Respecting Human Rights

MUFG understands that our business activities may cause or contribute to adverse impacts on human rights or be directly linked to them through business relationships, and that it is expected to promote and encourage responsible corporate behavior by our business partners through engagement activities. We will strive to prevent adverse impacts on human rights, and if adverse impacts occur, we will endeavor to address the adverse impacts in accordance with the forms of involvement described in ① through ③below.

Under the "MUFG Way" which articulates the values that guide all we act, "Committed to empowering a brighter future." is our Purpose set forth, and we are working to provide solutions to our respective customers, the society, and all other stakeholders. MUFG Human Rights Policy Statement is based on MUFG Group Code of Conduct, established under the MUFG Way, and pledges to respect human rights in our business activities. Under MUFG Human Rights Policy Statement, we have established various guidelines, policies and rules to respect for human rights.

Based on its Human Rights Policy Statement, MUFG is working to disseminate the policy to each stakeholder in order to fulfill its responsibility to respect human rights in all business activities. We believe that it is important for all employees to mutually share the importance of respecting human rights with each stakeholder by understanding the content of our Human Rights Policy Statement and putting it into action. We will continually make our efforts to disseminate our Human Rights Policy Statement and to work on promoting human rights awareness.

MUFG Group established the Code of Conduct that sets forth the standards on how executives and employees should make decisions and act in day-to-day business activities under the MUFG Way. The Code of Conduct states that we will contribute to the realization of a sustainable society through our efforts to resolve environmental and social issues, including respect for human rights, and we are making our employees aware of the importance of respect for human rights and fostering their awareness. 

The Bank, the Trust Bank and the Securities have established a human rights awareness promotion system indicated as below, and in addition to conducting trainings and other activities, promotion staff assigned to each department, office and branch, and designated persons are responsible for promoting and developing MUFG Group-wide efforts to respect human rights. We strive to further deepen each employee’s correct understanding and awareness of Human Rights Policy Statement and human rights issues by providing awareness lectures to all employees through trainings for new recruits and each hierarchy of employees, etc.

We conduct trainings for relationship managers of business divisions in our major subsidiaries to deepen their understanding of MUFG Environmental and Social Policy Framework, which is based on our Environmental Policy and Human Rights Policy Statement, as well as our efforts to address global environmental and social issues.

Based on the idea of the Environmental Policy and Human Rights Policy Statement, MUFG established its “Approach to Purchasing Activity” and encourages suppliers to respect human rights. In accordance with the “Approach to Purchasing Activity,” the Bank, the Trust Bank and the Securities hand deliver and explain the “Guidelines for Purchasing Activity” to their suppliers^(note), seeking their understanding of MUFG’s policy.

The Sustainability Committee, chaired by the Group CSuO (Chief Sustainability Officer), deliberates on measures and policies related to respect for human rights based on the MUFG Human Rights Policy Statement and other important matters related to human rights. The results of the Sustainability Committee's deliberations are reported to and supervised by the Board of Directors. Based on the discussions of the Board of Directors and the Sustainability Committee, the resources necessary to ensure effective respect for and protection of human rights are appropriately allocated to the relevant departments. The MUFG Human Rights Policy Statement, MUFG's basic policy on human rights, is established and reviewed by the Board of Directors.

To enhance our capability of human rights, Mr. Shinichi Takasaki, Director of the ILO Office for Japan, was invited to give a lecture on changes in the external environment affecting “business and human rights” and how this relates to improving corporate value. His lecture was accompanied by a discussion with the CHRO and CSuO on how financial institutions should approach respect for human rights along with the future outlook and issues.

MUFG engages in human rights due diligence by respecting the United Nations Guiding Principles on Business and Human Rights and the OECD Due Diligence Guidance for Responsible Business Conduct (hereinafter "OECD Guidance"). We also continuously review our human rights policies and initiatives based on lessons learned through communication with stakeholders and remedy efforts.

We identified salient human rights issues highly relevant to MUFG, assessed their severity and likelihood of occurrence, and created a human rights issues map (FY2023). Based on the results, the Sustainability Committee discussed future policies for addressing salient human rights issues. We are continually considering ways to strengthen our response, giving priority to the highly severe human rights issues. This map of human rights issues will be reviewed on an ongoing basis in light of changes in the business environment and the results of stakeholder engagement.

^{1. Working hours, wages, industrial safety and health, treatment of migrant workers, etc.　2. Health of nearby residents, land issues, etc.}

MUFG conducts ongoing due diligence on human rights issues concerning various stakeholders, including customers and employees. Relevant departments verify and discuss the outcomes of this due diligence, after which we carry out mitigation measures to overcome human rights issues.

● Prevention of Discrimination and Harassment

MUFG Group companies have established consultation desks for sexual harassment and power harassment to provide consultation services through various means, including meetings, telephone calls, e-mails, etc., in order to create a positive, safe and comfortable work environment. The Bank has established the Harassment Prevention Manual which presents types of harassment, precautions and guidelines as how to respond when harassment occurs, to deepen each employee’s correct understanding and awareness. Furthermore, the Bank conducts ongoing trainings to prevent harassment.

● Respect for Freedom of Association and Collective Bargaining Rights

MUFG is committed to respecting workers’ freedom of association and collective bargaining rights in accordance with its Human Rights Policy Statement, and ensures its compliance through awareness-raising activities. In the Bank, the Trust Bank, and the Securities, employee unions are organized in each company, and the company and the union regularly discuss various topics while respecting each other’s perspective and view.

● Protection of Employees’ Personal Information

At MUFG, each company is committed to the appropriate protection and use of employees' personal information in accordance with the "Act on the Protection of Personal Information" and the "Act on the Use of Number to Identify Specific Individuals in Administrative Procedures", and other relevant laws and regulations. The Bank, the Trust Bank, and the Securities established polices and regulations regarding handling and protection of employee information at each company, and are making efforts to continuously raise awareness among employees regarding handling of employee information and other related matters. 

● Compliance with Laws and Regulations Related to Working Conditions

MUFG Group companies comply with the laws and regulations of the countries and regions in which they operate, and provide salaries exceeding minimum wage and fully implement the concept of equal pay for equal work. Each company is also compliant with the Act to Promote Work Style Reform that came into effect in April 2019, conducting monitoring that includes whether there are violations of 36 Agreement on overtime work and minimum wage, and the number of work-related accidents.

● Reducing Overtime

MUFG complies with the laws and regulations of the countries and regions in which our group companies operate in respect of further improving the workplace environment, including the reduction of long working hours while ensuring that our employees can stay healthy and improve their work-life balance. For example, in Japan, in addition to accurately ascertaining each employee’s work status, management operates with an awareness of limits set on working hours and the intervals within which employees work. Overtime hours for employees are also being reduced by optimizing operations through the use of RPA (robotic process automation), setting target times for leaving the office, and establishing early finish days.

● Concept for Human Capital Management

● Driving DEI 

● Health and Productivity Management

● Management of Our Customers’ Information

Since MUFG believes it is our social responsibility to handle customers' personal information properly, we established and published the Personal Information Protection Policy. In addition, in order to realize a unified management system within the Group companies, we have established the “MUFG Personal Information Protection Principle” (the “Principle”) and each Group company has established its own “Personal Information Protection Procedure”, etc. based on the Principle. The management methods for organizational, human, technical, and physical safety control measures are clarified in the relevant principles and procedures of each company, and regular education and training are provided to employees. We strive to protect and respect the privacy of our customers by continuously strengthening our information management system while keeping abreast of the ever-changing external environment and continuously reviewing related regulations and training programs. In addition to internal information management, we have prepared a system to check whether the information is managed by outside contractors in accordance with the Personal Information Protection Law and other relevant laws.

● Identifying Human Rights Impacts in the Planning and Development of Products and Services and The Publication of Advertising Materials

Group companies constantly check whether sufficient measures have been taken at the planning and development stages of products and services from the “customer’s perspective,” and risk assessments are conducted for new products and services, including customer protection and the customer’s viewpoint.  When publishing advertising materials, we check for problematic expressions from the perspective of respect for human rights. We give full consideration to diversity and strive to ensure that our expressions are inclusive.

● Combating Financial Crimes

MUFG is committed to supporting the financial system and combating financial crimes, including money laundering and financing of terrorism, economic sanctions and bribery and corruption.

To that end, MUFG maintains compliance and risk management frameworks incorporating processes for the identification, assessment, treatment, and monitoring of customers for financial crimes risks, including criminal or unethical activities, such as human rights abuses.

● Considerations about Human Rights in Establishing AI Management Procedures

AI technologies are valuable and should be leveraged, but we also acknowledge the risks that they may pose to human rights. That includes issues of fairness that must be avoided when having AI make decisions, as AI may judge based on the gender, race, or other personal attributes of the subjects involved. Aware of those risks, each company in the MUFG Group has defined rules in that regard. For example, MUFG Bank has established AI Management Procedures that ensure fairness when AI is used in credit screening process, customer service chatbots, and other processes in which certain information should not be used as decision criteria.

● Universal Support
MUFG is committed to introducing universal design in both software and hardware aspects to ensure that all customers can use our services with peace of mind, including customer service that takes all customers into consideration (hospitality) and safe and secure branch facilities (facilities).

● Initiatives to Ensure Equal Access to Financial Services

In the Asian region, ensuring equal access to financial services is a challenge due to the lack of bank branches and ATMs in remote and rural areas, and ignorance of the existence and use of available services. MUFG contributes to ensuring equal access to financial services in Asia by providing opportunities to access financial services and working to improve financial literacy.

MUFG recognizes that the environmental and social risks arising from the business activities of each group company are important management issue to be addressed appropriately. Based on this recognition, we established MUFG Environmental and Social Policy Framework in 2018 as a framework to cease, prevent, and mitigate adverse impacts on environment and society, including human rights issues, in the process of providing financing for corporate customers. MUFG Environmental and Social Policy Framework is regularly deliberated at the Sustainability Committee for its revision, and is revised as necessary based on changes in business activities, business environment, and dialogue with stakeholders, and to comply with state and local laws.

In addition, large-scale infrastructure development, resource development, etc. may have adverse impacts on the project sites and the surrounding communities and natural environment. In accordance with the Equator Principles, the Bank identifies risks and impacts on the environment and society, including the status of human rights considerations in the business of the borrowers and confirms the mitigation measures taken by them.

MUFG recognizes child labor, forced labor, and human trafficking as highly severe human rights issues and has designated them as prohibited transactions in MUFG Environmental and Social Policy Framework. MUFG conducts due diligence when considering financing, and makes the credit decision after confirming whether or not the transactions fall under prohibited transactions. In addition, MUFG will perform regular screening on its borrowers/investees for any issue related to child labor, forced labor, and human trafficking, and if such highly severe human rights issue is identified, MUFG will request borrowers/investees to take corrective actions and prevent its recurrence.

MUFG’s business activities are supported by diverse suppliers, and we recognize that there is a risk that our procurement activities may have an adverse impact on the employees of our suppliers^(note1), the environment, and society. We are committed to respecting human rights in our supply chain through the revision of “Approach to Purchasing Activity” and the implementation of human rights due diligence.

We are committed to respecting human rights in our supply chain through the implementation of human rights due diligence.

MUFG Asset Management (“MUFG AM”^(note)) is committed to providing investment returns to our clients, and is taking actions that promote sustainable value enhancement and provide solutions to environmental and social issues faced by investees through our stewardship activities. Based on our Sustainable Investing Policy, we enable investees to address issues they are facing through our stewardship activities and continue to strengthen our support structure efforts.

MUFG actively promotes a constructive dialogue with various stakeholders in order to deepen mutual understanding towards respect for human rights. In particular, we believe that a dialogue with stakeholders which may have human rights impacts through MUFG's business is an important element in achieving respect for human rights. We will strive to build a relationship of trust and collaboration with stakeholders by responding appropriately to their concerns, issues, and opinions, which will lead to MUFG's sustainable growth and improvement of corporate value over the medium to long term.

MUFG has established remedial contact points for employees, customers, and other stakeholders, and responds appropriately to comments and complaints on matters including human rights issues.

"Compliance Helpline" and consultation service for issues such as sexual and power harassment are established at each Group company to ensure a pleasant and positive working environment. It responds to reports submitted in-person or via phone, email, etc., while considering the individual's anonymity and privacy.

MUFG has established a system to appropriately respond to opinions and complaints, including human rights issues, from customers and other stakeholders, while ensuring confidentiality and anonymity. If it becomes clear that employees of group companies, or the products or services we provide, are causing, contributing to, or directly linked to adverse human rights impacts, we will work to remediate the situation. In FY2023, there were 195 cases in which services were improved based on feedback and requests received from customers to the five group companies^(note1).

In 2023, MUFG had joined in Japan Center for Engagement and Remedy on Business and Human Rights (JaCER). JaCER is an organization that receives reports of grievances related to human rights through the "Engagement and Remedy Platform" and aims to act in a professional capacity to support and promote remediation of grievances by member companies. By utilizing JaCER platform, MUFG established a remedial contact points for adverse human rights impacts that occur throughout the value chain, including employees of borrowers/investees and suppliers, as well as community and neighborhood residents, and making an effort to improve our grievance mechanisms.