On March 26th, Kiko Network and three individuals with RAN, Market Forces, and 350.org Japan filed a climate resolution on Mitsubishi UFJ Financial Group (MUFG), requiring MUFG to adopt and disclose a plan, “including metrics and short-, medium- and long-term targets,” to align its financing and investments with the goals of the Paris Climate Agreement.
The co-filers have issued a second briefing for investors to explain why investors should still support this resolution in light of the recent policy reforms and net zero announcement by MUFG.
- Current financing policies of MUFG are not aligned with the Paris Agreement goals as they allow for continued financing of coal, oil and gas expansion as well as deforestation.
- Since the Paris Agreement, MUFG has been the 6th largest financier of fossil fuels globally and a prominent financier of rainforest-destroying commodities like palm oil.
- Fossil fuels and deforestation are the two largest sources of human GHG emissions. Financing of new fossil fuel development conflicts with a net zero pathway, according to the IEA’s recent Net Zero by 2050 report.
- Despite MUFG’s recent net zero announcement, MUFG has provided no interim targets or clear metrics that would guarantee a net zero pathway.
- MUFG’s current policies and commitments fail to address its ongoing and significant financing of carbon-intensive sectors
- This shareholder resolution will ensure MUFG discloses a clear plan, with metrics and short- and medium-term targets, that demonstrates effective management of climate-related financial risks.
Read the Briefing here.