CSR REPORT 2008 Business Overview Group Overview Mizuho was formed in September 2000 when Mizuho Holdings, which provides services to small and medium-sized enterprises, Inc. was established as a holding company with Dai-Ichi middle market corporations, and individual customers. And the Kangyo Bank, Fuji Bank, and the Industrial Bank of Japan as Global Asset & Wealth Management Group offers services that its subsidiaries. Today, Mizuho Financial Group, Inc. (MHFG) focus on asset management and investment. serves as the fi nancial holding company for a corporate Employees (Excluding non-regular and temporary employees) group that offers comprehensive fi nancial services. (Consolidated) 49,114 The principal functions of the group’s companies - Total assets (Consolidated) ¥154,412.1 billion banking, securities and trust management - are organized Capital adequacy ratio 11.70 into three global groups with a view to provid faster, more (Consolidated) ％ precise responses to the diverse needs of customers. Mizuho Number of Shares Issued and Outstanding 12,376,684.66 shares Corporate Bank leads the Global Corporate Group, which Common Stock 11,396,254.66 shares provides borderless services to large companies and fi nancial Preferred Stock 980,430.00 shares institutions. Mizuho Bank spearheads the Global Retail Group, (As of March 31, 2008) Business Outline Holding Company Global Asset & Wealth Management Group MHFG is a bank holding company which operates Mizuho Trust & Banking Co., Ltd. A trust bank that possesses strengths in both the and manages its banks, long-term credit banks, (MHTB) corporate and individual markets. specialized securities companies and other Mizuho Financial Group, Inc. Mizuho Private Wealth companies which the Company may own by A wealth management services company (MHFG) Management Co., Ltd. law as its subsidiaries, and engages in business appertaining to the management and operation of Trust & Custody Services A highly specialized trust bank focusing on the such companies. Bank, Ltd. (TCSB) custody business. Mizuho Asset Management An asset management company. Co., Ltd. 2 (MHAM) Global Corporate Group * DIAM Co., Ltd. 3 (DIAM) An asset management company. MHCB focuses its business on corporate finance, pri- * marily serving large corporations (such as those listed Mizuho Corporate Bank, Ltd. on the first sections of domestic stock exchanges), Group Strategic Subsidiaries (MHCB) financial institutions and their group companies, Mizuho Financial Strategy An advisory company for financial institutions. public sector entities, and overseas corporations Co., Ltd. including subsidiaries of Japanese companies. Mizuho Research Institute Ltd. A wholesale securities company whose main A think tank. Mizuho Securities Co., Ltd. (MHRI) clients are institutional investors, corporations, (MHSC) Mizuho Information & and financial and public institutions. An IT-related company. Research Institute, Inc. (MHIR) Global Retail Group *1 In light of the continuing confusion in the financial markets and the shift to paperless MHBK serves primarily individuals, SMEs, and stock transactions through the implementation of the Electronic Share Certificate Mizuho Bank, Ltd. (MHBK) middle- market corporations, and local governments System scheduled for January 2009, the merger between MHSC and Shinko in Japan. Securities has been tentatively rescheduled for May 2009. 2 Dai-Ichi Kangyo Asset Management and Fuji Investment Management merged as of Mizuho Investors Securities A securities company that focuses on serving the * July 1, 2007 and became Mizuho Asset Management (MHAM). Co., Ltd. (MHIS) group’s customers. *3 DLIBJ Asset Management changed the company name to DIAM as of January 1, 2008. A full-service securities company that focuses on Shinko Securities Co., Ltd. 1 * the middle and retail markets. Geographical Distribution and Income Overview (Year ended March 2008) Other Businesses 5.9% Asia/Oceania, excluding Japan Europe Securities Banking Business 4.4% Business % 83.3% 9.0 10.8% The Americas Japan 17.0% 69.6% Ordinary Income by Business Ordinary Income by Region * Countries and regions are classified according to geographical factors and the mutual Banking Business: Banking and Trust Banking relevance of business activities. Securities Business: Securities * “The Americas” includes Canada, the United States, etc. “Europe” refers to the United Kingdom Other Businesses: Asset Management, etc. and the countries of continental Europe. “Asia/Oceania” includes Hong Kong, Singapore, etc. 2 Contents 2008 04 Top Commitment 06 Special Section Solar Power Generation Project 08 Special Section Financial Education at the Front Line 06 10 CSR Basic Approach 12 Promoting Sound, Community-conscious Management 14 Environmental Initiatives 08 20 Support for Financial Education 24 Enhance Corporate Governance 24 Corporate Governance 25 Compliance 30 26 Risk Management 28 Highly Responsive Communications 28 Stakeholders at Mizuho 30 Customer Relations 34 Shareholder and Investor Relations 40 36 Employee Relations 40 Community Relations 46 The Third Stakeholder Dialog 50 Third-Party Opinion 51 Editorial Policy 46 ●Guide to Our Website Our website carries various kinds of information, http://www.mizuho-fg.co.jp/english/csr/ including the contents of this publication. Please follow the links displayed like this: Web Please refer to http://www.mizuho-fg.co.jp/english/csr/●●●/ for more detailed information. ●Icons Icons are used for headers describing independent activities of individual group companies as follows. FG … Mizuho Financial Group TB … Mizuho Trust & Banking MHAM … Mizuho Asset Management RI … Mizuho Research Institute BK … Mizuho Bank SC … Mizuho Securities DIAM … DIAM IR … Mizuho Information & Research Institute CB … Mizuho Corporate Bank IS … Mizuho Investors Securities Top Commitment Top Commitment Working to Win the Customer’s Trust and Loyalty Pursuing Practical CSR Since MHCB became the fi rst Japanese bank to adopt the Equator Principles in 2003, it has steadily built up a Banking is a business that is highly public in nature. Unlike strong record in project fi nance in line with this approach. banks overseas, Japanese banks offer a very reliable We have been proactive in fi nancing renewable energy settlement system of bank transfers incorporated into projects such as wind power generation, and our record in perhaps one of the world’s best social infrastructures. this area is among the best in the world. The systems malfunctions that we suffered at the time MHBK has started offering the “Mizuho Eco-assist” of our consolidation and reorganization in 2002 caused program, which provides small and middle-market our stakeholders considerable trouble and meant that we companies with preferential interest rates on funding damaged our customers’ trust through our own actions. for capex that leads to environmental improvements. In We launched our CSR initiatives because of the need to response to our customers’ environmental policy needs, take a new, calm look at ourselves, and reconfi rm the we have organized business matching events that take nature of our work and our role in society in order to regain the environment as their main theme and attract large the trust we had lost. numbers of visitors. In full recognition of the highly public nature of fi nancial We have also adopted initiatives designed to reduce institutions, Mizuho is committed to CSR activities aimed our own environmental impact, setting targets for reducing at fulfi lling its social mission. Focusing on activities that our own emissions of greenhouse gases and the like. make the most of what we have learned from our core Meanwhile, the holding company adopted a summer business, we have settled on two priority areas - support time scheme last year. It has also launched a campaign for environmental initiatives and fi nancial education. Each to reduce paper consumption and will work to ensure this year, our CSR Report gives a full accounting of what we is adopted throughout our group companies. Since such have been doing in these areas. We have also set up initiatives closely involve individual employees, they are regular opportunities for dialogs with experts from outside highly proactive in nature. the group, who show no hesitation in delivering tough opinions from an objective, third-party perspective. To Fostering Social Common Sense through ensure that our activities go beyond mere formalities and Financial Education to encourage other practical activities, we maintain this approach at all times. Mizuho offers lectures and courses at university level. These activities go beyond simple monetary donations Adopting A Financial Approach to the because we emphasize our responsibility for their content Vital Issue of the Environment and send our own employees to give lectures. We believe they provide meaningful educational value because they The world today faces some truly serious problems, such combine the theoretical aspects of academia with the as the issue of climate change brought about by global practical aspects of enterprise. warming. We are devoting enormous efforts to supporting Moreover, we stress the importance of fi nancial environmentally-conscious companies and projects as a education at the entry level, i.e., for elementary and means of fulfi lling our role as a fi nancial institution through secondary school students, as well as university students. business. More specifi cally, we are involved in laying the foundations 4 for expanding fi nancial education though