MS&AD Insurance

The financial institution transparently identifies the nature-related impacts linked to its products, services, and capital, prioritising sectors with the highest impact on nature. It engages in partnerships to influence and support sectors, clients, and investees to act on their nature-related impacts. Furthermore, the institution also monitors emissions from its financing activities (Scope 3 category 15) as well as other Scope 3 categories by category. Additionally, the institution has publicly available policy statements committing to respect ILO core labour rights and human rights. It outlines its process for assessing human rights risks and identifies its salient human rights issues.

MS&AD Insurance identifies material sustainability impacts across its value chain but could provide more detail on the criteria and evidence used for prioritisation. Although third-party assurance is conducted for selected environmental and social performance indicators, there is no evidence that target reporting is included in the assurance scope. It is recommended that performance criteria for senior executive remuneration be linked to specific sustainability targets. The approach to engagement with investee companies in line with the sustainability strategy is unclear. Despite disclosing participation in various initiatives, there is no evidence of a list of trade associations membership. The institution does not fully address all fossil fuel projects in its disclosures. While scope 1-2 emissions are reported, details on scope 2 emissions are lacking. The investment portfolio and operations methodology are present, but there is no evidence of location or market-based scope 2 emissions. Recommendations include disclosing client breakdown by income group, processes to avoid divestment from low-income countries, and providing examples of actions taken regarding salient human rights issues from assessments in the last 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.