Addressing Environmental and Social Risks

• Policy to Address Environmental and Social Risks
• Responsible Procurement Guidelines

Tokio Marine Group Policy to Address Environmental and Social Risks

Tokio Marine Group’s business purpose has been to protect our customers and local communities by providing safety and security in times of need. With this in mind, Tokio Marine Group has made it our core identity “To Be a Good Company” – one that can still be trusted by customers and society in their times of need 100 years from now.

From our long history in the insurance industry, we have accumulated knowledge and experience that has enabled us not just to provide safety and security but to contribute to social development as well. In continuing to contribute toward resolving social issues, we help build a safe, secure, and sustainable future that generates value for all of our stakeholders and our society more broadly.

Tokio Marine Group pays attention to the risks of negatively impacting the environment and society, and undertakes transactions (insurance underwriting, investments, and financing) based on the customer’s consideration for the environment and society. We position the mitigation of negative environmental and social impacts resulting from our business activities as an important management issue that must be addressed and will take appropriate measures while referencing international principles of conduct and guidelines.

Environmental and Social Risks to be Identified and Assessed

Tokio Marine Group will strive to appropriately identify and manage risks that have a negative impact on the environment and society in accordance with the Group’s Basic Policy on Environment and Basic Policy on Human Rights. For example, deforestation not only has the risk that has a negative impact on the environment but also various risks including human rights abuses. In identifying and managing such risks appropriately, we will identify environmental and social risks based on the nature and severity of the risks as well as recommendations from various stakeholders and will identify the sectors where such risks are likely to occur.

Sector specific policies

Inhumane weapons Biological weapons Chemical weapons Cluster munitions Anti-personnel land mines	We will not undertake business transactions (insurance underwriting, investment, and financing) with the inhumane weapons sector, which manufactures inhumane weapons, as these pose major humanitarian concerns.
Coal-fired power generation	Compared to other power generation, coal-fired power generation emits more greenhouse gases and also produces toxic substances such as sulfur oxides and nitrogen oxides. Given the high risk of contributing to environmental impacts such as climate change and air pollution, we will not undertake new business transactions (insurance underwriting, investment, and financing) for coal-fired power plants note 1, regardless of whether they are new projects or not.
Thermal coal mining	As with coal-fired power generation, the development of coal mines for power generation projects may result in increased greenhouse gas emissions through combustion at thermal power plants in the future. We also recognize the risks to the workers' occupational health and safety and the impacts of hazardous waste on local biodiversity. In light of the negative impacts on climate change, ecosystems, and human rights, we will not undertake new business transactions (insurance underwriting, investment, and financing) for thermal coal mining projects note 1, regardless of whether they are new projects or not.
Oil sands	We recognize that oil sands mining has the potential to emit large amounts of greenhouse gases compared to conventional oil and gas extraction due to that oil sands mining requires more energy and water resources in the extraction and refining process. We also recognize the risks of infringing indigenous peoples’ rights and negatively impacting the surrounding wildlife and ecosystems. In light of the negative impacts on climate change, ecosystems, human rights, we will not undertake new business transactions (insurance underwriting, investment, and financing) for oil sands mining projects.
Arctic oil and gas	Oil and gas extraction projects in the Arctic Circle (all areas north of latitude 66°33, including the Arctic National Wildlife Refuge, ANWR) entail significant risks of altering the habitats and ecosystems of rare species and marine life. We are also aware of the negative impacts on the livelihoods and cultures of indigenous peoples. In light of the negative impacts on ecosystems and biodiversity, as well as on the indigenous peoples’ rights, we will not undertake new business transactions (insurance underwriting, investment, and financing) for oil and gas extraction projects note 2 in the Arctic Circle.

For details on Tokio Marine Group's transaction policy on climate change risk (insurance underwriting, investment and financing), please refer to "Tokio Marine: Our Climate Strategy".

• [note 1:Exceptions for projects with innovative technologies and approaches, such as CCS/CCUS (Carbon dioxide Capture and Storage / Carbon dioxide Capture, Utilization and Storage) and mixed combustion may be granted after careful consideration, aiming to achieve the goals of the Paris Agreement]
• [note 2:Exemptions for projects with decarbonization plans that are aligned with the Paris Agreement]

Tokio Marine Group Responsible Procurement Guidelines

The Tokio Marine Group will promote responsible procurement and sourcing practices across the entire value chain in collaboration with business partners (suppliers, subcontractors, agents and other entities that provide goods and services to the Tokio Marine Group). Through these efforts, we aim to realize a safe, secure, and sustainable society while achieving sustainable business growth.
The Responsible Procurement Guidelines (the "Guidelines") have been established to promote responsible procurement based on relevant Tokio Marine Group policies^*. The Guidelines also outline matters that Tokio Marine Group requests our business partners to understand and cooperate with. Business partners are expected to request their own business partners to understand and cooperate with the matters set forth in the Guidelines.

• *Tokio Marine Group Compliance Code of Conduct, Tokio Marine Group Sustainability Charter, Tokio Marine Group Wellness Charter, Tokio Marine Group Basic Policy on Human Rights, Tokio Marine Group Basic Policy on Environment, etc.

1. Fair and equitable transactions

1.1 Compliance with laws, rules and regulations and respect for international norms

We shall strictly comply with applicable laws, rules and regulations when conducting our business activities. In addition to respecting international norms and complying with the laws and regulations, we shall respect the traditions and cultures in operating countries. These laws, rules and regulations include those related to the environment, human rights, labor, and products and safety.

1.2 Fair and Free competitions

We shall conduct our business in compliance with antitrust, competition and free trade laws, rules and regulations. We shall not undertake any action that hampers fair and free competition, including collusion and cartel formation.

1.3 Quality and safety of product and services

In compliance with the laws, rules and regulations of each country and region, we endeavor to ensure and improve the quality and safety of our products and services.

1.4 Protection of intellectual properties

We shall respect and not infringe upon intellectual property rights of third parties, including copyrights, trademarks and patents.

1.5 Prohibition of transactions with criminal forces

If we succumb to criminal forces, it would result in encouraging illegal activities. In full recognition of our social responsibility, we shall maintain a firm stand against all criminal forces.

1.6 Prevention of money laundering and assisting illegal activities

We shall endeavor to prevent our business operations from being exploited for the purpose of money laundering, terrorist financing, and proliferation financing of weapons of mass destruction.

1.7 Political activities and political funding, and anti- corruption

We shall comply with applicable laws, rules and regulations regarding public elections, political activities as well as political funds and donations, and we shall always take a fair and unbiased stance. We shall not accept money, goods or other inappropriate or unlawful profits by taking advantage of our position. Also, we shall not accept or give any gifts or entertainment which are illegal or not considered reasonable by social standards. In addition, we shall not allow any improper entertainment, gifts, benefits, or other advantages to a public official or to a person who holds a status equivalent thereto.

1.8 Protection of whistleblowers

We will establish a whistleblowing system, protect the anonymity of whistleblowers, and eliminate retaliation against whistleblowers and those cooperating with investigations in good faith.

2. Human rights and labor

2.1 Prohibition of forced labor and human trafficking

We shall not allow forced labor or any form of slave labor, including bonded labor and human trafficking.

2.2 Prohibition of child labor

We shall not tolerate child labor and shall observe the minimum working age as stipulated by law. We shall not allow young workers to engage in hazardous work.

2.3 Freedom of association and the right to collective bargaining

We shall respect fundamental rights concerning the freedom of association and the right to collective bargaining of workers.

2.4 Prohibition of discrimination and harassment

We shall not discriminate in any way based on sex, gender, sexual orientation or gender identity, age, profession, nationality, race, thought, creed, religion, social status or birth, or physical or mental disability. We shall not tolerate any form of harassment, whether it be physical or mental, including sexual harassment and power harassment and inhumane treatment such as corporal punishment, bullying and threat of any such treatment.

2.5 Respect for diversity and promotion of inclusion

We endeavor to respect the individuality and diversity of each worker and create an environment in which all workers can fully demonstrate their capabilities regardless of sex, gender, sexual orientation or gender identity, age, profession, nationality, race, thought, creed, religion, social status or birth, or physical or mental disability. We endeavor to provide our passionate and entrepreneurial workers with equal opportunities for career development and continuous personal growth.

2.6 Appropriate management of working hours and wages

We shall appropriately manage working hours and pay wages, salaries and remuneration in compliance with relevant labor-related laws and regulations.

2.7 Occupational Health and Safety and wellness management

We will ensure a vibrant working environment and promote the wellness of workers and others by giving consideration to their safety, health and living conditions.

3. Environmental Protection

3.1 Climate change mitigation and adaptation

We will promote the protection of the global environment and creation of environmental value by implementing climate change mitigation and adaptation measures. Through the provision of products and services in the renewable energy field, we will promote the widespread use of clean energy through contributing to the transition to a decarbonized society and the achievement of carbon neutrality.

3.2 Disaster resilience

In preparation for emergencies such as disasters, we will develop a crisis management system, including the formulation of a Business Continuity Plan (BCP). In the event of a disaster, we will strive to ensure the continuity of operations and recovery from disasters by taking actions that place the highest priority on human life while avoiding confusion and maintaining appropriate procurement through the accurate assessment of a situation and prompt and precise instructions.

3.3 Reduction of environmental impact and effective use of resources

We will strive to reduce environmental impact by promoting resource and energy conservation, decarbonization and low-carbonization, resource circulation, harmonization with nature, and green purchasing across the value chain in recognition of the environmental footprint of our resource and energy consumption and waste generation. We will promote reduction, reuse, and recycling (3R) of resources and contribute to the creation of a circular economy.

3.4 Conservation of natural capital and biodiversity

We will contribute to the conservation of natural capital, biodiversity and wetlands and to the realization of Nature Positive by practicing business activities that give consideration to harmonization with and the improvement of the global environment.

4. Information security

4.1 Protection of personal information and privacy

We shall thoroughly manage personal information in accordance with relevant laws and regulations in order to avoid any breach of privacy.

4.2 Confidential information

We shall protect the confidentiality of our own non-public information as well as that received from customers and third parties in accordance with applicable internal and other relevant rules. We shall not disclose confidential information to unauthorized persons or use confidential information except for the purpose of use.

4.3 Cyber security

We will strive to take measures to ensure and strengthen cyber security and strive to prevent and mitigate damage.

5. Establishment of management system

5.1 Establishment of grievance mechanism

We endeavor to establish, operate, and continuously improve grievance mechanisms available to workers of our own and of our business partners.

5.2 Public disclosure and communication

We endeavor to enhance communication with stakeholders through accurate and timely disclosures of information and engagement with business partners.

Adopted on March 2, 2023