• General Information on ESG Data
• Group Employee Data
• Reporting of Greenhouse Gases (GHGs)
• Environmental Performance Data
• Social Performance Data
• Governance Data

General Information on ESG Data

To identify our ESG-related issues, we have conducted ESG surveys targeting our Group companies since fiscal year 2011. The tables below show our major ESG data, as obtained from the survey results. The survey is conducted on Sompo Holdings and its consolidated companies in and outside Japan.

●Scope of the report and coverage ratio

(Notes)Formula for coverage ratio

To disclose ESG data that includes our consolidated subsidiaries engaged in various types of businesses (including insurance and financial business, and nursing and healthcare business), this report uses sales revenues as the basis to calculate coverage ratios.

●Reporting period

[1]Companies with head office in Japan
Unless otherwise stated, data reported are for fiscal year 2022 (April 2022 to March 2023).

[2]Companies other than [1]
Unless otherwise stated, data reported are for calendar year 2022 (January to December 2022).

●Changes in the scope of ESG data acquisition

FY2021:Expansion of the scope of data acquisition through the acquisition of Diversified Crop Insurance Services (2020)

FY2022:Expansion of the scope of data acquisition through establishment of SOMPO Light Vortex (2021) and acquisition of ND Software (2022)

Group Employee Data

(Notes)

1.Number of employees by region(except Japan) is calculated based on the locations of consolidated companies under Sompo International.

2.Employees of Sompo Holdings, Sompo Japan, Sompo Himawari Life, and Sompo Care of which 99.54% are Japanese nationals, 0.43% are Asian nationals, and 0.03% are U.S. or European nationals.

Reporting of Greenhouse Gases (GHGs)

• Since fiscal year 2012 we have been receiving annual third-party verification by a certification body.
• Although maximum attention is paid to accuracy and validity, calculation methods that are considered to be reasonable and versatile are adopted for activities for which quantification is difficult.
• The scope of calculation is as indicated by the coverage ratio and the list of reporting companies for each data item.
• Scope 1 emissions, as appearing in the data below, are direct GHG emissions from sources owned or controlled by the Group, such as emissions from the use of gas and gasoline. Scope 2 emissions are indirect GHG emissions resulting from the generation at power stations and other external sites of electricity and heat that are purchased by the Group. Scope 3 emissions are indirect GHG emissions other than Scope 2 emissions that are generated in any part of the value chain of the Group.
• The table below shows activity items subject to calculation.

Environmental Performance Data

(Notes)

1.The Group has been received an annual Assurance Statement by a third-party certification organization.
The coverage of the survey is Sompo Holdings, Inc., and main consolidated subsidiaries, and in the process of data collection in FY2022, we reviewed and recalculated the data collected and calculated prior to FY2021.

2.Total floor space includes the results of Sompo Holding and its domestic and overseas consolidated subsidiaries, excluding Sompo Care.

3.The "Public Seminars on the Environment" has shifted from a traditional face-to-face format to an online program from FY2020 onward.

4.The number of participants in the "SAVE JAPAN Project" includes participants in online-type events.

●GHG emissions from investments and loans (Scope 3, Category 15)
We calculate the GHG emissions of the companies to which our group invest, using a calculation method that is being studied and developed by the Partnership for Carbon Accounting Financials (hereinafter referred to as PCAF), and targets the GHG emissions reductions.
The scope of the calculation is Scope 1 and Scope 2 GHG emissions of companies issuing listed equities and corporate bonds for which the calculation method has been developed by the PCAF.

(Notes)

1.WACI stands for Weighted Average Carbon Intensity. The WACI calculation method has changed from the 2021 figures.

2.Calculated using data provided by MSCI ESG Research for Scope 1 and Scope 2 listed equities and corporate bonds in Japan and overseas (Coverage: 86.4 % of listed equities and 81.6% of corporate bonds in FY2021 on a market value basis.).

3.GHG emissions are our company's share of the investee's EVIC (Enterprise Value Including Cash) base, and WACI is the weighted average of GHG emissions per unit of sales for each investee's portfolio holdings.

4.This report contains information (the “Information”) sourced from MSCI Inc., its affiliates or information providers (the “MSCI Parties”) and may have been used to calculate scores, ratings or other indicators. The Information is for internal use only, and may not be reproduced/redisseminated in any form, or used as a basis for or a component of any financial instruments or products or indices.
The MSCI Parties do not warrant or guarantee the originality, accuracy and/or completeness of any data or Information herein and expressly disclaim all express or implied warranties, including of merchantability and fitness for a particular purpose.
The Information is not intended to constitute investment advice or a recommendation to make (or refrain from making) any investment decision and may not be relied on as such, nor should it be taken as an indication or guarantee of any future performance, analysis, forecast or prediction.
None of the MSCI Parties shall have any liability for any errors or omissions in connection with any data or Information herein, or any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.

5.Numerical data may be adjusted retroactively.

(Note)The amount invested in FY2022 is mainly the total cost of energy-saving construction work, such as work to upgrade air conditioning equipment in our Group-owned buildings. The investment effect is calculated based mainly on the reduction in the consumption of electricity as a result of energy-saving construction work on our Group-owned buildings.

Social Performance Data

(Notes)

1.We count the number of male and female employees by position, in FY2019 and FY2020 the number of employees in domestic consolidated companies and overseas consolidated companies, and from FY2021 onwards the number of employees in domestic group companies and overseas consolidated companies.

2.We count the share of women in management positions responsible for revenue-generating functions among managers in departments involved in the output of products and services, such as sales, with the exception of support departments such as HR, legal, and IT.

3.We count STEM(Science, Technology, Engineering, or Mathematics) related employees who have skills on mathematic or IoT such as actuaries, web developer, etc.

4.We calculate the gender wage gap based on the provisions of the "Act on the Promotion of Women's Active Engagement in Professional Life" (Law No. 64, 2015).

5.We have a provision for paid maternity and paternity leave over and above the legal requirement.

6.We use Q12 provided by Gallup in our engagement surveys.

7.Sompo Japan conducts customer satisfaction survey to customers who were involved in car accidents by sending them questionnaire upon insurance payment.

8.In FY2020, the total number of Group employees and agency employees participating was counted; In FY2021 and FY2022, due to a change in data aggregation methods, only the number of Group employees participating was counted.

●Amount of Contributions to Initiatives in FY2022
We make monetary contribution to the following organizations as part of our commitment to initiatives in Japan and the world as well as to help resolve global social issues through business activities.

（Currency: JPY）

Contributions to trade associations or tax-exempt trade associations are as follows.
FY2019: JPY 243,869,052; FY2020: JPY 156,266,712; FY2021: JPY 147,841,122;
FY2022: JPY 133,798,540

(Notes)Data covers the amount of Sompo Japan and Himawari Life for FY2021, and for Sompo Holdings, Sompo Japan, Himawari Life, and Sompo Care for FY2022.

●Wage Ratio by Gender（by position）
Wages are determined in accordance with role-based ranks which reflect the role and responsibility of each employee. Ranking system is structured so employees will be promoted based on their roles, responsibilities and how much they have contributed to the Group’s performance.
The main reason for the difference in wages between men and women among regular workers is the relatively high wage levels of occupations (IT, digital, etc.) and the high ratio of men in managerial positions. If they are the same, we have a wage system in which there is no difference in wages due to gender.

(Notes)The wage ratio is the ratio of the average wage for women to the average wage for men.

Governance Data

(Notes)In principle, all board members are required to attend all board of directors meeting.

(Notes)Excluding the data of Sompo Care Inc.

• Compliance System

●Initiatives to promote and establish awareness of and sensitivity to risks

Our group provides education for all executives and employees on risk management and compliance at the time of joining the company, and provides awareness and regular education of risk management.

･ Education for Employees:We provide basic knowledge on risk, risk assessment, and ERM, as well as education on our company's ERM frameworks.

･ Education for Executives:We regularly publish reports that describe major risk trends surrounding the Group and the views of risk departments, in order to enhance the management's sensitivity to risk. In addition, we conduct training on specific material risks at the occasion of regular meetings as appropriate.

●Cybersecurity oversight system
The Group established a risk control system based on the “Basic Policy on Sompo Group ERM (Strategic Risk Management)” set out by the Board of Directors, and classifies risks that may have a significant impact on the Group as “material risks”. The Group Chief Risk Officer (CRO) carries out an exhaustive assessment of risks of each business, regularly reports the risk management status to the Managerial Administrative Committee (MAC), Board of Directors, etc. and verifies the efficacy of countermeasures taken. The Chief Information Officer (CIO) is in charge of taking countermeasures for system failures, including cyberattacks, as material risk at the Group ERM Committee.
It is essential to address cyber risks that increase in response to technological advances and changes in the environment to deliver “security and health” which the Group values to customers, business partners, and shareholders. We also established the "Basic Policy on Group Cybersecurity", and are trying to establish an efficient and effective cyber risk management system for the entire Group based on the understanding that cybersecurity initiative is corporate social responsibility.
Moreover, we established a Cybersecurity Group as a specialized organization in the IT Strategy Planning Department to deal with cyber risks that are becoming more sophisticated and complicated every day, and are working on developing strategies and strengthening security across the Group. The major mission of this group of specialists is to jointly manage cyber risks with the persons responsible for cybersecurity at each Group company in both normal times and emergencies, and improve the levels of maturity on a Group-wide basis, while carrying the function of the Computer Security Incident Response Team (CSIRT) of SOMPO Holdings.
We will closely align cybersecurity with business strategy and IT strategy, turn it into competitive advantage in each business, and realize digital transformation in a secure and safety manner.

●Whistle-blowing and Consultation System

• With the aim of preventing misconduct, including violations of laws and regulations, as well as harassment and other problematic behavior, and maintaining and enhancing corporate value through self-regulation, the Sompo Group maintains a whistle-blowing system for internal reporting and consultation by establishing external hotlines in addition to internal hotlines at each Group company, and by continuously informing employees of these hotlines.
• Each Group company has a system in place in accordance with the relevant laws and regulations of each country. In Japan, we have a system in place in accordance with the revised Whistleblower Protection Act (effective June 2022), and overseas, we have a system in place based on both local laws and Group system development standards.

Flow of procedures after receiving reports or consultations

1. This includes persons who have resigned from their jobs within one year, and persons who are employed by other companies and engaged in work for SOMPO in Japan (eligibility varies depending on circumstances in each country).
2. Anonymous reporting is also accepted.
3. Email, telephone, and other reporting and consultation methods are available (available methods vary depending on circumstances in each country).
4. Consultations regarding how to use the system and how whistleblowers and consulters are protected are also available (scope of consultation available varies depending on circumstances in each country).
5. The supervisory department is responsible for leading investigations and corrective actions in cases, as well as analyzing trends and formulating countermeasures.
6. Significant reports (including reports in which directors and executive officers are suspected to be involved) shall be reported to the Audit Committee which is an independent body from the management, and response policies shall be determined by the Audit Committee.

Examples of receiving reports and consultations

Information on how to contact customers and stakeholders is available on each company's website.

●Number of whistle-blowing cases

(Notes)The number of reports and consultations regarding human rights violations, including harassment, was 175 in FY2021 and 180 in FY2022 (including questionable cases).

●Customer privacy protection
Sompo Japan takes appropriate actions within the organization, such as treating what was recognized in the company as a complaint and reporting it to external related party. The table below shows the number of complaints for which we were able to confirm the facts out of the total complaints about customer privacy violation received in FY2022.

The number of complaints received from the regulatory authority was zero regarding the above.

Reference Links

• Third-Party Assurance
• ESG Information Index (Vision / Policy / Guidelines)
• ESG Information Index (Management)
• Building ESG Considerations Into Our Operations
• Corporate Governance