MS&AD
TCFD・TNFD REPORT 2025
～MS&AD GREEN RESILIENCE REPORT～
Contents
Introduction 01
Key Points of This Report 02
CEO Message 03
Message from Advisor Mami Mizutori 05
Climate / Nature-related Initiatives of MS&AD Insurance Group 06
Supervisory Framework by the Board of Directors 08
Role of Senior Management 09
Assessment of Dependencies and Impacts
Toward Green Resilience
Governance
Strategy
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Climate/Nature-related Dependencies and Impacts 11
Customer Dependencies and Impacts on Climate and Nature by Industry 15
Analysis of Risks and Opportunities
Interface with Sensitive Locations Based on TNFD 20
Physical Risk（Underwriting / Investment and Loan ） 22
Transition Risk（Underwriting / Investment and Loan ） 28
Climate/Nature-related Opportunities 30
Key Initiatives
Risks and Opportunities in Six Industries 30
Key Initiatives Based on Risks and Opportunities 31
Enhancing Value Provision in Response to Increasing Natural Disasters 31
Engagement and Risk Assessment with Customers on Climate and Nature Issues 34
Provision of Insurance Products and Services that Support Net Zero, Nature Positive, and the Circular Economy 35
Collaboration and Foundation Building for Green Resilience 37
Appendix - Detailed Analyses
Risk Management 42
Risk Management
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Identification Process of Dependencies / Impacts on Nature and Risks 43
Management of Natural Catastrophe Risks 43
Litigation Risks in Underwriting 43
As Responsible Institutional Investor 44
Considering Sustainability in Business Activities 44
Metrics and Targets
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Metrics for Dependencies and Impacts 47
Metrics for Risks and Opportunities 47
Environmental Impact of Our Business Activities 48
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Metrics and Targets for Reduction of Environmental Impact of the Group' s Business Activities 48
GHG Emissions of Underwriting Portfolio Companies 48
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Greenhouse Gas Emissions in Our Investment and Loan Portfolio Companies… 49 Weighted Average Carbon Intensity (WACI) in Our Investment and Loan Portfolio Companies 49
| TNFD General Requirements 50
| Mapping of TCFD/TNFD Disclosure Recommendations to the Group' s Analyses 51
| Detailed Analyses 55
| Risks and Opportunities in Six Industries 60
| LEAP Analysis of Green Infrastructure Published in Fiscal Year 2024 63
| Analysis of Climate/Nature-related Risks and the Non-life Insurance Industry Published in Fiscal Year 2024 64
| Terms Related to Heat Map 66
Contents
Toward Green Resilience
Governance
Strategy
Assessment of Dependencies and Impacts Analysis of Risks and Opportunities
Key Initiatives
Risk Management
Metrics and Targets
Appendix-Detailed Analyses
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Toward Green Resilience
Relationships Between Net Zero, Nature Positive, and the Circular Economy
Reducing ecosystem damage and loss
NZ Transit
Net Zero
Nature Positive
ion to a Decarbonized
Society
NP Conservation and Restoration of
Natural Capital
Reducing greenhouse gas emissions
Strengthening greenhouse gas absorption and climate change adaptation (disaster prevention and mitigation)
Circular Economy
CE
Transition to a Circular Economy
Ensuring the sustainability of natural capital
Because both positive synergies and negative trade-otts can arise when implementing net-zero, nature-positive, and circular-economy ettorts, we approach them in an integrated manner and implement them ettectively.
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Introduction
Priority Issues in Sustainability
Human capital
Happiness of
diverse people
Well-being
Customer well-being Promotion of respect for human rights
Employee well-being
Social capital
Resilience
Measures to address new risks
Safe and
secure society Loss prevention/mitigation
Creation of a resilient and inclusive society (Regional revitalization)
Natural capital
Symbiosis with
global environment
Planetary Health
Action on climate change
Improvement of sustainability of natural capital
Created based on Stockholm Resilience Centre's SDGs wedding cake
Main initiatives
Priority issues
The MS&AD Insurance Group has positioned Planetary Health (symbiosis with the global environment), Resilience (safe and secure society), and Well-being (happiness of diverse people) as its priority issues. In particular, the Group focuses on the principle that the well-being of diverse people can be realized only when both environmental sustainability and social safety are secured. Accordingly, we advance our initiatives based on an integrated approach, rather than addressing each issue separately.
Advancing the Priority Issue of Symbiosis with the Global Environment
The increase in natural disasters caused by climate change results in extensive damages around the world, undermining social sustainability, while also significantly atfecting the Group, which provides disaster compensation through insurance products. To reduce natural disaster risk, the Group is promoting an integrated approach to responding to climate change and conserving and restoring natural capital, providing risk solutions that enhance the resilience of society as a whole. Through these activities, we aim to build a sustainable society by fulfilling our Mission to "contribute to the development of a vibrant society and help secure a sound future for the planet by enabling safety and peace of mind."
Further, because a circular economy that recycles finite resources supports both net zero (transition to a decarbonized society) and nature-positive (conservation and restoration of natural capital) goals, the Group clearly demonstrates and advances initiatives such as controlling resource use, substituting with
renewable resources, and reducing and recycling waste, showing how these etforts contribute to net zero and nature-positive outcomes.
Green Resilience and This Report
The MS&AD Insurance Group promotes Green Resilience focusing on the diverse functions of nature. This concept involves creating a virtuous cycle by utilizing the benefits provided by nature, protecting biodiversity, advancing decarbonization, mitigating damage from natural disasters, and revitalizing communities using the appeal of nature. We are pursuing activities for conserving and restoring the natural environment, along with collaborative etforts with local governments and universities.
In 2023, the MS&AD Insurance Group became the first company in Japan to issue a stakeholder report concerning both climate and nature - our Climate/Nature-Related Financial Disclosure (TCFD/TNFD Report). In fiscal 2024, it was retitled with "Green Resilience" added to it.
Through this report, the Group aims to provide investors, analysts, and other stakeholders with useful information on climate- and nature-related risks and opportunities for the Group. At the same time, it clearly communicates our Green Resilience initiatives to help achieve a resilient and sustainable society while enhancing the resilience of the Group' s business operations.
Governance
Strategy
Assessment of Dependencies and Impacts Analysis of Risks and Opportunities
Key Initiatives
Risk Management
Metrics and Targets
Appendix-Detailed Analyses
01
Green Resilience Report 2025
Toward Green Resilience
Contents
(3) Overview and Key Points of This Report (Summary)
Survey and analysis of climate/nature-related risks and opportunities
P.22
Current situation for natural disasters and the non-life insurance business
Insurance claim payments under fire insurance have been increasing in Japan, particularly for water-related disasters (covered under fire insurance), where risks are on the rise. Measures such as basin-wide flood management are becoming increasingly important.
Exposure to TNFD areas of concern through investment and loan portfolios
Based on location data for the Group's top 500 investment/loan portfolio companies, we analyzed their connections to key areas of natural importance and water-related risks, identifying river basins where such companies facing high flood risk are concentrated.
Identification of six key industries
Taking into account the degree of dependency and impact on climate and nature-as well as the proportion of insurance and investment/loan transactions with the Group-we identified six key industries for further detailed analysis
Detailed analysis of business activities and nature (LEAP Approach)
Analysis of dependencies Analysis of the cumulative and impacts on nature in impacts of onshore wind the marine transportation power generation on the
industry
natural environment
Physical risk analysis
Assessment of Evaluation of the etfects of climate-related risks changing typhoon patterns based on the location data on insurance underwriting of 500 investment/loan
portfolio companies
Transition risk analysis
Assessment of the impact Analysis of invest-of carbon costs on ment/loan portfolio
investments and loans company alignment with
the Paris Agreement (2°C target)
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Overview and Key Points of This Report (Summary)
1
［ Correlations between the non-life insurance business and climate/nature ］
The non-life insurance business not only compensates for economic losses caused by disasters and accidents but also plays a vital role in supporting social stability and fostering growth. The MS&AD Group views the continuation of this role as the mission of its non-life insurance business.
Reducing the growing risks associated with natural disasters is a critical issue for us, as it is essential to our ability to continue providing insurance coverage into the future.
We strive to conduct integrated climate and nature analysis, including assessing the risk of natural disasters caused by climate change and changes in nature.
We use the latest data and analytical tools to analyze the risks posed by nature-re-lated dependencies and impacts on our insurance and investment/loan portfolio companies.
and se
rvices, and natural disaster risk reduction.
Taking these risks and opportunities into account, we engage in demonstration experiments and joint research aimed at risk management, the provision of products and se vices, and natural disaster risk reduction
2
Initiatives addressing risks and opportunities
P.31
▶Enhancing Value Provision in Response to Increasing Natural Disasters
▶Engagement and Risk Assessment with Customers on Climate and Nature Issues
▶Provision of Insurance Products and Services that Support Net Zero, Nature Positive, and the Circular Economy
▶Collaboration and Foundation Building for Green Resilience
Risk Management
▶Process for identifying dependencies, impacts, and risks
P.42
▶Management of natural disaster risks ▶Integration of sustainability considerations
Metrics and Targets
P.47
［ Alignment with the TCFD and TNFD disclosure frameworks ］
The Group discloses information in accordance with the four pillars required under the TCFD (Task Force on Climate-related Financial Disclosures) and TNFD (Task-force on Nature-related Financial Disclosures) frameworks: Governance, Strategy, Risk and Impact Management, and Metrics and Targets.
In particular, as a company that has contributed a member to the TNFD, the Group is an early mover in conducting advanced analyses and studies related to climate-and nature-related aspects within the Strategy pillar, which explains corporate business strategies and their resilience.
Toward Green Resilience
Governance
Strategy
Assessment of Dependencies and Impacts Analysis of Risks and Opportunities
Key Initiatives
Risk Management
Metrics and Targets
Appendix-Detailed Analyses
02
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Contents
- CEO Message
Towards the realization of a resilient and sustainable society
Shinichiro Funabiki
Representative Director President & CEO
October 2025
Mission of the Non-Life Insurance Business
As an insurance and financial group with a focus on non-life insurance, the role of the MS&AD Group is not only to compensate for economic losses caused by disasters and accidents, but also to support social stability and promote growth. Non-life insurance is indispensable both for preparing for unexpected risks in daily life and for enabling companies to conduct business. By making prompt insurance payouts after a major natural disaster, we support rapid recovery and complement the public social security system. Fulfilling this vital role reliably into the future is the mission of our non-life insurance business.
Rising Natural Disaster Risks
In Japan, the Group has long worked to improve the profitability of fire insurance. Recently we succeeded in bringing the Group' s fire insurance business back into the black for the first time in 15 years. However, according to the Intergovernmental Panel on Climate Change (IPCC), even if the rise in global temperatures can be held within 1.5°C, record-breaking extreme weather events are still expected to occur more frequently. The volatility of natural disaster risks will continue to increase, and the environment surrounding the non-life insurance business will become increasingly severe.
In addition, the widening "protection gap" - the portion of economic losses from natural disasters that is not covered by insurance - has become a serious global issue, and Japan, with its high disaster risk, is no exception. For example, among small and medium-sized enterprises, only 35% carry earthquake insurance and only 60% have flood coverage under fire insurance.
It is essential for companies to properly understand natural disaster risks and secure sufficient insurance coverage. At the same time, insurers are expected to provide fire insurance, which functions as society' s safety net, at atfordable premiums.
Toward Green Resilience
Governance
Strategy
Assessment of Dependencies and Impacts Analysis of Risks and Opportunities
Key Initiatives
Risk Management
Metrics and Targets
Appendix-Detailed Analyses
03
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Disclaimer
MS&AD Insurance Group Holdings Inc. published this content on November 11, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on November 11, 2025 at 00:43 UTC.
