Mizuho reports 60% emissions cut, allocates $195b for sustainable finance

The bank now employs 1,650 sustainability management experts.

Mizuho Bank has cumulatively allotted over $195.09b (JPY31t) for sustainable finance between FY2019 to FY2023.

Of this, $88.1b (JPY14t) were allotted for environment and climate-related finance, the bank said in its latest Climate & Nature-related report, published in June 2024.

Mizuho particularly highlighted its position as the top Japanese bank globally when it comes to sustainable finance loans extended and also for publicly offered sustainable development goals (SDG) bonds, according to data for Capital Eye.

Mizuho Bank said that it now employs 1,650 so-called “sustainability management experts” as of March 2024, and 140 “environmental and energy sector consultants.”

The bank also gave an update on its emissions targets, saying that it has reduced its own emissions by 60% in FY2023 compared to FY2020 levels.

In terms of its clients, Mizuho revealed that it is in dialogue with approximately 900 client firms for its Environmental and Social Management Policy for Financing and Investment Activity.

Mizuho also added new criteria to evaluations of clients’ transition risk responses, and now measures actual GHG emission reductions and consistency of targets/ results with a 1.5 degree celsius scenario. The new criteria came into effect in FY2024.

New targets were set for four sectors in 2023 and 2024, notably automotive, maritime transport, steel, and real estate. The bank has also expanded scope of measurement for financed emissions, particularly in residential loans; and began measuring facilitated emissions for the first time in FY2023.

Mizuho Bank also stated that it has completed initial sector-specific target setting based on the Net Zero Banking Alliance (NZBA) guidelines.

A recent sustainability-related activity by Mizuho is its memorandum of understanding with Lombard Odier.