Our role in advancing a ˜ harmonious and mutually ˜ prosperous society of coexistence ·...

O u r r o l e i n a d v a n c i n g a �

h a r m o n i o u s a n d m u t u a l l y �

p r o s p e r o u s s o c i e t y o f c o e x i s t e n c e

Bank of Tokyo-Mitsubishi

CSR Report 2005

Pres ident

Top Message

We have taken a solid and important step

toward becoming a new, much larger

financial institution by adopting CSR practices

throughout our core banking operations

Here at the Bank of Tokyo-Mitsubishi, we understand the meaning of CSR (Corporate

Social Responsibility) to be how a business integrates the ideas of sustainable development*1 of

society and the environment into its management and business strategy. Through our core

business of financial products and services, we seek to bequeath a better, more sustainable

society and environment to the next generation. We recognize that the satisfaction and

trust of our various stakeholders*2 is the source of our corporate value, and have therefore

placed CSR at the core of our management strategy. Following our merger with UFJ Bank,

the principles of CSR will continue to be a main pillar of our management strategy.

As professional service providers, we endeavor to consistently fulfill our responsibility

to carry out accurate and dependable financial services. We are always trying to enhance

customer satisfaction; our goal is to create a truly customer-focused bank. We are also

working to create a sense of mutual prosperity and harmony in the local communities in

which our branch offices operate as key members. This same approach applies to the

global "neighborhood" as well. We aim to play an active role in contributing toward

mutual prosperity and harmony in every part of the world where we operate.

Our organization looks forward to having all of our various stakeholders, including

our customers, shareholders and employees, take the opportunity to offer opinions and

suggestions as to how we might fulfill our role even better in the future.

October 2005

*1 Sustainable DevelopmentThis term has become a fundamental principle, understood internationally as "development that meets the needs of the present without compromising the ability of future generations to meet their own needs." The term "sustainability" came into regular use after the agreement on the "transition from growth to sustainability for the sake of the continued existence of the human race" was reached at the 1992 UN Earth Summit. We believe that growth and sustainability are compatible in the long run.

*2 StakeholderWhile this is generally interpreted as meaning "interested party," it is also used to mean "parties who are affected in some way by a business or the activities of that business, as well as parties who exert an effect on the activities of that business."

Bank of Tokyo-Mitsubishi CSR Report 2005

1


2

Editorial policy:

This report was initially prepared as a supplementary

document for bank employees to understand the

Bank's efforts related to CSR (Corporate Social

Responsibility) with the aim of helping the general

public understand our efforts as well. We have

structured this Report as a series of Questions and

Answers regarding our CSR-related activities.

Coverage:

This report covers the activities of the The Bank of Tokyo-

Mitsubishi, Ltd. and includes reporting on some group

company activities as well. The contents are mainly

described at the policy level and examples mainly consist

of domestic Japanese branch banking activities unless

otherwise noted.

Period:

The period covered by this Report is fiscal 2004 (April

2004~March 2005). Some activities taking place

around the publication date and prior to FY2004 are

also included.

Reference guidelines:

In composing this report, we referred to the

internationally accepted Global Reporting Initiative

("GRI") Sustainability Reporting Guidelines 2002. The

"GRI Content Index" on page 27 lists details regarding

the items to which we referred.

Planned publication date for the next report:

The first edition of The Bank of Tokyo-Mitsubishi UFJ, Ltd.

CSR Report is scheduled for publication in fiscal 2006.

Bank of Tokyo-Mitsubishi, Ltd.

Established:

Headquarters:

Capital:

Branch network:

No. of employees:

Long-term ratings:

Total assets:

Loans:

Capital account:

Ordinary Profit:

Net profit Income:

Net Business Profits:

Capital Adequacy Ratio:

¥93.6329 trillion

¥38.7859 trillion

¥3.6440 trillion

¥447.5 billion

¥263.4 billion

¥660.7 billion

11.83%

About this report

Table of Contents

Top Message

CSR Management Efforts

Management Philosophy and CSR Management

Efforts to Improve Management Quality

CSR Promotion Structure

CSR Integrated to Management Strategy

Topics 2005

Our CSR: Ten Pillars

Corporate Governance

Risk Management and Compliance

Internal Controls

Information Security

Shareholder Perspective

Customer Perspective

Internal Communication Perspective

Employee Perspective

Local Community Perspective

Environmental Perspective

GRI Content Index

Stakeholder Dialogue

Editor's Postscript

1

3

3

4

5

6

8

10

11

12

13

14

15

16

18

20

22

24

27

28

29

Bank of Tokyo-Mitsubishi, Ltd. CSR Office2-7-1 Marunouchi, Chiyoda-kuTokyo 100-8388 JapanTe l: +81-3-3240-1111 (General)Fax: +81-3-3240-3350e-mail: [email protected]

For Inquiries:

(Consolidated. Figures under Japanese GAAP for the fiscal year ended March 31, 2005. Long term rating as of June 2005.)

August 25, 1919 (Founded 1880)

2-7-1 Marunouchi, Chiyoda-ku, Tokyo

¥996.9 billion

Domestic: 280 (Branches: 251; Sub-Branches: 28;

Representative Offices: 1) Overseas: 73 (Branches: 42;

Sub-Branches: 15; Local Representative Offices: 16)

17,516 (Bank non-consolidated basis)

A1 (Moody's), A (S&P), A- (FITCH), AA (JCR), A+ (R&I)


3

Management Philosophy and CSR Management

Each company in The Mitsubishi UFJ Financial Group, Inc. (MUFG) which was established on the

1st of October 2005, following the merger of MTFG and UFJ Holdings, aims to gain society's

trust and operate as a good corporate citizen, based on the management philosophy mentioned

above. Doing this requires practicing CSR (Corporate Social Responsibility) Management.

Banks perform an intermediary function in the economy by taking deposits from customers

and then using those funds to provide financing to individual and corporate customers. They

also provide settlement functions to ensure smooth deposits and withdrawals of funds, as well

as the various day-to-day financial activities of both individual and corporate customers. Banks

therefore play an essential role in our economic life, and the business thus has a public nature.

We believe that simply carrying out our main banking business in accordance with our

management philosophy constitutes CSR in and of itself. However, we also believe that we can

contribute even more to the prosperity of our customers and society as a whole by paying close

attention to the needs of our broad base of stakeholders, and expanding our coverage of

business activities. For example, by setting up commission-free disaster relief accounts*1 at the

bank, we have made it possible for non-governmental and non-profit organizations ("NGOs"),

to accept donations for disaster relief via our national ATM network and over the Internet. As

another example in the area of environmental action, we have been providing financing for

large-scale alternative energy projects for some time. Following these traditional activities, we

can increase our support to industry efforts towards preservation of the environment by creating

new environmentally-related financial products —for example, environmentally-related loan

packages with incentives for small and medium-size companies.

*1 Commission-free accountsFor example, when the devastating tsunami struck off the coast of Sumatra in late December 2004, the international relief organization Japan Platform (http://www.japanplatform.org) set up a disaster relief donation account at our bank. We understand that from the end of 2004 through the end of June 2005, donations totaling approximately ¥63 million were collected and available for immediate use in that account.

The MUFG Group's

Management

Philosophy

(1) We will respond promptly and accurately to the diverse needs of our customers around the world and seek to inspire their trust and confidence.

(2) We will offer innovative and high-quality financial services by actively pursuing the cultivation of new business areas and developing new technologies.

(3) We will comply strictly with all laws and regulations and conduct our business in a fair and transparent manner to gain the public's trust and confidence.

(4) We will seek to inspire the trust of our shareholders by enhancing corporate value through continuous business development and appropriate risk management, and by disclosing corporate information in a timely and appropriate manner.

(5) We will contribute to progress toward a sustainable society by assisting with development in the areas in which we operate and conducting our business activities with consideration for the environment.

(6) We will provide the opportunities and work environment necessary for all employees to enhance their expertise and make full use of their abilities.


Efforts to Improve Management Quality

Management by "Quality" Aimed at the Global Top 5*3

Global Top 5

Enhance shareholder and investor evaluation

Enhance customersatisfaction

Enhance reputation by society

Enhance employee motivation

Quality of Financial Soundness

Quality based on "customer-centric" CSR management

InformationManagement Quality

Quality of EnvironmentalConservation

Service Quality


CorporateEthics

CorporateGovernance

LegalCompliance

RiskManagement

We are "expanding our coverage of business activities" through innovative efforts known

internally as the "ISO*1 Movement". In December 2003, we established an ISO Promotion

Committee, which was chaired by our President, for the preparation of the ISO Movement.

In July 2004, we started our quality improvement efforts by building three new quality

themes on our already well-known financial quality—service quality, information security quality,

and environmental conservation quality—which was based on corporate ethics, corporate

governance, legal compliance, and risk management (see the chart below). These efforts were

aimed to improve the evaluations we receive from customers and society, and to lead to

improving our corporate value.

It is natural that a bank would want to improve the quality of its service, but in addition to

that we are making company-wide efforts to improve the quality of our information management

(a topic that is much in the news these days) and environmental conservation quality. We made

achieving ISO certification a company target, because the ISO standards provide an internationally

recognized yardstick to measure our success in improving quality.

As a benchmark for improving customer satisfaction, we aimed to receive certification for the

ISO 9001 standard for Service Quality. In the area of information management, our target is the

BS7799/ISMS*2 standards, which are in line with Japan's new legal regime. In the area of

environmental management, ISO 14001 certification will become objective proof of our efforts.

These efforts will continue to be the pillars of our CSR activities after the merger with UFJ Bank.

In April 2005, we acquired ISO 14001 certification, the international standard for

environmental management, for all business activities relating to the banking business in the

Bank's Marunouchi Head Office Building and the retail banking business in the Mitsubishi UFJ

Trust and Banking Main Office Building. In August 2005, we also acquired IS0 9001 certification,

the international product and service quality management standard, for our "Business processes

regarding the design, development of products and services and making proposals based on

customer requirements". We worked hard in fiscal 2004 to comply with the requirements of

the new Act on the Protection of Personal Information of Japan, and aim to acquire

BS7799/ISMS certification in fiscal 2005.


4

*1 ISO:Short for International Organization for Standardization.

*2 BS7799:International standard for security in information systems developed by the BSI British Standards Institute. ISMS is the Japanese domestic standard similar to the BS7799 standard.

*3 Global Top 5:MUFG has a goal of achieving top five market cap by fiscal 2008. See page 15 for more.



Corporate Planning Office

Corporate Center

Executive Committee

ISO Promotion Committee CS (Customer Satisfaction) Management Improvement Committee

ISO Steering Committee

CSR Office

Human Resources Office

General Affairs Office

Credit Policy Office

Information Security Management Office

Corporate Risk Management Office

Legal & Compliance Office

Audit & Credit Examination Office

CSR Promotion Secretariat {Internal Reform, ISO Movement, internal controls (CSA/SOX), Social Contribution & Participation, Environmental Management}

Employee perspective

Environmental perspective (office)

Environmental perspective (banking business)

Information security management and operations

Risk management and operations

Legal compliance

Auditing

Cust

omer

s /

Soci

ety

Busi

ness

sit

es (

Bran

ch o

ffic

es)


Business Units Customer Perspective

Retail Banking Business

Commercial Banking Business

Global Corporate Banking Business

Treasury

eBusiness & IT Initiatives

Systems Services

Investment Banking & Asset Management Business

UNBC Business

Operation Services

Initially, CSR activities related to the ISO Movement were managed by staff who formed a

small project office in the Corporate Planning Office (which serves as secretariat for

Management), as well as other staff in related departments who took on responsibility in

addition to their regular duties. Then, in December 2004, as the Movement became

established throughout the bank, the CSR Office was established inside the Corporate

Planning Office, which helped to strengthen the project office function as an organizational

fixture. CSR activities are handled jointly between the various head office functions of the

Corporate Center (which are independent offices not attached to the Business Units), as

well as the Business Units themselves.

The main body responsible for CSR management decision-making is the above

mentioned ISO Promotion Committee, which is chaired by the President and is mainly

composed of Executive Committee members. This body meets every three months. The ISO

Promotion Committee is run by the ISO Steering Committee (chaired by the Deputy President

and composed of the three Directors in charge of the three quality themes and related

departments), which meets monthly. Another committee under the wing of the ISO Promotion

Committee is the "Customer Satisfaction Management Improvement Committee," which

meets monthly and works to promote customer satisfaction. Please see Page 17 for more.


5


CSR Integrated Into Management Strategy

Our CSR activities consist of company-wide efforts and the role of each area within the Bank can

be seen on page 5. In addition, we consider CSR to be the basic management material that form

the main pillars of corporate management strategy. In the strategy map*1 on the next page, we

recognize four target areas, viewed from the Bank's overall perspective: Financial, Customer and

Social, Internal Process, and Human Capital and Management Infrastructure. The map shows the

general strategic objectives at the top, with the lower level specific objectives supporting the

upper goals.

Our strategic goal is to become one of the top five global financial institutions in terms of

market capitalization by fiscal 2008. In order to achieve this goal, we strive for

sustainable increases in corporate value.

Financial Perspective1

In order to achieve our goal from the financial perspective, we must of course gain

customer support, and earn the trust of society as a whole.

Customer and Social Perspective2

The important processes for achieving the two goals noted above include thorough

customer-focused behavior, development of innovative services, enhanced business and

operational quality, and enhanced corporate risk management and internal controls. We

feel it is impossible to win customer support and social trust without the establishment

of these processes.

Internal Process Perspective3

Our staff providing professional services and the available infrastructure make it possible to

achieve these goals. The realization of effective CSR becomes possible through personnel

development, providing a workplace in which each employee can demonstrate his or her

abilities, and creating a communications infrastructure and corporate culture that allows

for smooth internal decision-making.

Human Capital and Management Infrastructure Perspective4


6

*1 Strategy Map:The strategy map is part of the BSC (Balanced Scorecard) management method. The map displays four perspectives in understanding the strategical path for improving corporate value—"Financial," "Customer," "Internal Business Process," and "Learning and Growth"—and shows their strategic relationship. Note that we have included “society” within the “Customer Perspective” and changed the generic “Learning and Growth Perspective to” Human Capital and Management Infrastructure Perspective.

Global Top 5: Creation of the World's Premier Financial Group

Financial Perspective

Customers' & Society's Perspective

Internal Process Perspective

Human Capital and Management Infrastructure Perspective

1

2

3

4

Corporate Strategy of the Bank of Tokyo-Mitsubishi

Gain Recognition as a Globally Active Top Japanese Brand

Enhance Customer-Focused Activities

Develop Innovative Products and Services

Enhance Operational Quality

Enhance Corporate Risk Management and Internal Controls

Develop a Customer-Focused Business Model

Provide World Class Products & Services

Pursue Operational Excellence

Be a Reliable and Trustworthy Financial Institution

Be a Good Corporate Citizen: A Bank That is Trusted and Known for Reliability

Be our Customers' No. 1 Choice

Sustainable Increase in Corporate Value

Build a Corporate Culture of Individual Initiative Based on Freedom, Empowerment and Self-Discipline

Provide Opportunity and a Workplace that Enable Employees to Develop and Exercise Advanced Skills


7

The Environment is a Key Part of

Our Core Banking Business□

□

We consider it important that we provide financial incentives in order to facilitate solutions for

social and environmental issues in the course of implementing CSR throughout our business.

Given that approach, when a bank with such a broad business base as ours engages in

environmental efforts, we are expected to influence a wide range of environmental

conservation efforts carried out by industry. An outline of our major environmental efforts in

2005 is shown below.

□ New product: "Yukatsuryoku Eco-Action"

We launched Yukatsuryoku Eco-Action in July 2005. It is

designed to provide support for SMEs that want to reduce

environmental impact, and demand for this product has

been growing. This product is focused on SMEs that have

received certification for ISO 14001*1 or ECO-ACTION21*2, which are the leading publicly known

environmental certification systems. Once we determine the company meets the bank's credit

examination criteria, we give these businesses an interest rate discount of up to 0.5%.

□ Financing that takes the borrower's CSR into account

We are currently preparing to add evaluation of CSR efforts of the borrower to our set of lending

credit decision standards. This goes beyond compliance with laws and regulations, and establishes

evaluation categories for "Response to Social Expectations", including a three-class evaluation

scoring system in each category. When the total score clears a given point, the borrower will

become eligible for certain borrowing rate discounts.

□ Environmental Ledger

We are looking into the idea of using the Ministry of the Environment's environmental ledger,

called the Kankyo Daifukucho, in cooperation with accounting agencies. The Kankyo

Daifukucho is software for automatically calculating a company's CO2 (carbon dioxide) emissions

based upon its costs for gas, electricity, and other activities. Our aim is to offer convenient

management tools for SMEs to use in their environmental efforts.

Supporting the EnvironmentalEfforts of Small and

Medium-sized Enterprises (SMEs)

This is a series of international standards for environmental management systems that work to reduce an organization's environmental impact. A certifying entity must examine organizations that apply, and those that are judged to have created a management structure that meets these standards can receive ISO 14001 certification. As of April 2005, 18,104 companies in Japan had been certified.

*1 ISO 14001

This system is based on guidelines set forth by the Ministry of the Environment, which are in turn based on the ISO 14001 standards. It is designed for the convenient use by SMEs. As of July 8, 2005, 431 companies had received this certification.

*2 ECO-ACTION21

Topics 2005


8

Please refer to pages 24 – 26 for the details.

For some time, our Bank has been helping to

finance companies involved in alternative energy

sources, both domestically and overseas, including

wind, solar, and biomass power. While we already

had a process in place to make credit and risk

management decisions for individual projects in this area, in September 2005 we saw

demand for these projects begin to grow, and we established an Environmental Finance

Office within the Bank. This office consists of experts in the field of environmental

finance. Main efforts in this area are outlined below.

□ Environmental Fund

We have set up a ¥100 billion Environmental Fund to finance projects subsidized by the

Japanese government in areas such as alternative energy, energy conservation, and

recycling. We provide active support for companies that have been selected based on

meeting established environmental standards. The Fund offers long-term financing and

favorable interest rates. We start off by examining the creditworthiness of the applicant

firms and each individual project, and then we provide appropriate financing. Once we

determine that there is sufficient demand for the product, we will start creating funds for

customers who see favorable opportunities in investing directly in environmentally

friendly companies.

□ Environmental Finance

In addition to the Environmental Fund, we also offer environmental financing to carefully

selected companies that are not eligible for government subsidies. These include

companies engaged in environmental conservation work, such as recycling, proper waste

disposal, as well as prevention of air and water pollution. We see a demand for

approximately ¥30 billion annually in this area.

□

□

□

Support for LargeCompanies

When the Kyoto Protocol*3 was formally ratified in

February 2005, the use of "emissions rights"*4

became a reality. MUFG also looks to utilize

United Nations mechanisms such as the Clean

Development Mechanism (CDM)*5. By providing

support (in terms of investment or loans) for projects overseas, we contribute to regional

societies in developing countries and help to work toward a worldwide reduction of

greenhouse gases. We intend to retain a portion of the emissions rights through these

projects to offset the CO2 emissions from our Headquarters that we are not able to

reduce through our own efforts (we project this figure at a little more than 10,000 tons

per year). In this way, we aim to make our Headquarters "carbon neutral". As of

September 2005 one of our Group companies, Mitsubishi UFJ Securities, has been

successful in developing 2 of the 23 CDM methodologies approved by the CDM

Executive Board. It is the only Japanese company with multiple approved methodologies.

Mitsubishi UFJ Securities has consulted on a variety of different emission reduction

projects including biomass power plants in Southeast Asia which are expected to

generate Certified Emission Rights for the group.

Efforts to Prevent Global Warming

(Entered into force on Feb. 16 2005)The Kyoto Protocol requires reductions of emissions of six kinds of gas, including CO2. The targets vary according to country, with developed countries reducing greenhouse-gas emissions during 2008-2012 by approx. 5% from their 1990 levels (Japan's target: 6%).

*3 Kyoto Protocol

These are transferable "rights" for emissions. Countries that anticipate that they will not achieve their emissions target can purchase these rights. So a country that has exceeded its emissions limit could buy these rights and "extend" its limit. For example, it could buy rights from developing countries with no limits that succeed in reducing greenhouse gas emissions (see CDM below), or from developed countries that have succeeded in reducing emissions below their target levels (Joint Implementation:JI).

*4 Emissions Rights (limits)

This is a system of emissions credits, which are only valid when approved by the United Nations. Basically, projects that contribute to the reduction of greenhouse gases in developing countries or regions with no emissions limits (under the Kyoto Protocol) can be eligible for emissions credits. Investors in a project that succeeds in reducing greenhouse gases could receive credits equivalent to the amount of gases it had reduced.

*5 Clean Development Mechanism (CDM)

Bio-gas extraction and power generation project (waste pool from palm oil refining factory)


9


10

Based on four foundations to protect our value,

we aim to further create new value from six perspectives.

Our CSR: Ten Pillars

We aim to create new value, through our activities reflecting six perspectives,

and through communications with diverse stakeholders.

Six perspectives to further enhance valueCreating Value

Shareholder Perspective We aim to be among the global top 5 financial institutions in aggregate market value P.15

Customer Perspective We focus on providing "Customer-centric Service". P.16～17

Internal Communication Perspective We are creating a more open atmosphere within the bank. P.18～19

Employee Perspective We build a workplace where employees are stimulated to reach their potential and feel valued for their work. P.20～21

We have built four foundations for our business activities.

Foundations of our business activitiesProtecting Value

Corporate Governance We strive to practice strong corporate governance. P.11

Risk Management/Compliance We take care to identify and manage risks control and ensure ongoing compliance with laws and regulations. P.12

Internal Controls We continuously develop and refine our internal control systems through self risk assessment. P.13

Information Security We work to ensure the safe management of information entrusted to us. P.14

Local Community Perspective We contribute to social communities where we do buisiness. P.22～23

Environmental Perspective We support environmental conservation through our main business activities P.24～26

Corporate Governance Structure

Retail Banking Business Unit

Commercial Banking Business Unit

Corporate ManagementGlobal Corporate Banking Business Unit

Investment Banking & Asset ManagementBusiness Unit

Corporate Center *2

Treasury Unit

Cust

omer

s

Gen

eral

Sha

reho

lder

's M

eetin

g

Audi

tors

' Com

mitt

ee

Boar

d of

Dire

ctor

s

Exec

utiv

e Co

mm

ittee

Audi

tors

eBusiness & IT Initiatives Unit

UNBC Business Unit*3

Operation Services Unit

System Services Unit

1. Establishment of trust

2. Putting customers first

3. Strict observance of

laws, regulations, and

internal rules

4. Respect for human

rights and

the environment

5. Disavowal of

anti-social elements

MUFG Code of Ethics(titles only)

*2: Corporate Center: The center is in charge of shared operations among the Business Units.

*3: UNBC: UnionBanCal, a majority-owned subsidiary of Bank of Tokyo-Mitsubishi, Ltd. is a U.S. commercial bank holding company.

*1:


11

As a member of MUFG, we follow the MUFG Management

Philosophy ( p. 4) and the MUFG Code of Ethics*1. We take

particular care to follow strong corporate governance practices.

Our primary decision-making bodies are the Board of

Directors and the Executive Committee.

The Board of Directors conducts decision-making at the

bank, and oversees the execution of the directors' work. It is

headed by the Chairman and includes all directors and

corporate auditors. The Executive Committee deliberates upon

all important management matters according to the basic

policies determined by the Board of Directors. It is chaired by

the President, and includes the Chairman , Deputy Presidents,

Heads of Business Units, and Head of the Corporate Center*1.

We also employ a Business Unit System and Operating

Officer System. We introduced the Business Unit System, in

July 2000, and we continue to work to unify the

responsibilities and scope of authority of each Business Unit,

strengthen their specializations, and speed up their decision-

making. We established the Operating Officer system in June

2001 to supervise decision-making and actions by the Board

of Directors. We are further developing their ability to act in

this important role.

- Corporate Governance -

What kind of corporate governance andcompliance systems do you have in place?

Because of the public nature of banking services, it is essential for us to

comply with all laws and regulations as well as to follow certain voluntary

rules that go beyond strict compliance, in order to ensure our continued

reliability and maintain the trust that society places in us. For that reason,

corporate governance and risk management are integrated within a reliable

system of internal controls.

Corporate Governance


12

Every bank must deal with two types of risk: one type is

unavoidable, and includes operational and information

security risks, which are simply part of doing business. The

other type is the risk that banks take on actively as a function

of raising profits, which includes credit risk and market risk.

The Bank must carefully differentiate between risks that

should be accepted in order to do business and those to be

avoided. And for those risks we do accept, we must be sure

that the resulting returns justify the taking of such risks.

The fundamental risk management policy of MUFG is to

constantly monitor all the risks in our business environment in

a comprehensive manner. We specify, measure, and

implement control monitoring of these various risks in order to

secure returns appropriate to the level of risk, and allocate

management resources accordingly.

Complying with all applicable laws and regulations is a top

management priority throughout MUFG. The general

managers of branch offices who serve as customer contact

points are personally in charge of this critical responsibility.

They are supported by dedicated compliance managers who

receive specific training on compliance issues. These

compliance managers use detailed internal checklists to

regularly confirm that business activities are properly carried

out. Then a group of independent internal auditors

double-checks their efforts.

The Bank's Head Office carries out the same checking in

an even more thorough manner and in more detail. For

example, documents and directives are checked not only for

legal compliance but also for social acceptability. The Legal

and Compliance Office,which is responsible for overseeing

compliance throughout the Bank, conducts legal checks on all

important management issues, runs compliance-related

training programs for staff, and takes charge of keeping our

in-house compliance manual, which covers all the rules,

regulations, and compliance activities, up to date.

We have also set up compliance departments in each

business unit to plan and manage compliance-related activities

at the nearest possible point to business. These compliance

departments at the business unit level work together with the

Legal and Compliance Office at the Head Office.

To ensure effective compliance, a Deputy President of the

Bank heads the Compliance Committee that meets once every

three months to discuss important issues about how we could

strengthen and improve our compliance system. The results of

these committee meetings are reported to the Internal Audit

and Compliance Committee, which comprises legal and

accounting specialists from outside our company.

- Risk Management and Compliance -

Risk Management

Compliance

Risk Management System organizational structure Compliance System organizational structure

Integrated Risk Management Office

(Depts. in charge of risk management)

Customers

Business sites (Branch offices), Headquarters

check

Aud

it O

ffic

e

Departments and offices in the Business Units

Legal and Compliance Office

Executive Committee

Board of Directors

Auditors / Audit Committee

Compliance Committee

Board of Directors

Executive Committee

Risk Management Committee

ALM (Asset & Liability Management)Committee

Investment and LendingPolicy Meeting

Information SecurityManagement Committee

Credit Policy Office

Operations Services Planning Office

Information Security Management Office

Legal and Compliance Office

Market risk, liquidity risk,operational risk

Credit risk

Operational risk

Information security risk

Legal risk


13

Internal controls are activities to ensure legal compliance,

reliability of financial reporting and risk specification and

countermeasures and are carried out by all staff and

managers. We need to continuously improve our internal

control functions and adopt self-regulating mechanisms that

can cope with various types of risk. We strive to always be

conscious of the check and balance functions within the

organization and to specify the risks located in each business

area in order to be able to cope with risks before they

materialize. End business-level staff draw up counter

measures, which we then incorporate into systems, rules and

procedures. Accurate processes as a result of strict procedures

are also required in the area of financial data disclosure where

correct representations of the company's true conditions are

required.

Carrying out control self-assessments (CSA)

We are introducing a Risk Control Self-Assessment system in

order to make our business safer, more accurate, and more

efficient. Since we started to work on this system, a number of

other industries have begun to employ similar measures for

internal control, risk management, and internal audit.

These assessments involve each business group within

the Bank exploring potential problems (Self), then evaluating

the steps already planned to deal with those problems

(Control), and then proposing improvements. The basic idea

here is that the people doing business are in the best position

to understand that department's risks. Based on this principle,

each of

our divisions requires its staff to assess the significant

business risks in their area, aiming to further strengthen

internal controls.

Internal controls on financial reporting (responding to

article 404 of the Sarbanes-Oxley Act)

In order to gain the trust of a company's investors, article 404

of the U.S. Sarbanes-Oxley Act ("SOX") requires companies to

strengthen internal controls related to financial reporting. The

same movement is evident in Japan as well, where the

legislature has been considering the strengthening of internal

controls related to financial reporting and disclosure for listed

companies since last year.

MUFG, BTM's parent company, is listed on the New York

Stock Exchange and SOX will be applicable to non-U.S.

companies from the closing of fiscal 2006 (March 2007). We

will make preparations in line with MUFG. Our preparation for

compliance with SOX represents a planned step towards

improved internal controls, and as a result we expect to be able

to disclose even more accurate and reliable financial data.

- Internal Controls -

How do internal controls and self-assessmentof risk ensure accurate financial reporting?

Internal Controls

An internal control mechanism is vital to any business. In addition to

following various laws and regulations we carry out self-assessments in order

to advance the level of internal controls and to be able to disclose reliable

financial data.

*1: Article 404 of the Sarbanes-Oxley Act ("SOX"): In July 2002, after a series of corporate scandals, the United States Congress passed the Sarbanes-Oxley Act ("SOX") in order to restore investor confidence. Article 404 of SOX requires the following actions to prevent inaccurate and false financial reporting:1: A statement of management's responsibility for establishing and maintaining an adequate internal control structure and procedures for financial reporting; 2: Management's own assessment of the effectiveness of the company's internal control structure and procedures for financial reporting. 3: An audit certificate by an external auditor.

CSA workshop SOX work-out session

ATM with the vein pattern verification system

*1 PDCA CycleThis is a program for continuous improvement, based on the "Plan - Do - Check - Act" cycle.

*2 Convenience Store Box Bank In February 2005 we began placing "Box Banks" in convenience stores (Japanese retail outlets), enabling customers to conduct various banking activities, such as submitting forms for address changes and other routine items as well as being able to make meeting appointments for financial consultation at our main and sub-branches from these remote locations.


14

Since we consider it our social responsibility to require the

proper handling of our customers' personal information, we

have established a Personal Information Protection Policy. All

of our directors as well as working staff uphold this policy and

work to protect our customers' personal information.

We are also striving to improve information security throughout

our business, both by following procedures adhering to Japan's

Act on the Protection of Personal Information and continuously

improving information security through a PDCA cycle*1

Personal Information Management System (Organizational structures)

We have sought to strengthen our information management

system by establishing an Information Security Management

Office as an independent functional department. In addition,

we are taking the following measures to protect personal

information in an appropriate manner:

- Keeping security procedures up to date

- Appointing of designated security managers

- Restricting on the use of external storage media

- Strict processes for exporting information

We also began full-scale personal information protection

training for domestic staff in July 2004. This training is a step-

by-step process, from understanding the laws and Japan's

Financial Services Guidelines through to practical applications

in business situations.

The maintenance of the safest, most up-to-date technologies

is a major issue for any bank operating in today's Internet

society. We seek to create reliable systems for the safe

management of customer information in order to continue to

respect the high level of confidence society places in us. We

aim to acquire a global information security certification such

as ISMS certification as mentioned in page 4, which is a similar

Japanese standard.

In the area of information security in paper based

processes such as the handling of customer forms, we are the

first Japanese bank to have acquired ISO/IEC 15408 certification

(another international standard for information security), which

we received for our Convenience Store Box Banks.*2

The "Super IC Card" is an ATM card with integrated credit

card and electronic money functions together with an

improved security system that scans the vein patterns in

customers' palms for identity verification. We began

issuing these cards in October 2004. The cards store a

record of the customer's palm vein patterns on an IC

(Integrated Circuit) chip implanted in the card, adding that

pattern to the customer's PIN code to create state-of-the-art

personal indentification.

- Information Security -

How do you ensure the security ofthe information you handle?

We treat customer data with the same care that we do with money entrusted to us

by our customers. We work to ensure safe management of information in every

aspect of our business through the use of our "Super IC Cards," Convenience Store

Box Banks, and other methods.

Act on the Protection of Personal Information Working Toward Certification

Super IC Card

Joint Investor Meeting of MTFG and UFJ on fiscal results 2004 (held in May, 2005)

Outline of the Mitsubishi UFJ Financial Group

Mitsubishi UFJ Financial Group

MTFG+

UFJ Holdings

Mitsubishi UFJ Trust Bank

Mitsubishi Trust Bank+

UFJ Trust Bank

Bank of Tokyo-Mitsubishi UFJ

Bank of Tokyo-Mitsubishi+

UFJ Bank

Mitsubishi UFJ Securities

Mitsubishi Securities+

UFJ Tsubasa Securities

*: Merger planned on January 1, 2006


15

The MUFG Group, born through the merger of the MTFG

Group with the UFJ Group, aims to become one of the global

Top five financial groups in terms of market capitalization by

fiscal 2008. As a major subsidiary of MUFG, we are working to

keep constant awareness of the importance of increasing the

corporate value of the Group.

One key step for us to achieve that aspiration is to

improve customer satisfaction. We will do that by consciously

becoming more customer-centric and working to improve the

quality of our service. Going forward, we will make every

effort to focus on our customers. Our primary goal is to

become the bank of choice for everyone.

To achieve that end, we have created a comprehensive

system of business processes in which our branch offices' main

focus is on customer service, and the Headquarters' main

focus is on supporting the branch offices. We are also working

to meet the needs of our employees, because we believe the

more employees become satisfied the better they can serve

customers. In a broader sense, we hope to be well regarded

by society as a whole, both for offering useful financial

solutions to the community, and for contributing towards a

healthy global environment,without which no business can

thrive in the long run.

We consider that adopting these steps and more will help

to bring us new customers and new business, which will

increase our bank's value, and ultimately contribute to the

growth of corporate value for shareholders. (Please refer to the

Quality Management chart on p. 4.)

- Shareholder Perspective -

What are you doing to enhancecorporate value for shareholders?

The Bank of Tokyo-Mitsubishi, Ltd. is a major banking arm of

the Mitsubishi UFJ Financial Group

(MUFG: TSE code 8306, NYSE ticker MTU and SEDOL code 6335171).

Through our activities, we aim to increase the value of the entire MUFG group.

Aiming for the Global Top 5 in Aggregate Market Value

Service Quality ManagementPolicy (ISO Employee Card)


16

In order to further improve our level of customer satisfaction, we

created a service system that begins with the customer as the

starting point and accurately reflects the opinions of both our

customers and our service staff. We survey a broad range of

customer opinions, and use that information to offer prompt,

responsive service. We also ask our customers to evaluate our service.

In August 2005, we acquired certification for an

international standard in quality management called ISO9001.

This achievement clearly shows our commitment to thoroughly

serving our customers. Our certification covers "product and

service planning, development, and proposals based upon

customer needs." We will continue to make improvements

while always remaining aware of the need to carry out our

business with the idea that "the customer is the starting point."

There is a popular business process cycle called PDCA.

Normally, it proceeds through these four steps: Plan – Do –

Check – Act. Completing one full cycle leads another cycle,

starting with a new Planning stage. However, when we do

PDCA, we don't start with Planning because that would be

company-oriented rather than customer-oriented. Instead, we

start with the customer, so we begin with the Check stage. In

our case, this business process looks like this:

We are striving to improve service quality in order to increase

customer satisfaction. We are focusing on four areas in our

service quality improvement efforts:

1: Thorough customer focus

2: Continuous improvement

3: Legal compliance

4: Customer communications

We will continue to manage

our business with this

"Service Quality Management Policy."

- Customer Perspective -

What can you tell us about yourefforts to improve customer satisfaction?

We pay constant attention to our customers' needs, offering useful

solutions in order to achieve our ultimate reward, their satisfaction.

Our commitment to further our "Customer-Centric Service" is visible in our acquisition

of ISO9001 standards certification for business processes aimed at customer satisfaction.

Acquiring and Maintaining ISO 9001 for Customer Satisfaction

Our Efforts to Improve Service Quality

Third-Party Comment

The Bank of Tokyo Mitsubishi, Ltd. has developed and implemented a management system, based upon ISO 9001:2000, for comprehending the "view of customers" and improving service quality, with the goal of thorough customer focus. Up to now, customer and employee requests and opinions were dispersed throughout the company; steady results are now being realized by compiling the customer and employee requests and opinions for analysis at the CSR Office, making a timely determination of the necessary action for improvement at the CS Management Improvement Committee (in which top management participates), and developing the action on-site. The intranet portal allows all employees to share the results of analysis and the next action. We therefore give the Bank of Tokyo Mitsubishi, Ltd. high marks for promotion of internal communication geared toward improving customer satisfaction. We hope that continuous improvements in service will bring even more praise from customers, and that the bank will consider adding "voices of society" to customer and employee requests and opinions as a category for data gathering, analysis, and sharing.BSI Japan K.K.(Japanese subsidiary of the British Standards Institution)

Continuous customer service improvement process (PDCA Cycle)

Collect and Assess customer opinion / requirements / feedback

(1) Check (evaluation)

Create solutions based on customer needs

(3) Plan (Product and service planning)Management review

(2) Act (improve)

Offer new products and services that respond to customer needs

(4) Do (execute)

Voice of Customer


17

- Customer Perspective -

Customer Satisfaction Management Improvement Committee

In March 2005, as part of our efforts to improve service quality

and gain customer satisfaction, we began holding monthly

meetings of a Customer Satisfaction Management

Improvement Committee. This committee discusses

management issues and individual projects from the

perspective of how to achieve even greater customer

satisfaction. We carefully examine the opinions of customers

and employees from our retail offices. Committee membership

includes Executive Committee members and managers of

departments and offices at Headquarters, as well as branch

managers, and business department general managers as

observers. The meetings, are published internally, and employees

are free to provide feedback.

Recent important issues discussed include:

- Immediate customer service and facility improvements as

retail branch office initiatives

- Improved staff training in business manners

- Creation of a working group to promote working

environments that match women's needs

- Examination of our clients' level of satisfaction for various

customer segments

We collect and share the Customer Opinion Cards and the

"Customer Surveys" collected by our employees with the

relevant departments and offices. In addition, these are

circulated among our managers on a weekly basis for use in the

improvement and development of products and services.

Customer Opinion Cards and Collection Boxes

Customers may obtain Customer Opinion Cards when they visit

our branches and place them in the

Collection Boxes in our branches or send

them to us by mail. We receive about

10,000 of these each month, and treat

them with great care.

Service Improvements Based On Customer Opinions, and "Thank You" posters

We have put up Thank You posters in our offices to show our

gratitude for the opinions and requests that customers have

taken the time to give us in that particular branch office. In

this way, we provide feedback of

responses that we made to customer

opinions. We have put up 1,000

improvements during the first four month

of the program.

In addition we have started to publish

representative cases of improvements

that were generated by staff comments

(representing customers) in our

1 2 3 4

Examples of Improvements Based on Customer Opinions and Requests

Opinions and Requests

Please do something about waiting times.

I want to have financial consultation services on weekends and national holidays.

I want to discard my ATM slips safely.

I'm afraid my PIN code can be seen by someone standing behind me at the ATM.

I would like it if you had some children's books in the waiting area.

Please provide a better selection of reading material.

Please provide reading glasses.

Service Improvements

We have increased the number of teller windows, and now notifiy customers about free times and provide information showing peak and off-peak times in the Bank's calendar. (Photo 1)

TV Banking facility (Photo 2)

Locks have been placed on the bins for discarded ATM slips.

Side panels have been installed in our ATMs, and mirrors have been installed above the machines so that customers can see the people behind them. (Photo 3)

We are improving the selection of magazines, children's books, etc.

We have increased the number and selection of reading glasses. (Photo 4)

Putting Customer Opinions to Work (Product and Service Development)

The Collection Box for Customer Opinion Cards

"Thank You" poster

Details of the meetings, including photos and remarks of participants, are published through an in-house web portal. (right)

All employees are invited to give their opinions via the web portal about whatever is discussed at the committee meetings.


18

In our primary role as a service business, we strive to create

innovative procedures through "internal reforms", fully

utilizing the interactive nature of our internal communications

through to decision-making. This, too, helps us work toward

our goal of becoming a completely customer-centric bank.

Both an open workplace environment and an

atmosphere where customer and employee opinions can be

freely exchanged are vital to our customer-oriented

innovations. Moreover, establishing the groundwork for the

free exchange of opinions is essential to our internal reforms.

One of the tools we are using to achieve lively and

interactive internal communications is our Internet portal,

called "OPEN." In addition to its use in daily activities,

decision-making is now possible at a closer point to our

business offices. "OPEN" allows the timely transmission of

messages from management and also has a feedback link to

post opinions or messages anonymously.

We conduct an "OPEN Poll" of all employees in Japan once

every year. This anonymous questionnaire helps us to better

understand our progress in promoting the internal reforms.

In-house evaluations of "Internal Reforms"

Nearly 4,000 employees responded to the 3rd Open Poll,

conducted in April 2005. Of these, 60% said that, "The

thinking of top management, from the President on down, is

now much clearer and easier for employees to understand."

Twice as many respondents as in the last poll said that, "Frank

opinions and honest criticisms about issues at our various

offices are being shared more freely than before." And there

was a 10% increase in the number of employees who felt

that, "The atmosphere at the Bank is more open than

before." While employee evaluations of our operations were

at times severe, it is also clear that we are making steady

progress toward becoming a customer-centric organization

fostering communication with various stakeholders.

Trends seen in the "Comments" section in the "OPEN poll"

Comments such as, "The opinions of employees at business

offices are being better communicated to Headquarters," and

"There is no doubt that reforms are progressing," are

representative of what many of our employees had to say. We

can now see that employees are starting to get a sense that

real reform has begun and that movement is underway.

- Internal Communications Perspective-

What are you doing to create a moreopen atmosphere within the Bank?

By having smooth communications between Headquarters and the branch

offices (whose staff are in daily contact with our customers), the opinions and

needs of these customers can be delivered and accessed swiftly within the

Bank. We are making efforts to lay the groundwork for the promotion of a

corporate climate for free exchanges of opinions.

Virtual communications through the "OPEN" Portal Use of Anonymous Employee Surveys

Intranet Portal (AKA OPEN)


19

By using a link called the "Voice of Customer & Voice of Staff"

on the top page of the OPEN portal, employees may freely

offer feedback about customer opinions. They can also express

their own ideas about how to improve our operations during

the course of their daily work. There are many places where

employees can provide such feedback, either including their

own names or anonymously. About 4,000 opinions come in

every six months (C: Check). The most important opinions are

discussed at the Customer Satisfaction Management

Improvement Committee and other venues (A: Act). Then, top

management as well as managers in charge of the relevant

departments, consider the appropriate steps and give orders

are given (P: Plan --> D: Do). In this way, we make our

employees the starting point for this type of PDCA.

Meeting at the Jiyugaoka Branch

We hold"Town Meetings"so that employees including

temporary staff can have an opportunity to speak directly with

our Directors. We held the June 2005 Town Meeting, attended

by the President, at the Jiyugaoka Branch in Tokyo. Members

from offices from the nearby Gakugei Daigaku Station, Toritsu

Daigaku Station, and Himon-ya areas gathered for a lively

discussion with the President. Staff who were unable to attend

in person were able to participate through the e-meeting

system from the "OPEN" portal.

Exchanging ideas at Town Meetings

The President heard from both employees and temporary staff

who meet with customers every day and shared the sense of

urgency for issues such as customer waiting periods,

bankbook readout errors, and how to improve forms. The

President listened carefully to their opinions and then everyone

engaged in free discussions.

Prior to the start of the meeting, the President visited

each floor of the Jiyugaoka Branch to view customer floors,

employee workspaces and rest areas, and with a good

understanding of the workplace engaged in friendly talks with

each employee.

Next Steps

The employees and temporary staff who participate normally

would never have a chance to meet the President. They

expressed comments such as, "The President gave us a

valuable opportunity to exchange ideas, and that increased

our motivation all the more," and "I hope to hear more from

customers in the weeks and months to come."

We are pleased with the results and reactions from other

staff members towards these Town Meetings and will continue

to hold them regularly.

- Internal Communications Perspective-

Making Use of Employee Opinions(PDCA with employees as the starting point)

Communications With Directors,including In-house "Town Meetings"

Each departmental General Manager commits to measures in

response to opinions through the "OPEN" portal.

Examples of Improvements Based on "Voice of Employee"

We would like the bank to evaluate us not only by the efforts to achieve our immediate revenue targets, but also on our efforts to expand future revenue.

We would like examples of good and bad customer proposals to be shared in a more timely fashion.

If we could transfer the authority to manage resources for customer satisfaction to staff in the branch offices, wouldn't that help to make our response more flexible?

Customers have told us that our Bank's forms are difficult to understand.

{General Manager of Corporate Planning Office}We are implementing an evaluation system that gives serious consideration to factors such as "Customer Satisfaction" in addition to "Revenue Goals."

{General Manager of Corporate Business Development Division No. 2}We will take the proposal database to the next level.

{General Manager of Retail Marketing Division}We are making it possible to implement customer satisfaction improvement methods based on proposals made by branch offices, instead of uniform decisions by Headquarters.

{General Manager of Operations Division }We are revising the customer forms to make them easier to read and fill out.

Voice of EmployeeImprovements : The departmentor office manager responding

is listed in the { }.

Lively discussions took place in a friendly atmosphere


20

- Employee Perspective -

Personnel Development

Do employees feel stimulated to reach theirpotential and feel valued for their work?

We are working hard to create a team of service industry professionals.

With the graying of Japanese society,

we want to build a workplace in which all employees can thrive.

We are also engaged in serious, continuous efforts to increase

the awareness of human rights.

*1 Thoroughness of training: The attendees of the training programs for domestic banking held during fiscal 2004 totaled of approximately 14,000 people.*2 e-Learning: There are 131 e-Learning courses for domestic banking. (as of September 2005)

We help our employees to develop their skills and build their

careers so that they will be able to assess customer needs

accurately and propose appropriate solutions. In short, we are

helping them to become true service professionals.

Comprehensive training system*1(in Japan)

A comprehensive training system is in place from new hires to

officers. Together with general training programs, we have

special training programs for employees in charge of both

individual clients and corporate clients, according to business

unit and customer segment. Training programs based on

contemporary themes are especially popular. Beginning in 2005,

we offered training for individual client services such as MPB

(Master of Private Banking), Personal Pension, and Investment

Trust training. In the area of corporate services, we offer an IPO

(Initial Public Offering) Business Promotion Seminar, a Business

Succession Seminar (about the succession of a founder-owner-

run company), and Corporate Front training (for people in

charge of customers).

e-Learning*2

Classroom training requires the adjustment of schedules and

changing locations, and classes fill up quickly. So in 2003 in

Japan we started our e-Learning program, allowing employees

to "attend" class via the Internet on their home PC. Employees

can learn at their own pace, and through self-scoring tests and

monitoring of their progress by instructors, the contents of the

training can be tested in actual practice .

Course changes and in-house recruiting

In Japan,we currently conduct our hiring according to specific

employment-track courses. It is possible to change these

courses, for example, to Career Track, Specific Career Track,

General Employment, and others. We also conduct in-house

recruiting through an open bidding process via the "OPEN"

portal once a year, in which we help employees assess other

options to build their career.

After our merger with UFJ, the current Specific Career

Track and General Employment courses will be merged into a

single course called, "Area Professional Track". The General

Employment Course, which did not provide opportunities for

promotion to managerial level, will be discarded, and

employees currently working in Specific Career Track or General

Employment will become Area Professionals. That means all

such employees will have the possibility of being promoted to

managerial positions as far as branch general manager.

Mid-career employment / Promotion to regular employment

In Japan,we are open to hiring mid-career professionals from

outside the bank for various positions. We already have several

employees hired in mid-career, now working at our

Headquarters as General Managers and Branch Office General

Managers.

When employees become deeply concerned about their daily

work or career prospects, it is necessary to pay careful

attention to each employee's needs and feelings. We

immediately try to improve their workplace environment

together with confidential counseling by doctors or

counselors. We have established four consultation routes

within the Bank: the Employee Counseling Office, the Health

Counseling Office, the Health Center, and the Compliance

Helpline. Employees can use any of these services at any time

without prior reservation and with anonymity guaranteed.

Alleviating Employee Concerns


21

We are striving to create a workplace in which all employees can

participate actively.

Human rights awareness efforts

We are working very hard to foster and improve a corporate

culture that respects human rights. Among other duties, our

Employee Counseling Office carries out human rights training

and interviews branch general managers about human rights.

Human rights training is conducted according to employment

level, and each session uses questionnaires and drills together

with other methods to ensure its effectiveness.

Promoting active participation by women in the workforce

In Japan,we have long taken a proactive approach to hiring

women and promoting them to management positions. There

are currently 430 women employed as managers at the bank,

comprising 5.9% of all managers. A substantial number of

women are also in line management positions, such as branch

office general managers and section heads. We also actively

promote women to work overseas, with 14 of our female

employees currently stationed at overseas offices. We now

have over 100 female employees on staff that have such

international experience.

We established a working group to promote the active

participation of female employees in September 2005. Now

we are working to create an environment in which women

can achieve real success in the new post-merger bank.

Fostering accessible workplaces for disabled employees

Disabled employees are also active members in many of our

departments and workplaces. The needs of disabled

employees are varied, so we endeavor to create a personalized

approach for each one.

Promotion of good balance between work & private life

We always try to support a good work-life balance for our

employees. One example is our 2-year childcare leave system,

which is well beyond the 1.5 years required by Japanese law.

We are pleased to see that more than 90% of those eligible

for childcare leave take advantage of the opportunity. We will

continue to promote this system, and find ways to encourage

more of our male employees to do so as well.

Efforts at London Branch

All of our staff must participate in training programs that will

help to deepen their understanding of diversity. In addition to

regular e-learning programs, individual awareness of diversity

is promoted by watching skits that show hypothetical work

scenarios. Participating employees have been very impressed

with these presentations, and so the program will continue.

Efforts in the USA

Diversity is taken seriously in the USA, and executives and

regular employees are given a variety of diversity training

courses throughout the year. These courses deal with issues

such as sexual harassment, raising further awareness of

diversity, and understanding differences in cultural

backgrounds at the workplace.

- Employee Perspective -

Examples of Diversity at Overseas Offices

Diversity Efforts

Employee Interview

Akiko Watanabe,Information Security Management Office

I took my second childcare leave from

January 2004 through April 2005 to

have my second child. The leave system

gave me emotional support to know that the company

still valued my skills and work experience even after so

long an absence.

e-Learning program on diversity

Participation of female branch

general managers in the

Customer Satisfaction

Management Improvement

Committee, run by Executive

Committee members

Working session of

the working group


22

On this page, we will introduce some representative ongoing

social contribution activities, both in Japan and overseas. Our

total charitable donations in FY2004, including disaster relief,

reached ¥320 million (¥1.4 billion if we include contributions

from our overseas affiliates).

Social contributions at the Department, Office, and Branch level

In Japan,the branches of our bank are situated at the heart of

the communities in which they are located, and our employees

are encouraged to participate as members of these

communities. In addition to reflecting the needs of our

customers, such as setting up and maintaining bicycle parking

areas reserved for bank use, each department/office/branch

engages in efforts to contribute to its local community. Please

see our Website (in Japanese) for specific information about

what we are doing along these lines. In addition, many of our

departments / offices / branches are actively engaged in donation

drives for disaster relief and other forms of aid, helping to

organize their local communities to respond to those in need.

Support for child welfare facilities

We provide donations and organize employee volunteer

participation to assist child welfare and family support

facilities. In conjunction with MTFG and Mitsubishi Trust Bank,

we have been sponsoring the "MTFG Hands-on Classroom," a

one-day event that pairs children from these various facilities

with our employees. This program will carry on as the "MUFG

Hands-on Classroom" from October 1st 2005. We also have

donation programs for items needed by such facilities.

Involvement in general class work at elementary and junior high schools

Upon request, our branch general managers visit local

elementary and junior high schools to speak about basic

financial and economic matters. Their job is to provide easy-to-

understand explanations and to talk about experiences the

children will have when they become adults. These programs

have become very popular.

Support by company sport club teams (e.g. soccer and tennis)

Company sport club teams regularly participate in social

participation programs. For example, we invite former

professional soccer and tennis players to training courses for

children and aim to foster participate in sportsmanship and

team play.

Scholarship Programs for students from abroad

In Japan,we provide scholarship funds to a total of 300 foreign

students each year as a way to support human capital

development overseas. We focus on graduate students at

universities in Japan as well as students at universities in

China, the Philippines, Vietnam, Myanmar, and India. We also

carry out regular cultural exchange courses in Japan for the

visiting students for which bank employees serve as volunteers.

Contributions to Local Communities

Support for Youth Development

*1: Social Contribution Programs: In the one year period from October 2004, about 1,500 staff participated in the entry level programs introduced by Head Office.

- Local Community Perspective-

Are you making meaningfulsocial contributions?

The Bank is engaged in activities that contribute to society. Major efforts

include contributions to local communities, youth development activities,

using our financial capabilities and experience to help local communities,

employee participation activities, and human development programs in Asia.

MTFG Hands-On Classroom Football Schooling by former professional soccer players.

Manner Kids Tennis Club "Zen" meditation session with students and volunteer staff

In-house sales event for the rehabilitation work of the handicapped.


23

Program at a Chinese university and sending lecturers

We have established a lecture program in our Bank's name

starting in September 2005 at Fudan University in China. This

goes beyond merely donating money to establish a series of

lectures. We take an active role in managing the program by

sending specialists from our bank with real experience as

lecturers for some of the courses. Our goal for this program is to

deepen educational exchanges with China. To date, we have

provided scholarship funds for approximately 2,000 students in

China, and approximately 200 students in Japan.

Kids' ISO:environmental education

In cooperation with the Tokyo Municipal Government, we are

participating in the International Art & Technology

Cooperation Organization's children's environmental

education program, "Kid's ISO 14000." The main focus of this

program is for each child to develop an awareness of how to

improve the environment in their homes, communities, and

around the globe. We are developing instructors and

examiners in-house through e-learning programs. We plan to

have staff from our branches act as teachers to conduct

environmental classes and mark up students' homework.

In Japan,we have implemented a volunteer support system to

encourage our employees to pursue volunteering opportunities.

Providing volunteer information

We list information about various volunteer activities on our

company intranet as a reference for our employees.

Volunteer leave system

We have established a system that allows employees to take

three days of special leave for volunteer work, though only about

10 employees take advantage of it each year.

Volunteer support donation system

We also provide funding for volunteer groups where our

employees or their spouses are active.

Both as the Bank and as individuals, we sincerely want to

contribute to local communities according to their specific

needs in each region where we operate. Our overseas

branches have their own scholarship programs and their own

ways of contributing to local public institutions. Our

employees take part in a wide array of volunteer events, and

we sponsor a Matching Grants Program, matching the

charitable donations made by individual employees.

In April 2005 over 200 employees and family members

participated in the annual "March of Dimes Charity Walk" in

New York City.

Efforts with other companies

We have held a number of "first-time volunteer" events

together with other companies as a way to expand volunteer

participation. We have also sponsored a number of events

among the Mitsubishi Group companies and various

businesses in the Chiyoda-Ward of Tokyo, where our

Headquarters is located.

Partnerships with NGOs (non-govermental organizations)

We are deepening our partnerships with NGOs in many ways.

These include holding NGO-sponsored exhibitions within our

company where our employees can buy products made at

local workshops. We also hold "first-time volunteer" events

for our employees and invite NGO instructors to attend. The

NGO sector in Japan is still developing.Therefore,at our 2005

new employee training sessions, we invited representatives of

seven NGOs to hold workshops to explain what kind of social

contributions ordinary people expect a major bank such as ours

to make. We intend to continue such activities in the future.

Supporting Volunteer Activities of Individual Employees

Overseas Activities

Cooperative Efforts with Other Companies and Groups

- Local Community Perspective-

Annual "March of Dimes Charity Walk" in New York City.

A football camp run in cooperation with Japan's professional soccer league, the J-League

NGO representative invited to lecture Bank employees

Walking event with local home for the elderly

Participation in the Japanese volunteer walk called "P-Walk 10" conducted by the "Ashinaga" which is a Japanese not for profit organization.


24

Environmental Statement

"Recognizing that protection of the environment is the

responsibility of all human beings and is essential for the

survival of the Earth, BTM will actively seek its role in

environmental protection. We will involve all our employees in

this effort as a part of fulfilling our social responsibility. BTM is

committed to leaving a better environment for the next

generation. We will support environmental protection efforts

by business and industry that contribute to building a

sustainable society."

We established the Bank's "Environmental Policy" based on

this statement in May 2004 as part of our management policy.

We are also pursuing environmental efforts through our

environmental management system. These efforts cover a

broad range of activities, from the regular contributions made

at the local level by our branch offices, in the form of

contributions we make through our main business. We also

address environmental issues at the global level as well.

ISO 14001 [see footnote*1 of page 8]

We acquired ISO 14001certification on April 28, 2005 for our

main office and for all banking businesses. We are putting

this internationally-certified management system to work,

focusing on the following efforts:

Efforts in FY2004

We can have an indirect impact on the environment through

our main financial business, which provides support to

companies in various industries. For some time now, the credit

examinations we conduct prior to making loans have taken

environmental impacts into account from the standpoint of

risk management. As part of creating a sustainable society, we

will carry out environmental management and CSR

management evaluations on our broad customer base in order

to induce them to recheck their standing. We will also

continue to develop financial products that promote these

activities.

- Our Environmental Policy is consistently reflected in our

credit policy

Upon establishing our Environmental Policy in May 2004, we

immediately revised the regulations that form our basic policy

on credit decisions we make on loans and other credit related

businesses. Our Environmental Policy is always reflected in our

credit policy. In this way, environmental considerations always

stay as part of our local business.

- Environmental Perspective -

What are you doing tohelp the environment?

The Bank itself works in an office setting and has a limited environmental

impact. However, the financial functions of a bank are the lifeblood of

industry and consumers. For this reason, we believe we can use our financial

know-how to help solve some of the environmental issues related to industry

and consumption.

Environmental Management System

Efforts to Reduce Environmental Impact through Our Banking Business

EnvironmentalPolicy

Nobuo Kuroyanagi President June 2004

Legal complianceWe will comply with all laws and regulations related to environmental protection and other requirements that we subscribe

Environmental conservation through our business activitiesWe will support business activities that contribute to the protection and improvement of the environment through the provision of financial products and services. We will also aim to reduce environmental risks of society as a whole.

Reduction of the environmental impact of our office workWe will recognize the environmental impact caused by our consumption of resources and release of waste from our business activities. We will aim to protect the environment through resource recycling as well as efficient use of energy and resources,

Continuous environmental improvement and prevention of pollutionWe will monitor the effects of our activities on the environment and work towards continuous improvement and pollution prevention. We will carry out the environmental management cycle, from setting targets and objectives through the review of our actions.

Internal awareness and the participation of all employeesWe will improve in-house environmental education and support our employees' environmental protection activities both during and outside working hours.

CommunicationsWe will inform employees and the general public of our environmental activities and policy, and help raise awareness on environmental issues through extensive communication.

Photo courtesy of Eurus Energy Holdings Co., Ltd.

Segregated disposal at major domestic offices

Ecologically conscious goods distributed to customers

Green planting in major domestic office rooftops


25

- Special consideration is given to soil contamination for

property taken as collateral

The Soil Contamination Countermeasures Law went into

effect in February 2003. Since then, whenever we look at

loans for real estate purchases or land to be used as collateral

for loans, we have taken special care with regard to problems

of soil contamination.

- We continue to focus on new energy businesses

For quite a while now we have focused on alternative energy

businesses, such as solar, wind, and biomass power

generation. Please see our Website (in Japanese) for more

information and specific examples.

- Business alliance with the Development Bank of Japan

We started a business alliance with the Development Bank of

Japan (DBJ) in September 2004. This has made it possible for us

to apply DBJ's "Environmental Rating" to our customers, and

grant favorable interest rates to customers with higher ratings.

Our first project of this type was executed in March 2005.

In order to help conserve the global environment, we have

taken the following steps to reduce the environmental impact

of our offices.

Ongoing energy conservation efforts

For some time we have been practicing energy conservation,

both at our main office and each business site. We set air

conditioning to 28C (about 82F) in the summer, and allow our

employees to dress casually for the entire June ~ September

period. We have created rooftop gardens and have been

reusing rainwater, among other things. These efforts resulted

in a 2.7% decrease in electricity usage from 2002 through

2004 at the Head Office alone. Based on this experience, we

are now creating energy conservation guidelines for our local

branch offices and individual homes as well, and asking all of

our employees to join in the effort.

Other efforts at our offices

We are also promoting recycling through trash separation,

switching to low-emissions vehicles, and increasing our use of

recycled paper products.

Using eco-products for our retail banking promotional items

We are switching to eco-friendly products for all of the

promotional give-away items we offer to our customers. This

policy will be continued after our merger with UFJ.

In addition to the above-mentioned efforts, we will work

together with government*1 and international organizations

as well as other companies, both within and outside of our

industry*2, as part of carrying out our environmental

responsibility. We will strive to accumulate know-how in this

area so that we can become more capable of proposing

original, innovative ways of addressing environmental issues.

One example of this is our signing of the United Nations

Environmental Programme Finance Initiative (UNEP-FI)*3 in

May 2004. We discussed our efforts with other major financial

institutions at the UNEP-FI New York Global Round Table in

October 2005.


Other External Efforts

Efforts to Reduce the Bank's direct Environmental Impact

*1 Working together with local government: The Kids’ ISO program on page 23 is one example. *2 Working together across industries: As a major provider of credit and as an investor, we are concerned of the potential cost of compliance related to global warming that our customers will eventually have to pay. Therefore, we have participated and sponsored the Carbon Disclosure Project (CDP). CDP is a global initiative by investors and financial institutions involving all major industry figures. Its initial aim is to raise the awareness of global warning (carbon risk). *3 United Nations Environmental Programme Finance Initiative (UNEP-FI): This independent organization was founded in 1992, with the same goal of pursuing sustainability as the United Nations Environmental Programme (UNEP). It works with banks and other financial institutions to support environmental activities and exchange information about such activities.

Project Company Total project sizeof which lending amount by BTM

Environmental impact reductiondue to lending by BTM

Construction recycling

Food recycling

Proper disposal (ash furnace)

Proper disposal (final disposal site)

Proper disposal (final disposal site)

Solar power generation

Wind power generation


Biomass power generation




Environmentally-conscious management

Company W

Company A

Company S

Company I

Company C

Company E

Company W

Company R

Company F

Company O

Company E

Company J

Company S

Company T

¥2.5 billion

¥2.5 billion

¥5.7 billion

¥3.5 billion

¥3.5 billion

¥2.5 billion

¥0.5 billion

¥4.0 billion

¥4.9 billion

¥3.0 billion

¥0.53 billion

¥1.0 billion

¥1.9 billion

¥3.0 billion

¥1.0 billion

¥0.5 billion

¥1.0 billion

¥0.95 billion

¥1.2 billion

¥0.7 billion

¥0.35 billion

¥1.4 billion

¥2.7 billion

¥0.9 billion

¥0.3 billion

¥0.7 billion

¥1.6 billion

¥2.0 billion

¥15.3 billion

New Environmental Lending and Environmental Impact Reduction in FY2004 (New projects during April 2004~March 2005)

*1 Calculation example using Company F's biomass power generation project (Figures are hypothetical. This is for financing of one year only. a)

1: Annual amount of power sold: 100,000 MWh (assuming generation capacity x hours of operation annually)2: CO2 emissions using conventional technology: 0.378 kg-CO2 /kWh (when full source average is used)3: CO2 reduction: 100,000 MWh x 0.378kg-CO2 /kWh x 1,000 = 37,800 t-CO2 /year4: Monetary conversion: 37,800 t-CO2 /year x ¥3,000 b) = ¥113,400,000 (cost when procured in the market)5: Adjustment based on financing share c): ¥113,400,000 x ¥2.7 billion / ¥4.9 billion = ¥62,485,714

a) When making calculations over more than one year, multiply by the number of years (such as the official number of years of useful life).b) Monetary conversion coefficient for environmental conservation benefit (Example) CO2 (¥3,000 /t-CO2): When using the average value in the European CO2 Emissions Market over recent months (hypothetical number)c) Calculation method for environmental impact reduction due to lending by BTM Anticipated environmental impact reduction for the entire project (relevant infrastructure and facilities, etc.) x BTM's share of the financing

Anticipated reduction benefit x monetary conversion coefficient

Refer to the calculation example in the table below *1

Anticipated environmental impact reduction benefit x monetary conversion coefficient

Third-Party Comment

The Bank of Tokyo Mitsubishi's efforts on environmental accounting entail calculating environmental cost based upon a calculation of the monetary value of the environmental impact reduction achievements of business engaged in environmental initiative that is receiving financing (i.e., the bank's main line of business) from the bank. In doing so, the Bank of Tokyo Mitsubishi is offering an innovative framework for environmental accounting in banking business that is limited to the direct environmental impact of business. It is certain to make a difference in the shape of banking business environmental accounting in the future.Once the environmental accounting takes hold, it will promote environmental activity by influencing industry to take even greater interest of environmental impact. We believe that this will allow banks to take an indirect but significant role in the reduction of environmental impact in society at large.We hope that the Bank of Tokyo Mitsubishi will continue to promote this form of environmental initiative via the bank's main line of business, and that the bank will expend efforts in providing this environmental accounting framework to the financial sector. Kazutaka Okubo C.P.A. Shinnihon Integrity Assurance Inc.


26

In addition to measuring our direct environmental impact, the

focus of our environmental accounting efforts is to better

understand how we indirectly impact our customers'

environmental activities. This indirect impact comes through our

investments and loans to our customers and their businesses.

To put it another way, we can achieve indirect environmental

benefits when we invest / lend in a customer's project to invest

in property, plant, facilities, technology and personnel. For

example, the advancement of new energy projects has helped

to reduce greenhouse gas emissions compared to other types of

power generation projects and thus we can count the

estimated reduction as an indirect benefit. Another example

would be where the development of more environmentally

advanced furnaces has significantly reduced dioxin emissions,

and we count the estimated benefit as an indirect benefit.

We plan to develop numerical indicators in our

environmental accounting that will allow us to be even more

effective in lending to or investing in environmentally-conscious

businesses. This will include creating procedures to determine

how much of an environmental impact reduction we can

reasonably expect when evaluating environmentally-related

financing. We are currently working on creating a consistent set

of numerical indicators with the aim of converting them to

monetary values. Our goal is to conduct more effective

environmental financing in the future by using these metrics.

Environmental Accounting Efforts


GRI Content Index

1. Vision and Strategy

1.1 Statement of the organisation's vision and strategy 3

1.2 Statement from the CEO 1

2. Profile

Organisational Profile

2.1 Name of reporting organisation 2

2.2 Major products and/or services 8, 9

2.3 Operational structure of the organisation. 2,11

2.4 Major divisions, subsidiaries 11

2.5 Countries in which the organization‘s operations are located. 2

2.6 Nature of ownership; legal form 2

2.8 Scale of the reporting organisation 2

2.9 List of stakeholders. 10

Report Scope

2.10 Contact person(s) for the report 2

2.11 Reporting period for information provided 2

2.13 Boundaries of report 2

Report Profile 2

2.18 Criteria/definitions used in any accounting for economic, environmental, and social costs and benefit. 26

2.22 Means by which report users can obtain additional information 2

3.Governance Structure and Management Systems

Structure and Governance 26

3.1 Governance structure of the organisation, 11

3.4 Board-level processes for overseeing the organisation's management of economic, environmental, and social risks and opportunities. 12

3.6 Organizational structure and key individuals responsible for oversight, implementation, and audit of economic, environmental, social, and related policies. 5

3.7 Mission and values statements, internally developed codes of conduct or principles, and polices relevant to economic, environmental, and social performance and the status of implementation. 10

Stakeholder Engagement

3.9 Basis for identification and selection of major stakeholders. 10

3.10 Approaches to stakeholder consultation 17, 18, 19, 20, 28, 29

3.11 Type of information generated by stakeholder consultations. 17, 18, 28, 29

3.12 Use of information resulting from stakeholder engagements. 16, 17, 18, 19

Overarching Policies and Management Systems

3.13 The precautionary approach or principle 10 12, 13, 14

3.15 Principal memberships in industry and business associations, and/or national/international advocacy organisations 25

3.19 Programmes and procedures pertaining to economic, environmental, and social performance 16, 17, 18, 19, 20, 21, 25

3.20 Status of certification pertaining to economic, environmental, and social management systems 16, 24

4 GRI Content Index

4.1 A table identifying location of each element of the GRI Report Content, by section and indicator 27

5 Performance Indicators

Economic Performance Indicators

Direct Impacts

EC1. Net sales 2

Environmental Performance Indicators

Energy

EN17. Initiatives to use renewable energy sources and to increase energy efficiency 25

Social Performance Indicators

Employment 2

LA12. Employee benefits beyond those legally mandated 21

Diversity and Opportunity

LA10. Description of equal opportunity policies or programmes, as well as monitoring systems to ensure compliance and results of monitoring 21

LA11. Composition of senior management and corporate governance bodies 21

Customer Health and Safety

PR6. Voluntary code compliance, product labels or awards with respect to social and/or environmental responsibility that the reporter is qualified to use or has received 14

Products and Services

PR8. Description of policy, procedures/management systems, and compliance mechanisms related to customer satisfaction 16, 17

Respect for Privacy

PR3. Description of policy, procedures/management systems, and compliance mechanisms for consumer privacy 14

Item Indicator Number of page in this report

Here we provide an index to our CSR report based on performance indicators, as defined in the GRI "Sustainability Reporting Guidelines 2002".


27

Yoshihiro Fujii

Takashi "Tachi" KiuchiKensuke Onishi, CEO Peace Winds Japan, Chairperson Japan Platform Council

"We hope that the Bank of Tokyo-Mitsubishi will

work to develop the functions of the civil sector

through its main banking business."

Stakeholder Dialogue

The Bank of Tokyo-Mitsubishi held its first "Stakeholder Dialogue" meeting on July

29, 2005. The participants exchanged opinions about CSR activities and other matters.

The following are the main items that emerged in response to the question "What

does Society expect of our Bank?"

Kyoji OkamotoSenior Advisory Manager, Environmental AffairsIBM Japan, Ltd.

"Globalization has led corporate activity to results

sometimes not widely known such as ecological

damage and child labor. In your role as banker

and investor as well as a shareholder

representative, we hope that the bank will keep a

close watch on such issues such as the CSR of its

corporate clients."

Chairman, The Future 500Chairman, E-Square Inc.Chairman, IntechstraChairman, GRI Forum Japan"Rebuilt Japan in 21 Century" Executive MemberMember of World Wisdom Council, former Chairman, Mitsubishi Electric America

"We would like you to maintain awareness of

your role as the world's largest bank (to be).

Never forget the 'Three Corporate Principles'

of the Mitsubishi group and strive hard so that

many people would say 'This bank does make

a differencence.' "

President & CEO, The Good Bankers Co., Ltd.

Chief Executive, E-Square, Inc.

"We hope you develop more 'green bankers' with

a clear vision that understand that objective use

of monetary sources can both improve and solve

environmental issues."

Secretary General, Amnesty International Japan

"We must understand that business activity is

naturally accompanied by infringement of human

rights. Rather than thinking defensively about

how to avoid this, we hope that you will consider

counter-measures against unavoidable

infringements of human rights."

Senior Staff Writer, Economic News Dept. Editorial Bureau Nihon Keizai Shinbun, Inc."While it is important that the Bank of Tokyo-

Mitsubishi contribute to non-profit organizations

and local communities, banks in the US and

Europe support local communities through tie-ins

with non-profit banks, which are closely

connected to local communities. We would like to

see consideration given to this kind of strategy."

Mizue Tsukushi Makoto Teranaka

Peter David Pedersen

Attendees

Facilitator


28

Editor's PostscriptI was given to reconsider the meaning of CSR as editor of our first CSR Report. CSR may sound like another buzzword, but to us such aspects of our CSR as consideration of coexistence with society and environment through our main business, self-restraint, openness and transparency, and to maintain a global perspective, all are reflections of the "Three Corporate Principles" mentioned by Mr. Kiuchi, who was one of the members present at our first stakeholder dialogue.

Both our headquarters and our branch operations are approaching our range of services from the customer's perspective. Now we should broaden our considerations to include social and environmental perspectives as well. It is my hope that we can use our specialized financial knowledge and experience, as well as the skills of our employees, to find solutions to a wide array of issues, and use our knowledge and skills to put CSR management into practice, with perseverance.

The business base of the new bank that will be formed after our merger with UFJ will be exceptionally broad. This brings an even greater sense that we have a responsibility to put CSR into practice throughout our business. We need to extend our antennae toward the wider world. We should aim to "Keep expectations high, but still keep an eye on the difficulties of reality." Each employee will be responsible for carrying out CSR related activities within his/her capacity. We will listen carefully to the views of our various stakeholders, and look forward to fruitful dialogue with them in the future.

General ManegerCorporate Planning Office CSR OfficeThe Bank of Tokyo-Mitsubishi, Ltd.

Masayuki Ito

*The Three Corporate Principles of the Mitsubishi Group

Corporate Responsibility to Society "Shoki Hoko": Strive to enrich society both materially and spiritually, while contributing towards the preservation of the global environment.

Integrity and Fairness "Shoji Komei": Maintain principles of transparency and openness, conducting business with integrity and fairness.

International Understanding through Trade "Ritsugyo Boeki": Expand business, based on an all-encompassing global perspective.


29

The Bank of Tokyo-Mitsubishi should not merely proclaim that,

"We will incorporate our social and environmental sustainability

activities into our management and business strategies." You

must always put philosophy into practice and show the results

of the actions. Starting next year, we expect that you will show

the results of activities, for example beginning with

environmental financing.

A look at bank lending standards for providing business loans

makes it easy to see the relationship between banking,

ecology and biodiversity. For example, regarding loans to the

mining industry, making the loans conditional upon the

restoration of the site would cause the mining company to

place much greater emphasis on environmental issues when

conducting its business. It is important to understand how

philosophies such as the "Equator Principles" (environmental

guidelines used in project finance) play a role in these

activities.

It is important to understand that investor's viewpoint is

informed by how environmental and diversity efforts have

resulted in management efficiency or increased

competitiveness. These points are better conveyed when

visually represented.

In Japan today, not enough effort is made to promote the

needs demands of civil society. In some ways BTM represents

Japan through its business, and so we must take into

consideration each societal sector such as the civil,

administrative, and industrial, in carrying out its work. There

are various ways in which a bank might fulfill its role in civil

society. These can include community development, financing

NGOs, and lending personnel to increase these organizations,

capacity for and access to financing. Banks also tend to give

the impression of being unapproachable. It may therefore be

necessary to develop intermediary organizations to facilitate

partnerships and change that image.

The concept of human rights is quite broad. Human rights are

ultimately just that: rights. For example, people who have

fallen into poverty could be thought of as being unable to

exercise their right to have enough work.

With the current course of globalization, we must pay

attention to structural infringements of human rights. It is

correct to believe that business activity way cause some

infringement of human rights. As a bank you bear the

responsibility to account for the actions of companies that you

lend to. It is essential that you are able to explain what measures

your customers are taking to prevent human rights infringement

and why each company is receiving loans from BTM.

Contribution through Banking Business

Ecological Conservation and Protection

Keeping Investor's perspective in Mind

Civil Society / Relationship with NGOs

Human Rights Issues and the Role of Finance

O u r r o l e i n a d v a n c i n g a �

h a r m o n i o u s a n d m u t u a l l y �

p r o s p e r o u s s o c i e t y o f c o e x i s t e n c e

Issued in October 2005 Printed in Japan

The Bank of Tokyo-Mitsubishi, Ltd. CSR Office2-7-1 Marunouchi, Chiyoda-kuTokyo 100-8388 JapanTe l: +81-3-3240-1111 (General)Fax: +81-3-3240-3350e-mail: [email protected]

Cert no. SACOC-1210

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