Bank of Tokyo. Photo via Wikimedia Commons. CC BY-SA 4.0
Financial giant unveils enhanced framework to drive environmental and social impact, aligning with global standards and stakeholder demands
August 14, 2024
Mitsubishi UFJ Financial Group (MUFG), one of Japan’s largest financial institutions, has taken a significant step toward promoting sustainability and positive social impact. In a recent announcement, MUFG unveiled its Sustainable Finance Framework, designed to channel capital markets funding into projects that benefit the environment and society.
As an international financial institution, MUFG offers a diverse range of services, including asset management, trust banking, and commercial banking. The group is dedicated to providing financial solutions that promote economic sustainability and align with global trends and customer demands
In a move to address the growing demands of its stakeholders and contribute to societal progress, MUFG has significantly increased its social and sustainable finance targets. As of April 2024, MUFG has raised its goal for 2030 from ¥35 trillion to ¥100 trillion.
MUFG’s Framework for this initiative adheres to several key international principles and guidelines. These include the Green Bond Principles 2021 (GBP), Social Bond Principles 2023 (SBP), and Sustainability Bond Guidelines 2021 (SBG), all published by the International Capital Markets Association (ICMA).
Additionally, it aligns with the Green Loan Principles 2023 (GLP) and Social Loan Principles 2023 (SLP) issued by the Loan Market Association (LMA), the Asia-Pacific Loan Market Association (APLMA), and the Loan Syndications and Trading Association (LSTA).
This increase reflects MUFG’s proactive approach to supporting clients’ transition efforts and anticipating their future needs through its role as a financial intermediary. The group aims to contribute to sustainable business growth and enhance its corporate value through targeted financing initiatives, aligning with its purpose of being “committed to empowering a brighter future.“
By aligning with these internationally recognized principles, MUFG is reinforcing its commitment to building a sustainable environment and society through the provision of financial services. This comprehensive approach, which addresses immediate stakeholder needs and positions MUFG as a leader in sustainable finance, has the capacity to drive long-term positive change and shaping a brighter future.
Subscribe to our newsletter.
This article was originally published on IMPAKTER. Read the original article.