Our Environmental Protection Initiatives and Climate Change Response

In line with its management philosophy, “Peace of Mind, Forever,” Meiji Yasuda considers the preservation of the Earth on which people can live with peace of mind to be a universal and crucial issue for humanity. Accordingly, we strive to contribute to the creation of a sustainable society by ensuring that every aspect of our business operations harmonizes with the global environment.
In January 2019, Meiji Yasuda declared its support of the TCFD recommendations, which ask for the disclosure of climate change-related information in four categories, namely, “governance,” “strategy,” “risk management,” and “metrics and targets.” In line with this framework, we are working to increase the sophistication of our initiatives and enhance the content of information disclosure.

※The TCFD issued a proposal to encourage businesses to voluntarily disclose the financial impact of climate change.

Environmental Policy(PDF 182KB)

Governance

Meiji Yasuda is striving to ensure that every aspect of its business operations harmonizes with the global environment in line with its Environmental Policy, which defines its stance to environmental protection initiatives.

Having identified 15 priority issues (materiality) through the assessment of social issues addressed by 17 SDGs and 169 targets, we have positioned “Protect the environment and combat climate change” as an issue requiring further initiative. In line with this positioning, efforts are now under way to step up our relevant initiatives.

We have also appointed an executive officer in charge of sustainability management & development, with the aim of strengthening environmental protection, climate change response and other initiatives to contribute to the creation of a sustainable society. At the same time, a general manager position was created and charged with sustainability management & development. Also, the Sustainability Management & Development Committee was formulated as an advisory body to the Management Council, with the Environmental Protection & Climate Change Response Subcommittee operating under said committee. Chaired by the executive officer in charge of sustainability management & development, the Sustainability Management & Development Committee is tasked with discussing climate change-related strategies, risk management, metrics, targets and transition plans as well as policies for sustainability management initiatives while monitoring and reporting the progress of such initiatives to the Management Council and the Board of Directors.

In asset management, we strive to practice the ESG Investment and Financing Policy, which provides a fundamental concept for investment and financing intended to help resolve environmental (E), social (S), governance (G) issues and create a sustainable society, in addition to specifying the detail of our initiatives to this end. Based on this concept and policy, the Responsible Investment Office is spearheading ESG investment and financing.

Strategy (Risks and Opportunities Arising from Climate Change)

Meiji Yasuda has carried out scenario analysis through quantitative and qualitative assessment of the impact of climate change related risks and opportunities from the perspectives of both a business operator and an institutional investor. Climate changer elated risks and opportunities identified via this analysis are listed below.

Scenario analysis

When it comes to the quantitative analysis of climate change related risks, there are no globally agreed-upon methods for effectively carrying out such analysis at present. With this in mind, Meiji Yasuda is striving to upgrade its analysis methods in a phased manner.

As a business operator, we have thus far concluded that the financial impact of such risks is limited based on the provisional calculation of the estimated volume of insurance claims and benefits in connection with extreme winds and flooding and an increase in cases of heat stroke. Currently, we are carrying out the calculation of expenses to be incurred by the introduction of renewable energy at Meiji Yasuda’s real estate properties and other measures to counter climate change-related risks. As an institutional investor, we have introduced “CVaR,” a tool developed by MSCI for the quantitative assessment of the impact of climate change on the investment and financing portfolio. “CVaR” enables the quantitative measurement of transition risks, physical risks and technological opportunities associated with domestic and foreign stocks and bonds. Leveraging this tool, we are engaged in the analysis of potential financial impact that may arise from our investees. Looking ahead, we will consider employing this tool in engagement (dialogue), investment decisionmaking and other endeavors.

A roadmap to net-zero CO2 emissions (by FY2050)

To contribute to the realization of a carbon-free society, we set and announced a target of net-zero CO2 emissions to be achieved in FY2050 and an intermediate target to be achieved in FY2030 from the standpoint of both a business operator and an institutional investor.

Toward the achievement of intermediate targets (by FY2030)

As a business operator, we are promoting energy conservation within our company, including the use of LEDs for lighting fixtures and more efficient air conditioning equipment for our real estate holdings, as well as the reduction of emissions throughout the entire supply chain including digitized procedures for paperless operations and more efficient logistics. To further accelerate initiatives to help realize a carbon-free society, however, the energy saving and other initiatives described above cannot be considered sufficient. Also, approximately 80% of CO2 emissions related to Scope1 & 2 arise from electricity used in business activities. Given these factors, we intend to promote the use of renewable energies for electricity used in our real estate holdings. To this end, our plans target three buildings with major head office functions (Meiji Yasuda Life Building, Meiji Yasuda Life Shin Toyocho Building and Meiji Yasuda Life Administration Center Building) as well as other buildings set for near-future completion, including Meiji Yasuda Life Shinjuku Building (tentative name). Furthermore, we will switch our sales sites nationwide to ZEB Ready-compliant buildings at the timing of renovations such as long-term repair. Simultaneously, we will proactively introduce leased vehicles that are eco-friendly. Our intermediate targets for FY2030 are expected to be achieved through those initiatives.

Toward the achievement of net zero emissions (by FY2050)

We aim to achieve net-zero CO2 emissions in FY2050 by using new technologies and innovations or by promoting research on carbon offsetting through tree planting or credit trading, in addition to further introduction of renewable energy and reduction of electricity consumption.

Risk Management

Meiji Yasuda has defined risks arising from climate change as a “key risk” to be addressed via its framework for enterprise risk management, and we are striving to strengthen our structure for monitoring such risks on both a qualitative and quantitative basis.

Specifically, the Risk Management Control Department is acting in collaboration with relevant departments to identify and assess risks and opportunities arising from climate change, monitor regulatory trends at home and abroad and the status of initiatives undertaken by Meiji Yasuda, and evaluate and verify progress in these initiatives. Findings from the above endeavors are periodically reported to the Management Council and the Risk Management Verification Committee, which serves as an advisory body to the former, so that signs of risks are properly detected and addressed.

Metrics and Targets

From the standpoints of both a business operator and an institutional investor, we aim to contribute to decarbonization across society and, to this end, have defined our voluntary targets for reduction in CO2 emissions attributable to Meiji Yasuda’ business operations and investee portfolio as presented below. (All targets indicate reduction from the level recorded in the fiscal year ended March 31, 2014)

• Reduction targets for the volume of CO2 emissions as a business operator*1

	Targets for FY2030	Targets for FY2050
Scope 1 & 2*1	-50%	-100% (Net zero emissions)
Scope 3*2	-40%

• Reduction targets for the volume of CO2 emissions from portfolio as an institutional investor

	Targets for FY2030	Targets for FY2050
Scope 1 & 2*3	-50%	-100% (Net zero emissions)

Environmental Data

CO2 Emissions from Meiji Yasuda Life*1

Scope 1&2(t-CO2)

Scope 3

*1We use the “emission factors by energy” and “adjusted emission factors by power supplier” published based on the “Act on Promotion of Global Warming Countermeasures” to calculate Scope 1 and 2 emissions.*

* Indirect emissions from the use of purchased electricity are calculated using the “basic emission factor” until FY2020 and the “adjusted emission factor from FY2021.

・Emissions from the use of commercial vehicle fuel included in Scope 1 are calculated from the total of actual mileage and average fuel consumption.

・Scope 2 is calculated based on purchased electricity and steam consumption, which are subject to the “Act on the Rationalizing Energy Use”. For tenant use of energy in our own buildings, we also include the use of tenants which we have energy management authority under the act.

Scope 3 utilizes “Emissions unit values database for organizations’ greenhouse gas emissions calculation through supply chain.” (hereinafter referred to as the “Database”)

・Category 1; Activity items subject to calculation are copying paper, brochure etc., which Meiji Yasuda has purchased. The activity amount (printed material cost) multiplied by the emission intensity of “Western paper / Japanese paper” and “Printing / plate making / bookbinding” in the Database.

・Category 3; Activity item subject to calculation is the fuel to produce electricity used in our business. The activity amount (amount of electricity used) multiplied by the emission intensity of “electricity” in the Database at the time of fuel procurement.

・Category 4; Activity item subject to calculation is in-house delivery. The activity amount (delivery cost) multiplied by the emission intensity of “self-transportation (freight vehicle)” in the Database.

・Category 5; Activity item subject to calculation is waste generated from our business. The activity amount (amount of industrial waste discharged) multiplied by the emission intensity of “waste type” in the Database. PCB waste disposal is not inclued in category 5 activities.

・Category 6; Activity item subject to calculation is our employee’s business travel. The activity amount (business trip expense) multiplied by the emission intensity of “transportation method” in the Database.

・Category 7; Activity item subject to calculation is our employee’s commute. The activity amount (commuting expense) multiplied by the emission intensity of “passenger train” in the Database.

・Category 8; Emissions from upstream leased assets have been included in Scope1 since FY2021 due to changes in aggregation methods.

・Category 15; Emissions are disclosed separately as “Emissions from investment and financing.”

CO2 Emissions from Meiji Yasuda Group*2✓

(t-CO2)

*2Boundary: Meiji Yasuda Life and domestic consolidated subsidiaries as Meiji Yasuda General Insurance Co., Ltd., Meiji Yasuda Asset Management Company Ltd., and Meiji Yasuda System Technology Company Limited
We use the “emission factors by energy” and “adjusted emission factors by power supplier” published based on the “Act on Promotion of Global Warming Countermeasures” to calculate Scope 1 and 2 emissions.

・Emissions from the use of commercial vehicle fuel included in Scope 1 are calculated from the total of actual mileage and average fuel consumption.

・Scope2 is calculated based on purchased electricity and steam consumption, which are subject to the “Act on the Rationalizing Energy Use”. For tenant use of energy in our own buildings, we also include the use of tenants which we have energy management authority under the act.

Environmental performance data by Meiji Yasuda Life*3

*3Definitions and calculation methods for environmental performance data are as below

・Based on the “Act on the Rationalizing Energy Use”, purchased electricity is calculated based on the bill from suppliers, and soler power consumption is calculated from solar system data.

・Renewable energy includes purchased electricity derived from non-fossil fuels and electricity generated by solar power installed on our premises.

・Water consumption is calculated based of the bill from the Water Bureau.

・Waste generated is the amount of waste, as defined in the “Waste Management and Public Cleansing Act”, from business establishments, calculated by aggregating the figures stated in manifests issued based on the Act. PCB waste disposal is not included.

・Paper consumption is calculated by aggregating office paper subject to report in accordance with the “Environmental Reporting Guidelines” from office supplies purchase system data.

CO2 Emissions from portfolio as an Institutional Investor*4

*4Covers stocks, corporate bonds, and loans of domestic listed companies

Third-Party Assurance

In order to ensure credibility of our figures, we have engaged a third-party institution to perform assurance of selected CO2 emissions data and part of environmental performance data for FY2021.
The data subject for the third-party assurance is indicated with green checkmark(✓).

Independent Third-Party Assurance Report（PDF 1.86MB）