Insurance Companies
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 2024 scorecard released by the Insure Our Future campaign, Tokio Marine ranked 15th, SOMPO ranked 16th, and MS&AD ranked 18th. These companies fall far behind the insurers in EU regions including AXA, which adopted the first comprehensive oil and gas phase-out policy.
Japanese insurers have made incremental progress to address climate change. While Tokio Marine adopted an engagement policy requiring high-emissions clients to have decarbonisation plans, Tokio Marine still permits new oil and gas project insurance.
In a first for Japanese insurers, MS&AD has set an absolute target to reduce insured emissions by 37% in its domestic corporate portfolio by 2030. However, this does not align with the critical 1.5°C pathway, which means their policy is not consistent with the Paris Agreement. SOMPO has set a coal company restriction with a 20% threshold. However, its restriction on oil and gas is not enough, as it is actively involved in LNG projects such as Rio Grande LNG in the US.