Sustainability Vision and Policy

Sompo Group has established following policies including the “Group Sustainability Vision" and the Group as a whole implements various initiatives to fulfill its corporate social responsibility.

We, the Sompo Group will positively engage our stakeholders in forward looking dialogue, respect international standards and codes of conduct, address environmental issues of climate change, biodiversity, and social issues of human rights and inclusion and engagement in the course of our business operations in a transparent, fair and open manner.
By constantly maintaining a long-term outlook, and by providing services and products that contribute to security, health, and wellbeing, we will strive as a solutions provider to promote the realization of a resilient and sustainable society.

Group Environmental Policy

We, the Sompo Group will contribute to developing a resilient, inclusive and sustainable society so that future generations can inherit our irreplaceable Earth, by addressing environmental issues in the course of our core business operations and working proactively to resolve environmental issues through active dialogue and engagement with stakeholders.

< Action Guidelines >

1. Providing products and services to make a more resilient society
   We will provide products and services that increase preparedness against the risk of natural catastrophes in order to contribute to adapting to climate change, building a low carbon society, conserving biodiversity and promoting stakeholders’ eco-consciousness.
2. Promoting resource conservation through the entire value chain
   We will assess the environmental impact of our business including the emission of waste and comply with environmental laws and regulations. We will promote resources and energy conservation as well as recycling activities throughout the entire value chain by cooperating with various stakeholders.
3. Raising awareness of environmental issues and corporate citizenship
   We will broadly promote environmental education and awareness of environmental conservation by providing environmental information with the unique aspect of a global group engaged in a wide range of business centering on insurance. Furthermore, we will proactively encourage our employees’ individual voluntary efforts as a global citizen to conserve the environment through involving in the local community.
   
   To enable continuous improvements, we will periodically review the above-mentioned activities to reflect our environmental objectives and targets.

Group Policy for Human Rights

We, the Sompo Group pledge to respect human rights of our all stakeholders in global markets including our group and all value chains. We will respect the international norms of behavior^*, and simultaneously act with the highest ethical standards towards an inclusive, resilient, equitable and sustainable society. Based on the perspectives set out below, we will address the human rights impacts of our activities while communicating with our stakeholders, establish an effective company approach and act, and continuously improve our approach and information disclosure. We respect human dignity as the foundation of universal human rights.

1. Respecting human rights of stakeholders
   We will respect human rights of all stakeholders associated with our global business activities, including customers and suppliers. We will avoid, prevent or mitigate indirect adverse impact on human rights of our stakeholders. Should there be any abuse of human rights, we will address it promptly and adequately.
2. Respecting human rights of employees
   In all facets of labour practices, we will not discriminate on the basis of race, color, ethnic origin, religion, creed, nationality, birthplace, social status, descent, gender, sexual orientation, gender identity, sexual expression, pregnancy, marital status, age, disability or any other status. We, as a company, will take a global perspective, recognize individuality and inclusion, respect every employee's challenging spirit and speedy action, and ensure a dynamic working environment by maintaining and promoting every employee's health.
3. Promotion of human rights in global markets
   We will comply with the laws and regulations of the countries and regions where our business operations and value chains are based. At the same time, we will conduct our business by taking into consideration the local culture and customs, as well as the environment and society in accordance with the expectations of stakeholders, and take into account local human rights issues. We will conduct the highly transparent business and contribute toward economic and social development and creation of social values of local communities.
4. Expectations for suppliers and business partners
   Our requirement for suppliers, business partners and other stakeholders is to respect human rights based upon the international norms of behavior. In the event that we identify any adverse impacts of human rights, we will encourage them to take appropriate measures through engagement such as dialogue and consultation.
5. Human rights due diligence
   We will continuously establish a system of human rights due diligence to identify and assess any actual or potential human rights risk in order to prevent or mitigate these adverse impacts on human rights Sompo Group may cause or contribute to.
   
   This policy does not necessarily replace local laws and regulations. We will actively engage in this policy while complying with local laws and regulations.

• International norms of behavior refers to the guidelines on human rights including the Universal Declaration of Human Rights, International Covenants on Human Rights(International Covenant on Civil and Political Rights, International Covenant on Economic, Social and Cultural Rights), ILO International Labor Standards, The United Nations Guiding Principles on Business and Human Rights known as "Ruggie Framework", Sustainable Development Goals, The United Nations Global Compact, Women's Empowerment Principles(WEPs), The OECD Guidelines for Multinational Enterprises and ISO26000.

Group Sustainable Procurement Policy

We, the Sompo Group strives to maximize its beneficial impacts on the environment, society, and economy through procurement processes aligned with the following sustainability principles:

1. Fair and equal transactions
   We will conduct fair and equal transactions with all suppliers by engaging in anti-corruption efforts and by giving full consideration to quality, delivery time, economic feasibility, and social issues such as the environment and human rights.
2. Compliance with laws and regulations
   We will comply with all laws and related regulations in the countries and regions where we operate, and respect relevant social norms and their intent in our procurement practices. We will strictly manage the information obtained through our procurement activities.
3. Consideration of global issues
   We will collaborate with suppliers and other stakeholders to integrate sustainability into our value chain to maximize our contribution to climate change adaptation and mitigation, biodiversity conservation, and a circular economy; to tackle human rights issues in the global market, such as poverty and unequal opportunities for workers; and to promote better work-life balance, and inclusion and engagement.

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 sees sustainability as a driver of long-term value creation, and contributes to the realization of a resilient and sustainable society by making its business decisions, including underwriting and investment, based on SOMPO's Purpose.
To fulfill our corporate social responsibility, we have established the Group Sustainability Vision and its subordinate 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 and Building a Sustainable Future
We promote “SOMPO Earth Positive Actions,” a groupwide strategy grounded in respect for human rights that takes an integrated approach to climate change, biodiversity, and the circular economy.
We support the transition to a low-carbon economy through insurance, investments, and loans in renewable energy and other transition technologies, thereby reducing GHG emissions and driving climate change mitigation. Concurrently, we support climate adaptation by providing disaster prevention and risk reduction services, and products like agricultural insurance for weather risks. We also provide solutions that support biodiversity conservation, and the circular economy, contributing to a more sustainable and resilient society. We are committed to achieving net zero emissions associated with our underwriting portfolio, investments, loans, and operations by 2050.
Through our global sustainability initiatives, we support our customers in advancing the goals of the Paris Agreement. By working with our customers, we aim to reduce emissions, strengthen resilience, and contribute to positive environmental outcomes.

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.

Disciplined Decision-Making and Highly Transparent Disclosure
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.

Approach to engagement (Policy on Effective Dialogue)
To support realizing net zero by 2050 and just transition, we will create new opportunities for collaboration and co-creation through engagement with our insurance customers and investee companies. We will propose and provide insurance products and solutions that contribute to solving our customers' challenges.
Concurrently, to ensure the effectiveness of these efforts, we are calling on 30 priority companies*, which account for over 80% of GHG emissions in our insurance underwriting portfolio, to formulate a "transition plan" towards net zero by 2050. We will, in principle, phase out business relationships with companies that have not formulated such a plan following dialogue through the end of FY 2035.
*The selection of the 30 priority companies is primarily based on their GHG emissions within the Sompo Group's insurance underwriting portfolio. Furthermore, the selection comprehensively considers sectors with high dependence on and impact on natural capital, identified with reference to frameworks such as the TNFD (Taskforce on Nature-related Financial Disclosures), as well as the overall impact on our investment and financing portfolio. In the base year for selection (FY2024), these 30 companies account for over 80% of the GHG emissions associated with our insurance underwriting and over 70% of the GHG emissions associated with our investments and financing.

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.

Corporate Citizenship Policy (Sompo Japan Insurance)

Our company and its Group companies will make proactive contributions to society with the objective of resolving community and global social issues, while supporting individual employees’ voluntary efforts.

1. Corporate citizenship activities
   We will work proactively to realize a sustainable society for future generations in collaboration with various stakeholders, including NGOs/NPOs, civil society organizations and government, by focusing on three areas: the environment, welfare and fine arts, in which we have accumulated expertise and achievements.
2. Support for individual employees’ social contribution efforts
   We will support and encourage employees’ voluntary activities in contributing to society by developing human resources responsive to social issues.