MUFG Union Bank, N.A., Corporate Responsibility ... - MUFG Americas

Accelerating change MUFG IN THE AMERICAS 2015 CORPORATE SOCIAL RESPONSIBILITY REPORT

The Bank of Tokyo-Mitsubishi UFJ, Ltd. MUFG Union Bank, N.A. Members of MUFG, a global financial group

MUFG IN THE AMERICAS | 2015 CORPORATE SOCIAL RESPONSIBILITY REPORT

CONTENTS

ACRONYMS USED IN THIS REPORT

Welcome letters

3

2015 CSR highlights

5

MUFG in the Americas

6

For communities

15

For customers & partners

28

For our workforce

41

For the environment

55

Additional information

64

GRI Index

70

Habitat for Humanity build in Fresno. Front cover photo: Park cleanup event with Student Conservation Association in New York City.

WELCOME LETTERS

HIGHLIGHTS

MUFG IN THE AMERICAS

COMMUNITIES

AHEAD BTMU CAB CDF CDFI CRA CSAP CSRA CTA DBE EOM EPA ERG FCPA FDIC FHLB GHG GRI JPY LGBT LIHTC LMI MTA MUB MUFG MUTB NYSE OCC SCORE TDL WISH

CUSTOMERS & PARTNERS

Access to Housing and Economic Assistance for Development Bank of Tokyo-Mitsubishi UFJ CSR Advisory Board Community Development Finance Community Development Financial Institution Community Reinvestment Act Community Service Action Plan Corporate Social Responsibility for the Americas Credit Training for the Americas Diverse business enterprise Economic Opportunity Mortgage Environmental Protection Agency (U.S.) Enterprise resource group Foreign Corrupt Practices Act Federal Deposit Insurance Corporation (U.S. Federal Home Loan Bank (U.S.) Greenhouse gas Global Reporting Initiative Japanese Yen Lesbian, gay, bisexual, transgender Low-Income Housing Tax Credit Low- and moderate-income Metropolitan Transit Authority (New York City) MUFG Union Bank, N.A. Mitsubishi UFJ Financial Group Mitsubishi UFJ Trust and Banking New York Stock Exchange Office of the Comptroller of the Currency (U.S.) Senior Corps of Retired Executives Talent Development and Learning Workforce Initiative Subsidy for Homeownership

WORKFORCE

ENVIRONMENT

ADDITIONAL INFORMATION

GRI INDEX

2


From the Regional Executive for the Americas At MUFG, we believe social investments are a demonstration of our values in action — integrity, respect, service, collaboration, inclusion, and stewardship. This report highlights our Corporate Social Responsibility achievements in 2015, when we helped to bolster the progress of communities throughout the Americas and promote solutions to social, economic, and environmental challenges. This is our second CSR Annual Report for MUFG in the Americas, which includes our offices in Canada, the United States, and Latin America. In 2014, we integrated our U.S.based operations for The Bank of Tokyo-Mitsubishi UFJ, Ltd., with Union Bank, N.A., now named MUFG Union Bank, N.A. In 2015, MUFG in the Americas earmarked nearly $16 million in grants and contributions for five priority areas. Throughout the fiscal year, more than 3,000 of our employees — a quarter of our workforce — volunteered more than 61,000 hours for nonprofit groups and community ventures that we support throughout our regional footprint. We remain focused on supporting our communities and customers in creative ways.

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


Fueled by our strong commitment to the environment, we will continue to support sustainability, within both our business and the greater global community. As we pursue growth in our marketplaces, our primary purpose is to make the future more financially secure for local residents, businesses, and organizations that empower communities to thrive.

Kanetsugu Mike Senior Managing Executive Officer Group Head, Global Business Group Regional Executive for the Americas Mitsubishi UFJ Financial Group, Inc.

WORKFORCE

ENVIRONMENT


GRI INDEX

3


From the Head of Corporate Social Responsibility for the Americas Welcome to our 2015 Corporate Social Responsibility annual report, which shows the many ways our bank has been a catalyst for positive change in the communities where we live and work.

One of our greatest strengths is forming strategic collaborations that bring together organizations, institutions, and people to accelerate the potential for meaningful change. By serving as a facilitator as well as an innovator, we have engaged more deeply with our colleagues at other banks and formed non-traditional partnerships to help expand access to economic opportunities in our communities. In 2015, we expanded our partnership with two school districts in Southern California to open two more bank branches on high school campuses in order to provide inner-city students with hands-on financial education and work experience. These branches, which join three previously established high school branches, also serve parents, teachers, administrators, and

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


staff members, providing a trusted and innovative financial resource for entire communities. In New York City, we joined other banks and foundations to support the establishment of a new organization that will bring community-based affordable housing providers across the city together to achieve economies of scale as they develop and manage much-needed housing for low-income residents. MUFG in the Americas is partnering with organizations throughout our broad network to advance economic prospects. Working with like-minded groups across the Americas, we can maximize our shared resources and break down barriers to create meaningful and lasting change. We are determined to keep trying innovative approaches and partnerships to build prosperity in the communities we serve. Even as we reflect on the many accomplishments in 2015, we remain committed to strengthening our efforts on behalf of our colleagues, our customers, our communities, and our planet.

Julius Robinson Head of Corporate Social Responsibility for the Americas MUFG Union Bank, N.A.

WORKFORCE

ENVIRONMENT


GRI INDEX

4


2015 CSR HIGHLIGHTS

Nearly $16 million

61,000+

$1.1 billion+

$252.3 million

in philanthropic contributions, supporting nonprofit organizations in targeted sectors

volunteer hours to support over 1,800 community organizations

in loans to support small businesses and farms

in loans to support affordable housing

$1.6 million

$102 million

$7.6 billion+

$1.4 million+

in grants to Community Development Financial Institutions

in discretionary spending to Diverse Business Enterprises

in community-serving loans and initiatives under our community reinvestment commitment

personally donated by employees — matched by the bank for $2.5 million total1

Two new studentrun branches

Nearly $9.74 billion

Ranked #2

in sustainable financing

Global Clean Energy Lead Arranger

Best places to work

2016–2020

Top prize San Clemente Branch awarded top prize for reducing energy consumption by 35.2% in EPA’s Battle of the Buildings

2

opened in Anaheim and El Monte, California

199,767 compliance certifications obtained by employees for a greater than 99 percent completion rate

WELCOME LETTERS

HIGHLIGHTS

for LGBT Equality for the third year in a row3


COMMUNITIES

Embarked on new 2016-2020 Community Service Action Plan


Calendar 2015 Calendar 2015 — Bloomberg News Energy Finance 3 The Human Rights Campaign Foundation 1

2

WORKFORCE

ENVIRONMENT


GRI INDEX

5


MUFG in the Americas

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

6


Our business

Message from Steve Cummings President and CEO MUFG Union Bank, N.A.

Throughout our expansive corporate network in the United States, Latin America, and Canada, MUFG strives to be a model corporate citizen and supportive neighbor and to provide equitable access to opportunities in our local communities.

In 2015, our employees in the Americas served their communities with donated dollars, innovative products and services, responsible environmental practices, and volunteer hours. We look forward to maintaining that commitment to community betterment and service.

14,312

26

staff members across the Americas

wholesale locations in 9 countries

branches in the United States

$121 billion

$79 billion

$90 billion

total assets in the United States*

total loans in the United States*

1 million

7,000+

Regional Bank customers in the United States†

370

total deposits in the United States*

wholesale customers in the Americas

*MUFG Americas Holdings Corporation as of March 31, 2016. †The Regional Bank serves consumer and business customers of these MUFG Union Bank business units: Retail Banking, Residential Lending, Wealth Markets, Commercial Banking, and Real Estate Industries.

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

7


Our history in the Americas Mitsubishi Bank Ltd. and The Bank of Tokyo, Ltd., merge to form The Bank of Tokyo-Mitsubishi.

Bank of TokyoMitsubishi UFJ (BTMU) is created through the merger of The Bank of TokyoMitsubishi and UFJ Bank.

Mitsubishi UFJ Morgan Stanley Securities is formed through the integration of Mitsubishi UFJ Securities and Morgan Stanley Japan Securities. Union Bank acquires Tamalpais Bank and Frontier Bank.

Union Bank acquires certain assets of PB Capital Corporation and First Bank Association Bank Services.

New office opens in León, Mexico, about 200 miles north of the BTMU Mexico main office in Mexico City.

2016

The Bank of California is founded in San Francisco, CA.

First office in South America opens in Buenos Aires, Argentina.

As part of the merger, The Bank of California and Union Bank combine to create Union Bank of California.

1864

1918

1996

2006

2010

2013

1880

1954

2005

2008

2012

2014

Bank of Tokyo predecessor, the Yokohama Specie Bank, opens for business in Japan and New York.

Canadian office is established.

Creation of Mitsubishi UFJ Financial Group (MUFG) through the merger of Mitsubishi Tokyo Financial Group and UFJ Holdings.

Strategic alliance with Morgan Stanley is established.

Union Bank acquires Smartstreet and Pacific Capital Bancorp and its bank operating subsidiary Santa Barbara Bank & Trust.

U.S. business operations of Bank of TokyoMitsubishi UFJ (BTMU) are integrated with Union Bank, N.A., and renamed MUFG Union Bank, N.A.

WELCOME LETTERS

HIGHLIGHTS


Union Bank of California shortens its name to Union Bank and becomes a wholly owned subsidiary of BTMU.

COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

8


Voice of the client

CSR in action

MUFG takes time to understand and learn from the needs and experiences of our clients. In FY2015, we conducted comprehensive surveys of our Transaction Banking and Regional Bank commercial customers to better understand the strengths, weaknesses, and opportunities of MUFG Union Bank, N.A., to help customers succeed and by extension improve customer satisfaction. Globally, the bank conducted

its annual survey of Japanese corporate clients of The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), measuring multiple attributes in each of the key categories of relationship management, products and services, and value received. Responses were mapped to a matrix to determine the bank’s primary strengths and prioritize areas for management to focus on.

At MUFG Union Bank, N.A., we understand that our organization will only be as healthy and successful as the families, businesses, and neighborhoods we serve. In 2015, the bank completed its second Community Service Action Plan (CSAP), a 10-year plan aimed at providing loans, charitable contributions and initiatives

that benefit low- and moderate-income communities. The bank has long sought new ways to invest in the communities we serve and to grow our programs and investments already in place. The completion of the CSAP was transformative for the bank and helped to shape our latest CSAP.

Mulching in Tompkins Square Park in New York City.

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

9


Exceeding our own goals for community reinvestment At MUFG Union Bank, N.A., we met and exceeded our total community reinvestment target for the final year of our 10-year CSAP in calendar year 2015. We committed more than $7.6 billion in Community Reinvestment Act-related loans and activities, representing 7% of 2014 average MUFG Americas Holdings assets.

We invested 7% of average total assets in communities, exceeding both our 5.2% pledge and our aspirational target of 6.5%. Overall commitment

Dollars in millions

%

Special Program 1-4 Unit Mortgage Balances (pre-2015 Originations)

$1,914.1

25.1%

Small Business/Farms Reported in 2015

$1,165.0

15.3%

$786.4

10.3%

Special Program Single-Family Mortgage Lending in 2015

MUFG Union Bank, N.A., has a Community Reinvestment Act (CRA) performance rating of “Satisfactory” from the Office of the Comptroller of the Currency (OCC). The rating is a key indicator of the bank's effectiveness in serving LMI customers. The OCC reviews the bank’s lending, investments, and services approximately once every three years. To help earn an “Outstanding” performance rating during subsequent evaluations, we created a CRA Strategic Plan for our commercial markets that better aligns our business strategy with our CRA strategy. The OCC approved the Strategic Plan just before publication of this report.

$725.9

9.5%

Multi-Family Affordable Lending Balances (pre-2015 Originations)

$713.7

9.4%

Affordable Housing Loans Reported in 2015

$509.3

6.7%

Nonprofit Loans

$476.4 6.2%

Consumer Loans to LMI Borrowers

$240.7 3.2%

Syndicated Low-Income Housing Tax Credit (LIHTC) Investment Balances

$171.0

2.2%

Supplier Diversity Program – Diverse Business Enterprises (DBE)

$101.9

1.3%

Community Development Equity Investments

$62.1 0.8%

Philanthropic Investment

$14.8 0.2%

Total

WELCOME LETTERS

0.8%

0.2%

3.2%

Low-Income Housing Tax Credit Investment Balances $748.2 9.8% Small Business/Farm Balances (pre-2014 Originations)

1.3%

2.2%

6.2%

25.1%

6.7%

9.4% 15.3% 9.5% 9.8%

10.3%

$7,629.4 100.0%

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

10


2016-2020 Community Service Action Plan

Building on our two prior CSAPs, we engaged a wide range of the bank’s customers and partners in a meaningful dialogue about the best ways to put our values into action in the community. The result is our 2016-2020 Community Service Action Plan (CSAP), a roadmap for community reinvestment. The new multiyear plan outlines specific, measurable goals and commitments across 11 focus areas: 1. Economic Development 2. Small Business Lending 3. Multi-Family Affordable Housing Lending 4. Single-Family Affordable Housing Lending

Aligning our initiatives within these areas best positions us to drive systemic and collaborative solutions to our greatest challenges, particularly in low- and moderate-income (LMI) communities. What’s more, unlike the two prior CSAPs, our commitment period is now five years, rather than ten. This gives us greater flexibility to respond to evolving needs and priorities. It also makes our plan more nimble and capable of responding to changes in the world around us. In many ways, we view our CSAP as a conversation starter with local community leaders, civic leaders, nonprofit organizations, and other stakeholders whom we will depend on as partners, collaborators, and even critics to keep us on course. Working together, we seek to accelerate change in a way that is meaningful and enduring for our communities.

5. Branch Technology and Deposit Products 6. Philanthropy

Community Commitments

7. Environmental Stewardship

2016–2020

8. CSR Advisory Board 9. Supplier Diversity 10. Innovation 11. Workforce and Board Diversity Community Service Action Plan (CSAP)

MUFG Union Bank, N.A.

A member of MUFG, a global financial group

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

11


Our CSR team

The corporate social responsibility strategy of MUFG in the Americas is brought to life by a full-time, dedicated team who ensure that we achieve our CSR mission while also holding us accountable for our progress along the way. Led by Julius Robinson, Managing Director and Head of Corporate Social Responsibility for the Americas (CSRA), the team is responsible for developing a diverse set of programs and initiatives in the areas of philanthropy, volunteerism, and environmental stewardship, as well as efforts to promote diversity, inclusion, and equitable access to opportunity. In the United States, the CSRA team also manages our CRA and CSAP performance.

At the end of the 2015 fiscal year, the CSRA management team for MUFG in the Americas (as entity MUFG Union Bank, N.A.) included: Julius Robinson Managing Director Head of Corporate Social Responsibility for the Americas Randal Hernandez Managing Director Government Relations Fred Mendez Managing Director National Community Outreach & Environmental Stewardship Group Jan Woolsey Managing Director CRA Strategy and Operations Aida Alvarez Director CSR Consultant Paul Blagbrough Director Environmental Stewardship Richard Chacon Director Supplier Diversity and Development Kathy Patoff Director and Chief Operating Officer MUFG Union Bank Foundation Robert Williams Director CRA Lending and Investments In addition, the team collaborates closely with Tokyo-based MUFG CSR leaders and with counterparts in the company’s other global regions.

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

12


CSR Advisory Board

We are continually engaging with our customers, employees, and other partners to ensure that they are informed of our work to respond to their priorities.

Gabe del Rio, Chair President & CEO Springboard CDFI

A key resource in these stakeholder engagement efforts is the CSR Advisory Board (CAB) of MUFG Union Bank, N.A., which comprises 11 prominent individuals who reflect the diversity of our marketplaces. CAB members provide invaluable insight into the needs and priorities of our communities and help guide the bank’s Community Reinvestment Act commitment in the areas of affordable housing, consumer loans and services, charitable giving, environmental stewardship, and other community development efforts.

Marsha Bailey President & CEO Women’s Economic Ventures

CAB members serve three-year terms. At the end of our reporting period, the members of our CSR Community Advisory Board were:

Joe Coto Assemblyman Emeritus California State Legislature Viola Gonzales CEO AnewAmerica Community Corporation Hyepin Im President/CEO Korean Churches for Community Development Pam Isom CEO & President ICE Safety Solutions Vivienne Lee Regional Director, Southern California Roberts Enterprise Development Fund

OUR VALUES

Integrity Operate with honesty, integrity, and the highest of ethical standards, without exception. Respect Foster a nurturing and supportive culture that recognizes and respects all employees as individuals. Service Provide individualized solutions and superior expertise.

WELCOME LETTERS

HIGHLIGHTS

Collaboration Leverage the power of teamwork. Inclusion Appreciate all the ways our colleagues and customers are both similar and different; everyone feels valued. Stewardship Leave the bank in a better position for future generations of colleagues and customers.


COMMUNITIES


Timothy Russell Program Director The Renaissance Entrepreneurship Center Tunua Thrash-Ntuk Executive Director, Los Angeles Program Local Initiatives Support Corporation Rob Wiener Executive Director California Coalition for Rural Housing Project Maiko Winkler-Chin Executive Director Seattle Chinatown International District Preservation & Development Authority

WORKFORCE

ENVIRONMENT


GRI INDEX

13


Engaging in a digital world

Social media offers an invaluable opportunity for our organization to generate meaningful connections with customers, partners, and employees by engaging them in a dialogue about the bank’s financial initiatives and community outreach efforts. In 2015, our social media program grew by 76% with the addition of 42,375 new followers. The spike was largely due to the bank’s debut on LinkedIn, which added more than 35,000 new followers and is already the bank’s top performing channel for social engagement. In aggregate, we monitored and evaluated approximately 4,525 conversation themes relevant to Union Bank.® Specifically, across Facebook, Twitter, Instagram, and Google+, 34% of conversations on news and blogs expressed positive sentiments, 11% negative, and 55% neutral about the bank. Positive sentiment was primarily driven by thanks and appreciation posts stemming from community partnerships as

well as bank-sponsored events, such as the 127th Rose Parade in Pasadena, California, where our float promoted our Heart Walks across our geographic footprint in association with The American Heart Association. Content featuring award-winning bank employees and programs inspired strong engagement in the form of clicks, likes, comments, and shares. Likewise, CSR-related posts highlighting holidays and special events, such as Martin Luther King Day, Women's History Month, and Small Business Week, consistently received high engagement. Our position on social media is to be useful, support our customers as quickly as possible with their needs, and highlight the ways in which the bank and its employees serve our local communities.

42,375

+76% 2015 social network follower growth

42,375

16,428

New followers

2014

2015

Union Bank Follower Network Annual Growth 2015 versus 2014

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

14


For communities NYC school cleanup volunteer event

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

15


Our investments

Message from Tim Wennes West Coast President MUFG Union Bank, N.A.

At Union Bank, we strive to be the premier and most trusted bank on the West Coast. For more than 150 years, we have served our customers and local communities with the integrity they expect and deserve from their financial institution. We have built a responsible business around five core tenets that guide our actions every day: Responsible Products and Practices, Responsible Lending, Responsible Financial

Driving positive change

Management, Responsible Employer, and Responsible Support of our Communities. Staying true to these principles has allowed us to establish strong, long-lasting relationships with all of our stakeholders — our customers, our communities, and our colleagues — and together, we are positioning our neighborhoods to thrive and succeed.

Across MUFG in the Americas, our philanthropy puts our company values into action. Our vision is of a sustainable and aspiring society with equitable access to opportunity.

0.2%

6.3%

In 2015, MUFG in the Americas’ total charitable contributions added up to nearly $16 million.

23%

13% 3% 7%

WELCOME LETTERS

HIGHLIGHTS

Community Economic Development

23%

Affordable Housing

13%

Education

22%

Financial Education

3%

Environment

5%

Human Services

5%


COMMUNITIES

Culture & Arts

7%

International Relations

3%

Health Services

13%

Emergency Services

0.2%

Employee Matching Gifts (bank portion)

6.3%


WORKFORCE

ENVIRONMENT

13%

5% 5% 3%

22%


GRI INDEX

16


DRIVING POSITIVE CHANGE (CONTINUED)

The vast majority of our giving was distributed through the MUFG Union Bank Foundation, a nonprofit public benefit corporation founded in 1953 to help the bank meet the needs of the communities where we operate. The foundation’s mission is to make philanthropic investments that expand access to economic opportunity in lowand moderate-income communities specifically in the areas of affordable housing, community economic development, education, human services, and the environment. We also encourage employees to personally support causes they care about by matching their donations. In 2015, MUFG Union Bank, N.A., combined its previous employee matching gift programs to form a single program — My Giving — which matches U.S. employee donations to nonprofits, dollar-for-dollar, up to $2,500 per year per employee.

In 2015, employees made more than $1.4 million in personal donations, which the bank matched at $1 million, bringing the grand total of employee giving to nearly $2.5 million.

Employee volunteers (from left) Yoana Lara, Dolores Burgess, and Olga Diaz plant roses at a new home being built by Habitat for Humanity in Santa Paula, CA.

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

17


Measuring our impact The foundation contracted with the University of San Diego Caster Family Center for Nonprofit and Philanthropic Research to more systematically identify and aggregate data on the community outcomes produced by our grantees as a result of our foundation grants. Below are the results of this first endeavor, which are based on information provided by 2015 grantees. OUTCOMES SUMMARY — WORK COMPLETED IN 2015 BY GRANTEES

COMMUNITY ECONOMIC DEVELOPMENT

AFFORDABLE HOUSING

EDUCATION

SMALL BUSINESS TECHNICAL ASSISTANCE

79 reporting organizations received $963,000




Career development and job placement • 15,945 individuals served or trained • 7,540 individuals placed in jobs

Permanent housing • 8,900 individuals/families served • 2,623 affordable housing units developed or renovated

Academic enrichment for K-12 • 22,865 students served

Technical assistance • 4,751 existing businesses served • 19,563 hours of technical assistance

Entrepreneurship and small business development • 4,200 entrepreneurs served • 1,500 small businesses launched or expanded • 314 microloans disbursed to small business and entrepreneurs

Emergency shelter • 6,000 individuals served • 5,725 bed-nights provided

Financial literacy and homeownership • 20,300 low-income individuals/families served • 672 new homeowners • 73,000 individuals received tax return services • 109 vehicles financed

WELCOME LETTERS

HIGHLIGHTS

College and career readiness • 4,569 students received services • 276 students received scholarships Adult education / enrichment • 8,106 adults received programs, classes, and/or workshops

Senior housing • 3,000 seniors served Transitional housing • 1,800 individuals/families served

At-risk youth • 6,689 youth served

Revenues and business development • 1,486 participating businesses had revenues of less than $1 million annually • 245 new businesses created

Property rehabilitation • 3,800 properties rehabilitated


COMMUNITIES


Employment • 1,512 new jobs created for low-income to moderate-income individuals • 739 low- to moderate-income individuals were hired • Prevented the loss of 3,659 at-risk jobs

Small business loans • Partnered with lenders to package 267 loans

WORKFORCE

ENVIRONMENT


GRI INDEX

18


MEASURING OUR IMPACT / OUTCOMES SUMMARY (CONTINUED)

HOMEOWNER COUNSELING

ENVIRONMENT

HUMAN SERVICES

12 reporting 31 reporting organizations organizations received $500,000 received $415,000


Education • 6,912 individuals served through workshops • 5,657 individuals received one-on-one counseling • 24,393 hours of instruction

Access to food/other basic needs • 670,575 individuals/families served • 29.5 million pounds of food distributed

Credit score • 2,583 participants increased their credit score • 2,140 individuals achieved credit scores of 620 or higher Savings/asset • 2,214 individuals increased savings • 2,796 individuals increased assets Financing • 1,782 new homes purchased • 1,563 participants received loan modifications • 1,693 at-risk individuals avoided foreclosure

WELCOME LETTERS

HIGHLIGHTS

Clean-up, rehabilitation, and nature conservancy • 47,254 pounds of trash removed from beaches, rivers, parks, and other public spaces • 6,585 native trees and shrubs planted • 46,135 square feet of harmful vegetation removed • 32,000 volunteers engaged • 1,000 ecological sites preserved Clean energy and green building • 1,050 solar electric systems installed for low-income families • Eliminated 80,000 tons of greenhouse gas emissions • $27 million worth of power generated

Youth enrichment programs • 267 children served Capacity building for nonprofit organizations • 12 organizations increased capacity • Enhanced fundraising efforts • Staff additions and training • Hosting community-wide initiatives

Green jobs development • 600 individuals trained • 37 individuals placed Environmental education and awareness • 13,400 individuals served


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

19


Measuring our outcomes

This study is a landmark on an ongoing journey to ask relevant questions of our grantees, sharpen our outcomes analysis and make it more timely, and ultimately, partner with our grantees to move beyond outputs and achieve better outcomes for low- and moderate-income communities.

We recognize that this is a work in progress. Uncovering outcomes is difficult but critical to understanding which programs work best. For example, by measuring not just how many residents attended a given program, but whether anything changed as a result, such as, moving from transitional to permanent housing, obtaining and retaining a job, increased savings and improved credit scores, improved grades, college access, business revenue growth or, in the case of an affordable housing developer, reducing greenhouse gas emissions, water use, utility bills, and asthma triggers of a multi-family building. Related to this project, we are also working with the Caster Center on a grantee satisfaction survey we sent to our foundation grant applicants. In addition to questions about our application process, we asked whether our outcomes and impact questions are the right ones to identify strong performance. The foundation intends to present the survey results in 2017.

BEHIND THE SCENES WITH CSRA The operations of our foundation would quickly grind to a halt without the efforts of our grants administrators, who support the CSR officers and work closely with our nonprofit partners, our internal grants committees, and the accounts payable team to process grant applications.

WELCOME LETTERS

HIGHLIGHTS

In 1987, Karen Murakami joined the Bank in San Francisco, and since 1996 when our grant application first went online, she has had a hand in processing donations totaling nearly $37 million to thousands of charities in Northern California. She is also known to staff throughout the region for personally leading


COMMUNITIES

the collection of hygiene items for local homeless youth every year, collecting boxes full of shampoos, soaps, and other items in 2015. Karen’s quiet presence belies the high level of passion, competence, and dedication she has brought to her job for almost 30 years.


WORKFORCE

ENVIRONMENT


GRI INDEX

20


Embracing volunteerism

Throughout the Americas, our employees generously give their time and talents to better their communities. They collect toys for children’s hospitals, package meals for families in need, and help disadvantaged youth learn job skills. They pick up hammers to build homes, teach financial education classes, and don baseball gloves to inspire young athletes. In fiscal year 2015, some 3,444 employees — which represents 26% of all employees — volunteered 61,424 hours for more than 1,810 nonprofits and charitable causes important to them.

Our commitment to giving back comes from across the entire organization. Bank officers in the United States donated 18,302 hours of volunteer board service in fiscal year 2015. Their pro bono service to 392 nonprofit organizations was valued at $2.9 million. Many of these hours come during the business day. Employees in the United States and Canada may take up to three paid days per year to volunteer on work time. Our Brazil offices provide one paid day off to each employee who participates in MUFG Gives Back Day, which occurs on a Saturday.

26% of all employees 254 employees served volunteered a total of 61,424 on nonprofit boards. hours serving 1,810 nonprofits Pro bono value: $2.9 million

KEY PARTNERSHIPS BY MUFG IN THE AMERICAS VOLUNTEERS

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

21


FEATURE

Brazil gives back

In November, more than 280 bank volunteers in São Paulo dedicated a Saturday to helping children who had been victims of domestic violence. The Gives Back Day event was held at Lar Agricola A Semente, where nearly 40 children, ages 2-18, live after having been removed from their families. On the day of the event, volunteers were split into teams, each with a dedicated task to accomplish, such as refurbishing the dorm

rooms, planting a vegetable garden, or revitalizing playground equipment. The day’s activities not only had a positive impact on the children of Lar, but also boosted employee morale. In an evaluation survey, 96.4% agreed that the Gives Back Day made them proud to belong to MUFG, and 100% said they wanted to participate in the annual event the following year.

The greatest rewards were the feeling of appreciation and love for each other, solidarity, and the happiness we could witness among the children from Lar Agricola A Semente. Gives Back 2015 participant

BEHIND THE SCENES WITH CSRA Patricia Molina manages corporate communications and CSR for our Brazil offices. Planning for Brazil Gives Back took place over the course of several months and involved securing 12 partners to donate materials and equipment. Another partner acted as a consultant: The bank asked our grantee SOS Children’s Villages, the world’s WELCOME LETTERS

HIGHLIGHTS

largest nonprofit dedicated to the care of orphaned, abandoned, and vulnerable children, to lend its management expertise to Lar Agricola A Semente. Team that organized Brazil Gives Back under Patricia’s leadership. (L-R) Fernanda Gonçalves, Luiza Sodré, Patrícia Molina, and Yoshiko Konisi.


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

22

SNAPSHOTS

Helping at-risk kids

Painting murals

Building community

Making toys

Raising money

Lima In Lima, employees spent a Saturday painting murals and teaching origami to children at Armonizar, a foundation that helps kids with harelips receive medical treatment.

Bogotá Colleagues in Bogotá volunteered at a mini-Olympics run by Tiempo de Juego, an organization that offers sports and cultural activities for about 1,500 kids in Altos de Cazuca, a neighborhood with the largest number of displaced people in Bogotá, Colombia. Almost 17,000 victims of armed conflict occupy this area to escape from violence, and use castoff materials to build homes.

Buenos Aires 30 employees in Buenos Aires were joined by their families to make sock puppets, puzzles, and painted wooden toys with nonprofit Fundación SI. The toys were delivered to children in need at a local community center.

Mexico Team members in Mexico collected toys and raised donations for young cancer patients at Children’s Hospital and Casa de la Amistad, an association that helps kids with cancer. The donations were used to purchase a device called Buzzy that provides drug-free pain relief for chemotherapy injections.

Providing food

Tutoring kids

Developing job skills

Hosting a toy drive

Seattle Employees and their families in the Seattle, Washington, office collected, sorted, and distributed food to more than 275 local food banks, shelters, and after-school programs through an event organized by the United Way of King County. Their efforts helped provide 16,665 meals for hungry children and families.

Washington, D.C. Staff participated in the Washington Nationals — the city’s Major League Baseball team — Youth Baseball Academy, which uses both tutoring and baseball to foster positive character development and academic achievement among youth from underserved communities.

New York and New Jersey Employees from the New York and New Jersey offices hosted speed interviewing events with Opportunities for a Better Tomorrow, a local workforce development organization for disadvantaged youth. Volunteers conducted mock interviews with youth trainees to help them learn how to present themselves at a job interview.

Canada The BTMU Canada CSR Committee set and met a goal to fully sponsor a child through the Make-A-Wish Foundation. An 11-year old girl suffering from a rare blood disorder wished for a trip to Universal Studios in Hollywood, CA. Through various events, including a dollar-per-vote to choose which executive would sing karaoke at the office, enough funds were raised.

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

23


FEATURE

Supporting financial education

Offering real-world lessons in financial education Improving financial education — at any age or income level — is important to individuals seeking to fulfill their aspirations. That’s why the bank set out in 2011 to open student-run branches inside public high schools primarily serving youth from LMI families. The branches are staffed by student bankers overseen by a seasoned retail branch manager. In 2015, we partnered with the Anaheim Union High School and El Monte High School Districts to open a high school branch in each district to give students a hands-on financial

education. With these two additions under the Union Bank brand, we have now opened five branches in California high schools serving students as well as parents, teachers, administrators, and staff. The program has proved to be an innovative way to offer students a real-world financial education as well as work experience — not to mention a chance to build their resumes and earn money. Student bankers also conduct financial education presentations and workshops for their peers, extending the learning experience to more students.

This experience is helping them to become young adults who know how to work together, interact with customers, and adapt to realworld situations. Larry Cecil, Principal, Mountain View High School, El Monte Union High School District

Student bankers at Mountain View High School’s student-run bank branch are joined by Branch Manager Anthony Barrios (far left) and Customer Service Manager Sergio Martinez (far right).

BEHIND THE SCENES WITH CSRA Jan Woolsey, who will retire in Spring 2017 after 24 years of service to the bank as the head of CRA strategy and operations, is the driving force behind our high school branch network. Jan strongly believes that giving young people a role on the front lines of an industry together with nurturing guidance from experienced managers is among the best kinds of education. Her vision also includes providing the parents

WELCOME LETTERS

HIGHLIGHTS

of the students, many of whom have low and moderate incomes, with information on how to make good financial decisions and useful banking products, thereby lifting entire communities. An unexpected benefit to the program is that in addition to preparing students for work and life after high school, we have hired a number of them after graduation as part-time employees while they attend college.


COMMUNITIES

Following the creation of a high school branch in Fresno, California, by a bank that later failed, the FDIC asked Jan if we would work with the students. From that small seed, Jan worked tirelessly with all levels of bank management, our regulators, and school leadership in a growing number of districts to build up and sustain the program, which is without precedent in the financial industry, and which is now her proud legacy for the bank and local residents.


WORKFORCE

ENVIRONMENT


GRI INDEX

24

SNAPSHOTS

Advancing financial education

Providing books Anaheim The bank provided nearly 900 copies of the children’s financial education book, Aron with One A: “Something For Savvy”, to second-graders in the Anaheim City School District in Orange County, California.

Financial education to at-risk students

Financial education to Boys & Girls Clubs

Brazil Employee volunteers in Brazil taught a workshop on financial education to high school students with nonprofit partner Junior Achievement.

San Francisco and Long Beach In San Francisco and Long Beach, California, employees taught a fiveweek financial education course, Operation HOPE’s Banking on Our Future, to students at Boys & Girls Clubs to empower youth with information about managing personal finance.

(Photo: Regional Executive and Managing Director Robbin Narike Preciado, back row left, delivers books to students.)

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

25


FEATURE

Serving the community with heart

MUFG Union Bank, N.A., and the American Heart Association celebrated the 30-year anniversary of their partnership with a first-ever float at the 127th Rose Parade in Pasadena, California, on New Year’s Day. Called Union of Hearts, the float was decorated with 15,000 flowers and featured survivors of heart disease, including San Francisco 49er and four-time Super Bowl champion Jesse Sapolu and 11-year-old Kaelyn Graham, who was born with a rare heart defect.

Bank employees and their families, friends, and customers have raised millions of dollars on behalf of the organization over the past three decades, with $7 million donated in the past eight years alone to help support AHA’s research and education efforts. Employees also come out in droves for the AHA’s Heart & Stroke Walks across the country, earning MUFG Union Bank, N.A., the title of Top National Heart Walk Team for several years in a row. Our company also showed heart in 2015 by serving as a presenting sponsor — and by colleagues wearing red — for the AHA annual “Go Red for Women” luncheons in San Francisco and Los Angeles.

Left to right: American Heart Association San Diego Division Executive Director Jennifer Sobotka, San Diego County Supervisor Ron Roberts, MUFG Union Bank, N.A., Vice President Rana Sampson, and American Heart Association San Diego Division Board Chair David S. Demian, along with American Heart Association’s mascot “Ticker,” kick off the National Walking Day celebration on April 1 at Horton Square.

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

26

SNAPSHOTS

Supporting our communities

Benefiting local charities San Diego Under the Union Bank brand, we again teamed up with the San Diego Chargers for its annual Game Changers program, which asks fans to empty their pockets of loose change and bills to benefit local charities. With $5,000 matches from both the MUFG Union

Bank Foundation and the San Diego Chargers, this year’s beneficiary, the nonprofit Casa de Amparo, received $15,000 to help fight child abuse and neglect. The donation will help more than 1,000 children and 700 families countywide.

Supporting military veterans

Building new homes

Donated school supplies

Preparing meal shipments

San Francisco The bank joined California leaders for the first in a series of discussions on supporting military veterans. The inaugural event was presented jointly by the bank and the California State Commanders Veterans Council.

San Diego More than 50 Residential Lending colleagues took their mission of making home ownership a reality a step further by helping build new homes with San Diego Habitat for Humanity. Volunteers worked on 11 new homes for the Elm Street Community, one of which will be occupied by a disabled military veteran, and the bank’s foundation contributed $15,000 to the effort.

Los Angeles Thanks to the bank’s Asian Corporate Banking (West) colleagues, 237 Los Angeles children were well equipped to start the new school year. The group collected and donated more than 150 pounds of school supplies to the St. Francis Center to be distributed to children in need.

New York Sixty colleagues from our New York office scooped, weighed dry ingredients, and filled bags to create more than 10,000 nutritiously complete meals that will be distributed across Swaziland, in Southern Africa, by partners of the nonprofit Stop Hunger Now.

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

27


For customers and partners

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

28


Support for affordable housing

Affordable housing plays a critical role in providing stability to families that are the fabric of great communities. The Community Development Finance (CDF) group of MUFG Union Bank, N.A., invests in housing developments throughout the United States that serve LMI populations as well as senior citizens and others with special needs. We have a proven strategy of doing business with clients engaged in high-quality transactions that achieve successful results.

In calendar year 2015, we originated 18 affordable housing investments totaling $212.4 million — bringing our Low Income Housing Tax Credit investments made to date to approximately $2.5 billion. We also originated 16 loans totaling $252.3 million to support affordable housing. Since CDF’s inception, we have originated approximately $6.4 billion in combined investments and loans.

Affordable housing is also a key focus of our charitable giving. In calendar year 2015, the bank and the MUFG Union Bank Foundation made 45 grants to support affordable housing development, totaling $790,750.

Eden Housing’s Monteverde Senior Apartments opened in April 2015. This new senior affordable housing complex provides 67 rental apartments for older adults in the center of Orinda, California. It features a community room, an exercise room, a library/computer learning center, and an extensive community garden. MUFG Union Bank, N.A., provided financing for this development.

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

29


FEATURE

Reimagining pre-WWII public housing

Dating back to 1941, Yesler Terrace is the oldest publicly subsidized housing community in Seattle, owned and operated by Seattle Housing Authority and adjacent to downtown. To meet modern-day needs, a massive development project began in 2013 to replace the original units in the 30-acre community with 5,000 apartments for mixed-income tenants along with retail services, parks, and other amenities.

The bank invested $22 million to build 111 affordable housing units, slated to be complete by the end of 2016.

In 2015, MUFG Union Bank, N.A., won a competitive bid to serve as an equity investor in the project.

This is the second deal the bank has closed with Yesler Terrace — we invested $11.5 million for 83 units in 2014, which have since completed construction and are fully occupied.

Los Angeles has the nation’s largest concentration of homeless veterans. The problem is fueled by a shortage of housing stock that has led housing costs to grow four times faster than incomes.

Angeles. The new construction development, which is scheduled for completion in spring 2017, consists of 49 apartments and will include a community garden and outdoor meditation area as well as on-site sobriety support, counseling, and job assistance provided by the nonprofit US VETS. In addition, the apartments will include sustainable features, and the developers are targeting LEED Platinum and Net Zero Energy certification.

FEATURE

Helping relieve veteran homelessness in Los Angeles

In 2015, local and federal officials made a commitment to end veteran homelessness. The bank joined the effort by providing financing for veteran housing projects, such as the Silver Star Apartments in the Hyde Park neighborhood of Los

Rendering — Silver Star Apartments, Los Angeles, CA

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

30


SNAPSHOTS

Going the extra mile

WELCOME LETTERS

HIGHLIGHTS

Refreshing Camp Bob Waldorf

Financial Supporter of the Year

Fostering literacy skills

Glendale Our Community Development Finance team took a truly hands-on approach to serving the community — painting murals and planting trees at Camp Bob Waldorf, a nonprofit camp in the Glendale Mountains that serves underprivileged kids. The day of service was led by Thomas Safran & Associates as part of the firm’s annual “Big Give” campaign. Aside from volunteer hours, the bank contributed $5,000 toward the effort.

Southern California MUFG Union Bank, N.A., was named “Financial Supporter of the Year” by the Southern California Association of Non-Profit Housing at its annual conference for going “beyond the call of duty” to support California’s nonprofit housing community.

Northern California The bank funded a pilot project called “Raising a Reader” at several family sites maintained by Eden Housing, a leading affordable housing developer in Northern California. The program helps low-income families build and sustain reading routines in their homes to foster the literacy skills needed for academic success.


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

31


Spurring homeownership

Owning a home is a big part of the American dream. We want to help more of our customers realize this dream by giving them the right tools and financial resources to make it possible. To that end, from 2013 to 2015 through its Advancing Communities Forward (formerly RFP) Program, the MUFG Union Bank Foundation made annual grants to 13 homeownership counseling nonprofits on the U.S. West coast that help families make informed housing choices. These grants helped serve 9,328 people through homeownership workshops and 6,913 people through one-on-one counseling in 2015. A survey of participants found that upon completion, 52% improved their credit scores and 43% increased their savings by an average of $2,802.

1,739 new homes will be purchased by participants and 976 participants at risk of foreclosure avoided losing their homes.

The bank also supports homeownership by helping LMI families get the financing they need. Borrowers in California, Oregon, and Washington with limited resources can apply for an Economic Opportunity Mortgage® (EOM). The EOM takes into account alternate credit histories, such as rent and utility payments, to help first-time buyers become homeowners with as little as 5% down, and it does not require private mortgage insurance, which can make monthly mortgage payments unmanageable. In calendar year 2015, we provided 345 EOM loans for a total of $94.1 million. Since 2008, MUFG Union Bank, N.A., has funded $340,000 in Access to Housing and Economic Assistance for Development (AHEAD) program grants to a total of 13 nonprofit organizations. The Federal Home Loan Bank (FHLB) of San Francisco fosters early-stage funding of economic development and affordable housing projects. Our participation in the AHEAD program represents 4.6% of the FHLB’s total available grants for its San Francisco district. We continue to offer Workforce Initiative Subsidy for Homeownership (WISH) down payment assistance through the FHLB. Lower-income households, individuals, and families ready to move from renting to owning can receive a 3-to-1 matching grant of up to $15,000. WISH grants can be applied to down payment and closing costs. In fiscal year 2015, MUFG Union Bank, N.A., facilitated 49 WISH grants totaling $715,653 for first-time homebuyers.

2013-2015 HOMEOWNERSHIP COUNSELING GRANTEES

35 YEARS

COMMUNITY HOUSING COUNCIL of Fresno Moving People Into Homes

Urban League San Diego County

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

32


FEATURE

Turning WISH into homeownership reality

Henry Zambrano is a U.S. Army veteran and newlywed living in Ventura County. He and his wife were determined to buy a house as an investment in their future, which they hoped would soon include a family, and took steps to build up their credit. Yet they soon found the home-buying process daunting, falling out of escrow and getting discouraged. Enter the Ventura County Community Development Corporation (VCCDC), a nonprofit community economic development group that helps guide low- to moderateincome, first-time buyers through the home-buying process.

VCCDC has a long history of working with the bank for down payment assistance through the WISH program, which converts qualifying families into homeowners. Thanks to VCCDC, Mr. Zambrano took classes on the homebuying process and received financial assistance through the WISH program. With that extra help, he was able to buy his first home, which in less than a year increased in value by $100,000. He credits VCCDC and the bank for making his dream of homeownership possible and supporting him through the overwhelming transactional process.

My wife and I are really grateful for the help that we got from VCCDC and Union Bank. Without them, it would have been almost impossible to get our first house. Now we’re earning equity. Henry Zambrano, first-time buyer and WISH grant recipient

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

33


Empowering small businesses

Small businesses are the engine for job growth in our economy. Supporting their growth and development is one of our most important roles as a responsible bank. In 2015, MUFG Union Bank, N.A., lent more than $1.1 billion to small businesses and farms. We also continued our efforts to provide mentoring and technical assistance to small businesses in our marketplaces. Through our Small Business

Technical Assistance program, which falls under the umbrella of our Advancing Communities Forward Program, we provided $750,000 in grants to 14 grantees across California and Washington. The impact of the program was striking, with partners leveraging resources to help create nearly 2,650 new jobs, including 647 for LMI individuals, as a result.

7,076

57,524

6,897

2,649

647

1,061

existing businesses received technical assistance

hours of small business technical assistance were provided

jobs were retained

jobs were created

LMI individuals were hired

new businesses were created

2013-2015 SMALL BUSINESS TECHNICAL ASSISTANCE GRANTEES

Valley Small Business Development Corporation

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

34


Microlending to create social change

We have a long history of supporting microfinance as a lender and through philanthropic investments to community-based organizations that participate in microlending as a means to alleviate poverty, expand access to opportunity for aspiring entrepreneurs, and spur economic growth. Our community partners across the Americas offer lending and advisory services to fledgling businesses ranging from a hair salon in Brooklyn, New York, that’s helping revitalize the neighborhood to a social enterprise in São Paulo, Brazil, that repurposes used uniforms to make corporate gifts. One partner, Accion San Diego, is working with two sisters who opened a shop in 2015 called Chicanista Boutique to sell handmade items that reflect their Mexican roots. A $5,000 loan from Accion helped the sisters purchase a small trailer to carry their handcrafted goods to pop-up shops, farmers’

markets, and festivals around San Diego. Plus, an eight-week course, Accion Academy, helped them develop a sustainable business plan. In 2015, the bank granted the proceeds of its 2014 Bank Enterprise Award of $355,000 from the U.S. Department of Treasury to ten community development financial institutions (CDFIs) across the United States, from Access to Capital for Entrepreneurs in Atlanta and the Women’s Venture Fund in New York to CDC Small Business in San Diego and CAMEO in San Francisco. The bank received this award through a national competitive process that recognizes banks for increases in CDFI-related activity year over year.

The foundation made grants totaling more than $1.6 million to CDFIs in 2015, including $354,500 to microlenders.

Left to right: Owners Elizabeth and Danielle display hand-crafted Chicanista Boutique products.

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

35


FEATURE

Making impactful investments

As one of its CRA investments, MUFG Union Bank, N.A., committed $10 million to HCAP Partners, (formerly Huntington Capital) a provider of growth capital to lower middle market companies throughout California and the Western United States. The firm has been recognized by the Calvert Foundation as an ImpactAssets 50 fund three years in a row. Part of the reason Calvert has recognized HCAP is for its Gainful Jobs Approach that works to facilitate a positive impact on underserved businesses, their employees, and their communities. In 2015, HCAP invested in Noribachi, a leading custom manufacturer of LED lights for high-output commercial and

industrial applications, based in an LMI area in Los Angeles. Noribachi’s modular light engines provide scalable solutions to convert any existing light to LED. Noribachi’s innovative LED technology is more efficient and cost-effective, providing savings of 60-70% in power consumption versus traditional light bulbs. HCAP’s investment supported Noribachi’s continued growth, driven by an increase in sales of custom LED products and the introduction of new product lines. Within the year, Noribachi more than doubled its workforce from 60 to 140 employees, while also investing in leading workplace practices including providing stock options to all employees.

Noribachi has been featured on Forbes’ list of America’s Most Promising Companies for two years in a row (2014, 2015) and was named to Inc. magazine’s 2016 annual list of Fastest-Growing Private Companies in America for the third consecutive year (Top 10 in Manufacturing).

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

36


FEATURE

An eco-friendly approach

Magic Laundry Services processes 70 million pounds of hospitality linens annually for some of the biggest names in the hotel industry. The company, based in Montebello, California, takes an eco-friendly approach to cleaning, using “green,” nontoxic detergents and a recycled water system that uses up to 70% less water than traditional washing machines. The company has more than 500 employees and a strong commitment to giving back, with 10% of revenues earmarked for local charities.

For more than 20 years, Magic Laundry has had a strong relationship with the bank. Thus, in 2015, when the company needed a $4-million plant upgrade to meet overwhelming demand, it turned to the bank’s small business lending team for help with equipment financing. Thanks to the plant expansion, Magic Laundry was able to hire additional staff and dramatically increase its output.

I think 20 years can speak for itself. Harry Kertenian, CFO, Magic Laundry Services Inc., and longtime customer

Eco-friendly Magic Laundry Services operations in Montebello, California. Company to break ground on a third plant.

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

37


SNAPSHOTS

Running a small business goes beyond profits

Going Green Seminar

Protection from cyber crime

Protection from payments fraud

Gardena Going green can help your bottom line. That was the theme of the “Save Green by Going Green” seminar hosted by the bank’s Gardena Branch, the first in a series of events aimed at helping small businesses and nonprofits learn about available low- and no-cost energy and water efficiency rebate programs. (Photo: Environmental Services Department Vice President Kim Luu leads seminar.)

California The bank teamed up with Norton by Symantec, as well as federal and local law enforcement agencies, to present a series of cybercrime briefings to small businesses and organizations that the bank works with across California. More than 70% of participants described the events, which shared best practices in defending against cyber-attacks, as “helpful” to “extremely helpful.”

United States With the proliferation of mobile devices, the payment ecosystem has dramatically expanded, emphasizing the importance of payment-related security. To help companies avoid becoming victims of payments fraud, MUFG Union Bank, N.A., sponsored the AFP Payments Security Guide for Association of Financial Professionals members.

For example, for the past three years CSR Officer Sylvia Castillo has spearheaded the bank’s sponsorship of Small Business Week in Los Angeles. Part of National Small Business Week, the events recognize the critical contributions of America’s entrepreneurs and small business owners. More than half of Americans either own or work for a small business, which create two out of every three new jobs each year. Putting this event together involved intensive collaboration with the Mayor’s office, the local district of the U.S. Small Business Administration, and the 26

small business development centers and their clients that were recognized at the kick-off reception at City Hall, including the Senior Core of Retired Executives (known as SCORE) and the University of Southern California Family Business Center. Sylvia also helped introduce the small businesses interested in expanding to our business banking group.

BEHIND THE SCENES WITH CSRA The role of our Corporate Social Responsibility Officers is multifaceted. From providing philanthropic support to strategic nonprofits in the community to deepening relationships with a range of local leaders to supporting employee volunteer efforts, CSR officers need to understand topics like affordable housing, what economic and workforce development initiatives are the most effective, environmental stewardship, the needs of multicultural communities, and how to spot business opportunities that benefit LMI communities. The key is developing strong relationships.

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES

Left to right: Director and CSR Officer Sylvia Castillo and Managing Director of Business Banking Todd Hollander


WORKFORCE

ENVIRONMENT


GRI INDEX

38


Strengthening diversity

The success of our bank is connected to the strength of the communities we serve. Businesses that bring together employees from different backgrounds, skills, and experiences are better poised to foster innovation and drive economic growth in an increasingly competitive economy. As part of our commitment to our multi-cultural communities, we support Diverse Business Enterprises (DBEs), including those owned and operated by women, people of color, and military veterans, including those who are service disabled.

In calendar year 2015, under the leadership of our Supplier Diversity Office, MUFG Union Bank, N.A., directed $102 million in discretionary spending to DBEs. Created in 1993, our Business Diversity Lending program is a flexible lending program designed to meet the credit needs of DBEs. In calendar year 2015, MUFG Union Bank, N.A., provided 638 loans for a total commitment of $91.7 million. The average loan size totaled $143,761, and there was an increase in commercial real estate loans.

MUFG Union Bank, N.A., directed $102 million in discretionary spending to Diverse Business Enterprises

SNAPSHOTS

Helping small businesses

Low-cost banking

Southern California The bank hosted a series of specialized events for small businesses of diverse ownership in Anaheim, Bakersfield, and Stockton, California. During the “matchmaking events,” the 265 participating businesses were paired in one-on-one meetings with buyers from federal, state, and local government agencies as well as more than a dozen Fortune 500 companies.

United States To meet the needs of LMI residents in our communities, the bank continues to offer the low-cost Union Bank Access Account. Designed for customers who may have never had a bank account before, or have had difficulty managing one, the Union Bank Access Account provides convenient bank services with a clear fee structure, minimizing the risk of overdraft fees. As of March 2016, there were 5,935 active Union Bank Access Accounts.

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

39


FEATURE

Investing in infrastructure to strengthen communities

WELCOME LETTERS

HIGHLIGHTS

The bank closed a $250-million credit facility with New York City’s Metropolitan Transportation Authority (MTA) to support its variable-rate Transportation Revenue Bonds to fund commuter capital projects. The MTA operates the City’s subways, buses, and rail systems, moving 8.7 million customers a day — allowing the region to avoid nearly 17 million metric tons of greenhouse gas emissions every year.


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

40


For our workforce

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

41


Committed team, inspiring workforce

Instilling a culture of integrity

Message from Annemieke van der Werff Chief Human Resources Officer for the Americas Collaboration is one of MUFG’s values, which we demonstrate through teamwork across the Americas. Working together enables us to partner with our customers and communities to

meet shared objectives and create shared experiences that build a better future and shape mutual success.

13,405 employees in the Americas

14,312 including temporary employees and non-employee contingent workers

A strong corporate culture starts with senior leadership modeling our MUFG core values. That is the thinking behind a scenario-based, experiential-learning course designed around our new Code of Conduct that has been given to more than 450 leaders throughout the United States.

collaboration, inclusion, and stewardship. As a result, participants have said that they will listen more to their colleagues, will be more consistent with their employees, and will model core values and principles in the work environment.

Real-life situations drive the training, which seeks to underscore the key values of integrity, respect, service,

To extend the program’s reach, leaders were charged with disseminating key messages throughout their organizations.

As a result of this course, I feel empowered to better manage communications with subordinates and superiors in a manner consistent with the bank’s values, particularly when dealing with sensitive issues. 2015 integrity training program participant

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

42


Pursuing excellence in compliance training

Fun. Engaging. Different. These are not words that typically come to mind when describing compliance training. But a brand-new approach for training workers about ethical conduct is being praised by participants — both for its style and for its effectiveness. The approach to this eLearning program was to develop real-life scenarios that would challenge participants to think

through the company’s core values and how to put them into practice. They are geared toward a variety of roles, such as Corporate, Commercial, Consumer, Small Business Banking, and Support. The goal is to ensure that our staff members have the tools and training to act ethically in all situations. Formerly called the Business Standards for Ethical Conduct certification, the program is now called the Code of Conduct for U.S.-Based Employees.

We built scenarios people can relate to when they are at work, which helps employees remain engaged throughout the certification, leading to behavioral change. Salicia Pultz, Vice President and Sr. eLearning Designer Class participants engaged in an exercise to rank management situations based on their negative impact on the business environment.

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

43


Choose the Right Path Campaign

What would YOU do if faced with a situation that had the potential to compromise the bank’s integrity? That was the question asked during a six-week Choose the Right Path Campaign designed to engage employees on our Values and Code of Conduct. The campaign leveraged the bank’s intranet to feature various hypothetical scenarios that an employee may face in the workplace, and asked them to select the most appropriate response and comment as to why they selected it. The correct response was then provided the following week. The initiative served as an educational and interactive way to bring concepts to life for employees in a very engaging way. In a collaboration among Human Resources, Compliance, and Corporate Communications, the campaign garnered more than 4,000 responses from employees. Each year our Americas compliance division prepares a training plan that includes courses for newly hired, existing, and targeted staff, with the frequency based on an analysis of the risk levels of each job function. Most of the courses are administered online. Following the 2015 plan, staff throughout the Americas (which includes the Executive Committee for the Americas) received mandatory training on our Principles

Communicating more effectively, one worker at a time

WELCOME LETTERS

HIGHLIGHTS

What if workers had a better understanding of their own communications tendencies and preferences, and also learned how to recognize the best ways to share thoughts and feedback with their colleagues? For more than 10 years, MUFG Union Bank, N.A., has been training its personnel in exactly these matters, and more than 2,200 active employees have since completed the course.


COMMUNITIES


WORKFORCE

of Ethics and Conduct (used outside the United States) and Code of Market Conduct as well as topics such as anti-money laundering and the Bank Secrecy Act, identity theft, Office of Foreign Assets Control and global sanctions, anti-bribery and corruption including the Foreign Corrupt Practices Act (FCPA), privacy and confidentiality, information security, and the importance of internal controls. More detailed training on the FCPA and other topics was provided to targeted audiences as appropriate. The board of directors of MUFG Americas Holdings Corporation receives compliance updates on a quarterly basis as appropriate. Board education topics during the year included anti-bribery and corruption and the Foreign Corrupt Practices Act, the Bank Secrecy Act and anti-money laundering, regulatory compliance, Enhanced Prudential Standards, and cyber security.

For the Americas, the completion rate for all mandatory compliance training was greater than 99 percent.

Called “Building Communication Effectiveness,” the course offers an individualized profile highlighting communication style preferences, potential blind spots, and ways to re-frame perceptions of others’ ways of communicating. The course feedback has been remarkable. One participant said it is “one of the most impactful courses I have attended.” Another remarked: “[this] class has had such a positive impact for me in my work and personal life”.

ENVIRONMENT


GRI INDEX

44


Investing in people

At MUFG Union Bank, N.A., we invest in our employees to keep them at the forefront of their field and to help them achieve their career aspirations.

INSTRUCTOR-LED TRAINING: CLASSROOM

WEBINARS AND RECORDED WEBINARS

WEB-BASED TRAINING: eLEARNING

COMPLIANCE CERTIFICATIONS

161

112

573

185

courses (up 16%)

courses (up 58%)

courses (up 16%)

certification topics (up 7%)

5,667

787

12,008

199,767

participant completions (up 3%)

participant completions (up 20%)

participant completions (down 17%)

employee completions (up 37%)

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

In 2015, the bank offered 1,022 virtual and in-class training opportunities and compliance certifications, with the most consumed courses falling in the areas of Compliance, Sales, and Products. The bank is also at the forefront of online learning — 78% of courses were consumed virtually.

ENVIRONMENT


GRI INDEX

45


Credit Training for the Americas (CTA)

MUFG Credit Training Programs are designed to build and sustain a unified credit culture that balances the business objectives of soundness, profitability, and growth. These programs provide four distinct paths for enhancing analytical and banking skills and implementing these skills on the job, depending on the skill level of the banker. MUFG Continuing Professional Development Curriculum consists of oﬀerings aimed at foundational, intermediate, and advanced skill levels addressing the evolving needs of bankers within our commercial, corporate, and wholesale areas and those seeking career transitions. Credit Learning Resources include a comprehensive library of eLearning courses, the quarterly CTA Newsletters, and other credit-related user guides and resources used in analyzing, approving, monitoring, and examining credit risk.

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

Credit Training by the numbers

In fiscal year 2015, CTA delivered more than 120 sessions (18,800 hours) of credit training to more than 900 participants. This training was delivered both in person at various locations throughout the Americas (New York, New Jersey, Chicago, Houston, San Francisco, Los Angeles, City of Commerce, Brea, Irvine, San Diego, Toronto, São Paulo) and through online training.

ENVIRONMENT


GRI INDEX

46


An inclusive and diverse institution

We believe strongly in letting our actions demonstrate our commitment to the fundamental principles of inclusion and diversity. We also believe that it is simply good business for our company to represent the people we serve. Management in the United States has set goals for each division of the bank to increase representation of diverse employees in middle and senior management roles. The

implementation plan includes not only ensuring that the slate of qualified candidates for each position is diverse but also that staff members conducting the job interviews are diverse. Beyond the composition of our workforce, we have undertaken many initiatives to encourage inclusion. These include dedicated councils to foster understanding among employees of all backgrounds within each business unit, as well as a host of philanthropic efforts in our communities.

AMERICAS WORKFORCE BY COUNTRY

BY RACE AND ETHNICITY (U.S.)

BY GENDER

BY AGE

United States 13,487

White

41.0%

Female 52.5%

< 30 13.8%

Brazil 307

Asian 29.0%

Male 47.5%

30–50 54.8%

Mexico 208

Hispanic 20.0%

Canada 151

Black 6.0%

Chile

Two or more races 1.5%

86

Argentina 48 Colombia 16 Peru 6

American Indian or Alaska Native

1.0%

Native Hawaiian or other Pacific Islander 0.8% Undisclosed 0.7%

> 50 31.4%

In the Americas, 23% of senior managers are women. 27% of senior managers in the U.S. are people of color. We have 7 employee networks with almost 3,000 members in 15 U.S. locations. Of the 317 U.S. employees who took paid parental bonding leave, 57% were men. We spent $102 million with diverse suppliers. The 14 members of the Executive Committee for the Americas are 36% Asian and 21% female.

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

47


Commitment to inclusion & diversity

We are proud to be honored by leading institutions that have recognized our commitments. The Human Rights Campaign Foundation honored us as one of the Best Places to Work for LGBT (lesbian, gay, bisexual, transgender) Equality for the third year in a row, and DiversityInc named us one of the Top 10 Regional Companies for Diversity, our fifth time winning this distinction.

INCLUSION & DIVERSITY PARTNERS

MUFG partners with a variety of organizations that support our commitment to inclusion and diversity. These include: APEX for Youth (Asian Professional Exchange) ASCEND — Pan Asian Leaders Asian Americans for Equality Asian American Professional Association Association of ERGs & Councils Bedford-Stuyvesant Restoration Corporation Brooklyn Workforce Innovations California Bankers Association — 2016 Women in Banking Forum

WELCOME LETTERS

HIGHLIGHTS

California Department of Rehabilitation

Mentor Factor — American Banker

Out and Equal Workplace Advocates

Chicago Urban League

Mercy Center

Elevate — Spectrum Knowledge

Millennium Momentum Foundation

Society for Human Resource Management

Financial Services Industry Exchange

Minkwon Center for Community Action

Financial Women's Association

National Black MBA Association

Financial Women of San Francisco

National Society of Hispanic MBAs

Global Organization for Leadership and Diversity

New York Asian Women’s Center

Operation HOPE

Northern Manhattan Improvement Corporation

Jewish Vocational Service

Opportunities for a Better Tomorrow


COMMUNITIES


WORKFORCE

ENVIRONMENT

Swords to Plowshares Urban Financial Services Coalition Women’s Housing and Economic Development Corporation Women's Venture Fund WorkSource California


GRI INDEX

48


Enterprise resource groups (ERGs)

ERG leadership summit In order to bring together diverse leaders from throughout the Americas, the first-ever ERG leadership summit convened in 2015. This summit featured 70 ERG chairs from a wide range of backgrounds and offered ideas, strategies, and support from senior leadership. The connections fostered during the summit are likely to shape both individual and group efforts in the future.

Our efforts to foster community among diverse employees are embodied in our Enterprise Resource Groups. Each employeeled ERG is tailored to a certain portion of our workforce — whether based on race, sexual orientation, generational cohort, or other distinct characteristics. The ERGs are open forums designed to allow employees to speak out on issues that matter to them, while also providing support for the bank’s inclusion and diversity efforts. It is our intention to introduce ERGs in Canada and Latin America.

Our business and clients must be represented by those serving them. That’s just good business. Steve Cummings, President and CEO, MUFG Union Bank, N.A.

SERVE

Veterans’ Enterprise Resource Group

WELCOME LETTERS

HIGHLIGHTS

Left to right: Branch Managers Jessica Wdowiak and Lydia Ramirez present at the bank’s first Enterprise Resource Group (ERG) Leadership Summit.


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

49


SNAPSHOTS

Global connectivity, local heroes

Celebrating Lunar New Year

Local Heroes

One Young World Summit

California For the Year of the Monkey, selected branches throughout California offered red envelopes and plush monkey dolls to customers during the month of February. This Lunar New Year tradition was coupled with traditional cherry-blossom Wishing Trees in some branches, as well as celebratory messages on ATMs and branch digital displays.

San Diego MUFG partnered with public television station KPBS to honor “Local Heroes” from a wide range of diverse communities. Since 1998, the program has recognized more than 200 honorees who make a difference by enriching the lives of others and improving their community, region, and the world.

Bangkok, Thailand The sixth annual One Young World Summit gathered 1,300 young leaders from 196 countries to discuss some of the world’s most pressing issues. Four employees from the Americas and three colleagues from Europe, the Middle East, and Africa traveled to Bangkok, Thailand, to participate in the summit, which is aimed at empowering young people to make positive change. This was the second time MUFG has sent delegates.

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT

The event offered MUFG employees the chance to hear global leaders — such as former secretary general of the United Nations Kofi Annan and CEOs from some of the world’s largest companies — speak about climate change, global business, education, and human rights. Energized by the experience, MUFG participants incorporated the same cross-border collaboration into their work at the bank.


GRI INDEX

50


Supporting cultural diversity through history months

Following up on an award-winning video campaign in the prior year, the bank once again produced a unique and inspiring collection of videos for Black History Month. Keeping the theme of “Connecting the Past to the Present,” each of the

Artist Desmond Blair, who was born without hands, makes art and inspires others with his efforts.

three videos focuses on a trailblazing innovator whose work draws on the efforts of historical figures. Each of these remarkable men draws on the inspiration of others. See their stories at unionbank.com/blackhistory.

Medical student Tony Hansberry II devised a new suturing technique as a ninth-grader and now aims to be a trauma surgeon.

In celebration of Hispanic Heritage Month, the bank partnered with KPBS to honor two outstanding Latinos as local heroes.

Entrepreneur Tristan Walker founded a health and beauty products company that caters to the African American community.

Additional honorees were recognized during Women’s History Month, Jewish American Heritage Month, Asian Pacific American Heritage Month, LGBT Pride Month, Disability Awareness Month, and American Indian Heritage Month.

Left to right: Hispanic Heritage Month honorees Karemi Alvarez, MPH, senior manager at the University of California, San Diego Center for Community Health and Enrique Morones, founder and president of Border Angels.

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

51


Investing in people

Health and wellness Corporate wellness programs are an important way we invest in the health, happiness, and productivity of our employees. Whether it is encouraging team members to participate in a

walking competition or inviting them to attend a mindfulness training, we aim to give employees the tools they need to live a healthier lifestyle at work, at home, and in life.

SNAPSHOTS

Supporting UNICEF

Walking for health

Buenos Aires

San Diego and Los Angeles On April 1, “National Walking Day,” the bank teamed up with the American Heart Association to sponsor mid-day walks that encouraged office workers to leave their desks and take a walk. Both events featured health screenings and abundant information about the benefits of regular activity.

10 employees took part in a 10-kilometer street race to support UNICEF, which helps provide support to high school students to complete their studies.

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

52


Mindfulness at MUFG

In late 2014, a small Mindfulness Group formed in New York. Now, more than 500 colleagues from throughout the Americas take part — and many more have learned about the practice, which is designed to raise self-awareness, self-regulation, and compassion. Scientific studies show that mindfulness can reduce burnout and raise both productivity and the quality of interactions with others. These traits are especially valuable in a dynamic and diverse work environment. After a one-day training in partnership with Google’s Search Inside Yourself Leadership Institute, more than 100 employees were asked whether they would recommend the program to a friend. Every single one of them said “yes.”

Career development takes a LEAP forward

WELCOME LETTERS

HIGHLIGHTS

Imagine if any colleague throughout the Americas could access learning and development tools 24/7/365. Thanks to a new cloud-based platform called LEAP (Learn, Evolve, Aspire, Perform), they can. Launched in August 2015, LEAP is designed to streamline and scale learning opportunities, featuring a user-friendly interface that is designed for simplicity.


COMMUNITIES


WORKFORCE

MINDFULNESS MEDITATION

May my loved ones be happy in mind and body. May my loved ones be free of suffering in mind and body. I rejoice in the success of those whom I love. May I feel these emotions for all human beings. Tsewang Namgyal, Vice President, Structured Finance Group, Investment Banking & Markets, is leading an informal team to introduce Mindfulness within the bank.

In addition to the online platform, LEAP offers a host of additional ways to support professional development. For example, LEAPIn Learning Communities are now being piloted that enable workers to connect in-person and build on the lessons they’ve learned. Many further innovations are planned for this new platform, which will support education and training opportunities throughout the company.

ENVIRONMENT


GRI INDEX

53


Educational assistance program Global rotation training program

For full-time employees who are looking to further their education, a little financial help can go a long way. The bank invested approximately $1.1 million in tuition reimbursements to help more than 368 Americas employees in 2015 attain university and advanced degrees. Participants in the

United States were eligible for up to $5,250 per year in reimbursement. Investing in professional development is a company hallmark, and has been shown to be a key factor in retaining employees.

For some of the best up-and-coming bank employees, spending a year overseas in a new work environment can provide valuable lessons, both on the job and in the world. It also offers a host of benefits to both the home and host

offices. The Global Rotation Training Program enables qualified associate or assistant vice president-level and below employees to gain experience at MUFG offices overseas, while underscoring the globally connected nature of the company’s work.

More than 215 employees have taken part over a six-year period, and participants have built a strong network.

GRTP 2015 in-bound participants with Steve Cummings, President and CEO (center right), in New York, October 2015.

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

54


For our environment

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

55


Environmental sustainability

We believe that caring for our environment is not only a civic responsibility, but also an essential part of a good business strategy. Going green begins in our own backyard, with sustainable internal programs that reduce the bank’s direct environmental impact by conserving energy and water, reducing paper, minimizing waste, and curtailing overall greenhouse gas emissions. It also means integrating environmental considerations into our business activities and offering products and services to help our clients do the same. In addition, our team members volunteered for projects that promote green efforts, and we invested $750,000 in nonprofit organizations that are working to improve the health of our planet and accelerate our transition to a greener economy. Meeting EPA requirements Among financial institutions, MUFG Union Bank, N.A., had the highest number of branches earning the U.S. Environmental Protection Agency (EPA)’s ENERGY STAR® Certification in 2015. Fifty-two Union Bank retail branches throughout California and Washington earned the ENERGY STAR Certification, which means they met the EPA’s strict energy efficiency standards and performed within the top 25 percent compared to similar buildings nationwide.

“Battle of the Buildings” contest The bank’s San Clemente branch took home the top prize in the EPA’s annual “Battle of the Buildings” contest, in which competitors track their building’s monthly energy consumption.

San Clemente reduced its energy usage by 35.2% for the win, while eight additional Union Bank branches were recognized for exceeding the EPA’s 20% energy savings goal compared to their prior year’s usage. Energy efficient machinery In an effort to bring greater energy efficiency to the workplace, the bank launched a Managed Print project between May 2013 and April 2015 at 77 offices across the United States, including those of Executive Committee members. The project involved replacing personal printers and copiers with shared multi-function machines capable of printing, copying, faxing, and scanning. The new models are more efficient and environmentally friendly, allow for substantial cost savings, and provide greater control and security over printed documents.

AFTER MANAGED PRINT PROJECT

12 users

75% reduction

54% reduction

26% reduction

per device versus 2½ to 1 before the project

in total devices

in toner cartridges purchased

in copy paper purchased

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

56


SNAPSHOTS

Contributing to a healthier planet

Adopt-a-Beach cleanup

Celebrating our oceans

Caring for wetlands and parks

River cleanup

Chicago In partnership with the Alliance for the Great Lakes, 20 Chicago employees cleared trash and other debris from the Lake Michigan shoreline. The event, part of the Alliance’s annual Adopt-a-Beach cleanup, also provides researchers with valuable data about sources of pollution.

Monterey Bay We joined the Monterey Bay Aquarium for a two-day celebration of the world’s oceans — the largest habitat for life on earth. More than 10,000 people visited the Aquarium on June 6-7 and learned about the treasures of the ocean, the global importance of clean water, and the role people play in maintaining a healthy ocean ecosystem. Beyond the weekend events, the bank sponsored a visit by 400 fourth graders from Soledad Unified School District schools to visit the aquarium for a two-and-a-half-hour educational tour.

New York, New Jersey, and California As part of the MUFG Global Volunteer Month, 40 employees from New York and New Jersey ventured to Randall’s Island, just east of Manhattan, to clear out almost 12 cubic yards of invasive reeds in the wetlands. Meanwhile, 20 colleagues from Northern California gathered at Buena Vista Park, the oldest park in San Francisco, which has fallen victim to erosion. Volunteers worked with park staff to place more than 50 bales of hay on the park’s steep slopes to hold down sand and slow the flow of water in preparation for the El Niño season.

Los Angeles Team members collected mounds of discarded plastic cups, fast food wrappers, and even broken furniture from the east bank of the Los Angeles River in Los Feliz as part of a trash cleanup project conducted in partnership with the Atwater Neighborhood Council.

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

57


FEATURE

GRID Alternatives

Many low-income families struggle to pay their energy bills. Yet, sunshine is abundant in Southern California, inspiring MUFG to partner with GRID Alternatives, which installs renewable solar power systems in underserved communities.

In 2015, the bank provided $40,000 in grants to GRID Alternatives in support of its work in California communities.

In June 2015, MUFG volunteers helped install 15 solar panels on the home of Ruth Monroe, an 89-year-old veteran of WWII and real-life “Rosie the Riveter,” in San Diego County. The 4.5-kilowatt solar panel system now provides 80% of her annual power needs, significantly reducing both her electric bill and greenhouse gas emissions. In addition, the MUFG Union Bank Foundation made a $15,000 grant to Homeboy Industries in Los Angeles to support its Solar Panel and Firefighter Training programs. Homeboy helps former gang members and previously incarcerated individuals receive job training and find work in the renewable energy field.

Bank volunteers install solar panels in San Diego.

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

58


Environmental financing

MUFG Union Bank, N.A., is a major investor, lender, and financial supporter of sustainable industries through our dedicated environmental lending group and other business lines. In 2015, our sustainable financing grew to nearly $9.74 billion — 12.5% above our 2014 total. #2 Global Clean Energy Lender MUFG was ranked the #2 Global Clean Energy Lead Arranger 2015 by Bloomberg New Energy Finance. The group

conducted 40 transactions for $2.639 billion to finance wind, solar, biofuel/biomass and waste, and geothermal projects. MUFG’s belief that renewable energy will increasingly fuel the world economy and help mitigate climate change is demonstrated by our leadership in the sector. Our global project finance portfolio is consistently ranked #1 in the world, and clean energy represents a substantial portion.

SUSTAINABLE FINANCING COMMITMENTS ($MM) Group

Community Development Finance Agriculture Environmental Services

2015

2014

2013

2012

2011

463.9

300.1

298.3

222.7

320.5

517.4

203.5

187.4

210.0

159.0

1,821.1

1,734.6

1,650.0

1,267.0

1,500.0

Specialized Markets

2,001.8

1,920.0

1,687.0

1,457.30

1,094.7

Structured Finance

4,933.6

4,484.0

4,505.0

3,793.0

2,994.0

Total

9,738.4

8,642.2

8,327.7

6,950.0

6,068.2

*Restatements in red

Sustainable banking

Based on World Bank standards, the Equator Principles are the leading global financial industry benchmark for determining, assessing, and managing environmental and social risk in major bank-financed projects. MUFG became a signatory of

the Equator Principles in 2005. Today, 84 financial institutions in 35 counties have voluntarily adopted the guidelines. In addition, the MUFG Head Office in Tokyo serves on the Equator Principles Steering Committee.

As a responsible corporate citizen, we adhere to the Equator Principles, which protect the bank’s credit position as well as reinforce our commitment to our communities and our planet. Paul Blagbrough, Director, Environmental Stewardship Department, MUFG Union Bank, N.A.

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

59


Equator Principles Report

PROJECT FINANCE 2015

PROJECT-RELATED CORPORATE LOANS 2015 Category

Total

1

24

2

27

By sector

A

B

C

Total

Mining Infrastructure Oil & gas Power Others (Petrochemical) (excluding Petrochemical)

1 -

7 3 13 1 1

2 2

8 3 13 3 3

By region

A

B

C

Total

Americas Europe, Middle East & Africa Asia Pacific

1 -

24 -

2 -

27 -

By country designation

A

B

C

Total

Designated country Non-designated country

1

24 -

2 -

26 1

Independent review

A

B

C

Total

Yes No

1 -

21 3

2

22 5

Category


Category

1

–

1

2

By sector

A

B

C

Total

Mining Infrastructure Oil & Gas Power Others (Petrochemical) (excluding Petrochemical)

1 1

-

1 1

2 2

By region

A

B

C

Total


1 -

-

1 -

2 -

By country designation

A

B

C

Total

Designated country Non-designated country

1

-

1 -

1 1

Independent review

A

B

C

Total

Yes No

1 -

-

1

1 1

Category A Projects with potential significant adverse environmental and social risks and/or impacts that are diverse, irreversible, or unprecedented.

HIGHLIGHTS

Total

1

Designated Countries are those countries deemed by the Equator Principles framework to have robust environmental and social governance, legislation systems, and institutional capacity designed to protect their people and the natural environment.

WELCOME LETTERS

FINANCIAL ADVISORY 2015

COMMUNITIES

By sector

Mining Infrastructure Oil & Gas Power Others (Petrochemical) (excluding Petrochemical)

1 -

By region


1 -

Category B Projects with potential limited adverse environmental and social risks and/or impacts that are few in number, generally site-specific, largely reversible, and readily addressed through mitigation measures. Category C Projects with minimal or no adverse environmental and social risks and/or impacts.


WORKFORCE

ENVIRONMENT


GRI INDEX

60


Sustainability program snapshot

We commit to reducing our greenhouse gas emissions by 14 percent over five years.

EMISSIONS (Tons) GHG emissions

Emissions source

Scope 1 Scope 2 Scope 2 Scope 3 Scope 3 Grand Total

Diesel, Gasoline, Natural Gas, and Propane Electricity REC Purchases Facilities without Control (Electricity and Natural Gas) Business Travel

FY15 emissions

Emissions source

Scope 1 Scope 2 Scope 3 Grand Total

Diesel, Gasoline, Natural Gas, and Propane Electricity and REC Purchases Uncontrolled Facilities and Business Travel

FY15

FY13 baseline

Current FY v. baseline

4,571 29,492 0 13,464 11,554 59,081

4,416 31,691 -27 11,004 13,444 60,528

3.51% -6.94% -100.00% 22.36% -14.06% -2.39%

Market-based

Location-based

4,571 29,492 25,018 59,081

4,571 29,567 25,018 59,156

FY15

FY13


8,650 410 8,014 226 309,082 156,556 473,652

8,781 933 7,610 239 336,316 129,856 474,953

-1.49% -56.03% 5.31% -5.56% -8.10% 20.56% -0.27%

ENERGY CONSUMPTION (Millions of British Thermal Units)

Direct Emissions (Diesel, Natural Gas, and Propane) Diesel Natural Gas Propane Indirect Emissions (Electricity used in owned or controlled facilities) Leased Space Utilities (Estimated Electricity and Natural Gas in non-controlled facilities) Total Consumption

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

61


Sustainability program snapshot BUSINESS TRAVEL (Miles)

Short-Haul Air Medium-Haul Air Long-Haul Air Rail Grand Total

FY15

FY13


770,265 24,161,238 33,080,306 88,253 58,100,062

825,865 25,653,686 34,030,277 120,135 60,629,963

-6.73% -5.82% -2.79% -26.54% -4.17%

FY15

FY13


112,675,526

94,246,014

19.55%

FY15

FY13


117,474 76,498 39.44%

247,855 10,787 4.17%

-52.60% 609.16%

FY15

FY13


5,691,179 2,110,907 72.94%

9,222,488 2,609,964 77.94%

-38.29% -19.12% -34.06%

WATER (Gallons)

Consumption PURCHASED PAPER (Reams)

Paper Recycled Paper Purchased Paper (Recycled) WASTE (Pounds)

Recycle Waste Diversion Rate

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

62


Total GHG emissions / Metric tons CO2E Scope 1

4,571

Diesel, Gasoline, Natural Gas, and Propane

4,416

REC Purchases Scope 2

29,492

Electricity

31,691 13,464

Facilities without Control (Electricity and Natural Gas)

11,004

Scope 3

11,554

Business Travel

13,444 Sum of FY15

Sum of FY13

GHG emissions inventory

INTERNATIONAL VOLUNTARY STANDARDS

Through MUFG global operations • Equator Principles* • United Nations Environment Programme Finance Initiative†

8%

• United Nations Global Compact

19%

• Principles for Responsible Investment

Electricity 29,492 50%

23%

Facilities without Control (Electricity and Natural Gas)

13,464

Business Travel

11,554

Diesel, Gasoline, Natural Gas and Propane

• Carbon Disclosure Project MUFG SUSTAINABLE STOCK INDICES MEMBERSHIPS

Through MUFG global operations • Dow Jones Sustainability Indices — Asia Pacific

4,571

• FTSE4Good Index Series • Morningstar Socially Responsible Investment Index * Joined by BTMU and its global operations in 2005. Joined by Union Bank in 2014. †Locally, BTMU serves on the UNEPFI’s North American Task Force.

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

63


Additional information Mitsubishi UFJ Financial Group, Inc. (MUFG, NYSE: MTU) Our services include commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing. With a workforce numbering about 140,000 globally, the group’s operating companies include Bank of TokyoMitsubishi UFJ (Japan’s leading bank and MUFG’s primary constituent), Mitsubishi UFJ Trust and Banking Corporation (Japan’s leading trust bank), and Mitsubishi UFJ Securities Holdings Co., Ltd., one of Japan’s largest securities firms. MUFG’s shares trade on the Tokyo, Nagoya, and New York stock exchanges. Our global reach extends to more than 40 countries, with operations in North America for more than 150 years and in Latin America for more than 90 years, serving corporate, institutional, and governmental clients. MUFG in the Americas is one of the company’s four global regions outside Japan, along with Asia & Oceania, East Asia, and EMEA (Europe, the Middle East, and Africa). Our wholesale business offers a full suite of financial products and services, including global corporate banking, commercial banking, investment banking, global markets, and transaction banking. MUFG Americas Holdings Corporation Headquartered in New York, MUFG Americas Holdings Corporation is a financial holding company and bank holding company with total assets of $120.9 billion at March 31, 2016. Its principal subsidiary, MUFG Union Bank, N.A., provides an array of financial services to individuals, small businesses, middle-market companies, and major corporations. As of March 31, 2016, MUFG Union Bank, N.A., operated 370 branches, comprised primarily of retail banking branches in the West Coast

1

states, along with commercial branches in Texas, Illinois, New York, and Georgia, as well as two international offices. MUFG Americas Holdings Corporation is a wholly owned subsidiary of The Bank of Tokyo-Mitsubishi UFJ, Ltd. which is a wholly-owned subsidiary of Mitsubishi UFJ Financial Group, Inc., one of the world’s leading financial groups. Visit www.unionbank.com for more information. MUFG Union Bank, N.A MUFG Union Bank, N.A., is a full-service bank with offices across the United States. We provide a wide spectrum of corporate, commercial, and retail banking and wealth management solutions to meet the needs of customers. We also offer an extensive portfolio of value-added solutions for customers, including investment banking, personal and corporate trust, global custody, transaction banking, capital markets, and other services. With assets of $120.0 billion as of March 31, 2016, MUFG Union Bank, N.A., has strong capital reserves, credit ratings, and capital ratios relative to peer banks. MUFG Union Bank, N.A., is a proud member of the Mitsubishi UFJ Financial Group (NYSE: MTU), one of the world’s largest financial organizations with total assets of approximately ¥298.3 trillion (JPY) or $2.6 trillion (USD)¹, as of March 31, 2016. The corporate headquarters (principal executive office) for MUFG Americas Holdings Corporation, which is the financial holding company, and MUFG Union Bank, N.A., is in New York City. The main banking office of MUFG Union Bank, N.A., is in San Francisco, California.

Exchange rate of 1 USD=¥112.68 (JPY) as of March 31, 2016

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

64


Other major affiliates

Not included in the scope of this report

MUFG Securities Americas Inc. MUFG’s international securities operations, MUFG Securities, offers a comprehensive product suite to clients around the world through five key business lines in the primary and secondary markets: capital markets, credit, rates, equities, and structured products. In the primary market in the Americas, the Capital Markets Group originates and underwrites debt and equity financing transactions through the business’s global platform. The Structured Products team provides primary asset-backed securities and collateralized loan obligation services. With market experience across the globe, the trading desks, sales teams, and research analysts support institutional clients with the distribution of primary products and trade execution. In the Americas, the business offers trading capabilities in credit, investment grade, and high yield; rates, U.S. treasuries, and derivatives; and equities, convertibles, and structured products.

Mitsubishi UFJ Trust & Banking Corporation, New York Branch The New York Branch of Mitsubishi UFJ Trust and Banking Corporation (MUTB) is one of the key operating branches for MUTB’s global operations. After the integration of the operations of its U.S. trust subsidiary, Mitsubishi UFJ Trust & Banking Corporation (U.S.A.), with the New York Branch in January 2016, its business largely consists of three components: i) Trust Asset Services, providing client custody services, securities lending and repo services to large institutional investors, corporations, and banks; ii) Corporate Finance, providing wholesale commercial banking services primarily to North American subsidiaries and affiliates of Japanese companies and institutions; and iii) Treasury Business, providing foreign exchange and interest rate products to clients, managing the Branch’s asset and liability funding and a strategic portfolio consisting primarily of US Treasury, GNMA securities, and US investment grade corporate bonds. The Branch has, as of March 31, 2016, $284 billion in customer assets under custody, $91 billion in customer assets under securities lending and repo services and has $23 billion in banking assets. MUTB New York Branch leverages these three lines of business to allow for a high degree of specialization and exceptional product development capabilities to provide a onestop service to MUTB’s customers.

Products and services CORPORATE AND INVESTMENT BANKING Global Relationship Management

Products

Industry Specialties

Commercial Finance (Asset-based Lending)

Project Finance

Commodity and Structured Trade Finance

Securitization

Export Credit Agency Finance

Stable Value Products

Corporate Advisory

Transaction Banking

Funds Finance

• Cash Management Services

Global Financial Solutions

• Trade Finance

Leasing & Asset Finance

• Liquidity Solutions

Sales & Trading

• Trust and Custody

• Commodity Finance

• Oil & Gas

• Entertainment Finance

• Public Finance

• Financial Institutions

• Power & Utilities

• General Industries

• Technology

• Healthcare • Media, Telecommunications, Sports

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT

Syndications


GRI INDEX

65


HIGHLIGHTS OF AWARDS & DISTINCTIONS RECEIVED IN 2015

Awarded to MUFG in the Americas 7th in Reputation of Top 10 Banks, Third Successive Year in Top 10 List American Banker magazine

Ranked #6 of Top 10 Regional Companies for Inclusive Practices DiversityInc

Corporate Engagement Award Japanese American Citizens League, Seattle Chapter

2014 Top National Heart Walk Team American Heart Association, Western States Affiliate

Best Bank in Downtown San Diego Downtown San Diego News

Ranked #3 in California Retail Banking Customer Satisfaction J.D. Power and Associates

Gold Achievement as a Fit Friendly Worksite American Heart Association, Western States Affiliate Sustainable Excellence in Corporate Partnership Award American Heart Association, Western States Affiliate Top Sponsor of Ventura County, CA, 2015 Heart Walk American Heart Association, Western States Affiliate 2014 Business of the Year Boys & Girls Club of Simi Valley Corporate Advocate of the Year Award California Hispanic Chambers of Commerce Business of the Year Chamber of Commerce, Selma, CA Distinguished Business Partner Award Cypress College Foundation

WELCOME LETTERS

HIGHLIGHTS

Corporate Social Responsibility Leadership Award Financial Services Roundtable Company of the Week — Partnerships with San Diego County Nonprofits Financial Services Roundtable Company of the Week — MUFG NYC Mayoral Community Service Award Financial Services Roundtable Company of the Week — MUFG’s Global Volunteer Month Financial Services Roundtable Banking and Financial Institution of the Year Greater Los Angeles African American Chamber of Commerce 2015 Best Places to Work for LGBT Equality, Perfect Score Human Rights Campaign Local Hero Interfaith Shelter Network


COMMUNITIES

Multicultural Excellence Award & 2015 African American Grand Prize 17th Annual Multicultural Marketing and Diversity Conference 2015 Global Corporate Responsibility Award Sister Cities International

U.S. President’s Bronze Volunteer Service Award Junior Achievement USA

Financial Supporter of the Year Award Southern California Association of Non-Profit Housing

Distinguished Business Award National Black MBA Association, Los Angeles Chapter NYC Mayoral Service Recognition Award for Community Service for 2015 New York City, NY, Mayor’s Office

Award Allocations for WISH and IDEA Loan Programs The Federal Home Loan Bank

Distinguished Business Award Orange County Human Relations Commission

Community Service Award The Queen Anne Chamber of Commerce, Seattle, WA

Honorable Mention, 2015 CSR Awards PR News 2nd Healthiest Company in San Diego Region for 2015 San Diego Business Journal

52 MUFG Union Bank, N.A., Branches Earn EPA Energy Star Certification U.S. Department of Energy

Corporate Philanthropy Award, #19 of Top 75 Bay Area Corporate Philanthropists San Francisco Business Times


WORKFORCE

ENVIRONMENT

Ranked #2 in 2015 Top 10 Best Companies for Employee Resource Groups The Elevate Employee Resource Group

Employee Volunteer Program of the Year, Large Business VolunteerMatch


GRI INDEX

66


HIGHLIGHTS OF AWARDS & DISTINCTIONS RECEIVED IN 2015

Highlights of awards received by employees 25 Most Powerful Women in Banking Ranjana Clark, Managing Director and Head of Transaction Banking Americas, MUFG Union Bank, N.A. American Banker magazine The Top 25 Women to Watch Bita Ardalan, Managing Director, Head of Commercial Banking, MUFG Union Bank, N.A. Wendy Breuder, Managing Director, Co-General Manager of Chicago Office, Head of General Industries Midwest, U.S. Wholesale Banking, MUFG Union Bank, N.A. American Banker magazine Corporate Advocate of the Year Richard Chacon, Director, Supplier Diversity, MUFG Union Bank, N.A. Asian Business Association “Mrs. Clutch” Award Eleanor Murrell, formerly Branch Manager, La Costa Office, MUFG Union Bank, N.A. Boys & Girls Club of Carlsbad, CA

WELCOME LETTERS

HIGHLIGHTS

2015 Global 100 Most Influential Filipina Women, Builders Category Katerina Villanueva, Director, Community Outreach, Corporate Social Responsibility for the Americas, MUFG Union Bank, N.A. Filipina Women’s Network

Outstanding Community Volunteer Award Jose Carlos, Branch Manager, Norwalk Office, MUFG Union Bank, N.A. D’Adrianne Rystad, Branch Manager, Brea Office, MUFG Union Bank, N.A. One OC

Extraordinary Girl Scout Leader Sumiko Katayama, Treasury Relationship Manager, Commercial Treasury Services, MUFG Union Bank, N.A. Girl Scouts of Orange County

Top Woman in Business Award Susan Beat, Managing Director, Commercial Banking Treasury Services, MUFG Union Bank, N.A. Orange County Business Journal

2015 SHero Award Jessica Vielmas, Relationship Banker, Los Angeles Main Office, MUFG Union Bank, N.A. LA City Councilman, Curren D. Price, 9th Council District, Los Angeles

Honor Bestowed Masa Tanaka, former MUFG Deputy President, MUFG Union Bank, N.A. Orpheus Chamber Orchestra

Executive Advocate of the Year Award Richard Chacon, Director, Supplier Diversity, MUFG Union Bank, N.A. Latina Global Executive Leadership Program


COMMUNITIES

Diversity Leader Award Mike Sebring, Director, Inclusion & Diversity for the Americas, MUFG Union Bank, N.A. Profiles in Diversity Journal


2015 Most Influential Women in Bay Area Business Marianne Bamonte, Managing Director, Head of Global Trust Services Division, Transaction Banking, MUFG Union Bank, N.A. Ranjana Clark, Managing Director and Head of Transaction Banking Americas, MUFG Union Bank, N.A. Annemieke van der Werff, Chief Human Resources Officer for the Americas, MUFG Union Bank, N.A. Elaine Genevro, Regional President, MUFG Union Bank, N.A., named to Forever Influential Honor Roll San Francisco Business Times Spirit of Supplier Diversity Leadership Award Richard Chacon, Director, Supplier Diversity, MUFG Union Bank, N.A. Southern California Minority Supplier Development Council Sourcing Manager of the Year Lana Gosnell, Vice President, Supplier Diversity, MUFG Union Bank, N.A. Western Regional Minority Supplier Development Council

WORKFORCE

ENVIRONMENT


GRI INDEX

67


MUFG in the Americas: Selected memberships United States

Consumer Bankers Association

Japan Business Association of Houston

American Bankers Association

Corporate Volunteers of New York

Japan Business Association of Seattle

American Securitization Forum

Council of the Americas

New Majority of California

Asian American Bar Association of Orange County

Council on Foundations

Japan Business Association of Southern California

Disaster Recovery Institute International

Japan Society, New York

New York Society of Securities Analysts

Asian Business Association of San Diego

Financial Services Roundtable

Association of Certified Anti-Money Laundering Specialists

Financial Women’s Association

Japanese Chamber of Commerce of Chicago

Orange County Hispanic Chamber of Commerce

Japanese Chamber of Commerce & Industry of New York

Oregon Bankers Association

Latin Business Association

Regional Black Chamber of Commerce

Latina Lawyers Bar Association

Sacramento Hispanic Chamber of Commerce

Association of Trade and Forfaiting in the Americas BAFT−IFSA (Bankers Association for Finance & Trade and International Financial Services Association) Black Business Association Black Chamber of Commerce of Orange County Brazilian American Chamber of Commerce California Bankers Association California Black Chamber of Commerce California Chamber of Commerce California Hispanic Chamber of Commerce

Central City Association Chicano Federation of Los Angeles

New York Bankers Association

Philanthropy New York

Illinois Bankers Association

Lawyers Club of San Diego

Institute of Internal Auditors

League of California Cities

Institute of International Bankers

Los Angeles Chamber of Commerce

International Association of Credit Portfolio Managers

Los Angeles Latino Chamber of Commerce

International Council of Shopping Centers

Los Angeles County Business Federation

Securities Industry Financial Markets Association

MANA of San Diego

Stable Value Investment Association

International Energy Credit Association

Mexican American Bar Association

Texas Bankers Association

International Swaps & Derivatives Association

Mexican American Legal Defense and Educational Fund

The Clearing House Association

International Tax Institute

National Association of Affordable Housing Lenders

The Municipal Forum

Japan America Society of Dallas/Fort Worth

CalAsian Chamber of Commerce

HIGHLIGHTS

Hispanic Bar Association of Orange County

ISACA (Information Systems Audit and Control Association)

California International Relations Foundation

WELCOME LETTERS

Greater Los Angeles African American Chamber of Commerce

National Latina Business Women Association

Japan America Society of Greater Cincinnati


COMMUNITIES

National Association of Business Economists

Sacramento Black Chamber of Commerce San Francisco La Raza Bar Association

The Long Beach Area Chamber The Regional Black Chamber of New York Town Hall

National Federation of Municipal Analysts

Valley Industry & Commerce Association

National Hispanic Business Women Association

Washington Bankers Association


WORKFORCE

ENVIRONMENT


GRI INDEX

68


MUFG IN THE AMERICAS: SELECTED MEMBERSHIPS (CONTINUED)

Argentina

Canada

Colombia

Asociación de Bancos de la Argentina (Argentine)

Business Forum (Montreal) Canadian Bankers Association

Cámara Colombo Japonesa de Comercio e Industria

Cámara Japonesa de Comercio e Industria en la Argentina

Canadian Council for Private Partnership

Mokuyo-kai

Canadian Payments Association

Brazil Associação Brasileira das Entitades dos Mercados Financeiro e de Capitais Associação Brasileira de Bancos Internacionais Câmara do Comércio e Indústria Japonesa do Brasil Federação Brasileiras de Bancos

Clublink

Mexico

Financial Consumer Agency of Canada

Asociación de Bancos de México

Japanese Business Association of Vancouver

Asociación México Japonesa

Ombudsman for Banking Services and Investments

Cámara Japonesa de Comercio e Industria de México Club de Banqueros de México

Risk Management Association The Canada−Japan Society of British Columbia Vancouver Board of Trade Toronto Japanese Association of Commerce and Industry Treasury Management Association of Canada

Peru Cámara de Comercio e Industria Peruano Japonesa Sansui-kai Venezuela

Chile

Cámara Venezolano Japonesa de Comercio y Cultura

Asociación de Bancos e Instituciones Financieras de Chile

Nisui-kai

Camara Chileno Japonesa

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX

69


Global Reporting Initiative Index General standard disclosures Standard disclosure

Standard disclosure title

Location or response

STRATEGY AND ANALYSIS

G4-1

Statement from the most senior decision-maker of the organization

3

ORGANIZATIONAL PROFILE

G4-3

Name of the organization

64

G4-4

Primary brands, products, and services

65

G4-5

Location of the organization's headquarters

64

G4-6

Number of countries where the organization operates, and names of countries either where the organization has significant operations or that are specifically relevant to the sustainability topics covered in the report

unionbank.com, mufgamericas.com, mufg.jp/English

G4-7

Nature of ownership and legal form

64

G4-8

Markets served (including geographic breakdown, sectors served, and types of customers and beneficiaries)

7, 64

G4-9

Scale of the organization

7

G4-10

Total workforce by employment contract and gender

47

G4-11

Percentage of total employees covered by collective bargaining agreements

Not Disclosed

G4-12

Describe the organization’s supply chain

39

G4-13

Significant changes during the reporting period regarding the organization’s size, structure, ownership, or its supply chain

Back Cover

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX 70


GENERAL STANDARD DISCLOSURE (CONTINUED)

Standard disclosure



ORGANIZATIONAL PROFILE (Continued)

G4-14

Whether and how the precautionary approach or principle is addressed by the organization

MUFG does not currently employ the precautionary approach to environmental issues

G4-15

Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or that it endorses

63

G4-16

Memberships in associations (such as industry associations) and/or national/international advocacy organizations in which the organization:

68-69

• Has positions in governance bodies • Participates in projects or committees • Provides substantive funding beyond routine membership dues • Views memberships as strategic IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES

G4-17

All entities included in the organization’s consolidated financial statements or equivalent documents and whether any entity included in the organization’s consolidated financial statements or equivalent documents is not covered by the report

10-K (MUB), 20-F (MUFG)

G4-18

xplain the process for defining the report content and the Aspect Boundaries and how the organization E has implemented the Reporting Principles for Defining Report Content

Not Disclosed

G4-19

All the Material Aspects identified in the process for defining report content

Not Disclosed

G4-20

Aspect Boundary within the organization

Not Disclosed

G4-21

Aspect Boundary outside the organization

Not Disclosed

G4-22

The effect of any restatements of information provided in previous reports, and the reasons for such restatements

Effects of any restatements are noted as applicable

G4-23

Significant changes from previous reporting periods in the Scope and Aspect Boundaries

Back Cover

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX 71


GENERAL STANDARD DISCLOSURE (CONTINUED)

Standard disclosure



STAKEHOLDER ENGAGEMENT

G4-24

Stakeholder groups engaged by the organization

12-13

G4-25

The basis for identification and selection of stakeholders with whom to engage

12-13

G4-26

Organization’s approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group, and an indication of whether any of the engagement was undertaken specifically as part of the report preparation process

12-13

G4-27

Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. Report the stakeholder groups that raised each of the key topics and concerns.

12-13

G4-28

Reporting period

2015 Fiscal Year unless otherwise noted

G4-29

Most recent previous report

2014

G4-30

Reporting cycle

Annual

G4-31

Contact point for questions regarding the report or its contents

Back Cover

G4-32

Report the 'in accordance' option the organization has chosen; the GRI Content Index for the chosen option; the reference to the External Assurance Report, if the report has been externally assured

Back Cover, "Core"

G4-33

The organization's policy and current practice with regard to seeking external assurance of the report

Not Assured

The governance structure of the organization, including committees of the highest governance body. Identify any committees responsible for decision-making on economic, environmental and social impacts.

unionbank.com, mufgamericas.com, mufg.jp/English

REPORT PROFILE

GOVERNANCE

G4-34

ETHICS AND INTEGRITY

G4-56

WELCOME LETTERS

The organization’s values, principles, standards, and norms of behavior such as codes of conduct and codes of ethics

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT

42-44


GRI INDEX 72


Specific standard disclosure Standard disclosure



ECONOMIC Aspect: Economic performance

G4-EC1

The direct economic value generated and distributed (EVG&D) on an accruals basis including the basic components for the organization's global operations as listed below, if the data is presented on a cash basis

10-K (MUB), 20-F (MUFG)

EVG&D separately at country, regional, and market levels, where significant, and the criteria used for defining significance G4-EC4

Financial assistance received from government

MUFG does not receive any government assistance

Aspect: Indirect economic impacts

G4-EC7

Development and impact of infrastructure investments and services supported

10-11

Aspect: Procurement practices

G4-EC9

Proportion of spending on local suppliers at significant locations of operation

Not Disclosed

G4-EN1

Materials used by weight or volume

62

G4-EN2

Percentage of materials used that are recycled input materials

62

G4-EN3

Energy consumption within the organization

61

G4-EN4

Energy consumption outside of the organization

61

G4-EN5

Energy intensity

61

G4-EN6

Reduction of energy consumption

61

G4-EN7

Reductions in energy requirements of products and services

61

Total water withdrawal by source

62

ENVIRONMENTAL Aspect: Materials

Aspect: Energy

Aspect: Water

G4-EN8

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX 73


SPECIFIC STANDARD DISCLOSURE (CONTINUED)

Standard disclosure



ENVIRONMENTAL (Continued) Aspect: Emissions

G4-EN15

Direct GHG emissions (Scope 1)

61, 63

G4-EN16

Energy indirect GHG emissions (Scope 2)

61, 63

G4-EN17

Other indirect GHG emissions (Scope 3)

61, 63

G4-EN19

Reduction of GHG emissions

61, 63

Aspect: Effluents and waste

G4-EN23

Total weight of waste by type and disposal method

62

Aspect: Products and services

G4-EN27

Extent of impact mitigation of environmental impacts of products and services

56

SOCIAL LABOR PRACTICES AND DECENT WORK Aspect: Employment

G4-LA1

Total number and rates of new employee hires and employee turnover by age group, gender, and region

Not Disclosed

G4-LA2

Benefits provided to full-time employees that are not provided to temporary or part-time employees, by significant locations of operation Return to work and retention rates after parental leave, by gender

52-54

G4-LA3

47

Aspect: Training and education

G4-LA9

Average hours of training per year per employee by gender, and by employee category

45

G4-LA10

Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings

45

G4-LA11

Percentage of employees receiving regular performance and career development reviews, by gender and by employee category

47

Aspect: Diversity and equal opportunity

G4-LA12

WELCOME LETTERS

Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT

47


GRI INDEX 74



Standard disclosure



G4-HR1

Total number and percentage of significant investment agreements and contracts that include human rights clauses or that underwent human rights screening

United States Code of Conduct https://www.unionbank.com/Images/MUFG_ US_Code_of_Conduct_20161205.pdf Principles of Ethics and Conduct (global) http://www.mufg.jp/english/profile/ governance/ethics/

G4-HR2

Total hours of employee training on human rights policies or procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained

44

SOCIAL (Continued) HUMAN RIGHTS Aspect: Investment

SOCIETY Aspect: Local communities

G4-SO1

Percentage of operations with implemented local community engagement, impact assessments, and development programs

15-20

G4-SO2

Operations with significant actual and potential negative impacts on local communities

60

Aspect: Anti-corruption

G4-SO4

Communication and training on anti-corruption policies and procedures

44 United States Code of Conduct https://www.unionbank.com/Images/MUFG_ US_Code_of_Conduct_20161205.pdf Principles of Ethics and Conduct (global) http://www.mufg.jp/english/profile/ governance/ethics/

Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations

http://www.mufg.jp/english/pressrelease/

Aspect: Compliance

G4-SO8

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX 75



Standard disclosure



SOCIAL (Continued) PRODUCT RESPONSIBILITY Aspect: Product and service labeling

G4-PR5

Results of surveys measuring customer satisfaction

9

Aspect: Customer privacy

G4-PR8

Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data

In 2015, MUFG did not receive any fines or sanctions due to noncompliance

Sector specific disclosures

G4-FS13

Access points in low-populated or economically disadvantaged areas by type

Community Reinvestment Act Public File

G4-FS14

Initiatives to improve access to financial services for disadvantaged peoples

Community Reinvestment Act Public File

WELCOME LETTERS

HIGHLIGHTS


COMMUNITIES


WORKFORCE

ENVIRONMENT


GRI INDEX 76

About this report This report has been produced to provide an overview of the corporate social responsibility (CSR) activities and performance across our lines of business, in our facilities, and in the communities where we operate. The report covers the fiscal year from April 1, 2015, to March 31, 2016, unless otherwise noted. This is the second CSR report to cover the work of MUFG in the Americas, including The Bank of Tokyo-Mitsubishi UFJ, Ltd., and MUFG Union Bank, N.A. More information on the company is available in our global parent’s integrated report and online CSR reporting found at www.mufg.jp/english/csr, our 2016-2020 Community Service Action Plan, and on our websites (www.mufgamericas.com and www.unionbank.com) and in government filings, such as the Mitsubishi UFJ Financial Group, Inc. FY2015 20-F report and MUFG Americas Holdings Corporation’s 2015 10-K report. This report adheres to the framework of the Global Reporting Initiative (GRI), which promotes organizational transparency and accountability about environmental, social, and governance performance. Though not currently reviewed by an external party, this publication is in “core” accordance with the framework set forth by GRI version 4. A GRI content index is provided on page 70 of this document. MUFG did not conduct a formal stakeholder engagement process for this report, although the document does cover a wide range of topics that demonstrate engagement with our employees, customers, suppliers, and communities. Unless noted otherwise, all individuals named in the Report are employees and/or affiliates of MUFG Union Bank, N.A. Products described in this report that are offered to individuals and small businesses are not offered in Latin America and Canada. To learn more about sustainability at MUFG in the Americas or provide feedback on this report, contact Ryan Bjorkquist, Vice President, Environmental Stewardship Department, MUFG Union Bank, N.A., [email protected].

The Bank of Tokyo-Mitsubishi UFJ, Ltd., is not a member FDIC and its products ARE NOT insured by the FDIC or other government agency. MUFG Union Bank, N.A., is a member FDIC, and its banking products are insured up to applicable FDIC insurance limits. ©2017 Mitsubishi UFJ Financial Group, Inc. All rights reserved. The MUFG logo and name is a service mark of Mitsubishi UFJ Financial Group, Inc., and is used by MUFG Union Bank, N.A., The Bank of Tokyo-Mitsubishi UFJ, Ltd., and MUFG Union Bank Foundation with permission; Union Bank is a registered trademark and brand name of MUFG Union Bank, N.A., Member FDIC.

8913180 (03/17)

MUFG Union Bank, N.A., Corporate Responsibility ... - MUFG Americas

MUFG Union Bank, N.A., Corporate Responsibility ... - MUFG Americas

Suggest Documents

Financial Market Weekly - MUFG Americas

Financial Market Weekly - MUFG Americas

Financial Market Weekly - MUFG Americas

Financial Market Weekly - MUFG Americas

Financial Market Weekly - MUFG Americas

Financial Market Weekly - MUFG Americas

Financial Market Weekly - MUFG Americas

Financial Market Weekly - MUFG Americas

Financial Market Weekly - MUFG Americas

MUFG Report 2017 - RegInfo

2012 CoRpoRate SoCIal ReSponSIBIlIty RepoRt - Union Bank

2012 CoRpoRate SoCIal ReSponSIBIlIty RepoRt - Union Bank

MUFG enacts Cyber Security Management Declaration

Corporate Responsibility 2013 - Danske Bank

corporate responsibility 2012 - Danske Bank

Corporate Responsibility 2013 - Danske Bank

corporate responsibility 2012 - Danske Bank

corporate responsibility 2011 - Danske Bank

corporate responsibility 2012 - Danske Bank

corporate responsibility 2011 - Danske Bank

Corporate Responsibility 2013 - Danske Bank

Corporate social responsibility and bank customer ... - CiteSeerX

Corporate Responsibility Fact Book 2014 - Danske Bank

Corporate Responsibility Fact Book 2014 - Danske Bank