Two European funds call on J-Power to disclose emissions reduction goals
For the second year running, two major European asset management firms have filed a joint shareholder resolution with Japanese electricity generator Electric Power Development Co Ltd. (9513.T), also known as J-Power.
Asset managers have called on J-Power to disclose and set credible short- and medium-term emission reduction targets that are aligned with goals of the Paris Agreement.
In Japan, shareholder activism has gained momentum over the last couple of years. The pressure generated by such proposals has led to some policy changes in the companies targeted.
The non-profit climate organization said that Amundi (AMUN.PA), and HSBC asset management filed the resolution at the Australasian Center for Corporate Responsibility.
The statement also stated that they intend to vote against Hitoshi Kano, executive vice-president and representative director of J-Power responsible for the decarbonisation plan.
ACCR stated that Man Group (EMG.L), which is the largest hedge fund in the world, supports this resolution. Amundi Asset Management, Man Group and HSBC have combined assets of nearly $3 trillion.
J-Power has “presented no indicative schedule for retiring its coal-fired assets” – but instead presented a plan that involved capital expenditures into speculative technologies such as ammonia-co-firing, prolonging the lives of these assets.
The resolution was adopted as the Group of Seven Rich Nations, or G7 agreed last month to accelerate renewable energy development. They also called for an earlier phase-out of fossils fuels, and a goal of achieving “a fully or primarily decarbonised” power sector by 2035.
J-Power said that it will “carefully” consider all proposals and “as quickly as possible” announce the board’s opinions.
Man, Amundi, and HSBC submitted a similar shareholder proposal last year, which, according to them, was the first climate related proposal by an institutional investor group for a Japanese company. Two-thirds of their shareholders supported one of their proposals.
A coalition of climate groups increased pressure last month on Japan’s three largest banks to reduce financing tied to fossil fuels. They filed shareholder resolutions that will be voted upon at the annual general meetings.
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