Notice of Commencement of Sales of Don’t Burn Insurance

Toyota Tsusho Corporation (“Toyota Tsusho”) announced today that Toyota Tsusho and Mitsui Sumitomo Insurance Company, Limited of MS&AD Insurance Group Holdings, Inc. have developed “Don’t Burn Insurance (Clothing Circulation Expense Compensation Special Contract)” for apparel businesses and commenced sales in October.
This insurance can promote the circular economy in the apparel industry. By incorporating it into an industry facing problems of large amounts of waste and impact on the environment, it enables the efficient use of resources and reduction of waste.

Content

The insurance policy guarantees the cost of recycling clothing that cannot be sold due to water damage or other causes without burning it. As an industry-first special contract of its kind, it covers the additional expenses of textile and apparel companies for circulating (recycling or upcycling) apparel that has been damaged and would otherwise be incinerated.

Roles of Each Company

Toyota Tsusho: Introduction of recycling companies to manufacturers, etc. and provision of an environment for re-circulation, such as processing into military gloves, automobile interior materials, etc.
Mitsui Sumitomo Insurance: Compensation for additional expenses for recirculation of clothing instead of incineration

Don’t Burn Insurance leads to initiatives to minimize environmental impact, such as proper disposal of waste, and its entry into the apparel industry is an important step toward realizing a circular economy.
Proactive efforts for the effective utilization of resources and reduction of waste are expected to lead to the realization of a sustainable apparel industry.

Mitsui Sumitomo Insurance press release：https://www.ms-ins.com/news/fy2023/pdf/0928_1.pdf