Addressing Social and Environmental Risks
The basic code of conduct for all of our officers and employees engaged in the credit business is set forth in our credit code. Seeking to fulfill the bank's public and social role, our basic policy for credit business is determined in light of fundamental principles focusing on public welfare, safety, growth, and profitability.
Mizuho focuses on managing environmental and social risks related to project financing based on the Equator Principles, clarifies and creates procedures for its policy of not providing financing for the manufacture of cluster bombs and other weapons strictly used for mass killing and destruction, and takes into consideration environmental risks, providing collateral assessments as needed.
Social and Environmental Risk Management with Respect to Finance
Mizuho Bank recognizes that large–scale development projects may have adverse impacts on the environment and local communities. To minimize and/or mitigate the environmental and social risks associated with such large–scale developments, MHBK, in collaboration with the project proponents (customers), conducts appropriate environmental and social risks assessment/due–diligence as required under Equator Principles*.
- *The Equator Principles are a set of voluntary guidelines adopted by private financial institutions to ensure that large–scale development or construction projects appropriately consider the associated potential impacts on the natural environment and the affected communities.
In addition to the above, when providing finance for projects under the Interest subsidy program by Japan's Ministry of Environment for promoting projects conducting environmental impact assessment, regardless of Equator Principles applicability, Mizuho Bank is responsible for conducting appropriate environmental due diligence utilizing their environmental and social risks assessment knowledge.
Initiatives for the Convention on Cluster Munitions and Other Weapons
From the perspectives of preserving public order and morals, social justice, and humanity, MHBK has established a clear policy and procedures for avoiding provision of financing for manufacturing weapons that are to be used for killing and inflicting damage, including cluster munitions.
Assessments of Environmental Risk related to Real Estate Collateral
To deal with environmental risk in real estate, including pollution of the soil, usage of asbestos, and other issues related to real estate collateral, Mizuho implements assessments of environmental risk when certain established conditions apply. When risks are judged to be above a specified level, the amount corresponding to the assessed risk is deducted.