Mitsubishi UFJ Financial Group Sustainable Finance Framework Second Party Opinion (2024)

Project Details

Project

Client

Mitsubishi UFJ Financial Group (MUFG)

Project Type

Sustainability Bond/Loan

Industry Group

Banks

Use of Proceeds

Green buildings; Renewable energy; Health; Education; Employment generation and Socio-economic empowerment; Affordable housing;

Location

Japan

Evaluation Date

Jul 2024

Evaluation Summary

Sustainalytics is of the opinion that the Mitsubishi UFJ Financial Group Sustainable Finance Framework is credible, impactful and aligned with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Social Bond Principles 2023, Green Loan Principles 2023 and Social Loan Principles 2023. This assessment is based on the following:

USE OF PROCEEDS - The eligible categories for the use of proceeds –

Green Buildings, Renewable Energy, Access to Essential Services

(Healthcare), Access to Essential Services (Education), Employment

Generation (Natural Disaster) and Affordable Housing – are aligned

with those recognized by the Green Bond Principles, Social Bond

Principles, Green Loan Principles and Social Loan Principles.

Sustainalytics considers that investments in the eligible categories

will lead to positive environmental or social impacts and advance the

UN Sustainable Development Goals, specifically SDGs 3, 4, 7, 8, 9 and

11.

PROJECT EVALUATION AND SELECTION - MUFG’s Office of the CFO,

Financial Planning Division (“The Office”) is responsible for selecting

the eligible projects. The Bank adheres to the Equator Principles and

has in place a risk management framework to mitigate environmental

and social risks associated with financed projects. Based on the

established process for project selection and risk management

system, Sustainalytics considers this process to be in line with

market practice.

MANAGEMENT OF PROCEEDS - MUFG’s Office of the CFO is

responsible for management and allocation of proceeds using the

Bank’s internal loan management systems. The Bank intends to

allocate all proceeds immediately after each issuance. Pending full

allocation, proceeds will be temporarily placed in cash, cash

equivalents or marketable securities. This is in line with market

practice.

REPORTING - MUFG commits to report on allocation of proceeds on

its website on an annual basis until full allocation. In addition, MUFG

intends to report on the environmental and social impacts of the use

of proceeds using relevant impact metrics. Sustainalytics considers

the allocation and impact reporting commitments as aligned with

market practice.