MUFG triples 2030 sustainable finance target to $600 billion due to strong demand

Tokyo-based banking group Mitsubishi UFJ Financial Group (MUFG) today announced a series of sustainability-related initiatives, including raising its 2030 sustainable finance target to 100 trillion yen (US$660 billion), nearly tripling from its previous 35 trillion yen target. ), as well as setting up a new sustainability risk office to manage sustainability risks such as climate change risks across the group.

The new goals and initiatives were announced as part of the release of MUFG's Medium Term Business Plan (MTBP) for the next three-year period. The new business plan positions the Bank's efforts to promote social and environmental progress as one of its 3 key pillars, and aims to integrate these efforts into MUFG's management strategy.

In a statement announcing the release of the new MTBP, MUFG said:

“MUFG has already established priority issues in our sustainability management to realize a sustainable environment and society. We have revised such priority issues taking into account environmental changes, society's expectations and the importance of our business, and integrating such efforts into our business strategies will strengthen our efforts in pursuing social and environmental progress. .

MUFG set its first sustainable finance target in 2019, aiming to provide a total of 20 trillion yen of sustainable finance between 2019 and 2030, including loans, investments, underwriting and financial advisory services. The new goal symbolizes the Second Amendment. The bank had initially raised its target to 35 trillion yen in 2021. The new goal of achieving 100 trillion yen by 2030, which includes targeting 50 trillion environmental issues, comes “due to steady progress and growing demand,” according to MUFG’s newly released climate report. For money.”

The Climate Report also states that the Bank is already getting close to its prior target, with MUFG on track to reach its target of USD 28 trillion by the end of 2023.

According to MUFG, the bank's new sustainability risk office will report directly to the group chief risk officer, and act as a “second line of defence” responsible for managing sustainability-related risks across the group.

MUFG also announced a series of sustainability-related amendments and framework updates, including the need to address climate change, natural capital, circular economy and respect for human rights in an integrated manner in its environmental policy statement, its human rights policy Revising the statement involves. Including the potential impacts of climate change, loss of natural capital, and AI on human rights, a new policy on AI and human rights due diligence, and establishing and updating its policies for human capital management.

MUFG said:

“In an era when social and economic structures are changing dramatically globally, we believe that MUFG’s ability to facilitate connections can be maximized by leveraging its extensive network and diverse solutions. By seizing this opportunity to achieve further growth and realizing our purpose of being “Committed to Empowering a Brighter Future”, we will strive to meet the expectations of our stakeholders.