Last fiscal year, we pointed out certain confusing expression that resulted from a plural number of companies contained in the report coverage, while appreciating the difficulty in compiling CSR reports by the Group holding company. In this fiscal year, we referred to polite words such as "Group" and "~ Company" in statements for further accuracy. And, by identifying "improvement in the quality of our products/services", "building a sustainable environment and society" and "putting into practice the code of conducts by all Group employees" for mid-term priority issues, the report has provided easier-to-understand construction. Disclosure of CSR approaches overseas has been boosted by responding to the call of aggressive business deployment mainly in Asian regions. Furthermore, we have evaluated as an ambitious trial for disclosing "data and material" that were classified according to 7 core subjects of ISO26000. On that basis, we propose the following 4 matters:

Reporting "~ Company has taken such approaches" does not simply clarify the status of progress against Group's targeted objectives. As a result, it is rather hard to grasp how Group's strengths have been materialized in what areas. As in "improvement in quality of contact center operations", we expect further expansion and aggressive disclosure of Group-wide approaches.

Last fiscal year, we proposed to introduce their approaches, to establish objectives, and to disclose information to form a pair concerning with result reports. At this time, we highly evaluate introduction of KPI (Key Performance Indicators) to visualize the approaches. In the next fiscal year and later, we would advise more persuasive strength to be attached by not only setting an annual target but also disclosing progress status and analyzing tasks in case the target has not been reached.

"Improvement in quality of products/services", "building a sustainable environment and society", and "putting into practice the code of conducts by all Group employees" are perceived intuitively as "desirable approaches". But, a more elaborate explanation is felt necessary in linking their promotion with close relativity to insurance business. For instance, while insurance claims are mounting sharply in payment at times of natural disasters, if nonlife insurance companies can enhance forecasting capability for disaster occurrences and contribute to improvement of disaster management capacity of society, they would have the merits of enhancing their business sustainability. We expect them to be more conscious of the relationship between non-financial information and financial information and disclose such relationship to help readers' understanding.

At this time, it has been reported for the first time that support is given to subject companies of investments and financing for their approaches, under the item "Environment-friendly investments and financing". On the other hand, in terms of managing decreases in asset values and revenues due to fluctuations in share prices, real estate values and rents, as well as deterioration of financial conditions of entities invested or financed, we note lack of corporate awareness of environmental, social, and governance (ESG) tasks. We expect that consideration for such tasks will be addressed in their approaches to managing risks in asset management.

From our stand point of providing corporate information to financial institutions for Social Responsibility Investment (SRI), we have submitted third party opinions in regard to how the MS&AD Insurance Group should perform its CSR activities and information disclosure, based on our understanding through this document. It should be noted, however, that our opinions do not represent our judgment of the document that it has been accurately measured and calculated in accordance with the generally accepted valid standards of preparing environmental reports, etc. or that it contains all material facts without omission.