MUFG,SMBC Group, Mizuho (collectively megabanks)

Summary

The Japanese megabanks; Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Financial Group (SMBC Group), and Mizuho Financial Group (Mizuho) are among the world’s top financiers supporting the fossil fuel industry. However, they are falling significantly short in managing the financial risks associated with climate change for their companies.

These banks are undermining their commitment to achieving net-zero emissions by 2050 by continuing to finance companies that are not aligned with these climate goals. Additionally, the current boards of directors of these megabanks seem to lack the necessary expertise to effectively oversee climate-related risks, and insufficient disclosure leaves shareholders unable to evaluate their competency.

Without a clear assessment framework for clients’ transition or board of directors equipped with climate expertise, these banks are unable to properly evaluate decarbonization strategies or assess their effectiveness. This situation exposes shareholders to potential financial consequences.

Key points

Download the documents

Disclaimer

Informational purposes only – This communication is provided solely for informational purposes only and is not, and should not be construed as, investment advice or investment recommendations for the purposes of the Financial Instrument Exchange Act of Japan.

No joint-exercise of voting rights – Nothing in this written communication, nor in any related oral discussion, is intended to be, nor should it be construed as, an offer, an acceptance or a consent, to enter into an agreement for the joint exercise of voting rights or any other shareholder’ rights for the purposes of the Financial Instrument Exchange Act and Foreign Exchange and Foreign Trade Act of Japan. If needs be, it is hereby emphasised that each shareholder exercises its shareholder’s rights independently based upon its own decision and shall not be held liable for its exercise of its shareholder’s rights in any event or in any result, as a breach of any discussion between the shareholders.

No proxy solicitation – Nothing in this written communication, nor in any related oral discussion, is intended to be, nor should it be construed as, a “solicitation for proxies” for the purposes of the Financial Instrument Exchange Act of Japan. The shareholder is not soliciting or seeking any authorization by any other shareholders to exercise their voting rights or any other shareholders’ rights on their behalf or as their agent at the annual shareholders’ meeting. This is a non-commercial product for public dissemination only. Not for sale.

Analysis featured in this briefing does not substitute analysis and disclosure from the companies themselves with primary information. The purpose of the information featured here is to demonstrate to investors the substantial climate-risks the companies are exposed to, and encourages them to undertake their own detailed, forward-looking analysis to demonstrate to investors how they are managing these risks.