Mitsubishi UFJ Financial Group (MUFG), Japan’s largest financial group and a global leader in sustainable finance, reinforced its commitment to decarbonisation during the “Financing Climate Change Mitigation and Adaptation” session at Sustainable Expo 2024 (SX2024). Held at the Queen Sirikit National Convention Center (QSNCC), the event focused on addressing climate change and advancing the Sustainable Development Goals (SDGs) through collaborative efforts between the public, private, and government sectors.
Colin Chen, Head of ESG Finance, Asia Pacific at MUFG Bank, highlighted MUFG’s dedication to reducing greenhouse gas (GHG) emissions and achieving carbon neutrality. MUFG’s sustainability journey began in 2018 with the creation of its environmental policy and social framework, leading to a bold net-zero GHG emissions declaration in 2021. “We approach climate change through two lenses: mitigation, which involves reducing emissions, and adaptation, which requires shifting long-term business practices,” said Chen. “MUFG is committed to both areas, ensuring our business aligns with global sustainability goals.”
Krungsri (Bank of Ayudhya PCL), a key strategic member of MUFG’s global network, plays an essential role in supporting the group’s sustainability initiatives across ASEAN. By fostering partnerships with governments and businesses, Krungsri has been instrumental in promoting decarbonisation in the region.
MUFG’s climate action strategy is anchored in three pillars: helping achieve the 1.5°C target, supporting the transition to a decarbonised society, and contributing to a sustainable economy that balances environmental and economic needs. The company’s approach incorporates principles such as natural capital, circular economy models, human rights, just transition, and climate adaptation.
To achieve its goal of carbon neutrality by 2050, MUFG has outlined four key strategies:
- Collaboration across internal operations and stakeholder partnerships.
- Integration of sustainable governance structures overseen by the Board of Directors.
- Strong climate management in line with global agreements.
- Development of innovative financial products that contribute to Environmental, Social, and Governance (ESG) goals.
MUFG recently raised its sustainable finance target from 35 trillion yen to 100 trillion yen by 2030, with a focus on renewable energy financing and other ESG-driven initiatives. This ambitious plan is expected to reduce CO2 emissions while generating significant environmental and social benefits.
Aligned with MUFG’s global ambitions, Krungsri aims to provide 100 billion baht in financial support for sustainable projects by 2030. By embedding the ESG framework into its business operations, Krungsri is helping Thai businesses transition to more sustainable practices.
“At MUFG, we believe every product and service can contribute to ESG goals,” Chen added. “From ESG loans and bonds to advisory services and trade finance, we are setting up financial frameworks to drive long-term sustainability.”
MUFG’s leadership in sustainable finance and decarbonisation underscores its commitment to innovation, responsible growth, and global environmental stewardship, positioning the company as a leader in the transition to a sustainable global economy.
