Dai ichi Life : Sustainability & Foundation

Sustainability & Foundation

Special Dialogue

Introduction	Purpose ＆	Messages to Our	Value Creation	Strategy &	Sustainability &	Governance	Data
	Values	Stakeholders		Business	Foundation

For True Sustainability Management

As the Dai-ichi Life Group strives to become a global top-tier company, what is needed to enhance corporate value from a sustainability perspective? This section features a special dialogue between Peter David Pedersen, an external expert who was involved in the formulation of our Core Materiality, and Hidehiko Sogano, our CSuO (Chief Sustainability Officer).

Roles of the CSuO and

the Sustainability Unit

Sogano: Sustainability is a broad concept, and as you mentioned the key lies in how we integrate sustainability into our business strategy. My role is to share this perspective with management and at the Board level. In management discussions, we tend to focus on financial indicators, but I feel that it is necessary to gather information on how the world is moving, what is required from us by the world, and to communicate and share that information within the Group.

The Group Sustainability Committee (Sustainability Committee) is a forum for open exchange of ideas among CxOs including CEO Mr. Kikuta, Group Heads of the holding company, presidents of major domestic Group companies, and executives from relevant departments along with external experts like yourself. To encourage candid discussions, we minimize briefings by the secretariat at committee meetings. We also widely open the meetings to the Group so that employees who are not the members of the Sustainability

Committee can become aware of it.

Pedersen: Let me share my thoughts from attending Sustainability Committee meetings. I believe that, first and foremost, it is crucial for the leaders of each business and corporate department to have a strong awareness of the strategic significance of promoting sustainability. In this regard, I’ve noticed significant progress over the past year or two. Many leaders have begun to speak about sustainability as a personal commitment.

Life insurance companies don’t operate factories that emit large amounts of greenhouse gases like, say, automakers. This can make it somewhat difficult to know what to do about sustainability. Therefore, we need to approach sustainability in a proactive and creative manner, exploring new angles to drive our initiatives forward. From that perspective, it is encouraging to see that many leaders are beginning to proactively think and speak about sustainability and take actions accordingly.

Formulation of Core Materiality

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Sustainability & Foundation

Sustainability at the Dai-ichi Life Group

Sogano: When considering sustainability, what is important is the sustainability of the Dai-ichi Life Group itself. “If we keep the same insurance business as we do now, this company may be gone in 100 years.” With this healthy sense of crisis in mind, we are promoting transformation in many business divisions. Recent developments such as the participation of Benefit One in the Group and company-wide promotion of digital transformation (DX) are all linked to these perspectives for sustainability management.

In this context, the role of the Sustainability Unit is crucial. As a company, we cannot escape from pursuing profits based on short-term financial indicators. But at the same time, we need to enhance long-term corporate value, and to do so we must consider what is essential for people to live in a humane way. From this perspective, elements such as the environment, diversity, and human rights naturally come to the forefront, in my opinion.

Pedersen: The Dai-ichi Life Group is fundamentally a life insurance company. Life insurance is a product that involves long-term relationships with customers, so maintaining close connections with people is crucial.

Although I’m only in my second year of involvement with the Dai-ichi Life Group’s sustainability efforts, I believe that the Group is currently in a transitional phase where sustainability and business strategy are becoming truly integrated. In addition to considering how the Group can be a lifetime partner of its customers, I see that now we are already in an era where we need to think about protecting the environment, and what kind of services we can provide to vulnerable people.

Hidehiko Sogano:

Director, Managing Executive Officer, and CSuO (Chief Sustainability Officer) at Dai-ichi Life Holdings. After joining the Bank of Japan in 1983, he joined Dai-ichi Life Insurance in 2015. He has served as an Executive Officer at Dai-ichi Life Holdings since 2018, a Managing ExecutiveOfficer since 2021, and CSuO since April 2023. With extensive experience in financial institutions and deep knowledge of

the SDGs, he is leading the Group’s sustainability management efforts.

Peter David Pedersen:

Representative Director of NELIS Global, an NPO. With more than 20 years of experience in the environmental and sustainability fields, he has been involved in corporate consulting and the development of business leaders. He introduced the concept of “Lifestyles of Health and Sustainability (LOHAS)”

to Japan. Since 2023, Mr. Pedersen has served as an external expert on the Dai-ichi Life Group’s Sustainability Committee, providing advice on material issue selection and shaping the Group’s sustainability strategy with his experience and insights.

Sogano: In the process of developing our new mid-term management plan, announced in April 2024, we also formulated our list of Core Materiality. Mr. Pedersen, you actively participated in these discussions as well.

Pedersen: While the Group had previously established a set of materiality, this time we engaged in extensive discussions to identify Core Materiality that more closely reflects the Group’s strategies and intentions.

Mr. Kikuta has set a goal of becoming a “global top- tier insurance group” as the vision for FY2030. During our discussions on Core Materiality, therefore, we placed emphasis on ensuring that the expressions we use resonate globally. The Group’s four new Core Materiality are primarily presented in English, with Japanese explanations provided beneath them. This approach signifies the Dai-ichi Life Group’s genuine commitment to becoming a global top-tier insurance group.

Sogano: Our biggest challenge was distinguishing ourselves, because many other companies are also formulating their own Materiality. We needed to create something that not only stands up globally but also reflects the unique character of the Group, conveying a sense of human connection.

The first Core Materiality, “Financial Well-being for All,” signifies our commitment to supporting everyone’s happiness, starting with providing financial support. Traditionally, we have provided this “Financial Well-being”through conventional life insurance products. Moving forward, we aim to deliver this through a broader range of services, including those outside insurance services. As people’s lifestyles and values become more diverse, our commitment to expanding our services reflects our desire to financially support the lives of all people. This intention is encapsulated in the words “for All.”

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Sustainability & Foundation

CSuO

Hidehiko Sogano

External expert of the Group Sustainability Committee

Peter David Pedersen

Dai-ichi Life Holdings Integrated Report 2024

Sustainability & Foundation		Special Dialogue For True Sustainability Management

Introduction	Purpose ＆	Messages to Our	Value Creation	Strategy &	Sustainability &	Governance	Data
	Values	Stakeholders		Business	Foundation

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Sustainability & Foundation

The second one, “Healthy People and Society,” emphasizes that true happiness requires both physical and mental well-being. Here, it is essential to not only pursue individual happiness but also contribute positively to the society in which each person is a part. Accordingly, we established the Core Materiality that also includes the perspective of connecting individuals and society.

As our business activities expand, environmental issues that impact the entire planet become increasingly important. The key here is “Environmental Leadership,” our third Core Materiality. We must go beyond simple environmental awareness. Given the Group’s scale, we must provide leadership to other financial institutions and be at the forefront in engaging with investees on addressing environmental issues. That’s why we included the word “Leadership.”

The fourth Core Materiality, “Proactive Governance and Engagement,” is an essential foundation for achieving the other three issues. It emphasizes the need to build a solid base for sustainable management through strong corporate governance, group governance, and HR strategies. Building connections with all stakeholders is also another important element within this issue.

Pedersen: In our discussions on Core Materiality, I focused on proposing language that would capture the unique character of the Dai-ichi Life Group and leave a strong and lasting impression.

As time goes on, the Group will likely see a turnover of people. I hope that new members will understand the intent behind the Core Materiality and view them as crucial guiding principles for leading the Group forward. Once everyone genuinely embraces its Core Materiality and regards them as “cool,” it will inspire leaders to put them into practice.

Sogano: Whether the content resonates with what Mr. Kikuta wants to convey is crucial to the success of our sustainability initiatives, so we were conscious of including this perspective. What is important is how we act voluntarily, not the “feeling of being forced to do something” under regulations.

Environmental initiatives:

TNFD and GFANZ

Sogano: As you mentioned, as a significant portion of the Dai-ichi Life Group’s business is life insurance, the impact of

our sustainability initiatives might not be directly apparent, making them difficult to understand. On the environment, for example, our own GHG emissions account for only 3% of the Group’s total emissions. The remaining 97% comes from the GHG emitted by companies in which we invest using insurance premiums we receive from our customers.

Therefore, we need to collaborate with each of our investees, engaging in dialogue to consider ways to reduce emissions. In this process, we also seek insights from external experts like you, ensuring that we stay informed on current trends while developing our plans.

In addition, in FY2024, the Group registered as an Early Adopter*1 of the recommendations by the Taskforce on Nature-related Financial Disclosures (TNFD). Under the TNFD, location plays a crucial role, requiring us to investigate the specific characteristics of each business location and analyze the impacts on ecosystems, water quality, air quality, and other environmental factors. When considering the environment, we cannot ignore ecosystems, so we must address the recommendations of the TNFD and the Task Force on Climate-related Financial Disclosures (TCFD) together under a comprehensive approach.

However, how to deal with the TNFD recommendations has not yet been firmly established, globally. For this reason, we aim to take the lead by starting early and setting examples for other companies to follow. This is also the rationale for our registration as an Early Adopter.

Pedersen: Over the past three to four years, the actions we need to take on the environment have become much clearer. The three concepts of net zero (NZ)*2, circular economy (CE)*3, and nature positive (NP)*4 are all essential elements in building a sustainable society.

The NZ concept, which involves improving energy efficiency and investing in renewable energy, is relatively easy to understand and quantify. On the other hand, CE and NP are more complex and challenging issues, but addressing them is crucial for the survival of humanity on this planet.

In particular, the TNFD recommendations, which focus on achieving NP, present challenges to implement, but no matter how much NZ is achieved, it is meaningless if nature has been destroyed. While we have a fiduciary responsibility in terms of financial investments, we now also bear a responsibility related to sustainability. How the Dai-ichi Life Group engages in investing and lending within the framework of NZ, CE, and NP will play a key role in shaping the future standard.

Sogano: In terms of shaping the standard, the Glasgow Financial Alliance for Net Zero (GFANZ) is also an important initiative. GFANZ, an initiative that began at COP26 (the 26th UN Climate Change conference ) in Glasgow, has its Asia- Pacific regional headquarters in Singapore. In June 2023,

it established the world’s first national chapter, the Japan Chapter. A total of 24 Japanese companies are participating in this chapter, including Dai-ichi Life, megabanks, regional banks, asset management firms, and life and non-life insurance companies. In addition, the GFANZ Japan Chapter provides a platform for discussion among stakeholders such as financial institutions including regional banks and public-sector lending institutions, government agencies (the Financial Services Agency, the Ministry of Economy, Trade and Industry, and the Ministry of the Environment) to build mutual understanding of the current perspectives of financial institutions. Japan does not have a well-established system for private-sector advocacy toward the government, so such platforms are particularly

important. Participation in the Japan Chapter enables public and private institutions to come together and engage in unified discussions, which I believe is important.

Pedersen: GFANZ has commitments from financial institutions worldwide, with Japan playing a central role. For the Dai-

ichi Life Group, which aims to be a global top-tier insurance group, it is crucial to demonstrate leadership and enhance its presence within this organization.

Publication of the Human Rights Report

Sogano: We were talking earlier about the importance of people. During our recent review of the Group Principles, we also reassessed our Values (values that we uphold) and placed “We care (for our customers, business partners, employees, and the communities and environment in which we operate)” at the top of our priorities. Human rights are a fundamental consideration when it comes to people, impacting not only our employees but also our customers, business partners, and the entire supply chain. In Japan, human rights due diligence is still in its early stages. To promote proper due diligence and increase awareness of its significance, we published the “Dai- ichi Life Group Human Rights Report 2024.”

Pedersen: At the core of this initiative is the belief that respect and care are essential when interacting with various stakeholders throughout the value chain, from upstream suppliers to customers, including socially vulnerable groups in the countries where the Group operates. In the journey to achieve it, human rights are just the first step, not the ultimate goal. Having said so, a strong foundation of human rights recognition is still crucial for effective sustainability management, making your commitment to human rights vital. I’m encouraged by the progress you are making, including the publication of the Human Rights Report.

From a pragmatic perspective, publishing an advanced report like the Human Rights Report also benefits you by positively influencing assessments from shareholders and external evaluation agencies. Sustainability management requires both idealism and realism. Focusing solely on idealism can lead to inefficiency, while adhering only to realism can cause people to derail from their guiding light. Therefore, it is important to drive activities with realism while pursuing our ideal goals.

Challenges in promoting sustainability at the Dai-ichi Life Group

Sogano: I believe there are three main challenges. First is the issue of communication. Those in sales are likely aware of sustainability through their daily interactions with customers, and top management’s awareness of sustainability is also high. However, awareness among our middle-level management seems to be lacking.

Second, all sustainability initiatives need to be disclosed in accordance with global standards. As the Dai- ichi Life Group strives to become a global top-tier insurance company, it is essential for all Group companies to act with a unified perspective. To accomplish this, we need to enhance communication with both domestic and international subsidiaries, ensuring that all parties are aligned.

The third challenge is how to measure and communicate the progress of non-financial value, such as human value and

environmental value. Human value means values created by people, who are not just a component of capital but are themselves the core of a company. By enhancing people’s creativity and embracing an output-oriented mindset, the human value increases overall productivity and corporate value. Sustainability-related initiatives are challenging to quantify, making it difficult to communicate them in an easy-to- understand manner. To address this issue, we plan to cooperate with external research institutions and seek solutions within a two- to three-year time frame. Once this challenge is resolved, the other two challenges will become easier to communicate, leading to a better overall understanding. It also relates to how we address Core Materiality through our business activities and how we link that to corporate value. I am sure that non-financial initiatives are linked to finance, but how can we explain that to the capital markets and others in an easy-to-understand way? Actually, that is my biggest concern right now.

Pedersen: It might take until FY2026, the final year of your new mid-term management plan, to fully integrate the financial and non-financial aspects. Once you have achieved this, the Dai-ichi Life Group’s business will become much more exciting as the Group heads toward FY2030.

I agree with Mr. Kikuta’s views on human capital. While financial performance is a matter of course in a sense, a company should also be able to invigorate both its employees and customers.

I don’t really like the idea of financial and non-financial dichotomy. What matters most, in my view, is working toward a larger goal that unifies the two. I believe the Group’s

goal should be to become a company with a higher overall value by integrating financial value, human value, and, of course, environmental value, thereby earning the support of stakeholders.

Sogano: I look forward to your continued support for the Dai- ichi Life Group as we pursue our vision.

*1 Early adopters of disclosure recommendations published by the TNFD in September 2023

*2 Achieving net zero by subtracting the amount of GHG captured/absorbed from the amount emitted

*3 An economy that maximizes added value through the efficient and circular use of resources at all stages (circular economy)

*4 Preventing and reversing the loss of biodiversity and putting nature back on a path to recovery

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Dai-ichi Life Holdings Integrated Report 2024

Sustainability & Foundation

Group Sustainability Promotion Structure

Sustainability promotion structure

Introduction	Purpose ＆	Messages to Our	Value Creation	Strategy &	Sustainability &	Governance	Data
	Values	Stakeholders		Business	Foundation

		Financial Well-being for All	Environmental Leadership
		Healthy People and Society	Proactive Governance and Engagement
Sustainability management promotion cycle
the Group promotes effective sustainability management through	based on the ISSB/SSBJ standards, while strengthening efforts for
the following PDCA cycle.	stakeholder communication, such as visits by the CSuO to Group
In FY2024, we aim to develop IT infrastructure for data	companies and offices, and establishment of communication lines
acquisition in anticipation of information disclosure requirements	with Group companies.

The Group is building a sustainability promotion structure centered on	In FY2024, the Sustainability Unit was established to further
the Group Sustainability Committee to make meaningful contributions	accelerate Group-based sustainability initiatives that integrate
to the realization of a sustainable society.	environmental, social, and governance issues based on international
In April 2023, the new position of Chief Sustainability Officer	standards.
(CSuO) was created for an individual tasked with promoting the Group
sustainability strategy and chairing the Group Sustainability Committee.

● Formulate and review the Group Principles
● Understand interrelationships between the Group	1	2
Principles, management strategies, and the
sustainability policy

● Formulate and review Core

Materiality

● Understand interrelationships

between the sustainability policy and

each business strategy

● Establish indicators to measure

initiatives related to Core Materiality

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Supervision

Execution

Board of Directors

Executive Management Board

Reports

Group Sustainability Committee

Committee

Chief Sustainability Officer（CSuO）

Chair

Collaborates

• Each Chief Officer (CxO)

• Each Group Head

Members

• Presidents or CEOs of domestic Group companies

(Dai-ichi Life, Dai-ichi Frontier Life, Neo First Life, ipet Insurance)

• Dai-ichi Life’s Officers in charge of Corporate Planning

and Responsible Investment

Note: External experts and such are invited in accordance with the theme

Sustainability Unit

Secretariat

Various committees

• Group ERM Committee
• Group Compliance Committee
• Group Human Rights Awareness Promotion Committee, etc.

• Establish communication lines with major overseas Group companies
• Visits by the CSuO to Group companies and offices, etc.
• Implement measures to raise employees’ awareness and promote instillment
• Hold sustainability-focused IR information meetings and engage with stakeholders on human rights

Establishment and	Formulation of plans
instillment of
corporate philosophy
Stakeholder	Execution,
performance analysis,
communication
and disclosures
4	3

● Implement instillment measures and
	supplement resources
● Strengthen information disclosures
	in light of regulations (ISSB/SSBJ)
● Disclose information compatible
	with a review of external ESG
	assessments
● Utilize sustainability information in
	management strategies
●		2
	Develop an IT infrastructure for CO
	emission measurements		74

Fostering awareness among officers and employees

Sustainability & Foundation

	Domestic Group companies	Collaborates		Global meetings
Dai-ichi Life	● Employee Well-being Improvement		◆ Global Leaders Committee (GLC)
Committee

• Responsible Investment Committee, etc.

								Overseas Group
Dai-ichi Frontier Life	Neo First Life	ipet Insurance			Collaborates
etc.				companies

Group Sustainability Committee

The Group Sustainability Committee discusses the Group’s policies	perspective throughout the Group. These discussions all consider
and strategies, effective publication of information including	the opinions of external experts. The Committee then reports its
external commitments, and monitoring of the implementation of	discussions to the Executive Management Board and the Board of
initiatives at each Group company, from a medium- to long-term	Directors.

The Group has rolled out a range of initiatives to foster awareness	understanding of the overall picture of sustainability and the status	Sustainability
of sustainability management Group-wide. In FY2024, we	of the Group’s efforts.” We will continue efforts to further improve
&
established the Sustainability Unit under a new structure and are	operation of the committee going forward. Apart from that
Foundation
expanding staff to promote and instill awareness of sustainability	initiative, more than 1,300 executives and employees from 11
initiatives throughout the Group. As a new initiative, the Group	Group companies participated in the ECO Action Relay, a Group-
Sustainability Committee meetings are open to all Group staff	wide environmental event held in FY2023.
members, and ca. 140 Group employees participated in the first
FY2024 meeting. We received feedback from the participating
employees. One of the comments was “I gained a deeper

Sustainability information disclosure

■Recent topics of discussion

Month	Overview
May	● Positionings of sustainability initiatives and business activities
2023	● Transition finance initiatives at Dai-ichi Life
September	● Revising our materiality
● Our challenges and direction of action in response to the ISSB standards
2023
and external ESG assessments
December	● Sustainability policy for the next mid-term management plan
2023
March	● Promotion of sustainability management during the next mid-term
management plan
2024
● Progress of human rights initiatives
May	● Sustainability initiatives at major overseas Group companies
● Direction for enhancing human capital disclosures
2024
● Future initiatives based on the value creation story

■Main external experts*

Yoshiki	Representative Director of the Well-
Ishikawa	being for Planet Earth Foundation
Peter David	Representative Director of NELIS
Pedersen
Yukari	Professor, The University of Tokyo
Takamura	Institute for Future Initiatives

*Participants are invited as appropriate based on the theme of each session.

Dai-ichi Life Holdings prepares its Sustainability Report to provide	addition, we are working to expand the information on our website,
all stakeholders with a deep understanding of the Group’s	not only updating it on a yearly basis but also releasing the latest
approach to sustainability and the major initiatives it is pursuing. In	information as needed.

https://www.dai-ichi-life- hd.com/en/sustainability/report/index.html

Dai-ichi Life Holdings Integrated Report 2024

Sustainability & Foundation

Climate Change and Natural Capital Initiatives

Introduction	Purpose ＆	Messages to Our	Value Creation	Strategy &	Sustainability &	Governance	Data
	Values	Stakeholders		Business	Foundation

Environmental Leadership

• Risk management

Risk management system

－Disclosures Based on the TCFD and TNFD Recommendations－

• Introduction and background

The Group is implementing risk management that takes appropriate measures at an early stage by specifying foreseeable risks with the potential to significantly impact its business as “material risks” and formulating business plans that take these risks into account*5.

issues, particularly climate change, are a challenge to be tackled by the international community as a whole, and the Group recognizes that addressing climate change is an important management issue that could have a significant impact on customers’ lives and health, corporate activities, and social sustainability. In response to this,

It is estimated that more than half of the world’s GDP is derived from nature and ecosystems, and natural capital is an important foundation for the Group’s business activities. The two are also said to be closely related, as heavy rains, floods, and droughts caused by climate change can lead to the degradation of natural capital.

Based on this recognition, the Group, as a member of society, considers that the conservation of the local environment, climate change countermeasures, global environmental protection, the

ensure the sustainability of the global environment, which is the foundation of people’s lives. Under this Core Materiality, the Group, as an operational company and as an institutional investor, is committed to strategic responses to environmental challenges, particularly climate change and natural capital, with the goal of contributing to the realization of a decarbonized society. We will also actively communicate our views and become more involved in and contribute to global rulemaking through active participation in domestic and

We rate the impact*6 of the risks and the possibility of their occurrence on a scale of one to four based on the results from identifying material risks affecting Group companies. Using a heat map, the Risk Management Unit specifies material risks and reviews them every fiscal year. With the Paris Agreement taking effect in 2016, there is a growing recognition that environmental

since fiscal 2019 we have selected climate change–related risks as one of our material risks and have been strengthening our risk management. Specifically, the Group ERM Committee, chaired

by the Chief Risk Officer, discusses how to assess and respond to physical and transition risks, and reports to the Executive Management Board and the Board of Directors as necessary.

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Sustainability

preservation of natural capital and biodiversity, and the creation of a recycling-oriented society are among its corporate social responsibilities. The Group will always act in consideration of its impact on the environment, in compliance with the Group’s “Vision and Group Action Principles for Environmental Initiatives*1,” and in keeping with the “Basic Policy on Responsible Investment*1 ” of our domestic core subsidiary, Dai-ichi Life.

In the new mid-term management plan, we have defined

“Core Materiality” as important issues that we must prioritize in order to realize our Group’s vision for FY2030. We have also defined “Environmental Leadership” as an issue that we must address to

international initiatives such as GFANZ*2, the world’s largest coalition of financial institutions with a net-zero commitment.

To realize the aspirations*3 embedded in the Group Purpose, we will demonstrate leadership both as an institutional investor and a operational company to an even greater degree. This includes enhancing measures that could become examples to others, such as improving sustainability disclosures. Through these efforts, building public trust, and creating customers’ empathy, we aim to help form a sustainable society and ultimately accelerate the sustainable growth of our business.

Governance/Risk management framework for addressing climate change and natural capital (as of April 2024)

Dai-ichi Life Holdings

Supervision

Board of Directors

Executive Management Board

Reporting

to

Reports as part of material risk management

Execution

Group Sustainability Committee (held four times/year)

Group ERM Committee (held five times/year)

● Develops and discusses policies and strategies for addressing

● Formulates risk management policy and checks compliance status

climate change and natural capital, and monitors the progress of

● Reviews measures to strengthen the risk management system

implementation of initiatives

Collaborates

Chair: Chief Sustainability Officer (CSuO)

Chair: Chief Risk Officer (CRO)

Secretariat: Sustainability Unit

Secretariat: Risk Management Unit, etc.

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& Foundation

• Governance

Roles of the Executive Management Board and the Board of Directors

Under the supervision of the Board of Directors and in accordance with	Group goals, direction of initiatives, risk responses) is regularly
its business plan on climate change led by the Executive Management	reported to the Executive Management Board and the Board of
Board, the Group is promoting initiatives related to climate change and	Directors. By ensuring oversight from the Board of Directors, we have a
natural capital through the Group Sustainability Committee, the Group	framework that further strengthens efforts to address climate change
ERM Committee, and other committees. The status of initiatives (e.g.,	and natural capital issues.

Collaborates (e.g., information sharing, monitoring)			Collaborates (e.g., information sharing, monitoring)
		Group Companies

• Strategy/Metrics and targets
• Climate Change Initiatives -

Net Zero Transition Plan

& Foundation

Initiatives to strengthen our governance structure

As a financial institution, we produced and disclosed our Net Zero Transition Plan in August 2023 to promote a more integrated

Dai-ichi Life and Dai-ichi Frontier Life to reduce Scope 3 (investments) emissions by 50% by 2030 (compared with 2020

As one of the measures to strengthen the Group’s governance structure, the Group Sustainability Committee was established in April 2021, and since April 2023 the Committee has been chaired by the Chief Sustainability Officer. Under this structure, the Committee is responsible for developing sustainability-related policies and strategies, including measures to address climate change and natural capital, and monitoring the implementation of these measures. In addition, starting in July 2022, sustainability

*1 For details of the policy, please refer to the respective pages on our website, as listed below.

Vision and Group Action Principles for Environmental Initiatives https://www.dai-ichi-life-hd.com/en/sustainability/environment/initiative.html Basic Policy on Responsible Investment https://www.dai-ichi-life-hd.com/en/sustainability/esg/investment_policy.html

*2 Glasgow Financial Alliance for Net Zero. Please refer to P.83 for details of this initiative and the Group’s initiatives.

indicators*4, including an indicator related to progress in reducing CO2 emissions, have been included as part of performance-based stock remuneration for the Company’s executives. In April 2024, we reorganized the Sustainability Office into the Sustainability Unit. We beefed up the workforce by coordinating the sustainability policies and activities of the entire Group, thereby reinforcing our contributions to a decarbonized society and nature-positive activities.

*3 The Group Purpose: “Partnering with you to build a brighter and more secure future.”

*4 Please see P.105 for details on the remuneration system for directors and executive officers.

*5 Please refer to the following webpage for details on risk management: https://www.dai-ichi-life-hd.com/en/about/control/in_control/administer.html

*6 Degree of impact is assessed based on economic loss, reputational damage (impact on sales, management responsibility, and stock price), and other factors.

response to climate change issues aimed at transitioning to net zero in the real economy. This plan was formulated in reference to the transition plan guidance of GFANZ, etc.

The current transition plan is formulated mainly focusing on the activities of Dai-ichi Life, the Group’s core subsidiary in Japan. It is overseen by the CSuO and administered by the Sustainability Unit, with relevant departments of Dai-ichi Life in charge of promoting their respective initiatives. Its implementation progress is monitored and discussed by the Group Sustainability Committee, which reports its findings to the Executive Management Board and is supervised by the Board of Directors.

In March 2024, we set new interim reduction targets for GHG emissions, aiming to reduce Scope 1 & 2 emissions by 75% by FY2030 (compared with FY2019 levels), and a common target for

levels). As of the recent time period, Scope 1 & 2 emissions have been reduced by 62% (compared with FY2019), and Scope 3 (investments) emissions have been reduced by 31% (compared with 2020, on an absolute emissions basis) and 34% (compared with 2020 on an intensity basis) at Dai-ichi Life and Dai-ichi Frontier Life, respectively, demonstrating steady progress toward our goals. Please refer to “Initiatives as an Institutional Investor” on page 79 to learn more about our performance and targets for investments contributing to environmental and climate change solutions.

Full text of the Net Zero Transition Plan

https://www.dai-ichi-life-hd.com/en/sustainability/ environment/nztransitionplan.html

Dai-ichi Life Holdings Integrated Report 2024

Sustainability & Foundation

Introduction	Purpose ＆	Messages to Our	Value Creation	Strategy &	Sustainability &	Governance	Data
	Values	Stakeholders		Business	Foundation

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Road map to net zero

FY2020

～

2022

2023

2024

2025

2026

2030

2040

2050

Initiatives as an operational company

Road map toward FY2030

Reduction of Scope 1 & 2 emissions*7

● 50% reduction

● 75% reduction

Net

Achievement of 100%

(entire Group)*9

(entire Group)*9

zero

renewable energy (RE) (Dai-ichi Life)

Reduction of Scope 3 emissions (other than Category 15)*7

● 30% reduction (Dai-ichi Life)*9

Net

zero

targets

Initiatives as an institutional investor (Unless otherwise noted, the following targets are for both Dai-ichi Life and Dai-ichi Frontier Life)

Reduction of Scope 3 emissions*7

● 25% reduction (Dai-ichi Life)*10

● 50% reduction*12

Net

zero-Net

(Category 15, financed emissions*8)

● 15% reduction (Dai-ichi Frontier Life)*11

zero

Environmental & climate solution investments

● ●

2.4mn tons CO2ep.a.

Cumulative total ¥2.5tn

Engagement with investees

Continued engagement with the top 50 emitters in the investment portfolios

Fostering awareness among Group employees

Participating in and promoting international initiatives

Appointed as a GFANZ Principals Group member

Joined NZAOA*13

Establishment of CSuO

Strengthening our governance and execution

Established the Group Sustainability Committee

Set sustainability indicators as KPIs for executive remuneration

Climate-related risks and opportunities

Scenario analysis

Climate change risks are expected to have a wide range

of spillover pathways and could materialize over various time frames. Based on the TCFD recommendations, the Group recognizes climate change risks by classifying them into physical risks*16 and transition risks*17 and sorting them out by risk category. The Group assumes the examples shown in the table on the right as climate change risks that could materialize over a time frame of about three years in the short term and more than 10 years in the long term, and conducts scenario analyses for underwriting risks and market/credit risks.

As part of our efforts to understand risks related to claims and benefit payments, we have been analyzing the relationship between temperature and Dai-ichi Life’s claims and benefits since FY2020, in cooperation with Mizuho–DL Financial Technology Co., Ltd. Please refer to the Sustainability Report published in the autumn of 2024 for details.

In addition, we use MSCI’s CVaR methodology for analyzing those market and credit risks that constitute physical and transition risks for invested assets. The aggregated CVaR was (13.8%) for the NDCs scenario*18 with the highest physical risk and (18.8%) for the Net Zero 2050 scenario with the highest transition risk. In comparison to the benchmark, superior results were shown in the Net Zero 2050 scenario in terms of both transition and physical risks. In addition, the implied temperature rise (ITR)*19 of the Group’s portfolio was 2.3°C.

	Environmental Leadership
Risk categories	Examples of major physical and transition risks
Underwriting	[Physical risk] Risk of an increase in insurance claims and benefits
risk	paid due to an increase in mortality, etc., caused by the spread of heat
stroke and infectious diseases resulting from rising temperatures
	[Physical risk] Risk of deterioration in the financial condition of
	a credit recipient due to damage to business facilities caused
Market/credit	by extreme weather or disruption of supply chains in the
risk	manufacturing industry
[Transition risk] Risk that the prices of assets held will decline
	as businesses are affected by decarbonization and as society
	increasingly chooses to invest in decarbonization

[Physical risk] Risk of increased insurance payouts due to extreme Liquidity risk weather conditions and risk of inability to conduct sufficient market transactions due to market disruptions caused by natural disasters

	[Physical risk] Risk of damage to data centers, business offices,
Operational	and other locations necessary for operations due to extreme
weather conditions, resulting in the suspension of operations
risk
[Transition risk] Risk of financial losses due to fines, lawsuits, etc.,
	stemming from inadequate measures to address climate change
	[Transition risk] Risk that our business will be negatively impacted
Reputational	by being evaluated as inappropriate by stakeholders (due to our
inadequate climate change initiatives), continued relationships with
risk
business partners that are insufficiently environmentally conscious,
	or other factors.

CVaR (impact/amount of subject assets)

				Portfolio				Benchmark
	← 1.5°C scenario →	← 2°C scenario →		← 3°C scenario →		← 1.5°C scenario →
+5%	Net Zero 2050	Delayed transition	NDCs	Fragmented World	Net Zero 2050
+0%
(5%)
(10%)
(15%)	Transition		(14.6%)	(13.8%)	(14.2%)
(20%)
risk	(18.8%)
(25%)
							(24.0%)
(30%)		■ Policy risk	■ Opportunities	■ Physical risk	■ Total

Subject assets are Dai-ichi Life’s equities and corporate bonds and Dai-ichi Frontier Life’s corporate bonds, totaling approximately ¥10 trillion. Benchmarks are NOMURA-BPI corporate bonds (for domestic corporate bonds), Barclays Global Corporate Bond Index (for foreign corporate bonds), TOPIX (for domestic equities), and MSCI ACWI (for foreign equities). Data: As of March 31, 2024 Source: Reproduced by permission of MSCI ESG Research LLC

Physical risk is measured using the RCP 8.5 scenario and transition risk using the NGFS scenario.

78

Sustainability &

Foundation

The Group recognizes that climate change might bring several impacts (shown below) over the medium to long term. Based on the results of analyses using the SSP scenario*14 (5–8.5), the NGFS scenarios*15, and other scenarios, the Group, as an operational company and an institutional investor, will strive to enhance resilience to climate change and seize related opportunities.

For details, see our Sustainability Report published in the autumn of 2024

https://www.dai-ichi-life-hd.com/en/sustainability/report/ index.html

Initiatives as an operational company

Foundation

	● Increase in insurance claims and benefits paid due to increase in heatstroke and infectious diseases and in flood damage caused by typhoons
	associated with global warming
Risks	● Decrease in the value of investments due to an inadequate response to environmental changes such as the introduction of carbon taxes, damage
	to assets caused by changes in the market and social environment, development of new technologies, and changes in consumer behavior
	● Reputational damage and litigation due to delays in addressing climate change
	● Provision of products and services that contribute to reducing GHG emissions
Opportunities	● Increase in investment opportunities, including in the renewable energy business, that contribute to resolving climate change issues
● Greater resilience of the investment portfolio resulting from proper assessment of investees’ climate risks and opportunities
	● Reduced operating costs through the introduction of infrastructure with high resource efficiency

The Group’s Scope 1 & 2 emissions were ca. 42,700 tons in FY2023 (a reduction of ca. 62% from FY2019), achieving the Group’s medium-term reduction target (50% reduction in FY2025) ahead of schedule.

Since becoming the first Japanese life insurance company to join the RE100*20 in 2019, Dai-ichi Life has been reviewing its electricity supply and demand contracts, providing off-site corporate PPA services*21, and utilizing environmental values such as J-Credits and non-fossil certificates. The Climate Group, the operator of RE100, announced in its RE100 Annual Disclosure

Report 2023 that Dai-ichi Life had achieved 100% of its RE100 targets for FY2022, making it an official RE100 achiever. We are also pushing for the introduction of renewable energy at other Group companies in Japan and overseas. In addition, Dai-ichi Life’s Scope 3 (other than Category 15) emissions reached a level of ca. 44,300 tons in FY2023 (a reduction of ca. 11% from FY2019) through the phased reduction of office paper consumption and other measures.

We will continue making Group-wide efforts to achieve net-zero emissions.

*7 Scope 1: Direct emissions by the Group; Scope 2: Indirect emissions from the generation of purchased or acquired electricity, etc., consumed by the Group; Scope 3: Indirect emissions other than Scope 1 and 2 emissions. Dai-ichi Life’s Scope 3 (excluding Category 15) emissions include Category 1 (Purchased goods and services), Category 3 (Fuel- and energy-related activities (not included in Scope 1 and 2)), Category 4 (Upstream transportation and distribution), Category 5 (Waste generated in operations), Category 6 (Business travel), Category 7 (Employee commuting), and Category 12 (End-of-life treatment of sold products).

*8 GHG emissions of investees (Scope 3, Category 15)

*9 Compared with FY2019

*10 Compared with 2020 (listed equities, corporate bonds, and real estate portfolios)

*11 Compared with FY2020, based on GHG emissions per unit of assets held (intensity)

*12 Compared with 2020. On an intensity basis for Dai-ichi Frontier Life (listed equities, corporate bonds, real estate portfolio, and corporate loans).

*13 The UN-convenedNet-Zero Asset Owner Alliance (association of institutional investors committed to transitioning their portfolios to net zero by 2050)

*14 Shared Socioeconomic Pathways: Climate change scenarios set by the Intergovernmental Panel on Climate Change (IPCC)

*15 Climate change scenarios set by the Network for Greening the Financial System (network of financial authorities on climate risks, etc.)

*16 Risk of direct damage to real estate and other assets due to long-term climate change such as rising temperatures and sea level rise, and natural disasters such as typhoons

*17 Risks arising from new government policies, technological innovation, market changes, etc., in the process of transitioning to a low-carbon economy

*18 Nationally Determined Contributions

*19 Implied Temperature Rise. Indicators to analyze whether investees have set GHG emission reduction targets consistent with the goal of limiting global warming to 2°C by 2100.

*20 International initiative aiming to procure 100% of electricity consumed in business activities from renewable energy sources

*21 Method of procuring electricity utilizing a scheme in which a solar power generation facility dedicated to Dai-ichi Life is installed on land remote from where the demand is located, and the electricity thus generated is sent to the demand location along with its environmental value.

Dai-ichi Life Holdings Integrated Report 2024

Sustainability & Foundation

Initiatives as an institutional investor

Introduction	Purpose ＆	Messages to Our	Value Creation	Strategy &	Sustainability &	Governance	Data
	Values	Stakeholders		Business	Foundation

Environmental Leadership

Investments addressing social issues including environment and climate change

Dai-ichi Life, the Group’s core domestic subsidiary, has positioned the resolution of climate change issues as the most important issue for responsible investment. Dai-ichi Life has made more progress than initially expected on the targets set out in its “Medium-Term Policy for Responsible Investment (through FY2024)” set in April 2022.

In March 2024, Dai-ichi Life and Dai-ichi Frontier Life jointly adopted the “Medium-Term Policy for Responsible Investment (through FY2029)” to promote responsible investment across the Group.

To achieve net-zero emissions by 2050, the two companies set interim reduction targets for their investment portfolios up to

2030, and jointly promote initiatives focused on increasing positive impacts through the promotion of investments, and promoting the formulation and implementation of decarbonization strategies for investees through ongoing engagement. By undertaking these initiatives while leveraging the knowledge and expertise of both companies toward decarbonization, we will make greater contributions to the realization of a decarbonized society.

Medium-Term Policy for Responsible Investment (through FY2029)

https://www.dai-ichi-life.co.jp/english/dsr/investment/pdf/ri-report_005.pdf

Dai-ichi Life and Dai-ichi Frontier Life are expanding their investments (sustainability thematic investments) aimed at addressing social issues, including climate change. The cumulative amount of these investments reached ca. ¥2.5tn as of FY2023, and we intend to increase this amount to more than ¥5tn by FY2029, in order to further create a positive impact on society.

In particular, to strengthen our response to climate change, which is the most important theme of our responsible investment, we have set a target of increasing our investments that contribute to solving environmental and climate change issues (environmental and climate solution investments) to more than ¥2.5tn by FY2029, from a cumulative total of ¥1.2tn at FY2023. Through investments, we will contribute to the transition toward the reduction of GHG emissions and the realization of a decarbonized society.

In addition to the monetary target, we have set a target of increasing the annual GHG reduction contribution from investments to 2.4mn tons CO2e by FY2026 as an impact target indicator in order to expand the positive impact of our investments. We will promote the disclosure of impact indicators through engagement with our investees and other means, and will work to advance other methods for measuring environmental and social impact.

Launching of DL Sustainability Finance Frameworks

https://www.dai-ichi-life.co.jp/english/news_ release/2023/pdf/index_011.pdf

79

Sustainability & Foundation

Reduction of GHG emissions from the investment portfolios

Dai-ichi Life and Dai-ichi Frontier Life have set an interim target*22	levels), and are proceeding ahead of schedule toward the 2025
of reducing GHG emissions in their portfolios by 50% by 2030	target. We believe this is due to a combination of factors, including
(compared with 2020), in addition to their 2025 goals*23, as part of	the progress of GHG emission reduction efforts by our portfolio
their efforts to achieve net-zero emissions by 2050.	companies and market fluctuations that affect the calculation of
In 2023, Dai-ichi Life and Dai-ichi Frontier Life achieved	GHG emissions allocated to the two companies.
reductions of 31% and 34%, respectively (compared with 2020

Change in GHG emissions (listed equities, corporate bonds, real estate, and corporate loan portfolios)

Absolute emissions		Dai-ichi Life: Listed equities,		Dai-ichi Life: Corporate loans (left axis)	Intensity
(10,000 tCO2e)		corporate bonds, and real estate (left axis)		(tCO2e/million yen)
2,000					Dai-ichi Frontier Life: Corporate bonds (right axis)				1.5
1.28
				1.16	1.11

Cumulative amount of investments for resolving social issues

Sustainability thematic investments*24	Target:
ca. ¥2.5tn	ca. ¥5.0tn

(ca. ¥2tn by Dai-ichi Life and ¥0.5tn by Dai-ichi Frontier Life)

Environmental and climate solution investments*25
ca. ¥1.2tn	Target:
(ca. ¥0.9tn by Dai-ichi Life and ¥0.3tn by Dai-ichi Frontier Life)	ca. ¥2.5tn

2019	2020	2021	2022		2023	2026	2029	FY
	Positive impact via investments		1.83mn tons	2.4mn tons	Target:
	Annual GHG reduction contribution*	26	CO e	CO e
					2	2

Engagement with investees

80

Sustainability & Foundation

1,500							(15%)
				(34%)＊		0.99
1,281					1.0
					0.84
			1,080	1,018			(50%)
1,000						0.64
				890
745
			608	569		(31%)	641		0.5
				510

Dai-ichi Life and Dai-ichi Frontier Life promote the formulation and implementation of net-zero strategies for their portfolio companies through ongoing engagement with the top 50 GHG emitters in their investment portfolios.

In addition, to strengthen our climate change engagement, we have set reduction levels (emission intensity targets) to aim for in the electricity and steel sectors, which account for a large share

of the investment portfolio emissions. The levels are set based on the net-zero scenario required for each industry and the status of each company. By actively engaging with investees while utilizing these indicators, we will support and promote GHG emission reduction efforts by our portfolio companies, thereby contributing to the realization of a decarbonized society.

500									（	listed equities, corporate bonds,	）(25%)
								real estate, corporate loans			Net Zero
			537								（	(29%)	）
				472		450		380		listed equities,		403
										corporate bonds,
0											real estate					0
2020		2021	2022		2023						2025	2030	2050
														Interim target	Interim target

Note: Dai-ichi Frontier Life’s reduction rate from 2021, the base year for the 2025 interim target, is (27%).

*22 Corporate loans were added to the subject assets for Dai-ichi Life.

*23 Dai-ichi Life: 25% reduction; Dai-ichi Frontier Life: 15% reduction (intensity basis). Subject assets are listed equities, corporate bonds, and real estate portfolio for Dai-ichi Life, and corporate bonds for Dai-ichi Frontier Life. The base year is as of March 2020 for Dai-ichi Life and as of March 2021 for Dai-ichi Frontier Life (2025 target only; 2030 target is the same base year as Dai-ichi Life)

Environmental and

climate solution

investments

Engagement activities

Realization of

1. decarbonized society

Strengthen

initiatives

Clarifying the required levels for each sector - well below 2°C and aiming for a level of 1.5°C -

Sector	Level to aim for in 2030*27
Electricity	186–255g/kWh*28
Steel	(16%) (compared with 2020)*29

*24 Renamed from ESG-themed investments

*25 Renamed from climate change solution investments

*26 Projects for which estimates can be made from the amount of electricity generated in renewable energy power generation projects, etc. (calculated in accordance with PCAF standards), and projects for which data is disclosed in green bonds, etc. (Some of the measurement results include data provided by ICE Data Services.)

*27 Developed with reference to the IEA NZE and APS scenarios. Reviewed as appropriate based on changes in the external environment and updates to the net-zero scenario.

*28 Based on data held by Dai-ichi Life (as of 2020), the actual performance of the electricity sector is 402 g/kWh. *29 The unit for the steel sector is emission intensity (emissions per ton of crude steel produced).

Dai-ichi Life Holdings Integrated Report 2024

Sustainability & Foundation

- Natural Capital Initiatives -

Nature-related portfolio analysis

The following analysis was conducted in accordance with the LEAP approach*30 proposed by the TNFD to identify nature-related risks and opportunities.

Introduction	Purpose ＆	Messages to Our	Value Creation	Strategy &	Sustainability &	Governance	Data
	Values	Stakeholders		Business	Foundation

Environmental Leadership

Figure 2: Priority areas and high-riskitems Tools used: ENCORE*33, WWF risk filter (Biodiversity and Water)

Priority Area No.	1		2	3	4		5		6
	○		○	○	○		○		○
Sector		Materials			Utilities
Business/	Metals & Minerals/Mining	Solar power	Hydroelectric power generation		Wind power	(Reference)
Process	generation		generation	Analysis tools
Company name		Company A	Company B	Company C		Company D
Location	Philippines		Philippines	Hiroshima Pref.	Gifu Pref.		Tochigi Pref.	Shizuoka Pref.
Dependent	Groundwater, surface water, water quantity		Surface water, water quantity maintenance,
ecosystem	Climate control	climate control, mass stabilization and erosion	Ventilation	ENCORE

1. Identify interface with nature

In the previous year, we conducted a nature-related risk analysis of the domestic equity portfolio of Dai-ichi Life, the Group’s core domestic subsidiary, and identified three high-risk sectors: “consumer staples,” “materials,” and “utilities.” This year, we selected 10 companies and 30 business locations from the three high-risk sectors taking into account their importance to Dai-ichi Life and their dependence on and

impact on natural capital. For these 30 locations, we evaluated their interfaces with nature based on the four definitions of sensitive locations proposed by the LEAP approach (Figure 1). As a result, we identified four domestic locations and two overseas locations as high overall risk (priority areas).

services	maintenance, climate control		control, flood and storm control
Factors	Interference with daily life, freshwater ecosystem use,
GHG emissions, non-GHG air pollution, soil pollutants,	Terrestrial ecosystem	Freshwater ecosystem use, soil pollutants, terrestrial	Marine ecosystem use,
impacting on	ENCORE
solid waste, terrestrial ecosystem use, water pollutants,	use, water use	ecosystem use, water pollutants, water use	terrestrial ecosystem use
nature
water use
	[Reputational risk]	[Reputational risk]	[Reputational risk]	[Reputational risk]	[Reputational risk]	[Reputational risk]
	Deterioration of	Deterioration of corporate	Deterioration of	Deterioration of	Deterioration of	Deterioration of
	corporate reputation	reputation due to	corporate reputation	corporate reputation	corporate reputation	corporate reputation
	due to conflicts over	negative impacts on local	due to threats to healthy	due to threats to healthy	due to threats to healthy	due to threats to healthy
	limited water resources	environmental assets	ecosystems in the	ecosystems in the	ecosystems in the	ecosystems in the
	and negative news	(protected areas and key	surrounding waters	surrounding waters	surrounding waters	surrounding waters
		biodiversity areas)
	[Physical risks]	[Reputational risk]	[Physical risks]	[Physical risks]	[Physical risks]	[Physical risks]
	Occurrence and	Deterioration of	Occurrence and	Occurrence and	Impact of flooding on	Occurrence and
	increased intensity	corporate reputation	increased intensity	increased intensity	businesses and value	increased intensity

81

Sustainability & Foundation

*30 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. This year, we focused our descriptions on the Locate, Evaluate, and Assess phases.

Figure 1: Interfaces with nature at portfolio company business locations			Tools used: IBAT, Global Forest Watch (GFW), Aqueduct
Sector	Consumer staples										Materials															Utilities
																																					toolsAnalysis
	Crops & food/		Industrial	Aluminum/										Metals &	Metals/Fabrication	Solar power	Biomass	Hydroelectric	generationpowerWind	generationpowerNuclear
Business/Process		gases/				Copper/Mining					minerals/		power		power
Manufacturing			Refining								generation
	Manufacturing											Mining			generation	generation
																																				(Reference)
	Pref.Gunma	Pref.Hokkaido	Pref.Nagano	Pref.Niigata	Pref.Hokkaido		Pref.Ibaraki		Pref.Tochigi	Pref.Shizuoka	Pref.Osaka	Pref.Kagawa	FukushimaPref.	US	Peru	Chile	Australia		China	Philippines	Philippines		CaledoniaNew	Indonesia	Pref.Iwate	Pref.Hiroshima	Pref.Kagawa	Pref.Hiroshima	Pref.Aichi	Pref.Gifu	Pref.Tochigi		Pref.Gunma	Pref.Shizuoka	Pref.Shizuoka
Location No.	1	2	3	4	5		6		7	8	9	10	11	12	13	14	15		16	17	18		19	20	21	22	23	24	25	26	27		28	29	30
Location Address*31
Areas important for																																					IBAT,
biodiversity																																					GFW
Areas of high ecosystem																																					GFW
integrity
Areas of rapid decline in																																					GFW
ecosystem integrity
Areas of high physical																																					Aqueduct
water risks
Overall risk assessment*32	6	6	9	7	4		6		7	6	6	6	7	4	6	4	4		5	12	12		6	8	9	11	6	7	6	10	10		8	10	9

*31 Analyzed based on the address information of each location. For disclosure, shown up to the name of the prefecture in Japan and up to the name of the country in overseas *32 Calculation method for overall risk assessment

• The risk level of each of the 30 locations is scored according to each of the four definitions of sensitive locations high risk: 3 points , medium risk: 2 points , and low risk: 1 point .

• In the overall risk assessment, X<7 is considered to have a low overall risk rating, 7≤X<10 is considered to have a medium overall risk rating, and 10≤X is considered to have a high overall risk rating (priority areas).

2. Analysis of nature-related dependencies and impacts, and assessment of nature-related risks <_evaluate2c_ assess="">

Major risk items*34	of natural disasters	due to political climate,	of natural disasters	of natural disasters	chains	of natural disasters	WWF Risk Filter
	due to degradation of	media coverage,	due to degradation of	due to degradation of		due to degradation of	(Biodiversity and Water)
	ecosystem services	international interest in	ecosystem services	ecosystem services		ecosystem services
		a particular region
	[Reputational risk]	[Reputational risk]	[Physical risks]	[Physical risks]	[Physical risks]	[Physical risks]
	Deterioration of corporate	Deterioration of	Impact of flooding on	Impact of flooding on	Occurrence and	Impact of flooding on
	reputation due to negative	corporate reputation	businesses and value	businesses and value	increased intensity	businesses and value
	impacts on local	due to infringing on	chains	chains	of natural disasters	chains
	environmental assets	water resources that			due to degradation of
	(protected areas and key	are culturally important			ecosystem services
	biodiversity areas)	to local communities
		and indigenous peoples

*33 A nature-related risk analysis tool developed by the Natural Capital Finance Alliance (NCFA), an international financial industry association for the natural capital sector, and others. The current version as of June 2024 was used.

*34 The top three risks identified by the WWF risk filter are listed in descending order of risk. Of the risk items, indicates WWF risk filter (Biodiversity) and indicates WWF risk filter (Water).

In this analysis, we attempted to analyze nature-related risks from	engagement with investees and lead to a more resilient portfolio of
a geographical perspective, using not only the business activities	investments in the future. We will continue to contribute to nature
of the companies but also the address information of their	positivity by utilizing these kinds of nature-related risks analysis in
business locations. We believe that based on the knowledge	our engagement and analysis of our investments.
gained from this analysis, we will help improve the quality of our

TOPICS

Joint research with Mizuho–DL Financial Technology Co., Ltd.

To more precisely understand the risks of portfolio companies related to natural capital, we conducted an additional analysis on a trial basis, utilizing Sustainability Scores*35, which were developed independently by Mizuho-DL Financial Technology, based on disclosed information of the companies.

First, among the domestic stock portfolio of

Dai-ichi Life, ca. 200 companies in the three sectors of

Figure 3: Investment percentage by adjusted risk score

consumer staples, materials, and utilities, which were

By Factor

identified as high risk in our previous year’s analysis,

Water use

were targeted. ENCORE*36 was then used to calculate

9%

Other resource

risk scores by sub-industry for each factor (impact driver)

use

Terrestrial

of corporate activities affecting nature. Each risk score

28%

ecosystem use

Freshwater

was supplemented by factor-specific Sustainability

ecosystem use

Marine

Score, which evaluate the sustainability efforts of each

ecosystem use

3%

57%

GHG emissions

company, to refine the risk scores for each individual

Non-GHG

company (Figure 3). The analysis showed that while

2%

air pollutants

Water pollutants

more than half of the companies were rated as “Very

82

Sustainability & Foundation

We analyzed the dependence on and impact of nature on the operations and processes taking place in the six sites in priority areas identified in the Locate phase (Figure 2). The analysis showed that in the six identified locations, there is a significant dependence on ecosystem services such as climate control, surface water, and water quantity maintenance, which impact nature through terrestrial ecosystem use, water use, and freshwater ecosystem use. Analysis of risks related to natural capital based on address information and business/processes

showed that, overall, reputational risks related to biodiversity and water tended to be high (Figure 2). We understand that this indicates that there is a high risk that the our business activities could adversely affect the lives of local residents, thereby negatively impacting our reputation. In terms of physical risks, the risk of natural disasters such as flooding and degradation of ecosystem services was assessed as high, reaffirming the importance of promoting appropriate management and use of natural capital to manage such risks.

Low” or “Low” risk, some remained at high risk and

Soil pollutants

Solid waste

required caution. In addition, the risk was particularly

Very High

High

Disturbances

Medium

Low

Very Low

high for factors (impact drivers) such as water use,

0% 20% 40% 60% 80% 100%

GHG emissions, and solid waste.

In this analysis, we attempted to evaluate risks based not only on the nature of a company’s business but also on the status of each company’s sustainability initiatives. We will continue to conduct this kind of trial analysis in the future as we work to identify natural capital–related risks and opportunities more precisely.

*35 The scores were developed with the aim of identifying risks and opportunities for companies from a sustainability perspective. They are compiled based on various sustainability themes, which can be linked to impact drivers in ENCORE to enable a company-specific risk analysis of the portfolio.

*36 The current version as of April 2024 was used.

Dai-ichi Life Holdings Integrated Report 2024

Sustainability & Foundation

Initiatives and Opinions on Climate Change Issues

Introduction	Purpose ＆	Messages to Our	Value Creation	Strategy &	Sustainability &	Governance	Data
	Values	Stakeholders		Business	Foundation

Environmental Leadership

Initiatives to	Proactive Governance and Engagement
Respect Human Rights

Realizing a sustainable society is a strong aspiration of the Dai-ichi Life Group. Among many issues to tackle, addressing climate

supporting the development and effective implementation of net-zero transition plans across the financial industry, mobilizing

• Basic Policy

change has become an urgent issue that requires engagement across the entire business community. Through its participation in GFANZ, the world’s largest coalition of financial institutions with a net-zero commitment (more than 675 financial institutions in 50 countries as of the end of 2023), and NZAOA, a member-led initiative of institutional investors, we are expanding the circle of financial institutions addressing climate change issues, while contributing to the international rulemaking to realize a decarbonized society.

capital for emerging markets and developing economies, and policy advocacy. In June 2023, the Japan Chapter of GFANZ was launched as the first national chapter, and our Chair of the Board, Seiji Inagaki, served as the first chair of its Consultative Group. We believe that our participation in these international initiatives is extremely important, not only from the perspective of communicating Asian or Japanese views to the world and enhancing the presence of the Dai-ichi Life Group but also contributing to the industry-wide decarbonization efforts by sharing

The Dai-ichi Life Group has established the Human Rights Policy of the Dai-ichi Life Group in accordance with the United Nations Guiding Principles on Business and Human Rights. In addition, the Dai-ichi Life Group Code of Conduct stipulates “respect for human rights” as an element of “foundational conduct.”

The Group will promptly grasp trends on human rights from the international community and have a correct understanding of human rights principles, initiatives, and guidelines. In addition, we

continue to endeavor to develop employees who always think of others when taking action in any situation.

We will aim to become a company deeply rooted in the value of “respect for human rights” in the pursuit of human happiness.

The Human Rights Policy of Dai-ichi Life Group

https://www.dai-ichi-life-hd.com/en/ sustainability/initiatives/rights.html

To realize its objective of “accelerating the global net-zero transition,” GFANZ works in various areas. These include

the knowledge we have gained with domestic financial institutions.

• Promoting human rights due diligence

• Recent Major Events

		Date		Event
			June	GFANZ Japan Chapter Launched
83
		October	PRI in Person (Tokyo)
	GFANZ side event, participation in panel discussions by the Group executives
Sustainability	2023
November	GFANZ APAC Seminar (Singapore)
			Presentation of the Group’s transition plan
		December	COP28 (Dubai, UAE)
&				GFANZ Japan Chapter organized a session on “Financing the Transition of High-Emitting Industries” at the Japan Pavilion
Foundation
		March	First GFANZ Japan Summit
		GFANZ Japan Chapter Statement Released
			Ministry of the Environment High Level Panel	Materials and videos
			March	on ESG Finance
			Introduced GFANZ’s efforts to	https://www.env.go.jp/page_01292.html
	2024		transition to a net-zero economy
	April	BDTI Webinar	BDTI webinar video
			Disseminated information	https://youtu.be/
				about GFANZ Japan Chapter activities	xrQBEXw4UCE?si=07KQomkS0e8ddczJ

May	IIF Insurance Colloquium
Joined panel to introduce our sustainability initiatives

PRI in Person（Tokyo）	First GFANZ Japan
Summit

The Dai-ichi Life Group is committed to respecting the human rights of all stakeholders involved in its business activities across the board, including the supply chain, in accordance with the following steps in the human rights due diligence process.

Dai-ichi Life example: Human rights due diligence initiative

2.	Identification and			3.	Initiatives to	84
impact assessment of	Human rights due diligence	mitigate human rights
human rights risks	risks	Sustainability&
		Development of our policy
5.	Disclosing initiatives and	1. to respect human rights		Reflecting on
applying opinions			4. and assessing initiatives	Foundation
To promote human rights due diligence, the following promotion structure has been established within the Group.
		Human Rights Due Diligence Promotion Structure
	Group Sustainability Committee	Group Human Rights Awareness Committee
Committee	Chief Sustainability Officer		Chief Human Resources Officer
Chair
Committee	Appointed executive officers		Appointed department managers
members
Meeting	Generally four times a year or as necessary		Generally once a year or as necessary
Frequency
Discussion	Sharing awareness regarding environmental changes and issues	Sharing awareness regarding environmental changes, the status of
related to sustainability, including human rights, reflecting on	group initiatives, and issues related to raising awareness of human
items
initiatives, and formulating response measures	rights, and formulating response measures

Human rights due diligence initiatives

https://www.dai-ichi-life-hd.com/en/sustainability/initiatives/rights.html

• Publication of the Human Rights Report

We have disclosed our efforts to respect human rights on our website, and produced and published the new Human Rights Report as a more detailed accounting of these efforts in June 2024. The report is available on our website.

Human Rights Report 2024

https://www.dai-ichi-life-hd.com/en/sustainability/initiatives/pdf/rights_001.pdf

Dai-ichi Life Holdings Integrated Report 2024

Sustainability & Foundation

Introduction	Purpose ＆	Messages to Our	Value Creation	Strategy &	Sustainability &	Governance	Data
	Values	Stakeholders		Business	Foundation

Proactive Governance and Engagement

Human Resources Strategy

Under our new Group Human Resources Strategy, we aim to continuously enhance corporate value by harnessing the diverse talents of each individual.

Finally, corporate culture and well-being are important foundations of the Group’s HR Strategy. The Group will further promote diverse work styles along with health and productivity management to create an open and dynamic corporate culture in which all organizations are full of diversity, and where all employees can flourish with vitality and peace of mind.

In this rapidly changing environment, the driving force for the Group’s growth is our human resources, and we will implement the HR Strategy based on the belief that the diversity and expertise of each and every employee is our most important management resource. In addition, through individual measures based on the five pillars, we will maximize the potential of the Group’s HR, leverage diversity as a strength, and strive to achieve the sustainable enhancement of corporate value.

Executive Officer Chief Human Resources Officer

Our commitment to employees

Yotaro Numata

Vision

Empowering diverse human resources to maximize their potential, driving challenges and transformation.

Message from the CHRO

In a complex and changing business environment, human resources are the driving force to execute management strategies and realize our purpose. The Dai-ichi Life Group has been committed to the brand message of “By your side, for life” for more than 100 years, and this sentiment is expressed in our Employee Philosophy Statement, and shared with Group companies around the world. To realize a world in which all employees can thrive and demonstrate their individuality, and to further enhance our corporate value, we are working to develop human resources, strategically assign human resources, and foster a corporate

The Dai-ichi Life Group Employee Philosophy Statement

Growth is not a solo endeavor.

As over 100 years of experience has taught us,

growth comes from belonging to something bigger than ourselves.

At Dai-ichi Life Group, we are by your side, growing with you.

Challenging you. Supporting you to prosper.

Protecting the well-being of all, now and for the future. Wherever you are with us, and wherever you go in our group, we work together to open up a world of opportunities.

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My name is Yotaro Numata, and I was appointed Chief Human Resources Officer (CHRO) in April 2024. Starting this fiscal year, Dai-ichi Life Holdings created the position of CHRO to improve employee satisfaction and create opportunities for diverse human resources to unleash their potential, while consolidating the

Group HR	Personnel systems
Compensation
governance
systems

Group HR

Strategy

culture in which diverse human resources can maximize their potential.

	Status of human capital enhancement		86

Sustainability & Foundation

previously dispersed planning functions for personnel and compensation systems, recruitment, and other aspects under the holding company, Dai-ichi Life Holdings, Inc.

The biggest objective of the HR Strategy is to promote initiatives throughout the human resources life cycle, including recruitment, talent development, compensation, and benefits. The strategy also seeks to expand and enhance opportunities for employees to succeed through the promotion of DE&I (diversity, equity, and inclusion), to foster an organizational culture

that includes health and productivity management, and to drive measures related to employee well-being. We believe that this approach will contribute to realizing the Group’s management and business strategies.

In March 2024, we launched our new mid-term management plan, and in line with this plan, we also renewed our Group HR Strategy. First, we defined the key message that forms the backbone of the Human Resources Strategy: “Empowering diverse human resources to maximize their potential, driving challenges and transformation.” To become a global top-tier insurance group

Talent acquisition	Opportunities for
Talent development	success

Fostering a flat and open corporate culture, and improving employee well-being

Group HR governance will look at the Group as a whole and allocate human resources where they are needed to further business strategies, as well as review the succession plans of each Group company from the perspective of stable business continuity.

In terms of opportunities for success, we aim to create an organization with the strength and flexibility to realize sustainable enhancement of corporate value by encouraging motivated employees to take on challenges autonomously, and by proactively providing opportunities for them to succeed.

In the areas of talent acquisition and development, to support extending our business domains, including entry into non-insurance areas and overseas business expansion, we will strategically develop new graduate recruitment, mid-career hiring, and in-house

Five pillars of

HR strategy

Group HR governance

Talent acquisition and development

Personnel and

compensation systems

Opportunities

for success

Corporate culture and well-being

Progress index*5

Human capital shift

(including natural attrition)

Number of core DX talent*1

Number of candidates for future global management leaders

Number of global job-postingpositions (cumulative)

My Career program applicants

Percentage of female executives*2

Percentage of

female organizational heads*3

Uptake rate/number of days of childcare leave taken

by male employees*4

Percentage completing secondary medical exams

	April 2022		April 2023	April 2024	Target (April 2025)	Connection
		to corporate value creation
		682ppl		1,211	ppl		2,016ppl			ca.2,600ppl
	100ppl		254ppl		353	ppl		850ppl
																		Implement
	241ppl				286ppl		314ppl
							business
																		strategies	The Dai-ichi
	8						13				26				40
													Life Group
																			that is
302	ppl		371ppl			411ppl
							continuously
																			chosen by
		12.1%				13.4%			13.7%			30%	Organizational
									customers
									(2030)
																		culture that
																		thrives on
		16.5%				18.5				19.1				30%
					%			%			diversity
																	(2030)
		92.3%				100%			100%			100%
	11.8 days			21.5 days		23.1days		1 month	Employee
																		well-being
		85.7%				87.6	%			87.6	%			100％

Sustainability & Foundation

and a leader of the Japanese insurance industry future which is our vision for FY2030, each and every employee of the Group must take on daily challenges and maximize their capacity to transform both themselves and the organization. We have incorporated this strong sentiment into our key message and have made it the cornerstone of our HR Strategy. Based on this key message, the Group HR Strategy will develop measures based on five pillars.

appointments, as well as implement a wide range of training measures to enhance the expertise of our employees, the source of our corporate value creation.

In our personnel and compensation systems, we aim to elicit a sense of growth and fulfillment from employees through fair evaluation and performance-based compensation. We strive so that employees can directly experience the impact that their daily efforts have on corporate value.

*1 Fundamental reform of the DX talent development program was implemented	*4 The total for Dai-ichi Life Holdings, its three domestic life insurance companies,
starting in FY2024. Results as of April 2024 are based on the previous definition of	and ipet Insurance. Calculated in accordance with the calculation standards for
DX talent development. The target is the total number of employees in Phase 1	the ratio of childcare leave taken, etc. required to be disclosed under the revised
and 2 (see P.92) based on the new definition of DX human resource development.	Child Care and Family Care Leave Act (effective April 2023) (if the result exceeds
*2 The total for Dai-ichi Life Holdings and Dai-ichi Life	100%, it is indicated as 100%).
*3 The total number of general managers and line managers, which are the	*5 The total for Dai-ichi Life Holdings and its three domestic life insurance companies
organizational leaders among the management-level positions at Dai-ichi Life	excluding the number of global job postings, figure of *2 and *4
Holdings and its three domestic life insurance companies (Dai-ichi Life, Dai-ichi
Frontier Life, and Neo First Life)

Dai-ichi Life Holdings Integrated Report 2024

Sustainability & Foundation

Group human resources governance

Introduction	Purpose ＆	Messages to Our	Value Creation	Strategy &	Sustainability &	Governance	Data
	Values	Stakeholders		Business	Foundation

Proactive Governance and Engagement

Strengthening coordination with human resources departments at overseas Group companies

Allocating the right people in the right places to support business expansion

As a group that operates globally, we have formed task forces and working groups on specific themes with personnel in charge of human resources in each country in order to promote the

For example, we provide various measures for the next generation of Group leaders to acquire a global management perspective, and prepare tools for new employees that

In addition to the promotion of the domestic protection business and the asset formation/succession business, the Group is extending its business domains by further expanding its overseas business and entering into non-insurance areas. In Group HR governance, we acquire the human resources and capabilities necessary to execute our business strategies, flexibly allocate human resources to focus areas, and strengthen cooperation with

Group companies. By strengthening the Group’s governance through optimal allocation of human capital and acquiring new perspectives, the HR Strategy is closely linked to each business strategy even in a rapidly changing business environment, and we are developing various measures to maximize the potential of our human resources.

advancement of Group management from the aspect of human resources. These meeting bodies regularly engage in dialogue on a wide range of topics, such as the development of future management-level personnel and philosophy sharing, with the aim of creating synergies across countries, and have contributed to the growth of the entire Group through the implementation of numerous group-wide measures.

communicate the Group’s history, philosophy, and other qualities so that each employee can feel that they are a part of the Group.

In addition, to instill our philosophy throughout the Group, we have formed a working group on the theme of DE&I in different countries, and plan and operate a DE&I Summit, which will be described later.

Appointment of external human resources as executive officers

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Sustainability & Foundation

Since 2007, the Group has made a full-scale entry into the overseas life insurance business, and has continuously challenged and transformed itself in response to changes in the business environment, including demutualization and listing in 2010, and the transition to a holding company structure in 2016. In recent years, the environment surrounding the Group has been changing even more quickly with the rapid evolution of digital technology and generative AI, the emergence of geopolitical risks in various parts of the world, and increasing uncertainty in macroeconomic and financial markets. In such a business environment, it is essential to utilize human resources who can contribute to value creation beyond the boundaries of gender, age, nationality, and so on, so

that the Group can achieve growth as a global top-tier insurance group by FY2030.

To build a strong governance structure to support Group management, we are strengthening our efforts to diversify our human resources by appointing outside talent as executive officers. Starting with the appointment of Senior Managing Executive Officer Stephen Barnham as Chief Information Officer and Chief Digital Officer in 2023, we have continued to develop an environment that strengthens governance and drives innovation from a personnel perspective by securing a diverse range of highly specialized human resources, including welcoming a Chief Compliance Officer, a Chief Communications Officer, and in FY2024, a Chief Data and AI Officer.

Allocating human resources aligned with business strategy

We will implement a strategic shift of about 3,400 human		and outside the Group to assume key roles at Dai-ichi Life
resources by FY2026 to realize the business strategies of		Holdings, which steers the entire Group.
each Group company and to build a foundation that will enable		In addition, career rotations as a strategic shift of human
diverse human resources to realize their full potential. We are		resources play a part as investments in cross-boundary learning
committed to promoting the optimal allocation of diverse and		for employees. The skills and experience acquired by employees
specialized human resources across various areas to enhance		who have had career rotations will be utilized to realize business
the business efficiency and profitability of Dai-ichi Life		strategies and enhance corporate value at Group companies.	88
Insurance. This includes rotating personnel into expanding		Furthermore, career rotations contribute to ensuring the
Sustainability &
business areas such as digital technology and international		sustainability of local communities and society as such staff take
operations along with new businesses including ipet and		part in solving social issues through dispatch to local governments
Benefit One, and bringing in human resources from both inside		and other organizations.
	Employee voices				Foundation
	Benefit One		Fukui City Government
	Sales Promotion Department,		General Affairs Department,

Stephen Barnham	Webster Coates	Kyoko Wada	Figen Ulgen
Chief Information Officer and	Chief Compliance Officer	Chief Communications Officer	Chief Data and AI Officer
Chief Digital Officer

Governance for overseas Group companies

Sales Office	Ai Yamamoto	Future Creation Promotion	Mika Tsubota
			Bureau
At my current workplace, I am in charge of
I applied to this program because I wanted to help
promoting efforts to create synergies between
the Dai-ichi Life Group and Benefit One. Through	women who are trying their best to balance work
service proposals for Benefit Station, efforts to	and family life. Currently, I am in charge of organizing
increase utilization rates among companies and organizations that	social events for working women, disseminating information about role
have already implemented Benefit Station, and the provision of new	models on social media, improving the workplace environment including

The Group has established compensation guidelines for the CEOs of overseas Group companies and ensures fair and competitive compensation based on the Group mid-term management plan, each company’s business stage, market standards, and other factors. This approach aims to promote value sharing with shareholders and recruit and retain talented CEOs who will drive the Group’s growth. Operating under these guidelines, we ensure transparency and fairness in compensation levels and decision- making processes, while respecting local regulations, market practices, and the authority of the decision-making bodies of Group companies.

From the perspective of Group human resource governance, we recognize the critical importance of managing succession plans for the top management at subsidiaries. We assist our overseas Group companies in developing succession plans for key management personnel and centrally manage these plans. Each company identifies candidates at an early stage and trains them to ensure stability and continuity of management. In particular with regard to CEO successors, we are deeply involved in the selection process as the parent company, including interviewing candidates, and work together with subsidiaries to ensure smooth successions.

products and services through the platform, we hope to help solve	promoting male employee childcare leave and improved engagement,
issues and enhance the value of experiences for companies and	and projects related to career design for students. I feel that my outlook
organizations. We will boldly take on the challenge of new initiatives	has been greatly broadened by listening to the voices of corporate
as a unified Group, aiming for value propositions that go beyond the	executives, working women, and students, and by recognizing the need
insurance domain.	to conduct business while communicating with people outside the
	government based on multiple perspectives, such as raising awareness,
	improving the workplace environment, and promoting the sharing of
	household and childcare responsibilities. I would like to leverage this
	experience to solve various issues and create an environment where
	everyone can work in their own way in the future.

Dai-ichi Life Holdings Integrated Report 2024