Third-party Opinion

This is the second CSR report after MS&AD Insurance Group Holdings was established. I believe it improved from previous Report since it lists approaches in CSR Report 2011 which are conscious of readers and Keyword Index etc. that enables readers could overview the whole Group.

However, Subject Scope includes many companies in the Group, that still causes confusion. Generally, there exists difficulties in editing when holding company issues the report, but investors (Stakeholders) have keen interest in the strategies and advantages of corporate integration of the holding company as the stock issuance body as well as each approaches of member companies. I propose following three suggestions to realize more easily comprehensible information disclosure.

The perspective in business field such as Domestic non-life insurance, Domestic life insurance, Overseas, Financial/Risk related services could be introduced in the process of creation of concepts, carrying out, and disclosing the achievement in “Approaches to Products, Customers, and the Environment”.

International standard regarding social responsibility, ISO26000, which introduced in November 2010, defines Social Responsibility as “Responsibility of an organization for the impacts of its decisions and activities on society and the environment, through transparent and ethical behavior” and lists following actions; “It contributes to sustainable development including health and the welfare of society”, “It takes into account the needs and expectations of stakeholders”, “It is compliant with applicable laws and consistent with international norms”, “It is integrated and implemented throughout the organization”.

It is clear that the influence non-life insurance business gives to society and environment is different from that of life insurance business. Therefore, what influence the company is giving and could give to society and environment should be explored.

Above 1. must have sure linkage with “Creation of individuality in CSR management of MS&AD Insurance Group”. For example, there should be potentiality in the fields of Activity by female employees, Approaches of preservation of biodiversity, but the present information disclosure covers the completeness of the approaches but it lacks the individuality and characteristic of the Group.

I would like to request that introduction of approaches, goal settings and achievement report should be disclosed by linking each together in pairs. This report indicates “We have formulated key performance indicators(KPIs) for promoting these approaches” and “KPIs will enable the effective approaches by visualizing the progress of main approaches with objective indicators in line with the PDCA cycle in line with the PDCA cycle”. I expect these measures are established as early as possible.

At the end, at the round table of United Nations Environment Programme Finance Initiative that will be held in Washington DC in October, principles for sustainable insurance for insurance industry are to be announced as the draft proposal. The discussion regarding “the roles that financial institutions should play in view of the 2012 earth summit in Rio de Janeiro” is getting vigorous. There is plenty of scope for insurance companies to contribute for mitigation and solution for the issues of climate change, low birthrate and longevity, and urban disasters. I expect MS&AD Insurance Group would exercise leaderships and initiatives in this field as well since it sets up the Our Vision, “To create a world-leading insurance and financial services group”.

This Third-party Opinion was prepared to suggest how MS&AD Insurance Group’s approaches and information for social and environmental aspects mentioned in this report should be disclosed from the stand point of providing financial institutions the corporate information for the social responsibility investment. This comments are not the conclusion on the base of accurate measurement, calculations, and whether it contains every single important items that should be contained with reference to the generally-accepted standard for environment reports.