Tokio Marine : Our Climate Strategy & TCFD

Tokio Marine Insights:

Our Climate Strategy & TCFD

January 21, 2021

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Table of Contents

1. Climate Strategy

1. Promotion of Climate-Related Financial Disclosures in Accordance with TCFD Recommendations

1. ERM and Climate-Related Risk Management IV. Reference

Copyright (c) 2021 Tokio Marine Holdings, Inc.

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I. Climate Strategy

II. TCFD Disclosure

III. ERM and Climate Risks

IV. Reference

Our Sustainability

Providing solution for various social issues through business activities results in sustainable growth for the company

Our initiatives on sustainability matches our business purpose

Our unchanging

purpose

Protect our customers and society in times of need by delivering safety and security

Making society		Increase safety and		Create safe and secure		Elimination of		Create society based
resilient to natural					on health and
	security in driving		network society		poverty in society
disasters					longevity

• Use accumulated knowledge and experience as an insurance company to resolve social issues of each era and each region
• Continue to solve various social issues through business activities and contribute to creation of a sustainable society

Copyright (c) 2021 Tokio Marine Holdings, Inc.

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I. Climate Strategy

II. TCFD Disclosure

III. ERM and Climate Risks

IV. Reference

Impact of Climate Change and Our Initiatives

Especially on climate change, squarely face the issue as an insurance company,

an institutional investor and a global leader, and actively engage in creation of environment and society where people may live in comfort

Global climate change projections

• By 2040-2050, global average
  temperature is expected to rise by about 2°C above pre-industrial levels (already increased by about 1°C)
• It may rise by up to 4.8°C by the end of 21st century

Projection of change in temperature by the end of 21st century (average for 2081-2100)*1

*1: Average of RCP8.5 scenario projections using multiple climate models to calculate change from average temperature between 1986-2005 (source: IPCC fifth assessment report)

Copyright (c) 2021 Tokio Marine Holdings, Inc.

Negative impact of climate change

• Loss of land from rising sea level
• Intensified natural catastrophes
• Increased agricultural damage from droughts, etc.
• Destruction/change in ecosystems/biodiversity
• Increased hunger/communicable diseases
  ...

Social changes due to climate change

• National resilience
• Growing awareness towards the environment and disaster prevention
• Transition to decarbonized society ...

Adopted the Paris Agreement at

COP21 setting out the 2°C

UN General Assembly adopted the 2030 Agenda for Sustainable Development

International strategy for disaster prevention was discussed at the UN World Conference on Disaster Risk Reduction

Our initiatives

• Address climate change from early on*2
• Voluntarily implement measures against climate change from 3 standpoints to support transition to decarbonized society

As an insurance company

As an institutional investor

As a global leader

• Announced our policies and initiatives on climate change and accelerated the initiatives

[Posted on our website (September 28, 2020)]

"Tokio Marine: Our Climate Strategy"

https://www.tokiomarinehd.com/en/sustainability/news_publication/

*2: For example, Tokyo Marine & Nichido announced its Comprehensive Program on Global Warming (November 12, 2007)

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I. Climate Strategy

II. TCFD Disclosure

III. ERM and Climate Risks

IV. Reference

Climate Strategy (as an insurance company)

Protect customers and society in their times of need and exercise underwriting practices that will enable us to contribute to a decarbonized society towards the achievement of the 2°C target of the Paris Agreement

Efforts as an insurance company

• Support of victims through insurance

• Enhance support for victims of disaster (Total 22,000 employees mobilized to affected areas in Japan in fiscal 2019)
• Digitalize whole insurance payment process to complete insurance claim procedure online
• Earthquake index insurance (first in Japan)
• Hurricane index insurance (first in US)

• Quick insurance payment, etc.

On-site	Utilize satellite images for
damage assessment	damage assessment

Copyright (c) 2021 Tokio Marine Holdings, Inc.

• Contribute to creation of a disaster resilient society
• Sophisticated risk survey and disaster reduction measures using drones
• TRC to provide disaster education and training services
• Support municipal and corporate BCP preparation
• Personalized video sent from Mobile Agent (app) to prepare for disaster
• Useful information and alert on disaster prevention/mitigation
• NADIAct: Enterprise Disaster Prevention and Mitigation Alert System
• Support early business reopening with advanced cleaning technology of a disaster recovery specialist BELFOR

• Support disaster prevention & reduction and early recovery & reconstruction

• Consider creating a sustainable fire insurance

Ground height analysis	NADIAct: Enterprise Disaster
using a drone	Prevention and Mitigation
Alert System

• Contribute to sustainable global environment
• Actively offer insurance and services to clean energy business
• Encourage wider use of environmentally- friendly drones
• M&A strategy incorporating ESG perspectives (GCube)
• In principle, not provide new insurance underwriting capacities to coal-fired power generation projects

• Contribute to transition to decarbonized society to control global warming

Renewable				CAGR 6%
energy	Renewable energy			73%
market*				51%
(Ratio to global		18%	27%
power supply)	2005	2020		2035	2050
		(projection)	(projection)	(projection)

*Source: McKinsey

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I. Climate Strategy

II. TCFD Disclosure

III. ERM and Climate Risks

IV. Reference

Climate Strategy (as an institutional investor/global leader）

• Support transition to decarbonized society as an institutional investor in accordance with the ESG investment policy
• As a global leader, voluntarily implement measures against climate change through participation in various initiatives and constructive dialogue and collaboration with the society

Efforts as an Institutional Investor

• Support transition to decarbonized society
• Tokio Marine & Nichido and Tokio Marine Asset Management are signatories of the United Nations-supported Principles for Responsible Investment (PRI)
• Promotion of ESG investment (ESG engagement, investment decisions with consideration to ESG)
• Origination of fund for supporting clean energy business, investment in green bonds
• In principle, not provide new financing for coal-fired power generation projects

Performance of	Amount committed: Approx. ¥45 bn
Renewable Energy
Funds	Units installed:	42
(As of March 31, 2020）

Commitment as a global leader

• Join international initiatives, etc.
• Lead discussion on "Climate Change and Emerging Environmental Topics" as joint-chair of Geneva Association WG
• Support promotion of disaster insurance in Asia-Pacific at APEC "Disaster Risk Finance and Insurance Solutions" WG
• As a founding member of TCFD, lead TCFD discussions in Japan and overseas to promote and enhance information disclosure
• Initiatives to realize carbon-neutral

• Achieved carbon-neutral for seven consecutive years

 Total economic value created by mangrove planting project started nearly two decades ago is about ¥118.5 billion (as of end of March 2019)

 Mangrove-based Value Co-Creation100-Year Declaration

Copyright (c) 2021 Tokio Marine Holdings, Inc.

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I. Climate Strategy

II. TCFD Disclosure

III. ERM and Climate Risks

IV. Reference

Purpose of TCFD Disclosure

To resolve climate related issues and achieve Paris Agreement target, companies are required to identify climate-related risks/opportunities and prove resilience of their strategy with scenario analysis to promote informed investment

• Establishment of the world's common goal

• COP21: The Paris Agreement was adopted at the 21st session of the Conference of the Parties to the United Nations Framework Convention on Climate Change held in November to December 2015
• Paris Agreement: Framework for reducing greenhouse gas emission from 2020 to replace the Kyoto Protocol (effective as of November 4, 2016)
• 1. World's common long-termgoal: Control average global temperature increase to well below 2°C above pre-industrial revolution levels (pursuing efforts to limit the increase to 1.5 degrees)
  2. Net zero emissions: To achieve carbon-neutral in the second half of the century, seek to peak greenhouse gas emissions as soon as possible

• Financial Stability Board (FSB) established Task Force on Climate-related Financial Disclosures (TCFD)

• G20 requirement: In April 2015, G20 Finance Ministers and Central Bank Governors asked the FSB "to convene public- and private- sector participants to review how the financial sector can take account of climate-related issues"
• Establishment of TCFD: FSB announced establishment of TCFD in December 2015 (Tokio Marine Group was an original member)
• TCFD recommendations: In June 2017, TCFD released final report on a framework for voluntary disclosure that supports informed investment decisions (TCFD recommendations)
• Features of the recommendations: Organizations should understand the climate-related risks and opportunities, and describe the resilience of the organization's strategy using scenario analysis

Copyright (c) 2021 Tokio Marine Holdings, Inc.

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I. Climate Strategy

II. TCFD Disclosure

III. ERM and Climate Risks

IV. Reference

Understanding of Climate-Related Risks and Opportunities under TCFD

It is important for organizations to understand the transition/physical risks and opportunities and assess their impact on strategies

Investors need to understand how climate- related risks and opportunities are likely to impact on the cash flow, assets and liabilities of investment targets to make financial decisions

		Example of Risks
Risks	•	Policy and legal (GHG emissions pricing, enhanced emissions-
	reporting, regulation of products/services, increased litigation)
•	Technology (Substitution with low-carbon options, unsuccessful
Transition		investment in new technologies, costs to transition to new
	technology)
	•	Market (Changing consumer behavior, uncertainty in market signals,
		increased cost of raw materials)
	•	Reputation (Stigmatization of a certain sector, increased
		stakeholder concern)
Physical Risks	•	Increased extreme weather events
•	Rising sea levels
	•	Changes in precipitation patterns
	•	Rising average temperature

Copyright (c) 2021 Tokio Marine Holdings, Inc.

Example of Opportunities

• Resource efficiency
  (Use of efficient modes of transport, reduced operating costs through use of more efficient production and distribution process or use of smart buildings, increase of productivity/tangible asset value, improved employee health management)
• Energy source
  (Reduced operational costs through use of lower carbon emission sources of energy, reduced exposure to energy price volatility)
• Products and Services
  (Shift in consumer preferences, secure resilience to policy/regulatory changes)
• Markets (Increased demand for products/services, access to new markets)
• Resilience (Resource substitutes/diversification, increased reliability of supply chain)

Source: TCFD Final Report

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I. Climate Strategy

II. TCFD Disclosure

III. ERM and Climate Risks

IV. Reference

TCFD disclosure for an insurance company

Insurance companies are especially required to enhance disclosure on risk management

Recommendation and Guidance (for All Sectors)

Governance

• Organization's governance around climate-related risks and opportunities

Strategy

• Potential impacts of climate-related risks and opportunities on the organization's business, strategy, and financial planning

Risk Management

• How the organization identifies, assesses, and manages climate- related risks

Metrics/Target

• Metrics and targets used to assess and manage relevant climate- related risks and opportunities

What are the climate-related risks for the insurance sector?

• Three types of climate-related risks identified by financial regulators (UK example)
• Physical risks
  Direct impacts such as damage to property, and indirect impacts such as disruption of global supply chains or resource scarcity arising from weather- related events such as floods, storms, etc.
• Liability risks
  Risks arising from parties who have suffered loss and damage from climate change, and then seek to recover losses from others who they believe may have liability
• Transition risks
  Financial risks arising from value fluctuation of carbon-intensive financial assets, through the transition to a lower-carbon society

Supplemental Guidance for Insurance Companies

Strategy

• How climate-related risks and opportunities influence client or broker selection
• Development status of specific climate-related products
• Risk tolerance under a 2°C scenario as well as a greater than 2°C physical scenario

Risk Management

• Describe the physical risks from increasing frequencies and intensities of weather-related perils, reduction in insurable value resulting from transition to low-carbon economy, and increase in liability risks by geography and business division
• Risk models used to manage climate-related risks, range of climate- related events considered

Metrics

• Aggregated risk exposure to weather-related catastrophes of their property insurance

What are the expected risk scenarios?

• Scenario analysis

A process for identifying and assessing the potential implications of a range of plausible future events based on hypothesis. It is deemed to be useful for businesses to explore and develop an understanding of how various physical and transition risks caused by climate change may affect its businesses over time

• Example of transition risk scenario

• IEA World Economic Outlook 450ppm ("2°C scenario")
• IEA has also released 6°C, 4°C, and 2.6°C scenarios
• Nationally determined contributions (NDCs) to refer to a 2°C pathway

• Example of physical risk scenario
  - IPCC RCP2.6 ("2°C scenario")
  - IPCC has also released RCP8.5 (high GHG emissions), 6.0 (medium-high GHG

emissions), and 4.5 (medium GHG emissions) scenarios

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I. Climate Strategy

II. TCFD Disclosure

III. ERM and Climate Risks

IV. Reference

Developments after the Release of TCFD Recommendations

• Various overseas governments, financial regulators and institutional investors took action after the release of TCFD Recommendations
• In Japan, the government, investors and disclosing companies cooperated to promote the TCFD Consortium initiative

Overseas Status

• EU: Discussions based on the Action Plan on Financing Sustainable Growth (March 2018)
• UK: Prudential Regulation Authority (PRA) issued Supervisory Statement (SS3/19) Enhancing banks' and insurers' approaches to managing the financial risks from climate change (April 2019)
• France: Article 173 of the French Energy Transition Law set forth climate-related disclosure (August 2015)
• US: Fed announced intervention on climate change (November 2019)

Network for Greening the Financial System

• Voluntary network of central banks and financial supervisors established in December 2017 to enhance resilience of financial systems under the awareness that climate-related risks may be a source of financial risks
• A Call for Action: Climate change as a source of financial risk (April 2019)

Requests from Institutional Investors

BlackRock CEO Larry Fink's Open Letter to CEOs (January 2020)

"A Fundamental Reshaping of Finance" (excerpt)

• Initiatives to place sustainability at the center of our investment approach
• Releasing climate-related disclosure aligned with TCFD Recommendations
• Include business plan for operating under a scenario where the Paris Agreement's goal is fully realized, as expressed by the TCFD guidelines

Copyright (c) 2021 Tokio Marine Holdings, Inc.

Japan: TCFD Consortium

• Contributed to establishment/operation of TCFD Consortium as a founding member (from May 2019)
• Green Investment Guidance (October 2019)
• TCFD Guidance 2.0 (July 2020)

Source: TCFD Consortium

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I. Climate Strategy

II. TCFD Disclosure

III. ERM and Climate Risks

IV. Reference

Our Initiatives to Promote TCFD Disclosure

• Supporting promotion of TCFD disclosures by engaging in discussions and exchanging opinions with various organizations/industries
• Contribute to the transition to decarbonized society by enhancing climate-related disclosures reflecting the market

Task force on Climate-related

Financial Disclosures

• Contributed to the release of TCFD Recommendations (June 2017) as the original member
• Supported TCFD Recommendations with Integrated Report (August 2017)
• Promoted initiatives towards climate-related disclosure aligned with TCFD Recommendations as a signatory

United Nations Environment Programme Finance Initiative (UNEP FI)

• Promoted climate-change initiatives as a founding signatory of the Principles for Sustainable Insurance (PSI) spearheaded by the United Nations Environment Programme Finance Initiative (UNEP FI)
• Participated in PSI TCFD Insurer Pilot Working Group (from 2018) to promote climate-related disclosure aligned with TCFD recommendations in the insurance industry

The Geneva Association

• Leading insurance industry initiatives on climate change as Joint-Chairman of the "Climate Change and Emerging Environmental Topics" working group of the Geneva Association (from 2008)
• Released "Kyoto Climate Risk Statement" (2009/2014)
• Promoted initiatives to incorporate climate change into business strategy and risk management in the insurance industry and discussed actions on TCFD recommendations

Copyright (c) 2021 Tokio Marine Holdings, Inc.

Our Climate-related

Disclosures

• TCFD-alignedclimate-related disclosure (from fiscal 2017)
• Considering enhancement of contents reflecting latest trends through dialogue with international organizations, government, regulatory authorities and institutional investors
• Released "Tokio Marine: Our Climate Strategy" (September 2020)

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I. Climate Strategy

II. TCFD Disclosure

III. ERM and Climate Risks

IV. Reference

Initiatives in Japan and Overseas (latest actions)

• Contribute to formulating methodology for climate-related disclosure in accordance with TCFD recommendations through initiatives in Japan and overseas
• Support transition to decarbonized society through promotion of climate-related disclosure aligned with TCFD recommendations by businesses and insurance industry in Japan and overseas along with enhancement of our climate-related disclosure

United Nations Environment Programme

Finance Initiative (UNEP FI)

PSI TCFD Insurer Pilot Working Group

TCFD Consortium TCFD Guidance 2.0

Source: UNEPFI

• Review/development of methodology and analysis tools on climate-related disclosure for the insurance industry (from 2018)
• Contributed to "Insuring the climate transition" report (January 2021) promoting climate-related disclosure in the insurance industry
• Performed scenario analysis for physical/transition risks using IPCC/IEA scenarios (also trying to evaluate potential litigation risk analysis)

 First step towards promoting climate-related disclosure by the whole insurance industry

 Contributed to establishment and release of "Guidance 2.0" as the founding member of TCFD Consortium

 Recommended disclosure for non-life insurance:

• Potential impacts of climate change

• Impacts that may be brought to climate change

• Enhancing risk management and reducing risks

• Opportunities brought by climate change

Source: TCFD Consortium	 We were included in the Case
Examples under "opportunities
	brought by climate change"
	(Strategy section)

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I. Climate Strategy

II. TCFD Disclosure

III. ERM and Climate Risks

IV. Reference

Group Risk Management led by Enterprise Risk Management (ERM)

Risk management encompasses wide range of risks including climate-related risks to comprehensively grasp both qualitative and quantitative impacts on business

• Comprehensively grasp risks by both qualitative and quantitative approaches not limited to traditional risk management
• Business units execute strategies with capital allocation that incorporates risk aspects

Risk Appetite Framework

Risk Appetite Statement

(Group-wide qualitative risk-taking policy)

Risk Strategy

(Risk appetite by risk category/business unit)

Formulation of business plans based on risk appetite and assessment from an overall Group perspective

Determination and execution of capital allocation plan based on the business plans

Quantitative

Risk	Verification of	Monitoring of
capital/fund
Management	risk capital
adequacy

Risk quantification

Stress tests

Qualitative

Risk

Management

Identifying	Identifying	PDCA control
and evaluating	of material
emerging risks
material risks	risks

Review

and

Improve

Copyright (c) 2021 Tokio Marine Holdings, Inc.

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I. Climate Strategy

II. TCFD Disclosure

III. ERM and Climate Risks

IV. Reference

Qualitative Risk Management

Comprehensively identify risks including emerging risks and identify natural catastrophes such as major wind and flood disasters as material risks

Determination and execution of capital allocation plan

based on the business plans

	Quantitative Risk		Verification of
	Management				Monitoring of
		capital/fund
			adequacy			risk capital
	Risk quantification	Stress tests
Qualitative Risk Management
	Identifying		Identifying and		PDCA control of
		evaluating
	emerging risks			material risks
		material risks

Identifying emerging risks and determining material risks

• Comprehensively identify risks including emerging risks that appear or significantly intensify as a result of environmental changes (including climate change)
• Natural catastrophes such as major wind and flood disasters shall be identified as material risks subject to verification of capital adequacy through quantitative risk management process (in the next slide), and preventive control measures before the risk takes place as well as the counter measures after the risk takes place are formulated and controlled by the PDCA cycle

Emerging risks

New risks which have previously not been acknowledged as risks or risks whose severity has significantly increased, as a result of changes in environment and other factors

	Candidates for "emerging risks" to Group
				Screening
	Emerging risks identified		Emerging risks for		Risks newly identified
	in the previous year, or		business units or major		as candidates for				Screening based on impact, state of readiness, and the
	its candidates		Group companies		emerging risks
							increase of risk
							"Emerging risks" to the
	Material risks						Group
	Risks that will have a major impact on						Comprehensively identify risks
	financial soundness, business continuity, etc.
	Candidates for "material risks" to the Group
				Identify risks by matrix evaluation
	Group's material risks from		Group's emerging risks that
	the previous year			have major impact				Identify risks by the matrix evaluation of
											"Scale of damage" × "Frequency and possibility"

"Material risks" to the Group

Identify 11 risks including natural catastrophes such as major wind and flood disasters

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I. Climate Strategy

II. TCFD Disclosure

III. ERM and Climate Risks

IV. Reference

Quantitative Risk Management

Enhancement of risk models used for measuring the risk amount and stress tests

Determination and execution of capital allocation plan

based on the business plans

	Quantitative Risk	Verification of
	Management		Monitoring of
	capital/fund
			adequacy		risk capital
			Stress tests
		Risk quantification
Qualitative Risk Management
	Identifying	Identifying and	PDCA control of
	evaluating
	emerging risks	material risks
	material risks

Measuring risk amount(natural catastrophe risk model)

Japan	In-house risk models developed based on engineering theories and
latest knowledge related to natural catastrophes
Overseas	External vendor's models

Enhancement of risk models for physical risks

• Acquired latest knowledge through cooperation with Group companies that have expertise including Tokio Marine & Nichido Risk Consulting, Tokio Marine Research Institute, Natural Catastrophe R&D Team of Risk Management Department based in Atlanta, Georgia, and external experts to enhance in-house models (Japan) and review and evaluate the vendor's models (external) for reflecting the recent occurrence of natural catastrophes to the models

Natural catastrophe risks stress tests and enhancement

• Stress tests are conducted for material risks which have major economic loss in order to validate capital adequacy and funds liquidity
• Performed for severe cases such as huge natural catastrophes which are infrequent but will have massive impact
• Compared with stress tests disclosed by US and European peers, regulators and central banks, etc., to confirm sufficient stress is applied
• On-goingupdate of scenarios by acquiring latest knowledge including on

climate change	15

I. Climate Strategy

II. TCFD Disclosure

III. ERM and Climate Risks

IV. Reference

Acquirement of Climate-Related Risk Knowledge

Continue to enhance knowledge and implement appropriate enhancement of climate-related risk management

Determination and execution of capital allocation plan

based on the business plans

	Quantitative Risk	Verification of
	Management		Monitoring of
	capital/fund
		adequacy		risk capital
	Risk quantification	Stress tests
Qualitative Risk Management
		Identifying and
	Identifying	PDCA control of
	evaluating
	emerging risks	material risks
	material risks

Knowledge that supports the above

Acquirement of climate-related risk knowledge

• Acquire latest knowledge on natural catastrophes including on climate- related risks through cooperation with Group specialists and external experts and report to management
• Continue to enhance knowledge on climate-related risks by participation in the United Nations Environment Programme, Finance Initiative (UNEP FI) TCFD Insurer Pilot Working Group and the Geneva Association's Climate Change and Emerging Environmental Topics Working Group, etc.

Grasping the impacts of physical risks

• Tokio Marine Research Institute focuses on the impact of climate change on physical risks through evaluation and calculation of loss impact by
  change in typhoon risks under future climate (IPCC RCP4.5 and RCP 8.5 scenarios) and flooding risks with increased precipitation (under 2°C and 4°C temperature rise)

Measures against transition risks for decarbonized society

• Identify exposure to transition risks (underwriting/investments and lending) and enhance products development framework
• Non-lifeinsurance businesses tend to have relatively short-term contracts, enabling agile and flexible response to changes

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Reference

Copyright (c) 2021 Tokio Marine Holdings, Inc.

17

Group Management Framework

Execute proactive risk management centering on ERM to maintain soundness and sustained profit growth

Sustainable profit growth

Domestic non-life insurance business

• Sustainable growth as the Group core business
• Change our portfolio by sales expansion of specialty insurance

Domestic life insurance business

• Expand corporate value based on the economic value as a growth driver contributing to the long-term profit for the Group
• Increase in protection-type products

International insurance business

• Realize high organic growth and implement new business investment as a growth driver of the Group

The Group total

• Generate further synergy effect
• Appropriate control of business expenses

Generate profits

Enterprise

Risk

Management

（ERM）

Efficient deployment of capital

Invest for growth

• Invest in new business with diversification effects
• Prior investment to establish future profit base（new products/new technology）

Risk reduction/control

• Continuing sales of business-related equities, control of the risk of nat-cat losses and interest rates

Shareholder return

• Raise level of shareholder dividend
• Adjustment to the appropriate level of capital via flexible share buybacks, etc.

Strategic capital allocation

Profit growth

Enhancement of	Maintain
shareholder return	financial soundness

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18

ESG (Sustainable Enhancement of Corporate Value) - Promoting ESG -

Participate in various international initiatives and conduct surveys, researches and proposals in order to solving social issues. Also, contribute to achieve SDGs by solving social issues utilizing our expertise in insurance and risk consulting

Initiatives Tokio Marine Group is participating in

UN Global Compact

• Expressed continuous support since becoming a signatory in 2005
• Participated in "Disaster Risk Reduction Working Group", "Reporting Study Group", etc. in FY2019

Principles for Responsible Investment

• In Tokio Marine Group, Tokio Marine & Nichido and Tokio Marine Asset Management became signatories to promote responsible and sustainable investment

United Nations Environment Programme

Finance Initiative (UNEP FI)

• Participating as the Board Member for Asia of the UNEP FI Insurance Commission
• Lead discussion on disaster risk finance program at APEC "Disaster Risk Finance and Insurance Solutions" WG

Principles for Sustainable Insurance

• Became a signatory in 2012 as a drafting committee member. Joined the PSI TCFD Insurer Pilot Working Group in FY2018 to promote the creation of a framework for climate-related information disclosure in line with TCFD recommendations

Principles For		Japan Sustainable	UNISDR Private	The Geneva
Financial Action for	IDF	Sector Alliance for	ClimateWise
Investment Forum
Association
the 21st century		Disaster Resilient
		Societies

Asia-Pacific	CDP	Task Force on Climate	Eco First	COOL CHOICE	30％ Club Japan
Financial Forum	- related Financial
		Disclosures

Copyright (c) 2021 Tokio Marine Holdings, Inc.	19

ESG (Sustainable Enhancement of Corporate Value)

- ESG × SDGs, Promotion Structure -

ESG Category

E

S

G

Relevant Sustainable Development Goals

Initiative Theme

Promote environmental management

●

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Preserve biodiversity

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Promote development of clean energy

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Provide environmental awareness

●

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Make society resilient to natural disasters

●

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Create society based on health and

●

●

●

longevity

Respond to technological progress and

●

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●

●

changes in automotive lifestyle

Address the increase in foreign visitors to

●

●

Japan

Eliminate poverty in socity

●

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Realize an inclusive society

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Develop industrial foundations

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Increase employee motivation

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Enhance corporate governance

●

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Implement internal controls

●

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Practice risk management

●

●

●

Sustainability Promotion Structure

For details, refer on P81, P84-85 in Integrated Report 2020

Copyright (c) 2021 Tokio Marine Holdings, Inc.	20

TCFD Recommendations/Framework

Scope includes all issuers of stocks and bonds. Includes public and private pension funds and foundations as well as corporations

	Governance	Strategy	Risk Management	Metrics and Targets
	Disclose the organization's	Disclose the actual and potential	Disclose how the organization	Disclose the metrics and targets
	governance around climate-	impacts of climate-related risks	identifies, assesses, and manages	used to assess and manage
	related risks and opportunities	and opportunities on the	climate-related risks	relevant climate-related risks and
		organization's businesses,		opportunities
		strategy, and financial planning
	Recommended Disclosures	Recommended Disclosures	Recommended Disclosures	Recommended Disclosures
	a) Describe the board's oversight	a) Describe the climate-related	a) Describe the organization's	a) Disclose the metrics used by
	of climate-related risks and	risks and opportunities the	processes for identifying and	the organization to assess
	opportunities	organization has identified over	assessing climate-related risks	climate-related risks and
		the short, medium, and long		opportunities in line with its
		term		strategy and risk management
				process
	b) Describe management's role	b) Describe the impact of	b) Describe the organization's	b) Describe Scope 1, Scope 2,
	in assessing and managing	climate-related risks and	processes for managing climate-	and, if appropriate, Scope 3
	climate-related risks and	opportunities on the	related risks	greenhouse gas (GHG)
	opportunities	organization's businesses,		emissions, and the related risks
		strategy, and financial planning
		c) Describe the resilience of the	c) Describe how processes for	c) Disclose the targets used by
		organization's strategy, taking	identifying, assessing, and	the organization to manage
		into consideration different	managing climate-related risks	climate-related risks and
		climate-related scenarios,	are integrated into the	opportunities and performance
		including a 2°C or lower scenario	organization's overall risk	against the targets
			management
Copyright (c) 2021 Tokio Marine Holdings, Inc.		Source: TCFD Final Report	21

MEMO

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Disclaimer

These presentation materials include business projections and forecasts relating to expected financial and operating results of Tokio Marine Holdings and certain of its affiliates in current and future periods. All such forward looking information is based on information and assumptions available to Tokio Marine Holdings when the materials were prepared and is subject to a range of inherent risks and uncertainties. Actual results may vary materially from those estimated, anticipated, expected or projected in the accompanying materials and no assurances can be given that any such forward looking information will prove to have been accurate. Investors are cautioned not to place undue reliance on forward looking statements in these materials. Tokio Marine Holdings undertakes no obligation to update or revise any of this forward looking information, whether as a result of new information, recent or future developments, or otherwise.

These presentation materials do not constitute an offering of securities in any jurisdiction. To the extent distribution of these presentation materials or the information included herein is restricted by law, persons receiving these materials must inform themselves of and observe any such restrictions.

For further information...

Investor Relations Group, Corporate Planning Dept.

Tokio Marine Holdings, Inc.

URL : www.tokiomarinehd.com/en/inquiry/

TEL : [phone]

20210121

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