Japan Post Insurance

The financial institution publishes an engagement report on sustainability impact topics and has a stewardship policy which encompasses client and stakeholder engagement, advocacy, and partnerships. Moreover, it has a publicly available policy committing to respect ILO core labour rights, which it also expects from suppliers, as well as a publicly available policy statement commits to respecting human rights.

In terms of governance, performance criteria for senior executive remuneration are linked to specific sustainability targets. In terms of environmental commitments, the financial institution discloses the monetary amount/share of products, services, and capital related to high-emitting and fossil fuel sectors. In addition, it transparently identifies the nature-related impacts of its provision products, services and capital. Moreover, the entity monitors emissions from its associated financing activities (Scope 3 category 15) as well as other Scope 3 categories. Finally, the financial institution discloses the breakdown of clients and beneficiaries by company size as well as the monetary amount of products, services, and capital provided to small and medium-sized enterprises.

The financial institution has opportunities to disclose its methodology for determining a living wage in its operational regions and to include anti-bribery and anti-corruption clauses in contracts. It should identify, prioritise, and disclose its impact materiality process, along with the objective criteria used. Furthermore, it is recommended that the entity discloses third-party assurance or verification of target reporting. In addition, although the stewardship policy supports environmental transitions and social best practices, it could be aligned with the sustainability strategy and further detailed.

While the financial institution discloses a list of memberships of trade associations and initiatives focused on sustainability, there is an opportunity to disclose a full list of trade association memberships. Furthermore, the entity should elaborate on its nature-related impact identification and prioritisation process. Although the financial institution has disclosed an amount allocated to a blue bond, it could provide more details on this allocation and provide an aggregate amount dedicated to nature-positive solutions. Additionally, the financial institution has the opportunity to disclose a time-bound and measurable target for provision of products, services and capital to climate mitigation solutions.

In terms of emissions, Scope 1-2 emissions are disclosed, but scope 2 emissions could be clarified as market-based or location-based. A transition plan covering operations, supply chain, and portfolio is recommended for disclosure, along with a breakdown of clients by income group and processes to avoid divestment from low-income countries due to unintended consequences of sustainability strategies. The institution states it conducts human rights due diligence but could further disclose a risk assessment process covering the ILO fundamental rights at work. Moreover, it has a plan to mitigate negative human rights impacts but should disclose processes for addressing risks associated with its products and services. Additionally, it is recommended to identify social risks related to the net zero transition and provide examples of actions taken on salient human rights issues in the past three years.

This scorecard refers to information in English which was publicly available by July 15 2024. AuM and Total assets are stated in USD for comparability and have been calculated based on reported local currency values multiplied by applicable IMF currency converter values.