Carbon Accounting Based on PCAF
Carbon accounting is the evaluation of business activity by calculating and tallying how much carbon dioxide (CO2) they produce, as well as the degree to which business activities contribute to reducing CO2 emissions. As an initiative to address climate change, Mizuho Bank developed its own carbon accounting methodology to measure CO2 emissions by power generation projects it has financed. We began disclosing the results of our evaluations in fiscal 2006. We disclose the further reliable and transparent information by utilizing the concept of PCAF, one of international initiatives, since fiscal 2020. We are utilizing these results as information for future management to support the movement toward a decarbonized society.
Carbon accounting overview
What is PCAF?
It means Partnership for Carbon Accounting Financials, a framework for financial institutions to calculate consistently GHG emissions derived by businesses that they invest and/or finance.
(https://carbonaccountingfinancials.com/)
We have applied our own carbon accounting to new large–scale power generation projects for which financial agreements were signed in the respective fiscal year until fiscal 2019. We disclose the information against project finance for power generation projects based on PCAF concept since fiscal 2020.
CO2 emissions
We calculate the CO2 emission based on the below formula described under PCAF Guidance.
Financed Emissions of Power Sector Portfolio ＝ Σ (Annual Power Generation × Sectorial Emission Factor × Mizuho Attribution Factor)
CO2 emission reductions
We adopt the concept of Avoided Emissions under PCAF Guidance. We use the emission factors of fossil fuels that are consumed to generate the biggest electricity in the region that the project is located, and calculate CO2 emission reductions contributed by the renewable power projects that Mizuho finance. Mizuho’s contribution ratio means the above Mizuho’s Attribution Factor in line with PCAF Guidance.
Results of Evaluations
Results based on Mizuho's own approach
| Unit | FY 2016 | FY 2017 | FY 2018 | FY 2019 | |
| Contribution to CO2 Emissions of newly signed Power Projects in each FY | kton CO2 | 4,132 | 1,559 | 2,807 | 2,679 |
Results based on PCAF
| Unit | FY 2020 | FY 2021 | FY 2022 | |
| Financed Emissions of Power Sector Portfolio | kton CO2 | 8,901 | 8,627 | 8,765 |
| Unit | FY 2020 | FY 2021 | FY 2022 | |
| Contribution to CO2 Avoided Emissions of Power Sector Portfolio | kton CO2 | 4,349 | 4,688 | 4,871 |