Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced environmental burden from its own business
• Promoted environmental finance

Social Achievements

• Increased financial education initiatives
• Supported management and financial support to local companies
• Supported business/asset succession
• Supported innovative companies
• Activating financial assets in Japan
• Supported developing countries through commercialization of agricultural business in Rwanda, Africa

Governance Achievements

• Strengthened corporate governance
• Improved compliance system
• Introduced a full-scale in-house company system
• Appointed external directors for the positions of Chairman of the Board of Directors and Chairmen of all three legally required committees in Japan

Climate Goals & Targets

Environmental Challenges

• Deteriorating net interest income due to the continuing negative interest rate policies
• High expense ratio
• Increasing uncertainty in the global economy
• Negative interest rate policies continue
• Increasing convergence of strategies of our competitors
• Entry of non-financial enterprises such as Fintech ventures
• Streamlining marketing system and work processes
• Further strengthening our trust banking and securities business, such as cross-border M&A
• Rebuilding our business portfolio by rebalancing resources
• Controlling expense increases due to regulatory costs, inflation, etc.
• Establishing stable funding base, mainly through non-yen deposits
• European banks exiting non-core businesses such as through selling
• Uncertainty in the global economy due to such factors as new US administration, Brexit, etc.
• Strengthening of liquidity and capital adequacy requirements
• Rising cost of USD funding accompanying Fed rate hikes
• Further progress in globalization of Japanese companies
• Acceleration of entry into Asia by European, US, and other multinational companies
• Emerging countries in process of industrial development and capital market development
• Progress in industry realignment on a global basis
• Strengthen product offering capabilities
• Strengthen capabilities for meeting investor needs
• Develop a global business infrastructure
• Improve the sophistication of portfolio management
• Increasing global political uncertainty and higher volatility
• Signs of change in the interest rate environment with shrinkage in the spreads between short-term and long-term rates
• Greater need to cope with tighter financial regulations
• Shift from savings to investments/asset building
• Greater need for risk hedging and asset management
• Increase in cross-border transactions
• Changes in market structure accompanied by AI and other technological progress
• Further strengthening of integrated management in Asset Management One
• Further building up of balance of investment trusts to accommodate increased customer needs
• Development of flagship funds conducive to medium- to long-term asset building
• Demand for a higher level of fiduciary duties
• Deteriorating investment market environment and intensifying global competition
• Increased convenience and greater need for asset management as a result of NISA and iDeCo regulatory reform
• Greater need for investment sophistication and diversification as a result of the negative interest rate environment
• Downward pressure on trust fees due to the popularity of passive investments and ETFs
• Progress in technology innovation (AI, Robo-advisor, etc.)
• Create a room for new risk asset investment and boost ROE
• Accelerate development of new products that respond to technology innovations and changes in the business environment
• Manage human resources more efficiently
• Increasing risk of price fluctuations in stocks, bonds, real estate, and commodities
• Commoditization of a wide variety of products
• Increasing need for asset management in a low interest rate environment
• Increased M&A activities for business transformation such as succession and expansion beyond the borders
• Introduction of new settlement businesses by Fintech ventures, etc.
• Expansion of high quality infrastructure investments and concession business
• Entry of non-financial institutions
• Shortage of resources to cope with broadening research and consulting needs
• Fusion of innovative technology with consulting business
• Research and consulting network to cope with globalization
• Increasingly unpredictable economic, financial, and social environment, which is undergoing rapid changes
• Increasing convergence of strategies of our competitors
• Increasing needs to pass on businesses/assets to the next generation with aging of proprietors
• Emergence of new business fields along with rapid digital innovation
• Expanding opportunities in public-private partnerships, with the trend of increased private-sector participation in government projects

Mitigation Strategies

• Introduced a new in-house company system
• Accelerated its efforts to become a financial services consulting group
• Implemented fundamental reforms in HR management
• Introduced a new in-house company system
• Reallocated staff in key sectors across the group
• Further ramped up its personnel training
• Worked to improve the quality and productivity of its services
• Further developed the One MIZUHO Strategy
• Transformed its business model into one that creates a greater value chain
• Rebalanced the allocation of assets and personnel
• Built a robust and profitable business portfolio
• Promoted cross-border M&A business by reinforcing global sector collaborations
• Rebalanced its resource allocation
• Promoted business process innovation through group-wide operational excellence
• Upgraded its business infrastructure
• Incorporated mobile technologies
• Constructed a real-time data sharing platform
• Implemented its Global 300 Strategy
• Improved its services and profitability
• Made full use of its analysis and proposal functions for each industry sector
• Offered a wide range of solutions to meet the diverse customer needs for securities products, transaction banking, and other services
• Streamlined its organizational structure and business processes
• Increased operating efficiency through the use of robotics and blockchain technology
• Continued to take initiatives to establish a stable funding base, mainly for non-yen currencies
• Focused on developing relationships with blue-chip non-Japanese companies, especially the Global 300
• Reallocated capital and liquidity from low-profitability segments to higher-profitability segments with prospects for business expansion
• Increased the volume of non-yen currency deposits and improved deposit quality
• Shifted management resources from low-profitability to higher-profitability segments
• Ensured thoroughgoing cross-selling between transaction banking and securities/market products
• Promoted operational excellence through integrated operation on a group-wide basis, streamlining of business processes, and other measures
• Secured non-yen currency deposits and diversified non-yen currency funding sources
• Allocated resources on a priority basis to its Sales & Trading business
• Took a flexible approach to risk taking
• Strengthened its product offering capabilities
• Reorganized its operating structure of derivatives business in the US, Europe, and Asia
• Enhanced its balance sheet management
• Maximized efficiency in portfolio management through early warning control and investment diversification and appropriate decision making
• Used cutting-edge technology to enhance operating efficiency and sophistication
• Allocated resources to investment capabilities, investment trust and pension businesses
• Strengthened capabilities to cope with needs for sophisticated investment and medium- to long-term asset building
• Introduced sophisticated investment methods, including use of digital innovations
• Focused efforts on expanding investment trust business and improving pension services
• Taking into account the shift from savings to investments/asset building, allocated more resources to investment trusts
• Accelerated offering of comprehensive pension consulting/solutions
• Offered product functions cross-sectionally to in-house companies and entities
• Maintained asset liquidity for ultra-long-term assets and non-yen currency assets
• Explored new business domains by developing products that use latest technologies
• Responded to a wide range of customer needs by seamlessly offering diverse products
• Strategically reduced risk assets to generate new asset investment reserves and achieve a high ROE
• Leveraged its product expertise and market sensitivity to open up new business domains
• Further boosted productivity through the use of advanced technology and streamlining the organization
• Further refined its operational framework and platform on a global basis
• Expanded new business domains
• Realigned its organization
• Established a global collaboration structure between its offices
• Leveraged its banking, trust banking, and securities functions
• Contributed to the growth of industries and met social needs by supporting companies’ globalization
• Reorganized its middle-market M&A advisory business and global transactions business
• Started accepting corporate account applications online
• Strengthened its internal and external collaboration
• Moved forward with expanding and optimizing the breadth of the solutions it provides
• Gave greater emphasis to fostering human resources and reinforcing their expertise
• Further enhanced its strengths in digital technology fields
• Supported both Mizuho’s own innovation and the growth of its customers
• Applied digital technology
• Improved the contents and convenience of Mizuho’s corporate membership service
• Reinforced its consulting team
• Optimized the allocation of resources within its unit
• Enhanced the consulting capabilities at frontline offices of each in-house company
• Focused its efforts especially on Asia
• Strengthened its knowledge of Asia outside Japan
• Collaborated with its group’s in-house companies
• Moved away from outdated practices and unwritten rules
• Encouraged employees to take on challenges proactively
• Established “Mizuho’s HR Policy”
• Released a “Diversity and Inclusion Statement”
• Strengthened and expanded its strategic development programs
• Supported the activities of the Mizuho Women’s Initiatives Network (M-WIN)
• Expanded its telecommuting system
• Transformed employee mindsets
• Set a target for 100% of eligible male employees to take childcare leave
• Acknowledged employees who take on additional responsibilities
• Promoted initiatives to establish and entrench customer-focused business operations
• Proactively invested resources in key sectors aimed at augmenting non-interest income
• Made efficient use of resources and established a low-cost business model by utilizing digital innovations and external alliances
• Implemented sophisticated consulting business that will contribute to the asset building in the household sector
• Provided optimal solutions that support the growth strategies of its SME and middle-market corporation customers
• Made its online and smartphone services more user-friendly by utilizing digital innovations
• Boosted efficiency and productivity by transforming work processes
• Invested resources strategically and flexibly in key sectors
• Rebuilt its business portfolio through selective risk taking
• Thoroughly enforced its compliance system that underpins its strategies and reinforced asset controls
• Strengthened its focus areas by rebalancing the allocation of assets and personnel
• Built a robust and profitable business portfolio
• Further developed the One MIZUHO Strategy
• Transformed its business model into one that creates a greater value chain
• Shifted assets to Global 300 and other high-profitability segments
• Downsized low-profitability assets and non-yen assets with low liquidity
• Strengthened not only loan financing but also transaction banking capabilities
• Offered M&A, bond underwriting (DCM), and other securities-related products
• Offered transaction banking services
• Pursued operational excellence
• Enhanced non-yen currency funding capabilities
• Streamlined its organization and business processes
• Facilitated swift decision making through a decentralized scheme
• Continued its efforts to attract non-yen currency deposits
• Diversified its funding sources through the issuance of non-yen currency denominated bonds
• Allocated resources to key sectors aimed at augmenting non-interest income
• Made efficient use of resources and established a low-cost business model by utilizing digital innovations and external alliances
• Implemented sophisticated consulting business that will contribute to the asset building in the household sector
• Provided optimal solutions that support the growth strategies of its SME and middle-market corporation customers
• Made its online and smartphone services more user-friendly by utilizing digital innovations
• Boosted efficiency and productivity by transforming work processes
• Further strengthened its internal and external collaboration
• Moved forward with expanding and optimizing the breadth of the solutions it provides
• Gave greater emphasis to fostering human resources and reinforcing their expertise
• Expanded its capabilities for responding to these consulting needs
• Pursued greater depth and breadth in its One Think Tank initiatives
• Took initiatives in digital innovation
• Strengthened its capabilities for meeting expanding research and consulting needs
• Achieved greater expertise in its global research
• Reinforced its consulting team
• Optimized the allocation of resources within its unit
• Enhanced the consulting capabilities at frontline offices of each in-house company
• Focused its efforts especially on Asia
• Strengthened its knowledge of Asia outside Japan
• Collaborated with its group’s in-house companies
• Leveraged its Corporate Finance Advisory and Solutions (CFAS) function
• Continued to pursue cross-border M&A deals
• Fully integrated derivatives and FX business within markets
• Continued to expand Sales & Trading products lineup
• Established a US bank holding company (BHC), Mizuho Americas
• Accelerated cross-entity linkages between banking, securities, and trust functions in the US
• Optimized resources and capital across entities
• Expanded capacity to manage risk and execute with speed and precision
• Continued to expand strategic capital raising solutions in DCM, equity capital markets (ECM) and M&A
• Reorganized its product functions
• Improved business processes
• Strengthened mechanisms that support the increased sophistication level of corporate governance
• Took further measures to help the management to take advantage of implications from the enhanced supervision
• Undertook further enhancement of operations of the Board of Directors’ meetings and Audit Committee meetings
• Further made deliberations at the Board of Directors’ meetings more fulfilling and efficient
• Further utilized outside directors’ insights and reflected them on business execution
• Agreed on how the Board of Directors should be engaged in dialogue with stakeholders
• Utilized newly established Off-site Meetings on Management Issues
• Took further measures to achieve mutual understanding between supervision and execution
• Strengthened its initiatives at the departmental and branch levels
• Further promoted internal communication
• Improved its services and profitability
• Made full use of its analysis and proposal functions for each industry sector
• Offered a wide range of solutions to meet the diverse customer needs for securities products, transaction banking, and other services
• Streamlined its organizational structure and business processes
• Increased operating efficiency through the use of robotics and blockchain technology
• Continued to take initiatives to establish a stable funding base, mainly for non-yen currencies
• Further developed its investment capabilities
• Made active use of leading-edge technologies such as AI and big data
• Further enhanced the integrated management of Asset Management One
• Differentiated its pension services
• Focused on operational excellence
• Allocated resources to investment capabilities, investment trust and pension businesses
• Strengthened capabilities to cope with needs for sophisticated investment and medium- to long-term asset building
• Introduced sophisticated investment methods, including use of digital innovations
• Focused efforts on expanding investment trust business and improving pension services
• Taking into account the shift from savings to investments/asset building, allocated more resources to investment trusts
• Accelerated offering of comprehensive pension consulting/solutions
• Further refined its operational framework and platform on a global basis
• Expanded new business domains
• Realigned its organization
• Established a global collaboration structure between its offices
• Leveraged its banking, trust banking, and securities functions
• Contributed to the growth of industries and met social needs by supporting companies’ globalization
• Reorganized its middle-market M&A advisory business and global transactions business
• Started accepting corporate account applications online
• Strengthened its internal and external collaboration
• Moved forward with expanding and optimizing the breadth of the solutions it provides
• Gave greater emphasis to fostering human resources and reinforcing their expertise
• Further enhanced its strengths in digital technology fields
• Supported both Mizuho’s own innovation and the growth of its customers
• Applied digital technology
• Improved the contents and convenience of Mizuho’s corporate membership service
• Reinforced its consulting team
• Optimized the allocation of resources within its unit
• Enhanced the consulting capabilities at frontline offices of each in-house company
• Focused its efforts especially on Asia
• Strengthened its knowledge of Asia outside Japan
• Collaborated with its group’s in-house companies
• Provided support for customers’ business expansion and succession and business restructuring
• Actively provided a range of business management support including M&A
• Provided support for innovative companies with exceptional technologies or ideas
• Provided support for SME customers’ business improvement and business revitalization
• Collaborated with external organizations, external specialists, and other financial institutions
• Provided smooth supplies of funding
• Engaged in management consultations
• Collaborated with regional governments
• Appropriately responded to such customer requests as those for new loans and loan condition adjustments
• Strove to utilize its consulting functions
• Offered and promoted alternative lending methods to personal guarantee provided by business owners
• Established a structure for cooperation between frontlines and the Head Office
• Strengthened its response for natural disasters
• Facilitated initial response for terrorism and riots
• Focused on responses to cyberattacks
• Developed appropriate and effective countermeasures and a framework for business continuity management
• Ensured readiness for emergencies
• Strove to disseminate these within the organization in times of normalcy
• Established Crisis Management Offices
• Established a Business Continuity Management Committee

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Integrated Reporting Council’s “International Integrated Reporting Framework”

Awards & Recognition

• Highest award for channel innovation from the Bank Administration Institute (BAI)
• Celent Model Bank 2017 highest award for consumer banking channel innovation
• Competitive IT Strategy Company Stock (two consecutive years)
• Analytics Award
• Semi-Nadeshiko Brand designation
• Bloomberg Financial Services Gender–Equality Index
• Certified Health & Productivity Management Organization Recognition Program (Large Enterprise Category)
• Award for Excellence in Nikkei Annual Report Awards 2016
• Special award “Kizuna” in Service & Hospitality Award from the Japan Institute of Information Technology
• Top rating of “Gold” on the PRIDE Index

Environmental Metrics

ESG Focus Areas

• Climate Change
• Natural Capital
• Human Rights
• Sustainable Business

Environmental Achievements

• Reduced Scope 1,2 emissions by approximately 60% from FY2020 to FY2023 (projected)
• Promoting renewable energy switching, resulting in a reduction of Scope 1,2 emissions

Social Achievements

• Participation in JaCER's Dialogue and Remedy Platform to strengthen grievance mechanisms
• Expanded the scope of human rights issues addressed
• Revised approach to specific sectors (weapons, wood biomass power generation, mining, fishing/aquaculture, coal-fired power generation)

Governance Achievements

• Revised Environmental and Social Policy for investments, expanding human rights considerations and clarifying exceptions for coal-fired power plant phase-outs
• Established new policies for wood biomass power generation, mining, and fishing/aquaculture sectors

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to climate events
• Transition risks in carbon-related sectors
• Managing financed emissions across various sectors

Mitigation Strategies

• Developed alternative sourcing strategies
• Engaged with clients to address transition risks
• Set sector-specific mid-term targets for Scope 3 emissions reductions (power, oil & gas, coal mining, auto, shipping, steel, real estate)
• Strengthened risk control in carbon-related sectors

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• ESG considerations integrated into investment decisions
• Engagement with suppliers to improve sustainability practices

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes, market shifts in carbon-related sectors

Opportunities

• Development of energy-efficient products and services
• Growth in sustainable finance

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Best Market Maker in the Tokyo Stock Exchange carbon credit market