Climate Change Data

Environmental Metrics

ESG Focus Areas

• Financial Education
• Environmental Issues
• Corporate Governance
• Stakeholder Engagement
• Community Development

Environmental Achievements

• Adoption of the Equator Principles by Mizuho Corporate Bank (MHCB), the first Japanese bank to do so.
• Establishment of the Finance Scheme for Environmentally Conscious Companies by Mizuho Bank (MHBK), offering preferential interest rates to environmentally conscious SMEs and middle market corporations.
• Nine business facilities in Tokyo received AA or A+ assessments under the Tokyo Metropolitan Government’s CO2 Emission Reduction Program.

Social Achievements

• Initiated joint research with Tokyo Gakugei University on financial education, developing textbooks and educational tools for elementary and secondary school students.
• Established lectures and courses at Hitotsubashi University, Waseda University, and Keio University, focusing on contemporary finance.
• Launched the Heartful Project at Mizuho Bank to improve barrier-free access to branches.
• Completed repayment of all public funds.

Governance Achievements

• Adopted a management control system where the holding company, Mizuho Financial Group, Inc. (MHFG), exercises managerial control over group companies.
• Established an Internal Audit Committee and Internal Audit Group to ensure transparency and accountability.
• Established compliance hotlines to receive reports on compliance problems.

Climate Goals & Targets

Environmental Challenges

• Incidents of embezzlement and leaking of customer information at Mizuho Bank.
• Suspicions of misleading consumers in advertising campaigns.

Mitigation Strategies

• Strengthening group management systems, including risk management and internal controls.
• Further enhancing compliance and internal control systems to prevent recurrence of incidents.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Green purchasing of stationery and consumables

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI’s Sustainability Reporting Guidelines 2002 and Financial Services Sector Supplement

Certifications: ISMS certification (Ver. 2.0), BS7799-2 certification, ISO/IEC27001, JISQ27001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Environmentally conscious financial services

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sound management
• Environmental initiatives
• Support for financial education
• Enhanced corporate governance
• Highly responsive communications

Environmental Achievements

• Set targets for the reduction of greenhouse gas emissions, the paper recycling ratio, and the green purchasing ratio
• Reduced water usage by approximately 50,000 tons (25%) at Mizuho Bank headquarters through recycled wastewater
• Achieved recycling ratios exceeding 90% for waste paper at major business sites
• 81% of total paper purchased was environment-friendly paper (recycled, from certified forests, or non-wood)

Social Achievements

• Launched the Heartful Project to create a barrier-free banking environment
• Implemented various health exams and programs to support employee well-being, including mental health initiatives
• Exceeded the legal requirement for employing people with disabilities (1.97% employee ratio)
• Provided financial education programs in elementary and secondary schools and university lectures

Governance Achievements

• Listed American Depositary Receipts (ADRs) on the New York Stock Exchange (NYSE) to enhance transparency
• Established the Internal Audit Committee, Nominating Committee, and Compensation Committee to ensure transparency and objectivity
• Implemented a comprehensive compliance manual and programs

Climate Goals & Targets

Environmental Challenges

• Reducing the environmental impact of business activities
• Meeting greenhouse gas reduction targets under the Kyoto Protocol
• Improving accessibility for elderly and disabled customers
• Maintaining a high level of financial health while investing in CSR initiatives

Mitigation Strategies

• Adopted targets for reducing greenhouse gas emissions, increasing paper recycling, and promoting green purchasing
• Implemented energy-saving initiatives, such as installing energy-efficient equipment and reducing electricity usage
• Launched the Heartful Project with barrier-free initiatives in branches and services
• Strengthened internal control systems and risk management

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Administrative Guidelines for the Environmentally Responsible Purchasing of Supplies
• Green purchasing target of at least 85% for paper and stationery by FY2010
• Use of Eco-mark products and products meeting green procurement standards

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and services, expansion of renewable energy financing

Reporting Standards

Frameworks Used: GRI Guidelines 2006

Certifications: ISO/IEC 27001 and JIS Q 27001 for information security management (various group companies)

Third-party Assurance: KPMG AZSA Sustainability Co., Ltd.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Environmentally friendly finance schemes, IC cash cards made from PET-G

Awards & Recognition

• Chairman’s Award at the Financial Times Sustainable Banking Awards (MHCB)
• Commendation from the Governor of Tokyo (Mizuho Bank)

Environmental Metrics

ESG Focus Areas

• Environmental Initiatives
• Financial Education
• Enhanced Corporate Governance
• Highly Responsive Communications
• Intrinsic Business Responsibilities

Environmental Achievements

• Provided approximately ¥7 billion in finance for a large-scale solar power generation project in Tenerife, estimated to reduce CO2 emissions by 180,000 tonnes over 25 years.
• Arranged finance for eight domestic wind power generation projects.
• Offered the “Mizuho Eco-assist” program, providing preferential interest rates on funding for environmental improvements to SMEs.
• Organized business matching events focused on environmental themes.
• Set targets for reducing greenhouse gas emissions at ten key business facilities.

Social Achievements

• Engaged in joint research with Tokyo Gakugei University on financial education, resulting in textbooks, teacher guidelines, and public lectures.
• Provided financial education lessons to elementary, secondary, and university students, including workplace experience events.
• Offered internships to university students.
• Established the Mizuho Incentive Fund to support basic education in China.
• Participated in various educational programs run by Junior Achievement in the US.

Governance Achievements

• Established a corporate governance structure with outside directors and corporate auditors to enhance transparency and efficiency.
• Introduced the executive officer system to separate managerial decision-making and implementation.
• Established the “Mizuho Code of Conduct” and compliance manuals for ethical behavior and regulatory compliance.

Climate Goals & Targets

Environmental Challenges

• MHSC received a business improvement order from the Financial Services Agency (FSA) for the receipt and use of nonpublic information.

Mitigation Strategies

• Putting the utmost effort into clarifying rules, monitoring compliance levels, and improving internal control systems to prevent recurrence of nonpublic information issues.

Supply Chain Management

Responsible Procurement

• Requesting suppliers to understand the “The Mizuho Code of Conduct”

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO/IEC 27001

Environmental Metrics

ESG Focus Areas

• Environmental initiatives
• Support for financial education
• Enhancing corporate governance

Environmental Achievements

• Participation in Japan-U.S. Collaborative Demonstration Project for World-leading Remote Island Smart Grid on Maui, using renewable energy and electric vehicles.
• First financial institution to participate in a smart grid demonstration project.
• Supporting a new emissions trading mechanism (BOCM) using Japan’s low-carbon technology to contribute to reductions of greenhouse gas emissions in other countries.
• Offering “Mizuho Eco–Assist” and “Mizuho Eco–Assist plus” financing products to support customers’ environmentally conscious management.

Social Achievements

• Providing 1 billion yen in loans and investments to support the recovery of Spa Resort Hawaiians after the Great East Japan Earthquake.
• Supporting the activities of Ashoka Japan, supporting social entrepreneurs.
• Pursuing the “Heartful Project” to make the bank accessible to everyone, including barrier-free design and services.
• Offering “Mizuho Heartful Loans” to corporate customers supporting barrier-free concepts and Universal Design Principles.
• Conducting “Positive Action Training” to promote the career advancement of women.

Governance Achievements

• Turned trust banking and two securities subsidiaries into wholly-owned subsidiaries to maximize differentiating features and advantages.
• Signed a memorandum of understanding on the merger between Mizuho Securities and Mizuho Investors Securities, and Mizuho Corporate Bank and Mizuho Bank.
• Implemented Business Improvement Plans to address computer system failures in March 2011.

Climate Goals & Targets

Environmental Challenges

• Computer system failures in March 2011.
• Economic downturn in Europe and uncertainties in the global economy.
• Need to increase management efficiency.

Mitigation Strategies

• Implemented Business Improvement Plans, including countermeasures for system functions, improved response mechanisms, and risk evaluation.
• Streamlining and rationalizing corporate management functions and reforming the structure of IT costs.
• Establishing a new corporate structure and strengthening corporate governance toward “advanced and integrated group management”.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Sustainable Products & Innovation

• Mizuho Eco–Assist and Mizuho Eco–Assist plus financing products

Environmental Metrics

ESG Focus Areas

• Environment
• Society
• Governance

Environmental Achievements

• Reduced CO2 emissions by 17.9% (compared with fiscal 2009)
• Achieved a paper recycling ratio of 94.7% for major domestic offices
• Maintained green purchasing ratio of 99.8% for ten group companies
• Finance for solar photovoltaic (PV) power plant project in Jordan awarded Environmental Finance of the Year (Solar Category)

Social Achievements

• Invested approximately ¥10.2 billion in 17 funds for regional revitalization
• Awarded as a “New Diversity Management Selection 100” company
• Six group companies certified as “Platinum Kurumin” for superior childcare support
• Designated as “Nadeshiko Brand” for initiatives related to promoting women’s participation in the workforce

Governance Achievements

• Shifted to a “Company with Three Committees” corporate governance framework
• Established Policies Regarding Mizuho’s Fiduciary Duties
• Implemented a highly transparent and objective process for reviewing the compensation system

Climate Goals & Targets

Environmental Challenges

• Slowdown in global economic growth
• Uncertainty in the world economy
• Changes in the business environment resulting from negative interest rate policies
• Increasing prominence of the shift from savings to investment and business inheritance issues
• Concerns about the slowdown in the global economy
• Globalization of customers’ business activities, and a trend toward strategic emphasis on the interests of shareholders
• Trends toward convergence in some areas of strategies with competitors
• More active initiatives in the public and private sectors for growth industries including agriculture and revitalize regional economies
• Uncertainty in the European economies, the slowdown of growth in China and other emerging economies, prolonged stagnation in natural resource prices, and rising geopolitical risks
• Trend among U.S. and European banks to focus on their home markets or specialize in the regions and fields where they have competitive advantages
• Increase in funding costs denominated in non-yen currencies, increase in scarcity of liquidity and capital due to tightening regulations
• Expansion of the range of tax-exempt asset formation scheme, including introduction of NISA and DC pension plan reforms
• Ongoing shift from savings to investments
• Possibility that public pension payments may be cut in the future due to the decline in the birthrate and demographic aging of the population
• Introduction of a negative interest rate policy by the Bank of Japan
• Increasing risks of price fluctuations in equities, bonds, real estate, natural resources, and other assets caused by growing uncertainty in the global economy
• Expansion of new settlement businesses as a result of advancements in settlement methods and technological innovation such as Fintech
• Rapidly-changing, difficult to forecast economic, financial, and social environment
• Increasingly diverse, complex and global issues faced by customers
• Homogenization of strategies implemented by competitors, including collaboration of banking, trust banking and securities functions
• Threats due to cyberattacks
• Concerns about the slowdown in the global economy, changes in the business environment resulting from negative interest rate policies
• Increasing prominence of the shift from savings to investment and the business inheritance issues
• The greater entry into financial sector by companies in other businesses utilizing Fintech

Mitigation Strategies

• Established a new medium-term business plan: Progressive Development of “One MIZUHO” —The Path to a Financial Services Consulting Group
• Introduced a new in-house company system based on customer segments
• Pursuing “operational excellence” to improve operational processes and efficiency
• Strengthening capital base and establishing a sustainable and stable profit structure
• Reforming productivity and cost structure
• Disposal of cross-shareholdings
• Maintaining an optimal balance between strengthening a stable capital base and providing steady returns to shareholders
• Developing new business domains by innovating businesses that make use of new financial technologies, such as Fintech, and big data
• Implementing a program to develop future executive leaders
• Building an integrated HR management framework for all nationalities and cultures
• Implementing a variety of initiatives on a global basis to promote diversity and inclusion
• Strengthening IT governance
• Strengthening capabilities for rapidly and effectively dealing with cyberattacks
• Preparing a data base to centralize management of collected and analyzed data relating to risks and profits
• Promoting the development of a data analysis platform
• Transitioning to next-generation IT systems
• Implementing measures based on common policies throughout the Group to prevent money laundering and terrorist financing
• Establishing a compliance hotline
• Establishing group-wide external reporting channels
• Concluded basic contracts for the implementation of dispute resolution procedures with various dispute resolution institutions
• Strengthening its capabilities for providing products and services to accelerate the shift “from savings to investments” among individual customers
• Strengthening the offerings of high-value-added products and services, as well as its consulting functions, for institutional investors
• Developing product capabilities, which is the driver for the asset management business
• Developing and offering asset formation products that will provide a bridge for individual customers to shift “from savings to investments”
• Strengthening its service capabilities through accelerating seamless operation of banking, trust banking, and securities functions
• Strengthening its global operations in line with product lineup
• Developing products responding to new technologies and changes in the business environment
• Structuring front-line systems to promote efficient businesses
• Creating further business opportunities that draw on the specialties of group companies
• Strategic reconfiguration of research & consulting functions and rebalancing of human resources
• Expanding opportunities for offering research and consulting functions
• Strengthening our initiatives to encourage all employees to put the Mizuho Values into practice
• Further promoting internal communication
• Improving CS by Providing Products and Services that Meet Customers’ Needs
• Improving CS Awareness among All Employees in the Group
• Promoting energy conservation through making investments, including introduction of LED lighting and replacement of existing equipment with more energy-efficient ones
• Actively working to procure paper products made from recycled paper and products made from wood pulp obtained from properly managed forests
• Endeavoring to arrange for separation of used paper products by type for recycling, while also reducing the volume of paper used by introducing tablet computers to move toward paperless office operations
• Implementing measures to improve efficiency, quality and reduction of costs

Supply Chain Management

Responsible Procurement

• Administrative Guidelines for Environmentally Responsible Procurement of Supplies, Goods, and Contracted Services

Climate-Related Risks & Opportunities

Reporting Standards

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

Awards & Recognition

• Environmental Finance of the Year (Solar Category)
• New Diversity Management Selection 100
• Nadeshiko Brand
• Platinum Kurumin (six group companies)
• Mobile Computing Promotion Consortium (MCPC) award (five consecutive years)
• Three stars in the Banking Industry Support Portal Rankings (three consecutive years)
• No.1 in Retail Banking Survey on Product Offering Adequacy (two consecutive years)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Finance
• Environmental Footprint Reduction
• Responsible Financing and Investment

Environmental Achievements

• Reduced CO2 emissions by 25.9% compared to FY2009 levels by the end of FY2019 (Scope 1 and 2 in Japan).
• Set new medium- to long-term targets for reducing Mizuho’s greenhouse gas emissions (35% reduction in Scope 1 and 2 emissions by FY2030, carbon neutrality by FY2050).

Social Achievements

• Undertook engagement with approximately 900 clients in FY2020 from the perspective of responsible financing and investment.
• Provided sustainability-related consulting in approximately 440 cases in FY2020.

Governance Achievements

• Revised Environmental Policy in April 2021, clarifying contribution to achieving a low-carbon society by 2050 and support for the Paris Agreement.
• Designated the rapid advancement of social change due to climate change as a “top risk” and enhanced monitoring.

Climate Goals & Targets

Environmental Challenges

• Transition risks related to financing clients impacted by stricter carbon policies or delays in shifting to low-carbon technologies.
• Physical risks including extreme weather damage to assets and credit risk from macroeconomic deterioration due to increased infectious disease and heatstroke.
• Measuring and managing Scope 3 emissions (greenhouse gas emissions from financing and investment).

Mitigation Strategies

• Strengthened engagement with approximately 900 clients (in-depth engagement with 70 large clients) to support their transition to a low-carbon society.
• Improved risk control in carbon-related sectors, revising the Environmental and Social Management Policy for Financing and Investment Activity.
• Implementing scenario analysis to assess climate-related risks and opportunities.
• Developing and providing financial products and services to support clients' climate change countermeasures.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather damage to assets
• Credit risk from macroeconomic deterioration due to increased infectious disease and heatstroke

Transition Risks

• Credit risk related to financing clients impacted by stricter carbon policies or delays in shifting to low-carbon technologies.
• Reputational damage from financing fossil fuel projects

Opportunities

• Business opportunities in renewable energy and other businesses contributing to climate change mitigation and adaptation.

Reporting Standards

Frameworks Used: TCFD

Awards & Recognition

• Inclusion in the Dow Jones Sustainability Asia Pacific Index (DJSI Asia Pacific)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainability

Environmental Achievements

• Reduced CO2 emissions in fiscal 2021 and costs were reduced through various initiatives including energy conservation measures and switching to renewable energy.
• Decreased credit exposure in high-risk areas (electric utilities, oil, gas, coal, steel, and cement) from 1.8 trillion yen as of March 31, 2021 to 1.6 trillion yen as of March 31, 2022.

Social Achievements

• Engaged with approximately 1,000 corporate clients as part of risk management and responsible financing and investment.
• Provided sustainability-related consulting in approximately 500 cases in FY2021.

Governance Achievements

• Revised Environmental Policy in April 2021, clarifying contribution to achieving a low-carbon society by 2050 and support for the Paris Agreement.
• Established a Sustainability Promotion Committee in January 2022 to discuss and coordinate sustainability-related matters.

Climate Goals & Targets

Environmental Challenges

• Increased indirect (operating) costs due to enhanced emissions-reporting obligations and carbon pricing mechanisms.
• Increased credit risk due to a shift to low carbon and compliance with regulatory changes.
• Risks concerning the continued medium to long-term feasibility of business models for industries and companies facing high levels of transition risk.

Mitigation Strategies

• Implementing measures to meet emissions reduction targets under the Tokyo Cap-and-Trade Program.
• Promoting initiatives to reduce resource and energy use based on the group’s environmental policies.
• Establishing exposure control policies and controlling risk in high-risk areas among sectors recognized as facing transition risk at particularly high levels.
• Engaging with clients to support them in formulating effective strategies for transition risks and disclosing their progress.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Wind- and water-related damage to assets and collateral assets
• Business stagnation among clients due to wind- and water-related damage
• Increased energy consumption due to higher average temperatures

Transition Risks

• Increased credit costs for sectors with high levels of GHG emissions due to the shift to low carbon
• Decline in the value of fossil fuel assets due to a drastic change in energy costs or a change in investor preferences

Opportunities

• Increased demand for products and services related to low emission goods and services
• Increased business opportunities to provide financing for renewable energy projects

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14064-1, ISO 14064-3

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Human Rights
• Sustainable Finance

Environmental Achievements

• Completed the conversion of approximately 70% of our domestic Scope 2 electricity consumption to renewable energy

Social Achievements

• Engaged with approximately 1,100 client companies as part of our risk management and responsible financing and investment efforts

Governance Achievements

• Established the Basic Policy on Climate-Related Risk Management
• Strengthened Group-wide climate change-related structures with the establishment of the CSuO position and the Climate Change Response Taskforce

Climate Goals & Targets

Environmental Challenges

• Increased credit costs for sectors with high levels of GHG emissions due to the shift to low carbon
• Potential for additional losses from physical risks such as windstorms, floods, wildfires, droughts, and temperature fluctuations

Mitigation Strategies

• Strengthening engagement with clients to support their transition to low-carbon business models
• Implementing exposure control policies in high-risk sectors
• Providing transition support to clients
• Considering whether to continue business with clients unwilling to address transition risks
• Improving scenario analyses and incorporating them into individual company plans

Supply Chain Management

Responsible Procurement

• Calculated emissions for paper used in large quantities

Climate-Related Risks & Opportunities

Physical Risks

• Windstorms, floods, wildfires, droughts, temperature fluctuations

Transition Risks

• Increase in credit costs for sectors with high levels of GHG emissions

Opportunities

• Increased revenues resulting from increased demand for products and services related to the transition to a low-carbon society

Reporting Standards

Frameworks Used: TCFD, NGFS, PCAF

Certifications: ISO 14064-3

Sustainable Products & Innovation

• Sustainability Linked Loans
• Transition-linked loans

Environmental Metrics

ESG Focus Areas

• Climate Change
• Natural Capital
• Human Rights

Environmental Achievements

• Steady progress in clients’ response to transition risk through engagement
• Completed initial sector-specific target setting in accordance with NZBA guidelines by adding new targets for steel and real estate sectors
• Switching to renewable energy expected to achieve -60％ in FY 2023 from FY2020
• Expanded the scope of emissions measurement from seven group companies to consolidated subsidiaries
• Expanded the scope of third-party assurance from BK (Japan) to seven group companies

Social Achievements

• Expanded the scope of ES Policy to various human rights issues
• Reviewed policies on specific sectors (Woody biomass power generation, Mining, Fisheries & Aquaculture, Weapons and arms, Coal-fired power generation)
• Added specific sectors to the ES Policy
• Joined the “Engagement and Remedy Platform” operated by JaCER and enhanced grievance mechanisms

Governance Achievements

• Addition of evaluation criteria for “GHG emission reduction performance” and “alignment with 1.5 degree pathway” (FY2024)
• Revised ES Policy to strengthen our response to climate change, natural capital loss, and human rights issues
• Introduced a process to determine the priority of conducting enhanced due diligence for each incident based on the criteria including severity and likelihood, with the aim of preferentially addressing significant incidents

Climate Goals & Targets

Environmental Challenges

• Transition risk in carbon-related sectors
• Data limitations for calculating financed emissions
• Limited consistent corporate disclosure data

Mitigation Strategies

• Client engagement to support transition
• Sequential setting of FY2030 medium-term targets for Scope 3 (financed emissions) by taking account in each sector’s transition risk assessment, credit exposure, GHG emissions, feasibility, etc.
• Regularly confirm and update records of clients’ primary businesses through engagement
• Relying on data from external vendors with expert insight into the automotive sector and the maritime transport sector to calculate results
• Endeavoring to improve the accuracy of methods for collecting data and aggregating results in line with findings from engagement with clients, the development of our clients’ disclosures, and other factors

Supply Chain Management

Responsible Procurement

• Support for sustainable raw materials procurement
• Engagement with suppliers on GHG emission reduction

Climate-Related Risks & Opportunities

Transition Risks

• Increasing severity of climate change impacts
• Regulatory changes
• Market shifts

Opportunities

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

Reporting Standards

Frameworks Used: TCFD, NZBA, PCAF, GRI, SBTi

Awards & Recognition

• Best Market Maker status from Tokyo Stock Exchange’s carbon credit market