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The Equator Principles The Equator Principles

The Equator Principles

MUFG Bank supports its clients' environmental and social risk management and contributes toward a sustainable world by adoption of and adherence to the Equator Principles, a risk management framework for determining, assessing and managing environmental and social risks and impacts for large-scale projects.

Environmental and social impact assessment and risk management through the Equator Principles

MUFG Bank (the Bank) recognizes that large-scale infrastructure and natural resources development projects may have adverse impacts on local environment and surrounding communities.
The Bank, as a financier and/or a financial advisor, works in partnership with its clients to determine, assess and manage environmental and social risks and impacts related to the projects.
The Bank adopted the Equator Principles in 2005 to ensure that the projects it finances and advises on are developed in a socially responsible manner and establish good environmental management practices to minimize, mitigate, and/or offset environmental and social risks and impacts.
The Bank supports its clients' environmental and social risk management and contributes toward a sustainable world through implementation of the Equator Principles, a risk management framework for determining, assessing and managing environmental and social risks and impacts for large-scale projects.

Site Visits

Sustainable Business Division conducts site visits, as appropriate, to gain firsthand knowledge that informs our assessment of social and environmental aspects of projects located throughout the world.

Example 1: Site Visit
Example 1: Site Visit
Example 2: Site Visit
Example 2: Site Visit

Financial Advisory Service Support

When MUFG Bank provides financial advisory services to clients seeking project finance, Sustainable Business Division works with clients, as appropriate, on the application of EP requirements from an early stage of the deal.

Education and Training

MUFG Bank conducts training for its employees with the objective of deepening their understanding of environmental and social considerations and promoting the philosophy and practices of EP.

The training is primarily targeted at employees in charge of project finance and credit. The Bank also utilizes internal communication measures to promote better understanding of social and environmental considerations by all employees.

The Bank also provides training for customers at their request.

Education and Training
Education and Training

Environmental and Social Consideration and Categorization Report FY2020

MUFG Bank (the “Bank”) discloses the numbers of the project finance transactions and the project-related corporate loans that achieved financial close in FY2020 (from April 1, 2020 to March 31, 2021), and the number of the project finance advisory services where the Bank was mandated during the same period in  “Environmental and social consideration and categorization report FY2020” in accordance with the Equator Principles and the Bank’s Implementation Guidelines for the Equator Principles.

The Bank categorizes the projects proposed for financing based on the magnitude of their potential environmental and social risks and impacts in accordance with the Bank’s Implementation Guidelines for the Equator Principles, referring to the International Finance Corporation (IFC)’s Performance Standards and World Bank Group Environmental, Health, and Safety Guidelines. Especially when assigning Category A to a project, the Bank categorizes the project in accordance with the definition of a Category A project in the Equator Principles referring as appropriate to other guidelines including OECD’s Common Approaches and relevant public institution’s guidelines.

Selected information assured by Deloitte Tohmatsu Sustainability Co., Ltd. is marked with ().
(As of October, 2021)