The following are the materials and data about sustainability approaches of the MS&AD Insurance Group.

 

Subject period:
FY2019 (April 1, 2019 - March 31, 2020)

 

Subject organizations and data coverage:

Company name abbreviation Group Domestic
(Domestic consolidated
subsidiaries)
Consolidated
(MS&AD Group total)
Subject Employee-based
coverage
Subject Employee-based
coverage
Mitsui Sumitomo Insurance Co., Ltd. MSI 77.2% 100%
Aioi Nissay Dowa Insurance Co., Ltd. ADI
Mitsui Direct General Insurance Co., Ltd. Mitsui Direct General
Mitsui Sumitomo Aioi Life Insurance Co., Ltd. MSI Aioi Life
Mitsui Sumitomo Primary Life Insurance Co., Ltd. MSI Primary Life
MS&AD Holdings MS&AD Holdings
Overseas insurance subsidiaries Overseas
Other(*) Other

(*) Domestic group companies operating such as risk-related services

Third-Party Assurance

 

Since 2015, the MS&AD Insurance Group has engaged KPMG AZSA Sustainability Co., Ltd. to perform assurance of selected environmental and social data in order to assure credibility of reported figures. The data subject to the third-party assurance for this fiscal year is indicated with .

ISO 26000 Core Subjects (Organizational Governance)

Corporate Governance

As a company with a Audit & Supervisory Board, the Company will endeavor to improve governance by ensuring that independently appointed Audit & Supervisory Board Members appropriately act in their auditing functions, in addition to ensuring that the Board of Directors appropriately acts in its oversight functions, while strengthening the functions of each and actively disclosing information.

Directors (as of 25 June 2020)

Chairperson of the Board

Chairman
(except holding concurrent post of President)

Number of Directors

12(*1)

Number of Outside Directors

5(*2)

Number of independent Directors

5(*3)

Number and ratio of women at the Board of Directors

2 / 16.7%

(*1) Board members average tenure 3.4years

(*2) Outside directors average tenure 1.8years

(*3) The number of outside directors with relevant work experience in our company's sector : 2

Corporate Auditors (as of 25 June 2020)

Establishment of Board of Auditors

Established

Number of Audit and Supervisory Board Member

4

Number of Outside Audit and Supervisory Board Member

2

Number of independent Audit and Supervisory Board Member

2

Number and ratio of women in corporate auditors

2 / 50.0%

Nomination and Remuneration

Number of Meetings of Board of Directors etc.

Function FY2019
Business Execution, Oversight Board of Directors 11(*1)
Governance Committee 2
Group Management Committee 12
Task-Specific Committees
Sustainability Committee 3
Quality Improvement and Compliance Committee 5
Group Management and Monitoring Committee 11
Digitalization Committee 3
Group Systems Committee 16
Group International Business Committee 3
Risk Management Committee 8
Auditing, Oversight Board of Auditors 11(*2)

(*1) Outside Directors average attendance rate 96.4%. All directors average attendance rate  98.5%
(*2) Outside Corporate Auditors average attendance rate 100%

Information Voting Right

Classification Number of shares
(shares)
Number of Voting Rights Description
Non-Voting shares - - -
Shares with Restricted Voting Right
(treasury shares, etc)
- - -
Shares with Restricted Voting Right
(others)
- - -
Shares with Full Voting Right
(treasury shares, etc)
(Treasury Stock)
24,244,400 shares of
Common Stock
- Share Unit Number
(100 shares)
Shares with Full Voting Right
(others)
567,414,500 shares of
Common Stock
5,674,145 Same as above
Fractional Shares Common Stock
1,632,854
- Fractional Shares
(Less than 100 shares)
Total number of Outstanding Shares 593,291,754 - -
Total number of Vote - 5,674,145 -

Political Donations*

(*) As a member of society, MS&AD Insurance Group believes that it is necessary to pay an appropriate share, and we make political donations to the extent permitted by law.

Speak-up system (Whistleblowing system)

Items Coverage Units FY2017 FY2018 FY2019
Number of cases reported Consolidated cases 93 164* 164

(*) The number of reports has significantly increased as we revised the system to allow anonymous reporting and consultation in 2018.

Progress and KPI(key performance indicators) in relation to our customer-first policy in the business operations (Japanese only)

The Group's five domestic insurance companies have disclosed their initiatives based on their Customer-first Policy in the Business Operations and KPI used to evaluate the result of their initiatives.

ISO 26000 Core Subjects (Environment)

CO2 Emissions in Business Activities *

With our support for the Paris Agreement adopted in 2015, we have signed the Paris Pledge for Action that calls on its signatories to address climate change and global warming. In line with this, we have established a target of 70% CO2 emissions reduction by FY2050 and 30% by FY2020 (Total of Scope 1 and 2) compared to the base year (FY2009). Even though we had several large-scale natural disasters which resulted in quite increased number of payouts, we have reduced our CO2 emissions (Total of Scope 1 and 2) from the previous year as a result of our continuous efforts for energy saving activities at our offices and data centers through initiatives such as work style reforms and our unique environmental management system, which is the MS&AD Our Earth Project.

With regard to data, we have obtained third-party assurance for the following new data items starting from FY2018: 1) the Category 3 in Scope 3, upstream emissions of purchased energy, 2) Total amount of waste recycled, and 3) Final disposal amount of waste. We strive to regularly assess our performance, identify the root course of problems, and take the next steps for further improve our operations.

(Percentage change from the previous year in parenthesis)

Items Coverage Units FY2017 FY2018 FY2019 Third-Party
Assurance
CO2 
emissions
(Scope1,2,3)
Consolidated t-CO2 513,320
(▲0.3%)
530,821
(3.4%)
547,700
(3.2%)
CO2 
emissions
(Scope 1)
Group
Domestic
+ Other
t-CO2 18,389
(▲6.7%)
17,174
(▲6.6%)
16,284
(▲5.2%)
Consolidated t-CO2 27,948
(6.2%)
26,161
(▲6.4%)
23,441
(▲10.4%)
CO2 
emissions
(Scope 2)
Group
Domestic
+ Other
t-CO2 65,196
(▲20.1%)
62,196
(▲4.6%)
57,090
(▲8.2%)
Consolidated t-CO2 76,721
(▲18.9%)
71,950
(▲6.2%)
65,615
(▲8.8%)
CO2 emissions
(Scope 1 and Scope 2 combined)
Group
Domestic
+ Other
t-CO2 83,586
(▲17.5%)
79,370
(▲5.0%)
73,373
(▲7.6%)
Consolidated t-CO2 104,669
(▲13.4%)
98,110
(▲6.3%)
89,055
(▲9.2%)
CO2 
emissions
(Scope 3)
Consolidated t-CO2 408,652
(3.7%)
432,711
(5.9%)
458,644
(6.0%)

(*)We have revised the figures in FY2018 by improving the accuracy of business activities' data which is the basis of calculation.

CO2  emissions (Scope 3)


(Percentage change from the previous year in parenthesis)

Items Coverage Units FY2017 FY2018 FY2019 Third-Party
Assurance
Category 2
Capital goods
Consolidated t-CO2 39,560
(0.5%)
60,904
(54.0%)
60,720
(▲0.3%)
Category 3
Fuel- and energy-related activities
(not included in Scope 1 or Scope 2) *1
Consolidated t-CO2 10,434
(▲7.0%)
10,278
(▲1.5%)
17,184 (*2)
(67.2%)
Category 5
Waste generated in operations
Consolidated t-CO2 2,750
(▲6.7%)
3,463
(25.9%)
2,034 (*2)
(▲41.3%)
Category 6
Business trip by airplane
Consolidated t-CO2 9,740
(▲4.4%)
4,295
(▲55.9%)
10,903 (*3)
(153.8%)
Category 7
Employee commuting
Group
Domestic
+ Other
t-CO2 7,489
(2.1%)
7,388
(▲1.3%)
10,078( *2)
(36.4%)
Category 13
Downstream leased assets *1
Consolidated t-CO2 8,013
(-)
7,550
(▲5.8%)
7,187
(▲4.8%)

(*1)We have revised the figures in FY2018 by improving the accuracy of business activities' data which is the basis of calculation.

(*2)With the update of the emission factor, the figures in FY2019 have significantly increased and decreased compared to those of FY2018.

(*3)We have reviewed part of the calculation method for FY2019 results.

Data on Environmental Burden

Scope 1 & 2 Coverage [the Group’s consolidated figures (including overseas Companies)]


(Percentage change from the previous year in parenthesis)

Items Coverage Units FY2017 FY2018 FY2019 Third-Party
Assurance
Electricity *1 Consolidated MWh 144,737
(▲15.8%)
142,486
(▲1.6%)
139,612
(▲2.0%)
Heat supply Consolidated GJ 62,426
(▲8.0%)
68,684
(10.0%)
63,773
(▲7.1%)
City gas Consolidated thousand
m3
2,113
(▲6.4%)
2,731
(29.3%)
2,642
(▲3.3%)
Liquefied
Petroleum
Gas
Consolidated t 183
(▲9.7%)
151
(▲17.3%)
134
(▲11.2%)
Heavy oil Consolidated kℓ 58
(▲45.8%)
51
(▲12.3%)
56
(9.3%)
Kerosene Consolidated kℓ 80
(▲58.4%)
50
(▲37.3%)
51
(2.5%)
Diesel oil Consolidated kℓ 6.5
(8.6%)
7.4
(14.6%)
7.5
(1.7%)
Gasoline *1 Consolidated kℓ 9,618
(12.0%)
8,334
(▲13.4%)
7,262
(▲12.9%)
Total energy
consumption *1・2
Consolidated MWh 282,737
(▲7.3%)
277,782
(▲1.8%)
261,969
(▲5.7%)
GJ 1,017,853
(▲7.3%)
1,000,014
(▲1.8%)
943,090
(▲5.7%)

(*1) We have revised the figures in FY2018 by improving the accuracy of business activities' data which is the basis of calculation.

(*2) The calculation of the total energy consumption in MWh and GJ is based on unit heat values specified in Japan’s Act on the Rational Use of Energy except for purchased electricity, for which 3.6GJ/MWh is used.


Scope 3 Coverage (major items)

 

(Percentage change from the previous year in parenthesis)

Items Coverage Units FY2017 FY2018 FY2019 Third-Party
Assurance
Paper Group
Domestic
+ Other
t 11,085
(▲14.8%)
10,545
(▲4.9%)
11,080
(5.1%)
Proportion of paper with forest certification MSI, ADI,
MSI Aioi Life
% 13.6
(▲20.9%)
12.8
(▲6.1%)
27.9
(118.4%)
Total water use *1 Consolidated thousand
m3
961
(▲10.5%)
991
(3.1%)
995
(0.5%)
Disposed waste Total Consolidated t 10,962
(3.9%)
10,157
(▲7.3%)
9,947
(▲2.1%)
Recycled t 4,804
(▲17.7%)
4,523
(▲5.8%)
4,782
(5.7%)
Final disposal amount t 6,158
(30.6%)
5,634
(▲8.5%)
5,165
(▲8.3%)
Business trip (Aircraft use only) *2 Consolidated thousand
passenger
-km
46,759
(3.9%)
47,127
(0.8%)
94,896
(101.4%)

(*1) We have revised the figures of water use in FY2018 by improving the accuracy of aggregation.

(*2) We have reviewed part of the calculation method for FY2019 results.

Renewable Energy Generation

We have installed solar power generation systems in our four major buildings, and are promoting to reduce CO2 emissions by using such renewable energy.

(Percentage change from the previous year in parenthesis)

Items Coverage Units FY2017 FY2018 FY2019 Third-Party
Assurance
Energy Generation 4 Buildings*1 kWh 57,109
(1.6%)
57,275
(0.3%)
50,953
(▲11.0%)
Energy Comsumption*2 Consolidated kWh 57,109
(1.6%)
57,275
(0.3%)
6,492,106
(ー)

(*1) MSI Surugadai Main & New bldgs, MSI Osaka Yodoyabashi bldg, ADI Tokyo Customer Center bldg.

(*2) Renewable energy generation and included usage of 6,441,153kWh by renewable energy certificate in FY2019 only.

Cost Effect

Items Coverage Units FY2017 FY2018 FY2019
Electricity
*1
Consolidated thousand
JPY
▲414,372 ▲65,503 153
Gasoline
*2
Consolidated thousand
JPY
91,525 ▲138,144 ▲179,856
Copy Paper Group
Domestic +
Other
thousand
JPY
▲45,825 ▲15,463 ▲68,857

(*1) Calculated from the average unit price at MS&AD Holdings.
(*2) Calculated from the petroleum products price survey gasoline nationwide annual average unit price (Agency for Natural Resources and Energy).

Environmental Approaches through Supply 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. In addition, we are working with policyholders on Eco insurance certificates and web policy clauses that reduce the environmental burden of business activities and, at the same time, improve the convenience of policyholders.

Items Coverage Units FY2017 FY2018 FY2019
Selection rate of web policy clauses * MSI, ADI % 76.8 76.4 77.1
Number of Agents
and companies
with certification
under Eco Action 21
MSI, ADI companies 132 121 82
Number of maintenance
shops implementing
Eco-inspection,
Eco-maintenance
MSI companies 386 379 377

(*) Online "Terms & Conditions" in consideration of environment

ISO 26000 Core Subjects (Community Involvement and Development )

Through our Group's social contribution activities and involvement in and support for community development, companies can help their employees become interested in understanding the community and society, be creative, and be able to build a network with the communities. Based on these ideas, the Group provides our employees with opportunities to take part in social contribution activities, and we have seen the number of participants is increasing. In fiscal 2018, over 70% of employees in Japan joined the social contribution activities. If our employees think it difficult to spare time to physically participate in these activities, they can alternatively make a monetary contribution through the employees' social contribution activity team. The monetary contributions start at 100 yen, and the contributions are withdrawn from their monthly salaries. We also strive to disclose social contribution expenditures, including conversion of social contribution activities.

Items Coverage Units FY2017 FY2018 FY2019
Number of acquirer
of Volunteer leave
MSI, ADI, MSI Aioi Life people 26 23 6
Number of acquirer
of Volunteer suspension
MSI, ADI, MSI Aioi Life people 2 0 1
Number of employees
engaged in social
contribution activities
Group Domestic people 20,022 23,601 27,673
MS&AD Unison
Smile Club
Number of
members
Group Domestic people 15,701 15,414 14,967
Disaster Relief
Donation
Matching
Gift Program
Donated
amount *1
Consolidated thousand yen 29,455 50,230 37,673
Number
of
participants *2
Consolidated people 10,594 21,129 14,782
corporate philanthropic contributions Group Domestic thousand yen 1,271,451 1,519,660 1,622,130
(Breakdown)Purpose Charitable Donations 614,930 821,730 46,070
Community Investments 303,441 303,330 1,150,530
Commercial Initiatives 353,080 394,600 425,530
(Breakdown)Money conversion Cash contributions 1,155,290 1,413,220 1,491,450
Employee volunteering during paid working hours 15,749 750 7,690
In-kind donation, facility opening etc 16,270 14,600 16,180
Management overheads 84,142 91,090 106,810

(*1) Total amount of Donation Matching Gift and Donation from employees

(*2) Total participants

ISO 26000 Core Subjects (Human Rights) (Labor Practices)

Breakdown of employees

Items Coverage   Units FY2017 FY2018 FY2019 Third-Party
Assurance
Number
of the
Group
employees
*1

Temporary
employees
are
superscripted
as the average
number of
annual
temporary
hires
in the bracket.
Consolidated male-
female
combined
total
   people 41,295 41,467 41,582
(9,745) (9,142) (9,051)
male 20,173 19,914 19,697
female 21,122 21,553 21,885
Group
domestic
male-
female
combined
total
   31,823 32,182 32,091
(9,108) (8,612) (8,362)
male 15,772 15,598 15,288
female 16,051 16,584 16,803
companies MSI 14,572 14,577 14,371
ADI 13,287 13,657 13,775
MD 571 545 552
MSA 2,609 2,604 2,588
MSP 394 400 396
holding
company
HD 390 399 409
Domestic employees (including group companies) /Consolidated employees 77.1% 77.6% 77.2%
Overseas male-
female
combined
total
   people 9,184 8,958 9,236
(603) (507) (679)
male 4,190 4,073 4,214
female 4,994 4,885 5,022
Overseas employees/ Consolidated employees 22.2% 21.6% 22.2%
Other *2 male-
female
combined
total
people 288 327 255
male 211 243 195
female 77 84 60
Other employee/ Consolidated employees 0.7% 0.8% 0.6%

(*1) Excludes excecutive officers and employees on leave.
(*2) Risk-related service businesses operated by the Group Companies other than those in the domestic insurance industry.
2019 overseas includes Leadenhall Capital Partners LLP UK.

Number of Employees by Age

Items Coverage   Units FY2017 FY2018 FY2019
Number of Employees
by Age
(Group Domestic)
Under 30 male-female
combined total
people 6,428 6,919 7,019
male 2,097 2,235 2,320
female 4,331 4,684 4,699
30~39 male-female
combined total
7,172 7,121 7,036
male 3,128 3,101 3,057
female 4,044 4,020 3,979
40~49 male-female
combined total
9,124 8,694 8,256
male 4,579 4,137 3,727
female 4,545 4,557 4,529
50~59 male-female
combined total
7,348 7,620 7,847
male 4,481 4,602 4,657
female 2,867 3,018 3,190
60+ male-female
combined total
1,751 1,828 1,914
male 1,487 1,523 1,516
female 264 305 398
Others * - - 19

(*)No further classification due to privacy

Employment

Items Coverage Units FY2017 FY2018 FY2019
Average age *1 Group
domestic
male-female
combined total
age 41.6 41.5 41.6
male 44.6 44.6 44.5
female 38.7 38.7 39.0
Average length
of service
Group
domestic
male-female
combined total
year 12.8 12.8 13.1
male 13.7 13.8 14.0
female 11.9 11.9 12.3
New-graduate recruits *2 Group
domestic
male-female
combined total
people 1,352 972 861
male 417 311 291
female 935 661 570
Turnover rate *3 Group
domestic
male-female
combined total
% 2.7 2.8 2.8
The ratio between the total annual
compensation of the Chief Executive
Officer and the mean employee compensation *4
HD male-female
combined total
times 9.4 12.4 12.3

(*1) The end of March of each year
(*2) The number of new hires in April of each next year
(*3) Exclude retirees and are calculated based on voluntary resignees

(*4) The total CEO Compensation / The mean employee compensation

Diversity

We are promoting diversity and inclusion (D&I) initiatives in order to create a working environment where all employees with different backgrounds, characteristics, and values can fully demonstrate their abilities and play active roles. The percentage of females in managerial positions is steadily improving, with the aim of achieving the target of 15% in FY2020.

Items Coverage Units FY2017 FY2018 FY2019 Third-Party
Assurance
Employment rate
and number of
employees
with disabilities
Group
domestic
   2.37 2.37 2.43
people 719 711 727
Rehiring Program
after retirement
Number of users
*1
Group
domestic
   people 1,133 1,173 1,295
Percentage and
number of
females among
board members
and corporate
auditors *2
HD Directors 16.7 16.7 16.7
people 2 2 2
Corporate
Auditor
50.0 50.0 50.0
people 2 2 2
Percentage
and
number of
females in
managerial
positions *3
Group
Consolidated
Total managerial positions(General Managers + Managers) 15.7 18.1 20.0
people 1,292 1,514 1,704
Group
domestic
General
Managers
3.4 4.1 4.3
people 36 47 53
Managers 11.3 14.3 17.3
people 577 735 891
Total managerial positions(General Managers + Managers) 9.9 12.4 14.8
people 613 782 944

(*1) Number of people newly or consecutively re-employed
(*2) Approved at shareholders meeting held each next fiscal year.
(*3) As of April 1st next fiscal year for Group Domestic. As of December 31st for Overseas insuarance subsidiaries

Human Rights

In February 2017, the Group established MS & AD Insurance Group Basic Policy on Human Rights and implemented the Group's human rights due diligence system. We provide our employees with human rights training every year in order for them to understand human rights better and to develop an organizational culture that respects human rights.

Items Coverage Units FY2017 FY2018 FY2019
Trainings of Human rights* Group domestic % 100.0 100.0 100.0

(*)Rate of departments that conducted human rights trainings that required all employees to participate (Rate of employees that completed e-learning for ADI in FY2017 and FY2018)

Items Coverage Units FY2017 FY2018 FY2019
Labor union membership rate Group domestic % 93.8 93.9 93.5

Human Asset Development

Items Coverage Units FY2017 FY2018 FY2019
Number of participants of the Trainee System*1 Group domestic people 568 794 983
Number of participants of the Global Trainee System*2 Consolidated Total people 118 112 131
Domestic employee 67 51 85
Local employee 51 61 46
Number of participants of the overseas career training program*3 Group domestic people 55 52 48
Number of participants of the Temporary Transfer System to Headquarters from Overseas Branches*4 Consolidated people 9 11 8
Number of actuaries*5 Group domestic people 100 103 111

(*1) Short-term program which allows employees to experience work they have never done before, at the request of the employee.
(*2) Short-term program which allows employees in Japan to experience working at overseas subsidaries, as well as local employees at overseas subsidaries to experience working at the head office.
(*3) MBA dispatch program, and training program which allows employees to experience working for a year at overseas subsidaries or insurance companies.
(*4) Transfer system for which allows the local employees from overseas experience the jobs at the head office for 6 months to 1 year in Japan.

(*5) Number of professional actuaries employed by the MS&AD Group with specialized skills for making full use of probability, statistical and other mathematical techniques used in product development, risk management and other processes (as of April 1 of the subsequent fiscal year).

Employee satisfaction *1

Items Coverage Units FY2017 FY2018 FY2019
Employee satisfaction (questionnaire results), ”Pride, Job satisfaction”*2 Group domestic point 4.4 4.4 4.4
Employee satisfaction (questionnaire results), ”Working Vigorously”*3 point 4.2 4.3 4.5

(*1) The results of the opinion poll asking all Group employees (all-employee average on a 6-point scale, Scope: 36,404 all domestic employees including temporary employees at the time of survey, Response rate: 95.7%).
(*2) Ratio of employees feeling pride or job satisfaction
(*3) Ratio of employees, regardless of sex and age, feeling free and lively at workplaces.

Programs for Promoting Work-life Balance

We have been developing an effective system that helps employees actively work with satisfaction and with the feeling of growth by balancing their work and personal life. In particular, we have set KPI for the rate of male employees taking childcare leave, and encouraged them to take part in the program.

Items Coverage*1 Units FY2017 FY2018 FY2019
Temporary leave
before / after childbirth
Number of acquirers
Group
domestic
people 708 788 809
Number of employees taking childcare paid leave Group
domestic
male-female
combined total
people 994 1,026 1,052
male people 304 289 286
female people 690 737 766
Acquisition rate of childcare paid leave Group domestic male-female
combined total
% 78.0 85.2 86.3
male % 58.0 63.9 64.6
female % 98.6 98.0 98.7
Flexible working hours
for childcare
Number of acquirers
Group
domestic
shorter hours people 982 1,126 1,308
flextime people 41 70 122
change of Starting
/ finishing time
people 44 65 76
Temporary retirement
for nursing
Number of acquirers
Group
domestic
male-female
combined total
people 9 17 18
male people 1 1 1
female people 8 16 17
Flexible working hours
for nursing
Number of acquirers
Group
domestic
number of
acquirers
people 13 22 20
Paid leave Group
domestic
ratio of days taken*2 % 54.7 66.2 67.5
days taken days 16.0 15.6 15.7

(*1) Includes temporary employees

(*2) Number of days acquired / granted

Occupational Health and Safety (OHS)

In accordance to the Occupational Safety and Health Act, a health committee has been established to research and discuss relevant topics to preventative measures for OHS-related concerns and initiatives to support employees' health. We strive to provide a workplace environment that considers employee's health and safety. In addition, we have a group-wide health checkup system, a health management center, and a consultation room for employees in order to ensure that our employees can maintain their good health even better.

Items Coverage Units FY2017 FY2018 FY2019 Third-Party
Assurance
Number of
claims for
work related
injuries
Group
domestic
Total cases 178 162 162
Work-
related
accident
cases 76 66 74
Accident
during
commute
cases 102 96 88
Fatality
accident
cases 0 0 0
Consultation
rate of
Medical
Checkup*1
Group
domestic
% 100 100 100
Absentee rate*2 Group
domestic
% 0.433 0.448 0.511

(*1) Number of employees undergoing medical checkup consultation / number of employees
(*2) Total days lost due to absenteeism / Total days scheduled to be worked.To
improve the accuracy of data, we have revised the figures for fiscal 2017 and fiscal 2018