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Sustainability Management

With the conviction that environmental and social sustainability are essential to achieving sustainable growth for MUFG, we will engage in value creation employing an integrated approach in which the execution of management strategies goes in tandem with the pursuit of solutions for social issues.

 

Positioning in the Medium-Term Business Plan

MUFG has launched a medium-term business plan covering the next three years from FY2024. We have integrated the contribution to address social issues into our management strategies and positioned this as one of the three pillars of the medium-term business plan, and will further strengthen our initiatives in this area.
Positioning in the Medium-Term Business Plan

Priority Issues

Identifying Priority Issues

MUFG has previously established priority issues in our sustainability management to realize a sustainable environment and society. We have revised such priority issues considering environmental changes, expectations from society, and importance to our business. (April 2024)

Pursuing economic and social values is the key to improving corporate value. We identified ten priority issues under the subheads “Sustainable Society,” “Vibrant Society,” and “Resilient Society” and set specific targets as KPIs to strongly promote initiatives for solution of social issues.

Identifying Priority Issues

Process of Identifying and Resolving Priority Issues

Process for Identifying Priority Issues

In the review of priority issues from FY 2024, we broadly extracted sustainability issues and then narrowed them down by assessing their materiality to both our stakeholders and MUFG. Furthermore, we incorporated opinions from external advisors, investors, employees, and other stakeholders, and made decisions after building up discussions at the management level.

Flow of MUFG’s Process of Reviewing the Priority Issues Initiatives

Flow of MUFG’s Process of Reviewing the 10 Priority Issue Initiatives

Sustainable Finance

Target and Progress

We have set the cumulative executed amount between fiscal year 2019 and fiscal year 2030 as our sustainable finance target for solving environmental and social issues. The cumulative execution amount up to FY2023 is ¥34.2 trillion (of which ¥13.4 trillion is in the environmental area).
Target and Progress
Progress in Sustainable Finance Goals
Progress in Sustainable Finance Goals

Definition of Sustainable Finance

The term "Sustainable Finance" refers to the provision of finance for the following businesses (including loans, equity investment in funds, arrangement of project finance and syndicated loans, underwriting of equities and bonds, and financial advisory services) with reference to the relevant external standards (e.g. the Green Loan Principles, Green Bond Principles, and Social Bond Principles).
Environmental Area
  • Businesses contributing to the adaptation to and moderation of climate change, including renewable energy, energy efficiency improvement, and green buildings (e.g. arrangement of loans and project finance for renewable energy projects, underwriting and distribution of green bonds).
Social Area
  • Businesses contributing to the development of startups, job creation, and poverty alleviation
  • Businesses contributing to the energizing of local communities and regional revitalization
  • Fundamental service businesses, including those involved in basic infrastructure such as public transport, waterworks, and airports, and essential services such as hospitals, schools and police.
    (e.g. Emerging Industrial Technology Support Program, loans for regional revitalization projects such as MUFG Regional Revitalization Fund, arrangement of loans and project finance for public infrastructure, underwriting and distribution of social bonds).
Financing support: Target products for sustainable finance
Financing support: Target products for sustainable finance

Responding to Funds-Supplying Operations to Support Financing for Climate Change Responses
(Climate Response Financing Operations) at the Bank of Japan.

MUFG Bank and Mitsubishi UFJ Trust and Banking have been selected as counterparties of Funds-Supplying Operations to Support Financing for Climate Change Responses (Climate Response Financing Operations)at the Bank of Japan. The following include the criteria for eligible investment or loans for Climate Response Financing Operations by MUFG Bank and MUFG Trust and Banking.
MUFG Bank
MUFG Trust and Banking Corporation

Issuance of Green, Social and Sustainability Bond

MUFG is the only issuer in Japan with a track record of issuing green, social, and sustainability bonds as one of the largest financial institutions in Japan. The proceeds from bonds issued by MUFG will be used for sustainability-related financing.

 

Green, Social, and Sustainability Bonds

Stakeholder Engagement

In these rapidly changing times, all of our stakeholders are overcoming challenges to f­ind a way to the next stage, toward sustainable growth. We at MUFG will make every effort to help realize these goals. This will be our unchanging purpose now, and into the future.

MUFG will continue to actively engage in constructive dialogs with stakeholders in order to gain new insights and deepen mutual understanding. We strive to build a relationship of trust and cooperation with our stakeholders by responding appropriately to their concerns and issues, and to help MUFG achieve sustainable growth and enhance its corporate value over the medium to long term.

Medium- to Long-Term Vision

The ideal state is for MUFG to embody our purpose, and it should be consistent across the mid- to long-term.

MUFG group companies also have the unique ability to build meaningful bridges connecting our diverse stakeholder communities. With these abilities, MUFG intends to play a cohesive societal role by bringing various stakeholder communities together through financial empowerment. This concept is central to embodying our purpose through our new MTBP.

Medium- to Long-Term Vision
Key Stakeholder Groups Initiatives Towards Achieving the Desired Vision

Future Generations

・Realize a sustainable society

・Asset and business succession

Business Partners

・Support more customers through our business

Customers

・Meet our customers’ needs and help them attain a prosperous life (retail customers)

・Resolve our customers’ management challenges and help realize growth (corporate customers)

Communities and Society

・Efforts for regional revitalization

・Cultivate industries by supporting corporate clients

Shareholders / Investors

・Enhance corporate value and shareholder value through dialogue

MUFG Colleagues

・Create a workplace where employees can thrive and grow

・Focus on holistic well-being of employees

Employee Capability Building

MUFG is focusing on employee capability building and is developing various measures for each employee group. In FY2023, we provided training programs for a total of around 2,000 front office representatives in charge of major corporations to improve their knowledge and expertise, with a focus on climate change, in order to enhance client engagement capabilities. We will continue to support the growth of our employees.
Employee Capability Building
In FY2023, we held internal seminars, communicated sustainability initiatives via our internal website, and launched an internal social media platform to ensure that each MUFG employee has a basic understanding of sustainability and awareness to take action on their own.
Employee Capability Building
(As of August 2024)