Attaining achievement of a 'Carbon Neutral' status
at the end of the Fiscal Year 2007 (March 31, 2008)
1. We have been actively involved in a variety of activities based upon our corporate philosophy of 'Provision of Safety & Security' and 'Protection of the Global Environment'. The issue of global warming has caused, for example, a serious concern over natural disaster risks, and we recognize that such concern is one of our foremost business issues due to a potential effect on the essential part of our insurance business. |
| 2. | In this context, our company released the 'Comprehensive Program concerning Global Warming' in November 2007. We pledged that, based upon this program, we would attempt to reduce an environmental load caused by our business activities, and in addition, we would put even greater effort into environmental activities through the insurance business itself, education in environmental awareness and social contributions. |
| 3. | In our efforts to reduce our environmental load, by the end of FY2012 we aim to cut back carbon dioxide emissions by 6% compared to actual results in FY2006, reaching this goal through self-help efforts to reduce the environmental load and the purchase of green electricity. |
| 1 | The carbon neutral state means that carbon dioxide emitted in the course of a company's business activities is in volume equivalent to carbon dioxide absorbed and reduced by way of afforestation, use of natural energy and acquisition of carbon credits by such a company. |
| 4. | In order to achieve the goals described in the above Paragraph 3, we act upon our policy that we will focus first on the reduction of carbon dioxide emitted in the course of domestic business, and then concentrate on the purchase of green electricity, and furthermore, removal of carbon dioxide by the mangrove afforestation as well as the offset of carbon dioxide by acquisition of carbon credits2. |
| 2 | In European nations with advanced environmental activities, general steps of such activities are as follows: (1) reduction of carbon dioxide emission through efforts by each company; (2) switch to alternative energy such as green electricity; and (3) offset of the volume equivalent to reduced carbon dioxide by purchasing carbon credits in order to make up the reduction volume insufficient in Steps (1) and (2). |
| 5. | We also participate in international initiatives such as the 'United Nations Global Compact', 'United Nations Environment Programme Finance Initiative (UNEP FI)' and 'Carbon Disclosure Project (CDP)' for the purpose of fulfilling our corporate social responsibility. Meanwhile, we are pleased to announce that as a result of our mangrove afforestation program (launched in 1999 and deployed mainly in Southeast Asia), we planted mangrove trees in areas covering 5,901 hectares in total by the end of FY2008. Other than the removal of carbon dioxide, the mangrove afforestation is also effective in conserving an ecological system and creating employment in local communities. We aim to continue this mangrove planting project for 100 years. |
| 6. | Efforts to reduce CO2 emissions (reference) |
| (1) | Total CO2 emissions at all of the domestic offices during FY 2007 amounted to 65,401 t- CO2. (See the table below for breakdown.) |
| Electricity used | Gas used | Other fuels used | Gasoline used | Sum total3 |
|---|---|---|---|---|
| 49,063 t- CO2 (75%) |
4,535 t- CO2 (7%) |
4,492 t- CO2 (7%) |
7,310 t- CO2 (11%) |
65,401 t- CO2 (100%) |
| 3 | The sum of individual items does not equal the sum total because of rounding errors. (The scope of calculation of CO2 emissions is based on CO2 emissions associated with use of energy including electricity and gas in facilities, and use of company cars. The relevant scope and method of calculation are in conformity with the 'Mandatory Greenhouse Gas Accounting and Reporting System' based on the 'Act on the Promotion of Global Warming Countermeasures'.) |
| (2) | We have purchased green electricity including electricity generated by wind power since FY 2002, and purchased an amount equivalent to one million kWh in FY 2007. |
| (3) | In addition to the green electricity referred to in (2) above, we have taken into consideration the amount of CO2 offset by the amount of CO2 removals during FY 2007 by the mangroves that we have planted and by retiring4 Kyoto credits from the wind power generation business in India, etc., that we have already purchased, into the Retirement Account of National Registry in Japan. |
| 4 | We currently apply the procedure for retiring Kyoto credits into the Retirement Account of the Japanese government. |
| (4) | We have confirmed that the combined amount of offset as shown in (2) and (3) above exceeded CO2 emissions as shown (1) above. |
| CO2 emissions associated with domestic business activities in FY 2007 | 65,401 t- CO2 |
| Green electricity purchased in FY 2007 | -555 t- CO2 |
| CO2 removals by mangroves in FY 2007 | -30,000 t- CO2 |
| CO2 offset by retirement of Kyoto credits | -35,000 t- CO2 |
| Net Total | -154 t- CO2 |
| 7. | At the time of transition to 'Carbon Neutral', not only the volume (or its range) of the emission of greenhouse gasses, the absorption of greenhouse gasses through afforestation program and the purchase of carbon credits during FY2007 (from April 1, 2007 through March 31, 2008) were calculated and confirmed by our company, but also such calculation results were verified by a third-party organization (Ernst & Young ShinNihon Sustainability Institute Co., Ltd., a subsidiary of Ernst & Young ShinNihon LLC), in accordance with the 'Agreed-upon Procedures'5. |
| 5 | 'Agreed-upon Procedures' 'Agreed-upon Procedures' means the procedure in accordance with '14. Agreed-upon Procedures' specified in the 'Practical Guidance of Assurance Engagements Other Than the Financial Statement Audit' (exposure draft) (The Japanese Institute of Certified Public Accountants; July 8, 2005) and '14. Agreed-upon Procedures' specified in the 'Research Report Concerning Assurance Engagements Practiced by Certified Public Accountants' (exposure draft) (The Japanese Institute of Certified Public Accountants; August 8, 2008). In the 'Agreed-upon Procedures', the client and the practitioner reach an agreement in advance regarding the scope and the procedure, and then only findings from such Agreed-upon Procedures are reported to the client. Unlike audits, the Agreed-upon Procedures do not give any assurance to target operations. |
| 8. | Although we succeeded in the transition to the 'Carbon Neutral' state as of the end of FY2007, we pursue the achievement of further goals as mentioned above. We intend to promote not only the reduction of carbon dioxide in the course of business activities but also the further protection of the global environment by way of insurance business (products and services), environmental awareness and social contribution activities, and thus play a leading role in the prevention and mitigation of global warming. |
