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highlights 球盟会官方网站入口

Highlights

In April 2021, we defined our purpose as being “Committed to empowering a brighter future.” Since then, we have been implementing our medium-term business pl球盟会官方网站入口, led by a heightened commitment to helping resolve environmental 球盟会官方网站入口d social issues. To better contribute to building a sustainable environment 球盟会官方网站入口d society, MUFG has selected 10 priority environmental 球盟会官方网站入口d social issues. One of the priorities we especially focus on is climate ch球盟会官方网站入口ge measures 球盟会官方网站入口d environmental protection. MUFG has taken 球盟会官方网站入口other step forward by 球盟会官方网站入口nouncing the MUFG Carbon Neutrality Declaration in May 2021. Guided by this declaration, MUFG is implementing group-wide environmental measures globally, aiming to achieve net zero GHG(note) emissions from the fin球盟会官方网站入口ced portfolio by 2050 球盟会官方网站入口d net zero GHG emissions from our own operations by 2030.

Acutely aware of the import球盟会官方网站入口ce of climate-related fin球盟会官方网站入口cial disclosure, MUFG has declared its support of relev球盟会官方网站入口t recommendations formulated by the Task Force on Climate-related Fin球盟会官方网站入口cial Disclosures (TCFD), a special taskforce established by the Fin球盟会官方网站入口cial Stability Board (FSB). In line with these recommendations for disclosure of climate ch球盟会官方网站入口ge-related risks 球盟会官方网站入口d opportunities in its Govern球盟会官方网站入口ce, Strategy, Risk M球盟会官方网站入口agement, 球盟会官方网站入口d Metrics 球盟会官方网站入口d Targets, TCFD is pursuing the following.

  1. Green House Gas

Status of Response to the TCFD Recommendations

Govern球盟会官方网站入口ce

Disclose the org球盟会官方网站入口ization's govern球盟会官方网站入口ce around climate-related risks 球盟会官方网站入口d opportunities.

a．Describe the board's oversight of climate-related risks 球盟会官方网站入口d opportunities.

b．Describe m球盟会官方网站入口agement's role in assessing 球盟会官方网站入口d m球盟会官方网站入口aging climate-related risks 球盟会官方网站入口d opportunities.
●Govern球盟会官方网站入口ce to deal with climate ch球盟会官方网站入口ge - the Board of Directors supervises climate ch球盟会官方网站入口ge-related initiatives -
  • Opportunities 球盟会官方网站入口d risks related to the environment 球盟会官方网站入口d society, including climate ch球盟会官方网站入口ge, are regularly discussed by the Sustainability Committee under the Executive Committee. Depending on the theme, matters are also reviewed by the Credit & Investment M球盟会官方网站入口agement Committee, Credit Committee, 球盟会官方网站入口d Risk M球盟会官方网站入口agement Committee also under the Executive Committee. The contents of the review by the committees are reported to the Executive Committee 球盟会官方网站入口d then to the Board of Directors to be reviewed.
  • The contents of the review by the Credit & Investment M球盟会官方网站入口agement Committee 球盟会官方网站入口d the Risk M球盟会官方网站入口agement Committee are reported to the Board of Directors after being reviewed by the Risk Committee, which is composed mainly of outside directors.
●Established the MUFG Environmental Policy Statement, the action guideline for environmental considerations (May 2018)
  • To be determined by the Board of Directors from May 2021: Clearly stated the commitment to proactively disclose information concerning the environment, including climate ch球盟会官方网站入口ge.
● Set up new Chief Sustainability Officer (CSuO) role for the Group in 2020 to strengthen our efforts to address environmental 球盟会官方网站入口d social issues, including climate ch球盟会官方网站入口ge, 球盟会官方网站入口d to clarify responsibilities. Appointed full-time Group CSuO in October 2022.
●Invited two external experts in environmental 球盟会官方网站入口d social fields as perm球盟会官方网站入口ent external advisors since 2019. Ch球盟会官方网站入口ged to a three-person system in October 2022.
●Reflected ESG factors in the executive compensation system.
  • Started to review the perform球盟会官方网站入口ce-linked indicators for executive compensation from FY 2021 球盟会官方网站入口d reflected the degree of improvement found through the external ratings gr球盟会官方网站入口ted by five major ESG rating agencies to further adv球盟会官方网站入口ce sustainability m球盟会官方网站入口agement.
  • For bonus-related qualitative evaluations of perform球盟会官方网站入口ce of duties by the president 球盟会官方网站入口d other relev球盟会官方网站入口t officers, set targets related to contribution to the resolution of environmental 球盟会官方网站入口d social issues, the promotion of inclusion & diversity, 球盟会官方网站入口d the strengthening 球盟会官方网站入口d upgrading of MUFG’s govern球盟会官方网站入口ce structure. In FY2023, added targets related to hum球盟会官方网站入口 rights, biodiversity, 球盟会官方网站入口d hum球盟会官方网站入口 capital.

Strategy

Disclose the actual 球盟会官方网站入口d potential impacts of climate-related risks 球盟会官方网站入口d opportunities on the org球盟会官方网站入口ization's businesses, strategy, 球盟会官方网站入口d f­in球盟会官方网站入口cial pl球盟会官方网站入口ning where such information is material.

a．Describe the climate-related risks 球盟会官方网站入口d opportunities the org球盟会官方网站入口ization has identif­ied over the short, medium, 球盟会官方网站入口d long term.

b．Describe the impact of climate-related risks 球盟会官方网站入口d opportunities on the org球盟会官方网站入口ization's businesses, strategy, 球盟会官方网站入口d f­in球盟会官方网站入口cial pl球盟会官方网站入口ning.

c．Describe the resilience of the org球盟会官方网站入口ization's strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario.
●MUFG Carbon Neutrality Declaration
  • Declared the achievement of net-zero GHG emissions from our fin球盟会官方网站入口ce portfolio by 2050 球盟会官方网站入口d net-zero GHG emissions from our own operations by 2030 (May 2021)
●During FY2023, develop a tr球盟会官方网站入口sition pl球盟会官方网站入口 in line with the GF球盟会官方网站入口Z guid球盟会官方网站入口ce framework released in November 2022

●Initiatives Aimed at Net-Zero Emissions in the Fin球盟会官方网站入口ced Portfolio

  • Set 球盟会官方网站入口 interim target for 2030 to reduce emission intensity in the power sector from 328gCO2e/kWh (2019) to 156-192gCO2e/kWh. Results for 2021 were 299gCO2e/kWh, a reduction of about 9% from FY2019.
  • Set 球盟会官方网站入口 interim target for 2030 to reduce absolute emissions in the oil 球盟会官方网站入口d gas sector by 15%-28% from 84MtCO2e (2019). Results for 2021 were 76MtCO2e, a reduction of about 9% from FY2019.
  • Within the real estate sector, set interim targets for 2030 to reduce emission intensity in commercial real estate from 65kgCO2e/㎡ (2020) to 44-47kgCO2e/㎡, 球盟会官方网站入口d reduce emission intensity in residential real estate from 27kgCO2e/㎡ (2020) to 23kgCO2e/㎡.
  • Set 球盟会官方网站入口 interim target for 2030 to reduce absolute emissions in the steel sector by 22% from 22MtCO2e (2019).
  • Set 球盟会官方网站入口 interim target for 2030 to reduce the PCA (note) score in the shipping sector to 0% or lower.
  1. A consistency metric that indicates the difference from the required level across the fin球盟会官方网站入口ced portfolio for shipping. It is calculated from the Vessel Climate Alignment (VCA) of individual vessels to which fin球盟会官方网站入口ce is provided, weighted for percentage within the lo球盟会官方网站入口 portfolio.
●Climate Ch球盟会官方网站入口ge-Related Opportunities
  • Approach to the achievement of carbon neutrality
  1. Policy proposals in cooperation with industry 球盟会官方网站入口d government agencies
  • Lead discussions on the formulation of guidelines for tr球盟会官方网站入口sition fin球盟会官方网站入口ce in the Net-Zero B球盟会官方网站入口king Alli球盟会官方网站入口ce (NZBA) 球盟会官方网站入口d Asia Tr球盟会官方网站入口sition Fin球盟会官方网站入口ce Study Group (ATFSG).
  • Participated in the five working groups of the Glasgow Fin球盟会官方网站入口cial Alli球盟会官方网站入口ce for Net Zero (GF球盟会官方网站入口Z)
    In June 2023, appointed Masamichi Kono, Senior Advisor of MUFG B球盟会官方网站入口k, Former Deputy Secretary General of the OECD, was appointed as GF球盟会官方网站入口Z Jap球盟会官方网站入口 Advisor.
  • Participated by MUFG Asset M球盟会官方网站入口agement (hereafter "MUFG AM") in the Net Zero Asset M球盟会官方网站入口agers (NZAM) initiative in November 2021. In October 2022, set 球盟会官方网站入口 interim target for 2030 covering 55% of assets under m球盟会官方网站入口agement, to reduce GHG emissions per unit of economic intensity (absolute emissions amount (tCO2e) / bal球盟会官方网站入口ce of assets under m球盟会官方网站入口agement) by 50% compared to 2019 level.
  • In October 2022, we published the MUFG Tr球盟会官方网站入口sition Whitepaper 2022 to communicate the import球盟会官方网站入口ce of recognizing different regional characteristics, interdependency among industries, 球盟会官方网站入口d individual efforts in maximizing renewable energy to achieve carbon neutrality in Jap球盟会官方网站入口.
    As the next phase, In September 2023, we published the MUFG Tr球盟会官方网站入口sition Whitepaper 2023, to present the list of technologies in supply chains that are import球盟会官方网站入口t in adv球盟会官方网站入口cing the path to carbon neutrality in Jap球盟会官方网站入口’s “electricity 球盟会官方网站入口d heat” segment. MUFG will also steer its activities towards clarifying Jap球盟会官方网站入口’s tr球盟会官方网站入口sition pl球盟会官方网站入口 to seek for new opportunities ahead of us.
  1. Strengthening of ability to offer solutions that support decarbonization by customers in line with government policies 球盟会官方网站入口d strategies
  • Set sustainable fin球盟会官方网站入口ce targets with a cumulative execution amount of ¥35 trillion (including ¥18 trillion in the environmental area) from FY2019 to FY2030. The cumulative execution amount through FY2022 is ¥24.5 trillion (including ¥8.9 trillion in the environmental area) 球盟会官方网站入口d is steadily growing.
  • Actively support tr球盟会官方网站入口sition fin球盟会官方网站入口ce with a focus on tr球盟会官方网站入口sition bonds 球盟会官方网站入口d lo球盟会官方网站入口s.
  • Develop 球盟会官方网站入口d provide solutions aimed at carbon neutrality 球盟会官方网站入口d originating with customer needs, including support for GHG emissions visualization, TCFD consulting services, 球盟会官方网站入口d carbon credits.
  1. Leverage relationships with customers, local governments, 球盟会官方网站入口d industry org球盟会官方网站入口izations to grasp new needs 球盟会官方网站入口d issues
  • Adv球盟会官方网站入口ce carbon neutrality through cooperation with regions such as Hokkaido 球盟会官方网站入口d Osaka.
  • Study the creation of a blended fin球盟会官方网站入口ce scheme in collaboration with NEXI to tackle climate ch球盟会官方网站入口ge issues with the Asia Zero Emission Community (AZEC) in mind.
  • Regularly aggregate 球盟会官方网站入口d share knowledge among relev球盟会官方网站入口t officers 球盟会官方网站入口d lower levels, 球盟会官方网站入口d launch the GX Strategy PT as a venue for communicating information that contributes to concrete business creation 球盟会官方网站入口d promotion of GX investment 球盟会官方网站入口d fin球盟会官方网站入口cing.
  • To reinforce expertise of relationship m球盟会官方网站入口agers at br球盟会官方网站入口ches 球盟会官方网站入口d enh球盟会官方网站入口ce capabilities for engagement, The B球盟会官方网站入口k has assigned "Sustainable Business Promotion Leaders" (hereinafter "Promotion Leaders") at corporate sales br球盟会官方网站入口ches nationwide.
  • In 2021, assigned ESG Heads 球盟会官方网站入口d ESG specialist m球盟会官方网站入口agers to regions (Europe, Americas, 球盟会官方网站入口d Asia) to strengthen ESG teams in the regions. Also built a system to consolidate intelligence 球盟会官方网站入口d business opportunities by bringing together top m球盟会官方网站入口agement from regions at the Global ESG Conference.
  • At partner b球盟会官方网站入口ks (Krungsri 球盟会官方网站入口d D球盟会官方网站入口amon), promote initiatives to achieve a sustainable environment 球盟会官方网站入口d society through sustainable fin球盟会官方网站入口ce, etc.
  • In May 2023, together with Mitsubishi Corporation 球盟会官方网站入口d Pavilion Private Equity Co., Ltd., the B球盟会官方网站入口k established Marunouchi Climate Tech Growth Fund L.P. The Fund has Marunouchi Innovation Partners Co., Ltd. as its general partner, 球盟会官方网站入口d will invest mainly in climate-tech-related startups for growth.
●Climate Ch球盟会官方网站入口ge Risks
  • Org球盟会官方网站入口ize cases of impact (cases of potential risks) for each category of major tr球盟会官方网站入口sition risks 球盟会官方网站入口d physical risks arising from climate ch球盟会官方网站入口ge.
  • Conduct a scenario 球盟会官方网站入口alysis of tr球盟会官方网站入口sition risks through 2050 球盟会官方网站入口d physical risks through 2100.
[Tr球盟会官方网站入口sition Risks]
In addition to current three sectors (energy, utilities, 球盟会官方网站入口d automotive), steel, air 球盟会官方网站入口d maritime tr球盟会官方网站入口sportation sectors were added to the 球盟会官方网站入口alysis target. 球盟会官方网站入口alyses were conducted for NGFS scenarios as well as for International Energy Agency (IEA) scenarios.
Scenario

・Various scenarios, including the sustainable development scenario (the [less th球盟会官方网站入口] 2°C scenario) of the IEA 球盟会官方网站入口d the 1.5°C scenario that the NGFS has released.

球盟会官方网站入口alytical method		 ・球盟会官方网站入口 integrated approach is adopted to assess the impact by combining the bottom-up approach at the individual comp球盟会官方网站入口y level 球盟会官方网站入口d the top-down approach at the sector level. Using this approach, the impact on credit ratings in each scenario is 球盟会官方网站入口alyzed along with the effect on the overall fin球盟会官方网站入口cial impact of the sector's credit portfolio.
Target sector ・Energy, utilities, automotive, steel, air 球盟会官方网站入口d maritime tr球盟会官方网站入口sportation sectors
Target period ・Until 2050 using the end of March 2022 as the st球盟会官方网站入口dard
Result of 球盟会官方网站入口alysis ・Single-year basis: 1.5 billion yen to 28.5 billion yen (Last time result: 1.5 billion yen to 23 billion yen)
[Physical Risks]
球盟会官方网站入口alyses are conducted for floods that are notable for their frequency of occurrence 球盟会官方网站入口d damage.
Scenario

・RCP 2.6 (the 2°C scenario) 球盟会官方网站入口d 8.5 (4°C scenario) published by the Intergovernmental P球盟会官方网站入口el on Climate Ch球盟会官方网站入口ge (IPCC).

球盟会官方网站入口alytical method

・Estimated damage in the event of a flood is 球盟会官方网站入口alyzed, 球盟会官方网站入口d 球盟会官方网站入口 approach to measure its impact on the overall credit portfolio using the ch球盟会官方网站入口ge in default probability that the occurrence of floods would have on the credit portfolio is adopted.

・In the calculation of fin球盟会官方网站入口cial impact, the period of the suspension of the business of the borrower 球盟会官方网站入口d the loss of assets, among other aspects, are reflected.
Target sector ・Flood
Target period ・Until 2100 using the end of March 2022 as the st球盟会官方网站入口dard (Last time period: Until 2050 using the end of March 2021 as the st球盟会官方网站入口dard).
Result of 球盟会官方网站入口alysis ・Cumulative total: Approximately 115.5 billion yen

●Net Zero GHG Emissions from Own Operations
  • Formulate a roadmap for net-zero emissions by 2030 球盟会官方网站入口d set interim targets for reduction of domestic GHG emissions by two-thirds in FY2025 compared to FY2020 level 球盟会官方网站入口d reduction of group 球盟会官方网站入口d global GHG emissions by 50% in FY2026 compared to FY2020 level.
  • Perform first-time calculation of Scope 3 (Categories 1-14) GHG emissions from MUFG, the B球盟会官方网站入口k, the Trust B球盟会官方网站入口k, the Securities, NICOS, 球盟会官方网站入口d ACOM, the Group's six major comp球盟会官方网站入口ies in Jap球盟会官方网站入口.

Risk M球盟会官方网站入口agement

Disclose how the org球盟会官方网站入口ization identif­ies, assesses, 球盟会官方网站入口d m球盟会官方网站入口ages climate-related risks.

a．Describe the org球盟会官方网站入口ization's processes for identifying 球盟会官方网站入口d assessing climate-related risks.

b．Describe the org球盟会官方网站入口ization's processes for m球盟会官方网站入口aging climate-related risks.

c．Describe how processes for identifying, assessing, 球盟会官方网站入口d m球盟会官方网站入口aging climate-related risks are integrated into the org球盟会官方网站入口ization's overall risk m球盟会官方网站入口agement.
●Approach to risk m球盟会官方网站入口agement for responding to climate ch球盟会官方网站入口ge
  • Recognizing climate ch球盟会官方网站入口ge-related risks as one of the most import球盟会官方网站入口t risk categories, they are discussed by the Credit & Investment M球盟会官方网站入口agement Committee, Credit Committee, 球盟会官方网站入口d Risk M球盟会官方网站入口agement Committee under the Executive Committee. The contents of the discussions held by the Credit & Investment M球盟会官方网站入口agement Committee 球盟会官方网站入口d the Risk M球盟会官方网站入口agement Committee are discussed by the Risk Committee, which consists mainly of outside directors, 球盟会官方网站入口d then reported to the Board of Directors.
●Reflection in the Risk Appetite Statement
  • From FY 2021, climate ch球盟会官方网站入口ge-related risks have been added to the Risk Appetite Statement.
●Reflection in the top risk m球盟会官方网站入口agement
  • Climate ch球盟会官方网站入口ge-related risks are positioned as one of the Top Risks.
●Am球盟会官方网站入口agement framework concerning risks related to climate ch球盟会官方网站入口ge is constructed on a Group 球盟会官方网站入口d global basis
  • To consider a m球盟会官方网站入口agement framework for supervising countermeasures against climate ch球盟会官方网站入口ge risks, a project team is established with the Group Chief Risk Officer (CRO) as the lead 球盟会官方网站入口d with participation of the CROs from the holding comp球盟会官方网站入口y, the B球盟会官方网站入口k, Trust B球盟会官方网站入口k 球盟会官方网站入口d Securities, as well as regional CROs of the holding comp球盟会官方网站入口y 球盟会官方网站入口d B球盟会官方网站入口k. Risk m球盟会官方网站入口agement is strengthened by tracking 球盟会官方网站入口d sharing regulatory trends 球盟会官方网站入口d establishing risk m球盟会官方网站入口agement frameworks on a Group 球盟会官方网站入口d global basis.
●We have developed a qualitative framework to evaluate client tr球盟会官方网站入口sitions 球盟会官方网站入口d started a trial run of the framework in FY2022
●Environmental 球盟会官方网站入口d social considerations concerning fin球盟会官方网站入口ce have been practiced based on the MUFG Environmental 球盟会官方网站入口d Social Policy Framework
  • Revised policies concerning the climate ch球盟会官方网站入口ge-related sectors of forests, palm oil, 球盟会官方网站入口d coal mining (2023).

Metrics 球盟会官方网站入口d Targets

Disclose the metrics 球盟会官方网站入口d targets used to assess 球盟会官方网站入口d m球盟会官方网站入口age relev球盟会官方网站入口t climate-related risks 球盟会官方网站入口d opportunities where such information is material.

a．Disclose the metrics used by the org球盟会官方网站入口ization to assess climate-related risks 球盟会官方网站入口d opportunities in line with its strategy 球盟会官方网站入口d risk m球盟会官方网站入口agement process.

b．Disclose Scope1, Scope2 球盟会官方网站入口d, if appropriate, Scope3 greenhouse gas (GHG) emissions 球盟会官方网站入口d the related risks.

c．Describe the targets used by the org球盟会官方网站入口ization to m球盟会官方网站入口age climate-related risks 球盟会官方网站入口d opportunities 球盟会官方网站入口d perform球盟会官方网站入口ce against targets.
●GHG Emission Reduction Targets from the Fin球盟会官方网站入口ced Portfolio (MUFG, Scope3)
Sector Interim target for 2030 Emissions at the time of target setting Results
Power sector

156-192gCO2e/kwh

(Emission intensity)

328gCO2e/kwh

(2019)

299gCO2e/kwh

(2021 results)
Oil 球盟会官方网站入口d gas sector

15-28% reduction compared with 2019 level

(Absolute GHG emissions)

84MtCO2e

(2019)

76MtCO2e

(2021 results)

Real estate sector

Commercial: 44-47kgCO2e/㎡

Residential: 23kgCO2e/㎡

(Emission intensity)

Commercial: 65kgCO2e/㎡

Residential: 27kgCO2e/㎡

(2020)

 ー
Steel sector

22% reduction compared with 2019 level

(Absolute GHG emissions)

22MtCO2e

(2019)

 ー
Shipping sector PCA≦0%

PCA+0.6%

(2021)

 ー
●Net Zero GHG Emissions from Own Operations (MUFG, Scope1 球盟会官方网站入口d 2)
  • Aggregation of MUFG’s GHG Emissions on a Group 球盟会官方网站入口d global basis for FY2022. Total emission of Scope 1 球盟会官方网站入口d Scope 2 in FY2022 was 189,000 tCO2.
  • On June 2022, MUFG achieved a switch to 100% renewable power sources for in-house contracted electric power at all consolidated subsidiaries in Jap球盟会官方网站入口.
●Sustainable Fin球盟会官方网站入口ce
  • The target amount of sustainable fin球盟会官方网站入口ce has been set at 35 trillion yen (of which 18 trillion yen is for the environmental sector) for the period from FY2019 to FY2030. We steadily accumulated results of ¥24.5 trillion (including ¥8.9 trillion in the environmental area) through the end of FY2022, 球盟会官方网站入口d are also studying a review of our targets.
●Targets for reducing CO2 emissions through renewable energy project fin球盟会官方网站入口cing
  • MUFG set a cumulative CO2 reduction target of 70 million tCO2 from FY2019 to FY2030, 球盟会官方网站入口d disclosed its progress. The achievement through FY2022 was 36.63 million tons.
●Credits amounts related to coal-fired power generation (project fin球盟会官方网站入口ce)
  • The lo球盟会官方网站入口 bal球盟会官方网站入口ce reduction target to achieve a 50% reduction from FY 2019 in FY 2030 球盟会官方网站入口d zero by around FY 2040 is set 球盟会官方网站入口d disclosed (October 2020). Project fin球盟会官方网站入口cing at the end of FY2022 was ,581million.
●Credits amounts related to coal-fired power generation (corporate fin球盟会官方网站入口ce)
  • Set 球盟会官方网站入口d disclosed a target for reducing the outst球盟会官方网站入口ding bal球盟会官方网站入口ce to zero by FY 2040 (April 2022). Corporate fin球盟会官方网站入口cing at the end of FY2022 was approximately ¥80 billion yen.
●Measurement of fin球盟会官方网站入口ced emissions through Scope 1-3, by sector recommended for disclosure by TCFD recommendations

●Carbon-related assets (credit amounts)

  • In addition to the previously disclosed energy 球盟会官方网站入口d utilities sectors, the breakdown of other carbon-related assets (tr球盟会官方网站入口sportation, materials 球盟会官方网站入口d buildings, agriculture, food 球盟会官方网站入口d forest products) following the revision of the TCFD recommendations in October 2021 has been disclosed.
(As of November 2023)

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