Nippon Life Insurance

The financial institution assigns its sustainability strategy implementation to internal functions, teams, or committees. Furthermore, it has a stewardship policy outlining the criteria for successful stewardship outcomes, escalation routes for unsuccessful outcomes, and escalation conditions.

The financial institution discloses its trade association memberships, lobbying positions on sustainability topics, as well as key sectors, clients, and investees for climate engagement. Furthermore, it monitors Scope 3 emissions by category and reports the monetary amount or share of products, services, and capital provided to small and medium-sized enterprises.

While the financial institution has identified sustainability priorities aligned with stakeholder expectations, it could disclose its process behind identifying and prioritising its material sustainability impacts across its value chain using objective criteria. It is further recommended that the financial institution link senior executive remuneration to specific sustainability targets, as well as disclose a stewardship policy that supports environmental transitions and social best practices in line with its sustainability strategy. Moreover, it could commit to not using its lobbying power to create adverse sustainability impacts. Although the financial institution has measurable targets for “green” solutions, it could specify the share allocated for climate solutions.

The financial institution could detail how nature-related impacts were identified and prioritised, including geographic areas assessed, as well as disclose a strategy for nature protection and restoration. It should specify the aggregate amount of products and services devoted to nature-positive solutions and establish a transition plan for its operations and supply chain.

It is recommended that the financial institution disclose that it has established a transition plan covering its own operations, supply chain, and portfolio and publish the breakdown of clients or beneficiaries by income group. It could also clarify processes to prevent divestment from low-income and lower-middle-income countries due to its sustainability strategies and targets. Finally, it could strengthen its disclosure by identifying the social risks associated with its financing activities in relation to net zero transition and provide examples of actions taken on salient human rights issues from recent assessments.

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.