MUFG Bank's response to BankTrack report on Equator banks
We implemented MUFG Environmental and Social Policy Framework to manage environmental and social risks associated with our financing. Concerning coal-fired power generation, mining (coal), oil and gas, and other specific sectors in which concerns are raised over environmental and social impacts, including climate change, we have established our finance policy and introduced a due diligence process to identify and assess the environmental and social risks or impacts associated with transactions.
If the environmental and social management approach of client's is not considered sufficient relative to the level of the potential risks or impacts, financing will not be provided. Our Sustainability Committee regularly reviews the need to update our finance policy and makes amendments as necessary to reflect changes in our business activities and the business environment.
As a financial institution, MUFG recognizes the importance of supporting climate change measures and the transition to a decarbonized society. As part of its efforts to address climate change through financial business, MUFG announced a target of providing a cumulative 35 trillion yen in sustainable finance by 2030. We intend to commit 18 trillion yen of finance in the environmental field, including initiatives to counter climate change that will lead to the reduction of greenhouse gas emissions and the conservation of the global environment.
We promote renewable energy through project finance, etc., issue MUFG Green Bonds, which ensure that the net proceeds are allocated to the Eligible Green Projects, provide commodities and services aimed at mitigating environmental loads, encourage the climate change countermeasure consulting business and so on. By doing so, we support the transition to a decarbonized society.
Through these efforts, we will contribute to the achievement of international goals including as the SDGs and the Paris Agreement.