Mitsubishi Corporation | Amendment to articles of incorporation (disclose capex alignment to net-zero scenario) at Mitsubishi Corporation

Status
12.48% votes in favour
AGM date
Previous AGM date
Proposal number
6
Resolution details
Company ticker
8058
Lead filer
Market Forces
Co-filers
FoE Japan
Resolution ask
Adopt or amend a policy
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
Propose partial amendment to the Articles of Incorporation (disclosure of how the company evaluates
the consistency of each new material capital expenditure with a net zero greenhouse gas emissions by
2050 scenario)
Whereas clause
It is proposed that the following provision be added to the Articles of Incorporation:
Chapter: “Transition Plan”
Clause: “Disclosure of how the Company evaluates the consistency of each new material capital
expenditure with a net zero by 2050 scenario”
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 scenario 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 scenario 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.

https://shareholderaction.asia/wp-content/uploads/2023/04/2023-04-Mitsubishi-shareholder-proposal-JP-and-EN-2.pdf

How other organisations have declared their voting intentions

Organisation name Declared voting intentions Rationale
Anima Sgr For The capital expenditure disclosure requested under Item 6 would help investors understand the financial risks the company is facing in a decarbonized economy where demand in oil & gas will progressively decrease. In addition, the proposal wording is deemed sufficiently accurate without being too prescriptive
and should therefore not lead the company to breach any trade secrets while the requested annual reporting effort does not appear overly burdensome.
Kutxabank Gestion SGIIC SAU. For
Irish Life Investment Managers For

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