<Joint Press Release>

MUFG Commits to Carbon Neutrality by 2050 but Punts Detailed Plan on
Paris Alignment
Shareholders Will Not Withdraw Climate Resolution
Kiko Network
Market ForcesRainforest Action Network350.org JapanMay 18 2021
On May 17, Mitsubishi UFJ Financial Group (“MUFG”) published the “MUFG Carbon Neutrality
Declaration,” and announced its plan to achieve net zero financed emissions by 2050. Theannouncement follows a resolution filed on MUFG in March by Kiko Network and three individual
shareholders affiliated with Market Forces, Rainforest Action Network, and 350.org Japan (“co-filers”),
calling on the bank to adopt and disclose a plan to align its financing and investments with the goals ofthe Paris Agreement. Co-filers welcomed MUFG’s decision to strengthen its policy toward the Parisgoals.
However, given the absence of metrics and short to medium-term targets which are requested by theresolution, today’s announcement by MUFG does not provide sufficient assurance that MUFG’s portfolio
will be aligned with the Paris Agreement. Co-filers have therefore decided to go forward with the climate
resolution in order to secure a stronger commitment by MUFG.
Failure to Set Short and Medium Term Targets
MUFG is the first Japanese bank to commit to a carbon-neutrality goal of net zero financed emissions by2050 and to join the international Net Zero Banking Alliance (NZBA) initiative. Net zero by 2050 is thelong-term goal necessary in order to limit global temperature rise to 1.5ºC, and is also the goal recently
set by the Japanese Government. Given MUFG’s status as the largest Asian banker of climate chaos,the filers welcome the net zero commitment by MUFG. However, MUFG refrained from setting short andmedium term targets, stating instead that it “will work to set and disclose an interim milestone for 2030 in
FY2022.” Given the urgency of the climate crisis and scientific consensus that global CO2 emissions
need to be halved by 2030 in order to reach the 1.5ºC target, it is worrying that MUFG’s decision to not
set short and medium-term targets makes it impossible to confirm Paris alignment. Moreover, in order toachieve these targets, it is necessary to measure and disclose all financed emissions (Scope3), but
MUFG has made no explicit commitment to do so.
Coal Power Finance Phase Out Target
Last year, MUFG set a target to reduce the project finance balance for coal-fired power generation tozero by FY2040. With this announcement, MUFG has clarified that it will “aim to disclose the portfolio

reduction target for corporate customers whose business largely involves coal-fired power generation.”
While this is a step forward, in order to achieve the 1.5ºC target, it is necessary to decommission allcoal-fired power plants in OECD countries by 2030 and worldwide by 2040. MUFG’s lack of commitment
to phase out all coal finance is not consistent with science and contrasts with recent demands by theCOP26 Presidency.
Inadequate Policies on Other Carbon-Intensive Sectors
As with the revision of the policy framework last month, this announcement failed to make acomprehensive commitment to stop financing oil and gas expansion or the destruction of forests andpeatlands, both of which are hugely carbon-intensive. In order to achieve Paris alignment, there is noroom to support any fossil fuel expansion or further degradation of natural ecosystems. Given MUFG’sranking as the sixth largest banker of fossil fuels in the world and one of the top financiers of
rainforest-destroying commodities, its current commitments do not properly address the enormous
carbon intensity of its financing and investment portfolio.
<Commentary from shareholders>
Kimiko Hirata, International Director of Kiko Network, stated, “MUFG’s announcement of a net zeroby 2050 goal and its joining of the Net Zero Banking Alliance are important steps forward. However, there
is no decision on the concrete metrics and goals for achieving the short and medium term goals of coal
power emissions reduction and decarbonization of corporate finance. In order to determine Parisalignment, MUFG must adopt stronger policies with more urgent timelines.”
Takayoshi Yokoyama, 350.org Japan Representative, stated “MUFG’s declaration of net zero
greenhouse gas emissions in its investment and loan portfolio by 2050 is the first attempt by a Japanesebank to step forward in climate action. However, it is concerning that MUFG did not set short- andmedium-term targets that are necessary to achieve the 1.5 degree target. In order to tackle the climate
crisis, MUFG must stop investing in and financing new fossil fuel projects immediately as a first priority.
They need to urgently establish a comprehensive phase-out strategy for fossil fuels, especially that ofcoal power, in line with the science.”
Toyoyuki Kawakami, Japan Representative of Rainforest Action Network, stated “MUFG’s Net Zerocommitment is an important acknowledgement of its role as a major carbon emitter. However, net zerocommitments are meaningless without an immediate stop to financing fossil fuel expansion anddeforestation, and any reliance on questionable carbon offsets is unacceptable. It is also very concerningthat MUFG’s policies do not apply to its Indonesian subsidiary, which is an important funder ofcarbon-intensive industries in Indonesia.”
Megu Fukuzawa, Energy Campaigner of Market Forces, stated, “If this announcement was meant toconvince investors that MUFG was seriously dealing with climate change it falls well short of that goal.
MUFG is simply tinkering around the edges of an urgent and escalating issue, and its policies allow themto continue financing fossil fuels and supporting coal power companies around the world.”
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