Tokyo, October 5, 2022 – MUFG today announced the publication of the Transition Finance Guide by the Net-Zero Banking Alliance's (NZBA) Financing & Engagement Work Track (Work Track).

1. NZBA and MUFG's activities

The NZBA, launched in April 2021, is an industry-led alliance convened by the United Nations Environment Programme Finance Initiative (UNEP FI). Its goal is to align member banks' lending and investment portfolios with net-zero greenhouse gas (GHG) emissions by 2050. The alliance started with 43 banks, but has expanded to 117 member banks worldwide as of the end of September 2022.

MUFG announced its Carbon Neutrality Declaration[1] in May 2021, and the following month, became the first Japanese financial institution to join the NZBA. MUFG was appointed to the Steering Group[2], which consists of 12 banks selected from the member banks in each region, as the only representative bank from Japan. We, together with other Steering Group member banks, have been responsible for the governance of the NZBA.

The NZBA set up the Work Track in January 2022 to create guidelines for transition finance. MUFG has contributed to discussions for developing this through the monthly Work Track meetings to promote client engagement and transition finance.

2. NZBA Transition Finance Guide

Today, the NZBA announced the publication of the NZBA Transition Finance Guide. The Guide provides member banks with principles to use as a reference for their approach to transition finance and proposes policy measures to mainstream transition finance.

MUFG believes that transition finance is a key enabler for achieving carbon neutrality by 2050. MUFG will continue to support our clients' transitions with the knowledge and networks gained through activities in the NZBA and Work Track.

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[1] For details on the MUFG Carbon Neutral Declaration, please refer to this document.

[2] For details on the NZBA Steering Group, please refer to this page.

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