Japanese insurance companies Tokio Marine, MS&AD and SOMPO are among the leading global insurers in the power and energy sector. Despite their sustainability commitments, Japanese insurers continue to insure climate-destroying fossil fuel projects.
Compared with their peers, Japanese insurance companies lag far behind on fossil fuel policies. According to The 2021 Scorecard on Insurance, Fossil Fuels and Climate Change, released by the Insure Our Future campaign, Tokio Marine ranked 16th, MS&AD ranked 17th, and SOMPO ranked 21th which was third from the bottom. These companies fall far behind the insurers in EU regions including AXA, which adopted the first comprehensive oil and gas phase-out policy.
Tokio Marine, MS&AD and SOMPO have agreed to stop underwriting new coal-fired power plants’ projects in principle. However, they have not restricted finance for companies relying heavily on coal fired power plants, underwriting and equity / bond investment for companies planning to build new coal-fired power plants, and underwriting and investment for other fossil fuel industries. This means their policies are not consistent with the Paris Agreement.