MUFG Bank invests in SDG Impact Japan for Carbon Neutrality and a Sustainable World

October 17, 2023

MUFG Bank, Ltd., and SDG Impact Japan Inc, have recently entered into a capital and business alliance. This strategic partnership is dedicated to fostering a wide range of sustainability-related business collaborations, including the creation and utilization of high-quality carbon credits, with the aim of achieving carbon neutrality in Japan and around the world.

In response to the pressing concerns of climate change, efforts are being made by countries and companies to rapidly reduce their greenhouse gas (GHG) emissions. Mitsubishi UFJ Financial Group, Inc. is committed to “supporting a smooth transition to a decarbonized society through our business” and “actively contributing to the realization of a sustainable society through a positive cycle between the environment and the economy,” and has been supporting GHG emissions reduction through engagement with our clients.

In this context, there are growing expectations for the use of high-quality carbon credits as a means of achieving carbon neutrality beyond a company’s own GHG emissions reduction efforts. In particular, with regard to the Joint Crediting Mechanism (JCM)1, the Japanese government has decided to utilize the JCM for the reduction target of NDC (nationally determined contribution)2, and has set a target of securing cumulatively 100 million t-CO2 of JCM credits by 2030. In this context, a new system, private-sector-led JCM, is also being designed to create JCM credits through active financial contributions by the private sector.

MUFG Bank, Ltd. will continue to support its clients’ GHG emission reductions and also expand its efforts to contribute to the creation and dissemination of carbon credits, for which there are growing expectations in Japan.

Through this partnership, MUFG Bank, Ltd. and SDG Impact Japan will work to expand the pipeline for the creation of JCM credits and to stimulate demand, and will further promote efforts to accelerate the transition to a sustainable society by making suggestions on the regulatory design of private-sector-led JCM. The two parties will also further promote efforts to accelerate the transition to a sustainable society by creating open innovation through linking MUFG Bank’s network of large Japanese corporations to SDG Impact Japan’s network of innovative sustainability and circular economy focused startup companies.

About MUFG Bank

MUFG Bank, Ltd. is Japan’s premier bank, with a global network spanning around 50 countries. Outside of Japan, the bank offers an extensive scope of commercial and investment banking products and services to businesses, governments and individuals worldwide. MUFG Bank’s parent, Mitsubishi UFJ Financial Group, Inc. (MUFG) is one of the world’s leading financial groups. Headquartered in Tokyo and with over 360 years of history, MUFG has a global network with approximately 2,000 locations in more than 50 countries. The Group has about 160,000 employees and offers services including commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing. The Group aims to “be the world’s most trusted financial group” through close collaboration among our operating companies and flexibly respond to all of the financial needs of our customers, serving society, and fostering shared and sustainable growth for a better world. MUFG’s shares trade on the Tokyo, Nagoya, and New York stock exchanges. You can find further information here.

About SDG Impact Japan

SDG Impact Japan is the first sustainable investment platform based in Japan, and invests in entrepreneurs and companies solving the world’s hardest problems. Together with its strategic partners, SDG Impact Japan has established early-stage venture funds focused on promoting the circular economy, and sustainable agri-food tech solutions. We also advise on Japan’s first outcome focused ESG engagement fund for listed equities.

For more information, please contact info@sdgi-j.com

  1. Read more about Japan’s Joint Crediting Mechanism
  2. Learn more about Nationally Determined Contributions.

This article is intended solely for the purpose of publicly announcing the results of the activities of SDG Impact Japan Inc. and does not in any way constitute a solicitation to acquire any funds or other securities.

Wataru Baba
Managing Partner

Senior Fellow, Climate and Sustainability at Panasonic Group since 2022, where he accelerated the company’s growth through an integrated strategy for creating positive impact on climate change and established Sustainability Committee, chaired by the Group CEO. Board Member of Japan Professional Football League (J.League) and Independent Director for a civic technology nonprofit, Code for Japan, and a web3 startup, Financie, Inc