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MUFG Launches Sustainable Finance Framework to Boost Environmental and Social Impact

MUFG Launches Sustainable Finance Framework to Boost Environmental and Social Impact

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  • Increased Finance Targets: MUFG raises 2030 social and sustainable finance goals from ¥35 trillion to ¥100 trillion.
  • Framework Alignment: Adheres to key principles from ICMA and LMA for Green, Social, and Sustainability Bonds and Loans.
  • Stakeholder Commitment: Continues to support clients’ transition efforts and sustainable growth.

MUFG has introduced a new “Sustainable Finance Framework” to bolster its efforts in promoting sustainability through capital markets funding. As part of this initiative, MUFG obtained a Second Party Opinion from Sustainalytics, a prominent international ratings provider, validating the framework’s integrity.

MUFG’s commitment to sustainability is encapsulated in its purpose of “empowering a brighter future.” Reflecting rising demands, the company has significantly increased its social and sustainable finance targets for 2030 from ¥35 trillion to ¥100 trillion. “This ambitious target underscores our dedication to driving positive change and supporting our clients’ transition efforts,” said a MUFG spokesperson.

The framework aligns with the Green Bond Principles 2021, Social Bond Principles 2023, and Sustainability Bond Principles 2021 set by the International Capital Markets Association. It also adheres to the Green Loan Principles 2023 and Social Loan Principles 2023 established by the Loan Market Association, the Asia-Pacific Loan Market Association, and the Loan Syndications and Trading Association.

To qualify for financing under this framework, projects must meet the stringent Use of Proceeds criteria. “MUFG’s dedication to sustainable finance is evident through our rigorous project selection and financing processes,” stated the MUFG representative.

Related Article: Mitsubishi Heavy Industries Revises Green Finance Framework and Issues JPY 10 Billion in Third Series of Transition Bonds

Through its role as a financial intermediary, MUFG aims to foster sustainable business growth and enhance corporate value. By financing projects via Green, Social, and Sustainability Bonds and Loans, issued through MUFG Bank, the company reinforces its pledge to build a sustainable environment and society.

This robust framework demonstrates MUFG’s ongoing support for initiatives that drive sustainability and address stakeholder needs, ensuring a positive impact on both society and the environment.

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