Ⅲ. Environmental Leadership

As a member of society, Daichi Life Group recognizes its corporate social responsibility to preserve the environment in each region, to protect the global environment, including climate change, to preserve natural capital and biodiversity, and to build a recycling-oriented society. Daiichi Life Group works to preserve the environment on a daily and continuous basis in accordance with the following action guidelines, and continuously improves its efforts to contribute to the sustainable development of society.

Under the supervision of the Board of Directors and in accordance with its business plan on climate change led by the Executive Management Board, the Group is promoting initiatives related to climate change and natural capital through the Group Sustainability Committee, the Group ERM Committee, and other committees. The status of initiatives is regularly reported to the Executive Management Board and the Board of Directors. By ensuring oversight from the Board of Directors, we have a framework that further strengthens efforts to address climate change and natural capital issues.Alos,sustainability indicators, including an indicator related to progress in reducing CO₂ emissions, have been included as part of evaluation criteria of the performance-based stock remuneration for the Group’s executives.

For details of the Governance and Risk Management on Climate Change and Nature, please refer to Sustainability Report (P116~121).

Daiichi Life pursues sustainability thematic investment to promote investments that contribute to the realization of a sustainable society. Taking into account the global funding gap through 2030 and the AUM (asset under management) of Daiichi Life (DL) and Daiichi Frontier Life (DFL), we have set the cumulative target of 5 trillion JPY for sustainability thematic investments, including 2.5 trillion JPY for the resolution of environmental and climate change issues. We have steadily achieved the target, reaching 3.7 trillion JPY in total for sustainability thematic investments, and 1.9 trillion JPY for the resolution of environmental and climate change issues at the end of FY2025. To expand the positive impact, we also set the target for GHG avoided emissions at 4.5 million tons of CO2e/year by FY2029, and we are making steady progress in achieving 4.21 million tons of CO2e/year in FY2025.

To achieve a decarbonized society, it is important to steadily promote a long-term transition strategy focused on industries that have high GHG emissions. To support this transition, Daiichi Life has formulated a policyPDF file will open in a new window setting out its basic approach to and principles for transition finance. Guided by leading frameworks including the four transition finance strategies identied by GFANZ, we actively support the funding needs of companies undertaking transition initiatives and seek to contribute to the achievement of net zero emissions by 2050.

Daiichi Life considers engagement with investee companies as one of its core initiatives toward achieving Net Zero emissions. In the Daiichi Life investment portfolio, the top 50 domestic GHG-emitting companies account for approximately 70% to 80% of total portfolio emissions each year. Therefore, we identify companies with high emissions as priority engagement targets and conduct ongoing engagement with a particular focus on climate change. We engaged with 69 companies over the three-year period from FY2023 to FY2025, focusing primarily on those with the highest GHG emissions. In principle, we engage in dialogue with these companies at least once every three years to confirm their target setting for achieving carbon neutrality by 2050, the specificity of their transition plans and roadmaps, and the progress of their reduction measures, among other matters. Through this continued engagement, we aim to support the effectiveness of our investee companies’ decarbonization initiatives while simultaneously reducing GHG emissions across our entire investment portfolio and improving corporate value over the medium to long term.

Daiichi Life, which owns investment properties throughout Japan, is advancing initiatives to promote sustainability in both the physical and operational aspects of its buildings. In addition to installing efficient equipment to improve environmental performance during new construction, renovations, and redevelopment, the company works closely with property management firms, including its Group company Daiichi Building, to continuously improve building management and operations, thereby contributing to greater energy efficiency. In addition, we actively promote the revitalization and refurbishment of existing properties, expand the use of renewable energy, and encourage the use of timber, a renewable circular resource. Through these initiatives, Daiichi Life contributes to the realization of a sustainable society while enhancing the well-being of building users.