Mitsubishi UFJ Financial Group (MUFG), Japan’s largest financial group and one of the world’s largest financial organisations, with Krungsri (Bank of Ayudhya PCL) as a strategic member in its global network, underlined its joint decarbonisation mission during the “Financing Climate Change Mitigation and Adaptation” session at Sustainable Expo 2024 (SX2024), held at the Queen Sirikit National Convention Center (QSNCC). This event served as a major platform for the public, business, and government sectors to address environmental issues and enhance efforts toward achieving the Sustainable Development Goals (SDGs).
Mr. Colin Chen, Head of ESG Finance, Asia Pacific, MUFG Bank, shared that the organisation’s forward-looking vision began in 2018 with the establishment of its environmental policy statement and the environmental and social policy framework. In 2021, MUFG made a bold carbon neutrality declaration, committing to achieving net-zero greenhouse gas (GHG) emissions through carefully targeted actions that integrate sustainability into its business strategy.
“In our approach to addressing climate change, we classify our actions into two key areas: mitigation and adaptation. Mitigation involves steps that everyone can take to reduce emissions. Whereas adaptation is more complex, involving long-term changes and costs because it requires shifting deeply ingrained ways of doing business. MUFG has developed a comprehensive strategy that encompasses both, ensuring our operations are aligned with global sustainable goals,” Mr. Chen said.
As a strategic member of MUFG, Krungsri plays a pivotal role in advancing these sustainability initiatives across ASEAN. Through a collaborative network that spans over 40 countries, Krungsri has been instrumental in connecting businesses and governments to develop innovative solutions aimed at achieving regional decarbonisation.
Mr. Colin Chen, Head of ESG Finance, Asia Pacific, MUFG BANK
MUFG is steadfast in its commitment to three unweaving climate change actions, which are helping achieve the 1.5°C target, supporting a smooth transition to a decarbonised society, and proactively contributing to creating a sustainable society by fostering a virtuous cycle between the environment and the economy. Additionally, MUFG integrates key focus areas such as natural capital, circular economy principles, human rights and just transition, and climate adaptation into its sustainable framework.
To achieve carbon neutrality by 2050, MUFG has outlined four strategic pillars. These include collaborative efforts across internal operations, partnerships with stakeholders/clients / partnerships with stakeholders, and working closely with government agencies. The MUFG also plans to develop and implement governance structures for decision-making on decarbonisation, with oversight from its Board of Directors. As a leading financial company, MUFG has taken responsibility for strengthened climate management through compliance with global agreements.
Aligned with Krungsri’s aspiration of being the leading sustainable and regional bank, the bank has integrated an ESG(Environmental, Social, and Governance) framework into its business operations and is committed to supporting its business clients’ transition to ESG practices. By 2030, Krungsri aims to provide financial support totalling 100 billion baht for social and sustainable business projects (from the base year 2021), a goal that complements MUFG’s global ambitions.
Reflecting its accelerated progress towards catering to the growing market demand for ESG solutions, MUFG recently increased its sustainable finance target from 35 trillion yen to 100 trillion yen by 2030. This funding expansion is not only expected to reduce CO2 emissions through renewable energy financing but also to generate widespread environmental and social benefits.
“At MUFG, we believe that every product and service has the potential to contribute to ESG goals. That is why we have developed a range of ESG-themed offerings that include loans, bonds, deposits, ESG advisory services, and trade finance. Our commitment to addressing climate change is a global endeavour, embraced by Thailand. We are setting financial frameworks that align with regional and global regulations to ensure our long-term sustainability efforts are successful,” Mr. Chen added.
MUFG’s journey toward decarbonisation highlights its unwavering dedication to sustainability, innovation, and responsible growth, positioning itself as the leader in the transition to a sustainable global economy.