PRESS RELEASE

Japan’s Largest Bank Targeted by Climate Resolution:
Mitsubishi UFJ Financial Group told to align with ParisTOKYO, Japan, March 29 2021: Japanese NGO Kiko Network, along with three individual
investors, have just filed Japan’s second ever climate resolution on a Japanese financial
institution, this time on Japanese megabank Mitsubishi UFJ Financial group (hereafter“MUFG”). The resolution calls on the company to adopt and disclose a plan to align its
financing and investments with the Paris Climate Agreement. 1 2 The resolution was filed onMarch 26th and received by MUFG today.
“While MUFG has strengthened its policies to some extent, it is currently in no way alignedwith the Paris Agreement,” said Kimiko Hirata, International Director of Kiko Network. “Inparticular, as a business MUFG needs to respond to the financial and reputational risks posedby climate change, establishing a business strategy with short and medium term targets, andtaking immediate substantive action if the bank is to align all financing, including corporate
finance, with the Paris Agreement.”
To date, MUFG has established sustainability policies, and committed to zero out project
financing of coal-fired operations by 2040. However, MUFG continues to be one of the leading
financiers of fossil fuels and deforestation-linked activities around the world, investing andunderwriting operations that are accelerating climate change on a global scale. Notably,
MUFG was ranked the 3rd largest global lender to the coal industry over the last two years,
the 6th largest fossil fuel banker over the last five years since the Paris Agreement, and the7th largest banker of the palm oil industry over four years since Paris.
“MUFG’s failure to pivot from fossil fuel financing should be a major concern to shareholders,
especially since its global competitors’ transitions are gathering pace,” said Megu Fukuzawa,Energy Finance Campaigner at Market Forces. “Pledging only for the reduction of coal
power project finance is far from enough, given that all coal power stations must be shut by
2040 worldwide at the latest. MUFG should show how it plans to engage with its clients inorder to get there.”
Under MUFG’s current policies, MUFG will not be able to achieve net zero emissions by 2050,
which is critical for achieving the 1.5ºC goal. If MUFG truly intends to reach net zero, it mustcease all financing to fossil fuels and deforestation without exception.

1 This shareholder resolution is a continuation from the resolution filed by Kiko Network with Mizuho

Financial Group last year, urging Japanese financial institutions to take greater action on climatechange2 Australian NGO Market Forces, US NGO Rainforest Action Network (RAN), and 350,org Japansupport this resolution. Market Forces Energy campaigner Megu Fukuzawa, RAN's Japan
Representative Toyoyuki Kawakami, and 350.org. Japan Representative Takayoshi Yokoyama
respectively joined as co-filers of this resolution in an individual capacity.

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“As one of the world's largest bankers of Conflict Palm Oil, MUFG is financing the destructionof carbon-rich rainforests and peatlands, but has failed to disclose this climate impact,” said
Toyoyuki Kawakami, Japan Representative of Rainforest Action Network. “With thisresolution, MUFG must chart a path that is aligned with a maximum global temperature rise of
1.5ºC that includes no further financing of deforestation.”
In recent years, overseas financial institutions and insurers have progressively retreated fromfinancing coal power. Most recently UK-based HSBC announced the decision to phase out
finance to coal-fired power generators and related developers by 2040, with a progress reporton the creation and announcement of its new strategy, including a short to medium-term
strategy for all sectors, to be announced at the annual general shareholder meeting in May.
This month, US-based Citigroup became the first major US bank to commit to restrict financing
for companies expanding coal power and to phase out financing for nearly all coal powercompanies over the next two decades.
“Keeping temperature rise to 1.5ºC is a race against time, and relying on technologies that
don't exist today, such as negative emissions, is the same as abdicating responsibility foryounger and future generations,” said Takayoshi Yokoyama, Japan Representative of350.org Japan. “MUFG must take responsibility for solving the climate crisis, as is consistent
with their pledge under the UN Principles for Responsible Banking.”
This resolution aims to ensure that investors will be able to appropriately assess the climate
risk posed by MUFG’s financing and investments in order to decide on their investments
accordingly, as well as encourage MUFG to reduce its climate risk and maintain its corporate
value.
Kiko Network and the other 3 co-filers of this resolution intend to reach out to other investors
to support this resolution.
Related documents
Shareholder resolution filed with Mitsubishi UFJ Financial Group (Japanese PDF)
The Proposal for MUFG (English PDF)
Investor Briefing: Shareholder resolution filed with MUFG (Japanese PDF)
Investor Briefing: Shareholder resolution filed with MUFG (English PDF)
Contact
Kiko Network www.kikonet.org
Tokyo office: TEL +81-3-3263-9210
Kimiko Hirata (khirata[@]kikonet.org, TEL +81 90-8430-7453)
Yasuko Suzuki (suzuki[@]kikonet.org)
Market Forces www.marketforces.org.au
Megu Fukuzawa (megu.fukuzawa[@]marketforces.org.au)
Sachiko Suzuki (sachiko.suzuki[@]marketforces.org.au)
Rainforest Action Network (RAN)
Emma Lierley (emma[@]ran.org, TEL: +1 425-281-198)
350.org Japan
Nicole Han (nicole.han[@]350.org, TEL +65 9828 1538)

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