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[Strategy] Net zero GHG Emissions from Our Own Operations

Net zero GHG Emissions from Our Own Operations

In the “MUFG Group Code of Conduct,” MUFG positions “Commitment to the Environment” as part of its employees’ “Responsibility as a Corporate Citizen,” and the Board of Directors sets forth the policy for the specific actions to be taken in order to implement commitment to the environment in the “MUFG Environmental Policy Statement.” The Policy Statement’s section on “Environmental Actions through Business Activities” stipulates “Reduction of Environmental Impact at Our Offices,” “Environmental Improvement and Pollution Prevention,” and “Awareness Raising Across the Group,” and efforts are being undertaken to address each of these areas.

Initiatives for Net Zero GHG Emissions from Our Own Operations by 2030

To reduce GHG emissions and mitigate global warming, MUFG aims to achieve net-zero GHG emissions(note1) from its own operations by 2030. In addition to our initiatives to conserve energy, we are making efforts such as adopting renewable energy sources for the electricity we use and switching to electric vehicles (EVs). We are also working to establish and introduce green power,(note2) which is an expandable renewable power source, to directly contribute to increasing renewable sources of power.

Overseas, while accumulating expertise from promoting domestic environmental initiatives, MUFG will accelerate the implementation of specific measures, taking into account the status of policies and systems to promote decarbonization in each country.

  1. Scope 1 emissions (direct GHG emissions by business operators) and Scope 2 emissions (indirect emissions associated with the use of electricity, heat, and steam supplied by other companies) in the GHG protocol
  2. Green power, generated from renewable energy sources such as wind or solar energy, is sent directly from the power plant to the consumer. Customers can use green power directly as electricity for their own use, rather than being “deemed” to do so.

Progress on Reducing GHG Emissions from Our Own Operations

In FY2022, MUFG accomplished switching to 100% renewable power sources for in-house contracted electric power at all consolidated subsidiaries in Japan, and set interim targets to accelerate initiatives for achieving net-zero emissions from our own operations by 2030.

<Interim targets>

・FY2025: Reduction of GHG emissions from the business in Japan by two-thirds compared to FY2020

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

GHG emissions in FY2022 decreased by 43,000 tCO2e (19%) from 232,000 tCO2e in the FY2021 to 189,000 tCO2e, achieving our interim target for FY2025 ahead of schedule. MUFG has received third-party limited assurance for its FY2022 GHG emissions.

For the first time, we also calculated the Scope 3(note) (Categories 1-14) GHG emissions of MUFG, the Bank, the Trust Bank, the Securities, NICOS, and ACOM, the Group's six major companies in Japan. Calculated Scope 3 (Categories 1-14) emissions in FY2022 were 1.3million tCO2e.

  1. Indirect emissions other than Scope 1 and Scope 2 (emissions by other companies related to the own business activities)
Scope 1 and 2 reduction roadmap

Efforts on Switching to Renewable Energy through Corporate PPAs

In July 2022, MUFG utilized an off-site corporate PPA(note3) to introduce electricity derived from renewable energy generated by a solar power plant to around 40 locations in Japan. MUFG was involved in the construction of a new 2,000 kW solar power generation facility, and will purchase electricity derived from renewable energy sources over the long term. Subsequently, MUFG established a new 2,000 kW solar power generation facility in September 2022, with all of the renewable power generated to be utilized at the Bank’s data center.

Through these types of initiatives, MUFG is making a direct contribution to the increase in the number of expandable renewable power sources(note4) in Japan. We will continue to pursue such efforts in order to further the spread of renewable energy.

  1. PPA, or Power Purchase Agreement, is a service in which the power producers and electricity consumers execute a purchase agreement for renewable electricity for a price and period agreed in advance, and renewable energy generated from renewable power sources installed off-site, not in demand areas, is supplied to consumers via ordinary power grids.
  2. Contribution to the spread and expansion of new renewable energy through the introduction of renewable energy.
 Corporate PPAs

Efforts to Achieve Carbon Neutral Company Vehicles

To achieve its net zero target by 2030, MUFG is gradually replacing company vehicles with models that consume less gasoline. In 2017, the Securities began using fuel cell vehicles on a trial basis, and the Bank began the conversion of 200 small-size vehicles to EVs in FY2023. From FY2024 onward, MUFG will share the expertise acquired in these fore-running efforts within the group and promote the transition to carbon-neutral company vehicles by choosing the latest environmentally friendly automobile models.

Efforts on Energy Efficiency and Conservation

MUFG supports the Act on the Rational Use of Energy and the Act on Promotion of Global Warming Countermeasures, submitting reports on the status of achieving energy-saving targets and greenhouse gas emissions, while implementing and promoting a variety of initiatives to conserve energy.

Under the evaluation system established in the Act on the Rational Use of Energy to categorize business operators, the Bank, the Trust Bank, and ACOM were recognized as S rank companies (excellent companies for energy efficiency) for FY2022 (evaluation of FY2021 results). MUFG will continue to promote various efforts to conserve energy and improve energy efficiency, not limited to adhering to the relevant laws and regulations, in order to achieve net zero by 2030.

Specific Energy Conservation Initiatives
  • In terms of equipment, lighting is being switched to LED and motion sensors are being installed to turn lights on and off automatically, while equipment such as air conditioning systems are being replaced with high-efficiency models.
  • As for operations, efforts under way include setting air conditioning equipment operating hours (for example, to operate until 7 p.m. at the Tokyo head office building), adjusting the number of elevator cars in operation based on the time of day, shutting of blinds (when the outside temperature reaches 30°C), adjusting the brightness of lighting in common areas, and setting air conditioners to reasonable temperatures in summer and winter (based on the government’s recommended temperature settings, etc.).
  • In addition, NICOS and ACOM are engaged in activities to raise awareness at the respective companies through regular internal dissemination of information on various initiatives and training.
Efforts to Conserve Energy in Buildings
  • MUFG obtained its first “ZEB Ready(note)” certification (energy saving of 50% or more) for the new park office and library in MUFG Park, for which construction was completed in June 2023.
  1. Certification as a net zero energy building, which is granted to buildings that achieve a 50% or greater reduction in primary energy consumption from the benchmark based on the building’s use, size, etc.
The Park office
The Park office
The library
The library
  • In addition, the Bank reconstructed two of its head office buildings, the Osaka Building in 2018 and the Nagoya Building in 2021. Both buildings were designed to be environmentally conscious and were fitted with all-LED lighting, window glass with advanced insulation (low-E glass), and equipment to effectively utilize rainwater. Subsequent to the CASBEE(note) evaluation of the buildings’ environmental performance, both buildings obtained S rank, the highest rating, based on CASBEE Osaka Mirai and CASBEE Nagoya for the Osaka Building and Nagoya Building respectively.
  1. The Comprehensive Assessment System for Built Environment Efficiency (CASBEE) is a method for evaluating and rating the environmental performance of buildings. It is a comprehensive assessment of the quality of a building, evaluating features such as interior comfort and scenic aesthetics, in consideration of environment practices that include materials and equipment that save energy or achieve smaller environmental loads.
Exterior of the Osaka Building
Exterior of the Osaka Building
Exterior of the Nagoya Building
Exterior of the Nagoya Building
  • The MUFG/MUFG Bank Tokyo head office building is slated for future reconstruction, and the plan is to build a new “MUFG Main Building” that is designed to be carbon-neutral, energy-saving, and resource-recycling.
  • In other future reconstruction projects as well, MUFG will continue to pursue environmentally conscious building efforts such as obtaining ZEB and CASBEE certification.

Efforts to Establish Recycling-Based Society and Circular Economy

In light of growing international awareness of resource recycling, the worsening waste problem, and the conservation of resources, MUFG is implementing a variety of initiatives to facilitate the transition to a circular economy that uses resources in a sustainable manner.

Recycling of Waste

A target waste recycling rate of at least 90% has been set for MUFG locations in Japan, and making greater efforts to properly sort waste is being promoted by installing waste disposal stations where recyclable waste can be sorted, establishing rules for sorting and collection, and providing specific examples of proper sorting. In FY2022, the Bank achieved a 100% paper products recycling rate for its head office buildings in Tokyo, Nagoya, and Osaka. The Tokyo head office building is also conducting kitchen waste recycling, for which the FY2022 waste recycling rate was over 90% (94.9%). We aim to continue to improve the waste recycling rate, including at other head office buildings.

Overseas, Krungsri (Bank of Ayudhya) in Thailand has been promoting the “Krungsri Zero Waste” project since 2018. This project aims to raise employee awareness of waste problems through training sessions and waste sorting activities, and works to reduce and recycle waste.

Recycling of Waste

Reducing, Reusing, and Recycling of Paper

In order to effectively utilize forest resources, MUFG is reducing the amount of paper used along with reusing and recycling paper.

Measures to cut down on paper usage include visualization of the number of pages printed out, promoting smart work (actively using the online meeting system, using monitors to display materials, etc.), and digitization of contract documents and materials distributed to customers such as bank books, prospectuses, and account activity statements.

In addition, an initiative is under way on a trial basis at the Bank’s Tokyo head office and the Ikejiri Building to recycle resources within the company by recycling paper to re-use in each building as toilet paper.

As for paper recycling, in FY2022 the Bank achieved a 100% recycling rate at its head office buildings (Tokyo, Osaka, and Nagoya).

Reducing, Reusing, and Recycling of Paper

Reducing, Reusing, and Recycling of Plastic and Switching to Renewables

In response to environmental problems concerning plastic such as the impact on the ocean and oceanic resources, MUFG is promoting initiatives to reduce, reuse, and recycle plastics (the “3Rs”) and adopt renewables.(note)

Activities aimed at reducing the volume of plastic used include recommending that tenant shops and cafes for employees stop giving out straws derived from petrochemicals and adopting contactless payment and other transaction services. In addition, MUFG is also working to efficiently utilize resources by engaging in activities to encourage reuse, such as the collection and redistribution of used office supplies made of plastic.

MUFG has been promoting recycling by installing dedicated waste bins for PET bottles in order to properly sort plastic waste, and in FY2022 the Bank achieved a PET bottle recycling rate of 100% at its head office buildings in Tokyo, Nagoya, and Osaka. Efforts are also under way to promote the switch to “horizontal recycling” (making used bottles into new bottles), and the Bank head office building in Nagoya has achieved a 100% horizontal recycling rate. We will continue to broadly promote horizontal recycling.

As for initiatives to switch to renewables, NICOS has adopted biomass-derived plastic for the clear wrapping it uses for its member information magazine, and MUFG will continue to pursue the switch to renewable resources for plastics.

  1. Here, renewable refers to substitution with a renewable resource such as paper or plastics derived from plant matter.
Reducing, Reusing, and Recycling of Plastic and Switching to Renewables

Efforts Related to Water Resources

MUFG is engaged in efforts on a global basis to conserve water through the effective use of water resources.

To promote the reuse of water and utilization of rainwater, water treatment and rainwater utilization equipment has been installed in some head office buildings in Japan.

Overseas, MUFG is working to reduce water usage at subsidiaries located in highly water-stressed countries. Krungsri(note) is taking measures such as wastewater reuse in order to reduce the amount of tap water used at the Bangkok head office, and has reduced water usage at its Phloenchit office by approximately 40% by installing water-saving equipment. In addition, Bank Danamon in Indonesia has installed hygienic water infrastructure in five regions.

We will continue to pursue various efforts to effectively utilize water resources.

  1. Krungsri established their “Policy for Environment, Resource, Occupational Health, and Safety” to promote and support the environmental management and resource efficiency. The policy presents a guideline to determine the environmental protection and resource conservation measures, including those related to water consumption as below.
  • ・Communicate and campaign about correct and efficient water consumption
  • ・Stipulate appropriate water consumption time (e.g., watering plants, cleaning space in front of the building, etc.)
  • ・Use water-saving and environmentally friendly sanitary wares
  • ・Stipulate measures on wastewater reuse (e.g., wastewater treatment per stipulated standards and wastewater reuse for some activities)
  • ・Log monthly water consumption