Social contribution activities of the Dai-ichi Life Group that contribute to environmental protection and biodiversity conservation
Participation in the Task Force on Nature-related Financial Disclosures (TNFD) Forum
TNFD is an international initiative, conceived at the 2019 World Economic Forum at Davos and officially launched in June 2021, that aims to establish a disclosure framework for nature-related risks.
Dai-ichi Life Holdings endorses the principles of the TNFD and has joined the TNFD Forum in October 2022 to support its activities.
TOPICS
Analysis of nature-related risks
In the "Environmental Action Policy for the Dai-ichi Life Group*1," we clearly state that it regards the preservation of natural capital and biodiversity as our corporate social responsibility. With this in mind, we endorsed the philosophy of the TNFD*2, which aims to establish a framework for the systematic identification and disclosure of nature-related risks, and in October 2022 we joined the TNFD Forum.
To better understand nature-related impacts and dependencies, we first analyzed nature-related risks and opportunities associated with the equity portfolio of our core domestic subsidiary, Dai-ichi Life, in accordance with the LEAP*3 approach proposed by the TNFD.
First, using the ENCORE*4, a nature risk assessment tool, we selected three sectors for analysis-consumer staples, materials, and utilities-all of which have significant risks, then we identified important nature-related themes in each sector. We also studied examples of risk cases related to these themes in the value chains of our investees and evaluated their potential business impacts. As a result, among the nature-related risks that could affect our investee companies' businesses, we identified four areas that require closer attention-forests, water, land use, and ecosystems-as cases of conflict were found in the past in those areas.
| TNFD's risk classification |
Potential events | Examples of business risks in the three sectors | Examples of business opportunities in the three sectors |
|---|---|---|---|
| Transition risk | Rising raw material prices |
[Common] Increased costs of responding to various regulations and criticisms [Commodities and materials] Soaring procurement costs due to increased demand for certified raw materials |
[Consumer staples and materials] Use of certified raw materials can increase the added value and profitability of our products |
| Physical risk | Decrease in biological resources |
[Consumer staples and materials] Instability of supply and price hikes due to stricter regulations on land development and over-extraction of natural raw materials | [Consumer staples and materials] Switching to alternative resources can ensure long-term, stable, and sustainable supplies |
| Systemic risk | Raw material crop failure due to ecosystem collapse | [Consumer staples and materials] A combination of factors, such as extinction of certain species (keystone species) that play an important role in the ecosystem of origin or contamination by pesticides, can cause the loss of ecosystem functions necessary for the production of raw materials, making it difficult to procure them | [Common] Development of Nature-based Solutions can lead to the creation of new values and markets |
We recognize that the analyses above are in the early trial stage (in line with the LEAP approach) and that there is much room for future development. Nevertheless, we believe that insights and knowledge about nature-related risks and opportunities in our investees' businesses, gained through these analyses, contribute to qualitative improvements in our engagement activities with investees, which will help us strengthen the resilience of our investment and loan portfolio in the future. We will continue trying to contribute to realizing a nature-positive economy by reflecting the results of these kinds of analyses in our engagement with investees and analyses of the investees.
- *1
Please refer to the following Dai-ichi Life Holdings Website
- *2
Taskforce on Nature-related Financial Disclosures
- *3
Acronym for Locate (locate interface with nature), Evaluate (evaluate dependencies and impacts), Assess (assess risks and opportunities), and Prepare (prepare to respond to risks and opportunities and report). The aim of the LEAP approach is to enable companies and financial institutions to assess nature-related risks and opportunities.
- *4
A nature-related risk analysis tool developed by the Natural Capital Finance Alliance (NCFA), an international finance industry association for the natural capital area, etc.
Special sponsorship of "City Green 3 Awards"
The Group's core company, Dai-ichi Life, wants to contribute to improving the quality of life (QOL) of local residents through the creation of green urban environments and communities. Plan Grand Prize, Green City Award, Rooftop/Wall Greening Technology Contest). This award will contribute to the realization of the SDGs. We contribute not only to urban development where people and nature coexist, but also to climate change and biodiversity conservation through planting trees.
Tree-planting activities at Dai-ichi Life Forest
Dai-ichi Life Insurance, the core company of the Dai-ichi Life Group, started full-scale creation of "Dai-ichi Life Forest" in Ashoro Town, Hokkaido, on June 11, 2022, with the cooperation of a forest conservation group "more trees. Prior to the tree planting, a "Declaration of Cooperation Ceremony" was held, where Dai-ichi Life Insurance, Ashoro Town, and more trees declared that they would work together to create the "Dai-ichi Life Forest" for the future of the earth. About 70 people, mostly elementary and junior high school students and their families from Ashoro-machi, participated in the tree-planting event. At this event, participants planted about 1 hectare of Mizunara oak saplings. Participants commented that they were looking forward to seeing the saplings grow large and become a forest rich in nature (elementary school student), and that they wanted to do everything they could for the future of their children and the earth (male in his 40s). After the event, a woodworking workshop (spoon making) using wood from Hokkaido was held to promote interaction among the participants. In addition to the creation of the "Dai-ichi Life Forest," Dai-ichi Life will also purchase CO2 offset credits generated from the forests of four towns in Hokkaido, including Ashoro Town, to promote forest conservation and biodiversity preservation.
Reduction of plastic waste at dl.café
In June 2019, we introduced paper straws at "dl.café", a coffee shop at Dai-ichi Life headquarters operated by Dai-ichi Life Challenged in order to reduce plastic waste, which has become a global problem in recent years. We regard the protection of the global environment and the construction of a sound environment friendly material-recycle society as a corporate social responsibility.
Going forward, the entire group will work together to protect and conserve the environment and reduce the burden on the environment.
Promotion of investment and financing to ensure the sustainability of natural capital
At Dai-ichi Life, the core company of the group, we are working to create a positive impact on society by investing in and financing assets that contribute to solving social issues, such as securing water resources.
| Investment theme | Major ESG-themed investment cases |
|---|---|
Clean Water and Sanitation |
|
Responsible Consumption and Production |
|
Life Below Water |
|
Life on Land |