ESG Investment

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

< 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.

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).

• * 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.

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.

•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

• https://www.dai-ichi-life.co.jp/company/news/pdf/2021_019.pdf (814KB)

•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).

•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.

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.