ESG Data

• General Information on ESG Data
• Group Employee Data
• Reporting of Greenhouse Gas (GHG)
• 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

• 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 care 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 2023 (April 2023 to March 2024).

[2]Companies other than [1]
Unless otherwise stated, data reported are for calendar year 2023 (January to December 2023).

●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); addition of Sompo Care to the scope of "water consumption" data acquisition

FY2022:Establishment of SOMPO Light Vortex (2021), expansion of data acquisition scope through acquisition of ND Software (2022), addition of Sompo Care to the scope of data acquisition for "paper consumption", etc.

FY2023:Expanded the scope of GHG calculation to the entire Sompo Holdings' consolidated companies; expanded the scope of data acquisition for "Upstream transportation & distribution" and "Employee commuting" to the entire Group

Group Employee Data

1. Number of employees by region is calculated based on the locations of consolidated companies under Sompo International.
2. Calculated for employees of Sompo Holdings, Sompo Japan, Sompo Himawari Life and Sompo Care.

Reporting of Greenhouse Gas (GHG)

• 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

1. The scope was expanded from "major domestic and overseas consolidated subsidiaries" to "all domestic and overseas consolidated subsidiaries" when calculating FY2023 results, and the figures for FY2022 and earlier were also recalculated. ( This includes some estimated calculations.)
2. 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 its all domestic and overseas consolidated subsidiaries, and in the process of data collection in FY2023, we reviewed and recalculated the data collected and calculated prior to FY2022.
3. Total floor space includes the results of Sompo Holding and its domestic and overseas consolidated subsidiaries, excluding Sompo Care.
4. The "Public Seminars on the Environment" has shifted from a traditional face-to-face format to an online program from FY2020 onward.
5. The number of students who completed the CSO Learning Program includes those who have completed the NGO Learning Internship in Indonesia for FY2019 onward.
6. The number of participants in the "SAVE JAPAN Project" includes participants in online-type events.

●GHG emissions from investments and loans, and insurance underwriting
We calculate the GHG emissions^*1 of the companies to which our group invest and underwrite, using a calculation method developed by the Partnership for Carbon Accounting Financials (PCAF).

1. Numerical data may be revised retroactively due to revisions to published data and calculation methods, etc.

• GHG emissions from investments and loans^*2

*2 Calculated for Scope 1 and Scope 2 of listed equities and corporate bonds in Japan and overseas using data provided by MSCI ESG Research. (Coverage: 84 % of listed equities and 81% of corporate bonds in FY2022 on a market value basis.)

*3 GHG emissions are our company's share of the investee's EVIC (Enterprise Value Including Cash) base.

*4 Intensity is the amount of GHG emissions per unit of investment. The amount of investment in overseas business is calculated in yen using the exchange rate in 2019 (base year).

*5 WACI is the weighted average of GHG emissions per unit of sales for each investee's portfolio holdings. The WACI calculation method has changed from the 2021 figures.

• GHG emissions from insurance underwriting(Insurance-Associated Emissions)^*6

*6 Calculated for Scope 1 and Scope 2 for companies that hold shares in Sompo Japan's insurance underwriting clients, using data provided by MSCI ESG Research (Coverage: 68.83%, Data Quality Score:1.00 in FY2022, on net premiums written basis).

• Environmental Accounting (GHG Reduction Investment Cost and Effect)

1. The amount invested is mainly the total cost of energy-saving construction work, such as work to upgrade air conditioning and lightning equipment in our Group-owned buildings.
2. 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

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. Figures are as of 1 April of the following year. Sompo Japan has changed its definition of managerial positions and the actual figures for FY2023 reflect the figures based on the changed definition. The actual figure for FY2023 reflecting the figures based on the definition before the change is 29.9%.
3. 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.
4. We count STEM(Science, Technology, Engineering, or Mathematics) related employees who have skills on mathematic or IoT such as actuaries, web developer, etc.
5. Absentee Rate is a Total number of days lost due to absenteeism ÷ Number of scheduled working days per year ÷ Total number of employees × 100 at SOMPO Holdings and major domestic and overseas consolidated companies.
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 FY2023
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）

1. Contributions to trade associations or tax-exempt trade associations are as follows.
   FY2020: 156,266,712 yen, FY2021: 147,841,122 yen, FY2022: 133,798,540 yen, FY2023:106,255,434 yen
2. Political donations in Sompo Japan Inc. are as follows.
   FY2020: 13.4 million yen, FY2021: 13.1 million yen, FY2022: 13.0 million yen, FY2023: 13.0 million yen
   (There are no contributions in lobbying, interest representation or similar activities in Sompo Japan Inc..)

• Data cover amounts for Sompo Japan and Himawari Life for FY2021, and for Sompo Holdings, Sompo Japan, and Himawari Life for FY2022,2023.

●Average annual compensation of employees (by position)
Employee compensation is 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 reasons for the difference in compensation between men and women are the difference in the number of men and women who could be transferred nationwide, the type of occupation, the number of managers, and the number of employees who work shorter hours, etc.
If employee's classification, type of occupation, duties, position, and working hours are the same, we have a wage system in which there is no difference in compensation due to gender.

Governance Data

• In principle, all board members are required to attend all board of directors meeting.

• 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 Group ExCo, 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.

●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.

Reference Links

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