Addressing Environmental and Social Risks

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]