SOMPO : Sustainability Report 2021

SOMPO Holdings

Sustainability Report 2021

Group Management Philosophy

We will at all times carefully consider the interests of our customers when making decisions that shape our business. We will strive to contribute to the security, health, and wellbeing of our customers and society as a whole by providing insurance and related services of the highest quality possible.

Brand Slogan

A Theme Park for Security,

Health & Wellbeing

Sompo Group intends to give visible form to the abstract concepts of safety, security, and health, and to realize a vision of the Group that solves social problems through its businesses and contributes to society as a presence that continuously supports the lives and happiness of its customers by appropriate use of advanced technologies, including digital technologies, while remaining close to the lives of "people," who are the heart of society. We therefore adopted this Brand Slogan so that the Sompo Group can be united in our efforts to further accelerate our transformation into

"A Theme Park for Security, Health & Wellbeing."

SOMPO's Purpose

With "A Theme Park for Security, Health and Wellbeing," create a society in which every person can live a healthy, prosperous and happy life in one's own way.

Social value delivered by SOMPO

• Protect people from future risks facing the society
• Create a future society for healthy and happy lives
• Foster the ability to change the future society with diverse talents and connections

Sompo Holdings, Inc. Sustainability Report 2021

01

Overview of Sustainability Communication

Contents
PURPOSE	Top Commitment............................................................................................ 06

Overview of Sustainability Communication

We use the following tools to disseminate information to ensure our stakeholders understand our sustainability initiatives.

Concise

sustainable society. In addition, the major ESG data page shows the performance of Sompo Holdings and its main consolidated subsidiaries compiled on a multi-year basis for easy comparison to report data in detail.

What kind of value do	Efforts to deliver the SOMPO's Purpose on the Basis of "My Purpose"............ 14
we provide and what kind of
society are we aiming for?

For							Shareholder
								convocation notices
		SDGs Booklet
							and communication
stakeholdersmultiple				Integrated			IR material			investorsFor
			Annual Report
						Corporate
						Governance Report
						Annual Securities
								Report
			Sustainability report

Comprehensive

Features of the Sustainability Report 2021

1. Initiatives of SDGs in business management toward the

realization of SOMPO's Purpose

In the Top Commitment, Group CEO & President Kengo

Sakurada describes his thoughts on "SOMPO's Purpose" and

the Real Data Platform (RDP), and the new mid-term manage-

ment plan for its realization. In the new mid-term management

• A Key Initiatives section organized by stakeholder group, which introduces details of our work to address social issues.

Covered Organizations

This Report covers Sompo Holdings, Inc., its affiliated group companies and foundations in and outside Japan. It also features some activities by group company agencies.

Reporting Period

This Report relates mainly to initiatives from April 1, 2020, to March 31, 2021, but also contains some latest initiatives and policies to provide updated information.

Publication

Annually

Publication Period

Last issue: September 2020

STRATEGY

How should we create value?

Towards achieving SOMPO's Purpose............................................................. 18

SDGs in Business Management..................................................................... 20

SOMPO's Materiality........................................................................................ 21

Social challenges and SDGs SOMPO will address........................................... 22

Materiality KPIs................................................................................................ 24

SOMPO Climate Action................................................................................... 26

Response to Recommendations of the Task Force on

Climate-related Financial Disclosures............................................................... 27

Addressing ESG Issues in Sompo Group Business Operations....................... 32

Respect for Human Dignity and Rights............................................................ 36

Sustainability Promotion Structure................................................................... 38

plan, "SDGs in Business Management" is newly positioned as

a Group Business Foundation, and materiality which is priority

management issues for the realization of Purpose, its specific

process, materiality KPI are introduced.

2. Efforts that take advantage of the characteristics of our

company and the latest trends in society

Expectations for companies are rising for its concrete actions in

response to climate change. In our new mid-term management

plan, we introduce "adapt to climate change," "mitigate climate

change," and "contribute to societal transformation" as SOMPO

Climate Action and concrete initiatives are disclosed in the

report. In addition, we continue to quantitatively disclose climate

change risks and opportunities and specific countermeasures in

line with the TCFD framework. Furthermore, in addition to diver-

sity & inclusion, health and productivity management and human

rights, we also introduce initiatives through our core business,

such as the products and services that utilize digital technology.

3. Initiatives to improve information disclosure credibility

We refer to various international guidelines when disclosing

information and this Report in particular has been prepared

in conformity with the Core option of the GRI Sustainability

Reporting Standards.

In addition, since 2001, when the approach of third party

comments on sustainability reports was not common, we have

received third party comments from Mr. Hideto Kawakita, CEO

of International Institute for Human, Organization and the Earth

and the publisher of Socio Management Review, which has led

to continuous improvement of our efforts. Starting in fiscal year

2012 we have obtained assurance by a third-party organization

regarding greenhouse gas (GHG) emissions, and are expanding

this effort to Group companies each year. Since 2016 we have

also obtained assurance regarding the total number of days lost

due to absence. We are working on highly transparent informa-

tion disclosure.

We also include our achievements and future strategies as shown below.

• ESG Data Index and the list of products and services for a

Current issue: October 2021

Next issue: (scheduled for) October 2022

Referenced Guidelines

• GRI Sustainability Reporting Standards*
• ISO 26000: International standard on social responsibility
• SDG Compass: The guide for business action on the SDGs
• Environmental Reporting Guidelines 2012, Japan's Ministry of the Environment
• ISO 14064-1: Specification with guidance at the organization level for quantification and reporting of greenhouse gas emissions and removals
• Sustainability Reporting Guidelines-SPI Report Guide, Network for Sustainability Communication
• The Ten Principles of the United Nations Global Compact
• United Nations Guiding Principles on Business and Human Rights
• Charter of Corporate Behavior and Its Implementation Guidance, Keidanren (Japanese Business Federation), the 7th version
• Guidance for Integrated Corporate Disclosure and Company- Investor Dialogues for Collaborative Value Creation

*The details published on the Sompo Holdings sustainability website and in the Sustainability Report 2021 have been prepared in conformity with the Core option of the GRI Sustainability Reporting Standards. Please refer to the following GRI Content Index.

Planning and Editing

Sompo Holdings, Inc. Sustainable Management Office

26-1,Nishi-Shinjuku1-chome,Shinjuku-ku, Tokyo

160-8338, Japan

TEL: [phone]

Disclaimer

Our sustainability reports include forward-looking statements based on the Group's management policies and plans. These statements were created based on information available at the time of compila- tion. Actual outcomes and results of activities may differ from such statements due to future changes in the business environment.

	Special Dialogue: New Work Style to Achieve SOMPO's Purpose...................	36
CAPITALS	Social and relationship capital.........................................................................	46
Human capital.................................................................................................	52
SOMPO's various capital as
Intellectual capital............................................................................................	62
a source of competitiveness
	Natural capital.................................................................................................	72
GOVERNANCE	Corporate Governance Overview....................................................................	80
Enterprise Risk Management (ERM)................................................................	82
Systems underpinning
value creation
BUSINESS	Domestic P&C Insurance Business.................................................................	86
Overseas Insurance and Reinsurance Business...............................................	87
	Domestic Life Insurance Business...................................................................	87
	....................................................................	87
	Nursing Care & Seniors Business
	Efforts to solve social issues through the foundation........................................	87
DATA	Major ESG Data..............................................................................................	90
Comparative Table of Stakeholder Capitalism Metrics......................................	94
	GRI Content Index...........................................................................................	96
	External Recognition..................................................................................... 112
	Third Party Comments / Response to the Third Party Comments.................. 114

02	Sompo Holdings, Inc. Sustainability Report 2021	Sompo Holdings, Inc. Sustainability Report 2021	03

		What kind of value do we provide and
PURPOSE	what kind of society are we aiming for?
aims to achieve and what kind of social value it will provide over the long term of 20 to 50 years. This is the
		The COVID-19 pandemic has brought about changes in social values and "contributing to a sustainable
		society" as represented by the SDGs is now considered an essential priority for companies in this age.
		With this in mind, the Sompo Group has returned to the very basis of management and clarified what it
		essence of SOMPO's Purpose. By leveraging our three strengths and continuously providing value to soci-
		ety with "A Theme Park for Security, Health & Wellbeing," we aim to create a society in which every person
		can live a healthy, prosperous, and happy life in one's own way.

04					05
Sompo Holdings, Inc. Sustainability Report 2021		Sompo Holdings, Inc. Sustainability Report 2021

Top Commitment

Delivering SOMPO's Purpose:

Start of a new Mid-Term Management Plan (FY2021-2023)

Kengo Sakurada

Group CEO, Director,

President and Representative Executive Officer

Sompo Holdings, Inc.

Introduction

Following last year, the novel coronavirus (COVID-19) disease continues to have an overwhelming influence on people's lives around the world. I would like to express my deepest sympathy to everyone who has been infect- ed, and my sincere respect and gratitude to all medical, healthcare and other frontline workers who are making strenuous efforts every day despite the risk of infection. Also in the Sompo group, many employees are working in various frontlines every day. Especially in frontline nursing care where challenging conditions continue, positive minded employees with strong sense of mission literally use their bodies to protect the happiness and meet expectations of people needing support. I feel proud of such colleagues and renewed my determination to be responsible for contributing to society as a Group even in the current difficult environment.

Huge paradigm shifts are occurring in the mind and behavior of conventional society and people. The increasing frequency and severity of natural disasters due to climate change and the prolonged low interest rate environment, which have substantial effects on the

Group's insurance business, are already the new normal. In addition, the serious problem of low birthrate and population aging in Japan facing the nursing care and

other businesses, is indeed a reality from which we cannot turn our eyes away. Our daily lives have also changed. The wide use of remote work and digital transformation (DX), which were expected to occur sometime in the near future, have advanced rapidly, and new work and life styles are becoming rooted in the Group as well. I believe that these trends are essentially irreversible. The Group will continue to take on the challenge of realizing "A Theme Park for Security, Health

• Wellbeing" which has been our goal, while proactive- ly making change happen and adopting ourselves to change rather than being reactive to it. A new fiscal year has started and we announced "SOMPO's Purpose" and a new 3-yearMid-Term Management Plan. We will work to steadily grow existing businesses and expand new businesses in the digital domain, etc. and surely implement measures to create further value and en- hance corporate value.

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