Mizuho Financial Group [8411:JP] has developed a framework to verify the credibility and transparency of clients’ transition strategies, with an aim to “more proactively supply the necessary financing for the clients’ business structure transformation”, as reported by ESG Today on January 3. The framework is among a range of initiatives Mizuho recently announced to support its climate target of achieving net-zero emissions from financing and investment by 2050. For instance, it drew up new mid-term targets to reduce greenhouse gas (GHG) emissions from its finance portfolio by 2030, including specific targets for the oil, gas, and thermal coal mining sectors. In addition, it planned to allocate JPY12tr (USD85bn) for environmental finance between 2019 and 2030.

Mizuho has started implementing the verification framework for its clients in high-risk areas, namely those from carbon-intensive sectors. Mizuho pledged to proactively provide financing for those clients whose transition strategies align with its internal verification process. While this may increase Mizuho’s exposure in high-risk areas, the company believes helping clients in designing and executing their transition strategies allows it to properly manage transition risk and mitigate its medium- and long-term transition risk. Furthermore, Mizuho vowed to keep reinforcing this framework to reflect external trends and other factors, with a plan to include more clients in the framework.

Sources:

https://www.esgtoday.com/mizuho-launches-framework-to-assess-credibility-of-client-climate-transition-strategies/

https://www.esgtoday.com/mizuho-launches-framework-to-assess-credibility-of-client-climate-transition-strategies/