Sustainability-related Policy for Underwriting, Investments and Loans
1. Approach to insurance underwriting, investment, and other activities that take sustainability into consideration (hereinafter referred to as ‘this Policy’)
The SOMPO Group strives to make the world more resilient. We see sustainability as a long-term driver of value, and we rely on insights gained from SOMPO’s Purpose to guide our underwriting, investment, and business decision-making.
To ensure that each company in the Group fulfills its corporate social responsibility, we have established a Group Sustainability Vision and other policies, which sets out its approach to human rights, climate change, nature and community considerations.
Based on the above, we will identify market opportunities and manage risks, and strive to enhance the corporate value of our group through community participation, social responsibility, and inclusion and engagement.
This policy will be reviewed regularly and revised as necessary, taking into account changes in the global environment and business activities, the status of policy implementation, and expectations and requests from stakeholders, in order to assess the appropriateness and adequacy of the risks to be recognized and the sectors and businesses to be covered.
Advancing the Energy Transition
As the most significant challenge humankind faces, we believe the world – and the financial services sector – must take meaningful climate action today. Therefore, we commit to net zero emissions in our underwriting, investments and loans, and operations by 2050.
We promote the transition through our insurance of and investments and loans in renewable energy and other innovative green technologies.
Through participation in various global sustainability initiatives, our group aims to reduce our carbon footprint in collaboration with our customers in order to support their sustainability efforts and promote the realization of the Paris Agreement.
Advancing Social Equity
Under the Group Policy for Human Rights, the Group acts with a commitment to respect the fundamental human rights of all stakeholders in all of our global business activities.
With the aim of enabling each and every employee to maximize his or her strengths, we have positioned inclusion and engagement as an important management strategy for growth, and are working to build a system and corporate culture to realize this goal.
In addition, when underwriting insurance, making investments and/or loans, and/or when entering into new partnerships with business partners (brokers, reinsurers, investment managers, lessees, vendors, etc.), we are guided by our Group Sustainability Vision and other relevant policies.
Aspiring for Excellence in Governance
Based on the Group Sustainability Vision, the Group will make business decisions based on high ethical standards, respecting international codes of conduct and considering the interests of all stakeholders, including customers, employees, local communities, and shareholders.
In addition, we will proactively and fairly disclose transparent information to society regarding our progress toward achieving our goals, etc., in accordance with ISSB and other disclosure standards.
2. Policy for Cross sectors and specific sectors
We have established cross sectoral policies and sector specific policies for our Underwriting, Investments and Loans.
(1)Policy for cross sectors
Regardless of sector, we will assess the adverse environmental and social impacts of the following projects that may have such impacts, confirm the status of our customers' responses to such impacts, and carefully consider and respond to cases when evaluation transactions.
- Projects with negative impact on UNESCO World Heritage Sites
- Projects with negative impact on Ramsar-listed wetlands
- Projects with negative impact on human rights, e.g. use of Child or Forced labor
- Projects that violate the human rights of indigenous peoples*1 or local communities
- Projects related to inhumane weapons, including anti-personnel landmines, biological weapons, chemical weapons, and nuclear weapons
In addition, we will not underwrite insurance or invest and loan for anti-social forces and companies involved in the production of cluster munitions.
*1We refer to the following standards:
United Nations Declaration on the Rights of Indigenous Peoples
United Nations Free, Prior and Informed Consent (FPIC)
(2)Policy for specific sectors
① Coal
Coal-fired power plants are a source of concern due to their high GHG emissions compared to other power generation methods, as well as the release of harmful substances such as sulfur oxides and nitrogen oxides.
Additionally, Thermal coal mine projects pose risks such as increased GHG emissions through combustion in future power plants, ecological impacts from harmful waste emitted from coal mines, and labor safety and health risks or human rights violations for workers.
Considering these factors, we will not underwrite new insurance or make new investments in or loans for the following projects:
- Newly constructed or existing coal-fired power plants
- New or expanded coal mining development projects (Thermal coal)
However, we may carefully consider and respond to cases where there are innovative technologies such as Carbon Dioxide Capture, Utilization, and Storage (CCS, CCUS), carbon recycling, ammonia co-firing, or other innovative technologies in place that are expected to reduce GHG emissions and contribute to the realization of the Paris Agreement.
Additionally, we will not underwrite new or renewal insurance*4 or provide investments or loans to the following companies whose primary business is coal-related activities:
- Companies that derive at least 20% of their revenue from coal-fired power generation, thermal coal mining, and oil sands mining
- Companies of electric utilities that generate at least 20% of their electricity from coal
However, this does not apply to companies that have a plan to achieve Net Zero by 2050.
② Oil sands
Oil sands extraction involves mining and refining processes that require significant amounts of energy and water resources, raising concerns about environmental impacts.
Additionally, there are potential risks such as ecological impacts, damage to biodiversity, and human rights violations against indigenous peoples and local communities.
Considering these factors, we will not engage in new insurance underwriting or investment and loans for the following businesses:
- Oil sands extraction projects
③ Energy extraction in the Arctic
Energy extraction in the Arctic may have adverse effects on the environment, the habitats of rare species and the lives and cultures of indigenous peoples, as well as difficulties in responding to accidents.
Considering these factors, we will not engage in new insurance underwriting or investment and loans in the following businesses.
- Energy extraction projects*2 in the AMAP area (Arctic Monitoring and Assessment Programme)*3
Additionally, we will not underwrite new or renewal insurance*4 or provide investments or loans to the following companies:
- Companies involved in energy extraction projects in the ANWR
However, this does not apply to companies that have a plan to achieve Net Zero by 2050.
*2Energy extraction projects refer to standalone extraction projects.
*3Defined by AMAP, excluding operations in Norwegian territories.
*4These restrictions will not apply to insurance that supports the health and wellbeing of individuals, e.g. workers' compensation insurance.