J-POWER | Amendment to articles of Incorporation (GHG targets) at J-POWER

Status
21.31% votes in favour
AGM date
Previous AGM date
Proposal number
3
Resolution details
Lead filer
Australasian Centre for Corporate Responsibility (ACCR), HSBC Asset Management, Amundi
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
Utilities
Company HQ country
Japan
Resolved clause
The following clause shall be added to the Articles of Incorporation:

To promote the long-term value of the Company, the Company shall set and disclose a business plan to achieve science-based short- and medium-term GHG emissions reduction targets aligned with the goals of the Paris Agreement.
The Company shall report, in its annual reporting, on its progress against such targets at reasonable cost and omitting proprietary information.
Supporting statement
Long-term institutional investors in the Company see its corporate value depending upon a credible decarbonisation strategy and short-, medium- and long-term GHG emissions reduction targets aligned with the goals of the Paris Agreement and investor expectations.

While we welcome the Company’s intention to achieve carbon neutrality by 2050, the Company’s targets are not yet aligned with the goals of the Paris Agreement. In particular, the Company has presented no indicative schedule for the retirement of its coal-fired power assets and has instead presented a plan that involves capital expenditure into speculative technology prolonging the life of these assets. This presents a range of material financial risks to shareholders, including the risks arising from anticipated changes in GHG emissions-related public policy.

Setting science-based targets, and disclosing a business plan to achieve them, would best manage these risks and protect corporate value. Disclosure of the Company’s assessment of how material capital expenditure aligns with those targets in such business plan would assist shareholders.

https://www.accr.org.au/news/accr-shareholder-resolutions-to-j-power-on-emissions-reduction-targets-and-remuneration-incentives/

How other organisations have declared their voting intentions

Organisation name Declared voting intentions Rationale
Man Group For 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 J-Power’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.

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