• 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

1. 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 2021 (April 2021 to March 2022).

[2]Companies other than [1]
Unless otherwise stated, data reported are for calendar year 2021 (January to December 2021).

Group Employee Data

1. Number of employees by region is calculated based on the locations of consolidated companies under Sompo International.
2. Employees of Sompo Japan, of which 99.91% are Japanese nationals, 0.08% are Asian nationals, and 0.01% 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

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 FY2021, we reviewed and recalculated the data collected and calculated prior to FY2020.
2. Sompo International acquired Diversified Crop Insurance Services in December 2020 and increase in the number of its owned vehicles.
3. Includes Sompo Care from FY2021.
4. It includes the results of Sompo Holding and its domestic and overseas consolidated subsidiaries, excluding Sompo Care.
5. In FY2020, we switched from face-to-face programs to online programs.
6. Includes online event participants.

●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.

1. Abbreviation for Weighted Average Carbon Intensity
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) 93 % of listed equities and 84% of corporate bonds in FY2019, 93 % of listed equities and 85% of corporate bonds in FY2020 on a market value basis.).
3. GHG emissions are our company's share of the investee's EVIC (Enterprise Value Including Cash: Corporate 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 FY2021 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

1. For FY2019 and FY2020, the number of employees at domestic and overseas consolidated companies are counted. For FY2021, the number of employees at domestic group companies and overseas consolidated companies are counted.
2. Data from domestic companies (as of April 1st) and overseas consolidated companies (as of December 31).
3. We count managers in departments involved in the output of products and services such as sales excluding support functions such as HR, Legal, 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. 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. Total number of Group employees and agency employees.

*9    Breakdown/Type of Contributions in FY2021（Currency: JPY）

Contributions for trade associations or tax-exempt groups: JPY 147,841,122

●Category of Contribution in FY2021

• Corporate Citizenship Policy (Sompo Japan)

●Amount of Contributions to Initiatives in FY2021
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）

• Data covers regular employees of Sompo Holdings, Sompo Japan, and Himawari Life.

• Data covers the amount of Sompo Japan, and Himawari Life.

●Fair compensation system
Salaries 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. Note that same compensation system is applied to both male and female employees, thus there is no gender pay gap in the Group.

• These figures represent average basic salary for employees in each of the main job classifications at Sompo Japan for FY2021.

Governance Data

Our Corporate Governance Overview for information on our fundamental principles and other information related to Corporate Governance.

●Number of meetings held by the Board of Directors and the Board of Corporate Auditors as well as the participation status of the Board Members

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

●Compensation for Directors and Audit & Supervisory Board Members (FY2021)

• Notice of Convocation of the 12th General Meeting of Stockholders(PDF/2,925KB) (page 56-68)

●Ratio between CEO compensation and employee average compensation
Ratio of CEO compensation to employee average compensation is as follows:follows

（Currency: JPY）

(Notes)
1 The number of “Shares with full voting rights (Others)” includes 1,000 shares of common stock (10 units of voting rights) in the name of Japan Securities Depository Center, Inc., and 961,300 shares of the Company’s common stock (9,613 units of voting rights) held by Mizuho Trust & Banking Co., Ltd. (retrusted to Custody Bank of Japan, Ltd.) under Board Benefit Trust (BBT). These 9,613 units of voting rights are not exercised.
2 Number of common stock in “Shares less than one unit” includes 40 shares of treasury stock held by the Company, 76 shares in the name of Japan Securities Depository Center, Inc. and 63 shares in crossholding stock (held by Hitz Insurance Service Corporation).

• Excluding the data of Sompo Care Inc

• Corporate Governance

●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.

●Whistleblowing System
The number of whistleblowing cases which the group received in FY2021 was as below.

• The number of reports and consultations regarding human rights violations, including harassment, received in FY2021 was 175 (including questionable cases). Also, there were no significant cases of violations involving the payment of fines to the authorities in FY2021.

●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 FY2021.

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

Reference Links

• Assurance by a Third-Party Organization
• Vision/ Policy/ Code
• Management System
• Addressing ESG Issues in Sompo Group Business Operations