Head on this page.

Mizuho and its Involvement with the Equator Principles

Print this page

Applying the Equator Principles to Large–scale Project Finance

There is a growing interest among stakeholders regarding how banks address environmental and social considerations as a part of project finance operations for large–scale development efforts.

MHBK became the first Asian bank to adopt the Equator Principles in 2003 and has since addressed regional environmental and social issues tied to funded projects in compliance with these principles. MHBK served as Secretariat Bank for the Equator Principles Financial Institutions from November 2006 to July 2008, and from 2010 played a leading role in the organization's activities as a member of the Steering Committee.

In an effort to increase the reliability of disclosures, MHBK from FY2012 secured third–party verification* of the number of projects shown on the company's website as screened based on the Equator Principles.

  • *Refers to verification of the number of projects listed on the Mizuho website as screened based on the Equator Principles (broken down by category, sector, and region).

Mizuho and the Equator Principles

Revision of the Equator Principles

It has been 10 years since the launch of the Equator Principles, and there are increasingly strong calls from society at large for companies to actively address environmental and social concerns, including, first and foremost, climate change. We believe such an environment calls for a stepped–up approach to the Equator Principles, and, to meet the demands of society, the Equator Principles Association in June 2013 revised the Equator Principles.

There were two key revisions, one of which is an expansion in scope. Prior to revision, the Equator Principles were applied to project finance with total capital costs of USD 10 million or more. However, after the revisions, corporate loans and bridge loans tied to large–scale project financing would also fall under the scope of the Equator Principles.

The second point concerns the strengthening of information disclosure regulations. Prior to revision, financial institutions participating in projects falling under the scope of the Equator Principles required the client to submit environmental and social impact assessment reports to them. Following the revisions, the client will be requested to post such information on a website so that it may be easily viewed by any interested parties.

Increasing Consideration of Biodiversity

In countries around the world, the movement over the last several years to develop and strengthen legal systems for the conservation of biodiversity has been steadily gathering momentum, and companies in these countries are also being asked to participate. As an example, the European Commission in December 2011 announced the EU Biodiversity Strategy to 2020, which aims to propose by 2015 an initiative to ensure there is no net loss of ecosystems and their services. In addition, the International Finance Corporation (IFC), a member of the World Bank Group, has issued guidelines entitled "IFC Performance Standards," and these have been adopted by the Equator Principles Association. The biodiversity preservation provisions of these standards were strengthened in January 2012.

In response to these developments, MHBK joined as a proposed member with the Equator Principles Association, the International Petroleum Industry Environmental Conservation Association, and the International Council on Mining and Metals in February 2013 to establish the Cross Sector Biodiversity Initiative (CSBI), which will consider measures and strategies to reduce the impact of large–scale development projects on biodiversity.

MHBK in March 2010 joined the Business and Biodiversity Offsets Program (BBOP), an international initiative aimed at fostering a global framework for the creation of biodiversity offsets. Since joining as one of the first private financial institutions, the company, in the course of developing a framework, has been able to accumulate valuable know–how related to biodiversity offsets. Mizuho intends to leverage the know–how gained through these efforts, while continuing to foster with its customers a more comprehensive framework aimed at preserving biodiversity as part of its own investment activities.

Branches (Japan)

Branches (International)

Integrated Report

CSR Management

Fostering Industries with the Aim of Generating Business Opportunities

Corporate Information

Group Companies

Mizuho's Brand Strategy

It moves to the head on this page.
It moves to the head on this page.