MUFG achieves 50% reduction from FY2020 interim target worldwide operations; Ahead of schedule, decarbonization milestone achieved

tp2026_en.pdf

1 MUFG Transition Progress 2026

2 Managing the Financed Portfolio Operating Framework 16 Roadmap for 2050 18 Sector-specific Interim Targets 19 Interim Target Results 20 Portfolio Financed Emissions 22 Risk Management and Governance Risk Management Framework 23 Scenario Analysis 24 Transition Assessment Framework 25 Internal Fora and Committees 26 Competencies of the Board 27 Compensation 28 Building Capabilities 29 Other Initiatives Activities of our Partner Banks 30 Appendix 31 Table of Contents Introduction 3 Highlights 4 Our Journey 5 Organizational Structure 6 Reducing Own Emissions 7 Engagement and Finance Activities Mindset to Support Transition 8 Engagement 9 Finance Activities 12 Other Activities 15

3 Introduction MUFG Carbon Neutral Declaration ⚫Net-zero GHG emissions by 2030 for our own operations ⚫Net-zero GHG emissions by 2050 for the financed portfolio Three unwavering commitments

  1. Helping achieve the 1.5°C target of the Paris Agreement by achieving carbon neutrality by 2050
  2. Supporting a smooth transition to a decarbonized society through our financial services
  3. Proactively contributing to creating a sustainable society by fostering a virtuous cycle between the environment and the economy Engagement and Finance Activities Reducing Own Emissions Risk Management and Governance Managing the Financed Portfolio Four Strategies of the MUFG Transition Plan 1 2 3 4 Against a backdrop of geopolitical developments, the emergence of new industries such as AI, and economic growth in emerging markets, energy demand is rising in many countries, forcing energy security and stable supply to become top priorities. As a result, there is a trend to return to investment in fossil fuels, but at the same time, investment related to carbon neutrality that contributes to national industrial competitiveness and energy policy is progressing, and the green bond and loan market is expanding in 2025. The current situation in the Middle East has also renewed awareness of the need to reassess reliance on specific energy sources, further underscoring the importance of pursuing sustainable energy to achieve sustainable growth. In addition, as temperatures rise, extreme weather events and disasters are increasing and physical risks are becoming more pronounced, heightening the importance of climate change adaptation. In May 2021, MUFG announced its Carbon Neutrality Declaration, committing to achieve net-zero GHG emissions from its own operations by 2030 and net-zero GHG emissions across its financed portfolio by 2050. Under “Driving Social & Environment Progress — for our Brighter Future,” one of the three pillars of the Medium-Term Business Plan launched in FY2024, the realization of a carbon-neutral society is one of the highest priorities. Contributing to a carbon-neutral society remains MUFG’s unwavering commitment, and we are advancing our transition plan built on four strategies. As a global financial institution, MUFG is affected by various external factors that are difficult to predict in the process of advancing the transition plan, but our focus will always be the decarbonization of the real economy compatible with economic growth. This Transition Progress 2026 shows the effective initiatives and progress accumulated to embody the transition that MUFG aims for, and all initiatives reported are conducted in compliance with the laws and regulations applicable to MUFG in each relevant jurisdiction.

4 Reducing Own Emissions Continue working on reductions towards target whilst also leveraging partnerships with clients NEXT STEPS FY2024 performance FY2026 interim target of “50% reduction from FY2020” achieved ahead of schedule 159 2030 net-zero Managing the Financed Portfolio Strengthen monitoring and deploy measures, whilst reflecting changes in the business environment and clients’ progress in decarbonization NEXT STEPS Update interim targets for power, oil & gas, automotive, and aviation sector Five-Year Action Plan disclosed Target review & update Roadmap for 2050 2030 interim targets 2050 net-zero Engagement and Finance Activities Strengthening finance activities to advance decarbonization of the real economy compatible with economic growth NEXT STEPS Transition Whitepaper Whitepaper 4.0 (2025) issued Sustainable Finance JPY 100 trillion by FY2030 Project Finance for renewable energy CO2 reduction through MUFG’s involvement in renewable energy projects Cumulative target of “70 million tons FY2019-FY2030” achieved ahead of schedule Risk Management and Governance Enhance MUFG’s overall capability by strengthening risk analysis and employee skills NEXT STEPS Scenario analysis Building capability Number of trainees for mid-career entrants 4,400 + Number of participants in study sessions for the client coverage 1,500 + approx.820 40 branches • New asset class added • New physical climate hazard analyzed Expand analysis scope Thousand tCO2e Highlights Worldwide2 No.1 Cumulative total over the past 10 years Cumulative total from FY2019 to FY20251 of which, environment segment 56.5 trillion yen 24.6 trillion yen Cumulative total from FY2019 to FY2024 70.41 million tons Roadshow for “Driving Social & Environmental Progress” (Bank) Cumulative number of employees with sustainability-related qualification *1 Estimate *2 Source: BloombergNEF ASSET FINANCE / Lead Arrangers LEAGUE TABLE, cumulative finance performance for the 10 years from 2016 to 2025 aggregated by MUFG

5 Our Journey 2018 2017 2019 2020 2021 2022 2023 2025 ⚫Publication of MUFG Climate Report 2025 ⚫Adding Facilitated Emission to 2030 interim targets (Power, Oil & Gas) ⚫Publication of Transition Whitepaper 4.0 (2025) 2024 ⚫Publication of MUFG Transition Progress 2026 ⚫Reviewing 2030 interim targets (Power, Oil & Gas, Automotive, Aviation) ⚫Formulating Roadmap for 2050 2026 ⚫Publication of the Progress Report 2022 ⚫Establishment of the interim target for 2030 (Power, Oil & Gas) ⚫Publication of the Transition Whitepaper 1.0 (2022) ⚫Establishment of the NZAM 2030 interim target ⚫Establishment of the MUFG AM Sustainable Investment Policy ⚫Publication of the Progress Report 2023 ⚫Establishment of the interim target for reducing emissions from own operations ⚫Establishment of the interim target for 2030 (Steel, Real Estate, Shipping) ⚫Publication of the Transition Whitepaper 2.0 (2023) ⚫Publication of the Asia Transition Whitepaper 2023 ⚫Publication of the MUFG Climate Report 2024 ⚫Establishment of the interim target for 2030 (Automotive, Aviation, Coal) ⚫Revision of the sustainable finance target (100 trillion yen) ⚫Publication of Transition Whitepaper 3.0 (2024) ⚫Establishment of the Environmental Policy Statement ⚫Establishment of the Environmental and Social Policy Framework (updated annually thereafter) ⚫Support for the TCFD recommendations ⚫Establishment of sustainable finance targets (20 trillion yen) ⚫Signing of the Principles for Responsible Banking ⚫Establishment of the MUFG AM Responsible Investment Policy ⚫Creation of the Chief Sustainability Officer position ⚫Publication of the Sustainability Report ⚫Announcement of the Carbon Neutrality Declaration ⚫Joined the NZBA ⚫Joined the NZAM ⚫Revision of sustainable finance target (35 trillion yen) ‒ Net-zero GHG emissions from our financed portfolio by 2050 ‒ Net-zero GHG emissions from our own operations by 2030

6 Under the supervision of the Board of Directors, MUFG regularly discusses initiatives to address sustainability opportunities and risks, including climate change, at the Sustainability Committee, which operates under the Executive Committee. The Carbon Neutrality Project Team, comprising nine working groups, brings together planning, business, and risk management departments to collaboratively advance these initiatives. Organizational Structure WG6 Asset management initiatives WG7 Reducing own emissions WG8 Partner banks WG9 Carbon credits/pricing WG1 Business promotion/ engagement WG2 Global alliances/ regulatory issues WG3 Managing the financed portfolio WG4 Risk management WG5 Disclosure strategy Carbon Neutrality Project Team WG: Working Group External Advisors Advice/ suggestions Sustainability Committee Board of directors Executive Committee Compensation Committee Audit Committee Nomination and Governance Committee Sustainability Office Sustainable Business Division Sustainability Risk Management Office • Credit and Investment Management Committee • Risk Management Committee • Credit Committee Risk Committee Mitsubishi UFJ Financial Group Chair: CSuO Members: Group CEO, CSO, CFO, CRO, Heads of Business Units, Executives of Group Companies, etc. Key sustainability-related departments Execution Supervision

7 4.リスク管理とガバナンス 3.投融資ポートフォリオ への対応 気候変動対応について Engagement and Finance Activities Engagement and Finance Activities Reducing Own Emissions Reducing Own Emissions Managing the Financed Portfolio Managing the Financed Portfolio Risk Management and Governance Risk Management and Governance Other Initiatives Other Initiatives Reducing Own Emissions Based on the MUFG Carbon Neutrality Declaration announced in May 2021, MUFG aims for net-zero GHG emissions by 2030 from its own operations. As a result of thorough energy-saving measures and the transition to renewable energy for its own contracted electricity, the GHG emissions for FY2024 were 159 thousand tCO2e, achieving the interim target for FY2026 of “50% reduction from FY2020 (168 thousand tCO2e)” ahead of schedule. Further reductions require addressing challenges such as shifting other contracted electricity to renewable energy and addressing reduction of direct emissions from gasoline, city gas and other fuels. While continuing to leverage partnerships with clients, we will aim to reduce GHG emissions domestically and internationally to achieve the target. Roadmap and interim target for own emissions reduction 336 232 189 175 159 168 0 -40 0 40 80 120 160 200 240 280 320 360 Carbon credits (negative emissions) FY2021 FY2026 interim target FY2030 target FY2022 FY2023 FY2024 *1 Refer to the website “SUSTAINABILITY AT WORK” for an overview of the initiatives *2 Krungsri (Bank of Ayudhya) is a consolidated subsidiary in Thailand, Bank Danamon is a consolidated subsidiary in Indonesia *3 Obtained independent third-party assurance for GHG emission performance data 4 Power Purchase Agreement 5 BIPV are expected to be a promising option for accelerating the introduction of renewable energy, as they enable power generation on vertical surfaces that have not been utilized before, such as building openings and walls. FY2020 Interim target for FY2026 achieved ahead of schedule (50% reduction) Acquired third-party assurance3 (Thousand tCO2e) • Promoting energy-saving through replacing aging equipment with high-efficiency equipment and visualization of power usage → 25.6% reduction progress in FY2024(-2.6% from FY2023) against the Bank’s domestic energy consumption target (30% reduction by FY2030 from FY2019) • 100% renewable energy for own contracted electricity of all domestic consolidated subsidiaries by the Bank in FY2021, and by all consolidated subsidiaries in FY2022, and partially shifting other contracted electricity (tenant locations) as well • Continued thorough energy-saving measures • Shifting other contracted electricity (tenant locations) to renewable energy (Purchasing non- fossil fuel certificates and utilizing virtual PPA⁴) • Carbon-neutralizing company vehicles • Proactive utilization of advanced technologies and services through partnerships with clients • Considering utilizing carbon credits • Started a demonstration experiment aimed at resource circulation of building-integrated photovoltaics (BIPV)*5 under the memorandum of understanding with AGC Inc. • Through the demons