ESG Investment

ESG investment method

Components of the Company's ESG investment method are defined as follows.

ESG Investment Method Definitions
ESG integration Systematically incorporate ESG factors into the process of investment decisions
Positive screening Build a portfolio of companies with high ESG ratings
Negative screening Exclude certain industries, companies, etc. from the portfolio
ESG themed investment Investments to assets with themes that lead to solutions to social issues, based on the premise of profitability
(Climate Change Solution Investment: of which Investment that contribute to solving climate change issues)
  SDGs bond Investment to international organizations that promote projects that contribute to the achievement of the SDGs (Green Bonds, Social Bonds, Sustainability Bonds, etc.)
  SDGs project Funding for projects that contribute to the achievement of the SDGs (social infrastructure development, environmental conservation, etc.)
  Impact Investment Investment that aims to both generate investment income and social impact

< Investments to Create a Positive Impact on Society (the Definition of Impact Investment) >
We began impact investments centered upon unlisted equities in FY2017 (listed equities added from FY2020). We select these according to the vision of solutions and innovations to overcome social issues and regularly monitor the social impact after investing.
In an effort to further expand the positive impact of the investment portfolio, from FY2022, investments that require the identification and measurement of impact due to the characteristics of the investment product will also be included in "impact investments" and impacts will be monitored.
We also will measure the social impact of ESG-themed investments and encourage investees to disclose their impact through engagement with investee organizations.

Investments to Create a Positive Impact on Society

Initiatives for ESG-Themed Investment

Climate Solution Investments and Positive Impact

Climate Solution Investments and Positive Impact

Promotion of Investments to Solve Social Issues

We strive to create a positive impact by investing in assets that contribute to solving social issues.
Avoided GHG emissions from investment of green infrastructure projects were 1.23 million tons CO2e, equivalent to 27% of emissions from our portfolios in FY2022 (listed equities, corporate bonds, and real estate).

Promotion of Investments to Solve Social Issues

  • * The avoided GHG by investment of renewable power generation businesses is calculated using the PCAF concept. The PCAF is an international initiative developing methods to measure and calculate GHG emissions in investment and financing portfolios.

Examples of Main thematic investments

1.No poverty
  • ■ Loan for Microfinance via the Grameen Crédit Agricole Foundation
In May 2020, Dai-ichi Life provided ¥2 billion to a microfinance loan scheme for developing countries in which Crédit Agricole Tokyo Branch acts as the borrower. The funds obtained through the loan scheme are provided to the Grameen Crédit Agricole Foundation so that they are lent to local microfinance institutions that aims to support the promotion of women's empowerment and economic development.
2.Zero hunger
  • ■ Investment in the "Feed Africa Bond" Issued by the African Development Bank
In November 2016, Dai-ichi Life invested approx. ¥5.2 billion in the "Feed Africa Bond" issued by the African Development Bank. The funds obtained through the Feed Africa Bond are allocated to projects run by the African Development Bank to support agriculture and agricultural business with the aim of resolving food insecurity, which is a serious issue in Africa where the population is expected to grow.
3.Good health and well-being
  • ■ Financing for Afreximbank
In March 2022, Dai-ichi Life invested ¥3 billion into repackaged products backed by financing for the African Export-Import Bank (Afreximbank).
The funds the Company has invested in will be directed to medical and pharmaceutical projects in African countries, including much-needed support to procure and supply COVID-19 vaccines. Through this investment, the Company will provide financial support for Afreximbank's efforts to help African countries affected by the COVID-19 pandemic.
4.Quality education
  • ■ Investment in Education Bond Issued by the Asian Development Bank ("ADB")

Source: ADB

Dai-ichi Life invested approximately ¥6 billion in Education Bonds issued by the Asian Development Bank "ADB".
The bond will strengthen its support for increasing opportunities for high-quality education following COVID-19 through efforts such as greater use of distance and online learning and use of digital technologies for scaling equitable learning, training and teaching with partnerships for expanding access to affordable and reliable internet connectivity.
5.Gender equality
  • ■ Investment in Gender Bond Issued by the Asian Development Bank (ADB)

Source: ADB

In November 2017, Dai-ichi Life invested approx. ¥10 billion in the Gender Bond issued by the Asian Development Bank (ADB) .The proceeds raised through the Gender Bond will be used for projects to promote gender equality and women's empowerment in the Asia-Pacific region.
6.Clean water and sanitation
  • ■ Investment in Project Finance for Desalination Plant in Australia
In December 2017, Dai-ichi Life invested approx. ¥4.4 billion in one of the world's largest desalination projects being undertaken in Australia to cope with water shortages associated with large-scale drought and future population growth.
7.Affordable and clean energy
  • ■ Investment in Digitally Tracked Green Bonds issued by Japan Exchange Group
In June 2022, Dai-ichi Life invested ¥500 million in Digitally Tracked Green Bonds issued by Japan Exchange Group.
The funds raised will be used to pay for the installation of new solar power generation facilities and biomass power generation facilities that use waste cooking oil as fuel.
8.Decent Work and Economic Growth
  • ■ Investment in Global Venture Capital Fund "MPower Partners Fund L.P."

Photo credit: MPower Partners GP, Limited

In May 2021, Dai-ichi Life invested in global venture capital fund "MPower Partners Fund L.P.". With the goal of empowering entrepreneurs providing tech-enabled solutions to societal challenges, the Fund has established healthcare / wellness, financial technology, next-generation work / education, next-generation consumer, and environment / sustainability as its key fields of investment, and invests in Japanese and overseas startups in these areas.
9.Industry, innovation and infrastructure
  • ■ Investment in project financing for the "Miyagi Prefecture Integrated Water Supply, Industrial Waterworks, and Sewerage Public-Private Partnership Management Project"

Source: ADB

In February 2022, Dai-ichi Life invested approximately ¥1.7 billion in project financing for the Miyagi Prefecture Integrated Water Supply, Industrial Waterworks, and Sewerage Public-Private Partnership Management Project. Through this investment, the Company will financially support Miyagi Prefecture's efforts to efficiently manage its waterworks business and revitalize the local community.
11.Sustainable cities and communities
  • ■ Japan's first investment in "Social Impact Bonds" targeting community development projects
In October 2021, Dai-ichi Life invested in a social impact bond for a community development project in Maebashi, Gunma Prefecture. The project aims to increase pedestrian traffic on Babakawa Street and revitalize the surrounding area.
13.Climate action
  • ■ Investment in Sustainable Development Bonds Issued by the International Bank for Reconstruction and Development

Source: ©World Bank

In April 2022, Dai-ichi Life invested AUD 132 million in Sustainable Development Bonds issued by the International Bank for Reconstruction and Development ("IBRD"). The funds raised by these bonds will be allocated to a wide range of projects that contribute to the climate action of developing countries.
14.Life Below Water
  • ■ Investment in Blue Bond Issued by Asian Development Bank (ADB)

Source: ADB

In September 2021, Dai-ichi Life invested approximately ¥16.5 billion in a blue bond issued by the Asian Development Bank ("ADB"). The proceeds raised from this bond will be used toward ADB's initiatives related to the protection and restoration of marine ecosystems and promote inclusive livelihood opportunities and the like, in line with the above plan.
15.Life on Land
  • ■ Investment in Green Bond Aimed at Conserving Biodiversity issued by Anglian Water Services Financing PLC (“Anglian Water”).

Photo credit: Anglian Water Services Financing PLC

In September 2021, Dai-ichi Life invested approx ¥3.9 billion in a green bond issued by Anglian Water Services Financing PLC (“Anglian Water”). The proceeds raised from this bond will be used toward natural water treatment facility maintenance projects which utilize wetlands, projects which promote the inhabitation of indigenous species by conducting maintenance on the flow of rivers and waterfronts to restore the characteristics of natural rivers, and the like.

Development of a Well-being Community that Enhances the Quality of Life of Local Residents "SETAGAYA Qs-GARDEN"

SETAGAYA Qs-GARDEN (Setagaya-ku, Tokyo), which has been developed based on the concept of improving the quality of life of local residents through health promotion, support for the elderly, community revitalization, childcare and education, sports promotion, security and disaster prevention, and environmental consideration, celebrated its town opening in March 2023. On a site of approximately 9 hectares with a rich green environment, which has become a rarity in Tokyo, we aim to continue to provide multi-generational living and rich interaction by arranging condominiums for families, a clinic mall, student housing, housing for the elderly with services, and local community facilities. We will continue to implement townmanagement activities to enhance the well-being oflocalresidents.

Entire map of SETAGAYA Qs-GARDEN
Entire map of SETAGAYA Qs-GARDEN

•Plan for rental office building with a wood hybrid structure

We have begun considering a new architectural plan for a rental office building with a wood hybrid structure in Kyobashi, Chuo-ku, Tokyo.
The project aims to reduce CO2 emission during construction at least 20% compared to steel structures through cyclical use of resources by using domestic timber and the adoption of a wood hybrid structure.
ESG factors are taken into the evaluation and calculation of investment return, which is one of the investment criteria.

For more information on these initiatives, click on the link below

Plan for rental office building with a wood hybrid structure
Image of the exterior

•Promotion of renewable energy in real estate holdings

In 2019, we joined RE100, an international initiative that aims to procure electricity used in business activities from renewable energy sources, and we are promoting the use of renewable energy for electricity consumption in the real estate we own. As part of our efforts to convert our real estate holdings to renewable energy, we are actively procuring renewable energy with additional potential through the installation of renewable energy in-house power generation in our real estate holdings and direct procurement of renewable energy from power generators.

【Installation of renewable energy on-site power generation】
This is a system in which solar power generation equipment is installed on the rooftops of our sales offices and the electricity generated is consumed in-house. The introduction of this system has been started sequentially in the Kanto area.

【Direct procurement of renewable energy from power producers】
Clean Energy Connect, an investment and financing partner of our company, will install solar power plants exclusively for our company (22 locations nationwide) and supply the newly generated renewable energy power to buildings owned by our company.

This project was approved by the Ministry of the Environment as a "FY2021 Off-Site Corporate PPA Solar Power Generation Supply Model Creation Project" (the first project of its kind for a financial institution).

Promotion of renewable energy in real estate holdings

•Investing in ESG-conscious Real Estate Funds

In December 2022, Sumitomo Forestry invested in an ESG-conscious real estate fund. The assets targeted by the fund are four pay nursing homes with assisted-living operated by sumirin fillcare co., ltd., a wholly owned subsidiary of Sumitomo Forestry Co., Ltd. It incorporates wooden facilities and spaces filled with wooden textures, and is expected to contribute to the well-being of residents and employees and reduce environmental impact through operations utilizing digital transformation (DX) services.

【Human- and eco-friendly homes that leverages the characteristics of wood】
Sumitomo Forestry's Tsukuba Research Institute researches ,"the effects of wood's characteristics on the mind and body," and the results of this research are being utilized at facilities operated by sumirin fillcare. Wood is used in the interior to provide a space that reduces fatigue and improves the quality ofsleep. Flooring materials that are less likely to cause injury in the event of a fall have been introduced at each facility. It contributes to the realization of a decarbonized society through the use ofwood,which fixes carbon in the long term.

【Resident- and employee-friendly management system】
Sumirin fillcare provides ,"Forest Life", a unique health management service, to support residents' well-being. We propose the introduction of rehabilitation and recreational activities in daily life according to each resident's requirements and physical condition. Various ICT devices are used to collect sleep and other data to support the understanding of health conditions. DX ofservices streamlines operations, reduces the workload of employees, and leads to the well-being of employees as well as residents.

Investing in ESG-conscious Real Estate Funds

Impact Investment

Dai-ichi Life engages in impact investment, an investing method intended to both gain investment returns and create positive social impacts. We conduct ongoing monitoring of companies that have received impact investments with regard to the progress of their initiatives and social impacts. Some of our leading examples are as follows.

Investee Company

*Please click logo to see related news release
Investment amount
(at the time of release)
Company overview Social impact
Gojo&Company,Inc. ¥1.2 billion Micro-finance business in developing countries Improve access to finance in developing countries 1.No poverty
Spiber ¥1.0 billion Development of next-generation biomaterials to replace materials derived from fossil fuels Reduce environmental impact (reduction of greenhouse gas emissions, etc.) 13.Climate action
CureApp ¥1.1 billion Research into treatment applications for conditions such as nicotine dependency Dramatically increase treatment results, extend healthy lifespans, and reduce medical costs 3.Good health and well-being
MOLCURE ¥100 million Use of AI in development of pharmaceuticals Platform development Shorten pharmaceutical development lead times and reduce medical costs 3.Good health and well-being
Challenergy ¥200 million Development of wind power generator capable of generating electricity even in a typhoon Reduce CO2 emissions through alternatives to diesel power generation, etc. 7.Affordable and clean energy
Energy & Environment Investment, Inc. ¥2.5 billion Venture fund focused on environment and energy sectors Reduce GHG emissions by promoting renewable energy and energy conservation 7.Affordable and clean energy-13.Climate action
Integral Geometry Science ¥200 million Development of diagnostic systems for early detection of breast cancer Reduce death rates through early breast cancer detection 3.Good health and well-being
UniFa ¥800 million Development of solutions utilizing IoT and AI to create smart nursery care facilities Resolve the lengthy nursery care waiting list problem 5.Gender equality
Life is Tech! ¥200 million Development and provision of IT and programming educational services for junior and senior high school students Resolve the IT personnel shortage 4.Quality education
Toyonaka City CureApp ¥12 million World's first anti-smoking social impact bond aimed at an anti-smoking project in Toyonaka being run by CureApp Extend healthy life expectancy 3.Good health and well-being
MODULUS ¥200 million New drug development using advanced computational science and technology Achieve universal access to health care 3.Good health and well-being
Sharing Energy ¥100 million Japanese venture company providing the Share Denki service for use of third-party residential solar power generation systems Reduces CO2 emissions by popularizing renewable energy, etc. 7.Affordable and clean energy
GITAI ¥700 million Venture company researching, developing, and manufacturing space robotics Encourage space development to foster economic growth by dramatically reducing labor costs in space 8.Decent work and economic growth
Noile-Immune Biotech ¥500 million Venture company developing new cancer immunotherapies centered upon CAR-T therapies Extend the healthy lifespan of cancer patients by developing and providing next-generation cancer immunotherapies 3.Good health and well-being
RIVERFIELD ¥500 million Venture startup of Tokyo Institute of Technology developing pneumatically driven surgical robots capitalizing on proprietary pneumatic control technologies Better quality of life for patients by expanding medical care using surgical robots 3.Good health and well-being
Pamela ¥100 million Japanese startup that develops and provides a medical device that scientifically measures pain using brain waves. The development and supply of a medical device which can objectively measure and evaluate pain makes it possible to appropriately administer analgesics and the like, thereby realizing an improvement in patients' quality of life 3.Good health and well-being
WASSHA ¥300 million A Japanese venture company that provides solar power generation services to people living in un-electrified areas in Africa. Contribution to the improvement of living standards and economic independence in un-electrified areas of Africa. 1.No poverty-10.Reduced inequalities
READYFOR - A Japanese venture company that provides a new means of fundraising through crowdfunding for projects with a high social contribution potential in medicine, research, NPOs, regional revitalization, culture, etc. Building a network of support for a sustainable society. 8.Decent work and economic growth-9.Industry, innovation and infrastructure
CLEAN ENERGY CONNECT ¥300 million A Japanese venture company offering low pressure and distributed off-site corporate PPA to corporate clients. Early transition to a decarbonized society. 7.Affordable and clean energy
JEPLAN ¥500 million A Japanese venture company working to promote and expand resource recycling using its proprietary "BRING Technology™" chemical recycling technology for horizontal recycling of PET bottles. Realization of a sustainable society. 13.Climate action
KAKEHASHI ¥500 million Japanese start-up company that develops and provides medical-related services such as "Musubi", a cloud-based electronic drug history and medication administration guidance system for dispensing pharmacies. Development and provision of healthcare-related services, including systems for pharmacies, to improve patient quality of life and build a sustainable healthcare system for the future. 3.Good health and well-being-8.Decent work and economic growth

ESG Integration Initiatives

Integration into Research

We integrate ESG into each asset according to asset liquidity and characteristics to continually push forward action that increases the sophistication of ESG integration.

Enhancing Sophistication of ESG Integration

Enhancing Sophistication of ESG Integration

Climate change integration

In terms of climate change-related risks and opportunities, Dai-ichi Life quantitatively and qualitatively assesses investee companies and considers the results of engagement with each company to assign it a score.
More specifically, Dai-ichi Life calculates the impact of carbon taxes (quantitative assessment) and considers future opportunities such as environmental technologies, etc. (qualitative assessment). In addition, Dai-ichi Life confirms and evaluates the details of the initiative in terms of climate change risks, governance, and other issues through engagement.

Climate change integration

Positive Screening

ESG funds for domestic equities are screened in terms of governance and climate change, and then the portfolio is constructed by taking into account the in-house ranks.
From September 2020, ESG index is adopted as investment targets (benchmarks) for foreign equity, taking ESG factors into account in overall foreign equity managed in-house.

Positive Screening

Negative Screening

As part of its response to climate change, Dai-ichi Life has prohibited the financing of new thermal power plant projects that use fossil fuels as well as coal mining projects.
Dai-ichi Life will continue to review the scope of negative screening based on social conditions both in Japan and overseas as well as other factors.

Process of negative screening


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