Tokio Marine Group supports and respects the Universal Declaration of Human Rights, the ILO Core Labour Standards and the OECD Guidelines for Multinational Enterprises. Also, Tokio Marine Group will contribute to the creation of a safe, secure and sustainable future in collaboration with various stakeholders through participation in initiatives beginning with the United Nations Global Compact (UNGC) and the United Nations Environment Programme Finance Initiative (UNEP FI).
Human Rights, Labour, the Environment and Anti-Corruption
The United Nations Global Compact
The United Nations Global Compact is a voluntary initiative for participation by companies in the creation of a global framework under which companies exercise responsible and creative leadership to act as good members of society to realize a sustainable society.
The ideas and contents of the ten principles concerning human rights, labour, the environment and anti-corruption advocated by the UNGC coincide with Tokio Marine Group’s own approach to CSR as well as its CSR Charter. Therefore, Tokio Marine Holdings has been a signatory to and expresses its support for the UNGC since 2005.
Tokio Marine Holdings is participating in the United Nations Global Compact Network Japan (GCNJ) and in fiscal 2019 participated in such initiatives as the Disaster Prevention and Mitigation Working Group and Reporting Study Working Group, and Woman Empowerment Working Group, among others. From fiscal 2020 and beyond, Tokio Marine Holdings will promote these initiatives as “PARTICIPANT.”
Tokio Marine Holdings summarizes and reports every year on the status of initiatives for addressing the ten principles of the United Nations Global Compact.
Sustainable Finance and Insurance
UNEP FI Principles for Sustainable Insurance (UNEP FI-PSI)
Approximately 200 financial institutions around the world participate in the United Nations Environment Programme Finance Initiative (UNEP FI), an initiative that surveys, researches and puts into practice business approaches that consider economic development, the environment and sustainability. In December 2017, the Asia Pacific Roundtable marking UNEP FI’s 25th anniversary was held in Tokyo. Tokio Marine & Nichido provided support for this roundtable as a sponsor and disclosed climate-related financial data, proactively participated in insurance-themed conferences and contributed to the discussions at these conferences.
The Principles for Sustainable Insurance (PSI) of the UNEP FI is a Working Group that surveys, researches and executes environmental, social and governance (ESG) initiatives in the insurance industry. Tokio Marine & Nichido also supports the intent and policies of the Principles for Sustainable Insurance (PSI) spearheaded by UNEP FI, and in addition to co-hosting the PSI Regional Consultation Meeting for Asia with UNEP FI in November 2011, the company participated in the formulation of principles of action and became a founding signatory to PSI in June 2012. The company is promoting insurance industry initiatives that consider ESG issues together with insurance companies in regions around the world.
From fiscal 2018, Tokio Marine & Nichido participates in the PSI TCFD Insurer Pilot Group and is working to create guidelines of climate-related financial disclosure based on TCFD recommendations related to the global insurance industry.
Ministry of the Environment Principles for Financial Action towards a Sustainable Society (Principles for Financial Action for the 21st Century)
Based on a suggestion from the Ministry of the Environment’s Central Environment Council Expert Committee on Environment and Finance, the Principles for Financial Action for the 21st Century were compiled in 2011 by Japan’s Environmental Financial Action Principles Drafting Committee, which featured the participation of a wide range of financial institutions, with the aim of broadening the circle of initiatives for environmental financing. The Principles for Financial Action are aimed at enabling domestic financial institutions to promote optimal initiatives in their main businesses for addressing a host of issues they face directly such as environmental, social and governance issues. Under these principles, financial institutions seek to unify directions with such international initiatives as UNEP FI and PRI and fulfill their necessary responsibilities and roles for the formation of a sustainable society based on their concerns about the future of the earth.
Within Tokio Marine Group, Tokio Marine & Nichido is actively participating as a member of the drafting committee and the following seven other Group companies have agreed with the intent of and signed the Principles.
- Tokio Marine & Nichido Fire Insurance
- Tokio Marine & Nichido Life Insurance
- Nisshin Fire & Marine Insurance
- E. design Insurance
- Tokio Marine Millea SAST Insurance
- Tokio Marine Asset Management
Tokio Marine & Nichido and Tokio Marine & Nichido Life participated in the initiatives of the Insurance Business Working Group. At the Ordinary Meeting of the Principles for Financial Action convened on March 11, 2015, earthquake and earthquake-induced tsunami risk research (industry-academia collaboration) carried out by Tokio Marine & Nichido and Tohoku University was selected as a Good Practice (insurance category). In the future as well, Tokio Marine Group will continue to promote initiatives toward the formation of a sustainable society.
UN Principles for Responsible Investment (PRI)
The United Nations Principles for Responsible Investment (PRI) is an initiative led by UNEP FI and the United Nations Global Compact that expresses and puts into practice stances and policies that consider ESG issues in investment decisions by financial institutions and institutional investors.
The following Tokio Marine Group companies agree with the thinking of PRI and have signed the Principles.
|Tokio Marine Asset Management (April 2011)||Signed the UN-supported PRI initiative, accepting these Principles as an asset management company. The company established a responsible investment committee composed of the chief asset managers of each line, as well as a responsible investment group. Through these steps, the company develops basic policies, processes and systems concerning responsible investment, and undertakes initiatives that take into account ESG issues during investment analysis, product development and exercise of voting rights.|
|Tokio Marine & Nichido (August 2012)||As an insurance firm that has taken ESG issues into account in its insurance underwriting, investment analysis and other actions, the company signed the PRI.|
Japan Sustainable Investment Forum
Japan Sustainable Investment Forum (JSIF), a not-for-profit organization (NPO), carries out activities to promote the spread and development in Japan of sustainable investment and ESG investment, which are actively undertaken in Europe and the United States. JSIF functions as a venue for information and opinion exchanges, discussions and investigative research among persons involved with SRI and ESG investment and aims for the sound development of SRI and ESG investment and for the building of a sustainable society. As a member of JSIF, Tokio Marine & Nichido is participating in investigative research on SRI and ESG investment and in initiatives for the sound development of this investment.
Climate Change and Natural Disasters
Caring for Climate
Launched in 2007, Caring for Climate is an international initiative convened by the United Nations Global Compact (UNGC), the United Nations Environment Programme (UNEP) and United Nations Framework Convention on Climate Change (UNFCCC) that is aimed at expanding the roles of business in devising climate change measures. As a member of Caring for Climate, Tokio Marine & Nichido is promoting initiatives for climate change measures. Tokio Marine & Nichido’s Mangrove Planting Project that commenced in 1999 and its Green Gift Project that began in 2009 were incorporated as leading climate change adaptation practices in the Caring for Climate report released in 2015 and entitled “The Business Case for Responsible Corporate Adaptation: Strengthening Private Sector and Community Resilience.” This report was made public at the Caring for Climate Business Forum, an event related to COP21 convened in Paris in December 2015.
The United Nations Office for Disaster Risk Reduction (UNDRR) — Private Sector Alliance for Disaster Resilient Societies (ARISE)
In November 2015, The United Nations Office for Disaster Risk Reduction (UNDRR), a strategic framework for disaster risk reduction adopted by United Nations member countries in 2000, launched Private Sector Alliance for Disaster Resilient Societies (ARISE) toward the strengthening and reorganization of the Private Sector Partnership for Disaster Risk Reduction (DRR-PSP) for disaster prevention that Tokio Marine & Nichido joined in 2014.
Tokio Marine & Nichido participated as a member of DRR-PSP in the Third United Nations World Conference on Disaster Risk Reduction held in March 2015 in Sendai and sponsored by UNDRR. Tokio Marine & Nichido contributed to the success of the conference by holding three public forums and operating an exhibition booth in cooperation with Tohoku University and The Geneva Association.
In June 2014, Tokio Marine & Nichido participated in the 6th Asian Ministerial Conference on Disaster Risk Reduction in Bangkok, Thailand, sponsored by UNDRR and the government of Thailand, and in November 2016 participated in the 7th Asian Ministerial Conference on Disaster Risk Reduction held in New Delhi, India, and sponsored by UNDRR and the government of India. In July 2018, Tokio Marine & Nichido participated in the 2018 Asian Ministerial Conference on Disaster Risk Reduction held in Ulaanbaatar, Mongolia, and sponsored by UNDRR and the government of Mongolia. At these conferences, Tokio Marine & Nichido made presentations on its industry-academia collaboration initiatives as well as on the economic value of mangrove planting.
On March 10, 2017, ARISE Network Japan held a public symposium in Tokyo based on the theme “How businesses meet the challenge of extreme weather events ~ The challenge of companies toward disaster resilience.” Tokio Marine Research Institute held a lecture based on the theme “Modeling flood risks of the Arakawa River valley during global warming under future climate change” and disseminated information that included research outcomes through the promotion of industry-academia collaboration.
The Geneva Association – Climate Change and Emerging Environmental Topics (CC+EET)
The Geneva Association is an insurance industry think tank composed of approximately 80 executives from major insurance companies around the globe. As Vice Chairman of the Geneva Association, Tsuyoshi Nagano, President and Group CEO of Tokio Marine Holdings, leads and supports surveys and research on important insurance industry issues (financial stabilization and regulation, extreme events and climate risk, aging of society, etc.) handled by the association. At the same time, as Joint-Chairman of the “Climate Change and Emerging Environmental Topics” working group, he is taking the lead in undertaking surveys and research on climate change and natural disaster risk and disseminating related information to society.
ClimateWise is an initiative in which approximately 30 leading insurers from around the world jointly carry out studies and research on various risks and opportunities related to climate change and make recommendations toward reducing the risks that climate change imposes on economic and social life. The initiative is operated by the University of Cambridge Institute for Sustainability Leadership (CISL) and Tokio Marine Kiln Group CEO Charles Franks serves as a member of the ClimateWise Advisory Council. Participants from Tokio Marine Group include Tokio Marine & Nichido and Tokio Marine Kiln. Tokio Marine & Nichido submits an annual activities report based on ClimateWise Principles to ClimateWise (Secretariat: United Kingdom).
In the future as well, Tokio Marine Group will continue to promote efforts toward mitigating and adapting to climate change.
The ClimateWise Principles
Principle 1: Be accountable
Principle 2: Incorporate climate-related issues into our strategies and investments
Principle 3: Lead in the identification, understanding and management of climate risk
Principle 4: Reduce the environmental impact of our business
Principle 5: Inform public policy making
Principle 6: Support climate awareness amongst our customers/clients
Principle 7: Enhancing reporting
Asia-Pacific Financial Forum
The Asia-Pacific region faces high natural disaster risk and many areas are vulnerable to natural disasters. At the same time, the region is also accumulating assets along with economic growth. In view of these factors, enhancing economic indemnification against natural disasters in some form is an urgent issue for the sound development of Asia-Pacific Economic Cooperation (APEC) member economies and also from humanitarian and national finance perspectives.
The Asia-Pacific Financial Forum (APFF), established in April 2013 in response to this situation as a platform for public-private sector cooperation under APEC to promote the further integration and development of financial and capital markets and financial services in the Asia-Pacific region, recognizes disaster risk as one principal issue and has established a review team. In September 2015, the Cebu Action Plan (CAP) was adopted at the Asia-Pacific Economic Cooperation’s Finance Ministers Process (FMP). Within CAP, Disaster Risk Financing and Insurance (DRFI*1, Disaster Risk Financing and Insurance) was declared as a priority issue and the importance of collaboration with the private sector was emphasized. To implement the action issues specified under CAP, the Working Group on Disaster Risk Financial Solutions composed of finance authorities from nine APEC member economies and related international organizations was launched and APFF is participating in discussions as a member. As part of such initiatives, Tokio Marine & Nichido held the industry-academia collaboration panel discussion “Building a disaster-resilient community in the Asia-Pacific–The power of science and insurance” at the World Bosai Forum in Sendai, Miyagi Prefecture, in November 2017. At this forum, a discussion was held on the ways scientific knowledge is helpful in designing disaster risk financing from the perspective of the Asia-Pacific region and the points of this discussion were reflected in the chairperson’s summary at this forum. Meanwhile, APFF participated in the APEC Workshop on Financial Management of Public Assets against Disaster Risks, which was held in June 2018 at the World Bank’s Tokyo office and convened practitioners from finance ministries in APEC member economies. At this workshop, APFF demonstrated actual examples of how risk modeling techniques of insurance companies can be used effectively in disaster risk management for public assets and emphasized the effectiveness of participation by private insurance companies in preparing for public asset disaster risk.
Tokio Marine & Nichido (Masaaki Nagamura, Special General Manager of Corporate Planning Dept.) is participating as a member of APFF and is leading discussions on DRFI within APFF.
Tokio Marine Group will contribute to the creation of sustainable frameworks that respond to the state of development in each economy through dialogue with finance officials in each country as well as with other finance and insurance related parties.
- *1 DRFI is a broad concept that bundles multiple countries and offers a wide variation of insurance schemes that range from insurance that covers natural disaster risk, with countries being the insured party, to schemes under which private-sector insurance companies provide earthquake insurance coverage for individual customers possessing regular homes and household goods, with governments serving as reinsurers.
Climate Change Disclosure
The Carbon Disclosure Project (CDP) is an organization that drives an initiative under which the world’s principal institutional investors cooperate in calling for companies worldwide to disclose their climate change strategies (risks and opportunities) and greenhouse gas (GHG) emissions. Tokio Marine & Nichido participates every year as a CDP Signatory and is supporting survey research in the areas of corporate-related climate change strategies and GHG emissions as well as energy usage.
Financial Stability Board (FSB) Task Force on Climate-related Financial Disclosures (TCFD)
The Financial Stability Board (FSB) is a body that promotes coordination among authorities responsible for responding to vulnerabilities in the financial system and for ensuring the stability of the financial system. Participants include representatives from central banks, financial supervisory authorities and finance ministries from various countries and regions as well as from principal standards establishment entities, the IMF, World Bank, BIS and OECD.
The Task Force on Climate-related Financial Disclosures (TCFD) is entrusted by the FSB to formulate voluntary recommendations for consistent, comparable, reliable, clear and efficient climate-related disclosures by companies in the financial sector and it released its final recommendations in June 2017.
Tokio Marine Holdings is supporting the activities of the TCFD and is working toward policy recommendations for encouraging disclosure that will contribute to the enhancement of investment decisions by engaging in discussions and exchanging opinions with public and private related parties in Japan and overseas.
Environmental Value Creation
Ministry of the Environment Eco-First System
Eco-First is a system under which companies pledge to the Ministry of Environment that they will proactively undertake initiatives for protecting the environment that include adopting global warming countermeasures and waste and recycling measures. Under the system, the ministry certifies those companies (top-notch companies within the industry) that “carry out visionary and unique business activities that lead the industry” in environmental fields.
In 2008 Tokio Marine & Nichido was certified as an Eco-First company. In fiscal 2014 and 2019, Tokio Marine & Nichido obtained recertification based on a new agreement. This was in recognition of initiatives aimed at protecting the earth’s environment and preventing global warming through the insurance business. These include “offering environment-conscious insurance with the participation of customers through the Green Gift Project” and “research centered on industry-academia collaboration that focuses on climate change and natural disasters.”
Going forward, Tokio Marine & Nichido will continue to promote initiatives for protecting the global environment and preventing global warming as an Eco-First company.
Endorsement of the Ministry of the Environment's COOL CHOICE
The government of Japan has set the target of attaining a 26% reduction in greenhouse gas emissions by 2030 compared with fiscal 2013. COOL CHOICE is 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.
Tokio Marine & Nichido endorses COOL CHOICE, a national campaign being carried out by the government to counter global warming, and will work to make “smart choices” that contribute to the realization of low-carbon operations in all business activities. This includes not only striving for power savings in summer and winter but also in areas ranging from products and services to donations and volunteer activities.
Endorsement of the Ministry of the Environment’s “Fun to Share” Climate Change Campaign
The Ministry of the Environment has been undertaking the Fun to Share climate change campaign since March 2014. By sharing with all citizens information, technologies and knowledge leading to the creation of an enriched low-carbon society, the campaign aims to not only foster interest in and a sense of crisis about global warming concerns but also create opportunities for linking companies, organizations, communities and citizens and realize Japan’s first “Lifestyle Innovation,” in which Japan can take pride, throughout the world.
Tokio Marine & Nichido has endorsed the Fun to Share campaign and is actively promoting initiatives toward the realization of a low-carbon society.
Green Purchasing Network
The Green Purchasing Network was established in 1996 as a facilitative network and an information-disseminating organization of companies, government agencies and non-government organizations leading the way in green purchasing. The network was established based on the recognition that green purchasing plays a crucial role in the formation of markets for environment-friendly products and represents an extremely effective means of promoting the development of environment-friendly products through markets and by extension for building a sustainable society. As a member of the Green Purchasing Network, Tokio Marine & Nichido promotes initiatives for green purchasing.