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 our own risk management. We have taking initiatives with the goal of reducing CO2 emissions to net zero by fiscal 2050.
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 change social issue through Creating Shared Value (CSV initiative),Contributing climate change mitigation and adaptation
Because climate change seriously impacts 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

The development of climate change may exacerbate natural disasters worldwide and the likelihood of greater damage than ever may increase. 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 payouts could lead to a degradation of the global insurance system.
We must make initiatives 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
Prevent risks from occurring/
minimize the impact
Reduce the economic burden
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 initiatives after system breakdowns

Products and Services to Support Decarbonization

While business activities in line with the Paris Agreement have become an important management strategy, we are working to develop and provide services that support decarbonization of our customers.

Supporting Decarbonization

Japan has declared carbon neutral by 2050 and local governments or companies in various industries must take appropriate measures. We provide all kinds of support in a one-stop package for businesses of any size in any industry. This support ranges from introductory seminars on decarbonization, to support for calculating carbon emissions, and developing strategies to cut emissions.

Insurance to Support Companies’ Decarbonization

In terms of commercial property insurance, we launched the Carbon Neutral Support Clause in August 2021. This special clause provides coverage for extra costs in installation of devices that lead to emission reduction to repair damaged buildings, etc.

While standard insurance coverage is up to restoration cost, this clause provides additional coverage and support companies’ decarbonization.


The Carbon Neutral Support Clause for corporate fire insurance was launched

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

The scope of risk which companies need to be aware includes not only physical risks, such as floods and droughts caused by climate change, but also transition risks which arise when societies and economies shift to a carbon neutral world, such as when transforming energy systems. We provide services that support our clients building a climate change governance structure, performing scenario analysis, and developing a climate strategy in accordance with the TCFD’s Final Recommendations through assessment and analysis of such risks.

In July 2020, we launched a service which can quantitatively assess the risk of future natural disasters anywhere in the world to an accuracy of 90 square meters based on climate change impact assessments using AI in collaboration with a US startup company. We have since provided this service to many companies.


Climate change risk analysis service (in Japanese only)

Launched climate change impact assessment service for TCFD with Jupiter Intelligence


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 relationship between climate change and flood 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.

In the research project, we developed a method to detect trends in changes of flooded area from satellite images. Through such event attribution, we have been able to see how the impacts of global warming affect flooding. The research was developed and we have been working on more sophisticated research into flood risks with support from the New Energy and Industrial Technology Development Organization (NEDO) since fiscal 2021. This has enabled us to accelerate our research for the creation and practical application of highly accurate wide-area flood risk information with a view to using this information in the industrial world.


LaRC-Flood map (in Japanese only)

Understanding changing flood risks due to climate change (InterRisk)(in Japanease only)

Joined the Japan Hydrogen Association

MS&AD has joined the Japan Hydrogen Association which was set up in December 2020. The association was established with the aim to support the early creation of a hydrogen society by carrying out social implementation projects as a cross-industry and open organization with a bird’s eye view of the entire supply chain. Collaboration of various companies for lower-cost hydrogen supply and wider use is expected and we will contribute through the association.


Joining the Japan Hydrogen Association (MS) (in Japanese only)

Joining the Japan Hydrogen Association (AD) (in Japanese only)

Providing Coverage

We are assisting economic revitalization and climate change mitigation and adaptation through appropriate preparations for damage/loss caused by natural catastrophes 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 the impact on the environment.

Product to support stable supply of green power certificates

In April 2021, the Green Energy Certificate Stable Supply Support Insurance was launched to support the stable supply of Green Energy Certificates*1.
This product covers for additional costs*2 incurred by the issuer when a facility of a green power company contracted by the issuer is shut down in a disaster or other such event and the issuer is obliged to procure green energy from other power companies, etc.

*1. Electricity generated by renewable energy
*2. Additional costs in the event that the issuer procures green energy at a higher than normal rate in order to continue providing the certificate


Launch of Green Energy Certificate Stable Supply Support Insurance( in Japanease only)

Supporting wider use of environmentally friendly vehicles

MS&AD, at the forefront of the of the industry, support the spread of environmentally friendly vehicles, such as electric cars, by developing lower premium insurances such as 10% discount on automobile insurance for Toyota ultra-compact EVs and other discounts specifically for autonomous vehicles (low-speed EVs) that use electromagnetic induction lanes which are being introduced to secure means of local transport.


Providing insurance for self-driving cars using electromagnetic induction lanes (AD) (in Japanese only)

10% discount on automobile insurance for Toyota ultra-compact EVs (AD) (in Japanese only)

Products that support renewable energy businesses

We support dissemination of renewable energies that help the transition to a carbon neutral 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, onshore/offshore 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.
In fiscal 2020, the number of new policies for the Comprehensive Coverage Plan for Mega-Solar Power Generation increased by 30% compared to fiscal 2019.


Products and services that contribute to achieving the Sustainable Development Goals

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 (in Japanese only)

Weather index insurance platform for farmers

In collaboration with MSI GuaranteedWeather and an Australian Insurtech company, we have developed a dedicated platform that enables customers to get online quotes in real time on weather index insurance, and we have begun selling the insurance to farmers in Australia. Whereas traditional crop insurance is often limited to wildfires and hailstorms, this product covers weather conditions such as drought, high and low temperatures, and rainfall just before harvest, contributing to the stability of farmers’ businesses in countries with frequent natural disasters.

Participation in publicly funded natural disaster compensation scheme in overseas

Mitsui Sumitomo Insurance continues 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 disaster risks. In 2020, Mitsui Sumitomo Insurance will participate in the Caribbean Catastrophe Risk Insurance Facility, and in 2021, Mitsui Sumitomo Insurance and Aioi Nissay Dowa Insurance have joined the Southeast Asia Disaster Risk Insurance Facility that promptly provides relief funding in the event of natural disasters of a certain size in countries and regions where the insurance market is not fully developed.

Participation in the CDP

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 change. 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.