Mitsubishi UFJ Financial Group, Inc. (MUFG)

MUFG Adopts Environmental Policy Statement,
Human Rights Policy Statement, and Environmental andSocial Policy Framework
Tokyo, 15 May 2018 --- MUFG pursues its management vision as part of our mission
as a financial institution to develop lasting relationships from a long-term perspectivewith both our clients and society to achieve shared sustainable growth. As part of thismission, we are advancing initiatives with goals including protecting the global
environment and promoting human rights. In particular, we are proactively working toarrange project finance for and provide lending to businesses involved in renewableenergy, such as solar energy and wind power.
With a view to further strengthening our undertakings with relation to theenvironment, society, and governance, we recently formulated the MUFG
Environmental Policy Statement and the MUFG Human Rights Policy Statement:
fundamental policies designed to contribute to the resolution of environmental andsocial issues through our business activities. As a framework for implementing thesebasic policies, we have formulated the MUFG Environmental and Social Policy
Framework. This will go into effect on July 1, 2018.
1. Summary(1) MUFG Environmental Policy Statement
MUFG recognizes that acting to address global environmental issues, including
protecting the environment and responding to climate change, is the responsibilityof all human beings. In light of recent trends in society and the debate aboutclimate change, we have revised our policy on the environment. The group’s four
previously formulated policies, namely the MUFG Environmental Statement, the
MUFG Environmental Policy, the MUFG Environmental Action Policy, and Our
Approach to Addressing Biological Diversity Conservation, have been revised andintegrated into the new MUFG Environmental Policy Statement.
(2) MUFG Human Rights Policy Statement
MUFG recognizes respect for human rights as an important issue that can beaddressed through the management of our business. We have revised the group’s
basic policies on human rights, which previously concentrated on the human rights
of officers and employees of the group, with reference to international standards onhuman rights including the UN’s Guiding Principles on Business and Human
Rights. Based on this, we have adopted the MUFG Human Rights Policy
Statement, which stipulates that officers and employees must work to respect the1human rights of all people, and also urges our clients and suppliers to respecthuman rights.
(3) MUFG Environmental and Social Policy Framework
MUFG recognizes that the environmental and social risks arising from the businessactivities of each group company are important to our business and requireappropriate management. Under the MUFG Environmental Policy Statement andthe MUFG Human Rights Policy Statement, we have formulated the MUFG
Environmental and Social Policy Framework. This framework aims to appropriately
identify and manage the environmental and social risks arising from our businessactivities and those of our main subsidiary companies.
We will periodically review the content of the MUFG Environmental Policy
Statement, the MUFG Human Rights Policy Statement, and the MUFG
Environmental and Social Policy Framework in accordance with changes inbusiness activities and the business environment, and will work to improve andrefine them.

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(Reference)
Outline of MUFG Environmental Policy Statement, MUFG Human Rights Policy
Statement and MUFG Environmental and Social Policy Framework*1 Applies to MUFG Bank, Ltd., Mitsubishi UFJ Trust and Banking Corporation and Mitsubishi UFJ
Securities Holdings Co., Ltd.

Financing arranged in the renewable energy sector
Global ranking(USD millions)

5,000

4th

3rd

1st

2nd

2nd

1st

1st

4,000
3,000
4,343

2,000
1,000

2,309

1,837

2,094

2,031

2012

2013

2014

2,639

2,911

2015

2016

0
2011

Source: Bloomberg New Energy Finance ASSET FINANCE/Lead arrangers LEAGUE TABLE

3

2017

2. MUFG Environmental Policy Statement
1. Our Approach to Addressing Environmental Issues
Mitsubishi UFJ Financial Group (hereinafter referred to as MUFG) recognizes thattaking actions to address global environmental issues, including protecting theenvironment and responding to climate change, is the responsibility of all humanbeings.
As a result, MUFG, as a responsible corporate citizen, is aiming to contribute to therealization of a sustainable society by protecting the global environment. In order toachieve this goal, not only does MUFG comply with applicable legislation andinternational agreements, but also responds appropriately when our operations
result in environmental risks or negative impacts, by reducing the environmental
impacts of our operations, as well as actively working towards finding solutions to
global environmental issues through our business activities.
2. Positioning of MUFG Environmental Policy Statement
In line with our Corporate Vision, MUFG has adopted the mission of being afinancial institution that is committed on a long-term basis to developing lasting
relationships with both our clients and society, and promoting shared andsustainable growth for a better world, a vision we are continuously working
towards.
MUFG recognizes that environmental issues are significant to our operations. This
Environmental Policy Statement, which is based on our Corporate Vision and ourPrinciples of Ethics and Conduct supporting such Corporate Vision, provides thebasis for our policies in pursuing environment related initiatives.
3. Environmental Actions through Business Activities(1) Actions through business activities
MUFG supports clients that actively seek to find solutions to environmental issues
and manage their environmental impacts. Additionally, MUFG takes into
consideration the environmental impacts associated with our products andservices. In the case that potential environmental impacts associated with our
products and services are identified, MUFG responds in an appropriate manner.
MUFG actively promotes the appropriate management of environmental risks,
including climate change.
Through this approach, MUFG aims to contribute to the realization of a sustainable
society and increase corporate value through the sustainable growth of ourbusiness.
 Climate Change
MUFG recognizes climate change as a critical issue for the global environment andbelieves that climate change challenges must be addressed to realize sustainablegrowth and support the continued operation of each group company and ourclients. MUFG recognizes that as a global financial institution, we play an importantrole in the transition to a low-carbon society and other global actions aimed atcombatting climate change.
Based on such recognition, MUFG promotes the transition to a low-carbon
4society and reduces climate change risk through actions associated with bothour own operations and through the products and services we provide to clients.
Initiatives taken by MUFG include the following: We will move ahead with measures to reduce greenhouse gas emissions
through our support for businesses involved in solar and wind power and otherforms of renewable energy and by providing funding for companies that pay due
attention to environmental risks.
 Consideration of the potential climate change impacts associated with the
products and services provided by each group company and responding in an
appropriate manner based on thorough consideration of such impacts
 Research into the potential future impacts of climate change on our business to
support management of climate change risk.
In addition, MUFG supports the following climate change related international
agreements and initiatives:‒ Paris Agreement‒ Recommendations of Task Force on Climate-related Financial Disclosures(TCFD)‒ Principles for Responsible Investment (PRI）‒ Equator Principles‒ United Nations Environment Programme Finance Initiative (UNEP FI）‒ Principles for Financial Action for the 21st Century‒ CDP (formerly the Carbon Disclosure Project) Biodiversity
Maintenance and protection of the biodiversity which supports our society is thefoundation for the realization of a sustainable society.
MUFG supports businesses that protect biodiversity through the provision of
products and services. Each group company also takes appropriate measures toprevent negative impacts on biodiversity associated with our products andservices.
(2) Actions to Reduce Our Environmental Impacts
Through initiatives such as those shown below, each group company works towards
reducing our environmental impacts, environmental improvement and pollution
prevention across all of our operations.
 Reduction of Environmental Impact at Our Offices
Recognizing the environmental impact associated with resource consumption andwaste generation from our business activities, we work to minimize environmental
impacts through resource recycling efforts and the efficient use of energy andresources.
 Environmental Improvement and Pollution Prevention
Monitoring the impacts of our activities on the environment on a continuous basis
and working towards environmental improvement and prevention of pollution.
 Awareness Raising Across the GroupMUFG Environmental Policy Statement is shared across the entire group and5supported by initiatives to raise awareness of environmental issues among our
employees. In-house environmental education and support is provided toencourage environmental protection activities of our executives and employees.
4. Governance and Management System
MUFG Environmental Policy Statement was discussed by the CSR Committee
responsible for environmental and social issues and approved by the Executive
Committee.
The CSR Committee regularly reviews the need to update the policy statement andmakes amendments as necessary to reflect changes in our business activities andthe business environment.
5. Stakeholder Engagement
MUFG works to progress and improve our environmental initiatives as well as raiseawareness of environmental issues through engagement with external
stakeholders on MUFG’s publicly disclosed Environmental Policy Statement.
3. MUFG Human Rights Policy Statement
1. Commitment to Respect Human Rights
Mitsubishi UFJ Financial Group (hereinafter referred to as MUFG) recognizes
respect for human rights as an important issue to be addressed in the
management of our business for the realization of our Corporate Vision to be theworld’s most trusted financial group. We are committed to endeavor to fulfill our
responsibility to respect human rights across all of our operations.
2. Human Rights Principles
MUFG is guided by the following international principles for human rights:‒ Universal Declaration of Human Rights‒ Declaration on Fundamental Principles and Rights at Work (International Labour
Organization (ILO))‒ Guiding Principles on Business and Human Rights
In addition, MUFG supports and promotes the following international initiatives:‒ The OECD Guidelines for Multinational Enterprises‒ The United Nations Global Compact‒ Principles for Responsible Investment (PRI）‒ Equator Principles‒ United Nations Environment Programme - Finance Initiative (UNEP FI）‒ Principles for Financial Action for the 21st Century
While national governments are primarily responsible for protecting the humanrights of their citizens, MUFG supports and respects internationally recognizedhuman rights standards, regardless of whether the national legislation of therelevant country contains such protections or not.
In countries where local legislation conflicts with internationally recognized humanrights standards, MUFG seeks to respect international standards.
3. Positioning of the Human Rights Policy Statement
In line with our Corporate Vision, MUFG has adopted the mission of being a
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financial institution that is committed on a long-term basis to developing lasting
relationships with both our clients and society, and promoting shared andsustainable growth for a better world, a vision we are continuously working
towards.
With this Human Rights Policy Statement, which is based on our Corporate Visionand our Principles of Ethics and Conduct supporting such Corporate Vision, we
commit to respect human rights throughout our business operations.
4. Applicability & Scope
In compliance with this MUFG Human Rights Policy Statement, executives andemployees of each group company strive to respect human rights.
Additionally, MUFG urges clients and suppliers of each group company to respecthuman rights. MUFG also works to respond in an appropriate manner to known
cases of human rights violation by our clients or suppliers
5. Executives and Employees
MUFG is committed to eliminating all kinds of employment and workplace
discrimination from our business operations. We will not tolerate any type ofhuman rights violation including, but not limited to, discrimination on the basis ofrace, national origin, belief, religion, disabilities, family origin, gender, sexual
orientation, gender identity, age or health status as well as sexual, power and othertypes of harassment, forced labor, and child labor. All MUFG executives andemployees are required to comply with this commitment.
In addition, each group company provides consultation or support services forhuman rights infringements in the workplace. We show no tolerance for humanrights infringements and have established this system to prevent such incidents.
Human rights awareness-raising trainings are also provided for executives andemployees at all levels of our business as part of MUFG’s efforts to promote thecorrect understanding and appreciation of human rights issues among all
executives and employees.
6. Clients
MUFG expects its clients to respect human rights and avoid any human rights
violations. MUFG promotes the respect of human rights by responding in an
appropriate manner in situations where our products and services are directly
connected to violations of human rights and urging clients to implement theappropriate responses.
MUFG has introduced an Environmental Social Policy Framework, which
incorporates environmental and social due diligence requirements, to assess andmanage transaction related environmental and social impacts associated with thebusiness conducted with our clients.
7. Suppliers
MUFG expects suppliers to respect human rights and avoid human rights
violations. MUFG promotes the respect for human rights by responding in an
appropriate manner to known cases where human rights are negatively affected byour suppliers.
78. Remedial Actions
In cases when executives or employees of each group company, or financial
products or services provided by them, are confirmed as conducting or being
involved in activities which adversely affects human rights, MUFG responds in an
appropriate manner and implements remedial actions.
9. Governance and Management System
MUFG Human Rights Policy Statement was discussed by the CSR Committee
responsible for environmental and social issues and approved by the Executive
Committee.
The CSR Committee regularly reviews the need to update the policy statement andmakes amendments as necessary to reflect changes in our business activities andthe business environment.
10. Stakeholder Engagement
MUFG is committed to progressing and improving actions to ensure human rights
are respected through dialog and consultations on our Human Rights Policy
Statement with relevant stakeholders.
4. MUFG Environmental and Social Policy Framework
1. Introduction
The international community, aiming at achieving the Sustainable Development
Goals (SDGs) and Paris Agreement on climate change, is working towards theprotection of the global environment, which is fundamental to the existence ofhumanity and all living creatures, and the realization of a sustainable society.
As a global provider of financial services, Mitsubishi UFJ Financial Group(hereinafter, MUFG) defines its mission as being committed on a long-term basis
to developing lasting relationships with both our clients and society, andpromoting shared and sustainable growth for a better world.
In addition, through the financial services we provide we are actively working
towards finding solutions to environmental and social issues which also
contribute to our sustainable business growth and enhancement of our corporate
value.
MUFG recognizes that the environmental and social risks arising from thebusiness activities of each group company are important to our business andrequire managing appropriately. This Environmental and Social Policy
Framework (hereinafter, Framework) has been developed based on the “MUFG
Environmental Policy Statement” and “MUFG Human Rights Policy Statement”
which establish the basis for our policies for management of environmental andhuman rights issues respectively. The opinions and perspectives of various
stakeholders were taken into consideration in the development of the
Framework.
The Framework outlines the approach that MUFG takes in responding
appropriately to environmental and social issues in our business activities andcontributing to sustainable environmental and social development. Through the
adoption of this approach, we expect to contribute to the realization of a8sustainable environment and society.
To promote understanding and cooperation regarding our approach, the contentsof this Framework is communicated to clients in all of our group companies.
2. Governance
The MUFG Corporate Vision guides the way in which we carry out our businessactivities. To realize our Corporate Vision, the MUFG Principles of Ethics andConduct standards have been established which apply to executives andemployees of all group companies and guide their everyday decisions and actions.
The Framework is based on our Corporate Vision and Principles of Ethics andConduct.
(1) Positioning of the Environmental and Social Policy Framework
The Framework is based on the “MUFG Environmental Policy Statement ” and“MUFG Human Rights Policy Statement” and is structured to enable theappropriate identification and management of environmental and social risks
associated with our business operations. The Framework is aligned with the MUFG
reputational risk management framework to avoid negative impacts to MUFG
corporate value.
(2) Governance and Management System
The CSR committee, which reports to the Executive Committee, is responsible fordeveloping appropriate responses to the environmental and social issues relevant
to our business.
Individual transactions with significant environmental and social risks or impacts
that have the potential to negative impact on the corporate value of MUFG areassessed for reputational risk, as necessary. Transactions are evaluated with the
involvement of executive management, taking into consideration the potential
transaction related reputational risks.
(3) Role of Business Group
Business Groups are responsible for performing environmental and social due
diligence to assess the potential environmental and social issues associated withthe products and services to be provided. The assessment includes informationcollected from approaches such as interviews with clients. In implementing
environmental and social due diligence, Business Groups consult with the relevant
department responsible for management of environmental and social risks.
(4) Management of the Environmental and Social Policy Framework
The Framework was discussed by the CSR Committee and approved by the
Executive Committee. The CSR Committee regularly reviews the need to update
the Framework and makes amendments as necessary to reflect changes in ourbusiness activities and the business environment.
3. Applicable Products and Services
Products and services provided to clients by each group company include theextension of credit and the underwriting of bonds and stocks (hereinafter,
financing). We recognize that the provision of financing may potentially contributeto environmental and social impacts as well as an increase in associated risks.
9The Framework applies to new finance in all countries / regions for corporateclients of MUFG's core subsidiaries; MUFG Bank, Mitsubishi UFJ Trust andBanking, and Mitsubishi UFJ Securities Holdings (hereinafter referred to as "Core
Subsidiaries"). The Framework is integrated into the internal procedures andstandards of each Core Subsidiary.
MUFG Bank also conducts environmental and social due diligence of large-scale
projects based on the Equator Principles adopted in 2005.
4. Applicable Transactions
The Framework provides a guideline allowing us to confirm whether corporateclients receiving financing from each Core Subsidiary are fulfilling their social
responsibility by demonstrating appropriate consideration of environmental andsocial issues based on applicable legislation and international best practice.
Taking into consideration the nature and severity of associated environmental andsocial risks or impacts, MUFG has identified transactions which are "Prohibitedfrom Financing" and where "Financing is Restricted".
(1) Prohibited Transactions
The transactions listed below are considered as having significant environmental
and social risks or impacts. In cases where each Core Subsidiary is aware of theenvironmental and social risks or impacts, financing is not provided.
A) Illegal transactions and transactions for illegal purposesB) Transactions which violate public order and good morals
C) Transactions that negatively impact wetlands designated under the Ramsar
ConventionD) Transactions that negatively impact UNESCO designated World Heritage Sites
E) Transactions violating the Convention on International Trade in Endangered
Species of Wild Fauna and Flora (Washington Convention)1[1 Taking into consideration country specific considerations]F) Transactions involving the use of child labor or forced labor(2) Restricted Transactions
Restricted transactions consist of cross-sector items and sector specific items.
For transactions where the conditions listed below may exist, the potential thatenvironmental and social risks or impacts may exist is considered to be high andclients are expected to implement the appropriate environmental and social
measures. When each Core Subsidiary is considering providing financing for thesetransactions, the identification and assessment process for environmental andsocial risks or impacts will be used to confirm the client's approach to managing
environmental and social issues.
If the environmental and social management approach of client's is not consideredsufficient relative to the level of the potential risks or impacts, financing will not beprovided.
(i) Cross-sectoral items
A) Impact on Indigenous Peoples Communities
B) Land expropriation leading to involuntary resettlement
10C) Impact on High Conservation Value areas(ii) Sector specific items
A) Coal Fired Power Generation Sector
Protection of the environment, in particular actions which contribute towards
combatting climate change, is one of the most important issues for MUFG in
moving towards realizing a sustainable society. We actively provide financing to
renewable energy businesses, such as solar and wind power generation, tocontribute to providing solutions to environmental issues such as climate change
through our business activities.
We support international initiatives that are aiming to reach the objectives set by
the Paris Agreement and support the adoption of advanced technologies for highefficiency power generation which contribute to reducing greenhouse gases
emissions and Carbon dioxide Capture and Storage technologies.
MUFG Bank and Mitsubishi UFJ Trust and Banking refer to internationalguidelines such as OECD Arrangement on Officially Supported Export Credits,
when considering the provision of financing for new coal fired power generation.
Decisions on financing are made following recognition of both the local and theinternational circumstances surrounding coal fired power generation.
B) Cluster Munitions Manufacturing Sector
Civilian populations have been greatly affected by cluster munitions as they
release many bomblets over a wide area and because of their indiscriminate
effect. As a result, their use has generated significant humanitarian concerns
internationally.
In light of the inhumane nature of cluster munitions, Core Subsidiaries prohibit
the provision of financing to any company that manufactures cluster munitions.
5. Identification and assessment process for environmental and social risks or
impacts
A due diligence process to identify and assess the environmental and social risks
or impacts associated with transactions has been introduced.
(1) Standard Due DiligenceStandard due diligence is implemented by the department in the relevant businessdivision of each Core Subsidiary responsible for communications with the client.
The decision regarding categorization of the transaction as a “Prohibited
Transaction” or “Restricted Transaction” is made based on available public
information and information provided by the client.
(2) Enhanced Due Diligence
Transactions categorized as “Restricted Transactions”, in addition to standard due
diligence, are subject to enhanced due diligence. This is implemented by thedepartment responsible for management of environmental and social risks in eachCore Subsidiary. Decisions on financing are made following assessment of thefindings of the enhanced due diligence.
(3) Financing Reputational Risk Management Approach
Transactions assessed as having the potential to have significant negative impacts
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on the corporate value of MUFG are evaluated with the involvement of executive
management.
6. Training(1) Corporate Training and Education
Training on environmental and social issues is provided to relevant employees ofeach Core Subsidiary. The objective of the training is to enhance theunderstanding of global initiatives to environmental and social issues, as well as
the process of confirming the client’s approach towards management ofenvironment and social issues. The training also aims at the spread of ideas
supporting the Framework, and the environmental and social due diligenceprocess.
Specialized training, with the objective of advancing the implementation of the
Framework, is provided in divisions responsible for management of environmental
and social risks.
(2) Stakeholder Engagement
Implementation of the Framework includes constructive dialogue with various
stakeholders. This dialogue is intended to help identify appropriately environmental
and social risks or impacts to which MUFG is to respond and provides information
relevant to discussions on revisions to the Framework to increase its effectiveness.
[Disclaimer]
No agency or contractual relationships between MUFG or each of the other groupcompanies and other parties arise from the disclosure and implementation of the
Framework. MUFG and other group companies assume no legal obligation, liabilityor responsibility as a result of such disclosure and implementation.

- End About MUFG
Mitsubishi UFJ Financial Group, Inc. (MUFG) is one of the world’s leading financialgroups. Headquartered in Tokyo and with approximately 350 years of history, MUFG
has a global network with over 2,000 offices in more than 50 countries. The Grouphas over 150,000 employees and offers services including commercial banking, trust
banking, securities, credit cards, consumer finance, asset management, and leasing.
The Group aims to “be the world’s most trusted financial group” through close
collaboration among our operating companies and flexibly respond to all of thefinancial needs of our customers, serving society, and fostering shared andsustainable growth for a better world. MUFG’s shares trade on the Tokyo, Nagoya,
and New York stock exchanges.
For more information, visit https://www.mufg.jp/english

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On April 1, 2018 the name of MUFG’s commercial bank changed from “The Bank ofTokyo-Mitsubishi UFJ, Ltd.” to “MUFG Bank, Ltd.” Many of the bank’s overseas
subsidiaries followed suit on the same day, but branches and subsidiaries in somecountries will carry out the name change at a later date. MUFG’s New York Stock
Exchange ticker symbol also changed to “MUFG.”
For more information regarding overseas subsidiaries, visit
http://www.bk.mufg.jp/global/newsroom/announcements/pdf/201803_namechange.p
df

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