Basic Sustainability Policy

Our company values the concept of mutual aid, which is the foundation of life insurance, in our approach to sustainability as well. 

We believe that continuing to create new value in life insurance, while valuing the mutual relationships with our various stakeholders, will contribute to a sustainable future while enhancing our corporate value. 

Based on this belief, we have established the following Basic Sustainability Policy with the approval of the Board of Directors. 

<Basic Sustainability Policy> 

  1. The Company establishes the Basic Sustainability Policy, acknowledging the significance of implementing sustainability-focused management at the group level to achieve a sustainable society and environment, as well as to enhance the Company's medium- to long-term corporate value.
  2. The Company undertakes initiatives to contribute to a sustainable society and environment and to enhance its medium- to long-term corporate value through its corporate activities. This is based on the recognition that operating the business in accordance with the LIFENET Manifesto while maintaining insights into the original purpose of life insurance as mutual support leads to the resolution of social issues. 
  3. The Company undertakes initiatives for various stakeholders including society and responses to global environmental issues. The Company also continuously strengthens its governance as a foundation for corporate management to promote sustainability.
  4. The Company delivers products and services to support the security of society and individuals including future generations.
  5. The Company adheres to the "Basic Policy on Compliance with Laws and Regulations," conducts its operations with integrity, and prioritizes ethical considerations, in consideration of the public nature and social responsibility inherent in the insurance industry, as well as the importance of policyholder protection.
  6. The Company values diversity and provides opportunities for professional challenges and growth to each employee.
  7. The Company fulfills its corporate social responsibility by implementing environmentally conscious practices as a global citizen in addressing global environmental issues.
  8. The Company establishes governance and internal systems to promote sustainability, develops pertinent regulations, and actively encourages awareness related to sustainability within the organization.
  9. The Company recognizes societal expectations and requirements through dialogue with various stakeholders. It endeavors to provide appropriate information disclosure regarding sustainability-related matters, such as global environmental issues, human capital, and governance, to fulfill its accountability as a corporate entity.

 Established October 2024

Materiality

We have identified materiality (priority sustainabiliy issues) that should be addressed over the long term with the aim of achieving a sustainable society and improving corporate value. Under the theme of “Creating the future of the life insurance,” we recognize the following items 1 to 10 as our materiality. We will promote initiatives for our stakeholders, including “customers,” “society” and “employees,” as we continue to enhance “corporate governance,” which is the foundation of our management. 

Diagram showing Lifenet Materiality of “Creating the future of life insurance.” The three main initiatives are Creating the future for our customers, Creating the future for a better society, and Creating the future with our employees. The company also has “Corporate governance to create the future” based on the three points to strengthen corporate governance, enhance risk management, and respect corporate ethics.
Diagram showing Lifenet Materiality of “Creating the future of life insurance.” The three main initiatives are Creating the future for our customers, Creating the future for a better society, and Creating the future with our employees. The company also has “Corporate governance to create the future” based on the three points to strengthen corporate governance, enhance risk management, and respect corporate ethics.

Process for identifying materialiy

STEP 1: Extracting issues

Based on the “LIFENET Manifesto” and our Management Policy, we extract issues by referring to the opinions of shareholders and investors, guidelines including the Sustainability Accounting Standards Board (“SASB”), and evaluation criteria of ESG-rating organizations. 

STEP 2: Selecting possible material issues

Among the extracted issues, selection for possible materiality is made from two viewpoints: importance to stakeholders and importance to Lifenet. 

STEP 3: Identifying materiality

Identify materiality through discussions at the Board of Directors and Management Meetings. The materiality items are reviewed annually and revised as necessary based on changes in the external environment and our business environment. 

Overview of opportunities and risks related to materiality

For details on each risk listed under "Major Risks," please refer to pages 23 to 30 of the Securities Report. 

Title/Materiality

Overview of opportunities and risks

Major risks

Creating the future for our customers

 

  1. Be Sincere, Easy-to-understand, Affordable and Convenient
  2. Increase security

We have a management philosophy of “Help our customers embrace life more fully through management with integrity,

and offering easy-to-understand, affordable, convenient products and services.” We recognize that we have a competitive advantage over our competitors by providing simple, easy-to-understand products and highly convenient services, with the Internet as our main sales channel.

In the future, if our competitiveness declines due to changes in the competitive environment or technological innovation, or if we lose the trust of our customers due to inadequate information security measures, there is a possibility that our management foundation will be significantly damaged.

Competition in the life insurance industry
Significant acceleration of IT innovation
System failures
Information leakage
Misses on claim benefits payment
General sustainability matters

Creating the future for a better society

 

  1. Actively utilize partnerships
  2. Respond to climate change
  3. Make responsible investments

We are working to create new value through life insurance by leveraging the strengths of our partner companies in addition to our direct business. Regarding climate change, it may affect our group's business environment from a medium- to long-term perspective, so we will consider our response going forward.
With respect to asset management, as a life insurance company, we believe it is important to conduct asset management that also takes into account the sustainability of society.
If our response to these social issues is inadequate or is assessed as inadequate, there is a possibility that our business performance and corporate value will be adversely affected through the occurrence of additional costs and deterioration in social reputation.

Change in relationship with, or performance of business partners
Climate change
General sustainability matters

Creating the future with our employees

 

  1. Value diversity
  2. Create opportunities for growth

We believe that creating an organization in which employees themselves have diverse perspectives and can respect each other will lead to creating new value in life insurance while flexibly responding to the diversifying needs of customers and society.
We will focus on creating an environment that supports the challenges and growth of each diverse employee, allowing them to demonstrate their strengths while working with ambitious aspirations.
If we are unable to recruit and train diverse and talented human resources, or if we are unable to create an environment that harnesses diversity to drive organizational growth, it will be impossible to carry out management based on the Manifesto, and it may become difficult to implement our management strategy.

Human resource employment
General sustainability matters

Corporate governance to create the future

 

  1. Strengthen corporate governance
  2. Enhance risk management
  3. Respect corporate ethics

We have set out the principle in the Manifesto: Acting in good faith means always taking the high road when it comes to compliance and ethics.
As a life insurance company with a high degree of social and public responsibility, we are working to ensure transparency in management and strengthen corporate governance. We are also working to improve our risk management system from the perspective of ensuring the soundness and appropriateness of our business, with the aim of achieving sustainable growth in corporate value.
If there is a serious violation of laws or regulations, a deviation from social norms, or if the risk management system fails to function effectively, there is a possibility that the company's value will be damaged, accompanied by a loss of trust from various stakeholders and a decline in reputation.

Violation of laws and ethical deviation from social norms
Risk management system
General sustainability matters

Materiality indicators

The list of indicators linked to each materiality is as follows:

Structure for promoting sustainability

Policies and initiatives related to sustainability are discussed and reported at the Executive Officers Meeting, which consists of the Chairperson (who is the President and Representative Director) and Executive Officers (including those who concurrently serve as Directors). Important matters are reported to the Board of Directors.
The Board of Directors discusses and supervises the company's sustainability initiatives and other related efforts from the perspective of enhancing medium- to long-term corporate value.
In addition, the Risk Management Committee, chaired by the President and Representative Director and composed of relevant executives and department heads, manages risks related to overall business operations, including sustainability aspects. The content of discussions in the Risk Management Committee is reported to the Board of Directors.
Furthermore, we established a Sustainability Committee in October 2024 in order to promote sustainability initiatives in the future. The Sustainability Committee is chaired by the Representative Director and President, and its members consist of internal directors and executive officers, as well as employees involved in sustainability promotion who are appointed by the chairperson. 
Based on changes in the external environment and the expectations and requests of stakeholders, the Committee will discuss and provide advice on matters that contribute to the sustainability of society and the environment and to the enhancement of the corporate value, including policies and systems for promoting sustainability-related initiatives and matters related to materiality, from a company-wide perspective, and report to the Board of Directors.