Mitsubishi UFJ Financial Group, Inc. | Amendment to articles of incorporation (issue & disclose climate transition plan) at Mitsubishi UFJ Financial Group, Inc.

Status
17.54% votes in favour
AGM date
Previous AGM date
Proposal number
3
Resolution details
Company ticker
8306
Lead filer
Market Forces
Co-filers
Rainforest Alliance, Kiko Network
Resolution ask
Adopt or amend a policy
ESG theme
  • Environment
ESG sub-theme
  • Fossil fuel financing
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Financials
Company HQ country
Japan
Resolved clause
The Proposal
Partial amendment to the Articles of Incorporation (issuing and disclosing a transition plan to align lending and investment portfolios with the Paris Agreement's 1.5 degree goal requiring net zero emissions by 2050)
Whereas clause
The following clause shall be added to the Articles of Incorporation:
Chapter: “Transition Plan (Portfolio Alignment)”
Clause: “Issuing and disclosing a transition plan to align lending and investment portfolios with the Paris
Agreement's 1.5 degree goal requiring net zero emissions by 2050”
1. In order to fulfil the Company’s commitment to net zero emissions by 2050 in its lending and investment portfolios, the Company shall set and disclose a transition plan to align its portfolios, in the short-, medium- and long-term, with credible pathways to net zero emissions by 2050 or sooner, including strategic policy commitments and targets for significant GHG-intensive sectors within its portfolios, considering the full range of Scope 3 value chain emissions.
2. The Company shall report on its progress against such a transition plan and targets in its annual reporting.
Supporting statement
This proposal requests that the Company disclose information required for shareholders to determine the integrity of the Company’s plans to achieve its net zero emissions by 2050 commitment, and for the Company to appropriately manage climate change risks, and maintain and increase the Company's long-term corporate value.
The Company is exposed to substantial financial risk, given its significant involvement in carbon-intensive sectors such as fossil fuels. However, the Company has not set and disclosed sufficient targets or policy commitments to align its exposures to the most GHG-intensive sectors with a net zero emissions by 2050 pathway.
It is, therefore, critical for the Company to ensure the integrity of its climate goals and transition plans by setting and disclosing such targets and strategic policy commitments, which should align with the trajectories and key conclusions of credible net zero emissions by 2050 scenarios, such as the International Energy Agency’s. Global peers of the Company are already disclosing this type of information.
The disclosure this proposal seeks is commonly expected among investors through the Task Force on Climate-related Financial Disclosures (TCFD), and international standard setting initiatives such as the Net Zero Banking Alliance.

https://shareholderaction.asia/wp-content/uploads/2023/04/2023-04-Japanese-banks-shareholder-proposal_-MUFG-JP-and-EN.pdf
https://shareholderaction.asia/wp-content/uploads/2023/04/for-sharing-2023-04-Japanese-banks-investor-briefing-1.pdf

How other organisations have declared their voting intentions

Organisation name Declared voting intentions Rationale
Anima Sgr For Though the company has made some commitments and policies working towards a low-carbon economy, adoption of the proposal would not only serve to enhance and complement the company's current commitments to net zero activities, but also help ensure stronger alignment between the company's net zero goals and its policies and actions. In addition, it would also provide shareholders with a better understanding of the company's management and oversight of related risks.
BPI Gestão de Ativos - SGOIC, SA For

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