Mitsubishi UFJ Financial Group, Inc.

RATING

SECTOR

Banking

WEBSITE

CONTACT

1251 Avenue of the Americas
New York, NY 10020-1104, USA

Tel: 1-212-782-6800

STOCK EXCHANGE

LISTING

  • Forbes: #386 World’s Best Employers 2019

EMPLOYEES

119,390

CHIEF SUSTAINABILITY OFFICER

Naomi Hayashi

AWARDS

  • 2020 J-Win Diversity Award – CEO Award and 2nd prize in “Advanced Division of Corporate Award
  • Environmental Finance Bond Award 2020 – Lead manager of the year, Social bonds- corporate
  • Tokyo Financial Award 2019 – ESG Investment Category
  • The First ESF Finance Award Japan – Silver award in Financial Service Category
  • Dealwatch Awards 2019 – Bond House of the Year
  • The 2018 Sustainable Finance Award – Gold Bond Award
  • The Japan Green Bond Award Minister of the Environment Prize – Japan Green Impact Category and Japan Green Contributor Category
  • Ninth Career Education Award – Large-Enterprise Category- Encouragement award
  • The Japan Mécénat Awards 2018 – Award For Excellence

CONTENT SOURCE

Report created by William Evans

Mitsubishi UFJ Financial Group, Inc.

SECTIONS :  Sustainability •  Targets     Evaluation   •  Key Points  •  Overview

Company Activity

Mitsubishi UFJ Financial Group is a Japanese bank and financial services company headquartered in Chiyoda, Tokyo, Japan. It is Japan’s largest financial group and one of the main companies of the Mitsubishi Group. In 2004, financial group UFJ holdings offered to merge with the Mitsubishi Tokyo Financial Group to form what it has become today.

Company Sustainability Activity

As the largest financial group in Japan, Mitsubishi UFJ strives to become one of the leaders in ‘Green Finance’ in the near future. MUFG is taking steps as a major financial institution to reinvest into the world and support sustainable growth.

MUFG is involved in arranging and financing projects related to renewable energy projects specifically within the solar and wind power industries. In 2019 MUFG contributed the second most amount of capital into renewable energy projects. MYFG also provides ESG-related financing products like green bonds and in 2019 were the largest and most significant single issuer in Japan.

Highlights

Targets

  • By 2020, reduce electricity use per unit by 10.5% compared to 2009.
  • By 2030, reduce electricity use per unit by 19.0% compared with 1009.
  • Improve waste recycling rate of at least 90% at headquarters buildings in Tokyo, Nagoya, and Osaka.
  • Promote eco-driving while reducing number of sales vehicles, shifting to compact vehicles, and introducing low-emissions vehicles.

Progress

  • Reduced Electricity per unit by 27.9% compared with 2009
  • Reduced about 430 vehicles and shifted to five compact vehicles.
  • Recycling rates over 90% in Tokyo and Nagoya headquarters
  • Reduction of CO2 emissions of 44.1% since 2000.

Certificates

The bank does not disclose any sustainability certificates.

UN Sustainable Development Goals

UN SDGs Compliance

SDG 3: Good Health and Well-Being

  • MUFG offers economic education in addition to developing products specially designed for elderly customers and assisting smooth business succession. 

SDG 4: Quality Education

  • Providing solutions for issues arising from Japan’s rapidly aging population and low birth rate, MUFG offers financial education.

SDG 7: Affordable and Clean Energy

  • MUFG is addressing issues arising from global warming and climate change by promoting and disseminating use of renewable energy.

SDG 8: Decent Work and Economic Growth

  • MUFG engages in financing for growth industries and venture startups while, in developing countries, providing micro financing solutions. They contribute to efforts in Japan to improve productivity by helping employees adopt diverse work styles to strike an optimal balance between work and family duties.

SDG 9: Industry, Innovation and Infrastructure

  • MUFG develops project finance aimed at meeting funding needs for the construction of social infrastructure in developing countries as well as the renewal of aged infrastructure at home and abroad while creating new financial products equipped with coverage for natural disaster damage.

SDG 11: Sustainable Cities and Communities

  • They provide a broader range of the general public with access to financial services by developing and offering diverse financial services.

SDG 13: Climate Action

  • They are ranked among the world’s top finance arrangers of renewable energy projects while contributing to the expansion of the Green Bond market.
 

Evaluation

MUFG has their sustainability targets lined up appropriately for the near future but does not seem to be paving the way as Japan’s largest financial institution. Their contribution to the SDGs as states in their report is not backed with credible data or KPIs.

The company is pushing to become reliant on renewables by 2030 and has lined out goals in order to achieve this objective.

As a financial institution, MUFG is gearing part of its business into putting more resources into renewable forms of energy. They have created financial products that are dedicated to supporting other industries making strides to become more environmentally friendly.

For these reasons, this company has been rated a C. 

Analyst Outlook: Negative

MUFG is ranked 3rd largest lender in the coal industry.

Key Points

  • MUFG donated 500 million yen to the Japanese Red Cross Society to support COVID-19 healthcare and relief efforts
  • Recycling rates over 90% in Tokyo and Nagoya headquarters
  • Established a fund specifically geared to invest into renewable energy 
  • Developed a green/social/sustainability bond framework in 2019 to provide broad support for business that contribute to the idea of creating a sustainable society
  • Ranked 3rd largest lender in the coal industry.
Share this Post