Mizuho's Approach to Achieving Net Zero by 2050
Climate change is one of the most important global issues, and it cannot be addressed unless all countries and all stakeholders make efforts to reach the same targets. It is necessary that responses to climate change be based on the best available science, including the expertise of the Intergovernmental Panel on Climate Change (IPCC).
Mizuho recognizes that the impact of climate change would be much less if the global temperature were to increase by 1.5°C instead of 2°C. We believe that the next ten years will be crucial in terms of limiting the rise in temperature to the 1.5°C target. This is why we are pursuing efforts to limit the temperature increase to this amount. As part of such efforts, Mizuho is aiming to become carbon neutral for Scope 1 and 2 greenhouse gas (GHG) emissions by FY2030, and to reduce Scope 3 GHG emissions produced via our finance portfolio to net zero by 2050.
We recognize that abrupt, disorderly changes can have severe economic and societal impacts. Accordingly, at Mizuho, we are aiming for an orderly, just transition.
At Mizuho, we recognize the importance of the role financial institutions play in achieving a net–zero real economy. Financial institutions should support clients' climate change countermeasures and the transition to a low–carbon society. This support should be grounded in an understanding that the transition process will differ by location and industry type. In order for us to fulfil our role as a financial institution, Mizuho conducts engagement with clients and requests that they share their transition strategies. Through this client engagement, we confirm the status of our clients' transition strategies and provide clients with support that facilitates the execution of said strategies. If a client shows no progress towards strategy execution despite multiple efforts to engage them to do so, we carefully consider whether or not to continue our business with them.
The road to net zero will vary by business location and industry type. Strong national leadership with effective policies and the establishment of next–generation technology are essential in speeding up the transition towards net–zero emissions. At present, there is a gap between, on the one hand, current commitments, government policy, and technology, and on the other hand, the road to limiting the global temperature increase to 1.5°C. At Mizuho, we believe we must work together with stakeholders to bridge this gap. Mizuho supports government policy aimed at an orderly transition in the jurisdictions where we operate. We do this through our business activities across regions and economies, industry groups, and initiatives. We also proactively support the development and application of innovative, clean, next–generation technology.
Further, Mizuho is continually enhancing our climate risk management for the purpose of stabilizing financial markets. In these ways, we are contributing to the achievement of a low–carbon society and the development of a climate change–resilient society by 2050.