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ESG Investment

ESG investment method

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

ESG Investment Method Definitions
ESG-Themed Investment Investment in fields that help resolve social issues premised on secure investment returns
(Climate Change Solution Investments:Of the above, investments that contribute to solving climate change issues)
  Investment and Financing for SDGs Bonds, etc. Funding for international organizations and companies promoting businesses that contribute to achieving SDGs
(Green, social, sustainability bonds, etc.)
  Investment and Financing for SDGs Businesses Funding for businesses that contribute to achieving SDGs
(social infrastructure development, environment preservation, etc.)
  Impact Investment An investment method in which decisions for investments are made while intending to both obtain income from investments and create a social impact
(structural changes to society, etc.)
ESG Integration Systematic integration of ESG factors into the investment process
  Integration into Research Systematic integration of ESG factors into analysis and evaluation performed by the Company
  Positive Screening Building a portfolio comprised of companies with high ESG ratings
  Negative Screening Excluding certain uses of funds and industries, etc. from the portfolio
  Dialogue on ESG Dialogue activities related to ESG issues

Initiatives for ESG-Themed Investment

Balance of ESG-themed Investments

Balance of ESG-themed Investments

As of the end of November 2021

Climate change solution Investments

We have positioned solutions to climate change as the highest priority issue for responsible investment.we actively invested in Climate Change Solutions of ESG-themed investments.

Climate change solution Investments

As of the end of November 2021

Investment performance by investment theme • Positive impact

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 800,000 tons, equivalent to 12% of emissions from our portfolios (listed equities, corporate bonds, and real estate).

Investment performance by investment theme • Positive impact

  • * 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.

As of the end of November 2021

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
  • ■ Investment in the Health Bond issued by Asian Development Bank (ADB)
In February 2021, Dai-ichi Life invested approx. ¥10 billion in Health Bonds issued for the company by the Asian Development Bank (“ADB”). The proceeds raised from this bond will be used toward ADB's health- and medical-related initiatives, including support for the securement and supply of COVID-19 vaccines.
4.Quality education
  • ■ Investment in the Social Bonds Issued by the University of Tokyo
In October 2020, Dai-ichi Life invested ¥1.8 billion in "the University of Tokyo FSI Bonds," the social bonds issued by the University of Tokyo. The funds obtained through the University of Tokyo FSI Bonds are used for the efforts in the Future Society Initiative (FSI) that aims to achieve social change toward a better society going forward.
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 Project Finance for an Offshore Wind Farm in Akita
In February 2020, Dai-ichi Life invested in an offshore wind farm project in Akita Prefecture. This project will build and operate an offshore wind farm with a total power generation capacity of approximately 140 MW (equivalent to the electricity consumption of roughly 130 thousand ordinary households) at Akita Port and Noshiro Port in Akita Prefecture, which are known to have some of the most favorable wind conditions in all of Japan.
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 the Mekong Region Development Bond Issued by the Export-Import Bank of India
In October 2019, Dai-ichi Life invested approx. ¥5.4 billion in the social bonds issued by the Export-Import Bank of India. The funds obtained through the social bond are used for the assistance with infrastructure development projects in Asian countries in the Mekong region.
11.Sustainable cities and communities
  • ■ Investment in Project Finance for a Railway Development Project in Peru

Photo credit: Ministry of Transport and Communication of Peru

In March 2019, Dai-ichi Life invested in a railway development project in Peru. This project is to develop infrastructure, including additional new vehicles and expanded station buildings and garages intended to ease congestion and improve convenience, for the elevated railway that runs from east to west across Lima, Peru.
12.Responsible consumption and production
  • ■ Investment in Sustainable Development Bonds Issued by the International Bank for Reconstruction and Development (IBRD)

©Chor Sokunthea / World Ban

In July 2019, Dai-ichi Life invested approx. ¥10.8 billion in the sustainable development bonds issued by the International Bank for Reconstruction and Development (IBRD) of the World Bank Group. The funds obtained through the sustainable development bonds are provided for the IBRD's initiatives to address the issues of food loss and waste, including projects for grain storage enhancement and food recycling.
13.Climate action
  • ■ Investment in Climate Resilience Bond Issued by European Bank
In July 2021, Dai-ichi Life invested approx ¥13.2 billion issued by the European Bank for Reconstruction and Development (“EBRD”). The proceeds raised from this bond will be used toward ecological systems' conservation projects, which ameliorate negative effects on the ecosystem by means of coastal construction resistant to abnormal weather events such as rises in sea level and flooding, and the restoration of waters that have become polluted by flood damage accompanying climate change.
14.Life Below Water
  • ■ Investment in Blue Bond Issued by Asian Development Bank (ADB)
In September 2021, Dai-ichi Life invested approx ¥16.5 billion iin 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. Through its investment in this bond, the Company will financially support ADB's initiatives aimed at protecting and restoring ocean health in the Asia and the Pacific region.
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.

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 ¥1.0 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
CROWD CREDIT ¥100 million Provision of financing-type crowd funding services Promote business and employment creation in developing countries 1.No poverty
SUSMED ¥300 million Research and development on insomnia treatment application Reduce risks of side effects in insomnia treatment, reduce medical costs 3.Good health and well-being
MELTIN ¥300 million Research and development of world's first avatar robot, which has the closest performance to human hands Reduce risk of accidents involving work in dangerous environments 8.Decent work and economic growth
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
QD LASER ¥300 million Development of eyewear for patients with low vision Improve quality of life (QOL) for low-vision patients 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. ¥1.0 billion Venture fund focused on environment and energy sectors Reduce CO2 emissions 7.Affordable and clean energy
Neurotrack ¥800 million Development of cognitive function test using eye movement to measure cognitive function Extend healthy life expectancy through dementia prevention 3.Good health and well-being
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 ¥300 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
METCELA ¥100 million Japanese startup engaged in the development of regenerative medicines for patients with chronic heart failure. By developing and providing a treatment for chronic heart failure, achieve the restoration of seriously ill patients' cardiac function to extend healthy life expectancy. 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 ¥200 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

Regional Development and Community Revitalization Efforts

We actively work to enhance our own unique ESG investments. Through our engagement activities (dialogue with investee companies) and efforts to spread and encourage ESG investment, we aim to improve the level of efforts of companies and investors throughout Japanese society as a whole, and work proactively in regional development and community revitalization. Examples of key initiatives to date are shown below.

< Examples of Main Initiatives to Date >

*Click on each item to view press releases.

Examples of Main Initiatives to Date 2020 Invested in project finance for an offshore wind farm 2019 Concluded a comprehensive partnership agreement with Tohoku University 2017 Made an impact investment of ¥1.0 billion in Spiber Inc., a company engaged in research to develop and produce next-generation biomaterials 2018 Invested ¥100 million in Metcela Inc., a company engaged in research to develop new regenerative medical products to treat heart failure 2018 Concluded an advanced bioscience research and comprehensive partnership agreement with the Institute for Advanced Biosciences of Keio University 2021 Invested in a solar power generation project in Niigata Prefecture 2020 Launched the development of wood construction for a mid-rise office-cum-bank building 2021 Invested in Maebashi's downtown revitalization project 2018 Successfully invited the first business-led daycare center to operate in the Company's building 2018 Participated in a syndicated loan related to the privatization and expansion of Fukuoka Airport 2013 Invested in a solar power plant project 2014 Invested ¥2.25 billion in a solar power plant project 2014 Invested ¥2.3 billion in a solar power plant project 2019 Worked out a plan to leverage grounds owned by Dai-ichi Life to improve the QOL for local residents 2020 Toranomon 2-Chome District Category 1 Urban Redevelopment Project 2019 Concluded a comprehensive partnership agreement with Tokyo University of Science 2018 Concluded an agreement with Setagaya Ward to offer the grounds owned by the Company as a shared part for use by daycare centers in the ward 2014 Invested ¥1.0 billion in a solar power plant project 2015 Invested ¥420 million in a solar power plant project 2013 Invested ¥1.4 billion in a solar power plant project 2020 Concluded a partnership agreement for creation and growth of kankei jinko (a group of community builders from outside) based on the promotion of "worcation" 2020 Participated in a syndicated loan for project finance for the Hokkaido Bundled 7 Airport Concession Project

ESG Integration Initiatives

Integration into Research

We optimally integrate ESG factors into each asset according to asset liquidity and characteristics, and aim to complete ESG integration into all assets.

Enhancing Sophistication of ESG Integration

When assessing the growth potential and safety of an investee company, Dai-ichi Life systematically incorporates non-financial information (i.e., ESG information), in addition to quantitative financial information, into its research. Such non-financial information includes the competitiveness of the company's products and/or services designed to contribute to the solution of social problems (e.g., environmental issues) and management skills.

In fiscal 2020, we created new positions of ESG analysts in order to research and analyze various ESG issues across assets. ESG analysts select priority themes from various ESG issues and conduct cross-sector analyses. the research results are shared with equity and credit analysts, and then each asset analyst reflects those results into the evaluation of each company.

Enhancing Sophistication of ESG Integration

Examples of ESG Integration

In terms of climate change integration, we score each company after quantitively and qualitatively evaluations taking into account engagement results.
More specifically, our quantitative evaluation calculates the effects of carbon taxes while our qualitative evaluation considers future opportunities, such as environmental technologies. Our engagement verifies and assesses initiatives of companies to address climate change risks, corporate governance, etc.

Examples of ESG Integration

Positive Screening

ESG fund construction method for Japanese equities

In addition to the usual screening of Japanese equity ESG funds from a governance perspective, we have sought to further increase the sophistication of ESG integration by incorporating climate change factors into the fund construction method, including conducting climate change screenings since January 2020.

[ESG fund construction method for Japanese equities]

ESG fund construction method for Japanese equities

ESG fund construction method for Foreign Equities

Since 2019, Dai-ichi Life has introduced investment methods to reflect ESG scores to a part of the foreign equity portfolio managed in-house.Since September 2020, the company has introduced an ESG index as a benchmark for foreign equity investments, and began reflecting ESG factors in all of its foreign equity investments managed in-house.

[ESG fund construction method for Foreign equities]

ESG fund construction method for Foreign equities

ESG-Consideration in Real Estate Investment

Dai-ichi Life also integrates ESG factors into the real estate investment process. In addition to considering environmental issues in real estate development and promoting efforts to attract tenants (such as daycare centers) that contribute to improving the quality of life, we are also actively engaged in efforts to use our diverse properties nationwide to contribute to solving social issues.

•Our community development project utilizing grounds owned by Dai-ichi Life in Setagaya-ku, Tokyo

Our community development project utilizing grounds owned by Dai-ichi Life in Setagaya-ku, Tokyo is based on the concept of a smart city that contributes to improved quality of life for local residents. Planned activities include promoting health and wellbeing, community revitalization and sports, as well as construction of facilities utilizing wind power technology from our impact investee Challenergy and solar power panels, with the goal of community development that also leads to solving environmental issues.

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

•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
 

•Regional economic revitalization by promoting workcation in Obihiro City

We aim to create and expand the population in cooperation with Obihiro City through workcation and other promotions
This project strives to revitalize the region through workcations and other projects by launching a hotel business through renovations of the Dai-ichi Life office in Obihiro City and setting up co-working spaces.

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

Regional economic revitalization by promoting workcation in Obihiro City
Image of the exterior

Negative Screening

In terms of the characteristics and social sustainability of life insurance operations, Dai-ichi Life prohibits investment and financing in the following fields.

List of negative screening

Screening targets Assets under screening
  • Specific arms manufacturing (cluster bombs, biological/chemical weapons, anti-personnel mines, etc.)
  • Equity
  • Project finance
  • Bond
  • Real estate
  • Corporate financing
  • New thermal power plant-related projects using fossil fuels(including coal, oil, and gas)
  • coal mining projects
  • Project finance

Process of negative screening

Process of negative screening

 

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