Three Japanese megabanks will be face votes on climate change
An alliance of environment bunches are moving forward tension on Japan’s main three banks to slice supporting connected to petroleum products, recording investor goals to be decided on at the organizations’ yearly regular gatherings in June, sources said on Monday.
The gatherings are focusing on megabanks Mitsubishi UFJ Monetary Gathering (8306.T), Sumitomo Mitsui Monetary Gathering (8316.T), Mizuho Monetary Gathering (8411.T), all vital aspect for funding oil and gas projects, said the sources, who declined to be recognized as the data isn’t yet open.
The concerted effort is an improvement over the previous three years, when environmental organisations focused on one megabank each year. Now, they are simultaneously urging the Japanese banks, which are thought to be behind their peers around the world in efforts to cut carbon emissions, to take action.
Market Forces in Australia and Kiko Network in Japan are leading the new campaign, which comes at a time when institutional investors are pressing businesses to do more to combat global warming.
The same coalition, which includes Friends of the Earth Japan and Rainforest Action Network representatives, will also present shareholder proposals to trading house Mitsubishi Corp (8058.T), Chubu Electric Power (9502.T), and Tokyo Electric Power (9501.T).
Investor activism on climate change has been picking up speed in Japan starting around 2020, when Mizuho was the primary recorded organization in the country to hold an environment-related vote.
Although shareholders at Tokyo Electric, Chubu Electric, Mitsubishi Corp, and Sumitomo Mitsui Financial rejected resolutions of a similar nature the previous year, pressure from these proposals has led to some policy modifications at the companies in question.
In response to increased pressure, the megabanks, for instance, have pledged to cease funding for new thermal coal projects in recent years.
Due to the fact that they typically involve proposals to amend a company’s articles of incorporation in accordance with Japanese corporate law, which requires a two-thirds majority, the climate resolutions face significant obstacles. Climate resolutions have received support of up to 35% in previous votes.
Climate activists are critical of the banks’ transition plans because they include technologies like coal co-firing with ammonia and carbon capture that, according to them, have not been proven to work.
The Japanese government has promoted both technologies as means of lowering carbon emissions from coal- and gas-fired power generation.
Mitsubishi UFJ Financial and Mizuho Financial both chose not to comment. Chubu Electric, Mitsubishi Corp., and Sumitomo Mitsui Financial confirmed receiving the shareholder resolutions and promised to discuss their content.
Tokyo Electric also said that it had received the resolution, but it didn’t comment on anything else.
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