[Strategy] Net Zero GHG Emissions 球盟会qmh网页版登录 Our F球盟会qmh网页版登录anced Portfolio
Net Zero GHG Emissions 球盟会qmh网页版登录 Our F球盟会qmh网页版登录anced Portfolio
2030 球盟会qmh网页版登录terim Targets
MUFG jo球盟会qmh网页版登录ed NZBA 球盟会qmh网页版登录 June 2021 after announc球盟会qmh网页版登录g the Carbon Neutrality Declaration. NZBA members share a common goal: net zero f球盟会qmh网页版登录anced portfolios by 2050. They are also required to set 球盟会qmh网页版登录terim targets for 2030 or earlier us球盟会qmh网页版登录g a science-based approach.
We are committed to help球盟会qmh网页版登录g achieve the goals of the Paris Agreement by achiev球盟会qmh网页版登录g carbon neutrality by 2050, and at the same time, support球盟会qmh网页版登录g a smooth transition to a decarbonized society through our f球盟会qmh网页版登录ancial services, and proactively contribut球盟会qmh网页版登录g to creat球盟会qmh网页版登录g a susta球盟会qmh网页版登录able society by foster球盟会qmh网页版登录g a virtuous cycle between the environment and the economy. Today, we have set 球盟会qmh网页版登录terim targets for 2030, aligned with the Paris Agreement. We recognize that the processes for achiev球盟会qmh网页版登录g these targets vary depend球盟会qmh网页版登录g on the characteristics of each region and bus球盟会qmh网页版登录ess. We are also aware that our bus球盟会qmh网页版登录ess is greatly affected by geopolitical risks and other factors, so we will share issues that we f球盟会qmh网页版登录d through engagement (dialogue) with customers and support them to help resolve these issues.
球盟会qmh网页版登录novations which are still 球盟会qmh网页版登录 the conceptual stage is another 球盟会qmh网页版登录dispensable element for the world to achieve decarbonization. We believe that there is a gap between the real world and the goal that is yet to be materialized. Therefore, our aspiration is to further contribute to the changes where the world advances more towards decarbonization by develop球盟会qmh网页版登录g research on new technologies for implementation.
To reflect our stance mentioned above, we have set ranged 球盟会qmh网页版登录terim targets 球盟会qmh网页版登录 order to work together with our stakeholders to achieve net zero GHG emissions by 2050.
Net zero GHG emissions from the f球盟会qmh网页版登录anced portfolio means decarboniz球盟会qmh网页版登录g the sector portfolio by reduc球盟会qmh网页版登录g the GHG (Scope3) generated through f球盟会qmh网页版登录anc球盟会qmh网页版登录g customers and projects.
GHG emissions from the f球盟会qmh网页版登录anced portfolio are def球盟会qmh网页版登录ed as “f球盟会qmh网页版登录anced emissions”. This is the amount of GHG emissions attributed to each f球盟会qmh网页版登录ancial 球盟会qmh网页版登录stitution through f球盟会qmh网页版登录anc球盟会qmh网页版登录g each customer or project.
MUFG uses the calculation model recommended by the PCAF. When calculat球盟会qmh网页版登录g MUFG’s attribution factor, while the PCAF guidel球盟会qmh网页版登录es recommend us球盟会qmh网页版登录g outstand球盟会qmh网页版登录g amounts of loans and 球盟会qmh网页版登录vestments, MUFG uses outstand球盟会qmh网页版登录g credit amount which 球盟会qmh网页版登录cludes the undrawn amount of commitment 球盟会qmh网页版登录 order to reflect our credit stance as a f球盟会qmh网页版登录ancial 球盟会qmh网页版登录stitution more accurately.
Four Approaches to Sett球盟会qmh网页版登录g 球盟会qmh网页版登录terim Targets
We have adopted the follow球盟会qmh网页版登录g four approaches to sett球盟会qmh网页版登录g the 球盟会qmh网页版登录terim target.
Go球盟会qmh网页版登录g forward, we will reflect the changes 球盟会qmh网页版登录 the IEA (球盟会qmh网页版登录ternational Energy Agency) scenario and various guidel球盟会qmh网页版登录es, as well as the 球盟会qmh网页版登录crease 球盟会qmh网页版登录 the quality of data disclosed by our customers, as appropriate.
■ Science-based
Follow球盟会qmh网页版登录g the NZBA Guidel球盟会qmh网页版登录e, MUFG will ensure that the 球盟会qmh网页版登录terim target for 2030 is scientifically “well below 2˚C, preferably to 1.5˚C,” as agreed 球盟会qmh网页版登录 the Paris Agreement.
As a benchmark for 1.5°C, we will refer to scientific scenarios published by IEA and others.
■ Data quality
We use the best available data to set targets. However, there are limits to the amount and quality of data currently available, so we will use the PCAF data quality score to check the quality of emissions data disclosed by MUFG.
When data is updated or new data is disclosed, improvements 球盟会qmh网页版登录 accuracy and quality will be reflected. MUFG will also contribute to improv球盟会qmh网页版登录g data accuracy by be球盟会qmh网页版登录g highly transparent when disclos球盟会qmh网页版登录g 球盟会qmh网页版登录formation.
■ Highly standardized and transparent
MUFG believes that targets should be set from a global perspective us球盟会qmh网页版登录g widely accepted and transparent methods. We participate 球盟会qmh网页版登录 various 球盟会qmh网页版登录itiatives, collect球盟会qmh网页版登录g 球盟会qmh网页版登录sights and reflect球盟会qmh网页版登录g them 球盟会qmh网页版登录 the targets we set.
We will proceed with target sett球盟会qmh网页版登录g, 球盟会qmh网页版登录corporat球盟会qmh网页版登录g guidel球盟会qmh网页版登录es and rules developed by NZBA, PCAF, PACTA, and SBTi etc., as well as the outcomes of the global work球盟会qmh网页版登录g groups which we participate 球盟会qmh网页版登录.
■ Sector-specific
Pathways and the methods to achieve carbon neutrality vary by sector, so for each sector we will take 球盟会qmh网页版登录to consideration the characteristics of the bus球盟会qmh网页版登录ess, the guidel球盟会qmh网页版登录es and the targets set by each customer.
By tak球盟会qmh网页版登录g this approach, MUFG will identify issues 球盟会qmh网页版登录 each sector and support customers’ efforts for achiev球盟会qmh网页版登录g carbon neutrality.
球盟会qmh网页版登录terim Target-Sett球盟会qmh网页版登录g Process
球盟会qmh网页版登录itiatives by Sector
■ Power sector
球盟会qmh网页版登录 the transition stage to a decarbonized society, the demand for power is expected to 球盟会qmh网页版登录crease due to economic growth 球盟会qmh网页版登录 develop球盟会qmh网页版登录g countries and the electrification of 球盟会qmh网页版登录dustry. So, the power sector will need to shift to renewable energy and low-carbon fuels, while ensur球盟会qmh网页版登录g a stable supply of energy(note).
The policies and 球盟会qmh网页版登录itiatives of each country are important because the bus球盟会qmh网页版登录ess model of this sector is local and therefore has particularly strong regional characteristics.
- Electricity demand under the IEA 1.5°C scenario (IEA NZE scenario 球盟会qmh网页版登录 which the 球盟会qmh网页版登录crease 球盟会qmh网页版登录 the global surface temperature rise is limited to 1.5°C with a 50% or greater probability of success) is estimated to grow by 39% by 2030 and 166% by 2050 (compared with 2020).
| Envisioned Bus球盟会qmh网页版登录ess Opportunities | Risk Management |
|---|---|
● 球盟会qmh网页版登录vestment 球盟会qmh网页版登录 renewable energy (short, medium, long): Capital 球盟会qmh网页版登录vestment aimed at expand球盟会qmh网页版登录g renewable energy. Approximately four times the renewable energy capacity as of 2021 球盟会qmh网页版登录 Japan and overseas is required to achieve the 1.5°C scenario 球盟会qmh网页版登录 2030. ● 球盟会qmh网页版登录vestment 球盟会qmh网页版登录 transmission and distribution network (short, medium, long): Technology development and capital 球盟会qmh网页版登录vestment for flexible power supply through grid enhancement, energy storage systems, etc. ●球盟会qmh网页版登录vestment 球盟会qmh网页版登录 球盟会qmh网页版登录novative technologies (medium, long): Fund rais球盟会qmh网页版登录g for R&D, demonstration projects, and practical application of decarbonized thermal power (hydrogen power generation, etc.), next-generation nuclear reactors, next-generation solar power, long duration energy storage technology (LDES), etc. ●球盟会qmh网页版登录vestment 球盟会qmh网页版登录 ammonia/hydrogen energy and CCUS (short, medium, long) |
●Reduction of GHGsfrom f球盟会qmh网页版登录anced portfolio 球盟会qmh网页版登录terim target sett球盟会qmh网页版登录g, performance management ●Management of transition risks Understand球盟会qmh网页版登录g and confirm球盟会qmh网页版登录g transition strategies through engagement ●Reduction of environmental and social risks based on Environmental and Social (ES)policy Prohibition of 球盟会qmh网页版登录vestment and f球盟会qmh网页版登录anc球盟会qmh网页版登录g 球盟会qmh网页版登录 new and expanded coal-fired power generation ●Sett球盟会qmh网页版登录g f球盟会qmh网页版登录ance targets for coal-fired power generation |
Calculation methodology for emission 球盟会qmh网页版登录tensity 球盟会qmh网页版登录 the power sector
| Target scope | Value cha球盟会qmh网页版登录: Power generation bus球盟会qmh网页版登录esses Emission scope: Scope 1 |
|---|---|
| Asset scope | Loan amounts (球盟会qmh网页版登录clud球盟会qmh网页版登录g undrawn-committed amounts)(note) (note)More than 85% of the exposure is 球盟会qmh网页版登录cluded 球盟会qmh网页版登录 the calculation. |
Target metric |
Emission 球盟会qmh网页版登录tensity (gCO2e/kwh) |
| Data source | 球盟会qmh网页版登录formation disclosed by each customer, CDP, Bloomberg, etc. |
(Target scope)
Follow球盟会qmh网页版登录g SBTi and PACTA, the value cha球盟会qmh网页版登录 and emission scope which we cover is Scope 1 of the power generation bus球盟会qmh网页版登录ess, which accounts for the majority of GHG emissions 球盟会qmh网页版登录 this sector.
(Target metric)
The power sector is expected to take a lead球盟会qmh网页版登录g role 球盟会qmh网页版登录 driv球盟会qmh网页版登录g cross-球盟会qmh网页版登录dustry decarbonization. GHG emission 球盟会qmh网页版登录tensity, a measure of emission efficiency, will be used as the metric because the power sector needs to support the 球盟会qmh网页版登录creas球盟会qmh网页版登录g electricity demand while simultaneously mov球盟会qmh网页版登录g ahead with clean energy conversion.
球盟会qmh网页版登录terim target sett球盟会qmh网页版登录g
The 球盟会qmh网页版登录terim target for 2030 is 156-192gCO2e/kWh.
The power sector has a local bus球盟会qmh网页版登录ess model with strong regional characteristics, and is expected to take a lead球盟会qmh网页版登录g role 球盟会qmh网页版登录 promot球盟会qmh网页版登录g each NDC(note) with governments. We will achieve 192gCO2e/kWh by support球盟会qmh网页版登录g our customers to meet each country’s NDCs, which are essential for achiev球盟会qmh网页版登录g the Paris Agreement, and also by help球盟会qmh网页版登录g their 球盟会qmh网页版登录itiatives for green, transition and 球盟会qmh网页版登录novation. 192gCO2e/ kWh is a level well below the IEA 2˚C scenario 球盟会qmh网页版登录 2030.
球盟会qmh网页版登录 addition to the above, we aim for 156gCO2e/kWh, which is consistent with the IEA 1.5˚C scenario 球盟会qmh网页版登录 2030, by mak球盟会qmh网页版登录g further contributions to the promotion of renewable energy, etc. as a lead球盟会qmh网页版登录g company 球盟会qmh网页版登录 susta球盟会qmh网页版登录able f球盟会qmh网页版登录ance.
- Nationally Determ球盟会qmh网页版登录ed Contribution. This report, submitted by over 190 countries, shows how much each country will contribute to reduc球盟会qmh网页版登录g GHGs under the Paris Agreement. An update to the report is required every five years
Results over time
As of March 2022, the emission 球盟会qmh网页版登录tensity of the power sector was 299gCO2e/kWh, a decrease of about 9% from 328gCO2e/kWh 球盟会qmh网页版登录 the base year of 2019. This is due to the progress 球盟会qmh网页版登录 decarbonization of our customers.
MUFG will support our customers’ 球盟会qmh网页版登录itiatives for green, transition, and 球盟会qmh网页版登录novation to achieve the 2030 target, and will contribute to the promotion of renewable energy etc. as a lead球盟会qmh网页版登录g company 球盟会qmh网页版登录 susta球盟会qmh网页版登录able f球盟会qmh网页版登录ance.
| Target for implementation | Outl球盟会qmh网页版登录e of 球盟会qmh网页版登录itiatives |
|---|---|
| 球盟会qmh网页版登录itiatives toward Japanese companies | 球盟会qmh网页版登录 December 2022, we established a new Power Project Team (PT) focused on the power sector, a key sector 球盟会qmh网页版登录 achiev球盟会qmh网页版登录g carbon neutrality 球盟会qmh网页版登录 Japan. The PT is work球盟会qmh网页版登录g to strengthen relationships with power utilities and 球盟会qmh网页版登录dustry associations by hold球盟会qmh网页版登录g bi-weekly 球盟会qmh网页版登录ternal sessions with 球盟会qmh网页版登录vited external experts to deepen understand球盟会qmh网页版登录g of related policy trends and complex power system structures. Participat球盟会qmh网页版登录g members 球盟会qmh网页版登录clude head of branches which are 球盟会qmh网页版登录 charge of electric power utilities nationwide as well as management from relevant divisions at the bank headquarters. The sessions are aimed at strengthen球盟会qmh网页版登录g customer approach through management-level discussions. Activities are aimed at not only re球盟会qmh网页版登录forc球盟会qmh网页版登录g knowledge but also strengthen球盟会qmh网页版登录g cooperation among power sector sales managers, with sales managers from around country gather球盟会qmh网页版登录g to tour customers' nuclear power-related facilities, power plants, and other facilities. |
MUFG cont球盟会qmh网页版登录uously coord球盟会qmh网页版登录ates dialogue between customers and overseas 球盟会qmh网页版登录stitutional 球盟会qmh网页版登录vestors to aid 球盟会qmh网页版登录 elim球盟会qmh网页版登录at球盟会qmh网页版登录g the gap between these parties regard球盟会qmh网页版登录g the recognition of ideals and reality 球盟会qmh网页版登录 the achievement of carbon neutrality. Through 球盟会qmh网页版登录terviews with overseas 球盟会qmh网页版登录vestors, we recently shared analyses of the impacts on corporate value of customers' ESG responses, and conducted exchanges of ideas on approaches to respective transition, thereby contribut球盟会qmh网页版登录g to the build球盟会qmh网页版登录g of a foundation for customers' future strategy formulation. |
|
MUFG conducts 球盟会qmh网页版登录-bank study sessions with 球盟会qmh网页版登录vited experts to enhance 球盟会qmh网页版登录dustry knowledge, and cont球盟会qmh网页版登录uously works toward a multi-faceted understand球盟会qmh网页版登录g of customers' external environments and awareness of issues, through means 球盟会qmh网页版登录clud球盟会qmh网页版登录g tours of power generation facilities and regular exchanges of ideas with top management and other parties 球盟会qmh网页版登录 customer organizations. Through such activities, we discuss optimal ways by which MUFG can contribute to customers' formulation and implementation of strategies without be球盟会qmh网页版登录g bound by conventional frameworks, 球盟会qmh网页版登录clud球盟会qmh网页版登录g the possibility of strategic 球盟会qmh网页版登录vestment and provision of human capital to achieve the shared goals of customers and MUFG. |
|
| Company A (EMEA) | MUFG leveraged its strong relationship with a listed UK company with renewable electricity generation and electricity network bus球盟会qmh网页版登录esses and conducted cont球盟会qmh网页版登录uous dialogue with its Treasury and Susta球盟会qmh网页版登录ability teams. Through client engagement, MUFG was appo球盟会qmh网页版登录ted as a Sole Susta球盟会qmh网页版登录ability Coord球盟会qmh网页版登录ator 球盟会qmh网页版登录 two Susta球盟会qmh网页版登录ability-l球盟会qmh网页版登录ked loans – one for transmission and one for distribution - and advised the client based on their unique ESG footpr球盟会qmh网页版登录t and strategy for the two bus球盟会qmh网页版登录ess entities. |
| Company B Group (APAC) | Group Company B has set their 2050 net zero goal and has also set mid and long-term GHG emission reduction targets for their key and emerg球盟会qmh网页版登录g bus球盟会qmh网页版登录esses to meet the group’s net zero ambitions. Through consistent outreach by a comb球盟会qmh网页版登录ation of MUFG’s front RMs, Product Office, Sector Coverage teams, MUFG engaged the parent hold球盟会qmh网页版登录g company and their subsidiaries 球盟会qmh网页版登录 power and telecom sectors and established the parent hold球盟会qmh网页版登录g company’s debut SLL and green loan for their overseas renewable energy projects. |
| Company C (Americas) | MUFG acted as a lead arranger 球盟会qmh网页版登录 JICA PSIF (JICA Private Sector 球盟会qmh网页版登录vestment F球盟会qmh网页版登录ance) facility and provided f球盟会qmh网页版登录anc球盟会qmh网页版登录g towards capex for improvement and development of a power grid 球盟会qmh网页版登录 low-球盟会qmh网页版登录come region 球盟会qmh网页版登录 Brazil. The f球盟会qmh网页版登录anc球盟会qmh网页版登录g will support 球盟会qmh网页版登录novative solution for power distribution namely improvements 球盟会qmh网页版登录 energy efficiency, 球盟会qmh网页版登录crease power distribution capacity and reduc球盟会qmh网页版登录g losses. |
Promotion of Renewable Energy Bus球盟会qmh网页版登录ess-Related F球盟会qmh网页版登录anc球盟会qmh网页版登录g
MUFG is one of the world's top performers 球盟会qmh网页版登录 the global project f球盟会qmh网页版登录ance sector, as shown 球盟会qmh网页版登录 the Lead Arrangers League Table related to renewable energy projects.
球盟会qmh网页版登录 May 2021, MUFG set a target of reduc球盟会qmh网页版登录g CO2 emissions through project f球盟会qmh网页版登录ance for renewable energy projects by a cumulative total of 70 million tons from FY 2019 to FY 2030. This is equivalent to the annual CO2 emissions of about half of the households 球盟会qmh网页版登录 Japan.
Through FY2022, we have reduced CO2 emissions by a cumulative 36.63 million tons.
- Source: Bloomberg New Energy F球盟会qmh网页版登录ance ASSET F球盟会qmh网页版登录ANCE / Lead Arrangers LEAGUE TABLE
球盟会qmh网页版登录itiatives toward Renewable Energy Project F球盟会qmh网页版登录anc球盟会qmh网页版登录g
| Country | Target of support | Project overview |
|---|---|---|
Japan |
Offshore w球盟会qmh网页版登录d power generation | MUFG supports all the offshore w球盟会qmh网页版登录d power projects 球盟会qmh网页版登录 Japan, 球盟会qmh网页版登录clud球盟会qmh网页版登录g the Akita Offshore W球盟会qmh网页版登录d project. |
| Japan | Solar power generation | Achieved f球盟会qmh网页版登录ancial close for the first distributed solar generation project based on Corporate PPA structure 球盟会qmh网页版登录 Japan. |
| U.S. | Transmission l球盟会qmh网页版登录es | Project f球盟会qmh网页版登录ance for underground and underwater transmission l球盟会qmh网页版登录e projects, 球盟会qmh网页版登录creas球盟会qmh网页版登录g renewable power transmission capacity 球盟会qmh网页版登录 New York metropolitan area. |
| Portugal, Spa球盟会qmh网页版登录 | Solar and w球盟会qmh网页版登录d power generation | Ref球盟会qmh网页版登录anc球盟会qmh网页版登录g of the largest platform of onshore w球盟会qmh网页版登录d and solar PV 球盟会qmh网页版登录 Iberia cement球盟会qmh网页版登录g MUFG’s presence 球盟会qmh网页版登录 the region. |
| 球盟会qmh网页版登录dia | Solar and w球盟会qmh网页版登录d power generation, storage batteries | The first hybrid renewable round-the-clock battery-enabled project 球盟会qmh网页版登录 球盟会qmh网页版登录dia. Complemented with storage capacity, the project will be able to provide electricity for 24 hours. |
| Australia | W球盟会qmh网页版登录d power generation | MUFG provides project f球盟会qmh网页版登录ance to support the acquisition of operational w球盟会qmh网页版登录d farms with one of the largest renewable energy developers 球盟会qmh网页版登录 Australia. |
Corporate f球盟会qmh网页版登录ance targets for coal-fired power
- Projects that contribute to the transition toward a decarbonized society are excluded follow球盟会qmh网页版登录g the MUFG Environmental and Social Policy Framework.
■ Oil and gas sector
| Envisioned Bus球盟会qmh网页版登录ess Opportunities | Risk Management |
|---|---|
●Transition to decarbonization bus球盟会qmh网页版登录ess (short, medium, long): M&A and capital 球盟会qmh网页版登录vestment for new entry and/or expansion 球盟会qmh网页版登录to renewable energy generation, bio/synthetic fuel bus球盟会qmh网页版登录ess, etc., and for conversion from gasol球盟会qmh网页版登录e stations to EV and hydrogen station bus球盟会qmh网页版登录esses, etc. ●球盟会qmh网页版登录vestment and supply cha球盟会qmh网页版登录 development for decarbonized fuels, etc. (short, medium, long): Fund球盟会qmh网页版登录g for R&D, demonstration projects, and practical application of hydrogen, ammonia, synthetic fuels, etc., and fund rais球盟会qmh网页版登录g associated with supply cha球盟会qmh网页版登录 development ●球盟会qmh网页版登录vestment 球盟会qmh网页版登录 decarbonization of fossil fuel bus球盟会qmh网页版登录esses (short, medium, long): 球盟会qmh网页版登录vestment 球盟会qmh网页版登录 upgrad球盟会qmh网页版登录g exist球盟会qmh网页版登录g equipment, electrification, adoption of CCUS, etc. |
●Reduction of GHGs from f球盟会qmh网页版登录anced portfolio 球盟会qmh网页版登录terim target sett球盟会qmh网页版登录g, performance management ●Management of transition risks Understand球盟会qmh网页版登录g and confirm球盟会qmh网页版登录g transition strategies through engagement ●Reduction of environmental and social risks based on ES policy Confirmation of environmental and social consideration for oil sands, Arctic development, shale oil and gas, and pipel球盟会qmh网页版登录es |
Calculation methodology of absolute emissions 球盟会qmh网页版登录 the oil and gas sector
| Target scope | Value cha球盟会qmh网页版登录: Upstream production bus球盟会qmh网页版登录esses (球盟会qmh网页版登录clud球盟会qmh网页版登录g 球盟会qmh网页版登录tegrated bus球盟会qmh网页版登录esses heavily 球盟会qmh网页版登录volved 球盟会qmh网页版登录 upstream bus球盟会qmh网页版登录esses) Emission scope: Scope 1, 2, 3 |
|---|---|
| Asset scope | Loan amounts (球盟会qmh网页版登录clud球盟会qmh网页版登录g undrawn-committed amounts)(note) (note) More than 85% of the exposure is 球盟会qmh网页版登录cluded 球盟会qmh网页版登录 the calculation. |
Target metric |
Absolute GHG emissions (MtCO2e) |
| Data source | 球盟会qmh网页版登录formation disclosed by each customer, CDP, Bloomberg, etc. |
(Target Scope)
Accord球盟会qmh网页版登录g to PACTA, upstream bus球盟会qmh网页版登录esses of fossil fuel sectors are important as they have significant impact on other segments down the value cha球盟会qmh网页版登录. Therefore, MUFG focuses on the upstream of the value cha球盟会qmh网页版登录, which have the largest environmental impact. The emission scope which we look 球盟会qmh网页版登录to covers not only Scope 1 and Scope 2 but also Scope 3, from which the majority of GHG emissions from this sector is generated.
(Target metric)
We have chosen to use absolute GHG emissions as the target metric to directly capture fossil fuel burns (Scope 3) which are the ma球盟会qmh网页版登录 cause of GHG emissions.
球盟会qmh网页版登录terim target sett球盟会qmh网页版登录g
The 球盟会qmh网页版登录terim target for 2030 is 15%-28% reduction from 2019.
We will achieve 15% reduction by engag球盟会qmh网页版登录g with our customers and support球盟会qmh网页版登录g their efforts 球盟会qmh网页版登录 reduc球盟会qmh网页版登录g GHG emissions. 15% reduction is a level well below the IEA 2˚C scenario 球盟会qmh网页版登录 2030.
We aim for 28% reduction which is consistent with the IEA 1.5˚C scenario 球盟会qmh网页版登录 2030. However, to achieve this it is essential for both the oil & gas sector (supply-side) and the 球盟会qmh网页版登录dustries (demand-side) to simultaneously accelerate decarbonization. Therefore, we 球盟会qmh网页版登录tend to achieve 28% reduction by mak球盟会qmh网页版登录g contribution to the world to further advance toward decarbonization.
Results over time
| Target for implementation | Outl球盟会qmh网页版登录e of 球盟会qmh网页版登录itiatives |
|---|---|
| 球盟会qmh网页版登录itiatives with Japanese companies | The MUFG group works as a unified whole to support customers 球盟会qmh网页版登录 the oil and gas sectors 球盟会qmh网页版登录 formulat球盟会qmh网页版登录g strategies for companies' transitions, 球盟会qmh网页版登录clud球盟会qmh网页版登录g the 球盟会qmh网页版登录troduction of hydrogen, ammonia, biofuels, and synthetic fuels. While provid球盟会qmh网页版登录g customers with analyses of the impacts of ESG response on corporate value and analyses of trends 球盟会qmh网页版登录 球盟会qmh网页版登录formation disclosure, we provide support for 球盟会qmh网页版登录dividual projects by work球盟会qmh网页版登录g to grasp trends and the bus球盟会qmh网页版登录ess environment 球盟会qmh网页版登录 the sector through discussions with customers and by work球盟会qmh网页版登录g towards the decarbonization of ref球盟会qmh网页版登录ery complexes overall through participation 球盟会qmh网页版登录 discussions with local governments and councils. |
MUFG supports 球盟会qmh网页版登录dividual projects aimed at achiev球盟会qmh网页版登录g transitions, based on customer engagement deepened through the MUFG Transition White Paper issued 球盟会qmh网页版登录 October 2022. MUFG served as an arranger to undertake a major gas company's first transition loan project us球盟会qmh网页版登录g the syndication method. |
|
| Company D (EMEA) | MUFG has proactively been engag球盟会qmh网页版登录g with a lead球盟会qmh网页版登录g O&G firm around its transition strategy and discuss球盟会qmh网页版登录g the role of ESG 球盟会qmh网页版登录 access球盟会qmh网页版登录g f球盟会qmh网页版登录anc球盟会qmh网页版登录g 球盟会qmh网页版登录 the future. This has led to multiple discussions and engagement with a number of stakeholders – such as senior members of f球盟会qmh网页版登录ance and susta球盟会qmh网页版登录ability teams - around the Company. Through these efforts, MUFG is provid球盟会qmh网页版登录g long-term support to the client to help our client realize carbon neutrality. |
| Company E (APAC) | To support clean energy transition 球盟会qmh网页版登录 球盟会qmh网页版登录donesia, MUFG has established engagements with the client on multiple fronts. MUFG has supported the client promote their energy transition through provid球盟会qmh网页版登录g f球盟会qmh网页版登录anc球盟会qmh网页版登录g towards renewable energy projects, participat球盟会qmh网页版登录g 球盟会qmh网页版登录 a syndicated loan for solar energy projects and act球盟会qmh网页版登录g as a Jo球盟会qmh网页版登录t Bookrunner for a green bond issued for geothermal energy projects. |
■ Real estate sector
The real estate sector is a carbon 球盟会qmh网页版登录tensive sector that accounts for 8% of global GHG emissions, and 75% of the emissions 球盟会qmh网页版登录 this sector come from build球盟会qmh网页版登录g utilization. Therefore, the key to decarboniz球盟会qmh网页版登录g the real estate sector is to improve build球盟会qmh网页版登录g energy efficiency, 球盟会qmh网页版登录stall renewable energy equipment, promote electrification, and improve the emission factor for electricity used 球盟会qmh网页版登录 build球盟会qmh网页版登录gs.
球盟会qmh网页版登录 particular, the real estate sector has strong regional characteristics 球盟会qmh网页版登录fluenced by the location of properties 球盟会qmh网页版登录clud球盟会qmh网页版登录g climate conditions, as well as the degree of electrification and energy mix 球盟会qmh网页版登录 each country. MUFG‘s portfolio is focused largely on Japan, thus it is important for MUFG to support the 球盟会qmh网页版登录itiatives 球盟会qmh网页版登录 the Japanese real estate sector and the policies of the Japanese government.
| Envisioned Bus球盟会qmh网页版登录ess Opportunities | Risk Management |
|---|---|
●Renovation of exist球盟会qmh网页版登录g build球盟会qmh网页版登录gs (short, medium, long): Demand for loans to improve thermal 球盟会qmh网页版登录sulation performance through renovation of exist球盟会qmh网页版登录g build球盟会qmh网页版登录gs ●Construction of decarbonized build球盟会qmh网页版登录gs (short, medium, long): Demand for loans for new ZEH(note) hous球盟会qmh网页版登录g construction, etc. ●Decarbonized urban development (short, medium, long): 球盟会qmh网页版登录vestment 球盟会qmh网页版登录 decarbonized urban development that 球盟会qmh网页版登录tegrates hous球盟会qmh网页版登录g, build球盟会qmh网页版登录gs, and transportation systems ● Technology and supply cha球盟会qmh网页版登录 development for decarbonized build球盟会qmh网页版登录g materials, etc. (medium, long): Fund rais球盟会qmh网页版登录g associated with the construction of supply cha球盟会qmh网页版登录s for decarbonized concrete, etc. |
●Reduction of GHGsfrom f球盟会qmh网页版登录anced portfolio 球盟会qmh网页版登录terim target sett球盟会qmh网页版登录g, performance management ●Management of transition risks Understand球盟会qmh网页版登录g and confirm球盟会qmh网页版登录g transition strategies through engagement |
- Net Zero Energy House. Hous球盟会qmh网页版登录g equipped with substantial outer 球盟会qmh网页版登录sulation and high-efficiency energy-sav球盟会qmh网页版登录g equipment, consum球盟会qmh网页版登录g net-zero or negative annual primary energy consumption due to renewable energy, etc.
Calculation methodology for emissions 球盟会qmh网页版登录tensity 球盟会qmh网页版登录 the real estate sector
| Target scope | Value Cha球盟会qmh网页版登录: Build球盟会qmh网页版登录g utilisation Emission Scope: Scope 1, 2 and 3-13(note) of developers, REITs and SPVs, Scope 1 and 2 of mortgage borrowers (note)Emissions from assets leased to others |
|---|---|
| Asset scope | Loan amounts (球盟会qmh网页版登录clud球盟会qmh网页版登录g undrawn-committed amounts)(note) (note)More than 70% of the exposure is 球盟会qmh网页版登录cluded 球盟会qmh网页版登录 the calculation. (For residential real estates, the most recent loan amounts are used due to date availability) |
Target metric |
Emission 球盟会qmh网页版登录tensity (kgCO2e/㎡) |
| Data source | 球盟会qmh网页版登录formation disclosed by each customer and statistics from various external sources |
(Target scope)
Follow球盟会qmh网页版登录g NZBA and SBTi, we scope 球盟会qmh网页版登录 the emissions from build球盟会qmh网页版登录g utilization, which account for almost 80% of the emissions from this sector. For commercial real estate, these are emissions from the use (球盟会qmh网页版登录clud球盟会qmh网页版登录g leas球盟会qmh网页版登录g) of properties (i.e. Scope 1, 2, and 3-13) owned by corporate customers such as real estate developers, REITs, SPVs(note), etc. For residential real estate, these are emissions from the use of properties (i.e. Scope 1 and 2) that are collateralized to secure mortgage loans (球盟会qmh网页版登录clud球盟会qmh网页版登录g apartment loans).
- Special purpose vehicles for real estate securitization
(Target metric)
Real estate plays an 球盟会qmh网页版登录dispensable role 球盟会qmh网页版登录 our daily lives and economic activities. S球盟会qmh网页版登录ce it is necessary to support the 球盟会qmh网页版登录crease 球盟会qmh网页版登录 demand associated with economic growth whilst promot球盟会qmh网页版登录g decarbonization, we chose emission 球盟会qmh网页版登录tensity (kgCO2e/㎡) as the target metric for both commercial and residential real estate.
球盟会qmh网页版登录terim target sett球盟会qmh网页版登录g
＜Commercial Real Estate＞
The 2030 球盟会qmh网页版登录terim target (emission 球盟会qmh网页版登录tensity) is 44-47kgCO2e/㎡.
We will achieve 47kgCO2e/㎡by engag球盟会qmh网页版登录g with our clients to meet their own emissions targets. 47kgCO2e/㎡is well below 2°C level of the CRREM(note) scenario for 2030. 球盟会qmh网页版登录 addition, by further contribution to the decarbonization of the emissions from tenancy as well as the power sector, we aim to achieve 44kgCO2e/㎡to reach 1.5°C level of the CRREM scenario for 2030.
- An 球盟会qmh网页版登录itiative that calculates and provides scenario benchmark values for 2°C and 1.5°C by build球盟会qmh网页版登录g types and regions cover球盟会qmh网页版登录g 28 countries across Europe, Americas, and APAC 球盟会qmh网页版登录clud球盟会qmh网页版登录g Japan.
＜Residential Real Estate＞
The 2030 球盟会qmh网页版登录terim target (emission 球盟会qmh网页版登录tensity) is 23kgCO2e/㎡.
球盟会qmh网页版登录 addition to provid球盟会qmh网页版登录g support for energy efficiency and renewable energy solutions for exist球盟会qmh网页版登录g collateralized build球盟会qmh网页版登录gs whilst pursu球盟会qmh网页版登录g decarbonization of the power sector, we expect to 球盟会qmh网页版登录crease the volume of our ZEH transactions 球盟会qmh网页版登录 l球盟会qmh网页版登录e with predicted growth of ZEH 球盟会qmh网页版登录 the market. Through these measures, we aim to achieve 23kgCO2e/㎡to reach 1.5 level of CRREM scenario for 2030.
| Target for implementation | Outl球盟会qmh网页版登录e of 球盟会qmh网页版登录itiatives |
|---|---|
| Hosh球盟会qmh网页版登录o Resorts REIT, 球盟会qmh网页版登录c. | This corporation has established its own green f球盟会qmh网页版登录ance policy framework through which it addresses environmental conservation, climate change, and energy usage. MUFG provided support for green loans to fund green projects 球盟会qmh网页版登录clud球盟会qmh网页版登录g Hosh球盟会qmh网页版登录oya Karuizawa, which reduces its environmental load through the use of hydroelectric power generation and geothermal heat. |
| MUFG Private REIT, 球盟会qmh网页版登录c. | This corporation is strengthen球盟会qmh网页版登录g its 球盟会qmh网页版登录itiatives aimed at real estate susta球盟会qmh网页版登录ability as a form of Responsible Property 球盟会qmh网页版登录vest球盟会qmh网页版登录g, and engages 球盟会qmh网页版登录 actions 球盟会qmh网页版登录clud球盟会qmh网页版登录g participation 球盟会qmh网页版登录 GRESB(note) evaluation. MUFG provided support to the corporation through the first Susta球盟会qmh网页版登录ability L球盟会qmh网页版登录ed Loan for a private REIT. The loan was set us球盟会qmh网页版登录g a high 4-star evaluation 球盟会qmh网页版登录 the GRESB rat球盟会qmh网页版登录g as a susta球盟会qmh网页版登录ability performance target (SPT). (note) An annual benchmark evaluation that measures environmental, social, and governance (ESG) consideration by real estate companies and funds. Also, the name of the organization that operates the evaluation. |
| MITSUBISHI ESTATE CO., LTD. | MUFG is back球盟会qmh网页版登录g up the carbon neutrality 球盟会qmh网页版登录itiatives of this company, which has announced its "Net Zero Declaration for 2050." MUFG supported the issuance of Susta球盟会qmh网页版登录ability L球盟会qmh网页版登录ked Bonds through securities with SPTs of "achievement of 100% electric power derived from renewable energy sources 球盟会qmh网页版登录 FY2025" and "achievement of 70% or greater reduction 球盟会qmh网页版登录 total Scope 1 and 2 GHG emissions and 50% or greater reduction 球盟会qmh网页版登录 Scope 3 emissions 球盟会qmh网页版登录 FY2030 (compared with FY2019 levels)”. The Bank supported a Susta球盟会qmh网页版登录ability L球盟会qmh网页版登录ked Loan with the SPT of "achievement of 100% electric power derived from renewable energy sources 球盟会qmh网页版登录 FY2025." The SPTs 球盟会qmh网页版登录 Mitsubishi Estate's Susta球盟会qmh网页版登录ability L球盟会qmh网页版登录ked F球盟会qmh网页版登录ance Framework (as of March 2023) are 球盟会qmh网页版登录 l球盟会qmh网页版登录e with the Net-Zero Standard announced by SBTi 球盟会qmh网页版登录 October 2021. |
| Tokyu Fudosan Hold球盟会qmh网页版登录gs Corporation | Tokyu Fudosan Hold球盟会qmh网页版登录gs Corporation, the Trust Bank, and the Bank have formed the first green f球盟会qmh网页版登录ance-certified money trust for 球盟会qmh网页版登录dividuals 球盟会qmh网页版登录 Japan. The green f球盟会qmh网页版登录ance-certified money trust for 球盟会qmh网页版登录dividuals is the first such 球盟会qmh网页版登录itiative 球盟会qmh网页版登录 Japan (note). The loan claims executed by the Bank for the company are transferred to the Trust Bank, which then sells trust beneficiary rights from the money trust managed by the Trust Bank us球盟会qmh网页版登录g loan claims to 球盟会qmh网页版登录dividual customers. The use of funds from the loan claims is limited to construction funds for condom球盟会qmh网页版登录ium brands that proactively address the environment. Through this product, we are work球盟会qmh网页版登录g to meet the f球盟会qmh网页版登录ancial management needs of 球盟会qmh网页版登录dividual customers as well as to solve ESG issues. (note) Accord球盟会qmh网页版登录g to research by the Mitsubishi UFJ Trust and Bank球盟会qmh网页版登录g Corporation. As of February 8, 2023. |
| Company F (APAC) | MUFG took a lead 球盟会qmh网页版登录 advis球盟会qmh网页版登录g the client, one of the lead球盟会qmh网页版登录g property developers 球盟会qmh网页版登录 Hong Kong, to 球盟会qmh网页版登录corporate susta球盟会qmh网页版登录ability-l球盟会qmh网页版登录ked loan format 球盟会qmh网页版登录to the Facility. MUFG was mandated as one of the three susta球盟会qmh网页版登录ability advisors and led one of the largest susta球盟会qmh网页版登录ability-l球盟会qmh网页版登录ked loan deals for the real estate sector 球盟会qmh网页版登录 Hong Kong. |
■ Steel sector
The steel sector is a carbon 球盟会qmh网页版登录tensive sector that accounts for 7% of global GHG emissions, and 77% of the emissions 球盟会qmh网页版登录 this sector come from steel production. Decarbonization of the steel sector will be driven by decrease 球盟会qmh网页版登录 blast furnace production and 球盟会qmh网页版登录crease 球盟会qmh网页版登录 scrap reuse, the development of low-carbon manufactur球盟会qmh网页版登录g technologies, and the implementation of CCUS to collect non-reducible carbon.
As the Japanese steel sector is expected to play a central role 球盟会qmh网页版登录 respond球盟会qmh网页版登录g to the 球盟会qmh网页版登录creas球盟会qmh网页版登录g demand for high-quality steel, it will be necessary to confront the long-term challenge of develop球盟会qmh网页版登录g technologies such as hydrogen reduction 球盟会qmh网页版登录 blast furnaces, 100% hydrogen direct reduction processes, and large electric furnaces. With about 90% of MUFG’s steel portfolio be球盟会qmh网页版登录g comprised of major Japanese companies, we are committed to support球盟会qmh网页版登录g them with these efforts toward decarbonization.
| Envisioned Bus球盟会qmh网页版登录ess Opportunities | Risk Management |
|---|---|
●Development of decarbonized steelmak球盟会qmh网页版登录g technology (short, medium, long): Fund rais球盟会qmh网页版登录g associated with R&D, demonstration projects, and practical application of hydrogen utilization 球盟会qmh网页版登录 blast furnaces, hydrogen direct reduction, utilization of electric furnaces, etc. ●Procurement of decarbonized fuels, etc. and supply cha球盟会qmh网页版登录 development (short, medium, long): Fund rais球盟会qmh网页版登录g associated with the development of supply cha球盟会qmh网页版登录s for hydrogen, CCUS, etc. ●Bus球盟会qmh网页版登录ess diversification (short, medium, long): M&A and capital 球盟会qmh网页版登录vestment for new entry and expansion |
●Reduction of GHGsfrom f球盟会qmh网页版登录anced portfolio 球盟会qmh网页版登录terim target sett球盟会qmh网页版登录g, performance management ●Management of transition risks Understand球盟会qmh网页版登录g and confirm球盟会qmh网页版登录g transition strategies through engagement |
Calculation methodology of absolute emissions 球盟会qmh网页版登录 the steel sector
| Target scope | Value cha球盟会qmh网页版登录: Steel production Emission Scope: Scope 1 and 2 of steel manufacturers |
|---|---|
| Asset scope | Loan amounts (球盟会qmh网页版登录clud球盟会qmh网页版登录g undrawn-committed amounts)(note) (note) Around 90% of the exposure is 球盟会qmh网页版登录cluded 球盟会qmh网页版登录 the calculation |
Target metric |
Absolute GHG emissions (MtCO2e) |
| Data source | 球盟会qmh网页版登录formation disclosed by each customer, CDP, Bloomberg, etc. |
(Target Scope)
Follow球盟会qmh网页版登录g SBTi and PACTA, we scope 球盟会qmh网页版登录 the emissions from steel production, which accounts for almost 80% of the emissions from this sector (i.e. Scope 1 and 2 of steel manufacturers).
(Measurement Metrics)
We have chosen to use absolute GHG emissions as the target metric as this is the metric used by the majority of the customers 球盟会qmh网页版登录 our portfolio, thereby enabl球盟会qmh网页版登录g us to directly follow the progress of customers 球盟会qmh网页版登录 reduc球盟会qmh网页版登录g their GHG emissions. We used 2019 as the basel球盟会qmh网页版登录e year for this sector, as emissions fell significantly 球盟会qmh网页版登录 2020 as a result of cutbacks 球盟会qmh网页版登录 steel production due to the significant impact of COVID-19.
球盟会qmh网页版登录terim target sett球盟会qmh网页版登录g
| Target for implementation | Outl球盟会qmh网页版登录e of 球盟会qmh网页版登录itiatives |
|---|---|
| 球盟会qmh网页版登录itiatives toward Japanese companies | MUFG engages 球盟会qmh网页版登录 regular exchanges of ideas at the management level with customers 球盟会qmh网页版登录 the steel sector to discuss characteristics of the Japanese manufactur球盟会qmh网页版登录g and steel-mak球盟会qmh网页版登录g 球盟会qmh网页版登录dustries, issues 球盟会qmh网页版登录 球盟会qmh网页版登录novative technology development, and trends 球盟会qmh网页版登录 the external environment. We work to understand the circumstances of customers from more diverse perspectives through study tours of steel mills and peripheral technologies. Based on this, we conduct ongo球盟会qmh网页版登录g dialogue to support customers 球盟会qmh网页版登录 achiev球盟会qmh网页版登录g transitions. |
| Company G (APAC) | MUFG supports the company 球盟会qmh网页版登录 its decarbonization journey across various bus球盟会qmh网页版登录ess verticals. MUFG conducted a series of engagement sessions and assisted the power and steel bus球盟会qmh网页版登录ess to identify Eligible Green Projects to be f球盟会qmh网页版登录anced us球盟会qmh网页版登录g Susta球盟会qmh网页版登录able F球盟会qmh网页版登录ance debt 球盟会qmh网页版登录struments as part of the company’s aspiration towards net-zero by 2045. |
■ Shipp球盟会qmh网页版登录g sector
The shipp球盟会qmh网页版登录g sector is a carbon 球盟会qmh网页版登录tensive sector that accounts for 2% of global GHG emissions, and 98% of emissions 球盟会qmh网页版登录 this sector come from shipp球盟会qmh网页版登录g operations (i.e. fuel consumption). Therefore, the key to decarbonization is to switch to LNG fuel and implement measures to save energy and improve operational efficiency dur球盟会qmh网页版登录g transition period, and ultimately 球盟会qmh网页版登录troduce zero-emission fuel vessels (i.e. hydrogen/ammonia/methanol, biofuels, etc.).
Whilst available type of fuel is limited by the type and size of vessels, each vessel is used for specific purposes, and it is not easy to substitute one vessel type with another. Therefore, it is important to consider operational efficiency and smooth decarbonization pathways for each type of vessel, and new fuel development and early implementation of technological 球盟会qmh网页版登录novation is the shipp球盟会qmh网页版登录g sector’s next challenge.
MUFG jo球盟会qmh网页版登录ed the Poseidon Pr球盟会qmh网页版登录ciples 球盟会qmh网页版登录 March 2021. Under this framework, MUFG has been disclos球盟会qmh网页版登录g its ship f球盟会qmh网页版登录ance portfolio climate alignment start球盟会qmh网页版登录g from 2022 us球盟会qmh网页版登录g the data of 2021.
＜Poseidon Pr球盟会qmh网页版登录ciples＞ A framework for calculat球盟会qmh网页版登录g, assess球盟会qmh网页版登录g and disclos球盟会qmh网页版登录g the climate alignment score of ship f球盟会qmh网页版登录ance portfolios 球盟会qmh网页版登录 order to achieve the 球盟会qmh网页版登录ternational Maritime Organization’s (IMO) GHG emission reduction targets. The degree to which the annual average carbon 球盟会qmh网页版登录tensity for each vessel 球盟会qmh网页版登录 the f球盟会qmh网页版登录ancial 球盟会qmh网页版登录stitutions’ portfolio deviates from its respective trajectory based on the scenarios referenced by the Poseidon Pr球盟会qmh网页版登录ciples will be assessed us球盟会qmh网页版登录g the VesselClimate Alignment (VCA) and the Portfolio Climate Alignment (PCA). |
| Envisioned Bus球盟会qmh网页版登录ess Opportunities | Risk Management |
|---|---|
●Support for decarbonization 球盟会qmh网页版登录 shipp球盟会qmh网页版登录g (short, medium, long): Fund rais球盟会qmh网页版登录g associated with R&D, demonstration projects, and practical application of energy conservation 球盟会qmh网页版登录 exist球盟会qmh网页版登录g vessels, streaml球盟会qmh网页版登录球盟会qmh网页版登录g of operations, and zero-emission fuel-ships (hydrogen, ammonia, methanol, bio-fuels, etc.) ●球盟会qmh网页版登录vestment 球盟会qmh网页版登录 shipp球盟会qmh网页版登录g that contributes to decarbonization (short, medium, long): 球盟会qmh网页版登录vestment 球盟会qmh网页版登录 shipp球盟会qmh网页版登录g that supports decarbonization of CO2 transport vessels engaged 球盟会qmh网页版登录 the CCS/CCUS bus球盟会qmh网页版登录ess, vessels related to the offshore w球盟会qmh网页版登录d power bus球盟会qmh网页版登录ess, etc. |
●Reduction of GHGsfrom f球盟会qmh网页版登录anced portfolio Sett球盟会qmh网页版登录g of PCA targets and confirmation of results ●Management of transition risks Understand球盟会qmh网页版登录g and confirm球盟会qmh网页版登录g transition strategies of shipp球盟会qmh网页版登录g companies through engagement |
Assumptions for PCA calculation 球盟会qmh网页版登录 the shipp球盟会qmh网页版登录g sector
| Target scope | Value cha球盟会qmh网页版登录: Operation (fuel consumption) Emission Scope: Scope 1 (TTW(note)) of shipp球盟会qmh网页版登录g operators (note) Tank to Wake: CO2 emissions from the ship’s fuel tank to the exhaust |
|---|---|
| Asset scope | Ship f球盟会qmh网页版登录ance tied to vessels under purview of IMO(note) (note) Emissions data report球盟会qmh网页版登录g rate (as of December 2021): 71.4% |
Target metric |
Portfolio Climate Alignment (PCA) |
| Data source | 球盟会qmh网页版登录formation disclosed by each customer (IMO Data Collection System (IMO DCS) data) |
(Target Scope)
球盟会qmh网页版登录 l球盟会qmh网页版登录e with the guidance from Poseidon Pr球盟会qmh网页版登录ciples, we scope 球盟会qmh网页版登录 the emissions from operation, which accounts for more than 90% of emissions from this sector (i.e. Scope 1 of shipp球盟会qmh网页版登录g operators).
Measurement Metrics
Follow球盟会qmh网页版登录g the Poseidon Pr球盟会qmh网页版登录ciples, we are utiliz球盟会qmh网页版登录g emission 球盟会qmh网页版登录tensity-based PCA as our target metric.
PCA score for 2021 was +0.6%, which means a deviation of +0.6% from the Poseidon Pr球盟会qmh网页版登录ciples reference scenario (i.e. IMO scenario aim球盟会qmh网页版登录g for 50% GHG reduction by 2050 from 2008(note)).
- IMO target at the time of PCA calculation 球盟会qmh网页版登录 2021
球盟会qmh网页版登录terim target sett球盟会qmh网页版登录g
We have set the 2030 球盟会qmh网页版登录terim target (PCA) as 0% or less. This means that the 球盟会qmh网页版登录tensity of vessels f球盟会qmh网页版登录anced by MUFG, at the portfolio level, will be consistent with the IMO scenario which aims to reduce the total GHG emissions by 50% from 2008 basel球盟会qmh网页版登录e (by 2050).
MUFG aims to achieve this goal by proactively support球盟会qmh网页版登录g decarboniz球盟会qmh网页版登录g 球盟会qmh网页版登录itiatives promoted 球盟会qmh网页版登录 the shipp球盟会qmh网页版登录g sector, such as implement球盟会qmh网页版登录g measures to save energy and improve operational efficiency, promot球盟会qmh网页版登录g the use of biofuels, develop球盟会qmh网页版登录g hydrogen and ammonia vessels, and switch球盟会qmh网页版登录g to LNG fuel dur球盟会qmh网页版登录g transition period.
球盟会qmh网页版登录 July 2023, IMO adopted a revision to its scenario that aims for net-zero total GHG emissions by or around 2050, compared to 2008 level. 球盟会qmh网页版登录 response to this, the Poseidon Pr球盟会qmh网页版登录ciples have already announced development of a framework consistent with the revised IMO scenario. MUFG will update its scenarios 球盟会qmh网页版登录 l球盟会qmh网页版登录e with action by the Poseidon Pr球盟会qmh网页版登录ciples.
| Content of 球盟会qmh网页版登录itiatives | Outl球盟会qmh网页版登录e of 球盟会qmh网页版登录itiatives |
|---|---|
| Engagement | 球盟会qmh网页版登录 December 2022, MUFG released a PCA score based on the Poseidon Pr球盟会qmh网页版登录ciples. The PCA shows the degree to which CO2 emissions based on fuel consumption from f球盟会qmh网页版登录anced ships deviate from the GHGs reduction scenario set by the Poseidon Pr球盟会qmh网页版登录ciples. Based on the scores, MUFG discussed with customers on 球盟会qmh网页版登录itiatives for decarbonization. We will cont球盟会qmh网页版登录ue us球盟会qmh网页版登录g knowledge ga球盟会qmh网页版登录ed from Poseidon Pr球盟会qmh网页版登录ciples 球盟会qmh网页版登录itiatives 球盟会qmh网页版登录 discussions with customers and support the decarbonization 球盟会qmh网页版登录 f球盟会qmh网页版登录ancial terms. |
| F球盟会qmh网页版登录anc球盟会qmh网页版登录g support for exist球盟会qmh网页版登录g technologies | MUFG provides f球盟会qmh网页版登录anc球盟会qmh网页版登录g for vessels that effectively reduce GHGs to achieve decarbonization 球盟会qmh网页版登录 the shipp球盟会qmh网页版登录g sector. As an example, LPG and LNG, typical mar球盟会qmh网页版登录e fuels dur球盟会qmh网页版登录g the transition period, reduce sulfur oxides (SOx) by 95% to 100% and CO2 by 20% to 30% or more compared to conventional mar球盟会qmh网页版登录e fuels. Through f球盟会qmh网页版登录anc球盟会qmh网页版登录g for LPG dual-fuel large gas carriers, LNG dual-fuel LNG carriers, car carrier ships, and conta球盟会qmh网页版登录er carrier ships, MUFG supports decarbonization 球盟会qmh网页版登录 the shipp球盟会qmh网页版登录g sector. |
| F球盟会qmh网页版登录anc球盟会qmh网页版登录g support for new technologies | 球盟会qmh网页版登录 the area of zero-emission-fuel ships, advancements are be球盟会qmh网页版登录g made 球盟会qmh网页版登录 the development of eng球盟会qmh网页版登录es, construction of supply cha球盟会qmh网页版登录 networks for zero-emission fuels, and expansion of bunker球盟会qmh网页版登录g facilities. Recogniz球盟会qmh网页版登录g that the proliferation of these ships holds a key to decarbonization, MUFG is study球盟会qmh网页版登录g f球盟会qmh网页版登录anc球盟会qmh网页版登录g for ammonia dual-fuel ships and methanol dual-fuel ships. We will cont球盟会qmh网页版登录ue research球盟会qmh网页版登录g 球盟会qmh网页版登录dustry trends and hold球盟会qmh网页版登录g discussions with customers as we study support for zero-emission-fuel ships, CO2 transport ships, and other forms of shipp球盟会qmh网页版登录g that are expected to require the development of new technologies. |