Jason Mitchell, Head of Responsible Investment Research at Man Group said:

“Setting a clear decarbonisation strategy with Paris-aligned, credible, short and medium-term targets is vital to protecting J-Power’s long-term value given the risks and opportunities associated with the global shift away from fossil fuels. We are concerned that JPower’s continued reliance on co-fired ammonia as a solution in its climate plan is not compatible with global decarbonisation targets, and continuing down this path will impact long-term shareholder value. Despite a number of meetings over two years, we remain disappointed by the Blue Mission strategy. We do not have confidence that the company’s approach to the urgent challenge of decarbonisation will evolve under the current leadership, so we have decided to take voting action.”

Caroline le Meaux, Head of ESG research, engagement and voting Amundi, said:

“We are concerned by Blue Mission 2050, notably the high emissions from J-Power’s coal power business, and the low level of economic and technical feasibility attaching to technologies detailed in the company’s plan. OECD countries need to be on a pathway to complete coal phaseout by 2030, and J-Power’s plans are inconsistent with this critical objective. Its strategy bets against the success of the Paris Agreement, and risks shareholder value in the process. As the company’s climate strategy is falling short of our minimum requirements, we will continue to vote against the renewal of board members following our voting policy.”

Sachi Suzuki, Senior Manager – Investment Stewardship, HSBC Asset Management, said:

“We expected the last AGM result would encourage a shift from the current high-cost, coal-based strategy to a more credible decarbonisation strategy, in line with investor expectations. Regrettably, we have not seen evidence of such a shift. Under J-Power’s existing plan, shareholder money will continue to be spent on speculative technologies to prolong coal power, rather than focusing on expanding renewables. This would likely expose the company to risks associated with costs, sourcing and adverse regulatory changes and potentially cause a loss of value to investors. We think that climate risk has strategic implications for J-Power and therefore the responsibility of the board. We are concerned that directors have shown insufficient consideration of climate risks and we want other investors to know that, despite our intensive engagement, we are unsatisfied with their response and believe it is important for us to signal this through our votes.”

For further details, access: https://www.accr.org.au/news/global-asset-managers-with-close-to-us-3-trillion-aum-support-climate-shareholder-resolution-filed-with-j-power-flag-voting-%E2%80%98no%E2%80%99-on-director/