Policies Related to Japan’s Stewardship Code

The Principles for Responsible Institutional Investors
(Japan’s Stewardship Code)

Tokio Marine & Nichido Fire Insurance Co., Ltd. (the “Company”) announces that it adheres to the objective of the Principles for Responsible Institutional Investors (Japan’s Stewardship Code) and accepts the Code.
For details of Japan’s Stewardship Code, please refer to the website of the Financial Services Agency.

Website of the Financial Services Agency

The Company’s policy and approach are as follows:

Principle 1
Institutional investors should have a clear policy on how they fulfill their stewardship responsibilities, and publicly disclose it.

Principle 2
Institutional investors should have a clear policy on how they manage conflicts of interest in fulfilling their stewardship responsibilities and publicly disclose it.

The Tokio Marine Group Policy for Management of Conflicts of Interest

Principle 3
Institutional investors should monitor investee companies so that they can appropriately fulfill their stewardship responsibilities with an orientation towards the sustainable growth of the companies.

Principle 4
Institutional investors should seek to arrive at an understanding in common with investee companies and work to solve problems through constructive engagement with investee companies.

Principle 5
Institutional investors should have a clear policy on voting and disclosure of voting activity. The policy on voting should not be comprised only of a mechanical checklist; it should be designed to contribute to the sustainable growth of investee companies.

Principle 6
Institutional investors in principle should report periodically on how they fulfill their stewardship responsibilities, including their voting responsibilities, to their clients and beneficiaries.

Principle 7
To contribute positively to the sustainable growth of investee companies, institutional investors should have in-depth knowledge of the investee companies and their business environment and skills and resources needed to appropriately engage with the companies and make proper judgments in fulfilling their stewardship activities.

ESG investment policy

Tokio Marine & Nichido Fire Insurance Co., Ltd. (hereinafter “TMNF”) aims to be a “Good Company”, which supports customers and society in times of need, for 100 years and beyond. To this end, TMNF incorporates consideration of social and public welfare-related issues into its investment process and contributes to creating a safe, secure and sustainable society, in view of its social responsibility as a property and casualty insurance company.
Specifically, as a signatory of the United Nations-supported Principles for Responsible Investment (PRI), TMNF promotes ESG investment that takes account of not only financial information but also environmental, social, and governance factors, and aims to improve long-term investment performance and counter social issues.

Activities

ESG engagement

TMNF aims to enhance both corporate value and sustainable growth of its investee companies through;

ESG integration

TMNF adopts ESG integration to evaluate financial information and ESG factors comprehensively in its investment decision-making process.
Specifically, TMNF excludes antisocial forces and confirms information on the environmental, social (including human rights), governance and other issues in its investment decision-making process. Through these efforts, TMNF will accumulate knowledge of ESG evaluation and strive to enhance its investment decision-making process.

Promotion Structure

Financial Planning Department conducts ESG investment planning and promote the implementation of ESG investment initiatives in collaboration with Global Investment Department and Corporate Investment Department, which execute transactions.
In addition, by receiving evaluations from an external organization through the PRI's annual reporting and assessment, TMNF identifies challenges in initiatives and processes related to ESG investment and strives for continuous improvement.