Project Details
Project
Mizuho Financial Group, Inc. Green Bond Framework Second-Party Opinion (2023)
Client
Mizuho Financial Group, Inc.
Project Type
Green Bond/Loan
Industry Group
Banks
Use of Proceeds
Renewable energy; Pollution prevention and control; Clean transport; Green buildings; Energy efficiency; Water/waste water management; Natural resources/land use management; Conservation;
Location
Japan
Evaluation Date
Feb 2023
Evaluation Summary
Sustainalytics is of the opinion that the Mizuho Financial Group, Inc. Green Bond Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds – Renewable Energy, Pollution Prevention and Control, Clean Transportation, Green Buildings, Energy Efficiency, Sustainable Water and Wastewater Management, Environmentally Sustainable Management of Living Natural Resources and Land Use, and Terrestrial and Aquatic Biodiversity Conservation – are aligned with those recognized by the Green Bond Principles. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDG 6, 7, 9, 11, 12, 14 and 15.
PROJECT EVALUATION AND SELECTION
Mizuho Financial Group, Inc.’s Global Markets Coordination Department and Financial Planning Department will be responsible for evaluating and selecting eligible projects, in cooperation with various department members such as Mizuho Bank, Ltd.’s Real Estate Finance Department, Project Finance Department and Syndication Department, and Mizuho Financial Group, Inc.’s Global Products Coordination Department. The final allocation decision will be made by Head of Global Markets Company or by CFO. Mizuho Financial Group, Inc. has in place environmental and social risk management processes that are applicable to all allocation decisions made under the Framework. Sustainalytics considers these risk management systems to be adequate and the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Mizuho Financial Group, Inc. will track the proceeds in Mizuho Bank, Ltd.’s internal loan data system on an annual basis. Mizuho Bank, Ltd. will allocate an equivalent amount of the green bond net proceeds to Eligible Green Projects. Pending allocation, the net proceeds will be held in overnight or short-term financial instruments. This is in line with market practice.
REPORTING
Mizuho Financial Group, Inc. intends to provide allocation and environmental impact reporting annually on its website until full allocation and as necessary thereafter in the event of new developments. Allocation report will include the amount of allocated and unallocated proceeds along with other information such as brief description of the eligible projects. Impact reporting will provide, to the extent practicable, quantitative and qualitative indicators by eligible categories. This is in line with market practice.