InfoSAWIT, SAN FRANCISCO – The biggest bank in Japan, Mitsubishi UFJ Financial Group (MUFG) released the Environment and Social Governance (ESG) which was revised, Thursday (14/5/2020) but failed to fulfill the hope globally and other banks in Japan – namely Mizuho (Mizuho) Group and Sumitomo Mitsui Financial (Group SMBC).
In the official written statement to InfoSAWIT, Rainforest Action Network (RAN), has protested MUFG for years for giving the fund to palm oil plantations which have damaged the forests and funding the fossil fuel expansion in the world. RAN re-criticized the disappointing policy.
“The policy represents the fail leadership of the banks in the world to solve the threats of ecosystem and the wild in the pandemic about the deforestation. According to United Nations Environment Protection (UNEP), it needs bigger efforts. We are really disappointed,” Sustainable Finance Campaigner, RAN, Hana Heineken said.
Hana thought that by the policy, MUFG has decided to prioritize to get more profits than to keep the climate stable and maintain the rests of rain forests in the world. these are the important things to prevent the pandemic in the future.
Not like Mizuho, MUFG failed its time limit - commitment to eliminate coal funding or combine the best practices internationally in the forestry sectors which are represented by No Deforestation, Peat, and Exploitation (NDPE) policy and enshrine the rights of the local community to get the Persetujuan atas Dasar Informasi di Awal Tanpa Paksaan (PADIATAPA) or Free, Prior and Informed Consent (FPIC). Not like SMBC, MUFG is not committed to protect the forests and the natural conservation or forbid the fire to new planting. But the reverse, MUFG depends on the weak certification.
MUFG has become one biggest capital owner globally for the troubled palm oil and helped fund the fire in Indonesia in 2019. The bank report about the climate change in this year revealed that MUFG has given the sixth biggest loan and become the banks which funded fossil fuel emission since Paris Agreement by spending US$ 119 billion in 2016 to 2019.
MUFG has become the main capital owner for the companies which developed the tar sand oil (oil which is extorted from the sandy oil) whole over the world., and the development of pipe construction in North America, Enbridge Line 3 and Keystone XL of TC Energy – and as the matter of fact, it has given new fund to two companies during the pandemic – though the projects clearly trigger the climate disaster and indigenous rights violation. MUFG is the fourth biggest capital owner for the oil and gas drill in Arctic, and keeps funding the new controversial coal company in Vietnam, such as, Vung Ang 2, though the company promised to stop operating. (T2)