Japan: Coalition of environmental NGOs & co. shareholders file resolutions urging 4 companies in the Tokyo Prime Market, including mega-banks, to properly assess & respond to climate-related risks
"[Press Release] Four companies in the Tokyo Prime Market, including 3 “Mega-banks” face climate votes on their Directors’ competency" 15 April 2024
...climate-related shareholder resolutions have been announced targeting Japan’s largest banks and Chubu Electric Power. A coalition of environmental organisations and shareholders have filed the resolutions calling for greater disclosure by the companies on how they will meet their net-zero commitments...
Thus, we are asking megabanks to disclose;
- How the banks will assess the alignment of their fossil fuel company customers' transition plans with the 1.5°C goal of the Paris Agreement.
- How the banks take corresponding measures, including restrictions on new funding, if the customers do not produce credible transition plans in line with 1.5°C pathways.
The key issues of the companies are as follows (by industry);
... “Megabanks are problematic in that they have a loose evaluation system for their lenders' transition plans. There appears to be a lack of expertise at management level, such as directors, to implement effective management under the climate crisis. As a result, we are concerned that the bank may continue to finance companies with unrealistic business plans to meet the 1.5°C target and that the bank's policies and management systems may be inadequate. For example, MUFG and Mizuho continue to finance companies that are expanding in the LNG sector and play a key role in the Rio Grande LNG project in the U.S, which violates the human rights of indigenous people..."
The disclosure we are requesting of companies is in line with the requirements of the Corporate Governance Code and from investor organisations (such as CA100+ and TPI) and the International Sustainability Standards Board (ISSB)...