MUFG AM Sustainable Investing Policy
MUFG Asset Management (MUFG AM) is the global brand of Mitsubishi UFJ Trust andBanking Corporation and Mitsubishi UFJ Asset Management Co., Ltd, Mitsubishi UFJ Real
Estate Asset Management Co., Ltd., Mitsubishi UFJ Asset Management (UK) Ltd., andMitsubishi UFJ Alternative Investments Co., Ltd..
MUFG AM has established the MUFG AM Sustainable Investing Policy (the Policy) as an
approach to lay a solid foundation for the promotion of sustainable investing.
1. Fundamental approach to sustainable investing
MUFG AM believes that sustainable investing will bring long-term financial returns andsolutions to environmental and social challenges that will result in creating a better future
for us. With our shared vision, "Investing for our Sustainable Future", we will promotesustainable investing through ongoing dialogues with investee companies, asset owners
and stakeholders to fulfill our fiduciary duty.
2. Our actions for a sustainable future
MUFG AM believes that delivering a sustainable future requires an approach ofsustainability transformation. Our investment approach and processes will therefore
incorporate the following actions.
(1) ESG integrationMUFG AM believes that investments that take into account risks and opportunities
stemming from environmental (E), social (S) and governance (G) factors will improve
long -term risk-adjusted returns and contribute to solving ESG issues. Accordingly, MUFG
AM will promote the incorporation of ESG information alongside financial information into
the investing process (ESG integration).
(2) Stewardship (engagement and proxy voting)
Stewardship is undertaken by highly-qualified experts in ESG, fund managers andanalysts who will perform company engagement and proxy voting activities. MUFG AMis committed to improving the risk and return profiles of the assets under management
by identifying and reducing risks that could materialize over the long term, andenhancing sustainable growth and corporate performance. We will promote solutions tosustainability challenges to realize a sustainable future.
(3) Exclusion and divestment
MUFG AM believes that engaging with investee companies can empower them to makepositive changes towards a sustainable future. For companies involved in businesses
considered contrary to the realization of a sustainable future, MUFG AM will, in principle,
implement negative screening for all the assets under management that we areentrusted with. (We exclude companies which are involved in the manufacturing anddistribution of anti-personnel landmines, cluster munitions and biological and chemical
weapons from our scope of investments.) However, this does not apply to investments
1based on customer guidelines, outsourced investment, and passive investment.
(4) Development and provision of products and services that transform society
MUFG AM recognizes the importance of providing transformative investment products
and services that capture the actual needs of customers and markets in order to achievea transformation to sustainability. To this end, we will develop and strengthen ourinvestment strategies and approaches, and seek to provide solutions.
(5) Identification of issues to be resolved
MUFG AM will prioritize the issues for urgent resolution that prevent the realization of asustainable future, and that make a negative impact on assets under management overthe long term. We believe that addressing climate change issues is essential for therealization of a sustainable future. In this connection, MUFG AM joined the "Net Zero
Asset Managers initiative”, and expressed its commitment to the realization of carbon
neutrality with the promotion of transition*1 through sustainable investment. Aiming forcarbon neutrality by 2050, we are committed to promote the transition that enables highGreenhouse Gas (GHG) emitting industries to contribute to decarbonizing society.
*1 Transition: a transition approach in which industries with high GHG emissions areempowered and enabled to contribute to carbon-neutrality with such initiatives asrenewable energy for decarbonization and low-carbonization(6) Definitions of sustainable investing funds
Definitions of sustainable investing funds of each MUFG AM company are defined basedon this Policy to further promote sustainable investment.
3. Scope of application
Sustainable investing activities set forth in this Policy are in principle applicable to allclasses of entrusted assets under management by MUFG AM.
The Policy will be revised on a regular basis, and subject to changes in the businessactivities and environment of each MUFG AM company.
Disclaimer
The Policy is established by the entities listed as comprising MUFG AM above. For theavoidance of doubt, no contractual or agency relationships arise between any MUFG AM
entity and any other MUFG group entity as a result of or in connection with the disclosure
or implementation of the Policy. Further, neither any MUFG AM entity nor any other MUFG
group entity assumes any legal obligation, liability or responsibility as a result of its
disclosure and implementation.
Established in March 2023
Revised in October 2023
Revised in July 20242