Finance Companies Support Small Business Environmental Activities

Two major Japanese financial firms, Mizuho Bank, Ltd. and Orient Corporation, announced on December 22, 2005, that they have created a new lending scheme to promote and support corporate social responsibility (CSR) activities of small and medium sized enterprises (SMEs). The new scheme, allows environment-conscious SMEs to obtain loans at about one percent instead of the average interest rates of 2 to 3 percent by using a jointly-developed loan product called the "Mizuho Long Partner," which provides unsecured loans and long-term support to SMEs.

This financial product is available for not only SMEs which have already practiced environment-friendly management, but also for SMEs which plan to conduct such management activities in the future, even if their environmental efforts are insufficient at present, the first of its kind in Japan.

Some of the criteria considered when selecting eco-friendly enterprises are (1) acquisition of ISO 14001 certification or the Ministry of the Environment's Eco Action 21 certification, (2) publication of an environmental report or other similar non-financial report, (3) engagement of environmental consulting services with Mizuho Financial Group companies, and (4) a rank of A or better in the Tokyo Metropolitan Government's program to combat global warming.

Other companies are also eligible for these loans provided they meet certain other standards under Mizuho's own environmental assessment. After making the loans to SMEs, Mizuho Information & Research Institute, Inc. continues to monitor and evaluate customers' environmental activities at regular intervals.


- Tokyo Gov't Registers 26 Companies as Global Warming Business Specialists (Related JFS article)
http://www.japanfs.org/db/1153-e

Posted: 2006/05/10 10:18:23 AM
Japanese version