Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic infrastructure
• Place-based regeneration
• Social infrastructure
• Retrofitting existing buildings
• Optimising existing built environment
• Net zero emissions
• Sustainability
• Environmental enhancement
• Climate change adaptation
• Levelling up
• Biodiversity

Environmental Achievements

• Delivered £1.7 billion efficiencies by 2020 (Government Construction Strategy)
• Progress against the presumption in favour of offsite construction, exemplified in the prisons building programme
• Development and ongoing implementation of the Construction Playbook to support better informed contracting with the private sector
• Progress on the presumption in favour of offsite construction in various government departments (Health, Education, Transport, Justice, Defence)
• BT achieved an 18.6% reduction in carbon emissions through energy model of network

Social Achievements

• Launched Project Outcome Profile tool to align projects with government priorities
• One Public Estate programme maximises local benefits through joint investment and planning
• Local Government Scholarships for project leaders to attend Government Projects Academy
• Improved workplace safety through MMC and platform approaches
• Increased diversity in construction workforce through MMC

Governance Achievements

• Resetting the Government’s Major Projects Portfolio
• Increased granularity and breadth of the infrastructure pipeline
• Greater focus on delivery reform through Project Speed
• Improved discipline in project cost estimating
• Implementation of the Construction Playbook
• Implementation of the Information Management Mandate
• Updated IPA Assurance criteria to reflect wider priorities

Climate Goals & Targets

Environmental Challenges

• Siloed approach to infrastructure projects, lack of focus on whole system performance
• Insufficient recognition of local context in built environment interventions
• Inefficient building delivery due to fragmented approaches and lack of standardization
• Lack of certainty, consumer confidence, and investment in retrofitting existing buildings
• Historical preference for adding new infrastructure rather than optimizing existing assets
• Lack of quality data and interoperability for effective optimization
• Structural divide between capital and operational expenditure hindering whole life performance

Mitigation Strategies

• Developing a Built Environment Model to connect outcomes with decisions
• Using the Project Outcome Profile tool to define and track priority outcomes
• Promoting outcome-focused collaborative delivery models
• Implementing the Construction Playbook for better procurement and management
• Developing platform approaches for construction to improve efficiency and inclusivity
• Creating a self-sustaining retrofit market through public-private collaboration
• Improving information management through the Information Management Mandate and digital twins
• Developing a systematic framework for measuring infrastructure performance
• Moving toward outcome-based collaborative delivery models

Supply Chain Management

Responsible Procurement

• Construction Playbook policies
• Fair payment practices
• Market health and capability assessments

Climate-Related Risks & Opportunities

Physical Risks

• Climate impacts
• Flood risk

Opportunities

• Green jobs
• Retrofit market
• Energy efficiency improvements

Reporting Standards

Frameworks Used: UN Sustainable Development Goals

Sustainable Products & Innovation

• Modern Methods of Construction (MMC)
• Platform approaches
• Lower carbon construction materials

Environmental Metrics

ESG Focus Areas

• Climate change measures & environmental protection
• Corporate transformation
• Response to aging population & low birthrate
• Digital transformation (DX)
• Transforming our corporate culture
• Supporting industrial development & innovation
• Inclusion & diversity
• Reduction of educational disparities
• Contributing to resolving environmental and social issues
• Developing social infrastructure
• Ensuring equal access to financial services
• Response to poverty
• Promoting workstyle reforms
• Overcoming threats to health

Environmental Achievements

• Reduced domestic GHG emissions by approximately 60% (approximately 30% of global GHG emissions) since the Carbon Neutrality Declaration in May 2021.
• Completely shifted to 100% renewable energy for electricity procured domestically by the Bank, the Trust Bank, and the Securities HD by November 2021.
• Set interim targets for 2030 for GHG emission intensity in the power sector and absolute GHG emissions in the oil & gas sector, aligned with the Paris Agreement and the IEA scenarios.

Social Achievements

• Launched various initiatives to support customers' decarbonization, including GHG emission visualization support, strategy development support, and TCFD consulting service.
• Provided positive impact finance to Mitsubishi Heavy Industries, Ltd.
• Supported the introduction of fuel cell buses in Tokyo and Osaka.

Governance Achievements

• Joined the Net Zero Banking Alliance (NZBA) and appointed Chair of the Financing & Engagement working group.
• Joined the Net Zero Asset Managers initiative (NZAM).
• Revised the MUFG Environmental and Social Policy Framework, including prohibition of financing to new thermal coal mining projects for power generation.

Climate Goals & Targets

Environmental Challenges

• Limited data availability and quality for calculating financed emissions.
• Varied processes for achieving carbon neutrality targets depending on regional and business characteristics.
• Geopolitical risks and other factors affecting business.

Mitigation Strategies

• Using the best available data and multiple data sources (CDP, Bloomberg, IEA database, etc.).
• Setting ranged interim targets to work with stakeholders.
• Engaging with customers to understand their challenges and support their decarbonization efforts.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: PCAF, SBTi, PACTA, TCFD, GHG Protocol

Certifications: CASBEE S rank (Nagoya Building), BELS/ZEB certifications (planned for MUFG Park’s two new buildings)

Awards & Recognition

• Gold award in the Banking Category (MUFG Bank) at the Third ESG Finance Awards Japan
• Silver Award in the Financial Service Category (Securities Division) at the Third ESG Finance Awards Japan
• Selected as an Environmental Sustainable Company at the Third ESG Finance Awards Japan

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Increased competition from international outbound travel
• Cost-of-living pressures leading to reduced discretionary spending
• Global economic headwinds
• Elevated inflation leading to higher travel costs and tighter household budgets
• Negative consumer sentiment towards long-haul flights
• Regulatory and reporting requirements for businesses affecting international business travel
• Prolonged weak global economic outlook
• Larger than expected impact from efforts to reduce carbon emissions in aviation
• Significantly greater than expected cost pressures facing airlines
• Risk of intensified global conflict disrupting air travel
• Household budget pressures
• Increasingly large, uncontrolled, unpredictable and damaging weather events

Mitigation Strategies

• Effective marketing to stimulate domestic travel demand
• Innovation and adaptation in the sector to align with consumer trends
• Continued investment in the sector
• Easing in tourism sector workforce shortages
• Increase in affordable domestic aviation links

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Increasingly large, uncontrolled, unpredictable and damaging weather events

Transition Risks

• Global efforts to combat climate change and reduce carbon emissions
• Negative consumer sentiment towards long-haul flights

Environmental Metrics

ESG Focus Areas

• Energy Transition
• Climate Change Mitigation
• Renewable Energy

Environmental Achievements

• Fossil fuel dependency reached a record low in the third quarter of 2024, decreasing from 75.3 per cent last year to 71.8 per cent.
• Low carbon generation maintained its near record high of 68.2 per cent of all electricity generation.
• Renewable electricity generation grew 7 per cent on the same period last year.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Total energy production in the third quarter of 2024 was at a record low, down 4 per cent on the third quarter last year with oil at a record low and gas at a near record low.
• Energy production is 24 per cent below the pre-pandemic level recorded in the third quarter of 2019.
• Fossil fuel electricity generation decreased, down 29 per cent and another near record low because of stronger renewable generation and higher net imports from France reducing the need for domestic generation.

Mitigation Strategies

• Increased electricity imports.
• Continued investment in renewable energy capacity (e.g., solar PV, onshore wind).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 13 (Climate Action)

The report's focus on renewable energy and reduction of fossil fuel dependency contributes to these goals.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed