MUFG Union Bank has announced the launch of green deposits for commercial and corporate clients to support sustainable projects that benefit the environment.
Green deposits give customers the opportunity to invest their deposits in environmental, social and governance (ESG) projects.
MUFG will use the deposited funds to finance ESG projects such as energy efficiency, renewable energy, green transport, sustainable food, agriculture, forestry, waste management and greenhouse gas reduction, among others.
Ranjana Clark, Head of Global & Americas Transaction Banking and Bay Area President said: “Our new green deposits offering aligns with our clients’ commitment to the environment by embracing social responsibility and sustainable investing.
“MUFG is focused on developing innovative products and services that support our clients’ objectives and that leverage our business strengths, such as project finance and liquidity management.”
MUFG started applying the Equator Principles 4, which includes due diligence on the impact of physical and transition risks posed by climate change on projects and enhanced engagement of indigenous people.
It has also committed to gradually decreasing the balance of MUFG’s exposure to coal-fired power generation projects, with a target reduction of 50% by 2030 and full divestment by 2040.
In addition, the Bank plans to commit $72 billion (£51bn) in the environmental field, including initiatives to fight climate change.