Kiko Network, as a Mizuho Financial Group (Mizuho FG) shareholder, filed a resolution on 13 March calling on Mizuho FG to disclose its climate risks, and publish a plan to ensure its investments align with the goal of the Paris Agreement.
This resolution is to be discussed at the Mizuho’s 18th shareholder meetings, which will be held in coming June.
About the proposal
It is proposed that the following provision be added to the Articles of incorporation:
Noting the company’s support for the Paris Agreement and the Task Force on Climate-related Financial Disclosures (TCFD), the company shall disclose in its annual reporting a plan outlining the company’s business strategy, including metrics and targets, to align its investments with the goals of the Paris Agreement.
Mizuho FG is one of the largest global lenders to coal developers. Although its current coal policy states that investment should be limited to coal-fired power plants using the ultra-supercritical (USC) technology, there are loopholes that allow Mizuhoto stay involved to projects like the Vung Ang 2 in Vietnam, while funding other project inside and outside of Japan.
Under the urgency of transition to “decarbonization” as response to the climate change – which makes a serious impact to the world – continuing to invest in coal related business not only exposes the company to risk of climate change, but also degrade corporate value and eventually increases risk to investors. To avoid those risks in the future, Kiko Network requires Mizuho FG to formulate and disclose management strategies, including benchmarks and targets for investing in line with the Paris Agreement.
In Europe and the United States, more and more financial institutions are withdrawing from or reducing a size of investment for coal related business. In Asia, DBS Bank and OCBC (Overseas Chinese Banking Corporation) in Singapore, UOB (United Overseas Bank) and others have announced that they withdraw their support for coal-fired power generations. It is obvious that Japan’s three mega-banks, including Mizuho FG, are completely behind the global “decarbonization” movement.
We will be watching the next movements of Mizuho FG as the respond to this resolution.
Link to the documents:
- PRESS RELEASE
Kiko Network, as Mizuho Financial Group shareholder, files first ever climate resolution in Japan
- The Proposal for Mizuho Financial Group（Proposal PDF)
- Investor Briefing | Shareholder resolution filed with Mizuho Financial Group（PDF)