Tokio Marine Holdings

Tokio Marine Holdings performs fairly well in areas such as governance and nature. It assigns decision-making and oversight responsibility for its sustainability strategy to its highest governance body and responsibility for implementing its sustainability strategy to functions, teams or committees within the financial institution. It also links performance criteria for remuneration at the senior executive level to specific sustainability targets. Nature-wise, Tokio Marine transparently identifies the nature-related impacts associated with its provision of products, services and capital and identifies, prioritizes sectors and areas for nature-related impacts, as well as key sectors, clients and investees to engage with on nature-related impacts. Additionally, it has a strategy for the protection and restoration of nature covering at least its priority sectors and areas.

It also has a fair number of disclosures in other areas as well. For instance, Tokio Marine provides at least one example of how its products, services and capital supports the climate adaptation and resilience of society and monitors other scope 3 categories, by category. It also has a publicly available policy statement committing to respect ILO core labour rights and expects suppliers to do the same. Lastly, it discloses the results of human rights risk assessments and engages with stakeholders affected by its activities.

There is scope for Tokio Marine Holdings to improve its disclosures in various areas, particularly impact materiality strategy, targets and plans, organizational carbon footprint, financing to fossil fuels and high-emitting sectors and low-income and lower-middle income countries.

While Tokio Marine Holdings identifies material sustainability impacts across its value chain, it could further detail its process and how objective criteria and/or supportable evidence were considered for identification and prioritization of impacts. It could also consider conducting third-party assurance or verification of its target reporting. Carbon footprint-wise, while Tokio Marine discloses its scope 1-2 emissions, it could detail its scope 2 emissions with reference to those being market-based or location-based. Similarly, while it discloses information regarding financed emissions, it could increase its coverage of financial activities by stating the share of its financed emissions covered by its disclosure.

It could also consider establishing a transition plan covering its own operations, supply chain and portfolio and monitoring if its scope 1-3 emissions reduce in line with its interim targets. Similarly, while Tokio Marine Holdings discloses the breakdown of clients and/or beneficiaries by country for some countries, it could make the list of countries comprehensive. It is also recommended that Tokio Marine disclose its processes for avoiding divestment from low-income and lower-middle countries as unintended consequences of its sustainability strategies and targets.

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.