Mitsubishi UFJ Financial Group Inc. (MUFG)

MUFG Carbon Neutrality Declaration
Tokyo, May 17, 2021 --- MUFG today announced its "MUFG Carbon NeutralityDeclaration," a commitment to achieve net zero emissions in our finance portfolio by
2050 and our own operations by 2030.
As part of this commitment, MUFG will become the first Japanese bank to join theNet-Zero Banking Alliance (NZBA)[1] which was established by the United Nations
Environment Programme Finance Initiative (UNEP FI) in April of this year.
MUFG defines its purpose as being "Committed to empowering a brighter future." Ourbusiness activities are driven by the determination to make every effort to empower all
stakeholders to advance to the next step forward. In order to lead the way to solutions
for climate change, one of the most serious issues facing the world, we will further
expand support for customers’ efforts towards decarbonization and the developmentof innovative technologies under the MUFG Carbon Neutrality Declaration.
[1] An initiative undertaken by banks that are committed to achieve net zero GHG emissions in their lending andinvestment portfolio by 2050 at the latest. 43 banks in 23 countries participated at launch.

MUFG Carbon Neutrality Declaration
MUFG is committed to tackling climate change, one of the most serious issues facing
the world, and will therefore develop specific action plans based on its purpose, which
is being "Committed to empowering a brighter future." In order to align with the goalsof the Paris Agreement, MUFG will support the smooth transition to a decarbonizedsociety through its financial services and proactively contribute to creating asustainable society by fostering a virtuous cycle between the environment andeconomy.
MUFG commits to achieve net zero emissions in its finance portfolio by 2050 and its
own operations by 2030. The following is our approach to achieve this goal; we will
accelerate the implementation and promotion of specific measures, and progress will
be duly disclosed throughout.
1. Commit to achieve decarbonization through financial services(1) MUFG aims to achieve net zero greenhouse gas (GHG) emissions across its
finance portfolio[1] by 2050 and will work to set and disclose an interim milestonefor 2030 in FY2022, progress of which will be reported on an annual basis. As partof this commitment, following our participation in the Principles for Responsible
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Banking (PRB) in 2019, we will become the first Japanese bank to participate in
the Net-Zero Banking Alliance (NZBA).
[1] Categorized as Scope 3 under the GHG Protocol which is the standard to measure and report GHG
emissions, developed by an international organization of the same name.

(2) MUFG integrates solutions for climate change issues with its management
strategies and will demonstrate appropriate engagement functions via initiatives
such as setting ambitious targets for sustainable finance[2], enhancing financing
policies[3], disclosing future credit portfolio reduction targets related to coal-fired
power generation[4][5], and incorporating climate change risk into the credit
process.
[2] April 2021: Increased target from ¥20 trillion to ¥35 trillion (cumulative total from FY2019 to FY2030).
[3] April 2021: Revised policies for coal-fired power generation, forestry, and palm oil sectors.
[4] Progressing toward the project finance portfolio reduction target for coal-fired power generation (to halve
the FY2019 balance by FY2030, and reduce to zero by FY2040).
[5] We aim to disclose the portfolio reduction target for corporate customers whose business largely involves
coal-fired power generation.

(3) In order to create a sustainable energy mix, MUFG will provide strong support not
only for renewable energy but also for the implementation of innovativetechnologies such as hydrogen/next-generation energy and carbon recycling.
MUFG will also share issues related to decarbonization with customers whilemaximizing our expertise in sustainable business, and will actively support
customers’ efforts to decarbonize.
2. Promote decarbonization via MUFG's own efforts(1) MUFG aims to achieve net-zero GHG emissions in its own operations[6] by 2030.
By the end of FY2021 the domestic offices and branches of core subsidiaries
MUFG Bank, Mitsubishi UFJ Trust and Banking and Mitsubishi UFJ Securities
Holdings will procure 100% of their electricity from renewable sources. MUFG willalso establish a fund to stimulate the renewable energy market (¥100 billion inphase one) and develop the first scheme in Japan to deal with an "end to end
solution from generation to purchase" for green power, thereby leading the way forthe decarbonization of society.
[6] Categorized as Scope 1 and Scope 2 in the GHG Protocol(2) In order to support innovative technologies related to climate change and carbon
offsetting efforts such as afforestation, MUFG will positively leverage its donation
program framework, which contributes the equivalent of 1% of the group operating
profit to CSR activities[7].
[7] Since January 2021, MUFG has been running a program to plant up to approx. 100,000 trees inaccordance with the number of applications for new or replacement Eco Passbooks (paper bank books
commonly used in Japan to keep track of transactions and account balance) and donate a total of ¥500
million over 10 years to foster these trees.

23. Set targets to align with the goals of the Paris Agreement and expand andimprove transparency of information disclosure(1) MUFG will set targets to align with the goals of the Paris Agreement based on
scientific approaches such as Science Based Targets, participate in global
initiatives to enhance climate change solutions, and make every effort to ensurehighly transparent disclosure that will benefit our stakeholders to improve theirunderstanding and thereby make appropriate risk assessments[8].
[8] MUFG will set and disclose the reduction targets (previously only results were disclosed) for CO2
emissions through its renewable energy project finance portfolio.

(2) MUFG supports the TCFD Recommendations and will conduct scenario analyses
and disclose their results on transition risks (in the energy and utility sectors) andphysical risks (flooding). Going forward, we will work to further expand the scopeof sectors subject to TCFD scenario analysis and improve methods for reflecting
the impacts of such risk in our financials.
4. Enhance our organization to achieve carbon neutrality(1) Previously the MUFG Environmental Policy Statement was approved and set by
the Executive Committee, but we have enhanced governance to be approved by
the Board of Directors. In accordance with the MUFG Environmental Policy
Statement we will proactively disclose information related to climate change andother environmental issues.
(2) MUFG will reflect ESG elements in its executive compensation from FY2021 andenhance strategic business management and promotion functions[9][10], thereby
accelerating our commitment to achieve carbon neutrality at the managementlevel. Furthermore, we will establish a groupwide global project team including ouroverseas partner banks to support group entities and offices to lead the way for
decarbonization in their respective regions based on their unique situations andcircumstances.
[9] Measures and initiatives to solve environmental and social issues are discussed regularly by theSustainability Committee, and further deliberated on at/reported to the Executive Commitee and theBoard of Directors.
[10] The position of Chief Sustainability Officer (CSuO) was created in FY2020 to clarify responsibility forpromoting sustainability.

(3) MUFG will further utilize the knowledge of advisors[11] and other experts,
collaborate with research institutions, and enhance and train professional staff.
[11] Joined by a permanent external advisor in FY2019, whose expert advice and recommendations areutilized for sustainability management.

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Figure 1: MUFG Carbon Neutrality Declaration Roadmap– End –
About MUFG
Mitsubishi UFJ Financial Group, Inc. (MUFG) is one of the world’s leading financialgroups. Headquartered in Tokyo and with over 360 years of history, MUFG has a global
network with around 2,600 locations in more than 50 countries. The Group has over
180,000 employees and offers services including commercial banking, trust banking,securities, credit cards, consumer finance, asset management, and leasing. The Groupaims to “be the world’s most trusted financial group” through close collaboration among
our operating companies and flexibly respond to all of the financial needs of ourcustomers, serving society, and fostering shared and sustainable growth for a betterworld. 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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2[Reference 1] Overview of MUFG Carbon Neutrality Declaration
MUFG Carbon Neutrality Declaration
To achieve net zero emissions in our finance portfolio by 2050 and in our own operations by 2030
In order to align with the goals of the Paris Agreement, MUFG will support the smooth transition to a decarbonized society through its financial
services and proactively contribute to creating a sustainable society through the virtuous circle of environment and economy.
Commit to achieve decarbonization through financial services

Promote decarbonization via MUFG’s own efforts

Set and disclose a milestone for 2030 by FY 2022, which progress will be reported on annual basis.
Demonstrate appropriate engagement functions
 Actively support innovation technologies and transition measures

Reduce MUFG’s impact on the environment
 Leverage on a framework which contributes acertain percentage of profit to CSR activities Actively support financing for transition
 Support renewable energy, hydrogen, nextgeneration energy, etc.
Increase from¥20 Tn to ¥35 Tn

 Set target for sustainable finance Participate in the UN-led Net Zero BankingAlliance Continous review of the MUFG

Coal-fired Power

Environmental and Social Policy Framework

 Disclose future credit portfolio reduction
targets related to coal-fired power generation

 Reflect climate change risk into creditprocess Shift to 100% renewable energy for
procured electricity

Bank, Trust, Securities
by FY 2021 (domestic) Launch renewable energy fund ¥100 billion
 Generate demand for next generation energy
 Work on carbon offsets (afforestation, etc.)

Set targets to align with the goals of Paris Agreement, andexpand and improve transparency of information disclosure
Set targets to align with the goals of Paris Agreement based on scientific approaches such as SBT; participate in global initiatives
Ensure highly transparent disclosure that will benefit our stakeholders to improve their understanding and to make appropriate risk assessment
 Expand the scope of sectors subject to TCFD scenario analysis and improve the method to reflect the risk impacts on our financials
Information

Scientific approach(SBT, etc.) disclosure

CO2 reduction targets CO2(Renewable energy PF)

Credit portfolio reduction
target for coal-fired power
generation projects (PF)Enhance communication tools(Sustainability Reports, booklets)

Enhance the organization to achieve carbon neutralityEnhancing governance, organizational structure, talents, and intelligence (information gathering and dissemination) to achieve the above
Reflect ESG elements to theexecutive compensation

Govern policy statements byGroup global project teams
the Board of Directors Environmental
Policy Statement

Enhance external
relationships and promote theusage of external knowledge

Strengthen and developing
professional talents