Three big asset managers file joint climate resolutions at J-Power
11/05/2022 07:00
By Makiko Yamazaki
TOKYO, May 11 (Reuters) - Three European asset managers,
including the largest, Amundi AMUN.PA , said on Wednesday they
had jointly filed climate-change resolutions at Japanese
electricity generator Electric Power Development Co Ltd
9513.T , known as J-Power.
In what they say are the first climate-related proposals by
an institutional investor group to a Japanese firm, Amundi,
hedge fund Man Group EMG.L and HSBC Asset Management called on
J-Power to set credible emissions-reduction targets and to
disclose plans to achieve them.
J-Power is Japan's largest operator of coal-fired power
stations.
The move highlights a shift of attention to Japan by major
asset managers that have been challenging companies in the
United States and Europe over plans to transition to a
low-carbon economy. Few Japanese companies have had to deal with
such resolutions so far.
The filing followed months of engagement with J-Power about
concerns that its current decarbonisation strategy "would see
the company lose competitiveness as Japan moves to cut
greenhouse gas emissions to net zero by 2050," the group said in
a statement.
Amundi, Man Group, and HSBC Asset Management have a combined
$3 trillion in assets under management. Man Group is the world's
largest publicly traded hedge fund company.
A spokesperson for J-Power said its board was discussing how
to respond to the resolutions. The company would announce its
intentions when decided, he said.
Shareholders will consider the resolutions at J-Power's June
28 annual general meeting.
Last month, climate activist groups including Japan's Kiko
Network and Australia's Market Forces jointly submitted
shareholder resolutions to four Tokyo-listed companies urging
greater commitment to tackling climate change.
The four included Sumitomo Mitsui Financial Group 8316.T
and Tokyo Electric Power, known as Tepco 9501.T . urn:newsml:reuters.com:*:nL2N2WB03E
Under Japanese corporate law, shareholder proposals on
climate change would usually have to take the form of an
amendment of the company's articles of incorporation.
Such amendments would require two-thirds majority support,
but analysts say companies cannot easily ignore substantial
shareholder backing that falls short of the threshold.
(Reporting by Makiko Yamazaki; Editing by Bradley Perrett)
((Makiko.Yamazaki@thomsonreuters.com; +81-3-4563-2805;))