Tokio Marine : achieved "Carbon Neutral" in Fiscal 2020 (981KB)PDF

August 26, 2021

Tokio Marine Holdings, Inc.

Tokio Marine Group achieved "Carbon Neutral" in Fiscal 2020

Tokio Marine Holdings, Inc. (President and Group CEO: Satoru Komiya, hereinafter "TMHD") achieved "carbon neutral*1" in the Group's overall business activities as of the end of fiscal 2020 for eight consecutive years.

A group subsidiary Tokio Marine & Nichido Fire Insurance Co., Ltd. (hereinafter "TMNF") has been "carbon neutral" in its domestic business operations since fiscal 2009. As a significant step forward, Tokio Marine Group as a whole achieved "carbon neutral" in its domestic and overseas business operations in fiscal 2011 for the first time and from fiscal 2013 to fiscal 2020 for eight consecutive years. Tokio Marine Group will continue to contribute to achieving the United Nations Sustainable Development Goals thorough promoting climate actions including initiatives for reducing environmental footprint and achieving "carbon neutral".

*1 "Carbon neutral" state means that CO2 emitted in the course of business activities is equivalent to the volume of CO2 removed or reduced by way of use of natural energy, the retirement of carbon credits and mangrove tree planting.

1. Achieving "Carbon Neutral"

In undertaking efforts to reduce environmental footprint and achieve "carbon neutral" across the entire Group (domestic and overseas operations), Tokio Marine Group (1) promotes energy conservation and energy efficiency, (2) plants mangrove trees to absorb and stabilize CO2, (3) uses natural energy such as green power (electricity), and (4) retires emission credits.

Thanks to these efforts, Tokio Marine Group was able to offset CO2 emissions from the Group's overall business activities (domestic and overseas) in fiscal 2020 through the absorption and stabilization effects of mangrove tree planting and the use of natural energy (purchase of Green Power Certificates).

The Mangrove Planting Project was initiated by TMNF in 1999, and as of the end of March 2021, mangroves had been planted via the project encompassing approximately 11,618 hectares (equivalent to approximately 34 times the area of Central Park in New York City) in a total of nine countries in Southeast Asia (Indonesia, Malaysia, Myanmar, the Philippines, Thailand, Vietnam), South Asia (Bangladesh, India) and Fiji.

Mangrove trees planted in these regions help (1) inhibit and alleviate global warming by absorbing and stabilizing CO2, (2) conserve biodiversity, (3) reduce disaster damages to coastal communities from tsunamis and storm surges, and (4) bring economic benefits that include increased catch in commercial fishery and local employments.

As regards Green Power, Philadelphia Insurance Companies purchased green power certificates which is

1

equivalent to meet 100 percent of the annual electricity usage in their business operations and achieved "net zero emissions*2" from fiscal 2013.

*2 "Net zero emissions" state means that CO2 emitted and energy usage is net zero.

2. Overview of "Carbon Neutral" Status for Fiscal 2020

(1) Scope:

All business activities of TMHD and its consolidated subsidiaries (in and out of Japan).

1. Activities: Energy usage (electricity, gas and others) associated with facilities, vehicle and aircraft usage associated with business activities.

(3) Results:	CO2 emissions: 89,894 tons < CO2 removal: 123,531 tons
			CO2 emissions: 89,894 tons
	Scope 1	(Direct)	Gas, gasoline and other fuels	13,163 tons
	Scope 2	(Indirect)	Electricity and others	53,977 tons
	Scope 3	(Other)	Paper usage and others	22,754 tons
			CO2 removal: 123,531 tons
	CO2 removal through	Planting in nine countries in Southeast Asia, etc.	120,000 tons
	mangrove trees
	Use of natural energy	Green power certificate (wind power)	3,531 tons

Notes:

・Ernst & Young ShinNihon LLC provided Independent Assurance Report on information such as CO2 emissions from energy sources and Green power certificate. TMHD requested Central Research Institute of Electric Power Industry of the evaluation and calculation of CO2 removal through mangrove trees and received the evaluation report. Furthermore, regarding the report, TMHD requested the third party (Ernest & Young ShinNihon LLC) to execute the agreed procedures on a part of data published in accordance with the special practical guideline 4400 "Practical Guidelines on Agreed Procedures" (The Japanese Institute of Certified Public Accountants). As a result, the Tokio Marine Group assessed that CO2 absorption and fixation effects by mangrove planting were appropriately calculated.

・CO2 emission calculation for organizational boundaries, activities boundaries, method of calculation and CO2 emission factors refer to "ISO14064-1" and the "Mandatory Greenhouse Gas Accounting and Reporting System" based on the "Act on the Promotion of Global Warming Countermeasures (Global Warming Countermeasures Law)." "Removal through mangroves" refers to the methodology of the clean development mechanism (CDM) of using forest sink to store CO2.

2