MUFG;Natural Capital and Biodiversity| Mitsubishi UFJ Financial Group

Natural capital and Biodiversity
Main Initiatives

Natural Capital and Biodiversity

Natural capital is a stock, composed of animals, plants, water, soil, and air, which provides various merits, including water, food, and minerals to businesses 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, functioning to maintain the natural capital in 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.

(Source：NATURAL CAPITAL PROTOCOL P.12)

Main Initiatives

MUFG Environmental Policy Statement, MUFG Environmental and Social Policy Framework

In MUFG Environmental Policy Statement and the MUFG Environmental and Social Policy Framework, MUFG has established the following policies:

MUFG Environmental Policy Statement

(extract) [Maintenance and protection of the biodiversity which supports our society is the foundation for the realization of a sustainable society. MUFG supports businesses that protect biodiversity through the provision of products and services. Each group company also takes appropriate measures to prevent negative impacts on biodiversity associated with our products and services.]

MUFG Environmental and Social Policy Framework

In light of the nature and severity of environmental and social risks or impacts, businesses that have a negative impact on Ramsar-designated wetlands, businesses that have a negative impact on UNESCO World Heritage sites, and businesses that violate the Convention on International Trade in Endangered Species of Wild fauna and Flora (Washington Convention) are defined as "Prohibited Transactions", In addition, as "Transactions of High Caution", we have identified businesses that have a negative impact on areas with high conservation value and sectors such as mining (coal), oil and gas, large-scale hydroelectric power generation, forestry, and palm oil. When considering financing, we check the implementation status of environmental and social considerations by our customers, including their impact on the ecosystem and how they are responding.

Initiatives

Endorsement of Taskforce on Nature-related Financial Disclosures (TNFD) Forum

The TNFD is an international initiative launched in June 2021 by the United Nations Environment Programme Finance Initiative (UNEP FI), the United Nations Development Programme (UNDP), the World Wide Fund for Nature (WWF) and Global Canopy. TNFD aims to shift global financial flows toward nature-positive outcomes through disclosure of nature-related information by companies. The TNFD Forum is a stakeholder organization to provides information and technical support related to TNFD.

In February 2022, MUFG joined the TNFD Forum to promote initiatives for natural capital and biodiversity across the Group. We also participated in a meeting of the TNFD Consultation Group of Japan established in June 2022. In addition, referring to the LEAP approach^(note) presented in the framework beta version, we have started to analyze natural capital risks together with Mitsubishi UFJ Research and Consulting, a member of the forum. As a member of the forum, we will continue to actively participate in discussions to further contribute to the realization of a sustainable environment and society.

LEAP approach: An approach proposed as a practical risk assessment method for natural capital and consists of four steps: Locate the contact point between the company and nature, Evaluate the impact and dependence on nature, Assess the risks and opportunities related to nature, and Prepare business strategies and disclosures according to those risks and opportunities.

30by30 Alliance for Biodiversity

The Alliance was established in April 2022 as a coalition of the willing to implement the various measures incorporated in the 30by30 Roadmap formulated by the Ministry of the Environment.

Alliance participants make efforts to directly secure conservation areas or support conservation activities towards achieving the 30by30 target and disseminate the progress of such efforts.

MUFG supports the purpose of the Alliance and has been participating in it since its launch.

Declaration of Biodiversity by Keidanren

MUFG endorses the Declaration of Biodiversity by Keidanren and Action Policy, as revised in October 2018. The Declaration of Biodiversity by Keidanren and Action Policy aim to realize a sustainable society through the creation of a society in harmony with nature. We are calling for the integration of business activities and environmental measures, which encompass a wide range of environmental activities, such as biodiversity conservation. MUFG will promote initiatives based on this concept.

Activities for Protecting Natural Capital and Biodiversity

MUFG Pledges Support to Promote Cyclic Utilization of Forests

In recent years, the abandonment of artificial forests planted for timber production has become a serious social issue. There is a growing need to promote the cyclic utilization of forest resources, in which trees are planted, grown, harvested, used and planted again. MUFG has so far undertaken a number of tree-planting projects aimed at preserving and passing on the rich blessings of forests to the next generation. Our support for this research institute engaged in promoting cyclic utilization of forest resources is motivated by the same aim.

A specified nonprofit organization that started as a volunteer organization in 2003. The Institute mainly works on forest creation and conservation, promoting the utilization of wood by companies (providing environmental and social contribution programs for employee participation), and field experience activities for mothers and children.

MUFG Pledges Support to Promote Cyclic Utilization of Forests

Peter Rabbit™ Forest for the Future

In March 2022, the Trust Bank entered a forest development agreement with Fujikawaguchiko Town (Yamanashi Prefecture), Kodachi Property District Management Association, and Fuji-Hokuroku Forest Association, and named a 1.67 ha mountain forest in Kodachi (Fujikawaguchiko Town, Minamitsuru County, Yamanashi Prefecture) "Peter Rabbit™ Forest for the Future,” starting a new initiative for biodiversity conservation through forest and water resource conservation.

In May 2009, we entered a similar agreement for forest conservation in Nagatoro Town, Saitama Prefecture. Now, we are engaged in work to cultivate new forests.

Forests play a variety of roles, including conservation of land, conservation of ecosystems, and prevention of global warming. In particular, forests in water source areas play an important role in the stable supply of safe and high-quality water by performing so-called water source rearing functions such as storing water resources and purifying water quality.

We believe that it is important for all officers and employees to continue to care for forests and maintain healthy forests.

ACOM no Mori (ACOM's Forest)

ACOM conducts forest conservation activities in Kanagawa and Osaka prefectures, where the company’s contact centers are located, in order to contribute to environmental conservation and to foster an awareness of employee participation in social contribution and an interest in the environment.

Mangrove Reforestation Activity

Mangrove forests are priceless resources of marine and coastal ecosystems, and indispensable for the economic, social, and environmental sustainability. Planting mangrove trees will not only help build natural barriers against soil erosion, but also create nature study areas with great biodiversity worth conserving.

Krungsri has been organized in collaboration with government agencies and provincial administrative authorities to continuously promote this reforestation activity since 2012. Bank Danamon has been actively engaged in mangrove reforestation activities as well, planting seeds in collaboration with local companies and authorities of Indonesia.

Krungsri：Mangrove Reforestation Activity

Bank Danamon：2022 Danamon Peduli Environmental Care activity

Contribution to the Preservation and Succession of Important Natural Value in Urban Areas

Located in Nishitokyo City, Tokyo, MUFG Park is a facility with abundant nature, sports facilities including tennis courts, and a community library (scheduled to open in 2023).

With a total area of approximately six hectares, MUFG Park also contributes to the preservation and succession of important natural value in an urban area.

Eco-friendly Mitsubishi UFJ Card

Mitsubishi UFJ NICOS issues environmentally friendly Mitsubishi UFJ Cards (with some exceptions) from signing up to issuing cards, bill statements, and point rewards. In addition to the use of PET-G materials for credit cards which do not emit chlorine when incinerated and application forms made of forest conservation paper, we offer a donation program, as a part of point reward program, to environmental conservation organizations engaged in forest maintenance and reforestation projects in Japan.

Preventing Extinction of Japanese Cranes, a National Natural Treasure of Japan

We engaged in activities to protect Japanese cranes, a national natural treasure of Japan and endangered species in Hokkaido as part of the MUFG SOUL^(note).

Activities included participation in local preservation activities, donating equipment used to videos to raise awareness at schools and local communities in Hokkaido and raising awareness at branches through posters that showcase the activity.

MUFG SOUL – Turning passion into power for society –
MUFG provides funding for ideas for solving social issues that are planned by employees.
In fiscal 2021, more than 300 plans and ideas were gathered from employees, including support for children's cafeterias, which provide free or inexpensive meals to children, and orphanages, and contributions to community revitalization, and a total of more than 3,000 people participated in social contribution activities (100 million yen in total).
We will continue to contribute to the resolution of a wider range of social issues by addressing issues from the perspective of our employees.

Preventing Extinction of Japanese Cranes, a National Natural Treasure of Japan

Satoyama Environmental Conservation Project

As part of MUFG Soul activities, MUFG donated the cost of purchasing equipment for satoyama (village-vicinity mountains) maintenance to the Tonda Forest Conservation Society, an NGO that engages in Satoyama environmental conservation activities, and conducted the following activities.

[Major activities]

・ Nature observation events (local citizens and children participated)

・ Environmental conservation activities for satoyama (forest thinning, promenade maintenance, etc.)

・ Workshops on SDGs and environmental issues

Satoyama Environmental Conservation Project

(As of October 2022)