2017 SUSTAINABILITY REPORT Sustainability Report 2017 index Tokio Marine Group's CSR P. 03 Top Message CSR Promotion Structure and Initiatives for Permeating CSR within Tokio Marine Group's Approach to CSR the Group Group Core CSR Themes and Stakeholder Engagement Materiality Plans and Results of CSR Initiatives Relationship between Group Initiatives and SDGs External Evaluations and Participation in Initiatives Governance P. 89 Corporate Governance Creating a Society Where People Can Internal Control Live with Security through Sustainable Investments and Financing Respect for Human Rights CSR in the Value Chain Core Theme1 Providing Safety and Security P. 109 Making Society Resilient to Natural Building a Secure Society by Disasters Responding to Varying Lifestyles and Changes in Society Building a Secure Society by Utilizing Traffic Technology Innovation Eliminating Poverty in Society Improving Quality from the Customer’s Perspective Core Theme2 Protecting the Earth P. 179 Promoting Environmental Building Communities for People to Management Live with Peace of Mind through Environmental Protection Activities Preserving Biodiversity through Products and Services Preventing Global Warming by Promoting the Development of Clean Energy Core Theme3 Supporting People P. 208 Promoting Health and Productivity Nurturing Generations Responsible Management for the Future Developing and Utilizing Diverse Aiming to Create a Symbiotic Human Resources Society Building a Society Based on Health and Longevity to Ensure Peace of Mind CSR Library P. 256 Overview of Group CSR Reporting GRI Standards Content Index Editorial Policy Recognition about ISO 26000 CSR Performance Data Corporate Information Download PDF version of the Sustainability Report Third-Party Assurance 2 Tokio Marine Group’s CSR We introduce Tokio Marine Group’s CSR approach and strategies, CSR promotion structure, stakeholder engagement, plans and results, external evaluations and participation in initiatives. Top Message Tokio Marine Group’s Approach to A message from Tsuyoshi Nagano, President and CSR Group CEO. With the aim of being a Good Company trusted by all people and society, Tokio Marine Group implements its Corporate Philosophy based on the Tokio Marine Group CSR Charter. Group Core CSR Themes and Relationship between Group Materiality Initiatives and SDGs We identified materiality and are working toward value Tokio Marine Group will contribute to the United creation in each of the three core CSR themes of Nations Sustainable Development Goals (SDGs) “Providing Safety and Security,” “Protecting the Earth” based on four activity themes. and “Supporting People.” CSR Promotion Structure and Stakeholder Engagement Initiatives for Permeating CSR We introduce our structure for stakeholder within the Group engagement and include specific examples. We introduce the CSR promotion structure and initiatives for permeating CSR within the Group. 3 Plans and Results of CSR Initiatives External Evaluations and Participation in Initiatives We introduce the mid-term business plan and the We introduce external evaluations as well as our initiative plans and results of each fiscal year. participation in initiatives. 4 Top Message Toward a Safe, Secure and Sustainable Future The Sustainable Development Goals (SDGs), adopted at the United Nations Summit in September 2015, are attracting attention and there are rising expectations that companies will work together with governments and municipalities, nonprofit organizations (NPOs) and citizens to proactively contribute to resolving societal issues. Tokio Marine Group believes corporate social responsibility (CSR) is synonymous with the implementation of our Corporate Philosophy and that promoting efforts to solve societal issues will lead to the Group’s sustainable growth. For these reasons, under our “To Be a Good Company 2017” mid-term business plan, which we launched in fiscal 2015, we have set “Providing Safety and Security,” “Protecting the Earth” and “Supporting People” as our core CSR themes and will promote CSR with the participation of all employees globally. As this mid-term business plan also approaches its final fiscal year, our ever more self-motivated employees will act with integrity and compassion, and as this spreads throughout organizations and the entire Group, we believe that it will create a virtuous cycle of developing innovative products and services along with contributing to local communities and society. By implementing these initiatives, we aim to become a “Good Company” that is trusted by all people and society. Providing Safety and Security The Sendai Framework for Disaster Risk Reduction 2015-2030 was adopted in 2015 at the Third United Nations World Conference on Disaster Risk Reduction with the aim of mitigating damages from natural disasters and other causes. Moreover, amid the rise of risks other than natural disasters, including geopolitical risks, it is necessary to develop appropriate risk management solutions and build safe and secure communities. To ensure it can properly support customers and society even amid these changes, Tokio Marine Group provides safety and security throughout all its business activities. This includes carrying out industry-academia collaborative research, offering products and services to prepare for a variety of risks, participating in international initiatives, continuously supporting reconstruction of disaster-stricken regions in collaboration with partners and conducting on-site Disaster Prevention Lessons for school children. Industry-Academia Collaborative Research Responding to climate change and natural disasters is a high-priority issue for Tokio Marine Group from the perspective of enterprise risk management. Accordingly, Tokio Marine Group has been promoting research on climate change and natural disaster risk through industry-academia collaborative research in cooperation with world-class research institutions that include The University of Tokyo (since 2005), Nagoya University (since 2007), Tohoku University (since 2011) and Kyoto University (since 2012). In undertaking this research, we strive to ascertain details of forecasts for damage caused by any natural disasters that could possibly occur in the future and share the outcomes of this research with society. From fiscal 2017 onward, we will continue and enhance industry-academia collaborative research and strive to utilize our research outcomes for sophisticating hazard maps in local communities and for use in evacuation plans of local governments to raise safety and security in regional communities. In March 2016, Tokio Marine & Nichido, together with Tohoku University, convened a forum in Sendai entitled Five Years after the Great East Japan Earthquake, a Disaster We Will Never Forget, where we publicly presented our achievements on industry-academia collaborative earthquake and tsunami risk assessment. At the same time, we shared the thoughts of municipalities, companies, NPOs and insurance agents toward the reconstruction of disaster-stricken areas as well as disaster prevention. 5 Creating Value through Products and Services Tokio Marine Group strives to quickly provide security to customers and communities through insurance and various services when disasters or accidents occur. Tokio Marine Group has begun distributing to customers personalized videos with customized information on necessary insurance in preparation for disasters. Tokio Marine Group provides its corporate customers with expert advice to expedite business resumption and assist corporate customers in designing optimal business continuity plans (BCP). Tokio Marine Group also offers the products that provide safety and security to people who had not necessarily been insured. These products include One Day Auto Insurance, which is aimed at reducing auto accidents involving uninsured drivers by encouraging young drivers who do not own vehicles to sign up for insurance, as well as weather insurance and micro-insurance targeting farmers and low-income earners in India who suffer from poverty. We are also moving ahead in offering products and services that anticipate changes in customer needs and society. These include Drive Agent Personal, “Cyber Risk Insurance,” “participation in demonstration tests on public roads for autonomous vehicles” and “a new type of overseas travel insurance for foreign tourists visiting Japan.” Participation in International Initiatives To raise the resilience of society as a whole to natural disasters and contribute to resolving disaster issues and mitigating damages, Tokio Marine Group participates in the United Nations Office for Disaster Risk Reduction (UNISDR) Private Sector Alliance for Disaster Resilient Societies (ARISE) as well as in ClimateWise and The Geneva Association Extreme Events and Climate Risk (EE+CR) working group, as we make efforts to promote global disaster prevention. Earthquake Reconstruction Support and Disaster Prevention Awareness and Education Tokio Marine Group is continuing to provide support to the Tohoku Region affected by the Great East Japan Earthquake through a variety of activities that include support of the Ten-Year Restoration Project of the Coastal Forests of Tohoku Region, volunteer reconstruction support activities by employees and agents in affected areas and offering lunch menus from disaster-stricken regions at employee cafeterias with charitable donations. These support efforts are driven by our determination to “never forget the event at any cost and continue