Mitsubishi Corporation | To Partially Amend the Articles of Incorporation (disclosure of how the company evaluates the consistency of each new material capital expenditure with its net zero greenhouse gas emissions by 2050 commitment)

Status
16.43% votes in favour
AGM date
Proposal number
6
Resolution details
Company ticker
8058
Lead filer
Market Forces
Resolution ask
Report on or disclose
ESG theme
  • Environment
ESG sub-theme
  • Net Zero / Paris aligned
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Industrials
Company HQ country
Japan
Resolved clause
It is proposed that the following provision be added to the Articles of Incorporation:
Chapter: “Decarbonized Society”
Clause: “Disclosure of how the Company evaluates the consistency of each new material capital expenditure
with a net zero by 2050 pathway”
1. To maintain and promote the long-term value of the Company, given the risks and opportunities associated
with climate change, and consistent with the Company's commitment to the goal of net zero greenhouse gas
emissions by 2050, the Company shall include annually in its corporate reporting an assessment of how a net
zero by 2050 pathway would affect the assumptions, costs, estimates, and valuations underlying new material
capital expenditure investments and planned future investments in the development of new upstream,
midstream and downstream oil and gas assets.
2. Omitting proprietary information, the disclosures shall include key assumptions and estimates, including
those related to long-term commodity demand, long-term commodity and carbon prices, asset lives, future
asset retirement obligations, capital expenditures and impairments.
Supporting statement
This shareholder proposal seeks the disclosure of an assessment to appreciate how a net zero by 2050 pathway
may impact the Company’s exposure to climate-related financial risks and the security of shareholder capital.
Mitsubishi is continuing the construction of thermal power plants, and new oil and gas production contrary to
the findings of the landmark net zero by 2050 scenario produced by the International Energy Agency. As a result,
Mitsubishi is exposing itself to transition risk.
Without a capital allocation framework aligned with net zero by 2050, the company risks impairment on projects
and activities that are incompatible with the energy transition required to meet this goal.
The requested disclosures are consistent with investor expectations as evidenced by investor initiatives and
shareholder proposals in other markets. Global peers of the Company are also disclosing this type of information
in more detail.
Approval of this proposal will place the Company in a better position to manage transition risk and opportunities,
and provide shareholders critical information to understand the security of their capital.

DISCLAIMER: By including a shareholder resolution or management proposal in this database, neither the PRI nor the sponsor of the resolution or proposal is seeking authority to act as proxy for any shareholder; shareholders should vote their proxies in accordance with their own policies and requirements.

Any voting recommendations set forth in the descriptions of the resolutions and management proposals included in this database are made by the sponsors of those resolutions and proposals, and do not represent the views of the PRI.

Information on the shareholder resolutions, management proposals and votes in this database have been obtained from sources that are believed to be reliable, but the PRI does not represent that it is accurate, complete, or up-to-date, including information relating to resolutions and management proposals, other signatories’ vote pre-declarations (including voting rationales), or the current status of a resolution or proposal. You should consult companies’ proxy statements for complete information on all matters to be voted on at a meeting.