Page 5 - MUFG Corporate Social Responsibility Report 2019

Environmental Stewardship
GROWING RESILIENCE—ENVIRONMENTAL STEWARDSHIP AT MUFG AMERICAS
At MUFG, we recognize that protecting our precious natural resources is vital to the health, well-being, and prosperity of entire populations, nations, and even the global corporate sector. We view this as an internal imperative, within our global company and subsidiaries, and an external imperative to drive us toward a low- carbon and greener future in our own operations as
well as for our clients. We exist as part of an ecosystem comprised of stakeholders, which includes clients, institutional investors, parent company shareholders and bondholders, colleagues, and the communities where we and, increasingly, our clients operate.
In June 2020, we expanded our commitment to sustainability in welcoming Dr. Tobi Petrocelli as Director of Environmental Stewardship, MUFG Americas. We
will continue to support climate solutions by following industry best practices in sustainability, improving our own operational performance, and collaborating with multiple stakeholders to advance innovation.
Collectively, we will all benefit from the mitigation of
and adaptation to climate change through supporting areas such as renewable energy, energy efficiency, green affordable housing, mass-transit systems, agricultural operations that conserve natural resources, and public water infrastructure. Our dedication to environmental stewardship is aimed at helping society build toward a more equitable, low-carbon future.
Our Approach
At MUFG Americas, sustainability means conducting business in a way that seeks to meet the needs of the present without compromising the ability of future generations to meet later needs. Key to this approach is managing risks to our natural environment, our business, and other risks relevant to our broad set of stakeholders.
In May 2019, MUFG committed to achieving a cumulative total of approximately Y20 trillion (about $180 billion) in sustainable finance globally between FY2019 and FY2030.
With this money, we aim to help build a sustainable society and meet the United Nations’ (UN’s) Sustainable Development Goals through the provision of financial services to our clients. Forty percent of this amount is specifically earmarked for the environment.
To help guide environmentally responsible financing in our lines of business, we are a member of the Taskforce on Climate-Related Financial Disclosures and a signatory of the Equator Principles. The Equator Principles recently recognized MUFG for going “above and beyond” as a result of the bank’s work on the recent revision of the Principles, the environmental and social risk management framework for project finance that is based on World Bank standards and has been adopted by more than 100 financial institutions in 38 countries. MUFG has been a member of the Equator Principles since 2005 and is on the Steering Committee. We ensure compliance with internal experts and as required through third-party experts. Relevant data and implementation reporting can be found on our website.
Environmental and Social Risk Management
MUFG revised its global Environmental and Social Policy Framework in 2020 to tighten our policy on certain large projects, including restrictions on financing for Arctic development, oil sands, and large hydropower projects, adding to the existing policies of no longer financing new coal-fired power plants, limiting certain coal-mining projects, and requiring international certifications for forestry and agribusiness clients announced in 2019.
MUFG regards climate change as a top risk across our enterprise. As a member of the Taskforce on Climate- Related Financial Disclosures, MUFG has been a part
of the pilot project with the UN Environment Program Finance Initiative since summer 2019 to develop the methodology used to measure the impacts of the physical and transition risks posed by climate change within lending portfolios. In 2020, MUFG announced the results of its initial scenario analysis of climate impacts attributable to clients in our loan portfolio, starting with the energy and power utility sectors.
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