The MS&AD Insurance Group is engaged in initiatives in the areas of insurance underwriting and investment analysis, which take the environment, social, and governance (ESG) into consideration.
Signing to the Principles for Responsible Investment
In June 2015, the MS&AD Insurance Group became a signatory to the Principles for Responsible Investment (PRI) Initiative. This seeks to incorporate environment, social, and governance (ESG) issues into the investment decision-making process. And we began taking initiatives that contribute to resolving social issues by implementing investment & lending activities and providing financial products & services. We also works to establish investment and lending processes that take ESG issues into consideration and strives to expand investment opportunities in new areas.
Implementation of Japan’s Stewardship Code
From the perspective of fulfilling their social responsibility as institutional investors, MSI and ADI have announced their agreement with and acceptance of Japan’s Stewardship Code, a code of behavior laid out for institutional investors. In line with the Code, we have constructive dialogue with investee companies to encourage them to enhance long-term and medium-term value and sustainable growth, and, through the dialogue, we focus on understanding their management issues, the shareholder return policy, ESG, and non-financial information. In fiscal 2016, MSI and ADI conducted constructive dialogue with a total of 535 firms.
Environmental, Social, Governance Friendly Investment and Loan
The MS&AD Insurance Group promotes initiatives that give consideration to environmental, social and governance (ESG) issues in areas such as insurance underwriting and investment analysis.
Investment in Sustainable Development Bond
MSI, ADI, MSI Aioi Life, and MSI Primary Life invested in the Sustainable Development Bonds (private placement format: USD 120 million equivalent to roughly JPY 13.5 billion) issued by the World Bank (International Bank for Reconstruction and Development).
Investment in Mirai Creation Fund
MSI and ADI invest in funds that are deeply connected with the environment. They have made capital contributions to the Mirai Creation Fund established by the Sparx Group with the aim of helping to accelerate innovation by supporting companies with technologies that drive the growth of future society, such as artificial intelligence, robotics, and technology for realizing a hydrogen-based society. In addition, they invest in equity funds based on decisions made upon evaluating the capabilities of individual firms to respond to environmental and societal issues.
Investment in Regional Economy Vitalization Corporation of Japan
MSI and ADI support the efforts to revitalize local economies through investing in the fund established by the Regional Economy Vitalization Corporation of Japan (REVIC). The objective is to support the prompt management improvement of firms standing at the core of local communities and help to develop core firms that serve important roles for local communities.
Providing Loans for Renewable Energy Power Stations
MSI supports the spread of renewable energy power generation by providing loans for the construction of mega solar power plants and wind power stations.
Investment in Loan Funds for Small- and Medium-sized Enterprises
MSI supports the growth and business revitalization of small- and medium-sized enterprises through investing in fund, established by TOPAZ CAPITAL, INC., that for the first time in Japan provides risk money mainly based on loans.
Investment in Social Bonds
MSI Aioi Life made investments in social bonds issued in the Japanese market by the Japan International Cooperation Agency (JICA).
Investment in Industrialize Africa Bond issued by African Development Bank
In November 2017, MSI Aioi Life invested in the “Industrialize Africa” themed bond issued by the African Development Bank (as a private placement, “the Bond”).
Participation in Initiatives
The MS&AD Insurance Group takes its social responsibilities and roles as a global financial institution seriously. With a view to strengthening its efforts to ensure environmental and social sustainability as well as spreading these efforts to society at large, it participates in a variety of domestic and international initiatives.