24 September 2009 SOMPO JAPAN INSURANCE INC. Associate Director

1. 2nd Conference of the OECD International Network on the Financial Management of Large-sale Catastrophes Session Ⅰ　Ｓｅｃｏｎｄ　ｐａｒｔ Acting on Climate Change in Asia 24 September 2009 SOMPO JAPAN INSURANCE INC. Associate Director Corporate Social Responsibility Office Masao Seki

2. In 2004, 10 Typhoons Hit Japan Source: Japan Meteorological Agency

3. Top-10 Claims for Typhoons and Other Weather-related Disasters in Japan (million $) Insurance payments for fire and miscellaneous, automobile, marine(Total payments by 20 member companies of General Insurance Association of Japan)$1=\100 Source: The General Insurance Association of Japan

4. Our Approaches to Climate Change Insurance companies should address climate change with two approaches: mitigation and adaptation. Low CarbonSociety Climate-Resilient Society Adaptation Mitigation Integration Business Civil Society Government Scientists

5. Mitigation Approach Insurance companies should serve as “catalyst” for actions to promote a low carbon society. Insurance Products and Services • Eco-Safe Driving • Automobile Parts Recycling Campaign • Promotion of alternative energy through the • provision of weather derivatives Investment • Eco-fund / SRI fund • Loan for green buildings • Principle for Responsible Investment • Carbon Disclosure Project Carbon Footprint Reduction • Installation of energy-efficient equipment • Reducing waste and promoting recycling • Environmental management systems • Green Procurement

6. Mitigation -Insurance Products and Services- Insurance products and services such as Weather derivatives and Eco-Safe Driving can help corporations and individuals mitigate the discharge of CO2. Eco-Safe Driving Weather derivatives GIAJ (General InsuranceAssociation of Japan) has developed the "Eco-Safe Driving" program, which contributes not only to fuel saving and CO2 reduction but also safer driving. GIAJ (General InsuranceAssociation of Japan) has developed the "Eco-Safe Driving" program, which contributes not only to fuel saving and CO2 reduction but also safer driving. Promotion of solar power production through the use of weather derivatives Weather derivative for wind power producers

7. 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 2000 2001 2002 2003 2004 2005 2006 2007 Mitigation -Investment(1/2)- The market size of SRI (Sustainable and Responsible Investment) in Japan has expanded significantly in recent years. Market size of SRI in Japan (Million $) $1=\100 Source: SIF - Japan

8. Mitigation -Investment(2/2)- Eco-fund SRI fund Sompo Japan SRI Open:Since March 2005Balance:778 million yen (as of February 2009) Sompo Japan Green Open:Since September 1999Balance:11.8 billion yen (as of February 2009) Performance of the Sompo Japan Green Open (as compared toTOPIX) (Yen) (Million Yen) -Total net assets (right axis)-TOPIX (left axis) -Sompo Japan Green Open (left axis) The constant value, calculated as the value obtained when reinvesting all dividends at the constant value of the settlement date, as compared to TOPIX (Tokyo Stock Price Index).The constant value and the benchmark TOPIX (not including dividends) are indexed as 10,000 on the date of inception.

9. Adaptation Approach Insurance companies should give full play to their core competency to help create a climate-resilient society. Ensuring financial strength • Arrange reinsurance • Increase catastrophe reserve Quick payment to customers • Strengthen disaster investigation structure and claims response services • Provide risk management information to • society • Set up customer service for loss prevention Preventive measures Risk financing solutions • Develop risk financing solutions for adaptation

10. Importance of Adaptation to Climate Change in Asia Green: Typhoon Heavy rain Hurricane Ocher: Drought Forest fire Red: Heat wave Blue: Cold wave

11. Adaptation -Risk Financing Solutions- Thailand Weather Index Insurance Adaptation measures are particularly needed in developing countries, which are vulnerable to the effects of climate change. JBIC and Sompo Japan are developing weather derivatives (weather index insurance) as an adaptation measure and international framework for supporting developing countries. Sowing Harvesting Tilling Transplanting Flowering Drought Weatherindex insurance Pictures: Embassy of Thailand website, etc.

12. Integration through Education and Learning Decade of Education for Sustainable Development -The United Nations adopted the Decade of Education for Sustainable Development resolution in 2002. -The overall goal of this resolution is to integrate the principles, values, and practices of sustainable development into all aspects of education and learning. -This educational effort is expected to encourage changes in behavior that will create a sustainable future in terms of environmental integrity, economic viability, and a just society for present and future generations.

13. Capacity Building –Involving Key Stakeholders – Public Seminars on the Environmentwith NGO CSO Learning Scholarship Program Since 1993 290 seminars 14,500 participants (as of December 2008) Since 2000 458 students(as of December 2008) CSO : Civil Society Organizations Employee Environmental Education Program

14. Disaster Prevention Education “The Fire of Inamura” ●Malaysia, November 2008, UN Asia Ministry Meeting Introduced in UN International Strategy for Disaster Reduction Private Sector Activities in Disaster Risk Reduction Good Practices and Lessons Learned

15. Thank you for your attention