With the adoption of the 2015 Paris Agreement, a framework agreement on climate change, governments around the world agreed to restrict the increase in the global average temperature to well below 2ºC from pre-Industrial Revolution levels, and to pursue measures to limit that increase to 1.5ºC.
To that end, the world’s GHG emissions must be peaked out as soon as possible and then reach a balance with GHG absorption (forests, etc.) in the second half of the 21st century. A transition to a decarbonized society, with substantial reduction of GHG emissions, is required. Abnormal weather patterns, which appear to be the result of the impacts of progressive global warming, have been occurring more frequently, and countermeasures for the mitigation of climate change as well as adaptation to climate change, which has already begun to appear, are demanded.
As an insurer, the MS&AD Insurance Group is addressing the mounting risks of cumulative damage due to natural disasters in order to advance the level of our own risk management. We have taking initiatives with the goal of reducing GHG 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

Having established Symbiosis with Global Environment -Planetary Health- as a priority issue for sustainability (issues of materiality), our Group is promoting various initiatives in relation to climate change.
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.

Transition to 2050 Net Zero

To promote action on climate change, our Group has set interim targets for GHG emissions (Scope 3, Category 15) from insurance underwriting and investments to facilitate the transition to net-zero. Through engagements with our clients, we will share challenges they have in reducing GHG emissions and work together to resolve them.

Initiatives to Reduce Burdens on the Environment

Aiming for realization of net zero GHG emissions by 2050, our Group is actively promoting initiatives to reduce burdens on the environment in our own business activities, including one aimed at reducing GHGs, through our proprietary environmental management system, MS&AD Green Earth Project, under the MS&AD Insurance Group Basic Policy on the Environment.

Creating Shared Value with Society

We need to develop initiatives for mitigating advancing climate change while also putting in place measures to prepare against rising risks. Our Group will provide society with safety and peace of mind through effective preparatory measures, including reinsurance for loss due to large-scale disasters. We will also support new businesses which lead to realization of a decarbonized society, promoting climate change adaptation by providing appropriate services to reduce or eliminate damage and loss inflicted on customers by natural disasters.

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
Risk assessment with new technologies toward decarbonization

・Risk assessments based on long-term flooding forecasts
・Future business risks connected with the transition to a decarbonized society
Proposals for risk management measures based on survey/analysis findings

・Alert service to detect wind power generation system failure and signs of abnormal conditions
Provision of needed risk coverage

・Comprehensive coverage of various risks surrounding renewable energy businesses

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 insurance products and services that support decarbonization of our customers’ activities and of society in general.

Supporting Decarbonization

Japan has declared a target of becoming carbon neutral through reducing emissions of GHGs such as CO2 to Net Zero 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 provide the Carbon Neutral Support Clause (decarbonization measures cost compensation endorsement).

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


Launched the Carbon Neutral Support Clause for corporate fire insurance

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  (in Japanese only)

10% discount on automobile insurance for Toyota ultra-compact EVs  (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.


Products and services that contribute to achieving the Sustainable Development Goals

Provision of Service for calculating and visualizing GHG emissions

Group companies MSI and Aioi Nissay Dowa Insurance provide, free of charge, a cloud service “zeroboard*1” for calculating and visualizing GHG emissions for their insurance agent organizations*2, and Aioi Nissay Dowa Insurance also provides this free service for small to medium-sized enterprises throughout Japan to assist member agents and companies that are our Group’s business partners with their promotion of decarbonization management Our Group, in cooperation with customers and agents, is working to reduce GHG emissions in our value chain by supporting their decarbonization management through this service for calculating and visualizing GHC emissions.

*1: A cloud service offered by Zeroboard, Inc. for calculation and visualization of GHG emissions.
*2: Includes Mitsui Sumitomo Agencies (MSI Aioi Life) of MSI, Advance Club which is an insurance agent organization comprising car maintenance service providers, and members of Aioi Nissay Dowa Pro-Kai (known as “Pro-Kai”) of Aioi Nissay Dowa Insurance, and some car maintenance service providers operating as insurance agents.


December 10, 2021: Other ~ Support for agents’ decarbonization management ~ Launched service for calculating and visualizing CO2 emissions(MSI) (in Japanese only)

Imbalance Risk Compensation Insurance for renewable energy producers/aggregators

Mitsui Sumitomo Insurance has developed insurance products to cover imbalance risks borne by renewable energy producers and aggregators due to shortfalls in actual amounts of generated energy against their generation plans as a result of changes in the weather, generation equipment damage, etc., which can be customized depending on the status of risks.

Launched in June 2022

Through positively selling this insurance as one of “Green Products” with a proprietary index, “MS Green Index,” we support renewable energy producers, etc. and contribute to realization of a decarbonized society.


Launched on May 10, 2022 an insurance product/service, Imbalance Risk Compensation Insurance for renewable energy producers/aggregators (in Japanese only)

Launch of J-Credit (Japan GHG Emission Reduction/Removal Certification) Scheme Participants Support Insurance (for local governments)

Aioi Nissay Dowa Insurance has launched the J-Credit Scheme Participants Support Insurance (for local governments) to cover risks related to projects in which local governments take the lead in the J-Credit scheme utilized as a carbon offset method.

This insurance is aimed at backing up compensation schemes where local governments repair/replace damaged/broken solar power generation equipment, etc. owned by local residents participating in such projects, and it enables stable system management as local governments can set budgets for repair costs, etc. in advance, in the form of insurance premiums.


Launched J-Credit (Japan GHG Emission Reduction/Removal Certification) Scheme Participants Support Insurance (for local governments) (in Japanese only)

Research and Studies on Decarbonization Technologies and Risks

In order to realize “Net Zero Emissions by 2050,” social implementation of innovative technologies is essential. There is a wide variety of problems to be studied and solved, such as technical issues and changes in social systems. We are working on research projects/studies in collaboration with stakeholders and experts.

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 (MSI) (in Japanese only)

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

Launch of research studies on commercialization of damage protection services for offshore wind power generation system

In April 2022, Mitsui Sumitomo Insurance and MS&AD InterRisk Research & Consulting initiated, in collaboration with startups, academic institutions, etc., a joint research project on commercialization of an alert service for detecting signs of equipment failure and abnormalities to support expanded deployment of offshore wind power generation, which is expected to be a major source of renewable energy.

We are aiming at development of an alert service to detect signs of abnormalities which could lead to accidents, by making full use of damage data possessed by Mitsui Sumitomo Insurance in addition to obtaining/analyzing state data, etc. through demonstration experiments carried out in collaboration with local governments and partner companies on undersea equipment and windmills utilizing drones, robots, and sensors.


Launched researches on commercialization of damage protection services for offshore wind power generation system (in Japanese only)

Demonstration experiments in a community symbiosis type renewable energy power generating company

In March 2022, Mitsui Sumitomo Insurance invested in a community symbiosis type renewable energy power generating company, ENERU, in collaboration with the Machi Mirai Seisakujo and Higashimatsushima Organization for Progress, etc., and launched demonstration experiments aimed at reducing natural disaster risks through operation of solar power generation equipment to be set up in the future.

We will contribute to regional revitalization and realization of a decarbonized society by providing suitable products/services to support widespread utilization of renewable energy.


Launched demonstration experiments in a Community Symbiosis Type Renewable Energy Power Generating Company (in Japanese only)

Aioi Nissay Dowa Insurance and the University of Tokyo

Launch of a joint research project toward CO2 reduction, utilizing telematics technology

In April 2022, Aioi Nissay Dowa Insurance and the University of Tokyo fully launched a joint research project aimed at promoting carbon neutrality through utilization of telematics technology.

Aioi Nissay Dowa Insurance with its know-how related to telematics technology and the University of Tokyo with its knowledge and analytical techniques in the environmental field are aiming to promote an initiative to reduce CO2 volumes emitted by individual drivers through motor vehicle operation, thereby contributing to achievement of carbon neutrality in Japan.


Launched a joint research project with the University of Tokyo toward CO2 reduction by utilizing telematics technology (in Japanese only)

Establishment of Tanso Kaikei Advisors Kyokai

On July 1, 2022, a consortium of five companies - Wastebox, Chubu Electric Power Miraiz Co., Inc., Toyota Tsusho Corporation, Nippon Life Insurance Company, and Aioi Nissay Dowa Insurance Co., Ltd. - established Tanso Kaikei Advisors Kyokai (hereinafter “Association”).
The Association was established with the aim of spreading use of CO2 emissions measuring methods within Japan and having private businesses, etc. accurately reflect their CO2 emissions volumes in their financial information, and it has developed a “Japan first” private qualification, Carbon Accounting Advisor Qualification System.


Establishment of Tanso Kaikei Advisors Kyokai (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.

Weather derivatives

We sell weather derivatives to help minimize financial losses due to extreme weather or 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.


MS&AD InterRisk Research & Consulting 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.

Sympathy Money Insurance for payments to neighborhood victims (for PPA business operators)

This insurance covers expenses such as sympathy money incurred by PPA* business operators in cases where damage to solar power generation equipment established and managed by PPA business operators as a result of natural disasters such as typhoons has resulted in collateral damage to properties owned by neighboring residents and companies, even in cases where the operators are not held liable for compensation.
* Power Purchase Agreement model: A business model where a PPA business operator installs solar power generation equipment in the premises or on the roofs of power consumers, free of charge, and provides the generated power to consumers on a chargeable basis.


Launched Sympathy Money Insurance for payments to neighborhood victims (In Japanese only)

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 participated in the Caribbean Catastrophe Risk Insurance Facility. In 2021, Mitsui Sumitomo Insurance and Aioi Nissay Dowa Insurance joined the Southeast Asia Disaster Risk Insurance Facility and, in 2022, Mitsui Sumitomo Insurance began participating in the Mexico Natural Disaster Fund Program, through which we promptly provide relief funding in the event of a natural disaster of a certain size in countries and regions where the insurance market is not fully developed.

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.
We also provide 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 (in Japanese only)

Provision of "Prediction Map of Forecast Flood Frequency Change Due to Climate Change"

The MS&AD Insurance Group Holdings and MS&AD InterRisk Research & Consulting have teamed up with the University of Tokyo and the Shibaura Institute of Technology to join the Large-scale Assessment of Flood Risk Due to Climate Change (LaRC-Flood™) project and published a Prediction 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  (in Japanese only)

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 GHG emissions and measures against climate change through CDP. The MS&AD Insurance Group subscribes to CDP’s approaches and continuously submits new data.