MS& Insurance : Our Value Creation Approach (109pages)

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Our Value Creation Approach

Achieving the SDGs

In order to realize a resilient and sustainable society, we need to recognize and take the initiative in solving the social issues that hinder it. Social issues include various risks in the global environment, such as climate change and natural capital issues; the emergence of new risks due to the rapid digitalization of industry and society triggered by the pandemic; the increasing severity of natural disasters due to the effects of climate change; the decline in community vitality due to the declining birthrate and aging population; and the increasing burden of care and medical care due to the aging population.

Resolving such social issues is also in keeping with the direction set out by the UN in 2015 in its Sustainable Development Goals (SDGs).

The MS&AD Insurance Group will create shared value with society, and work to build a resilient and sustainable society.

Products and services that contribute to achieving Sustainable Development Goals (SDGs)

Sustainability Contest

ESG integration and sustainability approach

Impact of CSV Initiatives on society and our company

Priority Issues

Overview of Priority Issues

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HOME / Sustainability / Our Value Creation Approach

Symbiosis with global environment (Planetary Health)

Action on climate change

Improvement of sustainability of natural capital

Safe and secure society (Resilience)

Measures to address new risks occurring in line with social changes

Creation of a resilient and inclusive society (regional revitalization)

Loss prevention/mitigation through the utilization of data and AI

Happiness of diverse people (Well-being)

Adaptation to a society of healthy longevity

Implementing Activities and Dialog that Respect Human Rights

Improvement of employee engagement

Quality・Human resources・ERM

Quality that Earns the Trust of Society

Human Resource Strategy

Corporate Governance

ERM and Risk Management

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HOME / Sustainability / Our Value Creation Approach / Products and services that contribute to achieving Sustainable Development Goals (SDGs)

Products and services that contribute to achieving Sustainable Development Goals (SDGs)

The MS&AD Insurance Group provides products and services to support the industries required to realize a sustainable society. We are promoting creating shared values with society, including the discovery and prevention of risks. It is necessary to take integrated approaches to the 17 Sustainable Development Goals (SDGs) as the limited natural environment of the earth and social and economic issues closely related. The MS&AD Insurance Group analyzes our contributions to the sustainability of society and the impacts on our long-term growth from the areas of the Environmental (E), society (S), and corporate governance (G). Based on the three priority issues we have extracted, we are contributing to the achievement of the SDGs through risk consulting services, insurance and other services for safety and peace of mind from a multifaceted perspective centered on sustainability.

Products and services aimed at further contributing to the resolution of social issues reached about 59% of premiums written in the non-life insurance business in FY2022.

Items	Coverage	FY2021	FY2022
Products and services that contribute to achieving SDGs*1
＜Target products＞
Products and services that contribute to "Planetary Health"	Group Domestic + Other	about 64 %	about 59 %
Products and services that contribute to "Resilience"
Products and services that contribute to "Well-being"

(*1) Percentage of net premiums written
Symbiosis with global environment (Planetary Health)	Safe and secure society (Resilience)	Happiness of diverse people (Well-being)

Symbiosis with the global environment (Planetary Health)

[Major relevant SDGs]

Goal 6: Clean water and sanitation

Goal 7: Affordable and clean energy

Goal 11: Sustainable cities and communities

Goal 13: Climate action

Goal 14: Life below water

Goal 15: Life on land

(★) links are "in Japanese only"

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HOME / Sustainability / Our Value Creation Approach / Products and services that contribute to achieving Sustainable Development Goals (SDGs)

Products and Services	Outline	Contribution to solving	Details
social issues
Service to Support	Provision of all kinds of support in a one-stop package for	Helping companies to	Details
Decarbonization	businesses of any size in any industry, such as introductory	reduce emissions	MSI (★)
PDF
	seminars on decarbonization, support for calculating carbon
	emissions, and development of strategies for reducing
	emissions
Net-zero emissions	Commercial fire insurance endorsement for additional	Helping companies to	Details
Support Special Clause	installation costs that will lead to emission reduction in the	reduce carbon emissions
for corporate fire	course of repair of damaged properties
insurance
Endorsement for cost of	Coverage for costs incurred when replacing an insured	Helping to create a net-	Details
replacement with electric	gasoline-powered vehicle with an EV, etc. due to an accident	zero society
vehicles, etc.
Provision of Service for	Provision of a new service for visualizing CO2 emissions	Helping to create a net-	Details
calculating and visualizing	reduction through safe driving, using a unique algorithm,	zero society
GHG emissions	targeting policyholders of Telematics Automobile Insurance
(Telematics Automobile
Insurance)
Comprehensive coverage	Comprehensive coverage of risks faced by renewable energy	Promoting reduction of	Details
plan for mega-solar farm	producers	CO2 emissions (reducing
products		impact on the
		environment) with
		alternative energy
Imbalance risk	Coverage of losses sustained by renewable energy producers,	Helping to the promotion	Details
compensation insurance	etc. due to imbalance between their generation plans and	of the renewable energy
for renewable energy	actual amounts of generated energy as a result of climatic	business and realization
producers/aggregators	changes, generation equipment failure, etc., targeting	of decarbonization
	renewable energy producers
Insurance package for	Provision of "Insurance Package for PPA Business Operators"	Contributing to wide	Details
PPA business operators	to cover not only the risk of damage to power generation	development and
	facilities but also the risk of having to procure alternative	promotion of renewable
	sources of renewable energy and environmental value due to	energy business and
	such damage, with the aim of promoting spread of the "PPA	realization of
	model," which is being introduced as one of the renewable	decarbonization
	energy procurement methods

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HOME / Sustainability / Our Value Creation Approach / Products and services that contribute to achieving Sustainable Development Goals (SDGs)

	Service attached type of		Provision of the service attached type of Power Generation		Contributing to wide		Details
	Power Generation		Imbalance Fee Compensation Insurance covering deficit		development and
	Imbalance Fee		imbalance fees for solar power generation companies		promotion of renewable
	Compensation Insurance				energy business and
					realization of
					decarbonization
	Environmental Pollution		Contributing to realization of net-zero emissions through		Contributing to realization		Details
	Liability Insurance for		providing an insurance that covers the risk of damage related		of decarbonization
	CCS Operators		to CCS projects, for which demonstration experiments are
			progressing for commercialization
	J-Credit (Japan		Coverage of risks sustained by local governments in relation to		Helping to realization of		Details
	Greenhouse Gas Emission		program-based projects aimed at implementing		decarbonization
	Reduction/Removal		decarbonization activities utilizing the J-Credit scheme
	Certification) Scheme
	Participants Support
	Insurance (for local
	governments)
	Comprehensive offshore		Comprehensive coverage of risks faced by renewable energy		Promoting reduction of		Details
	wind power generation		producers		CO2 emissions (reducing
	system coverage				environmental burdens)
					with alternative energy
	Weather derivatives		A financial derivative that covers damage caused by extreme		Stabilizing company		Details
			weather.		earnings by avoiding and
			U.S. subsidiary, MSI Guaranteed Weather, is actively engaged		mitigating losses incurred
			in global sales of weather derivatives, with a focus on		by abnormal weather and
			Japanese companies operating overseas		weather instability.
					Contributing to
					sustainable business
					activities
	Weather index insurance		Development of a dedicated platform that enables customers		Stabilizing company		Details
	platform for farmers		to obtain online quotes in real time on weather index		earnings through
			insurance, and launch of the insurance to farmers in Australia.		avoidance and/or
					mitigation of losses
					incurred due to abnormal
					weather and weather
					instability.
					Contributing to
					sustainable business
					activities

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HOME / Sustainability / Our Value Creation Approach / Products and services that contribute to achieving Sustainable Development Goals (SDGs)

Sympathy Money	Covering expenses such as sympathy money incurred by PPA*	Helping to the promotion	Details
Insurance for payments to	business operators in cases where damage to their power	of the renewable energy
neighborhood victims	generation equipment as a result of natural disasters such as	business and realization
(PPA business operators)	typhoons have resulted in damage to the properties owned by	of decarbonization
	neighboring residents and companies, even when the
	operators are not held liable for compensation
	*Abbreviation of Power Purchase Agreement model
Climate change risk	Provision of services that support our clients in building a	Assessing and analyzing	Details
analysis service	climate change governance structure, performing scenario	climate change risks
	analysis, and developing a climate strategy in accordance with
	the TCFD's Final Recommendations through assessment and
	analysis of such risks of which companies need to be aware
LaRC flood risk analysis	Launch of Large-Scale Assessment of Flood Risks Due to	Assessing and analyzing	Details
service	Climate Change (LaRC-Flood®)" project in collaboration with	climate change risks
	the University of Tokyo, Shibaura Institute of Technology
	Realization of highly accurate estimation of inundation depth
	distributions based on the effects of climate change, with
	support from the New Energy and Industrial Technology
	Development Organization (NEDO), a national research and
	development agency
	Launch of the distributions made available free of charge as a
	global-scale flood hazard map, together with a new consulting
	service utilizing that hazard map, which enable[d][s] .
	quantitative impact assessments on a global basis and
	supports identification of physical risks in the event that
	climate change is actualized.
Renewal of our dedicated	Significant reduction of the effort required for customers to	Contributing to reducing	Details
Web page for	register for use through renewal of our dedicated Web page	environmental impact and
policyholders	for policyholders and step-by-step digitization of notifications,	improving customer
	which were previously sent out by postal mail. Promotion of	convenience through
	paperless initiatives in collaboration with customers.	paperless services
Eco insurance	A system that enables policyholders to view their policy	Improvement of	Details
policies/Web clauses	certificates and policy clauses on the websites	sustainability of natural
		capital

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HOME / Sustainability / Our Value Creation Approach / Products and services that contribute to achieving Sustainable Development Goals (SDGs)

Support for nature-	Support for conducting scoping of analysis targets, analyzing	Supporting	Details
related risk analysis in line	priority regions (including value chains), and dependencies	environmentally
with TNFD	and impacts, and for considering business risks/opportunities	conscious business
	and disclosing information based on the results thereof, in line	activities
	with the guidance of the Taskforce on Nature-Related
	Financial Disclosures (TNFD)
Basic evaluations of	Basic evaluation of exposure to water risks such as water	Supporting	Details
water-related risks	depletion, drought, flood and decline in water quality	environmentally
	(present/future) on individual production sites (domestic/	conscious business
	overseas)	activities
Biodiversity-conscious	Services that support companies' activities to preserve	Supporting	Details
land-use consulting	biodiversity and assess biodiversity risks in business activities	environmentally
		conscious business
		activities
Provision of a discount on	With the aim of supporting promotion of plastic resources	Supporting environment-	Details
premiums to businesses	recycling, provision of discounts on premiums for certain	conscious business
working on recycling of	types of liability insurance products to companies working on	activities
plastic resources	such recycling with discounts on premiums for certain types of
	liability insurance products
Supporting reduction of	Installation of an alert function in dedicated dashcams for	Improvement of	Details
roadkill incidents	automobile insurance in order to prevent the occurrence of	sustainability of natural
	automobile accidents rank high as a cause of death for rare	capital
	species of animals (roadkill) and donations based on sales to
	organizations, including those working on protection of rare
	animals and reduction of roadkill incidents
Endorsement for	Coverage of costs of such actions as preservation and	Helping to preservation	Details
Compensation of	restoration of damage to the natural environment, which	and restoration of natural
Additional Costs for	vessel operators voluntarily carry out at times of marine	capital and biodiversity
Responses to Marine	accidents
Contamination

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HOME / Sustainability / Our Value Creation Approach / Products and services that contribute to achieving Sustainable Development Goals (SDGs)

	Endorsement for		Coverage of a wide range of risks including liability for		Helping to preservation		Details
	Extended Compensation		damages and expenses of contamination clean-up arising out		and restoration of natural
	for Contamination		of unexpected and sudden outflow of contaminants from		capital and biodiversity
	Damage		various facilities, such as a factory
	Providing coverage of		Coverage of expenses necessary for reforestation of forests		Improvement of		Details
	reforestation expenses,		damaged by fire, etc., which have been outside the coverage		sustainability of natural
	etc.		of conventional forest fire insurance		capital
	Corporate Green Spaces		Provision of insurance products/related services that package		Improvement of		Details
	Support Package		"Surugadai Green Space Inspection Guide," "Corporate Green		sustainability of natural
			Space Consulting Service," and "Corporate Green Space		capital
			Insurance" to support corporate green space initiatives in
			consideration of natural capital and biodiversity
	Liability insurance for		Ensuring safety and security through coverage of damage		Improvement of		Details
	"Noyaki (Open Burning)"		related to the spread of fire to other property for Noyaki (open		sustainability of natural
			burning), which is carried out in Aso for the purposes of		capital
			maintaining and restoring grasslands, conserving biodiversity,
			storing carbon, and recharging downstream water sources
	Products recall expenses		When a food company (the insured) recalls food due to		Helping to stop food		Details
	insurance for food service		mislabeling expiry dates, Kuradashi reduces food loss by		waste issue
	businesses - Shoku-eco		purchasing the food (those without any issues other than
			mislabeling). Because of this, disposal costs (or insurance
			payouts) are reduced meaning insurance premiums can be
			offered at a 10% discount
	Electronic policy		A system enabling customers to complete policy procedures		Helping to reduce		Details
	procedures		on-screen via their smartphones, PC or tablet devices, and		environmental impact by
			enabling agents to complete policy/change procedures on		going paperless
			their own PC or tablet devices
	Eco-mark automobile		Automobile insurance with Eco-Mark certification through		Helping to environmental		MSI (★)
	insurance		promotion of Eco-insurance policy and web policy clauses,		conservation and		ADI (★)
			provision of information for safe driving, and initiatives to		reducing the impact on
			reduce impact on the environment, such as encouraging the		the environment
			use of recycled automobile parts

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HOME / Sustainability / Our Value Creation Approach / Products and services that contribute to achieving Sustainable Development Goals (SDGs)

Policyholder app (Mitsui	The services of Mitsui Direct General Insurance are bundled in	Helping to paperless	MD (★)
Direct non-life insurance	one app so that the "Strong and Tender" concept can be	procedure as well as
app)	delivered to customers. Various inquiries and procedures for	convenience by allowing
	automobile insurance and special benefits and coupons	for inquiries regarding
	become available. The "Smart Renewal" feature was launched	contract details and the
	in October 2020, making it easier for policyholders to renew	checking of progress in
	their policies	the case of an accident,
		providing new
		applications and
		continuing procedures,
		etc.
Remote application	A completely paperless service from providing information	Helping to prevent the	MSI Aioi Life (★)
procedures for a	through video, to responding to inquiries and the application	spread of infectious
PDF
paperless, contactless	process	diseases through non-
service		contact, reducing the
		impact on the
		environment by going
		paperless, and improving
		customer convenience.
Insurance to support	When the facilities of a green power company contracted by	Helping to create a net-	MSI (★)
PDF
stable supply of green	the issuer are shut down because of a disaster or other such	zero society.
power certificates	event, the additional costs that issuer owe to procure green
	energy value from other power companies, etc. can be
	covered
Automobile insurance "EV	Coverage for damages to electric vehicle charging equipment	Helping to create a net-	MSI (★)
PDF
charging equipment	and alternative charging costs incurred while the damaged	zero society
damage coverage special	equipment cannot be used
clause"
Endorsement for rental	Coverage of rental car cost incurred when an insured vehicle	Helping to create a net-	MSI (★)
PDF
car costs at times of	is regarded as inoperative due to halted operation of nearby	zero society
suspended operation of	hydrogen stations resulting from such coincidental reasons as
hydrogen stations, under	"accident," "failure," "operator's bankruptcy" and "operator's
Automobile insurance	withdrawal from business"
Net-zero emissions	One-stop support for corporate net-zero initiatives at all	Contributing to create a	InterRisk (★)
support	stages, including introduction, strategy, and reduction, in	net-zero society
	collaboration with external organizations regardless of
	industry size

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HOME / Sustainability / Our Value Creation Approach / Products and services that contribute to achieving Sustainable Development Goals (SDGs)

Renewable energy	Consulting services regarding assessment of business risks	Supporting stable	InterRisk (★)
support service	associated with renewable energy (solar power, wind power,	development of
	biomass, etc.), as well as energy conservation, improved	renewable energy
	comfort in the working environment, and reduced energy	businesses
	costs
Service for accepting	A service to enable customers to carry out account-related	Helping to reduce	MSI/ADI (★)
PDF
online handling of transfer	procedures via the Internet, such as registration and changing	environmental impact by
accounts	of insurance premium transfer accounts through smartphone	going paperless
	reading of a QR code and selection of a preferred financial
	institution on a dedicated site for account registration
Mobile application-based	A premium payment service as a replacement for direct	Helping to reduce	MSI/ADI (★)
PDF
payment service	collection, enabling customers to pay premiums through	environmental impact by
	smartphone reading of a QR code and selection of a	going paperless
	contracted payment service from various listed services

Safe and secure society (Resilience)

[Major relevant SDGs]

Goal 1: No poverty

Goal 2: Zero hunger

Goal 3: Good health and well-being for all

Goal 8: Decent work and economic growth

Goal 9: Industry, Innovation and Infrastructure

Goal 11: Sustainable cities and communities

(★) links are "in Japanese only"

Products and Services	Outline	Contribution to solving	Details
social issues
Cybersecurity Insurance	Comprehensive coverage for risks such as those brought	Helping to the	Details
	about by cyber-attacks. A line-up of various services,	stabilization of corporate
	including risk assessment service and emergency service in	management and
	the event of accidents, which contribute to prevention and	supporting social
	minimization of losses, and to prompt restoration of services	development

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