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1、MUFG Sustainability Report 2024-Addressing Priority Issues-2Contents1Promotion of Sustainability03Positioning in the Medium-Term Business Plan04Sustainability Governance/Governance Structure052Priority Issues:Sustainable Society06Achievement of Carbon Neutral Society07Natural Capital and Biodiversit

2、y Restoration17Promotion of Circular Economy223 Priority Issues:Vibrant Society24Industry Development and Innovation Support25Response to Aging Population&Low Birthrate26Increasing Access to Financial Services27Management Focusing on Human Capital284 Priority Issues:Resilient Society35Respect for Hu

3、man Rights36Ensuring Secure and Safe Services42Demonstration of Robust Corporate Governance43Appendix44This report provides an overview of MUFGs sustainability initiatives for our stakeholders.It summarizes key efforts to tackle priority sustainability issues,based on information previously disclose

4、d on MUFGs website(Sustainability)and in various related reports.For further details,please refer to our website and respective reports.Achievement of Carbon Neutral Society：MUFG Climate Report 2024(Published May 2024)Natural Capital and Biodiversity Restoration：MUFG TNFD Report(Published May 2024)R

5、espect for Human Rights：MUFG Human Rights Report 2024(Published June 2024)3Promotion of Sustainability Positioning in the Medium-Term Business Plan Sustainability Governance/Governance Structure4Priority Issues:Resilient SocietyPriority Issues:Vibrant SocietyPriority Issues:Sustainable SocietyPromot

6、ion of SustainabilityAppendixSustainablesociety1.Achievement of Carbon Neutral Society2.Natural capital and biodiversity restoration3.Promotion of circular economyVibrantsociety1.Industry development and innovation support2.Response to aging population&low birthrate3.Increasing access to financial s

7、ervices4.Management focusing on human capitalResilientsociety1.Respect for human rights2.Ensuring secure and safe services3.Demonstration of robust corporate governancePositioning in the Medium-Term Business Plan MUFG has launched a medium-term business plan covering the next three years from FY2024

8、.We have integrated the contribution to address socialissues into our management strategies and positioned this as one of the three pillars of the medium-term business plan,and will further strengthen ourinitiatives in this area.Pursuing economic and social values is the key to improving corporate v

9、alue.We identified ten priority issues under the subheads“SustainableSociety,”“Vibrant Society,”and“Resilient Society”and set specific targets as KPIs to strongly promote initiatives for solution of social issues.Accelerate Transformation&InnovationExpand&Refine GrowthStrategiesDrive Social&Environm

10、entalProgressKPIsSustainable finance100 tn(total for FY201930)Startup market capitalization20 tn(FY2026)Financial education provided toOver 500k people(total for FY202426)Digital lending provided to14 mn people(FY2026)MUFG engagement scoreImproved5Priority Issues:Resilient SocietyPriority Issues:Vib

11、rant SocietyPriority Issues:Sustainable SocietyPromotion of SustainabilityAppendix Sustainability-related issues are managed by the Executive Committee with various management sub-committees,subject to the oversight of the Boardof Directors.The Sustainability Committee,which is a sub-committee forme

12、d under the Executive Committee and is chaired by the Chief SustainabilityOfficer,regularly deliberates policies on addressing sustainability-related matters,including risks and opportunities arising from such matters,andmonitors the progress on the MUFG Groups measures designed to address such matt

13、ers.The committee reports to the Executive Committee and,asnecessary,reports to the Board of Directors.Three external advisors have been invited to provide expert opinions on sustainability issues and risks at any time.These advisors exchange opinionswith the members of the top managements and other

14、s and provide advice and recommendations from their professional standpoints on MUFGssustainability initiatives.Sustainability Governance/Governance StructureBoard of DirectorsMitsubishi UFJ Financial Group,Inc.Executive CommitteeSustainability CommitteeGroup CompaniesSustainability Committees,etc.S

15、ustainability Office,Corporate Planning Div.Sustainable Business Div.ExternalAdvisorsDepartments in Charge of SustainabilityAdvice/SuggestionsRisk CommitteeCredit and InvestmentManagement CommitteeRisk Management CommitteeCredit CommitteeSupervisionExecutionSustainability Governance StructureChairpe

16、rson:Group CSuO（Chief Sustainability Officer）Members:Group CEO,CSO,CFO,CRO,Heads of Business Groups,Officers in charge at Group companies,etc.Mission:Discuss initiatives aimed at resolving environmental and social issues in order to contribute to environmental and social sustainability and secure su

17、stainable growth for MUFG6Priority Issues:Sustainable Society Achievement of Carbon Neutral Society Natural Capital and Biodiversity Restoration Promotion of Circular Economy7Sustainable SocietyAchievement of Carbon Neutral SocietyPriority Issues:Vibrant SocietyPriority Issues:Resilient SocietyPromo

18、tion of SustainabilityAppendixSustainable Society Achievement of Carbon Neutral Society(1/2)In May 2021,MUFG announced the MUFG Carbon Neutrality Declaration,aiming to become carbon neutral by 2050.To reach carbon neutrality,wehave been pursuing various initiatives based on three unwavering commitme

19、nts:helping achieve the 1.5C target by achieving carbon neutrality by2050,supporting a smooth transition to a decarbonized society,and creating a sustainable society by fostering a virtuous cycle between theenvironment and the economy.Based on the Transition Plan Guidance published by GFANZ,a coalit

20、ion of financial institutions aiming for net zero,in November 2022,MUFG hasdeveloped its own transition plan.We published the“MUFG Climate Report 2024”in April 2024 to showcase the progress and achievements of MUFGs wide-ranging efforts towarddecarbonization,including the content of our transition p

21、lan and our decarbonization approach,to our investors and various stakeholders,.Thefollowing describes our key stance underlying MUFGs actions to address climate change.Carbon neutrality cannot be achieved by financial institutions alone;it is enabled through the carbon neutrality of clients,whichme

22、ans decarbonizing the real economy.To this end,it is crucial to realize steady progress in decarbonizing carbon intensiveindustries and regions through client engagement and support,including transition finance.Decarbonization pathways depend on regional characteristics,such as geographic conditions

23、 and industrial structure.Asia,inparticular,is in the midst of economic development,and its increasing energy demand is expected to continue.It is thereforeimportant to strike a balance between decarbonization and economic development.To both support clients and achieve MUFGs interim target for 2030

24、,proper management for transition support and targetachievement are necessary,and it is important to establish an effective framework to support these activities.MUFGs three unwavering climate change commitmentsHelping achieve the 1.5C target of the Paris Agreement by achieving carbon neutrality by

25、2050Supporting a smooth transition to a decarbonized society through our financial servicesProactively contributing to creating a sustainable society byfostering a virtuous cycle between the environment and the economy123CO2CO28Sustainable SocietyAchievement of Carbon Neutral SocietyPriority Issues:

26、Vibrant SocietyPriority Issues:Resilient SocietyPromotion of SustainabilityAppendixReducing emissions from own operations Roadmap to net zero emissions by 2030 and measures to achievethe interim target for FY2026 Initiatives in the four areas of mobility,office buildings,energy,andresources to reduc

27、e environmental impact Achieving business co-creation through partnership with clients,including through the use of MUFG branches and facilitiesReducing emissions from our financed portfolio Setting 2030 interim targets for the automotive,aviation,and coalsectors to meet commitments under Net Zero B

28、anking Alliance(NZBA)*2guidelines Developing an operating framework for effective management(transition assessment framework,transaction screening process,escalation process,financed emissions monitoring,transition planmonitoring,etc.)FY2022 performance for sectors with interim targets and approacht

29、o achieve 2030 targets31 The key strategies for MUFG to achieve carbon neutrality are:1)reducing emissions from own operations,2)engagement and support,3)reducingemissions from our financed portfolio,and 4)risk management and governance.*1.Green Transformation:Transformation of the entire economic a

30、nd social system to achieve emission reductions and increase industrial competitiveness by viewing efforts to achieve 2050 carbon neutrality and 2030 national GHG emission reduction targets as an opportunity for economic growth.*2.Net-Zero Banking Alliance:Established by the United Nations Environme

31、nt Programme Finance Initiative(UNEP FI)in April 2021,this initiative commits banks to net zero GHG emissions in their financed portfolios by 2050.Engagement and support Promoting engagement in line with our approach to support decarbonization Establishing Green Transformation(GX)*1value chain suppo

32、rt as amain strategy in the new medium term business plan and raisingthe sustainable finance target to 100 trillion yen Building frameworks for transition finance,promoting transition support through the Transition Whitepaper and Asia Transition White Paper,and making policy suggestionsRisk manageme

33、nt and governance Establishing a system to properly manage climate change relatedrisks based on the Risk Appetite Framework and the Top RiskManagement Establishing a governance structure that enables appropriatedecision making through various meetings aimed at achievingcarbon neutrality under the su

34、pervision of the Board of Directors.Conducting capability building for sales teams to strengthen clientengagement42Key points in each strategySustainable Society Achievement of Carbon Neutral Society(2/2)9Sustainable SocietyAchievement of Carbon Neutral SocietyPriority Issues:Vibrant SocietyPriority

35、 Issues:Resilient SocietyPromotion of SustainabilityAppendix Based on the MUFG Carbon Neutral Declaration released in May 2021,we are working to reduce GHG emissions from our own operations to net zero by 2030.In addition to emissions reduction activities such as energy efficiency&conservation and r

36、enewable energy,we will drive forward a wide range of initiativescontributing to resource conservation and recycling through partnerships with MUFG clients,including startup companies.Furthermore,we at MUFG willindependently and proactively engage in these initiatives,thereby strengthening engagemen

37、t with clients and fostering employee awareness.Switch to EV business vehicles Maximize use of renewable energy with solar power and movable storage battery Operate EVs with 100%renewables/increase stores energy selfsufficiency Replace store facilities to improve energy efficiency&conservation Visua

38、lize energy self sufficiency Reuse batteries in the futureResourcesEnergyProcuring renewable energywith additionalityProcuring renewable energyutilizing storage batteriesUtilizing perovskite solar cells*2Improving air conditioningefficiency with wireless powersupply technologyRecycling used cooking

39、oilRecycling grease trap wastefrom cafeterias*3MobilityOffice buildingsSetting energy efficiency&conservation targetsAcquisition of environmentalcertificationsAchieving carbon neutrality for business vehiclesProviding charging facilities to clientsEV energy managementEco friendly branch with energyg

40、eneration and storage facilitiesRefer to figure on the right In addition to in house initiatives,we plan to promote various types of business co creation in partnership with clients There has been steady progress with emissions reduction.Going forward,we aim to achieveour targets through energy effi

41、ciency&conservation,convert electricity contracted by othercompanies to renewable energy and electrification of business vehicles.Measures to reduce environmental impact*includes projects under considerationInterim target and roadmap(Scope 1 and 2)*1.Asian partner banks Krungsri(Bank of Ayudhya)and

42、Bank Danamon are MUFG consolidated subsidiaries in Thailand and Indonesia,respectively*2.A new type of solar cell using materials with a crystalline structure called perovskite*3.Reusing oil and grease collected in cafeteria wastewater systems as biofuel1881056054621481271301213362321901751680国内海外Ja

43、panFY2020ResultsFY2021ResultsFY2022ResultsEY2023ResultsFY2025ResultsFY2026ResultsFY2030Final targetMeasures to reduce environmental impact through partnership with clients In partnership with Hitachi,Ltd.,MUFG is to introduce movable storagebatteries,solar power generation,and EVs at the banks Nerim

44、a Branch as aneco-friendly store and begin demonstration for effectivenessSustainable Society Achievement of Carbon Neutral Society Reducing emissions from own operations(Thousand tCO2e)Overseas10Sustainable SocietyAchievement of Carbon Neutral SocietyPriority Issues:Vibrant SocietyPriority Issues:R

45、esilient SocietyPromotion of SustainabilityAppendix MUFG will continue to identify new needs and issues through the solutions we provide while offering suggestions to policymakers in collaboration withindustries and government agencies.As we deepen our relationships with clients,local governments,an

46、d various industries through management-levelexecutive forums to engage with clients,and through efforts of our newly established specialized engagement team,we provide valuable insights toboth industries and government agencies on emerging needs and issues related to decarbonization.We are here to

47、collaborate with our clients towardsdecarbonization in a responsible manner.Policy suggestions in collaboration with industries and government agenciesContribute to GX policy formulation by collaborating with government agencies and industries through policy engagement1Building frameworks fortransit

48、ion financePromoting blended financingParticipating in initiatives inJapan and overseasTransition WhitepaperActivities for COP28Asia Transition White PaperEnhancing our capability to provide solutions that support clients decarbonization in line with government policies and strategiesStrengthen our

49、capability to provide solutions tailored to each market stage by leveraging the collective strengths of the MUFG Group and collaborating with external partnersGX value chain supportSustainable finance promotionInvestment and innovation projects2Leveraging relationships with clients,local governments

50、,and industry associations to identify new needs and issuesProvide feedback to industries and government agencies on new needs and issues identified through decarbonization support,and link to policy suggestionsExecutive Forum for dialogue with clients from a management standpointSpecialized engagem

51、ent team3Phase 1Confirm our position Explore how MUFG can support clients current activities to achieve net zeroPhase 2Analyze client strategies Organize client strategies and operational issues,along with financing opportunitiesPhase 3Support in developing financing plans Identify financing require

52、ments in line with clients decarbonization plansPhase 4Provide financing Agree pricing and solution designs with clients and execute financing contractsPhase 5Measure effectiveness and check progress Measure effectiveness through progress checks.Support the transition to a decarbonized business mode

53、lEngagement approachSpecific engagement activitiesSustainable Society Achievement of Carbon Neutral Society Engagement and Support(Engagement)11Sustainable SocietyAchievement of Carbon Neutral SocietyPriority Issues:Vibrant SocietyPriority Issues:Resilient SocietyPromotion of SustainabilityAppendix

54、MUFG has identified supporting value chain in Green Transformation(GX)as a key strategy for Expand&Refine Growth Strategies in the new medium-term business plan.We aim to accelerate our clients GX investments by providing solutions for management that go beyond financing,such as GX projectco-creatio

55、n and transition support.The four strategic pillars for achieving this are support for domestic GX investment,development and import of overseas clean energy and resources,support for Japanese companies entering overseas GX markets,and support for transitions in emerging markets through public-priva

56、te partnerships.Through research,advocacy,and engagement activities,we will support our clients business development and originate value-chain based projects todeliver our financing solutions.MUFG has raised its sustainable finance target from 35 trillion yen to 100 trillion yen by 2030,given strong

57、 progress that MUFG has made to date alongwith the growing demand for funds.Overview of GX value chain supportBackground for raising target level Strong progress against the existing target of 35 trillion yen,reaching 27.7 trillion yen(79.2%achievement)as of H1 FY2023 Raised the target level in anti

58、cipation of even broader support for green bonds and renewable energy project financing in response to growing demand for funds for carbon neutral initiativesStrengthening our foundations:Building employee knowledge on GX and sustainability Strengthening transition support(Expanding engagement throu

59、gh the Transition Whitepaper)Partnering with government agencies(involvement in national projects,support for emerging markets through public-private partnerships,etc.)Value chain approach(batteries,hydrogen/ammonia)Transition Whitepaper Asia Transition White Paper Sustainability-related projectsEng

60、agementFinancing projectsResearch andadvocacyBusinessconceptualizationOrigination(value chain orientation)1 Support for domestic GX investment2Development and import of overseas clean energy and resources3Support for Japanese companies entering overseas GX markets4Support for transitions in emerging

61、 marketsthrough public-private partnerships12341234100 trillion yen(including50 trillion yen for environment areas)New targetSustainable Society Achievement of Carbon Neutral Society Engagement and Support(GX value chain support)12Sustainable SocietyAchievement of Carbon Neutral SocietyPriority Issu

62、es:Vibrant SocietyPriority Issues:Resilient SocietyPromotion of SustainabilityAppendix Main initiatives to support transition and our achievements:Building frameworks for transition finance,Facilitating a whole of economy transition based on regional characteristics of Japan and Asia,Policy engageme

63、ntMain initiatives to support transition and our achievementsBecame one of the Steering Group members for the NZBA and contribute to develop frameworks for transition finance as chair of the Transition Finance worktrack.Building frameworks for transition finance1Released the Transition Whitepaper wi

64、th clients representing various sectors in Japan,and also released the Asia Transition White Paper which aims to contribute to decarbonization in AsiaIn September 2024,we published the MUFG Transition White Paper 2024(White Paper 3.0).Facilitating a whole of economy transition based on regional char

65、acteristics of Japan and Asia2Promote blended financing with governments and public institutions and actively disseminate our view through initiatives and COP28Policy engagement3123Transition White PaperSustainable Society Achievement of Carbon Neutral Society Engagement and Support(Supporting trans

66、ition)13Sustainable SocietyAchievement of Carbon Neutral SocietyPriority Issues:Vibrant SocietyPriority Issues:Resilient SocietyPromotion of SustainabilityAppendix Regarding emissions from our financed portfolio,we have set interim 2030 net-zero targets for greenhouse gas(GHG)emissions in five secto

67、rs:Power,Oil&Gas,Real Estate,Steel,and Shipping.These targets are based on guidelines set by the Net-Zero Banking Alliance(NZBA),which MUFG joinedin 2021,and we are now disclosing our progress in each sector.In addition,we have set new interim targets for the Automotive,Aviation,and Coalsectors in A

68、pril 2024.The progress of these sector interim targets is as follows:*1.1 Due to some discrepancies in emission data,76 was revised to 80.*2.Net zero energy house*3.Data on emission factors by building and fiscal year is from FY2021*4.Portfolio Climate Alignment score is based on the emissions inten

69、sity of vessels in scope of ship finance*5.Revenue Passenger KilometersShipping Achieve target by supporting the expansion of low carbon emission vesselsResidential real estate Achieve target by supporting purchase of ZEH*2Oil&gas Achieve target by supporting business transition and demand side deca

70、rbonizationCommercial real estate Achieve target by supporting clients and the power sectorPower Achieve target by supporting clients and increasing renewables projectsSteel Achieve target by supporting our clients emission reduction activitiesAutomotive Percentage decrease of 23%46%is consistent wi

71、th JAMAs and IEAs 1.5 C scenarioAviation 71gCO2/RPK*5 aligns with IEAs 1.5 C scenarioCoal Zero loan amount by FY2030(OECD)and FY2040(Non OECD)New targetNew targetNew targetFY2022FY2030FY2040OECDcountriesNon-OECDcountriesBaseline emissions(FY2021)169gCO2/vkmAim for JAMAs and IEAs 1.5 scenariosPercent

72、age decreasefrom FY202123%46%2030 interim target130gCO2/RPKAim for alignment with the IEAs 1.5 scenario71gCO2/RPKApprox.3 billion yenApprox.12 billion yenZero balanceZero balanceProgress with our interim targets by sectorSustainable Society Achievement of Carbon Neutral Society Reducing emissions fr

73、om our financed portfolio(1/2)20212023forecast(gCO2e/kWh)201920201921562022328307299Percentage changefrom FY20192030313(fiscal year)20212023forecast(MtCO2e)201920201528%2022848180*1Percentage changefrom FY201920308120212023forecast(MtCO2e)201920202022221718Percentage changefrom FY2019203025161755(fi

74、scal year)(fiscal year)20212023forecast(kgCO2e/m2)2020474420226563Percentage changefrom FY201920301556*32021(kgCO2e/m2)202020222727Percentage changefrom FY20192030925*3232023forecast0%30.9%26.2%0.6%3.9%2023forecast(PCA*4)202120222030Interim targetPCA StrivingPCA MinimumFormer scenario(fiscal year)(f

75、iscal year)(fiscal year)Baseline emissions(FY2021)2030 interim target14Sustainable SocietyAchievement of Carbon Neutral SocietyPriority Issues:Vibrant SocietyPriority Issues:Resilient SocietyPromotion of SustainabilityAppendix MUFG has implemented a transition assessment framework,which evaluates ou

76、r clients transition status,and a transaction screening process in order to provide managed transition support.We also monitor the progress toward achieving our 2030 interim targets.*1.Framework to identify,assess,and manage environmental and social risks and impacts associated with large scale proj

77、ects*2.Financed Emission:Financed Emission:emissions attributable to financial institutions through financing*3.Chief Risk Officer*4.Chief Strategy OfficerOperating framework for effective managementUnder our Group CRO*3,this second line organizationmanages sustainability risk,including climate chan

78、ge,across the organizationManaged transition supportMonitoring process to achieve 2030 interim targetsEscalation ProcessReview credit terms&conditions for clients with no specific plans or directions for transition despite our engagementStrengthening engagement by communicating MUFGs commitment to n

79、et zeroTransition assessment frameworkBased on targets,governance,and emissions performance of carbon intensivesector clients who have 2030 interim targetsSustainabilityRisk Management Office(New)1Reliable pathway to net zero by 20502Interim targets consistent with the Paris Agreement and based on s

80、cientific evidence are in place,and progress is being madetoward net zero3Interim targets are in place and efforts are underway toward reaching net zero4There is a 2050 net zero target(but no interim target)5There is a net zero target(but not for 2050)6No net zero targetHighpotentialLowpotentialSix

81、tier category fortransition assessment：FE*2 MonitoringProgress towards 2030 interim targetsUsing available data and information,dynamically checking progress toward achievingthe 2030 interim targets while taking into account market trends,and discussingappropriate actionsFE of entire portfolioRegula

82、rly monitoring FE for the entire financed portfolio(including all of clients Scope 1,2,and 3 emissions)Transaction screening process Environmental and Social Policy Framework Transition screening to conduct deeply scrutinized transition assessments Following the Equator Principles*1 Assessment of cl

83、imate change riskMonitoring thetransition planThe Transition Plan Monitoring Meeting,jointly chaired by the CSO*4and CRO,will be held biannually to verifythe effectiveness of the operating framework and the progress of our transition plan.The operating frameworkwill be updated as appropriate to ensu

84、re effectiveness.Sustainable Society Achievement of Carbon Neutral Society Reducing emissions from our financed portfolio(2/2)15Sustainable SocietyAchievement of Carbon Neutral SocietyPriority Issues:Vibrant SocietyPriority Issues:Resilient SocietyPromotion of SustainabilityAppendix MUFG has establi

85、shed a system to properly manage climate change-related risks based on the Risk Appetite Framework and the Top RiskManagement.The Risk Appetite Statement elucidates the Risk Appetite Framework which embodies MUFGs attempts to achieve an integrated groupstrategy along with effective risk management.T

86、he Risk Appetite Statement contains an overview of the Risk Appetite Framework(basic policy andmanagement process)as well as specific business strategies,financial plans and risk appetite details.A summary of the Risk Appetite Statement isdistributed throughout the Group in an effort to spread the b

87、asic philosophy behind the Risk Appetite Framework.Regarding governance,established an effective decision making governance structure with carbon neutral related meeting bodies under thesupervision of the Board of Directors.Additionally,we reflect evaluation of ESG and sustainability initiatives,inc

88、luding climate change measures,in theexecutive compensation system.MUFG is focusing on employee capability building and is developing various measures for each employee group.RiskmanagementEstablished a system to manage climate change related risks and clarify MUFGs risk appetiteTop Risk ManagementP

89、ositioned risks arising from climate change as top risk in our integrated Top Risk Management systemRisk Appetite FrameworkRisk analysis by sectorAnalyzed transition and physical risks of TCFD Recommended disclosure sectors in a heatmapGovernance structureEstablished an effective decision-making gov

90、ernance structure with carbon neutral related meeting bodies under the supervision of the Board of DirectorsCompensation systemReflect evaluation of ESG and sustainability initiatives,including climate change measures,in the executive compensation systemGovernanceCapability buildingConducted trainin

91、g program for front office representatives of major companies to enhance engagement skills(Total of about 2,000 participants in FY2023Fostering cultureHeld internal seminars and launched an internal social media platform to ensure that each MUFGemployee has basic knowledge on sustainability and awar

92、eness to take action on their ownCapabilitybuildingKey initiativesOverviewSustainable Society Achievement of Carbon Neutral Society Risk management and governance16Sustainable SocietyAchievement of Carbon Neutral SocietyPriority Issues:Vibrant SocietyPriority Issues:Resilient SocietyPromotion of Sus

93、tainabilityAppendix While strengthening existing initiatives for each of our key strategies,MUFG will also pursue new initiatives that will contribute to achieving carbonneutrality.Risk management and governanceStudy quantification of climate change risksStrengthen compliance with non financial info

94、rmation disclosure regulations and internal controlEnhance climate change-related data managementStrengthen training for front office representatives and spread insights for all employees4Engagement and supportPromote sustainable finance and GX value chain support as set forth in the new medium term

95、 business planContinue efforts to support transition through initiatives and policy engagement and enhance engagement activities through the Transition WhitepaperImplement findings of Asia Transition White PaperImplement integrated initiatives for natural capital,circular economy,and human rights2Re

96、ducing emissions from our financed portfolioRegularly review targets based on NZBA guidelinesRegularly review Environmental and Social Policy FrameworkReview progress through transition plan monitoring and revise as necessaryStudy targets for facilitated GHG emissions3Reducing emissions from own ope

97、rationsImplement energy efficiency&conservation initiatives and convert electricity contracted by other companies torenewable energy to achieve FY2026 interim targetRealize and promote various business co creations through partnerships with clients1Core initiativesSustainable Society Achievement of

98、Carbon Neutral Society Next steps17Sustainable SocietyNatural Capital and Biodiversity RestorationPriority Issues:Vibrant SocietyPriority Issues:Resilient SocietyPromotion of SustainabilityAppendix In light of the importance of early disclosure to promote the TNFD(Taskforce on Nature-related Financi

99、al Disclosures),MUFG registered as one of theTNFD Early Adopters in January 2024 and is advancing its efforts and disclosures in line with the TNFD framework.Established a governance structure in which the Board ofDirectorsoverseesinitiativesrelatedtosustainabilitypromotion,including natural capital

100、Receivedrecommendationsforimprovingpoliciesandinitiativesfromexternaladvisorswithexpertiseinenvironmental and social issues,including natural capitalPromoted governance and initiatives that respect humanrights,including consideration for stakeholders such asindigenous peoples and local communities w

101、ith close ties tonatural capital1.GovernanceConducted due diligence on projects with potential negativeimpactsonnatureinaccordancewiththeMUFGEnvironmentalandSocialPolicyFrameworkwhenconsidering financingConducted environmental and social due diligence based onthe Equator Principles when financing la

102、rge-scale projectssuch as infrastructure and natural resources development3.Risk&impact managementDeveloped and provided solutions according to the clientsstage of response.Specifically,focused on five areas wheretheGroupcanleverageitsstrengths(consulting,partnerships,startup support and collaborati

103、on,blue finance,and initiatives in the field of food)Sectoral analysis of dependence and impact on nature,following the LEAP Approach,to identify opportunities andrisksTrial analysis of dependency and impact using informationfrom our sites2.StrategiesIn investments and loans,in addition to the quant

104、itativetarget for sustainable finance(cumulative total of JPY 100trillion by FY2030),MUFG will expand support for clientsbased on dependency and impact analysis and createsolutions in the field of foodSet metrics and targets for waste reduction,effective use ofplastic waste and paper resources,and G

105、HG emissionreduction4.Metrics and targetsSustainable Society Natural Capital and Biodiversity Restoration TNFD Disclosure18Sustainable SocietyNatural Capital and Biodiversity RestorationPriority Issues:Vibrant SocietyPriority Issues:Resilient SocietyPromotion of SustainabilityAppendix MUFG recognize

106、s that there are business opportunities in accordance with the stage of customers actions to address natural capital.We support ourcustomers efforts by developing and providing diverse solutions based on their challenges and needs.MUFG supports customers natural capital initiatives through activitie

107、s in five focus areas where the Group can leverage its strengths.We will alsopromote collaboration with a wide range of stakeholders.Increasing touchpointsProviding solutionsUnderstanding customer challenges and needsProvide information and engage with customers embarking on natural capital manageme

108、nt through dissemination ofthe MUFG TNFD Report and other means.Signed a memorandum of understanding(MOU)with Fujitsu Limited to collaborate in solutions developmentPartnerships We support marine and water-related projects undertakenby business companies and national and local governmentsthrough blu

109、e bonds and sustainability-linked loansBlue finance MUFG Bank,Mitsubishi UFJ Capital,and MUIP*2areinvesting in startups related to natural capital such asforests and soil.By providing our customers with solutions developed bystartups,MUFG helps customers solve their challengeswhile also boosting the

110、 corporate value of the startups.Major example:Biome Inc.Investment in and collaboration with startups Launched the Food-X PT*3to promote food-related initiativessuch as the creation of food ecosystems and sustainableagriculture The ESG Accelerator Program will be held to supportventure companies tr

111、ying to achieve sustainable food andbiodiversity MUFG is collaborating with industry,government,academia,and the finance sector to adapt European nutritional rules toJapans context(creating Japans Nutritional Profile)Initiatives in the food sector To help customers visualize the issues they face,the

112、 Bank released the“TNFD Initial Support Tool”in April 2024 Through the provision of consulting services by MURC*1,we support our customers problem solving and TNFD disclosuresConsultingFocus area1*1.Mitsubishi UFJ Research and Consulting Co.,Ltd.*2.Mitsubishi UFJ Innovation Partners Co.,Ltd.*3.Food

113、Transformation Project Team(Food-X PT)Sustainable Society Natural Capital and Biodiversity Restoration Five Focus AreasFocus area2Focus area3Focus area4Focus area519Sustainable SocietyNatural Capital and Biodiversity RestorationPriority Issues:Vibrant SocietyPriority Issues:Resilient SocietyPromotio

114、n of SustainabilityAppendixDependenceImpactTo identifynaturalcapital-related opportunitiesandrisks,we conductedasector-by-sectoranalysisofnaturaldependence andimpacts,incompliance with theLEAPApproachintheTNFDdisclosureframework.InadditiontotheresultsoftheENCOREanalysis,we willcontinuetoidentifysect

115、orsandnaturalcapitalthatrequirepriorityaction,referringtocorporatedisclosures.Very high dependencyHigh dependencyVery high dependencyHigh dependencyAtmosphereHabitatsLandgeomorphologyMineralsOcean geomorphologySoils andsedimentsSpeciesWaterEnergyMaterials(Chemicals,Steel,Forestry,etc.)Industrials(he

116、avy industry,construction,civil engineering,etc.)Commercial/Professional servicesTransportationAutomobiles and auto partsDurable consumer goods and apparelConsumer discretionaryRetailingFood and consumer staples retailingFood,beverages,and tobaccoHousehold productHealthcareBankingVarious financial s

117、ervicesInsuranceSoftware servicesTechnology hardwareSemiconductorsTelecommunications servicesMedia and entertainmentUtilitiesReal estateAtmosphereHabitatsLandgeomorphologyMineralsOcean geomorphologySoils andsedimentsSpeciesWaterEnergyMaterials(Chemicals,Steel,Forestry,etc.)Industrials(heavy industry

118、,construction,civil engineering,etc.)Commercial/Professional servicesTransportationAutomobiles and auto partsDurable consumer goods and apparelConsumer discretionaryRetailingFood and consumer staples retailingFood,beverages,and tobaccoHousehold productHealthcareBankingVarious financial servicesInsur

119、anceSoftware servicesTechnology hardwareSemiconductorsTelecommunications servicesMedia and entertainmentUtilitiesReal estateSustainable Society Natural Capital and Biodiversity Restoration Analysis with the LEAP Approach20Sustainable SocietyNatural Capital and Biodiversity RestorationPriority Issues

120、:Vibrant SocietyPriority Issues:Resilient SocietyPromotion of SustainabilityAppendixApplicable Products and Services Financing for corporate clients of the Bank,the Trust Bank,and the Securities services in all countries and regions*1Prohibited Transactions When considering finance,a due diligence p

121、rocess to specify risk and impact on the environment and society,including natural capital,is implemented.When abusiness corresponds to a prohibited project as regulated in the MUFG Environmental and Social Policy Framework,finance is not implemented.In addition,when a business falls under Transacti

122、ons of High Caution in the Equator Principles,additional due diligence is implemented by the responsibledepartment,and the environmental and social considerations of the client are considered insufficient relative to the level of the potential risk or impact,financingwill not be provided.Cross-secto

123、r guidelines Impact on indigenous peoples communities Land expropriation leading to involuntary resettlement Impact on high conservation value areas Cause of or contribution to violation of human rights,or direct linkage with violation of human rights in conflict areasSector specific guidelines Coal

124、 fired power generation Mining Oil and gas(oil sand,development of the arctic,shale oil and gas,oil and gas pipelines)Large hydropower Biomass power generation Forestry Palm oil Transactions that negatively impact wetlands designated under Ramsar Convention Transactions that negatively impact UNESCO

125、 designated World Heritage Sites Transactions violating the Convention on International Trade in Endangered Species of Wild Fauna and Flora(Washington Convention)Transactions involving the use of child labor,forced labor or human trafficking Cluster munitions and inhumane weapons manufacturing Illeg

126、al transactions and transactions for illegal purposes Transactions which violate public order and good moralsTransactions of High Caution*1.Extension of credit and the underwriting of bonds and stocks to support clients businessesOverview of MUFG Environmental and Social Policy FrameworkEnvironment

127、and Social Risk Assessment ProcessFinance not providedWhen the clients environmental and social consideration for the potential risks or impacts is not consideredIn cases where there is a strong potential for negative impacts on corporate valueIn cases with the potential to negatively impact the cor

128、porate value of MUFG in terms of reputational risksConfirmation of sufficiency of environment and social considerationsConsideration for financing is possible(proceed to the credit determination process)N/AEnhanced Due DiligencePrimary responsibility bearer:Sustainability Office,etc.The department r

129、esponsible for environmental and social risk management conducts due diligence.Discussion within a framework participated by senior managementPrimary responsibility bearer:Discussion with relevantdepartments such as the risk management departmentDiscussion of the response participated in by seniorma

130、nagementProhibited TransactionsStandard Due DiligencePrimary responsibility bearer:Department in charge(of the client)Based on public information and information provided by the client,the department in charge determines whether the business falls under thecategories:“Prohibited Transaction,”“Transa

131、ction of High Caution,”or“Transaction subject to the Equator Principles.”N/ATransactions of High Caution or“Transaction subject to the Equator Principles”Sustainable Society Natural Capital and Biodiversity Restoration Process for Risk Management of Investments and Loans21Sustainable SocietyNatural

132、Capital and Biodiversity RestorationPriority Issues:Vibrant SocietyPriority Issues:Resilient SocietyPromotion of SustainabilityAppendixThe project is construction and operation of multiple offshore windpower facilities.The route for the underwater transmission lines,whichextend from wind turbines to

133、 the onshore area,overlaps with watersknown as the habitat of marine mammals.In addition,the proposed siteis located within the flight path of migratory birds,and it has beenconfirmed that important species arrive to the coastal areas duringwinter months.Furthermore,the route of the underwater trans

134、mission lines alsooverlaps with the fishing area of local fishermen.However,sincemaritime traffic will be restricted while the transmission lines are beinglaid,which may lead to a loss of livelihood for fishermen in the area.Project overviewIdentification and evaluation of the risks and MUFGs respon

135、seMarine mammal habitatFishing areas of local fishermenUnderwater power transmission linesBird migratory route231Impacts on marine organisms1Impacts on the breeding of valuable speciesRisk Analyzed and verified impacts on valuable species based on assessmentreports developed by experts Requested dev

136、elopment of management plans during the breedingseason,including prohibition of material transport vessel operations andrestriction on the vessels cruising speedResponseImpacts on migratory birds2Impacts on the ecology of migratory birdsRisk Requested surveys on the collision risks between operation

137、al wind turbines and birds and bats,securing of distance between turbines,and installation of lights to prevent collisionsResponseCompensation for local fishermen3Potential loss of means of livelihood for fishermenRisk Requested operators to engage with fishing associations.In additionto financial c

138、ompensation,the loan agreement stipulated a conditionfor signing a memorandum of understanding aimed at creating newmeans of livelihood,such as aquaculture The lenders have retained independent experts and monitor theprogress of the engagementResponseSustainable Society Natural Capital and Biodivers

139、ity Restoration Case Study on Risk Management in Investments and Loans22Sustainable SocietyPromotion of Circular EconomyPriority Issues:Vibrant SocietyPriority Issues:Resilient SocietyPromotion of SustainabilityAppendix As the risks of resource depletion impeding stable procurement and environmental

140、 pollution due to waste intensify,it is becoming increasingly importantto transition from a linear economy of mass production,consumption,and disposal to a circular economy that uses resources efficiently and in a cyclicalmanner.In light of growing international awareness of resource recycling,the w

141、orsening waste problem,and the conservation of resources,MUFG is implementing a variety of initiatives to facilitate the transition to a circular economy.循環型経済 The risks of resource depletion impeding stable procurement and environmental pollution due to waste are becoming apparent.As the transition

142、 from mass production,consumption,and disposal will reduce GHG emissions and more effectively utilize rare mineral resources needed for batteries,it is strongly correlated with climate action,increasing its importance.Linear EconomyCircular EconomyRaw materialsProductsUsageWasteMass productionMassco

143、nsumptionMassdisposalResources are circulated,preventing the generation of waste products.Raw materialsProductsUsageRecyclingWhat is a circular economy?Our Initiatives1.Collect used cooking oil2.Recycling into biofuel3.Use mainly for aircraftDelivery of waste cooking oilOIL Starting in FY2024,MUFG w

144、ill provide approximately 22,000 liters of wastecooking oil a year from cafeterias at 239 bank branches,headquartersbuildings,dormitories,and welfare facilities nationwide for the domesticproduction of SAF(sustainable aviation fuel),thereby contributing to carbonneutrality in the aviation industry.A

145、 circular economy maximizes added value by efficiently and cyclicallyusing resources at all stages of the value chain,while reducing costs andenhancing brand value.Sustainable Society Promotion of Circular EconomyOverview of Waste Cooking Oil RecyclingBranch cafeterias/employee facilitiesHeadquarter

146、s BuildingsDormitories23Sustainable SocietyPromotion of Circular EconomyPriority Issues:Vibrant SocietyPriority Issues:Resilient SocietyPromotion of SustainabilityAppendix MUFG promotes a circular economy by launching and participating in various initiatives,and supporting customers efforts through

147、financing.Participation in InitiativesSupport through FinancingCircular Economy AssociationAn initiative launched by MURC and Harita Co.,Ltd.to promote theunderstanding and establishment of circular economy businesses,and tobuild and publicize cooperative relationships and consortia among relatedorg

148、anizations.Industry-Government-Academia Circular Economy Partnerships(Circular Partners)An initiative co-sponsored by the Ministry of Economy,Trade and Industry and the Ministry of the Environment to promote ambitious and pioneering industry-government-academia collaboration on the circular economy.

149、Japan Partnership for Circular EconomyAn initiative launched by the Ministry of the Environment,the Ministry ofEconomy,Trade and Industry,and Keidanren(Japan Business Federation)tofoster a better understanding of the circular economy among a wide range ofstakeholders,including domestic companies,and

150、 promoting its initiatives.Resource Recycling Council1)Policy proposals,2)social demonstration and implementation of effectiveresourcerecyclingmodels,and3)disseminationofinformationonJapanese and international examples of a circular economy.Executive Sustainability ForumAn initiative led by PwC Japa

151、n which issued a joint statement on the circulareconomy and carbon neutrality in the ASEAN region.SupportforGreenLoansforBiogasPowerGenerationinOkayamaPrefecture Around 10,000 cattle are raised on reclaimed land around Kasaoka Bay inOkayama prefecture,posing challenges in manure disposal and odor re

152、duction.The Bank closed a green loan deal with Kabuto Biofarm LLC to fund theconstruction of a biogas power plant that will utilize cattle manure,helping toresolve the issue at hand.Through the operation of the biogas power generation business,we aim tocontribute to the SDGs through the renewable en

153、ergy produced,promote localresource recycling,and address local issues.This is the first green loan in Japan for a biogas power plant using cattlemanure,and it received the highest rating of“Green 1(g1/m1)”from the JapanCredit Rating Agency(JCR).Cattle manure(raw material)Power generation at biogas

154、plantGiving back to local farmersElectricity sales/use of surplus liquid fertilizerSustainable Society Promotion of Circular Economy24Priority Issues:Vibrant Society Industry Development and Innovation Support Response to Aging Population&Low Birthrate Increasing Access to Financial Services Managem

155、ent Focusing on Human Capital25Priority Issues:Sustainable SocietyVibrant SocietyIndustry Development and Innovation SupportPriority Issues:Resilient SocietyPromotion of SustainabilityAppendix Our aim is to avoid economic stagnation and secure sustainable growth through the creation of growing indus

156、tries,which are the drivers of economies,thriving startups,and the development of regional economies.Startup Support MUFG has used the group functions to provide various support for domesticand overseas startups corresponding to their growth stage and collaboratedto develop new services.Consequently

157、,the total facility line,includingthrough investment in Asian digital companies and fund origination by MarsGrowth Capital,has expanded to approximately 900 billion.In Japan,2022 marked the first year of startup creation,with thegovernments announcement of the Startup Development Five-year Plan,whic

158、h increased attention.Against this backdrop,we will accelerate varioussupport for startups value enhancement,such as business matching,leveraging MUFGs domestic and international networks,creating newbusiness expansion opportunities through overseas expansion support,andproviding financial support.I

159、n 2024,the Securities launched the JIVL*1,astartup acceleration program,as part of its initiatives.MUFG will support new startups that tackle industrial development anddrive social and environmental progress.As a target for these activities,MUFG has raised the market cap of startups supported up to

160、20 trillion byFY2026.Initiatives for StartupContributing to Development and Solutions in the Space IndustrySupport for Regional Revitalization-MUIC Kansai-As an initiative to tackle challenges in the tourism industry and revitalize theKansai economy,in February 2021,MUFG opened MUIC Kansai in Osaka,

161、a membership-based innovation center.Its core function is a“problem-solving program”aimed at creating innovation.It provides a platform that,together with member corporations and startups,can identify social issues,conduct PoC experiments,and implement solutions in society in anintegrated manner.Ini

162、tially,MUIC Kansai was intended to wrap up its operations in April 2025,coinciding with Expo 2025 Osaka Kansai.However,we have decided tocontinue the project beyond the Expo and expand its scope.Moving forward,we aim to establish a more comprehensive support system for startups andbecome a hub for t

163、he Kansai startup ecosystem.Additionally,we plan toexpand the model for resolving social issues through collaboration betweenlarge corporations and startups nationwide,contributing to society as one ofthe platforms for implementing the Expos legacy.Astroscale Holdings ADRAS-J commercial debris remov

164、al demonstration satellite*2.Estimate by Mitsubishi UFJ Research and Consulting Co.,Ltd.*1.Japan Inclusive Ventures Lab(JIVL)aims to support startups led by women or individuals from diverse backgrounds,leveraging the program of Morgan Stanley,a strategic partner of MUFG.Vibrant Society Industry Dev

165、elopment and Innovation Support The market scale of the space industry is56 trillion yen in 2023 and will be 90 trillionyen*2in 2030,making it one of the fastestgrowing industries in the world.The utilization of satellite-based communications,location data,and earth observation data is expected to e

166、xpand in more wide-ranging fields and to contribute to solutions to a variety of social issues.The Bank engages in business co-creation investments that will contributeto the creation of new businesses and the achievement of sustainability inspace.By providing knowledge and know-how concerning compr

167、ehensivefinancial services along with the wide-ranging network of the Bank,we willsupport the advancement of the space industry.26Vibrant SocietyResponse to Aging Population&Low BirthratePriority Issues:Sustainable SocietyPriority Issues:Resilient SocietyPromotion of SustainabilityAppendix Amid a pr

168、ogressively aging population and low birthrate,we aim to enhance financial products and services tailored to meet the needs of elderlycustomers,and realize a society where asset building and succession are attainable for all generations.Inheritance Guide Online Service to Assist with Inheritance Pro

169、ceduresMUFG Inheritance Research InstituteExcellent Club(the Bank/the Trust Bank)Financial GerontologyContribute to Making Japan a Leading Asset Management Center As a global comprehensive financial services group,we will promoteinvestment and support asset formation through further enhancing ourind

170、ustry-leading asset management and investor services and providingcustomer-centeredprofessionalinvestmentadvisoryservices,diversesolutions,as well as financial and economic education.Target/StrategyAim Contribute to making Japan a leading asset management center to empowerpeopleto build moreprospero

171、uslives.Asset management AMAM Service beyond customers expectationsInvestor services ISPursue efficiency in AM industrySales/consultingContribute to expanding customer assetsFinancial and economic educationContribute to autonomous asset formulation for each generationWorkplace Experience for Student

172、s(the Bank)FINANCIAL EDUCATION PROGRAMfor LIFE VALUE(the Securities)Financial and Economic EducationSuccession of Businesses and Assets Employing functions afforded by the Group as well as networks offered by ouralliance partners,we deliver proposals regarding M&A,inheritance,real estate andasset ma

173、nagement by taking a groupwide,integrated approach.Through theseendeavors,we support the succession of assets and businesses worth more than1trilliononanannualbasis.Response to the Elderly Inresponsetothegrowingfinancialassetsoftheelderlyandtheincreaseindementiapatients,we are expanding our services

174、 to include trust products for testaments andgifts,aswellasservicestoalleviateanxietyrelatedtocognitivedeclineduetoaging.The service lets customers create and manageto-do lists for estate planning and inheritanceprocedures based on responses to simplequestions,as well as view informational articlesa

175、ndsearchforrelatedexpertssuchasattorneys,taxaccountants,andjudicialscriveners.The service is freely available withno requirement to submit personal information.The Trust Bank has establishedthe MUFG Inheritance ResearchInstitute to conduct research onasset management for an agingsociety and the smoo

176、th transferof assets to the next generation.A free membership-based service based on theconcept of 100 years of life,100 years ofhappiness.In addition to providing informationsuch as bulletins and seminars,as well asproviding MUFG financial services,we alsooffer non-financial services that enrich ou

177、rcustomers daily lives and support healthylifestyles.The Trust Bank,through researchin financial gerontology,aims todevelop products that prepare forcognitive decline and contribute tothe health and longevity of ourcustomers.Vibrant Society Response to Aging Population&Low Birthrate27Vibrant Society

178、Increasing Access to Financial ServicesPriority Issues:Sustainable SocietyPriority Issues:Resilient SocietyPromotion of SustainabilityAppendix We aim to help establish a society in which the spread of digital technology provides all people with access to basic financial services,improving their qual

179、ity of life and allowing them to achieve economic independence.MUFG also focuses on accumulating expertise in consumer finance acquiredthrough investments in digital finance service providers,knowledge sharing,andcreating synergies among investees.This has led to the formulation of a uniqueecosystem

180、 called MODE(MUFG Openly-connected Digital Ecosystem).Byusing these activities to expand opportunities to provide digital lending,we aimto promote financial inclusion and contribute to improving the economic stabilityof the unbanked population in emerging economies.To enhance value for the MUFG Grou

181、p as a whole,we will further promotecooperation and collaboration among entities within the MUFG ecosystem,including investees,partner banks,and MUFG Group companies.Building a Digital Financial Platform in Asia The need for digital financial services has grown rapidly in Asia against thebackdrop of

182、 the proliferation of the internet and smartphones.To capture the growthof consumer finance in Asia,which is expected to further digitalize,and to capturethefutureleader inthefield,MUFGhas startedstrategicinvestment in digitalfinanceservicesproviderstobuildafoundationforthedigitalfinancialplatform.U

183、nder the MTBP,we will pursue strategic investment opportunities for digitalfinance services providers under the“Asia x Digital”strategy.By focusing onsupporting the growth of investees,we will capture the development of digitalfinancial services in Asia that could not be fully captured through conve

184、ntionalfinancialservicesandcontributeto financialinclusionin the region.In addition,we will promote collaboration and knowledge sharing among theinvestee digital finance services providers,partner banks,and MUFG groupcompanies,aiming to build MUFGs unique digital economic sphere,which willalsoinclud

185、eexternalpartners.Enhanced Economic Security of the Unbanked in Emerging Markets*1.Customers without bank accounts*2.An initiative to form a digital ecosystem for knowledge sharing and creating business synergies among MUFG investee companiesPartner Bank-Krungsri(Bank of Ayudhya)-Provision of Microf

186、inance through HATTHA Bank Plc.(HTB)Krungsri provides opportunities for customers in emerging and developing countries to access financial services through its microfinance institution in Cambodia,HTB,and others.Issuance of Gender Bonds by Krungsri(Bank of Ayudhya)Krungsri has issued social bonds(ge

187、nder bonds)to support the financial needs of women entrepreneurs.Vibrant Society Increasing Access to Financial Services28Vibrant SocietyManagement Focusing on Human CapitalPriority Issues:Sustainable SocietyPriority Issues:Resilient SocietyPromotion of SustainabilityAppendix By putting human capita

188、l management into practice,we aim to become a global financial group that makes a positive social impact and fosters a culture where ouremployeesthrive.ToachieveMUFGsvision,we have definedfourkeyinitiatives,sethumancapitalKPIsforeachanddisclosedthetargets,andare pursuingvariousrelevantmeasures.Conce

189、pt for Human Capital Management MUFG positions human capital as one of our most important types of capital.Through the enhancement of human capital,we aim to become a global financial group making a positivesocial impact and fostering a culture where our employees thrive.To achieve this vision,we pr

190、actice human capital management based on two main pillars:strengthening businesscompetitiveness and create an agile culture empowering employees to tackle challenges.”First,we believe that by maintaining and promoting the physical and mental health of eachemployee and creating an organization that r

191、ecognizes and values the contributions of diverse talent,employees will feel secure in taking on challenges with speed.Furthermore,weaim to enhance employees career fulfillment by providing growth opportunities that support autonomous career development,such as fair treatment commensurate with indiv

192、idualcontributions and internal and external job postings.Additionally,we will strengthen our business competitiveness by establishing systems that allow employees to acquire and improveadvanced skills and expertise,such as diversifying career paths and expanding training opportunities.By reinvestin

193、g a portion of the generated investment capacity back into humancapital,we aim to establish a virtuous cycle of human capital management that ingrains a culture of challenge and speed.Within this virtuous cycle,we believe that the continuousimprovement of employee well-being will lead to the realiza

194、tion of our vision and the enhancement of corporate value.MUFG has detailed and disclosed targets for human capital KPIs to accelerate efforts towards four key initiatives for enhancing human capital.By quantitatively measuring the progressof initiatives addressing these challenges,we aim to improve

195、 various measures.We will continue to dynamically review and consider more effective KPIs and targets in response to theprogress of these KPIs and changes in the external environment.*1.Total for the three main domestic subsidiaries(the bank,the trust bank,MUMSS)*2.Participate in IT Passport e-learn

196、ing,and acquire IT-related qualifications*3.Consolidated basis,including major overseas subsidiaries(engagement and inclusion scores are from Group Employee Survey)*4.Real ratio of childcare leave usage reflecting the expiration date for the leave*5.Ratio indicating aspiration for higher positions a

197、mong female employeesHumanCapitalManagement(HCM)VisionHCM CorePillarsHCM Foundation and StructureHCM Four Key InitiativesA global financial group making a positive social impactand fostering a culture where our employees thriveCreate an agile cultureempowering employeesto tackle challengesStrengthen

198、ing businesscompetitivenessEmployee enablement and progression:Employee&skills developmentEmbedding a culture of healthy working:Physical,mental&emotional well beingDiverse,equitable&inclusive workforce:Empowered&supported to succeedImproving employee engagement:Career fulfillmentEmployee Well-being

199、Embedding theDesired CultureReinvestment inHuman Capital1432Four key initiativesEmployee enablement and progressionImproving employeeengagementDEI workforceEmbedding a cultureof healthy workingHuman Capital KPIsCore DX specialistsIT skill acquisition*2Digital specialistsGlobal managementresourcesCan

200、didate pool for key overseas postsEngagement score*3Ratio of eligible male employees who took childcare leave*4Female aspiration for higher position*5Inclusion score*3Ratio of female managers(Japan)Ratio of employment of people with disabilitiesAbsenteeismPresenteeism3.6X747Progress*1(FY2023)70.9%73

201、%22.3%86.1%-75%2.72%0.96%1718%Target*1(FY2026)1,200100%Maintain 3X or moreA level improved from the fiscal 2023 result27%100%No set targetMaintain 75%or moreMaintain statutoryemployment ratio or more1%or lower15%or lowerVibrant Society Management Focusing on Human Capital29Vibrant SocietyManagement

202、Focusing on Human CapitalPriority Issues:Sustainable SocietyPriority Issues:Resilient SocietyPromotion of SustainabilityAppendix In order to get a clear understanding of the human resources necessary for executing our business strategies in terms of both quantity and quality,and to ensure that we ca

203、n allocate the necessary resources in a timely manner,we are prioritizing the alignment of business strategies and human resources strategies.To address the quantitative gap,we are working on building an optimal recruitment system.To address the qualitative gap,we are expanding opportunities for cha

204、llenge and learning to enhance the skills and expertise required for employees in each specific area.MUFG is advancing the development of next-generation management talent who willlead transformation and challenges,and be responsible for value creation.In FY2018,MUFG University was launched for line

205、 managers and above,and to date,more than1,200 employees have attended.MUFG aims to deepen the understanding of organizational management,instill theMUFG culture,and enhance communication between management and employees.This approach ensures the long-term development of cross-group and global leade

206、rswho can excel in various fields.Additionally,it focuses on the early identification of next-generation management candidates,their strategic placement in key positions,and thesteady expansion of MUFGs management talent pool.Next-Generation Leader CourseManagement CourseMUFG New Executive Officer T

207、rainingEstablish leadership core and implement strategiesMUFG Executive Candidate TrainingFoster group management perspective and development of next-generation leadersGlobal Leaders ForumDevelopment of top management successor candidates on a global basisGlobal LEADStrengthen leadership capabilitie

208、s on a global basisDevelopment of Management Talent at MUFGDepartmentandBranch Manager LevelDeputy Department and Branch Manager LevelLiberal Arts SessionFoster foresight necessary for managerial decision-making*1.Total of the Bankthe Trust BankMUMSSNICOSACOMMUAM.Ratio of career hires and hires by b

209、usiness area to the total number of hiresAcquiring and Nurturing Specialized Professionals Each group company is actively engaged in talent development through various training programs and on-the-job training(OJT).However,to strengthen our business and expand into new ventures,we require specialize

210、d talent with expertise in relevant fields who can immediately contribute.Therefore,we are actively diversifying our recruitment methods,including career hiring and business area hiring.Nurturing Future Top ManagementFY2022FY2023749ppl(57%)*11,158ppl(63%)*1Number of Career Hires and Hires by Busines

211、s Area Strengthen the recruitment of highly specialized personnel in each area of expertiseMUFG University Approximately 200 Participants Annually Across the GroupVibrant Society Management Focusing on Human CapitalEmployee enablement and progression(1/2)30Vibrant SocietyManagement Focusing on Human

212、 CapitalPriority Issues:Sustainable SocietyPriority Issues:Resilient SocietyPromotion of SustainabilityAppendix At MUFG,we are advancing our talent development by enhancing training efforts in key areas such as global and digital.Global Talent Development MUFG operates in over 40 countries worldwide

213、,with approximately 63%of its total employees being hired overseas,representing a diverse range of nationalities and culturalbackgrounds(as of March-end 2024).To attract and develop such diverse professionals,we are enhancing our corporate brand both domestically and internationally to makeMUFG an a

214、ttractive workplace.In the current medium-term business plan,we aim to further instill the MUFG culture among both domestic and international employees by enhancing our global leadershiptraining programs.In addition to existing global management development programs such as the Global Leaders Forum

215、and Global LEAD,we have launched the Global Executive Acceleration Program.This new initiative is designed to help newly hired senior overseas employees quickly deepen their understanding of MUFG and become immediately effective in their roles.Our disclosed target for acquiring global management tal

216、ent is maintaining a candidate pool of over three times the number of key overseas positions by FY2026.Digital Talent Development Nurturing human resources capable of spearheading digital transformation(DX)is a high priority initiative.At MUFG various training programs have been implemented to nurtu

217、redigital specialists.At the Bank,the Trust Bank,and MUMSS,we have disclosed a target of 1,200 core digital personnel and 100%IT skill acquisition by FY2026,and are implementing a digital talentdevelopment program.A practical,selective program designed to nurture core digital personnel has been comp

218、leted by approximately 750 individuals to date.Additionally,an in-house solicitation-based training program aimed at discovering and nurturing core personnel candidates has also been completed by approximately 750 individuals.TargetInitiatives Since 2019Content Mindset for promoting business creatio

219、n and operational efficiency Acquisition of digital and it skills centered on AI and data utilization Formulation of BPR initiatives for ones own organization based on training content Aimed at developing core talent to lead DX across various departments within the organization Data analysis,AI,clou

220、d,agile,UI/UX,etc.Aimed at Developing Future DX Core Talent Excel Macros/VBA,ChatGPT,Power Platform,etc.Practical Course on AIand Data UtilizationDEEPNomination-Based TrainingGATEOpen Recruitment TrainingImproving Literacy Visualizing and monitoring the volume and usage of DX activitiesOrganizationD

221、igital Organizational Diagnosis(Organizational Assessment Survey)Digital Skills Cert.Program11,000 TrainedIT Passport Cert.(mandatory)20,000 TrainedDigital Literacy AssessmentUtilized for TransfersAll EmployeesManagement LevelMid-LevelJunior LevelCore TalentCore Talent CandidateVibrant Society Manag

222、ement Focusing on Human CapitalEmployee enablement and progression(2/2)31Vibrant SocietyManagement Focusing on Human CapitalPriority Issues:Sustainable SocietyPriority Issues:Resilient SocietyPromotion of SustainabilityAppendix To enhance employee engagement,we are creating a workplace where everyon

223、e can bring their best to what they do and realize their full potential.The BankThe Trust BankMUMSSReal Wage Increase Level*1Approximately 8.5%annual income increaseApproximately 9%annual income increaseApproximately 7%monthly salary increase*271%73%73%73%FY2020FY2021FY2022FY2023FY2026Job Challenge(

224、Internal Group Recruitment)Applicant Expand opportunities to take on desired tasks within the group*1.In Japan,the real wage increase level includes base pay increases,regular salary increases,promotions,bonuses(the Bank),allowances and subsidies(the Trust Bank and MUMSS),and bonuses(the Bank and th

225、e Trust Bank).*2.MUMSS bonuses are performance-based,so the wage increase is calculated on a monthly salary basis.Systems that Encourage Challenges As a system to support autonomouscareerdevelopmentofeachemployee,we have positioned theCareerChallengeSystemasaframeworkforemployeestoproactively choose

226、 their careers,andwe offer various programs.In the fiscal year 2023,more than2,800 employees applied for theJobChallenge,aninternalrecruitmentsystem,and1,375employees successfully transferredtotheirdesireddepartmentsorengagedininternalsidejobsoutside their current departments,primarily within the he

227、adquarters.Creating a Workplace Where Employees Feel Career Fulfillment MUFG employees have diverse backgrounds and hold a variety of values,and webelieve that this diversity is our greatest strength.By recognizing and respectingeach others differences,we are committed to creating an environment whe

228、re eachemployee can fully demonstrate their abilities and shine in their own unique way.Along with providing compensation that reflects each employees contributions,weconduct the MUFG Group Employee Survey annually to identify issues faced byour employees.The results are used to improve the workplac

229、e environment andorganizational structure.We disclose the Engagement Score as one of our human capital KPIs,and byquantitatively measuring progress,we aim to enhance various initiatives.Engagement Score We are committed to creating an environment where highly specialized employeescan thrive by estab

230、lishing HR systems and compensation schemes that supportemployees who aim for career development focused on the pursuit of specializationin specific areas of work.Systems including MUFG Employment System at the holding level,“EX system”at the Bank,Professional Job System at the Trust Bank,Specialist

231、 System atMUMSS are designed to allow employees with advanced skills and extensiveexperience to develop their careers autonomously within specific business areas2,581ppl(pass rate 43%)2,869ppl(pass rate 48%)FY2022FY2023Number of Professional Positions at MUFG2,100ppl(as of April 2024)The number of e

232、mployees with high expertiseand specific job roles who are active under thepersonnel system in MUFG,the Bank,the TrustBank,and MUMSSEmployee Benefits/Financial Wellness In Japan,to address to employee engagement and retain skilled talent,the Bank,the Trust Bank,and the Securities have increased wage

233、s again in fiscal 2024,aswas done last year.In conjunction with this,a share-based compensation plan wasintroduced in July 2024 for employees in management positions who meet certainrequirements.Target Improve from current scoreVibrant Society Management Focusing on Human CapitalImproving Employee E

234、ngagementthey have chosen,without the needfor cross-functional transfers.Withinthese courses,we ensure thoroughcapability assessments based on jobcontent and provide compensationthat reflects market value,therebycreating an environment where highlyspecialized employees can engageand excel.32Vibrant

235、SocietyManagement Focusing on Human CapitalPriority Issues:Sustainable SocietyPriority Issues:Resilient SocietyPromotion of SustainabilityAppendixGender Equity At MUFG,we believe that sustainable growth requires every employee,regardlessof gender,to fully utilize their abilities and thrive in their

236、own unique way.Additionally,increasing the ratio of women in management is a particularlyimportant issue for incorporating diverse perspectives and values into managementand organizational operations without gender bias.MUFG has set medium-to long-term numerical targets for the ratio of women inmana

237、gement.Under the commitment of top management,we are promoting thefurther advancement of female employees and the elimination of the gender gapthrough training and awareness activities which not only includes the femaleemployees themselves,but also for their managers and colleagues.We are committed

238、to creating an organizational and workplace environment where each employee,regardless of gender,disability,nationality,race,age,orsexual orientation,can have fair and equitable growth opportunities,succeed and be their authentic best.Nobue KanbaOkeatta BrownDEI Statement MUFG has positioned Diversi

239、ty,Equity,and Inclusion(DEI)as one of its keymanagement imperatives.We are committed to creating an organizational andworkplace environment where each employee,regardless of gender,disability,nationality,race,age,or sexual orientation,can have fair and equitable growthopportunities,succeed and be th

240、eir authentic best.We strive to create a culturewhere each employee recognizes and appreciates each others differences andstrengths,creating new value and driving innovation.We are fully committed to DEI,with the aim of empowering all stakeholders to move towards an inclusive andsustainable future.E

241、ncouraging Diverse Talent to Play an Active Role we established three common key DEI pillars;“Genderequity,“Learning and Development“and“Embedding DEIinto our culture”,and we are accelerating a variety of DEIinitiativesglobally,inclosecollaborationwithkeystakeholders in respective regions.In additio

242、n,while clarifying DEI in terms of equity(fairness),we are advancing DEI as part of management strategycommitted by top management.*1.As of the end of March 2024.Sum of the Bank,the Trust Bank,MUMSS,NICOS,ACOM,Mitsubishi UFJ AssetManagement,and other major domestic and international subsidiaries.*2.

243、Overseas locations:the ratio of female Managing Directors or Directors.In Japan:the ratio of women in managerialpositions equivalent to Chief Manager and above at the Bank,the Trust Bank,and MUMSS.*3.As of the end of March 2024.Sum of the holding company,the Bank,the Trust Bank,MUMSS,NICOS,ACOM,and

244、Mitsubishi UFJ Asset Management.Including outside directors and locally hired overseas employees.FY2022FY2023MeanMedianMeanMedianAll Employeesbase salary+other cash incentives51.1%46.7%52.8%46.9%base salary only57.4%49.4%58.4%48.7%*4.For the Bank,the Trust Bank,and MUMSS,calculations are made for ea

245、ch category:all employees,regular employees(management and above),regular employees(non-management),and non-regular employees.All employees andregular employees are all Japan-hired employees,including those seconded to other companies and excluding thoseseconded from other companies.Non-regular empl

246、oyees include contract employees and exclude temporary staff.Theaverage value is calculated as(average annual wage of women)(average annual wage of men),and the median valueis calculated as(median annual wage of women)(median annual wage of men)to determine the ratio.Salaries are thetotal amount of

247、base salary and various allowances(excluding bonuses).Main Factors behind the Gender Pay Gap and Future Initiatives(for details,please refer to the securities report and our website).Gender Ratio Disparities in Job CoursesWe will address this by eliminating job courses(the Bank will introduce a newP

248、rofessional course and eliminate the current job courses starting in April 2025).Low Proportion of Women in Senior PositionsWe are setting targets for the promotion of female employees to seniorpositions in each business area,developing and implementing successionplans,expanding mentoring programs a

249、nd training for female employees,andcontinuingawarenessactivitiesformanagersresponsiblefordevelopment,evaluation,and promotion.Differences in Working Hours Between GendersBy accelerating work style reforms,such as establishing flexible workingenvironments,we aim to rectify the gender pay gap.Promoti

250、ng DEIon a Global BasisThree PillarsLearningandDevelopmentGenderequityEmbeddingDEI intoour cultureJapanAPACAmericasEMEACHRO MembersCo-Global Heads of DEIJapanAPACAmericasEMEAThe Gender Pay Gap*421persons(Ratio of femaleexecutive officers 5.98%)Number of female executive officers*3Female55.0%MaleRati

251、o of female employee*1Ratio of Female Managers*232%22%36%18.0%19.6%22.3%27.0%30.0%FY21FY22FY30FY22Americas EMEAAPACJapanEnd of FY2030Our target 30.0%FY23FY27(FY-end)Kenji HorikawaGroup CHROPaul SimonsCHRO for APACBeth HoerleCHRO for AmericasMargot King Karen OwenCo-CHROs for EMEAVibrant Society Mana

252、gement Focusing on Human CapitalDiversity,Equity&Inclusion(DEI)(1/2)DEI Promotion StructureWe support the Keidanrens“Challenge Initiatives for 30%of Executives to be Women by 2030”.33Vibrant SocietyManagement Focusing on Human CapitalPriority Issues:Sustainable SocietyPriority Issues:Resilient Socie

253、tyPromotion of SustainabilityAppendix At MUFG,we provide an environment and support systems that enable diverse talent to build sustainable careers while navigating various life stages.Additionally,we are fostering a workplace culture where all employees can pursue productive and balanced work style

254、s.FY2022FY2023FY20242.56%2.60%2.68%Encouraging Diverse Talent to Play an Active RoleLGBTQ At MUFG,we are committed to creating a workplacewhere everyone can work authentically,regardless ofsexualorientationorgenderidentity.Weprohibitharassmentanddiscriminationbasedonsexualorientation,gender identity

255、,and other such factors.Inaddition to establishing internal systems and programsthat LGBTQ individuals can utilize,we are also engagedinactivitiesaimedatfosteringunderstandingandawareness of the challenges that LGBTQ individuals face,so that all colleagues in the workplace can respect andsupport eac

256、h other.Work-life Balance SupportSupport for Balancing Work and Childcare At MUFG,we offer programs and systems to support employees who are involvedin childcare and household responsibilities,regardless of gender.Additionally,wepromote the participation of men in childcare and strive to foster a wo

257、rkplace culturewhere all employees can practice a balanced work style that emphasizes efficiencyand productivity.Encouraging Male Employees to Participate in Childcare*1.The employment rate in Japan is calculated from the number of employees with disabilities at the Bank,the Trust Bank(for these two

258、 companies,special subsidiaries and the Group companies to which the exception rule applies are included),MUMSS,NICOS,ACOM,and Mitsubishi UFJ Asset Management.However,for the fiscal years 2022 and 2023,Mitsubishi UFJ Asset Management is not included.Support for Balancing Work and Caregiving By 2025,

259、the baby boomer generation(born between 1947 and 1949)will be 75years old or older,leading to an anticipated increase in elderly individuals requiringcare and a corresponding rise in employees leaving their jobs to provide such care.This is becoming a significant social issue.In response to this sit

260、uation,we arecommitted to supporting all employees,including part-time staff,in balancing workand caregiving responsibilities.In addition to providing various types of information,we have established a range of support systems to ensure that employees cancontinue working while caring for their famil

261、y members who need assistance.FY2023Paternity leave uptake rate(statutoryThe BankStatutory Disclosure83%Internal Regulations81%The Trust BankStatutory Disclosure94%Internal Regulations93%MUMSSStatutory Disclosure121%Vibrant Society Management Focusing on Human CapitalDiversity,Equity&Inclusion(DEI)(

262、2/2)People with Disabilities MUFG aims to realize an inclusive society where every individual is respected andsupported,regardless of disabilities.Across our group companies,we continuouslyimplement various initiatives to ensure that employees with disabilities can work ina secure environment,take o

263、n roles that match their abilities and aptitudes,andfind fulfillment in their work.Employees with Disabilities Thriving at MUFGAt MUFG,we are expanding opportunities for employees with disabilities by creatingworkplace environments that accommodate their specific needs and establishingspecial subsid

264、iary companies.Across MUFG,approximately 1,400 employees withdisabilities are thriving in their roles.As of June 1,2024,the employment rate ofpeople with disabilities within our domestic group stands at 2.68%*1.Across our group companies,we aim to create a workplace environment where bothmen and wom

265、en can balance work and childcare,ensuring that the burden ofchildcare and household responsibilities does not fall disproportionately on women.We have implemented initiatives to promote the uptake of childcare leave by maleemployees,raising awareness about the importance of a balanced work style an

266、dfostering understanding among colleagues who balance work and childcare.34Vibrant SocietyManagement Focusing on Human CapitalPriority Issues:Sustainable SocietyPriority Issues:Resilient SocietyPromotion of SustainabilityAppendix To realize MUFGs Purpose,we place the utmost importance on the mental

267、and physical health of our employees,who are the foundations of our human capital.Based on the“MUFG Health Management Declaration,”which takes this idea and makes it the common basic policy across the Group,each MUFG Groupcompany is promoting health and productivity management.IndicatorFY2020FY2021F

268、Y2022FY2023Target(FY2026)Absenteeism0.88%0.87%0.89%0.96%below 1%Presenteeism1718%15%Combined figures for the three major domestic subsidiaries(the Bank,the Trust Bank,and MUMSS).Promoting Health and Productivity ManagementMUFG Health Management Declaration In line with MUFGs purpose,we follow the pr

269、inciple of striving to empower sustainabledevelopment for our customers and society through our business activities.To make this a reality,we believe that it is essential for each employee to beempowered to thrive and feel rewarded in a work environment that provides a holisticsense of well-being,an

270、d that employees and their families can lead healthy and fulfillinglives.Based on this philosophy,MUFG engages in health and productivity management toenable our employees,who are our irreplaceable assets,to perform at their best andMUFG to contribute to all of our stakeholders and continue to grow

271、as a financial group.Actual Results and Targets We believe that it is essential for each of our invaluable employees to be mentallyand physically healthy and to perform at their best.To materialize the situation,wefirstly ensure the thorough implementation of medical checkups and stress checksin ord

272、er to identify and address health issues based on the health data obtainedfrom the checkups and stress check and other sources.Additionally,byimprovingnotonlyhealthliteracybutalsotheworkplaceenvironment,including work styles,we aim to foster behavioral changes in eachemployee and improve the overall

273、 health of the organization.We measure the outcomes of these initiatives by using indicators such asabsenteeism*1,presenteeism*2,and work engagement,and strive to achieve targetsto maximize the performance of each employee and the team.Actual results and targets for each IndicatorExternal Evaluation

274、 In the Certified Health&Productivity Management Organization RecognitionProgram jointly conducted by the Ministry of Economy,Trade and Industry and theNippon Kenko Kaigi,the following five MUFG Group companies were selected as2024 Certified Health&Productivity Management Organizations(Large Enterpr

275、iseCategory),with one of them being selected as a 2024 Certified Health&Productivity Management Organization(Large Enterprise Category(White 500).*1.Long-term absence due to physical or mental illness*2.Performance decline due to poor healthVibrant Society Management Focusing on Human CapitalHealth

276、and Productivity ManagementGroup CHRO(project owner)Human Resources Division(overall management)Mitsubishi UFJ Financial GroupMUFG Group CompaniesProject ownerOccupationalhealth staffHR section,etc.Promotion Framework WiththeGroupCHRO(ChiefHuman Resource Officer)as thepromotion leader and the MUFGHu

277、man Resources Department asthe overall coordinator,we promotehealthmanagementacrosstheMUFG Group in collaboration witheach group company.EachMUFGGroupcompanyaddresses its own challenges bycoordinating efforts among relevantdepartments,includingtheHRdepartment,occupationalhealthstaff,andhealthinsuran

278、ceassociations.Health insurance society35Priority Issues:Resilient Society Respect for Human Rights Ensuring Secure and Safe Services Demonstration of Robust Corporate Governance36優先課題：活力溢社会Resilient SocietyRespect for Human RightsPriority Issues:Sustainable SocietyPromotion of SustainabilityAppendi

279、xPriority Issues:Vibrant SocietyAddressing adverse impacts on human rightsUse leverage to prevent and mitigate adverse impacts on human rightsExamples of Negative ImpactsMUFGs adverse impacts on customers through the provision of financial servicesCustomersMUFGs adverse impacts on its own employeesE

280、mployeesAdverse impacts of suppliers on employees and the surrounding community through MUFGs procurement operationsSuppliersAdverse impacts of borrowers/investees on their employees and surrounding residents through investments and loans provided by MUFGBorrowers/InvesteesMUFGs adverse Impacts on s

281、uppliersSuppliers Preparation of power harassment/sexual harassment prevention manual*1 Regular monitoring of working conditions and reduction of overtime work Promotion of DEI Consideration of adverse impacts on human rights when introducing products and services Establishment of personal informati

282、on protection rules and systems Establishment of AI Management Procedures Universal Design Initiatives Money laundering prevention Clearly stating respect for human rights of suppliers in the Approach to Purchasing Activity Description of the consultation service on the Guidelines for Purchasing Act

283、ivity distributed to suppliers Establishing MUFG Environmental Social Policy Framework,conducting due diligence on human rights issues related borrowers/investees*2 Compliance with the Equator Principles*1 Respect for human rights is stipulated in the Approach to Purchasing Activity“requirements for

284、 suppliers Distribution of Approach to Purchasing Activity addressing respect for human rights*2 Regularly check for severe human rights abuses at key suppliers*2*1.Initiatives of the Bank*2.Initiatives of the Bank,Trust Bank and SecuritiesResilient Society Respect for Human RightsRespecting Human R

285、ights as a Financial InstitutionWhen MUFG Contributes to Adverse ImpactsBusiness activities substantially cause humanrights abuses by third parties and contribute toadverse impacts on human rightsWhen MUFG Causes AdverseImpactsThe companys own business activities directly cause adverse impacts on hu

286、man rightsWhen MUFG is Directly Linked to AdverseImpacts through Business RelationshipsIt has a adverse impact on human rights through third parties connected through business relationships,etc.123MUFGRights holdersMUFGThird partiesRights holdersThird partiesRights holdersMUFGe.g.Wage discrimination

287、 based on national origin,gender,or other factors,and labor standards violations in the companys operationse.g.Making requests that are not economically rational and inducing or encouraging labor standards violations at the outsourced companye.g.A borrower company engages in business activities that

288、 abuse human rights,and being in violation with its own agreement with MUFGMUFGs Major Responsee.g.Power harassment or sexual harassment in the company.Unfair treatment in employment based on personal Characteristicse.g.Violation of privacy rights due to inappropriate management of customers persona

289、l Informatione.g.Requesting a large amount of work with a short delivery time,inducing long working hours for the external contractors employeese.g.Loans to companies that force migrant workers to Worke.g.Purchase of goods produced by child labor MUFG understands that our business activities may cau

290、se or contribute to adverse impacts on human rights,and we strive to prevent such impacts.If adverse impacts occur,we will strive to address them in accordance with the forms of involvement described in through below.1337優先課題：活力溢社会Resilient SocietyRespect for Human RightsPriority Issues:Sustainable

291、SocietyPromotion of SustainabilityAppendixPriority Issues:Vibrant Society We identified salient human rights issues highly relevant to MUFG,assessed their severity and likelihood of occurrence,and created a human rightsissues map(FY2023).Based on the results,the Sustainability Committee discussed fu

292、ture policies for addressing salient human rights issues.We arecontinually considering ways to strengthen our response,giving priority to the highly severe human rights issues.This map of human rights issues willbe reviewed on an ongoing basis in light of changes in the business environment and the

293、results of stakeholder engagement.*1.Data published by the World Bank,United Nations,etc.(e.g.,Global Slavery Index,etc.)and data from the Business and Human Rights Resource Center*2.Working hours,wages,industrial safety and health,treatment of migrant workers,etc.*3.Health of nearby residents,land

294、issues,etc.Methodology for Creation of Human Rights Issues MapIdentification of Human Rights Issues Referring to international principles for human rights suchas the International Bill of Human Rights and the ILODeclaration,aswellasissuesatotherfinancialorganizations,weascertainedsalienthumanrightsi

295、ssues highly relevant to MUFGAssessment of Severity We assessed the severity of each human rights issuebased on the following three criteria:1)Severity ofadverse impact(e.g.the degree to which human rightsabuses affect lives),2)Extent of adverse impact(e.g.thenumber of people affected),and 3)Difficu

296、lty of remedy(e.g.the possibility of remedy through compensation)Based on UNDP guidance,we make use of outsideconsultants knowledgeAssessment of Likelihood of Occurrence Scoring risks by country and industry based on externaldata*1 Combining data on MUFGs number of employees bycountry,amount of cred

297、it per country/sector,etc.withthe above scores to assess the likelihood of occurrenceCreation of Human Rights Issues Map Mapping of each salient human rights issue for MUFG,with severity on the vertical axis and likelihood ofoccurrence on the horizontal axisIssues on Employees Issues on Customers(Is

298、sues on ours in providing financial service)Issues on Borrowers/Investees Issues on SuppliersLowHighLikelihood of OccurrenceaRisks related tocountries in conflictfIssues on the local residents of borrowers/investees*3gChild laborbRight to privacyhIssues related tothe suppliers localpopulation*3Labor

299、 issues onSupplier employees*2jiLabor issues onemployees of borrowers/investees*2oProviding responsiblefinancial servicesnForced labor/human traffickingeAccess to financialserviceskFreedom of association and the right to collective bargaininglIssues on discrimination against employeesmRight to priva

300、cycInhumane treatmentof employeesdTo employee laborother issues related*2Resilient Society Respect for Human RightsHuman Rights Issues MapHighSeverity38優先課題：活力溢社会Resilient SocietyRespect for Human RightsPriority Issues:Sustainable SocietyPromotion of SustainabilityAppendixPriority Issues:Vibrant Soc

301、iety MUFG is committed to respecting the human rights of its employees by preventing discrimination and harassment,and by reducing overtime work.MUFG is committed to protecting and respecting the privacy of our customers by properly managing their personal information.Additionally,we arepromoting va

302、rious initiatives to provide financial services that take human rights into consideration.Initiatives for EmployeesPreventionofDiscriminationandHarassment MUFG Group companies have established consultation desks within the company forsexual harassment and power harassment.The Bank has established a

303、HarassmentPrevention Manual and conducts ongoing training to prevent harassment.RespectforFreedomofAssociationandCollective BargainingRights MUFG is committed to respecting workers freedom of association and collectivebargaining rights in accordance with its Human Rights Statement,and ensures itscom

304、pliance through awareness raising activities.ProtectionofEmployeesPersonalInformation At MUFG,each company is committed to the appropriate protection and use ofemployees personal information in accordance with the“Act on the Protection ofPersonal Information”and the“Act on the Use ofNumber to Identi

305、fy SpecificIndividuals in Administrative Procedures”,and other relevant laws and regulations.Compliancewithlawsandregulationsregardingworkingconditions MUFG Group companies comply with the laws and regulations of the countries andregions in which they operate,and provide salaries exceeding minimum w

306、age and fullyimplement the concept of equal pay for equal work.ReducingOvertime MUFG complies with the laws and regulations of the countries and regions in which ourgroup companies operate in respect of further improving the workplace environment,including the reduction of long working hours while e

307、nsuring that our employees canstay healthy and improve their work life balance.For example,in Japan,in addition toaccurately ascertaining each employees work status,management operates with anawareness of limits set on working hours and the intervals within which employeeswork.Overtime hours for emp

308、loyees are also being reduced by optimizing operationsthrough the use of RPA(robotic process automation),setting target times for leavingthe office,and establishing early finish days.Management of Our Customers Information Since MUFG believes it is our social responsibility to handle customers perso

309、nalinformation properly,we established and published the Personal Information ProtectionPolicy.In addition,in order to realize a unified management system within the Groupcompanies,we have established the“MUFG Personal Information Protection Principle”(the“Principle”)and each Group company has estab

310、lished its own“Personal InformationProtection Procedure”,etc.based on the Principle.In addition to internal informationmanagement,we have prepared a system to check whether the information is managed byoutside contractors in accordance with the Personal Information Protection Law and otherrelevant l

311、aws.Identifying Human Rights Impacts in the Planning and Development of Productsand Services and The Publication of Advertising Materials Group companies constantly check whether sufficient measures have been taken at theplanning and development stages of products and services from the“customerspers

312、pective,”and risk assessments are conducted for new products and services,includingcustomer protection and the customers viewpoint.When publishing advertising materials,we check for problematic expressions from the perspective of respect for human rights.Considerations about Human Rights in Establis

313、hing AI Management Procedures AI technologies are valuable and should be leveraged,but we also acknowledge therisks that they may pose to human rights.That includes issues of fairness that mustbe avoided when having AI make decisions,as AI may judge based on the gender,race,or other personal attribu

314、tes of the subjects involved.Aware of those risks,eachcompany in the MUFG Group has defined rules in that regard.For example,MUFGBank has established AI Management Procedures that ensure fairness when AI isused in credit screening process,customer service chatbots,and other processes inwhich certain

315、 information should not be used as decision criteria.Increasing Access to Financial Services In the Asian region,ensuring equal access to financial services is a challenge due tothe lack of bank branches and ATMs in remote and rural areas,and ignorance of theexistence and use of available services.M

316、UFG contributes to ensuring equal accessto financial services in Asia by providing opportunities to access financial servicesand working to improve financial literacy.Resilient Society Respect for Human RightsDue Diligence Process(1/3)Initiatives for Customers39優先課題：活力溢社会Resilient SocietyRespect for

317、 Human RightsPriority Issues:Sustainable SocietyPromotion of SustainabilityAppendixPriority Issues:Vibrant Society MUFG has implemented a due diligence process to identify and assess environmental and social risks or impacts of financed projects,based on the MUFG Environmental and Social Policy Fram

318、ework and the Equator Principles.Finance not providedWhen the clients environmental and social consideration for the potential risks or impacts is not consideredIn cases where there is a strong potential for negative impacts on corporate valueIn cases with the potential to negatively impact the corp

319、orate value of MUFG in terms of reputational risksConfirmation of sufficiency of environment and social considerationsConsideration for financing is possible(proceed to the credit determination process)N/AEnhanced Due DiligencePrimary responsibility bearer:Sustainability Office,etc.The department re

320、sponsible for environmental and social risk management conducts due diligence.Primary responsibility bearer:Discussion with relevantdepartments such as the risk management departmentDiscussion of the response participated in by seniormanagementProhibited TransactionsStandard Due DiligencePrimary res

321、ponsibility bearer:Department in charge(of the client)Based on public information and information provided by the client,the department in charge determines whether the business falls under thecategories:“Prohibited Transaction,”“Transaction of High Caution,”or“Transaction subject to the Equator Pri

322、nciples.”N/ATransactions of High Caution or“Transaction subject to the Equator Principles”Discussion within a framework participated by senior managementIdentified Human Rights IssuesNumber ofTransactionsForced Labor,Human Trafficking6Child Labor3Impact on Indigenous Peoples Rights and Communities6I

323、nvoluntary Displacement5Issues Related to the Working Environment and Other Employee Rights1Total21Status of the Response to IssuesNumber ofTransactionsConfirmed that Appropriate Actions or Measures to Prevent Recurrence Have been Taken118Credit Transactions Have been Called Off21Confirming the Iden

324、tified Issues and the Status of Response by the Client32Total21*1.Due diligence was completed in or after April 2023*2.In or after April 2023*3.Due diligence is yet to be completed as of the end of May 2024Initiatives for Borrowers/InvesteesDue Diligence ProcessStatus of Implementation of Human Righ

325、ts Due DiligenceHuman rights issues identified in accordance with MUFG Environmental and Social Policy Framework andthe Equator Principles f r om April 2023 to May 2024.Transactions for which due diligence wasimplemented due to multiple human rights issues are double counted.There are 12 transaction

326、s in totalother than those above,for which due diligence was completed in or before March 2023 and monitoringcontinues to be conducted.Resilient Society Respect for Human RightsDue Diligence Process(2/3)40優先課題：活力溢社会Resilient SocietyRespect for Human RightsPriority Issues:Sustainable SocietyPromotion

327、 of SustainabilityAppendixPriority Issues:Vibrant Society MUFG is committed to respecting human rights in our supply chain through the revision of“Approach to Purchasing Activity”and the implementation of human rights due diligence.MUFG Asset Management is committed to providing investment returns t

328、o our clients,and is taking actions that promote sustainable value enhancement and provide solutions to environmental and social issues faced by investees through our stewardship activities.Risk Identification and AssessmentNewTransactions Check for risks related to human rights with respect to impo

329、rtant external contractors*3 Check through adverse media screening*4ExistingTransactions Regular checks of major suppliers*2are conducted at the Sustainability Office and other sections to determine if there are any highly severe human rights issues(child labor,forced labor,and human trafficking)Con

330、ducting engagement activities,exercising votingrights,and taking other initiatives for addressingsustainability challenges including human rightsissues.Engaging with investees in collaboration and coordination with domestic and international initiatives and investment agencies Working with market pa

331、rticipants,and making direct and indirect policy recommendations to regulators,initiatives,academia,among othersCollaborativeEngagementPublicEngagement Selecting priority themes from the investment universe MUFG AM has identified,and engaging with investees highly relevant to those themesThematicEng

332、agement*1.The Bank:suppliers with ongoing transactions;The Trust Bank and the Securities:major suppliers.*2.Major suppliers of the Bank,the Trust Bank,and the Securities.*3.Implemented by the Bank and the Trust Bank.*4.Implemented at the Bankss European and Americas offices.etc.Initiatives for Suppl

333、iersInitiatives as Asset Manager To promote effective measures addressing human rights issues such ashuman rights management in the supply chain and the realization of diversity,we will prioritize dialogue with high-impact companies and work towards mutualunderstanding with our investee companies.StewardshipActivitiesResilient Society Respect for Human RightsDue Diligence Process(3/3)Formulating a