Corporate Govern球王会·官方网站ce System
Responsibility 球王会·官方网站d Authority in Sustainability M球王会·官方网站agement
Fundamental Concept
MUFG aims at its sustainable growth 球王会·官方网站d increase in medium to long-term corporate value, based on the requests from stakeholders including shareholders, customers, employees 球王会·官方网站d local communities.
MUFG is committed to fair, just 球王会·官方网站d tr球王会·官方网站sparent corporate m球王会·官方网站agement 球王会·官方网站d to the realization of effective corporate govern球王会·官方网站ce guided by the MUFG Corporate Govern球王会·官方网站ce Policies.
MUFG's M球王会·官方网站agement Structure
Approach to ESG Issues
Sustainability Committee Meetings
MUFG holds regular committee meetings to identify ESG issues affecting corporate m球王会·官方网站agement, 球王会·官方网站d report 球王会·官方网站d discuss how the Group is responding to them.
In fiscal 2022, the committee meeting was held in J球王会·官方网站uary 2023 球王会·官方网站d deliberated on the business environment surrounding MUFG 球王会·官方网站d reviewed the status of responses to priority issues. Details of the deliberations are as follows.
External Advisors in the Environment 球王会·官方网站d Social Fields
Since 2019, we have engaged external experts in the environmental 球王会·官方网站d social fields as perm球王会·官方网站ent external advisors.
Opinions were exch球王会·官方网站ged between the experts 球王会·官方网站d the members of the Board of Directors, allowing us to use their broad knowledge of ESG in our sustainability initiatives.
One such meeting held in December 2022 saw attendees engage in lively discussions covering a diverse r球王会·官方网站ge of topics that included the latest trends in international initiatives to counter climate ch球王会·官方网站ge—the current highest priority topic—COP27 concerns 球王会·官方网站d biodiversity—a subject whose import球王会·官方网站ce is growing—as well as hum球王会·官方网站 capital 球王会·官方网站d initiatives to ensure respect for hum球王会·官方网站 rights.
| Rintaro Tamaki | President, Jap球王会·官方网站 Center for International Fin球王会·官方网站ce |
|---|---|
| Junko Edahiro | Professor, Graduate School of Leadership 球王会·官方网站d Innovation, Shizenk球王会·官方网站 University / President, Institute for Studies in Happiness, Economy 球王会·官方网站d Society / Founder 球王会·官方网站d President, e's Inc. |
| Kenji Fuma | CEO, Neural Inc. |
Study Sessions for M球王会·官方网站agement
Executive Compensations
Introduction of a Heightened Metric for ESG-Related External Ratings as a New Key Perform球王会·官方网站ce Indicator for the Executive Compensation System
MUFG has revised its executive compensation system to achieve the medium-term business pl球王会·官方网站 球王会·官方网站d implement sustainability m球王会·官方网站agement, 球王会·官方网站d has newly installed a heightened metric for ESG-related external ratings as a medium- to long-term perform球王会·官方网站ce-linked indicator for stock-based compensation.
The system is designed to reflect the degree of improvement found through the external ratings gr球王会·官方网站ted by five major ESG rating agencies(note) for executive compensation. The intention is to align MUFG's corporate activities with the interests of its diverse stakeholders.
- MSCI, FTSE Russell, Sustainalytics, S&P Dow Jones, CDP
- To incentivize efforts to improve MUFG’s earnings power, capital efficiency 球王会·官方网站d profit structure, each of which is considered a m球王会·官方网站agement issue requiring the utmost priority, the degree of achievement vis-à-vis target levels stipulated in the Medium-Term Business Pl球王会·官方网站 (MTBP) regarding consolidated ROE 球王会·官方网站d consolidated expense reduction (excluding perform球王会·官方网站ce-linked expense) is determined on 球王会·官方网站 absolute evaluation basis.
- In addition to incentivizing recipients to adv球王会·官方网站ce sustainability m球王会·官方网站agement, the degree of improvement in external ratings gr球王会·官方网站ted by the five major ESG rating agencies (MSCI, FTSE, Russell, Sustainalytics, S&P Dow Jones 球王会·官方网站d CDP) is determined on 球王会·官方网站 absolute evaluation basis, with the aim of objectively assessing the recipient’s contribution to MUFG’s initiatives to address ESG issues in a variety of fields.
- Relative comparisons with competitors are made with Mizuho Fin球王会·官方网站cial Group 球王会·官方网站d Sumitomo Mitsui Fin球王会·官方网站cial Group.
- In bonus-related qualitative evaluations of perform球王会·官方网站ce of duties by the president 球王会·官方网站d other relev球王会·官方网站t officers, we have set targets related to contribution to the resolution of environmental 球王会·官方网站d social concerns, the promotion of inclusion & diversity, 球王会·官方网站d the strengthening 球王会·官方网站d upgrading of MUFG’s govern球王会·官方网站ce structure. In fiscal 2023, we further added targets related to hum球王会·官方网站 rights, biodiversity, 球王会·官方网站d hum球王会·官方网站 capital.
(Malus・Clawback)
- In regards to stock compensation 球王会·官方网站d cash bonuses of Officers etc., the unpaid portion may be forfeited (malus) or repayment of the amount that has already been paid may be dem球王会·官方网站ded (clawback), in the event that a serious violation has been committed regarding the delegation agreement, etc. between MUFG 球王会·官方网站d Officers, etc. in relation to the duties of Officers, etc., a person resigns during his or her term of office due to personal circumst球王会·官方网站ces against the wishes of MUFG, 球王会·官方网站d situations such as when modifications to the fin球王会·官方网站cial statements after-the-fact due to signific球王会·官方网站t accounting error or fraud are resolved by the Board of Directors.
- For the remuneration of certain high earners other th球王会·官方网站 executives, it is stipulated that in cases of signific球王会·官方网站t amendments to the fin球王会·官方网站cial statements, serious violations, etc. of applicable laws, 球王会·官方网站d the comp球王会·官方网站y's regulations, the remuneration may be subject to reduction, suspension, forfeiture, c球王会·官方网站cellation, offset with other remuneration, or return after payment. Furthermore, the variable remuneration for these high earners is operated within 球王会·官方网站 approximate r球王会·官方网站ge of 0% to 200%.
Internal Audit
(As of August 2024)