【News】Four shareholder proposals submitted by NGOs to accelerate climate measures
＊Additionally posted 2nd investor briefings on June10.
On April 11, it was announced that individual shareholders, including domestic and overseas environmental NGOs, submitted shareholder proposals calling for stronger climate change policies to four companies in the finance, trading, and electricity industries (SMBC Group, Mitsubishi Corporation, and JERA’s shareholders, Tokyo Electric Power Holdings and Chubu Electric Power Company [50/50 shareholding ratio]).
These shareholder proposals follow similar ones calling for the strengthening and acceleration of climate change measures submitted in previous years by Kiko Network (Mizuho Financial Group two years ago, and Mitsubishi UFJ Financial Group last year) Market Forces (Sumitomo Corporation last year).
Each proposal calls for the development and disclosure of business plans that include mid-term and short-term greenhouse gas emission reduction targets consistent with the Paris Agreement targets, or the evaluation and reporting of consistency with the 2050 carbon emissions net zero target, and the disclosure of an assessment of asset resilience to transition to the net zero target. Please see the PDFs of each proposal for further details.
Here is the background for these proposals, along with related documents:
- Public and private sector commitments to net zero are increasing around the world.
- Overseas institutional investors are proceeding to divest from coal-fired generation projects, and are discontinuing support and withdrawing from investment and loans for fossil fuel-related projects.
- The trends toward decarbonization and halting deforestation were clearly indicated at COP26.
- The International Energy Agency (IEA) “Net Zero by 2050” scenario and other scientific analyses reveal that we must urgently work towards a coal phase-out and decarbonization in order to achieve the 1.5°C target of the Paris Agreement.
- Institutional investors are increasingly focusing on corporate climate measures.
Shareholder proposals (proponents and documents)
TO: SMBC Group
FROM: Takayoshi Yokoyama & Eri Watanabe from 350.org Japan, Toyoyuki Kawakami from Rainforest Action Network (RAN), Market Forces and Kiko Network
Investor briefings on the shareholder resolutions, SMBC Group (PDF)
2nd Investor briefings on the shareholder resolutions, SMBC Group (PDF)
TO: Mitsubishi Corporation
FROM: Ayumi Fukakusa from Friends of the Earth Japan, Market Forces and Kiko Network
Proposal（PDF) *English text is listed after Japanese.
Investor briefings on the shareholder resolutions, Mitsubishi Corporation (PDF)
2nd Investor briefings on the shareholder resolutions, Mitsubishi Corporation (PDF)
TO: Tokyo Electric Power Company Holdings (TEPCO) and Chubu Electric (Chubu)
FROM: Market Forces and Kiko Network
Proposal TEPCO (PDF)/Chubu Electric (PDF) *English text is listed after Japanese.
Investor briefings on the shareholder resolutions, TEPCO/Chubu (PDF)
2nd Investor briefings on the shareholder resolutions, TEPCO/Chubu (PDF)
* The organizations which the individual shareholder co-sponsors belong to support each shareholder’s proposal.
In addition to the urgent need to address climate change, Japan must also exit the fossil fuel industry, which is heavily dependent on imports for its supply, due to the current global energy situation. We hope companies and financial institutions involved in fossil fuel projects continue to further strengthen their climate change measures in response to these shareholder proposals and increase their corporate value toward a decarbonized society.
- 【Press Release】Corporate Japan faces record number of climate shareholder resolutions (2022/04/13): (350 Japan) / (Kiko Network)
- 【Press Release】SMBC Group’s updated climate policy still not aligned with 1.5℃ target: NGO shareholders continue climate shareholder proposals (2022/5/18): (350 Japan)