August 10, 2004 MSI signs the UN Global Compact first from Japan's financial community Mitsui Sumitomo Insurance Co., Ltd. (President and CEO: Hiroyuki Uemura) has signed the UN Global Compact to promote its corporate social responsibility (CSR) activities. MSI is the sixteenth out of only seventeen Japanese companies that have signed the initiative, but the first financial institution as participant. 1. The UN Global Compact The UN Global Compact was advocated by UN Secretary-General Kofi Annan and initiated at the World Economic Forum in Davos held in January 1999. This initiative addresses to major leading corporations all over the world that they should adopt and observe the Ten Principles covering the four core areas of human rights, labor standards, environment and anti-corruption to a responsible global corporate citizen. Approximately 1,700 companies have participated in this initiative across the world. Engagement is a "voluntary initiative" to support a global framework for sustainable growth and not a requirement by any rules or regulations. In stead, it is recommended that participants should not only apply the principles to governance of management but announce publicly their engagement in the initiative and social activities implemented along the lines of the principles. [Information only] Japanese corporations participating in the UN Global Compact (in chronological order as of July, 2004) Kikkoman Corporation, Ricoh Company, Ltd., Asahi Breweries Ltd., Amita Corporation, Japan Energy Corporation, Yakushima Denko Co., Ltd., Fuji Xerox Company, Ltd., Metocean Environment Inc., Oji Paper Co., Ltd., Alpha E. C. Co., Ltd., Sakaguchi E. H. VOC Corp., Asahi Shimbun, Toshiba Corporation, Nissan, NEC Fielding, Ltd., Mitsui Sumitomo Insurance Co.,Ltd., and Seiko Epson Corporation 2. Background and purposes (1) As we at MSI manifest in the mission statement our commitment to "bring security and safety to people and business around the world," we have initiated CSR activities to realize the idea constructively.Actually, we have formulated a plan of CSR activities, and set up the CSR Committee comprising principal directors and executives under CEO Hiroyuki Uemura as its head. The committee includes three sub-committees of environment and social contribution, CSR accounting and IR and disclosure. The CSR Network is under construction to organize the activities ongoing at workplace. This network started with about 30 general managers from all divisions, who are responsible for its operation, as well as roughly 60 young staff consisting equally of men and women. The network is now expanding to cover all domestic and overseas offices. (2) By signing the UN Global Compact, this is to express our awareness of human rights, labor standards, environment and anti-corruption and commitment to promote CSR activities. We all at the Mitsui Sumitomo Insurance group in a body continuously strive "to earn trust of all stakeholders and thus make the Group better enough for us to be proud of working together." The UN Global Compact's Ten Principles Human Rights Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and Principle 2: make sure that they are not complicit in human rights abuses. Labour Standards Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; Principle 4: the elimination of all forms of forced and compulsory labour; Principle 5: the effective abolition of child labour; and Principle 6: the elimination of discrimination in respect of employment and occupation. Environment Principle 7: Businesses should support a precautionary approach to environmental challenges; Principle 8: undertake initiatives to promote greater environmental responsibility; and Principle 9: encourage the development and diffusion of environmentally friendly technologies Anti-Corruption Principle 10: Businesses should work against all forms of corruption, including extortion and bribery.