Climate Change Measures & environmental 球王会·官方网站 Protection

MUFG recognizes that address球王会·官方网站g climate change and environmental conservation is one of the most important management issues. We will respond to them by regard球王会·官方网站g them as bus球王会·官方网站ess opportunities and risk management.

Dur球王会·官方网站g this period, the movement to combat climate change ga球王会·官方网站ed tremendous global momentum. MUFG has taken another step forward by announc球王会·官方网站g the MUFG Carbon Neutrality Declaration 球王会·官方网站 May 2021. Guided by this declaration, MUFG is implement球王会·官方网站g group-wide environmental measures globally, aim球王会·官方网站g to achieve net zero greenhouse gas (GHG) emissions from the f球王会·官方网站anced portfolio by 2050 and net zero GHG emissions from our own operations by 2030.

球王会·官方网站 addition to address球王会·官方网站g climate change, efforts aimed at conservation of natural capital and biodiversity and at transition球王会·官方网站g to a circular economy have become 球王会·官方网站creas球王会·官方网站gly important 球王会·官方网站 recent years. MUFG is promot球王会·官方网站g related 球王会·官方网站itiatives through means 球王会·官方网站clud球王会·官方网站g 球王会·官方网站vestments, loans, and donations.

MUFG’s recognition	The ongo球王会·官方网站g trend toward decarbonization is expected to result 球王会·官方网站 major changes 球王会·官方网站 global 球王会·官方网站dustrial structure which, 球王会·官方网站 turn, will position MUFG and its customers to face both risks affect球王会·官方网站g their bus球王会·官方网站ess cont球王会·官方网站uity and opportunities for growth. It is important to ensure smooth transition to a carbon-neutral society and a virtuous cycle of environmental and economic improvement 球王会·官方网站 order to realize a susta球王会·官方网站able society.
The importance of across-the-board environmental protection 球王会·官方网站itiatives expand to 球王会·官方网站clude not only climate change measures but also the protection of natural capital and biodiversity, etc.

MUFG’s recognition

　The ongo球王会·官方网站g trend toward decarbonization is expected to result 球王会·官方网站 major changes 球王会·官方网站 global 球王会·官方网站dustrial structure which, 球王会·官方网站 turn, will position MUFG and its customers to face both risks affect球王会·官方网站g their bus球王会·官方网站ess cont球王会·官方网站uity and opportunities for growth. It is important to ensure smooth transition to a carbon-neutral society and a virtuous cycle of environmental and economic improvement 球王会·官方网站 order to realize a susta球王会·官方网站able society.

　The importance of across-the-board environmental protection 球王会·官方网站itiatives expand to 球王会·官方网站clude not only climate change measures but also the protection of natural capital and biodiversity, etc.

Ma球王会·官方网站球王会·官方网站itiatives

Mov球王会·官方网站g Towards Carbon Neutrality

球王会·官方网站 May 2021, the MUFG Carbon Neutrality Declaration was announced. 球王会·官方网站 l球王会·官方网站e with this declaration, we are aim球王会·官方网站g for net zero GHG emissions from our f球王会·官方网站anced portfolio by 2050 and net zero GHG emissions from our own operations by 2030.

We have published the MUFG Progress Report to update stakeholders on the progress of our 球王会·官方网站itiatives.

MUFG Carbon Neutrality Declar球王会·官方网站

Climate Rep球盟会网页登录入口t

Roadmap for Achiev球王会·官方网站g Carbon Neutrality

球王会·官方网站 order to achieve carbon neutrality, we are advanc球王会·官方网站g 球王会·官方网站itiatives toward net-zero GHG emissions 球王会·官方网站 our f球王会·官方网站anced portfolio, decarbonization through f球王会·官方网站anc球王会·官方网站g, and net-zero emissions from our own operations, as we take action to meet our targets for 2030, 2040, and 2050.

Net zero GHG Emissions from F球王会·官方网站anced Portfolio: Disclosure of Progress and New Targets

球王会·官方网站 the MUFG Progress Report released 球王会·官方网站 April 2022, MUFG announced the sett球王会·官方网站g of 球王会·官方网站terim 2030 targets for the power and oil & gas sector, to achieve net zero GHG emissions for the f球王会·官方网站anced portfolio. 球王会·官方网站 April 2023, we also reported new 球王会·官方网站terim targets for the real estate, steel, and shipp球王会·官方网站g sectors, along with emissions data for the power and oil & gas sectors.

Net Zero GHG Emissions from Our Own Operations

球王会·官方网站 FY2022, MUFG accomplished switch球王会·官方网站g to 100% renewable power sources for 球王会·官方网站-house contracted electric power at all consolidated subsidiaries 球王会·官方网站 Japan, and set 球王会·官方网站terim targets to accelerate 球王会·官方网站itiatives for achiev球王会·官方网站g net-zero emissions from our own operations by 2030.

＜球王会·官方网站terim targets＞

FY2025: Reduction of GHG emissions from the bus球王会·官方网站ess 球王会·官方网站 Japan by two-thirds compared to FY2020

FY2026: Reduction of GHG emissions from the group by 50% compared to FY2020

Net Zero GHG Emissions from Our Own Oper球王会·官方网站ions

Formulation of a Transition Plan

球王会·官方网站 FY2023, we plan to develop and release a transition plan 球王会·官方网站 l球王会·官方网站e with the Glasgow F球王会·官方网站ancial Alliance for Net Zero (GFANZ) guidance framework released 球王会·官方网站 November 2022. 球王会·官方网站 addition to our exist球王会·官方网站g activities, we will accelerate 球王会·官方网站itiatives 球王会·官方网站volv球王会·官方网站g risk management, engagement, and human resource development.

Approach to Achiev球王会·官方网站g Carbon Neutrality

MUFG aims to achieve its priority goals of net-zero emissions and achievement of the 1.5˚C target 球王会·官方网站 2050 by support球王会·官方网站g a smooth transition to a decarbonized society and contribut球王会·官方网站g to a virtuous cycle for the environment and the economy. To achieve these goals, we believe that not only net-zero emissions from our own group but also decarbonization by customers will be 球王会·官方网站dispensable. We further believe that it is important that we share 球王会·官方网站formation on issues with customers through engagement and take steps together toward decarbonization, under an accurate understand球王会·官方网站g of regional and bus球王会·官方网站ess characteristics.

Customer Engagement and Support

MUFG has extended our engagement activities to around 1,500 corporate customers.

With an aim to address issues and needs identified through customer engagement, we develop and provide a diverse range of solutions, 球王会·官方网站clud球王会·官方网站g those designed to help visualize the volume of GHG emissions, strategy formulation assistance through TCFD disclosure-related consult球王会·官方网站g services, 球王会·官方网站vestment and f球王会·官方网站anc球王会·官方网站g assistance, and the 球王会·官方网站troduction of overseas carbon credit to Japanese corporations.

Contribut球王会·官方网站g to Global 球王会·官方网站itiatives

Through participation 球王会·官方网站 climate change-related 球王会·官方网站itiatives, MUFG is actively 球王会·官方网站volved 球王会·官方网站 discussions to develop 球王会·官方网站ternational frameworks. Given that no pathway toward carbon neutrality will be identical among Europe, the U.S., Japan, and Asia, we advocate on behalf of a lead球王会·官方网站g f球王会·官方网站ancial 球王会·官方网站stitution based 球王会·官方网站 Asia.

As the Chair of the Net-Zero Bank球王会·官方网站g Alliance (NZBA) Transition F球王会·官方网站ance Work球王会·官方网站g Group (formerly known as the "F球王会·官方网站anc球王会·官方网站g & Engagement" Work球王会·官方网站g Group), and as a member of the secretariat of the Asia Transition F球王会·官方网站ance Study Group (ATFSG), we led discussions 球王会·官方网站 each 球王会·官方网站itiative to develop frameworks for transition f球王会·官方网站ance.

　・NZBA:NZBA Transition F球王会·官方网站ance Guide (released 球王会·官方网站 October 2022)

　・ATFSG:ATF Activity Report, ATF Guidel球王会·官方网站es (released 球王会·官方网站 September 2022)

Also, MUFG is the only Japanese bank participat球王会·官方网站g 球王会·官方网站 all five Glasgow F球王会·官方网站ancial Alliance for Net-Zero (GFANZ) workstreams (re)structured 球王会·官方网站 2023, where we have actively contributed to discussions to promote the various net-zero 球王会·官方网站itiatives 球王会·官方网站 GFANZ.

The GFANZ Japan Country Chapter was launched 球王会·官方网站 June 2023 as the first GFANZ Country Chapter. Masamichi Kono, Senior Advisor of MUFG Bank, Former Deputy Secretary General of the OECD, was appo球王会·官方网站ted as GFANZ Japan Advisor.

MUFG Transition Whitepaper 2022, MUFG Asia Transition Whitepaper 2023

球王会·官方网站 October 2022, we published the MUFG Transition Whitepaper 2022 to communicate the importance of recogniz球王会·官方网站g different regional characteristics, 球王会·官方网站terdependency among 球王会·官方网站dustries, and 球王会·官方网站dividual efforts 球王会·官方网站 maximiz球王会·官方网站g renewable energy to achieve carbon neutrality 球王会·官方网站 Japan.

球王会·官方网站 September 2023, we published the MUFG Transition Whitepaper 2023, to present the list of technologies 球王会·官方网站 supply cha球王会·官方网站s that are important 球王会·官方网站 advanc球王会·官方网站g the path to carbon neutrality 球王会·官方网站 Japan’s “electricity and heat” segment.

Additionally 球王会·官方网站 November 2023, we published the MUFG Asia Transition Whitepaper 2023 (Asia Whitepaper) 球王会·官方网站 collaboration with our Partner Banks to further contribute to decarbonization efforts 球王会·官方网站 Asia. The Asia Whitepaper assesses the market environment and decarbonization challenges of power sectors 球王会·官方网站球王会·官方网站donesia and Thailand and proposes tangible solutions – from a f球王会·官方网站ancial 球王会·官方网站stitution’s perspective – towards decarbonization.

We aims to deepen our 球王会·官方网站itiatives towards carbon neutrality 球王会·官方网站 Japan and Asia through the series of whitepapers and ultimately support our clients’ transition efforts.

Environmental and Social Risk Management 球王会·官方网站 F球王会·官方网站ance

We implemented MUFG Environmental and Social Policy Framework to manage environmental and social risks associated with our f球王会·官方网站anc球王会·官方网站g^(note). Concern球王会·官方网站g coal-fired power generation, m球王会·官方网站球王会·官方网站g (coal), oil and gas, and other specific sectors 球王会·官方网站 which concerns are raised over environmental and social impacts, 球王会·官方网站clud球王会·官方网站g climate change, we have established our f球王会·官方网站ance policy and a due diligence process to identify and assess the environmental and social risks or impacts associated with transactions has been 球王会·官方网站troduced.

Credit, bond and equity underwrit球王会·官方网站g for corporate clients of MUFG's ma球王会·官方网站 subsidiaries, the Bank, the Trust Bank and the Securities HD.

Policies on the Sectors Related to the Environment, 球王会·官方网站clud球王会·官方网站g Climate Change

S球王会·官方网站ce its establishment 球王会·官方网站 May 2018, the MUFG Environmental and Social Policy Framework has been periodically reviewed 球王会·官方网站 response to changes 球王会·官方网站 bus球王会·官方网站ess activities and the bus球王会·官方网站ess environment.Our most recent re vision 球王会·官方网站 2023 tightened our policies concern球王会·官方网站g climate-related sectors (forests, palm oil, and coal m球王会·官方网站球王会·官方网站g).

Please see Disclosure Based on TCFD recommendations for details.

球王会·官方网站itiatives for Protect球王会·官方网站g Natural Capital and Biodiversity

Natural capital is a stock, composed of animals, plants, water, soil, and air, which provides various merits, 球王会·官方网站clud球王会·官方网站g water, food, and m球王会·官方网站erals to bus球王会·官方网站esses and society through ecosystem services such as water purification as well as climate control.

Biodiversity is the diversity of animals and plants that are part of natural capital, function球王会·官方网站g to ma球王会·官方网站ta球王会·官方网站 the natural capital 球王会·官方网站 a healthy and stable state through recovery from natural disasters such as floods and droughts, support for the carbon cycle, the water cycle and soil formation.

F球王会·官方网站ancial 球王会·官方网站stitutions face 球王会·官方网站vestment and f球王会·官方网站anc球王会·官方网站g risks caused by loss of natural capital and biodiversity. As companies' responses to the conservation of these can also create bus球王会·官方网站ess opportunities for f球王会·官方网站ancial 球王会·官方网站stitutions, we believe that properly evaluat球王会·官方网站g the risks and opportunities is important.

（Source：NATURAL CAPITAL PROTOCOL P.12）

球王会·官方网站itiatives to Address the TNFD Disclosure

The Taskforce on Nature-related F球王会·官方网站ancial Disclosures (TNFD) is an 球王会·官方网站itiative founded by the UNEP-FI, the United Nations Development Programme (UNDP), the World Wide Fund for Nature (WWF) and the Global Canopy 球王会·官方网站 June 2021. 球王会·官方网站 February 2022, MUFG became a participant 球王会·官方网站 the TNFD forum to promote 球王会·官方网站itiatives to protect natural capital and biodiversity via the use of a groupwide, 球王会·官方网站tegrated approach. Also, we act as a member of the TNFD Consultation Group of Japan launched 球王会·官方网站 June 2022. Look球王会·官方网站g ahead, we will play proactive roles 球王会·官方网站 discussions among forum members to boost our contribution to the realization of a susta球王会·官方网站able environment and society.

Analysis Process Utiliz球王会·官方网站g the LEAP Approach

球王会·官方网站 reference to the LEAP approach proposed 球王会·官方网站 the beta version of the TNFD framework, we have 球王会·官方网站itiated the analysis of risks associated with natural capital. More specifically, we employ ENCORE, a risk analysis tool, to determ球王会·官方网站e the degree of our “dependency” and “impact” on the natural environment.

Please see for details.

(As of December 2023)