The UN Global Compact
The T&D Insurance Group has become a participant of the United Nations (UN) Global Compact (UNGC), a cooperative framework between the UN and corporations to realize sustainable growth advocated by the UN.
The UNGC proposes ten principles applying to the four areas of the protection of human rights, the elimination of unfair labor practices, the protection of the environment and the prevention of corruption, and encourages companies to act in a responsible manner.
The T&D Insurance Group endorses the UNGC's philosophy, and T&D Holdings, representing the Group, has signed a memorandum declaring its support for the ten principles.
UNGC's Ten Principles
|Human rights||Principle 1||Businesses should support and respect the protection of internationally proclaimed human rights; and|
|Principle 2||make sure that they are not complicit in human rights abuses.|
|Labor||Principle 3||Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;|
|Principle 4||the elimination of all forms of forced and compulsory labor;|
|Principle 5||the effective abolition of child labor; and|
|Principle 6||the elimination of discrimination in respect of employment and occupation.|
|Environment||Principle 7||Businesses should support a precautionary approach to environmental challenges;|
|Principle 8||undertake initiatives to promote greater environmental responsibility; and|
|Principle 9||encourage the development and diffusion of environmentally friendly technologies.|
|Anti-Corruption||Principle 10||Businesses should work against corruption in all its forms, including extortion and bribery.|
Principles for Responsible Investment (PRI)
In the T&D Insurance Group, Taiyo Life, Daido Life and T&D Asset Management have endorsed and signed the Principles for Responsible Investment (PRI)*. PRI are guidelines that encourage global financial institutions and institutional investors to promote investment activities in consideration of Environmental, Social and Governance (ESG) issues.
* The UN Principles for Responsible Investment (PRI) were formulated by the UNEP Finance Initiative and the UN Global Compact as a set of principles that would facilitate the reflection of the ESG viewpoint in the decision-making processes of financial investors.
The Six Principles of PRI
- We will incorporate ESG issues into our investment analysis and decision-making processes.
- We will be active owners and incorporate ESG problems into our ownership policies for stocks and practices.
- We will seek adequate disclosure on ESG problems by the entities in which we invest.
- We will promote acceptance and implementation of the Principles within the investment industry.
- We will work together to enhance our effectiveness in implementing the Principles.
- We will each report on our activities and progress towards implementing the Principles.
Principles for Financial Action towards a Sustainable Society (Principles for Financial Action for the 21st Century)
T&D Holdings and its direct subsidiaries endorse the Principles for Financial Action towards a Sustainable Society (Principles for Financial Action for the 21st Century)*, and have become signatories to this voluntary initiative organized by Japanese financial institutions.
* The Principles for Financial Action for the 21st Century were formulated as guidelines for financial institutions that wish to fulfill their social responsibilities and play a role in the formation of a sustainable society. The principles were formulated by the Ministry of the Environment's Drafting Committee for Environmental Finance Principles, in which financial institutions from wide-ranging areas within the sector voluntarily participated.
Principles for Financial Action for the 21st Century
- We will recognize our roles and responsibilities, taking into account the precautionary approach, and promote those actions that contribute towards shaping a sustainable society.
- We will contribute to the formation of a sustainable global society through the development and provision of financial products and services leading to the development and increased competitiveness of "industries contributing to a sustainable society" as represented by the environmental technologies and services sector.
- From the perspective of regional development and improvement in sustainability performance, we assist the environmental programmes of small and medium enterprises. We will also back activities that will raise environmental awareness amongst citizens and support disaster readiness and community activities.
- In the formation of a sustainable society we will recognize the importance of cooperation with diverse stakeholders and will not only participate in its activities but will endeavor to take a proactive role.
- We will not be limited to complying with environmental laws and regulations but will take active steps to reduce our own environmental footprint through resource and energy savings as well as encouraging our suppliers to do likewise.
- We will recognize activities that will further profile sustainability as a business issue and will endeavor to disclose information on our activities.
- In order to implement the above actions we will aim to raise the awareness of environmental and social issues of our own board and support them to take an active role through their normal duties.
The Principles for Responsible Institutional Investors (Japan’s Stewardship Code)
Three of the Group’s companies, Taiyo Life, Daido Life, and T&D Asset Management endorsed and expressed their commitment to the Principles for Responsible Institutional Investors (Japan’s Stewardship Code) in May 2014. Details regarding the policies of each company with respect to the Principles, policy on exercising voting rights, status of exercising voting rights, and self-evaluations are published on the companies’ respective websites (Japanese).
* Since T&D Financial Life does not directly invest in listed stocks, and is not planning to do so in the future, it is not expressing support for the Stewardship Code.
The Principles of the Code
So as to promote sustainable growth of the investee company and enhance the medium- and long-term investment return of clients and beneficiaries,
- Institutional investors should have a clear policy on how they fulfill their stewardship responsibilities, and publicly disclose it.
- Institutional investors should have a clear policy on how they manage conflicts of interest in fulfilling their stewardship responsibilities and publicly disclose it.
- 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.
- 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.
- 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.
- Institutional investors in principle should report periodically on how they fulfill their stewardship responsibilities, including their voting responsibilities, to their clients and beneficiaries.
- 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.
Basic Policy on Corporate Governance
T&D Holdings has expressed its acceptance of the Corporate Governance Code that has applied to listed companies since June 2015 for the purpose of ensuring the T&D Insurance Group’s sustained growth and the enhancement of its corporate value over the medium- to long- term. T&D Holdings has also defined its principles-based initiatives and policies in the Basic Policy on Corporate Governance.