MUFG; Green Finance Framework | Mitsubishi UFJ Financial Group

In March 2024, MUFG has established a Green Finance Framework aiming for the funds related to the construction of MUFG Headquarters Building（PDF / 619KB）. MUFG has obtained a second party opinion from Japan Credit Rating Agency, Ltd. (JCR), with respect to the framework and its alignment with the "Green Bond Principle^(note1)" published by the International Capital Market Association and the "Green Loan Principles^(note2)" published by the Loan Market Association, the Asia-Pacific Loan Market Association, and the Loan Syndications and Trading Association

This is a voluntary guideline formulated by the International Capital Market Association (ICMA) to promote the transparency, disclosure, and reporting of green, social, and sustainability bonds and to promote market order. For more information, please refer to the official ICMA web site.
This is a voluntary guideline formulated by the Loan Market Association (LMA), the Asia Pacific Loan Market Association (APLMA), and the Loan Syndications and Trading Association (LSTA) on green loan borrowings. For more information, please refer to the official websites of each institution.

Use of Proceeds

The proceeds of green finance will be allocated to the financing or refinancing, meeting the eligibility criteria below, for the funds related to the construction of MUFG Headquarters Building.

Green Buildings (Environment Objectives：Climate Change Mitigation)

The eligible green buildings are the buildings which have received or will receive at least one of the following certifications^(note3) within last 36 months preceding the green finance execution, or the buildings for which at least one of the following certifications is still valid and which were completed to construct within last 36 months preceding the green finance execution.

(note3)

LEED:Platinum or Gold

CASBEE:Rank S or Rank A

ZEB Certification:ZEB, Nearly ZEB, ZEB Ready or ZEB Oriented

Process for Project Selection and Evaluation

With regards to the process for project selection and evaluation, Corporate Administration Division of MUFG confirms to align with the eligibility criteria, and the final decision for the eligibility selection and evaluation will be made by MUFG’s Office of the CFO, Financial Planning Division.Also, following the relevant laws and international practices, MUFG considers the potentially negative environmental and social impacts on the candidate projects.

Management of Proceeds

MUFG will monitor and track the allocation of proceeds to eligible green projects using MUFG Bank's internal expenses and investments management system at least annually.

While the finance will be executed by MUFG, proceeds will be loaned to MUFG Bank, a wholly-owned subsidiary of MUFG. As soon as MUFG receives the proceeds of the finance, MUFG will remit an amount equivalent to the proceeds to MUFG Bank, based on a loan agreement made between MUFG and MUFG Bank. Pending allocation of an amount equal to the net proceeds to eligible green projects, MUFG Bank is expected to manage and hold an amount equal to any unallocated balance of such net proceeds in cash, cash equivalents or highly secured and liquid securities such as short-term financial assets.

Reporting

Allocation Reporting

MUFG has confirmed that it will, at least annually until full allocation and in a timely manner, in case of material developments, provide information on below:

Allocation of green finance proceeds
Amount of unallocated proceeds and planned allocation period
In case of refinancing, the ratio of financing and refinancing

MUFG will disclose the allocation reporting on the MUFG's website (in case of the loans, MUFG will report to the lender) within three months (by June), from the fiscal year end of March.

Impact Reporting

MUFG has confirmed to publishing an impact reporting on MUFG's website (in case of the loans, MUFG will report to the lender) annually, while the finance proceeds remain, to the extent practicable, containing the following impact metrics:

(Before the completion of construction) CO₂ emission reduction in MUFG Headquarters Building
(After the completion of construction) CO₂ emission in MUFG Headquarters Building
Status of receiving green building certifications (when the certifications have been provided, or will be provided, and the type / level of the certifications)

(As of March 2024)

Green, Social, and Sustainability Bonds