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Tokio Marine & Nichido Fire Insurance Co., Ltd.
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Company Name: Tokio Marine & Nichido Fire Insurance Co., Ltd.
Company Overview: The core company of Tokio Marine Group, a Japan-based group of full-line insurance companies
active in 37 countries and regions worldwide (Asia, the Americas, Middle East and Europe), operating non-life insurance,
life insurance, re-insurance, and financial and general businesses.
Reporting Year: FY2015 (April 1 2015 - March 31 2016)
Business Category: B - Insurance
Reporting content: Please see below.
Principle 1: Lead in Risk Analysis
Key CDP: Carbon Disclosure Project GRI: Global Reporting
Initiative PRI: UN Principles for Responsible Investment
Sub-principle
1.1
Support and undertake research on climate change to
inform our business strategies and help to protect our
customers’ and other stakeholders’ interests. Where
appropriate share this research with scientists, society,
business, governments and NGOs in order to advance a
common interest.
Tokio Marine Group’s Climate Strategy
Major changes in the frequency of natural disasters and the scale of damage due to climate
change and global warming make it very difficult for insurance companies to calculate
appropriate insurance premiums, set up adequate liability reserves against the payment of
insurance claims in the future or make proper arrangements for reinsurance should they
continue to rely only on the assessment of climate change and natural disaster risks (i.e. tropical
cyclone, heavy rain, flood, earthquake and tsunami, etc.) based on past statistical data.
Accordingly, Tokio Marine Group has set “Responding to Climate Change and Natural Disasters”
as one of its material CSR issues of the Tokio Marine Group’s medium-term CSR Management
Strategy (2015-2017) and has been promoting research into future natural disaster risks by
utilizing "climate models" which enable us to forecast future climate conditions based on
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Physics-based computer simulations, in addition to forecasts mainly utilizing past statistical
data.
Tokio Marine Group contributes to the realization of a sustainable society by linking research
findings to the improvement of enterprise risk management (ERM) and the development and
provision of products and services, while disseminating this information to society in pursuit of
building a safe, secure and resilient society.
Joint Research with The University of Tokyo: Forecasting Future Changes in Typhoons Using
Climate Model Data
TMNF/TMRI(Tokio Marine Research Institute) have been working with the Atmosphere and
Ocean Research Institute at the University of Tokyo from April, 2006. They have been engaged
in typhoon risk assessment and other studies of medium-term (to 2035) and long-term
(2001-2100) climate risks. Using climate change projection simulations by running climate
models on supercomputers, and Monte Carlo simulations using statistical models and
high-speed computers, the study team is scientifically analyzing how typhoon risks will be
affected by future climate conditions associated with global warming.
Joint Research with Nagoya University: Typhoon and Heavy Rain Simulation using High-Spatial
Resolution Models
Using simulations by Nagoya University’s cloud resolution models and supercomputers, TMNF/
TMRI are scientifically analyzing how typhoon risk will be affected by changes in typhoon risk
trends (scale and frequency of occurrence) in the vicinity of Japan due to future climate
conditions associated with global warming. They have evaluated the risk of typhoons under
changing climate conditions for the near future to 2030. According to the findings, typhoons will
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tend to (1) be stronger (minimum core atmospheric pressure of 850 hectopascals), (2) shift their
paths eastward, and (3) be generated in the northeastern region of the northwestern Pacific
Ocean.
Joint Research with Kyoto University on Assessment of Water Disaster Risks under Future
Climate Conditions
TMNF/TMRI initiated risk assessment on flood risk associated with global warming with Kyoto
University in October, 2012. There has been growing concern that the occurrence and
frequency of flood risk is possibly exacerbated by climate change. The research team aims to
develop a "Distributed Flow Routing Model" that forecasts the amount of flowing water after
rainfalls. Subsequently, the Model is expected to produce estimation for flood risk and water
damage assessment. Research results will be used to assist the Tokio Marine group companies
in terms of risk management and insurance underwriting, while offering useful information to
the public.
Earthquake and Tsunami Risk Research in Collaboration with Tohoku University
Tokio Marine Group has been bolstering its earthquake and tsunami risk research, making use
of its underwriting and risk management expertise and accumulated data. TMNF has signed an
industry-academia partnership agreement with Tohoku University. TMNF is supporting the
Earthquake and Tsunami Risk Research Team through a corporate sponsorship.
The research team analyzing wave height distribution, arrival time, and other aspects of
tsunamis following major past earthquake such as the Great East Japan Earthquake, and is
researching more reliable damage estimates (simulations) that take into consideration
vulnerabilities and disaster readiness capabilities in society both in Japan and overseas, as well
as tsunami risk assessment approaches that factor in the probability of occurrence. In addition,
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the laboratory is working to make recommendations for disaster readiness and mitigation,
including the provision of basic information and disaster readiness education in the disaster
mitigation planning of coastal areas.
Please see the following websites.
http://www.tokiomarinehd.com/en/sustainability/environmental/index.html
http://www.tokiomarinehd.com/en/sustainability/environmental/riskresearch.html
Industry-Academia Collaborative Research Project on Earthquake-Induced Tsunami Risks
Recognized as “Good Practice “ of “Principles for Financial Action for the 21 st Century
The earthquake-induced tsunami risk research project conducted by Tohoku University and
TMNF has been recognized as the 3rd annual “Good Practice (Insurance Category)” (*1) of
“Principles for Financial Action towards a Sustainable Society (Principles for Financial Action for
the 21st Century)” (*2) at the Annual General Assembly on March 11, 2015 led by the Ministry
of the Environment.
(*1) “Good Practice”
Activities aimed at creating a sustainable society conducted by financial institutions that have
signed the “Principles for Financial Action for the 21st Century” are selected through a mutual
voting system; a program attracting the highest number of votes in each category is selected as
“Good Practice” every year.
(*2) “Principles for Financial Action for the 21st Century”
A set of principles developed as guidelines for action in 2011 based on the proposals of the
Expert Committee on Environment and Finance under the Central Environmental Council, for
which the Ministry of the Environment served as Secretariat. Currently, the Principles have
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been signed by about 190 financial institutions seeking to fulfill their responsibilities and roles
to create a sustainable society (as of March 2015). TMNF has been participating as a member
since the drafting stage, and signed the principles when they were first introduced.
http://www.tokiomarine-nichido.co.jp/en/news/150311e.pdf
(6) Economic value of ecosystem services by Tokio Marine & Nichido’s Mangrove Planting
Project
TMNF announced that The economic value of ecosystem services (cumulative total from April
1999 to March 2014) generated by TMNF’s mangrove planting project in Asia-Pacific Region in
collaboration with reforestation NGOs was worth USD 338.8 million in January 2016. The
assessment was conducted by a third-party research entity “Mitsubishi Research Institute, Inc.”
by applying internationally recognized methodologies.
TMNF has been involved in mangrove planting activities since 1999 and has planted 8,994 ha of
mangrove forests in nine countries in the Asia-Pacific region. As a result, it has achieved “carbon
neutral*” in domestic operations every year since Fiscal 2009. Tokio Marine Group as a whole
also achieved “carbon neutral” in Fiscal 2011, 2013, 2014 and 2015.
In recent years, valuation techniques for natural capital such as biological diversity and
ecosystem services have been advanced and more attentions are paid to business entities’
initiatives to evaluate the social values/impacts generated by CSR projects.
In the light of this circumstance, TMNF evaluated the economic value of ecosystem services
generated by its mangrove planting project conducted from April 1999 to March 2014, by
referring to “Millennium Ecosystem Assessment” and “The Economics of Ecosystems and
Biodiversity (TEEB)” developed through international initiatives on biodiversity and ecosystem
services.
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* A “carbon neutral” state means that CO2 emitted in the course of business activities is
equivalent to the volume of CO2 removed or reduced by way of use of natural energy, the
retirement of carbon credits and mangrove tree planting.
Economic benefits generated by TMNF’s mangrove planting project are as below.
(Unit: USD million)
Ecosystem Services Cumulative Value
1.Mangrove product harvests Approx. 84.2
2.Support to off-site fisheries productivity Approx. 78.8
3.Shoreline stabilization & erosion control Approx. 71.1
4.Shelter against extreme weather Approx. 55.8
5.Water quality regulation Approx. 45.6
6.Carbon sequestration Approx. 3.3
TOTAL Approx. 338.8
In addition to aforementioned quantitative values, various benefits for local communities and a
global society such as an improvement of local people’s lives, disaster risk reduction, climate
change mitigation are generated by the mangrove planting projects.
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Improvement of
local people’s lives
Approximately 1.25 million people (approx. 320,000 households) reside in and around the
planting sites and about 130,000 people depend on mangrove fish, crustaceans, molluscs,
worms and other aquatic fauna as a primary source of income and/or employme
least 35,000 people (9,000 households) depend partially or wholly on mangrove firewood as a
domestic energy source.
Disaster risk
reduction
At least half a million people are protected from storms, tidal surges, erosion, saltwater
intrusion and water pollution by mangroves.
Climate change
mitigation
People around the world benefit from the climate change mitigation offered by the storage of
half a million of tons of CO2 in mangrove forests and its soils.
http://www.tokiomarinehd.com/en/release_topics/topics/2015/20160127.html
1.2
Support national and regional forecasting of future
weather and catastrophe patterns affected by changes in
the earth’s climate.
Research results are published in academic journals and presented at domestic and
international conferences and seminars such as the Geneva Association's 5th CR+I Seminar in
Sendai Japan on 28-29 October 2013.
The Geneva Association's 5th CR+I Seminar in Sendai Japan on 28-29 October 2013
Tokio Marine Group's research results and lessons learned from the Events of March 11 -the
Earthquake and Tsunami and its Impact on Human Life, Terrestrial Infrastructure and
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Consequential Losses were shared internationally and domestically with global disaster risk
prevention and insurance communities including United Nations Office for Disaster Risk
Reduction, the Government of Japan, World Bank , Asian Development Bank, World
Meteorological Organization, and other experts.
Please see the following presentation slides on the Geneva Association's website.
- Tropical Cyclone Genesis in the Northwest Pacific Ocean by Haruthoshi Tagaya of Tokio Marine
Research Institute.
- The Status of Stochastic Tsunami Hazard Assessment by Yo Fukutani of Tohoku University
(Tokio Marine & Nichido Risk Consulting).
https://www.genevaassociation.org/search?Search=&FromMonth.Month=10&FromYear.Year=
2013&ToMonth.Month=10&ToYear.Year=2013&TopicFilter=1126&OutputTypeCategoriesFilter=
11977&OutputTypeSubCategoriesFilter=31807&ResearchProgrammeFilter=1119&DocumentFilt
er=&SubSearch=&sort=ranked
1.3
Use research and improve data quality to inform levels of
pricing, capital and reserves to match changing risks.
Reflecting Climate Risk in Corporate Management
Climate Risk Management
Tokio Marine Group sees risks associated with natural disasters including the impact of climate
change, as an important factor in insurance underwriting. At Tokio Marine Holdings, risks are
controlled by allocating management resources to match net assets (i.e., keeping the level of
insured risk within allowable limits), in order to adequately absorb losses within the scope of its
net assets, even in the event of catastrophes.
TMNF has received a “strong” rating from Standard & Poor’s for enterprise risk management
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(ERM) practices as part of credit rating processes. We are striving to maintain the rating, and
sustain profitability in a consistent and efficient manner.
Collaborative Risk Research with Risk Management Solutions
TMNF and Risk Management Solutions (RMS) agreed to share information on Japanese
earthquake and typhoon risk over a long-term period, in July 2012.
The companies will enhance the quality of natural catastrophe risk analysis. Through the
partnership, RMS' models utilize TMNF's information and knowledge to build a resilient risk
management strategy, enhance risk analysis, and strengthen the accountability for risk
management.
The Climate Change Business Research Working Group
Tokio Marine Group established the Climate Change Business Research Working Group (CCWG)
under the Global Warming Research Project in fiscal 2006, in order to conduct qualitative and
quantitative analysis of climate change risk, clarify the risks and opportunities for business by
climate change, and evaluate the extent of impacts on business.
Business Continuity Plan
TMNF has also upgraded its own business continuity plan for major natural disasters after the
Great East Japan Earthquake. The BCP is activated under the following conditions:
- Earthquakes
(a) Metropolitan area (including Tokyo) – Intensity 5 or greater,
(b) Other areas – Intensity 6 or greater (on Japanese seismic intensity scale)
- Typhoons
Core atmospheric pressure of 960 hectopascals or less, in cases where a typhoon has made
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landfall on a major island in Japan
- Influenza pandemic
Cases of phase 4 or greater (WHO criteria) outbreaks in Japan
- Others
Accidents, fires, etc., on company premises, or other cases equivalent to any of the above.
* Fiscal 2014 Activities in Emergency Response Office of TMNF
TMNF is determined to undertake the following initiatives with the aim of becoming a more
disaster-resilient company.
Trainings
- Comprehensive training for senior managers and employees stationed in headquarters
(annually)
- BCP simulation training by core members of disaster response headquarters
Activities
- Review of business continuity plans and business sustainability plans (BCP/BSP) (action plans,
risk scenarios, manuals) for natural disasters and influenza pandemic
- Trial use of safety confirmation system for employees, staff and agents
- Review of disaster response headquarters (main offices, disaster zones)
- Review of service continuity structure in disaster area
Improve to continue operations in disaster areas including delivery of emergency supplies,
damage-response services, business continuation, etc.
Tokio Millennium Re
When underwriting catastrophic risks, Tokio Millennium Re uses leading international risk
models. Also, Tokio Marine Technologies conducts intensive technical reviews of models
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developed by modeling companies, and supports Tokio Millennium Re’s provision of sound
underwriting. The two companies jointly hold an annual “Global Warming and Climate Change
Summit.” Internationally-renowned researchers and modeling companies are invited to the
Summit to stimulate the participants as they exchange views about risk research, in the interest
of facilitating improvements in risk modeling.
1.4
Evaluate the risks associated with new technologies for
tackling climate change so that new insurance products
can be considered in parallel with technological
developments
Tokio Marine Research Institute
Tokio Marine Research Institute, Tokio Marine Group’s think-tank, conducts researches on
future climate and society prediction and its business impacts on Tokio Marine Group’s
management in order to help the group top management to formulate business strategies and
make a critical business decision making. Its research covered climate risk modeling
technologies and smart-community-related technologies, etc. in FY2015.
http://www.tmresearch.co.jp/ (in Japanese)
http://www.tokiomarinehd.com/en/sustainability/theme1/risk_research.html
Principle 2: Inform public policy making
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2.1
Work with policy makers nationally and internationally to
help them develop and maintain an economy that is
resilient to climate risk. This should include supporting the
implementation of emissions reductions targets and where
applicable supporting Government action that seeks to
enhance the resilience and reduce the environmental
impact of infrastructure and communities.
Public Policy Making
Tokio Marine & Nichido works with policy makers nationally and internationally by itself and
through domestic and international initiatives.
http://www.tokiomarinehd.com/en/sustainability/group_csr/initiative.html
Tokio Marine & Nichido works closely with Ministry of the Environment of Japan (MOE) and has
been approved as one of the Eco-First companies by the ministry.
https://www.env.go.jp/guide/info/eco-first/commitment.html (in Japanese)
http://www.japanfs.org/en/news/archives/news_id028505.html
Tokio Marine & Nichido became a signatory to the MOE-led initiative, the Principles for
Financial Action for the 21st Century (Financial Action Towards a Sustainable Society) in 2012.
It works closely with MOE by actively participating in the Insurance Working Group (IWG)
activities for creating a safe, secure and sustainable society. At its IWG discussion session in
January 2016, Masaaki Nagamura, Division Head of CSR at TMHD/TMNF, gave a speech on
COP21 and its consequences to the insurance industry. The meeting was attended by approx.
50 experts from life/non-life insurance industry and MOE officials.
http://www.env.go.jp/policy/keiei_portal/kinyu/gensoku-en.html
The 3rd United Nations World Conference on Disaster Risk Reduction
The 3rd United Nations World Conference on Disaster Risk Reduction (WCDRR) was held from
March 14th to 18th in Sendai and adopted new people-centered "Sendai Framework for DRR." During WCDRR, Tokio Marine held three public forum events; "Lecture Presentation of Tohoku
University and TMNF: Industry-Academia Collaborative Research Project", "The Geneva
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Association(GA)'s event: Insurance
as Contributors to Problem Solving and Impact Reduction" and "Creating Disaster-Resilient
Societies from a Business Perspective." Each event was attended by approximately 100
participants. Chairman Sumi of TMNF said "I am convinced that insurance will play a more
significant role in mainstreaming disaster risk reduction under the new framework." in his
opening remarks at the GA event. Tokio Marine Group aims to contribute to create a safe,
secure and resilient future by proactively enhancing DRR worldwide.
Contribution to the international policy-making discussions on disaster risk financing and
insurance (DRFI) among the Asia-Pacific Economic Cooperation(APEC)’s member economies
Tokio Marine is leading the discussion on reducing the climate change and disaster risk
related insurance-related protection gaps in disaster-vulnerable APEC economies through the
Asia-Pacific Financial Forum (APFF)/APEC Business Advisory Council (ABAC) which serves the
APEC’s Finance Ministers Process (FMP). Tokio Marine led the APFF’s drafting process in the
Forum’s proposal to promote DRFI in the APEC region. The proposal made its way to the
APEC-FMP, and its recommendations were incorporated in the “Cebu Action Plan,” a ten-year
roadmap to strengthen financial resiliency in the APEC region which was agreed by FMP, with
the leadership of the Philippine presidency. Under the Cebu Action Plan, DRFI was recognized as
a priority issue at APEC’s FMP.
During the preparatory stage, and in response to the request of the Philippine Ministry of
Finance, the host for 2015 APEC year, Tokio Marine assisted in planning a two-day seminar on
DRFI and micro-insurance in Bacolod City, the Philippines, on 29-30 April, 2015. Tokio Marine
reported on APFF’s proposal to promote DRFI in the region, in addition to moderating a session
on disaster risk modeling. The seminar was attended by approx. 80 finance ministry officials,
regulators and international organizations.
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Even after the APEC presidency was transferred to Peru for its 2016 APEC year, DRFI continues
to stay in its priority list. In fact, the Peruvian Ministry of Economy and Finance hosted a
two-day seminar on DRFI with a focus on how to advance disaster risk data collection and the
designing of domestic risk pooling mechanism. As an APFF sherpa to promote DRFI discussions,
Tokio Marine contributed to the planning of the workshop by inviting risk modeling firms and an
insurance regulator from Chile to substantiate the discussion, on top of presenting private
sector perspective in designing a risk pooling mechanism with public-private sector
collaboration. The workshop was attended by approx. 50 finance ministry officials from the
APEC member economies.
2.2
Promote and actively engage in public debate on climate
change and the need for action.
Public Debate on Climate Change and Natural Disaster and the Need for Action
Tokio Marine & Nichido hosted the Geneva Association's 5th Climate Risk and Insurance
Seminar in Sendai Japan in October 2013. Ms. Margareta Wahlstrom, the United Nations Special
Representative of the Secretary-General for Disaster Risk Reduction, Mr. Soichi Nakajima,
Director for International Disaster Management Cooperation in the Cabinet Office, the
Government of Japan, representatives of World Bank, Asian Development Bank, World
Meteorological Organization, Tohoku University and insurance experts participated.
Shuzo Sumi, Chairman of Tokio Marine & Nichido made an inspiring opening speech expressing
“there is much room for insurance to be explored as a useful social measure to better prepare
for the next large scale disaster.” Mr. Harutoshi Tagaya, Managing Director of Tokio Marine
Research Institute, spoke on “Tropical Cyclone Genesis in the Northwest Pacific Ocean” and Mr.
Masaaki Nagamura, General Manager of Tokio Marine & Nichido presented on “Review of the
Insurance Industry Responses to March 11. “
https://www.genevaassociation.org/search?Search=&FromMonth.Month=10&FromYear.Year=
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2013&ToMonth.Month=10&ToYear.Year=2013&TopicFilter=1126&OutputTypeCategoriesFilter=
11977&OutputTypeSubCategoriesFilter=31807&ResearchProgrammeFilter=1119&DocumentFilt
er=&SubSearch=&sort=ranked
Contribute to the UNISDR/ The Geneva Association NAT-CAT Case Study Report
The Geneva Association produced a case study report on natural catastrophes in spring 2013.
The project served the efforts of the United Nations Office for Disaster Risk Reduction (UN ISDR)
to pave the way for creative discussions among the public and private sectors on how insurance
mechanism can effectively enhance disaster risk resiliency of the society. TMNF contributed to
the report by submitting an article on how the Japanese residential earthquake insurance
system responded to the 11 March 2011 Tohoku earthquake and tsunami.
Contribution to the Development of the UNEP FI Principles for Sustainable Insurance
As a member of the Insurance Commission of the UNEP Finance Initiative (UNEP FI) and a Board
Member for Asia, TMNF has been participating in UNEP FI's sustainability research and policy
development for the insurance industry.
TMNF supported and became a founding signatory member of the Principles for Sustainable
Insurance (PSI) which UNEP FI launched to coincide with the United Nations Conference on
Sustainable Development (Rio + 20) in June 2012.
As a PSI signatory, TMNF participated in "A dialogue with the Indian insurance industry on the
PSI", which was jointly organized by the Insurance Institute of India (III) and UNEP FI in January
2013. TMNF presented its experience in responding to the environmental and social needs, in
an attempt to drive the interest of Indian insurance market players towards sustainable
business conduct. In addition, as a board member of the UNEP FI-PSI, TMNF is participating in
the development of strategies to promote the PSI.
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Currently, PSI is running a project to enhance global resilience, in which TMNF is involved.
http://www.unepfi.org/psi/
Supporting National Government/Agencies, Local Governments
Following the Great East Japan Earthquake, Japanese national, prefectural, and municipal
governments are in the process of major revisions of their tsunami disaster scenarios in coastal
regions, and updating their business continuity plans (BCPs).
Tokio Marine & Nichido Risk Consulting Co. (TRC) provides catastrophe risk assessments for
local governments as well as consulting for BCPs in response to disasters.
ClimateWise “Thought Leadership”
Kunio Ishihara, TMNF’s ex-Chairman of the Board, submitted an article to ClimateWise on “the
role of insurers in strengthening business resilience to climate risk,” in February 2013. Building
on the lessons from the Tohoku Earthquake and Thai floods, the article highlighted examples of
how insurers can mobilize expertise to help society recover from disaster in the aftermath of a
catastrophe.
http://www.climatewise.org.uk/issue-three/
Contribution to the Caring for Climate report “The Business Case for Responsible Corporate
Adaptation”
The United Nations Global Compact (UNGC), the secretariat of the United Nations Framework
Convention on Climate Change (UNFCCC) and the United Nations Environmental Programme
(UNEP) published A Caring for Climate Report “The Business Case for Responsible Corporate
Adaptation: Strengthening Private Sector and Community Resilience in December 2016. Tokio
Marine Nichido helped the secretariat to publish this report by providing its Green Gift and
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Mangrove Planting Project titled “ Protecting Natural Resources and Building Local Resilience to
Natural Disasters” is on Page67-69.
https://www.unglobalcompact.org/library/3701
Contribute to public debate on climate change through The Geneva Association’s seminar
In the run up to COP21, SCOR Foundation, Toulouse School of Economics, and The Geneva
Association co-organized a two-day seminar on climate risks entitled “Decision making and
insurability in a context of climate uncertainty” on 9-10 June, 2015 in Paris. Tokio Marine
participated as a panelist at a roundtable on climate risks insurability. The speech was featured
in the Insurance Day.
http://scor-climaterisks-2015.com/seminar-content
https://www.insuranceday.com/ece_incoming/tokyo-facing-increased-typhoon-risk.htm
In December 2015, to coincide with COP21, the Geneva Association hosted a one-day seminar
with the OECD to discuss climate change and its impact to the insurance industry. Tokio Marine
participated in the event to offer its views reflecting the Japanese insurance industry’s
experience in dealing with extreme weather events. Subsequently, the EE+CR WG wrote up a
report entitled“COP21 Paris Agreement: What Does It Mean for the (Re)
insurance Sector?”Tokio Marine participated in the drafting process.
https://www.genevaassociation.org/media/942906/whatdoescop21meanforinsurance
Participating in the Financial Stability Board(FSB)’s Taskforce on Climate-related Financial
Disclosure (TCFD)
In January 2016, Masaaki Nagamura, Division Head of CSR, became a member of the TCFD
under the auspices of the FSB. The Phase 1 report was completed in March 2016, and was
subsequently submitted to the FSB’s plenary meeting on 31 March, 2016. Mr.Nagamura took
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part in the reporting session as one of three TCFD members, as a result of which, the report was
welcomed by the FSB plenary. Later in the day, a stakeholder outreach event was co-hosted by
Bloomberg LP (Tokyo) and Tokio Marine, where briefing was made to the audience of approx.
120, representing financial/non-financial industries, government offices, NGOs, academia and
media.
https://www.fsb-tcfd.org/
Principle 3: Support climate awareness amongst our customers
3.1
Inform our customers of climate risk and provide support
and tools so that they can assess their own levels of risk.
Activities supporting climate awareness amongst our Societies
Tokio Marine Group holds seminars related climate risks mainly for public.
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TMNF and Tokio Marine Research Institute hosted the natural disaster risk seminar entitled
"Frontier of natural disaster research ―How Business Community responds to the future
explosion of Mt. Fuji" on November 4 2015.
-Seminar Presenters:
Dr. Masato Koyama, Professor, Center for Integrated Research and Education of Natural
Hazards, Shizuoka University
Dr. Takayoshi Iwata, Professor, Center for Integrated Research and Education of Natural
Hazards, Shizuoka University
Mr. Yasuhiro Takahashi, General Manager, Toyota Motor Corporation
http://www.tmresearch.co.jp/seminarresult/seminar_10/ (in Japanese)
Climate Change-related Consulting Services
Tokio Marine & Nichido Risk Consulting offer climate change consulting services to a diverse
range of corporations.
Examples:
・Integrated consulting in the environmental field
(Consulting on environmental risk analysis, support to develop ISO environmental management
systems, soil contamination and environmental liability)
・Consult for business risk on solar power plant projects - Soil contamination consulting,
・Consult environmentally friendly and safe driving
・Consult carbon management (lifecycle assessment) for products and services
・Publication of Talisman magazine, organization of environmental seminars
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3.2
Encourage our customers to adapt to climate change and
reduce their greenhouse gas emissions through insurance
products and services.
“Green Gift” Project
Since May 2009, TMNF has been promoting paperless business conduct by recommending
policyholders to choose online insurance policy wording for core products such as personal auto
and fire policies. When a customer selects the internet option instead of receiving paper
wordings, the company donates the cost of planting two mangrove trees for each policy (which
is known as the “Green Gift” project).
- Results for fiscal 2015
- Ratio of paperless auto insurance policy wordings to total: approximately 74%
- Reduction in the annual amount of paper used: approximately 2,600 tons
As articulated in the Sustainability Report, the project has covered nine countries in the
Asia-Pacific, with a total coverage of 9,474 hectares. Conceptually, TMNF offers its customers an
opportunity to satisfy their inherent desire to behave environment-friendly by pledging to plant
mangrove on their behalf, while exercising its traditional function as an insurance company.
TMNF initiated this project in the hope to work together with customers to protect the global
environment.
The planting process requires the involvement of national or rural forestry authority, NGOs with
credible knowledge and experience, and the local community. With 17 years of continuous
collaborative efforts, the project has reached a stage where local communities are running their
lives enriching the bio-diversity surrounding the mangrove forest and harvesting from the
revived natural system.
In the wake of March 11, 2011 earthquake and tsunami which hit Japan’s Tohoku Region, a
number of TMNF’s production offices heard voices of expectation from their customers and
agents to introduce an initiative to preserve the nature of Japan, its home country, in addition
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to the mangrove planting activities that take place overseas. In response, TMNF launched the
“Green Gift II” project effective October 2013. While maintaining its flagship mangrove planting
activities, “Green Gift II” broadened the scope of qualified insurance products and expanded
the scope of subject materials from policy wordings to include policies and renewal instructions,
thus enabling support to promote domestic nature conservation efforts taking place in various
parts of Japan. By dividing Japan into 16 regional blocks, TMNF’s branch operation in charge of
each regional block is entitled to plan environmental activities intended to serve local
community residents to learn the importance of nature conservation. The planning and
organization is conducted with the involvement of regionally active NPOs which specialize in
environmental issues, and with the assistance of regional Environmental Partnership Offices,
which are administrative arms of the Ministry of the Environment, along with the Nippon NPO
Center, which functions as the national coordinator of the program. It marked the first
opportunity for TMNF to engage with a group of NPOs to put in place a program which linked
insurance products with local communities on a nationwide scale. By the end of fiscal 2013, all
16 blocks successfully initiated their activities. The “Green Gift II” is run in line with the Act for
the Promotion of the Environmental Activities through the Enhancement of Environmental
Education, which encourages private sector to work with local communities and the public
sector to promote awareness on environmental protection. The project thus receives official
“support” from the Minister of the Environment.
http://www.tokiomarinehd.com/en/sustainability/theme2/productservice02.html
Provision of Insurance Products and Services Related to Solar Power Plants
Japanese Government launched the feed-in tariff scheme for renewable energy in July 2012.
Tokio Marine group companies provide a variety of insurance products, investment funds and
consulting services related to renewable energy.
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TMNF launched a package program which combines insurance coverage (e.g. property, liability,
warranty) and risk consulting services for solar power plant facilities in July 2012.
- Planning stage
・Regulatory risk: Consulting on environmental regulations
・Litigation risk: Environmental/natural disaster hazard surveys, soil contamination surveys
・Weather risk: Diagnosis of sunshine and wind condition risks
- Construction stage
・Regulatory risk: Consulting on environmental regulations
・Litigation risk: Contractors’ liability insurance, facility managers’ liability insurance, product
liability insurance, directors’ and officers’ liability insurance
・Accident and disaster risk: Contractors’ all risks insurance, disaster-recovery assistance
services
-Operational stage
・Regulatory risk: Consulting on environmental regulations
・Litigation risk: Contractors’ liability insurance, facility managers’ liability insurance, directors’
and officers’ liability insurance
・ Accident and disaster risk: Property insurance, miscellaneous pecuniary loss insurance,
disaster-recovery assistance services, extreme weather insurance, weather derivatives
http://www.tokiomarinehd.com/en/sustainability/theme2/productservice02.html
3.3
Seek to increase the proportion of non-life claims that are
settled in a sustainable manner.
The Disaster Recovery Support in collaboration with BELFOR
The services of BELFOR contribute to the reduction of waste by promoting the cleaning and
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repair of buildings and facilities as part of disaster recovery support. In partnership with BELFOR
Japan, TMNF is offering disaster recovery support services for corporate comprehensive
property insurance. Under these riders, in the event a client experiences damage, BELFOR
immediately dispatches personnel to the site and takes steps to protect the damaged property.
TMNF responds to pay out insurance claims to cover the costs for the restoration of the
equipment and facilities. After the Great East Japan Earthquake and flooding in Thailand, TMNF
provided support for many corporations for the early recovery of their business activities.
The Use of Recycled Parts in Auto Insurance Claims Services
We encourage customers to accept repairs as a first choice to deal with damage from
automobile accidents. If replacement parts are required, we urge customers to accept recycled
parts. In fiscal 2015(2014), approximately 26,893 (25,849) parts were recycled in this way.
3.4
Through our products and services assist markets with
low insurance penetration to understand and respond to
climate change.
Weather Insurance and Micro-insurance in Developing Countries
Since 2004, IFFCO-TOKIO General Insurance (ITGI) in India has been offering index-type weather
insurance to compensate farmers for revenue losses due to drought. ITGI provides
approximately 1.5 million farmers with micro insurance products related to climate risks.
In FY 2012 results: "Barish Bima Yojna" for summer crops was distributed to 1,140,000 farmers,
whereas "Mausam Bima Yojna" for winter crops offered coverage to 420,000 farmers
throughout India.
Gross written premium for Crop & weather insurance for FY2015 was Rs 912 Million.
ITGI has provided approximately 1.7 million low-income households with medical insurance
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products “Rashtriya Swasthya Bima Yjna” since 2011.
Please see the following websites.
http://www.tokiomarinehd.com/en/sustainability/theme1/productservice01/poverty.html
Principle 4: Incorporate Climate Change into our investment strategies
4.1
Evaluate the implications of climate change for
investment performance and shareholder value.
Implication of climate change for investment performance and shareholder value
Tokio Marine Group evaluated the implications of climate change for investment performance
and shareholders value and found that it should prioritize support services for Japan’s
renewable energy implementation and expansion among various climate change issues.
Signing United Nations Principles for Responsible Investment
Tokio Marine Asset Management (TMA) established the Responsible Investment Committee
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internally in July 2010, for specialists to conduct research and analysis related to environmental,
social, and governance topics (ESG). TMA agreed to the principles and concepts of the United
Nations Principles for Responsible Investment (UN PRI) and became a signatory in April 2011.
TMNF signed the UN PRI in its position as an insurance company in August 2012.
In addition, Tokio Marine Capital signed the UN PRI in its position as a private equity fund in
April 2013. TMA, TMNF and TMCap are working toward initiatives that consider ESG issues in
carrying out their respective activities. These companies participated in various PRI Japan
Network activities to promote ESG investment.
http://www.tokiomarinehd.com/en/sustainability/group_csr/evaluation/index.html
Signing CDP climate Change Investor and Water Disclosure Initiatives
TMNF supports CDP, and endorsed CDP3 in 2005 as an institutional investor. TMNF also
endorsed CDP Water as an institutional investor in 2010.
4.2
Incorporate the material outcomes of climate risk
evaluations into investment decision making.
Tokio Marine Group’s climate risk evaluation into investment decision making
TMA began providing Japanese equity SRI funds and Global SRI investment trusts in fiscal 2006,
based on its own independent ESGR (environment, social, governance, risk management)
analysis and evaluation.
According to Tokio Marine Group’s climate risk evaluations, renewable energy is a priority in
developing its business and tackling climate change.
(1) Investment in Environmental Technologies (Renewable Energy)
TMA launched TM Nippon Solar Energy Fund 2012 managing 9 billion yen in 2012, TM Nippon
Solar Energy Fund 2013 managing 13.5 billion yen in 2013, and TM Nippon Solar Energy Fund
2014 managing 7.9 billion yen in 2014 for large-scale photovoltaic installations in Japan. These
funds are for large investments in domestic photovoltaic installations for the national “Feed-in
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Tariff Scheme for renewable energy,” which started operating in July 2012.
(2) Investing in Clean Energy
TMNF is investing in environmental venture businesses such as clean energy development
projects, industrial waste treatment businesses, and so on. Total investment in this area since
2,000 has amounted to several billion yen.
4.3
Communicate our investment beliefs and strategy on
climate change to clients and beneficiaries.
Communication
For institutional investors, TMA launched a socially responsible investment (SRI) fund targeting
Japanese companies in January 2006. Leveraging the comprehensive risk management
know-how of Tokio Marine Group, this fund aims to obtain long-term and stable added value
based on the Group's unique environmental, social, governance and risk management (ESGR)
analysis and evaluation. In March 2010, the company also launched mutual funds for overseas
institutional investors.
http://www.tokiomarinehd.com/en/sustainability/theme1/susinvestmen.html
TMA intends to fulfill its social responsibilities as an institutional investor and improve
investment performance over the long term while giving due consideration to ESG issues in its
asset management operations.
TMA discloses Investment philosophy, investment process, risk management system,
investment team and Exercise of the Voting Rights on the website.
http://www.tokiomarineam.com/investment_approach/voting_rights.htmlhttp://www.tokioma
rineam.com/about_us/pri.html
Japan’s Stewardship Code
In May 2014, TMNF announced its acceptance of “the Principles for Responsible Institutional
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Investors (Japan’s Stewardship Code) - To promote sustainable growth of companies through
investment and dialogue -. TMNF disclosed the policy on how it fulfilled the stewardship
responsibilities in August 2014 and September 2015.
http://www.fsa.go.jp/en/news/2014/20140610-1/01.pdf
http://www.tokiomarine-nichido.co.jp/company/about/policy/stewardship.html (in Japanese)
http://www.fsa.go.jp/en/refer/councils/stewardship/20140407.html
http://www.tokiomarinehd.com/en/sustainability/environmental/investfinan.html
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Principle 5: Reduce the environmental impact of our business
5.1
Engage with our supply chain to work collaboratively to
improve the sustainability of their products and services.
The Group Code of Conduct
Tokio Marine & Nichido Group formulated the Group Code of Conduct and the Principle of
Transactions, which outlines the items that should be followed in terms of conducting
transactions. In doing so, the Group and business partners fulfill their social responsibilities
while also mutually achieving sustainable development.
Please see Section 4 of the code as indicated below.
“4. Consideration for the environment
Tokio Marine & Nichido Group promotes the purchase of products with the least impact on the
environment (purchase of green products) and works in cooperation with business partners to
promote the creation of a recycling-oriented society.”
http://www.tokiomarinehd.com/en/sustainability/governance/valuechain.html
Support for taking Eco-Action 21 certification
For insurance agents operating auto maintenance shops, TMNF Auto Support Center provides
support for certification and registration of Eco-Action 21(environmental system for small- and
medium-sized enterprises), the environmental management system for small- and
medium-sized enterprises formulated by the Ministry of the Environment. Specifically, the
company holds business seminars for interested agents to explain the necessary steps for
certification and offers practical support. Through the company's support, the auto
maintenance shops have acquired certification.
Promoting the use of recycled auto parts
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From the perspective of creating a recycling-based society and reducing the burden on the
environment (i.e., constraining CO2 emissions from the manufacture of parts*), Tokio Marine
Group is calling on its value-chain partners to engage in actively using recycled auto parts when
repairing vehicles used by Group companies.
Furthermore, TMNF, Nisshin Fire & Marine Insurance and E. design Insurance are taking action
in calling for the use of recycled auto parts and proposing the use of these parts to individual
and corporate customers that have met with accidents.
Number of instances of use of recycled auto parts (FY2015, TMNF): approximately 26,893
(+4.0% compared with the previous year)
Recycled parts are said to have an effect in reducing CO2 emissions compared with new parts:
for example, 23.1 kg for a bumper, 97.3 kg for a door, etc. (Source: Survey by the General
Insurance Association of Japan)
With the approval of customers, TMNF is making efforts to expand the use of recycled parts.
The company's actions include distributing pamphlets to boost awareness of the Recycled Parts
Usage Promotion Campaign among agents and auto repair shops, as well as creating content for
tablet devices to aid these businesses in easily explaining the merits of recycled parts to
customers.
5.2
Measure and seek to reduce the environmental impact of
the internal operations and physical assets under our
control.
Environmental Impact Reduction Activities
Tokio Marine Group continues working to reduce the environmental impact arising from its
business activities.
TMNF installed or upgraded energy efficient equipment and devices in offices, and applied
energy-saving practices for lighting and air conditioning, installed teleconferencing systems in
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major locations, converted to “thin client” ICT system network design for in-house intranet,
introduced smaller vehicles, fuel-efficient vehicles, hybrid vehicles and electric vehicles to
company fleet, and purchased renewable energy certificates (Wind Power).
In addition, not only TMNF but also the entire Group achieved carbon neutrality and carbon
positive status for the fiscal 2015 by having the CO2 absorbed and fixed through mangrove
planting in the Asia-Pacific region and the purchase and use of green electricity certificates to
offset CO2 emissions arising from its business activities.
29 major environmental reduction projects are implemented. Major activities are as follows.
- Electricity usage reduction activities
- Set air-conditioning room temperature at 28 degree Celsius during summer season and 19
degree Celsius during winter season
- Turn off lights of vacant meeting and floor rooms
- Go Go challenge Initiatives to eliminate overtime work
- Gasoline usage reduction activities
- Eco-friendly safety driving Initiative
- Promote use of public transportation
- Paper usage reductions activities
- Promote 2 in 1 paper-printing practice
- Promote conducting less-paper and paper-less meetings
- Visualization of number of papers printed and copied
Tokio Marine Group promotes group-wide environmental reduction activities to achieve its
medium-term emission reduction target of -3% from the FY2014 level. Each group company
sets emissions reduction targets or energy consumption reduction targets to contribute to
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achieving group emission reduction targets.
http://www.tokiomarinehd.com/en/sustainability/theme2/reduction.html
5.3
Disclose our direct emissions of greenhouse gases using a
globally recognised standard.
Tokio Marine’s CO2 emissions for FY2015
Tokio Marine Group continues working to reduce GHG emissions arising from its business activities.
Please see Tokio Marine’s CO2 emissions as follows.
Tokio Marine Group (Global) - CO2 emissions in FY2015
・ Scope 1: 14,954 tons ( +0.8% from the previous year)
・ Scope 2: 77,854 tons ( -0.5% from the previous year)
・ Scope 3 (Business Travel): 5,992 tons (+7.5% from the previous year)
・ Sub-Total: 98,800 tons (+0.5% from the previous year)
・ Scope 3 (Others): 23,480 tons
・ Grand-Total: 122,280 tons
TMNF (Japan) - CO2 emissions in FY2015
・ Scope 1: 7,756 tons (-2.9% from the previous year)
・ Scope 2: 44,177 tons (-7.5% from the previous year)
・ Scope 3 (Business Travel): 1,658 tons (+6.9% from the previous year)
・ Sub-Total: 53,590 tons (+6.9% from the previous year)
・ Scope 3 (Others): 17,041 tons
・ Grand-Total: 70,631 tons
Tokio Marine Group’s CO2 emissions slightly increased in FY2015 from the previous year mainly due
to the expansion of international insurance operations in U.S.A. and UK.
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Tokio Marine’s Emission Reduction Target against baseline
Tokio Marine’s CO2 Emission reductions targets and results are as follows.
- Group’s medium-term absolute target for FY2015-2017: -3% compared with the FY2014 level
(Emission reduction initiatives are in progress.)
- Group’s short-term absolute target for FY2015: -1% compared with the FY2014 level (This target
was not achieved mainly due to business expansion in international insurance business.)
- TMNF’s long-term absolute target for FY2050: -60% compared with FY2006
(Emission reduction initiatives are in progress.)
- TMNF’s long-term absolute target for FY2020: -40% compared with FY2006
(Emission reduction initiatives are in progress.)
http://www.tokiomarinehd.com/en/sustainability/theme2/reduction.html
http://www.tokiomarinehd.com/en/sustainability/library/pdata.html
Initiatives Toward Becoming Carbon Neutral
Mangrove forests have an effect on the prevention and mitigation of global warming by
absorbing and fixing a significant volume of CO2. Under the concept of "Insurance for the
Future of the Earth," Tokio Marine Group has engaged in the Mangrove Planting Project since
1999. As of March 2016, 9,474 hectares
of mangrove forest have been planted through this project in nine countries, primarily in Asia.
Each Group company strives to reduce the environmental burden through energy conservation
and resource conservation. At the same time, Tokio Marine Group aims to achieve carbon
neutral status on a global basis, offsetting the CO2 emissions generated by its business activities
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with CO2 absorption and fixation through means such as mangrove planting* and Tradable
Green Certificates (wind power).
CO2 emissions from Scope 1+2+Scope 3 Business Travel in fiscal 2015 amounted to 98,800 tons,
or 100.5% of emissions in the previous year. On the other hand, the CO2 absorption and fixation
effects through mangrove planting amounted to 133,447 tons and the entire Tokio Marine
Group (domestic and overseas) thus became carbon neutral.
* The calculations of the amount of CO2 emissions, CO2 absorption and fixation through
mangrove planting and CO2 reduction through the purchase of renewable energy have been
verified by a third-party organization (Ernst & Young Sustainability Co., Ltd.). (Amounts of CO2
absorption and fixation through mangrove planting are based on evaluations and calculations by
the Central Research Institute of Electric Power Industry (CRIEPI).
5.4
Engage our employees on our commitment to address
climate change, helping them to play their role in
meeting this commitment in the workplace and
encouraging them to make climate-informed choices
outside work.
Encourage Employees to Reduce Environmental Footprints
The key environmental impact of Tokio Marine Group’s business activities is CO2 emissions
(electricity and gasoline) and paper consumption. Each Group company has introduced an
environmental management system (EMS) to reduce the environmental impact of its business
activities, and encouraged its employees to reduce environmental footprints.
CSR Communication Meetings
Not only Tokio Marine & Nichido but also Tokio Marine Holdings hold CSR Communication
Meetings across domestic and international subsidiaries to promote the exchange of opinions
with employees, with the goals of deepening employees’ understanding of CSR initiatives and
implementing these initiatives throughout the organization as well as reflecting these opinions
in future CSR initiatives and measures. These meetings feature a straightforward exchange of
opinions on Tokio Marine Group's CSR initiatives and CSR activities conducted in respective
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workplaces. Comments received from participants included, "Understanding the significance
and purpose of CSR activities and ‘CSR through our core businesses’ has led to increased
motivation."
CSR Training
TMNF conducts CSR training in the form of e-Learning for all employees once a year to
promote understanding and sharing of the philosophy behind the company's CSR
activities. In addition to affirmation of the CSR Charter, the training includes topics such
as confirmation of environmental impact reduction targets and the environmental
management system and confirmation of the company's community and social
contribution initiatives. Key persons in each workplace promote participation in the
training.
http://www.tokiomarinehd.com/en/sustainability/group_csr/promotion.html
Marunouchi Citizen Environment Forum
Collaborating with Mitsubishi Corporation(MC), TMNF hosts “Marunouchi Citizen Environment
Forum” annually to raise environmental awareness of Marunouchi (in which head offices of
TMNF and Mitsubishi Corporation are located) people including employees of TMNF and MC, at
least once a year. In the FY2015 forum, Mr. Takeshi Okada, a former head coach of the Japan’s
national football team, gave a lecture about future of earth and significance of the global
environmental protection. This forum functions an enlightening opportunity for employees.
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Principle 6: Report and be accountable
6.1
Ensure that the organisation is working to incorporate
the Principles into business strategy and planning by
encouraging the inclusion of the social and economic
impacts of climate risk as part of the Board agenda.
Person Responsible for climate strategy
Takayuki Yuasa, Managing Director, is supervising Corporate Planning Department, and
responsible for Corporate Social Responsibility of Tokio Marine Group.
http://www.tokiomarinehd.com/en/company/officers/
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Dedicated Division
Tokio Marine Group has a dedicated CSR Division (CSR Division, Corporate Planning
Department) to work on incorporating the Principles into business strategy and planning by
encouraging the inclusion of the social and economic impacts of Climate risk as part of Board
agenda.
CSR Board and CSR Key Person Conference
Tokio Marine Group regularly convenes CSR Board (Presidents of TMHD/TMNF and group
companies participate) as well as CSR Key Person Conference (TMHD and the group companies'
managers in CSR participate). These bodies evaluate various types of CSR initiatives and discuss
response measures for CSR issues (important issues to be shared by each Group company) for
the entire Group.
CSR Dialogue
TMHD also convenes CSR Dialogue inviting external experts. The dialogues give us opportunities
to hear outside opinions about our awareness and approaches concerning Group CSR issues.
These opinions and other ideas are then reflected in our CSR strategy and our approach to each
individual CSR issue.
Board of Directors
The Company's Board of Directors is reported on the CSR activities of the entire Group while
formulating the Overall Group CSR Strategy (medium-term plan and single fiscal-year plans).
CSR promotion officers at each group company play leading roles in promoting and handling
common CSR issues to be addressed by the entire Group as well as in implementing CSR
activities based on the characteristics of each business and local communities.
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Risk Management
TMHD promotes the enhancement and sophistication of the risk management system for the
entire group. The Company also checks and examines the capital allocation plans to make sure
that they are appropriate in terms of equity capital and manages quantitative risks (including
insurance risk related to natural hazard) for the Group in order to retain credit ratings and
prevent financial distress.
Stakeholder Engagement
In implementing high-quality CSR management, Tokio Marine Group has various types of
relationships to customers, employees, agents, shareholders and investors, SRI rating agencies,
Media, NGOs and NPOs, academia and external experts to identify ESG issues of group
companies based on opinions and evaluations through stakeholder engagements.
http://www.tokiomarinehd.com/en/sustainability/group_csr/engagement.htmlProgress reports
on our CSR strategy are given regularly to corporate management at least once a year.
Please see the following websites.
http://www.tokiomarinehd.com/en/sustainability/group_csr/approach.html
http://www.tokiomarinehd.com/en/sustainability/group_csr/promotion.html
http://www.tokiomarinehd.com/en/sustainability/management/internalcontrol/risk.html
6.2
Publish a statement as part of our annual reporting
detailing the actions that have been taken on these
principles.
Please see the above and our Sustainability Report 2015.
http://www.tokiomarinehd.com/en/sustainability/
http://www.tokiomarinehd.com/en/sustainability/group_csr/evaluation/index.html
http://www.tokiomarinehd.com/en/sustainability/library/report.html
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