Shareholders send MUFG a stark climate warning
June 29, 2021: At its AGM today in Tokyo, 23% of shareholders issued a major climate warning toMitsubishi UFJ Financial Group (“MUFG”) management by voting in favour of a resolution filed by Kiko
Network and three individual shareholders affiliated with Market Forces, Rainforest Action Network, and350.org Japan (“co-filers”), calling on the bank to adopt and disclose a plan to align its financing andinvestments with the goals of the Paris Agreement.
resolution
In addition to receiving support from investors with trillions of assets under management, such as EOS atFederated Hermes, the resolution proved a catalyst for a major policy shift from MUFG. On May 17, it
published the “MUFG Carbon Neutrality Declaration,” and announced its plan to achieve net zero financed
emissions by 2050.
As influential international proxy advisor ISS stated in its advice regarding the AGM, ‘we also should statethat the bank's move does not appear unrelated to external pressure: after Kiko Network submitted theproposal in March, MUFG announced its carbon neutrality declaration, so one interpretation of such moveis that it was prompted by pressure from the group. That means that Kiko Network's engagement with
MUFG has already successfully borne fruit.”“Although two major proxy advisors recommended investors vote against the proposal, it is very positiveand encouraging that we have nearly one-fourth of investors’ support.
This filing serves as a testament to the impact of investor pressure. Today’s vote is a significant rebuke tomanagement and a clear warning that it must immediately up its game or face even greater pressure,”
said Kimiko Hirata, International Director of Kiko Network.
“Faced with the crystallizing physical and financial impacts of the climate crisis, investors are making it
plain that MUFG needs to move further and faster.”Given MUFG’s status as the largest Asian banker of climate chaos, the filers welcomed the May 17 net
zero commitment, while noting its numerous shortcomings, including:-A lack of short and medium term targets required to confirm Paris alignment, stating instead that it“will work to set and disclose an interim milestone for 2030 in FY2022;”
No explicit commitment to measure and disclose all financed emissions (Scope3);
No commitment to phase out all coal finance, in contrast with recent demands by the COP26
Presidency;
No comprehensive commitment to stop financing oil and gas expansion or the destruction offorests and peatlands, both of which are hugely carbon-intensive.

“While MUFG’s new policy has temporarily assured some investors the bank is on the right track, today’svote shows a high level of dissatisfaction and concern,” said Takayoshi Yokoyama, 350.org Japan
Representative. “Even though our proposal was rejected, there were quite a few votes in favor, and as theCorporate Governance Code shows, MUFG must now analyze the reasons for investors' support anddeepen dialogue with its shareholders. MUFG now has the opportunity to close its climate loopholes.”“Given MUFG’s ranking as the sixth largest banker of fossil fuels in the world and one of the top financiersof rainforest-destroying commodities, its current commitments do not properly address the enormous
carbon intensity of its financing and investment portfolio. It is necessary for MUFG to take these
supporting votes from its shareholders seriously and take prompt action.” said Toyoyuki Kawakami, Japan
Representative of Rainforest Action Network.
“The world is shifting rapidly to clean energy, but MUFG continues to cling onto the past,” said Meg
Fukuzawa. “Investors have a responsibility to keep up the pressure and it’s critical for them to apply arazor sharp focus during the next year to ensure MUFG moves from words to genuine action.”

Photos of the AGM action / Press Conference are available here.
For Inquiries, please contact:
Kiko Network, Kimiko Hirata, khirata[@]kikonet.org
Market Forces, Meg Fukuzawa, meg.fukuzawa[@]marketforces.org.au
Rainforest Action Network, Emma Lierley, emma[@]ran.org
350.org, Nicole Han, Nicole.han[@]350.org