Directors and the Executive Management
Board
B : Promoting green purchasing by giving priority to products that are compliant with the Green
Purchase Act and to Eco Mark products

Sustainable global environment(other than climate change)• Efficient use of resources andenergy9. Provide equal access to
education
10. Provide safe and effective
learning environments

C : Support for under-resourced schools in Southeast Asia - donation of books and school supplies

A resilient and vibrant society• Support for basic education

33. Eradicate corruption andP : Preparing easy-to-understand product brochures, policy overviews, and policy proposals tailoredbribery
to each customer’s needsj) P rovide proper information on
P : Sending notification of policy details to customers and confirming them in person through direct
products and services
home visitd) Ensure fair and free competition P : Preparing and distributing service guidebooks and safety guides

Governance and internal control
of trusted corporate groups• B uilding a fair businessfoundation

25. Build communities that areinclusive of the weak
26. Build communities that are
resilient to disasters

I : Constructing and operating nursing homes utilizing assets owned by the Company

A resilient and vibrant society• S trong but friendly community
development

3. I mprove nutrition in poor
households
6. T ake measures to combat infectious and contagious diseases
5. S
 upport use of health services
13. Provide access to safe andinexpensive water
14. Provide equal access tosanitation facilities

C : Subsidies for regional health and welfare research and volunteer activities (Daido Life)

A resilient and vibrant society• B asic living infrastructure

1. Secure equal rights inproperty ownership12. Stop discrimination against
women and violencei) Manage and protect personal
information

B : Acquisition of the Privacy Mark for companies that handle personal information appropriately
Respect for human rights
B : Acquisition of ISO27001 certification, the international standard for information security manage• Other social human rights
ment systems

30. Protect marine resources andprevent marine pollution
31. Conserve forests
32. Conserve terrestrial
biodiversity

C : Established “Taiyo Seimei no Mori” (the Forests of Taiyo Life) at two locations in Japan andpromoted forest conservation based on using timber from forest thinningB : Collected and donated plastic bottle caps, used postage stamps, and other items

4. P romote sustainable agriculture
15. Provide low-cost,reliable energy

A resilient and vibrant society
I : Investment in social bonds, which contribute to education and employment support in developing• S upport for construction ofcountries, measures against the spread of COVID-19, etc.
industrial infrastructureo) Collaborate with stakeholders

P : Holding customer information meetings and business reporting meetings
B : Participation in the Japan Association for the UNEP (Global Environmental Initiatives)
C : Support for the Japan Down Syndrome Society

Sustainable global environment(other than climate change)• Environmental protection forland and sea

Revitalization of partnerships• Collaboration with stakeholders

Organizational
Profile

4–2

Sustainability
Management

Priority Theme

1

2

3

Social Activities

4

Governance andInternal Control

Management
Control

Third-party
Opinion

GRI Material TopicGRI topic

Index

102-47
Materiality assessment (mapping) or Compliance issues
3. Improve nutrition in poor household

GRI 200: Economic

201 : Economic PerformanceGRI 200: Economic

205 : Anti-corruption

33. Eradicate corruption and bribery

GRI 200: Economic

206 : Anti-competitive Behaviord) Ensure fair and free competition

GRI 300: Environmental

301 : Materials

GRI 300: Environmental

302: Energy

GRI 300: Environmental

303: Water and EffluentsGRI 300: Environmental

304: Biodiversity

GRI 300: Environmental

305: Emissions CO2

29. Strengthen resilience to climate change

GRI 300: Environmental

305: Emissions SOx, NOx etc.

18. Promote investments in clean energy

GRI 300: Environmental

306: Effluents and Waste

GRI 300: Environmental

307: Environmental Compliance

The T&D Insurance Group Compliance Code of Conduct
1.Rigorously Enforcing Compliance

GRI 400: Social

401: Employment

20. Promote decent work

GRI 400: Social

403: Occupational Health and Safety

21. Create healthy and safe workplace environments

GRI 400: Social

404: Training and Educationh) Support human resources and skills development

GRI 400: Social

405: Diversity and Equal Opportunity

GRI 400: Social

412: Human Rights Assessment

GRI 400: Social

413: Local Communities

GRI 400: Social

414: Supplier Social Assessmento) Collaborate with stakeholders

GRI 400: Social

418: Customer Privacyi) Manage and protect personal information

GRI 400: Social

419: Socioeconomic Compliance

The T&D Insurance Group Compliance Code of Conduct
1.Rigorously Enforcing Compliance

29. Strengthen resilience to climate change

27. Enhance efficiency of resource use
28. Increase reuse and recycling activities
16. Improve energy efficiency
17. Increase use of renewable energy
13. Provide access to safe and inexpensive water
27. Enhance efficiency of resource use
31. Conserve forests
32. Conserve terrestrial biodiversity

30. Protect marine resources and prevent marine pollution
31. Conserve forests

11. Promote the advancement of womeng) Respect worker personalities and diversity
12. Stop discrimination against women and violenceg) Respect worker personalities and diversity
25. Build communities that are inclusive of the weak
26. Build communities that are resilient to disasters

19. S upport establishment and growth of SMEs
Better Products and Servies

22. P romote use of insurance and financial services for all
23. Provide financial services to SMEs

Issues not identified in GRI
Standard topics

Promote community and employee healthResponsibilities as an institutional investor
Demographic Change/Aging issues

7. Help people maintain good health
21. Create healthy and safe workplace environments
18. Promote investments in clean energy
34. Promote investments insustainable development
2. Reduce economic and social risks in an aging society

25Organizational
ProfileSustainability
Management

Priority Theme

1

2

3

4

Social Activities

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

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

5–1

Sustainability Priority Themes and SDGs

Sustainability Priority Themes and the SDGs
Sustainability priority themes

26

Main related SDG targets

Specific actions

1. Promote healthy
and abundant lives
for all peopleT aiyo Life quickly launched Infectious disease plus hospitalization insurance (lump-sum paymenttype) which covers COVID-19 (September 2020)
Daido Life launched free-of-charge COVID-19 mutual support insurance in collaboration with
justInCase (November 2020)
Activities to support the health and productivitymanagement practices of SMEs
Development and provision of health promotion apps, etc.

2. Provide workplaceenvironments thatenable all people toparticipate activelyE ffective use and training of human resources through OJT, group training, self-development support, etc.
Support for the advancement of women through managerial appointments, childcare support systems, etc.
Efforts to modernize workstyles to enrich work and life by providing work-at-home options, reducing working hours, encouraging vacation uptake, etc.
Helping create environments in which employees of business partners can work in a healthy andsafe manner

3. Help mitigate
and adapt toclimate changeE stablishment of Group-wide CO2 emission reduction targets
Efforts to reduce consumption of electricity and office paper
Promotion of green purchasing initiatives to help protect the environment
Activities to conserve and cultivate forests
Collaboration with and support for NPOs engaged in protecting the global environment
Endorsement of TCFD recommendations and disclosure of climate-related financial information

4. Invest to help build asustainable societyInvestment in "green bonds" that contribute to solving environmental problems
Investment in and financing of renewable energy projects and energy efficiency projects
Investment in various “social bonds” that contribute to the measures against the spread of
COVID-19
Investment in and financing of businesses committed to solving water shortage issues
Investment and financing to support youth development and employment in developing countries
Investment in businesses that promote better health for people

Organizational
Profile5–2

Sustainability
Management

Priority Theme

1

2

3

Social Activities

4

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

SDG Compass Comparison Table

The SDG Compass serves as a guideline for how companies align their SDGs with their business strategies and measure andmanage their contributions. The Compass was created jointly by the Global Reporting Initiative (GRI), United Nations Global
Compact (UNGC), and World Business Council For Sustainable Development (WBCSD) in 2016. The five steps in the SDG
Compass and the status of the Group’s efforts are described below.
SDG Compass Comparison Table
Item
Exective summary

SDG Compass contents

Relevant material (P indicates the page of this report)

Why do the SDGs matter for business?

P.2: Message from the President

What is the SDG Compass?

P.27: 5-2 SDG Compass Comparison Table

Step 1

What are the SDGs?

Understanding the
SDGs

Understanding the business case

Step 2
Defining priorities

The baseline responsibilities for business
Map the value chain to identify impact areas
Select indicators and collect data

Step 3

Define baseline and select goal type

Setting goals

Set level of ambition
Announce commitment to SDGs

Integrating

P.22: 4-1 Sustainability Priority Themes

Define priorities
Define scope of goals and select KPIs

Step 4

P.26: 5. Contribution to SDGs

Anchoring sustainability goals within the business
Embed sustainability across all functions
Engage in partnerships

P.60: P riority theme 2 (Targets set for promoting female employees tomanagement positions)P.75: Priority theme 3 (Group-wide Targets and Results)
P.22: 4-1 Sustainability Priority Themes• Initiatives for solving social issues and creating shared value
P.16: 3 . T&D Insurance Group’s Value Creation Process
P.32: Participation in external evaluations and initiatives• Publication of Sustainability Report (this report)• Website
https://www.td-holdings.co.jp/en/csr/

Step 5
Reporting &communicating

Effective reporting and communication
Communicating on SDG performance• I ntegrated Reports
https://www.td-holdings.co.jp/en/ir/document/annual.html

For details on the SDGs and the T&D Insurance Group’s initiatives, please see our website.
WEB https://www.td-holdings.co.jp/en/csr/effort/casestudy.html

27Organizational
ProfileSustainability
Management

Priority Theme

1

2

3

Social Activities

4

Governance andInternal Control

Management
Control

Third-party
Opinion

6. Status of Sustainability Promotion

Index

103-2

103-3

FY2020 Status Report on the Promotion of Group Sustainability
The T&D Insurance Group has established the Group SDGs Committee, chaired by the president of T&D Holdings and consisting
mainly of officers in charge of sustainability/CSR at each Group company. Under this Committee, we are pushing ahead withunified Groupwide CSR activities.
The Group SDGs Committee serves as the cornerstone for promoting sustainability. It formulates basic policies for the Group’s
sustainability promotion activities and selects priority areas, along with drawing up annual plans and regularly confirming the implementation status of those plans. Since fiscal 2019, we have set four sustainability priority themes under which we are working
to promote sustainability.
FY2020 Group Sustainability Promotion Progress Report (Partial Account of Activities)
Plan
Initiatives

Do
FY2020 results/performance

Check/Act
Activities planned for FY2021• Developed and launched Infectious disease plus hospitalization insurance(lump-sum payment type), which provides generous coverage for hospitalization due to infectious diseases• Developed and launched Kaigo Relief to provide wide coverage whenlong-term care is required, such as for dementia• Developed and launched a yen-denominated, single-premium variable
whole life insurance that supports asset formation through self-provisionin the Centenarian Age• Providing the KENCO SUPPORT PROGRAM to support the implementationof health-oriented management® by SMEs
• Deploying the Taiyo’s GENKI Project to encourage good health• Supporting foreign employees who have difficulties understanding
Japanese during the application process• Continue contributing to solutions to social
issues and developing and offering highquality, optimal products and services thatmeet customer needs• Continue to provide services to support thehealth of our customers and society as a whole

Priority Theme 1: Promote healthy and abundant lives for all people• P roviding insurance products and services thatmeet the needs of society• S upport for maintaining good healthPriority Theme 2: Provide workplace environments that enable all people to participate actively• C reating a flexible and vibrant workplace where
diverse human resources can demonstrate theirabilities with a motivation to work and grow (workstyle reform, promotion of active roles for women,
promotion of a diverse workforce)• C reating a healthy and safe working environment• Implemented personnel exchanges within the Group, in-house open
recruitment of employees seeking specific positions, and support system
for studying in Japan and overseas• Promoted the appointment of female managers by setting numeric targets• Extended retirement age to 65, introduced a continuing employment
system that allows persons to keep working up to the age of 70, held life
planning seminars for employees• Supported SME owners to check employee safety in the event of a largescale disaster• Continue to develop the next generation ofhuman resources and support employees’
career development• C ontinue to implement work style reforms to allow all Group executives and employees to grow• P romote initiatives for new work styles in anticipation of the “new normal” after COVID-19

Priority Theme 3: Help mitigate and adapt to climate change
Reduction in CO2 Emissions
Period: FY2020–FY2025
Scope: B uildings owned or leased and used byGroup companies
Baseline: CO2 emissions in FY2013 (value per unit offloor space)
Target: At least 40% reduction from baseline by FY2025• Reduced CO2 emissions by setting targets for reducing electricity use andcontrolling energy consumption• FY2020 results: 0.0470 t/m2, 69.7% of baseline (30.3% reduction frombaseline)• R educed CO2 emissions by continuing to promote
initiatives to reduce electricity consumption

Reduction in power consumption
Period: FY2018–FY2027 (Baseline year: FY2016)
Scope: Buildings owned or leased and used byGroup companies
Baseline: P ower consumed in FY2016
Target: M ore than 10% reduction in power consumption per floor space• Implemented a multitude of measures, including lights-out before
business hours and during lunch breaks, turning off office appliances,setting a “no overtime day,” new construction of owned real estate(including investment buildings), and energy saving investment when
renewing facilities• F Y2020 results: 100.8Kwh / m2, 90.7% of baseline (9.3% reduction frombaseline)• R educe CO2 emissions by continuing to promote
efforts to reduce power consumption through themeasures listed on the left

Reduction in office paper use
Period: FY2019–FY2023
Baseline: A verage of office paper usage between
FY2014 and FY2018
Scope: Paper used at head offices of Group companies
Target: 12% reduction from baseline• Reduced usage by promoting paperless meetings, reducing storage
documents, adding PC sub-monitors, installing PC connection monitors tomeeting tables, managing the number of copies, promoting digitization of
insurance policy provisions, etc.
• Reduced by 19.1% from baseline in FY2020• Initiate a new five-year target from FY2019 tofurther reduce paper usage

Priority Theme 4: Invest to help build a sustainable society• C ontribute to the realization of a sustainable
society through ESG investments that take into
account environmental, social and corporate
governance issues• E xercise voting rights as a responsible institutional investor and promote dialogue with investees• <Environment> Implemented renewable energy project financing andinvested in green bonds<Society> Invested in social bonds and infrastructure development projects
in developing countries• Exercised routine dialogue (engagement) with investee companies topromote their sustainable growth• Continue investment and lending behavior
based on ESG investment and the Principles
for Responsible Institutional Investors (Japan’s
Stewardship Code)• Issued a Group Sustainability Report and expanded the information
disclosed on the website• Disseminated sustainability/CSR-related information within the Groupthrough Group newsletters and training including e-learning• Expand report disclosure information and dissemination of sustainability-related information• Continue measures to raise awareness of sustainability of executives and employees througheducation and training• Held blood donation twice a year in cooperation with the head offices ofeach Group company• Held a charity calendar exhibition with the cooperation of our business
partners and donated the proceeds to facilities for people with disabilities• Continue the efforts to contribute to society
listed on the left

Communication•D issemination of information related to thepromotion of Group sustainability• R aising sustainability/CSR awareness within
the Group
Contribution to local communities and society

28•G roup joint blood donations• C harity calendar exhibitions

Organizational
ProfileSustainability
Management

Priority Theme

1

2

3

Social Activities

4

Governance andInternal Control

Management
Control

Third-party
Opinion

7. Sustainability Promotion Framework
7–1

Index

103-2

103-3

Sustainability Promotion Framework (FY2020)

The T&D Insurance Group has established the Group SDGs Committee, which consists mainly of officers in charge of sustainability/CSR (planning and CSR) at each Group company.Our sustainability promotion framework has been reinforced to facilitate
coordinated efforts by way of deliberation by the Group SDGs Committee of Group-wide sustainability policies and initiatives,
while encouraging each Group company to actively pursue sustainability promotion efforts in its respective operations.
Group SDGs Committee
The SDGs express the goals of promoting sustainability in a way that is easy to understand. To further strengthen Group cooperation in promoting sustainability, the Group SDGs Committee was established directly under the Board of Directors with the goalof advancing efforts across the Group as a whole. The Committee serves as the cornerstone for promoting sustainability at theGroup. It formulates basic policies for the Group’s SDGs and CSR activities and selects priority themes along with drawing up annual plans and regularly confirming the implementation status of those plans. The Group SDGs Committee is chaired by the president of T&D Holdings (representative director and chairperson of the Board of Directors) and vice-chaired by the executive officer
in charge of the Social Communication Department. In fiscal 2020, the Committee met five times. All the information shared andthe issues deliberated and discussed are reported to the Board of Directors. In addition, in fiscal 2020 we established the Climate
Change Risk Subcommittee and the ESG Investment Subcommittee as subordinate bodies of the Group SDGs Committee toproactively address the increasingly important issue of climate change. The subcommittees are chaired by the General Managerof the Social Communication Department of T&D Holdings, who is in charge of promoting Group sustainability, and consist of theheads of the planning, risk management, and asset management departments at each Group company, as well as the persons
in charge of handling these issues (section managers). In addition, we have established the SDGs Promotion Working Group,
which comprises the departments in charge of sustainability/CSR of T&D Holdings and each Group company. The Working Groupadvances each Group company’s sustainability promotion activities by sharing information on sustainability promotion at eachGroup company, in conjunction with assisting with the management and activities of the Group SDGs Committee.
• Executive officer in charge of sustainability at T&D Holdings......................................................................Kanaya Morinaka, Representative Director and Executive Vice President (FY2020)100% attendance at Group SDGs Committee meetings in fiscal 2020
• Department in charge of promoting sustainability at T&D Holdings......................................................................Social Communication Department, T&D Holdings• Departments in charge of sustainability/CSR at each Group company......................................................................Established departments in charge of sustainability/CSR at each Group company(planning and public relations departments)
Sustainability Promotion System in the T&D Insurance Group (as of July, 2021)
T&D Holdings

Board of Directors
Group SDGs Committee
PresidentGroup Strategy Board

Department in charge of promoting sustainability
Social Communication Department(committee secretariat)

Executive Management Board

Sustainability Advisory Committee
Climate Change Risk Subcommittee

Departments

SDGs Promotion Working GroupESG Investment Subcommittee

Group Companies
Departments in chargeof Sustainability/CSR

Departments in chargeof Sustainability/CSR

Departments in chargeof Sustainability/CSR

Departments in chargeof Sustainability/CSR

Departments in chargeof Sustainability/CSR

Departments in chargeof Sustainability/CSR

Each division

Each division

Each division

Each division

Each division

Each division
Pet & Family Insurance

Sustainability Advisory Committee
This Committee was established in fiscal 2021 to improve the Group’s sustainability initiatives by incorporating the perspectivesof external experts and the latest trends.

29

Organizational
ProfileSustainability
Management

Priority Theme

1

2

3

Social Activities

4

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

8. Management Approach
T&D Holdings is promoting activities for each of the core subjects and themes of ISO 26000, through the meeting structure
shown in the table below.
Core Subjects and Themes of ISO 26000
Organizational governance
Human rights
Labor practices

The environment

Fair operating practices

Organizational governanceDue diligence, human rights risk situations, avoidance ofcomplicity, discrimination and vulnerable groups
Employment and employment relationships, conditions ofwork and social protection, social dialogue, health and safety
at work, human development and training in the workplace
Prevention of pollution, sustainable resource use, climatechange mitigation and adaptation, protection of theenvironment, biodiversity and restoration of natural habitats
Anti-corruption, responsible political involvement, faircompetition, respect for property rights
Social responsibility in the value chain

Consumer issues

Consumer service, support, and complaint and dispute
resolution, education and awarenessConsumer data protection and privacy

Community involvementand development

Community involvement

Meeting Structure (Chairperson)
Executive Management Board [President of T&D Holdings]
Group Strategy Board [President of T&D Holdings]
Group Compliance Committee [President of T&D Holdings]
Group HR Committee[Executive officer in charge of personnel at T&D Holdings]
Group SDGs Committee [President of T&D Holdings]
Group Compliance Committee [President of T&D Holdings]
Group Risk Management Committee[Executive officer in charge of risk management at T&D Holdings]
Customer service department and product development departmentof each major group company
Group Risk Management Committee[Executive officer in charge of risk management at T&D Holdings]
Group SDGs Committee [President of T&D Holdings]

The activities of the core subjects and themes of ISO 26000, other than Group CSR committees, are described below.
Executive Management Board and Group Strategy Board
T&D Holdings has established an Executive Management Board and Group Strategy Board. The Executive Management Board
is composed of the chairman, president, executive vice president, and executive officers, and primarily discusses and resolves
important matters related to the management of the Company and of the Group. The Group Strategy Board consists of the president, executive officers in charge of the business planning units and business management units, and the presidents of Taiyo Lifeand Daido Life, who are also members of the Group’s Board of Directors. The Group Strategy Board discusses matters related to
the Group’s growth strategies and other important matters associated with them.
Group Compliance Committee
This committee was established under the Board of Directors to strengthen the Group’s compliance structure. Its chairpersonis the president. The vice chairperson is the executive officer in charge of the Risk Management Department (responsible forcompliance). In addition to promoting, monitoring and improving the Group’s compliance structure, the committee investigates,
plans, and discusses fair business performance, human rights violations, and other such issues. The committee verifies thecompliance status of the T&D Insurance Group Compliance Code of Conduct and the effectiveness of the compliance structure
through periodic monitoring of the Group’s compliance practices and deliberations on them. The committee held four meetingsin fiscal 2020 and reported issues covered and information shared to the Board of Directors.
Group HR Committee
T&D Holdings and the three life insurance companies share information about labor-related matters regarding the administrative
personnel employed by the Group. The Group has established the Group HR Committee in order to cooperate in conducting
surveys, formulating plans and holding consultations regarding important matters of policy to which the Group should respond.
The chairperson of the committee is the T&D Holdings executive officer responsible for human resources, and the committee
members are the heads of the human resource departments of the three life insurance companies. The committee meets every
month. The Human Resources Strategy Council is promoting efforts to create a corporate culture that diverse human resources
will find engaging to work in and that enables them to reach their full potential. The council does this by conducting surveys, formulating plans and holding consultations regarding policies and management methods concerned with the Group’s labor-related
matters. These include promoting the active participation of women and other forms of diversity, developing human resources,
promoting a good work-life balance, and ensuring the health and protecting the safety of employees.

30Group Risk Management Committee
Positioned directly under the Executive Management Board, the Group Risk Management Committee manages and controls risks
that the T&D Insurance Group is exposed to and ensures thorough risk management. The Committee chairperson is the executive officer in charge of the Risk Management Department. The Committee also engages in conducting surveys, formulatingplans, and holding consultations regarding the risks associated with outsourcing management of our business partners.
In fiscal 2020, the Committee held 20 meetings and reported the results of deliberations to the Executive Management Boardand the Board of Directors.

Organizational
ProfileSustainability
Management

Priority Theme

1

2

3

Social Activities

4

Governance andInternal Control

Management
Control

Third-party
Opinion

9. Stakeholder Engagement102-40Index

102-42102-43

The T&D Insurance Group and Its Stakeholders

Customers
Shareholders/
Investors

Partnering for mutual
cooperation andprosperity

Providing applicablereturns on investments

Local
Communities/
Society
Activities as a memberof society

Sales
AgentsProviding better
products and services

Business
Partners
Effective and highly
transparent corporate
governanceFair dealings

Thorough compliance
Governmental
Entities
Playing a publicrole in society

Proactive communication
Employees

Environment
Protecting the environment,
everyone’s home

Providing workplaces thatmake work meaningful
and pleasurable

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

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Dialogues with Main Stakeholders
Shareholders’ meetings, financial results briefings, individual meetings for institutional investors, and publication of shareholder newsletters
Shareholders andinvestors

In addition to shareholders’ meetings, we hold information meetings, teleconferences, and individual meetings for institutional investors. T&D Holdings informs its shareholders, numbering 219,229
as of March 31, 2021, of the status of Group operations and other matters twice a year, in June andDecember, through shareholder newsletters.
Customer feedback, customer surveys, customer meetings, business reporting meetings,
Service Quality Improvement Committee, Service Supervision Committee, etc.
The Group has set up many points of contact with its customers, including sales representatives,
agents, call centers and the Internet, as well as a new policy procedures survey that focuses on theattitudes of sales representatives and the understandability of application forms and other documents
and customer satisfaction surveys, giving the Group access to a wide range of customer feedback. A
committee has also been established to improve customer satisfaction, and the Group incorporates
the opinions of outside committee members, including attorneys and experts in consumer issues, in
its management.

Customers

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

Employees

Protecting
the environmentand contributing tolocal communities

Participation in the UN Global Compact, Principles for Financial Action for the 21st Century, and theJapan Association for the United Nations Environment Programme (UNEP), support for the Japan
Down Syndrome Society, working with the Japan Philanthropic Association, implementing Forestsof Taiyo Life activities, supporting activities by The Nature Conservation Society of Japan, etc.
The Group participates in the UN Global Compact, Principles for Financial Action for the 21st Century,and other initiatives. It also exchanges views in a wide range of areas through study groups and dialogues with the participating companies. Furthermore, the Group has opportunities to understandstakeholders’ expectations toward enterprises and to explore possibilities of the Group’s contribution
through support of and participation in the activities of NPOs active in each field.

10. Principles That the T&D Insurance Group Endorses and Supports

102-12The UN Global Compact
The T&D Insurance Group has become a participant of the United Nations (UN) Global Compact (UNGC),a cooperative framework between the UN and corporations to realize sustainable growth advocatedby the UN.
The UNGC proposes ten principles applying to the four areas of the protection of human rights, theelimination of unfair labor practices, the protection of the environment and the prevention of corruption,and encourages companies to act in a responsible manner. The T&D Insurance Group endorses the
UNGC’s philosophy, and T&D Holdings, representing the Group, has signed a memorandum declaring its
support for the ten principles.
UNGC’s Ten Principles
Human rights

Labor

Environment
Anti-Corruption
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Principle 1

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

Principle 2

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

Principle 3

Businesses should uphold the freedom of association and the effective recognition of the right tocollective bargaining.

Principle 4

Businesses should uphold the elimination of all forms of forced and compulsory labour.

Principle 5

Businesses should uphold the effective abolition of child labour.

Principle 6

Businesses should uphold the elimination of discrimination in respect of employment and occupation.

Principle 7

Businesses should support a precautionary approach to environmental challenges.

Principle 8

Businesses should undertake initiatives to promote greater environmental responsibility.

Principle 9

Businesses should encourage the development and diffusion of environmentally friendly technologies.

Principle 10

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

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

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

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

Principles for Financial Action for the 21st Century
1. We will recognize our roles and responsibilities, taking into account the precautionary approach, and promote thoseactions that contribute towards shaping a sustainable society.
2. We will contribute to the formation of a sustainable global society through the development and provision of financial
products and services leading to the development and increased competitiveness of “industries contributing to a sustainable society” as represented by the environmental technologies and services sector.
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 of cooperation with diverse stakeholders andwill not only participate in its activities but will endeavor to take a proactive role.
5. We will not be limited to complying with environmental laws and regulations but will take active steps to reduce ourown environmental footprint through resource and energy savings as well as encouraging our suppliers to do likewise.
6. We will recognize activities that will further profile sustainability as a business issue and will endeavor to disclose information on our activities.
7. In order to implement the above actions we will aim to raise the awareness of environmental and social issues of ourown board and support them to take an active role through their normal duties.

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11. External Evaluation
Inclusion in ESG Indexes
Evaluation by ESG assessment organizations
The Group makes efforts to disclose understandable and transparent information on its initiatives for addressing sustainability
and ESG issues. The Group is included in major ESG indexes after being highly evaluated by ESG assessment organizations andindex builders in and outside Japan.
* ESG (environment, social, and governance) investment is an approach to select targets not only on the basis of financial data, but also on initiatives for environmental and social
issues, governance, and other considerations.

International
The FTSE4Good Index Series is an internationally trusted major ESG investment index launched in 2001 by FTSE International, a wholly owned subsidiary of the London Stock Exchange Group. Our Group was added to theindex in 2009.
The MSCI ESG Leaders Indexes is an international stock index built andcalculated by a financial services company headquartered in New York, andconstituted by companies with excellent ESG performance. Our Group wasadded to the indexes in 2014.
MSCI ESG Research logo disclaimer:
THE INCLUSION OF T&D Holdings, IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE ASPONSORSHIP, ENDORSEMENT OR PROMOTION OF T&D Holdings, Inc. BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI.
MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATESJapan
It is an index newly developed by FTSE in 2017 that consists of selected Japanese companies with excellent environmental, social, and governance (ESG) performance. Our Group has been included in the index
since it was first developed.
It is an index newly developed by MSCI in 2017 that consists of selected
stocks with relatively high environmental, social, and governance (ESG) ratings. Our Group has been included in the index since it was first developed.
It is an index newly developed by MSCI in 2017 that consists of selected
stocks with excellent gender diversity in their industries. Our Group has been
included in the index since it was first developed.
As of July 1, 2021

Major Awards, Commendations
The Group’s efforts for addressing CSR and ESG issues have been highly evaluated by society, and the Group has received various awards and commendations.
FY202034

Excellence Award at the 2nd
Platinum Career Award
Sponsored by TOYO KEIZAI INC.
Supported by Cabinet Secretariat and Ministry of
Health, Labour and Welfare

Excellence Award at the 6th Sustainable
Finance Awards
Research Institute for Environmental Finance (RIEF)

Special Award
Japan Financial Innovation Award 2021

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

Top quality rating of “3 stars”
Telephone support desk (customers/agents)
HDI Japan

BCP Award
Contact Center Award 2020

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T&D Insurance Group Human Rights Policy
The T&D Insurance Group CSR Charter calls for “Respect for Human Rights,” and the Group promotes business activities that
respect the human rights of all executives and employees of the Group and all stakeholders.
As a concrete action, we established the "T&D Insurance Group Human Rights Policy," which expresses the Group's views
on respect for human rights, under which we conduct human rights due diligence. The Policy was formulated in accordance with
the Guiding Principles on Business and Human Rights, a standard of conduct for all nations and companies developed by theUnited Nations Human Rights Council.

T&D Insurance Group Human Rights Policy
The T&D Insurance Group has established this Human Rights Policy (the Policy) as a set of standards applicable to all executives and employees*, based on the Group’s Corporate Philosophy and the T&D Insurance Group CSR Charter.
We recognize that our business activities could potentially have human rights impacts. We are committed to conducting
our business activities with respect for the human rights of all stakeholders in line with this Policy.
We expect all our business partners to understand and adhere to this Policy. We also strive to use our leverage to contribute to a society where all people’s human rights are respected.
1. Our Position on Respect for Human Rights
We aim to be a group that contributes to all people and societies through creating value, and fulfill our responsibility to respect human rights of all stakeholders related to our business activities. We commit to respecting internationally recognizedhuman rights as set out in the International Bill of Human Rights and the International Labour Organization’s Declaration
on Fundamental Principles and Rights at Work. We support the United Nations Guiding Principles on Business and Human
Rights, and as a signatory to the United Nations Global Compact, we also commit to implement their Ten Principles.
Where national laws and international human rights standards differ, we will follow the higher standard. Where they are in
conflict, we will seek ways to respect internationally recognized human rights while still complying with applicable local laws.
2. Implementation of Human Rights Due Diligence
We commit to implement human rights due diligence to identify, prevent and mitigate adverse human rights impacts associated with our business activities. We strive to deliver appropriate remedial measures when we discover that we havecaused or contributed to adverse human rights impacts.
We strive to engage and consult with relevant stakeholders to appropriately understand and address our business activities’ impact on human rights.
3. Training and Raising AwarenessWe will provide training on respect for human rights to all executives and employees to raise awareness and to build capacity to effectively implement this Policy.
4. Grievance Mechanisms
We have whistle blowing channels through which concerns and grievances related to human rights can be raised, which
are accessible to all our executives and employees. We also have mechanisms through which human rights concernsand grievances associated with our business can be raised by external stakeholders, such as customer desks of the head
offices and branch offices, call centers (customer service centers) and online reporting channels. We continue to optimize
our grievance procedures in order to respond to internal and external concerns and grievances associated with our humanrights impacts.
5. Reporting on Our Progress to Respect Human Rights
We will continuously report progress on our efforts to respect human rights through our website, Sustainability Report andother communication channels.
* The term “all executives and employees” includes employees across all employment forms, including contract employees, fixed-term employees, part-time employees, inaddition to full-time employees.

Established July 1, 202035

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Exercising Human Rights Due Diligence
We exercised human rights due diligence at the Company and its directly owned subsidiaries covering the period up to
March 31, 2021. As a result of this human rights due diligence, no human rights issues requiring correction were identified
in the Group's business activities.
Going forward, we will continue to exercise human rights due diligence to verify the status of the Group’s response
to human rights issues in its business activities and to confirm whether or not there are any issues, and report the results
to the Group SDGs Committee on an annual basis. The contents of the report to the Committee will be reported to theBoard of Directors of T&D Holdings as well as to the Group Compliance Committee. If human rights issues are identified
during human rights due diligence, we will take measures to resolve them.

[Human rights management system] (human rights due diligence)
T&D Holdings Board of Directors

Group SDGs Committee

Secretariat (HD Social Communication Department): reports results to the Committee*1

Sustainability and planning departments of each Group company: Direct the exercise of due diligence and tabulate results*2

Relevant departments at each Group company: Exercise due diligence*1 Due diligence results are also reported to the Group Compliance Committee*2 The results of each company’s due diligence are reported to the board of directors of each company as appropriate

Special sponsorship of the Nikkei Social Business Contest—Contributing to social business—
The T&D Insurance Group is a special sponsor of the Nikkei Social Business
Contest held by Nikkei Inc. The contest aims to promote the healthy growthand greater awareness of social business and to increase the number ofplayers who are willing to engage in it. Through our sponsorship of thiscontest, we hope to support the next generation of leaders who are willingto take on social issues and create value for society in order to contribute to
the development of a sustainable society together.
For more information on the Company’s initiatives, please see our website.
WEB https://www.td-holdings.co.jp/group/brand/index.html

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103-2

103-3

Promote Healthy and Abundant Lives for All People
With the main business of the T&D Insurance Group being the life insurance business, contributing topromote healthy and abundant lives for all people is one of our most basic responsibility to society.
We have positioned “Providing Better Products and Services” as the first principle of the T&D Insurance Group CSR Charter. The Group clearly states its commitment to fulfilling its responsibilities tosociety through the insurance business by offering well-suited, high-quality products and services
that meet customer needs. The provision of products and services that contribute to solving various
risks faced by our customers, which occur due to societal changes such as the acceleration of Japan’s
declining birthrate and aging population, is both the Group’s mission and an opportunity for growth.

Connected social issues and group initiatives to solve themSocial Issues

Primary Stakeholders

Initiatives

Customers, local communities

Provide insurance to support the preventionof dementia and insurance that covers a wide
range of conditions requiring long-term care

Help people maintain good health

Customers, investors,
local communities

Help spread and promote “Health and Productivity
Management” and enhance welfare systems
among SMEs
Invest in funds that support businesses that contribute to improving people’s health

Promote the use of insurance andfinancial services for all

Customers

Integrate internet-based insurance enrollment
with face-to-face customer services

Customers, local communities

Deliver asset formation products for seniors toenjoy their lives post retirement

Reduce economic andsocial risks in an aging society

Encourage all people to engage in socialand economic activities

PolicyResults for FY2020

Planned for FY2021

To contribute to the sustainable growth of society
and to the solution of social
issues through the insurance business by offeringhigh-quality, optimal products and services thatmeet customer needs• Provision of “Infectious disease plus hospitalization insurance (lump-sum paymenttype),”which covers COVID-19• Continue to provide products andservices that meet the needs ofsociety• Free provision of COVID-19 mutual aid insurance in collaboration with justInCase Co., Ltd.

•O
 ffer Cancer/Critical Illness Prevention
Insurance• Deployment of Taiyo’s GENKI Project• Offer “Hybrid Asset Life” singlepremium variable whole life insurance• Provision of KENCO SUPPORT PROGRAM(health and productivity management support)• Expansion of product lineups to meet diversifying customer needs, etc.

• Expand lineup of products offering
a full range of protection to meetthe needs of SME owners, modernize coverage, improve the flexibility and convenience of various
procedures, etc.

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1–1

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103-2

103-3

Initiatives by Taiyo Life

Taiyo Life’s vision is to situate itself as an insurance company that helps as many customers as possible live safe and prosperous lives by
delivering the best products and services to families in preparation for a society in which more and more people are living past the ageof 100—“the era of the 100-year life.” We are committed to offering high-quality products and services to further accelerate efforts tobuild the top brand in the senior market, helping more customers live healthier and longer lives, and providing our customers with peaceof mind throughout their entire lives. In FY2020, in order to pay out benefits in a quick, hassle-free way to customers affected by the
COVID-19 pandemic, we implemented a variety of support measures, such as ensuring that customers could still receive hospitalization
benefits even when, for example, they were missing certain required documents when claiming benefits, or when they could not be admitted due to circumstances at medical institutions. In addition, we continually strive to fulfill our social mission to provide peace of mind
by staying on top of changing customer needs in the midst of the coronavirus pandemic. To achieve this, we are thoroughly protecting
the health and safety of our employees, while at the same time employing new initiatives that will help us live with coronavirus, including
products, work style reform, and application procedures that can be done remotely.

Initiatives under Taiyo’s GENKI Project
Looking ahead to the full-blown arrival of the era of the 100-year life, Taiyo Life has beenpromoting Taiyo’s GENKI Project, an initiative that began in June 2016 to energize all of ouremployees, customers, and society. The aim is to address the social issue of longer, healthy
lifespans, that is, living a long, healthy life. As for specific approaches, we have been working
on introducing a system of employment that allows employees to work until the age of 70,
offering disease prevention services, and sponsoring dementia seminars throughout Japan.
These activities have been highly acclaimed by external institutions. For instance, Taiyo Lifehas earned the “White 500” health management excellence certification for five years runningunder the Certified Health and Productivity Management Organization Recognition Program
sponsored by the Ministry of Economy, Trade and Industry.

Product Development which Preempts the Changes of the Times
In September 2020, Taiyo Life newly launched our infectious disease plus hospitalization insurance (lump sum
payment type), which was developed as a way of giving our customers peace of mind and helping them live
healthier, longer lives by taking the lead in providing life insurance with generous coverage for hospitalization
due to COVID-19 infection during the pandemic. This product can also support people’s daily lives in terms of
responding to the impact of medical costs, as well as other expenses and reductions in income following hospitalization, which are a concern for customers. It was well-received by many of our customers, with over 10,000
new policies sold within only 13 days after launch. Moreover, in November 2020 we began offering relaxed underwriting-type insurance, so even those worried about their health status, such as persons with chronic diseaseor a pre-existing medical history, are now able to enroll with a simple declaration. This allowed us to better meetthe diverse needs of a wide range of customers—both young and old—and had a huge
impact on our business, with over 100,000 policies sold in April 2021.
In addition, in October 2018, we launched Himawari Dementia Prevention
Insurance, an insurance industry first that takes into account the risks posed by theera of the 100-year life. This product does not only cover customers in the case thatthey develop dementia, but helps customers prevent the onset of dementia from theprevention stage. In November 2020, we raised the limit on the insurance claim paidout for dementia diagnosis, which allowed us to meet our customers’ diverse needs
even more than ever. At the end of June 2021, total sales of our series of dementia-related products exceeded 700,000 policies*, which shows that these products
are well-received by many people, particularly by our senior customers.
* Total combined sales of Himawari Dementia Treatment Insurance, dementia treatment insurance, Himawari
Dementia Prevention Insurance, and increasing dementia treatment whole life insurance.

Furthermore, in June 2021, we launched our cancer and critical illness prevention
insurance, the second in our series of prevention insurance plans following Himawari
Dementia Prevention Insurance. Customers enrolled in this policy are guaranteed
coverage of up to 20 million yen for certain conditions due to 19 diseases, including
cancer, acute myocardial infarction, strokes, and diabetes. The policy is meant to help
cover the early treatment of diseases, and benefits can be paid out not only whena cancer diagnosis has been confirmed, but also for acute myocardial infarction or38

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strokes in cases where certain conditions continue for 60 days or more, as well as in cases requiring undergoing surgery. In addition,by adding special survival benefit provisions, customers can receive “preventive benefits” every two years starting one year after thepolicy begins. These preventive benefits can also be used to take advantage of disease prevention services, etc., recommended by ourcompany. By encouraging customers to make use of these disease prevention services, leading to the prevention and detection of cancer
and other critical illnesses at an early stage, we can help customers live longer, healthier lives. These products were well received by awide range of customers of all ages, including the carer generation, with over 10,000 policies sold in less than a month after the productwent on sale.
As a financial institution agent, we launched My Kaigo Best Plus as a successor to our basic policy My Kaigo Best in April 2020. In
addition to the coverage guaranteed by My Kaigo Best, customers will be paid insurance claims for a dementia diagnosis if they are everdiagnosed by a doctor with certain forms of dementia, and whole life dementia treatment benefits if conditions continue for 180 days
due to certain forms of dementia.
As for the corporate insurance sector, in April 2020 we began selling benefit riders that can be added to our group life nursing-careinsurance, namely, the three major diseases benefit rider and disability income benefit rider. By introducing these riders, we have beenable to meet the needs of individuals belonging to companies and organizations, along with their spouses, who wish to prepare financiallyfor balancing medical treatments with work. By combining it with the existing life nursing-care insurance rider (for parents), customers
can now arrange for coverage for parents requiring long-term care, the three major diseases, and loss of income with one product.

Delivering Peace of Mind to Families
As a response to the COVID-19 pandemic, Taiyo Life offered an extension of up to six months for the grace period for payment of premiums and the period for policy renewal procedures, and applied special interest rates (interest reduction and exemption) to new policyholder loans. In addition, we have worked to improve customers’ convenience through simple treatment of claims and benefits, along withspecial treatment when receiving care outside of a hospital that would ordinarily require hospitalization. By doing so, customers affectedby the COVID-19 pandemic will have peace of mind when continuing their policies and claiming benefits.
In addition, we are continuously working on various reforms and improvements in order to deliver trustworthy and reliable services
to customers over the long term, from enrollment and contract period, up to until a policy pays out. We proactively recommend the family members of a senior customer to be present when he or she concludes a contract to prevent misunderstanding. Also, our in-housesales representatives make use of the video phone function of our Taiyo Life Concierge for mobile devices to contact customers directly
and reconfirm the intention of the contract, application details, and more through our support desk, which offers ease-of-mind to oursenior customers. We have also introduced the Family Registration Program, which allows the prior registration of contact informationof customers’ family members as preparation in case it ever becomes difficult to communicate with the policyholder due to the onset ofdementia or hospitalization.
We are also implementing our Senior Visit Service, which involves visiting senior customers at least
one a year during the enrollment period to confirm contract details and encourage customers to claim theirbenefits. Using our dedicated customer service Web portal Taiyo Life My Page, customers can complete
procedures from anywhere without having to visit a Taiyo Life Office, including address changes and otherinsurance maintenance procedures, use of loans and other funds, hospitalization benefits claim procedures, and more. It is also possible to complete various procedures and benefit payments online.
When a payment is to be made, office workers with specialized knowledge visit customers and/or
their families directly to help them with the procedures for claiming benefits as part of our Kaketsuke-Tai
Service. This service, which makes use of the Taiyo Life Concierge to reduce paper consumption whenclaiming benefits, allows benefit payments to be made in as little as ten minutes. In addition, in October
2020, claims for death benefits went paperless, and we aim to expand this service by digitalizing all major
procedures for benefits and claims.

Prevention initiatives
Our goal at Taiyo Life is to help create a bright society with longevity where everyone can live long, healthy
lives. Toward this goal, we are working on initiatives that not only support customers in the detection andimprovement of critical illnesses at an early stage, but also help prevent disease, as well as improve our customers’ health. For customers eligible for payment of preventive benefits through our Himawari Dementia
Prevention Insurance, we recommend dementia prevention services such as MCI Screening, which determines the risk of mild cognitive impairment (MCI) through a simple blood test, and the Kurort Health
Walking Experience Tour, which can prevent disease and improve health, among others. In March 2021,
we entered into a business agreement with Ajinomoto, H.U. Frontier, and Selmesta (now H.U.Wellness),and began offering Aminoindex® Risk Screening, which can simultaneously evaluate the possibility of anindividual currently having cancer and whether they are at risk of future strokes, myocardial infarction, or diabetes. Moreover, we also began offering the Taiyo Life Health Promotion App in March 2021. Our Dementia
Prevention App, which was previously provided as an extra service for Himawari Dementia Prevention
Insurance policyholders, will be updated as a freely available app for anyone to use, and new functions, such

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as a function to measure sleeping conditions, as well as free health consultations, will be added. In this way, we will be able to help evenmore customers prevent illness and improve their health.

New Sales Channel: Sma-Hoken
In October 2019, we launched Sma-Hoken, which enables customers to apply for insurance online.
Sma-Hoken, our completely new Internet-based insurance system with extensive after-sales follow-up, combines a convenient online
insurance quoting and application process that can be carried out any place and time a customer desires, with attentive service from ourpersonable staff.
Benefits of Sma-Hoken (1)Integration of Internet-based insurance application with full-service
human support
We have prepared a dedicated website with an easy-to-understand interface tomake the online application process easy even for first-time users. In the unlikely event the customer is unsure how to complete the process online, a call to the Sma-Hoken hotline connects to a live operator who can provide assistance while viewing the same screen as thecustomer. In terms of services, we also offer Sma-Hoken customers the full range of services provided by our Kaketsuke-Tai Service, which
until now was offered mainly to senior customers.
Benefits of Sma-Hoken (2)A lineup of products to meet a wide range of needs“Sma-Hoken” is available starting at a monthly premium of 1,000 yen. We offer a lineup of products that are easy to enroll in even for
those who are new to insurance or who are considering enhancing their current coverage. In September 2020, we began selling theinfectious disease plus hospitalization insurance (lump sum payment type) and advanced medical care insurance, and even customers
concerned about their health status could begin applying for the infectious disease plus hospitalization insurance (lump sum paymenttype) in November 2020. We are aiming to enhance our lineup of suitable products; in March 2021, we began selling a medical care andwhole life insurance plan and raised the maximum coverage amount of dementia treatment insurance benefits.

Introduction of online registration (non-face-to-face solicitation)
In January 2021, we introduced Remote Application, which combines Sma-Hoken with consultations with sales representatives andsupport with application procedures, becoming the first* major insurance company in Japan to digitalize everything from application
procedures to benefits payment. Through this Remote Application service customers requiring remote services due to the impact of the
COVID-19 pandemic can now easily complete enrollment from their own smartphones or computers.
* With respect to the sales representative channels of the nine domestic insurance companies with company names written in Japanese characters, we were the first to realize theremote completion of application and benefit payment procedures using digital technologies.(Research valid as of 8 December 2020)

Development of the Life Insurance Business in Myanmar
Taiyo Life is expanding its overseas business in Myanmar, which is attracting attention for its rapid economic development. In August
2019, we invested in Capital Life Insurance Limited, an insurance company in Myanmar, and made it an affiliated company. On November
28, 2019, the joint venture acquired final approval from the government of Myanmar and commenced operations under its new name,
Capital Taiyo Life Insurance Limited (CTL). Going forward, we will continue to leverage the expertise we have cultivated in the Japaneselife insurance business to expand our business in Myanmar through CTL and contribute to the further development of the Myanmar
insurance industry.

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Initiatives by Daido Life

Daido Life is a life insurance company that specializes in the SME market. It provides products and services that take into accountchanges in the environment surrounding SMEs, and has signed up some 370,000 corporate clients.
Initiatives to Disseminate Health-oriented Management®*—DAIDO KENCO ACTION
Daido Life assists SMEs in implementing health-oriented management®. The aims are to contribute to creating a society where SMEs and their employees can actively perform and to solving issues faced by Japan’s
rapidly aging society.
*	Health-oriented management® means that companies consider health management of employees from a business-management perspective and strategically practice management and the establishment of employees’ health.
	Health-oriented management® is a registered trademark of the Workshop for the Management of Health on Company and Employee, a specified non-profit
organization.

—Collaboration with Companies and Organizations Promoting the Dissemination of Health-oriented Management®—
Daido Life will endeavor to establish a system throughSharing the declaration of health andproductivity management within the Company
which health-oriented management® can become prevalentand take root in as many SMEs as possible all across Japan.
Introduction of health01
checkup institution and
Declaration of health
For that, it will widen the circle of collaboration with comreservation by proxy
and productivity
management
History management of
Acquiring points throughpanies and organizations that assist SMEs in implementing
02
health checkup results
health actions
Promoting05
health-oriented management®.
Stress check
Health-related products
and services at
a preferential price

Incentive

healthcheckup—Providing the Daido Life KENCO SUPPORT PROGRAM, a
Tool for Implementing Health-oriented Management®—
04
03
Health promoted
Onset
Automatic recording
Daido Life has developed and provides the Daido Lifesolutionsrisk analysis
Kenco Mirai Yohoand visualization ofdaily activity volume
KENCO SUPPORT PROGRAM in cooperation with a mulDietary management andAdministrator menu
advice from nutritionist
titude of companies, in particular Value HR Co., Ltd., thatpossess specialized technology and know-how.
The Daido Life KENCO SUPPORT PROGRAM is a comprehensive program targeted at SMEs. This program consistently supports
implementation of the PDCA cycle necessary for health-oriented management®. This includes assistance in encouraging employees
to go through medical examinations for companies, risk analysis of development of lifestyle disease, etc. for individual SME owners
and employees, and provision of health promotion solutions and incentives that promote continuous health improvement efforts.
Kaigo Relief
As a result of the aging society, there has been an increase in the number of people requiring long-term care in the public longterm care insurance system, as well as the number of elderly people with dementia. Accordingly, the needs for nursing-carebenefits of SME owners and individual business owners are also on the rise. To satisfy these needs, in April of 2019, Daido Life
launched Kaigo Relief [non-participating whole life nursing care insurance (no surrender value type during premium payment
period)] to provide wide coverage when long-term care is required, such as for dementia. This product ensures substantial coverage for times when long-term care is required, while realizing inexpensive insurance premiums by eliminating the surrender
value during the premium payment period. By offering this product and the ancillary Kaigo Concierge service integrally, Daido
Life is providing comprehensive support to relieve the financial, as well as psychological, burdens associated with nursing care.

Comprehensive support through Kaigo Relief
Product

Kaigo Relief(For financial burdens)Service+ Kaigo Concierge
Kaigo Concierge(For psychological burdens)Lifelong nursing-care benefits with inexpensive insurance premiums

Care manager referrals

Coverage from the public long-term care insurance system “Care Level 1”

Nursing-care facility referrals and visit arrangements

High level of benefits of up to 100 million yen

P rovision of dementia-related services and information through
Dementia Plus + ultiple persons can be designated as beneficiaries, in accordanceMwith needs

Proxy applications for certification for long-term care certifications, etc.

* In addition to Kaigo Relief , the company also provides Shunyu Relief [non-participating nursing care income protection insurance(no surrender value type)] to protect against loss of income when long-term care is required.

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L-type , J-type , and T-type Products
How it works (conceptual image)With the arrival of the era of the 100-year life and facing a serious
lack of successors, a phenomenon including the aging of SME
Made-to-order
Made-to-order
Adjusted by surrenderinsurance amountbalance between
value suppression rate
owners and the lengthening of their working careers is advancing.
premium andsurrender value
Meanwhile, structural changes in society and industry are presentDeath or severe
disability claiming SMEs with more diverse management challenges and risks.
These changes in the environment have brought about changes
in the insurance needs of SMEs, in particular a growing need for
Surrender value
products with coverage that can be flexibly configured according▲▲
Enrollment
Insurance period
to business conditions and other factors. In response to this situexpires
Made-to-order insurance period
ation, we launched the industry’s first “made-to-order” insurance
products to provide SME owners with long-term coverage against death, critical illness (cancer, acute myocardial infarction, andstrokes), and severe physical disability. Specifically, in July 2019, we began offering L-type [non-participating age-specific maturity
term life insurance (specified surrender value suppression rate type)], J-type [non-participating critical illness insurance (specified surrender value suppression rate type)], and T-type [non-participating disability protection insurance [physical disability certificate-linked/specified surrender value suppression rate type)]. These products cater to the diverse needs of customers by allowing
them to freely configure not only the insurance amount and period, but even the balance between premium and surrender value.
Expansion of the Policy Conversion System (Switch)
To respond more flexibly to changes in needs after
Example of switch (conversion) from “long-term coverage-type” to“renewal-type”
enrollment, in April 2020 we introduced the Policy
Conversion System (Switch) that allows products inLong-term coverage-type (with surrender value)
Renewal-type
the same benefit field with different coverage periods
Renew every
to be switched (converted) between one another. The
Switch5 or 10 years
Insurance claim
Insurance claim Renew(until age 80)
system applies not only to the traditional death benSurrender value
efit, but also to disability benefit (J-type and T-type)
Receive surrender value
insurance. This has further improved the flexibility ofpolicies, allowing them to be revised in response to changes in business conditions and other factors.
Launch of cancer stage limited J-type productIn December 2020, in order to ensure critical illness protection for more customers while keeping pace with medical technology
advances and other changes, we launched our stage-limited cancer J-type product [non-participating critical illness insurance(stage III, IV cancer protection only, no surrender value type)], which focus on serious cancers (equivalent to stage III and IV) thathave a significant impact on the running of a business.

Launch of HALFIT service
Since April 2020, free access to up to three sessions of the Neuro HALFIT exercise program, which promotes the functional improvement of the nervous and muscular system using the wearable Hybrid Assistive Limb (HAL)®. of CYBERDYNE, Inc., has beenoffered. This service, delivered as an exclusive ancillary service for our nursing-care insurance products, is intended to help prevent
disease advancement and increase the independence of people who require relatively light levels of care while insuring themagainst financial risk in the event long-term care is needed.
About Neuro HALFIT

A look at the different types of HAL® programs

The Neuro HALFIT program uses the wearable
Hybrid Assistive Limb (HAL)® to activate the activity loop of your brain-nerve system by repeatedly performing actions synchronized with yourintentions, thereby inducing improvement inyour brain-nerve-musculoskeletal systems even
if you have difficulty moving your lower limbs
on your own.

(HAL lumbar type)(HAL lower limb type)(HAL single joint type)
Courtesy of CYBERDYNE, Inc. All rights reserved.

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Safety Confirmation System
In order to respond to the wishes of SME owners to confirm the safety status of employees accurately and promptly in theevent of large-scale disasters, in April 2019, Daido Life introduced a safety confirmation system. This service is equipped withall of the functions necessary for safety confirmations at SMEs in the event of a disaster, and is provided free of charge topolicyholders who meet the requirements prescribed by Daido Life.

Disaster occurrence1

Automatictransmission function

When an earthquake of intensity 5+ on theJapanese intensity scale occurs, or whena special warning is issued for heavy rain,etc., a safety confirmation message issent out to employees automatically.

(Employees)(Managers)

Safety status response

Response result confirmation

2

Automatic
tracking function

Automatic repeated transmissions when
there is no reply from an employee until
they can be contacted.

3

Automatic
tabulation function

An employee safety status list can beviewed along with automatically tabulated
results, enabling accurate secondarycommunications and instructions.

Expansion of Services for Foreign Employees
Insurance needs are expected to increase due to further increases in the number of foreign workers. However, life insurance
policies could not previously be purchased in cases where the application details could not be understood in Japanese. In orderto respond to the wishes of SME owners to care for all employees regardless of nationality, from June 2019, Daido Life has implemented services for foreign employees (insured members) who
Explanatory documents, application form samples
and explanatory videos in foreign languages
have difficulty understanding Japanese.
By developing frameworks such as the preparation of explanatory materials in foreign languages and establishing multilingual contact
points with interpreters, Daido Life has enabled applications from foreign employees for life insurance as welfare benefits.

Company sales
representatives

Foreign customers(Insured persons)Target languages
Eight languages: Chinese, Vietnamese, Filipino, Portuguese, Nepalese,
Korean, English, and Spanish(Languages of the top eight countries, in terms of the number of foreign
workers)

Interpretation telephone desk

Procedures that Connect
In order to improve the convenience of customer procedures and adapt to the “new normal” of coexistence with the coronavirus, we aretrying to make all insurance procedures non-face-to-face as part of our Procedures that Connect initiative, so that customers can choose
between "the security of face-to-face" and “the convenience of non-face-to-face" according to their needs. When purchasing an insurance
policy, after deciding on coverage, customers can complete the enrollment procedure on their smartphone or PC at home or at work attheir own leisure without any restrictions on time or place.

Illustration of Procedures that Connect

Anytime, anywhere
Customer completes the procedure on their smartphone without meeting with asales representative

CustomerInquiries/support

Non-face-to-face

Proceduresthat Connect

Support desk

Advantages of remote procedures

Sales representative

Easy and convenient
Remote procedures such as verifying identity and explaining important matters canbe done on a smartphone by taking a photo or watching a video
Procedure support by the operator
If the customer has any questions, the operator can facilitate progress by sharing
the screen and demonstrating how to enter the information

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Initiatives by T&D Financial Life

Development of Products in Response to Changes in the Social and Economic Environment
To respond to diversifying customer needs, T&D Financial Life has bolstered its
product lineup and provides insurance products in a timely manner through banks
and other financial institutions, as well as insurance shops where customers candrop in for consultations. For senior customers, it provides asset formation products
for supporting a comfortable post-retirement life through the preparation of post-retirement expenditures and the need for protection of bereaved family members.
For the working and childrearing generation, it offers protection-oriented products
at an affordable price. In April 2020, we launched Kakei Ni Yasashii Shushin Iryo,
which is a medical insurance product updated from a prior product that enables
customers to fully prepare necessary insurance coverage for everything from oneday hospitalization to long-term hospitalization, lifestyle diseases, and advanced
medical care. Moreover, in September 2020, we began offering Shogai Premium
Japan 5. This product is the latest renewal of our Shogai Premium Japan series of
yen-denominated whole life insurance, and enables customers to leave money for
their family members while receiving money to use for themselves. In response
to a rising awareness of nursing care and dementia coverage, we have newly established a Nursing Care and Dementia Prepayment Rider, which, in addition to theprior Nursing Care and Dementia Annuity Payment Transfer Rider, offers advancepayment of death benefits in the case that “Care Level 4” or above of the public long-term care insurance system has been authorized or a diagnosis of certain types of dementia has been confirmed. In addition to eliminating any initial fees previously borneby customers, we have made reforms such as introducing a discount system for high costs.
Furthermore, in February 2021, we launched Hataraku Anata Ni Yasashii Hoken 2, a product that eliminates the death benefit
and provides protection against loss of income and increase in expenses due to illness and injury. Customers may choose fromtwo courses: the “annuity course,” which provides for a continuous loss of income due to the three major diseases or injury,
and the “lump-sum payment course,” which provides for a temporary increase in expenses for treatment costs, etc., due to thethree major diseases.
We launched Hybrid Asset Life in June 2021. This product is yen-denominated, single-premium variable whole life insurance that
supports asset formation through self-provision in the era of the 100-year life by combining an investment trust with life insurance. We
developed the product to help individuals enjoy life to the fullest by drawing down assets in a planned manner and to prepare them andtheir families for nursing care, dementia and inheritance while continuing to invest, with a focus on long-term diversified investment.
Initiatives for Improvement in Response to Customer Feedback
T&D Financial Life is working to make administration and system improvements that contribute to customer-oriented business
operations. Such measures include collecting customer feedback, conducting interviews with sales agents, and studying themarket environment, including various financial products, legal aspects, and industry trends. In fiscal 2020, we introduced an
automatic assessment system for paperless application procedures, enabling customers to confirm whether they are eligible
to enroll in an insurance policy on the spot. Furthermore, the company also launched a service in which a text message is sent
to a customer’s registered cell phone number when, for example, correspondence sent from us has been returned due to theaddressee being unknown.
Initiatives for Improving Customer Service Quality
T&D Financial Life is pushing ahead with various efforts to further

Family Registration Program Outline

improve customer satisfaction. In April 2020, we introduced Kaigo
Concierge, a nursing care and dementia support service provided
by internet infinity INC. for customers with insurance policies thatcover nursing care and dementia. The service provides nursing careand dementia support services that are optimally tailored to a customer’s individual circumstances, including referrals to care managers and dementia prevention tools. In addition, in order to improve
services for elderly customers and customers with disabilities, weestablished the new Family Registration Program, a system thatallows a family member registered by a customer in advance to act
as a proxy to verify policy details, obtain various claim forms, andcarry out certain claim procedures on the customer’s behalf.
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I would like my family member toalso receive responses concerning
my policy details.

I would like my family member tobe able to obtain application forms
on my behalf.

I would like my family member tobe contacted in the case that I am
difficult to reach, such as during adisaster, etc.

Things that are possible under the Family Registration Program

Confirming policy details

Obtaining application forms

Being contacted on a policyholder’s behalf in the case that it isdifficult to reach the policyholder

Procedures for changing address,
insurance claims in which thepolicyholder is the beneficiary,cancellations, etc.

* Depending upon the policy details, it may not
be possible to carry out these procedures.

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Initiatives by T&D Asset Management

Contributing to the Promotion of a Healthy Society through Investment
To ensure the long-term growth of the assets entrusted to the company by our customers, the active management of Japaneseequities by T&D Asset Management emphasizes the analysis of not just financial information but also non-financial informationsuch as ESG (environmental, social and governance) factors. In particular, we are contributing to solving social issues, such as
maintaining health and supporting the elderly, through active investment (supply of risk money) in companies that contribute toimproving people’s health. Examples include our “Japanese Equity ESG Research Fund” that makes selective investments incompanies that excel from an ESG viewpoint, and our “Health-related Social Contribution Fund” that invests in health-related andhealth-management stocks.

1–5

Initiatives with Pet & Family Insurance

Insurance Protection for Precious Family Members
With the increased demand for pets due to the COVID-19 pandemic, more pet owners recognize their pets as family members, therefore interest in pet healthcare and its associatedcosts is growing. With our Pet & Family Insurance, we havetaken these circumstances into consideration and have worked
to address needs concerning pet healthcare costs. We provide Genki Number One, Genki Number One Slim, and Genki
Number One Best, products that compensate for a portion of
the cost of treatments for pets at veterinary clinics due to illness
or injury. These products help to ensure that pet owners canreceive veterinary treatment for their pets with peace of mind.
Providing Information on Pets’ Lives
Pet & Family Insurance has posted on its website information for enriching pets’ lives. The website also features special contents
titled “Pet News Storage” that introduce questions closely related to pets’ lives in an easily understandable fashion. It is regularly
conveying information on various subjects related to pets in an attempt to deepen understanding of pets, which are precious
family members.

1–6

Best Senior Service

103-2

103-3

Based on the social situation that the aging of society is progressing, we are carrying out Group-wide efforts to improve the convenienceand satisfaction of our elderly customers. At Taiyo Life and Daido Life, this initiative was named the Best Senior Service, and through thisinitiative, we are developing a variety of service improvements.
Major Initiatives byTaiyo Life
Home Visit Service
Taiyo Life launched the Senior Anshin Support Activities in July 2014 as a visiting service activity designed for customers who are seniors.
Its staff visit them at least once a year. Confirmation of insurance contract coverage, and examination of whether claims have been fully
submitted, are carried out in a careful and easily understandable manner. This service enables each of the senior customers to live withpeace of mind.
Initiatives for Securing Peace of Mind at the Time of Contract Conclusion and during the Insurance Period
Taiyo Life proactively recommends the family members of a senior customer to be present when he or she enters into a contract. In addition, the person in charge at the headquarters reconfirms the intention of the contract and declaration (for some products) by using thevideophone function of the terminal that each sales representative carries. Furthermore, Taiyo Life has adopted the Family Registration
Program in the event contact with policyholders become impossible when large-scale disasters occur. The family members whose contact information has been registered are entitled, on behalf of the policyholder, to inquire about coverage and the procedure for claiming
benefits, and depending upon the circumstances of the policyholder, may also obtain application forms (some forms excluded).
Kaketsuke-Tai Service
The Kaketsuke-Tai Service is provided by Taiyo Life’s administrative personnel with specialized knowledge. They visit customers andtheir families to lighten the burdens of dealing with benefits claims and to provide meticulous support unique to administrative personnel. This service is very popular among many customers including senior customers. More than 124,000 customers had utilized
this service (as of the end of March 2021) since its launch in April 2016. In addition, the company introduced a paperless procedure toclaim benefits, making it possible for customers to check the content of their claims and complete the procedure by merely signingon the Taiyo Life Concierge.

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Major Initiatives by Daido Life
Initiatives for Enhancing Sense of Ease during and after Enrollment<Recommendation on Presence of Family Members>
Daido Life recommends that family members of customers 70 years of age or older be present during the enrollment process.
This is to ensure a full understanding of the content of insurance policies that customers are going to enroll in with a senseof ease. The company explains the content of the insurance coverage and important items that need extra attention in detailboth to the customers and their families. It also carries forward the procedures by ensuring that the content is in line with thecustomers’ intentions.
<Designated Proxy Application Rider>
The Designated Proxy Application Rider is introduced to customers for insurance policies in which the insured is the beneficiaryof insurance claims, etc. In cases where it becomes difficult for the insured to file an insurance claim due to sickness, accidents,
or other reasons, a representative who is designated in advance (a preregistered proxy) can file a claim.
<Family Registration Program>
We propose that our individual customers register their family members in the Family Registration Program, under which a family
member registered in advance may make an inquiry about policy details on behalf of the policyholder. We also send out a copy of
the Daido Life Guide to the registered family members if the policyholders request it.
Initiatives for Receiving Insurance Claims, etc. Reliably and Promptly
Daido Life regularly checks if there are no unclaimed insurance claims, etc. for individual customers who are over a certain age
so they can receive insurance claims reliably and promptly.
Improvement of Treatment of Customers and Hospitality
In order to provide courteous and careful service in response to customers’ situations, we formulated and use a service manual
taking into account the general characteristics of our senior customers, such as changes in physical abilities and psychologicalaspects, as well as visual aides. Through these means, we are striving to provide an environment in which our customers cancomplete necessary procedures with peace of mind.
Major Initiatives by T&D Financial Life
Measures at the Time of Enrollment
During the enrollment process for customers who are 70 years of age or older, the company takes measures to confirm they
have the intention of buying the insurance policy by recommending that a family member accompanies the customer, providing
sufficient time for the customer to fully consider the features of a product, and similar. In addition, the company has employed
universal color designs in the solicitation materials for customers with partial color-blindness, and universal design fonts that reduce reading mistakes. This helps customers to accurately understand the contents, systems, and important matters regarding
recommended products. The Shogai Premium World 5 and Shogai Premium Japan 5 pamphlets have earned the “easy to lookat” design certification from the UCDA. Furthermore, the company has prepared auxiliary solicitation materials that complement
our pamphlets to clearly describe the risks and actual yields of foreign currency-linked single-premium whole life insurance withforeign exchange risks, as well as videos to introduce and explain our single-premium products, which are posted on our website.
Measures during Enrollment
We established the new Family Registration Program, which is a system that enables family members registered in advance bya policyholder (registered family) to act as a proxy to verify policy details, obtain various claim forms, and carry out certain claim
procedures on behalf of the policyholder. In addition, the company implements its policy inspection system over the telephone
for policyholders of a certain age and older to verify changes in contact information and identify unnoticed cases of eligibility forbenefit claims, among other matters. Furthermore, the company does not use automatic voice guidance at its call center, whichis the point of contact with customers. Instead, customers are directly connected with an operator. This allows customers tocontact us with peace of mind.
Measures during Procedures
T&D Financial Life is working to improve convenience for customers to enable them to easily go through the procedures. It
revises claim documents and uses colors for them as well as omitting the submission of an insurance certificate and a seal
registration certificate.

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2. Providing Wholehearted Reassurance
2–1

102-43

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

2–2

Establishment of Solicitation Policies

The Group’s three life insurance companies have established individual solicitation policies for offering life insurance and otherproducts. Under these policies, each Group company strives to develop and offer applicable products that meet customers’
needs and circumstances.
Solicitation Policy (In the Case of Taiyo Life)The following are Taiyo Life’s basic solicitation policies for offering financial products, including life insurance, to customers. We always endeavor to develop and offer products in a proper and appropriate manner in due consideration of customers’ desires, circumstances and privacy in order to provide customers with proper services through consultation.
• We will comply with the applicable laws, rules and regulations
in solicitation activities.
• We will endeavor to carry out adequate solicitation activities inconsideration of the customer’s circumstances.
• We will give due consideration to the time and the place forsolicitation activities.
• We will explain the important issues properly.

2–3• We will make efforts to enhance employee education and ourtraining program.
• We will safeguard customer information strictly in confidence.
• We will make continuous efforts to establish an internal structure ensuring adequate solicitation activities.

Efforts to Offer Customer-oriented Services

From contract procedures and after-sales service to payment of insurance claims and benefits, the three life insurance companies
endeavor to provide services with an emphasis on understandability as an approach to earn trust from customers.
Awards for Customer Service
Taiyo Life

Received the 2020 UCDA “Another Voice Award”
At the 2020 UCDA Awards, held by the Universal Communication Design Association (UCDA) to honor superior communication design, the company received three awards, including the highest award.
Award2020 UCDA Award

Explanation
Award equivalent to the highest award

Another Voice Award
Awarded for something highly evaluated byconsumers
Another Voice Award

What was Subject to Evaluation• B enefit claim procedure screen on
Taiyo Life Concierge mobile terminal• Claim form for requesting insurance
claims and benefits•P reventive benefits flyers•P revent the Onset of Dementia: MCI
Screening (video)

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Daido Life
Received the Highest Rank of “3 Stars” in HDI-Japan’s “Quality Rating” for Multiple Points of Contact at One Time
Daido Life’s call center (point of contact for customers) and support desk (point of contact for sales agents) both received thehighest rank of “3 Stars” in HDI-Japan’s 2020 “Quality Rating,” scoring full marks in all five quality evaluation categories. Thisis the first time in Japan for multiple points of contact at one company to receive a “3 Stars” ranking with full marks at thesame time.
Received the “BCP Award” at the 2020 Contact Center Awards
The company’s integrated advancement of workplace environments, working systems, and incoming call control during the
COVID-19 pandemic greatly contributed to increasing customer satisfaction and improving the engagement of incoming callers. These efforts were cumulatively recognized as a textbook example of stable, reliable call center operation, with the company receiving the “BCP Award.”
Received the 2020 UCDA “Another Voice Award,” “Easy-to-Understand Information Award,” and “Special Award”
Daido Life has been working on improvements based on customer feedback and the opinions of third parties from externalorganizations in order to provide easy-to-understand pamphlets and application forms. As a result, the company received thefollowing three awards at the 2020 UCDA Awards.
Award

Explanation

What was Subject to Evaluation

Another Voice Award

Awarded for something highly evaluated by consumers

Claim form for requesting insurance
claims and benefits

Easy-to-Understand Information Award

Awarded for something highly evaluated by specialists in design, information, etc.

Medical insurance pamphlets(for corporations)

Special Award

Awarded for devising a unique approach to something, such as an original perspective

Medical insurance pamphlets(for individuals)

Received Japan Financial Innovation Award 2021 Honorary Mention
The company received the Japan Financial Innovation Award 2021 Honorary Mention for its initiative to freely provide COVID-19
Mutual Aid Insurance (in collaboration with justInCase Inc.), which brings peace of mind to everyone at SMEs as a part of
Daido Life’s social contributions. This was awarded from the perspective of its potential for innovation, growth, and financial
industry reform.
Initiatives by the Three Life Insurance Companies
At the Time of Making a Contract
We work to enhance the understandability of various documents regarding policy procedures.
[Major Documents (including Electronic Forms)]• Clearly worded “Product Pamphlet”• “Contract Summary” and “Proposals” describing insurance plans tailored to individual needs of customers• “Warning Information (notifications of important matters when making a contract)” for calling the customer’s attention toparticularly important points• “Policy Leaflet and Policy Provisions” describing the various procedures when making a contract, and the structure of the product• “Understanding/Confirmation of Intent” as a final step to ensure that the customer’s needs are met by the insurance product offered• “Overview Materials” which provide a concise overview of the product as well as information about fees and other matters

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After-sales Services
We work to ensure customer satisfaction by providing various kinds of information after contracts.
We also work to enhance our services so that the policyholders can make insurance and benefit claims more easily.
[Major Information Provision Services]• Notification of policy details (from the three life insurance companies)• Distribution of service guidebooks (Taiyo Life) (T&D Financial Life)• Distribution of Security Guide (Taiyo Life)• Notification of account transfer payment (from the three life insurance companies)• Accounting method guidance service for corporate clients (Daido Life)• Confirming policy details by visiting customers (Taiyo Life) (Daido Life)[Examples of Measures to Facilitate Making Insurance and Benefit Claims]• Handling of Direct Payment Service to Medical Institutions of advanced medical care benefits (Daido Life) (T&D Financial Life)* Through this service, the insurance company pays benefits directly to medical institutions for expensive and advanced medical treatment such as proton-beam therapy andheavy-particle radiotherapy to ease the temporary burden on its customers. These benefits help customers receive treatment with ease of mind.

• Distribution of booklets and leaflets that comprehensively describe insurance and benefit claims procedures as well as payable caseexamples (Taiyo Life) (Daido Life)• Reimbursement of expenses for obtaining a medical certificate in the event that the related insurance claim is completely rejected
despite that insurance and benefit claims (from the three life insurance companies)• If a claim satisfies certain requirements, submission of medical certificate can be omitted or a copy of a medical certificate can be
accepted (from the three life insurance companies)• Improvement of explanation and advice at Customer Service Center (call center) and branch offices (from the three life insurance companies)• Introduction of designated proxy application option to allow the pre-registered proxy to file insurance claims in the event that thepolicyholder is unable to file the claim for a certain reason (from the three life insurance companies)• Periodic follow-up of customers who take a long time to submit claim documents despite having declared an intention to makeinsurance claims (from the three life insurance companies)• Services include confirmation of customer intent to file a claim, after which office staff may fill out claim forms on behalf ofthe customer, as well as obtaining medical certificates needed for benefit claims (from the three life insurance companies)• Made it possible to designate a signing proxy other than a family member in the event that a customer has physical difficultyin signing, filling out or affixing their seal to claim forms due to illness or suchlike (from the three life insurance companies)

2–4

Working Toward Better After-sales Service

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

2–5

Other Services

As shown below, the Group’s three life insurance companies offer diverse services to meet the requests of customers.
T&D Club Off
T&D Club Off offers a range of services to the policyholders of the three life insurance companies and Pet & Family Insurance
that are useful in daily life and enhancing free time activities. T&D Club Off members can take advantage of a varied selection ofover 200,000 facilities and services, such as hotels inside and outside Japan, leisure facilities, sports clubs, medical check-ups,
and car rental, at special discount rates.

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Example• Domestic hotels, Japanese inns about 22,000 locations• Amusement and theme parks/ About 1,000 locations• Housework services, pet sitting, and phone consultations on health and legal issue* For more details about these services, please visit each company’s website.

Other Services
We offer a wide range of services. Our private nursing-home referral service (from Taiyo Life) introduces over 320 facilities nationwide in collaboration with other industries. The “best doctors service” (from Taiyo Life) introduces good and reliable doctors andhospitals for when policyholders have serious illnesses. The adult guardianship system introduction service (from Taiyo Life) (fromT&D Financial Life) introduces experts in the adult guardianship system that supports people whose judgment has deteriorated.
The M3 Patient Support Program (also from T&D Financial Life) is a health consultation and support service.
Customer Service Center Open for Inquiries on Saturdays and Sundays
In order to provide services to customers who are busy on weekdays but would like to use such services, Taiyo Life’s Customer
Service Center, or call center, is open and handles inquiries on Saturdays and Sundays from 9:00 to 17:00 as well.
Services Useful for SMEs
Daido Life provides various services to help policyholders with business support and health support.
Examples of Services[Business Support]• Services that comprehensively support the practice of health-oriented management® at SMEs
• Services that provide the implementation of systems to accurately and promptly confirm the safety of employees in times of disaster• Specialist support for use of M&A by SMEs
• Services that calculate corporate value as a basis for judging the future direction of corporate management• Services to help customers select the best alternative electric power provider through competitive bidding on multiple companies• Services to meet the overseas expansion needs of SMEs
• Support for an employee stress check system, from initial preparation to post-deployment follow-up• Providing reports on management strategy, industry trends, and other useful business information• Providing a standard form of company regulations• Complimentary assessment for receiving public subsidies• Complimentary assessment of employment regulation• Providing information on public support[Health Support]• Nursing care professionals provide one-stop support in resolving a variety of concerns and problems regarding nursing care
• Services to help prevent disease advancement and increase the independence of people who require relatively light levels of care
• Health counseling and second opinion service• Health screening referral service* For more details, please contact the Customer Service Center of Daido Life.

Dedicated Pet Consultation Center “Wan Nyan”
We have established a pet consultation service that is only available to insurance policyholders and insured members (pet owners). The service handles inquiries on everyday issues that arise when owning a pet or requests for information. It is available 24
hours a day online. Advisors with specialized qualifications can respond to a variety of concerns.
Service on the Internet
The Group firms, including the three life insurance companies provide various kinds of information on their websites. As part ofour efforts to improve customers’ convenience, we also offer online services for payment procedures, inquiries and change ofregistered information. At Pet & Family Insurance, customers can also purchase pet insurance on the company’s website.

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Examples of Internet Services
Taiyo Life
• Inquiries about insurance policy details, Himawari Tsushin (general notice of policy terms), and life insurance premium deduction certificates (inquiries, downloads)• Claims for hospitalization benefits, etc., change of name and cancellation of foreign currency denominated products (handled
by financial institution agents)• Use and withdrawal of funds (loans to policyholders, accumulated dividends, various types of deferred funds, etc.)• Change of information related to contract, such as change of address, request for adding designated proxy application option,change of password• Request for application forms for change of account, change of first/family name, loan repayment• Reissue of insurance certificates, annuity payment certificates and deferred fund payment certificates
Daido Life
• Change in contract and insurance claim such as change of address, account, etc.
• Web-ATM for making loans to policyholders, withdrawal of accumulated dividends, etc.
• Inquiries about insurance policy details, inquiries about accounts for automatic withdrawal of insurance premiums, various
inquiries about guidance (guidance on insurance premiums accounting method, etc.)
T&D Financial Life
• Inquiries about summary and details of policies such as coverage details and change in accumulated funds• Change of information related to insurance contracts and claim procedures (change of address, reissue of certificates for life
insurance premium deduction and other matters)• Sending out various forms for procedures (transfer of ownership, change of first/family name, reissue of insurance policy, etc.)• Transfer of accumulated funds, set up transfer ratio in case of contracts with periodic increase of amount• Registration and changes to Family Registration Program
Pet & Family Insurance• Online application for Genki Number One Slim pet insurance• Inquiries on contents of insurance policies• Changes and procedures related to contracts (pet naming and correction, changes to address/telephone number, changing
first or last name of policyholder, changing credit card information, etc.)• Renewal procedures (reducing value of enrollment plan, changing number of insurance premium payments (changing between yearly and monthly payments), changing enrollment type (dog’s weight))* For more details, please contact the respective Customer Service Centers of the Group’s three life insurance companies.

2–6

In Order to Provide Better Services

The Group’s three life insurance companies are working to enhance the skills of their customer service staff based on a basic knowledge of life insurance, specialist knowledge and compliance essential to increase customer satisfaction. The three life insurance companies have diverse staff members such as sales representatives, customer service staff, agents and wholesalers who are engaged induties to provide the most suitable services to customers depending upon each individual business model. We have developed humancapital training programs for such diverse staff, and always work to provide them with the best educational and training opportunities.
[Education Program for New Employees (Taiyo Life)]
Taiyo Life has a system in place to train sales representatives to develop their capabilities to design and offer optimal insurance
plans that meet each customer’s needs depending on a variety of factors, including family structure, occupation, income, planfor children’s education, insurance already purchased and so on, aiming to increase each customer’s satisfaction. Our sales personnel undertake internal training programs and work to obtain external qualifications to gain specialist knowledge on insurance
products as well as tax affairs and financial planning expertise.
 ducation Programs for New Sales Representatives (New-employee Education Programs and Financial PlannerE
Education Programs)

Preregistration
training

Acquisition of basic
knowledge for
insurance sales,
including knowledge
about products andcontract procedures

Registration

Attendance contract

Training andacquisition of basic
knowledge for
examination on
general education

Examination on general education

Pre-examination
training

Training Stage 1

Training Stage 2

Training Stage 3

1st~3rd month

4th~6th month7th~12th month

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

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

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

FP 3rd Grade51

Organizational
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Management

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4

Governance andInternal Control

Management
Control

Third-party
OpinionIndex[E-DFP Program (Daido Life)]
Sales representatives must get a firm grasp of customer needs, which are diversifying and becoming more sophisticated, andpractice high-quality, consulting-oriented sales. For this reason, Daido Life has set up its own E-DFP (Executive Daido Financial
Planner) program with the purpose of enabling its sales representatives to obtain a wide range of professional knowledge including taxation, finance, and financial products. The E-DFP qualification is awarded to those who have passed all six life insurance
college course examinations and are ranked as a 2nd Grade Certified Skilled Worker of Financial Planning or above, including
AFPs and CFPs.
E-DFP Program (As of March 2021)
Professional
Course Exam

Advanced Professional
Course Exam

College Course Exam
(6 courses)

Life Consultant

SeniorLife Consultant

Total Life Consultant

Industry-wide
education and exam

FP skill
certification exam

3rd Grade Certified Skilled
Worker of Financial Planning

Acquisitionof E-DFP
qualification(846 staff
members)

2nd Grade Certified Skilled Worker ofFinancial Planning or above

1,858 staff members (including CFPs and AFPs)

2–7

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

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Management
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OpinionIndex

3. Improving Customer Satisfaction
3–1

102-44

Initiatives to Respond to Customer Feedback

Customer Feedback Collected from Daily Sales Activities
To respond to the changing needs of society through the provision of better products and services, our three life insurance companies have set up a number of points of contact with customers, such as sales representatives, sales agents, call centers (customer
service centers), and the Internet to collect as much customer feedback as possible. In addition, the company is conducting customer satisfaction surveys to inquire about the level of satisfaction provided by our products, services and after-sale services.
System to Reflect Customer Feedback in Operations
The Group’s three life insurance companies have set up dedicated departments and committees that include external members
to oversee our customer-oriented business operations. We have built a comprehensive system ensuring customer satisfaction
at all stages of interaction with customers, from making contracts to payment of insurance claims and benefits, based on ourcustomer-oriented business operation policy and specific guidelines for the amelioration of customer complaints. All the feedback
collected from customers is input into a centrally managed database and shared by the relevant units for the development andquality improvement of products and services, as well as for the improvement of business practices.
System for Reflecting Customer Feedback in Operations (Illustration is an example from Daido Life)
Customers

CustomerFeedback Council*2

Complaints, opinions,requests, appreciation, etc.
Customer contact points
CallcenterWebsiteBranchofficeSurveys (tacit opinions)
Various customer surveys

Gathering andanalyzing customer
feedback

Fiduciary Duty Promotion Department

Improve operations
from the perspectiveof customers

Operational departmentsCollection by employees
Idea
Post

Smile
Post

Informalmeetings
with customers

Opinions that were given
by experts fromthe customers’ pointsof view

Fiduciary Duty Promotion Committee*1[ Deliberate across divisions, including the Sales Division, Policy Division, Internal Control Division ]Report and proposals

Board of Directors/Executive Management Board*1 Fiduciary Duty Promotion Committee
We established the Fiduciary Duty Promotion Committee to further promote our corporate motto of “customer-oriented corporate activities”. In addition to continuously reviewing
all processes from insurance solicitation to payments from the perspective of customers, the Fiduciary Duty Promotion Committee makes reports and proposals for improvements
to the Board of Directors and the Executive Management Board.
*2 Customer Feedback Council
The company has established the “Customer Feedback Council” in order to utilize of the insights of outside experts in sound business operations from the perspective of customers. The Customer Feedback Council monitors the situation with business operations related to improving customer service and reviews the adequacy and effectiveness of thecontent of deliberations by the Fiduciary Duty Promotion Committee.

Examples of Reflecting Customer Feedback in Operations[Taiyo Life]
Customer Information Meetings
Taiyo Life holds regular meetings with policyholders, called Customer Information Meetings, in order to help 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 andservices. At Customer Information Meetings, the company explains its management policy and yearly performance, information
regarding the services it offers to customers, new products, and similar. The valuable opinions we have received from participating
customers are used to improve our business practices and customer services.

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Governance andInternal Control

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Third-party
OpinionIndex

Acquiring a Third-party Opinion on ISO 10002 Compliance
In March 2008, Taiyo Life declared the introduction of ISO 10002, an international standard for handling complaints as regards
quality management, customer satisfaction and guidelines for complaints handling in organizations, and since then has been committed to continually enhancing customer-oriented service and operations by utilizing customer feedback (including complaints).
In March 2021, following on from March 2020, we obtained a third-party opinion on ISO 10002 compliance that recognized ourcomplaint management system as complying with ISO 10002 and functioning effectively. We have been working to improve ourbusiness processes based on ISO 10002 and educate employees through training programs.
Customer Complaints by TypeType of feedback(Units: no. of complaints received; proportion: %)FY2017FY2018FY2019FY2020No. received%

No. received%

No. received%

No. received

%

1,448

30.7

1,719

30.4

2,052

31.3

1,907

31.7
5.9
20.0

New contracts
Payment of premiums

312

6.6

380

6.7

406

6.2

355

Conservation work

906

19.2

1,032

18.2

1,211

18.5

1,203

Insurance claims and benefits

950

20.1

1,127

19.9

1,272

19.4

1,060

17.6
24.9
100.0

Others

1,104

23.4

1,399

24.7

1,616

24.6

1,498

Total

4,720

100.0

5,657

100.0

6,557

100.0

6,023

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

[Daido Life]

Customer Satisfaction Level(Corporate and Individual Business Owners)

Customer Satisfaction Surveys
Conducting surveys is useful in identifying hidden issues related

87.0%

to Daido Life’s business that are difficult to uncover by passively

Very satisfied 12.4%

84.7%

80.0%

82.3%

10.8%

9.0%

9.3%

Satisfied 35.7%

30.6%

28.0%

28.5%

Fairly satisfied 38.9%

43.3%

43.0%

44.5%

FY2017FY2018FY2019FY2020receiving customer opinions and requests.
Major examples include the new policy procedures survey
filled out by new policyholders after the completion of the contract procedures, with a focus on the attitudes of sales representatives and the understandability of application forms and otherdocuments, as well as customer satisfaction surveys filled out by* The customer satisfaction level is a total of the top three items (Very satisfied, Satisfied, Fairly
satisfied) out of seven levels: Very satisfied, Satisfied, Fairly satisfied, Cannot decide,
Somewhat dissatisfied, Dissatisfied, and Very dissatisfied.

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

Satisfaction Level for Each Case

Response to Customer Complaints
We define “complaint” as an expression of dissatisfaction by a

At the time of enrollment

After enrollment

At the time of claim payment

customer regarding the company’s operations. Upon receiving

87.7%(+7.0pt)

80.2%(+1.3pt)

87.3%(+3.7pt)

complaints, we immediately respond in a sincere manner, setting out to resolve such issues. At the same time we take these* The figures in the brackets is the comparison with fiscal 2019

complaints as valuable information to be used for improving ourbusiness processes.
Customer Complaints by TypeType of feedback
Purchase of life insurance policy(Units: no. of complaints received; proportion: %)FY2017FY2018%

No. received

%

1,385

13.1

1,203

11.8

No. received

919

FY2020%

11.8

No. received

809

%

13.1

847

8.0

736

7.2

639

8.2

429

6.5

Procedures after making a contract

4,023

37.9

3,816

37.5

2,685

34.4

2,200

35.6

Payment of insurance claims and benefits

2,255

21.3

2,169

21.3

1,475

18.9

980

15.9

Payment of premiums

Other

2,094

19.7

2,240

22.0

2,091

26.8

1,763

28.5

Total

10,604100.0

10,164

100.0

7,809

100.0

6,181

100.0

* As percentages are rounded to the second decimal place, totals will not necessarily add to 100.

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FY2019No. received

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Third-party
OpinionIndex[T&D Financial Life]
Customer Survey
T&D Financial Life conducts a customer satisfaction survey to proactively reflect customer feedback in customer service andoperational quality improvements. This survey includes questions about the quality of T&D Financial Life’s customer support suchas the understandability of application forms and documents involved in various procedures and the quality of call handling by the
Customer Service Center staff. Results of customer surveys are available on our website.

Q.
How did you feel about completing theapplication forms and the explanationof the required documents?

Fairlyeasy tounderstand
20.9%

Easy tounderstand
53.0%

Easy to understandFairly easy to understandAverage
Fairly hard to understandHard to understandNo answer

53.0%
20.9%
21.4%
3.2%
0.7%
0.7%

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

Fairlyeasy tounderstand
13.5%

With respect to the application forms, 73.9% of
respondents said that they were “Easy tounderstand” or “Fairly easy to understand.”With respect to the manner in which our Customer
Service Center staff handle calls, 67.8% of
respondents reported that they were “Easy tounderstand” or “Fairly easy to understand.”Easy tounderstand
54.3%

Outline of survey
Methodology

54.3%
13.5%
19.3%
0.6%
0.5%
11.8%

Easy to understandFairly easy to understandAverage
Fairly hard to understandHard to understandNo answer

Survey period: The survey, together with documents forprocedures, was sent to customers whopurchased insurance policies through financial
institution agents and requested insurance
conservation procedures.
: December 1, 2020 to February 15, 2021
(Collected until March 2021)

No. of Surveys sent : 3,310
Valid responses: 1,205

Response rate

: 36.4%

Provision of Information on the Internet
T&D Financial Life discloses a summary of information regarding customer feedback, such as frequently made complaints, comments and requests, on its website.
Customer Complaints by TypeType of feedback(Units: no. of complaints received; proportion: %)FY2017
No. received

FY2018%

No. received

FY2019%No. received

FY2020%No. received%

New contracts

159

13.0

205

17.6

295

24.0

209

23.6

Payment of premiums

75

6.2

80

6.9

95

7.7

60

6.8

Procedures after making a contract

481

39.5

506

43.5

500

40.6

371

41.9

Insurance claims and benefits

275

22.6

176

15.1

156

12.7

146

16.5

Others

229

18.8

195

16.8

185

15.0

100

11.3

Total

1,219

100.0

1,162

100.0

1,231

100.0

886

100.0

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

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Third-party
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IV Priority Theme 2

Provide Workplace Environments that Enable
All People to Participate Actively
We believe that in order to provide workplace environments that enable all people to participate actively,
it is necessary to respect the individuality and diversity of all people, while realizing a healthy and safe
work environment. In the T&D Insurance Group’s CSR Charter and Human Rights Policy, we clearly state
our respect for the human rights of all people and the individuality and diversity of all employees, as wellas our commitment to nurturing human resources and creating a workplace environment that guarantees
health and safety for all. Inadequate actions regarding respect for human rights in relation to business may
result in the risk of losing the trust of society. We believe that in order to realize a sustainable society, it isnecessary to support and show respect for the protection of human rights, and to promote the creation ofa healthy and safe working environment where employees are able to respond to the needs of society. We also believe that suchmeasures will serve as opportunities to further vitalize the Company, and are promoting various initiatives accordingly.

Connected social issues and group initiatives to solve themSocial Issues
Respect worker personalities and diversity
Support human resources and skills
development

Promote the advancement of women
Create healthy and safe workplaceenvironments

Primary Stakeholders

Initiatives

Employees

Education and training centered on on-the-job training,group training, and support for personal development
Promoting employment of persons with disabilities, implementation of training on LGBT related
issues (sexual minorities), and establishment of aconsultation desk to respect and promote diversity

Employees

Establishment and implementation of actionplans for encouraging the active participation of
women and targets for promoting female employees to management positions
Establishment of systems for returning to theworkplace from childrearing, including returning to work after childcare leave

PolicyResults for FY2020

Planned for FY2021

To respect the human rights
of all people, respect thepersonality and diversity of
our employees, ensure ahealthy and safe working
environment, and develop
our human resources•
Revised personnel and compensation systems and introduced various support systems
to enhance the work-life balance, includingbalancing work with nursing care

We will continue to create a flexible
and dynamic workplace where diverse
personnel can demonstrate their abilities with job satisfaction and a desire
to grow• Encouraged male employees to take childcare leave• Received the “Excellence Award” at the Platinum
Career Awards organized by Toyo Keizai Inc. andother organizations•
Developed IT infrastructure necessary for
telework and introduced and encouraged
online conferencing systems, etc.

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4

Social Activities

Governance andInternal Control

Management
Control

1. Utilization and Development of Human Resources
1–1

Third-party
Opinion

103-2

Index

103-3

404-2

Human Resources Development Policy

Since its foundation, the T&D Insurance Group has promoted the nurturing of a corporate culture where a diverse workforce can feel job
satisfaction and reach its potential, and has established a Group Human Rights Policy which aims to clarify the basic policy for human resource management within the Group. Under this policy, in which T&D Holdings and each Group company aim to improve their corporate
value by leveraging the unique and specialized nature of their respective business strategies, each company formulates its own educationand training plan and strives to develop and enhance the skills of its employees.

1–2

Initiatives to Provide Opportunities for Growth

The three life insurance companies conduct education and training, primarily through OJT (on-the-job training), group training, and support
for personal development. These companies encourage autonomous career development by each employee, by actively helping themto acquire qualifications and offering a diverse curriculum, including correspondence education and e-learning. In addition, systematic
rotation is implemented to provide employees with a variety of business experience, allowing them to be more capable of carrying out
work from a broad, company-wide perspective. Young employees are assigned to different parts of the organization and different job
areas for a certain period after joining the company. By moving between the head office and branches, as well as sales and administration,these employees work to acquire basic knowledge and hone their skills. Similarly, with regard to management staff, employees who haveexperience as head office division managers are put in to positions such as branch general managers, while branch managerial staff areassigned to the head office, with the aim of improving their managerial capabilities.
Taiyo Life, Daido Life, T&D Financial Life
The three life insurance companies support employee career formation, by providing opportunities to actively pursue skill development.
Received the Excellence Award at the 3rd “Platinum Career Award”
In recognition of the initiatives undertaken by the three life insurance companies, T&D Holdings, Inc.—as the holding company of the three life insurance companies—took home the Excellence Award for thethird year running at the 3rd Platinum Career Awards hosted in June 2021 by the Mitsubishi ResearchInstitute’s Innovation Network for Co-Creating the Future (with cooperation from Toyo Keizai Inc. andsupported by the Ministry of Health, Labour and Welfare (MHLW) and Tokyo Stock Exchange, Inc.).
In-house Recruiting
Under this system, employees can take up various challenges, such as application for dispatch to companies outside of the Group, positions of their choice and MBA programs.
Personnel Exchange within the Group
Personnel exchange is promoted among Group companies for facilitating the sharing of the well-developed skills and useful knowhow possessed by each Group company.
Phase I (2008–2012): Temporary transfer or transfer to other Group company for 1 to 2 years
Phase II (2013–): Short-term training program for a maximum period of 1 month was introduced• Number of participants in fiscal 2018 (including long-term) 37 employees (13 men, 24 women)• Number of participants in fiscal 2019 (including long-term) 42 employees (15 men, 27 women)• Not held in fiscal 2020 to prevent the spread of COVID-19
Overseas Job Assignments and Overseas MBA
Taiyo Life
Taiyo Life looking ahead to future overseas business strategies, we are dispatching young employees to a number of companies forapproximately three months in order to develop personnel capable of successfully working on a global level. In addition, it dispatches
a number of employees to the asset management companies overseas to acquire high-level asset management knowledge.
Daido Life
In order to nurture global talent through diverse experiences, Daido Life offers employees the opportunity to undertake internships
at overseas companies and MBA studies overseas.

Management Training
Taiyo LifeFor managers and managerial candidates, year-round training is offered to impart management knowledge and skills for managerial positions. In addition, study materials have been introduced to support personal development for branch general managers (video-based
seminars) with the goal of providing new educational opportunities that contribute to the improvement of branch management. Fromfiscal 2020, Taiyo Life has been bolstering educational opportunities and strengthening initiatives for manager development.
57

Organizational
ProfileSustainability
Management

Priority Theme

1

2

3

4

Social Activities

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

Daido LifeAt both the head office and branches, newly appointed managers are given training with the goal of improving managerial capabilities, and a select number of newly appointed managers are sent outside the company to graduate schools and business schools
for further training. Furthermore, to support the flexible career development of junior employees, the company provides training
on ways to reduce unconscious biases regarding age and gender and skill acquisition under guidance.
T&D Financial Life
Training for newly appointed key managers is conducted to help them acquire the foundational management skills required forkey management positions and reinforce their understanding of risk management, compliance, accounting operations, personnel
evaluations, work management, and more. Furthermore, training for newly appointed managers is provided to reinforce theirunderstanding of the role of managers, personnel evaluations, and work management.

Daido Life
Challenge Navi
Challenge Navi is Daido Life’s intranet portal for all things related
to human resources development. The site has a company-widefeature, My Profile function, where any employee can publish theirpersonal profile so other employees can read about their past experiences, strengths, and professional skills. In doing so, the careers ofindividual employees can be visualized. The portal site also provides asystem (known as D-Career) that lets employees seek career advice
from staff in other divisions.
Daido Life’s initiatives on supporting employees’ self-determined
career formation were recognized in the 2017 Good Career Company
Awards as the winner of the Grand Prize (MHLW Minister’s Award).
This owed mainly to the visualization of individual careers using Challenge Navi, the aforementioned D-Career scheme, and the
meticulous collection of broad-ranging career information via one-on-one meetings and its use in HR placement and development.
D-Career Planning
Since fiscal 2020, Daido Life has implemented D-Career Planning, an initiative through which each employee visualizes what theywant to become based on their own experiences and values and develops a career plan accordingly. Employees can then independently engage in personal development and work toward achieving their goals. Moreover, the company and its managers offer
assistance to each employee taking up the challenge of realizing their vision.

1-3 Promoting the Active Participation of the Elderly

103-2

103-3

The Group’s three life insurance companies have introduced a reemployment system for employees who are reaching the mandatory
retirement age. Also, in order to promote work style reform, we are working to give older people the opportunity to actively participate,and each Group company has introduced various systems according to its particular situation.
Also, Taiyo Life and Daido Life hold life planning seminars for employees before they reach the mandatory retirement age, to givethem an opportunity to think about the way they want to work and live in the future.
Taiyo LifeIn responding to changing lifestyles and other factors, on April 1, 2017, Taiyo Life introduced a mandatory retirement age of 65 foradministrative personnel, as well as a continuing employment system that extends employment up to the age of 70. At the sametime, it abolished the mandatory retirement age of 57 for managerial personnel and rolled out a scheme under which company-approved employees can be appointed to the position of manager until the age of 65.
In April 2020, Taiyo Life overhauled its performance evaluation standards so that it could better manage the mandatory retirement plan (65 years of age), let employees of all ages, including senior employees, demonstrate their capabilities more than everbefore, and establish an environment in which employees can thrive in managerial positions. It also introduced a performance-based
personnel system with the aim of developing an environment in which employees can work with a competitive spirit and be highly
motivated regardless of age. The company also provides educational opportunities by inviting external lecturers so senior employees
might become more motivated at work.
Daido Life
Effective April 1, 2017, the system was revised to employ all applicants up to a maximum age 65.To put in place a work environment
in which employees can more easily achieve their life plans, Daido Life has introduced a Home Base system for personnel employedon a nationwide basis who are 55 or older that encourages assignment to positions at offices in the same location as their homes.

58Organizational
ProfileSustainability
Management

Priority Theme

1

2

3

Social Activities

4

Governance andInternal Control

Management
Control

Third-party
Opinion

2. Diversity Promotion Initiatives
2–1

Index

103-2

103-3

Employment of Persons with Disabilities

As of the end of March 2021, a total of 384 employees with disabilities, including 36 new recruits for fiscal 2020, worked at the three life
insurance companies, which account for 2.60% of the total number of employees.
We have put in place several measures designed to create a comfortable workplace for employees with disabilities. As a pre-hireinitiative, we encourage the attendance of a placement support worker at job interviews, so that job candidates can go through thescreening process without worry. We also hold workplace tours for candidates to prevent assignment mismatches. After hiring, we strive
to provide company-wide support, through measures such as preparing a comfortable working environment by introducing specialized
computers and other equipment, and taking commuting routes into consideration. In addition, job coaches who specialize in support for
employees with disabilities are dispatched to the company, and a placement support worker holds interviews together with the employee
and his or her supervisor, and offers advice.
We will continue working to create a workplace environment that encourages and supports persons with disabilities in working comfortably, and to expand employment opportunities for persons with various disabilities.
Employment of People with Disabilities at the Three Life Insurance Companies

Employment rate of people with disabilities (%)

FY2018FY2019FY2020

2.56

2.52

2.60

Daido Life
With the aim of creating workplaces in which a highly diverse workforce can thrive, Daido Life continues to establish safe andcomfortable working environments for people with disabilities. As part of this initiative, in February 2018 the Company set up ACT*at its head office. This administrative services team of employees with disabilities currently has 17 members (as of March 2021).
* ACT is both an acronym for Advance Challenged Team, and a reference to persons with disabilities acting, or taking part, in society.

The company has distributed communication boards and tablets installed with “UDTalk,” an app that converts voice to text inreal time, to the head office and branches where employees with hearing disabilities work.

2–2

Human Rights Education

412-2

The T&D Insurance Group holds human rights education sessions for all employees more than twice a year on various issues, such as discrimination
due to social class or disability, harassment and LGBT orientation, to deepen employees’ understanding of the importance of respecting human rights.
Taiyo Life
With the aim of deepening an understanding of human rights issues and cultivating a spirit ofrespect for human rights, the company has created a Human Rights Education Program, whichholds courses for all employees on the topic of human rights.
In fiscal 2019, the company held four in-house study sessions for administrative personnel on various human rights issues, such as international human rights standards and harassment. Worksite study sessions for branch employees were conducted by outside instructors.
Training was also held for persons in management positions on the themes such as cultivation of a harassment-free workplace.
Ahead of revisions to Japan’s anti-harassment laws, which took effect on June 1, 2020, Taiyo Life amended its policy on dealing
with power harassment and regulations concerning employee awareness and training about this subject matter. It also implemented
an e-learning training on harassment to be completed by all administrative personnel.

Daido Life
With the aim of raising awareness about human rights issues, Daido Life has all employees, including dispatch workers, receive training
on human rights awareness. In fiscal 2020, workplace training and manager training sessions were held on the themes of penetrationof the T&D Insurance Group Human Rights Policy and harassment prevention. The sessions focused on the key topics of: (1) preventing harassment, and (2) workstyle reforms and creating workplace environments in which a diverse workforce can thrive. In addition,awareness on various human rights issues was raised through participating in lectures on human rights awareness outside the company, and similar activities. Further, following the enactment of revisions to Japan’s anti-harassment laws, messages were communicatedto all employees from top management, and Daido Life continued to conduct harassment prevention training sessions in accordancewith changes in the environment by conducting training sessions that blended the main points of the legal revisions with examplesof harassment. In addition, each year the company accepts in-house proposals for a human rights slogan and carries out initiatives todeepen employees’ knowledge of human rights through awarding prizes and displaying posters at the company.
59Organizational
ProfileSustainability
Management

Priority Theme

1

2

3

Social Activities

4

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

T&D Financial LifeThe company holds human rights training to allow all employees to deepen their knowledge and understanding of human rights, andto proactively confront human rights issues. This training also seeks to assist each and every employee in maintaining mental health,and to cultivate a healthy, harassment-free workplace environment by providing employees with a better understanding of mental
health and harassment (sexual harassment and power harassment).
In fiscal 2020, the company held human rights training for all employees on topics such as responding to LGBT issues in theworkplace and harassment. Training on cultivating a harassment-free workplace environment was also conducted for all personnel
promoted to management positions, as part of the training for newly appointed managers.

2–3

Initiatives to Support Active Participation of Women

The T&D Insurance Group has accelerated efforts to create a corporate culture where a diverse workforce can feel job satisfaction andreach their potential. Among these, the Group recognizes that enabling women to further reach their potential is an important driver ofsustainable growth in corporate value, and that their active participation is a crucial management priority for the Group. With this in mind,
the Group’s three life insurance companies are working to revise their respective personnel and compensation systems, as well as introducing various support systems to enhance employees’ work-life balance, including balancing work with childcare and nursing care. In
addition, by fostering a Group-wide collaboration to reduce total working hours and encourage male employees to take childcare leave,
we are making an effort to create rewarding workplace environments where everyone is motivated to play an active role. To steadily
advance these initiatives and promote the active participation of female employees, the Group’s three life insurance companies have each
formulated action plans based on their respective business models.

Action Plan: Promote Active Roles for Women at the Three Life Insurance Companies
T&D Insurance Group has disclosed action plans for promoting the active participation of women and targets forpromoting female employees to management positions. The ratio of female managers has been steadily increasing.
Action Plan
[Initiatives]
Implement systematic cultivation andpromotion of female employees tomanagement positions
Enhance career development andwork-life balance support measures
Transform the mindset of managers
Targets set for promoting
female employees tomanagement positions(Achievement deadline)

Ratio of female
managers

Systematically cultivate
and promote motivatedand talented
female employees

Promote diverse work
styles and support
new challenges

Maintain at

Maintain(March 2024)

at above%(March 2022)

20% or over

April 2017

60

15.8%

April 2018

More than

15

Ratio of female managers(Total of the three companies)

14.9%

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

16.2%

April 2019

17.0%

April 2020

15% or over
(April 2022)

17.9%

April 2021

Organizational
ProfileSustainability
Management

Priority Theme

1

2

3

Social Activities

4

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

Taiyo Life
• Appointment of A Female Director
The company’s first female executive officer appointed in April 2017 has been appointed as a director in June 2018.
• Education for Managers
Management training is conducted when employees are promoted to management positions, as well as regularly thereafter, sothat managers will be able to smoothly carry out their duties.
• Nurturing Candidates for Management Positions
The company systematically nurtures potential management personnel by providing group training in management skills for outstanding mid-career employees across the country, regardless of job category or gender. Employees can also acquire a variety ofwork experience, through opportunities such as exchanges between Group companies.
• Preparing an Environment to Enable Flexible Work Styles
In June 2017, the company expanded its flextime system to include employees on short working hours. It is working to create
an environment where employees whose time is limited by childcare or nursing care can choose more flexible work styles anddevelop their careers. Accordingly, in April 2018, the company extended the eligible scope of the system for short working hours
from “until the April immediately after a child enters elementary school” to “until the child graduates from elementary school.” In
addition, the company has formulated a support program for employees who resume work after childcare leave, and is developing
a framework that enables a smooth return from childcare leave.
Daido Life• Greater Opportunities for Participation
Daido Life is working to support the career formation of female employees and improve managers’ capabilities in supporting them.
For example, it has put in place a comfortable workplace environment by implementing numerous support measures that aim to boost
career mindsets and expand horizons. Further, opportunities are provided for employees to discuss balancing work with family life withcolleagues who already have experience in such matters. Also, in April 2021, Daido Life appointed a new female executive officer,
and in June 2021, it promoted its first female executive officer (appointed in April 2018) to Director and Managing Executive Officer.
• Career Challenge System
The company provides opportunities for growth by enabling employees to gain a wide range of business experience, beyond thework they have previously engaged. These include in-house internships that allow locally based employees who have few transfer
opportunities to leave their workplace for short periods to try a different job, free-agent style applications for in-house jobs, andwork assignments at outside companies in Japan.
• Development of Female Managers
For the purpose of nurturing female managers and enhancing awareness about furthering their careers, Daido Life is endeavoring to
improve the managerial capabilities of female managers with the use of a mentor system whereby officers or general managers offer
their support to newly appointed female managers, in addition to dispatching female managers to universities and other institutions.
And in an effort to expand opportunities for female employees to take on new responsibilities and bigger roles, the company
has an all-star program that runs over a number of years, which aims to systematically nurture candidates for general/branchmanager positions.
T&D Financial Life
• Training to Support Women’s Active Participation
Group training is held regularly on topics such as Communicating with the People around You, Demonstrating Leadership, andGuiding and Nurturing Subordinates and Juniors, with the aim of allowing female employees to envision the type of leader theyshould become, and to acquire the skills necessary to do so.

61Organizational
Profile

2–4

Sustainability
Management

Priority Theme

1

2

3

Social Activities

4

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

LGBT-friendly

Welcomed by the Group
Underpinned by its basic approach to respecting human rights expressed in the T&D Insurance Group’s Human Rights Policy, theGroup strives to develop a workplace environment in which each and every employee can fully realize their own potential. Fromthe viewpoint of diversity, each Group company is addressing LGBT (sexual minorities) issues by running training sessions andsetting up consultation desks.
In addition, from December 2016 to January 2017, the Group held seminars regarding LGBT issues for executives, department general managers, and managerial staff. Approximately 1,700 people attended a lecture on the topic of LGBT compliancein companies by an outside lecturer, and attendees became more aware of the importance of engaging in LGBT initiatives as acompany. In addition, working-level training sessions primarily targeting Group company human resources division managers andother human resources staff were held.
Daido LifeIn April 2018, Daido Life began treating same-sex partners as spouses under the company’s leave and benefit program.
<Major Applicable Systems>• Leave, short working hours • Recreation facilities • Family transfer system • Company housing/transfer allowance• Daido Life Mutual Aid Fund (congratulations and condolence allowance system), etc.
Customer-oriented
The T&D Insurance Group’s three life insurance companies have also started to allow policyholders to designate same-sex partners as beneficiaries of insurance benefits, just like for a spouse, by submitting documents showing that the two people are in apartnership, such as a partnership certificate issued by a local government.
Example of Daido Life
Daido Life is expanding the areas in which same-sex partners living together are accorded the same treatment as spouses,
including procedures for new policies, payments, and policy changes.
Response

Date

Possible to designate as beneficiary for death benefits
Possible to designate as registered family in the Family Registration Program
Possible to sign on behalf of a partner for procedures such as new policies,
payments when the partner is unable to do so for him/herself

November 2015
December 2016

Possible to designate as a preregistered proxy

April 2018

3. Worker-friendly Work Environment
3–1

Work-Life Balance Initiatives

401-1

401-2
403-4

401-3
403-5

403-1
403-6

103-2

103-3

403-2
403-7

403-3
405-1

The T&D Insurance Group companies are strengthening various initiatives, including enhancement of childcare leave and othersystems, as well as reduction of total working hours. Accordingly, employees can make full use of their skills and increase theirperformance at work, while fulfilling their responsibilities at home, such as housework, childcare, and nursing care. Furthermore,
we believe that in order to promote the active participation of women, it is essential to create a workplace where women cancontinue working long term, while experiencing life events such as marriage and childbirth. As part of these efforts, the Group
as a whole is striving to realize work-life balance by encouraging men to participate in childrearing, and the percentage of male
employees taking childcare leave has reached 100% at the three life insurance companies.

62

Organizational
ProfileSustainability
Management

Priority Theme

1

2

3

Social Activities

4

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

Taiyo Life
Taiyo Life is taking steps to reduce overall working hours and encourage its employees to take paid leave. A number of flexible working options are on offer; for example, the company rolled out a system that allows workers to take time off in unitsof 10 minutes to look after their child if they have fallen ill or for nursing care, while the scope of Taiyo Life’s shorter working
hours system was expanded to include employees with children up until the end of elementary school. Also, Taiyo Life’s
flextime system can now be utilized by employees working shorter hours. The company also has other systems in place that
go above and beyond what is required by law. For instance, a nursing care leave system that can be utilized for up to three
years, a childcare leave system available to employees with children no older than three years, and paternity leave for male
employees of one month or more.
Also, in April 2020 Taiyo Life introduced a new system that lets employees work only three or four days a week if theyneed to take time off to provide nursing care or undergo cancer treatment. Support for employees balancing work withnursing care or medical treatment is also being expanded with cancer treatment being added to the scope of hospital leave,
which was previously limited to pregnant employees, employees that had recently given birth, or employees undergoinginfertility treatment.
Daido Life
Efforts are being made to reduce working hours, such as the implementation of automatic computer shutdown. In addition,
the company is promoting work styles that allow employees to balance their jobs with life at home, such as encouraging
employees to take paid leave and make use of the home-based work system. In 2017, the company was recognized by
the Ministry of Internal Affairs and Communications (MIC) for initiatives such as its home-based work system, receiving
the MIC Award as one of the Top 100 Telework Pioneers. Later, in February 2019, Daido Life was awarded the ExcellenceAward at the Telework Promotion Awards held by the Japan Telework Association, and in November 2019, the company tookhome the Shiny Telework Prize Excellence Award implemented and selected by the Ministry of Health, Labour and Welfare.
Further, in January 2021, the company introduced an hourly leave system for paid leave and caring for sick family members/
nursing care leave which enables employees to take leave in units of one hour. Also, in April 2021, the company launched
its Work Experience Challenge system with the goal of supporting the development of each employee by providing themthe opportunity to undertake work experience outside the company, and further, has been promoting initiatives for new
working styles, such as the introduction of private shared offices which provides locations for employees to work outsideof the office.
T&D Financial LifeAs part of its pledge to proactively promote the creation of workplace environments where employees can participate actively in good health, T&D Financial Life has formulated the T&D Financial Life Health Declaration. In line with the Declaration,
the company has implemented measures to improve employees’ health, including initiatives to reduce working hours byimplementing a “No Overtime Day” and a “Leave Work Early Day” and automatically shutting down computers used forwork. It is fully implementing regular health checkups, conducts stress checks aimed at preventing mental health issues,
has abolished in-house smoking areas, and prohibits smoking during working hours. Moreover, the company subsidizes thecosts of engaging in sports through in-house club activities and similar. It is also engaged in specified medical check-ups andthe provision of health insurance guidance based on Data Health Plans in collaboration with the Health Insurance Association.

Acquisition of Maternity and Childcare Leave
No. of employees taking maternity leave
Number of employees eligible to take childcare leave

FY2017FY2018FY2019FY2020

333

383

386

372
456

455

483

499

Men

122

100

113

84

Women

333

383

386

372
415

No. of employees taking childcare leave

444

465

484

Men

121

100

113

84

Women

323

365

371

331

* The acquisition of maternity and childcare leave at the three life insurance companies.
* The number of administrative personnel at the three life insurance companies who have returned to work after taking childcare leave is as follows.
Fiscal 2017 196 (98.0%) (Men 126 (100%), Women 70 (94.6%))
Fiscal 2018 202 (95.3%) (Men 118 (100%), Women 84 (89.4%))
Fiscal 2019 196 (96.1%) (Men 108 (100%), Women 88 (91.7%))
Fiscal 2020 172 (96.1%) (Men 84 (98.8%), Women 88 (93.6%))63

Organizational
ProfileSustainability
Management

Priority Theme

1

2

3

Social Activities

Governance andInternal Control

4Management
Control

Third-party
OpinionIndex

Acquisition of Nursing-Care Leave
FY2017FY2018FY2019

20

6

1

3

Men

1

0

0

1

Women

19

6

1

2

FY2017FY2018FY2019FY2020

13.2

14.0

15.4

16.1

FY2020*FY2018

No. of employees taking nursing care leave

FY2020

Number of Administrative Personnel Taking Paid Leave
Average number of paid leave days taken* Number of administrative personnel of the three life insurance companies taking paid leave

Number of Employees Hired/Number of Employee Turnover
Number hired
FY2018
Number of administrative
personnel hired /turnoverTotal(men andwomen)

Men

Women

Total
Under 30
30-50Over 50
Total
Under 30
30-50Over 50
Total
Under 30
30-50Over 50

Number Turnover

FY2019Numberofpersons

Percentage
compared tonumber of
employees
at fiscal
year end

305
271
30
4
110
92
15
3
195
179
15
1

5.30%
4.71%
0.52%
0.07%
1.91%
1.60%
0.26%
0.05%
3.39%
3.11%
0.26%
0.02%

Numberofpersons

Percentage
compared tonumber of
employees
at fiscal
year end

277
247
23
7
103
86
11
6
174
161
12
1

4.85%
4.33%
0.40%
0.12%
1.81%
1.51%
0.19%
0.11%
3.05%
2.82%
0.21%
0.02%

FY2019FY2020*

Numberofpersons

Percentage
compared tonumber of
employees
at fiscal
year end

Numberofpersons

Turnoverrate

Numberofpersons

Turnoverrate

Numberofpersons

Turnover
rate

283
258
20
5
113
99
10
4
170
159
10
1

4.94%
4.50%
0.35%
0.09%
1.97%
1.73%
0.18%
0.07%
2.97%
2.77%
0.18%
0.02%

295
62
101
132
160
26
53
81
135
36
48
51

5.13%
7.90%
2.98%
8.37%
5.04%
7.65%
2.76%
8.87%
5.23%
8.09%
3.27%
7.67%

315
97
100
118
144
35
46
63
171
62
54
55

5.52%
11.29%
3.16%
7.00%
4.60%
9.49%
2.58%
6.43%
6.64%
12.65%
3.92%
7.79%

258
70
66
122
140
24
34
82
118
46
32
40

4.50%
7.22%
2.18%
7.02%
4.51%
5.80%
2.01%
8.25%
4.49%
8.27%
2.40%
5.38%

* The number of administrative personnel hired and leaving employment at the three life insurance companies. All percentages are based on the number of employees at the end of
fiscal 2020.
* The number of persons leaving employment includes those who have reached mandatory retirement age, those who have left to assume posts as officers, and those who have died.
* Over 50 includes Fixed-term contract (shokutaku) employees.

Measures to Support Raising the Next Generation
Since the enforcement of the Act on Advancement of Measures to Support Raising Next-Generation Children in April 2005,
the Group has formulated a unified action plan every two years to enhance the childcare support system and promote work-lifebalance. Regarding support for the development of young people, the Group’s three life insurance companies received certification as meeting the criteria of the Act on Advancement of Measures to Support Raising Next-Generation Children (Kurumin
certification) for five consecutive biennial periods starting from the first period from April 1, 2005 to March 31, 2007. T&D AssetManagement has obtained the Kurumin certification for four consecutive biennial periods starting from the fourth period from
April 1, 2011 to March 31, 2013. Additionally, in April 2008, T&D Information System became the first company with 300 or fewer employees in the information services sector in Saitama Prefecture to acquire the same certification. The company received
certification under the same initiative for four consecutive periods. Moreover, the Platinum Kurumin System was initiated on April
1, 2015. This certification is awarded only to Kurumin-certified companies that have satisfied certain requirements by undertaking
even more advanced activities. All three of the Group’s life insurance companies obtained the “Platinum Kurumin” mark in recognition of their proactive initiatives as enterprises that support child raising activities. T&D Information System and T&D AssetManagement also obtained the “Platinum Kurumin” in August 2018 and June 2019, respectively.
T&D Insurance Group companies have been certified as being companies that support the raising of childrenチ
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プ ラ ナくるみサポー

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す

サ

て

ま

子育

ト して い

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ポー

み

ん

ん

て
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ト して いますT&D Information System
64Organizational
ProfileSustainability
Management

Priority Theme

1

2

3

Social Activities

Governance andInternal Control

4Management
Control

Third-party
OpinionIndex

Workforce Composition
Information Regarding Employees and Other Workers
Category
Employment type/ contract

Social insurance

Welfare system

Paid leave

Administrative personnel

SalaryFixedFull-time,indefinite-term

In-house sales representatives
Contract employees

FixedFull-time,
fixed-term

Fixed-term contract

Fixed

Part-time,
fixed-termPart-time

Fixed* Exceptions are marked with aFixed + proportionate.

Employee Composition by Age Group
Number of employees

Total(men and women)

Number of employees
March 31, 2019

March 31, 2020

March 31, 2021

Total

17,97917,457

17,945

Under 30

2,473

2,420

2,880

30-50

8,455

7,900

8,000

Over 50

7,051

7,137

7,065

Total

3,514

3,380

3,379

Under 30

Men

30-50

Women

371

397

438

2,026

1,784

1,779

Over 50

1,117

1,199

1,162

Total

14,465

14,077

14,566

Under 30

2,102

2,023

2,442

30-50

6,429

6,116

6,221

Over 50

5,934

5,938

5,903

* Number of employees at the three life insurance companies (including in-house sales representatives)

Officer Composition by Age Group (as of July , 2021)
Under 30

30-50Over 50

0

3

68

71

Outside officers

0

2

12

14

0

0

5

5

Outside officers

0

0

2

2

Men
Women

Total

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

3–2

Initiatives Reflecting Employee Feedback

102-43

The Group’s three life insurance companies conduct employee awareness surveys addressing issues like job satisfaction, working conditions, and the personnel evaluation system, and have implemented various measures based on the survey results. We
obtain views from employees as reference information for management, which includes gathering opinions from employees
regarding the degree of penetration and operation status of current HR systems, as well as understanding employee satisfaction,a critical element leading to greater customer satisfaction. Furthermore, the T&D Insurance Group Long-Term Vision has established employee satisfaction as a non financial KPI among the Vision’s key performance indicators, with the Group working to
improve employee satisfaction.
Employee Awareness Surveys
One of the most crucial driving forces that will allow each T&D Insurance Group company to maintain stable and sustainablegrowth is human resources. Improving satisfaction and motivation levels among employees is indispensable for the realization of
the Group’s various measures. In response to changes in personal values and society as a whole due to the COVID-19 pandemic,
in fiscal 2020, the Group’s three life insurance companies conducted employee awareness surveys that would lead to improving
employee satisfaction in the Group and at each Group company by regularly making an effort to understand Group employees’
mindsets and leveraging these results with respect to the various Group measures.

65

Organizational
Profile

3–3

Sustainability
Management

Priority Theme

1

2

3

Social Activities

4

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Employee Questionnaire on Sustainability and CSR

102-43

T&D Holdings stresses the importance of communication within the Group and hopes to be able to grow with every employee—the key stakeholders of the Group—to fulfil the Group’s public mission and social responsibilities. The T&D InsuranceGroup Sustainability Report helps raise awareness about sustainability and CSR throughout the Group as a mirror for self-reflection. Also, with the objective of enhancing the Group’s initiatives on sustainability and CSR, the Group’s corporate officers
and employees were requested to answer a questionnaire after they had finished reading the report.
Questionnaire Respondents
T&D Insurance Group corporate officers and employees* Questionnaires are completed anonymously.

About the Entire Report
Commendable Sections(1) Promote healthy and abundant lives for all people.................................................. 24.4%(2) Provide workplace environments that enable all people to participate actively...... 20.4%(3) T&D Insurance Group Vision................................................................................... 14.0%(4) Message from the President................................................................................... 11.3%(5) Help mitigate and adapt to climate change............................................................... 9.6%
(6) Social Activities.......................................................................................................... 9.1%
(7) Invest to help build a sustainable society.................................................................. 3.8%
Opinions and Requests Received
Questionnaire respondents rated the report’s comprehensibility, amount of information, as well as their level of understanding of
the Group’s sustainability and CSR initiatives, to be roughly the same as the previous year. They would like to see the following
topics be further expanded upon and improved going forward: contributions to the response against the COVID-19 pandemic andpreventing the spread of infection, etc.; initiatives for employees (initiatives aimed at improving HR systems and workplace environments, etc.); and overall Group management (business outline and future vision of each Group company, etc.). In response to
the comments and requests, the Group will make an effort to improve the content of these topics going forward.
Reflecting Opinions and Requests
To further raise the awareness of corporate officers and employees regarding sustainability and CSR issues, we made an effort toclearly demonstrate the Group’s approach and policies on implementing initiatives and edited the report to make it easier to readso that readers could become more familiar with sustainability and CSR.

4. Health Promotion for Employees
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Health and Productivity Management Initiatives (1)T&D Insurance Group companies aim to realize workplaces where all employees can work enthusiastically with a sound mind andbody under the principles of health and productivity management.
Taiyo Life
Taiyo Life promotes Taiyo’s GENKI Project*, an initiative for energizing employees, customers, and society. This projectprovides various forms of support to encourage employees to maintain their health with the aim of preventing lifestyle diseases. The company cooperates with Kaminoyama City in Yamagata Prefecture to offer Kurort Health Walking and Smart
Life Stay (accommodation packages that incorporate health guidance specified by the Japanese government) through the
Kaminoyama Onsen Kurort (health resorts) Program. The company’s health and productivity management initiatives havealso included an increase in the subsidy for cancer screening since 2017, and MCI screening is performed to determine thefuture risk of dementia. In addition, beginning in fiscal 2021, Taiyo Life’s health and productivity management initiatives also
include AminoIndex® Risk Screening, which can assess the current likelihood of cancer and the future risk of strokes, myocardial infarction, or diabetes, all at once. Taiyo Life concluded cooperative agreements on health promotion with Gifu City,
Gifu Prefecture in February 2020, and with Seki City, Gifu Prefecture in January 2021. It aims to support people’s health andwell-being in regional communities through Kurort Health Walking, buoyed by the active participation of Taiyo Life employees.
* Taiyo’s GENKI Project is being promoted with the President at the helm and all executive officers as members.

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Daido Life
Daido Life’s “DAIDO COCO-KARA” is a variety of initiatives for improving the health of employees under the “COCO-KARA
Declaration,” a declaration of health and productivity management and a commitment from top management. Through its active
promotion, it aims to realize a workplace where all employees can participate actively with good physical and mental health. These
include initiatives to reduce working hours by automatically shutting down computers used for work, as well as planned yearly leaveand leave taken in conjunction with weekends or national holidays, regular preventive health checkups for all employees, establishment of consultation desks to discuss second opinions and cancer, the provision of wearable devices which allow the wearer
to measure their health status during everyday activities such as heart rate and number of steps taken, and talks on health topics.

T&D Financial Life
T&D Financial Life has implemented initiatives to promote employee health, with a management initiative of creating a workplace where employees can feel job satisfaction. These include initiatives to reduce working hours, such as establishing a“No Overtime Day” and a “Leave Work Early Day,” as well as automatically shutting down computers used for work, fully
implementing regular health checkups, conducting stress checks aimed at preventing mental health problems, abolishing inhouse smoking areas and prohibiting smoking during working hours, and subsidizing the costs of engaging in sports throughin-house club and other activities. In addition, the company is also engaged in specified medical check-ups and provision ofhealth guidance based on Data Health Plans, in collaboration with the Health Insurance Association.
For five years straight, Taiyo Life and Daido Life have been listed in the White 500 as organizations having outstanding health andproductivity management, based on the Certified Health and Productivity Management Organization Recognition Program set upby Ministry of Economy, Trade and Industry for the purpose of increasing the uptake of health and productivity management andencouraging health promotion among employees.
Certified Health and Productivity Management Organization – White 500
Both Taiyo Life and Daido Life were recognized, for a fifth consecutive year, as Certified Health andProductivity Management Organizations “White 500” in the large enterprise category under the
Ministry of Economy, Trade and Industry’s (METI) Certified Health and Productivity Management
Organization Recognition Program, which METI established with the aim of honoring organizations
that engage in initiatives to improve the health of their employees.
The two initiatives of “Taiyo’s GENKI Project” at Taiyo Life and “DAIDO COCO-KARA” at Daido Lifeare being carried out to improve the health of employees, and both aim to realize workplaces where all
employees can be both physically and mentally healthy and work in a spirited manner.

4–2

Health and Productivity Management Initiatives (2)Initiatives by the Human Resources Department
The T&D Insurance Group has a clinic at its head office, and promotes the health of its employees through periodic health committee meetings at each branch office in collaboration with industry physicians and the labor union. The Group companies also
take care of the mental health of their employees and, by contracting external physicians, provide a system for consultation andmedical service that employees can utilize free from anxiety.
Stress Check Program
All employees at T&D Insurance Group companies were invited to undergo a stress check as part of the program’s goal of preventing mental health disorders. The Group encourages self-care among its employees, and has also put in place a system for
employees under particularly high stress to receive in-person advice from a physician, and when necessary, to introduce such
employees to specialists the Group has contracted with on a part-time basis. Each company also conducts group analysis, which
is beneficial in improving the workplace environment.
In-House Non-Smoking Initiatives
In the interests of strengthening measures to prevent second-hand smoke and promoting mental and physical health, in July
2018, the T&D Insurance Group implemented an in-house non-smoking policy (eliminating smoking areas on company premises
and prohibiting smoking during work hours) at all Group companies.
Health Insurance Association
The three life insurance companies have their own independent health insurance association, which work to prevent lifestyle diseases and otherwise promote the health of association members. In addition to covering medical costs, such as due to illness or
injury in members and their dependents, the societies conduct campaigns to raise awareness regarding the use of health insurance,
subsidize the cost of health check-ups including annual physical examinations, and promote cancer screening. Since fiscal 2008,
the societies have also carried out specified medical check-ups and healthcare guidance aimed at preventing lifestyle diseases. In
fiscal 2015, the health insurance societies began activities such as providing health guidance to insured members as part of their
Data Health Plans. A Data Health Plan is an efficient and effective approach to health maintenance based on the PDCA cycle andanalysis of data such as medical information (receipts for health insurance claims) and information about health examination results.
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103-2

103-3

Help Mitigate and Adapt to Climate Change
A globally shared long-term target was established by the Paris Agreement, adopted at the 21st Sessionof the Conference of the Parties to the United Nations Framework Convention on Climate Change in December 2015, to keep the rise in global average temperature fully below 2ºC in comparison to before theIndustrial Revolution and pursue efforts to limit this rise to 1.5ºC. Achieving net zero emissions and carbon
neutrality by 2050 is required to realize this target. To transition to a low carbon/decarbonized society andadapt to climate change, it will be necessary to transform the industrial structure on a large-scale andmodify our behavioral patterns. The T&D Insurance Group also remains cognizant of the fact that we must
do our part as a member of society.
The T&D Insurance Group formulated the T&D Insurance Group Environmental Policy* to clarify the Group’s stance on theenvironment. The Policy is to carry out business activities with full awareness of the importance of environmental concerns, and toensure that executives and employees understand that they must act in consideration of the protection of the global environment.
The Group will achieve sustainable growth along with society while fulfilling the public mission of life insurance and other businesses, and undertaking its corporate social responsibilities. In addition, based on the above Policy, the Group has set out its Green Purchasing Standards and Detailed Rules and gives priority to the purchase of products and services that help reduce its environmental
impact when procuring a diverse group of goods ranging from office furniture, equipment and consumable supplies to real estate
facilities and system equipment as well as in printing product brochures and policy documents. While climate change on a global
scale is a risk for the continuity of the Group’s business activities, the Group considers it an opportunity to undertake new activities.
* For more information, please see our website.
WEB https://www.td-holdings.co.jp/en/csr/csr-policy/environment.html

Connected social issues and group initiatives to solve them

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Social Issues

Primary Stakeholders

Initiatives

Strengthen resilience to climate change

Local communities

Set common Group goals and reduce CO2
emissions, electricity usage, and office paper
consumption

Improve energy efficiency

Local communities

Various initiatives to save electricity, utilization of power demand monitoring systems,
energy-saving through implementing “noovertime days”

Enhance efficiency of resource use

Local communities

Promotion of “green purchasing” that contributes to protecting the environment, promotion of reduction and recycling of waste

PolicyResults for FY2020

Planned for FY2021

To contribute to climatechange mitigation and adaptation through our own
business activities as a provider of insurance products
and services to customers
and through our actions as
an institutional investor• Established CO2 emission reduction targets
and positioned them as non-financial KPIs in
the newly formulated Group Long-Term Vision• Further reduction of CO2 emissions
by promoting the introduction ofrenewable energy• Further expansion of 2050 net-zerogoal•Quantitative scenario analysis oftransition risks to further enhancecompliance with TCFD, etc.

•Established a new Climate Change Risk
Subcommittee to strengthen our response to
climate change•Conducted quantitative scenario analysis ofphysical risks to enhance compliance with
TCFD, etc.

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Promotion Framework (Environmental Management)
T&D holdings

Board of Directors
External institutions
Group SDGs Committee*1
Department in charge of Promoting Sustainability Group
Social Communication Department
Sustainability Promotion Division(Committee Secretariat)*2

Confirm the adequacy
and accuracy ofinternal control andevaluation data

Climate Change Risk Subcommittee
SDGs Promotion Working Group

Group companies
Departments in charge of
Sustainability/CSR

Departments in charge of
Sustainability/CSR

Departments in charge of
Sustainability/CSR

Each division

Each division

Each division*1 The Group SDGs Committee is chaired by the Representative Director and President, and vice-chaired by the Representative Director andExecutive Vice President (Executive Officer in charge of Sustainability)*2 Secretariat = Group SDGs Committee Secretariat

2. Disclosure of Climate-related Financial Information
Based on the TCFD Recommendations

201-2

The Task Force on Climate-related Financial Disclosure (TCFD), established by the Financial Stability Board (FSB), formulated its
recommendations for clarified, comparable, and consistent information disclosure regarding the risks and opportunities posed byclimate change. These recommendations were announced in June 2017. Climate change is an issue to be addressed on a global
scale. The effects of climate change have significant impacts on the lives of people, through changes in economic behaviors andsociety worldwide. The T&D Insurance Group has expressed its support for the TCFD recommendations, and is actively committed to disclosing climate-related financial information in an easy-to-understand manner.

Disclosure of climate-related financial information

GovernanceOversight by the Board of Directors• The Board of Directors has established the Group SDGs Committee as its subsidiary body, with the task of reviewing anddeliberating its policies related to SDGs and CSR, along with measures concerning the global environment and social issues.
•T he Group SDGs Committee is chaired by the Representative Director and President, who concurrently serves as chairperson of theBoard of Directors, and consists of the directors and general managers in charge of Sustainability/CSR and investment management
departments at Group companies. The Committee formulates basic policies and measures regarding the global environment and social
issues such as SDGs, while periodically monitoring the progress of such initiatives, and reporting to the Board of Directors thereon.
• The Board of Directors established the Climate Change Risk Subcommittee as a subordinate body of the Group SDGs Committee.
The purpose of the Subcommittee is to support the SDGs Committee in formulating policies and considering actions related
to climate change by investigating and reviewing the status of climate change risks and the necessary responses and thenreporting these to the SDGs Committee and offering proposals. The Subcommittee consists of the persons in charge (section
managers) of the planning, risk management, and asset management departments at Group companies.
Role of Management• The Company has established the Executive Management Board, comprising the Chairman, the President, and executive
officers in charge of specified areas of operations, for the purpose of deliberating important matters related to managementof the Group. The Executive Management Board receives detailed reports on all policies and measures regarding the global
environment and social issues that are deliberated at the Group SDGs Committee. Important matters are also deliberated at the
Executive Management Board, and the results thereof are reported to the Board of Directors.
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Strategies
Risks• The following scenario analysis was carried out in order to assess the impact (physical risks*1 and transition risks*2) of climatechange on the Group.
*1 Business risks associated with natural disasters caused by extreme weather such as typhoons and floods, and those associated with phenomena such as an increase in the averagetemperature and a rise in the sea level*2 Business risks arising from the actions of government, corporations, and consumers in the process of carrying out the transition to a low carbon/decarbonized society (through asignificant reduction of greenhouse gas emissions)

Scenario analysis: what the world looks like under each scenario
Assumptions:
1.5°C scenario: Strict measures are taken against climate change. By the end of the century, the average annual temperature will increase by between 1.0°C and 1.8°C.
4°C scenario: No measures are taken against climate change beyond the current status quo. By the end of the century, theaverage annual temperature will increase by between 3.3°C and 5.7°C.
* RCP 2.6 and RCP 8.5 scenarios, respectively. The annual average temperature is a comparison between the 2080-2100 average and the 1986-2005 average.

The world under the 1.5°C scenario
Overview• Due to the rise in average temperatures, natural disasters
become more frequent and intense.
(However, the impact is kept below a certain level.)• Strict measures to combat global warming increase business costs for each company.
•Technological innovation progresses (and new players
emerge) in support of low or net-zero carbon emissions.
• Reallocation of investment away from companies that are
unable to support low or net-zero carbon emissions.

The world under the 4°C scenario
Overview• Due to the large rise in average temperatures, the impact of
frequent and intense natural disasters becomes significant.
• Sea level rise, storm surge, flooding, and heavy rainfall havea significant impact on coastal areas. (A review of lifestyleand BCP is also necessary. The companies face increased
business costs.)• Reallocation of investment away from companies that arevulnerable to natural disasters.

Physical effects caused by a rise in average temperature (1.5°C scenario < 4°C scenario)[Impact on the environment]• Frequent and intense natural disasters such as typhoons and floods.
• Changes in rainfall and weather patterns, rising average temperatures, and rising sea levels.
[Impact on health]• Increasing average temperatures lead to an increase in the number of heat stress deaths and heat stroke patients.
• The number of injuries and fatalities due to natural disasters increases due to an increase in extreme weather events suchas typhoons and floods.
• The risk of contracting an infectious disease increases due to the expansion of the habitats of disease vectors.
Impact of the transition to a society with low or net-zero carbon emissions (1.5°C scenario)[Policies, laws, and regulations]• Tighter regulations on greenhouse gas (GHG) emissions and the introduction of a carbon tax. Expanded disclosure requirements (increased business costs for companies).
[Technology development]• Progress in reducing the carbon footprint of existing technologies and the introduction of new technologies such as renewable energy, storage batteries, and electric vehicles.
• While some companies emerge and grow by seizing new business opportunities, others have been unable to respond to low
or net-zero carbon emissions measures and fail.
[Changes in investor behavior]• Reduced investment and lending to companies that cannot comply with regulations, companies that cannot exit from existing GHG emissions businesses, and companies that have recorded fossil fuels as stranded assets. Expanded investment
and financing to companies that contribute to low or net-zero carbon emissions.

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Scenario analysis: impact on the GroupBCP response

Physical risks

Impact on underwriting
profitability

1.5°C scenario

4°C scenario•
Significant increases in the number of heat stressdeaths and heat stroke patients.

• Significantly higher average temperatures will lead tolarger increases in heat stress deaths and heat stroke
patients than under the 1.5°C scenario.

• Both of these increases will be gradual over a long
period of time, which will limit their impact on underwriting profitability.

• Both of these increases will be gradual over a long periodof time, but will be larger than under the 1.5°C scenario.

Transition risks

Impact on asset management income• This will be addressed by conducting an appropriate
review of premium rates.

• We will address this by conducting a more detailed
review of premium rates to avoid a significant negative
impact on underwriting profitability.

• A business continuity plan has been established at another site in case a major disaster causes a disruption
to the functions of critical sites.

• To address the increasing intensity of natural disasters,
we will use hazard maps and similar tools to assess
the risk level of our business sites, relocate importantsites, establish backup sites, and implement remotedecentralization measures using IT as appropriate.

• In order to transition to a society with low or net-zerocarbon emissions, regulations on GHG emissions will
be tightened and a carbon tax will be introduced, making the use of fossil fuels more difficult.

• The medium-term impact on the investees and borrowers of the Group will be smaller, since there will
be no sudden changes in the environment expected in
the 1.5°C scenario.

• Expanded use of new technologies (renewable energy, etc.) in response to these environmental changes.

• However, in the long-term time horizon up to the endof the century, it is assumed that the increase in average temperatures and the intensification of natural disasters will have a significant negative physical impact
on each company’s business activities.

• Increased investment and financing (green finance) tocompanies, technologies, and projects that contributeto low or net-zero carbon emissions.
• In the medium-term, up to the middle of this century,
some industries will be significantly affected by tighter
regulations on GHG emissions, the introduction of acarbon tax, the replacement of old technologies withnew low or net-zero carbon technologies, and changes
in consumer values and behaviors.

• In order to avoid damage to our asset management
income, we will avoid or withdraw investment and financing to firms with significant physical risks.

• To avoid damage to asset management income fromthe impact on the investees and borrowers of theGroup, we will work as appropriate in accordancewith the Principles for Responsible Investment (PRI)
through the promotion of investment and financing activities to businesses and companies that contribute to
the transition to a society with low or net-zero carbon
emissions, for example renewable energy businesses,
and through engagement with existing investees.

Reference data: physical risks—Climate Change Adaptation Information Platform; transition risks—NGFS and Bank of England scenarios

Opportunities• Changes in the morbidity rate and average life expectancy associated with the progress of global warming are expected togive rise to needs for protection (involving death, annuities, and medical care) against emerging risks. There are opportunities
to expand net sales of the insurance business, by expanding and providing a wider scope of protection in order to meet such
emerging needs.
• As the reduction of GHG emissions progresses, the Group, as an institutional investor, has opportunities to enhance the valueof investment assets and expand investment returns stably over the long term, by investing and lending to expanding clean
energy development and energy conservation businesses, and by owning and managing real estate (such as office buildings)
with superior environmental performance.
• The Group also has opportunities to expand its business domains and earnings as a business operator, rather than as an
institutional investor, by developing or entering into new business domains related to the mitigation of and adaptation toclimate change.

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Risk management
Risk identification and assessment process• The Group exhaustively classifies the risks it faces through use of a risk profile, with a view toward dealing with increasingly
diverse and complex risks. Risks are listed exhaustively by risk category. The Group then identifies and assesses these risks,and prioritizes initiatives by considering factors such as each risk’s significance, potential impact, and current status of control,
which are then reflected in management plans, as necessary. The Group registers climate change-related risks on the risk
profile as critical risks to be managed, and scrutinizes, identifies, and assesses these risks. Climate change-related risks are
identified and assessed as insurance underwriting risk, asset management risk, operational risk, reputational risk, and risks that
may have broad-based impacts on overall management.
Risk management process• In order to identify and grasp newly emerging risks, as well as changes in risks that have already been identified, a review of therisk profile is carried out twice per year, and reported to the Group Risk Management Committee and the Board of Directors.
Management of climate change-related risks
1) Physical risks• The Group considers to mitigate deterioration of underwriting profitability through reinsurance and other means, along withlarge-scale disaster risks (insurance underwriting risks).
• The Group monitors existing products and implements countermeasures, including product revisions, as necessary.
2) Transition risks• The Group engages in investments and borrowings, taking into account climate change-related risks based on the Principles
for Responsible Investment (PRI).
• The Group monitors trends in economic policies, laws, and regulations, and share the information across the Group, throughthe Group SDGs Committee and the Group Management Promotion Committee. Measures are taken to ensure that theGroup responds to such trends in a sufficiently effective manner at the level expected of a listed company.

Metrics and targets• The Group establishes its environmental protection-related targets and is working on initiatives to achieve them in its daily business activities. The four targets are “to reduce CO2 emissions,” “to reduce electricity consumption,” “to reduce office paper
consumption,” and “to improve the green purchasing ratio.” Progress toward the achievement of these targets is measured
semi-annually, and disclosed in various reports and websites.
• As for CO2 emissions, Scope 1 (direct emissions from the Company), Scope 2 (indirect emissions via the purchase of energy
including electric power), and Scope 3 (indirect emissions via other corporate activities including procurement of materials,
transport, and disposal) are measured and disclosed on a continuous basis.
• The Group is working toward reducing CO2 emissions with an achievement deadline of FY2025, targeting a 40% reduction(Scope 1 + 2; compared to FY2013; per unit of floor space). In addition, we are aiming to achieve net zero emissions by 2050,
which includes investees and borrowers of the Group (Scope 3: Category 15).
• As for the target to reduce electricity consumption, targets for the five-year periods from FY2008 and FY2013 were bothachieved. Efforts are underway to achieve the target for the next ten-year period from FY2018.
• As for the target to reduce office paper consumption, the target for the five-year period from FY2014 was achieved. Efforts areunderway to achieve the target for the next five-year period from FY2019.

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Environmental Initiatives

Efforts for Achieving Group-wide Targets
The T&D Insurance Group has set Group-wide targets related to environmental protection, and is working to achieve these targets in the course of its daily business activities.
The Group’s four targets are to reduce CO2 emissions, reduce electricity consumption, reduce office paper consumption, andimprove the green purchasing ratio.
CO2 Emissions Targets and Results

Page 75

As over 90% of the Group’s CO2 emissions (Scope 1 + 2) arise from electricity use, we are taking actions to reduce CO2 emissions bysetting targets for reducing electricity consumption and curbing energy usage.

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Electricity Consumption Targets and Results Page 75
In addition to the power-saving activities, we implement a multitude of measures to reduce electricity consumption. These efforts range from introducing a power demand monitoring system for controlling peaktime use in each building and setting a no
overtime day, encouraging employees to put their computers into standby mode when they are away from their desk and turnoff printers and multifunction machines when leaving offices.
Office Paper Consumption Targets and Results Page 75
We are striving to reduce the paper consumption in offices by promoting paperless meetings, two-sided and 2-in-1 printing, test
printing and confirmations before printing a large quantity and rigorously insisting on printing only after confirming printing settings.
Green Purchasing Ratio Targets and Results Page 75
When procuring office supplies and stationery, we promote green purchasing by giving priority to products that are compliant
with the Act on Promoting Green Purchasing and to Eco Mark products. In addition to establishing Green Purchasing Standards
and working to prioritize purchasing of products that meet those standards, initiatives include setting up a system that requires
approval when ordering office supplies online that are not environmentally compliant.
Power-saving Efforts
Each year the T&D Insurance Group participates in a “Cool Biz” campaign from May to October (setting thermostats of air conditioners at 28°C) and a “Warm Biz” campaign from November to March (setting a room temperature at 20°C). In addition, as a
power-saving measure to prevent global warming, the Group turns off or reduces the lighting in offices, meeting rooms, hallways
and other areas when they are not in use.
“Lights Down” Campaign
As an initiative to raise the environmental awareness of each of the Group’s executives and employees, the T&D Insurance Grouphas been conducting a campaign in which it calls for a simultaneous switch-off of all the lights in offices twice a year. In fiscal
2020, this initiative was conducted in August and December. We will continue our initiative of a simultaneous switch-off of all thelights twice a year, in order to contribute to the prevention of global warming.
Promotion of Paperless Operations
At our head office in Nihonbashi, Tokyo, we have established an efficient and effective office environment by distributing mobile
computers, installing wireless LANs, and providing displays on meeting room tables. In principle, meetings are now paperless,including the meetings of the Board of Directors and the Executive Management Board. Further, in light of the increase in working
from home due to the COVID-19 pandemic, we are working on eliminating the use of inkan (employee seals) in workflows andother processes.
Green Procurement Initiatives (Total Costs and Quantities of Procurement Intended for Environmental Protection)
In addition to green purchasing initiatives, which mainly target office supplies and other consumables, Green Procurement
Standards that reduce environmental impact have been established for the printing of product brochures, policy documents
and riders; procurement of lighting, air conditioning and other equipment for real estate; and for system equipment and officeautomation equipment. The Group gives priority to procurement of items that meet these standards. The results of these efforts
to promote environmentally friendly procurement are not only collated in terms of amounts spent and quantities, but specificmeasures are also studied, shared among the Group companies and used to benefit environmental protection initiatives.
Green Procurement Results
Portion known to apply/ not apply to standard, in figures
Standard applicable
NumberAmount(million yen)Standard non-applicable
NumberAmount(million yen)

Portion for which applicability/
non-applicability is unknown
Quantity or
number ofordersAmount(million yen)

Total
Total
numberTotal amount(million yen)

Printing of product brochures, riders
FY2018

313

325

542

86

345

0.1

1,200

411

FY2019

241

561

602

97

303

0.1

1,146

658

FY2020

402

328

563

97

51

0.0

1,016

425

System equipment and office automation equipment
FY201814,015

1,797

24,083

176

6

0.3

38,104

1,973

FY201910,92919,171

10,914

251

1

0.2

21,844

19,422

FY20204,372

457

12,001

112

26

0.4

16,399570

Real estate equipment
FY2018

50

1,078

0

0

5,041

3,730

5,091

4,808

FY2019

41

1,848

0

0

3,230

12,685

3,271

14,533

FY2020

39

1,018

0

0

2,995

5,889

3,034

6,908

The total of T&D Holdings, Taiyo Life, Daido Life, T&D Financial Life, and T&D Asset Management.
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303-2

303-3

The T&D Insurance Group discloses its measurements of CO2 emissions, electricity consumption, water consumption, andwaste generated and recycling rate. (The applicable scope and calculation methods of this data are described on page 76 in “3–4
Scope and Calculation Methods of Environmental Performance Data and Group-wide Targets and Results.”)
CO2 Emissions

indicates limited verification has been carried out by a third party. (page 78 “3–5 Independent Assurance Report”)

FY2018FY2019

Scope 1 (Direct emissions)

1,816 t1,746 t1,882 tScope 2 (Indirect emissions)47,553 t*

44,501 t

43,233 t

Scope 3 (Others)

24,997 t

48,856 t

34,035 t

239 t

237 t

184 t

Category 2 (Capital goods)

11,363 t

35,316 t

16,630 t

Category 3 (Fuel- and energy-related activities)

4,021 t3,967 t7,784 tCategory 5 (Waste generated in operations)

46 t

40 t

33 t

Category 6 (Business travel)

2,486 t2,478 t2,550 tCategory 7 (Employee commuting)

6,843 t6,818 t6,854 t74,365 t

95,103 t

79,150 t

Category 1 (Purchased goods and services)Total

FY2020• Data coverage: fraction of Group employees included in the target employee set 100%

Electricity Consumption

indicates limited verification has been carried out by a third party. (page 78 “3–5 Independent Assurance Report”)

FY2018FY2019FY2020Electricity consumption

98,929 MkWh

96,191 MkWh

96,711 MkWh

Total floor space (including portion for tenant use)

935,830 m2

940,757 m2

954,207 m2• Data coverage: fraction of Group employees included in the target employee set 100%

Water Consumption

indicates limited verification has been carried out by a third party. (page 78 “3–5 Independent Assurance Report”)

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

FY2018FY2019FY202048,300 m3

49,900 m3

44,200 m3

1.6%

1.6%

1.2%

Note 1: Water usage from our Group’s business operations is limited to water withdrawal and effluent discharge (wastewater, etc.) at offices within Japan. Water is withdrawn using public
utilities, and the amount of effluent is rigorously measured by a third party. Effluent is discharged into publicly managed drainage channels in accordance with effluent standards.
Note 2: S
 ince the Group’s water usage is limited to water withdrawal and effluent discharge at offices within Japan, no water is withdrawn from water stressed areas.
Data coverage: fraction of Group employees included in the target employee set (45.57%)

Waste Generated & Recycling Rate
indicates limited verification has been carried out by a third party. (page 78 “3–5 Independent Assurance Report”)

Paper waste

FY2018FY2019FY2020Total amount

346 t

301 t

249 t

Recycling rate

75.4%

71.8%

71.8%

FY2018FY2019FY2020Non-paper waste
Total amount

101 t

81 t

76 t

Recycling rate

57.1%

62.6%

61.1%

• The Group is aiming to reduce its environmental burden by making efforts to reduce waste and by recycling office paper, beverage cans, and plastic bottles. We will continue working
toward this endeavor by thoroughly ensuring that recycling is carried out.
Data coverage refers to the fraction of Group employees included in the target employee set (45.57%). Since business sites of the subsidiary Daido Life were added to the aggregation
non-paper waste have been amended. Accordingly, the amount of
non-paper waste generated increased by five tons in fiscal 2018.
target, the values of74

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Group-wide Targets and Results

The T&D Insurance Group has set Group-wide targets for electricity consumption, office paper consumption, and the green
purchasing ratio, and is working to mitigate its environmental impact. (The applicable scope and calculation methods of this data
are described on page 76 in “3–4 Scope and Calculation Methods of Environmental Performance Data and Group-wide Targets
and Results.”)
CO2 Emissions
Baseline: CO2 emissions in 2013 (value per unit of floor space) = 0.0674 t/m2
Target:Reduction by at least 40% from baseline by FY2025

Scope:	Buildings owned or leased and used by Group companies. Owned buildings include tenant usage; only the leased area
is applied for leased buildings.
Baseline (FY2013)

FY202059,908 t

44,714 t

CO2 emissions (Scope 1 + 2)

Total floor space

888,529 m2

950,959 m2

Per unit of floor space

0.0674 t/m

0.0470 t/m2—

69.7%(-30.3%)

2Compared to baseline
Electricity Consumption

Baseline: Electricity consumption in FY2016 (value per unit of floor space) =111kWh/m2
Target:Reduction by at least 10% from baseline by FY2027

Scope:	Buildings owned or leased and used by Group companies. Owned buildings include tenant usage; only the leased area
is applied for leased buildings.
indicates limited verification has been carried out by a third party. (page 78 “3–5 Independent Assurance Report”)

Baseline (FY2016)

FY201897,223,000 kWh

97,998,000 kWh

Total floor space

875,682 m2

932,685 m2

Per unit of floor space

111.0 kWh/m

Electricity consumption

Compared to baseline—2

FY2019FY202095,360,000 kWh 95,813,000 kWh
937,567 m2

950,959 m2

105.1 kWh/m

101.7 kWh/m

100.8 kWh/m2

94.7%

91.6%

90.7%(-9.3%)

2

2* As nearly all of the Group’s CO2 emissions (Scope 1 + 2) are derived from the usage of purchased electricity, we have set targets for reducing electricity use and controlling energy
consumption, with the aim of reducing our CO2 emissions.
* The reduction target is based on the premise that the CO2 reduction target of the Federation of Electric Power Companies of Japan is achieved. It is equivalent to the reduction target(services/commercial buildings sectors) based on the scientific ground, combined with the relevant portion.
*S tarting from FY2019, the figures include Pet & Family Insurance Co., Ltd.
Data coverage: fraction of Group employees included in the target employee set (100%)

Office Paper Consumption
Baseline: Five-year average from FY2014 to FY2018 (142.20 t)
Target:Cut five-year average from FY2019 to FY2023 by 12% compared to the baseline value.
indicates limited verification has been carried out by a third party. (page 78 “3–5 Independent Assurance Report”)

FY2019FY2020Progress made (average from FY2019 to FY2020)

129.43 t

100.70 t

80.9% (19.1% reduction from baseline)

Starting from FY2019, the figures include Pet & Family Insurance Co., Ltd.
Total amount of office paper purchased
Data coverage: fraction of Group employees included in the target employee set (88.57%)

Green Purchasing Ratio
Target:Keep the green purchasing ratio for office stationery and supplies at a minimum of 80%.
FY2018FY2019FY2020

94.5%

94.2%

91.9% (Target exceeded by 11.9%)

Applies to purchases through online purchasing systems.
Data coverage: fraction of Group employees included in the target employee set (88.42%)

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Index


Scope
and Calculation Methods of Environmental Performance Data andGroup-wide Targets and Results

Scope of Environmental Performance Data and Group-wide Targets and Results
Disclosure item
Scope 1 (Direct emissions)

T&D Group (since FY2018);
Major Group companies (FY2017 and earlier)

Scope 2 (Indirect emissions)

T&D Group (since FY2018);
Major Group companies (FY2017 and earlier)CO2emissions
Environmental
performancedataGroup-widetargets andresults

Scope 3(Others)

Category 1(Purchased goods and services)

Major Group business sites and
Pet & Family Insurance, excluding sales offices
and branches of Taiyo Life and Daido Life
(added FY2018)

Category 2(Capital goods)

T&D Group (added FY2018)

Category 3(Fuel- and energy-related activities)

T&D Group (since FY2018);
Major Group companies (FY2017 and earlier)Category 5(Waste generated in operations)

Major Group buildings

Category 6(Business travel)

T&D Group

Category 7(Employee commuting)

T&D Group (added FY2018)

Electricity consumption (Total floor space)

T&D Group (since FY2018);
Major Group companies (FY2017 and earlier)

Water Consumption

Major Group buildings

Waste Generated & Recycling Rate

Major Group buildings

CO2 Emissions, Electricity Consumption

T&D Holdings, core Group companies,
and Pet & Family Insurance

Office paper use

Major Group business sites and
Pet & Family Insurance, excluding sales offices
and branches of Taiyo Life and Daido Life

Green Purchasing Ratio

Major Group buildings

Calculation scope

76

Scope

Main Group companies, business sites, and buildings included in the scope of calculation

T&D Group• T&D Holdings, Taiyo Life, Daido Life, T&D Financial Life, T&D Asset Management,
T&D Information System• Buildings owned by Taiyo Life and Daido Life (including tenant leases)• Pet & Family Insurance, T&D Confirm, Toyo Insurance Agency, Daido Management Service,
T&D Lease, Taiyo Credit Guarantee, T&D Customer Services, Nihon System Shuno, Zenkoku
Business Center

Major Group companies• T&D Holdings, Taiyo Life, Daido Life, T&D Financial Life, T&D Asset Management,
T&D Information System• Buildings owned by Taiyo Life and Daido Life (including tenant leases)

Core Group companies• Taiyo Life, Daido Life, T&D Financial Life, T&D Asset Management

Major Group business sites• Each business site of T&D Holdings, Taiyo Life, Daido Life, T&D Financial Life and T&D AssetManagement (excluding tenant leases of buildings owned by Taiyo Life and Daido Life)

Major Group buildings• Tokyo Nihombashi Tower, Daido Life Osaka Head Office Building, Taiyo Life Nihonbashi Building,
Taiyo Life Urawa Building, Hamamatsucho Building, Mita Bellju Building

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Calculation Methods of Environmental Performance Data and Group-wide Targets and Results
Disclosure item

Calculation method

Environmental performance data

Scope 1 (Direct emissions)

The figures were calculated by multiplying the measured energy input
by the predetermined coefficient in accordance with the Greenhouse
Gas Emission Volume Calculation, Reporting, and Disclosing System.
(The measured energy input comprises the measured gas, heavy oil,and kerosene.)

Scope 2 (Indirect emissions)

As above. (The measured energy input comprises the measured electric power, steam, and hot and cold water.)CO2emissions
Scope 3(Others)

Group-wideCalculations are based on the Basic Guidelines Ver. 2.3 (December
2017; Ministry of the Environment and the Ministry of Economy, Tradeand Industry) regarding the measurement of greenhouse gas emissions generated by the supply chain. Regarding the predetermined coefficient, in principle, the most recent Intensity Database (Ministry of
the Environment) for each fiscal year has been used.

Category 1(Purchased goods and services)

Calculated by multiplying the office paper use by the predeterminedcoefficient.

Category 2(Capital goods)

Calculated by multiplying the expenditure for purchased capital goods,
excluding land, by the predetermined coefficient.

Category 3(Fuel- and energy-related activities)

The figures were calculated by multiplying the measured input ofelectric power, steam, and hot and cold water by the predeterminedcoefficient.

Category 5(Waste generated in operations)

Calculated by multiplying the waste generated by the predeterminedcoefficient.

Category 6(Business travel)

Calculated by multiplying the number of Group personnel at the end of
the fiscal year by the predetermined coefficient.

Category 7(Employee commuting)Calculated by multiplying the number of Group personnel by employment type and urban development level at the end of the fiscal year, by
the predetermined coefficient.
The total emissions from the sum of Scope 1 (Direct emissions), Scope
2 (Indirect emissions), and Scope 3 (Others).

Total
Electricity consumption

The annual amount of office-use electricity purchased from each energy-supplying company is calculated in accordance with the law on therationalization of energy consumption.

Water consumption

The reportable item according to the environmental reporting guidelines of the Ministry of the Environment comprises the amount used on
the invoices received from the water supply authorities.

Waste generated &recycling rate

Group-wide

Measured based on the Waste Disposal & Public Cleansing Law andother laws concerned with waste disposal and cleaning.

Waste generated

Calculated according to the invoices received from waste disposal
companies.

Recycling rate

The recycled amount is calculated according to the invoices received
from waste disposal companies, and the recycling rate is calculated by
dividing the recycled amount by the waste generated.

Group-wide targets and results
Electricity consumption

Calculated by using the annual amount of office-use electricity purchased,in accordance with the relevant energy-saving laws.

Office paper use

A reportable item according to the environmental reporting guidelinesof the Ministry of the Environment, and is calculated from the purchasing system data.

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Independent Assurance Report

Governance andInternal Control

Management
Control

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102-56

The T&D Insurance Group obtained third-party assurance from Ernst & Young ShinNihon LLC for fiscal 2020 data presented in
section “3–2 Environmental Performance Data” on page 74 and section “3–3 Group-wide Targets and Results” on page 75 inaccordance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised) and 3410 (International Auditing
and Assurance Standards Board).

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4. Forest Conservation Activities
4–1

Forest Conservation Activities

Index

304-3

Taiyo Life

Forest Conservation Activities
Life insurance companies use vast amounts of paper, including life insurance pamphlets, policy provisions, and other documents, in the course of their business operations. To restore forest resources and preserve greenery, Taiyo Life conducts forest
conservation activities. It has established Taiyo Seimei no Mori (the Forests of Taiyo
Life) in Nasushiobara City (Tochigi Prefecture) and Takashima City (Shiga Prefecture).
The first Taiyo Seimei no Mori was established in March 2006 in Nasushiobara
City, Tochigi Prefecture, as a project under the Forestry Agency’s Corporate Forest
program. In cooperation with the Enna District Forest Office and others, we continuously conduct forest maintenance activities such as thinning trees and maintaining
walking trails, in addition to inviting members of the Japan Down Syndrome Society
and their families to take part in forest studies classes.
Taiyo Seimei Kutsuki no Mori (Kutsuki Forest of Taiyo Life) was established in
Takashima City, Shiga Prefecture, in November 2007. In collaboration with theAsosatoyama Center, a local NPO, we carry out forest maintenance activities, including maintaining forest roads and clearing fallen leaves from Japanese red pine forests.
We also collaborate with local elementary schools to host the Donguri Project (Acorn
Project), wherein elementary school students grow broad-leaf seedlings from acorns
and then plant them in the forest upon their graduation.
Name of Forest
Date of Establishment
Area
CO2 Absorption“Taiyo Seimei no Mori”(the Forests of Taiyo Life) (Tochigi Prefecture)
March 2006
Approx. 4.8 ha
19 t (Estimate by the Forestry Agency)“Taiyo Seimei Kutsuki no Mori”(Kutsuki Forest of Taiyo Life) (Shiga Prefecture)
November 2007
Approx. 12.7 ha
81 t (Estimate by Takashima City)

Forest Conservation Initiative: Use of Timber from Forest Thinning
As an initiative for reducing waste of resources while promoting sustainable forest conservation, Taiyo Life is conducting thefollowing activities to achieve the “use it wisely” component of the “plant it, raise it, harvest it, use it wisely” cycle for forests.
“Chopsticks Project” launched to promote the use of disposable chopsticks made from domestic timber derived
from forest thinning and wood scraps
Our employees and executives made use of 473,935 pairs of chopsticks in aggregate from September 2006 to March 2021.
To promote forest development by encouraging use of timber from forest thinning, Taiyo Life has created its own disposable
chopsticks from Yoshino Japanese cedar derived from forest thinning. The chopsticks are distributed for a charge to those whorequest them, and efforts are made to use them at meals during internal meetings and so on.
Active Use of “3.9 Paper”*
Another initiative designed to promote use of timber from forest thinning is the use of “3.9 Paper” in paper wrappers for“Wood Thoughtfulness Chopsticks.”* “3.9 Paper” is a project launched to promote the use of domestic timber from forest thinning. Under this project, the costs of the transportation of timber from the forest to thewood chip mill are borne by the users of the paper in printing.

5. Environmental Communications and Educational Activitie
5–1

Environmental Communications and Educational Activities

T&D Holdings endorses the activities of the Japan UNEP Association which produces the Japanese edition of UNEP FORUM — Environmental Magazine Tying UNEP
to Enterprises — published by the United Nations Environment Programme (UNEP).
This publication is distributed to all companies in the T&D Insurance Group as wellas to local elementary and junior and senior high schools, public libraries, and otherparties to raise awareness of environmental issues.

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Third-party
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Index

103-2

103-3

Invest to Help Build a Sustainable SocietyWith the main business of the Group being life insurance business, contributing to realizing a sustainable society through investment is one of the most fundamental roles of
the Group. The sustainable and stable growth of society is essential in securing long-term
stable profit through investment. The Group focuses on the impact that the investment activities of the institutional investors who manage long-term funds have on efforts to realize
a sustainable world. The Group will contribute to the realization of a sustainable society
through investment activities undertaken in consideration of the environment, society andcorporate governance.

Connected social issues and group initiatives to solve themSocial Issues

Promote investments in sustainable
development

80

Primary Stakeholders

Initiatives

Investors/local communities

Performing various ESG investments in accordance with the Principles for Responsible
Investment (PRI), and conducting promotion
aimed at investment targets based on the
Principles for Responsible Institutional Investors

PolicyResults for FY2020

Planned for FY2021

To secure stable long-term
investment income andcontribute to the realizationof a sustainable society
through investment activities undertaken in consideration of the environment,
society and corporate governance, with the aim ofgrowing sustainably in partnership with society•Established the T&D Insurance Group ESG
Investment Policy, which expresses theGroup’s stance towards ESG investment•Continue to make various ESG
investments that contribute to theresolution of social issues and therealization of a sustainable society• Established the ESG Investment Committee
to strengthen support for ESG investment•
Made investments in Green Bonds, which
contribute to solving environmental problems,and Social Bonds, which contribute to measures against the spread of COVID-19, etc.

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1. Responsible Institutional Investor
1–1

Signing of the Principles for Responsible Investment (PRI)

Daido Life, Taiyo Life, and T&D Asset Management have signed the Principles for Responsible
Investment (PRI)*, which is supported by the United Nations.
Taiyo Life
In order to further fulfill its social responsibility as an institutional investor, Taiyo Life determined that it was essential to exert its
influence for the betterment of society and the global environment through investment and lending activities to a greater extent,
and to contribute to the realization of a sustainable society.
In line with this thinking, in March 2007, Taiyo Life became the first Japanese life insurance company to sign the PRI.
Based on these principles, Taiyo Life gives due consideration to ESG issues, namely, environmental (E), social (S), and governance (G) issues, and promotes asset management to achieve a sustainable society.
Daido Life
Daido Life supports the objectives of the PRI and became a signatory institution to them in November 2016. Based on theseobjectives, Daido Life is contributing to the formation of a sustainable society through promoting investing and lending thatconsiders environmental, social and governance (ESG) issues. Specifically, the company is promoting lending and investmentthat aims to supply funds to companies and businesses that contribute to solving climate change and the development of social
infrastructure. The company is also carrying out initiatives regarding asset management that incorporates ESG factors such ascompany analyses of investment processes.
T&D Asset Management
T&D Asset Management, to fulfill its responsibilities of being entrusted as an institutional investor that manages investments,
endorses the concept of the PRI, and signed them in March 2012. In accordance with these principles, T&D Asset Management
tackles ESG issues in a manner consistent with meeting the long-term interests of customers, fully grasping the status of investee
companies. Accordingly, the company is also committed to pursuing the sustained growth of these companies, particularly throughholding constructive dialogues with them and through the exercise of voting rights, with the aim of increasing the medium- andlong-term investment returns on the funds entrusted to it by customers.
The status of each Group company’s PRI initiatives is reported in PRI Transparency Report. Enter the name of the company ofinterest into the search box at the following link:WEB

https://www.unpri.org/searchresults?qkeyword=&parametrics=WVSECTION%7cSignatories* The Principles for Responsible Investment (PRI) are a code of conduct for the global financial industry that was proclaimed by Kofi Annan, the secretary-general of the United Nationsin 2006. A commitment to these principles has been signed by over 4,200 financial institutions worldwide, and by 95 in Japan (as of August 2021).

Principles for Responsible Investment (PRI) Initiatives
Example from Taiyo Life
Principle 1: We will incorporate ESG issues into investment analysis and decision-making processes.
We reflect the PRI approach in our stance on asset management
Taking ESG issues into account is one of Taiyo Life’s stances on asset management, as is clearly stated in our rules for
asset management.
<Our Stance on Asset Management>
1. Under the principle of self-responsibility in management, we will strive to enhance and strengthen such organizations as
our internal control organization by utilizing the function of mutual checks, our risk management organization based on thefinancial environment, etc., and our asset management organization.
2. Based on the nature of the life insurance industry, we aim to promote the interests of policyholders and others, taking socialand public aspects into greater account. Such aspects include strictly refraining from speculative trading, as well as unsoundinvestments and loans.
3. When making investment and financing decisions, we also account for the impact of our actions on domestic and international financial and capital markets. In addition, when investing or financing overseas, we take the local financial andeconomic impacts into account, as well.
4. We also strive to instruct our subsidiaries and other entities with special relationships specified by the Cabinet Office
Ordinance (“subsidiaries and others”) to take social and public aspects into account in their asset management actions.
5. We strive to contribute to the continuous development of society and the financial markets, taking into account issues
regarding the environment, social responsibility, and corporate governance.
6. As a responsible institutional investor, we strive to properly fulfill our duty of stewardship, through means such as constructive dialogue with investment targets.
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Taiyo Life ESG Investment Criteria
Taiyo Life has specified the “ESG Investment Criteria,” in order to promote asset management that considers ESG issues.
The main investment and lending methods based on these criteria are as follows.

1. Integration of ESG Issues into Investment and Financing Processes
ESG Integration
When investing in and financing stocks, bonds and other securities as well as real estate and loans, Taiyo Life incorporates
corporate assessments related to non-financial information such as ESG into the financial information of the recipients of
the investment and financing. In this manner, the company strives to improve the long-term outcomes of the investments,
while at the same time fulfilling our mission based on PRI.
• Integration of ESG assessments into investment and financing decisions
When investing and financing stocks, bonds and other securities as well as real estate and loans, we assess, for example,
that organization’s initiatives relating to ESG and incorporate that into our investment and financing decisions.
• Real estate investment that considers the environment and the senior society
When conducting the new construction or large-scale repair of a real estate property, we investigate and introduce initiatives that are considerate of the environment and the senior society. Moreover, while paying consideration to thebeautification of cityscapes and harmony with the surrounding area, with regard to existing real estate properties as well,from the perspective of giving attention to environmental protection, we conduct continuous environmental initiatives
such as monitoring, for example, the energy efficiency of all properties, both for operations and investments, and taking
energy-saving measures as needed for lighting equipment, air conditioning equipment, etc.
Negative Screening
Taiyo Life manages the insurance premiums collected from our customers, while taking into consideration social and public perspectives, as well as profitability and liquidity. We prohibit investment and financing, in principle, in cases such as
when the recipients are judged to be involved in antisocial behavior, or when an involvement in inhumane weapons* hasbeen confirmed. We also prohibit, in principle, new investment and financing for coal-fired power generation projects.
Furthermore, when an ESG-related scandal or a serious problem with ESG issues, etc. occurs at a business partner or therecipient of investment and financing, we will consider whether or not to invest or provide financing based on these Criteria,
after confirming the situation through direct communication or other methods, as necessary.
* Biological weapons, chemical weapons, and, of weapons whose use is totally prohibited by the Convention on Prohibitions
or Restrictions on the Use of Certain Conventional Weapons Which May Be Deemed to Be Excessively Injurious or to
Have Indiscriminate Effects, those that are sanctioned by the Government of Japan.

2. ESG-Themed Investment and Financing
We are working toward investment and financing in, for example, property involving a theme which enables paying consideration to issues in environment, society, and corporate governance and contributing to the realization of a sustainable society.

Principle 2: We will be active owners and incorporate ESG issues into our ownership policies and practices.
Incorporating the Principles into our standards for exercising voting rights
We clearly state our approach to PRI in our standards for exercising voting rights by signing the PRI.
In this manner, we exercise voting rights based on social and public aspects, as well as our fiduciary responsibility to
our customers, shareholders, and other stakeholders. In addition, we take the ESG perspective into greater account when
exercising voting rights. In this process, we establish internal decision-making processes and a system for reporting tomanagement, and disclose the status of exercising voting rights on the Company website.
Principle 3: We will seek appropriate disclosure on ESG issues by the entities in which we invest.
Adequate disclosure of ESG issues
We strive to practice regular constructive purposeful dialogue (engagement) with our investment targets. In this regard, we
also work to promote an understanding of our response to ESG issues, from the perspective of contributing to the realizationof a sustainable society. At the same time, we seek adequate disclosure, while confirming the response to ESG issues bythese companies.
Principle 4: We will promote acceptance and implementation of the Principles within the investment industry.
Explanation of PRI activities to corporate pension plan and other contract partners
Taiyo Life includes information regarding PRI activities in its disclosure materials regarding corporate pension plans. In addition, as necessary, we explain details regarding our statement of accounts, asset management policy, PRI activity status,
and the like to corporate pension plan and other contract partners.

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Principle 5: We will work together to enhance our effectiveness in implementing the Principles.
Information exchange and collaboration with PRI signatory institutions
We regularly participate in meetings with PRI signatory institutions and related entities, in order to improve acceptanceand implementation of the PRI, and promote our PRI activities more effectively and concretely. We also share best practices and global trends regarding the responsibility to take ESG issues into account in the investment and financing decision-making process. Furthermore, we discuss specific measures to promote the acceptance and implementation of the
PRI, while taking into consideration circumstances unique to Japan.
Principle 6: We will each report on our activities and progress towards implementing the Principles.
Reporting on the status of our PRI activities on our website and elsewhere
We internally and externally disclose details regarding our PRI initiatives, including the history of our signing, on our website, in our disclosure materials, and elsewhere. In terms of the PRI framework, we also report on the status of our PRI
activities for the fiscal year to the PRI Secretariat. This report includes the status regarding building an organization for PRI
activities, as well as incorporating our ESG Investment Criteria in the investment stage.
Promoting an understanding of the PRI internally
Practicing asset management based on the PRI approach requires that everyone involved in asset management understand this approach. Accordingly, we use e-learning and other means to actively learn about the PRI approach, global
trends, and the like.

1–2

T&D Insurance Group ESG Investment Policy

In accordance with the T&D Insurance Group’s Corporate Philosophy, the Group has established the T&D Insurance Group ESG
Investment Policy, which expresses the Group’s stance towards ESG investment.
As an institutional investor, contributing to achieving a sustainable society through investment is one of the most fundamentalroles of the Group.
The Group focuses on the impact that the investment activities of institutional investors have on efforts to achieve a sustainable world. Through investment activities undertaken in consideration of the environment, society and corporate governance,
the Group strives to grow continuously together with society while contributing to ensuring stable, long-term profitability and theformation of a sustainable society.
T&D Insurance Group ESG Investment Policy
The T&D Insurance Group strives to grow continuously together with society while contributing to ensuring stable, long-term profitability and the formation of a sustainable society through promoting investment and financing that considers ESG issues, namely,environmental (E), social (S), and governance (G) issues, in line with the Group’s management philosophy.

1. Investment and financing activities that consider ESG issues
We incorporate ESG issues into the asset management process and make investment and financing decisions that promote our asset
management to achieve a sustainable society.

2. Constructive dialogue on ESG issues with investees
We undertake appropriate stewardship activities that integrate ESG factors, with the aim of improving the corporate value of investee
companies and contributing to resolving social issues.

3. Cooperation in ESG investment and financing and support for the development of a sound market
Through cooperation with Group companies in ESG investment and financing activities and sharing information with industry organizations, we strive to sophisticate the asset management process of ESG investment and financing, and support the sound developmentof its market.

4. Enhancement of disclosure regarding ESG investment and financing initiatives
We will appropriately disclose the status of our ESG investment and financing activities.

1–3

The T&D Insurance Group’s stance on Investment and Financing for Coal-fired
Power Generation Projects

With regard to fossil fuel-related businesses such as coal-fired power generation, we recognize that the consumption of fossil
fuels is one of the major factors driving environmental problems such as climate change and air pollution, and that the attitude of
institutional investors in this sector is more important than ever before.
It is the Group’s policy not to make any new investments or loans to coal-fired power generation projects. However, we may consider investments and loans in cases where the environmental impact of the project will be reduced, for example through the development and application of new technologies for carbon capture and storage (CCS) or carbon capture, utilization and storage (CCUS).

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Examples of ESG Investment and Financing

Taiyo Life, Daido Life, and T&D Financial Life carry out initiatives for the following types of ESG investment and financing.
• Investments in environmental problem solving Green Bonds
We invest in Green Bonds, which financially support various projects by local governments and incorporated administrative
agencies. These projects include working on “Creating Smart Energy Cities” and “Adapting to the Effects of Climate Change,”and promoting the convenience of urban rail, which is expected to be effective in improving the environment, including reducing
CO2 emissions.
• Conducting of green loans
We are endeavoring to conduct financing with the goal of supporting sustainable economic activities from an environmental
aspect. Examples include the promotion of renewable energy, the development of eco-efficient technologies, reduction of theenvironmental burden, and the conservation of biodiversity.
In particular, we have put efforts toward donation-containing green loans which include support for medical organizations
in Myanmar.
• Investment in and financing of renewable energy projects and energy efficiency projects
We have invested in funds for projects that are working to create domestic solar power generation to provide clean energy andhave financed energy efficiency businesses. Through these efforts, we are contributing to the promotion of global warming
countermeasures and the enhancement of energy self-sufficiency ratios.
• Financing of the “Seawater Desalinization Project,” which can contribute to the resolution of water shortages in Australia
We financed a seawater desalinization project aimed at supplying drinking water in a public-private initiative by a state government in Australia. This financing is an initiative to contribute to the creation of social infrastructure in a region suffering fromwater shortages.
• Participation in project financing of “Qualified Project, etc., for Airport Operation of the Seven Airports in Hokkaido,”
which is intended to contribute to regional development and growth
We participated in the joint financing of a project to integrate the operations of the seven airports in Hokkaido, which werepreviously operated by separate entities. This financing is an effort to maximize the role of the airports as a key transportation
hub and contribute to Hokkaido’s further development and growth.
• Investment in “Social Bonds” which contribute to supporting education and employment in developing countries, supporting COVID-19 infection countermeasures, etc.
We are endeavoring toward investment and financing which can contribute to the realization of a sustainable society. Examples
include “Social Bonds” aimed at supporting education and employment in developing countries, supporting COVID-19 infection
countermeasures, etc.
In particular, we are investing in and financing COVID-19 vaccine bonds, educational bonds, and the like.
• Infrastructure financing for the Government of Togo
We provided financing to the Government of Togo with the aim of contributing to Togo’s economic growth and improving its
people’s lives. In West African countries, including Togo, infrastructure development for economic and social development has
become a social issue, and the funds to be raised through this project will be used to improve infrastructure such as ports andother facilities and to expand social welfare in Togo.
• Investment in the “Fund Supporting Good Health,” “Japan Healthy Society Support Fund,” and “Healthy Society
Contribution Fund,” which support projects that contribute to the promotion of human health
We invested in the Fund Supporting Good Health and the Japan Healthy Society Support Fund, with the aim of responding to
the social issue of extending healthy life span. The former is for listed corporations in Japan that conduct businesses such as
pharmaceuticals, healthcare, sports clubs, and health foods that contribute to the promotion of human health, while the latter
supports projects that contribute to the promotion of human health.
• Investment in companies that contribute to the creation of a sustainable society
Taiyo Life and Daido Life invest in the “T&D Japan Equities ESG Research Fund.” The fund selectively invests in companies
with an outstanding ESG performance, through stock selection based on ESG research. T&D Asset Management establishedand manages the fund (management began in July 2015).

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The Principles for Responsible Institutional Investors (Japan’s Stewardship Code)Three of the Group’s companies, Taiyo Life, Daido Life, and T&D Asset Management endorsed and expressed their commitment
to the Principles for Responsible Institutional Investors (Japan’s Stewardship Code) in May 2014. Details regarding the policies ofeach company with respect to the Principles, policy on exercising voting rights, status of exercising voting rights, and self-evaluations are published on the companies’ respective websites (Japanese).
Taiyo Life Insurance Company

https://www.taiyo-seimei.co.jp/company/activity/ssc.html

Daido Life Insurance Company

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

T&D Asset Management Co., Ltd.

https://www.tdasset.co.jp/company/principles/stewardship/* Since T&D Financial Life does not directly invest in listed stocks, the company does not express support for the Stewardship Code.

Policy on Exercising Voting Rights
Taiyo Life, Daido Life
Taiyo Life and Daido Life strive to make voting decisions based not only on formal determination criteria such as financial information, but also on non-financial information such as ESG. They also promote the sustainable growth of investment targets bypracticing regular constructive purposeful dialogue (engagement). Based on this fundamental approach, they exercise their voting rights rigorously, in accordance with criteria (revised continuously in accordance with the economic environment and social
conditions) established to ensure that voting rights are exercised properly. In order to strengthen our governance and conflict ofinterest management structures relating to stewardship activities as a whole, including the exercise of voting rights, we created
a committee on exercising voting rights, which includes outside members.
Main Focal Points for Carefully Examining Proposals, Engaging in Dialogues and Making Voting Decisions
Are dividends to shareholders insufficient or excessive?
Does the investee company face problems in connection with any activities against public order and common decency (willful
tax evasion, collusion, bribery, etc.) and/or antisocial activities such as environmental destruction (actions deemed questionablein light of ESG problems)?
From the standpoint of requesting investee companies to ensure corporate governance is functioning effectively in management, does the investee company present problems in terms of any of the following:• Level of ROE• Number and independence of outside directors• Attendance rate of corporate officers at meetings of the Board of Directors and the Audit & Supervisory Board• Length of service of Audit & Supervisory Board members• Eligible recipients of retirement benefit payments• Eligible recipients and levels of incentive compensation
T&D Asset Management
T&D Asset Management believes that exercising voting rights is an effective means for shareholders to increase the corporate
value of investee companies by giving the shareholders a say in corporate governance, which has a pivotal impact on corporate
management. Based on this belief, T&D Asset Management has clearly codified guidelines in its internal rules for expressing
its voting intentions on proposals put forward to the Ordinary Shareholders’ Meeting. This is to fulfill the company’s fiduciary responsibility as an asset management institution by aiming to maximize shareholder returns. Moreover, T&D Asset Management
carefully examines proposals based on the Guidelines for Exercising Voting Rights.
Main Approaches to Individual Proposals
Selection of Directors and Audit & Supervisory Board Members The re-appointment of a representative director shall be
opposed if it is determined that the stock value is being continuously harmed from the perspective of performance or capitalefficiency, and future improvement cannot be expected. As a rule, outside directors or Audit & Supervisory Board members shallbe opposed in cases in which their independence in the exercise of the expected management oversight functions or audit functions cannot be ensured. Moreover, when a certain number of independent outside directors are not appointed, and the reason
for such is deemed to be invalid, the re-appointment of the representative director shall be opposed. When trust in the company
has been seriously damaged due to executive misconduct or illegal business activities, and corporate performance or stock prices
have been impacted or may be impacted, the relevant directors shall be opposed.
Compensation of Directors and the Audit & Supervisory Board Members/Retirement Benefits Although we are generally
in favor of introducing a performance-linked compensation system, it shall be opposed when it is deemed that payment to outside
directors has a strong incentive factor. As a rule, payment of retirement benefits to outside directors or Audit & Supervisory Board
members shall be opposed.
Stock Options/Stock Compensation System We have set the judgement criteria as whether or not it contributes to an improvement in corporate value as a mid- to long-term incentive.
Capital Policies Judgements shall be made regarding dividends and treasury stock acquisitions, in consideration of businessperformance trends and financial conditions.
Anti-takeover Measures As a rule, we oppose anti-takeover measures.

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Status of Exercising Voting Rights
Taiyo Life, Daido Life
Taiyo Life and Daido Life exercised their voting rights on proposals at Shareholders’ Meetings held between July 2020 and June
2021. Such exercise was conducted after holding dialogues with investment targets as necessary, in accordance with the criteria
for determining the exercise of voting rights.
Status of Exercising Voting Rights
Taiyo Life and Daido Life reject proposals in cases where problems are not rectified despite constructive dialogue, cases where
shareholder value is highly likely to be impaired and in certain other circumstances. The results of voting rights of shares listedon domestic markets exercised at Shareholders’ Meetings held by domestically listed companies between July 2020 and June
2021 are as follows.
Taiyo Life

Daido Life
RejectAbstainCarte
blancheTotal
agenda
items

446

4

0

0

450

40

96

0

0

0

96

0

66

123

3

0

0

126

0

0

34

110

1

0

0

111

0

0

14

33

0

0

0

33

1

0

0

2

5

0

0

0

5

13

0

0

0

13

21

0

0

0

21

12

0

0

0

12

41

0

0

0

41

Appointment of accounting auditors

1

0

0

0

1

1

0

0

0

1

Reconstruction related*

0

0

0

0

0

2

0

0

0

2

Other company proposals*3

3

0

0

0

3

14

0

0

0

14

0

0

0

0

0

1

0

0

0

1

0

6

0

0

6

0

30

0

0

30

182

9

0

0

191

446

34

0

0

480

RejectAbstainCarte
blancheTotal
agendaitems

Approve

182

3

0

0

185

40

0

0

0

Director appointment*

64

2

0

Corporate auditor appointment*1

340Partial change to Articles of Incorporation

14

0

Payment of retirement bonus

1

Change to officer compensation
Issue of stock acquisition rights

Type

Approve

Company proposals
Surplus appropriation
1

2

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

Status of Dialogue
Taiyo Life and Daido Life make efforts to share awareness with investment targets through constructive, purposeful dialogue
based on issues concerning sustainability. Through such efforts, the companies seek to stimulate the improvement of corporate
value and sustainable growth from the mid- to long-term perspective in investment targets such as domestically listed companies
and corporate bond-issuing entities.
Furthermore, in exercising voting rights, Taiyo Life and Daido Life emphasize dialogue with investment targets and endeavor,
through proactive dialogue with those investment targets, to verify the management situation and share the awareness of issues,
as well as to continuously conduct initiatives which contribute to the improvement of shareholder value.
Examples of companies with whom Taiyo Life and Daido Life engaged in dialogue• Companies whose ROE fell below a certain threshold• Companies issuing dividends despite having reported a net loss
• Companies not paying adequate shareholder dividends despite having adequate resources• Companies with substantial doubts regarding the independence of candidates for independent outside director• Companies that proposed the introduction/continuance of anti-takeover measures• Companies whose audit & supervisory board members to be re-appointed had served long terms• Companies paying retirement bonuses to outside directors and Audit & Supervisory Board members who should be monitoring
the status of management• Companies that introduced or increased executive compensation such as granting stock acquisition rights or restricted shares• Companies paying incentive compensation to outside directors and Audit & Supervisory Board members who should bemonitoring the status of management• Companies that have been involved in misconduct or other such incidents

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Self-evaluation
Between July 2020 and June 2021, Taiyo Life and Daido Life performed self-evaluations of the status of implementation of eachof the Principles in this code. The evaluations of both companies determined that activities were carried out steadily, in accordance with the policies on the Principles.
T&D Asset Management
Status of Exercising Voting Rights
T&D Asset Management deliberates and decides upon matters relating to stewardship activities, including the exercise of voting
rights at the Stewardship Activity Committee. The committee is chaired by the Chief Investment Officer, and its membership consists of members in charge of the Investment Management Department and the Legal & Compliance Department, as well as external members. As for the exercise of voting rights, a representative draws up proposals based on the Guidelines for Exercising
Voting Rights, and the chairman makes a determination after taking into account input from the Stewardship Activity Committee.
Reform or abolition of the Guidelines for Exercising Voting Rights is discussed at the Stewardship Committee and reviewed asnecessary. Under these procedures, T&D Asset Management voted against 661 proposals submitted by the companies (8.7% of
the total) between July 2020 and June 2021. In addition, examples of the status of exercising voting rights are provided below.
In proposals for the selection of directors, it opposed the re-appointment of a representative director in the case of a certain
number of independent outside directors not being selected.
In proposals for selection of outside directors or outside Audit & Supervisory Board members, it opposed candidates for whom
it determined that independence could not be ensured. As a specific example, it opposed candidates from major shareholders
and major business partners.
Regarding proposals concerning the Articles of Incorporation, it opposed proposals for which there was a possibility of shareholder profits or rights being limited. Examples included a proposal for the broad expansion of the total number of authorizedshares and a proposal for a change to enable the holding of Shareholders’ Meetings without stipulating locations.
Status of Dialogues
T&D Asset Management uses opportunities such as individual and small meetings with companies to hold constructive dialogues
that promote sustainable growth from such perspectives as business strategy, capital efficiency and shareholder return, and ESG.
In the period between July 2020 and June 2021, meetings were held with 270 companies. Examples of the resulting dialogues
are presented below.
We held a dialogue with a chemical manufacturer regarding the point that while its coal-fired in-house power generation wasa cost-competitive power source, the issue of greenhouse gas emissions was a managerial risk factor. Recently, we saw acertain degree of progress in that we reached a decision for the partial reduction of coal-fired power generation for the in-house
power generation. On the other hand, as some of the equipment for which it was decided power generation capabilities would
be reduced is still present and no drastic measures for greenhouse gas emission reduction have been decided yet, we plan tocontinue dialogues regarding further steps to be taken.
We held a dialogue with a major medical equipment manufacturer regarding business initiatives which would contribute to
the improvement of access to medical care. The company responded that they were advancing the development and salesof a testing device for malaria, one of the world’s three major infectious diseases, which improved on existing devices whichinvestigate the number and function of red blood cells/white blood cells. The company explained that at the current time, thediagnosis of malaria is often conducted using simple testing kits with low accuracy, and that the latent demand for the company’s device was extremely great. We conveyed to the company that we wish to follow up on the development status of the
product in the future, and that we would like the company to consider development of a low-cost device that could be actively
purchased by hospitals in local areas.
We asked a company which provides solutions such as IT equipment and software to strengthen its group management
structure, including subsidiaries, based on a trend of increasing scandals at the group subsidiaries of listed companies. The
company responded that in the past, there had been illicit conduct by an employee at one of its consolidated subsidiaries,
and that as a result, the company had strengthened audit functions within its subsidiaries and increased the number of audits
by its auditing corporation. Furthermore, we confirmed that recently, the company had changed its internal reporting system:
while the system used to be operated solely for the company, this system had been applied to its consolidated subsidiaries as
well, enabling subsidiary employees to utilize shared reporting and consultation desks, steadily advancing the strengtheningof group governance. We conveyed to the company that we wish to follow up on the management situation of such systems
in the future as necessary.

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413-1

1. Basic Concept
1–1

Basic Concept

As a Group engaged in the life insurance business with its highly public and social nature, the T&D Insurance Group implements
a variety of initiatives for social activities and conserving the environment. In addition, the Group supports the volunteer activities
of its employees and gets involved in social programs by partnering with the foundations. As a life insurance group, our ultimate
aim is to achieve sustained growth in step with society in view of our commitment to fulfilling our public mission and meeting oursocial responsibilities. To that end, our efforts focus primarily on “improving health, medical care and welfare” and “developinga sound society.”

2. Improving Health and Welfare (Health, Medical Care, Welfare, etc.)
2–1

Blood Donation Drives

The T&D Insurance Group cooperates with the Japanese Red Cross Tokyo
Metropolitan Blood Center to sponsor blood donation drives. We hold biannual
blood donation drives in the summer and the winter at our head office building,and executives and employees are encouraged to donate blood. In fiscal 2020, a
total of 272 people in the Group donated blood during the drive.

2–2

Friends of Taiyo Life Goodwill Circles

The Friends of Taiyo Life Goodwill Circles (“Friends”), which was established in December 2005 and is composed of executives and employees from Taiyo Life and its affiliates, has 8,235 members as of March 31, 2021. In order to support social
contribution activities on a monthly basis, the members contribute any fractions less than one hundred yen from their takehome salary. At present, the Friends mainly provides supports for local community-based social contribution activities driven
by branches nationwide and head office departments, environmental conservation activities in cooperation with NPOs and thelike, and educational support. Details of the activities are posted in Taiyo Life’s in-house journal, through which the company iscalling for broader participation by executives and employees in the activities.
Major Activities in FY2020• Support for the Japan Down Syndrome Society• Environmental conservation activities in Taiyo Seimei no Mori (the Forests of Taiyo Life)• Collection and donation of CDs and DVDs, used books, PET bottle caps, and other items

2–3

Daido Life Employees’ Community Contribution Club

Established in 1992, the Daido Life Employees’ Community Contribution Club is a voluntary activity organization composed of
Daido Life’s executives and employees; it works to promote and support fund-raising activities and volunteer activities. The clubhas held a One-day Outing Volunteer Activity for the Physically Disabled since 1994, which is run by executives and employees
taking volunteer work leave (the activity was cancelled in 2020 due to COVID-19). The club provides participants with opportunities to deepen their understanding of disabilities by directly interacting with disabled people, for example by assisting wheelchairusers or providing walking assistance.
Major Activities in FY2020• Fundraising and donations: Donations from executives and employees and revenues from the charity calendar exhibitions were used to make contributions tosocial welfare organizations, as well as to facilities for the disabled affected bynatural disasters such as the Heavy Rain Event of July 2020.
• Volunteer activities: The club provided operational and other support for a music
concert played by persons with disabilities.
• Other activities: Used postage stamps and other items collected from branches
nationwide were donated to organizations that support social contribution activities, for the benefit of international medical cooperation; the club also madedonations to UNICEF through the collection of plastic bottle caps.

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Management
ControlSupporting the Japan Down Syndrome Society

Third-party
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Taiyo Life

Taiyo Life and members of Taiyo Life Goodwill Circles (“Friends”) support the Japan Down
Syndrome Society.
Main Activities• Support activities as a supporting member of the association.
• Provide Taiyo Life conference rooms for use as venues for seminars held by the association and for meetings of its Board of Trustees and Board of Directors.
• Participation of the corporate officers and employees of branches and head office departments as volunteers at association activities.

2–5

The Daido Life Welfare Foundation

Purpose of Establishment
Established by Daido Life in 1974, the foundation aims to contribute to the promotion of public health and welfare. It provides
grants to research on health problems arising from worsening living conditions and various issues associated with the sharp
increase in the elderly population.
Main Activities
Subsidies for Regional Health and Welfare Research and Volunteering• Subsidies for regional health and welfare research: The foundation subsidizes research relating to community health, medical care, and welfare, which are carriedout by public health and welfare professionals with close ties to local communities.
• Subsidies for volunteer activities by seniors: The foundation subsidizes volunteer
exchange activities that promote the development of healthy minds in children
and the welfare of the elderly and persons with disabilities, which are conductedby groups of people aged 60 and older.
• Subsidies for volunteer activities by business people: The foundation subsidizes volunteer exchange activities that promote thedevelopment of healthy minds in children and the welfare of the elderly and persons with disabilities, which are conducted bygroups of people working at a company or other organization on their days off.
Cumulative Grants from Establishment in 1971 to FY2020 4,241 grants; 1,683.57 million yen
Publication of the “Environment and Health” Series Brochures
The foundation publishes the “Environment and Health” series of compact brochures, which contain articles written by expertson the environmental, health, and welfare issues of high public interest; a total of 74 brochures have been published thus far. To
ensure that these brochures are accessible to as many people as possible, recent editions have been digitized and made publicly
available on the foundation’s website free of charge.
Home Care/Nursing Consultation and Workshop
The foundation has made DVDs depicting scenes from practical workshops available for rent free of charge.

2–6

The Taiyo Life Welfare Foundation

Purpose of Establishment
Established in 1984 to commemorate the 90th anniversary of the founding of Taiyo Life. This foundation works to improve social
welfare in Japan by sponsoring the projects to enhance welfare of the elderly and the disabled.
* In December 2009, when the foundation was authorized as a public interest corporation, the name of the foundation was changed from Taiyo Life Himawari Foundation to the Taiyo
Life Welfare Foundation.

Main Activities• Project grants:	Grants to the projects by volunteer groups working to contribute to the welfare of the elderly, the disabledliving at home, and those with dementia.
• Research grants:	Grants for study and research regarding healthcare and medical care for the elderly and lifestyle diseases andwelfare of the elderly.
Cumulative Grants from Establishment to FY2020 2,249 grants; 1,298.83 million yen
Main Activities in FY2020
In order to fulfill its mission of improving social welfare, in fiscal 2020, the foundation continued providing grants to projects
undertaken by volunteer groups working resolutely to enhance the welfare of local communities; it also subsidized study andresearch programs related to the welfare of the elderly.
In fiscal 2020, the foundation offered grants worth 19.42 million yen to 59 volunteer/NPO projects, and grants worth 2.62
million yen to six research projects; in total, the foundation provided 65 grants worth a combined 22.04 million yen.
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3. Developing a Sound Society (Education, Sports, Local Community Contribution, etc.)
3–1

Nationwide Clean Campaign

Taiyo Life

Taiyo Life is active in cleanup efforts nationwide, an activity that contributes to the
local community. We have cleaned up the areas around our headquarters each year
since 1982. Since 2004, we have conducted cleanups around our branches nationwide as part of the “Nationwide Clean Campaign,” from as far north as Hokkaido
to as far south as Okinawa. Our employees are united in their commitment to contributing to society and conduct the cleanups as a way to thank local communities
for their long-standing support.

3–2

Sponsorship of the Japan Junior High School Rugby Football Tournament Taiyo Life

Since fiscal 2011, Taiyo Life has been a special sponsor of the Japan Junior High School
Rugby Football Tournament (Taiyo Life Cup) hosted by the Japan Rugby Football Union(JRFU). Taiyo Life chose this sponsorship in sympathy with the basic spirit of Rugby,”
all for one, one for all” which is common to the basic principle of life insurance. At
the same time, Taiyo Life agrees with the objective of the tournament, which can besummarized as “helping young rugby players and other youth to develop the quality
and skills necessary for shaping a sound society.” Accordingly, we are extending our
support for the sound development of young people through the promotion of juniorhigh school rugby competitions in Japan in cooperation with the JRFU.

3–3

Supporting Sports for People with Disabilities Daido Life

The inaugural National Sports Games for People with Intellectual Disabilities* washeld in 1992, when Daido Life celebrated its 90th anniversary. The company has
been a special sponsor of the National Sports Festival for People with Disabilities
every year since.
* In 2001, the National Sports Games for People with Intellectual Disabilities was integrated with the National Sports
Games for People with Physical Disabilities to become the National Sports Festival for People with Disabilities.

Every year, Daido Life sets up a company booth in the Fureai Hiroba (Get-Together
Plaza), a venue for interacting with participating athletes; executives and employees
from Daido Life, Taiyo Life, and other affiliated organizations work as volunteers to
support this event. The 20th National Sports Festival for People with Disabilities wasscheduled to be held in Kagoshima Prefecture in 2020, but was postponed to 2023 due to COVID-19.
We have been official partners of the Japanese Para Sports Association since January 2015 and of the Japan Para Archery Federation
since January 2018. In our capacity as a partner, we work to further popularize and develop sports for persons with disabilities.

3–4

Official Partner Agreement Concluded with Japan Deaf Football Association (JDFA)
T&D Financial Life Insurance

T&D Financial Life Insurance signed an official partner agreement with the Japan
Deaf Football Association in June 2018. As an official partner, T&D Financial
Life will contribute to the development and spread of deaf soccer and futsal, by
supporting the activities of the Japan national deaf soccer and futsal teams, andpromoting sports for persons with disabilities.

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The GDH Together Movement Daido Life

Daido Life established the GDH Together Movement in fiscal 2017 as a company-wide regional and social contribution initiative.
In fiscal 2020, the theme of the initiative was reducing single-use plastic waste.
Divisions at head office and branches throughout Japan promoted community-based cleaning and recycling activities, made donations to developing countries,and engaged in various activities aimed at contributing to SDGs.
* GDH (Gross Daido Happiness) measures the satisfaction levels of all Daido Life stakeholders.

3–6

Endowed Open Courses at Universities Daido Life

Daido Life began endowing annual open courses at universities in fiscal 2002, aspart of its centenary celebrations. With topics combining theory and practice, thecourses provide managers of small and medium-sized enterprises (SMEs) and theirsuccessors with opportunities for acquiring knowledge and skills relevant to management and business.
Since their inception, the courses have been attended by more than 15,400
people and have been extremely well received. In fiscal 2020, courses were held
online at Kansai University and the Hito wo Taisetsu ni Suru (Taking good care ofpeople) Institute of Business Administration.

3–7

The Daido Life Foundation

Purpose of Establishment
Established by Daido Life in 1985, the foundation seeks to promote international mutual understanding through cultural exchanges with or grants to other countries and thus contribute to the internationalization of Japan.
Main Activities
Presentation of Daido Life Foundation Awards for Area Studies
The foundation seeks to encourage academic research related to various regions around the world; to this end, it presents Daido
Life Foundation Awards for Area Studies and Daido Life Foundation Encouragement Awards for Area Studies to researchers who
have achieved superior results in area studies. Daido Life Foundation Area Studies Special Awards are presented to individuals
who have made distinguished contributions to deepening international mutual understanding.
Translation and Publication Activities
In order to help Japanese people deepen their understanding of the history, culture, and customs of other Asian countries, the foundation undertakes translationsof modern literature published in the region; thus far, a total of 76 works from 14
countries have been translated into Japanese for publication and donated to universities and public libraries across Japan. Since fiscal 2012, the foundation has digitized these publications and made them available on their website free of charge,
with a view to increasing readership of these works.
The foundation also translates Japanese literature into various other Asian languages, in a bid to help people in the region to develop a better understanding ofJapan. A total of 46 Japanese works have been translated for publication in eight
countries and donated to local universities and libraries.
Educational Support Activities
The foundation provides support for improving educational awareness in Southeast Asian countries; it has sponsored 20 school
construction projects in 5 countries and donated books and school supplies as part of its efforts to establish learning environments. In recognition of its contributions to education over many years, the foundation was awarded the Third Order of Labor
Merit by the government of Laos in February 2013.

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Index

Hosting Internship Program Daido Life

Daido Life provides college students with internship opportunities, so they candeepen their understanding of the life insurance business.
In fiscal 2020, the program was held both in person and remotely and attracted many participants from across Japan. The introduction of “online branch
visits” helped create opportunities for participants to communicate with manydifferent Daido Life employees.
The program gives students the chance to visualize themselves at work, toconsider whether they are suited to working in the life insurance business, andthus to map out future career paths.

3–9

Support for Areas Affected by Disasters

When a major disaster occurs, the T&D Insurance Group and its Group companies provide support that includes making
contributions to disaster relief funds and cooperating with recovery work.
Shortly after the Great East Japan Earthquake, the Group promptly dispatched its executives and employees to theaffected areas. There, they participated in volunteer activities such as removing rubble, bringing in relief goods, andrebuilding individual homes and temples/shrines.
In response to the Heavy Rain Event of July 2020, the Group made donations to aid reconstruction work in disasterareas and to support people affected by the disaster.

3–10

S upporting the Studies of Ambitious and Capable Students(donations to the Japan Student Services Organization)

In July 2020, T&D Holdings made donations to the Japan Student Services Organization (JASSO) to help ensure that the young
people who represent Japan’s future do not give up on continuing their education for financial reasons, such as the sudden fall inhousehold incomes in the wake of COVID-19.
JASSO provides equal study opportunities to all students. It also offers comprehensive support for all manner of student
support projects, with the goal of encouraging international exchanges and helping students with disabilities attend universities
and other forms of higher education.
T&D Holdings plans to continue making donations from fiscal 2021 onward, to support the studies of ambitious and capable students.

3–11 Daido Life Survey Daido Life
Since October 2015, Daido Life has been conducting the Daido Life Survey, a monthly survey that collects the opinionsof the managers of SMEs on such matters as business confidence and management issues.
Thus far, Daido Life sales representatives have visited a total of approximately 12,000 SMEs across the country
to hear the unfiltered opinions of their business owners. Survey reports are sent to customers across Japan and also
made available to the general public.

Daido Life website[Daido Life Survey]

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VIII Governance and Internal Control

103-2

103-3

1. Corporate Governance102-18405-1

1–1

Basic Concept of Corporate GovernanceThe basic concept of corporate governance at the T&D Insurance Group is to pursue an efficient and transparent business
management structure capable of implementing flexible and united Group management. Based on this concept, T&D Holdings
determines the Group’s business strategies, adequately allocates management resources and sets capital policies. In addition,
T&D Holdings properly identifies the business risks of its six direct subsidiaries centered on the three life insurance companies,
together with T&D United Capital, T&D Asset Management, and Pet & Family Insurance, to create a system for supervisingGroup management by thoroughly managing revenues and risks for the entire Group. Meanwhile, the subsidiaries, which havetheir own business strategies, develop marketing strategies leveraging their strengths and conduct business operations autonomously, thereby increasing the Group’s corporate value. In this way, the Group is committed to management that clarifies therespective roles and responsibilities of T&D Holdings and its direct subsidiaries.
For details about corporate governance, please see the Report Regarding Corporate Governance that T&D Holdings submitted to the Tokyo Stock Exchange. (Japanese)WEB

https://www.td-holdings.co.jp/en/company/governance/

2–1

Outline of Corporate Governance Framework

T&D Holdings shall make decisions on important business matters and oversee the execution of business through its Board of
Directors. The Company has adopted a “company with an Audit and Supervisory Board” system, and the Company shall audit theperformance of directors’ duties through its Audit and Supervisory Board, which is independent of the Board of Directors. In addition,
an executive officer system has been instituted to further strengthen business execution, and by clarifying oversight and execution
responsibilities, the governance function of the Board of Directors is reinforced. Furthermore, T&D Holdings has established a
Nomination and Compensation Committee as an advisory body to the Board of Directors. The Committee deliberates on the fairness
and appropriateness of the appointment, dismissal, succession planning, and compensation of directors and executive officers,
thereby strengthening the corporate governance framework of T&D Holdings and the Group by ensuring the transparency of management and enhancing accountability. In addition, an Executive Management Board has been established to deliberate and resolve
important matters related to the management of T&D Holdings and the management control of the Group. In parallel, the Group
Strategy Board has been established to deliberate matters related to the Group's growth strategy and other relevant and importantmatters from the perspective of the Group as a whole, in order to achieve a sustainable improvement in the Group's corporate value.
Corporate Governance Framework (June 2021)
Shareholders’ Meeting
Appointment
Dismissal

Nomination and Compensation Committee

ReportingOpinions
submitted

Appointment
Dismissal

Appointment
Dismissal

ReportingBoard of Directors
Auditing

Group Compliance Committee

Audit andSupervisory Board

ReportingAssess the relevance ofthe financial audit

Audit and Supervisory
Board OfficeGroup SDGs Committee

Cooperating

ReportingPresident

Instruction
ReportingInstruction

Executive Management Board

Group Strategy Board

Group Risk Management
Committee
Group
Planning
Department

ERM
Strategy
Department

Business
Development
Department

Group Finance& Accounting
Department

External
auditing

Group Management Promotion
Committee
SocialCommunication
Department

GeneralAffairs
Department

Risk
Management
Department

Independent Accounting Auditors

Group ERM Committee

Internal Internal Auditing
auditing
Department

Each department
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Corporate Governance Framework

Shareholders’ Meeting
The Shareholders’ Meeting is the highest decision-making entity of T&D Holdings. At the meeting, reports are made on theGroup’s business and consolidated/non-consolidated financial statements for the fiscal year. Resolutions are made on important
issues, which are stipulated in laws and ordinances and the Articles of Incorporation, such as the appropriation of retained earnings and election of officers. The Ordinary Shareholders’ Meeting is held in June once in every year.
Board of Directors
Roles and Responsibilities
The Board of Directors of T&D Holdings shall make decisions on important business matters and oversee the execution of business in accordance with laws and ordinances, the Articles of Incorporation, and the Company's relevant rules. In addition, as acompany with an Audit and Supervisory Board, some important business execution decisions are delegated from the Board of
Directors to the directors by resolution of the Board of Directors pursuant to the provisions of the Articles of Incorporation. By
doing so, the Company aims to separate management and oversight from business execution in order to further strengthen the
management function (deciding on management policies and overall strategy) and oversight function of the Board of Directors
and promote greater agility and efficiency in business execution. The Board of Directors met 16 times in fiscal year 2020.
Composition
The number of directors (excluding directors serving as Audit and Supervisory Board members) shall be no more than 9, and thenumber of directors serving as Audit and Supervisory Board members shall be no more than 5, as stipulated by the Articles ofIncorporation. The Board of Directors shall be made up of individuals representing a balance of knowledge, experience, and skills.
They shall have diverse backgrounds as befitting the expansive range of business domains in the life insurance business, which isthe core business of the T&D Insurance Group. In addition, T&D Holdings shall appoint two or more directors (excluding directors
serving as Audit and Supervisory Board members) who concurrently serve at T&D Holdings and its directly owned subsidiaries.
This shall be done from the standpoint of facilitating adequate communication and prompt decision-making within the Group,
along with bolstering Group-wide governance.
Furthermore, the Company shall appoint five outside directors with extensive experience and knowledge in their capacity as
outside corporate managers, legal experts, accounting professionals, and so forth. The opinions of outside directors are properlyreflected in the Group’s management policies and development of internal controls and other systems, as well as in the oversightof business execution. Outside directors shall be designated as independent officers who have no conflicts of interest with general shareholders and who fulfill the standards of independence set by the Company and the Tokyo Stock Exchange.
Chairperson of theBoard of Directors

President

Directors

12

Men

11

Women

1

Outside directors

5 (including one woman)

Activities ofoutside directors(Fiscal 2020)

For its outside directors, the Company appoints attorneys who are familiar with corporate legal affairs,
corporate managers with experience, such as partners in foreign-owned consulting firms, and individuals
with experience in corporate management, such as through service as a certified public accountant or
representative of a financial holding company. These directors express their opinions as necessary at theBoard of Directors meetings, while drawing on their expertise and wealth of knowledge and experience.
Additionally, as the chair or members of the Nomination and Compensation Committee, which is an advisory body to the Board of Directors, they deliberate on matters including the appointment, dismissal, andcompensation of directors and executive officers of T&D Holdings and its directly owned subsidiaries, andreport the results of such deliberations to the Board of Directors, while expressing their opinions as necessary. Activities also include regular exchanges of views with the representative directors, the accounting
auditors, the heads of the departments under their supervision, and the presidents of major subsidiaries.

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

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Summary of Evaluation of Effectiveness of the Board of Directors as a Whole in Fiscal 2020
1. Scope

T&D Holdings conducted an analysis and evaluation of the Board of Directors based on self-evaluations(questionnaires) and interviews of directors and other means. These efforts related to the effectiveness of
the Board of Directors as a whole (including the non-statutory Nomination and Compensation Committee)
in fiscal 2020. (T&D Holdings transitioned to a company with an Audit and Supervisory Board in June 2020.)
Functioning
Composition
Overall evaluation

2. Areas Evaluated (5)Operation

Provision of information to outside directors

3. Overall Evaluation

The Company has determined that its Board of Directors has generally fulfilled its roles and duties effectively overall. This was achieved by such means as enhancing initiatives prior to Board discussions
and improving its operation.

4. Status of Improvementof Issues from Previous
Evaluation

The items recognized as issues in the fiscal 2019 evaluation have, for the most part, been improved. Those
items included the further enhancement of discussions on the Group’s management strategy from the perspective of integrated Group management, further deliberations on agenda items of the Nomination andCompensation Committee, and creation of concise and easy-to-understand materials and explanations.

5. Issues from Current
Evaluation and Future
Initiatives

Regarding the development of a framework for enhancing the effectiveness of the Board of Directors, theCompany continues to recognize the necessity for improvement. For example, we will continue to work on
strengthening the functions of the Nomination and Compensation Committee, ongoing consideration of thecomposition of the Board of Directors, further description of information necessary to deepen discussions at
the Board of Directors meetings, preparation of easy-to-understand materials that focus on key points, andefficient management of the Board of Directors meetings. Based on this effectiveness evaluation, we will
work on further enhancing the oversight function and the decision-making process of the Board of Directors.

Audit and Supervisory Board
The Audit and Supervisory Board, as an independent body entrusted by shareholders, performs such roles and responsibilities
as auditing the performance of the duties of directors in accordance with laws and ordinances, the Articles of Incorporation, andthe Company’s relevant rules. In accordance with its audit plans, the Audit and Supervisory Board exchanges opinions with theaccounting auditors, inspects and examines important documents, and conducts other audits aimed at verifying the Company’s
internal control system. In addition, the Audit and Supervisory Board members attend important meetings of T&D Holdings, including the meetings of the Board of Directors, and audit the directors' performance of their duties. In fiscal 2020, the Audit andSupervisory Board met 14 times (Of which, Audit & Supervisory Board met 6 times before transitioning to a company with an
Audit and Supervisory Board by resolution of the 16th Ordinary General Meeting of Shareholders on June 25, 2020).
Audit & Supervisory
Board members

5

Men

4

Women

1

Outside Audit &Supervisory Board
members

3 (including one woman)

Activities of Outside Audit
and Supervisory Board
members(Fiscal 2020)

Outside directors serving as Audit and Supervisory Board members make necessary statements as appropriate at meetings of the Board of Directors and the Audit and Supervisory Board based on their wealth ofexperience and insight as legal experts, accounting experts, and individuals with experience in corporate
management. In addition, their activities include exchanges of views with the representative directors, theaccounting auditors, and the heads of the departments under their supervision, as well as the presidents
of major subsidiaries and the Audit & Supervisory Board members of each Group company.

Selection of Directors
Process
Candidates for directors are reviewed by the Nomination and Compensation Committee and appointed by the Board of Directors.
Candidates for directors who are Audit and Supervisory Board members are subject to approval by the Audit and Supervisory Board.
Criteria
Directors are primarily required to have sufficient knowledge and experience to oversee the management of T&D Holdings in aproper, fair, and efficient manner, and to have earned the trust of society. In addition to the requirements set forth above, outside
directors must satisfy the independence criteria established by the Company and the Tokyo Stock Exchange and must be recognized as being free from the risk of any conflicts with the common interests of shareholders.
Executive Compensation
1. Executive Compensation System (Fiscal 2020)(1) Policies Concerning the Determination of Executive Compensation
In its Basic Policy on Corporate Governance (henceforth, “the Policy”), T&D Holdings has established the policies regarding executive
compensation enumerated below. The Policy may be amended or repealed by the Board of Directors of T&D Holdings at its discretion.
The executive compensation system and compensation amounts shall be designed to function as a sound incentive for theGroup to enhance its performance and corporate value over the medium- to long-term. The compensation of directors (excluding outside directors and other part-time directors and directors serving as Audit and Supervisory Board members) shall consistof monthly compensation and bonuses that vary according to their roles and performance and trust-type stock compensation
which delivers Company shares and utilizes a trust structure (non-residents of Japan are ineligible).
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 o ensure that director compensation functions as a sound incentive, appropriate payment ratios shall be set for each type of compensation.
TCompensation amounts shall be set according to the duties and responsibilities of each position, and a mechanism shall be in place
under which monthly compensation and bonuses are linked to business performance and other factors and fluctuate accordingly.
Compensation for part-time directors, including outside directors, and directors serving as Audit and Supervisory Board members shall consist of monthly (fixed) compensation.
Monthly compensation and bonuses of each director shall be calculated based on the compensation table determined by the Boardof Directors and each director’s individual evaluation within the limit established by the resolution of the Shareholders’ Meeting,and through a resolution of the Board of Directors, finalized by the President after deliberations among representative directors.
Individual officer evaluations shall be conducted based on the evaluation of corporate performance and the evaluation of
the division the officer is in charge of in accordance with the evaluation criteria established by the Board of Directors. The
evaluation results shall be deliberated at the Nomination and Compensation Committee, and then finalized by the President
after deliberations among representative directors
In order to clearly evaluate the degree of achievement toward corporate performance, the evaluation of corporate performanceshall use multiple key performance indicators determined based on the Group's medium- to long-term management strategies.
The key performance indicators shall be calculated by multiplying coefficients according to their achievement rates in each item.
As for the evaluation of the division the officer is in charge of, points are calculated for each division based on the achievement status of the execution plan in each division, among other factors.
The scores of the evaluation of corporate performance and the evaluation of the division the officer is in charge of shall becomputed as a weighted average, where the weights are determined according to the responsibilities of each position.
In the case of representative directors, the evaluation of corporate performance shall be weighted 100%.
Trust-type stock compensation shall be granted annually to directors (excluding outside directors and other part-time directors,
directors serving as Audit and Supervisory Board members, and non-residents of Japan) within the limits established by the
resolution of the Shareholders’ Meetings based on points allotted in accordance with position.
The monthly compensation of individual directors serving as Audit and Supervisory Board members shall be decided in consultation with the directors serving as Audit and Supervisory Board members within the limit established by the resolution of
the Shareholders’ Meeting.
Monthly compensation shall be paid in cash monthly and the bonuses shall be paid in cash annually. Trust-type stock compensation is based on the accumulated points granted, and is delivered in the form of Company shares and monetary payments
upon retirement.
With respect to trust-type stock compensation, T&D Holdings shall not deliver Company shares or provide monetary benefits
to any director who, prior to the date of determination of beneficiary rights, has committed an act of misconduct (e.g., significant
neglect of duties, violation of laws and regulations, leakage of confidential information, etc.) as determined by the Company. If
the grantee engages in misconduct after the date of determination of beneficiary rights, moreover, the Company can seek a reimbursement amount, obtained by multiplying the calculated number of basic shares by the calculated stock price.
(2) Composition of Compensation
T&D Holdings has designed its compensation system and compensation amounts to function as a sound incentive for the Group toenhance its performance and corporate value over the medium- to long-term. The total compensation of directors (excluding outside
directors and other part-time directors and directors serving as Audit and Supervisory Board members) shall consist of monthly compensation and bonuses that vary according to their roles and performance, and trust-type stock compensation which delivers Company
shares and utilizes a trust structure (non-residents of Japan are ineligible). The Company regards corporate performance-linked compensation as not suitable for part-time directors, including outside directors, who are independent from the execution of business, anddirectors serving as Audit and Supervisory Board members (Audit & Supervisory Board members before the transition to a company
with an Audit and Supervisory Board). Therefore, a fixed amount of compensation is paid.
Compensation
type

Payment
periodMonthlyMonthly
compensation

Bonus

YearlyTrust-type
At thestock
time ofcompensation retirement96

How the amount of executive compensation, etc. is calculated for each individual officer

Payment
methodThe Board of Directors has adopted a resolution that monthly compensation and bonuses
shall be set based on the amounts calculated from the compensation table determined by
the Board of Directors and each officer’s individual evaluation within the limit establishedby the resolution of the Shareholders’ Meeting and then finalized by Hirohisa Uehara, ourCompany President, after deliberations among representative directors.
Monetary
Individual evaluations for each officer shall be conducted based on the evaluation of payment
corporate performance and the evaluation of the division the officer is in charge of in accordance with the evaluation criteria established by the Board of Directors. The evaluation
results shall be deliberated at the Nomination and Compensation Committee and then finalized by the President after deliberations among representative directors.
Trust-type stock compensation shall be granted to directors (excluding outside directors
and other part-time directors, directors serving as Audit and Supervisory Board members,
and non-residents of Japan) in accordance with the compensation table determined by the
Board of Directors based on points allotted in accordance with position.
At the time of retirement from the Company, officers receive shares and monetary
payments in accordance with the accumulated points.
The system also has malus and clawback provisions.*

70%
stock
30%
monetary
payment* Malus and clawback provisions
The trust-type stock compensation system stipulates that if a grantee engages in an act of misconduct (e.g., significant neglect of duties, violation of laws and regulations, leakageof confidential information, etc.) as determined by the Company prior to the date of determination of beneficiary rights, the grantee shall not receive the Company’s shares or theproceeds of the sale of such shares. If the grantee engages in misconduct after the date of determination of beneficiary rights, moreover, the system stipulates that the Company
can seek a reimbursement amount, obtained by multiplying the calculated number of basic shares by the calculated stock price.

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OpinionIndex(3) Reasons for delegating the decision on the amount of executive compensation (monthly compensation and bonuses)
for each individual officer to the President
Our Company President, Hirohisa Uehara, oversees and supervises the Company's overall performance and business execution, andis a member of the Nomination and Compensation Committee, an advisory body to the Board of Directors. This makes him the mostsuitable person for determining the amount of executive compensation (monthly compensation and bonuses) for each individual officer based on, among other factors, their individual evaluations as deliberated on by the Nomination and Compensation Committee.
(4) Involvement of the Nomination and Compensation Committee and the Board of Directors
T&D Holdings established the Nomination and Compensation Committee in January 2015 as an advisory body to the Board of
Directors to deliberate on the fairness and appropriateness of the appointment, dismissal, succession planning, and compensationof directors and executive officers, as well as to strengthen the corporate governance framework of T&D Holdings and the Groupby ensuring the transparency of management and enhancing accountability. The Committee consists of the President and outside
directors, and a majority of its members are assigned from outside directors to ensure independence, objectivity, and accountability.
Furthermore, the chair of the Committee is chosen out of the outside directors by mutual vote of the Committee’s members.
The Nomination and Compensation Committee deliberates on important decisions and changes related to the treatment of
directors and executive officers of T&D Holdings and its directly owned subsidiaries, reports the results of such deliberations
to the Board of Directors, and offers its opinions as necessary. Monthly compensation and bonuses are decided based on theindividual evaluations of each officer, which are decided through deliberations by the Nomination and Compensation Committee,
and the compensation table determined by the Board of Directors, among other factors.
In fiscal 2020, the Nomination and Compensation Committee deliberated on, among other topics, the results of fiscal 2019 evaluations of directors and executive officers, which serves as the basis for determining the compensation of individual officers; the resultsof fiscal 2019 evaluations of representative directors of directly owned subsidiaries; and the establishment of a maximum amount ofcompensation for directors not serving as Audit and Supervisory Board members. In addition, the Board of Directors has decided on
the results of the corporate performance evaluation for fiscal 2019, among other matters.
(5) How to calculate the evaluation of corporate performance and the evaluation of the division the officer is in charge of
The weightings of the evaluation of corporate performance and the evaluation of the division the officer is in charge of are set according to the responsibilities of each officer in accordance with the criteria established by the Board of Directors and used to computea weighted average. In the case of representative directors, the evaluation of corporate performance shall be weighted 100%.
<Calculation methods>

Corporate performance
evaluation(see (6) for the key
performance indicators)• In order to clearly evaluate the degree of achievement toward corporate performance, multiple
key performance indicators determined based on the Group's medium- to long-term management strategies shall be used, along with an evaluation of corporate performance indicator,
namely total shareholder return.
• Key performance indicators are calculated by multiplying coefficients according to their achievement rates in each item.
• Total shareholder return is calculated based on actual results and the degree of deviation from abenchmark of listed life insurance companies.

Evaluation of division in
charge• Points are calculated for the division the officer is in charge of based on the execution plan achievement status of each division, among other factors.

(6) Key Performance Indicators for Corporate Performance Evaluations (Performance-Linked Indicators) <FY2020>
Key performance indicators for evaluating the corporate performance are shown below.
TargetValue of new businessCorporate value (Group MCEV)Group adjusted profit

ActualAchievement ratio¥86.3 billion¥143.4 billion

166.1%¥2,761.0 billion¥3,377.6 billion

122.3%¥70.0 billion¥77.9 billion

111.2%

The actual total shareholder return is 166.5% over one year and 155.1% over five years.
(Note) The total shareholder return is calculated as follows.
• Single year: (Share price at the end of FY2020 + Dividend per share for FY2020 / Share price at the end of FY2019)• Five years: (Share price at the end of FY2020 + Cumulative total dividends per share from FY2016 to FY2020) / Share price at the end of FY201597Organizational
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Third-party
OpinionIndex(7) Payment Ratio of Compensation by TypeWith regard to the composition of compensation for the Company's officers, the ratio between performance-linked compensation(monthly compensation and bonuses) and trust-type stock compensation has been set to ensure that it functions as a sound incentive
for improving medium- to long-term performance and increasing corporate value. Monthly compensation, which is performance-linked
compensation, shall vary within a range between approximately 57% and 74% of the total compensation, commensurate with the duties of each position, while bonuses shall vary within a range between approximately 14% and 21%, and trust-type stock compensation
shall vary within a range between approximately 10% and 22%.
Monthly compensation shall be a variable amount within the range between approximately 95% and 105% of the standard evaluation, depending on the individual evaluations of each officer. Bonuses shall be a variable amount within the range between approximately 60% and 140% of the standard evaluation, depending on the individual evaluations of each officer.
Compensation composition ratios

Performance-linked compensation
Monthly compensation approximately
57% and 74%

Stock compensation
Trust-type stock compensation
approximately
10% and 22%

Bonus approximately
14% and 21%(8) Reasons for the Board of Directors’ determination that the details of individual compensation of directors for the current fiscal year are in line with the Policy
The Board of Directors confirms that the individual compensation details were calculated based on the compensation table determinedby the Board of Directors and the individual evaluation of each director as deliberated by the Nomination and Compensation Committee,
and judges that this calculation is in line with the Policy.
(9) Disclosure of Total Amount of Compensation by Officer Category and Type of Compensation
Monthly compensation

Reserve for bonus

Category

Trust-type stock compensation(the Board Incentive Plan
Trust)

Total amount ofcompensation

Number ofAmountNumber ofAmountNumber ofAmountNumber ofAmountpersons paid (million yen) persons paid (million yen) persons paid (million yen) persons paid (million yen)
Directors not serving as Audit and Supervisory
Board members(excluding outside directors)
Directors serving as Audit and Supervisory
Board members(excluding outside directors)
Audit & Supervisory Board members (excluding
outside Audit & Supervisory Board members)
Outside directors not serving as Audit andSupervisory Board members
Outside directors serving as Audit andSupervisory Board members
Outside Audit & Supervisory Board members
Total

10

153

4

42

4

45

10

241

2

44

0

—

0

—

2

44

2

13

0

—

0

—

2

13

4

22

0

—

0

—

4

22

3

27

0

—

0

—

3

27

2
23

4
266

0
4

—
42

0
4

—
45

2
23

4
354

• The monthly compensation and bonus reserves of directors (excluding outside directors and other part-time directors and directors
serving as Audit and Supervisory Board members) constitute performance-linked compensation, and the trust-type stock compensation constitutes non-monetary compensation. The total amount of performance-linked compensation for directors not serving as
Audit and Supervisory Board members (excluding outside directors and other part-time directors) (7 people) is ¥167 million, and thetotal amount of non-monetary compensation is ¥45 million.
• T&D Holdings transitioned from a company with a Board of Auditors to a company with an Audit and Supervisory Board on June 25, 2020.
• The number of persons paid and the amount of compensation above include three directors and two Audit & Supervisory Board
members who stepped down from their posts, as of the close of the 16th Ordinary General Meeting of Shareholders held on June 25,
2020. As of March 31, 2021, the Company has nine directors not serving as Audit and Supervisory Board members and five directors
serving as Audit and Supervisory Board members.
• The number of persons paid and the amount of compensation for directors not serving as Audit and Supervisory Board members
include directors from before the company transitioned to a company with an Audit and Supervisory Board.
• The number shown under “Total” in the “Number of persons paid” column represents the cumulative total number of people.
• The amount of trust-type stock compensation represents the cost accrued for the points granted during the fiscal year under review
based on the relevant system.
• Since there is no person with total consolidated compensation of ¥100 million or more, individual compensation amounts are not shown.

98(10) Resolutions of the General Meeting of Shareholders<Maximum amount of compensation for directors after the transition to a company with an Audit and Supervisory Board>
In a resolution at the 16th Ordinary General Meeting of Shareholders held on June 25, 2020, the maximum amount of compensation
for directors not serving as Audit and Supervisory Board members was set to ¥450 million per year, of which ¥40 million per year is foroutside directors (at the conclusion of the Shareholders’ Meeting, there were 9 directors not serving as Audit and Supervisory Board
members (including 2 outside directors)). This amount includes bonuses, and the total amount of bonuses per year has been determined by the Board of Directors. Apart from the above annual compensation limit for directors not serving as Audit and SupervisoryOrganizational
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Board members, another resolution at the 16th Ordinary General Meeting of Shareholders held on June 25, 2020 set the maximum
aggregate amount of trust fund to be contributed for the trust-type stock compensation to ¥500 million (covering the three fiscal
years from the fiscal year ended March 31, 2019 to the fiscal year ending March 31, 2021). The total number of points to be granted
to directors each year was limited to 215,000 points (one point is equivalent to one share in the Company). (At the conclusion of the
Shareholders’ Meeting, there were 4 directors not serving as Audit and Supervisory Board members eligible for trust-type stock compensation.) At the 16th Ordinary General Meeting of Shareholders, the maximum amount of compensation for directors serving as
Audit and Supervisory Board members was set to ¥150 million per year (at the conclusion of the Shareholders’ Meeting, there were
5 directors serving as Audit and Supervisory Board members (including 3 outside directors)). Compensation is set in consultation withthe directors serving as Audit and Supervisory Board members within this limit.
<Maximum amount of compensation for directors and Audit & Supervisory Board members before the transition to acompany with an Audit and Supervisory Board>
In a resolution at the 13th Ordinary General Meeting of Shareholders held on June 28, 2017, the maximum amount of compensation
for directors before the transition to a company with an Audit and Supervisory Board was set to ¥500 million per year, of which ¥40
million per year was for outside directors (at the conclusion of the Shareholders’ Meeting, there were 12 directors (including 3 outside
directors)). This amount included bonuses, and the total amount of bonuses per year was determined by the Board of Directors. Apartfrom the above annual compensation limit for directors, another resolution at the 14th Ordinary General Meeting of Shareholders
held on June 27, 2018 set the maximum aggregate amount of trust fund to be contributed for the trust-type stock compensation to¥500 million (covering the three fiscal years from the fiscal year ended March 31, 2019 to the fiscal year ending March 31, 2021). The
total number of points to be granted to directors each year was limited to 215,000 points (one point is equivalent to one share in the
Company). (At the conclusion of the Shareholders’ Meeting, there were 6 directors eligible for trust-type stock compensation.) In a resolution at the 8th Ordinary General Meeting of Shareholders held on June 27, 2012, the maximum amount of compensation for Audit& Supervisory Board members was set to ¥130 million per year (at the conclusion of the Shareholders’ Meeting, there were 4 Audit &Supervisory Board members (including 2 outside Audit & Supervisory Board members)). Compensation is set in consultation with the
Audit & Supervisory Board members within this limit.
Executive Management Board and Group Strategy Board
Please see “Executive Management Board and Group Strategy Board” under “8. Management Approach” on page 30.
Executive Officer System
T&D Holdings has introduced an executive officer system for the purpose of bolstering its business execution capabilities. By
sharply delineating responsibilities for oversight and execution, the Company shall strengthen the governance function of theBoard of Directors.

1–4

Participation in Management by Outside Experts

The Group’s three life insurance companies work toward ensuring adequate and transparent business management through theparticipation of outside experts in some internal committees dealing with key management issues.
Service Quality Improvement Committee (Taiyo Life)<Outside members>
Physicians, attorneys, person with relevant knowledge and experience, and experts in consumer issues<Main topics of deliberation>	Status of building framework for management of payments of insurance and other benefits, adequacy of examinations of payments of insurance and other benefits, ease of understanding insurance claim procedures, adequacy of insurance and other benefit-payment processes, status ofcustomer feedback, and initiatives to improve operations utilizing customer feedback
Customer Feedback Council (Daido Life)<Outside members>
Physicians, attorneys, and experts in consumer issues<Main topics of deliberation>	Validation of adequacy and effectiveness of initiatives and operations to improve customer service. Further utilization of product and service development from the customer’s perspective
Stewardship Committee (Daido Life)<Outside members>
Attorneys and experts in stewardship activities<Main topics of deliberation>	Enhancement of governance of voting process (e.g. prevention of conflicts of interest) and further
enhancement of stewardship activities as a whole
Advisory Council for Insurance Payment (Daido Life)<Outside members>
Attorneys and experts in consumer issues<Main topics of deliberation>	Adequacy of insurance and other benefit-payment processes, adequacy of examinations of payments, status of customer feedback, and initiatives improve operations
Service Supervision Committee (T&D Financial Life)<Outside members>
Attorneys, experts in consumer issues, and members of the media<Main topics of deliberation>	Initiatives aimed at ensuring an adequate framework relating to payment of insurance and otherbenefits, protecting legitimate interests of policyholders and others, and improving customer
satisfaction
Payment Assessment Committee (T&D Financial Life)<Outside members>
Attorneys<Main topics of deliberation>	Fair and accurate payment assessment for decision-making on payment of insurance claims, etc.

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2

3

Social Activities

4

Governance andInternal Control

Management
Control

Third-party
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Committees

Nomination and Compensation Committee
T&D Holdings established the non-statutory Nomination and Compensation Committee in January 2015 as an advisory body to
the Board of Directors to deliberate on the fairness and appropriateness of the appointment, dismissal, succession planning, andcompensation of directors and executive officers, as well as to strengthen the corporate governance framework of T&D Holdings
and the Group by ensuring the transparency of management and enhancing accountability. The members of the Nomination andCompensation Committee deliberate on matters related to the appointment, dismissal, and compensation of directors and executive officers of T&D Holdings and its directly owned subsidiaries, and matters related to succession planning for the Company’s
President, among other topics, and report the results of such deliberations to the Board of Directors, while expressing their opinions as necessary. The Committee consists of the President and at least three outside directors, and a majority of the members
are assigned from outside directors to ensure independence, objectivity, and accountability. The outside directors to be named as
members are determined by the President after deliberations by the Nomination and Compensation Committee, and the chair of
the Committee is chosen from among the outside directors by mutual vote of the Committee’s members.
Major Deliberations and Reports by Nomination and Compensation Committee (Fiscal 2020)
Major Deliberations and Reports

1st meeting• Selection of directors not serving as Audit and Supervisory Board members, directors serving as Audit
and Supervisory Board members, and directors serving as substitute Audit and Supervisory Board
members, and selection of representative directors and directors with executive titles• Selection and appointment of director candidates, Audit & Supervisory Board member candidates, andexecutive officers at directly owned subsidiaries• Establishment of maximum amount of compensation for directors not serving as Audit and Supervisory
Board members

2nd meeting• Results of fiscal 2019 evaluations of directors and executive officers• Results of fiscal 2019 evaluations of representative directors of directly owned subsidiaries• Internal rules on executive treatments

3rd meeting• Selection of outside directors to serve on the Nomination and Compensation Committee

4th meeting• Selection of the chair of the Nomination and Compensation Committee

5th meeting• Succession plan

6th meeting• Internal rules on executive treatments at directly owned subsidiaries

7th meeting• Change of president of directly owned subsidiary (Daido Life)

8th meeting• Selection and appointment of executive officers• Selection and appointment of executive officers at directly owned subsidiaries• Revision of the Basic Policy on Corporate Governance in accordance with the revision of the Companies Act

9th meeting• Selection and appointment of directors and executive officers of directly owned subsidiaries

Committee Member Attendance Record (Fiscal 2020)
Name

Position

Attendance

Haruka Kato* (Chair)Outside Director

Attended all 9 meetings

Naoki Ohgo

Outside Director

Attended all 9 meetings

Kensaku Watanabe

Outside Director

Attended all 6 meetings

Hirohisa Uehara

Representative Director and President

Attended all 9 meetings* Ms. Haruka Kato’s maiden name is Haruka Matsuyama. She uses the name Haruka Matsuyama for her professional duties.

Group Compliance Committee
Please see “Group Compliance Committee” under “8. Management Approach” on page 30.
Group SDGs Committee
Please see “Group SDGs Committee” under “7–1 Sustainability Promotion Framework” on page 29.

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Group Risk Management Committee
Please see “Group Risk Management Committee” under “8. Management Approach” on page 30.
Group ERM Committee
Positioned under the Board of Directors, this Committee is charged with pursuing the steady and continuous growth of theGroup’s corporate value through the promotion and improvement of Enterprise Risk Management (ERM), a practice that integrates the management of capital, profit, and risk on an economic value basis.
The Committee chairperson is the executive officer in charge of the ERM Strategy Department. In fiscal 2020, the Committee
held 15 meetings and reported the results of its deliberations to the Executive Management Board, Group Strategy Board, andBoard of Directors.

1–6

Internal Audit System

Group Internal Auditing
Internal auditing is the task of evaluating the appropriatenessand effectiveness of the internal management of the operating units and providing advice and recommendations withthe aim of contributing to the effective achievement of theorganization’s management targets.
In the Group Basic Policy on Internal Audits formulatedby the Board of Directors, T&D Holdings has established abasic policy to ensure the effectiveness of the Group’s internal
audit system. In accordance with this policy, T&D Holdings
and its directly owned subsidiaries have established internal
audit units that are independent from other operating units.
As of the end of fiscal 2020, the number of employees in theinternal audit units was 6 at T&D Holdings and 73 in total for
the Group, including directly owned subsidiaries.

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

Board of Directors

Audit and Supervisory Board

President
Operating units

Internal Auditing Department
Audit & monitoring/
Guidance & advice

Taiyo Life

Daido Life

T&D
Financial Life

T&D United
CapitalT&D Asset Pet & FamilyManagement Insurance

Internal audit units of each company

Functions and Roles
Operating units of each company
The Company’s Internal Auditing Department reports directly to the Board of Directors and the Audit and Supervisory
Other Group companies
Board, in addition to reporting to the President. In addition,
to ensure the independence of internal audits, a system has
been established whereby the Internal Auditing Department is directed by and reports to the Audit and Supervisory Board and obtains the Board’s consent with respect to matters such as the formulation of the annual internal audit plans and the appointmentof the manager of the Internal Auditing Department.
Meanwhile, the Internal Auditing Department of T&D Holdings, in addition to conducting internal audits of each division of theCompany, grasps the status of the internal management system of the Group as a whole through monitoring of the internal audits
implemented by its subsidiaries. The Internal Auditing Department also provides guidance and advice as necessary to strengthen
the internal audit system of the Group as whole.

1–7Internal Control

Internal Control System
The T&D Insurance Group’s core business of life insurance has a social and public nature. Accordingly, we consider it vital toproperly control business execution and minimize the impact on management from unforeseen events occurring in the processof Group operations, to ensure the soundness and adequacy of our operations and fulfill our social responsibilities.
With this in mind, T&D Holdings and its directly owned subsidiaries have established internal control systems as required
under Japan’s Companies Act. Moreover, the boards of directors of each company continuously work to improve and strengthen
their internal control systems, including by periodically monitoring the preparedness and operational status of these systems toconfirm their adequacy and making revisions as necessary.
Response to the Internal Control Reporting System
With regard to the internal control reporting system pursuant to the Financial Instruments and Exchange Act, the Group builds
internal controls necessary for ensuring the trustworthiness of securities reports and other financial reports. Managers personallyevaluate and report on its effectiveness. Following this process, a certified public accountant who is an outside Accounting auditor and a system auditor audit the suitability of this assessment.
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2. Disclosure of Information to Shareholders and Investors
2–1

Shareholder Return Policy

T&D Holdings’ policy is to provide stable returns to shareholders as part of enhancing shareholder value, while retaining sufficientinternal reserves to ensure the management soundness of T&D Holdings and its Group companies.

2–2

Information Disclosure

T&D Holdings works proactively to disclose information to all stakeholders so that they can understand the current situation andfuture business development of the T&D Insurance Group.
Integrated Report
The Integrated Report is an annual report issued to investors, shareholders, and other stakeholders. It provides a summary of financial, corporate, ESG, and other key information to enable our shareholders and investors to understand the T&D Insurance Group.
Disclosure Documents
The disclosure documents of each company that have been produced in accordance with the Insurance Business Act of Japan
have been posted on our website.
Shareholder Newsletters
The newsletters that we have sent out to our shareholders reporting our business performance and circumstances along withvarious topics have been posted on our website.
Annual Securities Report
Annual securities reports and suchlike made and submitted based on the provisions of the Financial Instruments and Exchange
Act have been posted on our website.
Starting from the fiscal year ended March 31, 2021, the Company has been making submissions earlier (prior to the
Shareholders’ Meeting) with the aim of promoting dialogue with shareholders.
For more details about these reports, please see “IR Library” under “Investor Relations” on our website.
WEB

https://www.td-holdings.co.jp/en/ir/document/

2–3

IR Activities

T&D Holdings proactively engages in IR activities based on the principles of timeliness, fairness, and accuracy. It also works tomake continuous and comprehensible information disclosure on the T&D Insurance Group’s management environment, businessstrategies and financial situations. More specifically, we hold business results briefings, teleconferences, individual meetings for
institutional investors, presentations for individual investors and actively engage in exchanging opinions with securities analysts.
Valuable feedback from investors received through IR activities is regularly communicated to the management team.
Main activities
Presentations for Individual Investors
We held briefing sessions for individual investors where the director in charge of IR, other officers and managers acted aspresenters.
Presentations for Institutional Investors and Securities Analysts
We held conference calls chaired by the director in charge of IR for each quarterly earnings announcement and IR meetings by thepresident for each interim and yearly earnings report. The president and the director in charge of IR also held individual meetings
with institutional investors and securities analysts.
Presentations for Overseas Investors
For overseas institutional investors, mainly in Europe, United States, and Asia, the president and the director in charge of IR conducted individual meetings and also participated in conferences for overseas institutional investors held by securities companies.
IR Information Posted on Our Website
On our website, we have posted IR information for individual investors, financial information, timely disclosure materials otherthan financial information, IR presentation materials, and video and audio materials of IR presentations and teleconferences.
For more details, please see “For Individual Investors,” “IR Library,” and “IR Events” under “Investor Relations” on our website.
WEB

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https://www.td-holdings.co.jp/ir/individual/ (Japanese only)
https://www.td-holdings.co.jp/en/ir/document/
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Sustainability
Management

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3

Social Activities

4

Governance andInternal Control

Management
Control

Third-party
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Shareholders’ Meeting

T&D Holdings views Shareholders’ Meetings as important opportunities for communicating with its shareholders and endeavors
to make these events sufficiently accessible and open to all shareholders. Prior to the Shareholders’ Meeting, we strive to sendout the convocation notice as early as possible, posting it on our website before sending it out, and we prepare and disclose an
English translation on our website so that shareholders can sufficiently examine the items for resolution in advance. In addition,
we have introduced an online electronic voting system to improve shareholder convenience. At the Shareholders’ Meetings, alarge screen is used to report on agenda items, displaying charts and images. In the Q&A session that follows, the directors
respond to questions and opinions from the floor respectfully and accurately, with the intention of enhancing shareholders’ understanding of our business. Note that in fiscal 2021, as a measure against the spread of COVID-19, we encouraged shareholders to
exercise their voting rights in advance and to refrain from attending the meeting in person. Furthermore, on the day of the event,
we broadcast the Shareholders’ Meeting live so that distant shareholders could observe the proceedings from their homes. The
meeting itself was also held with appropriate infection prevention measures in place, including a shorter agenda and the wearingof masks by shareholders, officers, and employees.

2–5

Shareholders

102-5

Proportion of Shares Held (as of March 31, 2021)
Financial
institutions

Shareholder category
No. of shares held (1,000 shares)

Financial
Other
product dealers corporations

Foreigncorporations

Individuals
and others

Total

201,01435,068107,307

207,589

40,124

633,000

31.76

5.54

16.95

32.79

6.34

100.00

Proportion of shares held (%)

Principal Shareholders (as of March 31, 2021)
Name of shareholders

Number of shares held
(1,000 shares)

Percentage of total
shares outstanding (%)

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

57,852

9.79

Custody Bank of Japan, Ltd. (Trust Account)

30,274

5.12

Custody Bank of Japan, Ltd. (Trust Account 7)

16,9502.87

MUFG Bank, Ltd.

10,325

1.75

Custody Bank of Japan, Ltd. (Trust Account 5)

9,041

1.53

JPMorgan Securities Japan Co., Ltd.

8,656

1.46

STATE STREET BANK WEST CLIENT - TREATY 505234

8,634

1.46

Custody Bank of Japan, Ltd. (Trust Account 6)

8,012

1.36

SSBTC CLIENT OMNIBUS ACCOUNT

7,419

1.26

Custody Bank of Japan, Ltd. (Trust Account 1)
Total

7,190

1.22

164,357

27.81

Note: The Company holds 41,895 thousand shares of treasury stock, but this is excluded from the list of principal shareholders above. The percentage of total shares outstanding is
also calculated minus treasury shares.

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IX Management Control
1. ERM
1–1

102-11

Promotion of ERM Approach

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

PLAN

DO

Formulating
management plan

Implementing
planned initiatives

Soundness(Capital efficiency)

Profitability(Capital adequacy)

CapitalIntegrated
management
Risk

ACTION
Reviewing
management plan

Profits

CHECK

Monitoring progress ofplanned initiatives

Integrated Risk Management Activities
In order to promote ERM, it is critical to have a proper understanding of types and magnitude of risks. The T&D Insurance Group
promotes the integrated risk management approach to achieve the management objectives by quantifying the risks affecting theGroup by type of risks and assessing the impacts when making losses, and also by controlling all the risks associated with its
operations, including unquantifiable risks.

2. Risk Management
2–1

102-11

103-2

103-3

Basic Concept for Risk Management

At the T&D Insurance Group, T&D Holdings has formulated a Group Risk Management Policy setting forth the Group’s basic approach to risk management and, based on this Policy, the directly owned subsidiaries and other Group members have developed
their risk management system that covers their affiliates as well.
T&D Holdings has established a Group Risk Management Committee and manages risks within the Group. The Committee
receives reports, regularly and as required, on risks assessed using uniform economic value-based risk management indicators,
from the directly owned subsidiaries and other Group members, in order to identify and manage the various types of risks facedby Group companies. Based on the report received, T&D Holdings reports on these risks to the Board of Directors and provides
guidance and advice to the Group companies as necessary, thereby ensuring that proper risk control is implemented at eachcompany and strengthening the risk management system for the entire Group.
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Sustainability
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Social Activities

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Governance andInternal Control

Management
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Third-party
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Risk Management System

In light of the social and public nature of the life

Outline of the Group’s Risk Management Systeminsurance business, the T&D Insurance Group
views risk management as a key priority issue
in order to ensure sound and adequate business

Board of Directors

Audit and Supervisory Board

Executive Management Board

Group Risk Management Committee

management. Under overall control by the holding company, T&D Holdings, each Group company implements the necessary risk manageRisk Management Department

ment suited to their respective business model
based on the principle of self-responsibility.

Guidance& advice

Deliberation& reporting
Taiyo
Life

Daido
Life

T&D
Financial Life

T&D United
CapitalInternal
audit

T&D Asset Pet & FamilyManagement Insurance

Other Group companies

2–3

Risk Classification and Responses

The T&D Insurance Group classifies various management risks such as financial market disruptions, catastrophes, pandemics, climate change, and cyber attacks as indicated below. We have established risk management policies for each risk category and strive
to prevent the occurrence of risks or control them within certain tolerances.
Insurance Underwriting Risk

Investment Risk

Liquidity Risk

Operational Risk*

Reputation Risk

Affiliate-related Risk

* Operational risks are classified into sub-categories, i.e. administrative risk, system risk, legal risk, labor and personnel risk, and hazard risk, and are managed separately.
Please see the T&D Holdings website for more information on our risk classifications and responses.
WEB

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

2–4

Risk Awareness and Assessment (risk profile)

205-1

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

2–5

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

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Sustainability
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
Optimizationof the Risk Portfolio (Risk Measurement by Internal Models
and Complemental Efforts by Stress Test)

The T&D Insurance Group optimizes its risk portfolio by measuring quantifiable risks using internal models as well as by drawing
up risk profiles, including qualitative aspects of risks and performing stress tests for risks. To complement the risk quantification
model, stress tests are conducted with multiple scenarios reflecting long-term macro- and micro-economic projections.

2–7

Cyber Security Initiatives

103-2

103-3

418-1

Recognizing that it is an important management issue to properly manage information assets and protect information assets fromincreasingly sophisticated cyber attacks, and committed to complying with the relevant laws and regulations while fulfilling ourCSR (Corporate Social Responsibility) as a company that runs a life insurance business, the T&D Insurance Group has establisheda Group Information Security Policy and a set of Group Cybersecurity Response Rules, which all executives and employees are
obligated to follow. We are aware that cyber attacks and similar threats can cause system outages, compromise business performance, and expose critical information.
In particular, in order to increase the security of the services we provide our customers, we use security tools to constantly
monitor the threat of cyber attacks targeting financial institutions, which have become increasingly sophisticated in recent years,
and we have established a Group-wide CSIRT (Computer Security Incident Response Team) tasked with cyber attack information
gathering, analysis, and response, as well as individual CSIRTs at each company. In addition to conducting training as a Group andat each company, we participate in cross-industry training and exercises, and when we learn about issues, we incorporate theminto the relevant procedures and manuals (“Information Security Management Rules” and “Information Security Handbook”),
thereby reinforcing our ability to put knowledge into practice.
The Group has implemented multi-layered security measures (entrance, exit, and internal measures), and we regularly receive
security assessments from third-party organizations and promptly implement the necessary measures.
We bring in outside experts to educate group management on the latest trends in cyber security, and are working to raiseawareness of cybersecurity risks and improve security literacy through continuous training on information security and cybersecurity for executives and employees (group training, e-learning, etc.) as well as training on suspicious emails.
The Internal Auditing Department verifies whether these systems are functioning effectively and reports the results to theBoard of Directors.
Protection of Personal Information
T&D Holdings and its three life insurance companies and other Group members have formulated Personal
Information Protection Declarations (privacy policies), which they publicly disclose on their websites.
T&D Information System, a Group company that supports the information system of the T&D
Insurance Group, properly handles various data, including personal information, and keeps it strictly
confidential. In May 2005, T&D Information System obtained Privacy Mark certification, which is given
to the enterprises that take adequate measures to protect personal information. In addition, the company acquired ISO 27001 certification, an international standard for information security management
systems, for its “host computer operation services” in March 2007 and for its “server operation services” in March 2011. The information service firm has continued to renew both of these certifications
as part of its efforts to maintain a high level of information security.

2–8

Crisis Management

The T&D Insurance 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 respondpromptly 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 largescale disaster.
In response to the novel coronavirus pandemic, we are prioritizing the safety of our customers and employees by taking a variety of measures to prevent the spread of the virus, while continuing to carry out essential operations at Group companies suchas paying insurance claims.

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3. Compliance
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103-3

205-2

Our Concept of Compliance

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

3–2

Group Compliance Promotion Structure

T&D Holdings has established a compliance promo-

Outline of the Group Compliance Promotion Structuretion structure based on the T&D Insurance Group
Basic Policy for Strengthening the Compliance
Structure. The Group Compliance Committee was

Board of Directors

Audit and Supervisory Board

established to oversee and improve the Group’sGroup Compliance Committee

compliance arrangements. T&D Holdings also
has a Risk Management Department, which has

Risk Management Department

overall responsibility for promoting compliance.
In coordination with the compliance units of the

Deliberation& reporting

Group’s three life insurance companies and otherGroup members, this department performs regularmonitoring and provides guidance and advice. The

Taiyo
Life

Group’s three life insurance companies and other

Daido
Life

Guidance& advice

Internal
audit

T&D
T&D United T&D Asset Pet & Family
Financial Life
CapitalManagement Insurance
Other Group companies

Group members also have a compliance promotion
system mainly consisting of a compliance committee and a compliance control department.

3–3

Compliance Promotion Activities

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

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Sustainability
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2

3

Social Activities

4

Governance andInternal Control

Management
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Preventing Bribery and Corruption

The T&D Insurance Group states the following in the T&D Insurance Group Compliance Code of Conduct: “We shall work to prevent
corruption in our relationships with business counterparts, civil servants, and other parties by refraining from providing or receiving
any business entertainment within reasonable bounds under normal social conventions, as well as refraining from giving or receiving
gifts, in connection with our business activities worldwide.” (See p.15.) In addition to preventing bribery, we are ensuring thoroughawareness by all executives and employees toward preventing corruption. This includes measures against money laundering andprevention of misappropriation and diversion of funds, using such means as a compliance program and compliance manuals. Bribery
and corruption are also stipulated as extremely malicious and severely impacting criminal statutes for disciplinary action. All scandals(including concerns over possible scandals), including bribery and corruption, are reported to the Board of Directors.
When making a new business investment, checks from the perspective of preventing bribery and corruption are added to therisk assessment and subjected to appropriate review. As of fiscal 2020, no scandals or legal disputes relating to bribery or corruption
had occurred.
Extract from a Compliance Manual[Risks Related to Bribery and Corruption]
In today’s world, bribery and corruption impede the development and economic growth of the country or region in which
they occur. Bribery and corruption not only have an undue negative impact on poor regions, they also give rise to serious
legal and reputational risks for companies. Many of the acts that involve corruption, such as bribery, are not only illegal in
the place where a company performs them, but there is an increasing number of cases where these acts are also illegal by
the laws of the home country of the company. As regards reputational risks, even if a company is judged to not be involved
with corruption by the final judgment of the court concerned, there are many cases in which the reputation of the company
has been damaged merely because it was suspected of corruption. A company must also pay attention to the fact that they
not only take responsibility for their own actions but also for the actions of any agents that are conducting business on theirbehalf in other countries.

3–5

Tax Policy

The T&D Insurance Group clearly states its commitment to strict compliance with applicable laws and regulations in the T&D
Insurance Group CSR Charter and the T&D Insurance Group Compliance Code of Conduct. With regard to taxation, we haveestablished the T&D Insurance Group Basic Tax Policy in accordance with these CSR policies.
T&D Insurance Group Basic Tax Policy
T&D Insurance Group (the “Group”) establishes the following basic tax policy, ensures proper handling of tax matters, andfulfills its corporate social responsibility.
1. Basic Idea
Based on the Group’s management philosophy, the Group aims to contribute to people and society through its businessactivities in order to realize a sustainable society.
In addition, for the purpose of conducting corporate activities that are sincere, fair and appropriate for all stakeholders,the Group stipulates compliance with laws and regulations in its Compliance Code of Conduct.
Also, the Group will strive to further improve governance and compliance, and in order to ensure proper handling of tax
matters, the Group will deal with them in a sincere and responsible manner in line with the tax laws and regulations of eachcountry or region and the purport thereof when conducting its business.
2. Appropriate Tax Burden
The Group strives to realize an appropriate tax burden through the elimination of double taxation based on the use of tax
treaties and the appropriate use of various tax systems.
The Group will not interpret the laws and regulations in a way that deviates from the purport thereof or conduct tax planning that is solely intended for tax avoidance.
3. Responding to Transfer Pricing Taxation
The Group will conduct international transactions between Group companies at arm’s length prices in accordance with theOECD Transfer Pricing Guidelines and will pay appropriate taxes based on appropriate income reflecting the economic activities conducted in the relevant country or region.
4. Establishment of Tax Payment System
The Group will establish a system to properly conduct tax operations applicable in each country or region.
T&D Holdings is working to strengthen its tax governance system in cooperation with domestic and overseas Group
companies.
5. Relationships with Tax Authorities
The Group strives to build sound relationships with tax authorities by responding to them sincerely and providing timely andappropriate explanations that are based on facts.
108Organizational
Profile

3–6

Sustainability
Management

Priority Theme

1

2

3

4

Social Activities

Governance andInternal Control

Management
Control

Third-party
OpinionWhistleblower System

Index

103-2

103-3

At the T&D Insurance Group, each of the Group’s three life insurance companies and other Group members used to operate theirown whistleblower systems. In April 2005, however, the T&D Insurance Group Helpline was established for use by all executives
and employees in the Group.
The T&D Insurance Group Helpline accepts, through an external company, reports of compliance issues, violations of internal
rules (including suspected violations), and actions that may damage the credibility or reputation of the Group.
T&D Insurance Group Helpline
We have established rules to ensure that whistleblowers are not treated unfavorably after they make a report to the T&D
Insurance Group Helpline, and we are working to build an effective system that allows reporting by phone, website, etc. throughan external reporting company and that also accepts reports anonymously. The reports and the results of the investigations into
them are reported to the Audit and Supervisory Board and to management.
In addition, in March 2021, the T&D Insurance Group Helpline was registered with the Whistleblowing Compliance Management
System (WCMS)*, Self-Adaptation Declaration Registration System, under the jurisdiction of Japan's Consumer Affairs Agency.
* Under this system, a business evaluates its own whistleblowing system, and if it complies with the Consumer Affairs Agency’s “Guidelines for Private Enterprises Regarding theDevelopment and Operation of Internal Reporting Systems Based on the Whistleblower Protection Act,” then it is certified with the WCMS logo after examination and confirmationby the designated registration agency (Japan Institute of Business Law).

WCMS markNumber of Calls Received by the T&D Insurance Group Helpline
FY2018243

FY2019258

FY2020320* The numbers of reports above include inquiries about the system, as well as reports of workplace issues that are difficult to consult superiors over,such as complaints or dissatisfaction.

109

Organizational
ProfileSustainability
Management

Priority Theme

1

2

3

4

Social Activities

Governance andInternal Control

Management
Control

Third-party
Opinion

Index

Third-party Opinion
Continuing from the previous year, I again submit this Third-party Opinion, based on the Sustainability Report 2021,
regarding how the T&D Insurance Group thinks and acts in relation to CSR (Corporate Social Responsibility) as well as theGroup’s related information disclosure.

1 Group Long-Term Vision
I have read about the T&D Insurance Group Long-Term Vision described in the message from the President. I commend
the fact that the Company has redefined its vision (how it wants to be) as a corporation that is not affected by environmental changes, has considered (conceived) what might be necessary in light of that vision, and has acknowledged theimportance of being flexible and speedy in its thinking and actions to put them into practice based on the understandingthat as the SDGs continue to gain traction worldwide, the idea that a good company is one that not just generates profits
but also makes society a better place and can co-exist with society is growing mainly among millennial and Z generations.
I also paid attention to the fact that the Company raised a statement “Sow happiness, make change with boldness,” aswell as “SDGs management and creation of value” as a primary issue. It is true that it is difficult to define what “happinessin society” actually means, considering that money can buy some things, but not others. Going forward, I am hoping that
the T&D Insurance Group will provide more detail on what it considers “happiness” to be.

2 Group Human Rights Policy
I also commend the Company’s formulation of a Group Human Rights Policy in July 2020. However, I focused on thereport the Company has made, saying that “We did not identify the instances of human rights abuses that require corrective actions in the Group’s business activities.” The Group’s life insurance companies are expanding its business operations overseas. The Group’s Human Rights Policy states “Where national laws and international human rights standards
differ, we will follow the higher standard. Where they are in conflict, we will seek ways to respect internationally recognized human rights while still complying with applicable local laws.” As such, I particularly hope that subsequent editions
more actively disclose information about countries where there are concerns of government-led human rights violations.

3 Climate Change Crisis Response and Information Disclosure in line with TCFD Recommendations
One major characteristic of the T&D Insurance Group is that the specialized and differentiated business models of its
core life insurance companies all function effectively. I commend the Company’s quick rollout of products and services in
response to the COVID-19 pandemic, which have delivered particularly noteworthy results in the industry.
On the other hand, I felt there is still room for the Company to do more regarding its initiatives for tackling the global
climate change crisis. One example would be measuring, and managing the progress of reducing, the carbon density offinancial products offered in the asset management portfolios and investment-related businesses of each life insurancecompany. Also, if significant progress is made with the decarbonization of the economy up ahead, some industry sectors
might fall into decline and especially small and mid-size companies in such industry supply chains will find themselves ina vulnerable position. I strongly expect the T&D Insurance Group, which boasts strengths in the SME market segment, tobetter demonstrate its consulting services to help businesses innovate or switch to a different line of business.
An industry body known as the Net Zero Insurance Alliance (NZIA) has already been established under the umbrella of
GFANZ, which is also mentioned in the three-way conversation between experts. The NZIA is calling on insurance companies to set targets for achieving net-zero greenhouse gas emissions across scopes 1–3 by the year 2050. In May 2021
the world was shocked by the news that the District Court of the Hague in the Netherlands recognized climate change asa human rights issue in a case brought against an Anglo-Dutch multi-national oil and gas company by environmental NGOs
and thus ordered the energy major to reduce its emissions. I therefore hope the Company will set even more ambitious
targets to tackle climate change, step up its initiatives, and disclose even more information about its efforts.
Eiichiro Adachi Senior Counselor, The Japan Research Institute, Limited
Graduated from the Faculty of Economics at Hitotsubashi University in 1986. Joined The Japan Research Institute,
Limited (JRI) in 1990, where he served in the management strategy research and technology research divisions
before assuming his current post. In 2003 and 2004, he worked on the 15th Corporate White Paper published by
the Japan Association of Corporate Executives. Then, he was a member of the Association’s Socially Responsible
Management Promotion Committee working group. From March 2005 to May 2009, he was involved in formulating
ISO 26000, the international standard for social responsibility for organizations, as a national expert in the ISO 26000
Working Group. He currently serves as a member of Mitsubishi Corporation’s Sustainability Advisory Committee,
as a member of the Advisory Board of The Research Institute for Local Public Transport, as a Japan expert in
ISO/TC322 and ISO 32210 working groups, and as a member of the Financial Services Agency’s Expert Panel on
Sustainable Finance. He is the author/co-author of titles including An Illustrated Guide to Environmental Issues for
Corporations (Toyo Keizai Inc., 1999), Business Growth Through Global Warming (Toyo Keizai Inc., 2007), Introduction
to Environmental Management (Nikkei Publishing Inc., 2009), Introduction to Natural Capital (NTT Publishing, 2015),
An ESG Reader for Investors and Corporations (Nikkei Business Publications, 2016), The Complications of Corporate
Governance Reform (Kinzai, 2017), and The Business Person’s Guide to SDGs (Nikkei Business Publications, 2018).
110

Organizational
ProfileSustainability
Management

Priority Theme

1

2

3

Social Activities

4

Governance andInternal Control

Management
Control

Third-party
OpinionIndex GRI Standards
GRI Standards

Index102-54

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

Disclosed Items

102-55Omission

GENERAL DISCLOSURESGRI 102:
GENERALDISCLOSURES
2016

1. Organizational profile
102-1

Name of the organization

I Organizational Profile 1. Organizational Profile
1-3 Corporate Profile (as of March 31, 2021)
I Organizational Profile 1. Organizational Profile
1–1 Outline of the T&D Insurance Group’s Business

102-2

Activities, brands, products, and services

102-3

Location of headquarters

I Organizational Profile 1. Organizational Profile
1-3 Corporate Profile (as of March 31, 2021)

102-4

Location of operations

I Organizational Profile 1. Organizational Profile
1–2 T&D Insurance Group Companies and Foundations

102-5

Ownership and legal form

VIII Governance and Internal Control 2. Disclosure of Information
to Shareholders and Investors 2–5 Shareholders

102-6Markets served

I Organizational Profile 1. Organizational Profile
1–2 T&D Insurance Group Companies and Foundations

I Organizational Profile 1. Organizational Profile
1–2 T&D Insurance Group Companies and Foundations

102-7

Scale of the organization

Integrated Report 2021

102-8

Information on employees and otherworkers

I Organizational Profile 1. Organizational Profile
1–4 Number of Employees

102-9

Supply chain

I Organizational Profile 2. Supply Chain
2–1 Definition of Supply Chain

102-10Significant changes to the organizationand its supply chain

N/A

102-11

Precautionary Principle or approach

IX Management Control

1. ERM

IX Management Control

2. Risk Management102-12External initiatives

II Sustainability Management 10. Principles That the T&D
Insurance Group Endorses and Supports

102-13

Membership of associations

I Organizational Profile 1. Organizational Profile
1-3 Corporate Profile (as of March 31, 2021)

2. Strategy
102-14

Statement from senior decision-maker

Message from the President

3. Ethics and integrity
102-16

Values, principles, standards, and normsof behavior

II Sustainability Management
Insurance Group

2. Philosophy and Policy of T&D

4. Governance102-18Governance structure

VIII Governance and Internal Control

1. Corporate Governance

5. Stakeholder engagement102-409. Stakeholder Engagement

List of stakeholder groups

II Sustainability Management102-41

Collective bargaining agreements

I Organizational Profile 1. Organizational Profile
1–5 Dialogue and Consultations with Labor Unions

102-42

Identifying and selecting stakeholders

II Sustainability Management

9. Stakeholder Engagement

II Sustainability Management

9. Stakeholder Engagement

III Priority Theme 1 Providing Better Products and Services
2. Providing Wholehearted Reassurance

102-43

Approach to stakeholder engagement

IV Priority Theme 2 Provide workplace environments that enable
all people to participate actively 3. Worker-friendly Work
Environment 3–2 Initiatives Reflecting Employee Feedback
IV Priority Theme 2 Provide workplace environments that enable
all people to participate actively 3. Worker-friendly Work
Environment 3-3 Employee Questionnaire on Sustainability
and CSR

102-44

Key topics and concerns raised

III Priority Theme 1 Promote healthy and abundant lives for all
people 3. Improving Customer Satisfaction
Sustainability Library Other Initiatives
the Customer Feedback

Activities to Respond to111

Organizational
ProfileSustainability
Management

GRI Standards

Priority Theme

1

2

3

Social Activities

4

Governance andInternal Control

Management
Control

Third-party
OpinionPublication Location(Titles of items on the report/web)

Disclosed Items

Index

Omission

GENERAL DISCLOSURESGRI 102:
GENERALDISCLOSURES
2016

6. Reporting practice102-45

Entities included in the consolidated
financial statements

I Organizational Profile 1. Organizational Profile
1–2 T&D Insurance Group Companies and Foundations

102-46

Defining report content and topic
Boundaries

II Sustainability Management
4. Priority themes for promoting sustainability

102-47

List of material topics

II Sustainability Management 4. Priority themes for promoting
sustainability 4-2 GRI Material Topic

102-48

Restatements of information

N/A

102-49Changes in reporting

N/A

102-50

Reporting period

About Corporate Responsibility Report 2021

102-51

Date of most recent report

About Corporate Responsibility Report 2021

102-52

Reporting cycle

About Corporate Responsibility Report 2021

102-53

Contact point for questions regarding thereportAbout Corporate Responsibility Report 2021

102-54Claims of reporting in accordance with the
GRI Content Index
GRI Standards

102-55

GRI content index

GRI Content Index

102-56External assurance

V Priority Theme 3 Help mitigate and adapt to climate change
3. Environmental Impact-reduction Initiatives
3-5 Independent Assurance Report

Explanation of the material topic and its
Boundary

II Sustainability Management
4. Priority themes for promoting sustainability

The management approach and its
components
Evaluation of the management approach

VIII Governance and Internal Control

Material Topics
Economic Performance
GRI 103:
Management
Approach 2016

103-1
103-2
103-3

GRI 201:
Economic
Performance 2016

Sustainability Library

Organization Profile

Financial Highlights

201-1

Direct economic value generated anddistributed

201-2

Financial implications and other risks andopportunities due to climate change

V Priority Theme 3 Help mitigate and adapt to climate change
2. Disclosure of climate-related financial information based on
the TCFD recommendations

103-1

Explanation of the material topic and its
Boundary

II Sustainability Management
4. Priority themes for promoting sustainability

The management approach and its
components
Evaluation of the management approach

IX Management Control

2. Risk Management

IX Management Control

3. Compliance

Operations assessed for risks related tocorruption

IX Management Control 2. Risk Management
2–4 Risk Awareness and Assessment (risk profile)Sustainability Library Other Initiatives
Community Investments

Donations andAnti-corruption
GRI 103:
Management
Approach 2016

II Sustainability Management 7. Sustainability promotion framework
103-2
103-3

GRI 205:
Anti-corruption 2016

112

205-1

IX Management Control 3. Compliance
3–6 Whistleblower System

205-2

Communication and training about anticorruption policies and procedures

IX Management Control

205-3

Confirmed incidents of corruption andactions taken

N/A

3. Compliance“Total number and percentage
of operations assessed forrisks related to corruption”
are not disclosed, as risks aremanaged by category.
Matters required for reporting
include items awaiting thecollection of information. The
items will be disclosed withina few years.

Organizational
ProfileSustainability
Management

GRI Standards

Priority Theme

1

2

3

Social Activities

4

Governance andInternal Control

Management
Control

Third-party
OpinionPublication Location(Titles of items on the report/web)

Disclosed Items

Index

Omission

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

103-1

II Sustainability Management
4. Priority themes for promoting sustainability
II Sustainability Management 7. Sustainability promotion framework

The management approach and its
components
Evaluation of the management approach

IX Management Control

2. Risk Management

IX Management Control

3. Compliance

206-1

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

N/A

103-1

Explanation of the material topic and its
Boundary

II Sustainability Management
4. Priority themes for promoting sustainability

103-2
103-3
GRI 206:
Anti-competitive
Behavior 2016

Explanation of the material topic and its
Boundary

IX Management Control 3. Compliance
3–6 Whistleblower System

Materials
GRI 103:
Management
Approach 2016

II Sustainability Management 6. Status of sustainability promotion

GRI 301:
Materials 2016

II Sustainability Management 7. Sustainability promotion framework

103-3

The management approach and its
components
Evaluation of the management approach

301-1

Materials used by weight or volume

V Priority Theme 3 Help mitigate and adapt to climate change
3. Environmental Impact-reduction Initiatives

103-1

Explanation of the material topic and its
Boundary

II Sustainability Management
4. Priority themes for promoting sustainability

103-2

V Priority Theme 3 Help mitigate and adapt to climate change
V Priority Theme 3 Help mitigate and adapt to climate change
1. Promotion Framework

EnergyGRI 103:
Management
Approach 2016

II Sustainability Management 6. Status of sustainability promotion
The management approach and its
components
Evaluation of the management approach

II Sustainability Management 7. Sustainability promotion framework

302-1

Energy consumption within theorganization

V Priority Theme 3 Help mitigate and adapt to climate change
3. Environmental Impact-reduction Initiatives

302-3

Energy intensity

V Priority Theme 3 Help mitigate and adapt to climate change
3. Environmental Impact-reduction Initiatives

103-1

Explanation of the material topic and its
Boundary

II Sustainability Management
4. Priority themes for promoting sustainability

The management approach and its
components
Evaluation of the management approach

II Sustainability Management 7. Sustainability promotion framework

103-2
103-3
GRI 302:
Energy 2016

V Priority Theme 3 Help mitigate and adapt to climate change
V Priority Theme 3 Help mitigate and adapt to climate change
1. Promotion Framework

Water and Effluents
GRI 103:
Management
Approach 2016

103-2
103-3

GRI 303:
Water andEffluents 2018
Topic management
disclosures
GRI 303:
Water andEffluents 2018
Topic disclosures

V Priority Theme 3 Help mitigate and adapt to climate change
1. Promotion Framework

303-1

Interactions with water as a sharedresource

V Priority Theme 3 Help mitigate and adapt to climate change
3. Environmental Impact-reduction Initiatives
3-2 Environmental Performance Data

303-2

Management of water discharge-related
impacts

V Priority Theme 3 Help mitigate and adapt to climate change
3. Environmental Impact-reduction Initiatives
3-2 Environmental Performance Data

303-3

Water withdrawal

V Priority Theme 3 Help mitigate and adapt to climate change
3. Environmental Impact-reduction Initiatives
3-2 Environmental Performance Data

Biodiversity
GRI 103:
Management
Approach 2016

GRI 304:
Biodiversity 2016

Explanation of the material topic and its
Boundary

II Sustainability Management
4. Priority themes for promoting sustainability

103-3

The management approach and its
components
Evaluation of the management approach

II Sustainability Management 7. Sustainability promotion framework

304-3

Habitats protected or restored

V Priority Theme 3 Help mitigate and adapt to climate change
4. Forest Conservation Activities

103-1
103-2

113

Organizational
ProfileSustainability
Management

GRI Standards

Priority Theme

1

2

3

Social Activities

4

Governance andInternal Control

Management
Control

Third-party
OpinionPublication Location(Titles of items on the report/web)

Disclosed Items

Index

Omission

Material Topics
Emissions
GRI 103:
Management
Approach 2016

103-1

II Sustainability Management
4. Priority themes for promoting sustainability
II Sustainability Management 7. Sustainability promotion framework

103-3

The management approach and its
components
Evaluation of the management approach

305-1

Direct GHG emissions

V Priority Theme 3 Help mitigate and adapt to climate change
3. Environmental Impact-reduction Initiatives

305-2

Energy indirect GHG emissions

V Priority Theme 3 Help mitigate and adapt to climate change
3. Environmental Impact-reduction Initiatives

305-3

Other indirect GHG emissions

V Priority Theme 3 Help mitigate and adapt to climate change
3. Environmental Impact-reduction Initiatives

103-1

Explanation of the material topic and its
Boundary

II Sustainability Management
4. Priority themes for promoting sustainability

The management approach and its
components
Evaluation of the management approach

V Priority Theme 3 Help mitigate and adapt to climate change
1. Promotion Framework

103-2

GRI 305:
Emissions 2016

Explanation of the material topic and its
Boundary

V Priority Theme 3 Help mitigate and adapt to climate change
V Priority Theme 3 Help mitigate and adapt to climate change
1. Promotion Framework

Effluents and Waste
GRI 103:
Management
Approach 2016

103-2
103-3

GRI 306:
Effluents and Waste
2016

306-2

II Sustainability Management 7. Sustainability promotion framework

Waste by type and disposal method

V Priority Theme 3 Help mitigate and adapt to climate change
3. Environmental Impact-reduction Initiatives

Explanation of the material topic and its
Boundary

II Sustainability Management
4. Priority themes for promoting sustainability

The management approach and its
components
Evaluation of the management approach

V Priority Theme 3 Help mitigate and adapt to climate change
1. Promotion Framework

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

Environmental Compliance
GRI 103:
Management
Approach 2016

103-1

II Sustainability Management 7. Sustainability promotion framework
103-2
103-3

GRI 307:
Environmental
Compliance 2016

IX Management Control 3. Compliance
3–6 Whistleblower System

307-1

Non-compliance with environmental laws
N/A
and regulations

103-1

Explanation of the material topic and its
Boundary

Employment
GRI 103:
Management
Approach 2016

II Sustainability Management
sustainability

4. Priority themes for promoting

II Sustainability Management 7. Sustainability promotion framework
103-2
103-3

The management approach and its
components
Evaluation of the management approach

IV Priority Theme 2 Provide workplace environments that enable
all people to participate actively 3. Worker-friendly Work
Environment
IX Management Control 3. Compliance
3–6 Whistleblower System

GRI 401:
Employment 2016114

I Organizational Profile 1. Organizational Profile
1–4 Number of Employees

401-1

New employee hires and employee
turnover401-2

Benefits provided to full-time employees IV Priority Theme 2 Provide workplace environments that enable
that are not provided to temporary or part- all people to participate actively 3. Worker-friendly Work
time employees
Environment 3–1 Work-Life Balance Initiatives

401-3

IV Priority Theme 2 Provide workplace environments that enable
all people to participate actively 3. Worker-friendly Work
Environment 3–1 Work-Life Balance Initiatives

Parental leave

IV Priority Theme 2 Provide workplace environments that enable
all people to participate actively 3. Worker-friendly Work
Environment 3–1 Work-Life Balance Initiatives

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

Organizational
ProfileSustainability
Management

GRI Standards

Priority Theme

1

2

3

Social Activities

4

Disclosed Items

Governance andInternal Control

Management
Control

Third-party
OpinionPublication Location(Titles of items on the report/web)

Index

Omission

Material Topics
Occupational Health and Safety
GRI 103:
Management
Approach 2016

103-1
103-2
103-3

GRI 403:403-1
Occupational Healthand Safety 2018
403-2
Topic management403-3
disclosures

II Sustainability Management
4. Priority themes for promoting sustainability

The management approach and its
components
Evaluation of the management approach

IX Management Control 3. Compliance
3–6 Whistleblower System

Hazard identification, risk assessment, andincident investigation
IV Priority Theme 2 Provide workplace environments that enableOccupational health services

403-4
403-5

Worker training on occupational healthand safety

403-6

Promotion of worker health403-7

Prevention and mitigation of occupational
health and safety impacts directly linked
by business relationships

103-1

II Sustainability Management 7. Sustainability promotion framework

Occupational health and safety
management system

Worker participation, consultation, andcommunication on occupational healthand safety

GRI 403:
Occupational Health403-9
and Safety 2018
Topic disclosures
Training and Education
GRI 103:
Management
Approach 2016

Explanation of the material topic and its
Boundary

all people to participate actively
3. Worker-friendly Work Environment
3–1 Work-Life Balance Initiatives
IV Priority Theme 2 Provide workplace environments that enable
all people to participate actively
4. Health Promotion for Employees

Work-related injuries

Sustainability Library
Initiatives to address the working environment
Occurrence of Occupational Accidents

Explanation of the material topic and its
Boundary

II Sustainability Management
4. Priority themes for promoting sustainability

The management approach and its
components
Evaluation of the management approach

IV Priority Theme 2 Provide workplace environments that enable all
people to participate actively 1. Utilization and Development of
Human Resources

Managed based on thenumber of occupational
accidents.

II Sustainability Management 7. Sustainability promotion framework
103-2
103-3

IX Management Control 3. Compliance
3–6 Whistleblower System
GRI 404:
Training and
Education 2016
404-1

Average hours of training per year per
employee

Sustainability Library Initiatives to address the working
environment Education and Training

404-2

Programs for upgrading employee skills
and transition assistance programs

IV Priority Theme 2 Provide workplace environments that enable all
people to participate actively 1. Utilization and Development of
Human Resources

Explanation of the material topic and its
Boundary

II Sustainability Management
4. Priority themes for promoting sustainability

There are no differencesby gender in the indicators.
Due to the difficulty of
categorizing “occupational
training/education” froma large number of training
programs, indicators by
employee category are notdisclosed.

Diversity and Equal Opportunity
GRI 103:
Management
Approach 2016

103-1

II Sustainability Management 6. Status of sustainability promotion
103-2
103-3

The management approach and its
components
Evaluation of the management approach

II Sustainability Management 7. Sustainability promotion framework
IV Priority Theme 2 Provide workplace environments that enable all
people to participate actively 2. Diversity Promotion Initiatives
IX Management Control 3. Compliance
3–6 Whistleblower System

GRI 405:
Diversity and Equal
Opportunity 2016405-1

Diversity of governance bodies andemployees

IV Priority Theme 2 Provide workplace environments that enable
all people to participate actively 3. Worker-friendly Work
Environment 3–1 Work-Life Balance Initiatives
VIII Governance and Internal Control

1. Corporate Governance115Organizational
ProfileSustainability
Management

GRI Standards

Priority Theme

1

2

3

Social Activities

4

Governance andInternal Control

Management
Control

Third-party
OpinionPublication Location(Titles of items on the report/web)

Disclosed Items

Index

Omission

Material Topics
Human Rights Assessment
GRI 103:
Management
Approach 2016

103-1

II Sustainability Management
4. Priority themes for promoting sustainability

The management approach and its
components
Evaluation of the management approach

II Sustainability Management 7. Sustainability promotion framework

II Sustainability Management 6. Status of sustainability promotion
103-2
103-3

GRI 412:
Human Rights
Assessment 2016

Explanation of the material topic and its
Boundary

IX Management Control 3. Compliance
3–6 Whistleblower System

412-2

Employee training on human rights
policies or procedures

IV Priority Theme 2 Provide workplace environments that enable
all people to participate actively 2. Diversity Promotion
Initiatives 2–2 Human Rights Education

103-1

Explanation of the material topic and its
Boundary

II Sustainability Management
4. Priority themes for promoting sustainability

The management approach and its
components
Evaluation of the management approach

II Sustainability Management 7. Sustainability promotion framework

Human rights training is
conducted for all employees.
“Total hours of employee
training” are not disclosed.

Local Communities
GRI 103:
Management
Approach 2016

103-2
103-3

GRI 413:
Local Communities
2016

II Sustainability Management 6. Status of sustainability promotion
The Group has a single
segment. Accordingly,“percentage of operations
with implemented local
community engagement,
impact assessments anddevelopment programs” isnot disclosed.

Operations with local community
engagement, impact assessments, anddevelopment programs

VII Social Activities

Explanation of the material topic and its
Boundary

II Sustainability Management
4. Priority themes for promoting sustainability

The management approach and its
components
Evaluation of the management approach

II Sustainability Management 7. Sustainability promotion framework
IX Management Control 3. Compliance
3–6 Whistleblower System

414-1

New suppliers that were screened usingsocial criteria

I Organizational Profile
Suppliers

103-1

Explanation of the material topic and its
Boundary

II Sustainability Management
4. Priority themes for promoting sustainability

413-1

Supplier Social Assessment
GRI 103:
Management
Approach 2016

103-1
103-2
103-3

GRI 414:
Supplier Social
Assessment 2016

2. Supply Chain

2–2 Cooperation with

Customer Privacy
GRI 103:
Management
Approach 2016

II Sustainability Management 7. Sustainability promotion framework
103-2
103-3

GRI 418:
Customer Privacy
2016

418-1

The management approach and its
components
Evaluation of the management approach

IX Management Control 2. Risk Management
2–7 Cyber Security Initiatives

Substantiated complaints concerning
breaches of customer privacy and lossesof customer data

IX Management Control 2. Risk Management
2–7 Cyber Security Initiatives

Explanation of the material topic and its
Boundary

II Sustainability Management
4. Priority themes for promoting sustainability

IX Management Control 3. Compliance
3–6 Whistleblower System

Socioeconomic Compliance
GRI 103:
Management
Approach 2016

103-1

II Sustainability Management 7. Sustainability promotion framework
103-2
103-3

GRI 419:
Socioeconomic
Compliance 2016

116

419-1

The management approach and its
components
Evaluation of the management approach

IX Management Control

2. Risk Management

IX Management Control

3. Compliance

IX Management Control 3. Compliance
3–6 Whistleblower System

Non-compliance with laws and regulations
N/A
in the social and economic area

While the total number isknown, the information
is not disclosed due tocompany policy.

Organizational
ProfileSustainability
Management

GRI Standards

Priority Theme

1

2

3

Social Activities

4

Disclosed Items

Governance andInternal Control

Management
Control

Third-party
OpinionPublication Location(Titles of items on the report/web)

Index

Omission

Material Topics
Better Products and Services
GRI 103:
Management
Approach 2016

103-1

Explanation of the material topic and its
Boundary

II Sustainability Management
4. Priority themes for promoting sustainability
II Sustainability Management 6. Status of sustainability promotion

103-2
103-3

The management approach and its
components
Evaluation of the management approach

II Sustainability Management 7. Sustainability promotion framework
III Priority Theme 1 Promote healthy and abundant lives for all
peopleSustainability Library Other Initiatives
Activities to Respond to the Customer Feedback

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

103-1

Explanation of the material topic and its
Boundary

II Sustainability Management
4. Priority themes for promoting sustainability
II Sustainability Management 6. Status of sustainability promotion
II Sustainability Management 7. Sustainability promotion framework

103-2
103-3

The management approach and its
components
Evaluation of the management approach

III Priority Theme 1 Promote healthy and abundant lives for all
people 1. Offering Products and Services That Address Social
Needs
IV Priority Theme 2 Provide workplace environments that enable all
people to participate actively 4. Health Promotion for Employees
IX Management Control 3. Compliance
3–6 Whistleblower System

Responsibility as Institutional Investors
GRI 103:
Management
Approach 2016

103-1
103-2
103-3

Explanation of the material topic and its
Boundary

II Sustainability Management
4. Priority themes for promoting sustainability

The management approach and its
components
Evaluation of the management approach

II Sustainability Management 7. Sustainability promotion framework
VI Priority Theme 4 Invest to help build a sustainable society

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

103-1

Explanation of the material topic and its
Boundary

II Sustainability Management
4. Priority themes for promoting sustainability
II Sustainability Management
Framework

103-2
103-3

The management approach and its
components
Evaluation of the management approach

7. Sustainability Promotion

III Priority Theme 1 Promote healthy and abundant lives for all
people 1. Offering Products and Services That Address Social
Needs 1–6 Best Senior Service
IV Priority Theme 2 Provide workplace environments that enable
all people to participate actively 1. Utilization and Developmentof Human Resources 1–3 Promoting the Active Participation of
the Elderly
IX Management Control 3. Compliance
3–6 Whistleblower System

117