The severity of damage caused by natural disasters is influenced not only by weather conditions but also by the health of the impacted natural environment. The loss of natural areas such as forests and seaweed beds also contribute to global warming. Accordingly, the issues of climate change and natural capital protection are interrelated. This is why the MS&AD Insurance Group is taking an integrated approach to climate change actions and the improvement of biodiversity and natural capital sustainability and taking measures to create shared value with society, known as CSV initiatives.
Our daily lives and business activities depend on many benefits provided by nature, making the sustainability of natural capital essential for ensuring resilience. The Group is committed to “Green Resilience,” a term that covers its efforts to harness the multifaceted functions of nature in disaster risk reduction, decarbonization, and promoting regional revitalization. These initiatives are summarized in the MS&AD Green Resilience™ Report 2024 (TCFD/TNFD Report), which outlines risks and opportunities related to climate and nature, along with the Group’s response measures and initiatives.

Providing Natural Capital Products and Solutions

The MS&AD Insurance Group has been offering various services for quantitative evaluation of impacts on natural capital in developing business units and projects within and outside of Japan for our customers’ business expansion, and products to cover economic loss caused by damage to nature.

Identify and inform on risks

Prevent risks from occurring/minimize the impact

Reduce the economic burden

Assessment of risks caused by damage to or degradation of natural capital
(Analysis examples)
・Future risk of water depletion at business facilities that use large volumes of water
・Assessment of the sustainability of supply chains which primarily depends on natural resources

Provision of proposals on risk management measures based on assessment and analysis results, and services for preventing accidents
(Proposal example)
・Consultation on land use that considers local ecosystems
・Provision of alert function for smartphones to prevent roadkill incidents

Provision of risk coverage
(Coverage example)
・Expenses incurred for activities to remediate damage to the natural environment
・Expenses incurred during recall when a sustainability certification of the used materials is revoked and expenses needed for apology

 

Provision of Nature-related Risk Analysis Support in Line with TNFD

In line with the guidance of the Taskforce on Nature-Related Financial Disclosures (TNFD), we provide support for scoping of analysis targets, analysis of priority regions and dependencies/impacts, including value chains, and consideration of business risks/opportunities, and we disclose information based on such results.
Further progress in developing analytical techniques is underway, including a partnership with Think Nature Inc., a natural capital big data company, since November 2022.

 

Entered into a co-creation agreement between Think Nature Inc. and MS&AD (InterRisk) (in Japanese only)

Consulting Menu: TNFD/Natural Capital-related Support Consulting (InterRisk) (in Japanese only)

Launched TNFD consulting service for urban real estate in Japan (InterRisk) (in Japanese only)

Launched TNFD consulting service for regional financial institutions (InterRisk) (in Japanese only)

Launched TNFD support service focused on freshwater resources (InterRisk) (in Japanese only)

Support for companies through FANPS

In February 2023, the Group formed a financial alliance with the Sumitomo Mitsui Financial Group, the Norinchukin Bank, and the Development Bank of Japan, with the aim of becoming nature positive. Toward this goal, in September 2023, we began offering support services for companies committed to following the recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD), and released a catalog of solutions that can help companies become nature positive.

 

Announcement concerning the launch of TNFD support services for achieving nature positivity (HD) (in Japanese only)

Release of a solutions catalog for companies aiming to become nature positive (HD) (in Japanese only)

Initiation of development for a business risk quantification app related to environment and biodiversity

Aioi Nissay Dowa Insurance has begun developing an app with Natural Capital Research, a UK-based company that supports corporate decision-making concerning nature and the environment. Scheduled for release during FY2024, this app is designed to quantify the potential costs of business risks arising from the impacts of corporate activities on the environment and biodiversity.

 

Japan First — Announcement concerning the development of app for quantifying business risks related to the environment and biodiversity (ADI) (in Japanese only)

Blue Economy Project

With a view to medium- to long-term social transformation associated with the conservation of natural capital/biodiversity and decarbonization, we will analyze new risks arising out of initiatives for "responses to climate change and decarbonization" such as renewable energy from the oceans/seabed and negative emissions technologies, and “responses to digital transformation of offshore/submarine business" utilizing oceanographic data and AI, etc., and will promote development of insurance products/services that support realization of the “blue economy” through a system deployed across internal and external organizations.

 

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

Biodiversity-conscious Land-use Consulting

A growing number of companies which regard initiatives to conserve biodiversity as both risks and opportunities for their businesses have been taking biodiversity into account in determining their businesses’ land use. We offer comprehensive support ranging from surveys and analysis through formulation of development/action plans based on these surveys, and analyses, for the use of offices, apartment buildings, and other land with green spaces.

 

Biodiversity-conscious land-use consulting (InterRisk) (in Japanese only)

Supporting reduction of roadkill incidents

Automobile accidents rank high as a cause of death for rare species of animals such as Iriomote cats (roadkill). In order to prevent the occurrence of such accidents, an alert function has been installed in dedicated dashcams for automobile insurance.
From FY2022, we have been making donations based on sales of such dashcams to organizations, including those working on protection of rare animals and reduction of roadkill incidents.

 

Rolling-out of products and services which contribute to conservation and restoration of natural capital and biodiversity. (MSI) (in Japanese only)

Expansion of our products and services which contribute to conservation and restoration of natural capital and biodiversity. (ADI) (in Japanese only)

Providing coverage of additional expenses for dealing with marine contamination

In cases where the natural environment suffers damage due to a marine vessel accident, we will cover expenses of conservation/restoration actions taken voluntarily by the vessel’s operator to address such damage. This type of risk has been outside the coverage of conventional insurance policies.

 

Launched Endorsement for Additional Expenses for Dealing with Marine Contamination under hull insurance (MSI) (in Japanese only)

Providing extensive coverage of expenses associated with contamination damage

We will provide coverage on a wide range of risks, including liabilities for damages and expenses of contamination clean-up arising out of accidents such as an unexpected and sudden outflow of contaminants into public waters from a factory, etc.

 

Launched Endorsement for Extended Coverage of Contamination Damage under facility owner’s (manager’s) liability insurance (MSI) (in Japanese only)

Launched Endorsement for Extended Coverage of Contamination Damage, which contributes to conservation and restoration of natural capital and biodiversity. (ADI) (in Japanese only)

Providing coverage of reforestation expenses, etc.

We cover expenses necessary for reforestation of forests damaged by fire, etc., which have been outside the coverage of conventional forest fire insurance.

 

Launched Forest Keeper, an insurance product for those engaged in forestry (MSI) (in Japanese only)

Launched Endorsement for Coverage of Reforestation Expenses etc., which contributes to conservation and restoration of natural capital and biodiversity (ADI) (in Japanese only)

Package for Supporting Corporate Green Space Initiatives

Recent trends such as Nature Positive and TNFD and other factors have increased the importance of corporate green space that reflect consideration for biodiversity as a concrete approach to corporate land use.
Utilizing the know-how and experience of Mitsui Sumitomo Insurance, which has been engaged in the development of Surugadai Green Spaces at its head office site over many years, and MS&AD InterRisk Research & Consulting, which has been carrying out research and consulting services related to natural capital and biodiversity, we offer insurance products/related services packaged with “Surugadai Green Space Inspection Guide,'' “Corporate Green Space Consulting Service,'' and "Corporate Green Space Insurance" to support corporate green space initiatives that take into consideration natural capital and biodiversity

 

Corporate Green Space Insurance/related services to support corporate green space initiatives (MSI, InterRisk) (in Japanese only)

Provision of Liability Insurance for “Noyaki (Open Burning)”

In February 2023, we launched Japan’s first liability insurance for accidents related to “Noyaki,” an early spring tradition in Aso, Kumamoto Prefecture.
In Aso, open burning has long been carried out for the purposes of maintaining and restoring grasslands, conserving biodiversity, storing carbon, and recharging downstream water sources, but ensuring safety and security is an issue as fire accidents occur. We maintain functions of the open burning through providing coverage for damage related to the spread of fire to other properties during the open burning period, thereby contributing to conservation of the natural environment.

“No-Burn Insurance” to promote the recycling of clothing

This rider is the first of its kind in the industry and compensates businesses for the additional costs incurred to recycle or upcycle clothing that has been damaged, which would typically end up as incinerated waste in Japan. By offering this product, Mitsui Sumitomo Insurance aims to promote clothing recycling and help realize a circular economy.

 

Industry First — No-Burn Insurance (clothing recycling cost compensation) (MSI) (in Japanese only)

Initiatives Related to TNFD

By selecting members from financial institutions and companies in 14 countries worldwide, the Taskforce on Nature-related Financial Disclosures (TNFD) is working to build a framework for companies to disclose relevant information. MS&AD Holdings supports this objective and participates in the TNFD Forum. Since the task force's inception in 2021, the Company’s employees have been selected as task force members, contributing to the development and widespread adoption of a global disclosure framework.
To help advance framework adoption, the Company is working as the convener of the TNFD’s Consultation Group in Japan. Consisting of domestic TNFD Forum members, the panel is promoting awareness and adoption of the framework.
In October 2023, the month after the release of the first version of the TNFD framework in September 2023, we held an event with TNFD Co-Chair David Craig and TNFD Executive Director Tony Goldner. The aim was to urge executives and top management to adopt TNFD measures, and thereby help promote the framework among Japanese companies.

Initiatives Through Partnerships

To effectively protect and utilize natural capital while addressing relevant issues, it is essential to build partnerships with various companies and organizations. The Group is leveraging existing networks while also creating new ones to advance its initiatives.

Japan Business Initiative for Biodiversity (JBIB)

Japan Business Initiative for Biodiversity (JBIB) is a gathering of companies which carry out joint research projects on conservation of biodiversity and sustainable use of biological resources. It made a start mainly with companies (14 companies) which had participated in a symposium, “The Story of Biodiversity Told by Companies” held in 2007 as major members, aiming to study and take actions together for promoting initiatives for conservation of biodiversity. MS&AD Holdings has been serving as the chair company since JBIB’s founding in April 2008.
Total number of official members and network members: 64 (as of June 30, 2024)
Japan Business Initiative for Biodiversity (JBIB)

Association for Business Innovation in harmony with Nature and Community (ABINC)

The association was established with the purpose of encouraging businesses to work toward development of a symbiotic society in harmony with communities’ local flora and fauna, such as certification of corporate green space in consideration of biodiversity (ABINC certification). MS&AD InterRisk serves as the association’s secretariat.
Number of ABINC-certified green spaces: 155 (as of June 2024)
Association for Business Innovation in harmony with Nature and Community (ABINC) (in Japanese only)

Finance Alliance for Nature Positive Solutions (FANPS)

In February 2023, the Group formed a financial alliance with the Sumitomo Mitsui Financial Group, the Norinchukin Bank, and the Development Bank of Japan, with the aim of becoming nature positive. Toward this goal, in September 2023, we began offering support services for companies committed to following the recommendations of the Taskforce on Nature-related Financial Disclosures (TNFD), and released a catalog of solutions that can help companies become nature positive.
Finance Alliance for Nature Positive Solutions (FANPS) (in Japanese only)

“The Story of Biodiversity Told by Companies”

Every year until 2023, the Company held its annual symposium, “The Story of Biology Told by Companies.” The symposium program was launched in 2007 as an opportunity to provide information on corporate initiatives for biodiversity and, in February 2023, we hosted the 16th symposium This program has been highly rated with the symposiums featuring in the Guidelines for Private Sector Engagement in Biodiversity.

MS&AD Green Earth Project (Environmental Conservation Initiatives)

MS&AD Green Earth Project is a project through which the Group has been addressing conservation/restoration of natural environments, environmental burden reduction, disaster prevention and mitigation, and regional revitalization in a unified manner. We are working to promote “Green Resilience,” a concept to address climate change and improve the sustainability of natural capital in an integrated manner. These efforts include reduction of resource utilization through paperless business processes, etc. and resource circulation through recycling, and drawing out the functions of nature, such as disaster prevention/mitigation and decarbonization, by preserving the natural environment toward resolving social issues (Nature based Solutions) utilizing the power of nature.

Environmental Conservation and Restoration Initiatives at Three Sites in Japan

To promote collective action toward a nature-positive approach, the Group is engaged in nature conservation and restoration activities in wetlands, satoyama foothills, and seaweed beds, in collaboration with research institutions and local businesses, NPOs, and other stakeholders. These initiatives aim to implement various solutions, such as disaster prevention and mitigation by utilizing the benefits of nature, water resource conservation, and becoming nature positive. The goal is to establish models that help ensure safe, secure, and vibrant communities.

Support for Reforestation and Establishment of Sustainable Local Communities (Indonesia)

Local elementary school students participating in conservation activity
拡大
Local elementary school students participating in conservation activity

Over the past 19 years, starting in FY2005, we have been working with the Indonesian government to restore wildlife reserve forests and to recover tropical forests in the Special Region of Yogyakarta on Java Island. We have also been endeavoring to stimulate the local economy by, for instance, planting trees to revive degraded forests, and to form sustainable local communities, maintaining/managing protected forests and pursuing cooperative forestation initiatives with local residents by offering them technical guidance on planting and cultivating trees.

Afforestation Activities at the Aioi Nissay Dowa Insurance Forest

In FY 2019, we launched a tree-planting activity called the Aioi Nissay Dowa Insurance Forest in Bihoro Town, Hokkaido, as an activity for Connecting a Healthy Global Environment to the Future. Our environmental donation initiatives through customers’ selection of paperless insurance/Web policies, etc. are being utilized for tree-planting activities. We planted three types of moisture-resistant, broad-leaved trees (Mizunara: Quercus cuspidate, Japanese white birch: Betula platyphylla Sukaczev, and Manchurian Ash) on 15.5 hectares of land in accordance with the soil characteristics of the plantation area.

Mitsui Sumitomo Insurance Surugadai Green Spaces as OECMs / Corporate Green Space Support Package

The green zones surrounding Mitsui Sumitomo Insurance’s Surugadai Building and the Surugadai New Annex (Surugadai Green Spaces) are highly regarded as corporate green spaces that reflect consideration for biodiversity. In October 2023, the Ministry of the Environment designated these green spaces as a “nature symbiosis site.” The Group aims to help achieve the global “30 by 30” goal of conserving at least 30% of land and sea by 2030. With this designation, the Surugadai Green Spaces have been registered in an international database.
Mitsui Sumitomo Insurance and MS&AD InterRisk Research & Consulting provide a "Corporate Green Space Support Package", utilizing the know-how and experience of both companies, to support corporate green space initiatives through corporate green space insurance and related services.

Participation in Initiatives

Biodiversity conservation is as a key focus area of the MS&AD Insurance Group Basic Policy on the Environment. In addition, we actively participate in various initiatives aimed at enhancing the sustainability of natural capital, advancing efforts aligned with these goals.