SOMPO’s Purpose Management

Our company uses the term Unrealized Financial Value to refer to value that leads to financial or corporate value in the mid- to long-term that is generated by human capital-related initiatives originating from My Purpose, and the entire Group is working to improve this. By visualizing this value as much as possible by determining its impact path, we are also steadily advancing Purpose Management by using an evidence-based approach and having it lead to sustainable growth and increased corporate value.

Using the Value Creation Cycle that lays out the path to realizing SOMPO’s Purpose, we set key levers/KPIs to improve Unrealized Financial Value. By improving each of these indicators, we will demonstrate to our stakeholders the progress made in Purpose Management.

With the starting point of the pursuit of My Purpose, how do our various actions to improve human capital increase engagement, accelerate I&D, increase the total amount of taking on challenges and innovation, and improve financial value and ultimately corporate value? We call this path the Human Capital Impact Path and are taking on the challenge of visualizing and implementing it.

This fiscal year, we focused on enhancing the impact path based on the previous year’s content. Specifically, we worked to identify the “mechanism of changes” generated by human capital-related actions originating from My Purpose, based on case studies of changes observed at sites throughout the Sompo Group and actual data measured within the company. The items of changes in last fiscal year’s impact path, which were expressed as “improvement of individual strengths” and “improvement of organizational strengths,” were considered to be “inner changes.” These were detailed as a mechanism by which the three elements of “individuals,” “relationships,” and “organizations” mutually affect each other and change, leading to increased engagement. On the other hand, We also worked to draw a path for the items of changes that we saw as “emerged changes” that would lead to increased challenges and innovation and, ultimately outcomes.