The Group has established a governance structure for sustainability-related issues consisting of the Board of Directors, the Group Management Committee, and Task-Specific Committees.
*Related operating companies consist of the following eight: MS&AD InterRisk Research & Consulting, MS&AD Business Support, MS&AD Staff Services, MS&AD Systems, MS&AD Business Service, MS&AD Grand Assistance, MS&AD ABILITYWORKS, and MS&AD Ventures.
In addition to matters stipulated by relevant laws and regulations and the Articles of Incorporation, the Board of Directors discusses and makes decisions on important sustainability-related matters critical to the Group's management strategy. These include the Group's management policies, strategies, and capital policies. It also oversees the execution of duties by directors and executive officers.
The Nomination Committee deliberates on significant human resource matters, such as the selection of director, corporate auditor, and executive officer candidates, as well as the appointment of directors and corporate auditors at domestic group insurance companies in which the Company has a direct investment. It also advises the Board on these issues. To achieve the Group’s growth strategy, sustainability has been positioned as one of the necessary expertise areas for Board members to ensure effective discussions from diverse perspectives.
The Remuneration Committee advises the Board on the compensation structure for directors and executive officers, as well as the compensation framework for directors at domestic group insurance companies in which the Company has a direct investment. Performance-based remuneration for directors is determined based on the Company’s performance, incorporating both financial and non-financial indicators, with sustainability as a key metric.
The Group Management Committee discusses key matters related to the Group’s management, including management policies and strategies. It also monitors specific areas of business operations by receiving reports on certain matters approved by executive officers.
Seven Task-Specific Committees have been established with the aim to deliberate on important management matters related to business execution and to facilitate coordination among relevant departments. Sustainability-related issues and initiatives are primarily discussed by the Sustainability Committee and ERM (Enterprise Risk Management) Committee, which are part of these seven committees. The outcomes are then reported to both the Board of Directors and the Group Management Committee for final decision-making.
The Sustainability Committee is chaired by the Group Chief Sustainability Officer (CSuO), a role created in FY2023 to lead sustainability efforts. The committee comprises the presidents of Group companies, the Group Chief Financial Officer (CFO), the Group Chief Risk Officer (CRO), and the Executive Officer in Charge of Diversity, Equity & Inclusion, among others. The committee discusses policies, plans, and strategies for addressing sustainability issues, including the setting of KPIs for risks and opportunities. In FY2023, the Group CSuO chaired four meetings. All discussion outcomes are reported to the Board of Directors.
Topics Discussed
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The ERM Committee, chaired by the Group CFO and the Group CRO, is responsible for discussing and coordinating key matters related to enterprise risk management (ERM). It also monitors aspects such as the status of risk, return, and capital, as well as risk management efforts, including those related to sustainability. The outcomes of discussions held by the ERM Committee are reported to the Board of Directors.
Topics Discussed
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A system is in place to provide directors and other executives with ongoing information and training once they are appointed and throughout their tenure. Additionally, arrangements are made to facilitate information sharing and opinion exchanges between external directors and top management, as well as executive employees. The aim is to establish the internal framework necessary for fulfilling their roles and responsibilities effectively.
In September 2024, an executive study session was held with guest speaker Yoshie Komuro, President & CEO of Work-Life Balance Co., Ltd.
Study Session Details
Date: September 2024
Format: In-person
Speaker: Yoshie Komuro, President & CEO, Work-Life Balance Co., Ltd.
Participants: MS&AD Insurance Group Holdings directors and executive officers, as well as management committee members at its five group insurance companies in Japan (approximately 80 participants)
Lecture Title: “DE&I — Transforming Work Styles to Realize a Revolutionary Shift in Business Styles”
Lecture Summary
Taking the perspective of diversity, equity, and inclusion (DE&I) and work-life balance in the workplace, the guest speaker covered the challenges and emerging trends Japan is currently facing, as well as the directions that companies should be taking. Ms. Komuro highlighted issues that should be tackled as well as the solutions needed to achieve organizational transformation, highlighting examples from various companies. With the Group in the process of promoting a “Significant Business Style Revolution,” the session participants learned about the necessity of mindset and corporate culture change, while engaging in lively discussions on these topics.
With the goal of becoming a corporate group supporting a resilient and sustainable society by 2030, the Group is advancing various initiatives toward creating shared value with society (CSV initiatives). Helping to solve societal challenges through our business activities requires that every Group employee enhances their understanding of CSV and the SDGs. We believe it is essential for each employee to feel that their daily work contributes to the sustainability of society and work together with customers to address sustainability challenges.
Since 2018, the MS&AD Insurance Group has held the Sustainability Contest with the aim of instilling an understanding of our story of value creation and CSV initiatives in our daily operations. The contest recognizes efforts that help solve societal and Group sustainability issues and promote CSV. To date, we have received approximately 2,200 applications from Group companies in Japan and overseas. The contest has contributed to solving sustainability issues while also sharing excellent initiatives within the Group.
In the 6th edition of this contest held in FY2023, a total of 340 submissions were received, and one Grand Prize, five Excellence Awards, and ten other prizes were awarded. The presentations took place at the Shinkawa headquarters and were live-streamed, with 490 employees participating. For the Grand Prize selection, the employees cast their votes along with the directors to determine the winner.
Grand Prize Winner: InterRisk Research & Consulting
Development and sharing of a global Future Flood Hazard Map enabling quantitative assessment of climate change risks
In response to increasing needs for the quantitative analysis of future flood risks due to the growing severity of disasters caused by climate change, InterRisk identified a limited source of available tools and developed the Global Future Flood Hazard Map. The map has been available free of charge since April 2023, alongside new services for companies adopting the framework of the Task Force on Climate-related Financial Disclosures (TCFD).
Next Sustainability Contest
For the FY2024 Sustainability Contest, the aim is to create a space for many employees to participate and reflect on the cycle of sustainability initiatives. The contest will feature new theme-specific awards to recognize diverse approaches to sustainability, such as initiatives by young employees and senior employees, collaboration with external parties, and inter-group cooperation.
In addition to the group-wide Sustainability Contest, Group companies also hold their own competitions. In addition to the annual “Sustainability CSV × DX Awards” at Aioi Nissay Dowa Insurance, and the Sustainability Contest at InterRisk, the first-ever sustainability contest at MSI Aioi Life is being launched in FY2024.
We believe these contests help every employee understand the connection between their daily work activities and sustainability and promote CSV initiatives across the entire Group as they offer tailored products and services that leverage the unique characteristics of each Group company.
Principal Approaches
Study sessions for sustainability transformation (SX) |
Mitsui Sumitomo Insurance is holding study sessions to promote employee understanding and awareness of the importance of Sustainability Transformation (SX) — a management shift aimed at balancing corporate and societal sustainability. Targeting employees in departments involved in sales, claims services, and contact center activities, the training sessions present specific SX initiatives from various divisions of the company. These include using dashcams for insurance services, adopting digital technologies, utilizing chatbots and recycled parts, and tailoring communication to customer needs. To inspire new insights and ideas among employees, SX study sessions are planned for every company site across Japan. |
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Customer dialogue on GHG emissions reduction |
To help achieve carbon neutrality by 2050, Aioi Nissay Dowa Insurance is providing employees with information and various tools to promote decarbonization, along with study sessions. It is also encouraging all employees to obtain Carbon Accounting Advisor certification. This will enable them to propose and provide products and services that support optimal carbon neutrality measures for customers through conversations with them on GHG emissions reduction, thereby assisting customers with their decarbonization efforts. |
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Employee-participation initiatives |
・As part of its carbon reduction initiatives, Mitsui Direct General Insurance is implementing a roadmap with specific GHG emissions control measures and numerical targets. It is also encouraging employee participation in community-based social contribution activities and exchanges with nearby schools. The efforts include multifaceted programs, such as environmental protection efforts, traffic accident prevention, and donation drives to support disaster recovery organizations. |
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Departmental goals for sustainability initiatives |
・At Mitsui Sumitomo Primary Life Insurance, each department has designated a sustainability officer responsible for promoting sustainability initiatives, facilitating internal collaboration on sustainability efforts, and enhancing employee awareness and understanding. Specifically, departments set goals for sustainability initiatives, review midyear and fiscal year-end progress, and encourage employees to consider how their daily tasks connect to priority sustainability issues and what actions are needed. |
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