Sumitomo Mitsui Financial Group, Inc. | Short- and medium-term greenhouse gas emission reduction targets

Status
27.00% votes in favour
AGM date
Previous AGM date
Proposal number
1
Resolution details
Company ticker
8316
Lead filer
350.org Japan
Co-filers
Market Forces
Resolution ask
Set targets or plans
ESG theme
  • Environment
ESG sub-theme
  • Fossil fuel financing
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Financials
Company HQ country
Japan
Resolved clause
Partial amendment to the Articles of Incorporation (Formulation and disclosure of a business
plan including medium-term and short-term greenhouse gas reduction targets that are
consistent with the goals of the Paris Agreement)

The following clause shall be added to the Articles of Incorporation:
Chapter: “Shift to Decarbonized Society”
Clause: “Setting and Disclosing Targets aligned with the Paris Goals”

1. To promote the long-term success of the Company, given the risks and opportunities
associated with climate change, and in accordance with the Company’s commitment to the
Paris Agreement on climate change, the Company shall set and disclose a business plan
with short-term and mid-term greenhouse gas emission reduction targets across its overall
investment and loan portfolio aligned with Article 2.1(a) of the Paris Agreement (the “Paris
goals”).

2. The Company shall report on its progress against such targets in its annual reporting.
Supporting statement
This proposal aims to maintain and increase the Company's corporate value, by
appropriately managing the Company’s exposure to climate change risks, and ensuring
information transparency through setting and disclosing business plans aligned with the
Paris Agreement goals, including short-term (by 2025) and medium-term (by 2030)
greenhouse gas emissions reduction targets across its entire investment and loan portfolio.
To align with the 2050 net-zero goal set by the Japanese government and the Company’s
own goal of net-zero emissions across its entire loan and investment portfolios, it is
imperative to set concrete short- and medium-term targets and develop compatible business
plans. Disclosing its progress against such targets annually will ensure the Company’s
financing activities are consistent with these goals.
By adding this clause to the Articles of Incorporation, the Company can effectively manage
exposure to climate change risks, align with its long-term net-zero goal and promote
sustainable growth.

The purpose of this proposal is to manage the Company’s exposure to climate risk
appropriately and maintain and improve corporate value. The proposal addresses climate
change risk by setting and disclosing measures to ensure that the company’s financing
activities are not inconsistent with the IEA’s net-zero emission scenarios and the UNEP FI
recommendations to the G20 Sustainable Finance Working Group.

The risks of the IEA scenario are widely recognized, and it is clear from the scenario and
climate science that there is no room to develop new oil and gas fields or coal mines, or new
infrastructure to facilitate such development if we are to reach the 1.5 °C target of the Paris
Agreement.

The Company has set a goal of net-zero greenhouse gas emissions from its entire
investment and loan portfolio by 2050, but continues to provide significant funding to
facilitate fossil fuel expansion. We propose to add this clause to the Articles of Incorporation
in order to manage the Company’s exposure to transition risk and to become a financial
institution that drives the trend toward a carbon-free society.

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