Damage to natural capital due to economic activities has been increasing and, if biodiversity continues its loss at the current rate, this will become a serious crisis for the realization of a sustainable society. MS&AD group recognizes the improvement of natural capital sustainability as a critical issue and is actively working on it.
We have been making ongoing efforts through activities such as the Japan Business Initiative for Biodiversity (JBIB) jointly established with other companies in FY2008, nature-related consulting services, and collaborative research with universities. We are focusing on initiatives related to natural capital and biodiversity with the aim of realizing a nature-positive society and a world in harmony with nature.
In FY2021, we supported the Taskforce on Nature-related Financial Disclosures ("TNFD")*1, which was inaugurated in order to promote disclosure of nature-related financial information. The Group is promoting nature-related disclosure as set forth in the TNFD Recommendations (TNFD v1.0), published by TNFD in September 2023.
The Group has identified risks and opportunities in line with the concept of LEAP approach*2 advocated by TNFD, taking into account dependencies upon and impacts on nature. In “scoping,'' which considers the scope of analysis that should be prioritized, we identified “non-life insurance business,'' “financial services business,'' and “risk-related service business'' as the main targets, taking into account business scale, impacts on natural capital, and evaluability.
*1: Taskforce on Nature-related Financial Disclosures
An international organization aiming to develop a framework for information disclosure whereby the companies and others can redirect the flow of funds that have negative impacts on nature and bring about positive impacts on nature by disclosing nature-related risk information and visualizing the impacts on business.
*2 An integrated assessment process for managing nature-related risks and opportunities, focusing on the region or biome in which the business activities are carried out. “LEAP” stands for four phases: Locate, Evaluate, Assess, Prepare.