Private Banks
The Japanese megabanks; Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Financial Group (SMBC), and Mizuho Financial Group (Mizuho), are among the world’s top financiers of the global fossil fuel industry.
All three ranked among the 12 worst banks for funding in 2024, with Mizuho, MUFG, and SMBC ranking 4th, 6th, and 11th, respectively, contributing 12% of this report’s overall financing for that year.
These banks are at serious risk of failing to meet their commitment to achieving net zero emissions by 2050.
Mizuho, SMBC, and MUFG all ranked among the top 12 global financiers of fossil fuel and LNG expansion in 2023. Most notably, within the list of 130 companies leading global LNG expansion, Mizuho and MUFG secured the top two spots globally, providing $10.9 billion and $8.4 billion in financing, respectively.
They have provided or considered providing financing to some of the most controversial fossil fuel projects such as Papua LNG, Mozambique LNG and others that violate the rights of Indigenous people.
While Japan’s megabanks have withdrawn from the Net Zero Banking Alliance (NZBA), they continue to claim a commitment to net-zero emissions by 2050. Nevertheless, a significant gap persists between these pledges and their actual financing activities, which fail to align with the Paris Agreement’s 1.5°C pathway.