Mizuho and the Equator Principles

Mizuho Bank (formerly Mizuho Corporate Bank) recognized early that the Equator Principles would become a new global standard in international financing for environmental and social risk management of large–scale projects and therefore within six months of their inception in June 2003, Mizuho Bank became the first Asian bank to adopt the Equator Principles in October 2003. Since then, Mizuho Bank has been conducting environmental and social risk assessments based on the Equator Principles and has also been proactively undertaking initiatives to promote them and raise awareness regarding environmental and social risk impacts among businesses and other related parties, including the borrowers. Through these activities, Mizuho Bank has contributed to balanced economic development via financing and environmental preservation, and, thus, fulfilled its social responsibility as a financial institution.

Since the adoption of the Equator Principles in October 2003, Mizuho Bank has played a leadership role in the Equator Principles Limited (formerly the Equator Principles Association) as a member of the Steering Committee for many years. Mizuho Bank also led the Equator Principles Limited as its Chair, thus becoming the only Asian bank to chair the association. Mizuho Bank has also held the role of Asia Oceania Regional Representative for four consecutive years.

Chronicle: Initiatives for the Equator Principles

Jun 2003 The Equator Principles were established.
Oct 2003 Mizuho Bank (former Mizuho Corporate Bank) adopted the Equator Principles.
Jul 2006 The Equator Principles were revised, and the second revision of Equator Principles became effective.
Nov 2006 Assumed duties as Secretariat Bank for the Equator Principles Financial Institutions until July 2008.
Jun 2007 Presented with the Chairman's Award of the 2007 Sustainable Banking Awards.
Aug 2010 Assumed the role of the Leader of the Equator Principles Asia Outreach Working Group
Jun 2013 The Equator Principles were revised, and the third revision of Equator Principles became effective.
May 2014 Assumed the role of the Chair Bank of Equator Principles Limited until May 2015.
Oct 2017 Assumed the role of the Regional Representative of the Equator Principles in Asia-Oceania region until November 2019.
Nov 2019 Re-elected as the Regional Representative of the Equator Principles in Asia-Oceania region until November 2021
Nov 2019 The Equator Principles were revised, and the fourth revision of Equator Principles were adopted.
Jul 2020 Started applying the fourth revision of Equator Principles
Mar 2021 Assumed the role of the Lead of the EP4 Reference Working Group until November 2021

Implementation System for the Equator Principles

Mizuho Bank has created the Sustainable Development Office in its Sustainable Products Promotion Department. The Sustainable Development Office is responsible for the bank's overall implementation of the Equator Principles.

The Sustainable Development Office applies the Mizuho's in-house Equator Principles Implementation Manual to all its projects globally, which are under the scope of the Equator Principles. The Sustainable Development Office also endeavors to promote internal understanding of the Equator Principles through in–house training and via the distribution of in–house newsletters etc.

General Process and Internal Procedures for the Equator Principles Implementation

For a project that falls under the scope of the Equator Principles the business promotion division officer first prepares an "Equator Principles (EP) Screening Form", which is a simplified checklist. The Sustainable Development Office then reviews the EP Screening Form and categorizes the proposed project into A, B or C based on the magnitude of the potential environmental and social impacts. Also, the Sustainable Development Office prepares a recommendation in documents such as "EP Screening Report", to inform the business promotion division officer the necessary actions that the client shall take to comply with the environmental and social requirements. The business promotion division officer then supports the client as recommended by the Sustainable Development Office. In addition, the Sustainable Development Office ensures that the relevant environmental and social covenants are included in the loan documentation.

For a project in which Mizuho Bank acts as a financial advisor, the Sustainable Development Office supports the clients by advising them on identifying potential issues under environmental and social reviews by Equator Principles Financial Institutions.

Application of the Equator Principles at Each Stage of Finance (Image)

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Internal Procedures

  1. The business promotion division officer prepares an "EP Screening Form", which is a simplified environmental and social risk assessment checklist and submits it to the Sustainable Development Office.
  2. The Sustainable Development Office reviews the "EP Screening Form", conducts the required due diligence and categorizes the project into A, B or C.
  3. The recommendation from the Sustainable Development Office (ex. "EP Screening Report", etc.) is submitted to the credit division together with the credit application prepared by the business promotion division. The credit division takes into account the potential environmental and social risks of the project to make a comprehensive determination of the risks specific to the project.
  4. After preliminary credit approval, the Sustainable Development Office confirms that the necessary Action Plan is in place and the covenants are set out in relevant financing documents. If additional action is required to make the project compliant with the Equator Principles, the Sustainable Development Office addresses to the Client through the business promotion division to conduct necessary actions.
  5. After confirming that the necessary steps have been taken by the Client, the business promotion division prepares an "EP Review Form" and submits to the Sustainable Development Office.
  6. The Sustainable Development Office confirms that the project is compliant with the Equator Principles and prepares an "EP Review Report".

 

Internal Equator Principles implementation flow

image

Disclosure subject to the Equator Principles 4

Closed Transactions screened for EP Compliance

Project Finance

By Category (Number of projects)
  A B C
Definition Projects with potential significant adverse environmental and social risks and/or impacts that are diverse, irreversible or unprecedented. Projects with potential limited adverse environmental and social risks and/or impacts that are few in number, generally site–specific, largely reversible and readily addressed through mitigation measures. Projects with minimal or no adverse environmental and social risks and/or impacts.
CY2024 (2024.1.1-2024.12.31) ✓ 3 36 19
CY2023 (2023.4.1-2023.12.31) ✓ 5 22 12
FY2022 ✓ 10 24 11

(Note)

  1. The figures above represent the number of projects Mizuho Bank applied the Equator Principles which reached Financial Close in FY2022, CY2023 and CY2024.
  2. Due to the consolidation of the reporting period by the Equator Principles Limited, the figures for CY2023 represent the number of projects which reached Financial Close from April 1, 2023 to December 31, 2023.
  3. The figures above with the "✓" have been assured by Ernst & Young ShinNihon LLC.
    FY2022 CY2023 CY2024

 

By Sector (number of projects)

CY2024 (2024.1.1-2024.12.31) ✓
Sector Category Total
A B C
Oil/Gas 1 2 0 3
Mining 0 0 0 0
Power 2 22 0 24
Infrastructure 0 6 19 25
Others 0 6 0 6
Total 3 36 19 58
CY2023 (2023.4.1-2023.12.31) ✓
Sector Category Total
A B C
Oil/Gas 1 0 0 1
Mining 0 0 0 0
Power 1 15 1 17
Infrastructure 0 4 9 13
Others 3 3 2 8
Total 5 22 12 39
FY2022 ✓
Sector Category Total
A B C
Oil/Gas 4 1 0 5
Mining 0 0 0 0
Power 4 18 1 23
Infrastructure 1 4 9 14
Others 1 1 1 3
Total 10 24 11 45

(Note)

  1. The figures above represent the number of projects Mizuho Bank applied the Equator Principles which reached Financial Close in FY2022, CY2023 and CY2024.
  2. Due to the consolidation of the reporting period by the Equator Principles Limited, the figures for CY2023 represent the number of projects which reached Financial Close from April 1, 2023 to December 31, 2023.
  3. The figures above with the "✓" have been assured by Ernst & Young ShinNihon LLC.
    FY2022 CY2023 CY2024

 

By Region, Country (Designated/ Non–designated), and Implementation of Independent Review by an Environmental and Social Consultant (Number of projects)

CY2024 (2024.1.1-2024.12.31) ✓
  Category Total
A B C
Americas 3 14 16 33
Asia Pacific 0 13 3 16
Europe/ Middle East/ Africa 0 9 0 9
Total 3 36 19 58
    Designated Country 3 30 19 52
    Non–Designated Country 0 6 0 6
  Independent Review Done 3 35 16 54
CY2023 (2023.4.1-2023.12.31) ✓
  Category Total
A B C
Americas 1 10 3 14
Asia Pacific 2 4 9 15
Europe/ Middle East/ Africa 2 8 0 10
Total 5 22 12 39
    Designated Country 1 14 11 26
    Non–Designated Country 4 8 1 13
  Independent Review Done 5 20 4 29
FY2022 ✓
  Category Total
A B C
Americas 7 7 2 16
Asia Pacific 1 14 9 24
Europe/ Middle East/ Africa 2 3 0 5
Total 10 24 11 45
    Designated Country 9 19 11 39
    Non–Designated Country 1 5 0 6
  Independent Review Done 10 24 1 35

(Note)

  1. The figures above represent the number of projects Mizuho Bank applied the Equator Principles which reached Financial Close in FY2022, CY2023 and CY2024.
  2. Due to the consolidation of the reporting period by the Equator Principles Limited, the figures for CY2023 represent the number of projects which reached Financial Close from April 1, 2023 to December 31, 2023.
  3. List of Designated Countries as defined by the Equator Principles Limited is published on the Equator Principles Limited website.
    The Equator Principles Limited Designated Countries list
  4. The figures above with the "✓" have been assured by Ernst & Young ShinNihon LLC.
    FY2022 CY2023 CY2024

 

Project–Related Corporate Loan

 

By Category (Number of projects)
  A B C
Definition Projects with potential significant adverse environmental and social risks and/or impacts that are diverse, irreversible or unprecedented. Projects with potential limited adverse environmental and social risks and/or impacts that are few in number, generally site–specific, largely reversible and readily addressed through mitigation measures. Projects with minimal or no adverse environmental and social risks and/or impacts.
CY2024 (2024.1.1-2024.12.31) ✓ 1 2 3
CY2023 (2023.4.1-2023.12.31) ✓ 1 1 1
FY2022 ✓ 0 6 9

(Note)

  1. The figures above represent the number of projects Mizuho Bank applied the Equator Principles which reached Financial Close in FY2022, CY2023 and CY2024.
  2. Due to the consolidation of the reporting period by the Equator Principles Limited, the figures for CY2023 represent the number of projects which reached Financial Close from April 1, 2023 to December 31, 2023.
  3. The figures above with the "✓" have been assured by Ernst & Young ShinNihon LLC.
    FY2022 CY2023 CY2024

 

By Sector (Number of projects)

CY2024 (2024.1.1-2024.12.31) ✓
Sector Category Total
A B C
Oil/Gas 0 0 0 0
Mining 1 0 0 1
Power 0 1 0 1
Infrastructure 0 0 2 2
Others 0 1 1 2
Total 1 2 3 6
CY2023 (2023.4.1-2023.12.31) ✓
Sector Category Total
A B C
Oil/Gas 0 0 0 0
Mining 0 0 0 0
Power 0 0 0 0
Infrastructure 0 0 0 0
Others 1 1 1 3
Total 1 1 1 3
FY2022 ✓
Sector Category Total
A B C
Oil/Gas 0 0 0 0
Mining 0 0 0 0
Power 0 4 0 4
Infrastructure 0 0 6 6
Others 0 2 3 5
Total 0 6 9 15

(Note)

  1. The figures above represent the number of projects Mizuho Bank applied the Equator Principles which reached Financial Close in FY2022, CY2023 and CY2024.
  2. Due to the consolidation of the reporting period by the Equator Principles Limited, the figures for CY2023 represent the number of projects which reached Financial Close from April 1, 2023 to December 31, 2023.
  3. The figures above with the "✓" have been assured by Ernst & Young ShinNihon LLC.
    FY2022 CY2023 CY2024

 

By Region, Country (Designated/ Non–designated), and Implementation of Independent Review by an Environmental and Social Consultant (Number of projects)

CY2024 (2024.1.1-2024.12.31) ✓
  Category Total
A B C
Americas 0 0 0 0
Asia Pacific 0 1 3 4
Europe/ Middle East/ Africa 1 1 0 2
Total 1 2 3 6
    Designated Country 1 2 2 5
    Non–Designated Country 0 0 1 1
  Independent Review Done 1 0 1 2
CY2023 (2023.4.1-2023.12.31) ✓
  Category Total
A B C
Americas 0 0 0 0
Asia Pacific 1 1 1 3
Europe/ Middle East/ Africa 0 0 0 0
Total 1 1 1 3
    Designated Country 0 0 1 1
    Non–Designated Country 1 1 0 2
  Independent Review Done 1 1 0 2
FY2022 ✓
  Category Total
A B C
Americas 0 1 1 2
Asia Pacific 0 5 8 13
Europe/ Middle East/ Africa 0 0 0 0
Total 0 6 9 15
    Designated Country 0 4 8 12
    Non–Designated Country 0 2 1 3
  Independent Review Done 0 2 0 2

(Note)

  1. The figures above represent the number of projects Mizuho Bank applied the Equator Principles which reached Financial Close in FY2022, CY2023 and CY2024.
  2. Due to the consolidation of the reporting period by the Equator Principles Limited, the figures for CY2023 represent the number of projects which reached Financial Close from April 1, 2023 to December 31, 2023.
  3. List of Designated Countries as defined by the Equator Principles Limited is published on the Equator Principles Limited website.
    The Equator Principles Limited Designated Countries list
  4. The figures above with the "✓" have been assured by Ernst & Young ShinNihon LLC.
    FY2022 CY2023 CY2024

 

Project-Related Refinance and Project-Related Acquisition Finance

By Sector (Number of projects)

CY2024 (2024.1.1-2024.12.31) ✓
Sector Project-Related
Refinance
Project-Related Acquisition
Finance
Oil/Gas 0 0
Mining 0 0
Power 1 0
Infrastructure 0 0
Others 0 0
Total 1 0
CY2023 (2023.4.1-2023.12.31) ✓
Sector Project-Related
Refinance
Project-Related Acquisition
Finance
Oil/Gas 0 0
Mining 0 0
Power 0 0
Infrastructure 0 0
Others 0 0
Total 0 0
FY2022 ✓
Sector Project-Related
Refinance
Project-Related Acquisition
Finance
Oil/Gas 0 0
Mining 0 0
Power 0 0
Infrastructure 0 0
Others 0 0
Total 0 0

(Note)

  1. The figures above represent the number of projects Mizuho Bank applied the Equator Principles which reached Financial Close in FY2022, CY2023 and CY2024.
  2. Due to the consolidation of the reporting period by the Equator Principles Limited, the figures for CY2023 represent the number of projects which reached Financial Close from April 1, 2023 to December 31, 2023.
  3. The figures above with the "✓" have been assured by Ernst & Young ShinNihon LLC.
    FY2022 CY2023 CY2024

 

By Region and Country (Designated/ Non–designated) (Number of projects)

CY2024 (2024.1.1-2024.12.31) ✓
  Project-Related
Refinance
Project-Related
Acquisition Finance
Americas 0 0
Asia Pacific 1 0
Europe/ Middle East/ Africa 0 0
Total 1 0
    Designated Country 0 0
    Non-Designated Country 1 0
CY2023 (2023.4.1-2023.12.31) ✓
  Project-Related
Refinance
Project-Related
Acquisition Finance
Americas 0 0
Asia Pacific 0 0
Europe/ Middle East/ Africa 0 0
Total 0 0
    Designated Country 0 0
    Non-Designated Country 0 0
FY2022 ✓
  Project-Related
Refinance
Project-Related
Acquisition Finance
Americas 0 0
Asia Pacific 0 0
Europe/ Middle East/ Africa 0 0
Total 0 0
    Designated Country 0 0
    Non-Designated Country 0 0

(Note)

  1. The figures above represent the number of projects Mizuho Bank applied the Equator Principles which reached Financial Close in FY2022, CY2023 and CY2024.
  2. Due to the consolidation of the reporting period by the Equator Principles Limited, the figures for CY2023 represent the number of projects which reached Financial Close from April 1, 2023 to December 31, 2023.
  3. List of Designated Countries as defined by the Equator Principles Limited is published on the Equator Principles Limited website.
    The Equator Principles Limited Designated Countries list
  4. The figures above with the "✓" have been assured by Ernst & Young ShinNihon LLC.
    FY2022 CY2023 CY2024

 

Project Finance Advisory Services

By Sector (Number of projects)
Sector FY2022
CY2023 (2023.4.1-2023.12.31)
CY2024 (2024.1.1-2024.12.31)
Oil/Gas 0 1 2
Mining 0 0 0
Power 1 4 1
Infrastructure 1 2 1
Others 0 0 2
Total 2 7 6

(Note)

  1. The figures above represent the number of projects for which Mizuho Bank had entered Project Finance Advisory Service contract in FY2022, CY2023 and CY2024.
  2. Due to the consolidation of the reporting period by the Equator Principles Limited, the figures for CY2023 represent the number of projects which Mizuho Bank had entered Project Finance Advisory Service contract from April 1, 2023 to December 31, 2023.
  3. The figures above with the "✓" have been assured by Ernst & Young ShinNihon LLC.
    FY2022 CY2023 CY2024

 

By Region (Number of projects)
Region FY2022
CY2023 (2023.4.1-2023.12.31)
CY2024 (2024.1.1-2024.12.31)
Americas 1 2 1
Asia Pacific 1 5 5
Europe/ Middle East/ Africa 0 0 0
Total 2 7 6

(Note)

  1. The figures above represent the number of projects for which Mizuho Bank had entered Project Finance Advisory Service contract in FY2022, CY2023 and CY2024.
  2. Due to the consolidation of the reporting period by the Equator Principles Limited, the figures for CY2023 represent the number of projects which Mizuho Bank had entered Project Finance Advisory Service contract from April 1, 2023 to December 31 2023.
  3. The figures above with the "✓" have been assured by Ernst & Young ShinNihon LLC.
    FY2022 CY2023 CY2024

 

CY2024 Ernst & Young ShinNihon LLC Independent Assurance Report (PDF/176KB)

CY2023 Ernst & Young ShinNihon LLC Independent Assurance Report (PDF/43KB)

FY2022 Ernst & Young ShinNihon LLC Independent Assurance Report (PDF/84KB)

 

Project Name Reporting Sample - Project Finance

Sample of EP applicable Project Finance Transactions that reached Financial Close in CY2024
No. Project Name Country
1 Abukuma Minami WIND FARM PROJECT Japan
2 Honmoku 1 Project Japan
3 Collie Battery Australia
4 FRV Portfolio Refinancing Australia
5 Golden Plains Wind Farm Stage 2 Australia
6 Goyder South Stage 1 and Blyth Battery Australia
7 Orana BESS Australia
8 Uungula Wind Farm Australia
9 Warradarge Wind Farm Expansion Australia
10 Wattle 2 Australia
11 Cedar Link Project Canada
12 Cedar LNG Canada
13 NextStar Energy Inc. JV Debt Financing Canada
14 Aconcagua Project Chile
15 Verkor Dunkerque Battery Gigafactory Project France
16 Hanseatic Energy Hub GmbH Germany
17 ARE57L (1200 MW Solar) India
18 ReNew Surya Aayan Private Limited - 300 MW India
19 Project Oak Ireland
20 Mayakan Pipeline Project Mexico
21 Kowhai Park Solar Farm New Zealand
22 PIF 4: Buraiq Renewable Energy Company Saudi Arabia
23 PIF 4: Moya Renewable Energy Company Saudi Arabia
24 PIF 4: Nabah Renewable Energy Company Saudi Arabia
25 The development of two natural gas-fired power plants at Immingham, North Lincolnshire UK
26 2024 Matterhorn Pipeline Expansion USA
27 Bellefield 2 Solar and Storage USA
28 Boomerang USA
29 Coastal Virginia Offshore Wind Project USA
30 Modera Bridle Trails USA
31 Pelicans Jaw USA
32 Pleasant Valley Solar USA
33 Project Bauxite USA
34 Project Mallard USA
35 Revolution Wind USA
36 Vistra - Project Zero USA

Project Name Reporting Sample – Project-Related Corporate Loan

Sample of EP applicable Project-Related Corporate Loan Transactions that reached Financial Close in CY2024
No. Project Name Country
1 Shiroishi Kosugo WIND FARM Japan
2 Keliber Project Finland
3 Project Lightsaber Malaysia

Initiatives for the Equator Principles

Leadership as a Member of the Steering Committee

During the revision of the Equator Principles in 2013 and 2020, Mizuho Bank as a member of the Equator Principles Limited Steering Committee, took part in various Task Forces such as scope expansion, information disclosure, and climate change, and contributed to finalizing the revised Equator Principles.

Mizuho Bank also participates together with other Equator Principles members in various working groups to help define policies and guidance for the larger group in these important areas of interest.

Management and Future Development of the Equator Principles Limited

Mizuho as the Chair Bank (2014 to 2015)

From May 2014, Mizuho Bank assumed the role of the Chair of the Equator Principles Limited and played a leadership role by leading the discussions and decisions affecting the operational policies and organizational management of the Limited. At the annual meeting of the Limited on October 28, 2014, Mizuho Bank led the other member institutions in discussions regarding climate change, biodiversity, the protection of human rights, capacity building and training among the Limited members.

photo                              photo

Accepting Trainees

With many years of experience as the Chair and as the Regional Representative of the Equator Principles Limited in the Asia-Oceania region, Mizuho Bank has also worked proactively to enhance the understanding of the Equator Principles by accepting trainees from financial institutions in Asia.

  • June 2009: China / Industrial Bank Co., Ltd.
  • May 2015: Taiwan / Cathay United Bank Co.
  • December 2016, January 2017: Japan / The Norinchukin Bank
  • May 2017: South Korea / Korea Development Bank
  • February 2019: Japan / Nippon Life Insurance Company
  • August 2019: South Korea / Shinhan Bank


During the training, the trainees received an opportunity to learn about the implementation of the Equator Principles together with practical case studies.

Publication of "Implementation Guidelines for the Equator Principles"

Mizuho Bank together with MUFG Bank (formerly Bank of Tokyo Mitsubishi UFJ) and Sumitomo Mitsui Banking Corporation published a book on implementation guidelines for the Equator Principles on March 15, 2016. This book not only covers the details of all the ten constituent principles of the Equator Principles framework and their practical implementation by the author banks, but it also provides details on some of the prominent environmental and social risk management guidelines other than the Equator Principles that are commonly referred by the financial institutions. Mizuho Bank believes that the publication of this book will help promote awareness regarding the Equator Principles and other significant environmental and social risk management guidelines and frameworks and will enhance knowledge sharing among the various industries and financial institutions in Japan.

photo

Seminar for Japan Society for Impact Assessment (JSIA)

On March 26, 2021, Mizuho Bank organized a seminar about the Equator Principles 4, at the Japan Society for Impact Assessment (JSIA)'s regular meeting.

Seminars held for Stakeholders

Mizuho Bank has been promoting the understanding of the Equator Principles by holding seminars not only for private financial institutions but also for other stakeholders, including government organizations and private businesses.

Fiscal Year Country/Region Participants Number of Participants
FY2020-FY2024 Japan Private financial institutions, private businesses, authorized corporation, academic society, university professors/students 74

(Note)

  1. The number of participants above include approximate numbers.

Internal Training Sessions for Employees

Mizuho Bank conducts regular training sessions for its employees on environmental and social risk assessments and Equator Principles requirements involved in large–scale project financing. During fiscal years from 2020 to 2024, these training sessions were attended by approximately 7,200 employees.

Fiscal Year Country/Region Number of Participants
2024 Japan 62
Singapore 20
2023 Japan 38
USA 13
2022 Japan 45
2021 Japan 175
Hong Kong 25
Singapore 65
Australia 15
Vietnam 5
Thailand 20
Indonesia 20
USA 95
United Kingdom 85
UAE 15
2020 Japan 3,478
Hong Kong 253
Singapore 583
Australia 71
Vietnam 92
Thailand 144
Indonesia 95
Malaysia 31
South Korea 82
Myanmar 21
USA 150
Canada 28
United Kingdom 276
UAE 20
Germany 64
Italy 10
France 29
Netherlands 16
Spain 3
Belgium 6
Russia 33
Austria 4
Mexico 11
Philippines 22
Brazil 33
India 170
Taiwan 105
China 682

(Note)

  1. The number of participants above include approximate numbers.
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