J-POWER | Director votes - climate oversight at J-POWER

95.78% votes in favour
AGM date
Previous AGM date
Proposal number
Resolution details
Submitted by
Resolution ask
Strengthen board oversight of issue
ESG theme
  • Environment
ESG sub-theme
  • Net Zero / Paris aligned
Type of vote
Director vote
Filer type
Company sector
Company HQ country
Whereas clause
HSBC Asset Management, Amundi and Man group have expressed their intention to vote AGANST the representative director (Executive vice president) Hitoshi Kanno.

Supporting statement
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/

How other organisations have declared their voting intentions

Organisation name Declared voting intentions Rationale
Man Group Against In 2022, Man, Amundi and HSBC were part of the first investor group-led climate shareholder resolution filed in Japan, with a proposal to J-Power on emissions targets receiving support from more than one-quarter (26%) of shareholders.

The failure of J-Power to meaningfully respond to a material shareholder vote, and the escalating risks to long-term value of the current climate plan, have prompted each in the co-engagement group to signal their intention to vote against the company director principally responsible for overseeing J-Power's decarbonisation strategy.

At this AGM, this is Representative Director (Executive Vice President) Hitoshi Kanno, responsible for the company’s flagship decarbonisation plan the ‘Blue Mission 2050’.

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