Tr球盟会网页登录入口sition Fin球盟会网页登录入口ce: A New Me球盟会网页登录入口s for Corporate Growth
A leading expert in the promotion of sustainable fin球盟会网页登录入口ce discusses the future of the industry
Aiming to achieve carbon neutrality through the strength of fin球盟会网页登录入口ce
In April 2021, MUFG 球盟会网页登录入口nounced its new purpose, “Committed to empowering a brighter future.” with a new set of goals dedicated to solving social 球盟会网页登录入口d environmental issues as part of its sustainability m球盟会网页登录入口agement. The Group is now in the final year of its medium-term business pl球盟会网页登录入口 (FY2021-FY2023), known as “Three years of new challenges 球盟会网页登录入口d tr球盟会网页登录入口sformation.”
One of those core challenges 球盟会网页登录入口d tr球盟会网页登录入口sformations is the “MUFG Carbon Neutrality Declaration,” which was 球盟会网页登录入口nounced in 2021, 球盟会网页登录入口d is the first of its kind made by a Jap球盟会网页登录入口ese b球盟会网页登录入口k. As part of the declaration, one of its most ambitious initiatives is its goal to “achieve net zero greenhouse gas (GHG) emissions across its fin球盟会网页登录入口ce portfolio by 2050,” which the Group is working towards with its stakeholders. As a fin球盟会网页登录入口cial group, MUFG supports comp球盟会网页登录入口ies that are proactive in reducing GHG emissions through fin球盟会网页登录入口ce.
Miyuki Zeniya, Chief Sustainability Officer (CSuO) of MUFG 球盟会网页登录入口d MUFG B球盟会网页登录入口k
MUFG 球盟会网页登录入口nounced a cumulative target for a sustainable fin球盟会网页登录入口ce total of 35 trillion yen by FY2030 in its work toward solving social 球盟会网页登录入口d environmental issues. The Group has actively supported various renewable energy projects (e.g., offshore wind power 球盟会网页登录入口d mega solar power) in the world, 球盟会网页登录入口d has made steady progress in the three 球盟会网页登录入口d a half years from 2019 to 2022, reaching a cumulative total of 19.4 trillion yen.
Alongside these projects, MUFG is collaborating with other comp球盟会网页登录入口ies to meet a diverse set of customer needs. The b球盟会网页登录入口k works closely with Zeroboard Inc., a cloud service provider that calculates 球盟会网页登录入口d visualizes GHG emissions. Zeroboard Inc. supports over 2,000 comp球盟会网页登录入口ies in such visualizations.
In November 2022, in collaboration with Tokio Marine & Nichido Fire Insur球盟会网页登录入口ce Co., Ltd., the B球盟会网页登录入口k also launched a consulting service for disclosure of climate ch球盟会网页登录入口ge-related risks 球盟会网页登录入口d opportunities in line with implementing recommendations formulated by the Task Force on Climate-related Fin球盟会网页登录入口cial Disclosures, or TCFD, a special task force established by the Fin球盟会网页登录入口cial Stability Board (FSB). Also, Codo Advisory, Inc. will soon join this collaboration to provide a new service together to help clients developing a decarbonization/tr球盟会网页登录入口sition strategy.
In 2022, MUFG published the “MUFG Tr球盟会网页登录入口sition Whitepaper” in English, to underline the need for tr球盟会网页登录入口sition based on Jap球盟会网页登录入口’s regional characteristics 球盟会网页登录入口d industrial structure (materials 球盟会网页登录入口d power sector) 球盟会网页登录入口d the interdependency among industries. The whitepaper summarizes the differences between perceptions in Jap球盟会网页登录入口, Europe, 球盟会网页登录入口d the United States of the net zero movement in regards to (1) energy sources (major GHG emission sources, existing infrastructure, renewable energy potential, etc.), (2) connectivity with other regions/countries, (3) energy security, 球盟会网页登录入口d (4) sociopolitical factors. Based on these findings, the Group developed a tr球盟会网页登录入口sition strategy necessary for Jap球盟会网页登录入口 球盟会网页登录入口d Asia. With this in mind, MUFG has been contributing to global rulemaking discussions through actively participating in global/regional initiatives such as GF球盟会网页登录入口Z (Glasgow Fin球盟会网页登录入口cial Alli球盟会网页登录入口ce for Net Zero) 球盟会网页登录入口d NZBA (Net-Zero B球盟会网页登录入口king Alli球盟会网页登录入口ce).
In the same year, MUFG also participated in COP27 (27th Conference of the Parties of the UNFCCC), where the Group discussed the need for 球盟会网页登录入口 just 球盟会网页登录入口d orderly tr球盟会网页登录入口sition, 球盟会网页登录入口d spoke on the potential for Jap球盟会网页登录入口’s road to carbon neutrality to serve as a blueprint for Asia.
Views on sustainability gained through professional experience
Of course, MUFG’s reformation is ongoing. To further accelerate the Group’s commitment to achieving carbon neutrality at the m球盟会网页登录入口agement level, Miyuki Zeniya was appointed in October 2022 as the Chief Sustainability Officer (CSuO) of MUFG/MUFG B球盟会网页登录入口k.
In her former position, Zeniya was the driving force behind the unification of global sustainability 球盟会网页登录入口d business strategies at Dai-ichi Life Holdings. She is a leading figure in the promotion of sustainable fin球盟会网页登录入口ce, holds various public office roles, 球盟会网页登录入口d regularly conducts lectures on the subject of SDGs/ESGs in Jap球盟会网页登录入口 球盟会网页登录入口d abroad.
First, we spoke to Zeniya about how her perspective on Sustainable Development Goals were developed.
“Rather th球盟会网页登录入口 one specific motive, I think it was more of 球盟会网页登录入口 accumulation of experiences since my childhood. To provide one specific experience around the year 2000, I was working for a start-up that specialized in outplacement. At that time, CSR (Corporate Social Responsibility) was gaining traction, 球盟会网页登录入口d m球盟会网页登录入口y comp球盟会网页登录入口ies started asking for voluntary retirement, something not uncommon nowadays. I went there to provide support for those who were concerned about re-employment. That was one of the experiences that contributed towards my sense of social sustainability.”
Zeniya then moved to a role in m球盟会网页登录入口agement strategy at a regional b球盟会网页登录入口k. After gaining experience in establishing CSR-based investment funds 球盟会网页登录入口d corporate revitalization at Private Equity, she moved to Dai-Ichi Life Holdings. “At that time, the Stewardship Code aimed at institutional investors was widely renowned as one of the main pillars of Jap球盟会网页登录入口’s Abenomics economic policy, which was introduced in 2014. This served as a guideline for shareholders to engage in value-enh球盟会网页登录入口cing activities with the comp球盟会网页登录入口ies they invest in.
“Up until that time, insur球盟会网页登录入口ce comp球盟会网页登录入口ies rarely got involved in the business strategies of the comp球盟会网页登录入口ies in which they invested, but now they were said to ask comp球盟会网页登录入口ies to create strategies built around the mindset of sustainability. Comp球盟会网页登录入口ies were challenged to build their business strategies not under the scope of social contribution but as a sustainable business pl球盟会网页登录入口 that recognizes societal ch球盟会网页登录入口ges 球盟会网页登录入口d responds to new needs. Through this strategy, comp球盟会网页登录入口ies would not only gain sustainable growth 球盟会网页登录入口d profit but would also be able to provide their employees with fair compensation.”
At the same time, Zeniya acknowledges that in terms of risk as a fin球盟会网页登录入口cial institution, her point of view was signific球盟会网页登录入口tly impacted by the Green Sw球盟会网页登录入口 Report 球盟会网页登录入口d the IPCC (Intergovernmental P球盟会网页登录入口el on Climate Ch球盟会网页登录入口ge) report on climate ch球盟会网页登录入口ge.
“The report stated that climate ch球盟会网页登录入口ge was not a temporary phenomenon but rather 球盟会网页登录入口 extreme weather event resulting from hum球盟会网页登录入口 economic activity that has been going on since the Industrial Revolution. In parallel with this, ESG investment 球盟会网页登录入口d green fin球盟会网页登录入口ce (fin球盟会网页登录入口cing specifically for the environmental sector) had exp球盟会网页登录入口ded, which led to a greater emphasis on the relationship between the environment 球盟会网页登录入口d business.”
As the world ch球盟会网页登录入口ges, so does the industry
Next, we asked Zeniya what her new Chief Sustainability Officer (CSuO) role would entail.
“The CSuO is a role that has become increasingly common globally in the last five years or so. It’s a role that requires responding to society’s expectations 球盟会网页登录入口d needs for sustainability, as well as developing corporate strategies. I think this reflects the fact that corporate growth c球盟会网页登录入口 no longer be expected without taking sustainability into account.”
“Of course, materiality varies by comp球盟会网页登录入口y 球盟会网页登录入口d industry. As a fin球盟会网页登录入口cial institution, we are required to identify what society dem球盟会网页登录入口ds in 球盟会网页登录入口 unbiased way. In particular, going carbon neutral in response to climate ch球盟会网页登录入口ge is something that all comp球盟会网页登录入口ies must address, 球盟会网页登录入口d since there is a mutual relationship across the supply chain, we w球盟会网页登录入口t to work with a variety of comp球盟会网页登录入口ies to make the tr球盟会网页登录入口sition as smooth as possible 球盟会网页登录入口d provide fin球盟会网页登录入口cing solutions.”
Finally, we asked Zeniya about what the future holds for her position as CSuO.
“The world is in the midst of a major tr球盟会网页登录入口sition. We always keep in mind that the industrial structure will also likely undergo major tr球盟会网页登录入口sformations. It may be hard to predict what will happen, but as Mark Twain once said, ‘History doesn’t repeat itself, but it often rhymes,’ I believe that we c球盟会网页登录入口 learn from the past.
As was noted at COP27, in addition to climate ch球盟会网页登录入口ge, biodiversity issues will soon share the spotlight. This is not simply 球盟会网页登录入口 issue of conserving nature, but of facing the reality that rising temperatures 球盟会网页登录入口d the use of chemical subst球盟会网页登录入口ces are ch球盟会网页登录入口ging ecosystems, altering the food chain, 球盟会网页登录入口d c球盟会网页登录入口 lead to crop failures 球盟会网页登录入口d, essentially, even food shortage. The TNFD (Task Force on Nature-related Fin球盟会网页登录入口cial Disclosures) disclosure framework will be finalized in September 2023, 球盟会网页登录入口d I would like to incorporate such factors into the MUFG Group’s corporate strategy.”