HSBC Among Climate-Focused Investors Targeting J-Power Executive

(Bloomberg) -- Investors including Amundi SA and HSBC Asset Management sought increased emissions reduction targets from Electric Power Development Co., and said they intend to vote against the director in charge of climate strategy at Japan’s top utility.

Top hedge fund Man Group Plc also signaled its intent to vote against Hitoshi Kanno, who was in charge of the company’s decarbonization strategy and in March picked to lead the company known as J-Power, the Australasian Centre for Corporate Responsibility said Tuesday. He is slated to be formally appointed at the annual general meeting in June.

Amundi, HSBC and ACCR also filed a shareholder resolution, supported by Man, calling on the utility to set short and medium-term emission reduction goals that are aligned with the Paris Agreement. It also sought disclosure of how remuneration policies stimulate progress on those targets. 

The investor group said J-Power has presented no indicative schedule to retire its coal power plants. A similar proposal last year only won about 26% of shareholder votes. 

“Setting a clear decarbonization strategy with Paris-aligned, credible, short and medium-term targets is vital to protecting J-Power’s long-term value,” Jason Mitchell, head of responsible investment research at Man Group, said in the statement. “We do not have confidence that the company’s approach to the urgent challenge of decarbonization will evolve under the current leadership, so we have decided to take voting action.”

J-Power said it has received the proposals and will carefully consider them. 

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