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Dialogue FY2016

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Dialogue with Experts Aimed at Increasing Corporate Value through Integration of Management and CSR

On November 25, 2016, we held a dialogue with experts with the objective of obtaining hints about how to increase corporate value through the integration of management and CSR. The panel of experts who participated this time has provided us with their opinions on a continuing basis since fiscal 2014, and this marked our third dialogue with them.

First, to report the progress on the panel's opinions received in the past two dialogues, we explained Mizuho's New Medium–Term Business Plan that covers the three–year period beginning in fiscal 2016, its CSR Initiative Policy, and Mizuho's Integrated Report 2016. We then asked panel members for their assessment of our progress in these activities. Next, with the aim of further increasing corporate value, we asked the panel their opinions and expectations about which of our initiatives we should strengthen further.

Knowledgeable Persons (Panel of Experts)

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Mr.Takashi Nawa
Professor, Hitotsubashi University Graduate School of International Corporate Strategy

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Ms.Sachiko Kishimoto
Executive Director, Center for Public Resources Foundation

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Mr.Yoichi Mori
Certified Public Accountant and Member of the Framework Panel of the International Integrated Reporting Council (IIRC)

Facilitator

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Mr.Tomohiko Yamaguchi
Cre–en Inc.

Participants from Mizuho

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Koji Fujiwara
Managing Executive Officer (Group Chief Strategy Officer)

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Katsusuke Hirako
General Manager, Corporate Communications Department

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Kenji Tojo
Head of CSR Promotion Office, Corporate Communications Department

Progress Made to Date Based on the Opinions Expressed in the Two Previous Dialogues

Regarding the Development Process for Mizuho's Medium–Term Business Plan

  • With due concern for the implementation story and strategy pyramid, emphasis was placed on clarifying objectives through the use of key performance indicators (KPIs).
  • Taking a close look at history and taking account of environmental awareness today, we reconsidered the role Mizuho should play and considered Mizuho's objectives as a financial institution.
  • With "society" as one key word, we proceeded to discuss our views of Mizuho's presence in society.
  • Each in–house company formulated its strategies taking account of Mizuho's relationship with society.

Reflecting the Ideas of Experts in the New Medium–Term Business Plan and in Initiatives

  • Advocated attaining the objective of the new medium–term business plan, which is to become a "Financial Services Consulting Group–the most trusted partner in solving problems and supporting the sustainable growth of customers and communities."
  • Committed to working with our customers as a banking, trust banking, and securities that also provides asset management as well as research and consulting services.
  • Strengthened our emphasis on the "customer first" principle and, to become the financial group we aim to be, we became the first Japanese financial institution to adopt the "in–house company" system form of corporate organization. Also, we included customer assessments of Mizuho in the evaluation of company performance.
  • To become an institution that is indispensable and "one of a kind" to our customers and society, we began initiatives to pursue operational excellence.
  • We strengthened our initiatives to implement our major strategies in asset management business, giving high priority to stewardship and ESG investments.
  • Implemented drastic reforms in personnel management that place emphasis on respect for individuals.
  • Worked to further integrate banking, trust banking, and securities and stepped up activities to put the "Area One MIZUHO Promotion Project" into action and have each business base take initiatives to deal with issues in their respective region.
  • Set CSR targets (KPIs), including those for the main line of business.
  • Prepared the Integrated Report 2016 giving due regard to the perspective of "society."

Outline of the Dialogue

[Assessment of Progress]

Mr. Nawa
  • Dramatic progress has been made over the past year. In B to B also, inclusion of customer assessments in performance evaluation is commendable.
Ms. Kishimoto
  • Progress over the past year, including especially from the perspective of "society" that is mentioned in the new medium–term business plan, has made the direction of development clear. The inclusion of value provided to society by each in–house company in the integrated report is also noteworthy.
  • Progressed a step further in the disclosure of CSR targets in the main business.
Mr. Mori
  • In the integrated report preparation process, you took earnest initiatives taking into account external opinions, and the content was greatly improved.

[Principal Opinions Regarding Strengthening Initiatives Going Forward]

Strengthening the Process for Implementing Strategies from the Viewpoint of Society
Mr. Nawa
  • More effort is needed in developing the business model for processing information gathered from the frontlines level.
  • I am looking forward to seeing how you use governance and stewardship to create and increase corporate value.
Mr. Mori
  • It will be necessary to take account of global long–term trends in your strategy and strengthen systems for reflecting this in resource allocation and activities.
  • Your disclosure of strategy and progress by company is effective, but it will be important to make the content more substantial and specific.
Strengthening Initiatives to Deal with Climate Change and Other Global Issues and Setting CSR Objectives that Enable Us to Understand the Effects of Such Initiatives in Our Business as a Whole
Mr. Nawa
  • I think it will be good to put business related information in order from the perspective of the contribution to social issues and show how the ratio of businesses contributing to the solution of problems is increasing in the resulting trend. In addition, when setting goals in the core business, it will be better to ask the opinions of long–term investors.
Ms. Kishimoto
  • The information seems somewhat weak viewed from the perspectives of "environment" (climate change) and a "global" perspective. I think it would be ideal for you to show a vision of the climate change issue, showing what percentage of lending is outstanding to fossil fuel related activities, your objective for lowering this percentage, and progress toward your objective.
Disclosure to understand the Mizuho's Social Aspects as a Story
Mr. Nawa
  • Looking forward to an explanation of how various initiatives address issues of customers and society in the form of a story that integrates financial and non–financial information.
Ms. Kishimoto
  • Would like a clarification of your views regarding customer– and society–related issues and more specifics on the process by which Mizuho's business activities are helping to create the economies and societies of the future.
Mr. Mori
  • I would like to see a report that better integrates CSR and business strategy as well as the disclosure of the issues you addressed in formulating your strategy, the points that you discussed, and similar information.
Strengthening Global Brand Communication that Emphasizes the Social Perspective
Mr. Nawa
  • Communicating globally the special features of Mizuho as a company with roots in society would broaden the awareness in society of Mizuho as a "good company" and strengthen employee motivation.
Stronger Efforts Are Needed to Have Employees Understand the Background of Policies to Better Put These into Action
Mr. Mori
  • In the midst of major changes in the financial environment and in society, to create a strong organization, it will be important to promote a deeper understanding that leads to action, by communicating Mizuho's corporate message as well as making each and every member of management and all employees understand Mizuho's reason for being and the background of its policies.
Social Contribution Activities Appropriate for Mizuho
Mr. Nawa
  • More consideration should be given to the necessity for Mizuho to undertake initiatives.
Ms. Kishimoto
  • I am looking forward very much to the results of the Area One MIZUHO Promotion Project. Since the company's characteristics will be a continuing issue, it would be a good idea to think of a key word that characterizes what is appropriate for Mizuho.
Mr. Mori
  • The point should be to create value for both society and for Mizuho. For example, this might include initiatives that encourage a positive attitude toward money. I would like to see some sharp–edged activities like this.

[Taking Account of the Dialogue]

Taking account of the opinions and expectations discussed in the dialogue, Mizuho will be fully aware of the importance of awareness of the issues that were raised, work to gain full understanding internally, and move forward with activities to raise the sophistication of internal and external communication.