Empowering Asia's
sustainability journey
As one of the world’s leading financial groups, MUFG is committed to partnering its clients and the community to achieve sustainable growth. As global and Asian markets continue to undergo rapid change and disruption, MUFG is well-positioned to scale up its support of Asia Pacific's (APAC) net zero transition.
Apart from the signficant inroads made in deepening APAC's sustainable finance market, MUFG has also stepped up climate engagement with clients and key stakeholders across the region, most notably through our MUFG Net Zero World (N0W) conference. Since 2023, this flagship thought leadership showcase has brought our valued partners and clients from across the region together to respond to the challenges and opportunities of APAC's sustainable development.
The bank was extremely honored to be recently named Best ESG Bank and Best Social Impact Advisor for Asia Pacific at the recent The Asset Triple A Sustainable Finance Awards 2025.
These awards represent the strongest validation by our peers and the industry of MUFG’s sustainability commitment and ESG financing track record in the region to date. It also held onto the Best Social Impact Advisor Asia Pacific award for two years in a row.
Apart from the signficant inroads made in deepening APAC's sustainable finance market, MUFG has also stepped up climate engagement with clients and key stakeholders across the region, most notably through our MUFG Net Zero World (N0W) conference. Since 2023, this flagship thought leadership showcase has brought our valued partners and clients from across the region together to respond to the challenges and opportunities of APAC's sustainable development.
The bank was extremely honored to be recently named Best ESG Bank and Best Social Impact Advisor for Asia Pacific at the recent The Asset Triple A Sustainable Finance Awards 2025.
These awards represent the strongest validation by our peers and the industry of MUFG’s sustainability commitment and ESG financing track record in the region to date. It also held onto the Best Social Impact Advisor Asia Pacific award for two years in a row.
Advancing Asia's Sustainability Journey
In a recent interview with The Asset, Colin Chen, MUFG's Head of ESG Finance for Asia Pacific (APAC), and Tomohiro Ishikawa, Chief Regulatory Engagement Officer, spoke about how sustainability in the region has evolved over the past year, with financing mechanisms such as blended finance gaining prominence. In light of the fast-changing developments in Asia's markets. they also shared their views on the upcoming challenges and opportunities as MUFG prepares to play a greater role in Asia's sustainability journey.
What were the structures in ESG finance that stood out during the past 12 months?
Traditional “use of proceeds” products, especially for green financing, continued to dominate while the “social” pillar stood out thematically last year. Following our collaboration with State Bank of India on their social loan in 2023, regarded then as the world’s second largest, we have since observed more transactions in affordable housing and consumer finance targeting lower-income segments in the region.
2024 was certainly a landmark year for transition finance, marked by milestones such as the Japanese government’s issuance of the world’s first sovereign climate transition bonds. Other innovative financing mechanisms such as blended finance gained prominence. New structures like sustainability-linked loan bonds, green enabling and supply-chain sustainability formats were also explored.
2024 was certainly a landmark year for transition finance, marked by milestones such as the Japanese government’s issuance of the world’s first sovereign climate transition bonds. Other innovative financing mechanisms such as blended finance gained prominence. New structures like sustainability-linked loan bonds, green enabling and supply-chain sustainability formats were also explored.
Left to right: Colin Chen, Head of ESG Finance for Asia Pacific; Tomohiro Ishikawa, Chief Regulatory Engagement Officer
How have these structures helped define/differentiate your approach to ESG?
Our role as a financial intermediary is to catalyze capital flows, both domestic and cross-border, towards our clients’ sustainability journeys. Bringing forth new and innovative solutions to market benefits our customers, facilitates the overall industry transition and contributes ultimately to MUFG’s net-zero targets – an alignment of interests on the demand and supply sides of the equation. This is why MUFG has spared no efforts to pioneer market-leading transactions. We are one of the most active banks in terms of advocacy, and our proactive engagement with the public and private sectors internally also extends to the promotion of blended and transition finance.
We are actively involved in industry working groups, including serving as co-lead of the blended finance workstream under the Singapore Sustainable Finance Association (SSFA), while initiatives like the MUFG N0W (Net Zero World) client events and industry white papers allow us to keep dialog and collaboration going.
How has the focus on ESG finance advanced and captured growth opportunities for the bank’s regional franchise?
APAC is a fast-evolving region with vast opportunities for growth, while ESG and sustainability continue to be strategic issues for corporates and governments. We have leveraged our global expertise and franchise, which includes our Asian network comprising some of Asean’s leading banks, in support of our clients. Our strategic partner banks have also benefited from our experience and structuring skills in their respective local markets.
What are the biggest challenges you face in promoting sustainable finance in the Asia-Pacific?
APAC’s transition timelines and pathways are different from those of Europe and the United States. The diverse growth trajectories and energy requirements of APAC’s markets call for a tailored approach to decarbonization for each location.
In this rapidly changing environment, continuous engagement with clients and policymakers is key to stay informed of latest market developments, financial regulations and industry policies. This in turn allows us to in better understand and support our clients’ transition plans.
In this rapidly changing environment, continuous engagement with clients and policymakers is key to stay informed of latest market developments, financial regulations and industry policies. This in turn allows us to in better understand and support our clients’ transition plans.
How do you see the role of ESG evolving in the coming decade and what steps are you taking to stay ahead?
ESG and sustainability will continue to be crucial imperatives for our corporate clients. As companies continue to operate in a socio-economic environment that requires them to delicately balance their growth objectives and decarbonization agenda, we will need to step up our engagement to bring the best of MUFG and its APAC network to our clients and regulatory partners.
We continue to see a strong global demand for sustainable investments into this region, with capital flows coming from markets such as the US, Europe and Japan. MUFG is uniquely positioned to redirect financial flows to advance APAC’s sustainability journey.
We continue to see a strong global demand for sustainable investments into this region, with capital flows coming from markets such as the US, Europe and Japan. MUFG is uniquely positioned to redirect financial flows to advance APAC’s sustainability journey.