Tokyo-based banking group Mitsubishi UFJ Financial Group (MUFG) announced today a series of sustainability-related initiatives, including nearly tripling its 2030 sustainable finance goal to 100 trillion yen (USD$660 billion) from its prior 35 trillion yen target, as well as establishing a new Sustainability Risk Office, to manage sustainability risks, such as climate change risks, across the group.

The new targets and initiatives were announced as part of the release of MUFG’s Medium-term Business Plan (MTBP) for the next three year period. The new business plan establishes the bank’s efforts to drive social and environmental progress as one of its 3 key pillars, and aims to integrates these efforts into MUFG’s management strategy.

In a statement announcing the release of the new MTBP, MUFG said:

“MUFG has previously established priority issues in our sustainability management to realize a sustainable environment and society. We have revised such priority issues with consideration for environmental changes, expectations from society, and importance to our business, and will strengthen our efforts in driving social and environmental progress, integrating such efforts in our business strategies.”

MUFG set its first sustainable finance target in 2019, with a goal to provide a cumulative total of 20 trillion yen of sustainable finance, including loans, investments, underwriting and financial advisory services, between 2019 and 2030. The new goal marks the second revision, after the bank initially increased its target to 35 trillion yen in 2021. According to MUFG’s newly released Climate Report, the new goal, to achieve 100 trillion yen by 2030, including 50 trillion targeting environmental issues, comes “due to steady progress and increasing demand for funds.”

The Climate Report also notes that the bank is already approaching its former target, with MUFG reaching 28 trillion in towards its goal as at the end of 2023.

According to MUFG, the bank’s new Sustainability Risk Office will report directly to the Group’s Chief Risk Officer, and act as a “second line-of-defense organization” responsible for managing sustainability-related risks across the group.

MUFG also announced a series of sustainability-related revisions and framework updates, including adding the need to address climate change, natural capital, circular economy, and respect for human rights in an integrated manner to its environmental policy statement, revising its human rights policy statement to include the potential impact of climate change, loss of natural capital, and AI on human rights and a new policy on human rights due diligence, and establishing and updating its policies for human capital management.

MUFG said:

“In this era when social and economic structures are dramatically changing at a global scale, we believe that MUFG’s ability to facilitate connections, leveraging its extensive network and diverse solutions, can be maximized. By seizing this opportunity to achieve further growth and realizing our Purpose of being “committed to empowering a brighter future”, we will strive to meet expectations of our stakeholders.”