The MS&AD Insurance Group always consider sustainability in terms of the environment, society, and governance (ESG) issues in all Group business activities, including the development of products and services, underwriting and investments.
ESG-related impacts include infringements of human rights that threaten respect for basic human rights, deforestation due to illegal logging, and corruption and bribery that undermine economic growth and stability. Our company’s business activities could influence ESG factors, and our company itself could be influenced by ESG factors. While we respond to such ESG-related risks to ourselves, we have been discovering business opportunities in addressing ESG concerns, e.g. offering automotive insurance with driving protection services to support safe driving, and thereby, reduce accidents, and using Big Data to present preventative measures against natural disaster. It is essential that we carefully assess ESG-related risks and opportunities, and reflect them in our business activities. We recognize the wide-ranging ESG risks such as legal risks, reputational risks, quality-related risks, business continuity risks, operational risks, transition risks, financial risks, etc., and these could potentially have a major impact on our company’s business activities and our stakeholders. Accordingly, we carefully identify such ESG-related risks to control them across our entire business activities.
We give an overview of these approaches in our “Perspective of Sustainability of the MS&AD Insurance Group” that describes our policies on addressing ESG concerns.

Implementation of "Business Activities with Consideration for Sustainability"

In May 2019, we committed that it would consider sustainability in all of our business activities in line with our ESG policy “Business Activities with Consideration”. 
[ESG Guideline]

[Process for Underwriting*]
In underwriting insurance, we have established an escalation process for projects that are considered to be in compliance with the Group's policies, but are deemed to have high sustainability risks (ESG risks). Since September 2020, we have reported such transactions to the Group Sustainability Committee based on the judgment of the senior management of the responsible sections for ESG. When formulating and revising policies, we hold dialogues with our company's client companies and share an understanding of the need for initiatives to move toward decarbonization.

 *For the investment and financing process, please refer to "Investment and financing considering ESG issues" and "ESG evaluation process" below.

Signatory to the Principles for Sustainable Insurance (PSI) and the Principles for Responsible Investment (PRI)

The MS&AD Insurance Group has been seeking out what are the best practices for financial institutions that take into account environmental and social sustainability, and it has been participating in the United Nations Environment Programme Finance Initiative (UNEP FI) to disseminate and promote these best practices.
Our company has also signed up to the Principles for Sustainable Insurance (PSI) and the Principles for Responsible Investment (PRI) published by UNEP FI. We have been working on activities such as a pilot project for considering climate change-related and nature-related risk analyses and information disclosure carried out by UNEP FI or PSI.


Development of Products and Services with Consideration for ESG

The MS&AD Insurance Group has underwriting criteria adapted for respective product and service as part of risk assessment process. In each process, certain ESG criteria are considered such as natural catastrophe risks, involvement with anti-social forces or ethical risks, based on the nature of the risk. Comprehensive process including system verification are properly implemented. Underwriting decision including the Board’s approval are made based on these risk evaluations.
In association with underwriting products and services, we discuss general policy to handle ESG risks at the Sustainability Committee, and we evaluate and manage individual ESG risk at the Risk Management Committee. Both committees shall report their decisions and conclusions to the Board of Directors.

In developing products and services, we examine the value to society and the value for our company generated by our products and services from various angles, and we strive to create value shared with society in providing these products and services. We have also developed a variety of sustainable products and services such as insurance or risk consulting services that support renewable energy projects, discounts to drivers who take a safe driving lecture aiming at reducing traffic accidents, and automotive insurance policies that allow the same-sex partner to be beneficiaries to support diversity.
In underwriting these products and services, all employees and agencies deepen their understanding of sustainability issues, including ESG risks, through trainings and other means, and to promote initiatives to realize a resilient and sustainable society with customers through dialogue.
Additionally, in reviewing factors to be considered, we have referred to the UN Global Compact, the Universal Declaration of Human Rights, the Guiding Principles on Business and Human Rights, the International Labour Organization Standards, the UN Convention against Corruption, and the OECD Guidelines for Multinational Enterprises.

ESG Investment and loan

As a signatory to the Principles for Responsible Investment (PRI), the MS&AD Insurance Group takes ESG issues into account for investment and loan.
Specifically, we incorporate ESG factors into investment/loan processes and promote ESG-themed investment (Sustainability-themed investment/loan, impact investment) on the basis of profitability, taking into consideration the MS&AD Insurance Group’s sustainability priorities. In addition, MSI and ADI declared their acceptance of Japan’s Stewardship Code, and have since engaged in constructive dialogue in line with ESG perspectives with investee companies, to encourage them to take appropriate actions to increase medium-term corporate value by raising their awareness over ESG.


Integration into Investment/Loan Processes - Systematic Incorporation of ESG factors into the investment process

Implementation of Constructive Responses as a Responsible Institutional Investor

From the perspective of fulfilling their social responsibility as institutional investors, Mitsui Sumitomo Insurance (MSI) and Aioi Nissay Dowa Insurance (ADI) have announced their support for Japan’s Stewardship Code, a code of behavior laid out for institutional investors. In line with the Code, we carry out a constructive dialogue with investee companies to encourage them to enhance their medium- and long-term value and sustainable growth, and, through the dialogue, we focus on understanding their management issues, their shareholder return policy, ESG, and other non-financial information. From July, 2022 to June, 2023, MSI and ADI conducted constructive "purposeful dialogue” with two companies, resulting in a total of 361 firms.

In addition, through constructive dialogue (engagement) with our investee companies, we are encouraging them to reduce GHG emissions and disclose information in accordance with the TCFD recommendations, aiming for realization of a net-zero society, Specific matters to be confirmed include organizational structure in relation to addressing climate change, their efforts toward GHG emission reduction targets, their plans for technological innovation, and any challenges they face.

<Examples of initiatives for engagement in relation to climate change>

Example 1

Example 2

We had an engagement with a chemical manufacturer which is experiencing technological issues in its attempts to reduce GHG emissions, and we exchanged views on the feasibility of its transition plan with a 2030 reduction target.  
While checking specific schedules for measures such as conversion to biomass fuel and mixed combustion and use of ammonia in that company’s private power generation equipment, we have been conducting a frank engagement on issues such as fuel supply and costs, and we plan to have ongoing engagement with the company.

We had an engagement with a logistics company which has issues in responding to climate change, and exchanged views.
The company has recently expressed support for the TCFD recommendations, and plans to conduct scenario analyses, going forward. Therefore, we helped the company to deepen its understanding of the significance of such analysis by providing information on how important it is and introduction of some case examples where analysis led to the discovery of strengths and weaknesses of strategies in companies which carried out such scenario analyses.

ESG-themed investing including action on climate change

<Sustainability-themed investment>

Net-zero transition requires technological innovation and capital investment toward a drastic reduction of GHG emissions. Factors such as growth of demand for funding and needs for new financial products and services in relevant industries will likely bring about opportunities for financial institutions. The Group is working on ESG-themed investing on the premise of ensuring profitability, such as investment in projects with themes of developing solutions for social issues, including climate change.
As part of our mission as an insurance company that manages insurance funds deposited in the form of premiums, we will continue, with an emphasis on quality, to invest in projects, including those that are profitable and can contribute to both the environment and society.

<Impact Investment>

The Group’s mission is “To create a world-leading insurance and financial services group that consistently pursues sustainable growth and enhances corporate value”. Through this investment activity, we will aim to create positive and measurable impacts on the environment/society while earning financial returns. In addition, we will contribute to attainment of SDGs and creation of a sustainable society by accumulating findings through evaluation/management of impacts on the environment/society while earning financial returns.

Started the Group Joint Impact Investments

ESG Investment/Loan Promotion Structure

As a signatory to the Principles for Responsible Investment (PRI), global standards for responsible investment, we have been reporting to FRI the status of our ESG investment/loan activities and progress, and we have received annual evaluation of our ESG initiatives.
Utilizing the results of the annual evaluation under PRI, we aim to improve our level of ESG initiatives.

Our Principal Thematic Investment

Impact Investment

The group joint investment in overseas impact funds

Through funds investment and with a focus on “climate change solutions,” invest in social impact themes such as “inclusive growth, healthcare, education” as well.


Investment in social impact bonds

Investment aimed at addressing social/environmental issues in such fields as medical/nursing care that the region is facing, in collaboration with Japanese local government

Investment In Next Rise Social Impact Funds (in Japanese only)

Sustainability-themed investment

ESG in general

Investment in Green/Social/Sustainable Bonds

Invested in green bonds and social bonds, etc. issued by domestic and foreign companies.

Investment in sustainable development bonds

Invested in sustainable development bonds issued by World Bank which aim to supports a wide range of projects in education, health, infrastructure, public administration, agriculture, and the environment to reduce poverty and support development in developing countries.

The MS&AD Insurance Group Invests in World Bank’s Sustainable Development Bond

Incorporation of ESG guidelines into the investment/loan processes for externally entrusted funds

Incorporated ESG guidelines into the investment process of an overseas bond fund entrusted to Guggenheim, a close partner.

Investment in SDGs funds

Among companies making positive contributions to attaining SDGs through their products and/or services, invested in those companies with potential to improve corporate value through their business activities.


Financing for renewable energy power plants

Financing and fund investment in solar, wind, and biomass power generation to promote the spread of renewable energy.

Investment in Future Creation Fund

Invested in companies or projects that have positioned intelligent technologies, robotics, technologies useful in bringing about a hydrogen society, motorization, and new materials as core technologies, processing innovative technologies in these fields.

Transition Finance

Supporting corporate efforts to reduce greenhouse gas emissions.

Investment in Asian Development Bank's Water bond

Helping to achieve water security in the Asia-Pacific Region.


Investment in the Water Bonds issued by the Asian Development Bank -Supporting the achievement of water security in the Asia-Pacific region- (MSA) (Japanese only)



Investment in Japan International Cooperation Agency's Social bond

Investments in areas aimed at developing basic infrastructure (water, sewage, sanitation, transportation improvements, etc.), improving access to social services (health, education, vocational training, financial services, etc.), and addressing social issues.


Social contribution through bond investments -Investment in the social bonds issued by the Japan International Cooperation Agency- (MSA) (Japanese only)

Investment in Japan Railway Construction, Transport and Technology Agency's Sustainability bond

The funds used for financing and refinancing of "Railway Construction Operations" and "Shared Shipbuilding Operations" by Japan Railway Construction, Transport and Technology Agency, contributing to the achievement of the United Nations Sustainable Development Goals (SDGs) through both operations.


Social contribution through bond investments -Investment in the sustainability bonds issued by the Japan Railway Construction, Transport and Technology Agency- (MSA) (Japanese only)

Investment in African Development Banks's Industrialize Africa bond

The project aims to industrialize Africa, focusing on the following priority areas for development: (1) electrification of Africa, (2) increased food production, (3) industrialization, (4) regional integration, and (5) improvement of quality of life.


Social contribution through bond investments -Investment in the African Development Bank's "Industrialize Africa Bond"- (MSA) (Japanese only)

Investment in Inter-American Development Bank's Sustainable Development bond

Supporting the fight against novel coronavirus infection through bond investments.


Investment in the Sustainable Development Bonds issued by the Inter-American Development Bank -Social contribution through bond investments (support for measures against the COVID-19 pandemic)- (MSA) (Japanese only)

Investment in Asian Development Bank's Gender bond

Promoting gender equality and women's advancement in the Asia-Pacific Region.


Investment in the Gender Bonds issued by the Asian Development Bank -Promoting gender equality and women's advancement in the Asia-Pacific region- (MSA) (Japanese only)

Investment in Japan International Cooperation Agency’s Peacebuilding Bonds

Supporting projects contributing to peace, stability and rehabilitation of countries, regions, etc. affected by conflicts and/or civil wars.


Investment in the Peacebuilding Bonds issued by the Japan International Cooperation Agency (MSA) (Japanese only)

Investment in agriculture fund

Helping to reduce hunger to zero by investing in a farmland fund that aims to increase productivity.

External Assessment

Investing methods that assess corporate sustainability from the standpoint of Environmental, Social and Corporate Governance (ESG) are spreading. The MS&AD Insurance Group utilizes the assessments provided by major ESG evaluation organizations to improve its sustainability approach. As of July 2023, the Group is a constituent of the following ESG indices and has received high evaluation: