Sustainability
Report2022

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………………………………………………………………………… 96

T&D Insurance Group
Sustainability Statement………………………………………………………………… 5

VIII Governance and Internal Control………………………………… 101

I Sustainability Management………………………………………………………… 7
II Organizational Profile………………………………………………………………… 29

IX Management Control……………………………………………………………… 113
Third-party Opinion……………………………………………………………………… 119
Index…………………………………………………………………………………………………… 120

III Priority Theme 1………………………………………………………………………… 34
Promote Healthy and Abundant Lives for All People
IV Priority Theme 2………………………………………………………………………… 58
Provide Workplace Environments that Enable
All People to Participate Actively
V Priority Theme 3…………………………………………………………………………… 75
Help Mitigate and Adapt to Climate Change
VI Priority Theme 4………………………………………………………………………… 87
Invest to Help Build a Sustainable Society

Sustainability Report 2022
102-50 102-51 102-52

Report Publication Information
Published in

November 2022 (Previous Issue: November 2021; Next Issue: Scheduled for November 2023)

Scope of report 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 2021 to March 2022 (annual)* Also includes reports on some significant activities and events having occurred in and after April 2022.

102-53

Contact Information
Sustainability Promotion 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 representative director of the Kamakura Sustainability Institute, Ms. Ai Aonuma has extensive knowledge on sustainability. She was asked tooffer her opinion and advice on the contents of the Sustainability Report 2022 from a third-party standpoint.

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 approach to sustainability,
in addition to its sustainability initiatives. For fiscal 2022, the Group has created two different reports in order that a wider range of stakeholders canlearn about the Group’s initiatives. In addition to the Sustainability Report 2022, we have released a digest edition of the Sustainability Report 2022.
The Sustainability Report 2022 comprehensively covers the management, social, and environmental initiatives being promoted by the Group in
conformity with the Core GRI standards. Further, in the digest edition, we present the Group’s approach to sustainability and the main sustainability
initiatives taken by the Group in an easy-to-understand format. The report is written in a more casual, easy-to-read manner with a reduced numberof pages and many photographs and illustrations.

Overview of the Digest Edition of Sustainability Report 2022
Message from the President

T&D Insurance Group’s Corporate Philosophy/T&D Insurance Group’s Management Vision/

Group Structure/CSR & Sustainability Trajectory of the T&D Insurance Group

Dialogue Between Expert and Executive Vice President

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

Support Measures for Young People

Employee Dialogue

Principles That the T&D Insurance Group Endorses and Supports/External evaluation
1

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

Message from the President

102-14Creating Social Value through the Life Insurance
Business to “Sow Happiness in the World”—SDGs Management and Creation of Value—Group Long-Term Vision/SDGs
Management and Creation of Valueof value.” We established “non-financial KPIs” to quantitatively measure the creation of social value, and we arecommitted to a policy of “creation of shared value” that isUnder the Group Long-Term Vision “Try & Discovercompatible with economic value creation.

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, we defined theEmergence of Serious Social Issues/
Announcement of Sustainability Statement

T&D Insurance Group’s Management Vision as “Sow2

happiness, make change with boldness,” and we set fiveThe global outlook is becoming increasingly uncertain,

primary themes to work on in order to achieve this vision.

with frequent extreme weather events due to ongoing

One of these themes is “SDGs management and creation

climate change, the global COVID-19 pandemic, andCSR & Sustainability Trajectoryof the T&D Insurance Group• Formulated the Group Long-Term Vision• Established the Group ESG Investment Policy
UN Global
Compact signed

Principles for
Financial Action
for the 21stCentury

Group CSR Committee
established

2007
2006

2005
2004

2014
2011

CSR reportissuedGroup CSR
Charter enforced

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

UN Principles for
Responsible Investment(PRI) signed/T&D AssetManagement

other challenges. The most vulnerable in society are fac-

2021

2019
2017

2015
2012

2022

2020

2016

UN Principles
for Responsible
Investment (PRI)
signed/Taiyo LifeT&D Holdings
established• GPIF begins ESG investment• TCFD recommendations

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

• Established T&D InsuranceGroup Sustainability
Statement• Joined RE100• Establishment of Climate
Change Risk Subcommittee• Establishment of Group Human
Rights Policy

contribute to society through these businesses.

ing even more difficult lives. This situation only reinforces
my conviction that the Group, as a corporate entity thatSpecific Initiatives for Solving Social Issues

is itself a member of society, should work on SDGs management that “leaves no one behind” to create a sustain-

Based on this idea, Taiyo Life has launched Cancer andable world with resilience to various risks.

Critical Illness Prevention Insurance, which supports
efforts to prevent serious illnesses, and Daido Life has

Therefore, in May 2022, we reviewed our responsibili-

begun offering Kaisha Minnade KENCO+, which inte-ties to society through our business activities and pub-grates the functions of preparing for unexpected retire-

lished our basic policy for achieving this goal as the T&D

ment and promoting health and productivity manage-

Insurance Group Sustainability Statement.

ment. These products contribute to solving the social

The Group, whose core business is life insurance, whichissue of extending healthy life expectancy through ouris a sustainable business, provides long-term safety andinsurance business, and embody the SDGs management

security to our customers through our products and ser-that we are pursuing.

vices. Furthermore, the asset management business, inwhich we are engaged as an institutional investor, has a

In addition, the Group endorses the principles of the UN

significant public relevance and close connections to eco-

Global Compact (UNGC), and as a group we practice

nomic development and the realization of a sustainable

responsible behavior in the areas of the environment,

society. We believe that the Group has a responsibility tohuman rights, and labor.

3

Message from the President

In the area of the environment, in order to achieve net
zero emissions by fiscal 2050, we have set a non-financial
KPI in the Group Long-Term Vision of reducing our own
CO2 emissions by 40% by fiscal 2025 (compared to fiscal 2013), and are actively switching our electricity use to
renewable energy.
In addition, as a responsible institutional investor, throughconstructive dialogue with investees and the exercise of
voting rights, we aim to reduce the CO2 emissions of ourinvestees by 40% by fiscal 2030 (compared to fiscal 2020).
In the areas of human rights and labor, we have established the T&D Insurance Group Human Rights Policy,
and we regularly conduct human rights due diligence.
Most recently, we have focused on corporate harassment, which has become a major social issue, and weare examining whether appropriate measures are being
taken in the Group’s business activities.
In addition, in support of human capital, we are focusing on
promoting the active participation of women. Women constitute the majority of the Group’s employees, and as partof this commitment, leveraging the capabilities of womenis a key management issue for continuous enhancementof 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, andsupporting personal skills development.

The T&D Insurance Group Future Vision
I believe that working on SDGs management and solvingsocial issues will lead to the “creation of shared value,”
which is the Group’s future vision, and thereby “sowhappiness in the world.” We at the T&D Insurance Groupwill continue our step-by-step journey to achieve our aimof becoming an insurance group that grows sustainably inpartnership with society.

4T&D Insurance Group

Sustainability Statement
We established the T&D Insurance Group Sustainability Statementin May 2022 to express the stance of the Group with respect tosustainability issues.

1 Basic Concepts
With life insurance as its core business, T&D Insurance Group puts sustainability at the heart of its business, providing products and services that deliver safety and security to customers. In addition, as an institutional investor, theGroup is engaged in asset management, which is highly public in nature and closely linked to economic development and sustainable society building. The Group believes that it has a responsibility to contribute to society throughthese businesses.
In May 2021, T&D Insurance Group developed a Group Long-Term Vision towards fiscal 2025 under theManagement Vision: “Sow happiness, make change with boldness.” The Group Long-Term Vision identifies SDGs
management and creation of value as one of the challenges to the Group’s Growth Strategy and priority themes andsets new non-financial KPIs to quantitatively measure the created social value. The Group believes that its efforts topromote SDGs management and solve social issues will lead the Group to achieve its goals of creation of sharedvalue and sowing happiness in the world.
We, T&D Insurance Group, will take steady steps to become a sustainable insurance group that grows alongwith society.

Group Management Vision/ Group Long-Term Vision5

T&D Insurance Group Sustainability Statement

2 Sustainability Priority Themes
T&D Insurance Group has highlighted challenges in the area of sustainability related to its businesses as issues ofimportance to society and of relevance to its businesses, selected from the 17 goals and 169 targets of the SDGs,
and framed these social issues under the four sustainability priority themes as follows. The Group Long-Term Vision“Try & Discover 2025” also articulates how to tackle these themes in business activities.

Priority Theme 1 Promote Healthy and Abundant Lives for All People
We will contribute to the sustainable growth of society and to the solution of social issues through the insurance
business by offering high-quality, optimal products and services that meet customer needs.
Our Target• Increase customer satisfaction year-on-year* until fiscal 2025
For details, please see P.34

Priority Theme 2 Provide Workplace Environments that Enable All People to Participate Actively
To respect the human rights of all people, respect the personality and diversity of our employees, we ensure ahealthy and safe working environment, and develop our human resources.
Our Target• Increase employee satisfaction year-on-year* until fiscal 2025
For details, please see P.58

Priority Theme 3 Help Mitigate and Adapt to Climate Change
We will contribute to climate change mitigation and adaptation and work to create a net zero society and conserve
biodiversity through our own business activities as a provider of insurance products and services to customers.
Our Target• Reduce our CO2 emissions by 40% by fiscal 2025
• Reduce our CO2 emissions to net zero by fiscal 2050
For details, please see P.75

Priority Theme 4 Invest to Help Build a Sustainable Society
As a responsible institutional investor, we will secure stable long-term investment income and contribute to the realization of a sustainable society through investment activities undertaken in consideration of the environment, society, andcorporate governance, with the aim of growing sustainably in partnership with society.
Our Target• Reduce the CO2 emissions of investees and borrowers by 40% by fiscal 2030
• Reduce the CO2 emissions of investees and borrowers to net zero by fiscal 2050
For details, please see P.87

* Irrespective of the targets described here, we will aim to achieve each theme in a comprehensive sense.

6

I

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 ofresolving social issues.

Enterprise that can growover the medium to long term

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

Be an insurance group that> Enterprise that creates social and–economic value

shares value with society andgrows sustainably.

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Organizational
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Governance andInternal Control

Management
Control

Third-party
OpinionIndex

Sustainability Management

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: “Withour ‘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• Basic Group Policy on Human Resources• Group Risk Management Policyetc.
* All of these basic policies have been established by the T&D Holdings Board of
Directors as in-house regulations.

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 the Group’s Corporate Philosophy and by achieving sustainable growthalong 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 contributeto the sustainable 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 tohigh ethical 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 ofcivil 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 onhuman 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 maintain a 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 development of 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 governancestructure and 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 88.

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 59.

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
and will give sufficient consideration to global environmental protection based on the T&D Insurance Group CSR Charter. The
Group will 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 and adequate 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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Organizational
ProfilePriority Theme

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Governance andInternal Control

Management
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Third-party
OpinionIndex

Sustainability Management

3. The T&D Insurance Group’s Value Creation Process

Identifying important social issues

Competitive advantage sources

Business activities

Sow happiness,

We identify the social issues to be addressed
through our businesses by examining the SDGs,
social changes, technology innovation, our Groupbusiness models, and other sources.

Identifying the social issues to be addressed
through our businesses

SDGs

I. Strengthening of Core Business

Financial CapitalCore

17 goals 169 targets

Human Capital
Changes in the social environment
IssuesFurther decline in birthrate, aging
population, and population decline• Increasing needs to make self-provision
for pension, medical care, and nursingcare• Increasing social inequality• Increasingly diverse households

Technology innovation• Advances in IT technology• Advances in medical technology

Human rights issues• Emergence of new human rights issues

Risk awareness
Now, in the era of the 100-year life,
due to the aging population, more
people are suffering from chronic
diseases and dementia, and there are
increasing economic burdens on eachhousehold and society every year.
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.
Social and economic disparities havebeen widening due to the COVID-19
pandemic. Emergence of new humanrights issues.

Increased climate change risks
IssuesRise in average temperature

Diverse human resourcesIntellectual
CapitalDevelopment of a widearray of products andmanagement know-how

Social and
Relationship
CapitalStrong bond with customers
and partner companies

Risk awareness
Increase in various illness risks, suchas those of heat strokes, heat death,and respiratory diseases due to anincrease in heat stress driven byrising temperatures.

Increase in and intensification ofnatural disasters

Rise in the number of injuries andfatalities due to natural disasters
because of an increase in extreme
weather events such as typhoons
and floods.

Transition to a society with low or
net-zero carbon emissions

Increase in business costs due totighter regulations on greenhousegas (GHG) emissions and theintroduction of a carbon tax.

Further advancement of capital and risk management

Robust financial baseDistribution of
resources

Reinforcing
II. Diversification and Optimization of B
III. Further Advancement of ERM(Upgrading Capital Management)

Promote healthy and abundant lives for all people

Natural Capital
Provide workplace environments that enable all people
to participate actively

Protection of the global
environment

Corporate

We will create shared value by leveraging our cha
while enhancing our capital and risk management.
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Creation of shared value
KPIs of the Long-Term Vision (targets for fiscal 2025)
Group adjusted profit(implementation of the Group Long-Term Vision)

make change with boldness.
FY2021 (actual)

Target¥39.2 billion¥130 billion(¥116.0 billion)*business (life insurance business)

Adjusted ROE

FY2021 (actual)

2.7%(7.8%)*

Target

8.0%

Customers

Value of new business

Shareholders
Distribution of
resources

Group-wide value up

FY2021 (actual)¥166.9 billion

Target¥200 billion

ROEV• Build a digital
customer platform• CVC

Pet & Family Insurance

FY2021 (actual)

7.0%

sectors

Growing sectors

Employees

Target7.5%
Society

New business
Customer satisfactionusiness Portfolio
IV. Promoting Integrated Group Management
V. SDGs Management and Creation of ValueFY2021 (actual)

Over target level
Achieved

TargetMinimum
FY 2020level

Business Partners

Help mitigate and adapt to climate change

Employee satisfaction

Invest to help build a sustainable society

FY2021 (actual)

Over target level
Achieved

CO2 emission volume

governancearacteristics and strengths

TargetMinimum
FY 2020level

FY2021 (actual)Compared to FY2013
31.0% reduction

TargetCompared to
FY201340% reduction*Figures exclude the impact of Taiyo Life’s
reinsurance (news release dated March 31, 2022).

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4. Priority Themes for Promoting Sustainability
4-1

102-46

103-1

Sustainability Initiatives

Sustainability Priority Themes
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
Support for construction ofindustrial infrastructure

A resilient and vibrant society

Revitalization of partnerships,
collaboration with stakeholders

Support for basic education

Sustainable global environment
Environmental protection of land and sea

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.
(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 13.

(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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Management

Organizational
ProfilePriority Theme

Social Activities

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

Sustainability Management

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• Reduce 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• Help people maintain
good healthP : Prevention insurance to prevent diseases such as cancer and critical illnesses with insurance
I : Investment in funds that support businesses that contribute to improving people’s healthC : Foundation grants to welfare projects for the elderly and disabled• Promote 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 : Develop systems such as “creation of explanatory materials in foreign languages” and “establishment of an interpretation desk in multiple languages,” etc. in order to meet the insurance
needs of foreign workers in SMEs

Shared value and sustainability
theme (major activities)

Healthy andabundant lives[Priority theme 1]
Promote healthy
and abundant lives for all
people(person/household)• Encourage all people toengage in social andeconomic activities

C : Engagement and support with the Down Syndrome Association and volunteer activities tosupport people with disabilities
P : Asset-formation products for comfortable postretirement life for seniors• Support establishment andgrowth of SMEs
• Promote decent work
• Create healthy and safe
workplace environments• Provide 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 disaster
P : Commence web services for working on the solution of social issues together with SMEs

•R
 espect worker personalities
and diversity•S upport human resources andskills development

B : Education and training centered on on-the-job training, group training, support for personal
development, reskilling, and relearning
B : Introduction of a re-employment system and implementation of life plan seminars for employees
who are reaching the mandatory retirement age
B : Promotion of employment for persons with disabilities, implementation of training on LGBT(sexual minorities), and establishment of a consultation desk to promote diversity•P romote the advancement of
women•C reate healthy and safe workplace environments

B : Establishment and implementation of action plans for promoting the active participation of(workplace)
women and targets for promoting female employees to management positions
B : Implementation of a mentor system in which executives and managers support newly appointed
female managers
B : Establishment of systems for return to the workplace, including formulating a program for returning to work after childcare leave• I ncrease use of renewableenergy•P romote investments inclean energy•S trengthen resilience toclimate change

B : Set Group-wide targets to reduce CO2 emissions, reduce electricity consumption, reduce office
paper consumption, and improve the green purchasing ratio.
B : Participate in the RE100 international initiative which aims for renewable energy to be 100% ofelectricity used, and promote the introduction of renewable energy
B : Conduct “Cool Biz” in summer and “Warm Biz” in winterB : Energy saving through the Lights Down Campaign, a range of initiatives for electricity saving,utilization of the power demand monitoring system, and implementation of “no overtime days.”• Promote investments insustainable development

I : Investment in Green Bonds and investment and loans for renewable energy power generation
projects and energy efficiency 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 and the Japan Healthy Society Support Fund tosupport projects contributing to people’s health promotion
I : Exercise of voting rights and dialogue with investees based on the Principles of Responsible
Institutional Investors

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)

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14

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)• Improve energy efficiency• Enhance efficiency of
resource use• Increase reuse andrecycling activities

B : Promote initiatives to reduce office paper consumption. For example, in principle, the Board of
Directors and the Executive Management Board are now paperless.
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 andenergy• Provide equal access to
education• 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• E radicate corruption and bribery•P rovide proper information on
products and services• Ensure fair and free competition

P : Preparing easy-to-understand product brochures, policy overviews, and policy proposals tailoredto each customer’s needs
P : Sending notification of policy details to customers and confirming them in person through direct
home visit
P : Preparing and distributing service guidebooks and safety guides

Governance and internal control
of trusted corporate groups• B uilding a fair businessfoundation•B uild communities that areinclusive of the weak•B uild 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• Improve nutrition in poor
households• Take measures to combat infectious and contagious diseases• Support use of health services• Provide access to safe andinexpensive water• Provide equal access tosanitation facilities

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

A resilient and vibrant society• B asic living infrastructure• Secure equal rights inproperty ownership• Stop discrimination against
women and violence• 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• Protect marine resources andprevent marine pollution• Conserve forests• Conserve terrestrial biodiversity

C : Established “Taiyo Seimei no Mori” (the Forests of Taiyo Life) at two locations in Japan andimplemented forest conservation activities.
B : Collected and donated plastic bottle caps, used postage stamps, and other items

Sustainable global environment(other than climate change)• Environmental protection forland and sea•P romote sustainable agriculture•P rovide low-cost,reliable energy

I : Investment in social bonds which contribute to support for developing countries and measuresagainst the spread of COVID-19, etc.

A resilient and vibrant society• S upport for construction ofindustrial infrastructure• 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

Revitalization of partnerships• Collaboration with stakeholders

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GRI Material TopicGRI topic

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. Support establishment and growth of SMEs
Better Products and Servies

22. Promote 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

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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 are in line with the Group’s corporate philosophyof “aiming to be a group that contributes to all people and societies through the creation of value.” The Group will continue toincorporate contributions to SDGs into the process for selecting sustainability priority themes and make efforts to contribute toachieving SDGs through our initiatives to promote sustainability, taking advantage of the features and strengths of the business.

5-1

Sustainability Priority Themes and SDGs

Sustainability Priority Themes and the SDGs
Sustainability priority
themes16

Main related SDG
targets

Initiatives

1. P romote healthy
and abundant lives
for all people

We will contribute to the sustainable growth of society and to the solution of social
issues through the insurance business by offering high-quality, optimal products andservices that meet customer needs.

2. Provide workplaceenvironments thatenable all people toparticipate actively

To respect the human rights of all people and respect the personality and diversity of ouremployees, we ensure a healthy and safe working environment and develop our humanresources.

3. H
 elp mitigate
and adapt toclimate change

We will contribute to climate change mitigation and adaptation and work to create a net
zero society and conserve biodiversity through our own business activities as a provider
of insurance products and services to customers.

4. Invest to help build asustainable society

As a responsible institutional investor, we will secure stable long-term investment
income and contribute to the realization of a sustainable society through investment
activities undertaken in consideration of the environment, society, and corporate governance, with the aim of growing sustainably in partnership with society.

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SDG Compass Comparison Table

The SDG Compass serves as a guideline for how companies align their SDGs with their business strategies and measure and manage 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 thestatus 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.17: 5-2 SDG Compass Comparison Table

Step 1

What are the SDGs?

Understanding the
SDGs

Understanding the business case

Step 2
Defining priorities

P.16: 5. Contribution to SDGs

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

P.12: 4. Priority Themes for Promoting Sustainability

Define priorities
Define scope of goals and select KPIs

Step 3

Define baseline and select goal type

Setting goals

Set level of ambition
Announce commitment to SDGs

P.63: P riority theme 2 (Targets set for promoting female employees tomanagement positions)P.82: Priority theme 3 (Group-wide Targets and Results)
P.12: 4. Priority Themes for Promoting Sustainability

Step 4Integrating

Anchoring sustainability goals within the business• Initiatives for solving social issues and creating shared value

Embed sustainability across all functions

P.10: 3 . T&D Insurance Group’s Value Creation Process

Engage in partnerships

P22: 10. Principles That the T&D Insurance Group Endorses and Supports
P24: 11. External Evaluation• 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

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6. Status of Sustainability Promotion

103-2

103-3

FY2021 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 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 theimplementation status of those plans. Since fiscal 2019, we have set four sustainability priority themes under which we are working to promote sustainability.
FY2021 Group Sustainability Promotion Progress Report (Partial Account of Activities)
Plan
Initiatives

Do
FY2021 results/performance

Check/Act
Activities planned for FY2022• Offering Cancer/Critical Illness Prevention Insurance to prevent diseases
with insurance• Providing Maternity insurance to support women before and afterchildbirth• Providing Kaisha Minnade KENCO+, a new health promotion-type fullrange of protection which promotes health-oriented management by SMEs
• Offering Hybrid Asset Life single-premium variable whole life insurance• Deploying the Taiyo’s GENKI Project to encourage good health• Commenced Dodai?, a web service for working on the solution of social
issues together with SMEs
• Bolstered product lineups to respond to diversifying customer needs• 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• Providing insurance products and services thatmeet the needs of society• Support for maintaining good healthPriority Theme 2: Provide workplace environments that enable all people to participate actively• Creating 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)• Creating a healthy and safe working environment• Revised personnel and compensation systems so that diverse humanresources can participate actively• Enhanced various support systems to enhance the work-life balance,
including balancing work with childcare and nursing care
• Encouraged male employees to take childcare leave• The three life insurance companies have been listed in the White 500 asorganizations having outstanding health and productivity management• Introduced a home-based work system and a satellite office work system
to establish an internal structure enabling diverse work styles• Continue to advance the creation of a flexible
and vibrant workplace where diverse humanresources can demonstrate their abilities with amotivation to work and grow

Priority Theme 3: Help mitigate and adapt to climate change
Reduction in CO2 Emissions
Period: FY2021–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 consumption, controlling energy consumption, and advancing the introduction of renewable energy• FY2021 results: 0.0465 t/m2, 69.0% of baseline (31.0% reduction frombaseline)• Reduced CO2 emissions by continuing to promote
initiatives to reduce electricity consumption andpromote the introduction of renewable energy

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 Y2021 results: 101.4 kWh/m2, 91.3% of baseline (8.7% 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 23.4% from baseline in FY2021• Initiate a new five-year target from FY2019 tofurther reduce paper usage

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

Communication• Dissemination of information related to thepromotion of Group sustainability
Contribution to local communities and society• Group joint blood donations• Charity calendar exhibitions

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7. Sustainability Promotion Framework (FY2021)

103-2

103-3

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 thegoal of advancing efforts across the Group as a whole. The Committee serves as the cornerstone for promoting sustainability at
the Group. 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 thepresident 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 2021, the Committee met four times. All the information
shared and the 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 to proactively address the increasingly important issue of climate change. The subcommittees are chaired by theGeneral Manager of the Social Communication Department of T&D Holdings, who is in charge of promoting Group sustainability,
and consist of the heads 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 Group advances each Group company’s sustainability promotion activities by sharing information on sustainability promotion at each Group company, in conjunction with assisting with the management and activities of the Group SDGs Committee.
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.
• Executive officer in charge of sustainability at T&D Holdings..........................................................Kanaya Morinaka, Representative Director and Executive Vice President (FY2021)
100% attendance at Group SDGs Committee meetings in fiscal 2021
• 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 (planningand public relations departments)* Name changed to Sustainability Promotion Department following a reorganization on April 1, 2022

Sustainability Promotion System in the T&D Insurance Group (as of July, 2022)
T&D Holdings

Board of Directors
Group SDGs Committee
PresidentGroup Strategy Board

Department in charge of Promoting Sustainability
Sustainability Promotion Department(Committee secretariat)
Sustainability Advisory Committee

Executive Management Board

Climate Change Risk Subcommittee
SDGs Promotion Working Group

Departments

ESG 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

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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 financial strategy 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 chairperson is
the president. The vice chairperson is the executive officer in charge of the Risk Management Department (responsible for compliance). In addition to promoting, monitoring and improving the Group’s compliance structure, the committee investigates, plans,and discusses fair business performance, human rights violations, and other such issues. The committee verifies the compliancestatus of the T&D 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 meetings in fiscal 2021
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.
Group 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, formulating plans,
and holding consultations regarding the risks associated with outsourcing management of our business partners. In fiscal 2021,
the Committee held 16 meetings and reported the results of deliberations to the Executive Management Board and the Boardof Directors.

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9. Stakeholder Engagement102-40 102-42 102-43

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 to customers, shareholders, investors, and all other stakeholders. To maintain and even heighten our trustworthiness in theeyes of society, T&D Holdings, Taiyo Life, Daido Life, T&D Financial Life, and Pet & Family Insurance have formulated Disclosure
Rules*. In keeping with these rules, we are striving to secure the transparency of management and to practice Group-wide andwell-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 212,485
as of March 31, 2022, 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 and consultations 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 theenvironment andcontributing 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 advocated by the UN.
The UNGC proposes ten principles applying to the four areas of the protection of human rights, the elimination of unfair labor practices, the protection of the environment and the prevention of corruption, andencourages 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
22

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 thatwould facilitate the reflection of the ESG viewpoint in the decision-making processes of financial investors.

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

Principles for Financial Action towards a Sustainable Society (Principles for Financial Action for the 21st Century)
T&D Holdings, 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 their social responsibilities and play a role in the formation of a sustainable society. The principles were formulated by the Ministry of the Environment’s Drafting Committee for Environmental Finance Principles, in which financial
institutions from wide-ranging areas within the sector voluntarily participated.

Principles for Financial Action for the 21st Century[Principle 1] Basic posture
Recognizing the responsibility and role we play as financial institutions in creating a sustainable society, we aim to create
positive impacts on the environment, society, and the economy, as well as mitigate negative impacts, and take the initiative in implementing the best efforts through each business.
[Principle 2] Contribution to a sustainable global society
Leading the formation of a sustainable global society by developing and providing financial products and services that contribute to the creation and development of industries and businesses through innovation, for a steady and fair transition
in society.
[Principle 3] Contribution to the formation of sustainable local communities
We support the resolution of environmental, social, and economic issues based on regional characteristics, and lead theformation of sustainable local communities through the improvement of regional inclusiveness and resilience.
[Principle 4] Human resource development
Recognize the importance of human capital in financial institutions, and develop human resources who can think and act
on their own regarding environmental and social issues.
[Principle 5] Collaboration with Diverse Stakeholders
We recognize the importance of cooperation among various stakeholders, including financial institutions, in order to createa sustainable society.
[Principle 6] Build a sustainable supply chain
Actively address environmental issues such as climate change and biodiversity, as well as social issues such as humanrights, and build a sustainable supply chain through constructive engagement with business partners, including investment and lending partners.
[Principle 7] Disclosure of information
Recognizing that activities to enhance the sustainability of society is a management issue, we will disclose informationon our initiatives to a wide range of stakeholders and make constant improvements based on domestic and international
trends and disclosure frameworks.

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Task Force on Climate-related Financial Disclosures (TCFD)
T&D Insurance Group has stated its endorsement of the recommendations of
the Task Force on Climate-related Financial Disclosures (TCFD)*, and we are
keen to take action on disclosure of clear climate-related financial information.
* Task Force on Climate-related Financial Disclosures (TCFD): a task force established in December 2015 by the Financial Stability Board (FSB). It formulated
its recommendations for clarified, comparable, and consistent information disclosure regarding the risks and opportunities posed by climate change. These
recommendations were announced in June 2017.

RE100
The T&D Insurance Group has joined RE100*, an international initiative that aims toprocure 100% of the electricity used in business activities from renewable energy
sources. To realize a decarbonized society, the Group has set a goal of achieving netzero CO2 emissions by FY2050. To achieve this goal, the Group has set a new interim
target of “60% of electricity consumption to be derived from renewable energy
sources by FY2030.” Taking advantage of its membership in RE100, the Group will
actively promote the transition to renewable sources for the electricity it uses.
* RE100 (Renewable Energy 100%) is an initiative bringing together companies aiming to procure 100% of the electricity used in business from renewableenergy. Led by international non-profit the Climate Group in partnership with CDP.

Climate Action 100+
T&D Asset management is participating in Climate Action 100+, a global investor-led initiative calling for companies with high greenhouse gas emissions to respond to climate change
through cooperative engagement.

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 and index
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 forenvironmental 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 the index
in 2009.

Japan
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 FTSE in 2022 that consists of selected
Japanese companies with relatively excellent environmental, social, and governance (ESG) performance in each sector. Our Group has been included in
the index since it was first developed.

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Sustainability ManagementJapan
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, 2022

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.

FY2021
Excellence Award at the 3rd
Platinum Career Award
Sponsored by TOYO KEIZAI INC.
Supported by Cabinet Secretariat and Ministry of
Health, Labour and Welfare

Ministry of Economy, Trade and Industry
Certified as a DX-certified operator

Information Technology Federation of Japan
Cyber Index Corporate Survey 2021
Selected as one of the “42 companies with particularly good cybersecurity initiatives andattitudes and information disclosure which can serve as role models for others”

Ministry of Economy, Trade and Industry
Listed as a Health and Productivity
Management Organization White 500

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

12. Support Measures for Young People
Supporting the Studies of Ambitious and Capable Students(donations to the Japan Student Services Organization)
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 sharp fall in householdincomes 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 in order to contribute to encouraging international student exchanges and enhancing support for students withdisabilities, etc. at universities and other forms of higher education.
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 growth and greater awareness of social
business and to increase the number of players who are willing to engage in it. Through oursponsorship of this contest, we hope to support the next generation of leaders who arewilling to take on social issues and create value for society in order to contribute to the development of a sustainable society together.
Supporting young entrepreneurs and contributing to social business(sponsorship of musbun, Inc.)
For the purpose of supporting young entrepreneurs and social business, the Group has
begun sponsorship of musbun, Inc., which won the student category prize in the FY2021(5th) Nikkei Social Business Contest. This company supports the matching of students whowish to get involved in welfare activities with welfare providers who want to increase theirpoints of contact with students.

25

Kenji Fuma

Kanaya Morinaka

CEO, Neural, Inc. / Specially Appointed Professor,
Shinshu University

T&D Holdings, Inc.
Representative Director and Executive Vice President

Dialogue Between Expert and Executive Vice President

T&D Insurance Group’s Initiatives toAddress Sustainability Issues
Morinaka The T&D Insurance Group has formulated thefiscal 2013 level by fiscal 2025. We have also joined RE100,

Group Long-Term Vision looking ahead to fiscal 2025, withan international initiative that aims to procure 100% of the“SDGs management and creation of value” as one of its

electricity used in business activities from renewable energy

priority themes. Our aim is the “Creation of Shared Value”

sources. The fourth pillar is “Invest to help build a sustainable

that will both solve social issues related to the SDGs andsociety.” As a responsible institutional investor, we are com-

improve financial value. In addition, in order to unify themitted to ESG-conscious investment.

Group’s approach and direction and demonstrate our com-

We established a Sustainability Advisory Committee

mitment to sustainability issues to society at large, in May

based on the belief that it is important to incorporate the2022 we formulated the T&D Insurance Group Sustainability

perspectives of outside experts and the latest trends in orderStatement, in which we once again clearly lay out the four

to improve these sustainability activities, and you have gra-pillars of our approach.

ciously agreed to join the Committee as an advisor. That’s

The first of these is “Promote healthy and abundant lives
for all people,” which can be said to be the number one goal

why I’d like to take this opportunity to ask your honest opinions on the Group’s sustainability initiatives.

of the insurance business. The second is “Provide workplaceenvironments that enable all people to participate actively.”
For example, we have launched a “Head Office Anywhere”
initiative that uses DX technology so that our employees can

26

I’d like to see you play a leading role inleading the industry in a sustainable direction

work on the head office tasks regardless of their location,

Fuma When exchanging views with you all on thewhether at home or in a rural area. The point is not just to

Committee, I really feel that insurance has been intended

deal with COVID-19 but to enable a way of working thatfrom the very beginning as a system to support a safe andallows employees to balance work with childcare or nursing

secure society, which makes it a business that is closelycare. The third pillar is “Help mitigate and adapt to climate

related to sustainability by its very nature. At the same time,change.” To become carbon neutral by 2050, the Groupin these days when uncertainty is increasing, expectations

has set a goal of reducing CO2 emissions by 40% from thefor the insurance industry are very high not only in JapanSustainability
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but also in Europe and the U.S., so I think it’s commendable

emits no CO2, and green bonds. We would also like to usethat T&D Holdings has sorted out anew what is required of it

long-term funding to support social businesses that can’t be

by stakeholders and published it in the form of a statement.

part of our core business, so in June 2022, we established a

T&D Holdings is also in a position to provide long-term fund-corporate venture capital fund with a partner company withing, so I’d like to see you play a leading role in leading thethe goal of investing aggressively in startups with innovative

industry in a sustainable direction.

technologies and ideas. This is directly related to the devel-

Morinaka Among many insurance companies, Daido Life

opment of startup companies I mentioned earlier.

is one that has focused on insurance for SME owners, andAs an aside, at the fifth Nikkei Social Business Contest in

most of its 370,000 customers are companies with five2021, which we co-sponsored, to my surprise, a team of highor fewer employees. For such companies, insurance isschool students won the grand prize for developing an app

extremely important to protect the company and the live-that contributes to reducing CO2 emissions by recording CO2

lihoods of employees and their families when the owneremissions in a household account book as if it were a game.

dies or becomes unable to work due to injury or illness.

In addition to the brilliance of the idea, I was impressed that

In Japan, when an SME receives a loan from a bank, thethe members of Generation Z are so conscious and serious

company management and the individual are one and theabout the environmental issues, taking them as a crisis theysame, and the owner and the owner’s family are required towill have to face.

be co-signers. It is said that this hinders the development

Fuma With regard to non-environmental SDGs, Japan’sof startups. With that in mind, we want to provide an envi-

Ministry of Health, Labour and Welfare has taken up the topic

ronment where startups and SMEs can take on challengesof “health and nutrition” in an effort to maintain Japan’s uni-

confidently with the understanding that the essential func-

versal health insurance system and prevent the collapse oftion of insurance is “protection.”

medical care. The government has also issued alerts related

From Environment to Natural Capitalto nutrition amidst climate change, the COVID-19 pandemic,
and now the Russian/Ukrainian situation threatening foodsecurity. The Ministry has long been concerned about the

Fuma

Insurance companies are the companies with thenegative impact of climate change on the health and nutri-

greatest sense of urgency about climate change. And in theirtion of Japanese citizens, and is eager to share its aware-role as a source of long-term financing, insurance compa-

ness of the problem with the private sector and to enlist theirnies have also become central players in creating a ground-help. Looking to the future, the deeper we dig, the more

swell of climate change action. However, we should keep inchallenges arise. For companies like T&D Holdings that are inmind that there’s a growing movement that recognizes thata position to view the sustainability of the world from a very

climate change and decarbonization are no longer enoughlong-term perspective, it’s a moment of enormous risks and— we have to approach the issue as “natural capital,” includ-

opportunities, and I hope T&D Holdings will exercise leader-ing biodiversity conservation. In addition, in Japan, there’s

ship on the “Creation of Shared Value.”a growing information gap on sustainability between large

Morinaka The number of people newly diagnosed withenterprises and SMEs. I would like to see T&D Holdings fillcancer decreased for the first time in 2020. This is attributedthat gap, since as an ESG investor, you’re in a position toto the decrease in cancer screening visits due to the COVID-

quickly obtain global information on this issue, while at the

19 pandemic. We live in an era when cancer can be cured ifsame time you have an excellent channel to the SMEs.

it is detected early enough by annual cancer screenings. The

Morinaka Yes, we’re frequently asked to play that role.

decline rate of early-stage cancers that are less symptom-

Especially for SMEs embedded in overseas supply chains,

atic and more likely to be detected by screening is usually

addressing sustainability is an existential risk, and we believe

greater than that of advanced cancers that are discovered

we have a responsibility to provide information to ensure thatlater through obvious symptoms. The Ministry is therefore

they are not cut out of the supply chain. We also believe thatencouraging cancer screening, and an increasing number

increasing the level of sustainability of SMEs is beneficial toof large companies are engaged in this kind of health andus, as it leads to business stability.

productivity management, but I think there are many SMEs
where even the owners don’t get medical examinations.

Long-Term Funding to Support Social BusinessComparing cancer screening rates in Japan and the U.S.,

Morinaka As a company entrusted with funds for 30 or 40

Just improving this figure alone would have an impact, so inyears, long-term investment is something we do better thanterms of contributing to the health of everyone, we believebanks. The Group’s ESG investment balance has increased

we can be of service in this area as well.

the U.S. rate is about 80%, while Japan’s rate is about 40%.

by about ¥100 billion every year to over ¥600 billion today,

Taiyo Life also has a subsidiary called the Taiyo Life Aging

including the hydrogen power generation business, which

Society Institute that investigates and researches social

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issues such as countermeasures to the declining birth-company that solves social issues, and we should also keep

rate and extension of healthy life expectancy, publishes its

this in mind when thinking about how we communicate withresults, and develops them into insurance products and ser-employees. Finally, do you have any thoughts to share withvices. For example, walking speed gradually decreases with

the Group?

age, but it is now known that if a person’s walking speed
drops suddenly, the person may be at increased risk of mild
cognitive impairment, a precursor to dementia. We utilized

Implementing the “Creation of Shared Value”

these results in our Taiyo Life health promotion app, which

Fuma The results of sustainability initiatives are not imme-

supports customers in improving various aspects of theirdiately apparent, but it is important to accumulate them on

health including walking and sleeping. In addition, Taiyoa daily basis. I often refer to it as “the long journey.” It’s alsoLife is developing products and services such as Himawari

a journey where new challenges arise endlessly. That jour-

Dementia Prevention Insurance to help everyone live long

ney has begun anew, but as we know, there’s nothing more

and healthy lives in the era of the 100-year life.

unsettling than a journey without a clear purpose and goal,
and if stakeholders become unsettled, they’re likely to leave.

Spreading Awareness of SDGs Management
and Creation of ValueFor T&D Holdings, it’s a journey with four priority themes, on

Morinakain this ever-changing business environment.

By the way, do you have any advice on how to

spread awareness of the Sustainability Statement through-the direction and implements the “Creation of Shared Value”
Finally, another major social issue that has emerged inout the Group?

the world is the division caused by inequality. There is wage

Fuma Sustainability awareness is not something that caninequality, employment inequality, and regional inequality,change dramatically over a few hours of training. DX should

and Japan is not immune. As these disparities widen andbe used to maintain a constant flow of information, and it’s

become entrenched, various effects arise. I would like you toalso important that both management and in-house sales

do some research on this matter as well.

representatives on the front lines can explain the importanceMorinaka Thank you for your wide-ranging opinions andof sustainability in their own words, not someone else’s.

suggestions on the theme of solving social issues. The ini-Also, since most employees will be passive at first, I thinktiatives set forth in the Group Long-Term Vision are now in

it’s better to start by explaining sustainability in a way that

their second year of implementation and, with your help, areis familiar to them, for example, and by giving them tips thatmaking steady progress. The points you’ve raised will help

they will be interested in and will want to pass on to theus improve our initiatives in the future. Meanwhile, together

outside world.

with our employees, we will strive to become a better com-Morinakapany while taking care of our stakeholders. So, thank you forIndeed, if the motivation of employees increases

and the number of employees who act autonomously
increases, this will boost both productivity and profitability.
To that end, we should continue to pursue becoming a good28

which I am privileged to give advice as the Company clarifies

your continued guidance and support.

II

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 book business, 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 oftheir customers’ lives and businesses.

Group Structure as of July 1, 2022

Household Market

Small and Medium Enterprises Market

T&D Holdings is a holding company andthe cornerstone of the T&D InsuranceGroup, which consists of 28 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• FGH Parent, L.P.

Ordinary revenues

Ordinary profit

Profit*No. of employees¥2,614.3

¥57.0

¥14.1

19,645billionbillionbillion* Profit attributable to owners of parent
Figures for revenues and profits are from fiscal 2021 and the number of employees is as of March 31, 2022
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T&D Insurance Group Companies and Foundations

102-2

102-4

102-6

102-45

Organizational Structure
The T&D Insurance Group consists of T&D Holdings, 18 consolidated subsidiaries and 10 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.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/

FGH Parent, L.P.

https://fortitude-re.com/

T&D Confirm Ltd.

Investment
Management
and Advisory, etc.

Toyo Insurance Agency Co., Ltd.

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

Daido Management Service Co., Ltd.

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

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

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.
Other
Investment-related

Administrationrelated
Administrationrelated
Businesses

Taiyo Life Insurance Company

Capital Taiyo Life Insurance Limited

Insurance-related

Investmentrelated
Businesses

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

General Affairs
andCalculation-related

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, 2022.
*2 Thuriya ACE Technology Company Limited is an affiliate company for designing and developing information technology systems in Myanmar.

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Corporate Profile (as of March 31, 2022)

102-1

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

117

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:

8,534
2,319
10,853

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
8,534 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:

3,699
3,137
6,836

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.)

3,699 in-house sales representatives
1,269 non-life insurance agents

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

13,717 tax accounting agencies

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 employees

274

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: 182

Industry Association to which the Three Life Insurance
Companies Belong: The Life Insurance Association of Japan31

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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

148

Providing competitive products and services in a timely manner
Number of investment trusts: 246
Number of discretionary investment and advisory contracts: 52

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

3.6 billion yen

No. of employees

81

Products that cover the cost of veterinary carefor pet illness and injury
Selling through agents (pet shops, etc.)
368 agents 696 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

35

Description ofbusiness

Principal investment and investment management aimed at diversification and optimization of theGroup’s business portfolio• Closed book business• Other 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, 2020

March 31, 2021

March 31, 2022

17,827

18,354

18,411

(974)

(923)

(882)

Investment-related businesses

450

(17)

472

(15)

451

(16)

Administration-related businesses

781

(57)

789

(57)

783

(62)

19,058(1,048)

19,615(995)

19,645

(960)

Total

* 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, 2020 March 31, 2021 March 31, 2022
No. of employees

17,457

17,945

17,963

FY2020

FY2021

3,377

3,464

3,090

Male

3,380

3,379

3,356

159

158

142

Female14,077

14,566

14,607

3,218

3,306

2,948
2,820

Sales representatives

11,716

12,23912,233

3,100

3,181

Male

307

293

290

56

45

38

Female11,40911,946

11,943

3,044

3,136

2,782

Administrative

5,741

5,706

5,730

277

283

270

Male
(Managers)

3,073(2,108)3,086(2,085)

3,066(2,117)

103

113

104

Female(Managers)

2,688
(432)

2,620
(454)

2,664
(499)

174

170

166

* Managers include head office deputy division managers, assistant officers, and other officers.
32

FY2019Sustainability
Management

Organizational
ProfilePriority Theme

Social Activities

1 2 3 4Governance andInternal Control

Management
Control

Third-party
OpinionIndex

Organizational Profile

1-5

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
FY2019FY2020

FY2021

79.9

80.5

80.6

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 agents

Buildings

Construction, maintenance, administration of office buildings

Energy consumed

Petroleum refining and distribution, electric power providers

Waste

Waste disposal companies

Contracting work
Office buildings

ICT systems, consulting, auditing

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 wellas measures to prevent and 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 GroupCSR 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 forits 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.

33

III

Priority Theme 1

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 to promote 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 to society through the insurance businessby 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 prevention of dementia and insurance that covers a wide range ofconditions 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 toimproving people’s health

Promote the use of insurance andfinancial services for all

Customers

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

Encourage all people to engage insocial and economic activities

Customers, local communities

Deliver asset formation products for seniors to enjoy
their lives post retirement

Reduce economic andsocial risks in an aging society

PolicyResults for FY2021

Planned for FY2022

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 that meetcustomer needs• Offering Cancer and Critical Illness Prevention
Insurance to prevent diseases with insurance• Continue to provide products and services that meet the needs of society• Providing Maternity Insurance to support women before and after childbirth• Offer insurance products which evencustomers concerned about theirhealth status can apply for• Providing Kaisha Minnade KENCO+, a new healthpromotion-type full range of protection which
promotes health-oriented management by SMEs
• Offering Hybrid Asset Life single-premium variable whole life insurance• Deploying the Taiyo’s GENKI Project to encourage good health• Commenced Dodai?, a web service for working on
the solution of social issues together with SMEs
• Bolstered product lineups to respond to diversifying customer needs, etc.

34•Offer insurance products whichmeet the asset management andasset administration needs of the
100-year-life era• Expand lineup of products offering afull range of protection to meet theneeds of SME owners, modernize
coverage, develop the insurance solicitation environment, and improve
the sales tools, etc.

Sustainability
Management

Organizational
ProfilePriority Theme

1 2 3 4Social Activities

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

Priority Theme 1

1. Provision of Products and Services which Meet the Needs of Society
1-1

103-2

103-3

The Initiatives of Taiyo Life

Taiyo Life has launched the Infectious Disease Plus Hospitalization Insurance (Lump-sum Payment Type) which covers hospitalization for certain infectious diseases, including COVID-19, in response to the unprecedented situation of the spread of COVID-19
infections, and has revised our business model to respond as quickly as possible, including rollingout “hybrid sales” utilizing information via Internet advertisements, etc., and introducing “Remote
Application” which enables non-face-to-face solicitation, etc.
In FY2021, we secured funding sources for stable payment of pensions, etc. to our customers
through ceded reinsurance of individual annuities policies with high assumed investment yield, andreduced investment risk to improve future revenue and capital efficiency.
Furthermore, based on the management policy of “helping as many customers as possible live
healthy and long lives,” and looking ahead to the full-blown arrival of the era of the 100-year life, Taiyo
Life has been promoting Taiyo’s GENKI Project, an initiative that began in June 2016 to energize allof our employees, customers, and society. The aim is to address the social issue of longer healthy
lifespans, that is, living a long, healthy life. We are contributing to the “realization of a sustainable
society” which is the aim of the SDGs, through a variety of actions taking into account the conceptsof CSR, ESG, etc., such as the provision of products and services which contribute to the enhancement of the health and welfare of all people.
Product Development which Preempts the Changes of the Times
Taiyo Life is positively addressing dementia, a social issue, and isselling Himawari Dementia Prevention Insurance, etc., the first in ourseries of prevention insurance plans, as a product enabling customers
to live their old age with peace of mind. At the end of March 2022,
sales of our series of dementia-related products exceeded 790,000
policies, which shows that these products are well-received by many
people, particularly by our senior customers.
Furthermore, in June 2021 we launched Cancer and Critical Illness
Prevention Insurance, the second in our series of prevention insurance
plans. This product guarantees coverage of up to 20 million yen forcertain conditions due to 19 diseases, including cancer, acute myocardial infarction, strokes, and diabetes. In addition, by adding special
survival benefit provisions, customers can receive “preventive benefits” every two years starting one year after the policy begins.
These preventive benefits can also be used for disease prevention services, etc., recommended by our company, leading to theprevention and detection of cancer and other critical illnesses at an early stage, thereby helping customers live longer, healthierlives. These products were well received by a wide range of customers of all ages, including the middle age generation, with over
70,000 policies sold as of the end of March 2022.

Benefits

Launched in October 2018

1

Application with a simple declarationis possible

3

Coverage of dementia using double
insurance claims (diagnosis insurance
claims and treatment insurance claims)*

2

Payment of Preventive Benefits which
can be utilized for the Dementia
Prevention Service

4

Coverage of hospitalization, surgery,and the like due to certain diseases andthe like which are common in seniors* When enrolling in both “relaxed-underwriting type dementia diagnosis insurance” and “relaxed-underwriting type dementia treatment insurance”

35

Sustainability
Management

Organizational
ProfilePriority Theme

1 2 3 4Social Activities

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

Priority Theme 1

Benefits

1

Broad coverage of cancer and critical illnesses throughevolved coverage
Acutemyocardial infarction

Stomach cancer
Colorectal cancer
Lung cancer
Breast cancer
Prostate cancer
and other cancers

Chronic renal
failureCirrhosis of
the liverHypertensive
diseaseAortic aneurysm
and aortic dissection

Chronic respiratory
failureChronic pancreatitis

Other disorder of organs* Payment is subject tocertain conditions.

Benefits2

Diabetes

Benefits are paid
“when the patient hasreceived insulin treatment
continuously for 180 days”!

Insurance claims are paid
“when surgery is undergone”!

CancerStrokeInsurance claims are paid
“when surgery is undergone”!

(implanting an artificial cardiac pacemaker, colostomy, and the like)Can be utilized for disease prevention

Preventive Benefits which can be received in “as little as 1 year” can also be utilized for the Disease Prevention Service.
[Preventive Benefits]
Policy date

1 year after

3 years after

5 years after

7 years after

9 years after

10 years after

¥

¥

¥

¥

¥

Insurance
claims atmaturity¥

The insurance period and the insurance premium payment period (in the case of 10 years)
Policy date

10 years after

We are providing even more enhanced medical benefits, for example, in September 2021 we renewed the Hospitalization
Insurance (Lump-sum Payment Type), etc. in order to respond to changes in the medical environment, and in addition we launched
Surgery Coverage Insurance. In November 2021, we carried out similar product revisions in the relaxed underwriting-type insurance for customers worried about their health, and in addition we abolished the reduction period for benefits, etc. in the first fiscal
year of policies, meaning that we are now able to pay the full amount from the start of the policies.
We are also enhancing our product lineup as appropriate in Sma-Hoken, our Internet channel, and in September 2021 welaunched Maternity Insurance as a dedicated product. We developed this product based on the idea that we wanted to “deliverpeace of mind to customers who are expectant or nursing mothers and support birth and childcare through the provision of
insurance” and we are providing it as dedicated insurance for expectant mothers under the supervision of obstetricians andgynecologists.
As a financial institution agent, we launched My Kaigo Best Plus in April 2020 as a successor to My Kaigo Best which can now
arrange coverage for long-term care. In addition to the former coverage, customers will be paid insurance claims for a dementia
diagnosis if they are ever diagnosed 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 NursingCare Insurance, namely, the three major diseases benefit rider and disability income benefit rider. By introducing these riders, wehave been able to meet the needs of individuals belonging to companies and organizations, along with their spouses, who wish
to prepare financially for 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, andloss of income with one product.

36

Sustainability
Management

Organizational
ProfilePriority Theme

1 2 3 4Social Activities

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

Priority Theme 1

Delivering Peace of Mind to Families
Taiyo Life is continuously working on various reforms and improvements in order to deliver trustworthy and reliable services tocustomers over the long term, from enrollment and policy 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-house sales 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 throughour support desk, which offers ease-of-mind to our senior customers. We have also introduced the Family Registration Program,which allows the prior registration of contact information of customers’ family members as preparation in case it ever becomesdifficult to communicate with the policyholder due to the onset of dementia or hospitalization.
We are also implementing our Senior Visit Service, which involves visiting senior customers at least once a year during theenrollment period to confirm contract details and encourage customers to claim their benefits. Using our dedicated customer
service Web portal Taiyo Life My Page, customers can complete procedures without having to visit the Company, including addresschanges and other insurance maintenance procedures, use of loans and other funds, hospitalization benefits claim procedures, andmore. It is also possible to complete various procedures and benefit payments online. In October 2021, we became the first major
insurance company in Japan to expand Taiyo Life My Page so it can be used by the insured members as well, and even in the casethat the policyholder and the insured member are different, it is now possible to carry out the benefit claim procedures on My Page.

Expansion of people eligible to use Taiyo Life My Page

1

As the first initiative among the major insurance companies in Japan (*1), the people eligible
to use My Page expanded from the “policyholder” only to the “insured members” (*2) also!

2

Because the “insured members” (*2) also use My Page, payment of the benefits iscompleted in as little as ten minutes! (*3)

3

The service menu of My Page has been bolstered! (For example, commencement of
the remittance arrangement booking reception service on Saturdays and Sundays)

Image of claim for hospitalization benefits and other claims by insured members(policyholder ≠ insured members)
Until now

From now
Payment in as little as ten minutes! (*3)

Procedure completed on theInternet
Received by in-house sales
representatives (sales staff)
and at branch offices

Received through My Page

Request for a Kaketsuke-Tai visit
Request for application forms
to be posted out

Insured members* Customers can select a procedure that meets their

Received at the Call Center

Received by in-house sales Received at
representatives (sales staff) the Call Centerand at branch offices

needs, such as completing the claim procedure on
My Page, face-to-face (Kaketsuke-Tai), or having
the forms sent out.

(*1) This is the first time that insured members have been able to use the My Page service in the nine domestic life insurancecompanies with company names written in Japanese characters (Researched by the Taiyo Life as of October 7, 2021).
(*2) Insured members (adults) with the policy format of “policyholder ≠ insured members.” Note that you may not be a person
eligible to use My Page depending on your policy details, age, and other factors.
(*3) Differs depending on claim details, status of reception, and other factors.

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 when claiming benefits, allows benefit payments to be made in as little as ten minutes. In addition, we have further expanded this service. For example, in October 2020 it went fully
paperless due to claims for death benefits going paperless. Furthermore, concerning dementia, weare engaging in initiatives to follow up on customers who made claims for benefits, etc. but despitethat could not receive payment at the time of the claims because they did not satisfy the payment
criteria, in order to enable these customers to make future claims.

37

Sustainability
Management

Organizational
ProfilePriority Theme

1 2 3 4Social Activities

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

Priority Theme 1

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 and improvement of critical illnesses at an earlystage, 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 suchas MCI Screening Plus, 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 H.U.Wellness, and began offering AminoIndex® Risk Screening, which
can simultaneously evaluate the possibility of an individual currently having cancer andwhether they are at risk of future strokes, myocardial infarction, or diabetes.
Moreover, we have started provision of the Taiyo Life Health Promotion App basedon the concept of “improving health in a fun way using an app” which can support
the health promotion of customers from a variety of perspectives, including walking,sleeping, etc. This app has functions which give advice based on the number of steps
walked and hours of sleep every day regarding possible illnesses and conditions which
can be prevented and for health promotion, so that the customers can confirm theirown state of health.
Initiatives to Combat COVID-19
We launched Infectious Disease Plus Hospitalization Insurance (Lump-sum PaymentType) which covers hospitalization for certain infectious diseases, including COVID19, in September 2020. This product is a product we 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 in an era of coexistence with COVID-19, and had a huge impact on
our business, with over 250,000 policies sold in March 2022.
Furthermore, we are implementing a variety of support measures such as special
handling of various procedures, etc. for customers who have been affected by COVID19 so that they can continue their policies and claim benefits, etc. with peace of mind.
The support measures include extension of the grace period for payment of premiums
and the period for policy renewal procedures, simple and rapid payment of claims,
benefits, etc., and the waiving of interest on policyholder loans (new loans).
In order 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,
Taiyo Life is protecting the health and safety of our employees while atthe same time working on the development of new products and services
which help us live with the coronavirus.

Switching of the Business Model through the Promotion of DX
Taiyo Life has changed the way life insurance solicitation is done. For example, we introduced the Taiyo Life Concierge mobile
terminal for the in-house sales representatives in August 2018, enhanced its functions utilizing the latest IT, equipped it with consulting and presentation functions which listen to the requests of the customers and propose the optimal plan on the spot, andmade it fully paperless in all processes from concluding the policy to receipt of payment.
In October 2019, we launched Sma-Hoken which enables customers to complete the application procedures online. SmaHoken, our completely new fully-online insurance system with extensive after-sales services, combines an online insurance
quoting and application process that can be used any place and time a customer desires, with attentive visiting service from ourpersonable staff.

38

Sustainability
Management

Organizational
ProfilePriority Theme

1 2 3 4Social Activities

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

Priority Theme 1

Furthermore, in January 2021 we introduced Remote Application (non-face-to-face solicitation), which combines Sma-Hokenwith consultations with sales representatives and support with application procedures. Through this Remote Application service,proposals to a greater number of customers, including customers requiring non-face-to-face services due to the impact of COVID19, etc. and also distant customers for whom direct face-to-face applications are difficult, etc., are now possible, and these customers can now easily complete policy procedures from their own smartphones or computers.
At a time when the cold-calling activities we were carrying out previously are facing constraints due to the impact of the spreadof COVID-19, Taiyo Life has switched our business model to “hybrid sales” combining non-face-to-face services utilizing digitaltechnologies based on the promotion of DX with the face-to-face services centered on sales representatives that we have cultivated to date. Going forward, we will work even harder to meet the diverse needs of our customers.

1-2

The Initiatives of 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. In recent years, changes inthe environment surrounding SMEs and the diversification of their needs has been progressing, including longer working lives
for business owners due to medical technology advances and other changes, responses to inheritance and business succession,
growing interest in social issues, in particular health-oriented management® and the SDGs, etc. In the context of these changes
in the environment, the Company is working on “evolution of the provision of coverage” to protect SMEs and “being a partner inthe resolution of issues” to support the resolution of the various issues faced by SMEs.

Provision of protection that widely covers the human risks faced by SMEs
Proposal of a full range of protection
There are many cases in which SMEs rely on the reputation and technical capabilities of the business owners themselves for their
viability. For this reason, continuation of the business sometimes becomes difficult in the case that the business owner dies or
becomes unable to work due to a major illness or injury, etc. In preparation for this kind of situation, Daido Life calculates the funds
necessary to protect the company and family (“standard coverage” and “living support funds”) to propose reasonable integrated
coverage for the corporation and individuals (a full-range of protection).

Main product lineup
Protect corporations
Protect individuals

L-type , J-type , and T-type Products
With the arrival of the era of the 100-year life andfacing a serious lack of successors, a phenomenon
including the aging of SME owners and the lengthening of their working careers is advancing. Meanwhile,
structural changes in society and industry are presenting 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 products withcoverage that can be flexibly configured according tobusiness conditions and other factors. In response tothis situation, we launched the industry’s first “madeto-order” insurance products to provide SME owners
with long-term coverage against death, critical illness(cancer, acute myocardial infarction, and strokes), andsevere physical disability. Specifically, in July 2019, we
began offering L-type [non-participating age-specificmaturity term life insurance (specified surrender value[non-participating
suppression rate type)], J-type

To prepare
for death

Insurance to prepare
for critical illnesses

J-typeJ-type αR-typeL-type αStage-limited cancer J-type

Insurance to prepare
for serious

Insurance to prepare
for hospitalization

T-typeT-type αM-typePreparation for
old age andasset formation

physical disability

and/or surgery

Kaisha Minnade KENCO+
Insurance to prepare
for loss of income

Insurance to prepare
for nursing care costs

Asset succession
and inheritance
preparation

Shunyu Relief

Kaigo Relief αLife Gift α

Funds for which
preparation isnecessary incorporations“Standard coverage”

Risks facedby corporations
Death retirement benefits
and condolence money

Survivor retirement
benefits

Risks faced
by individuals

Individual annuity
Whole life insurance* In the case that preparation by corporations isdifficult, preparation byindividuals is necessary

Funds for which
preparation byindividuals isnecessary “Living
support funds”

39Sustainability
Management

Organizational
ProfilePriority Theme

1 2 3 4Social Activities

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

Priority Theme 1

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 tofreely configure not only the insurance amount and period,
but even the balance between premium and surrender value.

How it works (conceptual image)Made-to-orderinsurance amount

Adjusted by surrender
value suppression rate

Death or severe
disability claim

Made-to-orderbalance between
premium andsurrender value

Surrender value

Enrollment
Insurance period
Cancer Stage Limited J-type Productexpires
Made-to-order insurance period
In 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 Cancer
Stage Limited J-type product [non-participating critical illness insurance (stage III, IV cancer protection only, no surrender valuetype)], which focus on serious cancers (equivalent to stage III and IV) that have a significant impact on the running of a business.

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 isproviding 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

Application support for certification for long-term care certifications, etc.

* In 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.

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., hasbeen offered. This service, delivered as an ancillary service of Kaigo Relief , etc., is intended to help prevent disease advancement and increase the independence of people who require relatively light levels of care while insuring them against financial
risk in the event long-term care is needed.
About Neuro HALFITThe 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 your intentions, thereby inducing
improvement in your brain-nerve-musculoskeletal systems even if you have difficulty moving
your lower limbs on your own.

A look at the different types of HAL® programs

HAL lumbar type

HAL lower limb type

HAL Single Joint Type
Provided by ©CYBERDYNE, Inc.

40

Sustainability
Management

Organizational
ProfilePriority Theme

1 2 3 4Social Activities

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

Priority Theme 1

Initiatives for improving the convenience of insurance procedures andsystems tailored to environmental changes
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” toenrollment, in April 2020 we introduced the Policy“renewal-type”
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 tochanges in business conditions and other factors.
Procedures that Connect
In order to improve the convenience of customer procedures and respond to the “new normal” of coexistence with the coronavirus, we have introduced Procedures that Connect under which customers can carry out the enrollment procedures with theirown smartphone and PC, and Remote Examinations offering examinations by doctors over the videophone.
In addition, from February 2022 we also introduced Procedures that Connect to the procedures concerning insurance claims,
benefit claims, and cancellation requests.
We are continuing to try to make all insurance procedures non-face-to-face, so that customers can choose between “the security of face-to-face” and “the convenience of non-face-to-face” according to their needs.

Enrollment procedures

Customers

Claim procedure

Anytime, anywhere

Speedy payment

Procedures tailored to the circumstances of thecustomers, free from restraints on time or place,are possible

Speedy payment because there is no time lag for
posting the documents

Easy to understand in audio and video
The important matters that we definitely wantcustomers to confirm are explained
understandably with audio and video
Peace of mind due to the support of the operator
If the customer has any questions, the operator
provides support by sharing the procedures screen

Proceduresthat Connect

Timely guidance
Guidance to the status of the procedures through email
and short message service when the claim applicationis received and the procedures are completed
Smooth procedures
The procedures are completed smoothly due tothe multiple-choice input screen and automatic
checking of the input content

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 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.
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)

41

Sustainability
Management

Organizational
ProfilePriority Theme

1 2 3 4Social Activities

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

Priority Theme 1

Initiatives toward support for the resolution of the management issues of SMEs
Initiatives to Promote Health and Productivity Management*
Daido Life assists SMEs in implementing Health and Productivity Management. The aims are to contribute tocreating a society where SMEs and their employees can be active and vigorous and to solving issues faced
by Japan’s rapidly aging society.
* The Japanese term for “Health and Productivity Management” refers to a corporate management style of paying additional attention to employees’ health and strategically implementing policies aimed at employees’ health management and maintenance, andis a registered trademark of the Workshop for the Management of Health on Company and Employee, a non-profit organization

Providing the KENCO SUPPORT PROGRAM

Launch of Kaisha Minnade KENCO+

Since April 2017 Daido Life has been providing the Daido
Life KENCO SUPPORT PROGRAM in cooperation with amultitude of companies, in particular Value HR Co., Ltd.,
that possess specialized technology and know-how.
This program is a comprehensive program targeted at
SMEs. This program consistently supports implementationof 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 healthimprovement solutions and incentives that promote continuous health promotion efforts.

In order to realize “prevention of illness using health-oriented management” and “preparation for unexpected retirements,” we launched a health-promoting insurance integrating the KENCO SUPPORT PROGRAM with protection in
January 2022.
This product widely protects against a variety of risks
such as death, severe disability, physical disability, critical illness, etc.; moreover, it has introduced a mechanism which
discounts the basic policy insurance premiums the following year in the case that the customer’s “average number ofsteps per day is 8,000 steps or more every year.” We establish an “opportunity to start health-oriented management”
by getting all of the owners, executives, and employees of
SMEs to enroll in insurance together.

Sharing the declaration of health andproductivity management within the Company

01

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

Automatic recording
and visualization ofdaily activity volume
Dietary management andadvice from nutritionist

Declaration of healthand productivity
management

05

Incentive

04

Health promoted
solutionsIntroduction of healthcheckup institution andreservation by proxy02

Promotinghealthcheckup

History management ofhealth checkup results
Stress check

03

Onset
risk analysis

Kenco Mirai Yoho
Administrator menu

Support for Inheritance and Business Succession
For the enduring development of companies, we are
SME customers
supporting the owners of SMEs worried whether “theycan hand on their business to a successor smoothly”
through a variety of initiatives for the resolution of theBusiness agreement
in inheritance andissues. Specifically, for customers who have issues
business succession
regarding business succession, expert consultants
Business
Real estateLife
who have financial planning (FP) knowledge (FP and(purchase and sale and succession
insurance
consulting
effective utilization)
inheritance consultants) give advice about “methods ofTrusts
Deceasedtransferring the company’s own shares” and “risk manM&A(wills and succession
estatesupportof the company’s
settlement
agement based on financial analysis,” and we cooperate
own shares)* We are handling real estate and trusts andwith partner companies to provide the Corporate Valuedeceased estate settlement operations based on
business matching contracts and fiduciary agent
contracts with Resona Bank.
Calculation Service and M&A Support Service to calculate free of charge the corporate value of the customer
as information to be used for judging the direction of corporate management going forward. In addition, we have formed a business alliance with the Resona Group in the inheritanceand business succession field, and we are accurately providing the solutions possessed by the insurance and banking fields andtailored to the issues of the customers for a variety of worries faced by business owners.
Provision of the DAIDO Sustainability INITIATIVEIn recent years, interest in sustainability has been growing in society, including the 2050 Carbon Neutrality Declaration by thegovernment, and initiatives for the SDGs (Sustainable Development Goals) are becoming large management issues for not only
major companies but also SMEs.
Taking into account these changes in the environment, we are providing a program which helps our customers deepen theirunderstanding of the SDGs and tackle sustainability management.
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Sustainability
Management

Organizational
ProfilePriority Theme

1 2 3 4Social Activities

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

Priority Theme 1

Management aiming for the long-term continuity of the business
Sustainability management = through the resolution of a variety of environmental and social
problems (initiatives for the SDGs)
Examples of specific initiatives
for sustainability management

Customers

This is a program which boosts the practice of sustainability management by creating points of contact between “companies with an interest in the SDGs” and“companies possessing technologies
and services which contribute to the resolution of social issues” and supporting
the introduction of services and cooperation among companies.

I havean interest in
sustainability
management

I want to
start doing
somethingSupportcompany

We want
to support
sustainability
management with ourown technologies
and know-how

Daido LifeI amsearching
for a partner

Company withan interest in
the SDGs

SeminarsArrangement for one-on-one meetings

Events

Dedicated information site

Company
possessing
technologies
and services

Commencement of “Dodai?”, a site for business owners sharing their views with each otherIn March 2022 we commenced the web service “Dodai?” for the owners of SMEs to meet and tackle the resolution of social
issues together. Through this service, Daido Life, which has supported SMEs through protection until now, will put into practicethe idea of “creating the future together with SMEs” going forward.
“Dodai?” offers three functions:“Consult” (a community where the business owners can share ideas and worries with each other)“Learn” (introduction of real examples close to home for the business owners)“Try” (guidance to the service lineup of the Company useful for the management)
We are aiming for a service which can connect not only the owners of companies which have a policy with Daido Life but also
all owners of SMEs throughout Japan. The service can be used free of charge regardless of whether or not the company has apolicy with Daido Life.

Consult

It has started.

Learn

Try

Safety Confirmation System
In order to respond to the wishes of SME owners to confirm the safety status of employees accurately and promptly in the eventof large-scale disasters, in April 2019, Daido Life introduced a safety confirmation system. This service is equipped with all of thefunctions necessary for safety confirmations at SMEs in the event of a disaster, and is provided free of charge to policyholders
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 is sentout to employees automatically.

2(Employees)(Managers)

Safety status response

Response result confirmation

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.

43Sustainability
Management

Organizational
ProfilePriority Theme

1 2 3 4Social Activities

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

Priority Theme 1

1-3

Initiatives of T&D Financial Life Insurance

T&D Financial Life Insurance has set out the management vision of “carefully giving attention to our customers and partners to
become a chosen company: T&D Financial Life Insurance will partner with its sales agents to deliver future abundance and peaceof mind in the lives of our customers.” It is working on bolstering its product lineup, timely provision, and the improvement ofcustomer service to meet diversifying customers needs by “carefully giving attention” to banks and other financial institutions
as well as insurance shops and other sales agents where customers can drop in for consultations, which are its customers andpartners in all situations, including product development, service provision, and sales and administration.
Provision of asset formation products taking into account changes in the social and economic environment
Mainly 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 and other needs.
In July 2019, we launched Shogai Premium World 5. This product is the latest renewal of our Shogai
Premium World series of single-premium whole life insurance which utilizes overseas interest and foreign exchange to enable customers to leave money for their family members while receiving money
to use for themselves. We have revised the content of the product so that it can meet the broader
needs of customers. It inherits from its predecessor products the characteristic that the customers
can enroll in the insurance without paying any foreign exchange fees, but it eliminates any initial fees
previously borne by customers, and also adds a function minimally guaranteeing in yen the death
benefits of the same value as a single premium for a certain period and other functions.
In October 2019 we launched Fivetenworld 2. This product is a product which renews the single
premium individual annuities Fivetenworld utilizing overseas interest and foreign exchange, and it
newly establishes the Nursing Care and Dementia Protection Plan for nursing care and dementia as
well. Due to this, customers can now select from two plans, the Target Plan and the Nursing Care and
Dementia Protection Plan, expanding the content handled compared to previously.
In February 2020, we launched Choju Premium 2. This product is the latest renewal of our Choju Premium single premium
individual annuities which as an annuity to prepare for long lifespans enhances future annuity resources by keeping down death
benefits and the surrender value during the grace period. We renewed this product into a product under which customers can
get a recurring payment immediately after making a contract, in order to meet the customer needs to get money now while also
preparing for the future. Furthermore, we offer three distinctive courses, including the course for nursing care and dementia, so
customers can now make selections tailored to their diversifying needs.
In September 2020, we launched Shogai Premium Japan 5. This product is the latest renewal of our Shogai Premium Japan
series of yen-denominated whole life insurance which 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 the prior Nursing Care and Dementia Annuity
Payment Transfer Rider, offers advance payment of death benefits in the case that “Care Level 4” or above of the public long-termcare insurance system has been authorized or a diagnosis of certain types of dementia has been confirmed. In addition to eliminating any initial fees previously borne by customers, we have made reforms such as introducing a discount system for high costs.
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 toprepare them and their families for nursing care, dementia and inheritance while continuing to invest, with a focus on long-term
diversified investment.
In December 2021, we launched Hybrid Anshin Life. This product inherits the product features of Hybrid Asset Life which wecommenced sales of in June, but newly adds a guaranteed minimum death benefit rider, and as a service for long lifespans is a
product specialized in asset succession and asset management functions.
Moreover, in April 2022, we commenced sales of Hybrid Tsumitate Life. This product is “asset formation insurance on a newaxis which is closely attuned to the diversifying needs for the era of the 100-year life,” and it is an asset formation productwhich incorporates product schemes on a newaxis based on the market research questionnaire
conducted during its development. It can manage
funds by accumulating steadily every month, whileaiming for time dispersion when forming assets,
and in addition adds the functions of “spot increaseamounts” and “dollar-cost average plus riders”
which enable customers to effectively utilize thesurplus funds on hand, resulting in a product for
which stabler and more efficient asset formation
can be expected.

44

Sustainability
Management

Organizational
ProfilePriority Theme

1 2 3 4Social Activities

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

Priority Theme 1

Protection-oriented products taking into account changes in the social and economic environment
For customers in the working and childrearing generation, it offers protection-oriented products at anaffordable price.
It commenced sales of Kakei Ni Yasashii Shunyuhosho as a product which can “secure the monthly
income of the family left behind” and “secure income when contracting the three major diseases”
based on the concept “strong support for saving money in the household budget with inexpensive
insurance premiums” in August 2012 and it renewed this product in June 2014 so that it has now
become income protection insurance which is able to meet the needs of a broader range of customers.
In April 2020, we launched Kakei Ni Yasashii Shushin Iryo. This product is a medical insurance product updated from a prior product that enables customers to fully prepare necessary insurance coverage for everything from one-day hospitalization to long-term hospitalization, lifestyle diseases, andadvanced medical care.
In February 2021, we launched Hataraku Anata Ni Yasashii Hoken 2. This product is a product thateliminates the death benefit and provides protection against loss of income and increase in expenses due to illness and injury.
Customers may choose from two courses: the “annuity course,” which provides for a continuous loss of income due to the threemajor diseases or injury, and the “lump-sum payment course,” which provides for a temporary increase in expenses for treatment
costs and other costs, due to the three major diseases.
Initiatives to make improvements 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 solicitation agents, studying themarket environment, including various financial products, legal aspects, industry trends, and the like.
In FY2021 it commenced the handling of electronic issuing of life insurance premium payment certificates. In addition, in
response to feedback saying that designation of the death-benefits beneficiaries within the previous scope is impossible as aconsequence of the falling birthrate and aging population, it expanded the scope of death-benefits beneficiaries in insurance claim
single-premium products to “the relations of the insured members (blood relatives within 6 degrees of kinship and relatives bymarriage within 3 degrees of kinship) and their spouses.”
Initiatives to enhance customer service
T&D Financial Life is considering and pushing ahead with various efforts to further improve customer satisfaction.
From April 2021 it started the Family Registration Program in order to promote further improvement of the satisfaction of thecustomers and their families in a super-aged society. If family members are registered in advance, inquiries about policy details,
obtaining claim forms, and carrying out some claim procedures on behalf of the policyholder are possible for the registered family.
In addition, from August 2021 it partnered with Mirairo Inc. to commence the T&D Financial Life Insurance Sign Language Relay
Service. This is a service under which sign language interpreting operators use sign language and written messages in video calls
to receive questions and inquiries from customers who are deaf, customers who are hard of hearing, and customers who havedifficulty speaking, and audio interpret the content of the calls in real time.
From May 2022, it introduced an automatic voice response system to the Call Center in order to answer inquiries from its
customers quickly.

1-4

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 “T&D Japanese Equity ESG Research Fund” that makes selective investments
in companies that excel from an ESG viewpoint, and our “Health-related Social Contribution Fund” that invests in health-related
and health-management stocks.

1-5

Initiatives with Pet & Family Insurance

Insurance Protection for Precious Family Members
More pet owners recognize their pets as family members, and therefore interest in pet healthcare and its associated costs is growing. With our Pet & Family
Insurance, we have taken these circumstances into consideration and haveworked to address needs concerning pet healthcare costs. We provide Genki
Number One Smart, Genki Number One Slim, and Genki Number One Best,products that compensate for a portion of the cost of treatments for pets atveterinary clinics due to illness or injury. These products help to ensure that
pet owners can receive veterinary treatment for their pets with peace of mind.
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Sustainability
Management

Organizational
ProfilePriority Theme

1 2 3 4Social Activities

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

Priority Theme 1

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. In January 2022, the number of articles topped 200.

Voice

Introducing the Pet & Family SDGs Promotion Project Team
Launch of the Pet & Family SDGs Promotion Project TeamWe have launched the SDGs Promotion Project Team (Promotion PT) led by the
President in order to tie together the SDGs and the management vision to “primarily
use pet insurance to make the days customers spend with the pets close to themin their lives richer and happier.” We will promote the SDGs of the Company withmembers from across all divisions, regardless of department or position.

"Protect life with a pet, a member of the family"
Act boldly and with a sense of speed, without fearing change
The Promotion PT established initiatives for the Company’s SDGs taking into accountthe T&D Insurance Group’s management vision, the pet industry environment, andother factors. It established five items as the priority themes (goals) of the Company,
From left, Mari Shinoda (Policy Department),
including “Protect life with a pet, a member of the family,” in 3. “Protecting the health
Keiko Sato (Claims Service Department), andand welfare of all people” which it deemed the most important item.
Mihoko Suzuki (Policy Service Department)
In addition, in order to inform everyone at the Company about tying the SDGs to
the management targets of the Company, we are acting to ensure that everyone comes together to proceed with shared goals that crossthe barriers of the divisions to which they are affiliated, for example by highlighting the issues and initiatives of each division throughinterviews with the heads of the divisions and other measures.
In the in-house questionnaire conducted after the commencement of the activities we received a lot of feedback to the effect that “Ideepened my understanding about tying the SDGs to the initiatives of the Company.”
In the current fiscal year, the Company is aiming for “further bolstering of customer service and improvement of satisfaction” throughProduct Development and utilization of the web based on the DX Strategy and is building an efficient operational infrastructure. In addition, it is giving consideration to the environment, such as implementing office power-saving and a Go Home Early Day as climate change
countermeasures, and it is promoting work-life balance to build a comfortable workplace.
Going forward, the Promotion PT will continue to act boldly and with a sense of speed, without fearing change, to promote the SDGs.

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 convenience and satisfaction of our elderly customers. At Taiyo Life and Daido Life, this initiative was named the Best Senior Service,and through this initiative, we are developing a variety of service improvements.
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 whoare seniors. Its staff visit them at least once a year. Confirmation of insurance contract coverage, and examination of whether
claims have been fully submitted, are carried out in a careful and easily understandable manner. This service enables each of
the senior customers to live with peace 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 someproducts) by using the videophone 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, toinquire 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
and their 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 149,000 home46

Sustainability
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Governance andInternal Control

Management
Control

Third-party
OpinionIndex

Priority Theme 1

visits had been made through this service (as of the end of March 2022) since its launch in April 2016. In addition, the company
introduced a paperless procedure to claim benefits, making it possible for customers to check the content of their claims andcomplete the procedure by merely signing on the Taiyo Life Concierge.
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 afamily 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 look at” 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 with foreign exchange risks, as well as videos to introduce and explain our single-premium products, which areposted 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
for benefit claims, among other matters.
For customers whose postal items have not arrived, the Company looks up addresses and recommends making a bankdeposit when the insurance premiums have not been paid, and for customers who have not claimed their hospitalization benefits, the Company implements a text message distribution service through short message service (SMS).
The Call Center, which serves as the point of contact with customers, has introduced an automatic voice response system
in order to answer inquiries from its customers quickly.
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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Governance andInternal Control

Management
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OpinionIndex

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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 the law oflarge numbers to calculate fair premiums based on statistical data such as mortality rates and insurance accident rates presented
in life insurance tables, which are calculated separately for each age and gender. Life insurance companies maintain the fairnessof the life insurance system by adding some conditions such as additional premiums, or in the worst cases by not offering 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 uniqueinsurance products which meet a wide variety of customer needs, health conditions, gender, enrollment age and other specificcircumstances 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 orderto provide customers with proper services through consultation.
• We will comply with the applicable laws, rules and regulations insolicitation activities.
• We will endeavor to carry out adequate solicitation activities in consideration of the customer’s circumstances.
• We will give due consideration to the time and the place for solicitation activities.
• We will explain the important issues properly.

2-3• We will make efforts to enhance employee education and our training 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 Easy-to-Understand Information Award and the Another Voice Award in UCDA Award 2021
Taiyo Life received three awards in the UCDA Award 2021, at which the Universal Communication Design Association (UCDA)
commends outstanding communication design.
AwardEasy-to-Understand Information Award
Easy-to-Understand Information Award
Another Voice Award

Explanation
Awarded for something highly evaluatedby specialists
Awarded for something highly evaluatedby consumers

What was Subject to Evaluation
Remote Application
Dementia Prevention Security Guide
Taiyo Life’s health promotion app

Daido Life
Received the highest rank of “3 Stars” for HDI-Japan’s “Quality Rating” for the second consecutive year
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 2021 “Quality Rating,” scoring full marks in all five quality evaluation categories. This is
the first time in Japan for multiple points of contact at one company to receive a “3 Stars” rating with full marks at the sametime for two consecutive years.

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Sustainability
Management

Organizational
ProfilePriority Theme

1 2 3 4Social Activities

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

Priority Theme 1

Received the Another Voice Award in UCDA Award 2021
Daido Life received the following awards in the UCDA Award 2021, at which the Universal Communication Design Association(UCDA) commends outstanding communication design.
Award
Another Voice Award

Explanation

What was Subject to Evaluation

Awarded for something highly evaluatedby consumers

Daido Information (printed materials) and the explanation(video) about the Notification of Policy Details

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 productoffered•	“Overview Materials” which provide a concise overview of the product as well as information about fees and other matters•	“Important Information Sheet” enabling easy comparisons among diverse products transcending the boundaries of eachbusiness category, including the description of products and the like, the anticipated purchasing demographic, risks and fundmanagement performance, costs, cashing and surrender conditions, the possibility of conflicts of interest, and the overview
of taxation.

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 and heavy-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 case examples (Taiyo Life) (Daido Life)• Reimbursement of expenses for obtaining a medical certificate in the event that the related insurance claim is completely
rejected despite that insurance and benefit claims (from the three life insurance companies)• If a claim satisfies certain requirements, submission of medical certificate can be omitted or a copy of a medical certificate
can be accepted (from the three life insurance companies)• Handling of Invoice-less Payment for paying maturity insurance claims without submitting claim forms in the case that certain
conditions apply (Daido Life)• 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 thatthe policyholder is unable to file the claim for a certain reason (from the three life insurance companies)• Periodic follow-up of customers who take a long time to submit claim documents despite having declared an intention to
make insurance 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)

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Sustainability
Management

Organizational
ProfilePriority Theme

1 2 3 4Social Activities

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

Priority Theme 1

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.
In the case of senior customers who lack local branches and sales locations in their neighborhoods, Taiyo Life conducts confirmation activities that combine outbound calls with face-to-face distribution of brochures created for the purpose of, for example,
checking unclaimed cases by courier. Daido Life is conducting activities to confirm policy details where sales representatives andsales agents regularly give advice on and confirm the policy details and necessary amount of benefits with customers. In addition,
the company is making efforts to provide detailed services such as suggesting to customers that they also take measures against
a range of risks and have services useful for the solution of management issues.

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.
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.

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 systems through which confirmation of the safety of employees can be accurately and promptly conducted in times of disaster• Services that assess the potential for utilization of any of the approximately 200 types of public grants or approximately 80
types of public subsidies based on the situations of the companies• Services under which Labor and Social Security Attorneys assess whether there are any problems with the employment
regulations in light of the Labor Standards Act and other laws
• Services that provide information such as content and systems concerning information security to SMEs
• Specialist support for use of M&As by SMEs
• Services that calculate corporate value as a basis for judging the future direction of corporate management[Health Support]• Services enabling customers to consult 24 hours a day, 365 days a year regarding worries related to their health, including thephysical disorders they feel uneasy about in their daily lives and responses at times of emergency• Services which provide a second opinion on the current diagnosis given in an interview or by telephone, by doctors in the
medical university professor or honorary professor class• Nursing care professionals provide one-stop support in resolving a variety of concerns and problems regarding nursing care
For more details, please visit the Daido Life website.

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Organizational
ProfilePriority Theme

1 2 3 4Social Activities

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

Priority Theme 1

Dedicated Pet Consultation Center “Wan Nyan”
Through Pet & Family Insurance, we have established a pet consultation service that is only available to insurance policyholders
and insured members (pet owners). The service handles inquiries or requests for information on everyday issues that arise whenowning a pet. It is available 24 hours a day online. Advisors with specialized qualifications 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.
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 (from T&D Financial Life) is a health consultation and support service.
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 family name, loan repayment• Reissue of insurance certificates, annuity payment certificates and deferred fund payment certificates
Daido Life
• Change of information related to contract and insurance claim such as change of address, change of account, demands for
insurance claims and benefits, and surrender requests• Life insurance premium payment certificate (reissuance and electronic issuance)• 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.)• Reception of demands for insurance claims• 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 Customer Service Center of each insurance company.

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Organizational
ProfilePriority Theme

Social Activities

1 2 3 4Governance andInternal Control

Management
Control

Third-party
OpinionIndex

Priority Theme 1

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 whoare engaged in duties to provide the most suitable services to customers depending upon each individual business model. We
have developed human capital training programs for such diverse staff, and always work to provide them with the best educational
and training opportunities.
Education Program for New Employees (Taiyo Life)
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, plan forchildren’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.
Education Programs for New Sales Representatives (New-employee Education Programs and Financial Planner
Education Programs)

Preregistration
training

Registration

Attendance contract

Training andacquisition of basic
knowledge for
examination on
general education

Examination on general education

Pre-examination
training

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

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 Grade

Implementation of Education and Training for In-house Sales Representatives (Daido Life)
Training program in the development period
Daido Life is endeavoring to develop in-house sales representatives (sales staff) with a high level of knowledge and ethics so thatthey can comply with laws and regulations and other rules while meeting the variety of needs of the customers.
It positions the three years after joining the company as the “development period” and is implementing education and training
based on the Company’s original training program.
In addition to the industry-wide basic education,* the education and training is mainly comprised of basic knowledge andsales techniques so that the sales staff can give understandable explanations to customers and practice appropriate sales andservice activities.
* In addition to basic training and practical training, it implements professional courses, advanced professional courses, and education based on the continuing education system.

Commissioning
periodGeneralcourse exams

Basic
training

Training
first stage

Practical
training

Training
second stage

Main examination(first stage andsecond stage)

Regularmembersof staff

Advanced
professionalcourses

Professionalcourses

Education based on the continuing education system
Presentation
on joining
the company

Implementation of regularly-scheduled training and a full rangeof group training based on the training program

Joining the company

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3 years

Promotion

Sustainability
Management

Organizational
ProfilePriority Theme

1 2 3 4Social Activities

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

Priority Theme 1

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 June 2022)

Industry-wide
education and exam

FP skill
certification exam

Professional
Course Exam

Advanced Professional
Course ExamLife Consultant

SeniorLife Consultant

3rd Grade Certified Skilled
Worker of Financial PlanningCollege Course Exam
(6 courses)
Total Life Consultant

Acquisitionof E-DFP
qualification(873 staff
members)

2nd Grade Certified Skilled Worker ofFinancial Planning or above

1,837 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.
Proposal of Welfare Systems to Companies and Organizations
Taiyo Life is engaged in proposal activities for group insurance in order to enhance the welfare systems of companies and organizations. Due to changes in the environment such as the arrival of the era of the 100-year life and the progress of work stylereform, the needs with respect to the welfare systems of companies are also diversifying. In that context, in order to alleviate theburden of nursing care, the Company is handling products tailored to the era, including Group Life Nursing-Care Insurance, which
initiates payments when the parents of employees enter long-term care, the Monthly Fee Support Plan, a group annuity system
which offers lifetime annuity support for the fees charged by homes for the elderly and other expenses.
In addition, taking into account the fact that the average number of days of hospitalization tends to be shorter due to medical
technology advances and other factors and the present situation in which outpatient surgeries and hospitalizations due to COVID19 are increasing, the Company has developed Group Hospitalization Lump-Sum Payment Insurance to which the Surgery Rider
and the Disaster Hospitalization Lump-Sum Payment Rider, which also covers payments for COVID-19, can be added and introduced the insurance in April 2022.

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Organizational
ProfilePriority Theme

1 2 3 4Social Activities

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

Priority Theme 1

3. Improving Customer Satisfaction
3-1

102-44

T&D Insurance Group Basic Policy on Customer-oriented Business Operations

The T&D Insurance Group takes “customer-oriented” as a shared Group-wide value and has established the “T&D InsuranceGroup Basic Policy on Customer-oriented Business Operations” in order to conduct fair and adequate business activities withintegrity and sincerity that lead to profits for our customers.
In addition, we are working on fostering a corporate culture which respects the intent and spirit of this policy.
T&D Insurance Group Basic Policy on Customer-oriented Business Operations
1. Providing better products and services
We provides optimal and high-quality products and services tailored to customers’ situations and needs.
2. “Customer-oriented” proposals and sales(1) We make proposals of suitable “customer-oriented” products taking into account customers’ situations and intentions.
(2) When selling the products, we work on more understandable information provision to ensure that our customers cancorrectly understand the important information pertaining to the products.
3. Improvement of the quality of business operations
In order to build enduring relationships of trust with our customers, we work on improving the quality of business operations, including readiness for after-sales services and development of the administration and systems.
4. Appropriate management of conflict-of-interest transactions
In order to ensure that the interests of our customers are not unjustly prejudiced, we have formulated and announced apolicy for appropriately managing transactions which could constitute conflicts of interest, and we are appropriately ascertaining and managing transactions which could constitute conflicts of interest.
5. Development of human resources who practice “customer-oriented” actions and other activities(1) We thoroughly instill “customer-oriented” attitudes in our corporate officers and employees, and in order to build enduring relationships of trust with our customers, we develop human resources who have high ethics and are also equippedwith specialized knowledge.
(2) We are working to build a framework which encourages actions based on this policy.
6. Promotion framework
In order to promote “customer-oriented” corporate activities based on this policy, the group companies operating the financial businesses separately formulate policies pertaining to the initiatives of their own company, regularly report the status of
their initiatives based on the policies to the Board of Directors and other bodies, and announce the content of the reports.
In addition, we regularly carry out confirmations of whether revisions of this policy or the policies of each company arenecessary.
* The policies on implementing initiatives and specific content of the initiatives of the group companies can be seen at the Company’s website. (Japanese)
WEB

3-2

https://www.td-holdings.co.jp/information/business_operations.html

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.

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Governance andInternal Control

Management
Control

Third-party
OpinionIndex

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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
CallcenterWebsiteBranchofficeCollection by employees

Surveys (tacit opinions)
Various customer surveys

Gathering andanalyzing customer
feedback

Compliance Promotion Department

Improve operations
from the perspectiveof customers

Operational departments

System for
proposingnew measuresand the like

Smile
Post

Informalmeetings
with customers

Opinions that were given
by experts fromthe customers’ pointsof view

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

Board of Directors/Executive Management Board*1 Compliance Committee
We established the Compliance Committee with the objectives of developing and establishing a compliance promotion framework on a company-widebasis and further promoting our corporate motto of “customer-oriented corporate activities.” In addition to continuously reviewing all processes frominsurance solicitation to payments from the perspective of customers, the Compliance Committee makes reports and proposals for promotion of 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 the insights of outside experts in sound business operations from theperspective of customers. The Customer Feedback Council monitors the situation with business operations related to improving customer service andreviews the adequacy and effectiveness of the content of deliberations by the Compliance 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
and services. 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 fromparticipating customers are used to improve our business practices and customer services.

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Governance andInternal Control

Management
Control

Third-party
OpinionIndex

Priority Theme 1

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 2022, following on from March 2021, 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
New contracts
Payment of premiums(Units: no. of complaints received; proportion: %)FY2018FY2019FY2020

FY2021

No. received%

No. received%

No. received%

No. received

%

1,719

30.4

2,052

31.3

1,907

31.7

2,170

32.6

380

6.7

406

6.2

355

5.9

381

5.7

Conservation work

1,032

18.2

1,211

18.5

1,203

20.0

1,246

18.7

Insurance claims and benefits

1,127

19.9

1,272

19.4

1,060

17.6

1,508

22.6

Others

1,399

24.7

1,616

24.6

1,498

24.9

1,355

20.3

Total

5,657

100.0

6,557

100.0

6,023

100.0

6,660

100.0

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

Daido Life
Customer Satisfaction Surveys
Conducting surveys is useful in identifying hidden issues related
to Daido Life’s business that are difficult to uncover by passively
receiving customer opinions and requests.
Major examples include the new policy procedures survey
filled 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 bybusiness owners/managers that inquire about the level of satisfaction provided by our products, services and after-sale services.
Response to Customer Complaints
We define “complaint” as an expression of dissatisfaction by acustomer regarding the company’s operations. Upon receiving
complaints, we immediately respond in a sincere manner, setting out to resolve such issues. At the same time we take thesecomplaints as valuable information to be used for improving ourbusiness processes.

Customer Satisfaction Level(Corporate and Individual Business Owners)
84.7%
Very satisfied 10.8%

80.0%

82.3%

81.1%

9.0%

9.3%

9.2%

Satisfied 30.6%

28.0%

28.5%

27.9%

Fairly satisfied 43.3%

43.0%

44.5%

44.0%

FY2018FY2019FY2020

FY2021* 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.

Satisfaction Level for Each CaseAt the time of enrollment

After enrollment

At the time of claim payment

85.6%(-2.1pt)

79.3%(-0.9pt)

85.6%(-1.7pt)* The figures in the brackets is the comparison with fiscal 2020

Customer Complaints by TypeType of feedback
Purchase of life insurance policy
Payment of premiums
Procedures after making a contract(Units: no. of complaints received; proportion: %)FY2018FY2019No. received

FY2020
%

%

1,203

11.8

919

11.8

809

13.1

802

736

7.2

639

8.2

429

6.5

454

7.6

3,816

37.5

2,685

34.4

2,200

35.6

2,015

33.8

%

No. received%
13.4

Payment of insurance claims and benefits

2,169

21.3

1,475

18.9

980

15.9

1,087

18.2

Other

2,240

22.0

2,091

26.8

1,763

28.5

1,607

26.9

Total

10,164

100.0

7,809

100.0

6,181

100.0

5,965

100.0

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

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No. received

FY2021

No. received

Sustainability
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Organizational
ProfilePriority Theme

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Governance andInternal Control

Management
Control

Third-party
OpinionIndex

Priority Theme 1

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
16.1%

Easy tounderstand
59.1%

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

59.1%
16.1%
20.3%
3.2%
0.4%
0.9%

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

With respect to the application forms, 75.2% 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, 68.6% ofrespondents reported that they were “Easy tounderstand” or “Fairly easy to understand.”Easy tounderstand
54.4%

Fairlyeasy tounderstand14.2%

Outline of survey
Methodology

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

54.4%
14.2%
18.6%
1.7%
0.2%
11.0%

Survey period: The survey, together with documents forprocedures, was sent to customers whopurchased insurance policies through financial
institution agents and requested insurance
conservation procedures.
: November 1, 2021 to February 28, 2022
(Collected until March 2022)

No. of Surveys sent : 2,750
Valid responses: 527

Response rate

: 19.2%

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: %)FY2018
No. received

FY2019%No. received

FY2020%No. received

FY2021%

No. received%

New contracts

205

17.6

295

24.0

209

23.6

284

32.8

Payment of premiums

80

6.9

95

7.7

60

6.8

69

8.0

Procedures after making a contract

506

43.5

500

40.6

371

41.9

310

35.8

Insurance claims and benefits

176

15.1

156

12.7

146

16.5

118

13.6

Others

195

16.8

185

15.0

100

11.3

86

9.9

Total

1,162

100.0

1,231

100.0

886

100.0

867

100.0

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

57

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 andHuman Rights Policy, we clearly state our respect for the human rights of all people and theindividuality and diversity of all employees, as well as our commitment to nurturing humanresources 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 therisk of losing the trust of society. We believe that in order to realize a sustainable society, it is necessary to supportand show respect for the protection of human rights, and to promote the creation of a healthy and safe working
environment where employees are able to respond to the needs of society. We also believe that such measures willserve 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 andskills development
Promote the advancement of
women
Create healthy and safe
workplace environments

58

Primary Stakeholders

Initiatives

Employees

Education and training centered on on-the-job training, group training, support for personal development, and reskilling/relearning
Promotion of employment for persons with disabilities, implementation of training on LGBT (sexual minorities), and establishment of a consultation desk for each kind of harassment torespect and promote diversity

Employees

Establishment and implementation of action plans for encouraging the active participation of women and targets for promoting
female employees to management positions
Establishment of systems for returning to the workplace fromchildrearing, including returning to work after childcare leave

PolicyResults for FY2021

Planned for FY2022

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 sothat diverse human resources can participate actively• Enhanced various support systems to enhance
the work-life balance, including balancing workwith childcare and nursing care
• Encouraged male employees to take childcare leave• The three life insurance companies were recognized as Certified Health and Productivity
Management Organizations “White 500”
• Introduced the home-based work system andsatellite office work system to build structures
enabling diverse work styles, etc.

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Sustainability
Management

Organizational
ProfilePriority Theme

1 2 3 4Social Activities

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

Priority Theme 2

1. Initiatives on Respect for Human Rights
1-1

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. The Policy was formulated in accordance with the Guiding Principles on Business and Human Rights, astandard of conduct for all nations and companies developed by the United Nations Human Rights Council.
For more information, please see our website.
WEB

1-2

https://www.td-holdings.co.jp/en/csr/csr-policy/human-right-policy.html

Human Rights Due Diligence

The Group exercised human rights due diligence at the Company and its directly owned subsidiaries covering the period up to
March 31, 2022.
Initiatives on Respect for Human Rights: overall process
Commitment

STEP1• The Group has established the “T&D Insurance Group Human Rights Policy” which clearly states that the Group
respects internationally recognized human rights norms and implements human rights due diligence.

STEP2• Establish the items for confirmation in human rights due diligence.
• Establish particularly important human rights risks as the items for priority confirmation.

STEP3• Implement human rights due diligence in accordance with the formulated process.
• Investigate the status of occurrence of human rights issues within the Group.

STEP4• In the case that human rights issues are identified by human rights due diligence, the Group will formulate and execute prevention/mitigation measures and remedial measures for the relevant human rights risks.

Formulation of the process

Human rights assessment

Human rights risk mitigation measures and remedial measures* Recently, STEP 2 “Formulation of the process” and STEP 3 “Human rights assessment” have been implemented in T&D Holdings and its six directly owned
subsidiaries as human rights due diligence covering the period up to March 31, 2022.

Human rights due diligence: confirmation results
As a result of this human rights due diligence, we have confirmed that no serious human rights issues requiring correction have arisen in the Group’s business activities. This time wegave priority to confirmation of “harassment” as a particularly
important human rights risk. The status of occurrence of harassment is as shown on the right. In addition, we also confirmedthat there was no problem regarding the status of “consideration for human rights in our business activities in Myanmar.”
Going forward, we will continue to exercise human rights due
diligence in order to verify the status of the Group’s response tohuman rights issues and to confirm whether or not there are any
issues and report the results to the Group SDGs Committee onan annual basis. The contents of the report to the Committee
will be reported to the Board of Directors of T&D Holdings aswell as to the Group Compliance Committee. If human rights
issues are identified during human rights due diligence, we willtake measures to resolve them.

FY2021: Number of Harassment Incidents which Occurred
Confirmation target

Number ofincidents

Number of harassment-related consultations received*

57

Of these, the number of incidents certified as harassment

4

Of these, the number of incidents resolved during FY2021

4* Total from all reception desks

Human rights management structure(human rights due diligence)
T&D Holdings Board of Directors

Group SDGs Committee

Secretariat (HD Sustainability Promotion Department):
Report results to the Committee*1

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

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

59Sustainability
Management

Organizational
ProfilePriority Theme

1 2 3 4Social Activities

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

Priority Theme 2

2. Basic Group Policy on Human Resources
2-1

103-2

103-3

404-2

Human Resources Development Policy

At the T&D Insurance Group, we believe that our human resources, working side-by-side, are the most important driving force
behind our business activities to fulfill the T&D Insurance Group’s corporate philosophy. Since its foundation, the Group has
promoted the nurturing of a corporate culture where a diverse workforce can feel job satisfaction and reach its potential and has
established the Basic Group Policy on Human Resources 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.

2-2

Initiatives to Provide Opportunities for Growth

The three life insurance companies conduct education and training, primarily through OJT (on-the-job training), group training,support for personal development, and reskilling/relearning. Each Group company encourages autonomous career development
by each employee, by actively helping them to acquire qualifications and offering a diverse curriculum, including correspondence
education, online courses, and e-learning, according to their educational plans.
Taiyo Life, Daido Life, T&D Financial Life
The three life insurance companies support employee career formation, by providing opportunities to actively pursue skill
development.
In-house Recruiting
Under this system, employees can take up various challenges, such as application for dispatch to companies outside of theGroup, positions of their choice, MBA programs, and application for dispatch to business schools.
Personnel Exchange within the Group
Personnel exchange is promoted among Group companies for facilitating the sharing of the well-developed skills and usefulknowhow possessed by each Group company.
Phase I (2008–2012): Temporary transfer or transfer to other Group company for 1 to 2 years
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 and 2021 to prevent the spread of COVID-19

Global Human Resources Development
Taiyo Life
Looking ahead to future overseas business strategies, Taiyo Life dispatches 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.
Provision of Reskilling and Relearning Opportunities
Taiyo Life, Daido Life, T&D Financial Life, T&D Asset Management
We provide time- and location-independent online learning materials to encourage the acquisition of knowledge and skills by
employees who wish to develop themselves.
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 generalmanagers (video-based seminars) with the goal of providing new educational opportunities that contribute to the improvement of branch management. From fiscal 2020, Taiyo Life has been bolstering educational opportunities and strengthening
initiatives for manager development.

60

Sustainability
Management

Organizational
ProfilePriority Theme

1 2 3 4Social Activities

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

Priority Theme 2

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
for key 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 toreinforce their understanding 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 humanresources development. The site has a company-wide feature, My Profile function, where any employee can publish their personal profile so other employees
can read about their past experiences, strengths, and professional skills. In doing
so, the careers of individual employees can be visualized. The portal site also provides a system (known as D-Career) that lets employees seek career advice fromstaff 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
they want to become based on their own experiences and values and develops a career plan accordingly. Employees canthen 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.

2-3

Systematic Personnel Rotation

T&D Insurance Group implements systematic rotation taking into account the career aspirations, ability, and suitability of eachindividual with respect to human resources deployment needs under the business strategies of the T&D Insurance Group andeach Group company, to ensure that each employee can make maximum use of the skills they possess. 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 have experience as head office division managers are put into positions such as branch general managers, while branch managerial staff are assigned to the head office, withthe aim of improving their managerial capabilities. In addition, employees are assigned to highly specialized departments in accordance with their own characteristics, experience, and career aspirations, and they are developed into staff possessing specialized
knowledge based on their operational experience and the development plans created for each division. With the objective of thedevelopment and expansion of the population of the human resources responsible for managing the T&D Insurance Group, in
which a variety of companies exist, rotation from each company within the Group to T&D Holdings and personnel exchanges anddispatches within the Group are implemented, encouraging greater mobility of human resources within the Group.

2-4

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 andDaido Life hold life planning seminars for employees before they reach the mandatory retirement age, to give them 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 for administrative personnel, as well as a continuing employment system that extends employment up to the age of 70.
At the same time, it abolished the mandatory retirement age of 57 for managerial personnel and rolled out a scheme underwhich 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 yearsof age), let employees of all ages, including senior employees, demonstrate their capabilities more than ever before, andestablish 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 andbe highly motivated regardless of age. The company also provides educational opportunities by inviting external lecturers sosenior employees might become more motivated at work.

61

Sustainability
Management

Organizational
ProfilePriority Theme

1 2 3 4Social Activities

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

Priority Theme 2

Daido Life
From April 1, 2022, the mandatory retirement age was extended to 65 years old and a reemployment system enabling
employees to work up to 70 years old was newly established. In order to meet the needs of diverse work styles, employees
61 years old or older are provided the option of working on alternate days in addition to the option of full-time work. 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 employed on a nationwide basis who are 55 years old or older that encourages assignment topositions at offices in the location they hope for, such as their homes.

3. Diversity Promotion Initiatives
3-1

103-2

103-3

Employment of Persons with Disabilities

As of the end of March 2022, a total of 376 employees with disabilities, including 39 new recruits for fiscal 2021, worked at
the three life insurance companies, which account for 2.54% 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-hire initiative, we encourage theattendance of a placement support worker at job interviews, so that job candidates can go through the screening process withoutworry. 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 computersand 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 theemployee 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 withvarious disabilities.
Employment of People with Disabilities at the Three Life Insurance Companies
indicates limited verification has been carried out by a third party. (page 85 “3–5 Independent Assurance Report”)

Employment rate of people with disabilities (%)

FY2019FY2020

FY2021

2.52

2.60

2.54

* The organizations covered by the calculation of the employment rate of people with disabilities are Taiyo Life, Daido Life, and T&D Financial Life.
* The employment rate of people with disabilities is calculated based on the Act to Facilitate the Employment of Persons with Disabilities, etc.

Daido Life
With the aim of creating workplaces in which a highly diverse workforce can thrive, Daido Life continues to establish safe
and comfortable 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 16 members(as of March 2022).
* 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
in real time, to the head office and branches where employees with hearing disabilities work.

3-2

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 of respect for human rights, the company has created a Human
Rights Education Program, which holds courses for all employees on the topic
of human rights. In fiscal 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 forbranch 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. In fiscal 2021, it distributed
a monthly report to persons in management positions on the theme of enhancing working conditions, and it has worked topromote the fostering of an environment which does not lead to harassment and in which harassment does not occur.
62

Sustainability
Management

Organizational
ProfilePriority Theme

1 2 3 4Social Activities

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

Priority Theme 2

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 2021, manager training, video viewing training, and workplace training sessions were held on the theme ofharassment 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. Furthermore, training utilizing a suitability test
which can assess the degree of risk that a manager will engage in power harassment was held for persons in management
positions in the head office and branches.
In addition, the company participated in lectures on human rights awareness outside the company and engaged in awareness activities on various human rights issues, and similar activities, and the company accepts in-house proposals for ahuman rights slogan and carries out initiatives to deepen employees’ knowledge of human rights through awarding prizes
and displaying posters at the company.

T&D Financial LifeThe company holds human rights training to allow all employees to deepen their knowledge and understanding of humanrights, and to proactively confront human rights issues. This training also seeks to assist each and every employee in maintaining mental health, and to cultivate a healthy, harassment-free workplace environment by providing employees with abetter understanding of mental health and harassment (sexual harassment and power harassment). In fiscal 2021, thecompany held human rights training for all employees on topics such as responding to LGBT issues in the workplace andharassment. Training on cultivating a harassment-free workplace environment was also conducted for all personnel promoted
to management positions.

3-3

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
and reach their potential. Among these, the Group recognizes that enabling women to further reach their potential is an importantdriver of sustainable 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 withchildcare 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, theGroup’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

Promote diverse work
styles and support
new challenges

Systematically cultivate
and promote motivatedand talented
female employees
Maintain at

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

Maintain

20% or overMore than

30% or over

(March 2024)

20% or over(By 2030)(March 2026)

Ratio of female managers (Total of the three companies)

16.1%

16.5%

April 2018

April 2019

17.7%

April 2020

18.3%

19.3%

April 2021

April 2022

63

Sustainability
Management

Organizational
ProfilePriority Theme

1 2 3 4Social Activities

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

Priority Theme 2

Taiyo Life
• Appointment of A Female Director
The company’s first female executive officer appointed in April 2017 has been appointed as a director in June 2018.
• Education for Managers
Management training is conducted when employees are promoted to management positions, as well as regularly thereafter, so that managers will be able to smoothly carry out their duties.
• Nurturing Candidates for Management Positions
The company systematically nurtures potential management personnel by providing group training in management skills foroutstanding mid-career employees across the country, regardless of job category or gender. Employees can also acquire avariety of work experience, through opportunities such as exchanges between Group companies.
• Preparing an Environment to Enable Flexible Work Styles
In June 2017, the company expanded its flextime system to include employees on short working hours. It is working tocreate an environment where employees whose time is limited by childcare or nursing care can choose more flexible work
styles and develop their careers. Accordingly, in April 2018, the company extended the eligible scope of the system for shortworking hours from “until the April immediately after a child enters elementary school” to “until the child graduates fromelementary school.” In addition, the company has formulated a support program for employees who resume work afterchildcare 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 measuresthat aim to boost career mindsets and expand horizons. Further, opportunities are provided for employees to discuss balancing work with family life with colleagues who already have experience in such matters. Also, in April 2021, Daido Lifeappointed a new female executive officer, and in June 2021, it promoted its first female executive officer (appointed in April2018) 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 the work they have previously engaged. These include in-house internships that allow locally based employees who
have few transfer opportunities to leave their workplace for short periods to try a different job, free-agent style applications
for in-house jobs, and work assignments at outside companies in Japan.
• Development of Female Managers
For the purpose of nurturing female managers and enhancing awareness about furthering their careers, Daido Life isendeavoring 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 touniversities 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 systematicallynurture candidates for general/branch manager 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,
and Guiding and Nurturing Subordinates and Juniors, with the aim of allowing female employees to envision the type ofleader they should become, and to acquire the skills necessary to do so.

64Sustainability
Management

Organizational
ProfilePriority Theme

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Governance andInternal Control

Management
Control

Third-party
OpinionIndex

Priority Theme 2

3-4

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 compliance in companies by an outside lecturer, and attendees became more aware of the importance of engaging inLGBT initiatives as a company. In addition, working-level training sessions primarily targeting Group company human resources
division managers and other 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.
Daido Life
Daido Life is expanding the areas in which same-sex partners living together are accorded the same treatment as spouses,
including procedures for new policies, payments, and policy changes.
Response
Possible to designate as beneficiary for death benefits
Possible to 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
Possible to designate as a preregistered proxy

Date
November 2015
December 2016
April 201865

Sustainability
Management

Organizational
ProfilePriority Theme

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Governance andInternal Control

Management
Control

Third-party
OpinionIndex

Priority Theme 2

4. Worker-friendly Work Environment
4-1

Work-Life Balance Initiatives

401-1

103-2

103-3

401-2

401-3

403-1

403-2

403-3

403-4

403-5

403-6

403-7

405-1

The T&D Insurance Group companies are strengthening various initiatives, including enhancement of childcare leave and othersystems, reduction of total working hours, and introduction of the home-based work system and satellite office work system toenable diverse work styles. Accordingly, employees can make full use of their skills and increase their performance at work, while
fulfilling their responsibilities at home, such as housework, childcare, and nursing care. Furthermore, we believe that in order topromote the active participation of women, it is essential to create a workplace where women can continue working long term,
while experiencing life events such as marriage and childbirth. As part of these efforts, the Group as 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.
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 units of 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 isrequired 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 they need to take time off toprovide nursing care or undergo cancer treatment. Support for employees balancing work with nursing 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 undergoing infertility treatment. Moreover, in January 2021 thecompany made it possible for workers to take time off in units of 10 minutes to look after their child if they have fallen ill or for nursing
care and from April 2022 use of hospital leave in units of 10 minutes also became possible.

Daido Life

Efforts are being made to reduce working hours, such as the implementation of automatic computer shutdown. In addition, thecompany 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 Excellence Award at the Telework Promotion Awards
held by the Japan Telework Association, and in November 2019, the company took home the Shiny Telework Prize Excellence Award
implemented and selected by the Ministry of Health, Labour and Welfare. Further, in January 2021, the company introduced anhourly leave system for paid leave and caring for sick family members/nursing care leave which enables employees to take leave inunits of one hour. Also, in April 2021, the company launched its Work Experience Challenge system with the goal of supporting thedevelopment of each employee by providing them the 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 outside of the office.

T&D Financial LifeThe company is promoting initiatives to reduce working hours by implementing a “No Overtime Day” and a “Leave Work Early Day,”
automatically shutting down computers used for work, and other measures, initiatives encouraging employees to take paid leavesuch as making it mandatory to take planned annual leave of five consecutive business days + three business days, and home-based
work (telework) systems to realize more flexible work styles. In addition, it is advancing initiatives for the realization of work-lifebalance, such as the introduction of the system for short working hours which employees can utilize during the raising of children,
nursing care, and convalescence from illness, recommending that employees take children’s birthday leave (until the child starts elementary school) and anniversary leave, and the introduction of a childcare leave system enhanced above the statutory requirements.

Acquisition of Maternity and Childcare Leave

No. of employees taking maternity leave
Number of employees eligible to take childcare leave
Men
Women
No. of employees taking childcare leave
Men
Women

FY2019
386
499
113
386
484
113
371

FY2020
372
456
84
372
415
84
331

FY2021
415
497
82
415
463
82
381

* 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 2019 196 (96.1%) (Men 108 (100%), Women 88 (91.7%))
Fiscal 2020 172 (96.6%) (Men 84 (100%), Women 88 (93.6%))
Fiscal 2021 146 (95.4%) (Men 74 (100%), Women 72 (91.1%))
66

Sustainability
Management

Organizational
ProfilePriority Theme

Social Activities

1 2 3 4Governance andInternal Control

Management
Control

Third-party
OpinionIndex

Priority Theme 2

Acquisition of Nursing-Care Leave

No. of employees taking nursing care leave

FY2019FY2020

FY2021

1

3

3

Men

0

1

0

Women

1

2

3

FY2019FY2020

FY2021

15.4

16.1

16.5

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 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 hired
FY2020FY2019FY2021*

Percentage
Percentage
Percentage
compared tocompared tocompared to
NumberNumberNumbernumber of
number of
number ofof personsof personsof persons
employees at
employees at
employees at
fiscal year end
fiscal year end
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%

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%

270
234
34
2
104
94
10
0
166
140
24
2

4.71%
4.08%
0.59%
0.04%
1.82%
1.64%
0.18%
—
2.90%
2.44%
0.42%
0.04%

FY2019Number TurnoverFY2020

FY2021*

Percentage
Percentage
Percentage
compared tocompared tocompared to
NumberNumberNumbernumber of
number of
number ofof personsof personsof persons
employees at
employees at
employees at
fiscal year end
fiscal year end
fiscal year end

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%

273
77
65
131
138
38
30
70
135
39
35
61

4.77%
7.58%
2.22%
7.36%
4.50%
9.09%
1.84%
6.90%
5.07%
6.52%
2.69%
7.96%

* The number of administrative personnel hired and leaving employment at the three life insurance companies in fiscal 2021. All percentages are based on
the number of employees at the end of fiscal 2021.
* 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
プ ラ ナくるみチ
プ ラ ナくるみサポー

ト して い

ま

す

ん

す

サ

て

ま

子育

ト して い

て
子育

ポー

み

ん

ん

て
子育

サ

チナく
プラ
る

ポー

ト して いますT&D Information System
67

Sustainability
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Organizational
ProfilePriority Theme

1 2 3 4Social Activities

Governance andInternal Control

Management
Control

Third-party
OpinionWelfaresystemPaid leave

Index

Priority Theme 2

Workforce Composition
Information Regarding Employees and Other Workers

Category
Employment type/ contract
Administrative personnel
Full-time,
In-house sales representatives
indefinite-term
Contract employees
Full-time,
Fixed-term contract
fixed-termPart-time,Part-time
fixed-term* Exceptions are marked with aSocialinsurance

SalaryFixed
Fixed +
proportionate
Fixed
Fixed
Fixed

.

Employee Composition by Age Group

Number of employees

Number of employees

Total(men and women)

March 31, 2020

March 31, 2021

March 31, 2022

Total

17,457

17,945

17,963

Under 30

2,420

2,880

2,967

30-50

7,900

8,000

7,854

Over 50

7,137

7,065

7,142

Total

3,380

3,379

3,356

397

438

438

Under 30

Men

Women

30-50

1,784

1,779

1,723

Over 50

1,199

1,162

1,195

Total

14,077

14,566

14,607

Under 30

2,023

2,442

2,529

30-50

6,116

6,221

6,131

Over 50

5,938

5,903

5,947

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

Officer Composition by Age Group (as of July, 2022)

Men
Outside officers
Women
Outside officers

Under 30
0
0
0
0

30-49
3
1
1
1

50 or over
66
13
5
2

Total
69
14
6
3

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

4-2

Initiatives Reflecting Employee Feedback

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 obtainviews 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 establishedemployee satisfaction as a non financial KPI among the Vision’s key performance indicators, with the Group working to improve
employee satisfaction.
Employee satisfaction level survey
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 realizationof the Group’s various measures. In particular, in today’s world that is said to be in the era of VUCA, which stands for volatility,
uncertainty, complexity, and ambiguity, the autonomous actions of employees are even more necessary, and taking into accountthe present situation that the independent actions of employees based on the creation of job satisfaction has become even more
important than before, we implemented a survey of the employees of the directly owned subsidiaries, including the three life
insurance companies, which focused on the satisfaction level of the employees, one of the non-financial KPIs.
68

Sustainability
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Organizational
ProfilePriority Theme

1 2 3 4Social Activities

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

Priority Theme 2

4-3

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 Insurance Group
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.................................................. 23.6%(2) Provide workplace environments that enable all people to participate actively....... 18.1%(3) Help mitigate and adapt to climate change............................................................. 12.1%(4) Response to COVID-19............................................................................................ 11.0%(5) Message from the President..................................................................................... 8.9%
(6) Social activities.......................................................................................................... 8.8%
(7) Organizational profile................................................................................................. 6.5%
Opinions and Requests Received
Questionnaire respondents rated the report’s comprehensibility, amount of information, as well as their level of understanding of theGroup’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: initiatives for employees (initiatives aimed at improving HR systems andworkplace environments and the like); overall Group management (business outline and future vision of each Group company andthe like.); and initiatives for the global environment (forest conservation, environmentally friendly product purchasing, and the like).
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.

5. Health Promotion for Employees
5-1

103-2

103-3

403-1

403-2

403-3

403-4

403-5

403-6

403-7

Health and Productivity Management Initiatives (1)The T&D Insurance Group companies believe that the mental and physical health of the employees and their families is importantin order to realize the Group Corporate Philosophy and continue the growth of the Group, so they aim to realize workplaces where
all employees can participate in the operations with peace of mind and work enthusiastically.
Taiyo Life
Taiyo Life promotes Taiyo’s GENKI Project*, an initiative for energizing employees, customers, and society. This project provides 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.

69

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Management

Organizational
ProfilePriority Theme

1 2 3 4Social Activities

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

Priority Theme 2

Daido Life
Daido Life’s “DAIDO COCO-KARA” is a variety of actively promoted 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. 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, early regular preventive health checkups for all employees, establishment of consultation desks to discuss second opinions and cancer, the arrangement of wearable devices which allow the wearer
to measure their health status during everyday activities such as heart rate and number of steps taken (some devices are subsidized
by the company), the holding of walking campaigns, talks on health topics, the prohibition of smoking during working hours, and theintroduction of measures to help employees quit smoking (the online quit-smoking program).

T&D Financial LifeAs part of its pledge to proactively promote the creation of workplace environments where employees can participate actively
and enthusiastically 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,” automatically shutting down computers used for work, and othermeasures, promoting home-based work (telework), fully implementing regular health checkups, conducting stress checks aimed atpreventing mental health issues, acquiring Mental Health Management certification for its management staff, establishing the T&D
Medical Hotline, which employees can call to consult about mental and physical health problems, abolishing in-house smoking areas,prohibiting smoking during working hours, and subsidizing the costs of engaging in sports through in-house club activities and thelike. It is also engaged in specified medical check-ups and the provision of health guidance based on Data Health Plans in collaboration with the Health Insurance Association.

Taiyo Life, Daido Life, and T&D Financial 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
up by Ministry of Economy, Trade and Industry for the purpose of increasing the uptake of health and productivity management,
which encourages health promotion among employees (Taiyo Life and Daido Life have been listed for six years straight).
Certified Health and Productivity Management Organization – White 500
The three initiatives of “Taiyo’s GENKI Project” at Taiyo Life, “DAIDO COCO-KARA” at Daido
Life, and “T&D Financial Life Health Declaration” at T&D Financial Life are being carried out
to improve the health of employees through various measures, and they aim to realize workplaces where all employees can be both physically and mentally healthy and work in a spirited manner. The three life insurance companies were recognized as Certified Health and Productivity Management Organizations“White 500” in the large enterprise category under the Ministry of Economy, Trade and Industry’s (METI) Certified Health andProductivity Management Organization Recognition Program, which METI established with the aim of honoring organizations thatengage in initiatives to improve the health of their employees.

5-2

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.

70

Health Insurance Association
The three life insurance companies have their own independent health insurance association, which work to prevent lifestylediseases 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 healthinsurance, 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 lifestylediseases. 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 and analysis of data such as medical information (receipts for health insurance claims) and information about healthexamination results.

Sustainability
Management

Organizational
ProfilePriority Theme

1 2 3 4Social Activities

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

Priority Theme 2

Employee Dialogue

Providing Human Resources Development Programs
and Enhancing Corporate Value
In order to create a corporate culture where a diverse workforce can feel job satisfaction
and reach their potential, the T&D Insurance Group provides a variety of opportunities toimprove skills and an environment where individuals can advance their careers.

Hiromu Nakayama

Ryo OgawaYui Oki

Kenichi Tachibana

T&D Holdings
Business Development Department(T&D United Capital)
Joined in 2017

Taiyo Life
Field Education Division,
Sales Department
Joined in 2015

Daido Life
Human Resource Training Division,
Human Resource Development
Department
Joined in 2013

T&D Financial Life
Product Planning Division,
Product Department
Joined in October 2018
(mid-career hire)

Ogawa

I work in the Field Education Division of Taiyo Life,follow up after sales launch, and manage progress.

where my main duties include training for SS (sales staff)

Nakayama

assistant managers (employees responsible for training

the Business Development Department of T&D Holdings,

the in-house sales representatives) of all branches acrossand I am currently working on the launch of our new closed

Japan, online training for in-house sales representatives

book business. The closed book business acquires andat all branch offices, and preparation of various materials

consolidates blocks of policies in force (“closed books”) of

related to these training programs.

products that other insurance companies have stopped sell-

Tachibana

I work in the Product Planning Division at

ing and monetizes them by increasing their value. In simple

T&D Financial Life, where I’m involved in the development

terms, it’s a reinsurance business. Specifically, I’m involvedof new products and the revision of existing products forin managing the investment portfolio of Fortitude Groupfinancial institutions and independent insurance agents

Holdings, LLC., our affiliate that specializes in closed book(insurance shops that handle products from multiple insur-

business. In this role, I’m absorbing know-how, studyingers). Specifically, we research market trends, come up

the development of the closed book business in Japan, andwith ideas for new products, plan products, promote sales,

working to develop new investment opportunities.

I was transferred to T&D United Capital from71

Sustainability
Management

Organizational
ProfilePriority Theme

1 2 3 4Social Activities

Governance andInternal Control

Management
Control

Priority Theme 2

Oki

Third-party
OpinionIndex

Employee Dialogue

I work in Daido Life’s Human Resource Training

at the branch office, but even though I could tell them a

Division, where I’m in charge of managing training pro-

few things based on my past successes, my existing skills

grams for agency sales representatives, mainly of tax

were limited when it came to motivating the junior staff

accountant offices, and operating an on-the-job training

members individually. That’s why I decided to take advan-

system for sales representatives. Also, since Daido Life

tage of this program, because I thought it would be a good

dropped individual goals and changed them to team goals,

experience to work at the head office, where I could learn

we’re conducting training and awareness surveys associ-from multiple perspectives.

ated with this switch.

Nakayama

What human resource development
programs do you use?

For my first three years in the company, I was

responsible for training in-house sales representatives at a
branch office of Taiyo Life, and then I transferred to my current department, where I’m involved in the closed book business. Since we’re building the business ourselves, there’s no

Ogawa Taiyo Life prioritizes the training of young career-

special training program; it’s based on self-study and on-the-track employees, and as part of this policy, they can study

job training. We have teleconferences with our overseas

at business school through an open application process. I

corporations two to three times a week, so communication

took advantage of the program to attend a critical thinking

in English is essential. At the time my English was not flu-

course to improve my business skills. I feel that learningent, so my boss had to help me for a while. Meanwhile, I

together with people outside the company gave me a very

attended an English language training program and honed

valuable opportunity to come into contact with various opin-

my English communication skills. And since I had no knowl-

ions and ways of thinking.

edge of investment and investment management, I also

Tachibana

I took the same critical thinking course as Mr.

started studying to become a securities analyst. I’ve learned

Ogawa. It’s a short three-month course aimed at teachinglegal and other practical matters related to M&A throughyou the skills to encourage behavioral changes in others bypractice. Now that I’ve been assigned to my current depart-clearly articulating the issues at the heart of problems faced

ment, there are lots of learning opportunities in addition toin the workplace and explaining them in a logical manner.

on-the-job training.

As Mr. Ogawa said, it was a very intense experience where
you’re actively learning together with people outside thecompany.
Oki

How do you apply what you’ve learned
in your work?

I entered the company as a “locally-based employee(area career-track),” which does not involve nationwide relo-Ogawa After taking the critical thinking course, I got into

cation. I worked in agency sales for 8 years, and in my 9th

the habit of constantly questioning what the true issue isyear I took advantage of the “Career Challenge System.” Asand thinking deeply about the nature of things. In our train-

I explained earlier, in the Human Resource Training Division,

ing for SS assistant managers across Japan, I ask them toI take on the challenge of supporting branch offices stand-get to the essence of things and to stick to what the issue

ing in the completely opposite position when comparedis and what is important to solve it. One of our most import-with the past. I was also responsible for training junior staff

ant tasks is to analyze sales data and use it to drive subsequent results. In doing so, I’ve become very conscious of“missing the forest for the trees” to avoid into such a situation, which is to say, not seeing the whole or the essence
because one is too caught up in the branches and leaves.
Tachibana Adding to what Mr. Ogawa just said, I learned
the importance of prioritizing and addressing the various
challenges that we face every day, and organizing what myargument is and the reasoning behind it in a way that ismutually exclusive and collectively exhaustive, and communicating it in a way that is convincing from the otherparty’s point of view. In particular, the Product Planning
Division does not start until the other party makes a move.
Therefore, whether it’s oral explanation or document preparation, I think attending the course helped me a lot to start
thinking about things from the standpoint of the other party,
imagining the situation of both sales side and consumer
side, what is of most interest to them, and how to convey
our suggestions.

72

Sustainability
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Organizational
ProfilePriority Theme

1 2 3 4Social Activities

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

Priority Theme 2

Employee Dialogue

Ogawa

I try to approach them with the attitude of “let’s

work hard together,” treating them as equals rather than
my juniors. I value our attitude of proceeding with mattersthrough consultation rather than one-way commands.
Tachibana

My previous job was in sales at a bank, and I

came to my current department after working in sales atour company. I feel that these experiences have given me
strengths in certain areas, but I treat both my seniors andjuniors with the understanding that they have various experiences and strengths that I don’t have. In other words, I
try to build a relationship in which we can say anything toeach other with no division between seniors and juniors sothat we can take advantage of each other’s experiences andlearn from each other.
Nakayama Your comments are very helpful, thank you.

What kind of career development doyou have in mind for the future?
Oki While working in my current department, I began tolearn about coaching, including acknowledgment skills, andOgawa

I think my teaching skills have improved. When I worked in

Life sales office, and in support of this, I was sent to recruit

agency sales at the branch office, communication between

and train in-house sales representatives for three to four

myself, the agency, and future customers was all one-on-

months. This reminded me once again that I feel fulfilled

one communication. In other words, I didn’t have to listen

when I can contribute to the growth of our in-house sales

to the opinions of various people, I just had to think about

representatives. In my current department, I’m developing

the person in front of me. However, head office opera-

my own sales skills while fostering the employees in charge

tions are completely different, and basically communica-of training the in-house sales representatives. Also, in mytion is one-to-many. No matter what measures you take,critical thinking class, I learned how to communicate to oth-

you need to listen to opinions from a variety of people. In

ers. Eventually, I would like to experience being a branchthese non-one-on-one communications, people tend to be

manager so that I can use these skills more in practice,overwhelmed by differences in opinions and positions andespecially in training the branch’s in-house sales represen-lose sight of the purpose of the meeting or training. In suchtatives. After that, I envision a career plan in which I would

situations, I’ve gradually learned how to clarify the purpose

return to the Sales Department and contribute to improv-of what I’m trying to do and communicate with each person

ing the training level of in-house sales representatives on aface-to-face.

company-wide basis.

Recently, I was involved in launching a new Taiyo

Nakayama At first, I was worried about communicating
in English, but now that I use English every day, I’m able
to use it in my work. My skills in examining investment
opportunities have also gradually reached a level where I
can apply them to my work thanks to the help of senior staff
who have a wealth of knowledge and expertise.
Unlike the rest of you, I’m in a situation where there areno junior colleagues in my department to teach. Can you
give me some advice on how to deal with junior colleagues
in the future when I’m in a position to teach them?
OkiFirst, as I mentioned earlier, I try to listen to the otherperson’s ideas first, rather than imposing my own, whichis my natural tendency. Another piece of advice is to thankthem when they do something for you and apologize when
you make a mistake. Also, instead of reacting negatively
when they fail, I try to react positively, by finding and praising the good things. For example, I’ll say, “It was good up
to this point, but next time, let’s watch out for this, and try
to improve that.”73

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Management
Control

Third-party
OpinionPriority Theme 2

Oki

Index

Employee Dialogue

I intend to use the multifaceted perspective I devel-

oped at the head office to help foster junior staff. I’ve always
been impatient by nature, and when junior staff asked me,“What’s this? What should I do next?,” I tended to respond,“Do this, do that, do that,” rather than teach them. However,as a result of my experience working at the head office,instead of giving one-way instructions to junior employees
or imposing my own ideas on them, I’ve begun to focus oneliciting what problems they’re struggling with and how tosolve them. If the opportunity arises, I hope to experience
head office work outside of my current department, andeventually, as a manager, contribute to the creation of anorganization where junior staff can freely demonstrate theirabilities and achieve self-fulfillment.
Tachibana

I still feel a gap with my boss in skills such asgetting buy-in from various people to achieve objectives,
encouraging others to change their behavior, and getting
them to take action. To close this gap, I would like to actively
apply what I learned in the critical thinking course, hone my

Ogawa After interacting with people from different

skills in management work, and build a solid foundation forindustries and departments at the business school, I felt

career advancement.

that interaction between Group companies is significant inNakayama

I would like to get the greatest possible

the sense of having a balanced mindset that is not biased

advantage out of this opportunity I’ve had to gain valuable

toward the thinking of our own company or department. At

experience in a highly specialized department at a young

the same time, it fosters a competitive spirit, which I thinkage. On top of that, if I have an opportunity, I would likeis very important for our growth as a Group.

to experience overseas investment management, and in

Nakayama

the future, I would like to be in charge of the investment

ous experiences such as Daido Life, Taiyo Life, and the out-

management department. For the time being, however, I’mside world. In addition, I have exchanges with many differ-

focused on making the new business of closed books one

ent departments, and I’m fortunate to learn a lot. As you allof the Group’s profit pillars, while learning more every day

said, I think that interaction within the Group is important

through my work.

when we consider the growth of the Group.

What other programs are necessary forthe sustained growth of the Group?

Tachibana

In my department, there are people with vari-

It would be great if we could plan “hands on”

training programs across the Group, regardless of whether
you are a salesperson or office worker. It would be place
where participants actively put the information and knowl-Oki

I would like to see more Group-wide exchange pro-edge shared there into practice in the field and meet regu-

grams and training. It’s been 10 years since I joined the com-larly to exchange information on their progress and reflec-pany as a new graduate, but when I talk with mid-careertions. Moreover, since we’re in an era in which we must

recruits during the training, I sometimes feel that my per-develop high value-added products and innovative sales

spectives and insights are narrow. When I first joined themethods in order to survive, it seems to me that it’s becom-

company, we had one or two days of joint group work withing more and more necessary to cultivate autonomous andTaiyo Life during the new employee training, and I remem-

specialized employees who can think and act on their own

ber thinking that it was a good learning experience because

initiative and have strengths in specific fields. It’s importantthe company cultures were quite different. Since we areto cultivate employees who can learn, act, and communi-

Group companies, we should have the opportunity to incor-

cate independently, rather than waiting for instructions. In

porate each other’s good points and suggest points thatthat sense, I think we should enhance the Career Challenge

need to be improved. When I took advantage of the Career

System. I also think we need to create a system in which

Challenge System, it broadened my horizons immediately.

career counselors assist individual employees in formulat-

Also, here at this roundtable discussion, I feel I’ve learned

ing their career visions. It would provide opportunities anda lot about Mr. Nakayama’s closed book business, and I’ve

venues for employees to take stock of their career to date,become familiar with the work of T&D Holdings. I think

identify challenges and strengths, and think about wheremore exchanges between Group companies and depart-

they want to be in the future.

ments would strengthen the Group’s sense of unity.

74

V

Priority Theme 3

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 Session of the Conference of the Parties to the United Nations Framework Convention on
Climate Change in December 2015, to keep the rise in global average temperature fully below
2ºC in comparison to before the Industrial Revolution and pursue efforts to limit this rise to
1.5ºC. Achieving net zero emissions and carbon neutrality by 2050 is required to realize thistarget. To transition to a low carbon/decarbonized society and adapt to climate change, it will
be necessary to transform the industrial structure on a large-scale and modify our behavioral
patterns. The T&D Insurance Group also remains cognizant of the fact that we must do our part as a member of society.
The T&D Insurance Group formulated the T&D Insurance Group Environmental Policy* to clarify the Group’s stanceon the environment.The Policy is to carry out business activities with full awareness of the importance of environmental
concerns, and to ensure 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, basedon the above Policy, the Group has set out its Green Purchasing Standards and Detailed Rules and gives priority to thepurchase 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 wellas 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 themSocial Issues

Primary Stakeholders

Initiatives

Strengthen resilience toclimate 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 “no overtime days”

Enhance efficiency of resource use

Local communities

Promotion of “green purchasing” that contributes toprotecting the environment, promotion of reduction andrecycling of waste

PolicyResults for FY2021

Planned for FY2022

To contribute to climatechange mitigation and adaptation through our own business activities as a provider
of insurance products andservices to customers andthrough our actions as an
institutional investor• Established “CO2 emission targets” in the nonfinancial KPIs in the Long-Term Vision and declared the achievement of net zero by FY2050 in
our own company and investees and borrowers•
Further reduce CO2 emissions bypromoting the introduction of renewable energy• Participated in the RE100 international initiative
which aims for 100% of electricity used to be
derived from renewable energy• Implemented quantitative scenario analysis oftransition risks to further enhance compliancewith TCFD, etc.

• Implement “physical risks: quantitative
analysis of the impact on underwriting
profitability” in order to continuously
advance the further enhancement ofcompliance with TCFD, etc.

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1. Promotion Framework
1-1

103-2

103-3

Promotion Framework (Environmental Management)
T&D holdings
Board of Directors
Executive Management Board

Group SDGs Committee*1
Department in charge of
Promoting Sustainability
Sustainability Promotion Department(Committee secretariat)*2

External institutions
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 chairman of the Group SDGs Committee is the Representative Director and President. The vice-chairmen are a Director and Senior Managing Executive
Officer (with jurisdiction over the Sustainability Promotion Department) and an executive officer (in charge of the Sustainability Promotion Department).
*2 The committee 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 Disclosures (TCFD), established by the Financial Stability Board (FSB), formulated its
recommendations for clarified, comparable, and consistent information disclosure regarding the risks and opportunities posed 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 and deliberating its policies related to SDGs and CSR, along with measures concerning the global environment and social issues.
• The Group SDGs Committee is chaired by the Representative Director and President, who concurrently serves as chairpersonof the Board of Directors, and consists of the directors and general managers in charge of Sustainability/CSR and investment
management departments at Group companies. The Committee formulates basic policies regarding the global environment andsocial issues such as SDGs, and the targets and initiatives for climate change action. It is supervised by the Board of Directors,
monitoring of the status of the initiatives is implemented every six months, and a report is made to the Board of Directors.
• 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, the Vice President
and executive officers in charge of specified areas of operations, for the purpose of deliberating important matters related to
management of 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• The following scenario analysis was carried out in order to assess the impact of climate change risks (physical risks*1 and transition risks*2) on the Group.
*1 Business risks associated with natural disasters caused by extreme weather such as typhoons and floods, and those associated with phenomena suchas an increase in the average temperature and a rise in the sea level*2 Business risks arising from the actions of government, corporations, and consumers in the process of carrying out the transition to a low carbon/decarbonized society (through a significant reduction of greenhouse gas emissions)

Scenario analysis: What the World Looks Like Under Each Scenario

The world under the 1.5°C scenario

The world under the 4°C scenario

Premise
Strict measures are taken against global warming. By the endof the century, the average annual temperature will increaseby between 1.0°C and 1.8°C.

PremiseNo measures are taken against global warming beyond thecurrent status quo. By the end of the century, the averageannual temperature will increase by between 3.3°C and 5.7°C.

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

Overview• Due to the large rise in average temperatures, the impact of
frequent and intense natural disasters 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.

Reference scenario
Scenario concerning transition risks based on RCP2.6 and theDisorderly and Orderly categories of NGFS

Reference scenario
Scenario concerning transition risks based on RCP8.5 and the
Hot House World category of NGFS

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

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Governance andInternal Control

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Scenario analysis: Impact on the Group and the Response Measures

Impact on underwritBCP response
ing profitability

Physical risks

Impact on asset management income

Transition risks

1.5°C scenario

4°C scenario•The number of heat stress deaths and heat stroke
patients increases.
• Both of these increases will be gradual over a long periodof time, which will limit their impact on underwriting
profitability.
•This will be addressed by conducting an appropriate
review of premium rates.

•
Significantly higher average temperatures will lead tolarger increases in heat stress deaths and heat stroke
patients than under the 1.5°C scenario.
• Both of these increases will be gradual over a long periodof time, but will be larger than under the 1.5°C scenario.
•
We will address this by conducting a more detailed
review of premium rates to avoid a significant negative
impact on underwriting profitability.

•
A business continuity plan has been established atanother 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 therisk level of our business sites, relocate important sites,
establish backup sites, and implement remote decentralization measures using IT as appropriate.

• In the medium-term time horizon, up to the middle of thiscentury, some industries of the investees of the Groupwill be significantly affected due to tighter regulations
on GHG emissions, the introduction of a carbon tax, thereplacement of old technologies with new low or netzero carbon technologies, changes in consumer values
and behaviors, etc.
• To avoid damage to asset management income from theimpact on the investees and borrowers of the Group, we
will work as appropriate in accordance with the Principles
for Responsible Investment (PRI) through the promotionof investment and financing activities to businesses andcompanies that contribute to the transition to a society with low or net-zero carbon emissions, for example
renewable energy businesses, and through engagementwith existing investees.

• The medium-term impact on the investees and borrowersof the Group will be smaller, since there will be no sudden changes in the environment expected in the 1.5°C
scenario.
• However, in the long-term time horizon up to the end of
the century, it is assumed that the increase in averagetemperatures and the intensification of natural disasters
will have a significant negative physical impact on thebusiness activities of each investee and borrower.
•In order to avoid damage to our asset management
income, we will avoid or withdraw investment and financing to firms with significant physical risks.

Reference data: physical risks—Climate Change Adaptation Information Platform; transition risks—NGFS and Bank of England scenarios
Scenario analysis: Business Opportunities for the Group• Changes in the morbidity rate and average life expectancy associated with the progress of global warming are expected 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 to climate change.

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 havebroad-based impacts on overall management.

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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.
• In the process of identifying and assessing risks on a company-wide basis through a risk profile, the climate change-related risks
are managed using the perspectives shown below.
Management of climate change-related risks
1) Physical risks• The Group considers to mitigate deterioration of underwriting profitability through reinsurance 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 the Group
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).
• Our target is a 40% reduction (compared to FY2020; this applies to the shares, corporate bonds, and loans of listed corporationsin Japan) in the CO2 emissions of our investees and borrowers (Scope 3: Category 15), and we are working on this target withan achievement deadline of FY2030.
• In addition to Scope 1 and Scope 2, 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 both achieved.
Efforts are underway to achieve the new target for the ten-year period from FY2018. Furthermore, we have joined RE100, an international initiative that aims to procure 100% of the electricity used in business activities from renewable energy sources, and weare aiming to derive all of the electricity we use from renewable energy sources by FY2050. To achieve this goal, the Group has set
an interim target of 60% of electricity consumption to be derived from renewable energy sources by FY2030.
• 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.

3. Environmental Impact-reduction Initiatives
3-1

301-1

302-1
305-3

302-3
306-1

305-1
306-2

305-2
306-3

Environmental Initiatives

Efforts for Achieving Group-wide Targets
The T&D Insurance Group has set Group-wide targets related to environmental protection, and is working to achieve these targets
in the course of its daily business activities.
The Group’s four targets are to reduce CO2 emissions, reduce electricity consumption, reduce office paper consumption, andimprove the green purchasing ratio.
CO2 emissions Targets and Results P.82
Over 90% of the Group’s CO2 emissions (Scope 1 + 2) arise from electricity use. For that reason, we are endeavoring to reduce
CO2 emissions by setting targets for reducing electricity consumption in order to curb energy usage and advancing the introduction of renewable energy.
Electricity consumption Targets and Results P.82
In addition to the power-saving activities, we are endeavoring to implement a multitude of measures to reduce electricity consumption, such as introducing a power demand monitoring system for controlling peak-time use in each building and setting noovertime days. Furthermore, we encourage employees to put their computers into standby mode when they are away from theirdesk and turn off printers and multifunction machines when leaving offices.

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Office Paper Consumption Targets and Results P.82
We are striving to reduce the paper consumption in offices by promoting paperless meetings, two-sided and 2-in-1 printing,test printing and confirmations before printing a large quantity and rigorously insisting on printing only after confirming printing settings.
Green Purchasing Ratio Targets and Results P.82
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
2021, this initiative was conducted in July and December. Going forward, we will continue our initiative of a simultaneous switchoff of all the lights which can 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.
Green Procurement Initiatives (Total Costs and Quantities of Procurement Intended for Environmental Protection)
In addition to green purchasing initiatives, which mainly target office supplies and other consumables, Green Procurement
Standards that reduce environmental impact have been established for the printing of product brochures, policy documents andriders; procurement of lighting, air conditioning and other equipment for real estate; and for system equipment and office automation equipment. The Group gives priority to procurement of items that meet these standards. The results of these efforts to promote environmentally friendly procurement are not only collated in terms of amounts spent and quantities, but specific measures
are also studied, shared among the Group companies and used to benefit environmental protection initiatives.
Green Procurement Results
Portion known to apply/ not apply to standard, in figures
Standard applicableStandard non-applicablePortion for which applicability/
non-applicability is unknown
Quantity or
number ofordersTotal number

Total amount(million yen)

0.1

1,146

658

51

0.0

1,016

425

1

0.0

1,063

430

0.2

21,844

19,42226

0.4

16,399

570

20

212

41,385

1,021

0

3,230

12,685

3,271

14,533

0

2,995

5,889

3,034

6,908

0

3,281

3,706

3,380

6,335

NumberAmount(million yen)

241

561

602

97

303

FY2020

402

328

563

97

FY2021

1,007

396

55

34

FY201910,92919,171

10,914251

1

FY20204,372

457

12,001112

FY2021

9,846

702

31,519319

FY2019

41

1,848

0

FY2020

39

1,018

0

FY2021

99

2,628

0

NumberAmount(million yen)Amount(million yen)

Total

Printing of product brochures, riders
FY2019System equipment and office automation equipment

Real estate equipment

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

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3-2

Environmental Performance Data

303-1

303-2

303-3

The T&D Insurance Group discloses its measurements of CO2 emissions, electricity consumption, water consumption, and waste
generated and recycling rate. (The applicable scope and calculation methods of this data are described on page 83 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 85 “3–5 Independent Assurance Report”)

FY20191,746 t44,501 t
48,856 t
237 t
35,316 t
3,967 t40 t

FY20201,882 t43,335 t
34,367 t
184 t
16,630 t
8,116 t33 t

FY2021
1,835 t42,153 t
31,085 t
177 t
13,246 t
8,202 t31 tCategory 6 (Business travel)

2,478 t2,550 t2,554 tCategory 7 (Employee commuting)

6,818 t95,103 t

6,854 t79,584 t

6,875 t75,072 t

Scope 1 (Direct emissions)
Scope 2 (Indirect emissions)
Scope 3 (Others)
Category 1 (Purchased goods and services)
Category 2 (Capital goods)
Category 3 (Fuel- and energy-related activities)
Category 5 (Waste generated in operations)

Total• Regarding the CO2 emissions in FY2020, due to an adjustment of the figures subject to the calculation, Scope 2 increased by 102 t and Category 3 of Scope
3 increased by 332 t.
Data coverage: fraction of Group employees included in the target employee set 100%

Electricity Consumption

indicates limited verification has been carried out by a third party. (page 85 “3–5 Independent Assurance Report”)

Electricity consumption(Of which, the renewable energy purchase amount)
Total floor space (including portion for tenant use)

FY201996,191 MkWh—
940,757 m2

FY202096,711 MkWh
801 MkWh954,207 m2

FY2021
96,000 MkWh
4,948 MkWh
941,227 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 85 “3–5 Independent Assurance Report”)

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

FY201949,900 m3
1.6%

FY202044,200 m3
1.2%

FY202142,000 m3
3.2%

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: Since 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 (46.02%)

Waste Generated & Recycling Rate
indicates limited verification has been carried out by a third party. (page 85 “3–5 Independent Assurance Report”)

1) Paper waste

FY2019FY2020Total amount

301 t

249 t

238 t

Recycling rate

71.8%

71.8%

66.6%

2) Non-paper waste

FY2021FY2019FY2020

FY2021

Total amount

81 t

76 t

67 t

Recycling rate

62.6%

61.1%

66.7%

• The Group is aiming to reduce its environmental burden by making efforts to reduce waste and by recycling office paper, beverage cans, and plastic bottles.
We will continue working toward this endeavor by thoroughly ensuring that recycling is carried out.
• The Group’s waste does not contain any hazardous waste (the special management industrial waste designated by the Bureau of Environment, Tokyo
Metropolitan Government).
Data coverage: fraction of Group employees included in the target employee set (46.02%).

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Priority Theme 33-3Group-wide Targets and Results

The T&D Insurance Group is working on reducing its environmental impact by setting Group-wide targets for CO2 emissions, electricity consumption, office paper consumption, and the Green Purchasing Ratio. (The applicable scope and calculation methods ofthis data are described on page 83 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.
indicates limited verification has been carried out by a third party. (page 85 “3–5 Independent Assurance Report”)

Baseline (FY2013)
59,908 t
888,529 m2
0.0674 t/m2—

CO2 emissions (Scope 1 + 2)
Total floor space
Per unit of floor space
Compared to baseline

FY202044,817 t
950,959 m2
0.0471 t/m2
69.9% (-30.1%)

FY2021
43,612 t
938,081 m2
0.0465 t/m2
69.0% (-31.0%)• The CO2 emissions in FY2020 increased by 102 t due to an adjustment of the figures subject to the calculation.

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 85 “3–5 Independent Assurance Report”)

Electricity consumption
Total floor space
Per unit of floor space
Compared to baseline

Baseline (FY2016)

FY2019FY2020

FY2021

97,223 MkWh
875,682 m2
111.0 kWh/m2—

95,360 MkWh
937,567 m2
101.7 kWh/m2
91.6%

95,813 MkWh
950,959 m2
100.8 kWh/m2
90.7%

95,139 MkWh
938,081 m2
101.4 kWh/m2
91.3% (-8.7%)* 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.
* Starting 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 85 “3–5 Independent Assurance Report”)

FY2019129.43 t

FY2020100.70 t

FY202196.70 tProgress made (average from FY2019 to FY2021)
108.94 t (23.4% 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 (88.29%)

Green Purchasing Ratio
Target: Keep the green purchasing ratio for office stationery and supplies at a minimum of 80%.
FY201994.2%

FY202091.9%

Applies to purchases through online purchasing systems.
Data coverage: fraction of Group employees included in the target employee set (88.12%)

82

FY2021
92.6% (Target exceeded by 12.6%)

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3-4 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)
Scope 2 (Indirect emissions)Category 1(Purchased goods and services)

Environmental
performance
data

CO2
emissions
Scope 3(Others)

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)Category 6(Business travel)
Category 7(Employee commuting)Electricity consumption (Total floor space),
renewable energy purchase amount
Water Consumption
Waste Generated & Recycling Rate
CO2 Emissions, Electricity Consumption

Group-widetargets andresults

Office paper use
Green Purchasing Ratio

Calculation scope

Scope
T&D Group (since FY2018);
Major Group companies (FY2017 and earlier)
T&D Group (since FY2018);
Major Group companies (FY2017 and earlier)
Major Group business sites and
Pet & Family Insurance, excluding sales offices
and branches of Taiyo Life and Daido Life
(added FY2018)

Major Group buildings
T&D Group
T&D Group (added FY2018)
T&D Group (since FY2018);
Major Group companies (FY2017 and earlier)
Major Group buildings
Major Group buildings
T&D Holdings, Core Group companies,
and Pet & Family Insurance
Major Group business sites and
Pet & Family Insurance, excluding sales offices
and branches of Taiyo Life and Daido Life
Major Group buildings

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 Building83

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

Scope 1 (Direct emissions)

Scope 2 (Indirect emissions)Group-wide
Category 1(Purchased goods and services)
Category 2(Capital goods)

CO2emissions
Scope 3(Others)

Calculation method
The figures were calculated by multiplying the measured energy input
by the predetermined coefficient in accordance with the Greenhouse
Gas Emission Volume Calculation, Reporting, and Disclosing System.
(The measured energy input comprises the measured gas, heavy oil,and kerosene.)
As above. (The measured energy input comprises the measured electric power, steam, and hot and cold water.)Calculations are based on the Basic Guidelines (Ministry of theEnvironment and the Ministry of Economy, Trade and Industry) regarding the measurement of greenhouse gas emissions generated by the
supply chain.
Calculated by multiplying the office paper use by the predeterminedcoefficient.
Calculated by multiplying the expenditure for purchased capital goods,
excluding land, by the predetermined coefficient.
The figures were calculated by multiplying the measured input of

Category 3
electric power, steam, and hot and cold water by the predetermined(Fuel- and energy-related activities)
coefficient.

Category 5(Waste generated in operations)Category 6(Business travel)
Category 7(Employee commuting)
Total
Electricity consumption

Renewable energy purchase amount

Water consumption
Group-wide
Waste generated &recycling rate

Waste generated
Recycling rate

Calculated by multiplying the waste generated by the predeterminedcoefficient.
Calculated by multiplying the number of Group personnel at the end of
the fiscal year by the predetermined coefficient.
Calculated by multiplying the number of Group personnel by employment type 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).
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.
We calculate the amount of electricity derived from renewable energy
sources which is purchased from electricity utilities based on the Act
on Special Measures Concerning Promotion of Use of Electricity from
Renewable Energy Sources.
The reportable item according to the environmental reporting guidelines of the Ministry of the Environment comprises the amount usedon the invoices received from the water supply authorities.
Measured based on the Waste Disposal & Public Cleansing Law andother laws concerned with waste disposal and cleaning.
Calculated according to the invoices received from waste disposal
companies.
The recycled amount is calculated according to the invoices received
from waste disposal companies, and the recycling rate is calculated by
dividing the recycled amount by the waste generated.

Group-wide targets and results

CO2 emissions

Electricity consumption
Office paper use

84

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,kerosene, electric power, steam, and hot and cold water.)Calculated by using the annual amount of office-use electricity purchased, in accordance with the relevant energy-saving laws.
A reportable item according to the environmental reporting guidelinesof the Ministry of the Environment, and is calculated from the purchasing system data.

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3-5

Independent Assurance Report102-56306-2

The T&D Insurance Group obtained third-party assurance from Ernst & Young ShinNihon LLC for fiscal 2021 data presented in
section “3-1 Employment of Persons with Disabilities” on page 62, section “3–2 Environmental Performance Data” on page81, and section “3–3 Group-wide Targets and Results” on page 82 in accordance 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

304-3

Forest Conservation Activities 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 redpine 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“Taiyo Seimei no Mori”(the Forests of Taiyo Life)(Tochigi Prefecture)“Taiyo Seimei Kutsuki no Mori”(Kutsuki Forest of Taiyo Life)(Shiga Prefecture)

Date of
Establishment

March 2006

November 2007

Area

Approx. 4.8 ha

Approx. 12.7 ha

19 t(Estimate by the Forestry Agency)

81 t(Estimate by Takashima City)

CO2 Absorption

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 well as to local elementary and junior and senior high schools, public libraries,
and other parties to raise awareness of environmental issues.

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Priority Theme 4

103-2

103-3

Invest to Help Build a Sustainable SocietyWith the main business of the Group being life insurance business, contributing torealizing a sustainable society through investment is one of the most fundamental roles of the Group. The sustainable and stable growth of society is essential insecuring long-term stable profit through investment. The Group focuses on the impact that the investment activities of the institutional investors who manage longterm funds have on efforts to realize a sustainable world. The Group will contributeto the realization of a sustainable society through investment activities undertaken
in consideration of the environment, society and corporate governance.
Connected social issues and group initiatives to solve themSocial Issues
Promote investments in sustainable
development

Primary Stakeholders

Initiatives

Investors/local communities

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

PolicyResults for FY2021

Planned for FY2022

To secure stable long-term
investment income and contribute to the realization of asustainable society throughinvestment activities undertaken in considerationof the environment, society
and corporate governance,with the aim of growing
sustainably in partnershipwith society• The T&D Insurance Group set a goal of net-zero
CO2 emissions from its investees and borrowers. In order to steadily accelerate our initiatives
for achieving this goal, we also set interim goals
to be achieved by FY2030.

•Continue to make various ESG
investments that contribute to theresolution of social issues and therealization of a sustainable society•
Based on the T&D Insurance Group ESG
Investment Policy, our investment and financing
decisions incorporated analyses and assessments related not only to the financial information of potential investees and borrowers, butalso to non-financial information such as ESG.
• We invested both in “green bonds” that contribute to the resolution of environmental issues,and in “social bonds” that support COVID-19
countermeasures, etc.

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1. Basic Concept
1-1

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 toachieve 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 the formation 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 ofinvestee 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 thesound development of 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.

	
1-2 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 thedevelopment and application of new technologies for carbon capture and storage (CCS) or carbon capture, utilization and storage(CCUS).

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2. Our Initiatives as a Responsible Institutional Investor
2-1

Signing of the Principles for Responsible Investment (PRI)

Taiyo Life, Daido 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 firstJapanese 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 these objectives, Daido Life is contributing to the formation of a sustainable society through promoting investing and lending that considers
environmental, social and governance (ESG) issues. Specifically, the company is promoting lending and investment that 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 as company 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 ofinvestee companies. Accordingly, the company is also committed to pursuing the sustained growth of these companies, particularly through holding constructive dialogues with them and through the exercise of voting rights, with the aim of increasing the
medium- and long-term investment returns on the funds entrusted to it by customers.
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 theUnited Nations in 2006. A commitment to these principles has been signed by over 5,000 financial institutions worldwide, and by 118 in Japan (as of August 2022).

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 the financial environment, etc., and our asset management organization.
2. Based on the nature of the life insurance industry, we aim to promote the interests of policyholders and others, taking social and public aspects into greater account. Such aspects include strictly refraining from speculative trading,as well as unsound investments and loans.
3. When making investment and financing decisions, we also account for the impact of our actions on domestic andinternational financial and capital markets. In addition, when investing or financing overseas, we take the local financial and economic impacts into account, as well.
4. We also strive to instruct our subsidiaries and other entities with special relationships specified by the Cabinet Office
Ordinance (“subsidiaries and others”) to take social and public aspects into account in their asset management actions.
5. We strive to contribute to the continuous development of society and the financial markets, taking into accountissues regarding the environment, social responsibility, and corporate governance.
6. As a responsible institutional investor, we strive to properly fulfill our duty of stewardship, through means 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 therecipients of the investment and financing. In this manner, the company strives to improve the long-term outcomesof 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
the beautification 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 andinvestments, 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 andpublic perspectives, as well as profitability and liquidity. We prohibit investment and financing, in principle, in cases suchas when the recipients are judged to be involved in antisocial behavior, or when an involvement in inhumane weapons* has been 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 the recipient 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, thosethat are sanctioned by the Government of Japan.

2. ESG-Themed Investment and Financing
We endeavor to invest in and provide financing to assets that consider environmental, social, and corporate governanceissues, and that contribute to the realization of a sustainable society. After investing in and providing financing to assets,
we verify whether funds are being used according to stated goals.
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 therealization of a sustainable society. At the same time, we seek adequate disclosure, while confirming the response to ESG
issues by these companies.
Principle 4: We will promote acceptance and implementation of the Principles within the 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 acceptance andimplementation of the PRI, and promote our PRI activities more effectively and concretely. We also share best practices andglobal 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 understandthis approach. Accordingly, we use e-learning and other means to actively learn about the PRI approach, global trends, andthe like.

2-2

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 “green bonds,” which help resolve environmental issues
We invest in green bonds issued by various issuers, including local governments and operating companies, with the goal offunding renewable energy generation projects and energy efficiency projects.
Specifically, we have invested in green bonds that provide financial support for projects carried out by local governments,
independent administrative agencies, and companies, which can be expected to yield environmental improvements. Examples
include smart city creation projects, and climate change adaptation projects.
• Initiatives for “transition finance,” which contributes to the realization of a decarbonized society
As part of our efforts to realize a decarbonized society, we engage in “transition finance,” which provides financial support for
reducing the environmental footprint of business activities with high environmental loads, and for decarbonizing them entirely.
Specifically, we invested in transition bonds issued by financial institutions and operating companies both in Japan andoverseas.
• Investments in and financing of renewable energy projects and energy efficiency projects
We invested in funds that invest in large-scale wind power and
ESG-themed investment and financing
solar power generation projects that help protect the global environment; we also financed energy efficiency projects (project
finance) that help reduce energy consumption.
Through these initiatives, we are working to combat global
warming and contributing to improved energy self-sufficiency.

(billions of yen)

800.0

640.0
600.0

530.0
430.0

400.0

200.0

0

FY2019FY2020

FY202191

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Priority Theme 4• Investment in “social bonds,” which provide support to developing countries and support for COVID-19 countermeasures
We invest in social bonds, and engage in other forms of investment and financing that contribute to sustainable societies, withthe goal of supporting education and employment in developing countries, of resolving global issues such as gender equality,
and of supporting COVID-19 countermeasures.
Specifically, we financed COVID-19 vaccine loans, and invested in education bonds and JICA gender bonds.
• Various types of investments and financing capable of contributing to the realization of a sustainable society
In addition to the activities outlined above, we also engage in investments and financing aimed at resolving various social issues
in Japan and overseas. These include:
Investments in Nutrition Bonds
We invested in Nutrition Bonds issued by the Development Bank of Latin America, which are used to finance projects aimed atachieving sustainable growth and regional integration in Central and South America, and in the Caribbean; these projects include
subsidy programs for children, pregnant women, and persons with disabilities to purchase basic food supplies.
Investments in Sustainable Development Bonds, which support development projects in developing countries
We invested in Sustainable Development Bonds issued by the World Bank, which are used to provide financial support fordevelopment projects in developing countries in wide-ranging fields, including: agriculture and food security; education; energy;
finance; trade and industry; insurance; administration, infrastructure, and governance; water and public health; the environment;
and gender equality.
• Initiatives for “impact investing,” which seeks to create positive social and environmental impacts
We engage in “impact investing,” which seeks not only to generate returns on investments, but also to create positive impacts
on social and environmental issues.
Specifically, we invested in an impact fund that invests in renewable energy generation projects, and thereby seeks both togenerate returns on investments and to have a positive environmental impact by reducing total CO2 emissions.
We also engage in sustainability-linked investments and financing, which have variable investment and financing conditions. These conditions depend on the level of achievement of ESG-related management indicators and goals, which are set
in advance by investees and borrowers. Specifically, we provided operating companies with loans whose interest rate varies
according to the extent to which they achieve their CO2 emissions reduction goals.
• Investment in the “Fund Supporting Good Health” and “Japan Healthy Society Support Fund,” which support projects
that promote human health
We invested in the Fund Supporting Good Health and the Japan Healthy Society Support Fund, with the aim of responding to thesocial issue of extending people’s healthy life spans. The former is for listed corporations in Japan involved in businesses suchas 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.
• Investment 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 withan outstanding ESG performance, through stock selection based on ESG research. T&D Asset Management established andmanages the fund (management began in July 2015).

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2-3

Initiatives to Conform to 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 thepolicies of each company with respect to the Principles, policy on exercising voting rights, status of exercising voting rights,
and self-evaluations are published on the companies’ respective websites (Japanese).

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 influencing the corporate management of those investee companies. We have established
Guidelines for Exercising Voting Rights, which aim to prioritize shareholder profits; for assets under both active and passive
management, we carefully examine every proposal put forward at Ordinary Shareholders’ Meetings of investee companies, andexercise our voting rights accordingly.
Main Approaches to Individual Proposals
We carefully examine individual proposals according to our Guidelines for Exercising Voting Rights, from the perspective ofimproving corporate value and encouraging sustainable growth. To ensure our assessments of proposals do not rely solely on
numbers, we endeavor to understand the actual circumstances at the company in question through dialogue and other means.
[Appointment of Executives] We oppose the re-appointment of representative directors if it is clear that shareholder value isbeing harmed due to sluggish performance or low capital efficiency. As a rule, we oppose the appointment of outside directors
or Audit & Supervisory Board members in cases where their independence in the exercise of the expected management oversight functions or audit functions cannot be ensured. Moreover, we oppose the re-appointment of representative directors whena certain number of independent outside directors are not appointed, and when the reason for such is deemed to be invalid.
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, we oppose the re-appointment of the relevant directors.
[Executive Compensation] Although we are generally in favor of introducing performance-linked compensation systems, we
oppose their introduction when it is deemed that payment to outside directors has a strong incentive factor. As a rule, we oppose
payment of retirement benefits to outside directors or Audit & Supervisory Board members. With regard to the introduction ofstock options and stock compensation systems, our decision is based on whether or not they contribute to the improvement ofcorporate value as medium- and long-term incentives.
[Capital Policies] We take business performance trends and financial conditions into consideration when making decisions on
dividends and treasury stock acquisitions.
[Anti-takeover Measures] As a rule, we oppose proposals to introduce or update 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 2021 and June
2022. 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 2021 and June
2022 are as follows.
Taiyo Life

Daido Life
RejectAbstainCarte
blancheTotal
agenda
items

476

4

0

0

480

39

84

0

0

0

84

0

68

113

3

0

0

116

0

0

27

88

0

0

0

88

0

0

57

119

0

0

0

119

0

0

0

1

4

0

0

0

4

0

0

0

9

43

0

0

0

43

9

0

0

0

9

5

0

0

0

5

1

0

0

0

1

3

0

0

0

3

1

0

0

0

1

4

0

0

0

4

6

0

0

0

6

13

1

0

0

14

3

0

0

0

3

2

1

0

0

3

0

8

0

0

8

0

32

0

0

32

217

9

0

0

226

476

36

0

0

512

RejectAbstainCarte
blancheTotal
agendaitems

Approve

217

1

0

0

218

39

0

0

0

67

1

0

Corporate auditor appointment*

27

0Partial change to Articles of Incorporation

57

0

Payment of retirement bonus

1

Change to officer compensation

9

Issue of stock acquisition rights
Appointment of accounting auditors
Reconstruction related*2

Type

Approve

Company proposals
Surplus appropriation
Director appointment*

1
1

Other company proposals*

3

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, and income 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. Between July 2021 and June 2022, Taiyo Life and Daido Life engaged in dialogue with 112
companies and 121 companies respectively.
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 at which the number of outside directors fell below a certain number• Companies with substantial doubts regarding the independence of candidates for independent outside director• Companies at which the number of directors increased, and the reason for such was unclear• Companies that proposed the introduction/continuance of anti-takeover measures• Companies paying retirement bonuses to outside directors and Audit & Supervisory Board members whose task is to monitor
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 whose task is tomonitor the status of management• Companies that have been involved in misconduct or other such incidents

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Self-evaluation
Between July 2021 and June 2022, Taiyo Life and Daido Life performed self-evaluations of the status of implementation of each of
the Principles in this code. The evaluations of both companies determined that activities were carried out steadily, in accordancewith the policies on the Principles.
T&D Asset Management
Status of Exercising Voting Rights
T&D Asset Management has established the Stewardship Activity Committee to deliberate and make decisions on mattersrelated to the exercising of voting rights. The Committee is chaired by the Chief Investment Officer (C.I.O.) of the Investment
Management Department, and its membership consists of the executive officers of the Investment Management Department,
the general managers of the Investment Management Department, the general managers of the Legal & Compliance Department,
and managers of the Stock Management Department’s Responsible Investment Promotion Office. To prevent conflicts of interests, the Committee is separate from the company’s sales departments.
The Stewardship Activity Committee deliberates and makes decisions on matters related to the exercising of voting rights,
including the company’s Guidelines for Exercising Voting Rights. The Guidelines for Exercising Voting Rights are designed to go
beyond simply providing guidance for formal assessments; instead, they are intended to contribute to the sustainable growth ofinvestee companies.
Proposals for instructions regarding the exercising of voting rights are drafted based on the Guidelines for Exercising Voting
Rights; taking feedback from the Stewardship Activity Committee into consideration, the Committee chairman then makes a final
decision on these proposals.
Based on the above procedures, T&D Asset Management voted against 663 proposals submitted by investee companies(8.1% of the total) between July 2021 and June 2022. Examples of the status of exercising voting rights are provided below.
1. For proposals concerning the appointment and dismissal of directors, in cases where independent outside directors did notcomprise a majority of the Audit & Supervisory Committee, and in cases where profitability was consistently low and showedno signs of improvement, the company voted against the reappointment of the directors responsible, while taking the prevailingcircumstances of each company into consideration.
2. For proposals concerning the appointment of outside directors and outside Audit & Supervisory Board members, the company
voted against their appointment in cases where there were doubts about the independence of the candidates in question.
Status of Dialogues
T&D Asset Management uses individual and small meetings with companies as opportunities to hold constructive dialogues that
promote sustainable growth from such perspectives as business strategy, capital efficiency and shareholder returns, and ESG.
In the period between July 2021 and June 2022, meetings were held with 237 companies. Examples of these dialogues arepresented below.
1. In our discussions with a railroad company, we sought clarification about the proportion of renewable electricity they use for theirbusiness. The railroad company is considering expanding its use of renewable energy; however, it requires a massive amount ofelectricity to power its rail transportation business and, in order to ensure stable supplies, it has no choice but to purchase electricity from a major electric power company. For this reason, it is difficult for the railroad company to increase its use of renewableenergy by switching to a green start-up electric power company; instead, the railroad company is working to reduce its energy
consumption per unit output by investing in LED lighting and other forms of energy savings. We communicated our intention tofollow up on whether its investments in energy savings would contribute to reductions in its CO2 emissions per unit output.
2. We held discussions with a land transportation company that recognizes Japan’s shrinking population and deteriorating regional
infrastructure to be critical social issues, questioned how it intends to respond to these issues, and verified the state of progress of specific initiatives. Depopulation has led to a significant decrease in numbers of residents and workers in regional
communities; as such, the land transportation company claims that it will be impossible to maintain its existing delivery supply
chains in many of these regions. For example, on remote islands particularly hard-hit by depopulation, the shipping services
used to convey the islanders’ daily necessities are already being affected by a shortage of pilots and issues with profitability.
Although the land transportation company’s core business consists of drivers delivering small lots of luggage to customer residences, some of its Group companies specialize in medium-lot transportation and air transportation. By utilizing these internal
resources, the land transportation company is confident that it can provide delivery services capable of substituting or making
up for the decrease in shipping services to remote islands and other depopulated regions. We commented that such initiatives
would not only lead to increased business opportunities, but also contribute to improved access to transportation services forresidents of depopulated regions; we also communicated our intention to follow up on the matter in due course.
3. In discussions with a chemical manufacturer, we suggested that its low turnover and low share price was in part due to not
holding financial results briefings; for this reason, we requested that it hold financial results briefings for investors in the future.
The chemical manufacturer responded that it was gradually strengthening its IR activities—for example, after the announcement of its full-year results, it was now distributing videos in which the president dissected the company’s financial results.
However, the chemical manufacturer also agreed to communicate our request to hold financial results briefings to the president and other members of the management. We intend to continue discussions on and encourage change in this matter.
Self-evaluation
Between July 2021 and June 2022, T&D Asset Management carried out a self-evaluation of the status of implementation of eachof the Principles in this code. It determined that activities were steadily being carried out in accordance with its basic policy foreach Principle.
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VII

Social Activities

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 “developing asound society.”

2. Improving Health and Welfare (Health, Medical Care, Welfare, etc.)
2-1Blood 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
Tokyo Nihonbashi Tower, and executives and employees are encouraged to donate blood. In fiscal 2021, a total of 243 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 8,352 members as of March 31, 2022. In order to support social contribution
activities on a monthly basis, the members contribute any fractions less than one hundred yen from their take-home salary. At
present, the Friends mainly provides supports for local community-based social contribution activities driven by branches nationwide and head office departments, environmental conservation activities in cooperation with NPOs and the like, and educational
support. Details of the activities are posted in Taiyo Life’s in-house journal, through which the company is calling for broader participation by executives and employees in the activities.
Major Activities in FY2021• 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 2021 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 FY2021• Fundraising and donations: Donations from executives and employees andrevenues from the charity calendar exhibitions were used to make contributions to social welfare organizations, as well as to facilities for the disabled
affected by natural disasters such as the Heavy Rain Event of July 2020.
• Volunteer activities: The club provided operational and other support for amusic concert played by persons with disabilities.
•
Other activities: Used postage stamps and other items collected frombranches nationwide were donated to organizations that support social contribution activities, for the benefit of international medical cooperation; the clubalso made donations to UNICEF through the collection of plastic bottle caps.
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Supporting the Japan Down Syndrome Society Taiyo Life

Taiyo Life and members of Taiyo Life Goodwill Circles support the activities of the Japan
Down Syndrome Society by interacting with it.
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 carried out by public health and welfare professionals withclose 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 conducted by 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 FY2021] 4,388 grants; 1,705.57 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 experts on
the environmental, health, and welfare issues of high public interest; a total of 75 brochures have been published thus far. To ensurethat 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 FY2021] 2,364 grants; 1,333.79 million yen
Main Activities in FY2021
In order to fulfill its mission of improving social welfare, in fiscal 2021, 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 2021, the foundation offered grants worth 27.99 million yen to 103
volunteer/NPO projects, and grants worth 6.97 million yen to 12 research projects; in total, the foundation provided 115 grants
worth a combined 34.96 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 fortheir long-standing support.

3-2

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

Since fiscal 2011, Taiyo Life has been a special sponsor of the Japan Junior HighSchool Rugby Football Tournament (Taiyo Life Cup) hosted by the Japan Rugby
Football Union (JRFU). Taiyo Life chose this sponsorship in sympathy with thebasic spirit of Rugby, “one for all, all for one” which is common to the basic principle of life insurance. At the same time, Taiyo Life agrees with the objective of thetournament, which can be summarized as “helping young rugby players and otheryouth to develop the quality and skills necessary for shaping a sound society.”
Accordingly, we are extending our support for the sound development of young
people through the promotion of junior high school rugby competitions in Japan incooperation 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 21st National Sports
Festival for People with Disabilities was scheduled to be held in Mie Prefecture in 2021 but was cancelled 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 Sustainability Together Movement

Daido Life

Starting in fiscal 2017, Daido Life has implemented the Sustainability Together
Movement as part of its company-wide regional and social contribution activities.
In fiscal 2021, under the theme of “Contribution to SDGs,” divisions at head officeand branches throughout Japan worked on various activities such as promoting 3R(reduction, reuse, and recycling), donating to developing countries, and conducting
community-based cleaning activities.

3-6

Endowed Open Courses at Universities

Daido Life

Daido Life began endowing annual open courses at universities in fiscal 2002,
as part of its centenary celebrations. With topics combining theory and practice,
the courses provide managers of small and medium-sized enterprises (SMEs)
and their successors with opportunities for acquiring knowledge and skills relevant to management and business. Since their inception, the courses have been
attended by more than 16,300 people and have been extremely well received.
In fiscal 2021, courses were held online at Meiji University, Japan Women’s
University, Kansai University, and the Hito wo Taisetsu ni Suru (Taking good careof people) Institute of Business Administration.

3-7

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 2021, the program was held both in person and remotely and attracted many participants fromacross Japan. The introduction of the “elective program” enabled participants toexperience different types of work and helped create even more opportunities tocommunicate with many Daido Life employees. The program gives students the
chance to visualize themselves at work, to consider whether they are suited toworking in the life insurance business, and thus to map out future career paths.

3-8

Daido Life Survey Daido Life

Since October 2015, Daido Life has been conducting the Daido Life Survey, a monthly survey that collects the opinions of 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 10,000 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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3-9

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 translations of modern literature published in the region; thus far, a total of 78 works from 14 countries
have been translated into Japanese for publication and donated to universities andpublic libraries across Japan.
Since fiscal 2012, the foundation has digitized these publications and made themavailable on their website free of charge, with a view to increasing readership ofthese 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 andlibraries.
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 2013.

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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 the affectedareas. There, they participated in volunteer activities such as removing rubble, bringing in relief goods, and rebuilding individual
homes and temples/shrines.

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NMWA Japan Committee SponsorshipAs part of our efforts to promote diversity and inclusion (D&I), the T&D Insurance Group sponsored the NMWA Japan Committee*
dedicated to “championing women through the arts.”* The Japan Committee assists displays of works by Japanese artists at the exhibitions of women artists held at the National Museum of Women in the Arts
(NMWA) in Washington, DC, USA.

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Governance and Internal Control

1. Corporate Governance
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102-18405-1

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 supervising Groupmanagement by thoroughly managing revenues and risks for the entire Group. Meanwhile, the subsidiaries, which have their 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 the respectiveroles 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.
WEB

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

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 (April 2022)
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 ERM Committee

ReportingPresident

Cooperating

Instruction
ReportingInstruction

Executive Management Board
Group Risk Management Committee

Group Strategy Board

External
auditing

Group Management Promotion Committee

Independent Accounting Auditors

Group SDGs Committee

Group DX Promotion Committee
ProfitGroup
FinancialBusiness
Sustainability
PublicGeneralRisk
Management
Planning
Strategy Development
Promotion
RelationsAffairs
Management
and Actuarial
Department Department Department
Department Department Department Department
Department

Internal
auditing

Internal
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 andpromote greater agility and efficiency in business execution. The Board of Directors met 17 times in fiscal year 2021.
(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.
Chairperson of theBoard of Directors

President

Directors

12

Men

11

Women

1

Outside directors

5 (including one woman)

Activities ofoutside directors(Fiscal 2021)

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 chairperson or members of the Nomination and Compensation Committee, which is anadvisory body to the Board of Directors, they deliberate on matters including the selection, appointment,
and dismissal (including successor planning) and compensation of executives of T&D Holdings and its
directly owned subsidiaries and report the results of such deliberations to the Board of Directors, while
offering 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 and how 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 2021
1. Scope

T&D Holdings arranged anonymous questionnaires (self-evaluations) and interviews of directors conductedby third-party institutions for the purpose of ensuring objectivity and transparency and conducted an analysis and evaluation in the Board of Directors. These efforts related to the effectiveness of the Board of
Directors as a whole (including the non-statutory Nomination and Compensation Committee) in fiscal 2021.

2. Evaluation Method

In the questionnaires, effectiveness with respect to evaluation topics such as the composition, operation, discussions (managerial functions), oversight functions, and performance of the Board of Directors
was confirmed using multiple-choice answers and written opinions. The interviews confirmed the basis
for the judgments of the evaluations given in the questionnaire and the issues of the Board of Directors.

3. Overall Evaluation

As a result of the analysis and evaluation, the following matters and other matters were confirmed, andthe Company has determined that the Board of Directors has generally fulfilled the expected roles andis functioning effectively.
• Diversity in the composition of the Board of Directors is being ensured.
• Appropriate information disclosure such as prior explanations is being carried out in the processes
leading up to discussions in the Board of Directors.
• The proceedings and agenda item selections of the Board of Directors are appropriate.
• Discussions are proceeding with an awareness of the business portfolio and capital costs.
• Sufficient feedback on the content of the dialogues with investors is being given.

4. Status of
Improvement ofIssues from Previous
Evaluation

We have worked on the issues recognized in the fiscal 2020 evaluation and perceive that steady
improvement has been seen. Those issues included strengthening the functions of the Nomination andCompensation Committee, consideration of the composition of the Board of Directors, well-devised preparation of easy-to-understand materials, and efficient management of the Board of Directors meetings.

5. Issues from Current
Evaluation and Future
Initiatives

In addition, as issues in the Board of Directors, the Company recognized that there is room for improvement to further enhance and deepen the discussions concerning the Group management strategies,
further propel the integrated Group management, and compose and prepare materials which simply
summarize the points of contention for good discussions in the Board of Directors.
Through our response to the issues recognized in this evaluation of effectiveness of the Board of
Directors, we will continue working to further improve the effectiveness of the Board of Directors.

Audit and Supervisory Board(Roles and Responsibilities)
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 and Internal Auditing Department, inspects and examines important documents, and conducts audits aimed
at verifying the Company’s internal management 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 2021, the Audit and Supervisory Board met 21 times.
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 2021)

Outside directors serving as Audit and Supervisory Board members make necessary statements asappropriate at meetings of the Board of Directors and the Audit and Supervisory Board based on theirwealth of experience and insight as individuals with experience in corporate management, accounting
experts, and legal experts. In addition, their activities include exchanges of views with the representative
directors, the accounting auditors, the heads of each department, and the representative directors andpresidents of major subsidiaries.

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.
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Executive Compensation
1. Executive Compensation System (Fiscal 2021)(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).
To ensure that director compensation functions as a sound incentive, appropriate payment ratios shall be set for each type ofcompensation.
Compensation amounts shall be set according to the duties and responsibilities of each position, and a mechanism shall bein 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 thedivision 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 thecase 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 theCompany. 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 Groupto enhance 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 ofmonthly 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 fromthe execution of business, and directors serving as Audit and Supervisory Board members. Therefore, a fixed amount of compensation is paid.

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Compensation
type

Payment
periodMonthly
compensation

Monthly

Bonus

YearlyAt theTrust-type stock
time ofcompensation
retirement

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 shallbe set based on the amounts calculated from the compensation table determined by the Boardof Directors and each officer’s individual evaluation within the limit established by the resolutionof the Shareholders’ Meeting and then finalized by Hirohisa Uehara, our Company President, after
deliberations among representative directors.
Individual evaluations for each officer 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 theevaluation 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.

Monetary
payment

Trust-type stock compensation shall be granted to directors (excluding outside directors and otherpart-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 basedon points allotted in accordance with position.
At the time of retirement from the Company, officers receive shares and monetary payments inaccordance 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, leakage of 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 the proceeds 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 ofbasic shares by the calculated stock price.

(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,and is a member of the Nomination and Compensation Committee, an advisory body to the Board of Directors. This makes
him the most suitable 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 andCompensation 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 the individual evaluations of each officer, which are decided through deliberations by the Nomination and Compensation Committee, andthe compensation table determined by the Board of Directors, among other factors.
In fiscal 2021, the Nomination and Compensation Committee deliberated on, among other topics, the results of fiscal 2020 evaluations of directors and executive officers, which serves as the basis for determining the compensation of individual officers; theresults of fiscal 2020 evaluations of representative directors of directly owned subsidiaries; and the establishment of a maximum
amount of compensation 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 2020, 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 compute aweighted 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)

Evaluation of division in
charge• 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.
• Points are calculated for the division the officer is in charge of based on the execution planachievement status of each division, among other factors.
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Governance and Internal Control(6) Key Performance Indicators for Corporate Performance Evaluations (Performance-Linked Indicators) <FY2021>
Key performance indicators for evaluating the corporate performance are shown below.
Regarding the financial performance indicators, the single fiscal year target achievement ratios and progress toward achievement of the fiscal 2025 targets are evaluated based on the Group Long-Term Vision formulated in fiscal 2021.
Single fiscal year evaluation topics
Evaluate the achievement ratios for the single fiscal year targets toward achievement of the fiscal 2025 targets.
Fiscal 2025 targets
Group adjusted profit¥130.0 billion

Value of new business¥200.0 billion
Single fiscal year targets

ActualGroup adjusted profit¥73.0 billion¥39.2 billion

Achievement ratio
53.7%

Value of new business¥147.1 billion¥166.9 billion

113.5%

Medium- to long-term evaluation topics
Evaluate progress toward the achievement of the fiscal 2025 targets as an evaluation criterion.
Fiscal 2025 targets
Adjusted ROE

8.0%

ROEV

7.5%

• The actual adjusted ROE is 2.7%.
• The actual ROEV is 7.0%.
Market evaluation topics
Evaluation criteria and other criteria
Total shareholder return(TSR)• Total shareholder return (TSR) is calculated based on actual results, the degree of deviationfrom a benchmark of listed life insurance companies, and other factors.

• The actual total shareholder return is 117.4% over five years.
(Note) The total shareholder return is calculated as follows.
• Five years: (Share price at the end of FY2021 + Cumulative total dividends per share from FY2017 to FY2021) / Share priceat the end of FY2016
ESG evaluation topics
In addition to the above financial performance indicators, the following non-financial performance indicators are evaluated.
Evaluation criteria and other criteria
Customer satisfaction level
Employee satisfaction level
Reduction of CO2 emissions• Evaluate the status of achievement with the level in the previous fiscal year as the evaluation criterion.

• An actual customer satisfaction level and employee satisfaction level higher than the levels in the previous fiscal year
were achieved.
• A reduction in the actual CO2 emissions of 1.3% from the level in the previous fiscal year was achieved.

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Governance and Internal Control(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 soundincentive 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 determined by 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

Category

Number of
persons paid

AmountReserve for bonus
Number of
persons paid

AmountTrust-type stock compensation(the Board Incentive Plan Trust)
Number of
persons paid

Amount(million yen)

Total amount ofcompensation
Number of
persons paid

AmountDirectors not serving as Audit andSupervisory Board members(excluding outside directors)

8

126

3

35

3

38

8

200

Directors serving as Audit andSupervisory Board members(excluding outside directors)

2

58

0

—

0

—

2

58

Outside directors not serving as Audit
and Supervisory Board members

2

20

0

—

0

—

2

20

Outside directors serving as Audit andSupervisory Board members

3

37

0

—

0

—

3

37

Total

15

242

3

35

3

38

15

316

• 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 stockcompensation constitutes non-monetary compensation. The total amount of performance-linked compensation for directors notserving as Audit and Supervisory Board members (excluding outside directors and other part-time directors) (4 people) is ¥139
million, and the total amount of non-monetary compensation is ¥38 million.
• The number of persons paid and the amount of compensation above include three directors who stepped down from theirposts, as of the close of the 17th Ordinary General Meeting of Shareholders held on June 25, 2021. As of March 31, 2022, theCompany has seven directors not serving as Audit and Supervisory Board members and five directors serving as Audit andSupervisory Board members.
• The amount of trust-type stock compensation represents the cost accrued for the points granted during the fiscal year underreview 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.

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Governance and Internal Control(10) Resolutions of the General Meeting of Shareholders
Maximum amount of compensation for directors
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 was for outside 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 compensation limit for directors not serving as Audit andSupervisory 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 for threeconsecutive fiscal years. The total number of points to be granted to directors each fiscal year was limited to 215,000 points (onepoint 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 held on June 25, 2020, 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 between the directors
serving as Audit and 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 20.
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.

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Participation in Management by Outside Experts

The Group’s three life insurance companies work toward ensuring adequate and transparent business management through theparticipation of outside experts in some internal committees dealing with key management issues.
Service Quality Improvement Committee (Taiyo Life)
Physicians, attorneys, person with relevant knowledge and experience, and experts in consumer issues<Outside members><Main topics of deliberation>	Status of building framework for management of payments of insurance and other benefits, adequacy of examinations of payments of insurance and other benefits, ease of understanding insurance claim procedures, adequacy of insurance and other benefit-payment processes, status ofcustomer feedback, and initiatives to improve operations utilizing customer feedback
Customer Feedback Council (Daido Life)
Physicians, attorneys, persons with relevant knowledge and experience, and experts in consumer issues<Outside members><Main topics of deliberation> Status of operations and adequacy and effectiveness of initiatives to improve customer service
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 other benefits, 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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1-5Committees

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 2021)
Major Deliberations and Reports
1st meeting• Utilization of the Board of Directors skills matrix

2nd meeting• Selection, appointment, and other matters of directors not serving as Audit and Supervisory Board members and candidates for directors who are substitute Audit and Supervisory Board members• Selection, appointment, and other matters of director candidates and Audit & Supervisory Board member
candidates at directly owned subsidiaries• Selection of outside directors to serve on the Nomination and Compensation Committee

3rd meeting• Results of fiscal 2020 evaluations of directors and executive officers• Results of fiscal 2020 evaluations of representative directors of directly owned subsidiaries

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

5th meeting• Deliberation on the trust-type stock compensation system

6th meeting• Succession plan

7th meeting• Deliberation on the directors and Audit & Supervisory Board members selection and appointment process

8th meeting• Revision of the operation of the succession plan

9th meeting• Succession plan

10th meeting• Deliberation on the directors and Audit & Supervisory Board members selection and appointment process

11th meeting• Deliberation on the directors and Audit & Supervisory Board members selection and appointment process

12th meeting• Selection and appointment of executive officers• Selection and appointment of executive officers at directly owned subsidiaries

13th meeting• Partial amendment of the Articles of Incorporation• Formulation of the Group Management Human Resources Development Program

Committee Member Attendance Record (Fiscal 2021)
Name

Position

Attendance

Haruka Kato* (Chair)Outside Director

Attended all 13 meetings

Naoki Ohgo

Outside Director

Attended all 13 meetings

Kensaku Watanabe

Outside Director

Attended all 13 meetings

Hirohisa Uehara

Representative Director and President

Attended all 13 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 20.
Group SDGs Committee
Please see “Group SDGs Committee” under “7. Sustainability Promotion Framework” on page 19.

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Group Risk Management Committee
Please see “Group Risk Management Committee” under “8. Management Approach” on page 20.
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 Financial Strategy Department. In fiscal 2021, the Committee
held 15 meetings and reported the results of its deliberations to the Executive Management Board, Group Strategy Board, andBoard of Directors.

1-6Internal Audit System

Group Internal Auditing
Internal auditing is the task of evaluating the appropriateness and effectiveness of the internal management of theoperating units and providing advice and recommendations
with the aim of contributing to the effective achievement of
the organization’s management targets.
In the Group Basic Policy on Internal Audits formulated by
the Board of Directors, T&D Holdings has established a basic
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 2021, the number of employees in theinternal audit units was 5 at T&D Holdings and 71 in total for
the Group, including directly owned subsidiaries.

Outline of the Group’s Internal Audit System

Board of Directors: Internal Audit

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

Functions and Roles
The Internal Auditing Department of T&D Holdings, in addiInternal audit units of each company
tion to conducting internal audits of each division of theCompany, grasps the status of the internal management
Operating units of each company
system of the Group as a whole through monitoring of theinternal audits implemented by its directly owned subsidiarOther Group companies
ies and other means. The Internal Auditing Department also
provides guidance and advice as necessary to strengthen
the internal audit system of the Group as a whole.
In addition, the Company’s Internal Auditing Department verifies and evaluates the appropriateness and effectiveness of theGroup’s internal management system through internal audits, monitoring, and other means based on the internal audit plans
resolved in the Board of Directors and reports the results to the Representative Director and President, the Audit and Supervisory
Board, and the Board of Directors. It periodically reports the status of the Group’s internal audits and other matters to the Audit
and Supervisory Board and makes reports regarding the matters about which it has received directions from the Audit andSupervisory Board and other matters. In addition, formulation of the internal audit plans and the personnel reassignment, evaluation, and other matters of the manager of the Internal Auditing Department are deemed to be matters which require the priorconsent of the Audit and Supervisory Board.

1-7

Internal Control

Internal Control System
The T&D Insurance Group believes that it is important to work for the sustainable growth and improvement of the medium- to longterm corporate value of the Group predicated on protecting insurance policyholders and the like by securing the soundness andcompliance structure of the Group as a whole based on the Companies Act, the Group’s Corporate Philosophy, and other factors.
With this in mind, T&D Holdings and its directly owned subsidiaries have established internal control systems as required underJapan’s Companies Act. Moreover, the boards of directors of each company continuously work to improve and strengthen theirinternal control systems, including by periodically monitoring the preparedness and operational status of these systems to confirm 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 offinancial, corporate, ESG, and other key information to enable our shareholders and investors to understand the T&D InsuranceGroup.
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.
For more details about these reports, please see “IR Library” under “Investor Relations” on our website.
WEB

2-3

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

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  https://www.td-holdings.co.jp/ir/individual/ (Japanese only)

https://www.td-holdings.co.jp/en/ir/document/
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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 2022, as a measure against the spread of COVID-19, we encouraged shareholders to
exercise their voting rights in advance. Furthermore, on the day of the event, we broadcast the General Meeting of Shareholders
live so that distant shareholders could observe the proceedings from their homes and other places. The meeting itself was also
held with appropriate infection prevention measures in place, including a shorter agenda and the wearing of masks by shareholders, executives, and employees.

2-5

Shareholders

102-5

Proportion of Shares Held (as of March 31, 2022)
Financial
institutions

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

Financial
Other
product dealers corporations

Foreigncorporations

Individuals andothersTotal

179,582

27,881

103,207

213,545

64,783

589,000

30.49

4.73

17.52

36.26

11.00

100.00Principal Shareholders (as of March 31, 2022)
Name of shareholders

Number of shares held
(1,000 shares)

Percentage of total
shares outstanding (%)

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

101,470

18.04

Custody Bank of Japan, Ltd. (Trust Account)

32,173

5.72

SSBTC CLIENT OMNIBUS ACCOUNT

12,608

2.24

STATE STREET BANK WEST CLIENT—TREATY 505234

9,444

1.68

JPMorgan Securities Japan Co., Ltd.

8,311

1.48

JP MORGAN CHASE BANK 385781

8,103

1.44

Custody Bank of Japan, Ltd. (Trust Account 4)

7,107

1.26

STATE STREET BANK AND TRUST COMPANY 505103

6,943

1.23

THE BANK OF NEW YORK MELLON 140044

6,675

1.19

AIG General Insurance Company, Ltd.
Total

6,000

1.07

198,839

35.35

Note: The Company holds 26,458 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.

112Management Control

IX
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 torisks, viewing them as a factor to be actively taken on in order to increase return (profit) and, as such, not something that shouldnecessarily be reduced or eliminated. Using this new method, businesses can quantify 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 thecommittee providing leadership in promoting ERM throughout the Group, we will enhance the Group’s corporate value in a stable
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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Risk Management System

In light of the social and public nature of thelife insurance business, the T&D InsuranceGroup views risk management as a key
priority issue in order to ensure sound andadequate business management. Under
overall control by the holding company, T&D
Holdings, each Group company implements
the necessary risk management suited totheir respective business model based on
the principle of self-responsibility.

Outline of the Group’s Risk Management System

Board of Directors

Audit and Supervisory Board

Executive Management Board

Group Risk Management Committee

Risk Management Department
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 andstrive 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

2-4

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

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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2-6 Optimization of the Risk Portfolio (Risk Measurement by Internal Models andComplemental 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

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 Rules on the Group’s Cyber Security Management, which all executives and employees
are obligated to follow.
T&D Information System, the Group’s information system 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.
The Group’s Cyber Security System
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 cyber security 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.
Please see our website for our Privacy Policy.
WEB https://www.td-holdings.co.jp/en/information/privacy.html

2-8

Protection of Customer Privacy

The T&D Insurance Group considers as complaints
any customer request which, at the time of its receipt,
expressed dissatisfaction, and makes efforts to respond
appropriately when such complaints are received. The
table on the right lists the number of complaints received
in fiscal 2021 regarding invasion of customer privacy andother matters which we have confirmed.

103-2

103-3

418-1

Number of Personal Information Complaints Received (FY2021)
Type

Description

Wrong delivery

Related to wrong delivery

10

Leakage to third party

Leakage of information to a third party
without the person’s permission

11

Other

Other than the above related topersonal information

117

Total

No. Received

138

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2-9

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 set forthbasic policies for developing systems that enable continuity or early restart of insurance claims and benefit payment operations,recognizing that doing so is our important social mission, and for placing top priority on securing the lives and safety of our staff
and supporting affected people and areas. The Group has implemented a number of measures to improve the effectiveness ofcrisis management. These include introducing a system for confirming the safety of our executives and employees individually andGroup-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 taking appropriate responses including continuing to carry out operations
such as ensuring the payment of insurance claims and benefits and maintaining the call centers.

3. Compliance
3-1

103-2

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 promotion structure based on the T&D Insurance Group
Basic Policy for Strengthening the Compliance
Structure. The Group Compliance Committee wasestablished to oversee and improve the Group’s
compliance arrangements. T&D Holdings also has
a Risk Management Department, which has overall
responsibility for promoting compliance. In coordination with the compliance units of the Group’s threelife insurance companies and other Group members, this department performs regular monitoringand provides guidance and advice. The Group’s threelife insurance companies and other Group members
also have a compliance promotion system mainly
consisting of a compliance committee and a compliance control department.

3-3Outline of the Group Compliance Promotion Structure

Board of Directors

Audit and Supervisory Board

Group Compliance Committee
Risk Management Department
Deliberation& reporting
Taiyo
Life

Daido
Life

Guidance& advice

Internal
audit

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

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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3-4Preventing Bribery and Corruption

The T&D Insurance Group states the following in the T&D Insurance Group Compliance Code of Conduct: “We shall work toprevent 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 fromgiving or receiving gifts, in connection with our business activities worldwide.” (See p.9.) In addition to preventing bribery, weare ensuring thorough awareness by all executives and employees toward preventing corruption. This includes measures againstmoney laundering and prevention of misappropriation and diversion of funds, using such means as a compliance program andcompliance 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
the risk assessment and subjected to appropriate review. As of fiscal 2021, 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

Whistleblower System

103-2

103-3

207-2

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 InsuranceGroup Helpline, and we are working to build an effective system that allows reporting by phone, website, etc. through an externalreporting company and that also accepts reports anonymously. The reports and the results of the investigations into them arereported to the Audit and Supervisory Board and to management.

Number of Calls Received by the T&D Insurance Group Helpline
FY2019258

FY2020320

FY2021309* 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.

117

Sustainability
Management

Organizational
ProfilePriority Theme

1 2 3 4Social Activities

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

Management Control

4. Tax Approach and Management
4-1

Tax Policy

103-2

103-3

207-1

207-2

207-3

207-4

With the aim of strengthening its corporate governance on taxation (tax governance), the T&D Insurance Group has establishedthe T&D Insurance Group Basic Tax Policy, which sets out its approach to taxation (the organization’s tax principles, approachto tax planning, and engagement with tax authorities) through a resolution of the Board of Directors. The T&D Insurance Group
Basic Tax Policy is administered by the accounting unit of each Group company under the responsibility of the director in chargeof accounting, and an annual review is conducted on the appropriateness and effectiveness of the tax management system, theresults of which are reported to the Board of Directors.
In addition, the T&D Insurance Group clearly states its commitment to strict compliance with applicable laws and regulationsin the T&D Insurance Group CSR Charter and the T&D Insurance Group Compliance Code of Conduct. We ensure tax complianceaccording to the T&D Insurance Group Basic Tax Policy in accordance with these CSR policies. The whistleblower system forcompliance applies also to tax compliance.
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, and fulfills
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 ofeach country 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
the OECD 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
and appropriate explanations that are based on facts.
Please see our website for the amount of taxes paid by country.
WEB https://www.td-holdings.co.jp/en/csr/library.html

118

Third-party Opinion
I submit this Third-party Opinion based on the Sustainability Report 2022 of the T&D Insurance Group.
President Uehara has delivered a strong message about the formulation of and initiatives for the T&D Insurance Group’s five primary themes under the banner of “Sow happiness, make change with boldness.” I feel that his words show enthusiasm toward
the initiatives as a Group, and I also look forward to the additional initiatives for the Group Long-Term Vision “Try & Discover 2025”—In Pursuit of the Happiness of All Stakeholders—. In what follows, I will offer a few comments.

1 T&D Insurance Group Sustainability Statement
The T&D Insurance Group Sustainability Statement, formulated in May 2022, describes the Group’s pursuit of financial and nonfinancial KPIs and lays out the management stance of the Group as a whole on sustainability issues. The establishment of non-financial
KPIs is a major step toward “SDGs management and creation of value,” and I hope that the T&D Insurance Group will become aleading force in the industry in this regard. Having said that, I would like to propose a course of action for further improvement.
It is my understanding that the background to the formulation of this statement is the idea that the achievement of the T&D
Insurance Group’s management vision requires not only expanding Group revenue, but also solving social issues through its business activities. I understand further that the Group has established both financial and non-financial KPIs with the aim of creating
shared value through both economic and social value. That said, I believe that a fuller explanation of the new non-financial KPIs would
help stakeholders better understand the T&D Insurance Group’s sustainability initiatives. For example, the Company could offer afuller explanation of the reasons for selecting non-financial KPIs such as “customer satisfaction,” “employee satisfaction,” and “CO2emissions,” and their relationship to the social issues that the T&D Insurance Group aims to solve through its business activities.

2 Initiatives on respect for human rights
Details of specific initiatives on respect for human rights were disclosed last year. In terms of understanding and improving thecurrent situation through human rights due diligence, I believe that the T&D Insurance Group is ahead of the curve and playing
a leading role in the Japanese insurance industry. That said, I would like to see the T&D Insurance Group aim higher, toward theglobal standard, by offering more detailed disclosure of human rights due diligence methods, identified human rights issues andexamples of improvements, and preventive, mitigating, and corrective measures to address these issues.
The United Nations Guiding Principles on Business and Human Rights call for putting in place remedies for potential risks thathave not yet manifested themselves. As an example, it would be a good idea to consider setting up a multilingual complaint desk
to ensure that serious human rights risks are not overlooked and that appropriate remedies are available if they arise.

3 Climate change measures
I commend the Company’s positive actions on climate change such as joining the international RE100 initiative and announcing
specific commitments to achieve net zero emissions by 2050, reduce the Company’s own CO2 emissions by 40% by fiscal 2025
(compared to fiscal 2013), and reduce investees’ CO2 emissions by 40% by fiscal 2030 (compared to fiscal 2020). In the future,
I hope that the Company will consider and disclose a more concrete roadmap along with science-based steps toward achieving
net zero emissions by 2050.
Also, the T&D Insurance Group has a strong network with SMEs, who are an important part of the supply chain of large companies and are indispensable collaborators in achieving decarbonization. In the future I would like to see the T&D Insurance Group
provide the kinds of information and business support that it is in a unique position to provide to these SMEs.
With respect to the investment business, I also take note of the T&D Insurance Group’s role as an institutional investor withan ESG investment balance exceeding ¥600 billion. While expectations for ESG investment are rising worldwide, concerns about“greenwashing” are also growing. I look forward to further communication about the characteristics and added value of ESG
investments unique to the T&D Insurance Group.

Ai Aonuma Representative Director, Kamakura Sustainability Institute (KSI)
Ai Aonuma has been involved in supporting education in Bangladesh since 2004. After working for an SRI
investment advisory company, in 2011 she began working in the area of social audits and labor environment
improvement work in Bangladesh and Myanmar, mainly in garment factories. Later she joined the sustainability department of a major apparel company, where she audited the working environment of client factories in
Asia, provided support for improvements, and provided educational support for factory employees. Presently
she is engaged in social responsibility audits in Japan and overseas in various industries such as apparel, electronics, food, and consumer goods, while also providing sustainability consulting to apparel brands. She also
serves as a board member of Water Aid Japan.

119IndexGRI Standards

GRI Standards

GRI Standards

102-54 102-55

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

Disclosed Items

GENERAL DISCLOSURESGRI 102:
GENERALDISCLOSURES
2016

1. Organizational profile
102-1

Name of the organization

II Organizational Profile 1. Organizational Profile
1-3 Corporate Profile (as of March 31, 2022)
II 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

II Organizational Profile 1. Organizational Profile
1-3 Corporate Profile (as of March 31, 2022)

102-4

Location of operations

II 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

II Organizational Profile 1. Organizational Profile
1-2 T&D Insurance Group Companies and Foundations

II Organizational Profile 1. Organizational Profile
1-2 T&D Insurance Group Companies and Foundations

102-7

Scale of the organization

Integrated Report 2022

102-8

Information on employees and otherworkers

II Organizational Profile 1. Organizational Profile
1-4 Number of Employees

102-9

Supply chain

II 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

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

102-13

Membership of associations

II Organizational Profile 1. Organizational Profile
1-3 Corporate Profile (as of March 31, 2022)

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

I 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

I Sustainability Management102-41

Collective bargaining agreements

II Organizational Profile 1. Organizational Profile
1-5 Dialogue and Consultations with Labor Unions

102-42

Identifying and selecting stakeholders

I Sustainability Management

9. Stakeholder Engagement

I Sustainability Management

9. Stakeholder Engagement

III Priority Theme 1 Promote Healthy and Abundant Lives for All People
2. Providing Wholehearted Reassurance

102-43

Approach to stakeholder engagement

IV Priority Theme 2 Provide Workplace Environments that Enable
All People to Participate Actively 4. Worker-friendly Work
Environment 4-2 Initiatives Reflecting Employee Feedback
IV Priority Theme 2 Provide Workplace Environments that Enable
All People to Participate Actively 4. Worker-friendly Work
Environment 4-3 Employee Questionnaire on Sustainability
and CSR

102-44120

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 to

Omission

Sustainability
Management

Organizational
ProfilePriority Theme

1 2 3 4Social Activities

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

GRI Standards

GRI Standards

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

Disclosed Items

Omission

GENERAL DISCLOSURESGRI 102:
GENERALDISCLOSURES
2016

6. Reporting practice102-45

Entities included in the consolidated
financial statements

II Organizational Profile 1. Organizational Profile
1-2 T&D Insurance Group Companies and Foundations

102-46

Defining report content and topic
Boundaries

I Sustainability Management
4. Priority Themes for Promoting Sustainability

102-47

List of material topics

I 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 2022

102-51

Date of most recent report

About Corporate Responsibility Report 2022

102-52

Reporting cycle

About Corporate Responsibility Report 2022

102-53

Contact point for questions regarding thereportAbout Corporate Responsibility Report 2022

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

I 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

Sustainability Library
Contributions

Other Initiatives

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

I 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)

Corporate Philanthropic

Anti-corruption
GRI 103:
Management
Approach 2016

I Sustainability Management 7. Sustainability Promotion Framework
103-2
103-3

GRI 205:
Anti-corruption 2016

205-1

IX Management Control 3. Compliance
3-5 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

Explanation of the material topic and its
Boundary

I Sustainability Management
4. Priority Themes for Promoting Sustainability

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.

Anti-competitive Behavior
GRI 103:
Management
Approach 2016

103-1

I Sustainability Management 7. Sustainability Promotion Framework
103-2
103-3

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
3-5 Whistleblower System

121

Sustainability
Management

Organizational
ProfilePriority Theme

Social Activities

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

GRI Standards

GRI Standards

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

Disclosed Items

Material Topics
Anti-competitive Behavior
GRI 206:
Anti-competitive
Behavior 2016

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

I Sustainability Management
4. Priority Themes for Promoting Sustainability
VIII Governance and Internal Control

103-3

The management approach and its
components
Evaluation of the management approach

IX Management Control

4. Tax Approach and Management

207-1

Approach to tax

IX Management Control

4. Tax Approach and Management

IX Management Control

4. Tax Approach and Management

Tax
GRI 103:
Management
Approach 2016

GRI 207:
Tax 2019
Topic management
disclosures

GRI 207:
Tax 2019
Topic disclosures

103-2

207-2

Tax governance, control,
and risk management

207-3

Stakeholder engagement andmanagement of concerns related to tax

IX Management Control

4. Tax Approach and Management

207-4

Country-by-country reporting

IX Management Control

4. Tax Approach and Management

103-1

Explanation of the material topic and its
Boundary

I Sustainability Management
4. Priority Themes for Promoting Sustainability

103-3

The management approach and its
components
Evaluation of the management approach

I Sustainability Management 7. Sustainability Promotion Framework

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

I Sustainability Management
4. Priority Themes for Promoting Sustainability

The management approach and its
components
Evaluation of the management approach

I 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

I 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

IX Management Control 3. Compliance
3–5 Whistleblower System

Materials
GRI 103:
Management
Approach 2016

I Sustainability Management 6. Status of Sustainability Promotion
103-2

GRI 301:
Materials 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

EnergyGRI 103:
Management
Approach 2016

I Sustainability Management 6. Status of Sustainability Promotion
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

122

I Sustainability Management 7. Sustainability 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

Omission

Sustainability
Management

Organizational
ProfilePriority Theme

1 2 3 4Social Activities

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

GRI Standards

GRI Standards

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

Disclosed Items

Omission

Material Topics
Biodiversity
GRI 103:
Management
Approach 2016

GRI 304:
Biodiversity 2016

Explanation of the material topic and its
Boundary

I Sustainability Management
4. Priority Themes for Promoting Sustainability

103-3

The management approach and its
components
Evaluation of the management approach

I 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

Explanation of the material topic and its
Boundary

I Sustainability Management
4. Priority Themes for Promoting Sustainability
V Priority Theme 3 Help Mitigate and Adapt to Climate Change

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

I 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

Waste generation and significant wasterelated impacts

V Priority Theme 3 Help Mitigate and Adapt to Climate Change
3. Environmental Impact-reduction Initiatives

103-1
103-2

Emissions
GRI 103:
Management
Approach 2016

I Sustainability Management 7. Sustainability Promotion Framework
103-2

GRI 305:
Emissions 2016

V Priority Theme 3 Help Mitigate and Adapt to Climate Change
1. Promotion Framework

Waste
GRI 103:
Management
Approach 2016

103-2
103-3

GRI 306:
Waste 2020
Topic management
disclosures

306-1

306-2

GRI 306:
Waste 2020
Topic disclosures

306-3

Management of significant wasterelated
impacts

I Sustainability Management 7. Sustainability Promotion Framework

V Priority Theme 3 Help Mitigate and Adapt to Climate Change
3. Environmental Impact-reduction Initiatives
V Priority Theme 3 Help Mitigate and Adapt to Climate Change
3. Environmental Impact-reduction Initiatives
3-5 Independent Assurance Report

Waste generated

V Priority Theme 3 Help Mitigate and Adapt to Climate Change
3. Environmental Impact-reduction Initiatives

Explanation of the material topic and its
Boundary

I 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

I Sustainability Management 7. Sustainability Promotion Framework
103-2
103-3

GRI 307:
Environmental
Compliance 2016

IX Management Control 3. Compliance
3-5 Whistleblower System

307-1

Non-compliance with environmental laws
N/A
and regulations

103-1

Explanation of the material topic and its
Boundary

I 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 4. Worker-friendly Work
Environment

Employment
GRI 103:
Management
Approach 2016

I Sustainability Management 7. Sustainability Promotion Framework
103-2
103-3

IX Management Control 3. Compliance
3-5 Whistleblower System

123

Sustainability
Management

Organizational
ProfilePriority Theme

Social Activities

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

GRI Standards

GRI Standards

Disclosed Items

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

Omission

Material Topics
Employment
GRI 401:
Employment 2016

II 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 4. Worker-friendly Work
time employees
Environment 4-1 Work-Life Balance Initiatives

401-3

Parental leave

IV Priority Theme 2 Provide Workplace Environments that Enable
All People to Participate Actively 4. Worker-friendly Work
Environment 4-1 Work-Life Balance Initiatives

Explanation of the material topic and its
Boundary

I Sustainability Management
4. Priority Themes for Promoting Sustainability

The management approach and its
components
Evaluation of the management approach

I Sustainability Management 7. Sustainability Promotion Framework

IV Priority Theme 2 Provide Workplace Environments that Enable
All People to Participate Actively 4. Worker-friendly Work
Environment 4-1 Work-Life Balance Initiatives

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

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

GRI 103:
Management
Approach 2016

Occupational health and safety
management system
Hazard identification, risk assessment, andincident investigation
IV Priority Theme 2 Provide Workplace Environments that EnableOccupational health services

403-4

Worker participation, consultation, andcommunication on occupational healthand safety

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

GRI 403:
Occupational Health403-9
and Safety 2018
Topic disclosures
Training and Education
103-1

IX Management Control 3. Compliance
3-5 Whistleblower System

All People to Participate Actively
4. Worker-friendly Work Environment
4-1 Work-Life Balance Initiatives
IV Priority Theme 2 Provide Workplace Environments that Enable
All People to Participate Actively
5. 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

I Sustainability Management
4. Priority Themes for Promoting Sustainability

Managed based on thenumber of occupational
accidents.

I 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 2. Basic Group Policy on Human
Resources
IX Management Control 3. Compliance
3-5 Whistleblower System

GRI 404:
Training and
Education 2016

124

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 2. Basic Group Policy on Human
Resources

There are no differences bygender in the indicators.
Due to the difficulty of
categorizing “occupational
training/education” froma large number of training
programs, indicators by
employee category are notdisclosed.

Sustainability
Management

Organizational
ProfilePriority Theme

1 2 3 4Social Activities

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

GRI Standards

GRI Standards

Disclosed Items

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

Omission

Material Topics
Diversity and Equal Opportunity
GRI 103:
Management
Approach 2016

103-1

Explanation of the material topic and its
Boundary

I Sustainability Management
4. Priority Themes for Promoting Sustainability
I Sustainability Management 6. Status of Sustainability Promotion

103-2
103-3

The management approach and its
components
Evaluation of the management approach

I Sustainability Management 7. Sustainability Promotion Framework
IV Priority Theme 2 Provide Workplace Environments that Enable All
People to Participate Actively 3. Diversity Promotion Initiatives
IX Management Control 3. Compliance
3-5 Whistleblower System

GRI 405:
Diversity and Equal
Opportunity 2016

VIII Governance and Internal Control
405-1

1. Corporate GovernanceDiversity of governance bodies andemployees

IV Priority Theme 2 Provide Workplace Environments that Enable
All People to Participate Actively 4. Worker-friendly Work
Environment 4-1 Work-Life Balance Initiatives

Explanation of the material topic and its
Boundary

I Sustainability Management
4. Priority Themes for Promoting Sustainability

The management approach and its
components
Evaluation of the management approach

I Sustainability Management 7. Sustainability Promotion Framework

Human Rights Assessment
GRI 103:
Management
Approach 2016

103-1

I Sustainability Management 6. Status of Sustainability Promotion
103-2
103-3

GRI 412:
Human Rights
Assessment 2016

IX Management Control 3. Compliance
3-5 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 3. Diversity Promotion
Initiatives 3-2 Human Rights Education

103-1

Explanation of the material topic and its
Boundary

I Sustainability Management
4. Priority Themes for Promoting Sustainability

The management approach and its
components
Evaluation of the management approach

I 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

I 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

I Sustainability Management
4. Priority Themes for Promoting Sustainability

The management approach and its
components
Evaluation of the management approach

I Sustainability Management 7. Sustainability Promotion Framework
IX Management Control 3. Compliance
3-5 Whistleblower System

414-1

New suppliers that were screened usingsocial criteria

II Organizational Profile
Suppliers

103-1

Explanation of the material topic and its
Boundary

I 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
2-7 Cyber Security Initiatives

Substantiated complaints concerning
breaches of customer privacy and lossesof customer data

IX Management Control 2. Risk Management
2-8 Protection of Customer Privacy

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

I Sustainability Management 7. Sustainability Promotion Framework
103-2
103-3

GRI 418:
Customer Privacy
2016

418-1

IX Management Control 2. Risk Management
2-8 Protection of Customer Privacy

125

Sustainability
Management

Organizational
ProfilePriority Theme

Social Activities

Governance andInternal Control

Management
Control

Third-party
OpinionIndex

GRI Standards

GRI Standards

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

Disclosed Items

Material Topics
Socioeconomic Compliance
GRI 103:
Management
Approach 2016

103-1

I 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

I Sustainability Management 7. Sustainability Promotion Framework
103-2
103-3

GRI 419:
Socioeconomic
Compliance 2016

Explanation of the material topic and its
Boundary

419-1

IX Management Control 3. Compliance
3-5 Whistleblower System

Non-compliance with laws and regulations
N/A
in the social and economic area

Better Products and Services
GRI 103:
Management
Approach 2016

103-1

Explanation of the material topic and its
Boundary

I Sustainability Management
4. Priority Themes for Promoting Sustainability
I Sustainability Management 6. Status of Sustainability Promotion

103-2
103-3

The management approach and its
components
Evaluation of the management approach

I Sustainability Management 7. Sustainability Promotion Framework
III Priority Theme 1 Promote Healthy and Abundant Lives for All People
Sustainability 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

I Sustainability Management
4. Priority Themes for Promoting Sustainability
I Sustainability Management 6. Status of Sustainability Promotion
I 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. Provision of Products and Services which Meet the Needs ofSociety
IV Priority Theme 2 Provide Workplace Environments that Enable All
People to Participate Actively 5. Health Promotion for Employees
IX Management Control 3. Compliance
3-5 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

I Sustainability Management
4. Priority Themes for Promoting Sustainability

The management approach and its
components
Evaluation of the management approach

I 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

I Sustainability Management
4. Priority Themes for Promoting Sustainability
I 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. Provision of Products and Services which Meet the Needs ofSociety 1-6 Best Senior Service
IV Priority Theme 2 Provide Workplace Environments that Enable
All People to Participate Actively 2. Basic Group Policy on Human
Resources 2-4 Promoting the Active Participation of the Elderly
IX Management Control 3. Compliance
3-5 Whistleblower System

126

Omission