Mitsubishi UFJ Financial Group Inc

The CSR committee, which reports to the Executive Committee, is responsible for developing appropriate responses to the environmental and social issues relevant to our business. Individual transactions with significant environmental and social risks or impacts that have the potential to negative impact on the corporate value of MUFG are assessed for reputational risk, as necessary. Transactions are evaluated with the involvement of executive management, taking into consideration the potential transaction related reputational risks. [...] The Framework was discussed by the CSR Committee and approved by the Executive Committee. The CSR Committee regularly reviews the need to update the Framework and makes amendments as necessary to reflect changes in our business activities and the business environment.

- Establishing a governance structure that enables appropriate decision-making through various meetings aimed at achieving carbon neutrality under the supervision of the Board of Directors. [...] - Direct and indirect lobbying and partner with governments/public sector toward net-zero transitions [...] - Ensure alignment between client/portfolio companies' lobbying and initiatives for net zero [...] - Define roles for the Board of Directors or management/organizations responsible for managing net-zero targets [...] - Review remuneration systems and transition plans regularly [...] - The Transition Plan Monitoring Meeting, jointly chaired by the CSO*4 and CRO, will be held biannually to verify the effectiveness of the operating framework and the progress of our transition plan. The operating framework will be updated as appropriate to ensure effectiveness.

(4) Enhance our organization to achieve carbon neutrality [(1) Previously the MUFG Environmental Policy Statement](https://www.mufg.jp/english/csr/policy/index.html) was approved and set by the Executive Committee, but we have enhanced governance to be approved by the Board of Directors. In accordance with the MUFG Environmental Policy Statement we will proactively disclose information related to climate change and other environmental issues. (2) MUFG will reflect ESG elements in its executive compensation from FY2021 and enhance strategic business management and promotion functions[[9][10]], thereby accelerating our commitment to achieve carbon neutrality at the management level. Furthermore, we will establish a groupwide global project team including our overseas partner banks to support group entities and offices to lead the way for decarbonization in their respective regions based on their unique situations and circumstances. [9] Measures and initiatives to solve environmental and social issues are discussed regularly by the Sustainability Committee, and further deliberated on at/reported to the Executive Commitee and the Board of Directors. [10] The position of Chief Sustainability Officer (CSuO) was created in FY2020 to clarify responsibility for promoting sustainability. (3) MUFG will further utilize the knowledge of advisors[[11]] and other experts, collaborate with research institutions, and enhance and train professional staff. [11] Joined by a permanent external advisor in FY2019, whose expert advice and recommendations are utilized for sustainability management.

Governance to deal with climate change - the Board of Directors supervises climate change-related initiatives Opportunities and risks related to the environment and society, including climate change, are regularly discussed by the Sustainability Committee under the Executive Committee. Depending on the theme, matters are also reviewed by the Credit & Investment Management Committee, Credit Committee, and Risk Management Committee also under the Executive Committee. The contents of the review by the committees are reported to the Executive Committee and then to the Board of Directors to be reviewed. The contents of the review by the Credit & Investment Management Committee and the Risk Management Committee are reported to the Board of Directors after being reviewed by the Risk Committee, which is composed mainly of outside directors. [...] MUFG has established project teams on a group and global basis to discuss and make decisions through a steering committee in which the CEO and other key management members participate. In addition, the Sustainability Committee discusses climate change measures and reports to the Executive Committee and the Board of Directors. [...] Sustainability Committee Chairperson: Group CSuO Other members: Group C-Suite (CEO, CSO, CFO, CRO), the Bank President, Trust and Securities companies Presidents, and Heads of Business Group ・Progress related to the MUFG Carbon Neutrality Declaration -Engagement with customers, sustainable finance, setting of interim targets for investment and loan portfolio, and reduction of in-house GHG emissions ・Status of activities in external initiatives (such as NZBA) ・Revision of the MUFG Environmental and Social Policy Framework ・Assessments by ESG rating agencies [...] Steering Committee Chair: Group CSuO Other members: Group C-Suite (CEO, CSO, CFO, CRO, CLO, CDO), the Bank President, Trust and Securities Presidents, and Heads of Business Group ・Progress and policies in each area of Carbon Neutral Project Team ・Total of three Steering Committee meetings were held in quarterly in FY 2021. [...] Executive Review Committee Facilitator: Head of Corporate Planning Division Other members: Group CEO and Heads of Business Group. Participants are selected on a case-by-case basis. ・Discusses the measurement of and target setting for GHG emissions by sector, mainly sectors in the financed portfolio. ・Four Executive Review Committee meetings were held in FY 2021.

#### Governance: Commitment from the Managements

###### – The opportunities and risks of a wide range of environmental and social issues are covered mainly by the Sustainability Committee under the Executive Committee. – Associated meetings are held to make prompt decisions on strategies and directions.

Climate Agenda at the Executive Committee and Affiliated Committees (FY2023)

**Executive Committee** **Sustainability** **Credit and Investment** **Risk Management**

**Credit Committee**

**Committee** **Management Committee** **Committee**

**Presiding Officer: CEO** **Chairperson: Group CSuO** **Chairperson: CEO** **Chairperson: CEO** **Chairperson: CRO**

Discussions on issues - Progress on the - Discussions on the - Monitoring climate - Status and direction of

reported/deliberated at Transition Plan control directions and change-related risk climate change-related
the Sustainability - Revision of the long-term issues related situations using risk risk management
Committee Environmental Policy to climate change- appetite frameworks and - Revision of climate
Statement and the related risks integrated risk related credit policies
Environmental and management techniques
Social Policy Framework Ring

**Associated meetings**

**Sustainability** **Once** **Twice** **Twice**
**Review Meeting** **a year** **Steering Committee** **a year** **Working/Study Sessions** **a year**
Priority Issues, Sustainable Finance target, - Progress on the Transition Plan - Transition plans, intermediate targets

regulatory disclosure of non-financial - Sectoral interim targets and performance (automotive, aviation, direction of coal)
information, etc. progress

**Transition Planning** **Eight times** **Twice**

**Meeting** **a year** **FE Monitoring Meeting** **a year**

- Develop and track theTransition Plan - Progress on Sectoral Interim Targets

- Development and management of the - FE performance of the entire investment

#### Governance: Supervision by the Board of Directors

###### – Sustainability, including climate change, is an important discussion topic at the Board of Directors. In the BoD, deliberations on enforcement initiatives, including business opportunities and risks related to climate change, are discussed regularly. – In fiscal 2023, approximately 30 proposals related to sustainability were discussed through the BoD and affiliated committees composed of directors with knowledge, expertise and experience in sustainability.

Additionally, MUFG shares the content discussed in committees internally, particularly ensuring alignment between the policies of industry associations related to climate change response and MUFG's own policies. In cases of discrepancies, adjustments are made through discussions in various committees. Through this process, consistency with the stance of industry associations towards achieving carbon neutrality is maintained. [...] Meanwhile, in February 2023, the Cabinet approved on the Basic Policy for the Realization of Green Transformation (GX), announcing national strategies to realize investment in GX through the mobilizing more than ¥150 trillion funding from both government and private sources. Against this backdrop in April 2023 the Bank rebranded the EX Strategy PT as the GX Strategy PT, updating its role to facilitate the creation of tangible business and the delivery of information required to GX-related investment and financing. This PT currently consists of around 500 members, including relationship managers in both Japan and overseas, individuals from Product Offices (POs), credit division and corporate planning departments. [...] MUFG has assigned "Sustainable Business Promotion Leaders" (hereinafter "Promotion Leaders") at corporate sales branches nationwide. Information on sustainable business collected at headquarters as well as in-house tools for sustainable business, are propagated throughout Japan by the Promotion Leaders who serve as hubs connecting headquarters and branches. In FY 2022 the Promotion Leaders periodically organized study sessions on sustainable finance and other solutions in collaboration with headquarters to reinforce expertise of relationship managers at branches and enhance capabilities for engagement.

It is the responsibility of MUFG Bank's management to ensure the adoption of appropriate procedures for the adherence to the Principles. MUFG Bank's commitment regarding the Principles is to apply them to the extension of project related loans and to the provision of advisory services for potential project finance business. [...] Procedures implemented by MUFG Bank regarding the Principles shall be reviewed at least once a year and be amended as necessary. The amendment will be immediately informed to the divisions concerned to whom a relevant training will be provided if such need arises. [...] MUFG Bank will report on its implementation of Confirmation of Environmental and Social Considerations, including: (1) The mandate of the department assigned to confirm environmental and social considerations (e.g. responsibilities and staffing); (2) The respective roles of the department in charge of confirming environmental and social considerations, business lines, and senior management in the transaction review process; and (3) The incorporation of the Equator Principles in MUFG Bank's credit and risk management policies and procedures. [...] MUFG Bank will provide details on ongoing training of staff if considered relevant.

#### 2.1 MUFG Group Governance for Countering Climate Change

At MUFG Group, the Sustainability Committee under the Executive Committee regularly discuss policies and initiatives to address opportunities and risks related to environmental and social issues, including climate change. Group-wide project teams have also been established to support these initiatives.

MUFG Group has positioned climate change-related risk as one of the Top Risks[4] that it must pay close attention to. Accordingly, these risks are discussed by the Credit & Investment Management Committee, the Credit Committee and the Risk Management Committee, all under the direct supervision of the Executive Committee.

The Regional Offices in Singapore (the Region) act as the Hub for APAC region. At the APAC Sustainability Forum, various climate-related opportunities along with ESG related initiatives are reported and discussed. For the climaterelated risk management side, the Regular Call for Climate Change Management is held on a monthly basis with APAC branches to provide latest information and guidance from the Group and the Region and to assist meeting local regulatory requirements in a standardised way.

MUFG Group regularly holds meetings for exchanges of ideas between external advisors and members of the Board of Directors to leverage expert knowledge from outside the Group in our sustainability initiatives. The Board of Directors and other relevant members actively exchange ideas spanning wide-ranging areas, including the latest trends in the most important issue of climate change response, and other important topics of ESG.

At MUFG Group level, the executive compensation system has been revised to support the Group's sustainability targets and to achieve the Medium-term Business Plan. ESG-related external rating metrics have been installed as a medium- to long-term performance-linked evaluation indicator for Executives' stock-based compensation.

Additionally, Executives' contribution to the Group initiatives to address environmental and social issues, including climate change, forms part of the Executive performance evaluation and remuneration scheme. [...] #### 2.2 MUFG Oceania Governance for Countering Climate Change

Local governance is operated at Oceania level to have an oversight of all branches in Oceania, including MUFG New Zealand. The top governing body in Oceania is the Oceania Executive Committee (OEXCO) which consists of senior management and is chaired by the Head of Oceania.

OEXCO, which is held twice a month, is responsible for the running of the Branch in respect of safety and soundness as well as local business strategies. This includes developing the Branch's response to climate change and ensuring the Branch's alignment with MUFG Group policies and initiatives on climate change and sustainability.

MUFG Oceania has established a climate change working group to support OEXCO through the identification and assessment of climate-related risks and opportunities, the establishment of appropriate governance structures, and supporting the development of the Branch's strategies to deal with climate-related risks and opportunities.

The working group has a cross departmental membership with a primary responsibility for climate-related risk and opportunity management, and reports directly to OEXCO. The working group is also responsible for ensuring MUFG New Zealand complies with local regulatory and legal requirements (e.g., NZ CS requirements). More broadly, the working group contributes and assists OEXCO in its efforts to promote decarbonised society. Key decisions, issues and action items taken or raised at the working group are reported to OEXCO on at least a monthly basis.

At MUFG Oceania, to enhance it's understanding of climate-related risks and opportunities, the OEXCO and MUFG Oceania Senior Leadership Team participated in workshops and training delivered by both internal and external subject matter experts in these fields.

To enable each employee to further contribute to empowering a brighter future, MUFG Oceania is currently planning climate-related and ESG training for all MUFG Oceania employees, and scheduled to take place in FY2024.

MUFG Oceania has specific ESG-related business KPIs. Wider employee KPIs are currently under discussion at the regional level to be integrated into the employee performance management process.

As the importance of climate-related risks and opportunities increases, MUFG Oceania's governance structure for climate change continues to evolve.

###### released on May 15, 2023 Proposal 1: Partial amendment to the Articles of Incorporation (Issuing and Disclosing a Transition Plan to Align Lending and Investment Portfolios with the 1.5 Degree Celsius Target, the Goal of the Paris Agreement, for Achieving Carbon Neutrality by 2050)

The Board of Directors objects to this proposal.

In May 2021, we announced the MUFG Carbon Neutrality Declaration, which places
the highest priority on addressing climate change and environmental protection
issues.

Guided by this declaration, MUFG is steadily implementing group-wide
environmental measures, aiming to achieve net zero GHG emissions in our finance
portfolio by 2050 and net zero GHG emissions in our own operations by 2030.

Specifically, it is described below.

1. MUFG has made steady progress toward net zero GHG emissions from our
finance portfolio by 2050.

(1) In accordance with the GFANZ and NZBA guidelines, MUFG has set 2030
interim targets for high-emitting sectors (power, oil and gas, real estate, steel and
shipping) that have a significant impact on GHG emissions from our investment
and loan portfolios, and has disclosed the performance of these sectors.[1] We also
plan to set interim targets for the automotive, aircraft, and coal sectors by June
2024.[2]

MUFG's interim target for 2030 is calculated using the best available data with
reference to the IEA's 1.5 degree Celsius scenario.

The most important thing for MUFG is to support customers' efforts to achieve
carbon neutrality, and given that many of our customers have set interim targets
for 2030, we believe that effective engagement with customers is possible by
setting interim targets that share this timeline. Since 2021, we have engaged with
approximately 1,500 clients on this topic, and continue to support them while
steadily expanding our climate-change business.

(2) MUFG has established the MUFG Environmental and Social Policy Framework as
a framework for investment and lending policies to manage environmental and
social risks, and has introduced a due diligence process to identify and assess the
environmental and social risks and impacts of businesses financed. Climate change
risk management is integrated into the risk management framework to better
understand, measure and reduce climate change risks and their potential portfolio,
business and financial impacts from a group-wide perspective.

2. MUFG will disclose our transition plan in fiscal 2023. We also disclose progress
towards targets in our Progress Report, and plan to continue to do so in our
Integrated Report and other media.

(1) MUFG has already committed to disclosing a transition plan for MUFG's
decarbonization by the end of fiscal 2023. In developing this plan, we will refer to
GFANZ's guidance, etc. [3]

(2) The progress towards targets is reported annually in our Progress Report in
accordance with TCFD and NZBA guidance, and is also disclosed in our Integrated
Report and Sustainability Report. We plan to continue reporting on progress
toward our goals in the Integrated Report and other media.

3. In Japan, articles of incorporation provide for the basic matters of the
organization and operation of the company, and it is not appropriate for the articles
of incorporation to provide for specific matters concerning the execution of
business.

(1) MUFG flexibly reviews its business plans and executes them promptly to
respond to changes in social and other conditions. Changes to the Articles of
Incorporation require a special resolution at the General Meeting of Shareholders,
and we are concerned that if this Proposal were to be passed, it would be more
difficult for MUFG to respond flexibly, which could have a negative impact on our
customers and other stakeholders.

(2) MUFG believes that it is the responsibility of directors, who have the confidence
of shareholders, to respond flexibly to management issues such as climate change.

Therefore, we believe that there is no need to add the proposed clause to the
Articles of Incorporation.

[1] As an example, in terms of "electricity," the largest sector by GHG emissions, MUFG is targeting an emissions intensity of 156 -192 g CO2 e/kWh in 2030 (equivalent to a reduction of approximately 41% to
52% from 2019 levels) As of March 2022 it was 299 g CO2 e/kWh down about 9% from 328 g CO2 e/kWh in 2019 (base year)

--NEW-PAGE--

#### Governance to support Carbon Neutrality initiatives

###### - "Sustainable Management" is a important discussion topic at the BoD and reviewed annually.
Specific topics are reported and discussed in the briefings for outside directors(educational sessions)

|Col1|BoD operation|
|---|---|

|Col1|Opinions related to climate-change from outside directors|
|---|---|

######  Overview the group-wide issues and identify key topics for discussion  Topics for deliberation are organized based on the annual schedule

###### Annual schedule

Key topics are managed based on
the annual plan

It is vital to be conscious of the gap

with G-SIBs

**2. Governance**

The MUFG Way guides the way in which we carry out our business activities. To
realize our MUFG Way, the MUFG Group Code of Conduct have been established
which apply to executives and employees of all group companies and guide their
everyday decisions and actions. The Framework is based on our MUFG Way and
Code of Conduct.

**(1) Positioning of the Environmental and Social Policy Framework**

The Framework is based on the "MUFG Environmental Policy Statement" and
"MUFG Human Rights Policy Statement" and is structured to enable the appropriate
identification and management of environmental and social risks associated with our
business operations. The Framework is aligned with the MUFG reputational risk
management framework to avoid negative impacts to MUFG corporate value.

**(2) Governance and Management System**

The Sustainability committee, which reports to the Executive Committee, is
responsible for developing appropriate responses to the environmental and social
issues relevant to our business.
Individual transactions with significant environmental and social risks or impacts that
have the potential to negative impact on the corporate value of MUFG are assessed
for reputational risk, as necessary. Transactions are evaluated with the involvement
of executive management, taking into consideration the potential transaction related
reputational risks.

**(3) Role of Business Group**

Business Groups are responsible for performing environmental and social due
diligence to assess the potential environmental and social issues associated with the
products and services to be provided. The assessment includes information collected
from approaches such as interviews with clients. In implementing environmental and
social due diligence, Business Groups consult with the relevant department
responsible for management of environmental and social risks.

**(4) Management of the Environmental and Social Policy Framework**

The Framework was discussed by the Sustainability Committee and approved by the
Executive Committee. The Sustainability Committee regularly reviews the need to
update the Framework and makes amendments as necessary to reflect changes in
our business activities and the business environment.

Any updates to this policy are subject to approval by the Sustainable Engagement Meeting, which the Stewardship committee monitors on a regular basis.

④ Risk management and governance

a. Establishment of a framework for appropriately managing climate change-related risks through the Risk Appetite Framework and executive-level risk management.
b. Establishment of a governance framework with supervision by the Board of Directors to make appropriate decisions through various meetings that aims to realize carbon neutrality. [...] (5) Establishment of the Sustainability Risk Office
The Sustainability Risk Office has been established to manage sustainability-related risks such as climate change risks across the Group. It is a second line-of-defense organization and reports directly to the Group's Chief Risk Officer.

As part of efforts to strengthen its sustainability promotion system, MUFG has a governance system to monitor its sustainability initiatives, including progress towards targets. The Sustainability Committee meets at least once a year, in principle, to deliberate on MUFG's efforts to address environmental and social issues. The committee discuss and report on the content of deliberations, such as the confirmation of the status of sustainability initiatives, including the monitoring of the progress toward targets, and the integration and strengthening of the management plan, to the Board of Directors and the Executive Committee. We engaged three external experts in the environmental and social fields as permanent external advisors. Board members exchange views with the advisors and use advice and recommendations from their expertise in MUFG's sustainability initiatives. In addition, we established the position of Chief Sustainability Officer (CSuO) to clarify the responsibilities related to the promotion of sustainability. Under the MUFG Way, which guides all of our activities, MUFG has established the MUFG Environmental Policy Statement as a specific action guideline for practicing environmental considerations. The MUFG Environmental Policy Statement has been the matter to be determined in the Board of Directors since May 2021. The Policy clearly states the company's commitment to proactively disclose information on the environment, including climate change. To advance our sustainability management, in fiscal 2021, we revised performance-linked indices used for the determination of executive compensation. The revised indices incorporate the degree of improvement in external ESG evaluation granted to MUFG by ESG rating agencies. The Sustainability Office of the Corporate Planning Division is in charge of planning for sustainability management, and is accelerating the company-wide implementation of sustainability-oriented management. Furthermore, from the perspective of strengthening the system to support the realization of the \"MUFG Carbon Neutrality Declaration\" announced in May 2021, we have established a project team on a Group and global basis, including overseas partner banks, to support the Group's operating companies and bases in each region to lead the way in decarbonization while taking into account the characteristics and circumstances of each region. We discuss and make decisions through a steering committee in which the CEO and other key management members participate.

Governance to deal with climate change - the Board of Directors supervises climate change-related initiatives Opportunities and risks related to the environment and society, including climate change, are regularly discussed by the Sustainability Committee under the Executive Committee. Depending on the theme, matters are also reviewed by the Credit & Investment Management Committee, Credit Committee, and Risk Management Committee also under the Executive Committee. The contents of the review by the committees are reported to the Executive Committee and then to the Board of Directors to be reviewed. The contents of the review by the Credit & Investment Management Committee and the Risk Management Committee are reported to the Board of Directors after being reviewed by the Risk Committee, which is composed mainly of outside directors. [...] At MUFG, the Sustainability Committee, which operates under the Executive Committee, is charged with periodically deliberating policies on and determining the status of the Group's response to opportunities and risks arising from climate change and other environmental and social concerns. MUFG has positioned climate change-related risk as one of the Top Risks that it must pay close attention to. Accordingly, these risks are discussed by the Credit & Investment Management Committee, the Credit Committee and the Risk Management Committee, all of which are under the direct supervision of the Executive Committee. Conclusions reached by the above committees are reported to the Executive Committee‒which is tasked with deliberating and making decisions on important matters regarding business execution‒and, ultimately, reported to and discussed by the Board of Directors. In addition, matters discussed by the Credit & Investment Management Committee and the Risk Management Committee are also examined by the Risk Committee, which mainly consists of outside directors, and then reported to the Board of Directors. In these ways, the Board of Directors exercises supervision over MUFG's climate change-related initiatives. Specifically, the Board of Directors handles issues requiring a groupwide perspective and, to this end, identifies important themes deserving intensive discussion, thereby managing these issues based on a PDCA cycle in accordance with an annual schedule. Also, sustainability management is considered an important theme. The Board of Directors actively addresses matters related to this theme through dedicated sessions in addition to deliberations at regular Board meetings. [...] To consider a management framework for supervising countermeasures against climate change risks, a project team is established with the Group Chief Risk Officer (CRO) as the lead and with participation of the CROs from the holding company, the Bank, Trust Bank and Securities, as well as regional CROs of the holding company and Bank. Risk management is strengthened by tracking and sharing regulatory trends and establishing risk management frameworks on a Group and global basis. [...] MUFG has established project teams on a group and global basis to discuss and make decisions through a steering committee in which the CEO and other key management members participate. In addition, the Sustainability Committee discusses climate change measures and reports to the Executive Committee and the Board of Directors. |Committee|Members|Items Discussed and Reported| |---|---|---| |Sustainability Committee|Chairperson: Group CSuO Other members: Group C-Suite (CEO, CSO, CFO, CRO), the Bank President, Trust and Securities companies Presidents, and Heads of Business Group|・Progress related to the MUFG Carbon Neutrality Declaration -Engagement with customers, sustainable finance, setting of interim targets for investment and loan portfolio, and reduction of in-house GHG emissions ・Status of activities in external initiatives (such as NZBA) ・Revision of the MUFG Environmental and Social Policy Framework ・Assessments by ESG rating agencies| |Steering Committee|Chair: Group CSuO Other members: Group C-Suite (CEO, CSO, CFO, CRO, CLO, CDO), the Bank President, Trust and Securities Presidents, and Heads of Business Group|・Progress and policies in each area of Carbon Neutral Project Team ・Total of three Steering Committee meetings were held in quarterly in FY 2021.| |Executive Review Committee|Facilitator: Head of Corporate Planning Division Other members: Group CEO and Heads of Business Group. Participants are selected on a case-by-case basis.|・Discusses the measurement of and target setting for GHG emissions by sector, mainly sectors in the financed portfolio. ・Four Executive Review Committee meetings were held in FY 2021.

- Sustainability-related issues are managed by the Executive Committee with various management sub-committees, subject to the oversight of the Board of Directors. The Sustainability Committee, which is a sub-committee formed under the Executive Committee and is chaired by the Chief Sustainability Officer, regularly deliberates policies on addressing sustainability-related matters, including risks and opportunities arising from such matters, and monitors the progress on the MUFG Group's measures designed to address such matters. The committee reports to the Executive Committee and, as necessary, reports to the Board of Directors. [...] - Three external advisors have been invited to provide expert opinions on sustainability issues and risks at any time. These advisors exchange opinions with the members of the top managements and others and provide advice and recommendations from their professional standpoints on MUFG's sustainability initiatives.

**2. Governance**

The MUFG Way guides the way in which we carry out our business activities. To realize our
MUFG Way, the MUFG Group Code of Conduct have been established which apply to executives
and employees of all group companies and guide their everyday decisions and actions. The
Framework is based on our MUFG Way and Code of Conduct.

**(1) Positioning of the Environmental and Social Policy Framework**

The Framework is based on the "MUFG Environmental Policy Statement" and "MUFG Human
Rights Policy Statement" and is structured to enable the appropriate identification and
management of environmental and social risks associated with our business operations. The
Framework is aligned with the MUFG reputational risk management framework to avoid
negative impacts to MUFG corporate value.

**(2) Governance and Management System**

The CSR committee, which reports to the Executive Committee, is responsible for developing
appropriate responses to the environmental and social issues relevant to our business.
Individual transactions with significant environmental and social risks or impacts that have the
potential to negative impact on the corporate value of MUFG are assessed for reputational risk,
as necessary. Transactions are evaluated with the involvement of executive management,
taking into consideration the potential transaction related reputational risks.

**(3) Role of Business Group**

Business Groups are responsible for performing environmental and social due diligence to
assess the potential environmental and social issues associated with the products and services
to be provided. The assessment includes information collected from approaches such as
interviews with clients. In implementing environmental and social due diligence, Business
Groups consult with the relevant department responsible for management of environmental
and social risks.

**(4) Management of the Environmental and Social Policy Framework**

The Framework was discussed by the CSR Committee and approved by the Executive
Committee. The CSR Committee regularly reviews the need to update the Framework and
makes amendments as necessary to reflect changes in our business activities and the
business environment.

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]Yes