MUFG Bank, the largest bank in Japan, announced today that it has signed the Operating Principles for Impact Management (OPIM), a framework for investors to ensure that impact considerations are purposefully integrated throughout the investment life cycle. With today’s announcement, MUFG becomes the first Japanese private financial institution signatory to OPIM.
OPIM was launched in 2019 by World Bank Group member the International Finance Corporation (IFC) and a group of leading impact investors, and has since grown to over 100 signatories, including asset managers, asset owners, Multilateral Development Banks and Development Finance Institutions.
Signatories to OPIM agree to follow 9 principles, intended to guide investors through the design and implementation of their impact management systems, and ensure that impact considerations are integrated throughout the investment lifecycle, from intent to investment exit and disclosure.
In its statement announcing its signing of the principles, MUFG stated:
“MUFG’s mission as a financial institution is to take a long-term perspective and build long-lasting relationships with our customers and society and to pursue our corporate vision of achieving sustainable growth together. Our aim has been to achieve sustainable business growth and enhance our corporate value by proactively addressing environmental and social issues through our core financial services. Preserving the environment, and especially responding to climate change, is one of the most important elements of MUFG’s role in society.”
*the 9 Operating Principles for Impact Management:
- PRINCIPLE 1: Define strategic impact objective(s), consistent with the investment strategy
- PRINCIPLE 2: Manage strategic impact on a portfolio basis
- PRINCIPLE 3: Establish the Manager’s contribution to the achievement of impact
- PRINCIPLE 4: Assess the expected impact of each investment, based on a systematic approach
- PRINCIPLE 5: Assess, address, monitor, and manage potential negative impacts of each investment
- PRINCIPLE 6: Monitor the progress of each investment in achieving impact against expectations and respond appropriately
- PRINCIPLE 7: Conduct exits considering the effect on sustained impact
- PRINCIPLE 8: Review, document, and improve decisions and processes based on the achievement of impact and lessons learned
- PRINCIPLE 9: Publicly disclose alignment with the Principles and provide regular independent verification of the alignment