TOKYO, April 11 (Reuters) – Japan’s Mitsubishi UFJ Monetary Group (8306.T) on Tuesday laid out emissions-cutting targets for lending to the actual property, metal and transport sectors, and mentioned emissions from its oil and gasoline enterprise had fallen as loans have been repaid.
As Japan’s prime lender and a big funder of carbon-intensive industries, MUFG is more and more in activists’ crosshairs and is about to face a shareholder vote on its local weather efforts at an upcoming annual assembly.
The necessity for quicker local weather motion was reiterated by U.N. local weather scientists final month, with the world on observe to blow previous a purpose of limiting world warming to 1.5 levels Celsius above the pre-industrial common by mid-century.
Whereas MUFG and different banks have dedicated to get to net-zero carbon emissions throughout their financing by that date, the main target is more and more on shorter-term steps they plan to get there.
After beforehand setting targets for the oil and gasoline and energy sectors, MUFG mentioned it had additionally set targets for transport, metal and actual property.
For business property, the financial institution mentioned it might goal a lower in emissions depth to 44-47 kilograms of carbon equal per sq. meter by 2030, in opposition to 2020 outcomes of 65 kilograms. For residential, it targets a drop from 27 kilograms to 23 kilograms.
For metal, which accounts for 7% of worldwide emissions, MUFG mentioned it might goal a 22% discount in emissions in contrast with 2019. In transport, the financial institution goals to align with an Worldwide Maritime Group goal to halve emissions from a 2008 baseline.
After beforehand concentrating on a 15-28% lower in oil and gasoline emissions by 2030, MUFG mentioned in a progress report that as of March emissions have been 76 million tonnes of carbon equal, down 9% from 2019.
The financial institution mentioned “modifications within the exterior setting as a result of state of affairs in Ukraine” and different elements might influence future emissions linked to the sector.
Emissions from the ability sector additionally fell 9% over the identical interval, it added, because the financial institution’s clients shift to greener types of power.
MUFG, with some $2.8 trillion in belongings, is among the world’s largest lenders.
Reporting by Simon Jessop; Modifying by Jan Harvey
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