MUFG will use the program to invest deposits from corporate customers in environmental, social and governance (ESG) projects, such as renewable energy, energy efficiency, green transport, sustainable food, agriculture and forestry, waste management and greenhouse gas reduction, the release stated.
To help enact the framework for the program, MUFG partnered with Sustainalytics, which the release noted is an ESG firm for research, ratings and data. The partnership will allow MUFG to capture and account for green activities and ensure its partners are aligning with the cause.
“Our new Green Deposits offering aligns with our clients’ commitment to the environment by embracing social responsibility and sustainable investing,” said Head of Global and Americas Transaction Banking and Bay Area President Ranjana Clark in the release. “MUFG is focused on developing innovative products and services that support our clients’ objectives and that leverage our business strengths, such as Project Finance and Liquidity Management.”
“Liquidity vehicles such as this Green Deposit product meet many clients’ needs who want to ensure their surplus cash deposits are being used for the greater good,” said Managing Director, Liquidity Product Head, Transaction Banking Americas Olu Adebiyi, according to the release.
In separate news, Citi implemented its own green deposits program in November, and users will get the chance to put their short-term money toward projects that help the environment, PYMNTS reported. The money invested by customers will go toward various projects that meet Citi’s standards for reducing climate change.
Citi and MUFG are also both engaging in other features to help curb climate change.
MUFG is part of CDP, or the Carbon Disclosure Project, which brings together institutional investors to share their carbon emissions and strategies on climate change. The company has also invested tens of billions of dollars in various associated green projects.
Citi is working on its 2025 Sustainable Progress Strategy, which plans to spend $250 billion over the next five years to fight the effects of climate change.