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Sustainable Finance Sustainable Finance

Promoting Sustainable Finance

Sustainable Finance

Sustainable Finance Target and Progress

We have set our accumulated sustainable finance amount as of fiscal year 2030 as a sustainable finance target for solving environmental and social issues.

Our accumulated sustainable finance amount as of fiscal year 2021H1 was ¥10.4 trillion (of which, ¥4.3 trillion is environmental area)(note), and was proceeding steadily towards this target.  

  1. Provisional number as of November 2021

Deinition of Sustainable Finance

The term "Sustainable Finance" refers to the provision of finance for the following businesses (including loans, equity investment in funds, arrangement of project finance and syndicated loans, underwriting of equities and bonds, and financial advisory services) with reference to the relevant external standards (e.g. the Green Loan Principles, Green Bond Principles, and Social Bond Principles).
Environmental Area
  • ●Businesses contributing to the adaptation to and moderation of climate change, including renewable energy, energy efficiency improvement, and green buildings (e.g. arrangement of loans and project finance for renewable energy projects, underwriting and distribution of green bonds).
Social Area
  • ●Businesses contributing to the development of startups, job creation, and poverty alleviation
  • ●Businesses contributing to the energizing of local communities and regional revitalization
  • ●Fundamental service businesses, including those involved in basic infrastructure such as public transport, waterworks, and airports, and essential services such as hospitals, schools and police. (e.g. Emerging Industrial Technology Support Program, loans for regional revitalization projects such as MUFG Regional Revitalization Fund, arrangement of loans and project finance for public infrastructure, underwriting and distribution of social bonds).

Responding to Funds-Supplying Operations to Support Financing for Climate Change Responses
(Climate Response Financing Operations) at the Bank of Japan.

MUFG Bank and Mitsubishi UFJ Trust and Banking have been selected as counterparties of Funds-Supplying Operations to Support Financing for Climate Change Responses (Climate Response Financing Operations)at the Bank of Japan. The following include the criteria for eligible investment or loans for Climate Response Financing Operations by MUFG Bank and MUFG Trust and Banking.
MUFG Trust and Banking Corporation

Products and Services to Support Customers' ESG Efforts

Sustainability Linked Loan

The Sustainability Linked Loan (SLL) is a loan product that sets sustainability performance targets (SPT)(note) based on a customer's ESG strategy, and the terms of the loan change according to the achievement of the targets. MUFG Bank is using this product to support its customers' ESG efforts. MUFG is the second in the Global League Table for sustainable inance, including SLL. We are promoting group-wide initiatives, including a large-scale offshore wind farm and solar power generation, and the establishment of the Sustainability Link Loan in cooperation with Krungsri (Bank of Ayudhya).

  1. Examples of SPT:Medium- to long-term greenhouse gas reduction targets etc.

ESG Management Support Loan / Private Placement Bonds

MUFG Bank offers the ESG management support loan/ private placement bonds, which is an ESG assessment based financing product that supports and assists customers' ESG efforts. The ESG assessment of this product is performed by Mitsubishi UFJ Research and Consulting of the MUFG Group as the service provider and the Japan Credit Rating Agency, which has a track record of certifying green finance, as a support company. The ESG efforts of a customer are assessed and scored based on an independent checklist, and feedback is provided on various issues in order to support the sustainable growth of the customer.
(As of December 2021)