With the adoption of the 2015 Paris Agreement, a framework agreement on climate change, governments around the world agreed to keep the increase in the global average temperature well-below 2ºC from pre-Industrial Revolution levels, and to work to limit this increase to 1.5ºC.
To that end, the world’s greenhouse gas emissions must be peaked out as soon as possible and then reach a balance with greenhouse gas absorption (forests, etc.) in the second half of the 21st century. A transition to a decarbonized society, with substantial reduction of greenhouse gas emissions, should be made in adapting to climate change.
As an insurer, the MS&AD Insurance Group is addressing the accumulation risks of cumulative damage due to natural disasters while promptly ascertaining social changes to advance the level of its own risk management. We are working to reduce the environmental burden accompanying our business activities with a target at 70% reduction by FY2050 using FY2009 as a benchmark year.
Furthermore, we will continue to support sustainable development by providing insurance and consulting services designed to reduce damage and loss incurred in corporate and other activities due to abnormal weather stemming from climate change, and by developing products/services that help advance the transition to a decarbonized society.

Climate-related Financial Disclosure

To achieve a “Resilient and Sustainable Society”, the MS&AD Insurance Group is tackling climate changes mitigation and adaptation through Creating Shared Value (CSV initiative) .
Because climate change may bring serious impact on society and industry and may constitute a major factor behind the fluctuations in corporate performance, companies' disclosure regarding the impacts of climate change on their business activities is becoming more important than ever. Our Group endorses the Task Force on Climate-related Financial Disclosures (TCFD) and promotes the disclosure of financial information.

Creating Shared Value

Advanced climate change may bring unprecedented tremendous disaster by weather events with growth in frequency and magnitude. In addition to such large, intense disasters, slower changes in weather patterns will destabilize business activities and day-to-day living, causing both physical and economic harm. Natural disasters are an enormous risk confronting the entire planet, and insurers closely involved in responding to such disasters are concerned that more expensive insurance payment could lead to a degradation of the global insurance system.
We must make efforts to mitigate advancing climate change while also putting measures in place to prepare for rising risks. The Group will provide society with safety and security through adequate preparations, including reinsurance for damage from large-scale disasters. We will also support new businesses that promote climate change adaptation by providing suitable services to reduce or eliminate damage and loss inflicted on customers by natural disasters and that help bring about a decarbonized society.

Identifying and providing
information on risks
Preventing risks from being realized
Reducing the impact of risks
Reducing the economic burden
when risks materialize
Risk analysis based on the impacts of climate change
(Analysis examples)
・Risk assessments based on long-term flooding forecasts
・Quantitative assessments based on multi-hazard predictions
・Future business risks connected with the transition to a decarbonized society
・Risk of water depletion at business locations engaged in businesses that use large volumes of water
・Real-time damage prediction for natural disasters
Proposals for risk management measures based on survey/analysis findings
(Proposal example)
・Examining countermeasures based on simulations of business operations being suspended
due to large-scale weather disasters
Provision of needed risk coverage
(Coverage example)
・Coverage for the risk of lower sales due to the suspension of business operations or the closure of facilities,
and for the risk of higher expenses incurred,
for example, due to restoration efforts after system breakdowns

Providing Services and Research Related to Climate Change Risk Assessments and Analyses

Given the need to adapt to new risks arising from climate change, assessment/analysis of climate change risks have become essential. Our Group is stepping up its initiatives to assess/analyze climate change risks.

Climate change risk analysis service

Risks that should be ascertained by companies are physical risks, such as flooding and droughts, stemming from climate change and transition risks in the course of transition to a decarbonized society in line with Paris Agreement, including changes in the energy structure.

We provide services that support our clients building a climate change governance structure, performing scenario analysis, and developing climate strategy in accordance with the TCFD’s Final Recommendations through assessment and analysis of such risks. In July 2020, we launched a quantitative analysis service to assess the impact of natural catastropfe risks stemming from climate change on a global scale with a precision of 90 square meters.


Climate change risk analysis service (Japanese only)

We launched a climate change impact assesmenst service for TCFD with Jupiter Intelligence, the climate change risk analysis venture.

Provision of "Prediction Map Showing Changes in Flood Frequencies"

The MS&AD Insurance Group and MS&AD InterRisk Research & Consulting have teamed up with the University of Tokyo and the Shibaura Institute of Technology to undertake a Large-scale Assessment of Flood Risk Due to Climate Change (LaRC-Flood™) and published a Map of Forecasted Flood Frequency Change Due to Climate Change as part of this project. To clarify the relation between climate change and flooding risk, we have also begun extensively and quantitatively evaluating the impacts of global warming on the probability of past floods occurring, with a focus on the major rivers in Asia.

Advancing climate change could increase flood risk globally in future, which would have a major impact on corporate management. As an insurer, the MS&AD Insurance Group will strive to respond to natural catastrophes and prevent/mitigate damage from these disasters. Climate change in particular has long been an issue of interest for the Group as a whole, and we have been pursuing an industry-government-academia collaboration to resolve social issues and bring about our vision of an ideal society.


LaRC-Flood map (Japanese only)

Providing Coverage

We are assisting economic revitalization and climate change mitigation and adaptation through appropriate preparations for damage/loss caused by natural catastropfes as well as innovations to bring about a decarbonized society by offering insurance and consulting services in addition to developing and providing products that reduce environmental burden.

Products that support renewable energy businesses

We support dissemination of renewable energies that help the transition to a carbon-free society through various types of insurance products that comprehensively cover a variety of risks (including property damage, lost profits and liability) surrounding renewable energy developers (e.g. solar power, wind power, biomass power, and small and medium-sized hydropower), and risk management services such as risk assessment/consulting and the provision of information through handbooks and other means.

The number of new policies for the Comprehensive Coverage Plan for Mega-Solar Power Generation increased by 53% compared to the fiscal 2018


Products and services that contribute to achieving Sustainable Development Goals (SDGs)

Weather derivatives

We sell weather derivatives to lessen the financial losses due to unseasonable weather. We provide solutions by underwriting weather derivatives that cover decreased sales and increased expenses stemming from below-average (or above-average) rainfall levels, extreme heat, unusually cool summers, severe winters, warmer-than-normal winters, or a lack of sunshine.


InterRisk Sustainable Management Report (Japanese only)

Participation in publicly funded natural disaster compensation scheme in overseas

We continue to participate in the Pacific Catastrophe Risk Assessment and Financing Initiative, jointly established in 2013 by the Japanese government and the World Bank, as a company underwriting reinsurance for natural catastropfe risks. Furthermore, in 2020, we participated in the “Caribbean Catastrophe Risk Insurance Facility (CCRIF).” This system allows prompt supply of relief funding to Caribbean and Pacific Island nations with underdeveloped insurance markets hit by natural disasters of a certain scale (cyclones, hurricanes, earthquakes, tsunamis).

Efforts to Reduce the Burden on the Environment

To reduce environmental impacts from our business activities, we have established a Basic Policy on the Environment and we are implementing environmental protection initiatives with applying the PDCA cycle.

Environmental Management

Considering environmental issues as a priority issue for corporate management, we are actively pursuing environmental efforts aimed at creating a decarbonized society in accordance with the MS&AD Insurance Group Basic Policy on the Environment. In the Group's own management system "MS&AD OUR EARTH Project," we are promoting environmental load reduction efforts through the PDCA cycle in order to achieve the CO2 reduction targets set by the group.

Reducing CO2 Emissions

With our support for the Paris Agreement, we signed the “Paris Pledge for Action” to address climate change.

In May 2021, we revised our medium- and long-term CO2 emissions reduction targets (Scope 1 + 2) to align with the Paris Agreement target of "Pursuing efforts to keep global temperature increases well below 2 ℃ and below 1.5 ℃ from pre-industrial levels". We have also set new targets for reducing scope 3 CO2 emissions and increasing renewable energy use.

As a global insurance and finance group, the entire Group is actively working to reduce CO2 emissions, including through our supply chain.

Decreasing Paper Use

We substantially reduce the environmental burden through less paper use by computerizing insurance contract and payment procedures, etc., and making electronic policy certificates, terms, and conditions accessible on the Internet.

Promoting the Use of FSC-Certified paper *

Our Group has been making a switchover to FSC-Certified paper for pamphlets and other printed material since FY2010. Using paper made with lumber sourced from properly managed forests, we contribute to conserve biodiversity through forest protection.


(*) Paper manufactured from lumber sourced from properly managed forests in the interest of sustainable forest use and environmental conservation

Efforts Across the Value Chain

Our efforts to reduce the environmental burden are also promoted in conjunction with key business partners. We are engaged in green purchasing, prioritizing eco-friendly products in procuring the materials used in our operations, and our entire value chain is working to establish a sustainable society.

Support for Certification under EcoAction 21

We have provided a program to obtain certification under the EcoAction 21 environmental management system advocated by the Ministry of the Environment to our agents and small and medium-sized corporate clients.

Eco-maintenance and Eco-inspection

We are promoting the dissemination of eco-maintenance and eco-vehicle inspections through Advance Club, an agent organization based around the automobile maintenance industry. Eco-friendly vehicle maintenance and inspection uses maintenance technologies primarily to clean the engine’s combustion chambers by special methods (engine cleaning) thereby reducing toxic gas emissions, improving fuel efficiency and helping to reduce CO2 emissions by reducing fuel use.

Eco-Safety Driving

We prepare and propose support tools to promote Eco-Safety Driving, an eco-friendly approach designed to reduce fuel costs and vehicle accidents.

Eco-insurance policies, Web policy clauses
(MSA Life Insurance offers Web policy only)

We are encouraging the use of paperless insurance policy and policy clause. MSI and ADI also make a donation to environmental conservation activities based on a number of eco-insurance policies and Web policy caluses chosen by customers.


MSI - Green Power supporter, eco-insurance policies /Web policy (Japanese only)

ADI - paperless insurance policy certificates, and Web policy (Japanese only)

MSI Aioi Life Insurance - Web policy (Japanese only)

Participation in the CDP (formerly known as the Carbon Disclosure Project)

The CDP (formerly known as the Carbon Disclosure Project) is an independent nonprofit organization with the world's largest database for corporate measures against climate changes, and corporations and organizations across the world have disclosed their greenhouse gas emissions and measures against climate change through CDP. The MS&AD Insurance Group subscribes to CDP’s approaches and continuously submits new data.