Mizuho Bank, Ltd. (President & CEO: Masahiko Kato) is pleased to announce the launch of Japan’s first Sustainable Supply Chain Finance (SSCF) (the “Solution”) which is designed to support clients working capital needs and sustainability goals. The launch of SSCF represents Mizuho Bank Ltd.’s ongoing commitment to social responsibility and demonstrates its leadership in arranging Environmental, Social and Governance (ESG) financing in order to advance its broad ESG initiatives.
This Solution is designed to offer medium-sized and small-sized enterprises (the suppliers) with an incentive to adhere to environmental and social guidelines, thereby encouraging them to achieve CO2 emission reduction targets and take environmental and social action throughout the supply chain.
As the trend sustainability accelerates globally, especially the transition to the de-carbonization, the efforts to de-carbonize must also include the entire supply chain. In terms of evaluating whether or not sustainability guidelines have been met, Mizuho Bank, Ltd. will use supplier’s ratings (sustainability performance) provided by EcoVadis, a French based professional sustainability rating agency, or other appropriate methods which Mizuho Bank, Ltd. deems appropriate. Mizuho Bank, Ltd. will provide financing to the suppliers on a supply chain platform which is globally operated and managed by Mizuho Bank, Ltd.
In order to ensure the effectiveness of the Solution and it’s conformity to the items expected under the international principles, “Sustainability Linked Loan Principles (SLLP)”, a third-party opinion (SPO) from Rating and Investment Information, Inc. (R&I), an external third-party evaluation organization, has been obtained.
In offering this Product, Mizuho Bank, Ltd. hopes to support both large and small customers in achieving their initiatives in the medium and long term. Mizuho Bank, Ltd. also supports the cooperative relationship between large companies (the buyers) and small and medium-sized enterprises (the suppliers) and contributes to build a stronger, more stable and more sustainable supply chain.
“Mizuho” is strengthening its efforts, “Sustainability Actions”, to realize a sustainable society, such as responding to climate change and transition to a de-carbonized society. Leveraging Mizuho’s knowledge as a comprehensive financial services group, “Mizuho” will contribute to clients desire to improve corporate value and to achieve SDGs (Sustainable Development goals) through Mizuho’s financing and consulting functions, and to actively engage in the development and offer diverse and innovative solutions.
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