Electricity companies
JERA, Tokyo Electric Power Co. (TEPCO), Chubu Electric Power Co. (Chubu)
Summary
TEPCO and Chubu’s joint venture JERA is the largest power generation company in Japan. Since TEPCO and Chubu are the owners of JERA, they would bear the climate and reputation related risk of JERA’s business plans.
Key points
- TEPCO, Chubu and JERA’s ‘transition’ plans, including the capital investment plans, fail to align with a pathway to limit global warming to 1.5 degrees or to achieve net zero carbon emissions by 2050.
- Threatening shareholder value: TEPCO and JERA are already seeking additional loans as a result of their continued reliance on thermal power generation. JERA also sought additional loans.
- JERA hopes to create a massive fossil fuel-produced ammonia and hydrogen supply chain, an extremely high-cost approach that would cost TEPCO and Chubu shareholder value.
- ERA is pursuing major liquified natural gas (LNG) expansion plans in South and Southeast Asia, despite clear indications of demand destruction in those markets.
- TEPCO, Chubu and JERA must address the misalignment between their strategies and climate commitments through the improved disclosures requested in the ‘Alignment of capital allocation with a net zero by 2050 pathway’ shareholder proposals.
Download the documents
TEPCO Shareholder proposal April (EN/JA)
Chubu Shareholder proposal April (EN/JA)
Investor briefing Apr 10
Webinar: Climate related shareholder proposals 〜How should companies consider ESG engagement?〜
[70 minutes]
Related
Disclaimer
Informational purposes only – This communication is provided solely for informational purposes only and is not, and should not be construed as, investment advice or investment recommendations for the purposes of the Financial Instrument Exchange Act of Japan.
No joint-exercise of voting rights – Nothing in this written communication, nor in any related oral discussion, is intended to be, nor should it be construed as, an offer, an acceptance or a consent, to enter into an agreement for the joint exercise of voting rights or any other shareholder’ rights for the purposes of the Financial Instrument Exchange Act and Foreign Exchange and Foreign Trade Act of Japan. If needs be, it is hereby emphasised that each shareholder exercises its shareholder’s rights independently based upon its own decision and shall not be held liable for its exercise of its shareholder’s rights in any event or in any result, as a breach of any discussion between the shareholders.
No proxy solicitation – Nothing in this written communication, nor in any related oral discussion, is intended to be, nor should it be construed as, a “solicitation for proxies” for the purposes of the Financial Instrument Exchange Act of Japan. The shareholder is not soliciting or seeking any authorization by any other shareholders to exercise their voting rights or any other shareholders’ rights on their behalf or as their agent at the annual shareholders’ meeting. This is a non-commercial product for public dissemination only. Not for sale.
Analysis featured in this briefing does not substitute analysis and disclosure from the companies themselves with primary information. The purpose of the information featured here is to demonstrate to investors the substantial climate-risks the companies are exposed to, and encourages them to undertake their own detailed, forward-looking analysis to demonstrate to investors how they are managing these risks.