Mitsubishi UFJ Financial Group, Inc. | Partial amendment to the Articles of Incorporation (Assessment of customers’ climate change transition plans)

Status
AGM passed
AGM date
Previous AGM date
Proposal number
4
Resolution details
Company ticker
8306
Lead filer
Market Forces
Co-filers
Kiko Network
Resolution ask
Adopt or amend a policy
ESG theme
  • Environment
ESG sub-theme
  • Fossil fuel financing
  • GHG targets / emissions
  • Net Zero / Paris aligned
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Financials
Company HQ country
Japan
Supporting materials
  • EN-Japanese-shareholder-proposal-Investor-Updates-May-2024.pdf Download
  • Japanese-Banks-Investor-Briefing-April-2024_English.pdf Download
  • 2024-04-MUFG_Shareholder-proposals-JP-and-EN.pdf Download
Resolved clause
The following clause shall be added to the Articles of Incorporation:

Chapter Y: “Climate-related risk management”
Clause Z: Transition Plan (Assessment of clients’ climate change transition plans)

Noting the Company’s climate change commitments and climate risk management strategies, the Company shall disclose:
i. How the Company will assess fossil fuel sector clients’ climate change transition plans for credible alignment with the 1.5°C goal of the Paris Agreement; and
ii. The consequences of clients not producing credible Paris-aligned transition plans, including the restriction of new finance.
Supporting statement
The proposal requests disclosure of information necessary for shareholders to ensure that the Company appropriately manages climate-related risks by supporting clients' genuine decarbonisation transitions.

The Company has committed to “priority goals of net-zero emissions and achievement of the 1.5˚C target in 2050” and recognises climate change as a “top risk”. The Company claims to assess the status of transition of clients in high-emitting sectors by confirming “1.5℃-aligned interim targets, governance and emissions performance”.

However, the Company continues to provide significant financial support to fossil fuel clients that do not have transition plans credibly aligned with the Paris Agreement’s 1.5°C target.

The disclosures requested in this proposal are required to ensure the Company adequately enacts its stated risk control measures, and aligns with its commitment to reduce finance portfolio emissions to net zero by 2050.

These disclosures are in line with investor expectations (e.g.Transition Pathway Initiative), and will help maintain and enhance the Company’s long-term corporate value

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