Respecting Human Rights

MUFG understands that it may cause or contribute to adverse impacts on human rights or be directly linked to them through business relationships in the course of its business activities, and that it is expected to promote and encourage responsible corporate behavior by its business partners through engagement. We will strive to prevent adverse impacts on human rights, and if adverse impacts occur, we will endeavor to address the adverse impacts in accordance with the forms of involvement described in ① through ③below

Under the "MUFG Way" which articulates the values that guide all we do, "Committed to empowering a brighter future." is our Purpose set forth, and we are working to provide solutions to our respective customers, the society, and all other stakeholders. MUFG Human Rights Policy Statement is based on MUFG Group Code of Conduct, established under the MUFG Way, and pledges to respect human rights in our business activities. Under MUFG Human Rights Policy Statement, we have established various guidelines, policies and rules to respect for human rights.

Based on its Human Rights Policy, MUFG is working to disseminate the policy to each stakeholder in order to fulfill its responsibility to respect human rights in all business activities. We believe that it is important for all employees to mutually share the importance of respecting human rights with each stakeholder by understanding the content of our human rights policy and putting it into action. We will continuously make our e‑orts to disseminate our human rights policy and to work on human rights awareness-raising activities.

MUFG Group established a code of conduct that sets forth the standards on how executives and employees should make decisions and act in day-to-day business activities under the MUFG Way. The Code of Conduct states that we will contribute to the realization of a sustainable society through our e‑orts to resolve environmental and social issues, including respect for human rights, and we are making our employees aware of the importance of respect for human rights and fostering their awareness.

The Bank, the Trust Bank and the Securities have established a human rights awareness promotion system indicated as below, and in addition to conducting trainings and other awareness-raising activities, promotion staff assigned to each department, office and branch, and persons responsible for awareness-raising activities promote and develop MUFG Group-wide e‑orts to respect human rights. We strive to deepen each employee's correct understanding and awareness of human rights policies and issues by providing human rights awareness-raising trainings to all employees through trainings for new recruits and trainings for each hierarchy of employees, etc.

We conduct trainings for corporate staff of business divisions of our major subsidiaries to deepen their understanding of the MUFG Environmental and Social Policy Framework, which is based on our Environmental Policy and Human Rights Policy, as well as our e‑orts to address global environmental and social issues.

Based on the idea of the Environmental Policy and Human Rights Policy, MUFG establishes "Approach to Purchasing Activity" and encourages suppliers to respect human rights. In accordance with the "Approach to Purchasing Activity," the Bank, the Trust Bank and the Securities hand deliver and explain the "Guidelines for Purchasing Activity" to their suppliers^(note), seeking their understanding of MUFG's policy.

The Sustainability Committee, chaired by the Group CSuO（Chief Sustainability Officer）, deliberates on measures and policies related to respect for human rights based on the MUFG Human Rights Policy and other important matters related to human rights. The results of the Sustainability Committee's deliberations are reported to and supervised by the Board of Directors. Based on the discussions of the Board of Directors and the Sustainability Committee, the resources necessary to ensure effective respect for and protection of human rights are appropriately allocated to the relevant departments. The MUFG Human Rights Policy, MUFG's basic policy on human rights, is established and reviewed by the Board of Directors.

In order to appropriately understand the role required by society and stakeholders, and to promote respect for human rights, we invited outside experts in the field of business and human rights and held a dialogue on respect for human rights with the executives. From the perspectives of international organizations, NGOs, and lawyers, we discussed on how financial institutions should respect human rights.

MUFG engages in human rights due diligence by respecting the United Nations Guiding Principles on Business and Human Rights and the OECD Due Diligence Guidance for Responsible Business Conduct（hereinafter "OECD Guidance"）. We also continuously review our human rights policies and initiatives based on lessons learned through communication with stakeholders and remedy efforts.

We identified salient human rights issues highly relevant to MUFG, assessed their severity and likelihood of occurrence, and created a human rights issues map. Based on the results, the Sustainability Committee discussed future policies for addressing salient human rights issues. This map of human rights issues will be reviewed on an ongoing basis in light of changes in the business environment and the results of stakeholder engagement.

^{1. Working hours, wages, industrial safety and health, treatment of migrant workers, etc.　2. Health of nearby residents, land issues, etc.}

MUFG conducts ongoing due diligence on human rights issues concerning various stakeholders, including customers and employees. Relevant departments verify and discuss the outcomes of this due diligence, after which we carry out mitigation measures to overcome human rights issues.

● Prevention of Discrimination and Harassment

MUFG recognizes respect for human rights as an important issue for management to address, and has established rules and standards such as Code of Conduct and Compliance Manual. In addition, we have established consultation desks for sexual harassment and power harassment within each company to provide consultation services through various means, including meetings, telephone calls, e-mails etc., in order to create a positive, safe and comfortable work environment. 

The Bank has established the Harassment Prevention Manual which presents types of harassment, precautions and guidelines as how to respond when harassment occurs, to deepen each employee’s correct understanding and awareness. Furthermore, the Bank conducts ongoing trainings to prevent harassment.

● Respect for Freedom of Association and Collective Bargaining Rights

MUFG is committed to respecting workers’ freedom of association and collective bargaining rights in accordance with its Human Rights Policy Statement, and ensures its compliance through awareness-raising activities. In the Bank, the Trust Bank, and the Securities, employee unions are organized in each company, and the company and the union regularly discuss various topics while respecting each other’s perspective and view.

● Our Approach to Health Management

We place the utmost importance on the mental and physical health of our employees face and resolve the challenges faced by the stakeholders such as the society and our respective customers. Based on each company’s Health Management Declaration, the Bank, the Trust Bank, and the Securities are promoting health management as one of their management missions. Industrial physicians and occupational health staff working at MUFG Group companies, health insurance societies, etc. cooperate to manage employees’ mental and physical health through regular health checkups, stress checks, and various health counseling programs, etc.

● DEI

MUFG is committed to creating an organization that is free from discrimination based on gender, disabilities, national origin, race, age, sexual orientation, etc., and where individuals can fully realize their potential and are given adequate opportunities for growth.

● Initiatives for Personal Information Protection

Since MUFG believes it is the Group's social responsibility to handle customers' personal information properly, it established and published the Personal Information Protection Policy. In addition, in order to realize a unified management system within the Group companies, MUFG has established the "MUFG Personal Information Protection Principle" (the "Principle") and each Group company has established its own "Personal Information Protection Procedure", etc. based on the Principle. The management methods for organizational, human, technical, and physical safety control measures are clarified in the relevant principles and procedures of each company, and regular education and training are provided to employees. We strive to protect and respect the privacy of our customers by continuously strengthening our information management system while keeping abreast of the ever-changing external environment and continuously reviewing related regulations and training programs. In addition to internal information management, we have prepared a system to check whether the information is managed by outside contractors in accordance with the Personal Information Protection Law and other relevant laws.

● Identifying human rights impacts in the planning and development of products and services and the publication of advertising materials

Group companies constantly check whether sufficient measures have been taken at the planning and development stages of products and services from the "customer's perspective," and risk assessments are conducted for new products and services, including customer protection and the customer's viewpoint. When publishing advertising materials, we check for problematic expressions from the perspective of respect for human rights. We give full consideration to diversity and strive to ensure that our expressions are inclusive.

● Combating Financial Crimes

MUFG is committed to supporting the financial system and combating financial crimes, including money laundering and financing of terrorism, economic sanctions and bribery and corruption. To that end, MUFG maintains compliance and risk management frameworks incorporating processes for the identification, assessment, treatment, and monitoring of customers for financial crimes risks, including criminal or unethical activities, such as human rights abuses.

● Universal Support
MUFG is committed to introducing universal design in both software and hardware aspects to ensure that all customers can use our services with peace of mind, including customer service that takes all customers into consideration(hospitality) and safe and secure branch facilities(facilities).

● Ensuring Equal Access to Financial Services

In the Asian region, ensuring equal access to financial services is a challenge due to the lack of bank branches and ATMs in remote and rural areas, low financial literacy and ignorance of the existence and use of available services. MUFG contributes to ensuring equal access to financial services in Asia by providing opportunities to access financial services and working to improve financial literacy.

MUFG recognizes that the environmental and social risks arising from the business activities of each group company are important management issue to be addressed appropriately. Based on this recognition, we established the MUFG Environmental and Social Policy Framework in 2018 as a framework to cease, prevent, and mitigate adverse impacts on environment and society, including human rights issues, in the process of providing financing for corporate customers. MUFG Environmental and Social Policy Framework is regularly deliberated at the Sustainability Committee for its revision, and is revised as necessary based on changes in business activities, business environment, and dialogue with stakeholders. In addition, large-scale infrastructure development, resource development, etc. may have adverse impacts on the project sites and the surrounding communities and natural environment. In accordance with the Equator Principles, MUFG Bank identifies risks and impacts on the environment and society, including the status of human rights considerations in the business of the borrowers and confirms the mitigation measures taken by them.

MUFG recognizes child labor, forced labor, and human trafficking as highly severe human rights issues and has designated them as prohibited transactions in the MUFG Environmental and Social Policy Framework. MUFG conducts due diligence when considering financing, and makes the credit decision after confirming whether or not the transactions fall under prohibited ones. In addition, MUFG will perform regular screening on its borrowers/investees for any issue related to child labor, forced labor, and human trafficking, and if such highly severe human rights issue is identified, MUFG will request borrowers/investees to take corrective actions and prevent its recurrence.

MUFG has defined our "Approach to Purchasing Activity" which clarifies our expectations toward suppliers, including respect for human rights and environmental considerations. Domestic offices of the Bank, the Trust Bank, and the Securities explain the "Guidelines for Purchasing Activity" based on the "Approach to Purchasing Activity" to suppliers to seek their understanding of MUFG's policy.

We are committed to respecting human rights in our supply chain through the implementation of human rights due diligence.

In accordance with the United Kingdom's Modern Slavery Act 2015 and Australia's Commonwealth Modern Slavery Act 2019 legislation, we have issued  statements regarding our initiatives to prevent labor exploitation and human trafficking in our businesses and those of our suppliers, and are taking action to prevent human rights violations in the supply chains.

MUFG actively promotes a constructive dialogue with various stakeholders in order to deepen mutual understanding towards respect for human rights. In particular, we believe that a dialogue with stakeholders which may have human rights impacts through MUFG's business is an important element in achieving respect for human rights. We will strive to build a relationship of trust and collaboration with stakeholders by responding appropriately to their concerns, issues, and opinions, which will lead to MUFG's sustainable growth and improvement of corporate value over the medium to long term.

MUFG has established remedial contact points for employees, customers, and other stakeholders, and responds appropriately to comments and complaints on matters including human rights issues.

"Compliance Helpline" and consultation service for issues such as sexual and power harassment are established at each Group company to ensure a pleasant and positive working environment. It responds to reports submitted in-person or via phone, email, etc., while considering the individual's anonymity and privacy.

MUFG has established a system to appropriately respond to opinions and complaints, including human rights issues, from customers and other stakeholders. If it becomes clear that employees of group companies, or the products or services we provide, are causing, contributing to, or directly linked to adverse human rights impacts, we will work to remediate the situation. In FY2022, there were 214 cases in which services were improved based on feedback and requests received from customers of the five group companies^(note1).

In 2023, MUFG had joined in the Japan Center for Engagement and Remedy on Business and Human Rights (JaCER). JaCER is an organization that receives reports of grievances related to human rights through the "Engagement and Remedy Platform" and aims to act in a professional capacity to support and promote remediation of grievances by member companies. JaCER platform has a fair dialogue and remedy process in place, which ensures the anonymity of whistle-blowers and confidentiality of the content of their reports, and also allows whistle-blowers to report in multiple languages. By utilizing JaCER platform, MUFG established a remedial contact points for adverse human rights impacts that occur throughout the value chain, including employees of borrowers/investees and suppliers, as well as community and neighborhood residents, and making an effort to improve our grievance mechanisms.