Japan's J-Power ups CO2 reduction goal amid shareholder pressure
10/05/2023 10:33
TOKYO, May 10 (Reuters) - Japanese power generator
Electric Power Development Co Ltd (J-Power) 9513.T on
Wednesday raised its 2030 emission reduction target by 1.3
million tonnes from 2013 levels as it tries to step up its
efforts to tackle climate change.
The move comes after two major European asset managers filed
a shareholder resolution at J-Power, calling on Japan's largest
coal-fired power generator to set and disclose credible short
and medium-term emissions reduction targets, aligned with the
goals of the Paris Agreement.
J-Power President Toshifumi Watanabe said the revision was
not in response to the resolution.
"We have been considering deepening emission targets
regardless of the shareholder's proposal," he said.
J-Power now aims to cut its CO2 emissions by 46% by 2030
from 2013 levels of 48.77 million tonnes, against an earlier
target of 44%. The latest goal is in line with Japan's national
target.
"We've decided on the number with some degree of
preparedness," Watanabe said, noting the company panned to
expand use of ammonia and biomass at its thermal power stations.
Japanese power generators are trying to co-fire low-carbon
ammonia with coal at their thermal power plants to slash CO2
emissions.
J-Power will disclose its response to the resolution after
the board of directors discusses the issue, Watanabe said.
"We are taking CO2 reduction measures one by one while
supplying stable electricity on a daily basis and we'd like our
shareholders to understand the efforts," he said.
J-Power reported a record net profit of 113.7 billion yen
($842 million) for the year ended in March, up 63% from a year
earlier, backed by a strong gain at its Australian coal unit
amid soaring prices of thermal coal.
But for the year to next March, it predicted a 33% decline
in profit as it expects Australian coal prices to fall to $200 a
tonne in 2023, from an average prices of $360 in 2022.
($1 = 135.0500 yen)
(Reporting by Yuka Obayashi
Editing by Mark Potter)
((Yuka.Obayashi@thomsonreuters.com; +813-4520-1265;))