Sustainability Priority Themes

Among the various sustainability fields that relate to its business activities, the T&D Insurance Group has identified social issues that are highly important to society and highly relevant to the Group’s operations. Based on this, we established the following four sustainability priority themes.

We considered various social issues to be targeted, based on what society expects of us as a Group engaged mainly in the insurance business, as well as how we can help develop a sustainable society.

After examining the SDG goals and targets, our Group Sustainability Charter, changes in the social environment, trends in technological innovation, and other sources, we identified 40 (important) target-related social issues relevant to our policies, products, services, and business model.

We identified the initiatives that have been implemented to increase social value with respect to the important social issues through our business activities and our critical business and sustainability management platforms.

We identified initiatives that address important social issues and the shared value of their impact. In order to create shared value, we set themes that promote Group sustainability from the perspectives of the areas of the issues to be addressed and the ways of addressing them.

For more details on (2) and (3), please see “Initiatives for Solving Social Issues and Creating Shared Value”.

We evaluated the importance of each shared value and sustainability theme based on both ^a) importance to society, and ^b) relevance to the Group’s business and initiatives (influence on social issues). We then clarified the priority of the initiatives for the Group to pursue.

We set priority themes for promoting Group sustainability that can have an impact on the creation of shared value by addressing important social issues. Every year, we review priority themes and check whether they are necessary, in order to reflect developments, including changes in society and the environment, in our sustainability management.

The Group Sustainability Promotion Committee formulates annual plan for priority theme activities, and regularly checks progress with its implementation. Those developments are regularly reported to the Board of Directors.

The T&D Insurance Group is committed to creating shared value and contributing to solving social issues through the Group’s broad range of business activities.

Our priority themes for promoting Group sustainability, where they are described, and the corresponding GRI topics are shown below.

The relationships between sustainability themes that are foundational for promoting our priority themes and social issues, where they are described, and the corresponding GRI topics are shown below.

At the United Nations Sustainable Development Summit 2015, “Transforming Our World: the 2030 Agenda for Sustainable Development” was adopted unanimously. The agenda sets forth Sustainable Development Goals (SDGs), consisting of 17 goals and 169 targets, for the realization of sustainable development at the global level through the cooperation of the global community, including national governments, ordinary citizens and private-sector corporations.

The SDGs are aimed at realizing a sustainable world through initiatives that address issues in a wide range of fields. SDGs are in line with the Group’s corporate philosophy of “aiming to be a group that contributes to all people and societies through the creation of value.” The Group will continue to incorporate contributions to SDGs into the process for selecting sustainability priority themes and make efforts to contribute to achieving SDGs through our initiatives to promote sustainability, taking advantage of the features and strengths of the business.

With the main business of the T&D Insurance Group being the life insurance business, contributing to promote healthy and abundant lives for people is one of our most basic responsibility to society. We have positioned “Providing Better Products and Services” as the first principle of the T&D Insurance Group Sustainability Charter. The Group clearly states its commitment to fulfilling its responsibilities to society through the insurance business by offering wellsuited, high-quality products and services that meet customer needs. The provision of products and services that contribute to solving various risks faced by our customers, which occur due to societal changes such as the acceleration of Japan’s declining birthrate and aging population, is both the Group’s mission and an opportunity for growth.

Japan became an aging society in the 1970s, and the percentage of elderly people continues to rise today. Along with this, the disease structure is changing, and the number of people that require nursing care is expected to increase. In addition, problems due to cognitive decline and other issues are also anticipated.

The T&D Insurance Group is striving to ensure that, even in an aging society, everyone can live a fulfilling life by providing coverage and services that elderly customers and their families can use with peace of mind.

Based on the social situation that the aging of society is progressing, we are carrying out Groupwide efforts to improve the convenience and satisfaction of our elderly customers. The Group’s three life insurance companies have named these initiatives the Best Senior Service (BSS), and, through these initiatives, we are developing a variety of service improvements.

The Group’s three life insurance companies recommend that family members be present during the enrollment process. This is to ensure a full understanding of the contents of the insurance policies customers are enrolling in, allowing them to do so with a sense of ease. At Taiyo Life, staff members at headquarters use mobile devices to videoconference with customers to reconfirm customers’ intentions regarding contracts and declaration (for some products). T&D Financial Life employs universal color designs in solicitation materials for customers with color vision deficiencies and universal design fonts that reduce reading mistakes. This helps customers accurately understand the contents, systems, and important matters regarding recommended products.

The Designated Proxy Application Rider is introduced to customers for insurance policies in which the insured is the beneficiary of insurance claims, etc. In cases where it becomes difficult for the insured to file an insurance claim due to sickness, accidents, or other reasons, a representative who is designated in advance (a preregistered proxy) can file a claim.

We introduced the Family Registration Program, which is a system that enables family members registered in advance by a policyholder (registered family) to act as a proxy to verify policy details and obtain various claim forms on behalf of the policyholder.

Taiyo Life launched the Senior Anshin Support Activities in July 2014 as a visiting service activity designed for customers who are seniors. Its staff visit them at least once a year. Now its staff visit or call senior customers at least once a year to confirm contract details and clearly and caringly check for unclaimed benefits, thereby providing peace of mind to each customer.

Daido Life recommends that family members be present for changes made to a policyholder or beneficiary, so that they can understand what the procedures entail and continue with a policy with peace of mind.

T&D Financial Life Insurance provides SMS (short message) delivery services to customers for addressing verification when mail is undeliverable, to encourage payment when premiums are overdue, and to notify customers who have not claimed hospitalization benefits.

To prevent missed claims, we regularly confirm with customers of a certain age or older whether there are any unclaimed insurance benefits.

Taiyo Life offers the Kaketsuke-Tai Service, in which administrative personnel with specialized knowledge visit customers and their families to lighten the burden of benefit claim procedures and provide meticulous support. Moreover, by making the procedures for claiming benefits paperless, customers can check the details of their claims and complete procedures by simply signing on their mobile device.

T&D Financial Life is working to improve convenience for customers by making procedures easier to complete. It is taking steps to expand the procedures that can be completed by telephone, revise claim documents and use colors for them, and eliminate the need to submit insurance certificates, seal registration certificates, and other documents.

In order to provide courteous and careful services in response to customers’ situations, Daido Life has formulated and uses a service manual taking into account the general characteristics of senior customers, such as changes in physical abilities and psychological aspects, as well as visual aids. Through these means, we are striving to provide an environment in which our customers can complete necessary procedures with peace of mind. To ensure that senior customers can complete procedures with confidence, T&D Financial Life provides a dedicated toll-free number for customers 85 years old or older.

As a result of the aging of society, the number of people requiring nursing care under the public long-term care insurance system and the number of elderly people with dementia are increasing. In response, the Group’s three life insurance companies provide insurance products that cover dementia and nursing care.

Taiyo Life offers dementia insurance and other products that are available even to customers with concerns about their health condition or nursing care needs. Daido Life offers Kaigo Relief α, which provides broad coverage for nursing care conditions, including dementia, and enables SME owners and individual business owners to use insurance benefits to ensure business continuity. T&D Financial Life offers riders that provide coverage for nursing care and dementia, such as the Nursing Care and Dementia Prepayment Rider. This rider provides for the advance payment of death benefits if the insured is certified as requiring Care Level 4 or above under the public longterm care insurance system, or if a diagnosis of certain types of dementia has been confirmed.

In addition, Daido Life and T&D Financial Life provide the ancillary Kaigo Concierge^* service with certain policies.

As stated in our sustainability priority theme, Promote Healthy and Fulfilling Lives for People, helping people maintain good health is an important role that life insurance companies fulfill. In today’s aging society, extending healthy life expectancy has become increasingly important, while advances in medical technology have also driven up medical costs. These challenges have further underscored the importance of supporting health. The T&D Insurance Group helps people maintain good health by providing a wide range of products and services, from prevention to protection against unexpected events.

By engaging in prevention and health promotion, individuals can improve their quality of life (QOL) and also ease concerns about the future. To help people maintain good health and lead happy lives, the T&D Insurance Group provides products and services that support prevention.

Our goal at Taiyo Life is to help create a society where everyone can live long, healthy lives in the era of the 100-year life. To accomplish this goal, we are working on initiatives that not only support customers in terms of detecting and improving dementia and critical illnesses at an early stage, but also help prevent disease and improve customers’ health.

As part of these initiatives, we have developed the Preventive Insurance Series of products which supports customers’ prevention efforts through insurance. In October 2018, we launched our Himawari Dementia Prevention Insurance as the first of these products to help deal with dementia, a social issue, and enable older customers to live with peace of mind.

At the end of April 2025, sales of our dementia-related products^* exceeded 1,000,000 policies, which shows that these products are well-received by many people, particularly by our senior customers.

Furthermore, in June 2021, we launched Cancer and Critical Illness Prevention Insurance, the second in our series of prevention insurance plans. This product covers certain conditions, including cancer, strokes, and acute myocardial infarctions, and has been well received by a wide range of customers of all ages, including the middle-aged generation.

At Taiyo Life, for customers enrolled in our Himawari Dementia Prevention Insurance, we recommend dementia prevention services such as MCI Screening Plus, which determines the risk of mild cognitive impairments (MCIs) through a simple blood test, and the Kurort^® Health Walking Experience Tour, which can prevent disease and improve health, among other benefits. In addition, in March 2021, we entered into a business agreement with Ajinomoto, H.U. Frontier, and H.U. Wellness, and offer AminoIndex^® Risk Screening, which can simultaneously evaluate the possibility of an individual currently having cancer and whether they are at risk of future strokes, myocardial infarctions, diabetes, and possible cognitive decline. We also made it possible for customers to undergo MCI Screening Plus and AminoIndex^® Risk Screening examinations as part of mobile medical services, thereby increasing opportunities for such testing and contributing to the health promotion of our customers.

Moreover, we have started providing the Taiyo Life Health Promotion App based on the concept of “improving health in a fun way using an app,” which can support the health promotion of customers from a variety of perspectives, including walking and sleeping. This app has functions that give advice based on the number of steps walked and hours of sleep every week regarding possible illnesses and conditions that can be prevented and for health promotion, so that customers can confirm their own state of health.

Life insurance allows individuals and their families to receive medical treatment without financial worries in the event of illness or injury, and it provides protection to ensure that family members can continue their lives with peace of mind in the event of death. As a Group centered on life insurance, we provide coverage against a wide range of risks, helping people lead fulfilling lives.

The key points of the product revision are as follows:

• New coverage introduced for mild cognitive impairment (MCI), a preliminary stage of dementia
• Minimum enrollment age for simplified issue insurance and other offerings lowered to three

In May 2025, we began offering the Severe Cancer Prepayment Rider, designed to ease the financial burden on patients with advanced cancer. This rider allows for the advance payment of death benefits if standard cancer treatments have been administered but determined to be ineffective, followed by specified palliative care.

Since June 2025, Daido Life has been offering the Diffusion-weighted Whole body Imaging with Background body signal (DWIBS) Cost Coverage Service as an ancillary benefit exclusively for Advanced Cancer Coverage J Type. The Diffusion-weighted Whole body Imaging with Background body signal (DWIBS) is a cancer screening method that uses a high-performance MRI. Because it does not use radioactive substances, there is no risk of exposure, and compared with other cancer screenings, it offers shorter examination times and the physical burden on patients is reduced. Daido Life covers part of the cost of the examination to ease the financial burden on customers and help promote the early detection of cancer.

Asset formation is essential for active participation in social and economic life, allowing people to navigate everyday life and life events with peace of mind and to take on new challenges. In Japan, however, many people, regardless of age or gender, are uneasy about asset formation due to the worsening of the pension system and the rising costs of education, housing, and other essentials. By providing asset formation products tailored to customers’ attributes and diverse needs, the T&D Insurance Group encourages everyone to engage in social and economic activities.

In recent years, changes in the environment surrounding SMEs and the diversification of their needs has been progressing, including longer working lives for business owners due to medical technology advances and other changes, responses to inheritance and business succession, growing interest in social issues, in particular Health and Productivity Management and the SDGs, etc. Amid these changing circumstances, the T&D Insurance Group provides insurance coverage and services to protect the SMEs supporting Japan’s industries.

There are many cases in which SMEs rely on the reputation and technical capabilities of the business owners themselves for their viability. For this reason, continuation of the business sometimes becomes difficult in the case that the business owner dies or becomes unable to work due to a major illness or injury, etc. In preparation for this kind of situation, Daido Life calculates the funds necessary to protect the company and family (“standard coverage” and “living support funds”) to propose reasonable integrated coverage for the corporation and individuals (a full range of protection).

With the arrival of the era of the 100-year life and facing a serious lack of successors, a phenomenon including the aging of SME owners and the lengthening of their working careers is advancing. Meanwhile, structural changes in society and industry are presenting SMEs with more diverse management challenges and risks. These changes in the environment have brought about changes in the insurance needs of SMEs, in particular a growing need for products with coverage that can be flexibly configured according to business conditions and other factors. In response to this situation, we launched the industry’s first “made-to-order” insurance products to provide SME owners with long-term coverage against death, critical illness (cancer, acute myocardial infarction, and strokes), and severe physical disability. Specifically, in July 2019, we began offering L-type [non-participating age-specific maturity term life insurance (specified surrender value suppression rate type)], J-type [non-participating critical illness insurance (specified surrender value suppression rate type)], and T-type [non-participating disability protection insurance (physical disability certificate- linked/specified surrender value suppression rate type)]. These products cater to the diverse needs of customers by allowing them to freely configure not only the insurance amount and period, but even the balance between premium and surrender value.

Recently, business owners have rapidly developed a growing interest in business succession. To accommodate business owners worried about whether they can smoothly hand on their business to a successor, since 2016 we have formed an organization of financial planning (FP) and inheritance consultants^* who are specialists in inheritance and business succession, establishing a system to provide ongoing support to help customers solve their issues. Our FP and inheritance consultants provide advice about transferring a company’s own shares and risk management based on financial analysis, reflecting the results of estimated company share valuations. Additionally, through collaboration with partners, we are offering a wide range of consulting tailored to the issues customers face as experts in inheritance and business succession. These include M&A support services for thirdparty succession, Daido Management Academy as a successor development program, and the provision of solutions from the banking sector through our collaboration with the Resona Group.

In recent years, interest in sustainability has been growing in society, including the 2050 Carbon Neutrality Declaration by the government, and initiatives for the SDGs (Sustainable Development Goals) are becoming large management issues for not only major companies but also SMEs.

Given the above changes in the environment, we are providing a program that helps our customers deepen their understanding of the SDGs. This program also encourages the practice of sustainability management by creating points of contact between companies with an interest in the SDGs and companies possessing technologies and services that contribute to the resolution of social issues and supporting the introduction of services and cooperation among companies.

Company possessing technologies and servicesWe offer “Free Consultation on Recruitment and Training of Human Resources (General Human Resources Consultation)” and various fee-based services in order to respond to a wide range of concerns regarding human resources, which is one of the management issues of SMEs.

The T&D Insurance Group works to make insurance and services more accessible to individuals facing challenges in obtaining insurance. We will continue to promote this initiative to ensure that no one is left behind, allowing everyone to live healthier and improved lives.

In order to respond to the wishes of SME owners to care for all employees regardless of nationality, Daido Life has developed a procedural application system that enables applications in foreign languages for life insurance as welfare benefits and is intended for foreign employees (insured members) who have difficulty understanding Japanese. This system is used by many employees. (Explanatory materials in foreign languages, application form and sample form in foreign languages, videos explaining important matters in foreign languages, and telephone-based interpreter contact points, etc.)

Taiyo Life offers simplified issue insurance to provide coverage for customers with health concerns, allowing them to live their lives with peace of mind. In May 2023, we launched Simplified cancer diagnosis insurance and Simplified cancer treatment insurance, which can be applied for even by persons for whom it is generally difficult to apply for cancer coverage, such as individuals who had cancer in the past. Simplified cancer diagnosis insurance enables policyholders to receive a lump-sum payment upon being diagnosed with cancer, which helps cover the cost of treatment and living expenses. Simplified cancer treatment insurance allows them to receive benefits for each month that the insured undergoes certain kinds of treatment. This means that it is now possible to provide cancer coverage even to customers worried about their health.

In December 2024, we launched Hoken Kumikyoku Best MYWAY Kisei Kanwa. We address more diverse needs by lowering the minimum enrollment age for products with relaxed criteria.

Taiyo Life and T&D Financial Life conduct dementia supporter training courses annually. To enhance these courses, they work with the National Caravan Mate Liaison Council to develop and register In-house Caravan Mates.

Elderly customers and customers with disabilities require special attention to address their unique circumstances. The Group’s three life insurance companies collaborate with the Japan Universal Manners Association to encourage employees at their head offices, branches, and sales offices nationwide to take courses to pass the Universal Manners Test. These companies assign staff with Universal Manners Certifications to their head office, branches, and sales offices to encourage all employees to communicate with customers from the perspective of individual customers and uplift them.

As lifestyles become increasingly diverse, customer needs are also becoming increasingly diverse. The T&D Insurance Group is enhancing customer convenience by using digital technology to provide services that allow customers to complete procedures anytime and anywhere.

In February 2024, T&D Financial Life has been offering the AI Fund Prediction Service. The service, the first of its kind in the industry, predicts unit price movement for separate accounts based on economic indicators and other data. Through the service, customers can view AI-driven predicted unit price change rates (versus the end of the previous month) for separate accounts being handled through the Hybrid Asset Life, Hybrid Anshin Life, and Hybrid Tsumitate Life products.

Furthermore, in January 2021 we introduced Remote Application (non-face-to-face solicitation), which combines Sma-Hoken with sales-representative consultations and application procedure support. Through this Remote Application service, proposals to a greater number of customers, including customers requiring non-face-to-face services as well as distant customers for whom direct face-to-face applications are difficult, etc., are now possible, and these customers can now easily complete policy procedures from their own smartphones or computers anytime and anywhere.

By using our dedicated customer service web portal Taiyo Life My Page, customers can complete procedures without having to visit the company, including address changes and other insurance maintenance procedures, use of loans and other funds, hospitalization benefits, etc., claim procedures, and more. Various procedures and benefit payments can be completed entirely online. In April 2022, we started providing Taiyo Life My Page service—the web insurance certificate and digital certificate—that enables not only policyholders but also insured members and registered family members to confirm policy details.

In May 2023, we launched a service that allows customers to access Taiyo Life My Page to create their own electronic barcode and use it to pay their second and subsequent insurance premiums at a convenience store. We also made it possible to use electronic barcodes for other payments, such as for first premium reserve payments in December 2023, and the repayment of policyholder loans in January 2024.

Furthermore, in September 2024, we introduced a function that enables the service center to share customers’ My Page screens and support procedures via My Page. The number of registered Taiyo Life My Page service members increased by approximately 360,000 from the end of fiscal 2023, reaching approximately 2.09 million by the end of fiscal 2024.

We believe that in order to provide workplace environments that enable diverse people to participate actively, it is necessary to respect the personalities and diversity of all people, while realizing a healthy and safe work environment. At the T&D Insurance Group, we believe that our human resources, working side-by-side, are the most important driving force behind our business activities that we must highly value to fulfill the Group’s corporate philosophy. Since its foundation, the Group has promoted the nurturing of a corporate culture where a diverse workforce can feel job satisfaction and reach its potential, and has established the Basic Group Policy on Human Resources to clarify the Group’s basic approach to human resource management. Based on this policy, we are advancing a variety of initiatives.

We believe that the human resources who work with us are the most important driving force behind our business activities to realize the T&D Insurance Group’s Corporate Philosophy^* and have established the Basic Group Policy on Human Resources as the basic policy for human resources management in the Group.

Strengthening our core businesses within the Group growth strategy requires the strengths of each company with its own business model to be maintained and enhanced, and it is essential that each company continues its initiatives to develop human resources. Additionally, securing and developing highly specialized human resources is required to diversify and optimize our business portfolio outside of the life insurance business sector. In FY2025, we introduced the T&D Holdings Human Resource System with the goal of enhancing our ability to attract talent from the outside labor market and clarify career paths.

While society as a whole becomes more complex and the issues our Group must address become more difficult, it is important for the Group to expand its pool of human resources responsible for Group management from a mid- to long-term perspective to advance Group-wide integrated management. This is why we are pursuing the mobilization and collaboration of human resources across the Group.

Furthermore, it is essential that we establish an environment where all Group employees can thrive, going beyond human resources strategies aimed only at realizing the Group’s growth strategy, in order to achieve sustainable Group growth. The diverse human resources of each company should not be confined to their own business sectors. By working across the Group’s wide range of sectors and creating new value that cannot be achieved by a single company alone, we will lay the foundation for the Group’s sustainable growth.

To this end, the duty of the HR department is to maximize each employee’s potential, provide opportunities to proactively take on challenges, discover new things, and grow, and to support employees with a strong willingness to take on challenges so that they can do so with confidence.

We aim to be a Group where all employees can experience personal growth through their work, fully demonstrate their abilities, challenge their own potential, and gain a sense of pride and responsibility as members of the Group.

The three life insurance companies conduct education and training, primarily through OJT (on-thejob training), group training, support for personal development, and reskilling/relearning. Each Group company encourages autonomous career development by each employee, by actively helping them to acquire qualifications and offering a diverse curriculum, including correspondence education, online courses, and e-learning, according to their educational plans. In addition, each Group company has introduced systems such as management by objectives and a 360-degree evaluation system, to ensure that employees clearly understand their roles and objectives and can experience confidence and satisfaction by achieving their objectives. These initiatives lead to accelerate employees’ career advancement and the development of human resources.

As of the end of March 2025, a total of 420 employees with disabilities, including 67 new recruits for fiscal 2024, worked at the three life insurance companies, which account for 2.57% of the total number of employees. We have put in place several measures designed to create a comfortable workplace for employees with disabilities. As a pre-hire initiative, we encourage the attendance of a placement support worker at job interviews, so that job candidates can go through the screening process without worry. We also hold workplace tours for candidates to prevent assignment mismatches. After hiring, we strive to provide company-wide support, through measures such as preparing a comfortable working environment by introducing specialized computers and other equipment, and taking commuting routes into consideration. In addition, job coaches who specialize in support for employees with disabilities are dispatched to the company, and a placement support worker holds interviews together with the employee and his or her supervisor, and offers advice. We will continue working to create a workplace environment that encourages and supports persons with disabilities in working comfortably, and to expand employment opportunities for persons with various disabilities.

The T&D Insurance Group has accelerated efforts to create a corporate culture where a diverse workforce can feel job satisfaction and reach their potential. The Group recognizes that enabling women to further reach their potential is an important driver of sustainable growth in corporate value, and that their active participation is a crucial management priority for the Group. With this in mind, the Group’s three life insurance companies are working to revise their respective personnel and compensation systems, as well as introducing various support systems to enhance employees’ work-life balance, including balancing work with childcare and nursing care. In addition, by fostering a Group-wide collaboration to reduce total working hours and encourage male employees to take childcare leave, we are making an effort to create rewarding workplace environments where everyone is motivated to play an active role. To steadily advance these initiatives and promote the active participation of female employees, the Group’s three life insurance companies have each set targets for promoting female employees to management positions (25% by 2027 and 30% by 2030), and are working to systematically nurture female employees for promotion to management positions.

The Group’s three life insurance companies have disclosed targets for appointing female employees to management positions as part of their efforts to promote the active participation of women. Through the steady implementation of these initiatives, the ratio of female managers has been increasing each year. Since the gender wage gap is largely attributable to the difference in the ratios of men and women in management positions, increasing the ratio of female managers also contributes to narrowing this gap.

Underpinned by its basic approach to respecting human rights expressed in the T&D Insurance Group’s Human Rights Policy, the Group strives to develop a workplace environment in which each and every employee can fully realize their own potential. From the viewpoint of diversity, each Group company is addressing LGBTQ+ (sexual minorities) issues by running training sessions.

Daido Life treats same-sex partners as spouses under its leave and benefit program and has also established an “LGBTQ Consultation Desk” that gives advice to and deals with a wide range of inquiries from sexual minority employees.

The T&D Insurance Group’s three life insurance companies have also started to allow policyholders to designate same-sex partners as beneficiaries of insurance benefits, just like for a spouse, by submitting documents showing that the two people are in a partnership, such as a partnership certificate issued by a local government.

Daido Life is expanding the areas in which same-sex partners living together are accorded the same treatment as spouses, including procedures for new policies, payments, and policy changes.

The T&D Insurance Group strives to ensure a healthy and safe workplace environment based on the Group Sustainability Charter established by resolution of the Board of Directors. As part of this effort, each Group company has formulated regulations and policies concerning Health and Safety that clarify legal obligations and stipulate matters related to maintaining and promoting employee health. We are promoting various initiatives such as the following.

The T&D Insurance Group has a clinic at its head office, and promotes the health of its employees through periodic health committee meetings at each branch office in collaboration with industry physicians and the labor union. The Group companies also take care of the mental health of their employees and, by contracting external physicians, provide a system for consultation and medical service that employees can utilize free from anxiety.

All employees at T&D Insurance Group companies are invited to undergo a stress check as part of the program’s goal of preventing mental health disorders. The Group encourages self-care among its employees, and has also put in place a system for employees under particularly high stress to receive in-person advice from a physician, and when necessary, to introduce such employees to specialists the Group has contracted with on a part-time basis. Each company also conducts group analysis, which is beneficial in improving the workplace environment.

Our Group promotes measures to curb long working hours and build efficient work systems. These include reducing total working hours and overtime, promoting the use of paid leave,Implementation of No Overtime Days and Leave Work Early Days, implementation of automatic PC shutdowns, planned annual leave. These efforts aim to enhance employee work-life balance and productivity.

To address key health risks among employees, our Group implements diverse health promotion measures across companies. These include providing disease prevention screenings and health programs, encouraging early participation in regular health checkups, and establishing health consultation services. These efforts aim to maintain employees' physical and mental health and improve their lifestyle habits.

The T&D Insurance Group companies are strengthening various initiatives to help employees balance work with family responsibilities, such as their childbirth, childcare, and nursing care responsibilities, so that they can make full use of their skills and increase their performance at work, while fulfilling their responsibilities at home, such as housework, childcare, and nursing care. In addition to various efforts to reduce total working hours and encourage its employees to take paid leave, the Group is also promoting work style reforms by introducing a flextime system, remote work, and satellite offices, thereby enabling employees to choose highly productive ways of working regardless of time or location. Working as one, the Group is committed to realizing a healthy work-life balance.

The T&D Insurance Group companies have established systems for leave and shorter working hours related to childbirth and childcare that go above and beyond what is required by law.

The T&D Insurance Group companies have introduced family nursing care leave systems with durations exceeding legal requirements, enabling employees to care for injured or ill children and other family members in need of care or support.

The T&D Insurance Group companies have established systems to support employees in balancing work with medical treatment, facilitating their return to work after leave, and continuing their careers when their spouses are transferred.

The Group's three life insurance companies have set the ration of female managers as their Key Performance Indicator and are taking action to achieve the target.

The Paris Agreement adopted in December 2015 set holding the increase in the global average temperature to well below 2°C above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5°C above pre-industrial levels as long-term global goals. Achieving net zero emissions and carbon neutrality by 2050 is required to realize this target. While global climate change is a risk that threatens the continuity of the Group’s business activities, the Group believes that it is an opportunity to undertake new activities. With this perspective, the Group is intensifying its efforts to achieve net zero CO₂ emissions throughout its operations, including its asset management operations.

Moreover, in December 2022, the Kunming-Montreal Global Biodiversity Framework was adopted, setting out new global goals and targets for biodiversity. The mission of the framework is to take urgent action to halt and reverse biodiversity loss to put nature on a path to recovery by 2030. In light of the increasing importance of disclosing information about natural capital, the Group registered as a TNFD Adopter in September 2024. It is promoting investment, lending, and engagement in alignment with various social issues and themes, including biodiversity.

To protect the global environment, transition to a low-carbon or decarbonized society and adapt to climate change, it will be necessary to transform the industrial structure on a large scale and modify our behavioral patterns. The T&D Insurance Group also remains cognizant of the fact that we must do our part as a member of society. The T&D Insurance Group formulated the T&D Insurance Group Environmental Policy^* to clarify the Group’s stance on the environment in its business activities and the T&D Insurance Group ESG Investment Policy^* to outline its approach to ESG investment in its asset management activities. The Policy is to carry out business activities with full awareness of the importance of environmental concerns, and to ensure that executives and employees understand that they must act in consideration of the protection of the global environment. The Group will achieve sustainable growth along with society while fulfilling the public mission of life insurance and other businesses, and undertaking its corporate social responsibilities.

The Task Force on Climate-related Financial Disclosures (TCFD), established by the Financial Stability Board (FSB), formulated its recommendations for clarified, comparable, and consistent information disclosure regarding the risks and opportunities posed by climate change. These recommendations were announced in June 2017. Climate change is an issue to be addressed on a global scale. The effects of climate change have significant impacts on the lives of people, through changes in economic behaviors and society worldwide. The T&D Insurance Group has expressed its support for the TCFD recommendations, and is actively committed to disclosing climate-related financial information in an easy-to-understand manner.

Over 90% of the Group’s CO₂ emissions (Scope 1 + 2) arise from electricity use. For that reason, we are endeavoring to reduce CO₂ emissions by setting targets for reducing electricity consumption in order to curb energy usage and advancing the introduction of renewable energy.

Each year the T&D Insurance Group participates in a “Cool Biz” campaign from May to October (setting thermostats of air conditioners at 28°C) and a “Warm Biz” campaign from November to March (setting a room temperature at 20°C). In addition, as a power-saving measure to prevent global warming, the Group turns off or reduces the lighting in offices, meeting rooms, hallways and other areas when they are not in use.

As an initiative to raise the environmental awareness of each of the Group’s executives and employees, the T&D Insurance Group has been conducting a campaign in which it calls for a simultaneous switch-off of all the lights in offices twice a year. In fiscal 2024, this initiative was conducted in July and December. Going forward, we will continue our initiative of a simultaneous switch-off of all the lights which can contribute to the prevention of global warming.

T&D Insurance Group recognizes the importance of global environmental problems and has positioned the global environmental protection as an important issue. With this in mind, T&D Insurance Group has set the four key performance indicators (KPIs) of "CO₂ reduction," "electricity consumption," "office paper consumption," and "green purchasing ratio" for reducing environmental impact and is taking action to achieve the targets through wide range of corporate activities. The "CO₂ reduction target" is positioned as a "non-financial KPI" in the Group Long-Term Vision.

• Our goal is to achieve a 40% reduction in CO₂ emissions by 2025, and further aim for a 70% reduction by 2030. (Scope 1+2, compared to FY2013, per floor area)

For the “Targets and Results” of the four indicators, see “Group-wide Targets and Results” under “Initiatives to Address the Environment” of the Sustainability Library.

With the main business of the Group being life insurance business, contributing to realizing a sustainable society through investment is one of the most fundamental roles of the Group.

The investment behavior of institutional investors, who manage long-term funds, plays a major role in solving various social issues and realizing a sustainable society. Recognizing this role, the T&D Insurance Group secures stable investment income and contributes to the sustainable and stable growth of society through investment activities undertaken in consideration of the environment, society and corporate governance.

The Corporate Philosophy of the T&D Insurance Group is “With our ‘Try & Discover’ motto for creating value, we aim to be a group that contributes to all people and societies.” In our asset management, we aim to secure stable earnings over the long term and contribute to the realization of a sustainable society. Believing that, as a responsible institutional investor, it is important to make investments with consideration for the environment, society, and corporate governance, we defined and published the Group’s stance towards ESG investment in the “T&D Insurance Group ESG Investment Policy.”

T&D Insurance Group has compiled a Responsible Investment Report to provide stakeholders with a deeper understanding of our Group's approach and efforts toward responsible investment.

Taiyo Life, Daido Life, and T&D Asset Management have signed the Principles for Responsible Investment (PRI)^*, which is supported by the United Nations.

In order to further fulfill its social responsibility as an institutional investor, Taiyo Life determined that it was essential to exert its influence for the betterment of society and the global environment through investment and lending activities to a greater extent, and to contribute to the realization of a sustainable society. In line with this thinking, in March 2007, Taiyo Life became the first Japanese life insurance company to sign the PRI. Based on these principles, Taiyo Life gives due consideration to environmental, social and governance (ESG) issues, and promotes asset management to achieve a sustainable society.

Daido Life supports the objectives of the PRI and became a signatory institution to them in November 2016. Based on these objectives, Daido Life is contributing to the formation of a sustainable society through promoting investing and financing that considers ESG issues. Specifically, we are promoting investment and financing that aims to supply funds to companies and businesses that contribute to solving climate change and the development of social infrastructure. We are also carrying out initiatives regarding asset management that incorporates ESG factors such as company analyses of investment and lending processes.

T&D Asset Management, to fulfill its responsibilities of being entrusted as an institutional investor that manages investments, endorses the concept of the PRI, and signed them in March 2012. In accordance with these principles, the company promotes sustainable growth of companies it invests in by fully understanding the situation of the companies, including environmental, social, and corporate governance (ESG) issues, during the investment process. Also the company conducts constructive dialogue (engagement) and exercises voting rights to promote the sustainable growth of these companies. In these ways, the company aims to increase the medium- and long-term investment returns on the assets entrusted to it by customers.

The status of each Group company’s PRI initiatives is reported in PRI Transparency Report. Enter the name of the company of interest into the search box at the following link:

WEB https://www.unpri.org/searchresults?qkeyword=&PageSize=10&parametrics=

As a responsible institutional investor, the T&D Insurance Group has set emissions reduction targets as shown below for the reduction of financed emissions.

Taiyo Life and Daido Life engage continuously with investees and borrowers on the theme of climate change to reduce financed emissions and achieve net zero, and provide financial support to investees and borrowers who are tackling the climate change issue through initiatives for financing projects that use the funds for investments in decarbonization.

We are requesting that our investees and borrowers with the highest CO₂ emissions improve their information disclosure, including publishing emission reduction targets and roadmaps for achieving the targets. In addition, we provide long-term support and encouragement to investees and borrowers by exchanging opinions on reduction efforts and progress, and by sharing awareness.

As an institutional investor who manages long-term funds, the Group believes that it is possible to provide stable funding to investees and borrowers who promote long-term solutions to climate change and other issues. We support companies tackling climate change issues from a financial standpoint by actively investing in green finance, transition finance, and similar instruments that use the funds for investments aimed at decarbonization.

Although investment in and financing of companies with high CO₂ emissions may temporarily cause an increase in CO₂ emissions from the investees and borrowers, in the long term, we believe that we can promote corporate efforts toward decarbonization and contribute to the achievement of the net zero target of society as a whole. We will continue to engage in thematic investment and financing while taking into account the effects and effectiveness of our investments.

The table below shows the CO₂ emissions of Taiyo Life and Daido Life’s investment and loan portfolios as of the end of FY2024.

• CO₂ emissions (emission intensity) of the companies’ portfolios of stocks and bonds of and loans to domestic listed companies, which can be compared to the interim target toward the achievement of net zero emissions, were 0.59 tons per million yen, a 48.2% reduction compared to the FY2020 level (1.14 tons per million yen).
• We are making steady progress towards our interim target of reducing emissions by 50% by 2030.
• Since fiscal 2024, we have been measuring CO₂ emissions by including stocks, corporate bonds, and loans issued by companies listed overseas within the scope. These CO2 emissions amounted to 3,000 tons.
• The Group measures CO₂ emissions for government bond investments based on the greenhouse gas (GHG) emissions measurement method for government bonds, which was published by PCAF (Partnership for Carbon Accounting Financials) in December 2022.
• The CO₂ emissions of the government bond portfolio of the Group as of the end of FY2024 was 6.74 million tons.

• CO₂ emissions attributable to assets managed by T&D Asset Management are shown in the table below. The scope includes stocks and bonds of listed companies (Japan/overseas), as well as Japanese and foreign government bonds held as of the end of FY2024.
• T&D Asset Management also aims to support investees’ efforts to reduce financed emissions through activities such as engagement, thereby contributing to the realization of a decarbonized society.

In response to the increasing importance of natural capital disclosure, the T&D Insurance Group is also taking action in compliance with the TNFD (Taskforce on Nature-related Financial Disclosures) Framework, and registered as a TNFD Adopter in September 2024. Our system of governance for nature-related organizations is the same as that shown on page 58. The Group also conducted an analysis of the nature-related risks of investees and borrowers according to the LEAP approach^*1.

• In the analysis, we quantified the extent of dependencies and impacts of each type of industry in accordance with the dependencies and impacts models of ENCORE,^*2 a tool for assessing natural capital-related risks.

Dependencies:

Analysis results showed that the most dependent natural capital was “Land geomorphology” and “Structural and biotic integrity.”

Impacts:

Analysis results showed that “Disturbance (e.g. noise, light)” and “Emissions of toxic soil and water pollutants” had the greatest impact.

For the first time, we conducted an analysis of nature-related risks in the value chains of selected investees from the Industrials and Real estate sectors, which account for a high percentage of total investment and financing and have high dependencies and impacts on nature. We also conducted an analysis of naturerelated risks for the locations of selected investees (location analysis), and will use the analysis results in dialogue about natural capital and biodiversity initiatives.

• The Group recognizes that its business activities may have impacts on human rights. Based on the T&D Insurance Group Human Rights Policy, we promote business activities that respect the human rights of all stakeholders.
• We believe that initiatives to respect human rights at our investees and borrowers also contribute to maintaining and enhancing corporate value. Accordingly, we promote thematic investment and financing and encourage corporate efforts related to human rights through engagement activities.

We aim to be a group that contributes to all people and society through creating value, and fulfill our responsibility to respect human rights of all stakeholders related to our business activities.

We commit to respecting internationally recognized human rights as set out in the International Bill of Human Rights and the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work. We support the United Nations Guiding Principles on Business and Human Rights, and as a signatory to the United Nations Global Compact, we also commit to implement their Ten Principles.

• We assess the entities we invest in and provide loans in terms of their development of human rights policies and the implementation and disclosure of human rights due diligence activities. We also encourage them to adopt additional initiatives.

Each company in the T&D Insurance Group has a basic policy of taking ESG issues into account in making investment and financing decisions and the asset management regulations of each Group company also clearly specify to this effect. Each Group company has “Standards and Guidelines for ESG Investment and Financing” to promote asset management that considers ESG issues, and uses the following ESG investment and financing methods according to the characteristics of the assets under management.

Taiyo Life and Daido Life strive to increase long-term investment returns and fulfill its mission as an institutional investor to create a sustainable society by taking into account not only financial information relating to investees and borrowers but also assessment results relating to ESG issues and other nonfinancial factors when making investment and financing decisions for all assets under management.

When making investment and financing decisions for all asset classes, including stocks of listed companies, bonds and loans, real estate and project finance, we assess ESG initiatives and integrate ESG into our investment and financing decisions.

We have introduced a negative screening method that excludes companies and businesses from investment and financing if they are unfavorable from the viewpoint of ESG.

The current targets of negative screening are as follows. Going forward, we will continue adding and reviewing targets based on international concerns and trends related to the environment and society.

Given the humanitarian concerns, we prohibit investment and financing in companies that manufacture specific weapons (manufacturers of cluster munitions, biological and chemical weapons, landmines, nuclear weapons, etc.).

Because the consumption of fossil fuels is one of the major factors driving environmental problems such as climate change and air pollution, it is the Group’s policy not to make any new investments or loans to coal-fired power generation projects or coal mining projects. However, we may consider investments and loans in cases where the environmental impact of the project will be reduced, for example through the development and application of new technologies for carbon dioxide capture and storage (CCS) or carbon dioxide capture, utilization and storage (CCUS). It is also our policy not to make any new investments or loans in oil and gas exploration projects in the Arctic (areas north of 66°33’N) where the impacts on climate change and the ecosystem are high, or in oil sands exploration projects, which pose a greater environmental burden during extraction and refining compared to traditional petroleum.

The three life insurance companies (Taiyo Life, Daido Life, and T&D Financial Life) take ESG issues into account in making investment and financing decisions and focus their investments and loans on themes that contribute to creating a sustainable society. The cumulative amount of thematic investment and financing made as of the end of fiscal 2024 was 1,100 billion yen.