Environmental Initiatives

Creating Environmental Value

For Tokio Marine Group, promoting environmental management is crucial in implementing our Corporate Philosophy. We believe that working proactively to contribute to the resolution of environmental challenges and create environmental value leads to greater sustainable corporate value for the Group.

Tokio Marine Group states in our Corporate Philosophy, “Acting as a good corporate citizen through fair and responsible management, Tokio Marine Group will broadly contribute to the development of society,” and in the Tokio Marine Group Sustainability Charter concerning protection of the global environment, “Acknowledging that the protection of the global environment is an important responsibility for all corporate entities, we respect the harmonization with and the improvement of the global environment in all of our activities.”

Tokio Marine Group will work to create environmental value in various ways throughout Group business activities.

Tokio Marine Group Basic Policy on Environment

Tokio Marine Group recognizes that all humans and companies assume an important responsibility for future generations to protect the environment and create environmental value. Accordingly, we are committed to realizing a safe, secure and sustainable society in every aspect of our corporate activities.

Protecting the Global Environment and Creating Environmental Value through Our Business Activities

In our business activities, we will promote climate change mitigation and adaptation measures such as promoting the widespread use of clean energy and responding to natural disasters. Together with our activities to conserve biodiversity and wetlands, we will move ahead to protect the global environment and create environmental value.

(1) Climate Change Countermeasures

Climate change is a global issue and has a direct impact on the insurance industry. As such, we regard it as one of the most important issues that we should tackle head on in our core insurance business and as an institutional investor and global company. Based on constructive dialogue and collaboration with various international organizations, governments, industries, academic institutions, and civil society, we will contribute to the transition to a decarbonized society by proactively implementing climate change countermeasures.

(2) Promotion of the Widespread Use of Clean Energy such as Renewable Energy

In mitigating climate change, we will promote the widespread use of clean energy through the provision of products and services in the renewable energy field and contribute to the transition to a decarbonized society.

(3) Response to Natural Disasters

In adapting to climate change, we will contribute to the creation of a society resilient to natural disasters by applying our knowledge on natural disasters and disaster prevention and reduction, which we have accumulated over the course of our long history, to the development and provision of products and services and by delivering safety and security before and after disasters.

(4) Conservation of Biodiversity and Wetlands

We will contribute to the preservation of biodiversity and wetlands by practicing business activities that give consideration to harmonization with and the improvement of the global environment and by carrying out mangrove planting and other environmental protection activities around the world.

Reduction of Environmental Footprint in Our Value Chain

Tokio Marine Group will promote initiatives to reduce environmental footprint in our value chain while complying with environmental laws and regulations as well as various agreements regarding the environment to which the Group has agreed.

(1) Reduction of Environmental Footprint

We recognize the environmental footprint of our resource and energy consumption and waste generation, and strive to reduce our environmental footprint by promoting resource and energy conservation, decarbonization and low-carbonization, resource circulation, harmonization with nature, and green purchasing from a viewpoint of the overall value chain.

(2) Continuous Improvement of the Environment and Prevention and Reduction of Pollution

We strive to prevent and mitigate environmental pollution by setting goals and targets, reviewing and revising our activities, and continually improving the environment.

(3) Promotion of Environmental Awareness-Raising and Social Contribution Activities

We strive to promote environmental protection not only by promoting the dissemination of environmental information, provision of environmental consulting services and environmental awareness-raising and educational activities both internally and externally, but also by promoting local community and social contribution activities as a good corporate citizen.

Governance and Management Structure

The Board of Tokio Marine Holdings approves the revision or abolishment of the Basic Policy on Environment. However, Executive Officers in charge of the Corporate Planning Department may approve minor changes. The status of compliance with the policy and the Group's environmental initiatives is deliberated at the Management Committee and other meetings and reported to the Board for a timely, appropriate, and transparent information disclosure.

Stakeholder Engagement

Tokio Marine Group strives to protect the global environment, create environmental value and reduce the environmental footprint of our business activities and value chain through dialogue, cooperation, and collaboration with various stakeholders, including future generations.

In promoting these efforts, Tokio Marine Group supports the following international agreements, initiatives, etc., related to the environment*.

We communicate this Basic Policy on Environment to all Group employees and ensure thorough adherence among them and announce it to the public.

Adopted on December 21, 2021

• * The United Nations Sustainable Development Goals, United Nations Framework Convention on Climate Change / Paris Agreement, Sendai Framework for Disaster Risk Reduction 2015-2030, Convention on Biological Diversity, Ramsar Convention, Washington Convention, United Nations Communities of Ocean Action for supporting the implementation of SDG 14, United Nations Global Compact, United Nations Environment Programme Finance Initiative, Principles for Sustainable Insurance, Principles for Responsible Investment, Task Force on Climate-related Financial Disclosures, CDP, Principles for Financial Action for the 21st Century

Tokio Marine & Nichido Philosophy/Policy on Environment

Environmental Philosophy

Adopting the conservation of the global environment as one of its key management policies, Tokio Marine & Nichido recognizes that it is an important responsibility of all humans and companies in the present world to protect the environment. Together with stakeholders, Tokio Marine & Nichido is committed to realizing a society where sustainable development is maintained through the efforts of all employees throughout the entire range of its business activities in order to improve and coexist in harmony with the environment.

Environmental Policy

Tokio Marine & Nichido has established the following policies and will make every effort to realize them in all areas of its activities.

• 1. Protection of the Global Environment and Preservation of Biological Diversity through the Insurance Business Tokio Marine & Nichido strives to contribute to protection of the global environment and preservation of biological diversity through business operations such as insurance products, claim services, financial services, etc.
• 2. Reduction of Environmental Footprint
  Tokio Marine & Nichido strives to reduce the environmental footprint by recognizing the environmental footprint through consumption of resources and energies and emission of wastes and promoting resource saving, energy saving, low-carbonization, resource recycling, harmonization with nature and green purchasing from a viewpoint of the overall value chain.
• 3. Compliance with Environmental Laws and Regulations
  Tokio Marine & Nichido complies with laws and rules of environmental protection and various agreements on environmental protection upon which the company agreed.
• 4. Continuous Improvement of the Environment and Prevention of Pollution
  Tokio Marine & Nichido strives to prevent environmental pollution by setting goals and targets, checking and revising its activities, and continually improving the environment.
• 5. Promotion of Environmental Awareness-Raising and Philanthropic Activities
  Tokio Marine & Nichido strives to promote environmental protection not only by promoting the dissemination of environmental information, provision of environmental consulting services and environmental awareness-raising and educational activities, but also by promoting local community and social contribution activities as a good corporate citizen.

The above policy will be made well known to and understood by all employees and released to the public. (Revised on July 1, 2015)

Stance on Promoting Environmental Management

Tokio Marine Group has established a dedicated department (Sustainability Division, Corporate Planning Department) at Tokio Marine Holdings to oversee and promote environmental management for the Group. This department identifies challenges related to environmental management and formulates and implements the Group’s environmental management strategy. In addition, we have assigned key persons to roles promoting Sustainability in each department in charge of Sustainability at Group companies in Japan and overseas. Sustainability key persons are committed to reducing the environmental burden associated with our business activities alongside the management team in each Group company. The Sustainability Division, Corporate Planning Department supports efforts to promote environmental management at Group companies through dialogue and cooperation with the Sustainability key persons. At core Group companies such as Tokio Marine & Nichido, we have set up a dedicated department to oversee and promote environmental management (e.g., Sustainability Division, Corporate Planning Department at Tokio Marine & Nichido). A Sustainability key person, assigned to each department and branch office to promote Sustainability, encourages the full participation of employees in environmental management.

Tokio Marine Group performs plan-do-check-act (PDCA) management through our proprietary Green Assist environmental management system, which draws on ISO 14001, and engages in energy conservation and resource conservation activities. The head office of Tokio Marine & Nichido adopted an environmental management system based on the ISO 14001 environmental management system in fiscal 1999^* and is working continuously to achieve environment-related targets. At Group companies in Japan and overseas, we are introducing our unique environmental management system through collaboration between Tokio Marine Holdings and Tokio Marine & Nichido and every year targets are set, including environmental issues. Active efforts are being made to achieve these targets.

• * There were no major issues noted in internal auditing or external examination under ISO 14001 and no major violations of environmental laws among Group companies.

Environmental Issues and Initiatives

Tokio Marine Group aims to contribute to the resolution of environmental issues that include alleviation of and adaptation to climate change, the preservation of biodiversity and creation of a resource-recycling society and connect this with greater corporate value. With this in mind, we are implementing a variety of initiatives in collaboration with various stakeholders.

In order to contribute to alleviation of and adaptation to climate change, preservation of biodiversity and creation of a resource-recycling society, we are striving to enhance employees’ environmental awareness, conserve energy and boost environmental performance in the buildings we own and reduce paper consumption, among other efforts. Further, we encourage eco-safe driving throughout the value chain, utilize recycled parts and support the acquisition of Eco Action 21 certification.

Reducing CO₂ Emissions and Becoming Carbon Neutral

The environmental footprint caused by business activities of Tokio Marine Group is relatively small compared with companies in the manufacturing industry; however, the size of the Group makes it a large consumer of energy. In order to reduce the environmental footprint from our business activities wherever possible, we have positioned initiatives for reducing the environmental footprint as a key issue for the Group. The entire Tokio Marine Group, in Japan and overseas, is making efforts to become carbon neutral *under the following strategic concepts.

• * Carbon neutral means that CO₂ emitted in the course of a company’s business activities is equivalent to the volume of CO₂ absorbed and reduced by way of mangrove planting, use of natural energy and the retirement of emissions credits by such a company.

CO₂ Emissions from Energy Sources and CO₂ Absorption and Fixation (Tokio Marine Holdings and major subsidiaries)

[CO₂ emissions]

From fiscal 2015, we began calculating Scope 3 “Category 1: Purchased goods and services (Purchased paper),” “Category 3: Fuel- and energy-related activities not included in Scope 1, 2” and “Category 5: Waste generated in operations” as we expanded the scope of calculation for CO2 emissions. For fiscal 2022, CO2 emissions (Scope 1+2+3) for Tokio Marine Holdings and major subsidiaries were 80,201 tons (domestic: 48,587 tons, overseas: 31,614 tons) versus the initial-year target of 82,648 tons (-1% from the previous fiscal year) and -3.93% compared with the previous fiscal year, thereby achieving the target. The principal factor was efforts to reduce environmental loads.

[Data coverage rate]

We calculate 100% (employee base) of Tokio Marine Holdings and major subsidiaries (excluding Scope 3 “Category 5: Waste generated in operations” and “Category 6: Business travel (by air)).

• * This data is published in the "Sustainability performance Data" of the "Tokio Marine Group SUSTAINABILITY REPORT 2023"

		Fiscal 2020	Fiscal 2021	Fiscal 2022
CO2 emissions		89,894	83,483	80,201
Breakdown	Domestic*1	64,548	55,633	48,587
	Overseas*2	25,345	27,850	31,614
Scope 1	Direct (Gas, heavy oil, gasoline, etc.)	13,163 Domestic: 7,150 Overseas: 6,013	13,022 Domestic: 7,079 Overseas: 5,942	13,362 Domestic: 6,894 Overseas: 6,468
Scope 2	Indirect (Electricity, chilled/hot water, etc.)	53,977 Domestic: 39,732 Overseas: 14,245	47,435*3 Domestic: 31,603 Overseas: 15,832	41,190*3 Domestic: 23,979 Overseas: 17,212
Scope 3	Total	22,754 Domestic: 17,666 Overseas: 5,088	23,026 Domestic: 16,950 Overseas: 6,075	25,649 Domestic: 17,714 Overseas: 7,935
	Category 1: Purchased goods and services (Paper usage)	11,172 Domestic: 9,958 Overseas: 1,214	10,349 Domestic: 9,365 Overseas: 985	9,463 Domestic: 8,436 Overseas: 1,026
	Category 3: Fuel- and energy-related activities not included in Scope 1, 2 (Electricity, steam and chilled/hot water usage)	8,638 Domestic: 6,385 Overseas: 2,253	10,875 Domestic: 6,195 Overseas: 4,679	9,764 Domestic: 5,793 Overseas: 3,971
	Category 5: Waste generated in operations (Waste generation)	1,045	1,038	1,447
	Category 6: Business travel (by air)	1,900 Domestic: 279 Overseas: 1,621 (Coverage rate: 100%)	764 Domestic: 353 Overseas: 411 (Coverage rate: 100%)	4,975 Domestic: 2,068 Overseas: 2,907 (Coverage rate: 100%)
CO2 emissions per employee		2.08	1.94	1.86
Number of employees (consolidated fiscal year base)		43,260 persons	43,048 persons	43,217 persons
CO2 reduction (Excluding CO2 fixation through mangrove planting)		3,531	3	-
CO2 fixation through mangrove planting		120,000	130,000	93,000

Data calculation method

Method of Calculation and Scope in Data Collection for Key Sustainability Indicators
“1. Calculation Method of CO₂ emissions originating from energy consumption and CO₂ reduction”

Data collection scope

• *1 Method of Calculation and Scope in Data Collection for Key Sustainability Indicators
  Companies in which the headquarters is in Japan of “2. Tokio Marine Holdings and its subsidiaries (as of March 31, 2023)”
• *2 Method of Calculation and Scope in Data Collection for Key Sustainability Indicators
  Companies in which the headquarters is located overseas of “2. Tokio Marine Holdings and its subsidiaries (as of March 31, 2023)”
• *3 Reflects the CO₂ reduction effect of 8,597 tons from green power purchases.

Initiatives for Energy Conservation and the Reduction of Environmental Footprint

Raising Employees’ Energy Conservation Awareness

Responding to the calls for energy conservation (in particular, the restraint of electricity consumption during peak periods) following the Great East Japan Earthquake of March 2011, Group companies in Japan are implementing Summer& Winter Electricity-Saving Measures as an initiative to firmly establish electricity and energy conservation. Specifically, the companies are making continuous efforts to (1) conserve energy in offices (reducing unneeded light fixtures, placing restrictions on use of items (OA equipment, copiers, etc.) around power outlets and thoroughly managing air conditioning (such as setting temperatures in offices to 28°C in summer and 19°C in winter); and (2) review employees’ work styles (such as encouraging early morning working hours and promoting casual dress code).

In addition, Tokio Marine & Nichido endorses COOL CHOICE, a national campaign that encourages all “smart choices” that contribute to countermeasures for global warming, including for Japan’s energy-saving and low-carbon products, services and behavior in order to attain the Japanese government’s target of a 46% reduction in greenhouse gas emissions by 2030 compared with fiscal 2013. We are promoting activities to realize a decarbonized society.

Promoting the Use of Natural Energy

Tokio Marine Group is promoting the use of natural energy in Japan and overseas. In fiscal 2022, Tokio Marine Holdings, Tokio Marine & Nichido and Tokio Marine & Nichido Life fully switched to renewable energy for electricity used within their head office building. From 2002 to 2022, Tokio Marine & Nichido purchased green power of approximately 1 million kWh annually through wind power and biomass power generation. In fiscal 2022, Tokio Marine & Nichido also started using green power generated by hydropower and purchasing non-fossil certificates. In addition, the Tradable Green Power Certificates purchased by the company are being allotted to the reduction of emissions at target sites based on the system regarding emissions trading and the obligation to reduce total emissions of greenhouse gases pursuant to the Ordinance on Environmental Preservation to Secure the Health and Safety of Citizens of the Tokyo Metropolitan Area (Environmental Preservation Ordinance).
U.S.-based Philadelphia Insurance Companies has purchased green power to account for 100% of its electricity use over the year in its business activities and has achieved net zero emissions^* since fiscal 2013. U.K.-based Tokio Marine Kiln has also fully switched to renewable energy for electricity consumed within its head office building.

• * Net zero emissions are achieved when the net of CO₂ emissions and energy consumed equals zero.

Environment-Friendly Buildings and Facilities

Tokio Marine Group is engaged in initiatives* that consider the environment and disaster prevention in buildings and facilities it owns, as appropriate for each structure.

• Facilities investment amount related to energy conservation measures: 126 million yen (fiscal 2022, Tokio Marine & Nichido)

• * Upgrading to boilers, high-efficiency lighting fixtures (LED, etc.) and air conditioning, etc.

Efforts by Tokio Marine & Nichido

Jointly with Tokio Marine & Nichido, Tokio Marine Holdings has unveiled the design of our new head office building, which will be rebuilt as the redevelopment project of the current Tokio Marine Nichido main building and annex building.
These buildings will be reborn as a 100-meter-high “head office building made of trees,” the world's largest wooden hybrid structure at the time of its completion, which uses an unprecedented amount of domestic fire retardant wood. Wood is an excellent eco-friendly construction material that absorbs and stores CO2 during the process of growth. By utilizing a large quantity of domestic timber and through other CO2 reduction measures, we can reduce the amount of CO2 emitted during the construction of the building by approximately 30% compared to when constructing regular buildings. In addition, we will contribute to saving energy and realizing a decarbonized society* by introducing highly energy-efficient facilities and a district heating and cooling system and using 100% renewable energy for our electricity consumption. Since many trees planted after the Second World War are said to have grown enough for use, generating a substantial amount of demand is essential in restoring the country’s forests and forestry industry. By using a large quantity of domestic timber in our new head office building, we aim to contribute to the revitalization of Japan’s forestry, the creation of local employment and consequently, the establishment of regional circular economies.

• * On February 27, 2022, our new head office building plan acquired provisional certification of “Platinum,” the highest rating in the LEED® (Leadership in Energy and Environmental Design) v4 for Building Design and Construction: New Construction, an international green building rating system.

At Group companies overseas, as in Japan, we are taking measures to conserve energy as appropriate for each building or facility.

In 2017, Philadelphia Insurance Companies (PHLY) in the United States decided to renovate its longused headquarters building to facilitate environmental, social and governance (ESG) efforts. The renovation gave consideration to the environment by replacing windows, switching to a more comfortable, energy-efficient air-conditioning system, adding a charging station for electric vehicles, installing adjustable lighting fixtures that sense movement and natural light and creating a self-sustaining outdoor greenery zone that has won an award.

Initiatives to Reduce Paper Use

Tokio Marine Group’s volume of paper consumed in fiscal 2022 was 5,171 tons (Japan: 4,610 tons, overseas: 561 tons), which marked a decrease of 8.6% on a year-on-year basis thanks to reduction efforts in and outside Japan. In fiscal 2023, we are taking action under a target of reducing paper volume in Japan by 1% from the previous fiscal year.
As a measure to curb paper consumption, Group companies are distributing mobile terminals (tablets and notebook PCs) to employees to reform working styles while reducing paper consumption, along with promoting the paperless Raku Raku Tetsuzuki (Quick and Easy Online Procedures) for applying for insurance on tablet or other devices, expanding the use of paperless conferencing, using green procurement of stationery and office supplies, shifting forms and pamphlets to Web formats (i.e., promoting paperless operations) and firmly establishing the practice of double-sided copying and printing multiple pages on one sheet.
In December 2020, we rolled out Remote Raku Raku Tetsuzuki, a one-stop online service for customers to view a proposed insurance product and its description, and purchase them on their smartphones and other devices. Through this service, we have realized seamless and paperless procedures that also make customers feel at ease.
Examples of Initiatives toward High-Quality Solicitation

Initiatives for Reducing the Environmental Footprint in the Value Chain

Promoting Eco-Safe Driving and the use of recycled auto parts

From the perspective of creating a recycling-based society and reducing the burden on the environment (i.e., curbing CO₂ emissions from the manufacture of parts^*), Tokio Marine Group is calling on employees to engage in the Eco-Safe Driving program of The General Insurance Association of Japan and is actively using recycled auto parts when repairing vehicles used by Group companies.

Furthermore, Tokio Marine & Nichido, 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.

With the approval of customers, Tokio Marine & Nichido 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.

• * Recycled parts are said to have an effect in reducing CO₂ emissions compared with new parts (23.1 kg for a bumper, 97.3 kg for a door, etc. (Source: Survey by The General Insurance Association of Japan))

Source: Ministry of the Environment website (in Japanese)

Preservation of Natural Capital and Biodiversity

Tokio Marine Group has positioned the preservation of natural capital and biodiversity as a challenge that needs to be tackled, and we are striving to find a solution throughout business activities.

Tokio Marine Group’s Vision for Preserving Natural Capital and Biodiversity

Preserving natural capital and biodiversity translates into a variety of benefits, namely, lower emissions of greenhouse gases, mitigation of disaster risks from tsunamis and floods and revitalization of regional economies, and contributes to the creation of a sustainable future. Tokio Marine Group recognizes the importance of achieving the goals of the Convention on Biological Diversity, the Kunming-Montreal Global Biodiversity Framework, the Convention on Wetlands of International Importance especially as Waterfowl Habitat (Ramsar Convention) and the Convention on International Trade in Endangered Species of Wild Fauna and Flora (Washington Convention) and aspires to contribute to becoming nature positive (halting and reversing loss of diversity).
In addition, Tokio Marine Group contributes to the preservation of natural capital and biodiversity, prevention of deforestation and the preservation and restoration of forests by reducing paper usage through insurance products subject to our customer-participating, environment-conscious Green Gift Project as well as by conducting mangrove planting overseas and environmental protection programs (including the protection and restoration of eelgrass beds) in Japan. We undertake such efforts as a member of the United Nations Environment Programme Finance Initiative (UNEP FI), the Principles for Financial Action for the 21st Century initiative of the Ministry of the Environment (MOE), the Promotion Partners program under The Declaration of Biodiversity by Nippon Keidanren and the 30 by 30 Alliance for Biodiversity also of the MOE, and based on the vision outlined below. This vision draws on the Millennium Ecosystem Assessment, the Economics of Ecosystems and Biodiversity (TEEB) and the Guidelines for Private Sector Engagement in Biodiversity issued by the MOE.
Initiatives for preserving natural capital and biodiversity as well as preserving and restoring forests are closely associated with the human rights issues concerning indigenous peoples and local community members. Tokio Marine Group desires to help resolve these issues as well through its business activities.

Protecting the Global Environment through Products and Services

Participation in Social Contribution and Awareness-Raising Activities for the Protection of the Global Environment

Participation in the Promotion Partners Program under The Declaration of Biodiversity by Nippon Keidanren

Tokio Marine & Nichido supports The Declaration of Biodiversity by Nippon Keidanren and in January 2010 joined the Promotion Partners program under the declaration. Our business activities comply with the declaration and its behavioral guidelines.

The Declaration of Biodiversity by Nippon Keidanren (in Japanese)

Participation in the 30 by 30 Alliance for Biodiversity by the MOE

Tokio Marine & Nichido joined the 30 by 30 Alliance for Biodiversity launched by the MOE in April 2023 to end and reverse biodiversity loss (i.e., become nature-positive) by 2030 and achieve the 30 by 30 target of protecting at least 30% of Japan’s land and sea areas by 2030. The company will work together with its stakeholders to preserve biodiversity and wetlands and protect and restore forests.