MUFG

The financial institution has publicly available policy statements committing to respect ILO core labour rights and expecting suppliers to do the same. It outlines its process for assessing human rights risks and identifies salient human rights issues. Engagement with stakeholders affected by its activities is part of its approach. Oversight of the sustainability strategy is assigned to the highest governance body, while implementation responsibilities are delegated to various functions, teams, or committees.

Additionally, the institution has a policy statement affirming its commitment to human rights and transparently identifies key sectors, clients, and investees for climate engagement. It engages in partnerships to influence and support entities regarding their nature-related impacts and provides examples of how its products, services, and capital contribute to climate adaptation and resilience.

The financial institution has the opportunity to disclose the methodology it employs to determine a living wage in the regions where it operates. It could also include anti-bribery and anti-corruption clauses in its contracts with business relationships. Currently, the institution states that it refrains from making specific types of political contributions, but it should extend this to cover all types. When it comes to sustainability, while the financial institution has identified material sustainability impacts across its value chain, it could provide more detailed information about the process. This includes elaborating on how objective criteria and supportable evidence were considered for the identification and prioritization of those impacts. The institution’s division MUFG AM discloses its sustainable investing policy with a stewardship component. However, the institution as a whole could further detail how its stewardship activities align with its overall sustainability strategy. The financial institution has disclosed a partial list of trade associations it is a member of. It has the opportunity to disclose a complete list.

When referring to sectors and areas with nature-related impacts, the institution has the opportunity to detail how these were identified and prioritized in relation to its products, services, and capital. It also has the chance to disclose a strategy for the protection and restoration of nature, covering at least its priority sectors and areas. It is recommended that the financial institution discloses the breakdown of its clients and/or beneficiaries by income group. The CEO’s message emphasizes the importance of working towards carbon neutrality through engagement rather than divestment. However, the institution could also disclose a process to avoid divestment as an unintended consequence of its sustainability strategies and targets.

Regarding its risk assessment process, while it currently includes risks associated with some ILO fundamental rights for those affected by its products, services, and capital, it could expand to cover the full set of rights. Finally, it is recommended that the financial institution provides an example of the specific conclusions it has reached and the actions it has taken or plans to take in response to at least one of its significant human rights issues, as a result of assessment processes in at least one of its activities in the last three years.

This scorecard refers to information in English which was publicly available by July 15 2024. AuM and Total assets are stated in USD for comparability and have been calculated based on reported local currency values multiplied by applicable IMF currency converter values.