Mitsubishi UFJ Financial Group, Inc.

Climate Impact & Sustainability Data (2021-04 to 2022-03, NOV 2020-JUN 2021)

Reporting Period: 2021-04 to 2022-03

Environmental Metrics

Total Carbon Emissions:249,000 tons (Scope 1 & 2, FY2021)

Scope 1 Emissions:35,000 tons (FY2021)

Scope 2 Emissions:214,000 tons (FY2021)

Renewable Energy Share:100% (domestic electricity contracts, June 2022)

ESG Focus Areas

Climate Change Measures & Environmental Protection
Response to Aging Population & Low Birthrate
Inclusion & Diversity
Developing Social Infrastructure
Supporting Industrial Development & Innovation
Ensuring Equal Access to Financial Services
Promoting Workstyle Reforms
Response to Poverty
Reduction of Educational Disparities
Overcoming Threats to Health

Environmental Achievements

Completely shifted to 100% renewable energy for electricity procured in Japan
Reduced domestic emissions by approximately 60% (approximately 30% of global emissions) since May 2021
Reduction of CO2 emissions from FY 2019 to FY 2021 was 26.83 million tCO2
Set interim targets for 2030 for the power and oil & gas sectors
Set corporate finance target to reduce the credit balance to zero by fiscal 2040 for coal-fired power generation

Social Achievements

Achieved fiscal 2023 target of raising the ratio of women in management to 18.0% ahead of schedule, upwardly revised the target to 20.0% in fiscal 2022
Held MUFG Way Integration Sessions with more than 50,000 employees
Offered Job Challenge program with 773 applicants in FY2021
Provided approximately ¥3,090 million in education and training expenses, including approximately ¥540 million for digital literacy training
Supported several Kodomo Shokudo (volunteer-run cafeterias) through monetary and food donations

Governance Achievements

Revised executive compensation system to include a heightened metric for ESG-related external ratings as a medium- to long-term performance-linked indicator
Included climate change-related risks in the Risk Appetite Statement
Strengthened and revised policies for climate-related sectors (palm oil, mining (coal), and oil and gas sectors)

Climate Goals & Targets

Long-term Goals:

Achieve net zero GHG emissions from financed portfolio by 2050

Medium-term Goals:

Achieve net zero GHG emissions from own operations by 2030
Achieve 35 trillion yen in sustainable finance by 2030
Reduce the balance of corporate finance for coal-fired power generation to zero by FY2040

Short-term Goals:

Achieve 20% ratio of women in management by March 2024

Environmental Challenges

Aging population and low birthrate
Climate change and environmental conservation
Supply chain disruptions
Data limitations in ESG reporting

Mitigation Strategies

Developed channels to make access to services easier for elderly customers
Announced MUFG Carbon Neutrality Declaration, aiming for net zero GHG emissions from the financed portfolio by 2050 and net zero GHG emissions from own operations by 2030
Engaged with approximately 550 domestic and foreign clients on decarbonization efforts
Established the Sustainable Business Division to promote businesses that help solve environmental and social issues
Improved data quality and transparency in ESG reporting

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

Extreme weather causing damage to assets and supply chain disruptions
Floods causing damage to assets and operations

Transition Risks

Government policies, regulatory requirements, and technological developments negatively impacting business activities
Market volatility due to transition to decarbonized society

Opportunities

Increased business opportunities in sustainable finance and decarbonization solutions

Reporting Standards

Frameworks Used: TCFD, GRI Standards, United Nations Global Compact, SASB Standards, ISO26000

Sustainable Products & Innovation

Sustainable finance products and services

Awards & Recognition

2021 PFI Global ESG Deal of the Year

Reporting Period: NOV 2020-JUN 2021