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Stance on Promoting Responsible Investment
Vision for the Future
With customers throughout Japan, Dai-ichi Life is a "universal owner" of a wide range of assets, and recognizes the need to conduct investments with consideration to a variety of stakeholders. Our goal is thus to promote responsible investment (including ESG investment and stewardship activities) as a priority in increasing the sophistication of our asset management, and to balance obtaining medium- to long-term returns with solving social issues.
Approach to Responsible Investment
Dai-ichi Life's responsible investment consists of ESG Investment (environment, society and governance) that seeks both to gain better returns and solve social challenges, and Stewardship Activities that aim to improve the corporate value of our investee companies. Dai-ichi Life systematically implements ESG Investment and Stewardship Activities, respectively governed by the ESG Investment Policy and Stewardship Activities Policy.
Responsible Investment Promotion Structure
Dai-ichi Life has established the Responsible Investment Committee and Responsible Investment Meeting to promote both the discussion of initiatives related to responsible investment from various perspectives and to increase the sophistication of such efforts.
Its policies of responsible investment are formulated based on deliberations at the Responsible Investment Committee-the majority of which consists of external members-and especially important matters are reported to the Board of Directors and Executive Management Board. In addition, Dai-ichi Life monitors and discusses the progress of initiatives promoted by entire investment department through the Responsible Investment Meetings attended by members involved in responsible investment.
Responsible Investment Committee Structure and Meetings Held
The majority of the members of the Responsible Investment Committee are external experts with extensive knowledge in management strategy, governance, ESG investment, and a variety of other subjects enabling a system that reflects broad external opinions in the Committee.
In addition to external experts, Dai-ichi Life appoints officers in charge of compliance to the committee as members to deliberate and confirm important policies on responsible investment, exercising voting rights on important resolutions and other matters by from a stance fully addressing any conflicts of interest in life insurance contracts.
External Evaluation
Results of Annual PRI Assessment
In the 2020 PRI assessment, we received the highest "A+" score in four modules and above the global median score in all modules for the third consecutive year. Based on the results of this assessment, we are working to further improve our efforts to advance responsible investment.
Awarded Gold Award (Minister of the Environment Award) in the Investor Category at the Ministry of the Environment's 4th ESG Finance Awards Japan
In FY2022, in addition to further upgrading responsible investment by setting new targets in the Medium-term Responsible Investment Policy, we have also formulated our basic approach to "transition finance." In recognition of these efforts, we received our second Gold Award at the 4th ESG Finance Awards Japan (Investor Category) hosted by the Ministry of the Environment.
【Reasons for selection as a Gold Award winner in the Investor Category】
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Dai-ichi Life has established a new Medium-term Responsible Investment Policy that includes steps to create a positive impact on society and to promote stewardship activities, while making progress on its medium-term ESG investment goals ahead of schedule.
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Dai-ichi Life's Policy on Transition Finance focuses on engagement with high-emission companies instead of divestment and includes a clear plan to address the medium- to long-term increase due to transition finance in its portfolio GHG emissions.
Logo of ESG Finance Awards Japan
Tetsuya Kikuta, Group CEO, Dai-ichi Life Holdings, Inc.
* This award was presented to our Company (The Dai-ichi Life Insurance Company, Limited).
Participation in Initiatives
(Participant since 2011)
"Principles for Financial Action Towards a Sustainable Society" (the "Principles for Financial Action") are guidelines formulated in 2011 for financial institutions to facilitate actions for forming a sustainable society.
(Participating since Nov. 2015)
Principles formulated in response to a call from then UN Secretary-General Kofi Annan in 2006. A global standard for responsible investment. They advocate incorporating ESG issues into investment decisions in order to achieve a sustainable society.
(Participating since Sep. 2018)
Task force established in 2015 by the Financial Stability Board (FSB) based on a request from the G20. It worked to understand the opportunities and risks related to climate change, and released a proposal to encourage information disclosure.
(Participating since Sep. 2018)
Evaluates the top 20 global pharmaceutical companies to improve access to pharmaceuticals in developing countries (indices released). Established in 2016 with the goal of facilitating improvements for access to pharmaceuticals by having institutional investors incorporate the indices when making investment decisions.
(Participating since Aug. 2019)
An initiative of institutional investors established in 2017 to engage in constructive dialogue with companies that emit significant amounts of greenhouse gases, regarding matters such as efforts to reduce emissions and disclose related information.
(Participating since Aug. 2019)
Established in 2014, led by the global environmental NGO, The Climate Group in partnership with the Carbon Disclosure Project (CDP), with the goal of sourcing 100% of energy for electricity used in business activities from renewable sources. Over 190 leading companies around the world are participating in the initiative.
(Participating since Nov. 2019)
An initiative launched in 2019 with the goal of deepening and enhancing stewardship through a review of measures to address practical issues in stewardship and share best practices.
(Participating since Sep. 2019)
An initiative launched with the goal of promoting a globally effective market and sustainable economic development through effective improvements in corporate governance and investor stewardship.
(Participating since Nov. 2019)
An initiative established in 2018 to encourage action against climate change by a wide range of non-state entities in Japan, including companies, financial institutions, local governments and others.
(Participating since Mar. 2020)
Established in 2017 to help institutional investors conduct collaborative engagements in which multiple institutional investors work together.
(Participating since May. 2020)
Group of institutional investors established in 2019 to increase the medium-to long-term corporate value of investee companies by promoting gender diversity.
(Participating since Jul. 2020)
An independent and non-profit organization established in the United States in 2011 that formulates ESG information disclosure standards.
(Participating since Feb, 2021)
An international initiative in which institutional investors aim to transition to portfolios with net-zero greenhouse gas emissions by 2050.
*Dai-ichi life pays annual membership fee of 20,000 EUR.
(Participating since Apr, 2021)
A strategic forum bringing together the leading net-zero initiatives across the financial sector.
(Participanting as a steering committee member since Nov. 2021)
“Japan Impact-driven Financing Initiative” is an initiative to promote impact investment through cooperation and collaboration between diverse and multiple financial institutions that believe that the purpose of financial institutions is to actively address social and environmental issues, holistically understanding impact.
(Participating since Dec. 2022)
A collaborative engagement initiative newly established by PRI in 2022 based on the theme of "social" issues, with a focus on human rights problems.
Examples of Initiatives to Spread and Promote ESG
As a "universal owner," Dai-ichi Life focuses efforts on spreading and promoting ESG investment.
Major meetings in which we serve as a member
*As of October 31, 2022
| Organizer | Committee |
|---|---|
| Ministry of the Environment, Ministry of Economy, Trade and Industry, Financial Services Agency of Japan |
Working Group on Transition Finance |
| Ministry of the Environment | Committee of Principles for Financial Action for the 21st Century |
| Financial Services Agency | Working Group on Promoting Impact Investing |
| GFANZ | CEO Principal Group |
| GFANZ | Steering Group |
| GFANZ | Working Group |
| GFANZ Japan Chapter | Consultative Group |
| GFANZ Japan Chapter | Core Working group |
| Net-Zero Asset Owner Alliance | Principal Member |
| Japan Impact-driven Financing Initiative | Steering Group |
Presentations at Seminars; Workshops Held
*Major meetings / workshops since April 2023
| Meeting / Workshop | Held |
|---|---|
| the Practice and Challenges of Impact Investment (Japan Impact Driven Finance Initiative Breakout Session) | May, 2023 |
| Infrastructure Investor Tokyo forum (PEI) | June, 2023 |
| Japan Institutional Forum (Markets Group) | July, 2023 |
| PERE Tokyo Forum 2023 (PEI) | September, 2023 |
| PRI in person 2023 | October, 2023 |
| Net Zero and Climate Resilience in Real Estate (Principles for Financial Action for the 21st Century) | October, 2023 |
