Climate-related Risk Management

Basic Approach

The Mizuho Financial Group defines climate–related risk as "the risk of suffering tangible or intangible losses when transition risk and physical risk arising from climate change manifest or amplify various other risks." Transition risk refers to "risk caused by changes in the business environment with the transition to a decarbonized society," and physical risk refers to "risk caused by changes in the physical impact accompanying climate change."

The Mizuho Financial Group oversees the group's climate–related risk management. Specifically, we set the basic policy regarding climate–related risk management for the entire group and manage the core group companies.

We continuously enhance our ability to predict various changes related to climate change, pay attention to the potential impact of climate change, and manage climate–related risk from short–term and middle– to long–term perspectives. Also, to respond to the high expectations and demands of wide–ranging stakeholders, we conduct appropriate risk management based on the Mizuho Code of Conduct, Environmental Policy, and Basic Policy on Sustainability Initiatives.

Climate-related Risk Management Structure

Our Board of Directors determines the Mizuho group's basic matters pertaining to climate–related risk management. The Risk Management Committee of Mizuho Financial Group broadly discusses and coordinates matters relating to basic policies in connection with climate–related risk management, climate–related risk operations, and climate–related risk monitoring. The Group CRO is responsible for matters pertaining to the planning and operation of climate–related risk management. The Risk Management Department is responsible for the unitary grasping of climate–related risk, and conducts and advances basic planning regarding climate–related risk. Each office responsible for risk management grasps where the climate–related risk it is responsible for exists and the scale of its impact in a timely manner and responds appropriately.

The climate–related risk conditions are compiled by the Risk Management Department and reported by the Group CRO to the Board of Directors and the Executive Management Committee, etc. each time. The Mizuho Financial Group manages the conditions of the group's overall climate–related risk through reports on climate–related risk management from each core group company each time. In particular, individual companies which account for a large part of the group's climate–related risk set their own basic policies, similar to the Mizuho Financial Group itself, and the board of directors of the individual company determines important matters pertaining to climate–related risk management.

Climate-related Risk Management Method

As the climate–related risk management method, we assess the importance of the grasped climate–related risks based on their impact and likelihood, and manage and respond appropriately as needed to highly important climate–related risks both qualitatively and quantitatively.