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Policies and Guidelines

Policies and Guidelines

Environment

MUFG Environmental Policy Statementcloseopen
1. Our Approach to Addressing Environmental Issues

Mitsubishi UFJ Financial Group (hereinafter referred to as MUFG) recognizes that taking actions to address global environmental issues, including protecting the environment and responding to climate change, is the responsibility of all human beings.
As a result, MUFG, as a responsible corporate citizen, is aiming to contribute to the realization of a sustainable society by protecting the global environment. In order to achieve this goal, not only does MUFG comply with applicable legislation and international agreements, but also responds appropriately when our operations result in environmental risks or negative impacts, by reducing the environmental impacts of our operations, as well as actively working towards finding solutions to global environmental issues through our business activities.

2. Positioning of MUFG Environmental Policy Statement

In line with our Corporate Vision, MUFG has adopted the mission of being a financial institution that is committed on a long-term basis to developing lasting relationships with both our clients and society, and promoting shared and sustainable growth for a better world, a vision we are continuously working towards.
MUFG recognizes that environmental issues are significant to our operations. This Environmental Policy Statement, which is based on our Corporate Vision and our Principles of Ethics and Conduct supporting such Corporate Vision, provides the basis for our policies in pursuing environment related initiatives.

3. Environmental Actions through Business Activities

(1) Actions through business activities
MUFG supports clients that actively seek to find solutions to environmental issues and manage their environmental impacts. Additionally, MUFG takes into consideration the environmental impacts associated with our products and services. In the case that potential environmental impacts associated with our products and services are identified, MUFG responds in an appropriate manner. MUFG actively promotes the appropriate management of environmental risks, including climate change.
Through this approach, MUFG aims to contribute to the realization of a sustainable society and increase corporate value through the sustainable growth of our business.

■Climate Change

MUFG recognizes climate change as a critical issue for the global environment and believes that climate change challenges must be addressed to realize sustainable growth and support the continued operation of each group company and our clients. MUFG recognizes that as a global financial institution, we play an important role in the transition to a low-carbon society and other global actions aimed at combatting climate change.
Based on such recognition, MUFG promotes the transition to a low-carbon society and reduces climate change risk through actions associated with both our own operations and through the products and services we provide to clients. Initiatives taken by MUFG include the following:

  • We will move ahead with measures to reduce greenhouse gas emissions through our support for businesses involved in solar and wind power and other forms of renewable energy and by providing funding for companies that pay due attention to environmental risks.
  • Consideration of the potential climate change impacts associated with the products and services provided by each group company and responding in an appropriate manner based on thorough consideration of such impacts
  • Research into the potential future impacts of climate change on our business to support management of climate change risk.

In addition, MUFG supports the following climate change related international agreements and initiatives:

  • Paris Agreement
  • Recommendations of Task Force on Climate-related Financial Disclosures (TCFD)
  • Principles for Responsible Investment (PRI)
  • Equator Principles
  • United Nations Environment Programme Finance Initiative (UNEP FI)
  • Principles for Financial Action for the 21st Century
  • CDP (formerly the Carbon Disclosure Project)

■Biodiversity

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.

(2) Actions to Reduce Our Environmental Impacts
Through initiatives such as those shown below, each group company works towards reducing our environmental impacts, environmental improvement and pollution prevention across all of our operations.

  • Reduction of Environmental Impact at Our Offices
    Recognizing the environmental impact associated with resource consumption and waste generation from our business activities, we work to minimize environmental impacts through resource recycling efforts and the efficient use of energy and resources.
  • Environmental Improvement and Pollution Prevention
    Monitoring the impacts of our activities on the environment on a continuous basis and working towards environmental improvement and prevention of pollution.
  • Awareness Raising Across the Group
    MUFG Environmental Policy Statement is shared across the entire group and supported by initiatives to raise awareness of environmental issues among our employees. In-house environmental education and support is provided to encourage environmental protection activities of our executives and employees.
4. Governance and Management System

MUFG Environmental Policy Statement was discussed by the CSR Committee responsible for environmental and social issues and approved by the Executive Committee.
The CSR Committee regularly reviews the need to update the policy statement and makes amendments as necessary to reflect changes in our business activities and the business environment.

5. Stakeholder Engagement

MUFG works to progress and improve our environmental initiatives as well as raise awareness of environmental issues through engagement with external stakeholders on MUFG’s publicly disclosed Environmental Policy Statement.

MUFG Environmental and Social Policy Frameworkcloseopen
1. Introduction

The international community, aiming at achieving the Sustainable Development Goals (SDGs) and Paris Agreement on climate change, is working towards the protection of the global environment, which is fundamental to the existence of humanity and all living creatures, and the realization of a sustainable society.
As a global provider of financial services, Mitsubishi UFJ Financial Group (hereinafter, MUFG) defines its mission as being committed on a long-term basis to developing lasting relationships with both our clients and society, and promoting shared and sustainable growth for a better world.
In addition, through the financial services we provide we are actively working towards finding solutions to environmental and social issues which also contribute to our sustainable business growth and enhancement of our corporate value.
MUFG recognizes that the environmental and social risks arising from the business activities of each group company are important to our business and require managing appropriately. This Environmental and Social Policy Framework (hereinafter, Framework) has been developed based on the “MUFG Environmental Policy Statement” and “MUFG Human Rights Policy Statement” which establish the basis for our policies for management of environmental and human rights issues respectively. The opinions and perspectives of various stakeholders were taken into consideration in the development of the Framework.
The Framework outlines the approach that MUFG takes in responding appropriately to environmental and social issues in our business activities and contributing to sustainable environmental and social development. Through the adoption of this approach, we expect to contribute to the realization of a sustainable environment and society.
To promote understanding and cooperation regarding our approach, the contents of this Framework is communicated to clients in all of our group companies.

2. Governance

The MUFG Corporate Vision guides the way in which we carry out our business activities. To realize our Corporate Vision, the MUFG Principles of Ethics and Conduct standards have been established which apply to executives and employees of all group companies and guide their everyday decisions and actions. The Framework is based on our Corporate Vision and Principles of Ethics and Conduct.

  1. Positioning of the Environmental and Social Policy Framework
    The Framework is based on the “MUFG Environmental Policy Statement” and “MUFG Human Rights Policy Statement” and is structured to enable the appropriate identification and management of environmental and social risks associated with our business operations. The Framework is aligned with the MUFG reputational risk management framework to avoid negative impacts to MUFG corporate value.
  2. Governance and Management System
    The CSR committee, which reports to the Executive Committee, is responsible for developing appropriate responses to the environmental and social issues relevant to our business.
    Individual transactions with significant environmental and social risks or impacts that have the potential to negative impact on the corporate value of MUFG are assessed for reputational risk, as necessary. Transactions are evaluated with the involvement of executive management, taking into consideration the potential transaction related reputational risks.
  3. Role of Business Group
    Business Groups are responsible for performing environmental and social due diligence to assess the potential environmental and social issues associated with the products and services to be provided. The assessment includes information collected from approaches such as interviews with clients. In implementing environmental and social due diligence, Business Groups consult with the relevant department responsible for management of environmental and social risks.
  4. Management of the Environmental and Social Policy Framework
    The Framework was discussed by the CSR Committee and approved by the Executive Committee. The CSR Committee regularly reviews the need to update the Framework and makes amendments as necessary to reflect changes in our business activities and the business environment.
3. Applicable Products and Services

Products and services provided to clients by each group company include the extension of credit and the underwriting of bonds and stocks (hereinafter, financing). We recognize that the provision of financing may potentially contribute to environmental and social impacts as well as an increase in associated risks.
The Framework applies to new finance in all countries / regions for corporate clients of MUFG's core subsidiaries; MUFG Bank, Mitsubishi UFJ Trust and Banking, and Mitsubishi UFJ Securities Holdings (hereinafter referred to as "Core Subsidiaries"). The Framework is integrated into the internal procedures and standards of each Core Subsidiary.
MUFG Bank also conducts environmental and social due diligence of large-scale projects based on the Equator Principles adopted in 2005.

4. Applicable Transactions

The Framework provides a guideline allowing us to confirm whether corporate clients receiving financing from each Core Subsidiary are fulfilling their social responsibility by demonstrating appropriate consideration of environmental and social issues based on applicable legislation and international best practice.
Taking into consideration the nature and severity of associated environmental and social risks or impacts, MUFG has identified transactions which are "Prohibited from Financing" and where "Financing is Restricted".

  1. Prohibited Transactions
    The transactions listed below are considered as having significant environmental and social risks or impacts. In cases where each Core Subsidiary is aware of the environmental and social risks or impacts, financing is not provided.
    A) Illegal transactions and transactions for illegal purposes
    B) Transactions which violate public order and good morals
    C) Transactions that negatively impact wetlands designated under the Ramsar Convention
    D) Transactions that negatively impact UNESCO designated World Heritage Sites
    E) Transactions violating the Convention on International Trade in Endangered Species of Wild Fauna and Flora (Washington Convention)*
    [* Taking into consideration country specific considerations]
    F) Transactions involving the use of child labor or forced labor
  2. Restricted Transactions
    Restricted transactions consist of cross-sector items and sector specific items.
    For transactions where the conditions listed below may exist, the potential that environmental and social risks or impacts may exist is considered to be high and clients are expected to implement the appropriate environmental and social measures. When each Core Subsidiary is considering providing financing for these transactions, the identification and assessment process for environmental and social risks or impacts will be used to confirm the client's approach to managing environmental and social issues.
    If the environmental and social management approach of client's is not considered sufficient relative to the level of the potential risks or impacts, financing will not be provided.
    (i) Cross-sectoral items
    A) Impact on Indigenous Peoples Communities
    B) Land expropriation leading to involuntary resettlement
    C) Impact on High Conservation Value areas
    (ii) Sector specific items
    A) Coal Fired Power Generation Sector
    Protection of the environment, in particular actions which contribute towards combatting climate change, is one of the most important issues for MUFG in moving towards realizing a sustainable society. We actively provide financing to renewable energy businesses, such as solar and wind power generation, to contribute to providing solutions to environmental issues such as climate change through our business activities.
    We support international initiatives that are aiming to reach the objectives set by the Paris Agreement and support the adoption of advanced technologies for high efficiency power generation which contribute to reducing greenhouse gases emissions and Carbon dioxide Capture and Storage technologies.
    MUFG Bank and Mitsubishi UFJ Trust and Banking refer to international guidelines such as OECD Arrangement on Officially Supported Export Credits, when considering the provision of financing for new coal fired power generation. Decisions on financing are made following recognition of both the local and the international circumstances surrounding coal fired power generation.
    B) Cluster Munitions Manufacturing Sector
    Civilian populations have been greatly affected by cluster munitions as they release many bomblets over a wide area and because of their indiscriminate effect. As a result, their use has generated significant humanitarian concerns internationally.
    In light of the inhumane nature of cluster munitions, Core Subsidiaries prohibit the provision of financing to any company that manufactures cluster munitions.
5. Identification and assessment process for environmental and social risks or impacts

A due diligence process to identify and assess the environmental and social risks or impacts associated with transactions has been introduced.

  1. Standard Due Diligence
    Standard due diligence is implemented by the department in the relevant business division of each Core Subsidiary responsible for communications with the client. The decision regarding categorization of the transaction as a “Prohibited Transaction” or “Restricted Transaction” is made based on available public information and information provided by the client.
  2. Enhanced Due Diligence
    Transactions categorized as “Restricted Transactions”, in addition to standard due diligence, are subject to enhanced due diligence. This is implemented by the department responsible for management of environmental and social risks in each Core Subsidiary. Decisions on financing are made following assessment of the findings of the enhanced due diligence.
  3. Financing Reputational Risk Management Approach
    Transactions assessed as having the potential to have significant negative impacts on the corporate value of MUFG are evaluated with the involvement of executive management.
6. Training
  1. Corporate Training and Education
    Training on environmental and social issues is provided to relevant employees of each Core Subsidiary. The objective of the training is to enhance the understanding of global initiatives to environmental and social issues, as well as the process of confirming the client’s approach towards management of environment and social issues. The training also aims at the spread of ideas supporting the Framework, and the environmental and social due diligence process.
    Specialized training, with the objective of advancing the implementation of the Framework, is provided in divisions responsible for management of environmental and social risks.
  2. Stakeholder Engagement
    Implementation of the Framework includes constructive dialogue with various stakeholders. This dialogue is intended to help identify appropriately environmental and social risks or impacts to which MUFG is to respond and provides information relevant to discussions on revisions to the Framework to increase its effectiveness.

[Disclaimer]
No agency or contractual relationships between MUFG or each of the other group companies and other parties arise from the disclosure and implementation of the Framework. MUFG and other group companies assume no legal obligation, liability or responsibility as a result of such disclosure and implementation.

Social

MUFG Human Rights Policy Statementcloseopen
1. Commitment to Respect Human Rights

Mitsubishi UFJ Financial Group (hereinafter referred to as MUFG) recognizes respect for human rights as an important issue to be addressed in the management of our business for the realization of our Corporate Vision to be the world’s most trusted financial group. We are committed to endeavor to fulfill our responsibility to respect human rights across all of our operations.

2. Human Rights Principles

MUFG is guided by the following international principles for human rights:

  • Universal Declaration of Human Rights
  • Declaration on Fundamental Principles and Rights at Work (International Labour Organization (ILO))
  • Guiding Principles on Business and Human Rights

In addition, MUFG supports and promotes the following international initiatives:

  • The OECD Guidelines for Multinational Enterprises
  • The United Nations Global Compact
  • Principles for Responsible Investment (PRI)
  • Equator Principles
  • United Nations Environment Programme - Finance Initiative (UNEP FI)
  • Principles for Financial Action for the 21st Century

While national governments are primarily responsible for protecting the human rights of their citizens, MUFG supports and respects internationally recognized human rights standards, regardless of whether the national legislation of the relevant country contains such protections or not.
In countries where local legislation conflicts with internationally recognized human rights standards, MUFG seeks to respect international standards.

3. Positioning of the Human Rights Policy Statement

In line with our Corporate Vision, MUFG has adopted the mission of being a financial institution that is committed on a long-term basis to developing lasting relationships with both our clients and society, and promoting shared and sustainable growth for a better world, a vision we are continuously working towards.
With this Human Rights Policy Statement, which is based on our Corporate Vision and our Principles of Ethics and Conduct supporting such Corporate Vision, we commit to respect human rights throughout our business operations.

4. Applicability & Scope

In compliance with this MUFG Human Rights Policy Statement, executives and employees of each group company strive to respect human rights.
Additionally, MUFG urges clients and suppliers of each group company to respect human rights. MUFG also works to respond in an appropriate manner to known cases of human rights violation by our clients or suppliers

5. Executives and Employees

MUFG is committed to eliminating all kinds of employment and workplace discrimination from our business operations. We will not tolerate any type of human rights violation including, but not limited to, discrimination on the basis of race, national origin, belief, religion, disabilities, family origin, gender, sexual orientation, gender identity, age or health status as well as sexual, power and other types of harassment, forced labor, and child labor. All MUFG executives and employees are required to comply with this commitment.
In addition, each group company provides consultation or support services for human rights infringements in the workplace. We show no tolerance for human rights infringements and have established this system to prevent such incidents.
Human rights awareness-raising trainings are also provided for executives and employees at all levels of our business as part of MUFG’s efforts to promote the correct understanding and appreciation of human rights issues among all executives and employees.

6. Clients

MUFG expects its clients to respect human rights and avoid any human rights violations. MUFG promotes the respect of human rights by responding in an appropriate manner in situations where our products and services are directly connected to violations of human rights and urging clients to implement the appropriate responses.
MUFG has introduced an Environmental Social Policy Framework, which incorporates environmental and social due diligence requirements, to assess and manage transaction related environmental and social impacts associated with the business conducted with our clients.

7. Suppliers

MUFG expects suppliers to respect human rights and avoid human rights violations. MUFG promotes the respect for human rights by responding in an appropriate manner to known cases where human rights are negatively affected by our suppliers.

8. Remedial Actions

In cases when executives or employees of each group company, or financial products or services provided by them, are confirmed as conducting or being involved in activities which adversely affects human rights, MUFG responds in an appropriate manner and implements remedial actions.

9. Governance and Management System

MUFG Human Rights Policy Statement was discussed by the CSR Committee responsible for environmental and social issues and approved by the Executive Committee.
The CSR Committee regularly reviews the need to update the policy statement and makes amendments as necessary to reflect changes in our business activities and the business environment.

10. Stakeholder Engagement

MUFG is committed to progressing and improving actions to ensure human rights are respected through dialog and consultations on our Human Rights Policy Statement with relevant stakeholders.

MUFG Environmental and Social Policy Frameworkcloseopen
1. Introduction

The international community, aiming at achieving the Sustainable Development Goals (SDGs) and Paris Agreement on climate change, is working towards the protection of the global environment, which is fundamental to the existence of humanity and all living creatures, and the realization of a sustainable society.
As a global provider of financial services, Mitsubishi UFJ Financial Group (hereinafter, MUFG) defines its mission as being committed on a long-term basis to developing lasting relationships with both our clients and society, and promoting shared and sustainable growth for a better world.
In addition, through the financial services we provide we are actively working towards finding solutions to environmental and social issues which also contribute to our sustainable business growth and enhancement of our corporate value.
MUFG recognizes that the environmental and social risks arising from the business activities of each group company are important to our business and require managing appropriately. This Environmental and Social Policy Framework (hereinafter, Framework) has been developed based on the “MUFG Environmental Policy Statement” and “MUFG Human Rights Policy Statement” which establish the basis for our policies for management of environmental and human rights issues respectively. The opinions and perspectives of various stakeholders were taken into consideration in the development of the Framework.
The Framework outlines the approach that MUFG takes in responding appropriately to environmental and social issues in our business activities and contributing to sustainable environmental and social development. Through the adoption of this approach, we expect to contribute to the realization of a sustainable environment and society.
To promote understanding and cooperation regarding our approach, the contents of this Framework is communicated to clients in all of our group companies.

2. Governance

The MUFG Corporate Vision guides the way in which we carry out our business activities. To realize our Corporate Vision, the MUFG Principles of Ethics and Conduct standards have been established which apply to executives and employees of all group companies and guide their everyday decisions and actions. The Framework is based on our Corporate Vision and Principles of Ethics and Conduct.

  1. Positioning of the Environmental and Social Policy Framework
    The Framework is based on the “MUFG Environmental Policy Statement” and “MUFG Human Rights Policy Statement” and is structured to enable the appropriate identification and management of environmental and social risks associated with our business operations. The Framework is aligned with the MUFG reputational risk management framework to avoid negative impacts to MUFG corporate value.
  2. Governance and Management System
    The CSR committee, which reports to the Executive Committee, is responsible for developing appropriate responses to the environmental and social issues relevant to our business.
    Individual transactions with significant environmental and social risks or impacts that have the potential to negative impact on the corporate value of MUFG are assessed for reputational risk, as necessary. Transactions are evaluated with the involvement of executive management, taking into consideration the potential transaction related reputational risks.
  3. Role of Business Group
    Business Groups are responsible for performing environmental and social due diligence to assess the potential environmental and social issues associated with the products and services to be provided. The assessment includes information collected from approaches such as interviews with clients. In implementing environmental and social due diligence, Business Groups consult with the relevant department responsible for management of environmental and social risks.
  4. Management of the Environmental and Social Policy Framework
    The Framework was discussed by the CSR Committee and approved by the Executive Committee. The CSR Committee regularly reviews the need to update the Framework and makes amendments as necessary to reflect changes in our business activities and the business environment.
3. Applicable Products and Services

Products and services provided to clients by each group company include the extension of credit and the underwriting of bonds and stocks (hereinafter, financing). We recognize that the provision of financing may potentially contribute to environmental and social impacts as well as an increase in associated risks.
The Framework applies to new finance in all countries / regions for corporate clients of MUFG's core subsidiaries; MUFG Bank, Mitsubishi UFJ Trust and Banking, and Mitsubishi UFJ Securities Holdings (hereinafter referred to as "Core Subsidiaries"). The Framework is integrated into the internal procedures and standards of each Core Subsidiary.
MUFG Bank also conducts environmental and social due diligence of large-scale projects based on the Equator Principles adopted in 2005.

4. Applicable Transactions

The Framework provides a guideline allowing us to confirm whether corporate clients receiving financing from each Core Subsidiary are fulfilling their social responsibility by demonstrating appropriate consideration of environmental and social issues based on applicable legislation and international best practice.
Taking into consideration the nature and severity of associated environmental and social risks or impacts, MUFG has identified transactions which are "Prohibited from Financing" and where "Financing is Restricted".

  1. Prohibited Transactions
    The transactions listed below are considered as having significant environmental and social risks or impacts. In cases where each Core Subsidiary is aware of the environmental and social risks or impacts, financing is not provided.
    A) Illegal transactions and transactions for illegal purposes
    B) Transactions which violate public order and good morals
    C) Transactions that negatively impact wetlands designated under the Ramsar Convention
    D) Transactions that negatively impact UNESCO designated World Heritage Sites
    E) Transactions violating the Convention on International Trade in Endangered Species of Wild Fauna and Flora (Washington Convention)*
    [* Taking into consideration country specific considerations]
    F) Transactions involving the use of child labor or forced labor
  2. Restricted Transactions
    Restricted transactions consist of cross-sector items and sector specific items.
    For transactions where the conditions listed below may exist, the potential that environmental and social risks or impacts may exist is considered to be high and clients are expected to implement the appropriate environmental and social measures. When each Core Subsidiary is considering providing financing for these transactions, the identification and assessment process for environmental and social risks or impacts will be used to confirm the client's approach to managing environmental and social issues.
    If the environmental and social management approach of client's is not considered sufficient relative to the level of the potential risks or impacts, financing will not be provided.
    (i) Cross-sectoral items
    A) Impact on Indigenous Peoples Communities
    B) Land expropriation leading to involuntary resettlement
    C) Impact on High Conservation Value areas
    (ii) Sector specific items
    A) Coal Fired Power Generation Sector
    Protection of the environment, in particular actions which contribute towards combatting climate change, is one of the most important issues for MUFG in moving towards realizing a sustainable society. We actively provide financing to renewable energy businesses, such as solar and wind power generation, to contribute to providing solutions to environmental issues such as climate change through our business activities.
    We support international initiatives that are aiming to reach the objectives set by the Paris Agreement and support the adoption of advanced technologies for high efficiency power generation which contribute to reducing greenhouse gases emissions and Carbon dioxide Capture and Storage technologies.
    MUFG Bank and Mitsubishi UFJ Trust and Banking refer to international guidelines such as OECD Arrangement on Officially Supported Export Credits, when considering the provision of financing for new coal fired power generation. Decisions on financing are made following recognition of both the local and the international circumstances surrounding coal fired power generation.
    B) Cluster Munitions Manufacturing Sector
    Civilian populations have been greatly affected by cluster munitions as they release many bomblets over a wide area and because of their indiscriminate effect. As a result, their use has generated significant humanitarian concerns internationally.
    In light of the inhumane nature of cluster munitions, Core Subsidiaries prohibit the provision of financing to any company that manufactures cluster munitions.
5. Identification and assessment process for environmental and social risks or impacts

A due diligence process to identify and assess the environmental and social risks or impacts associated with transactions has been introduced.

  1. Standard Due Diligence
    Standard due diligence is implemented by the department in the relevant business division of each Core Subsidiary responsible for communications with the client. The decision regarding categorization of the transaction as a “Prohibited Transaction” or “Restricted Transaction” is made based on available public information and information provided by the client.
  2. Enhanced Due Diligence
    Transactions categorized as “Restricted Transactions”, in addition to standard due diligence, are subject to enhanced due diligence. This is implemented by the department responsible for management of environmental and social risks in each Core Subsidiary. Decisions on financing are made following assessment of the findings of the enhanced due diligence.
  3. Financing Reputational Risk Management Approach
    Transactions assessed as having the potential to have significant negative impacts on the corporate value of MUFG are evaluated with the involvement of executive management.
6. Training
  1. Corporate Training and Education
    Training on environmental and social issues is provided to relevant employees of each Core Subsidiary. The objective of the training is to enhance the understanding of global initiatives to environmental and social issues, as well as the process of confirming the client’s approach towards management of environment and social issues. The training also aims at the spread of ideas supporting the Framework, and the environmental and social due diligence process.
    Specialized training, with the objective of advancing the implementation of the Framework, is provided in divisions responsible for management of environmental and social risks.
  2. Stakeholder Engagement
    Implementation of the Framework includes constructive dialogue with various stakeholders. This dialogue is intended to help identify appropriately environmental and social risks or impacts to which MUFG is to respond and provides information relevant to discussions on revisions to the Framework to increase its effectiveness.

[Disclaimer]
No agency or contractual relationships between MUFG or each of the other group companies and other parties arise from the disclosure and implementation of the Framework. MUFG and other group companies assume no legal obligation, liability or responsibility as a result of such disclosure and implementation.

MUFG Human Resources Principlescloseopen

The MUFG Human Resources Principles serve as the basic policy to enable the Mitsubishi UFJ Financial Group (MUFG) to build a human resources management platform that aligns with MUFG's Corporate Vision.

As we work to create one MUFG globally, the MUFG Human Resources Division has developed these Principles to provide the framework for delivering consistent, industry-leading Human Resources management practices across our entities around the globe.

The goal is for every colleague to experience employment with MUFG in the same way, no matter where they may be located in the world. The MUFG Human Resources Principles provide the foundation for establishing an inclusive, global team.

Shared Values

The MUFG Human Resources Principles will be implemented globally across MUFG in alignment with our shared organizational VALUES:

  • Integrity and Responsibility
    Strive to be fair, transparent, and honest. Always act responsibly in the best interest of customers and society as a whole, building long-term stakeholder relationships and giving back to our communities.
  • Professionalism and Teamwork
    Respect the diversity of our fellow workers and foster a strong spirit of teamwork. Expect the highest levels of professionalism.
  • Challenge Ourselves to Grow
    Adopt a global perspective to anticipate trends and opportunities for growth. Create and sustain a responsive and dynamic workplace where everyone can focus on providing outstanding customer service and embrace new challenges.
HR Mission

The MUFG Human Resources Principles support the achievement of the following HR mission:

  • Create a corporate culture that provides colleagues with opportunities for career growth, challenging them to perform well in a professional environment, where the highest standards of integrity are expected.
  • Appointing the right person to the right job, in the right place to allow each colleague to maximize his/her career potential.
  • Develop talent capable of contributing to the long-term and sustainable growth of our global society.
HR Vision

Be the industry leader in HR management to help MUFG realize its Corporate Vision: Be the world's most trusted financial group.

HR Philosophy

Leverage the following HR philosophies to create consistent HR management practices across all MUFG entities:

Talent Acquisition
Globally attract and recruit diverse talent that share and live OUR VALUES as members of MUFG. Create a strong Employer Brand that fosters recognition of MUFG as an Employer of Choice.

Performance Evaluation
Evaluate performance fairly and objectively, considering not only the goals achieved, but also the competencies demonstrated to get the job done. Recognize the importance of factors, such as customer-centric focus, global mindset, and teamwork, to balancing short-term results with sustained long-term performance. Provide feedback and coaching on an ongoing basis to each colleague to foster ongoing development.

Total Rewards
Reward colleagues competitively and appropriately in alignment with their contributions to MUFG's growth and success - in effect, pay for performance. In addition to colleague performance, rewards will be reflective of the overall stability of the company and the economy.

Talent Management
Assess the capabilities and career path of each colleague to place the right person in the right job, to maximize colleague and MUFG success. Develop strong succession plans and build a pipeline of inclusive leadership to appoint and promote our diverse colleagues from within.

Learning and Development
Provide ongoing learning and development opportunities to help each colleague enhance his/her knowledge, skills and experience and improve his/her capability to impact achievement of the Corporate Vision.

Approach to Purchasing Activitycloseopen

MUFG purchases paper and other materials in accordance with the principles discussed below.

  1. Fair and Honest Selection and Treatment of Suppliers.
    We determine suppliers fairly and honestly based on economic common sense. We do not give special treatment to specific suppliers without any appropriate reasons, nor do we treat any suppliers unfairly.
  2. Compliance with Laws and Social Norms
    When purchasing goods, we comply with all related laws, regulations and rules, and act based on high ethical standards.
  3. Secure Management of Confidential Information
    We securely manage all confidential information about suppliers that we obtain through purchasing activities.
  4. Environmental Considerations
    We consider environmental implications, such as mitigation of global warming and biodiversity protection, when making purchasing decisions. In principle, we only purchase office paper which is produced using appropriate forest management practices and is otherwise manufactured in an eco-friendly manner. We respect companies that have obtained environmental certifications and otherwise try to protect the environment, and work to deepen our partnerships with such companies.
  5. Requesting Cooperation from Suppliers
    We ask that our suppliers maintain fair and sound business practices. This includes respect for basic human rights, compliance with laws and regulations, environmental considerations, and elimination of business with anti-social, corrupt, or criminal elements.
  6. Maintaining Partnerships with Suppliers
    We respect all companies that we do business with as partners, and we strive to maintain relationships of trust and cooperation by treating them with honesty and as equals. We do not use a dominant bargaining position to demand or receive unfair benefits.
Modern Slavery Act 2015closeopen

In accordance with the United Kingdom's Modern Slavery Act 2015 legislation, relevant entities within MUFG have published statements about steps and measures they have taken to ensure there is no slavery or human trafficking in their business and supply chains.

Activities against Cluster Bombscloseopen

Civilian population has been greatly affected by cluster munitions. They release many small bomblets over a wide area and because of their indiscriminate effect, international society express great humanitarian concern over their use. Japanese legislation prohibits the production and possession of cluster bombs in principle. Based on the enactment of the legislation and the spirit of its own Charter and Code of Conduct, the Japanese Bankers Association recognize the responsibility of the banking industry's public role, and agreed not to provide the credit that funds production of cluster munitions, regardless its taking outside of inside of Japan, in October 2010.

MUFG Bank and Mitsubishi UFJ Trust and Banking are full members of the Japanese Bankers Association. Both banks have previously prohibited the provision of credit for the purpose of funding the manufacturing of cluster bombs. Starting December 2017, in light of the inhumane nature of cluster bombs, these banks now prohibit the provision of credit to any company that manufactures cluster bombs, regardless of whether the purpose of the credit is related to cluster bomb manufacturing or not.

Personal Information Protection Policycloseopen

Mitsubishi UFJ Financial Group believes it is the group's social responsibility to handle customer's personal information, Individual Numbers and Specific Personal Information properly under Corporate Vision. The following is our Personal Information Protection Policy. We intend to do our best to protect our customers' personal information, Individual Numbers and Specific Personal Information by ensuring that every executive and employee complies with this Policy.

  1. Mitsubishi UFJ Financial Group will comply with laws and regulations regarding the proper handling of the customers' personal information, Individual Numbers and Specific Personal Information.
  2. Mitsubishi UFJ Financial Group will acquire personal information, Individual Numbers and Specific Personal Information properly. Mitsubishi UFJ Financial Group will notify and/or disclose the purpose of such personal information, Individual Numbers and Specific Personal Information to customers and will not use them beyond the disclosed purpose except as permitted by law. We will use Individual Numbers and Specific Personal Information only within the purpose decided by law.
  3. Mitsubishi UFJ Financial Group will educate all of its executives and employees so that they understand the importance of protecting personal information, Individual Numbers and Specific Personal Information and handle customers' personal information, Individual Numbers and Specific Personal Information properly.
  4. Mitsubishi UFJ Financial Group will take necessary and appropriate measures to ensure the security of personal information, Individual Numbers and Specific Personal Information and will endeavor to prevent improper access to, alteration, loss and/or leakage of personal information.
  5. Mitsubishi UFJ Financial Group will not supply any personal information to third parties (including parties in Mitsubishi UFJ Financial Group) without the prior consent of the individual concerned, except as permitted by law. We will not supply Individual Numbers or Specific Personal Information to third parties (including parties in Mitsubishi UFJ Financial Group), except as permitted by law.
  6. When outsourcing the handling of personal information, Individual Numbers and Specific Personal Information to other institutions, Mitsubishi UFJ Financial Group will monitor the institutions concerned to ensure that appropriate measures are taken to protect customers' personal information, Individual Numbers and Specific Personal Information.
  7. Mitsubishi UFJ Financial Group will establish procedures for correcting and disclosing personal information, Individual Numbers and Specific Personal Information of customers. Mitsubishi UFJ Financial Group is also willing to receive opinions and inquiries regarding the handling of such personal information, Individual Numbers and Specific Personal Information.
  8. Mitsubishi UFJ Financial Group will continually review and improve its management systems to protect personal information, Individual Numbers and Specific Personal Information.

This Policy applies to the handling of personal information, Individual Numbers and Specific Personal Information under Japanese law, particularly Act on the Protection of Personal Information and Act on the Use of Numbers to Identify a Specific Individual in the Administrative Procedure of Japan.

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Governance

Policy for Conflicts of Interest Managementcloseopen

Mitsubishi UFJ Financial Group ("MUFG") and its subsidiaries and affiliates (collectively, "MUFG Group") shall establish the following policy for conflicts of interest management and take all necessary actions to ensure all officers and employees to comply with the policy and not to falsely harm clients' interest and materialize customer-oriented business conduct based on MUFG Basic Policy for Fiduciary Duties.

Chapter 1 Conflicts of Interest

1.Conflicts of Interest

A conflict of interest means the situation where an MUFG Group's client's interest conflicts with MUFG Group's or one MUFG Group's client's interest conflicts with other MUFG Group's clients'.

While such conflicts of interest occur on a day-to-day basis as a result of conglomerations of financial institutions and diversification of financial trading, MUFG Group shall establish appropriate business management and compliance system to prevent adverse effects from conflicts of interest within the Group.

Chapter 2 Conflicts of Interest Management based on Banking Act, Financial Instruments and Exchange Act, and Others

1.Identifying Transactions with Potential Risk of Adverse Effects from Conflicts of Interest

MUFG Group shall identify in advance businesses, which require special management ("Managed Businesses"), from businesses in the following situations. MUFG Group shall intensively manage transactions with potential risk of adverse effects from conflicts of interest in performing the Managed Businesses, taking into consideration reputation risk.

  1. Situations where a client reasonably expects MUFG Group to prioritize the client's best interest (e.g. advisory service)
  2. Situations where MUFG Group could inappropriately benefit in the market using information obtained from transactions with clients
  3. Situations where high reputation risk resulting from transactions between MUFG Group and clients could arise

Examples for Managed Businesses include:
M&A advisory, Securitization of Assets/Receivables, Loan Syndication, Principal Investment, Equity and Debt Underwriting, and Bond Management.

2.Companies with Requirement for Conflicts of Interest Management

MUFG Group companies conducting Managed Businesses shall be required to develop appropriate management system for conflicts of interest.

Examples of companies with requirement for conflicts of interest management include:
MUFG Bank, Ltd., Mitsubishi UFJ Trust and Banking Corporation, Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., kabu.com Securities Co., Ltd., and The Chukyo Bank, Ltd.

3.Management System for Conflicts of Interest

MUFG Group shall centralize the management of conflicts of interest by establishing divisions responsible for management and control of conflicts of interest at each company under a legal duty to establish management system for conflicts of interest.
MUFG Group shall comply with applicable laws and regulations related to conflicts of interest and maintain appropriate management for conflicts of interest.

4.Measures for Management of Conflicts of Interest

With the following measures MUFG Group shall prevent adverse effects from conflicts of interest issues and avoid falsely damaging clients' interest.

  1. Separating a division/company conducting a transaction with potential risk of adverse effects by conflicts of interest from other divisions/companies
  2. Changing the conditions/methods of either/both transactions with potential risk of adverse effects by conflicts of interest
  3. Terminating either one of transactions with potential risk of adverse effects by conflicts of interest
  4. Notifying clients of potential risk of adverse effects by conflicts of interest

Chapter 3 Conflicts of Interest Management based on MUFG Basic Policy for Fiduciary Duties

MUFG Group shall manage conflicts of interest properly with the following items under 4. Provision of line of products to meet customers' diverse needs and 5. Sophistication of investment for the improvement of customers' investment results from MUFG Basic Policy for Fiduciary Duties.

  1. Selection of products that contribute to customers' asset building and provision of sales procedures
  2. Ensuring independence and transparency of investment management

Examples for Managed Businesses include:
MUFG Bank, Ltd., Mitsubishi UFJ Trust and Banking Corporation, Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., Mitsubishi UFJ Morgan Stanley PB Securities Co., Ltd., kabu.com Securities Co., Ltd., Mitsubishi UFJ Kokusai Asset Management Co., Ltd., The Master Trust Bank of Japan, Ltd., and MU Investments Co., Ltd.

Basic Policy regarding Anti-Social Elementscloseopen

MUFG has adopted the following Basic Policy regarding Anti-Social Elements, and our executives and employees are striving to ensure the propriety and safety of all business operations by observing this Basic Policy.

1.Response as an Organization

In relation to anti-social elements, the Company has established the foundation of express provisions in the Principles of Ethics and Conduct and Internal Rules, etc., and will respond as an entire organization, from the top management downward. In addition, the Company will guarantee the safety of employees who would respond to anti-social elements.

2.Cooperation with External Specialist Organizations

Under normal circumstances, the Company endeavors to establish a close cooperative relationship with external specialist organizations such as the police, the Centers for the Elimination of Boryokudan, and lawyers.

3.Blocking of Relationships, including Business Transactions

The Company shall block all relationships with anti-social elements, including business relationships.

4.Civil and Criminal Legal Responses in Times of Emergency

The Company shall reject improper demands from anti-social elements, and take legal actions on both a civil and criminal basis, as the need arises.

5.Prohibition of Secret Deals and Provision of Funds

The Company shall absolutely not engage in secret deals with anti-social elements.
The Company shall absolutely not provide funds to anti-social elements.

Efforts to Prevent Briberycloseopen

In response to the tighten control over anti-bribery in the international community, MUFG has made the development of the necessary rules regarding the support of overseas anti-bribery regulations as one of the important issues. In addition to enacting the "MUFG Anti-Bribery Policy" on a groupwide basis, we are putting in place anti-bribery rules, regulations and procedures for each Group company and stepping up management preparedness. We conduct training and education in an effort to ensure that these measures are well known and to entrench rules.

MUFG Group Disclosure Policycloseopen
  • Purposes

    The purpose of this policy is to ensure that Mitsubishi UFJ Financial Group, Inc. (hereinafter “MUFG” or the “Company) and its subsidiaries (hereinafter collectively referred to as the “MUFG Group”), in the pursuit of corporate growth and greater corporate value, adhere to impartial, fair and appropriate disclosure practices aimed at best serving their depositors, business partners, customers, shareholders, investors and all other stakeholders as well as society as a whole. This policy is also intended to ensure that insights acquired through stakeholder dialogue are appropriately reflected in management activities. Accordingly, policy herein shall define underlying concepts for the MUFG Group with regard to disclosure while specifying procedures and organizational structures for such disclosure.

  • Underlying Concepts

    The MUFG Group’s disclosure shall be governed by the following concepts.

    • Compliance with laws and regulations
      To ensure timely, accurate and appropriate disclosure, the MUFG Group shall comply with Japan’s Financial Instruments and Exchange Act, the Companies Act, the Banking Act and other relevant legal regulations as well as rules stipulated by domestic and overseas securities exchanges in which the Group’s securities are listed and those formulated by related authorities (hereinafter collectively referred to as “regulations and rules”).
    • Transparent and easy-to-understand disclosure
      The MUFG Group shall maintain transparency in its disclosure activities while securing the continuity and consistency of such disclosure. In doing so, the Group shall strive to ensure that information is disclosed in a manner easily understood by all stakeholders. Moreover, the Group will disclose not only that information specified by regulations and rules as being subject to mandatory disclosure but, on a voluntary basis, information deemed significant or beneficial in terms of facilitating stakeholders’ understanding of the MUFG Group.
    • Impartiality and fairness
      The MUFG Group shall disclose important information(note1) to all stakeholders in a timely, impartial, fair and appropriate manner.
    • Constructive stakeholder dialogue
      Striving to maintain constructive dialogue with its stakeholders, the MUFG Group shall facilitate their understanding of its operations while appropriately addressing matters of their concern. In these ways, the MUFG Group shall strive to incorporate insights acquired through such dialogue into management activities, thereby securing sustainable growth for the Group and enhancing its corporate value over the medium and long terms.
    (note1)
    “important information” refers to information that significantly affects the prices of securities issued by the Company and that is specified by regulations and rules as being subject to mandatory disclosure, including finalized, yet undisclosed, financial results for full-year or quarterly fiscal periods.
  • Methods and Media Used for Voluntary Disclosure

    In addition to maintaining disclosure in accordance with regulations and rules, including the timely disclosure rules stipulated by securities exchanges, the MUFG Group shall voluntarily disclose information deemed significant or beneficial in terms of facilitating stakeholders’ understanding of its Group operations. To this end, the Group shall utilize the following methods and media.

    • Issuing integrated reports, annual reports, consolidated summary reports and other disclosure publications
    • Engaging in dialogue at periodic presentation meetings for individual investors, analysts and institutional investors in Japan and overseas
    • Occasionally, holding one-on-one dialogue sessions with particular stakeholders (upon the request of such stakeholders)
  • In-House Structure and Procedures for Disclosing Important Information

    MUFG aims to develop a robust organizational structure to secure the appropriate and accurate disclosure of its corporate information. To this end, the Company has in place “Timely Disclosure Rules,” a set of in-house rules formulated by the Executive Committee based on authorities delegated by the Board of Directors. Designed to govern the disclosure of important information, these rules stipulate the following:

    • Whenever a potential need for disclosing important information is identified, departments in charge of such information shall engage in discussions with the Corporate Administration Division, the Media Relations Office of the Corporate Communications Division and the Financial Planning Division to decide on whether or not to disclose said information. Should these bodies agree to disclose the information, they shall also determine the timing and the detailed content of such disclosure through due consultations.
    • In general, the Corporate Administration Division reports on a biannual basis to the Disclosure Committee, which operates directly under the Executive Committee, thereby ensuring that the Disclosure Committee is apprised of the latest content of the “Timely Disclosure Rules,” upcoming revisions to said rules, the actual status of disclosure based on these rules, including the content and timing of disclosure as well as methods used for such disclosure. These reports also contain information that has not been disclosed and reasons for such non-disclosure.
    • With regard to important information associated with Group subsidiaries, the Corporate Administration Division receives relevant reports from MUFG’s direct subsidiaries via departments in charge of disclosure at these subsidiaries.
    • Notwithstanding the aforementioned procedures, information deemed particularly significant and worthy of being directly reported to the Executive Committee can be directly communicated to said committee prior to or in conjunction with reporting to the Disclosure Committee.

    The Disclosure Committee discusses the content of official reports that require sworn declarations from the Group CEO or CFO as well as management reports on internal control systems associated with financial reporting. Throughout the course of these discussions, the committee determines the propriety of the information being disclosed in these publications and deliberates on the effectiveness of internal control systems and procedures associated with disclosure and financial reporting. The conclusions the Disclosure Committee reaches with regard to important matters are reported to the Board of Directors or the Executive Committee or relayed to these bodies for further approval.

  • Methods for Mandatory Disclosure under Particular Regulations and Rules

    MUFG shall disclose certain information that is designated by the Financial Instruments and Exchange Act as being subject to mandatory disclosure through the Electronic Disclosure for Investors’ NETwork (EDINET), which is run by Japan’s Financial Services Agency. The Company shall also disclose information specified by the Tokyo Stock Exchange’s timely disclosure rules through the exchange’s Timely Disclosure network (TDnet). Similarly, the Company shall disclose information specified under applicable overseas regulations and rules through the methods designated by the relevant securities exchanges and authorities. In general, MUFG shall also post information disclosed via the aforementioned platforms on its corporate website. Furthermore, whenever MUFG issues a public notice as stipulated by the Banking Act, it shall also post the content of such notice on its corporate website as necessary.
    In the course of executing the disclosure practices mentioned above, MUFG shall endeavor to maintain impartial and fair disclosure by, for example, preparing English-language versions of disclosure materials as needed, with an eye to effectively conveying information to stakeholders in both domestic and overseas markets.

  • Disclosure for Capital Market Participants

    In addition to the foregoing, MUFG shall disclose information with a particular focus on the interests of its shareholders, investors, securities analysts, rating agencies and other capital market participants. To ensure that such disclosure is impartial, fair and appropriate, the Company shall give due consideration to the following principles.

    • Constructive dialogue
      MUFG shall engage in constructive dialogue with capital market participants, utilizing such opportunities as presentation meetings and face-to-face dialogue sessions in addition to issuing integrated reports and other publications aimed at facilitating their understanding of the MUFG Group’s strategies and corporate value. The Company shall also strive to secure uniformity of response when dealing with inquiries from capital market participants, especially with regard to frequently asked questions pertaining to financial and other key corporate information. To this end, the Company ensures that officers and employees in charge of holding dialogues will act upon shared policies with regard to responding to inquiries and providing requested explanations.
    • MUFG’s concept of selective disclosure
      Although MUFG holds face-to-face dialogue sessions and small group meetings with particular investors to facilitate their deeper understanding of the Group’s operations, the Company shall not perform selective disclosure in which only a specific group of investors is granted access to important information. Generally speaking, whenever MUFG provides transaction partners(note2) and others with important information that has yet to be publicized, the Company shall post such important information on its corporate website in conjunction with the disclosure to said transaction partners.
      Notwithstanding the foregoing, MUFG may occasionally refrain from publicizing such important information despite disclosure to specific transaction partners provided that said transaction partners are either bound by oaths of confidentiality, obliged to refrain from the sale or purchase of the Company’s securities due to being under contract with MUFG, or under legal obligation to maintain confidentiality or refrain from engaging in such sale or purchase.
    (note2)
    Transaction partners are recipients of important information that fall into any of the following categories: (1) financial instruments business operators, registered financial institutions, credit rating agencies, investment corporations and other entities specified by cabinet office ordinances as well as officers and other key personnel who serve these entities or (2) individuals specified by cabinet office ordinances as being in specific positions at listed companies that enable them to acquire important information in the course of their duties associated with public relations activities for investors and having a significant probability of selling or purchasing securities issued by these listed companies based on investment decisions that take advantage of such important information.

(As of July 2018)

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