Responsible Investment

Approach to Sustainability in Responsible Investment

Daiichi Life Group aims to resolve social issues defined in its Core Materiality through corporate activities.
To promote Responsible Investment initiatives, Daiichi Life Group has established “Responsible Investment Policy for Daiichi Life Group” which sets fortth the fundamental principles as a global institutional investor.

Responsible Investment Policy for Daiichi Life Group (Excerpt)

1. Purpose of Responsible Investment by Daiichi Life Group

  • Daiichi Life Group (hereinafter referred to as “the Group”) has the responsibility of making prudent and stable investments in order to be able to pay insurance claims and benefits in its core life insurance business. In addition, as a global institutional investor, the Group seeks to balance the financial returns with the enhancement of sustainability considerations through responsible investment initiatives.
  • To achieve these objectives, the Group establishes this Responsible Investment Policy for Daiichi Life Group (“this Policy”), which sets forth the fundamental principles that each Group company should consider after applying traditional prudent investment considerations such as market conditions, regulatory frameworks, and political/social factors in the regions where they operate, as well as their respective asset management guidelines and mandates.
  • In applying these principles, each Group company shall implement responsible investment approaches in a manner consistent with its local laws, regulations, and supervisory requirements, and the Group company's own investment guidelines or requirements.
    1. 1Consideration of Economic and Impact Value
      The Group aims to fulfill its financial responsibility to provide long-term and stable financial returns while enhancing sustainability, such as environment, health, community, welfare, and education, through the commitment of each Group company to responsible investing and by incorporating various factors including sustainability into investment decision-making. The Group also aims to identify and mitigate potential sustainability factors that could adversely impact the portfolio(s).
    2. 2Initiatives Respecting Regional Characteristics
      As a global institutional investor, the Group appropriately recognizes potential global sustainability factors, and promotes responsible investment initiatives aimed at achieving sustainable investments, while also respecting the unique characteristics of each local community.

2. Scope of this Policy

  1. 1Covered Group Companies
    This Policy applies to Group companies engaged in insurance business(hereinafter referred to as “Covered Group Companies”. Group companies or businesses engaged in other businesses, such as asset management, are excluded.
  2. 2Covered Asset Classes
    Covered Group Companies shall apply responsible investment practices primarily to assets held in their General Accounts over which they have direct investment decision-making authority (e.g., equity, corporate bonds, loans, and real estate). Other asset accounts may be included where the company retains material investment discretion, including (but not limited to) cases under discretionary investment management agreements.
  3. 3Responsible Investment Methods
    After applying traditional prudent investment considerations including market conditions, applicable local laws and regulations, and sustainability related risks, etc., each Covered Group Company should consider implementing responsible investment approaches, where appropriate. One or more of these considerations could include the following, if prudent:
    1. 1Consideration of sustainability related risk factor
      Consider sustainability related risk factors into due diligence, monitoring and investment decision-making process to the extent such factors are available and relevant.
    2. 2Sustainability-thematic investments
      Investments to assets with themes related to social opportunities (such as environment, health, community, welfare, and education), based on the premise of profitability.
    3. 3Impact investing
      Investment that aims to both generate investment income and beneficial social impact.
    4. 4Positive screening
      Investment in entities with favorable sustainability ratings.
    5. 5Negative screening
      Limited exposure to certain industries, entities, etc. from the portfolio, subject to legal and regulatory considerations.
    6. 6Engagement
      Continuous engagement with investee companies with the aim of enhancing their corporate value.

Basic Policy on Responsible Investment for Daiichi Life and Daiichi Frontier Life(Summary)

Daiichi Life and Daiichi Frontire Life regard responsible investment as an important activity that relates to all four Core Materiality issues. Based on this belief, both companies are promoting responsible investment centered on sustainable investments and stewardship activities with the aim of balancing the achievement of stable investment returns over the medium to long term and addressing social issues.

Approach to sustainability in responsible investment

Daiichi Life and Daiichi Frontier Life have established a “Basic Policy on Responsible Investment” which defines the purpose and basic stance of responsible investment, as well as their policy on compliance with Japan's Stewardship Code.

Basic Policy on Responsible Investment

  • We will promote responsible investment through both Sustainable investment and stewardship activities while also participating in initiatives and collaborative engagement in order to maximize the effects of such investment.
  • In terms of all asset management policies and investment processes, we will endeavor to consider sustainability according to asset- and region-specific characteristics and continuously improve the corresponding methods.
  • We will work to create positive impacts for achieving a sustainable society. We will not invest in any business that violates laws or public order, any business related to the manufacturing of inhumane weapons, any business that has a significant negative effect on climate change, regional environments, society, or human rights, or any business that risks having any of the above effects.

Commitment to Japan's Stewardship Code

  • We support the purport of Japan's Stewardship Code. We fulfil our stewardship responsibilities as an institutional investor in accordance with the Basic Policy on Responsible Investment.
  • In order to promote the enhancement of the corporate value of the investee from a medium- to long-term perspective, we will continuously engage with the investee on governance, environmental and social issues, in addition to management strategy, financial strategy, and shareholder return policy, etc., and strive to address issues based on a shared understanding.
  • To fulfill our stewardship responsibilities, we regularly conduct self-evaluations aimed at the improvement of stewardship activities, and we publish those results together with the outcomes of stewardship activities, including engagement with investees.

For details of the status Responsible Investment, please refer to Sustainability Report (P183~238).

Sustainability Report[PDF:12.22MB]PDF file will open in a new window

For more information on Daiichi Life initiatives and Daiichi Frontier Life's initiatives for responsible investment, please refer to the following links.