Nippon Life commits to promoting a sustainable future by encouraging green transition

Nippon Life Insurance Co. is taking a proactive approach to combat climate change by engaging with high-emitting companies to spur transformation in their business practices. According to Shinichiro Kashima, the chief sustainability officer of the company, divesting from these companies may make portfolios look clean, but it does not address the root problem, especially in a country like Japan that heavily relies on fossil fuels for power.

Kashima emphasized the importance of institutional investors actively engaging with companies that emit large amounts of greenhouse gases to prompt them to transition away from fossil fuel dependency. Nippon Life has identified about 70 such companies and is urging them to disclose emissions data and create roadmaps to achieve net-zero emissions by 2050.

The insurance company has also updated its investment guidelines to exclude financing for oil and gas projects that do not take measures to reduce carbon emissions. This aligns with the Net-Zero Asset Owner Alliance’s goal of achieving net-zero greenhouse gas emissions in portfolios by 2050.

In addition to its investment strategies, Nippon Life is promoting sustainability management in three key areas: people, community, and the environment. The company aims to provide security and safety for individuals, contribute to communities through its sales offices, and reduce the use of plastic and paper materials to protect the environment.

By actively engaging with high-emitting companies and promoting sustainability initiatives, Nippon Life is leading the way in addressing climate change and working towards a more sustainable future.