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.

Reduction on environmental burden

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 net-zero 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 associated with transition to a net-zero society

・Risk assessments based on long-term flooding forecasts
・Analyses of business risks associated with new technologies toward decarbonization
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.

Service to Support Decarbonization

The Japanese Government declared a target of “carbon neutral” by 2050 through reducing emissions of GHGs such as CO2 and requested local governments and companies in various industries to 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.


Provision of net-zero GHG emission introduction support tool for small to medium enterprises (ADI) (in Japanese only)

Consulting menus – climate change (TCFD/Net-zero GHG emission) (InterRisk) (in Japanese only)

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 (MSI, ADI)

Supporting wider use of environmentally friendly vehicles

Mitsui Sumitomo Insurance and Aioi Nissay Dowa Insurance, led the industry in developing an Endorsement for Replacement with an Electric Vehicle, etc., which covers expenses incurred when buying an electric vehicle to replace an insured gasoline-fueled vehicle damaged/written off due to a traffic accident, and they began marketing that endorsement for insurance policies with commencement dates in and after January 2023.


[Industry “first”] Developed an Endorsement for Replacement with an Electric Vehicle, etc. (MSI, ADI) (in Japanese only)


Aioi Nissay Dowa Insurance also supports greater uptake of environment-friendly vehicles, including EVs, through provision of lower-premium insurance options, such as 10% discount on vehicle damage coverage for Toyota ultra-compact EVs and 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 (ADI) (in Japanese only)

10% discount on vehicle damage coverage for Toyota ultra-compact EVs (ADI) (in Japanese only)

Provision of Service for calculating and visualizing GHG emissions

Telematics Automobile Insurance

Aioi Nissay Dowa Insurance launched a new service for visualizing CO2 emissions reduction through safe driving, using its unique algorism, targeting Telematics Automobile Insurance policyholders.
This is an initiative whereby we aim to improve the value of telematics technologies for global environmental issues, further contributing to addressing social issues through providing a new value which is “environmental preservation” in addition to such conventionally provided added values as “reduction of accidents.”


Launched a new service for visualizing CO2 emissions reduction in Telematics*1 Automobile Insurance (ADI) (in Japanese only)

Demonstration experiments on on-site charging service for EVs

Aioi Nissay Dowa Insurance and MS&AD Grand Assistance Co., Ltd. carried out, in cooperation with Tortoise Car Assistance Co., Ltd. and Bell Energy Inc., demonstration experiments on the on-site charging service for EVs, preparing for the future spread and expansion of EV uptake and elimination of electric power shortage problems.
The four companies are contributing to realization of a net-zero society and creation of environment whereby everyone can use EVs with peace of mind, aiming for provision of on-site charging services for EVs, utilizing know-how obtained through the demonstration experiments.
* Electric power shortage: Situation whereby an EV runs out of electrical charge and cannot move


Carried out demonstration experiments on the on-site charging service for EVs (ADI, Grand Assistance) (in Japanese only) 

Products that support renewable energy businesses

We support dissemination of renewable energies that help the transition to a net-zero 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

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

Insurance Package for PPA Business Operators

Aioi Nissay Dowa Insurance launched provision of an “Insurance Package” to cover not only risks of damage to power generation equipment but also risks of requiring alternative procurement of renewable energy and environmental values due to damage for the purpose of promoting the spread of the “PPA model*” that is increasingly being introduced as a method of procuring renewable energy.
This initiative contributes to realization of net-zero through expansion of renewable energy utilization while supporting safe and secure business operation by providing coverage for various risks that could arise when operating PPA models.
* Abbreviation for Power Purchase Agreement, which is a power purchase agreement between a consumer, such as a company introducing renewable energy, and a power generator


[Japan's first] Launched provision of “Insurance Package for PPA Operators” (ADI) (in Japanese only)

Power Generation Imbalance Costs Compensation Insurance

Automatically included in all "AI-based power generation forecasting service" provided by COOL TRUST

Aioi Nissay Dowa Insurance launched ”Power Generation Imbalance Costs Compensation Insurance” to cover shortage imbalance costs*1 for solar power generation companies which utilize the O&M*2 service provided by COOL TRUST Co., Ltd.
ADI supports achievement of net-zero by eliminating barriers to entry into the solar power generation business and increasing the proportion of renewable energy used in power generation in Japan.

*1: Costs incurred when the actual amount of power generation falls short of the planned amount of power submitted to the Organization for Cross-regional Coordination of Transmission Operators, Japan (OCCTO) by a solar power generation company.
*2: Abbreviation for Operation & Maintenance, operation and maintenance inspection of solar power generation facilities


Launched Power Generation Imbalance Costs Compensation Insurance to be Included to the AI Service (ADI) (in Japanese only)

Insurance to Support Carbon Dioxide Capture and Storage

In order to achieve net-zero by 2050, it is essential to utilize CCS, a greenhouse gas reduction technology, in areas and industries where existing technologies cannot eliminate use of fossil fuels.
Mitsui Sumitomo Insurance contributes to realization of net-zero through providing insurance to cover risk of damages related to CCS projects which are undergoing demonstration experiments toward commercialization.


Launched Environmental Impairment Liability Insurance for CCS Operators (MSI) (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) (ADI) (in Japanese only)

Initiatives for Research/Studies and Demonstration Related to 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 actively working on research projects/studies and demonstrations in collaboration with stakeholders and experts.

Participation in GX League

In order for Japan to realize its 2050 carbon neutral target and further contribute to realization of net-zero worldwide, and to adopt this as an opportunity for growth and increase its industrial competitiveness, it is important to lead the transformation of the entire economic and social system (GX: Green Transformation).

MS&AD Holdings supports the basic concept of and is a participant in the GX League, which holds discussions on transforming the entire economic and social system and practices for creating new markets. The Group also participated in the “GX Management Promotion Working Group'' aimed at “formation of rules for market creation,'' which is positioned as part of the GX League's initiative.


Establishment of the “GX Business Working Group” to Build a Framework and Promote Evaluation and Disclosure on Climate-related Opportunities (HD)

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 (MSI, InterRisk) (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 net-zero 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 (MSI) (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 net-zero emissions 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 net-zero in Japan.


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

Launch of Blue Economy Project

Mitsui Sumitomo Insurance launched a cross-company project aimed at developing insurance products/services which support development of the blue economy through analysing new risks arising out of initiatives with themes such as renewable energy from oceans and seabeds, and negative emissions technologies


Launched Blue Economy Project (MSI) (in Japanese only)

Providing Coverage for Damage/Loss Caused by Natural Disasters

We contribute to adaptation to climate changes through providing various ways of preparing against damage and loss caused by natural disasters.

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, etc., we have developed a dedicated platform that enables customers to get online quotes in real time on weather index insurance, and sell 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 stabilization 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 (MSI, ADI) (In Japanese only)

Participation in publicly funded natural disaster compensation scheme in overseas

Mitsui Sumitomo Insurance has been participating in the Pacific Catastrophe Risk Assessment and Financing Initiative since it was 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 2023, Mitsui Sumitomo Insurance became a participant in the African Risk Capacity,
Through these activities, we provide timely 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 net-zero society, 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 m x 90 m 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 (InterRisk) (in Japanese only)

Launched climate change impact assessment service for TCFD with Jupiter Intelligence (InterRisk) (in Japanese only)

Provision of LaRC-Flood® Flood Risk Database

The MS&AD Insurance Group Holdings and MS&AD InterRisk Research & Consulting launched in 2018 “Large-scale risk assessment of Climate change for Flood (LaRC-Flood®)“ Project in collaboration with the University of Tokyo, Shibaura Institute of Technology.
With support from the New Energy and Industrial Technology Development Organization (NEDO), a national research and development agency, as of FY2021, we correct errors included in climate models and realize highly accurate estimation of inundation depth distributions based on the effects of climate change.
In order to encourage society to respond to climate risks, this inundation depth distribution has been made available free of charge as a global-scale flood hazard map since April 2023.


Developed/opened to the public future wide area flood map (InterRisk) (in Japanese only)


In addition, MS&AD InterRisk Research & Consulting has launched a new consulting service that utilizes this hazard map.
The map enables quantitative impact assessments all around the world and supports identification of physical risks in the event that climate change is actualized.


Launched “LaRC Flood Risk Analysis Service” (InterRisk) (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.